The History Of Money And Why US Dollars Are Issued By Private Bank - Federal Reserve System

  We are at the very important point in the history of the modern financial system. The recent events in Europe  are no less than ground-changing historical  development and the magnitude of it will be understood only many years later. European countries are giving up their Sovereignty in order to save the Euro zone. Now the history of money will be your guide to the new order, when the New Normal will be transformed into the New World Order. 

  Private FED manipulates all markets now and has the right at its own discretion to increase the FED rate at any moment, which will increase all interest rates in a chain: mortgage payments, car loans, student loans, credit card loans, business loans etc. Should FED decide to stop monetary expansion at some point: QEn+1 and Twists - yields on the Treasuries will explode. U.S. is at the total mercy of the unelected managers running the private bank. You would think: who can do such a thing, which will bring a total collapse to the world economy - watch the movies to get your own answer. The idea to buy the assets for pennies on the dollar can be irresistible again.

Europe Is One Step Closer To The End Game - New World Order

"We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order" 

David Rockefeller

Watch the movies End Game and Fall Of The Republic.

  Europe is done now. New European Order is here - what is the Next Step? In one sentence - Keep your Freedom - Dump the Pump and Buy Gold. In the big picture you will have to study and think - to separate the truth and reality. This movie gives a very interesting context for the recent European events - what do they really mean for the future of Europe?

  Maybe the movie is too heavy - it is really about everything...but history is there, you just need to find it out, learn and make your own conclusions about what is true. FED, Eugenics, State Control - Facebook, Google, iPhones - we are happy to tell everybody about us, somebody knows everything what we are searching for and our location is reported literally every minute. 

  Conspiracy theory will not be the real conspiracy without President Kennedy - has he tried to return the Right to issue the U.S. Currency to the U.S. Government?

"Executive Order 11110 was issued by U.S. President John F. Kennedy on June 4, 1963.

This executive order delegated to the Secretary of the Treasury the president's authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act."


  By the way, President Lincoln has tried it before:


"Despite strong opposition, President Lincoln signed the First Legal Tender Act,^[8] enacted February 25, 1862, into law, authorizing the issuance of United States Notes as a legal tender—the paper currency soon to be known as "greenbacks." In his correspondence, Lincoln credited Edmund Dick Taylor for his suggestion of the greenback currency, and named him "Father of the Greenback."

  Unfortunately for all of us, somebody did not like the idea of U.S. currency to be issued by U.S. Government and we have what we have now - US Dollar issued by privately owned bank called Federal Reserve System.


  It is not about George W Bush with his Family of Secrets or Barrack Obama - it is about the system. You know how President Obama is tough to the Wall Street on the TV: here is another movie to connect the dots - Goldman Sachs was the second largest contributor to Barrack Obama in 2008 elections, with JP Morgan, CitiGroup, UBS and Morgan Stanley among the Top 20 contributors. Mitt Romney knows Goldman Sachs as well - according to Jesse Ventura this bank manages Mitt Romney's blind trust and Goldman Sachs is the largest contributor to his campaign among other banks.


  We are out of politics, but if you are still an adept of Efficient Market Theory you should better watch at least these couple of movies - it could be your best investment this year. Question is not what is right or wrong there, but that you can start question things around you."

The Gold Bug Manifesto By Paul Krugman: End This Depression Now

    

  We highly recommend to all investors to read this book. This is what is coming. Paul Krugman describes the insolvent financial system with the honesty affordable only to Wall Street outsider. The FIAT system can survive only by expanding the monetary base further and keep the credit running. Claims will never be met, but surprisingly enough - it is not necessary - we all can just pretend that debt will be repaid one day and service the interest enough to keep Confidence in the status quo.

  Do not run to your bank yet, Debt still matters for mere mortals, but not for the Sovereigns - like US, UK or Japan - who can print their own currency in which they have borrowed before. 

  Inflation is welcomed - by the way Paul struggles to find it in the system now - if the debt expansion rate will not exceed the growth and inflation rate. We all will be fine: the level of debt to GDP will become lower with time. We can help here with the illustration of what is happening to the FIAT currency like US Dollar in this case.

  Talking about Inflation Paul excludes Food and Energy, as usual. The real inflation now is running at least at 6% already and if Gold will not affect everybody on the Main Street, Oil and high Gas prices certainly will.

  Gold Bugs can not write anything better for the Gold case as a Store of Value, than Paul Krugman did in his work, now the best investment will be to put him in charge of the FED - apparently, General Bernanke is too soft. Maybe we should all post this book to White House and Congress as well, who knows maybe he can even run for the Office?

  This is what is happening, this is what will be happening more - Fiscal Stimulus multiplied by FED printing money (to Paul's credit he insist to call the things by proper names - QE is too academically misleading for the public).

