Infinite Unknown

- Washington State Considers Gold and Silver as Legal Tender (The New American, Jan. 31, 2012):

In an effort to protect the property of citizens from the harmful effects of inflation created by the Federal Reserve, lawmakers in Washington State introduced a bill (PDF) over the weekend to declare gold and silver legal tender within the state. Sound-money advocates across the nation immediately praised the effort.

Citing several provisions of the U.S. Constitution and various rulings by the U.S. Supreme Court, the legislation notes that only gold and silver are to be considered legal tender by the states. The bill also blasts the federal government for imposing an unconstitutional monetary system on the states and for unjustly confiscating citizens’ wealth by allowing the Fed to create money.

The legislation seeks to offer the people of Washington an opportunity to use constitutional money instead of the ever-depreciating paper currency issued by the American central bank, lawmakers who sponsored the bill told The New American. However, no one would be forced to accept gold or silver as payment.

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Tags: Constitution, Dollar, Economy, Fed, Federal Reserve, Global News, Gold, Government, Law, Politics, Silver, Society, U.S., Washington

You can’t make this stuff up!

One of the laments of the uberdoves in the world over the past several years has naturally been the fact that interest rates are bound by Zero on the lower side, and that the lowest possible rate on new paper is, by definition, 0.000%. Which is what led to the advent of QE in the first place: in lieu of negative rates, the Fed was forced to actively purchase securities to catch up to a negative Taylor implied rate. This may be about to change, because as the just released letter from the Treasury Borrowing Advisory Committee, or as we affectionately called the JPMorgan/ Goldman Sachs Chaired committee, the “Supercommittee That Runs America”, simply because it alone makes up Tim Geithner’s mind on what America needs to do funding wise, demand, “It was broadly agreed that flooring interest rates at zero, or capping issuance proceeds at par, was prohibiting proper market function. The Committee unanimously recommended that the Treasury Department allow for negative yield auction results as soon as logistically practical.” And what JP Morgan and Goldman Sachs want, JP Morgan and Goldman Sachs get. And once we get the green light on negative yields at auction, next up will be the push for the Fed to impose negative rates on all standing securities, which means that coming soon savers will be literally paying to hold cash. And that will be the final straw.

Not only that, but beginning in just 4 short months, the Treasury may launch a brand new product: a Floating Rate Bond. From the TBAC: Continue reading »

Tags: Barack Obama, Bonds, Debt, Dictatorship, Dollar, Global News, Goldman Sachs, Government, JPMorgan, New World Order, Obama administration, Politics, Timothy Geithner, U.S.

“I was personally present when the deputy economics minister of Iran was talking to a foreign society in Berlin”

“And the gentleman said very openly to the shocked audience ‘OK.

You don’t want to buy our goods. Well, the Chinese do.”

– Christoph R. Horstel

- Iran, Gold and Oil – The Next Banksters War (Batr, Jan. 29, 2012):

Remember the real reason why Moammar Gadhafi is dead. He dared to propose and started creating an alternative currency to the world reserve U.S. Dollar. The lesson learned in Libya is now ready for teaching in Iran. Forget all the noise about going nuclear, the true message is that the banksters rule and nation states serve their ultimate masters. The hype and disinformation that surrounds the push for war is best understood by examining the viewpoint of Iranian MP Kazem Jalali. The Tehran Times quotes him in saying,

“The European Union must be aware that it can never compel the Islamic Republic to succumb to their will and undermine the Iranian nation’s determination to achieve glory and independence, access modern technologies, and safeguard its rights, through the intensification of the pressure.”

“The European Union is seeking to politicize the atmosphere ahead of nuclear talks with Iran and is aware that sanctions on Iran’s oil exports cannot be implemented since the world is not limited to a number of European countries”

Many political commentators warn that an embargo is an act or war. Chris Floyd provides this observation of the recent oil embargo against Iran.

“This week, the warlords of the West took yet another step toward their long-desired war against Iran. (Open war, that is; their covert war has been going on for decades — via subversion, terrorism, and proxies like Saddam Hussein.) On Monday, the European Union obediently followed the dictates of its Washington masters by agreeing to impose an embargo on Iranian oil.

The embargo bans all new oil contracts with Iran, and cuts off all existing deals after July. The embargo is accompanied by a freeze on all European assets of the Iranian central bank. In imposing these draconian measures on a country which is not at war with any nation, which has not invaded or attacked another nation in centuries, and which is developing a nuclear energy program that is not only entirely legal under international law but is also subject to the most stringent international inspection regime ever seen, the EU is “targeting the economic lifeline of the regime,” as one of its diplomats put it, with admirable candor.”

