F. William Engdahl
Bernnake Ben, the head of the U.S. Federal Reserve Reserve has announced a new round of quantitative easing, the so-called Q2, which this time at least 600 billion dollars, amounting to mind in addition to the previous 1.7 trillion. This means nothing else but that is again fired up the printing presses - it is a clear signal that the American institutions have lost control of the financial system. In this context, very rich private investors who invest in traditional fixed-income securities, shares or investments create high quality, now en masse their money in precious metals, especially gold and silver. That says a lot about their confidence in the present dollar system. adopted
Since the English Parliament in 1660 a law under which prohibited the export of gold and silver imports, however, was allowed to build up a gold reserve, gold and silver play as a measure of value and as an asset a special role, they are rare and they are in a period of paper money inflation generally accepted as the value. In fact, gold has been since 1500 BC acts as currency because it was recognized as a medium of exchange for international trade. For the vast gold deposits in the region of Nubia, Egypt had then made into a wealthy country.
In August 1971, the then U.S. President Richard Nixon unilaterally the international agreement Bretton Woods in 1944 terminated in a gold exchange standard had been set at a fixed parity to the dollar. Since 1971, the dollar is a so-called "fiat currency" - that is, the amount of the issued paper money is determined solely by political considerations and not by gold reserves, support it.
Fiat systems are inherently inflationary and typically result in a crisis to seek refuge in alternatives such as physical gold or silver. In the two decades from 1950 to 1971, when the gold exchange standard of Bretton Woods was to increase the volume of dollar reserves, which are a measure of monetary inflation, comparable only to tiny 55 percent. Since 1971 the volume of dollar reserves by 2,900 per cent, however, is exploded. No wonder that now everyone feels that today for dollars can not buy as much as before. Now threatens the rate at which new dollars are printed, to get out of control, much like in the years 1922/1923 in Weimar Germany, when the Reichsbank printed almost unlimited amounts of money.
Since 11 September 2001 when the U.S. government has declared a war on terror and simultaneously announced dramatic tax cuts, describing national debt and borrowing a parabolic rise. When Bush took office in 2001, the national debt was around six in the U.S. Trillion dollars. Today it is just under 14 trillion dollars, which means within nine years, an increase of 130 percent. Alone since the outbreak of the subprime mortgage crisis of 2007, the national debt to six billion dollars is through the roof. These debts are increasingly being met by the fact that the U.S. central bank buys government bonds, since China, Japan and other central banks now look for safer harbors.
The true value of gold
In this context, the price of an ounce of gold, traditionally an inflation measure increased from 255 dollars in 2001 to currently more than 1,400 dollars, an increase of nominally 550 percent in not even ten years.
These few benchmarks illustrate better than many other numbers, which drives the global financial markets, has been Fed Chairman Bernanke recently announced that once 600 billion U.S. dollars are printed. The dollar is against the euro and other currencies to decline again, because investors assume that changes occurring in the dollar zone hyperinflation à la Weimar.
The global power of the U.S. had after the victorious end of World War II on two pillars, or, rather, is based on two strategic factors. One was the undisputed military power in the United States as the world's leading military power - which they remained, although one's own economy in the 39 years since the fall of the gold standard of Bretton Woods was more and more. This was only possible because the U.S. pulled out of the second pillar of the post-war power, namely the role of the dollar as world reserve currency, an invaluable asset.
that the dollar so far acted as a reserve currency, is far from a technical aspect, because other countries have to import oil, grains and essential commodities such as copper or iron ore, all of which are settled in dollars. It also had the consequence that in the central banks of trade surplus countries like Japan or China lately dollar surpluses in the hundreds of billions have accumulated. These countries had little opportunity to their dollar reserves from the successful business to invest, except in the safe haven of U.S. government debt - that is, in Treasury bonds, the Treasury of the U.S. Treasury. Paradoxically, this has been the Bush and Obama allowed, piling up enormous budget deficits for new wars in Iraq, Afghanistan and elsewhere who are considered paid on the light at exactly the same Chinese were against whom they are addressed eventually. According to official Chinese figures
foreign exchange reserves of the National People's Bank of China are only 212 billion dollars in 2001 to today staggering $ 2.4 trillion, or increased it quite well at 2,450 billion dollars. The more and the faster the U.S. Federal Reserve money "printed" as in the past two years, the more the value of Chinese dollar reserves is shrinking in real or gold equivalent. For the United States as a military superpower in the world since 1971, this meant an enormous strategic advantage. Today, the dollar, as I stress again, no longer based on gold, but by F-16s and Abrams tanks, just by the military power of the Pentagon, the infamous "Shock and Awe" ("fear") .
desperate steps USA
In effect, a power whose influence is solely on military force rather than on internal economic strength is based, doomed, like the fall of the Roman Empire has been shown in the fourth century.
now turns to the world alternatives to the dollar, as is the summit of G20 countries in Seoul just shows how the statements of the Chinese government as well as the remarkable and unusually strongly worded open criticism of the German Finance Minister Wolfgang Schäuble at the U.S. monetary policy .