   All will be fine in this picture of the world - Inflation and rising employment is certainly better and more electable ideas than Deflation and Depression - until the Oil Shock will put economy into free fall again. The Ugly Truth is that the FED is not in charge anymore - Oil price is dictating the economic cycle now.

   We can agree on one, but most important thing - in the optimistic scenario money will be printed in any way, it will be much better if they would not be wasted just to keep "Dead Banks Walking", but invested in Infrastructure including Electrification of Transportation. 

  We will talk about the Gold Standard in our next article - it will be the logical End Game of these financial policies.

Gold and Elections in France: "I Am The Socialist" - The European FIAT QE Party Begins Now. "The Dictator" Congratulates Francois Hollandaise.

    It is a very good Joke, but what is happening in Europe is NOT. Austery is under Attack - QE will follow in many forms. Now watch the Gold - will the Call of Charles Nenner materialise this time? Our own Call on Apple is moving into the right direction so far. We are out of politics, but when today is pronounced "the new day not only for France, but for the whole Europe" - we do become more pessimistic. In UK Labor is dusting off Tony Blair now - the whole world is apparently obsessed with Mayan Calendar. Now the printing press will be really working "Like There Is No Tomorrow".

Charles Nenner Calls For Silver and Gold Bottom - We Call For Apple To Cool Down AAPL, GLD, SLV

CS. If you are long Apple, please, do not worry - we have been right only a few times. Charles Nenner Call is a much stronger proposition for the market - he wasn't right all the time as well, but some of his longer term calls are worth studying at least. 

  We decided to make our Call on Apple, because we are totally in love with its products, were calling for Steve Jobs to make an Electric iCar for years, but do not follow the company or holding any position in its stock now - we are totally disconnected with its market. And still, we can hear about Apple every day everywhere, everyone and his grandmother have invested in it and it is the newly found "sure thing". Life has taught us a very expensive lesson - that once everybody has invested in a "sure thing" the universe will switch the deck. Now, when everybody is in love with it and indexes are moving everyday with Apple's market the company can not allow to make anything wrong. Margin for any investors' tolerance is so thin now - any step back will bring the realisation that Steve Jobs is not there any more. Once it happen, selling will ignite further selling and commentators will be crying on Bubble TV "we have told you so" - then it will be time to buy again.

"Where is the connection between the Apple, Oil and Junior Miners? Apple's Top will signify the important turn in the market place - we do not expect economy to be allowed to go bust again in the election year - but if even Apple is not immune to the gravity, the Oil prices will start to be felt more and more. We expect the talk about the QE coming back with the first signs of weakness, the usual remedy against even potential Deflation will be the lower US Dollar via running printing press - more QE.
  Catalyst for the Juniors with solid projects in Gold, Silver, Copper, Lithium, Graphite and Rare Earths will be the simple fact that you can not print any of these commodities. M&A activity in the sectors must confirm our observations - industry insiders know better where the real value is.
  Canadian Venture Exchange Index daily chart below is one to watch now - we are close to the October's and December's Lows. Change in leadership in the market place and sector rotation can even beat the juniors' weak summer market seasonality this year."

Fear Index VIX indicating Reversal Down, confirming Dow DIA Reversal Up. DIA, GDX

We have a very good picture confirming Bullish Reversal in Dow DIA: fear index VIX is forming a Bearish reversal with potential resolution Down. Dow retest of Low happen with less amount of Fear: market participants were ready to pay less premium for Put protection and Volatility expectation is going Down. For a definite move in the Dow from deflation to positive Inflation outcome next weak Rally must be fueled by this weekend action on key to all things now US Dollar. Fed is fighting Japan style Deflation and flooding the system with the money, in order that all these flood came into real economy you need to return normal velocity of money. Fear and panic is leading to Fire Sell, downward spiral in markets with Dow as indicator is leading to further margin calls, redemption and Risk not taking. Money are stashed at the Fed on banks accounts. Spiral became self reinforcing: panic - fire sell - prices down - more panic etc. Fed can not leave it to "effective market" any more. There is no such thing with Fed in existence and more practical importance is that all economy will be killed by derivatives, Lehman was a turning point which showed that collapse will take down all financial system. Everything is on the table now: turn markets into Inflation expectations and try to liquidate all "bad derivative positions". If velocity will not be returned now in the form of Weaker US Dollar, higher Long term Yield which will lead to steeper curve and Banks ability to make money by lending, Flood will eventually happen, but too late and with much more water when all economy will be submerged under hyperinflation. This money creation and record deficits for years to come already making all things are hardly manageable in US Corp. But there is a chance and it must be taken. Please follow to Us Dollar chart.

Global Bailout: it is going to be a flood of money printed.

We need to find a bottleneck where to profit from these liquidity avalanche: Gold will appreciate against all FIAT currencies.

"Sept. 21 (Bloomberg) -- Treasury Secretary Henry Paulson said he's confident several countries will take steps comparable to the $700 billion plan he proposed to buy bad mortgage-related securities to address the global financial crisis."