Tag Archives: Gold

Ship with 700 tons of gold ore disappears off Russia


Ship with 700 tons of gold ore disappears off Russia

MOSCOW – A vessel with a nine-person crew and 700 tons of gold ore onboard has disappeared in stormy seas off Russia’s Pacific Coast.

The ship sent a distress call on Sunday as it was sailing from the coastal town of Neran to Feklistov Island in the Sea of Okhotsk.

The vessel, hired by mining company Polymetal, was carrying 700 tons of gold ore from one deposit to another where it was to be processed. Gold ore is the material from which gold is extracted and contains only a small percentage of the precious metal.

Polymetal’s spokesman on Monday would not estimate the value of the cargo.

The company said it has shipped ore via that route before, and there was nothing unusual in shipping it by the sea.

Read more: SOURCE

YOU are the Terrorist your President warned you about

Report: Federal Agents Demand Customer Lists From Food Storage Facility

Mac Slavo


“Just because I’m paranoid doesn’t mean they’re not out to get me.”

-Unknown

You may recall that the FBI, Department of Homeland Security and local law enforcement have regularly issued bulletins regarding domestic terrorist related activities that include suspicious purchasing habits to look for and how to recognize the 8 signs of terrorism. Federal training programs held for police departments across the country detail specific habits and characteristics of potential domestic terrorists including everything from homeschooling, leaning towards libertarian political philosophies, and holding strong religious views, to reading survivalist literature. It’s no secret that the government has been attempting to keep tabs on Americans who are acting outside of the status quo, warning those in the mainstream that any deviation in “normal” behavior should be construed as suspect and potentially dangerous – even your best pal could be a terrorist if he begins acting counter to his usual behavior.

The latest government effort to identify would-be terrorists and persons-of-interest comes to us from Tennessee, where federal agents have taken the need to acquire actionable intelligence to a whole new level. They are, by all accounts, no longer just sitting back and waiting for business owners like surplus store owners or the general public to provide them with suspicious activity reports, but rather, are taking matters into their own hands.

Oath Keepers has learned that federal agents recently visited a Later Day Saints (Mormon) Church food storage cannery in Tennessee, demanding customer lists, wanting to know the identity of Americans who are purchasing food storage from the Mormons.

This incident was confirmed, in person, by Oath Keepers Tennessee Chapter President, Rand Cardwell. Here is Rand’s report:

“A fellow veteran contacted me concerning a new and disturbing development. He had been utilizing a Mormon cannery near his home to purchase bulk food supplies. The man that manages the facility related to him that federal agents had visited the facility and demanded a list of individuals that had been purchasing bulk food. The manager informed the agents that the facility kept no such records and that all transactions were conducted on a cash-and-carry basis. The agents pressed for any record of personal checks, credit card transactions, etc., but the manager could provide no such record. The agents appeared to become very agitated and after several minutes of questioning finally left with no information. I contacted the manager and personally confirmed this information.”

“So on the one hand, government agencies both state and federal are urging you to be prepared and even checking up on you to see how prepared you are, and on the other hand, we now have federal agencies that are attempting to gather information on individuals that are following FEMA suggestions. What is the reasoning behind gathering this information? Are American citizens now being ‘listed’ by DHS if they are simply following FEMA guidance and purchasing bulk food and emergency supplies for their families? It appears as so.”

So why do federal agents want to know who is storing away long-term food storage? We suspect it is for the following reasons:

1. DHS/FEMA wants to know which Americans have food storage so the federal government can at some future point confiscate that food. Just as with lists of gun owners, compiling such lists is the first step toward future confiscation.

2. DHS wants to identify those Americans who are “switched on” and squared away enough to actually store food for coming hard times (such as during an economic collapse). That population of awake, aware, and prepared Americans poses a “threat” to whatever DHS and its masters have in store for the American people, and as Joseph Stalin so ably demonstrated, one of the easiest ways to subjugate defiant people is to confiscate their food and starve them into submission.

Clearly, in light of the above, if you purchase food storage, along with any other preparedness items, you should be concerned about those purchases being tracked and your name winding up on some government list. But don’t let that stop you from storing food and other essential supplies, and don’t let this disturbing incident keep you from using your local Mormon cannery to do so. You need to get prepared. But do it while following the advice of James Wesley, Rawles over at www.survivalblog.com, who repeatedly urges his readers to “think OPSEC!” – if at all possible, buy with cash and pick it up in person, just like the customers of this particular cannery did, which left the “agitated” agents empty handed and frustrated.

Source:
Oath Keepers (via a report by Oathkeepers Founder Stewart Rhodes)

If this report is accurate – and we have no reason to believe it’s not – then not only is government intrusion into the private and lawful activities of American citizens reaching unprecedented levels, but every individual who has ever taken the time to acquire bulk foods and supplies or even discuss preparedness related information on an internet message board is now a person-of-interest.

For many it may be impossible to “get off the grid,” and with so many nodes in the modern day police state there is a paper or digital trail for almost everything. As recommended by Oathkeepers’ Stewart Rhodes, while you may not be able to keep all of your personal activities private (highly ironic considering the principles on which this country was founded), you may be able to minimize your foot print:
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ACTION ITEM
Assume everything you do is monitored and archived. Everything. Which means, chances are, you’ve already left a Sasquatch footprint in a Fusion center somewhere.

Use cash whenever possible. This is not always feasible, but is good practice, especially when buying hundreds of pounds of food at one time. You can also try temporary credit cards (available at your local grocery store or gas station) but even these provide only a thin level of security.

