Use the above link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.
A great question to ask is: what was the first important chapter written in nonsensical Economic Mythology? It gave powerful intellectual protection and coverage by economists, and resulted in widespread acceptance. The answer is clearly the break in the Bretton Woods Accord, when in 1971 Nixon broke the gold standard and permitted the USDollar to float on a cloud of arrogance and on a wave of liquidity that is best described as debt mixed with counterfeit. Little known then, but better known now, is the role of the USMilitary in propping up the value and acceptance of the USDollar. The nation and world were told that greater flexibility would result in order to build economies, deal with cyclical problems, and contend with the needs of global population growth. The momentum of destruction is powerful, damage accelerating, and platforms disintegrating. The key to mythology is to recognize it as nonsense spouted by the high priest economists whose handiwork of destruction must be hidden from view, only to see yet another chapter unfold that captures the attention of the innocent and ignorant. The priesthood is left in charge of the intellectual dogma behind mythology, not much different from communist mumbo jumbo about power to the proletariat, complete with a supporting cast of a Politburo. The US Politburo is hidden from view, a cadre of established failed figures continuing to spout policy and to manage Fannie Mae, AIG, and now General Motors. The US Federal Reserve is the keeper of the Holy Grail, now manifested in criminal confiscation and disbursement of USCongressional funds, and a secretive balance sheet. Watch them defy the US Supreme Court. Their dogma is mostly vapor with little substance, sufficient to keep the population in participation or at bay, but at least confused.
THE USDOLLAR CRISIS IN FIRST STAGE
The latest nationally advertised but unrecognized mythology is very convenient, since a USDollar crisis has begun. Political and intellectual cover is needed. The USEconomy would benefit from a lower USDollar, due to a quantum jump in export trade. A lower US$ exchange rate would indeed benefit the USEconomy in general, and US corporations in particular, provided the nation had not shipped a significant portion of its industrial base overseas. This is not the 1970 decade. It did so to capture the low cost of foreign labor, without thought given to the lost capital, lost wages, growing debt, and lost sovereignty from foreign creditor dominance. The US pursued financial dominance, and finally failed as Mother Nature wielded the backside of the Inflation Sword. The Chinese now dictate many key policies. A source reports that they ordered President Obama not to renew Bernanke as USFed Chairman.
The Chinese are the spearhead behind pushing the USDollar off the primal global throne. A lower USDollar will not accomplish much on export trade, given the lost critical mass of export businesses. A lower US$ will, however, spawn a currency crisis, a bank crisis, enough to take the global revolt against the US$ to new levels among creditor nations. The lower US$ will also force a quantum leap in the entire cost structure for the USEconomy, a factor ignored almost totally. The crude oil price has been giving a solid clue on this effect, but it is largely ignored. Somehow, a new USGovt policy to limit crude oil contract positions is a quick fix. It will not work. Goldman Sachs changed their Euro recommended long position immediately before the Chinese delegation met in the White House last week. The quick rise in the USDollar was met by a fierce decline at the end of the week, as the Chinese were major sellers.
http://www.kitco.com/ind/willie/aug072009.html
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FED using foreign banks to monetize debt behind closed doorsby marcchabotyt15,301 views
that was cool.
espadakatsuki 2 years ago