The most important aspect of the Iranian response lies in the way that changes oil settlement for delivery and the futile effect of the US/Anglo/EU imperialist dictates have in the marketplace.

Debkafile reports that India (and probably China) will pay for Iranian oil in gold.

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Tags: Dollar, Economy, EU, Euro, Europe, Government, Iran, Libya, Military, Muammar Gaddafi, Obama administration, Oil, Oil Prices, Politics

And elite puppet financier George Soros SHOULD KNOW, because he generously helped funding the ‘Occupy Wall Street’ movement!

From the article:

‘The euro must survive because the alternative – a breakup – would cause a meltdown’
- George Soros

‘The situation is about as serious and difficult as I’ve experienced in my career’
- George Soros

‘The worst-case scenario is a collapse of the financial system’
- George Soros

This is just hilarious! George Soros warns of the the dire (intentional!) consequences of a crisis that his elite masters created in the first place.

The greatest financial collapse in world history IS THE PLAN! The destruction of the middle class and of the US dollar IS THE PLAN! Turning the US into a Third World country IS THE PLAN! Total chaos followed by ‘Ordo ab Chao’ and the fascist New World Order IS THE PLAN!

Prepare for collapse! ALERT: Baltic Dry Index Collapses (!!!)

Looks like George Soros’ liver and kidneys are starting to … FAIL!

Warnings: George Soros said he’d rather survive than stay rich as the world faces an ‘evil’ period and Europe fights a ‘descent into chaos and conflict’

- ‘There will be riots on streets of America’: George Soros predicts class war in U.S. as euro triggers collapse of global economy (Daily Mail, Jan. 25, 2012):

• Billionaire New York investor warns of impending economic meltdown
• Backs euro and buys Italian bonds from Jon Corzine’s failed MF Global
  
• Warns it’s ‘difficult to know right decisions to make’ after boom years
  
• Supports Occupy Wall Street, Democrats and Obama re-election efforts

‘The euro must survive because the alternative – a breakup – would cause a meltdown that Europe, the world, can’t afford,’ he told Newsweek.

‘The situation is about as serious and difficult as I’ve experienced in my career. We are facing now a general retrenchment in the developed world.’

His warnings came as U.S. stocks dipped on Tuesday, with talks to resolve Greece’s debt crisis faltering and threatening a five-day winning streak.

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Tags: Barack Obama, Dollar, Economy, EU, Euro, Europe, George Soros, Global News, Government, Obama administration, Politics, Riots, Society, U.S.

- Bill Gross’ Explains The FOMC Decision: “QE 2.5 Today, QE 3, 4, 5 … Lie Ahead” (ZeroHedge, Jan. 25, 2012):

Pimco just saved you lots of garbage sellside “research” “analysis” on the topic.

Tags: Bill Gross, Dollar, Economy, Fed, Federal Reserve, Global News, Gold, Government, Obama administration, PIMCO, Politics, Quantitative Easing, Silver, U.S.

- India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees (ZeroHedge, Jan. 21, 2012):

Two weeks ago we wrote a post that should have made it all too clear that while the US and Europe continue to pretend that all is well, and they are, somehow, solvent, Asia has been smelling the coffee. To wit: “For anyone wondering how the abandonment of the dollar reserve status would look like we have a Hollow Men reference: not with a bang, but a whimper… Or in this case a whole series of bilateral agreements that quietly seeks to remove the US currency as an intermediate. Such as these: “World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan sign new $15bn currency swap agreement“, and now this: “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says.”” Today we add the latest country to join the Asian dollar exclusion zone: “India and Iran have agreed to settle some of their $12 billion annual oil trade in rupees, a government source said on Friday, resorting to the restricted currency after more than a year of payment problems in the face of fresh, tougher U.S. sanctions.” To summarize: Japan, China, Russia, India and Iran: the countries which together account for the bulk of the world’s productivity and combined are among the biggest explorers and producers of energy. And now they all have partial bilateral arrangements, and all of which will very likely expand their bilateral arrangements to multilateral, courtesy of Obama’s foreign relations stance which by pushing the countries into a corner has forced them to find alternative, USD-exclusive, arrangements. But yes, aside from all of the above, the dollar still is the reserve currency… if only in which to make calculations of how many imaginary money one pays in exchange for imaginary ‘developed world’ collateral.