Don’t readily identify yourself as a preparedness minded individual

Be aware that when you say or do something, someone else may see something and report it

If you have like minded family and/or friends then make an effort to diversify your assets. Don’t keep all of your food and other supplies in any one location. Confiscation, as we saw in the aftermath of New Orleans, is the reality when martial law has been declared. If you are engaging in any of the “suspicious” activities and behaviors highlighted in this article, then you should assume that you will be targeted by agents of whatever authority is charged with protecting residents in a disaster or emergency area.

Consider preemptive contingency planning for the possibility of confiscation now. Obviously, someone is trying to get their hands on lists of names, and you must assume you’re on that list (regardless of how careful you think you’ve been). If they come, they will come at exactly the moment that you have nothing to spare. Designate one or two people to acquire goods, while others store those goods at your retreat or bug out locations. While not foolproof, this strategy may provide some level of protection.

Always have backups for your backups. Get a shovel, dig a hole. Store at least 60 – 90 days of emergency food and other supplies (you know which ones) in a location that is known only by you and your closest and must trusted family/friend(s). Also remember, as a prepper, you can never have enough holes dug (take that literally or figuratively)

You can call it paranoia. But it’s becoming increasingly clear that you’re justified in your thinking – and you’re not alone.

SOURCE

la repatriation

Venezuela brings home gold reserves

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Up to 160 tonnes of gold, worth more than $11bn, is expected to be repatriated back to Venezuela

A shipment of gold has been deposited in Venezuela’s central bank in Caracas after President Hugo Chavez ordered the repatriation of most of the country’s bullion reserves from overseas banks.

Cheering crowds lined the streets on Friday as the shipment was escorted by armoured trucks to the bank from the Venezuelan capital’s Maiquetia airport, beginning a process that will eventually see up to 160 tonnes of gold, worth more than $11bn, brought home.

Chavez ordered the repatriation of 85 per cent of the country’s bullion, which has mostly been held in European and US banks, saying the move would protect Venezuela’s reserves from global economic turbulence.

“Here it’s going to be safe

– Nelson Merentes, Central Bank president, Venezuela

“It’s coming to the place it never should have left. … The vaults of the central bank of Venezuela, not the bank of London or the bank of the United States. It’s our gold,”
Chavez said on national television.

Nelson Merentes, the president of the central bank, said the gold had come from the UK but did not say how much was in the first shipment, citing security concerns.

‘It’s a guarantee’

The gold had been held abroad since the late 1980s as backing for loans requested from the International Monetary Fund by prior governments, he said.

Merentes called the repatriation of the gold a “guarantee” for the country.

“If there’s some problem in the international markets, here it’s going to be safe,” he said.

Chavez’s opponents have called the plan costly and ill-advised, while some suggested Chavez was acting out of fear that Venezuela’s overseas assets could one day be frozen by sanctions, as happened to those of his ally, the late Libyan leader Muammar Gaddafi.

SOURCE

These States Will Suffer the Most in the Event of an EU Collapse

These States Will Suffer the Most in the Event of an EU Collapse
by Becket Adams

Some analysts believe that a collapse of the EU will have a calamitous effect on the U.S. economy. But exactly how will that play out, that is, who will get hit the hardest?

Although every state would feel the effects of a possible EU collapse, as a halt of billions of dollars in exports to the EU could prove to be disastrous, analysts believe there are some states in particular that will bear the brunt of the burden.

As it turns out, Utah, South Carolina, Indiana, Alabama, Washington state, and West Virginia, all relying heavily on exported commodities, will most likely suffer the worst, according to a new study by Wells Fargo Securities.

“We don‘t think it’s enough to pull us into recession, but exports have been one of the lone bright spots in our economy,”
said Mark Vitner, senior economist at Wells Fargo Securities who co-authored the report.

In Utah, which has an economy that relies on selling gold and silver produced in nearby states, European exports comprise 46 percent of all exports and 5.6 percent of the state’s economic output, according to the Wells Fargo report, writes the Post.

Or consider the case of South Carolina, an automobile manufacturing hub, where European exports make up 4.1 percent of the economy.

West Virginia’s economy is closely tied to the coal industry. Exports to Europe make up nearly 4 percent of the state’s GDP. So as Europe’s economy sinks, so too — the argument goes — will West Virginia’s GDP, reports the Global Post

Eight of the U.S.’s top 30 trade partners, according to the Department of Commerce, are European countries. However, some remain optimistic and maintain that a lower demand for exports would not necessarily plunge the U.S. deeper into recession, since exports account for just 11 percent of the U.S. economy, according to the World Bank.

“Slow growth in Europe has already restrained U.S. economic growth,” said Vitner, according to the Huffington Post. “U.S. economic growth would have been 2.5 percent in 2012 — in contrast to Wells Fargo’s current prediction of 2.1 percent — if the European economy was growing at a healthy pace.”

Although an absence of exported goods due to a collapse of the EU could prove harmful to the U.S. (and some states in particular), just think about the economic fallout for the banks.

In the word’s of Harvard historian, and as reported earlier on The Blaze, Niall Ferguson writes:

Europe’s problem is not just that governments are overborrowed. There are an unknown number of European banks that are effectively insolvent if their holdings of government bonds are “marked to market”—in other words, valued at their current rock-bottom market prices.

Because of the existence of our present global economy, some U.S. financial institutions will naturally be affected by the euro banks collapsing.

Consider the fact that some of the biggest U.S. banks have some sort of “exposure” to euro bonds and banks. If the euro banks become “effectively insolvent,” this will affect the U.S. banks that have investments in those bonds.

To put it plainly, things are not looking good.

SOURCE

Wikileaks Discloses The Reason(s) Behind China’s Shadow Gold Buying Spree

Wikileaks Discloses The Reason(s) Behind China’s Shadow Gold Buying Spree

Zero Hedge

Wondering why gold at $1850 is cheap, or why gold at double that price will also be cheap, or frankly at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar’s reserve status. Putting that into dollar terms is, therefore, impractical at best, and illogical at worst.

