BACK TO SCHAUBLE: NO WAY FORWARD THAT IS NOT A REFORM

BACK TO SCHAUBLE: NO WAY FORWARD THAT IS NOT A REFORM

Remember German Finance Minister Wolfgang Schauble, and his statement a few years ago that there was no way forward in the global financial system that was not a reform? Schauble couched his remarks in the context of the Keynesian-debt finance model, specifically stating that it had reached its limit. In this context, Schauble's remarks about "reform" were - in this author's opinion at least - a euphemism for "reset," because the real culprit  - besides the central bank fiat-monetized debt-as-money model - was the rampant financial speculation introduced in the 1990s, allowing deposit banks also to become investment banks, tearing down a wall that had been a legacy of the 1930's New Deal of Franklin Roosevelt. As a result, vast fortunes could be acquired merely by speculating on paper, while real productivity - we'll call it production capitalism - languished. With all the paper floating in the system, auto prices skyrocketed, auto production increased, but largely as a result of what was going on in the finance capitalism-croney crapitalism world.

Well, in that context, consider this article that many regular readers here shared (and a big thank you for bringing it to our attention):

In Unprecedented, Shocking Proposal, BOE's Mark Carney Urges Replacing Dollar With Libra-Like Reserve Currency

After Jerome Powell's neutral-to-slightly-dovish-but-mostly-boring speech on Friday morning, investors could be forgiven for suspecting that this year's Fed-sponsored gathering in Jackson Hole might be disappointingly dull (especially with all that's going on in Trump's twitter feed, the escalating trade war and escalating geopolitical unrest).

Then along came former Goldman banker and current (outgoing) BOE governor, Mark Carney, who in his lunchtime address laid out a shocking, radical proposal - perhaps the most stunning thing to ever be unveiled at Jackson Hole - urging to replace the US Dollar with a "Libra-like" reserve currency in a dramatic revamp of the global monetary, financial and economic order.

While it was unclear if Carney was focusing on Libra as the new reserve currency, or simply was hoping to find something against which the dollar could be devalued, the proposal was clearly shocking as it suggests that the central bank quiet acceptance of cryptocurrencies (especially in Japan) has been what many have speculated all along: a "currency" against which fiat money can be devalued in hopes of sparking fiat hyperinflation that inflates away record amounts of fiat debt.

Now, I don't know about you, but where central banksters are concerned, I'm skeptical. And especially so if their plan involves crypto-currencies, and even more especially so if that plan incorporates some version of a "gold" or bullion backed crypto. And yea, I plan to crawl to the end of the twig of high octane speculation once again on this one.

I'm skeptical for several reasons: (1) humans somehow need the physical medium of exchange, whatever that medium may be. But more importantly (2), the central banks and major prime banks have been caught - repeatedly - rigging the game in the past; think only of the LIBOR business, or the "robo-signing" of fake mortgages and so on, prior to the 2008 meltdown. And that was with the physical exchange of securities and so on. Imagine the cornucopia of rigging that can be done at the push of a button in a cashless cyrpto-world. (3) I've said it before and I'll say it again: no cyber system is secure, and thus the opportunity for malfeasance from any actor - including banks - expands accordingly. (4) The coupling of crypto-currencies to any kind of bullion backing is itself suspect, though you'll never see the real reason being discussed in any standard banking narrative. That real reason is that the amounts of bullion - and particularly gold bullion - are not only obfuscated but deliberately so. It is a closely held secret both by banks and by governments. Thus, any price of any bullion may not, and probably does not, reflect reality.

And let's add to that inconvenient detail the fact that no gold bug - to my knowledge - wants to talk about: what if there was a lot more gold in existence than we've been told? That certainly seems to be the implication of the story of Yamashita's gold, the gold looted from Asia by Japan during the Second World War and much of it cached in the Philippine archipelago. How much was there? We don't know. Estimates are in the billions of dollars. How much was recovered? Again, we don't know. Who recovered it? All indications are that both the Philippine government of Ferdinand Marcos, and the U.S.A., recovered some of it, but again, we don't know how much, nor where it went. The problem here is that if one is on the "inside" of this story, and has access to that information, gold prices could be driven up, and then, a bunch of that hidden gold could be dumped on the market, putting prices into a nose-dive in another convenient form of wealth-harvesting.

