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Sunday, March 6, 2011

Gold,.debt and risk: The Gambling Economy



Gold Stater Debt/risk Comment.

Debt should never be said without saying the word Risk. Debt is always and everywhere a measure of Risk. To take a financial risk is a gamble. An economy based on Debt Creation - as our entire banking system is based on Fractional Reserve Banking - which is to say High Ratio Debt to Equity Banking - is an economy based on Gambling. Our Banks can legally take a 12:1 gamble on every dollar you put in. However, clever banks find ways to LEVERAGE (Which means JACK UP THE RISK) to levels that can approach 40-1, and 50-1.

However, they like to play in rigged markets when they take such huge risks. They do this by Withholding information from other participants in the market.

These two principles: Jacking up the Risk, and Withholding Information - form the basis of all of Wall Street activity.

If you don't know how to do those things successfully and you are investing in Wall Street Financial Instruments (including stocks, bonds, funds whatever), you will eventually lose your shirt. Guaranteed.

The game was not always rigged in this way. It was always rigged, but before Reagan than Bush completely dismantled the oversight Agencies, it was rigged in a gentler way to allow more people to win over time.

The one Market Wall Street can not rig is the CURRENCY MARKET. This is because the big players in this market are World Central Banks. And the world Central Banks dwarf the activity of even George Soros et alii.

The one currency that Central Banks trade, and you can buy and store in your own vault is bullion gold. This is the one investment that will respond honestly to market forces over time. That doesn't mean it has to go up. But if it does, and you own it, you will profit. The same is not necessarily true for other investments. Other paper investments can appreciate on paper, and then you find you have lost all your money anyway. WorldCom - Enron - Madoff - and a thousand smaller examples that happen everyday with rigged accounting, undisclosed skimming, and non-disclosures.

Can't happen with gold.

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