Since the end of the unique role of the dollar as world reserve currency would seal and the end of the global power of the U.S., is It is no surprise that the forces behind the U.S. Treasury and the Federal Reserve, namely around twelve major banks on Wall Street, the self-proclaimed king of the money, then resort to every conceivable dirty trick to maintain this role.
As I have stated in previous articles, was the sudden collapse of the euro in January 2010 when a Greek debt crisis was orchestrated not just happen. Rather, directed Goldman Sachs, JP Morgan Chase and the mighty of Wall Street, including the allied giant hedge funds such as George Soros, and the corrupt American rating agencies Standard & Poor's and Moody's, a speculative attack on the euro, the only possible rival to the dollar as world reserve currency.
as bug affected the euro may also be applied always, he is the only possible rival as the world reserve currency, and will continue over the next ten years or even longer stay Sun China's currency is not internationally convertible, the Chinese government proceeds with great caution. Behind the Japanese yen are a greatly weakened economy and a demographic disaster. But the euro so there is no possible rival to the dollar. Therefore, the power in the United States do everything possible to weaken the euro. According to my well-informed sources in the Frankfurt banking scene in Berlin is considered the speculation against the euro since at least March or April of this year as the financial war on Wall Street and Washington.
This insight into the Merkel government could explain the unusually sharp criticism that the chancellor and her finance minister have recently been leveled at the fiscal proposals of the United States. It could also explain why both are exposed in the mainstream press, both in Germany and in the U.S., increasing attacks.
In the end, the output of the currency war held far away from Berlin, that millions of investment, have resulted in "the past in the weeks to an" outbreak of the price of the traditional monetary metals gold and silver.
According to our sources at leading private banks in Switzerland and other countries, banks, therefore, to manage with the utmost discretion, the private wealth of the richest men and women of this world, reached the price of gold and silver ever so new records, because these super-rich have lost for the first time since 1945, the trust both in the dollar system and in fiat currencies like the euro or in government bonds and shares. Simply put, you buy gold and silver, in a big way, tons. And rumor after they extract the gold and silver assets in the financial system.
The Global Private Banking Summit this has the largest Swiss bank, UBS, recently confirmed. The head of the retail division of UBS, said that the most affluent customers "buy physical gold." He was referring to customers who can invest at least $ 50 million.
same report, other private banks, such as the Bank Julius Baer, about rich Asian investors.
And as if on cue from Washington, the billionaire speculator George Soros recently with his friend Warren Buffett, Obama's oracle, gold as the "ultimate bubble" attacked because it was too expensive and support, apart from the market price, no real value possess. Soros is among those who have tried to press reports in recent months to support the dollar by attacks on the euro.
Since the outbreak of the American sub-prime mortgage crisis in August 2007, the negative outlook for inflation, currencies and interest rates have resulted from a Swiss private bank Pictet & Cie. is domiciled funds for physical gold has grown by five times. According to the UBS director Josef Stadler Gold has become a key component of the portfolio investors: "In the conversation with very wealthy people were found in the last two, three, four years ago never to more uncertainty. "
A Voice from the United States to return to the gold?
In this climate of uncertainty about currencies and the dollar, which will then make € crisis with Irish banks and the weak position of Greece again fired up, it is highly significant when a leading member of the U.S. establishment, namely, World Bank President Robert Zoellick, unexpected calls for a return to a gold-based currency system.
Zoellick wrote on 8 November in an article in the London Financial Times, the leading economies should consider introducing a modified global gold standard as a mandatory reference for currency exchange rates take into consideration. Zoellick proposed a new system in place for the regime of fixed exchange rates of Bretton Woods. "This scheme will probably have the dollar, the euro, the yen and pound sterling to be involved as well as a Renminbi, which is a move toward internationalization, and then open a financial account. It should also consider gold to be used as an international reference point for market expectations of inflation, deflation and future currency value. "He gave no details of how this would work exactly. But the fact that a high official U.S. representative Return to the gold standard bring into the conversation, is a signal of desperation, which makes wide in Washington. The question is how much real gold at all in the secret vaults of the Federal Reserve storage.
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