We have a suspicion that the following cable from the US embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24 karat pool. The only thing that matters from China’s perspective is that “suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.” Now, what would happen if mutual and pension funds finally comprehend they are massively underinvested in the one asset which China is without a trace of doubt massively accumulating behind the scenes is nothing short of a worldwide scramble, not so much for paper, but every last ounce of physical gold…

From Wikileaks:

3. CHINA’S GOLD RESERVES

“China increases its gold reserves in order to kill two birds with one stone”

“The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): “According to China’s National Foreign Exchanges Administration China ‘s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.”

Perhaps now is a good time to remind readers what will happen if and when America’s always behind the curve mutual and pension fund managers finally comprehend that they are massively underinvested in the one best performing asset class.

From The Driver for Gold You’re Not Watching (via Casey Research)

You already know the basic reasons for owning gold – currency protection, inflation hedge, store of value, calamity insurance – many of which are becoming clichés even in mainstream articles. Throw in the supply and demand imbalance, and you’ve got the basic arguments for why one should hold gold for the foreseeable future.

All of these factors remain very bullish, in spite of gold’s 450% rise over the past 10 years. No, it’s not too late to buy, especially if you don’t own a meaningful amount; and yes, I’m convinced the price is headed much higher, regardless of the corrections we’ll inevitably see. Each of the aforementioned catalysts will force gold’s price higher and higher in the years ahead, especially the currency issues.

But there’s another driver of the price that escapes many gold watchers and certainly the mainstream media. And I’m convinced that once this sleeping giant wakes, it could ignite the gold market like nothing we’ve ever seen.

The fund management industry handles the bulk of the world’s wealth. These institutions include insurance companies, hedge funds, mutual funds, sovereign wealth funds, etc. But the elephant in the room is pension funds. These are institutions that provide retirement income, both public and private.

Global pension assets are estimated to be – drum roll, please – $31.1 trillion. No, that is not a misprint. It is more than twice the size of last year’s GDP in the U.S. ($14.7 trillion).

We know a few hedge fund managers have invested in gold, like John Paulson, David Einhorn, Jean-Marie Eveillard. There are close to twenty mutual funds devoted to gold and precious metals. Lots of gold and silver bugs have been buying.

So, what about pension funds?

According to estimates by Shayne McGuire in his new book, Hard Money; Taking Gold to a Higher Investment Level, the typical pension fund holds about 0.15% of its assets in gold. He estimates another 0.15% is devoted to gold mining stocks, giving us a total of 0.30% – that is, less than one third of one percent of assets committed to the gold sector.

Shayne is head of global research at the Teacher Retirement System of Texas. He bases his estimate on the fact that commodities represent about 3% of the total assets in the average pension fund. And of that 3%, about 5% is devoted to gold. It is, by any account, a negligible portion of a fund’s asset allocation.

Now here’s the fun part. Let’s say fund managers as a group realize that bonds, equities, and real estate have become poor or risky investments and so decide to increase their allocation to the gold market. If they doubled their exposure to gold and gold stocks – which would still represent only 0.6% of their total assets – it would amount to $93.3 billion in new purchases.

How much is that? The assets of GLD total $55.2 billion, so this amount of money is 1.7 times bigger than the largest gold ETF. SLV, the largest silver ETF, has net assets of $9.3 billion, a mere one-tenth of that extra allocation.

The market cap of the entire sector of gold stocks (producers only) is about $234 billion. The gold industry would see a 40% increase in new money to the sector. Its market cap would double if pension institutions allocated just 1.2% of their assets to it.

But what if currency issues spiral out of control? What if bonds wither and die? What if real estate takes ten years to recover? What if inflation becomes a rabid dog like it has every other time in history when governments have diluted their currency to this degree? If these funds allocate just 5% of their assets to gold – which would amount to $1.5 trillion – it would overwhelm the system and rocket prices skyward.

And let’s not forget that this is only one class of institution. Insurance companies have about $18.7 trillion in assets. Hedge funds manage approximately $1.7 trillion. Sovereign wealth funds control $3.8 trillion. Then there are mutual funds, ETFs, private equity funds, and private wealth funds. Throw in millions of retail investors like you and me and Joe Sixpack and Jiao Sixpack, and we’re looking in the rear view mirror at $100 trillion.

I don’t know if pension funds will devote that much money to this sector or not. What I do know is that sovereign debt risks are far from over, the U.S. dollar and other currencies will lose considerably more value against gold, interest rates will most certainly rise in the years ahead, and inflation is just getting started. These forces are in place and building, and if there’s a paradigm shift in how these managers view gold, look out!

I thought of titling this piece, “Why $5,000 Gold May Be Too Low.” Because once fund managers enter the gold market in mass, this tiny sector will light on fire with blazing speed.

SOURCE

The shot muffled by mainstream media: Chavez Launches War Against US Dollar

Chavez Launches War Against US Dollar

Venezuelan President Hugo Chavez ordered his government to repatriate $11 billion in gold held in banks abroad to safeguard the country from the economic crisis and said he’ll nationalize the local gold industry. Venezuela has about 211 tons of its 365 tons of gold reserves held abroad at institutions including the Bank of England, JP Morgan Chase & Co. (JPM), Barclays Plc (BARC), Standard Chartered Plc (STAN) and the Bank of Nova Scotia (BNS), according to a government document. … Chavez, who has said he wants to eliminate the “dictatorship” of the U.S. dollar, has called on Venezuela’s central bank to diversify its $28.7 billion in reserves away from U.S. institutions. – Bloomberg

Dominant Social Theme: The government knows best how to manage the money supply; Chavez will lead the way.

