Saturday, September 1, 2012
THE SECRET TO GOLD''S POWER
Gold is a monetary instability hedge.
Everyone assumes that the DEBT PROBLEM is the source of monetary instability.
Everyone is talking about the Debt Problem.
Nobody is doing anything ab out the Debt Problem. Nobody has even PROPOSED anything about the Debt Problem. Especially not Rombama.
Because the Debt Problem is a symptom.
The real SOURCE of Monetary Instability is the BANKING PROBLEM.
Banks are supposed to direct Capital in an efficient manner through the economy.
Banks are currently sucking capital out of the economy.
They do this by creating 100's of TRILLIONS of new debt products that they mark to imaginary models and award themselves fantastic bonuses when they work out and charge the taxpayer when they don't. This is going on unchecked - right now.
And Nobody has the guts to even address this problem. Especially not Rombama
Don't take my word for it. Listen to Andrew Haldane of the Bank of England:
“In 1989, the CEOs of the seven largest US banks earned on average $2.8 million…almost 100 times the median US household income.
By 2007, at the height of the boom, CEO compensation among the largest US banks had risen tenfold to $26 million.
That was over 500 times the median US household income.”
Haldane noted that the increase grew: at the same rate as the increase in bank leverage.
And this doesn't even begin to cover bank special purpose entities (off balance sheet) engaging in hedge fund and private equity activity.
AND WHAT'S THE FED DOING ABOUT ALL THIS?
DAVID STOCKMAN: "Here's the heart of the matter. The Fed is a patsy. It is a pathetic dependent of the big Wall Street banks, traders and hedge funds. Everything (it does) is designed to keep this rickety structure from unwinding. If you had a (former Fed Chairman) Paul Volcker running the Fed today 7/8— utterly fearless and independent and willing to scare the hell out of the market any day of the week — you wouldn't have half, you wouldn't have 95 percent, of the speculative positions today.
Q: You sound as if we're facing a financial crisis like the one that followed the collapse of Lehman Brothers in 2008.
A: Oh, far worse than Lehman. When the real margin call in the great beyond arrives, the carnage will be unimaginable.
Protect yourself. Buy physical gold. While you still can.
Bankers are more dangerous than standing armies......(and) if the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and CORPORATIONS that will grow up around them will deprive the People of all their property until their children will wake up homeless on the continent their Fathers conquered." .......................................................................Thomas Jefferson