In effect, Mr. Carney's proposal - in my opinion - strikes me not so much as a Schauble's "reform"/reset,  although that certainly looks to be the way it will be "sold", as it does of being "more of the same", on steroids.  In fact, the article suggests precisely this as being the scenario they have in mind: turning all your savings, pensions, 401Ks and whatever else you may have struggled to save, into a pile of paper worth as much as a 1923 Reichsmark, for look at that last papagraph cited above once again:

While it was unclear if Carney was focusing on Libra as the new reserve currency, or simply was hoping to find something against which the dollar could be devalued, the proposal was clearly shocking as it suggests that the central bank quiet acceptance of cryptocurrencies (especially in Japan) has been what many have speculated all along: a "currency" against which fiat money can be devalued in hopes of sparking fiat hyperinflation that inflates away record amounts of fiat debt. (Emphasis added)

In other words, more punishment of the middle classes for the banksters' own malfeasance. Something tells me that this is not what Herr Schauble had in mind.

See you on the flip side...

18 thoughts on “BACK TO SCHAUBLE: NO WAY FORWARD THAT IS NOT A REFORM”

  1. Hints of what the confused bankster sphere is thinking can be found in papers published by the BIS (Bank for International Settlements) website. If you care to sift through them….

  2. Speaking of WW2 gold and things crypto, readers here would probably enjoy Neal Stephenson’s novel Cryptonomicon which largely predicts the rise of cryptocurrency along with healthy doses of spycraft.

  3. MonoatomicGold……Just an aside here……..Bob Dean mentioned that one group of the “others” that work in the Pentagon use that as their sustenance & that we had been giving them gold in payment for their services????

    Personally, being a Baptist Preacher’s daughter, I wonder about the gold Moses fed his people…..maybe there is much more to that story than we know?! 😉 If one looks at the O. T. stories in the light of these “gods” simply being Higher Beings, all the “miracles” seem more plausible now, don’t they?!!

    After all, the word translated “God” in the KJV is really a plural word, “elohim”! We were made ” a little lower than the ‘elohim'”….not a little lower than the “angels”!!! That discovery is what got me started on my own personal search to figure out what the heck was wrong with the childhood brainwashing I had received!!! 😉

  4. The price of gold is so manipulated, that it is impossible to tell on what actual quantities the price is based.
    It’s like the price of oil.
    If for geo-political reasons it needs to be high, it goes high. If for other reasons it needs to be low, it goes low. Nothing to do whether oil is in short supply or not. On a side-note, there is plenty of indication that oil is made through geological processes, on a continuous basis. Not from animals that got crushed over millions of years (the old Scarcity Meme).
    Even people that work in the oil industry know this.

    It may be similar with gold. I have no doubt there is FAR more gold in existence than officially admitted. Just take the electric/electronic and all associated industries into consideration and the total amounts of gold they use in their products. Sure, each product on its own has very little gold, but when you consider the millions upon millions of devices, the amount becomes substantial.
    Where is all that gold coming from?

    As for debt, I don’t think it matters to the elite how high it goes. If you had told someone thirty years ago that the US debt in 2019 would be $21trillion, they would have called you crazy, that it would be impossible. So if in another 30 years the debt stands at $100+trillion, not an eyebrow will be raised or finger lifted.
    Assuming of course that the same elite(s) are still in power.

  5. I bet they will come up with something that require a mandatory “smart” phone, miniturised as THE CHIP. embedded in THE MEAT.
    I proposed navel (belly button) fluff as the new currency with a communal burning of it all on the 7th year. mispell it naval to go with the admiralty law.

  6. The British elite got the US into helping them win ww1, which set up conditions for ww2, and then as an outcome of those two, a long extremely dangerous cold war occurred with a bizarre murderous regime that wouldn’t have come to power, except for ww1.
    Lately, they tried to pull a covert intelligence operation to thwart the outcome of a US Presidential election, with help from the type of scum that floats to the top of the FBI, CIA and the overall US political system.
    Now, as Joe F. describes, their “elite” is trying something even bigger and more penetrating. I wonder how the Israeli operatives in the US financial system view this…

  7. Since the space program was iced on November 22, 1963, our elites intend to turn us useless eaters into long pig. These swindlers games have a reach an endpoint and only armageddon is their only exit what form it takes only their twisted minds know.

  8. What is interesting here is that Mark Carney is the chairman of the bank of England which is in a country that is a friend of America.
    He floated an idea to demote the US dollar.
    Furthermore interesting is that you have seen no blowback from any quarter in the media or in the government.
    Moreover, Ms. Shelton a potential Trump nominee to the Fed confirmed that she thought that his idea has some merit.
    It’s obvious that this idea is baked in the cake and it’s ready to go some time.
    Just need to figure out how to get ahead of it.