Free-Market Analysis: Whoa! Hold the US dollar horses, folks… the global reserve currency game just got a whole lot more interesting. There is, in our humble opinion, a whole lot more to this story than just the repatriation of gold being held at foreign central and commercial banks. It is perhaps the biggest story to unfold in the currency markets in many years.

One thing everyone with an inkling of monetary knowledge is familiar with is that central banks’ monopoly over the issuance of fiat currency is a destructive process of wealth redistribution – ultimately enslaving nations under a perpetual sea of debt. International money power ends up controlling the targeted nations’ media, government (including the courts) and, via mercantilist corporate activities, its natural resources and productive capacity.

Now, the global currency that has acted as the world’s de facto reserve currency is the US dollar. But that is changing. The dollar is dying. In fact, we think it is already dead… we just haven’t had the funeral yet. But wait… what Chavez has just done is fire a major shot over the bow of the Federal Reserve and we think this could possibly be the death blow to the US dollar. Here’s why…

For astute observers of recent history, we have seen what happens when people like Saddam Hussein or Libya’s Muammar Gaddafi threaten to create gold backed currencies or international trade (in particular, oil) that could be settled not in US dollars – but gold. These people have very short life expectancies, to say the least.

The Holy Grail of international central banking and its major building blocks, of which the US dollar is most certainly at the focal point, will be protected at all costs. Bloodshed and human lives are meaningless in the game of global power consolidation, which is only possible as long as the money masters controlling the world’s pillars of power are able to create money out of nothing and grant themselves the “legal” license to do that.

Ultimately the plan is to merge, out of the global financial crises, the various major currency building blocks, such as the US dollar and the euro, into one global currency. This merged currency will likely be issued by the Bank for International Settlements and managed by the International Monetary Fund and the World Bank – all non-elected international edifices that stand under the umbrella of the United Nations.

Now, as we have seen in the past, it is usually a death sentence for anyone who departs company with the central bankers and their global US dollar based Ponzi scheme. NATO and the US military-industrial complex are quick to act on CIA reports or other such propaganda that the ever-willing mainstream media enthusiastically trumpet to get the mass voters emotionally charged around some side-car fabricated issue that justifies immediate force be taken. Of course, the real issue of fiat money is not to be discussed at all, for that could lead to people questioning the legitimacy of the Federal Reserve System, which cannot stand up to an honest evaluation.

Today the Internet Reformation is quickly advancing the public’s understanding of what money is and what it is not – at least historically speaking. People are starting to see that the money stuff in their wallets is nothing more than a promise to pay – a debt. But a debt to whom? And how do the money lenders collect on the debts? Where did they get the money from in the first place to “lend” to the citizens?

The entire system is a rigged game of deceit whereby the money magicians at the Federal Reserve have been granted license by the US government to “create money out of thin air.” The US Constitution has been totally ignored and the Anglosphere power elite that took control of the US government following the American Civil War have been printing themselves into control over US-based assets and enslaving its population in debt and an eternal “time tax” ever since.

Granted, it didn’t happen overnight. It took time to subvert the Constitution and install a central bank. The public needed to be in fear of the private market. JP Morgan, acting on behalf of the Rothschilds and others, served their purposes well. G. Edward Griffin has pointed out in his monumental analysis of the true origins of the Federal Reserve Act that it was a shameless deceit intended to pass the key to siphoning off America’s growth and productivity back to the Anglosphere elite about whom the Founding Fathers issued many warnings, and against which the Constitution and the Bill of Rights were supposed to protect.

Now here we are, some 100 years into the Federal Reserve’s existence and accompanying money manipulation, and money power is facing its greatest challenge from an information medium originally intended to grant greater visibility of “subjects'” activities. Instead, the medium is providing the very impetus that is undoubtedly creating major problems for the short-term implementation of a global super fiat-currency.

Although we agree that the crises sweeping the world’s money marts today do play into the “out of chaos… order” scenario, what doesn’t play into that are leaders of nations going their own direction – especially if the road they’re taking is built on a currency that has any relationship to a gold backing.

As stated above, NATO and the US military-industrial complex will handle the dirty work of eliminating such threats, should they arise. And here we have the little dictator from Venezuela coming along and demanding the repatriation of his country’s gold from the Bank of England at that. This is really not going to go over very well with the powers that be, to say the least.

For it is not simply the fact that Chavez has decided to “bring home the gold” that is of interest here, but the question of why. And herein lies the “golden answer” …

Several months ago, one of our elves, along with an esteemed free-market economist, drafted a proposal that laid out a detailed process by which a nation rich in gold and exports (in this case, oil) could create a dual currency platform – one of which was based on gold. Now, it is important to note that this is not the ideal situation, though it is a step in the right direction, for a gold-backed currency to evolve, should it prove the winner in a free-market currency competition as we believe it would. Ultimately, we believe governments should not be involved in the issuance of money at all.

Having said that, the proposed plan was circulated to government officials within countries that have in place the following dynamics: domestic gold production, a viable export market, and a government that isn’t under the control of Western money power. Further, the leaders of the country must be willing to face an international backlash of immense magnitude in order to embark on executing such a plan. In the case of Chavez he certainly doesn’t seem to care too much what the US government has to say.

Now, back to the currency war implication running beneath the surface of today’s announcement. There is another consideration. How long will it be before the other socialist-leaning governments in South America decide to follow Chavez’s lead? We think Ecuador, Bolivia and Peru are all very strong candidates – especially now that the US dollar is devaluing at such a rapid pace. All it takes for this Ponzi scheme to unravel is a blowback of demand and someone to trigger that event on the international markets. … Enter Chavez.

The international oil-game has long been a significant piece to maintaining dollar dominance. Having nations go their own way and seek alternative means to settling that trade would be devastating to the dollar. Once again, neither Iraq nor Libya will see that happen – at least not now. Will Chavez get away with this plan? Or will he face a newfound Western attack unleashed, already in place to unfold when needed?