On India’s induction into the dollar unluck club, from Reuters.

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Tags: China, Dollar, Economy, Global News, Government, India, Iran, Oil, OPEC, Politics, U.S.

YouTube Added: 17.01.2012

Description:

Press TV interviews Max Keiser, journalist and broadcaster in Paris about the credit rating agency’s role in having nations impose austerity measures on the people of Europe and the damage this is causing to sovereign nations.

Tags: Banking, Bonds, Debt, Dollar, Economy, EU, Euro, Europe, Germany, Global News, Gold, Government, Max Keiser, Politics, Quantitative Easing, Rating, U.S.

- Faber’s Latest Rant On Global Monetization Wars (ZeroHedge, Jan. 13, 2012):

There is a little for everyone in Marc Faber’s latest appearance on CNBC. The infamous boomer (and doomer) believes (as we do) that today’s downgrades are less significant for stocks (at least until the realization that banks and more importantly insurance companies are about to be cut as well – keep a close eye out on Allianz and Generali (of ASSGEN fame) – it is not incidental that they are abbreviated to A&G, just one letter away from our own AIG) as it is largely priced in but the equity market’s rally of the last few weeks (with its lack of breadth and volume) is strongly suggestive of a bear-market rally (as opposed to the decoupling bull market that so many hope for). His view quite simply is that the ECB has undergone a backdoor monetization and without this the EUR would be significantly stronger especially given the huge short-interest (though he sees the trend for EUR is down). However, he remains unenthusiastic at the inevitable outcome – suggesting the majority of European nations deserve a CCC rating (which is clearly not priced in) and that the USA should not be AAA (noting that even Germany has huge unfunded liabilities as it writes check after check to save its socialist sorority sisters).

Admitting that he was wrong on US Treasuries (short) last year, he still worries of the long-term value in holding the ponzi-paper and addresses what seemed like the theory-du-jour that a weaker EUR is good for European exports and so all-is-well in the world by pointing out (among other things) that many large European corporations have huge amounts of USD-denominated debt making their debt servicing costs much higher. His perspective on Europe is interesting, concerned that we may see one country say enough-is-enough and leave the Euro, he believes the US outperformance over Europe will unwind and that quality companies in Europe and Emerging Markets are the place to be for investors. Noting that they are admittedly not compelling values he points to the difficulty of valuing anything in a zero-interest rate environment. The worse the global economy looks, the weaker the Chinese economy performs,  and the more the reaction will be money printing which will lift equity prices (whereas the real economy is faltering and standards of living going down fast) leaving him holding gold at the core but realizing stocks will rise nominally.

Finally, his “black swan” scenario is some country saying “we’ve had enough. We are exiting the euro.” Which brings us to the issue of the Greek coercive restructuring which now appears to be just a matter of weeks if not days away. And once Greece pulls the plug, and the Eurozone does not implode (hypothetically), it will set an example whereby more and more countries do the same, until finally the system does crash under its own weight, as everyone does a CDS-triggering restructuring, in effect tearing the Eurozone from the inside.

Tags: Bonds, Debt, Dollar, ECB, Economy, EU, Euro, Europe, France, Germany, Global News, Government, Marc Faber, Politics, Quantitative Easing, Rating, U.S.

YouTube Added: 10.01.2012

YouTube

Tags: Bailout, Banking, Bill of Rights, Constitution, Debt, Dollar, Economy, Fed, Federal Reserve, Freedom, Global News, Government, Keynesianism, Middle Class, Military, Politics, Quantitative Easing, Ron Paul, U.S.

- Iran, Russia Replace Dollar with National Currencies in Trade Exchanges (FNA, Jan. 7, 2012):

TEHRAN – Iran and Russia have replaced US Dollar with their own currencies in their trade ties, a senior Iranian diplomat announced on Saturday.

Speaking to FNA, Tehran’s Ambassador to Moscow Seyed Reza Sajjadi said that the proposal for replacing US Dollar with Ruble and Rial was raised by Russian President Dmitry Medvedev in a meeting with his Iranian counterpart Mahmoud Ahmadinejad in Astana on the sidelines of the Shanghai Cooperation Organization (SCO) meeting.

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Tags: Dollar, Economy, Global News, Government, Iran, Politics, Russia, U.S.