  9. The “libra-like” British cryptocurrency Electroneum that was launched in 2017 allows users to download mining simulator on their mobile phones that deposits $3 worth of free Electroneum. Currently in South Africa and Brazil this can be exchanged for airtime with certain Mobile Network Operators. it was announced in July that Electroneum joined the likes of IBM and Facebook in launching a new type open ledger coined the Moderated Blockchain or permissioned blockchain, powered by its unique Proof-of-Responsibility (PoR) system. The moderated Blockchain allows for hash rates to be reduced by millions of times from various giga hashes to under a kilo hash. They are now claiming to be the most secure decentralized and eco-friendly cryptocurrency. Also in July all public mining pools were discontinued. Instead the mining pools are being awarded to charities, NGOs and foundations. Their strategy is to help billlions of marginalized and unbanked people around the world through their planned launch of an eLearning platform “Gig Guru” that will allow users to learn, share and monetize their digital skills using ETN as payment. Mr. Carney’s proposal is perhaps already well underway.

  10. Money is the control, all other controls are it’s subjects.
    Catherine Austin Fitts mentioned a merit based economy, one based on actual work and products, and how such an economy would benefit all except for the entrenched holders of vast amounts of money.
    I would like to mention, democracy works pretty good when everyone is honest. Both these statements, while possibly true, are but dreams and wishes, when another zero is available for our dear bankers balance sheets. They, of course, have your best interest at heart with their new proposals. Gosh … I’m beginning to bleed cynicism …

  11. Even the “smartest” AI would find it hard to predict the price of any given substance in terms of the present debt-based currency.
    As for gold and other metals, the “cabal” is apparently having trouble manipulating prices through futures contracts. Some type of manipulation has been going on for centuries and is likely to continue, but the shorter term focus is probably what interests most of us.
    For a serious look at the potential demand, one should recall C.A. Fitts’ study of the Rise of the Asian Consumer. As a couple of billion people are showing increasing interest in gold and silver, it seems reasonable to imagine that prices will edge upwards; this is compounded by factors like money printing and negative interest rates. It is part of the culture in most of the world, certainly in Europe and Asia, for people to buy some silver or gold items when they have a little extra money, both as jewellery, an emergency reserve and something to pass on to their children.
    According to a 2013 BBC article, the amount of gold ranges from the “official” figure of 171,300 tonnes to 16 times that, 2.5 million tonnes. That’s between 6 billion and 96 billion ounces. Quite a big difference. There are very probably off-the-books stashes of gold, and these are very probably rehypothecated many times. (But even here, the key lies in who has physical control and not in who has a hypothetical paper claim.)

    1. Let’s turn to the private mass market. It just takes a few trinkets in a drawer and perhaps in dental work to total an ounce of gold.
      Your suggestion is, that if large amounts of physical were put on the market, this would collapse the price with a process of wealth harvesting, i.e. devaluing privately held gold in terms of whatever currency. A sort of “deflation” of gold similar to monetary deflation.
      This seems unlikely in the foreseeable for a couple of reasons. This deflation of gold would be detrimental to the central banking system, which is now increasing its reserves. Now central banking too is “multipolar”: Europe-US, Russia, China. I don’t see any powers apart from the latter with the capability of dumping gold. And such dumping could not be done secretly. So that rules out massive artificial production of gold using free energy, which would imply the public rollout of THAT technology, which would change the whole scenario.

      1. Even if some party did dump gold, it is questionable, re sic stantibus, whether this would be very effective in significantly lowering its price in terms of “fiat currency”. It is my guess that an analyst could envisage a probable scenario in which the Asian consumer demand would merely increase to take advantage of the lower price. Just look at the insatiable “hunger” for gold in India, for deep-rooted cultural reasons. And if dumping could momentarily beat down the price in “major” currencies like the US dollar, what about the price in RMB, Rupees or other currencies? In other words, if 2 billion people from the Punjab to Tokyo added just a few trinkets to their collection, that might be as much as 2 billion ounces.
        All of this without going into the symbolic, physical and indeed interdimensional properties that make these metals interesting, whatever the price.

        1. I’m of the opinion that the true value of gold is more esoteric than metallic, thought it does have value in the electronics industry. This would apply to all the metals with esoteric uses.

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