Will Colombia be recruited to frontline the operation? After all, that country is ripe to launch a gold backing for its currency, but cannot. It receives simply too much monetary aid from the US taxpayers to fight its “war on drugs.” Alternatively, perhaps this whole Colombian war on drugs has beem more about the US maintaining a power base from which to bring force, if necessary, within the region.

The other component to the demise of the dollar is a reflection of the awakening of Americans themselves. Regular moms and pops are listening to the likes of Ron Paul – despite mainstream media’s attempts to marginalize (and even make invisible) his platform – and these newly attentive Americans are transferring out of the dollar. The Internet, as we have long proclaimed, is a transformative process that brings truth and understanding to the living rooms of all those who wish to understand how the current system works and why it is so parasitically destructive.

People are tired of the bankers’ bailouts. They are disgusted by the endless reams of lies that spew forth from their elected officials, all of whom are bought and paid for by international money power. People are tired of the barrage of mainstream propaganda attacking their every sense.

Conclusion: While we certainly do not endorse Chavez’s style of government, today’s announcement by Chavez is, in our opinion, important. It appears to be a step towards the implementation of a gold-backed currency in Venezuela. Will it operate as a domestic currency inside Venezuela only – one in which citizens may hold wealth while their fiat-currency continues to be spent abroad? Too early to tell. But something will likely spring forth over the coming months that threatens to further empower the destructive force of Hurricane Reality and the civil chaos that will likely erupt in its wake. Ironically, it is the dictator’s own words that sound like the tolling bell of an international currency war, “…he wants to eliminate the ‘dictatorship’ of the U.S. dollar.”

At the time of publishing this report, gold is again hitting all-time highs – trading above US$1825 per ounce.

Editor’s note: Chavez also announced that he was nationalizing the country’s mining industry, clearly not a plan we endorse. It makes no sense for many reasons. Since that is not the principal thrust of this article we will leave opining on that issue to others, except to say this: If Chavez wants to maintain the gold in order to underpin Venezuela’s currency then so be it. He would be much wiser, however, to allow private market competition to develop the potential of Venezuela’s gold industry – a highly speculative and costly endeavor to say the least – and to retain first right of refusal to buy any gold produced within Venezuela by foreign interests. Of course, the price paid would need to be at international market prices, but so what? Venezuela has tremendous oil exports that can continue to be priced in dollars and the international mining companies could swap their gold production for the paper dollars. The international miners all practice this ridiculous policy anyway, rather than keeping the gold to underpin the value of their shares. However, Chavez has decided to simply nationalize the gold industry, a move that will surely not bring about a robust gold producing scenario for Venezuela.

SOURCE

The Great Gold Sell Off? Will we pay off our debt by selling Ft. Knox Gold!

Selling Gold at Fort Knox Emerges as Next Big Question in Debate on Federal Debt Limit
Congressman Paul Endorses the Idea, Amid Showdown Between Congress, Administration

By DAVID PIETRUSZA, Special to the Sun | May 17, 2011

NEW YORK — The next big question on the federal debt limit could be whether to start selling the government’s holdings of gold at Fort Knox — and at least one presidential contender, Ron Paul, has told The New York Sun he thinks it would be a good move.

The question has been ricocheting around the policy circles today. An analyst at the Heritage Foundation, Ron Utt, told the Washington Post that the gold holdings of the government are “just sort of sitting there.” He added: “Given the high price it is now, and the tremendous debt problem we now have, by all means, sell at the peak.”

His comment came in the wake of not only the government having reached the statutory debt limit of $14.29 trillion but also the release of a report by the Heritage Foundation of a report on asset sales. The report outlined how a “partial sales of federal properties, real estate, mineral rights, the electromagnetic spectrum, and energy-generation facilities” might garner the federal treasury $260 billion over the course of the next 15 years.

The report did not mention the possibility of selling the government’s holding of 147 million ounces of bullion, which at recent prices of $1,500 an ounce, would be worth about $370 billion. But the possibility has not been lost in the policy debate now raging in Washington. The Wall Street Journal reported Monday that a group of Republican congressmen supports the idea of selling gold.

PART 2

Officials of the Obama administration have taken notice — and disagree. The assistant Treasury secretary for financial markets, Mary Miller, wrote in a posting on the Treasury Department’s Website May 6 that “fire sale” of the government’s financial assets, including gold, would not be a “viable option.” She urged instead a raising of the debt limit.

An unnamed senior administration official was quoted by the Washington Post as saying, “Selling off the gold is just one level of crazy away from selling Mount Rushmore.” The Wall Street Journal, in its dispatch Monday, reported that Treasury “could be forced to rethink” their opposition if the budget talks fail.

A study of gold reserve sales in the late 1990s noted that seven nations — Australia, Austria, Belgium, the Netherlands, Portugal, and Sweden — had then recently sold off substantial portions of their gold reserves. The sales, which amounted to 48% of those reserves, presaged a 26% devaluation in their nation’s respective currencies. Between 1999 and 2002, in 17 separate auctions, Britain sold off half of its gold reserve, netting $3.5 billion. What Britain sold is now worth $10.5 billion.

In September 2009 the International Monetary Fund authorized sales from its gold reserves. At the conclusion of its sales, the IMF had disposed of 403.3 tons of gold or 13% of reserves. Over half was purchased by the central banks of India, Sri Lanka, Mauritius, and Bangladesh. In early 2011, Communist China announced plans to increase its gold reserves from to 10,000 tons by decade’s end from the 1,200 tons it currently holds. Mexico has acquired 93.3 tons of gold this year, while Thailand added 9.3 tons to its national reserves this March. Russia added 22.5 tons in January and February.

In August 2010, a leading figure in the monetary debate in Congress, Ron Paul, a Republican of Texas, called for an audit of the federal government’s gold reserves. “If there was no question, you’d think they would be very anxious to prove to us that the gold is there. . . . ,” Dr. Paul then said, “In the early 1980s when I was on the gold commission, I asked them to recommend to the Congress that they audit the gold reserves – we had 17 members of the commission and 15 voted not to the audit. I think there was only one decent audit done 50 years ago.”

“If we ever get around to deciding we should use gold in relationship to our currency we ought to know how much is there,” Dr. Paul added, “Our Federal Reserve admits to nothing and they should prove all the gold is there. There is a reason to be suspicious and even if you are not suspicious why wouldn’t you have an audit?” In March 2008 the Times of London quoted a spokesman of the American treasury as saying that American gold holdings “are audited every year by the Department of Treasury’s Office of Inspector General. He confirmed that although independent auditors oversee the process they are not given access to the Fort Knox vault.”

Dr. Paul told the Sun today that he reckoned the sale of gold reserves would be “a good and moral decision. An individual would have to do the same.” The sentiment is echoed by another big name in the debate on monetary reform, Edwin Vieira Jr., who told the Sun he has little hope of the government moving to sound money and would prefer that it coin its gold holdings in pieces marked with their weight and use them to pay off debts, particularly individuals — who might be owed, say, tax refunds.

Mr. Vieira is a proponent of what he calls the “absolute separation between currency and debt.” He considers specified weights of gold and silver as the only constitutional currency. “Redeemable currency,” he says, “is an oxymoron.” And given that America is in an era of fiat money with no plans on the government’s part to mount a reform, he says of the government: “They don’t need the gold. They’ve just been sitting on it since Roosevelt stole it.”

However, one of the most famous advocates of the gold standard, Lewis Lehrman, opposes the sale of the gold holdings of the American government — or any part of them. “Under no circumstances should the United States consider selling a single ounce of gold,” Mr. Lehrman, who runs the internet project TheGoldStandardNow.org, told the Sun. “On the contrary, depending upon the facts and circumstances and the level of prices, the United States might be a gradual buyer.

Mr. Lehrman, who had served in the early 1980s with Dr. Paul as a member of the United States Gold Commission, had just been this afternoon interviewed by Diane Rehm of National Public Radio, on which he called for American leadership in restoring a gold standard. He did not suggest that it could be done immediately, but he argued that this is the time to start, saying: “We have all the grounding and the basis for the United States taking the lead in establishing the convertibility of the dollar today.”

http://www.nysun.com/national/selling-gold-at-fort-knox-emerges-as-next-big/87350/

Gold, Silver And Oil Are All Skyrocketing And That Is Bad News For The U.S. Economy

Gold, Silver And Oil Are All Skyrocketing And That Is Bad News For The U.S. Economy


The following is one statement that you should get used to seeing: “The price of gold set another record today.” Today, spot gold reached a new all-time record of $1461.91 an ounce before settling back a little bit. Silver is also skyrocketing. At one point today silver hit $39.75 an ounce. It seems inevitable that at some point we are going to be talking about $50 silver. The price of oil is also continuing to relentlessly march upwards. At last check U.S. oil was at about $108 a barrel. All of this is great news for those that are investing in gold, silver and oil, but all of this is also really bad news for the U.S. economy. Why? Well, because when these commodities go up in price it is a sign that the U.S. dollar is dying and that our country is getting closer to economic collapse.

Traditionally, there has been an inverse correlation between the price of gold and the value of the U.S. dollar. Usually when the U.S. dollar goes down, the price of gold goes up.

One of the main reasons why gold has been so strong over the past year is because the U.S. dollar has been rapidly losing value.

So why is the U.S. dollar declining?

Most economists point to all of the quantitative easing that the Federal Reserve has been doing.

So exactly what is quantitative easing?

Well, it is basically like playing Monopoly with someone that reaches under the table and pulls out a bunch of extra money when they are almost broke.

The Federal Reserve has been creating huge amounts of money out of thin air and has been pumping it into the financial system. It is essentially cheating, and it is highly inflationary. The rest of the world has not been amused.

But quantitative easing is not the only issue.

The truth is that whenever the U.S. government goes into more debt, more money is created. The U.S. has been running trillion dollar deficits for several years now, and this has created a lot of new money.

This is another reason why it is so important to get the U.S. government debt situation under control. The Obama administration is projecting that the budget deficit for this fiscal year will be about 1.6 trillion dollars. This is highly inflationary and it will continue to destroy the value of the dollar.

In addition, the rest of the world is beginning to have serious doubts about the sustainability of U.S. government debt. They are starting to lose faith in the U.S. dollar and in U.S. Treasuries.

In fact, investors are losing faith in paper currencies all over the globe. The euro is on the verge of a massive crisis. On Tuesday, Moody’s downgraded Portuguese government debt for the second time in a month. Portugal needs a bailout, but they are far from alone. A half dozen European nations are experiencing a financial meltdown and the European debt crisis could spiral out of control at any moment.

Because of all of this financial instability, investors have been seeking some place safe to put their money.

For many investors, precious metals and commodities have been the answer.

In fact, silver has been doing even better than gold lately. On Wednesday, silver set a new 31-year high for the third day in a row.

People are even starting to talk about the possibility of $50 silver. Most analysts would have considered such talk complete nonsense a year ago.

But now nobody is laughing.

The price of oil is also soaring. Some of that is due to inflation, but not all of it. The truth is that when it comes to oil there are other factors at play.

Unfortunately, a high price for oil is far more damaging to the U.S. economy than a high price for gold is.

The U.S. economy has been designed to use massive amounts of cheap oil to transport massive quantities of goods over vast distances. When the price of oil goes to $100 or $150 a barrel, it fundamentally changes the dynamics of our economic system.

Nobody has ever been able to prove that the U.S. economy can successfully handle a price for oil over $100 for an extended period of time.

Do you remember what happened back in 2008? The price of oil hit a record high in June and then the entire financial system came unglued just a few months later.

The price of oil affects the price of almost everything else. Almost all forms of economic activity use energy. Almost all goods have to be transported a significant distance.

When the price of oil goes too high, some types of economic activity simply become unprofitable. If the price of oil stays this high from now on, there are many businesses across America that will be forced to close.

A high price for oil is also going to hit U.S. consumers really hard. According to AAA, the average price of a gallon of gasoline in the United States is now $3.70.

Many are convinced that the average price of gasoline is going to shatter the all-time record of $4.11 that was set back in July 2008.

So how much did a gallon of gas cost a year ago?

One year ago the average price of a gallon of gasoline was just $2.83.

Over the past 12 months the average price of gasoline has gone up about 30%.

So has your paycheck gone up by 30% over that time?

The truth is that wages have been very stagnant in the United States for a long, long time.

That means that U.S. household budgets are being increasingly stretched. People have to fill up their cars so that they can get to work or to school. Americans can cut back on pleasure driving to save money, but most of the driving that all of us do is to get to places that we have to be.

So if gas costs more that means that consumers are going to have less to spend other places. Consumer spending accounts for approximately 70 percent of the U.S. economy, so any slowdown in U.S. consumer spending would be extremely significant.

Already a substantial percentage of the American people are feeling quite stressed about gas prices.

According to a recent Associated Press-GfK poll, approximately two-thirds of the American people believe that rising gasoline prices will cause significant hardship for their families over the next six months.

We are heading for some really difficult economic times. As I wrote about recently, this economy has millions of Americans feeling depressed, but that is not the appropriate response.

Rather, once we understand how bad our economic problems are we should feel empowered because then we can start focusing on real solutions.

And somebody really needs to start focusing on solutions because panic is starting to abound. Many top corporate insiders are selling off stock like there is no tomorrow. The biggest bond fund in the world, PIMCO, has been getting rid of all of their U.S. Treasuries. When Wall Street big shots start freaking out you know that the hour is late.

It certainly doesn’t help that the Middle East is in a state of chaos and that the Japanese economy is falling apart as a result of the recent disasters.

In these uncertain times investors are seeking something safe. They are turning to real “global currencies” such as gold, silver and oil. Paper currencies are rapidly losing favor and rampant inflation is on the horizon.

So where do all of you think that gold, silver and oil are going? Feel free to leave a comment with your opinion below….

http://theeconomiccollapseblog.com/archives/gold-silver-and-oil-are-all-skyrocketing-and-that-is-bad-news-for-the-u-s-economy

Ron Paul: Gold, Commodity Prices “Big Event” Signaling Economic Collapse

Ron Paul: Gold, Commodity Prices “Big Event” Signaling Economic Collapse

Kurt Nimmo
Infowars.com
April 6, 2011

Skyrocketing gold, silver, oil and other commodity prices, a brazen attempt by the Federal Reserve to monetize a staggering and deleterious debt, a precipitously falling dollar, creeping inflation – these are elements of a “big event,” Ron Paul told Alex Jones on Tuesday.

It’s huge, and it has started,” Paul said, and it may be identified as such within 30 days. “I believe it is the beginning… you and others have been talking about commodity prices going up.” The Texas Congressman noted that even the former boss of the Federal Reserve, Alan Greenspan, has warned about out of control inflation.

“A necessary condition for long-term unemployment is low inflation,” Greenspan said recently. “If the Fed does its job and stabilizes the inflation rate, that’s the maximum that the central bank can do.

Greenspan failed to mention the fact that when the Federal Reserve prints a new fresh new batch of fiat paper money, it unleashes a devastating round of inflation. Quantitative Easing initiated by the Fed is just that – cranking up the printing machines. It created $600 billion out of thin air to purchase Treasuries and another nearly $300 billion for mortgage-backed securities. Pumping all that money into the economy is an engine for creating inflation.

It won’t end with QE2, though. The plan to print gobs of money is open-ended. Late last year, the Fed said it will “regularly review the pace of its securities purchases and the overall size of the asset-purchase program in the light of incoming information and will adjust the program as needed.”

As Lew Rockwell noted with tongue firmly planted in cheek, it makes sense to refer to it as QE[n], because the Fed has hinted it will soon begin QE3.

These various attempts to restore the inebriated happy time have unpredictable and uncontrollable effects,” said Rockwell in mid-March. “Bernanke would drive us right into hyperinflation to save his industries. Savers living on pensions just don’t have the political clout to stop the money machine,” he added.

“Inflation is when they print the money and create the credit out of thin air,” Paul told Jones and his audience, “and then the price increases come afterwards.”

Both gold and silver reached stellar new highs today based on fears that the central bank’s monetary policies will lead to an increase in interest rates in response to galloping inflation. Both China and the EU ratcheted up their interest rates modestly this week.

Paul noted that the record-breaking rise in the price of gold is a barometer pointing to the fact that the dollar continues to decrease in value. Gold, he said, is the ultimate test to determine the state of the dollar. “Devaluation, it’s not good for anybody.”

In addition to base metals, the price of other commodities – particularly oil and food – have shot through the stratosphere and give no indication of coming back down to earth anytime soon.

An op-ed posted on the NASDAQ website calls current Fed boss Bernanke a myopic Dr. Frankenstein who created the inflation monster now ravaging the world economy. “Frankenstein had his monster and Ben has his and his monster is commodity price inflation,” writes Phil Flynn. “Fed Chairman Ben Bernanke might not see what is coming,” that is to say interest rate increases from China and Europe and inflation on gasoline and food prices.

As Alex Jones noted during the interview, warnings about inflation are coming from all quarters, most recently from Wal-Mart CEO Bill Simon, who said there will be “serious” inflation in the months ahead for clothing, food and other products.

In October of 2008, as Congress was poised to bail out the bankers, Ron Paul criticized his colleagues for misunderstanding the real causes of the financial crisis and reacting in a way that ultimately deepened and prolonged the inevitable slide into depression. “The financial bubble created by the excessive credit and the lowering of the interest rates is the cause of the recession,” Paul explained. “The recession and/or depression will come, my sincere conviction is that by doing more mischief and not allowing markets to adjust, debt to liquidate, you’re going to guarantee a depression.”

“The solution to inflation is not having a Federal Reserve run by somebody like Bernanke,
” Paul said as he concluded his interview with Alex Jones.

Paul is currently the chairman of the House Subcommittee on Domestic Monetary Policy and is in a position to rake Bernanke over the coals in the months ahead as the bankster created Frankenstein monster of inflation ravages the nation.

http://www.infowars.com/ron-paul-gold-commodity-prices-big-event-signaling-economic-collapse/

Economic Recovery? 44 Million Americans On Food Stamps and 10 Other Reasons Why The Economy Is Simply Not Getting Better

You Call This An Economic Recovery? 44 Million Americans On Food Stamps and 10 Other Reasons Why The Economy Is Simply Not Getting Better

When Barack Obama, the Federal Reserve and the mainstream media tell us that we are in the middle of an economic recovery, is that supposed to be some kind of sick joke? According to newly released numbers, over 44 million Americans are now on food stamps. That is a new all-time record and that number is 13.1% higher than it was just one year ago. So how many Americans have to go on food stamps before we can all finally agree that the U.S. economy is dying? 50 million? 60 million? All of us? The food stamp program is the modern equivalent of the old bread lines. More than one out of every seven Americans now depends on the federal government for food. Oh, but haven’t you heard? The economy is showing dramatic improvement. Corporate profits are up. The stock market is soaring. Happy days are here again.

It just seems inconceivable that anyone can claim that the economy is improving when the number of Americans on food stamps continues to set a brand new record every single month. But the food stamp program is not the only indicator that the economy is still having massive problems. The following are 10 more reasons why the U.S. economy is simply not getting any better….

#1 Some recent statistics actually indicate that the number of unemployed Americans is still going up. According to Gallup, unemployment in the United States rose to 10.3%at the end of February. That is the highest number Gallup has reported since early last year.

#2 The housing industry is still a complete and total disaster. In fact, new home sales in the U.S. in January were 11.2% lower than they were in December. Not only that, the number of new home sales in January was 18.6% lower than the number of new home sales in January 2010. That is not a sign of improvement.

#3 There wouldn’t even be much of a housing industry at all at this point if it was not for the U.S. government. Right now the U.S. government is either writing or guaranteeing well over 90 percent of all mortgages in the United States. So what would the housing market look like in 2011 if the government was not in the picture?

#4 In 2010, more than a million U.S. families lost their homes to foreclosure for the first time ever, and that number is expected to go even higher in 2011.

#5 Due to rampant economic decay and record numbers of foreclosures there are areas in most of our major cities that now look like “war zones”. For example, the Huffington Post is reporting that there are now approximately 15,000 vacant buildings in the city of Chicago and there are approximately 60,000 vacant houses and apartments in the city of Las Vegas.

#6 According to the Oil Price Information Service, U.S. drivers spent an average of $347 on gasoline during the month of February, which was 30 percent more than a year earlier. This represented 8.5% of median monthly income. So what is going to happen when gas prices go even higher? Sadly, the average price of gasoline in the U.S. has risen another 4 cents since yesterday and it is likely to go much higher from here.

#7 The U.S. trade deficit continues to grow. The trade deficit was about 33 percent larger in 2010 than it was in 2009, and the 2011 trade deficit is expected to be even bigger.

#8 The CredAbility Consumer Distress Index, which measures the average financial condition of U.S. households, declined in every single quarter in 2010.

#9 The number of Americans that have become so discouraged that they have given up searching for work completely now stands at an all-time high.

#10 The U.S. national debt is growing faster than ever. The Obama administration is projecting that the federal budget deficit for this fiscal year will be a new all-time record 1.65 Trillion dollars. It is hard to even imagine how much money that is. If you went out today and started spending one dollar every single second, it would take you over 31,000 years to spend one trillion dollars. Long ago the U.S. government should have been getting these deficits under control, but instead they are just getting even larger.

So in light of the statistics above, can anyone really claim that we are in the middle of an economic recovery?

The truth is that there is no sign that any of the long-term trends that are destroying the U.S. economy are even slowing down.

Millions of jobs continue to be shipped overseas.

The U.S. dollar continues to be devalued.

The federal government continues to go into more debt.

State and local governments continue to go into more debt.

Our trade deficit continues to grow.

Our cities continue to be transformed into wastelands as they are being systematically deindustrialized.

The number of Americans that are dependent on the government continues to soar.

The U.S. middle class continues to shrink.

I know that I harp on these themes over and over, but it is vitally important that everyone understands that the mainstream media is lying to us.

The U.S. economy is dying a very painful death and there is no hope on the horizon.

Things are not going to be getting better. Well, they may get a bit better for the boys down on Wall Street, but for the rest of us our standards of living are going to continue to decline.

The best days for the U.S. economy are already behind us. What lies ahead is a whole lot of pain.

We are going to pay the price for decades of corruption and incompetence.

An economic collapse is coming and you had better get ready.

http://theeconomiccollapseblog.com/archives/you-call-this-an-economic-recovery-44-million-americans-on-food-stamps-and-10-other-reasons-why-the-economy-is-simply-not-getting-better