Monday, January 23, 2017

Prior Thoughts Pave the Way

For several years now I have written of nationalism, regionalism, provincialism and tribalism. I have written of these things, as the failing machinery of global corporatism nears the end of it's timeline.

Truly, one must credit Another with this insight, and it has been a long time coming - effectively 20 years since the Asian currency crisis, the LBMA exposure and the LTCM debacle (soon after). Perhaps these will be seen as the first big dominoes to have fallen.

Now we visibly see the fruit of these predictions, or at least hopefully, most of us do. There are others lost in a dream, who still do not recognize it as a fraud. Fantasies are often difficult to dispel, and we cling to them in times of change.

Why has the world come to this? Because a single nation had the ability to issue the world's preferred capital at will, for geopolitical and opportunistic reasons. It's really no more complex than that. In a truly free gold market, with all nation's having balanced holdings, the issuance of debt will have certain limitations, as it impacts the "flow" of gold reserves, which will then bear heavily back upon the issuers currency.

So today, meet the new boss. Same as the old boss. Just with a different strategy to reach the same goalpost ... one that it has been moved a good bit farther down the field. We had global capitalism, now we will have regional capitalism as the new lines are drawn.

As predicted, the dollar must (and will) weaken to help re-industrialize the U.S. It is not so much an intention as a reaction. The dollar IS changing from it's former role as "sole reserve currency" as it's use falls from it's former height ... for many reasons, covered at length in these annals. And the benefit of that change? Production becomes more viable in the US, former "producer" economies gradually transform to "consumer" economies (and vice versa) and the world enters a more level playing field, balanced by the weight of each nation's non-paper CB holdings.

Profits are still taken by senior capital through the fire of change.And the currencies must and will function for the benefit of international commerce. Just with a much higher price of gold - to recapitalize and to redefine their backing with equity as opposed to debt. The SDR? It is an international bookkeeping instrument.

Many thoughts from the Flower of Understanding do spring, but the links above all point to the same conclusion. All roads lead to Rome, and all empires do change over time.

6 comments:

  1. It is obvious that revaluing all currencies against gold is the only viable solution. The only question is whether the revaluation will be on time or if it will be too late. There are some very powerful interests that benefit greatly by having the authority to create money out of thin air... I imagine it's better than discovering the philosopher's stone.

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    1. I wish it was as obvious to everyone as it is to the central banks that hold (title to) it.

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    2. Trump isn't doing what he's doing w/o powerful interests backing him. The recent Pepe Escobar article echos something Fitts postulated. Mr. Global has engineered a massive 40T financial coup. Now that he has enough for an endowment he wants a yield on that capital. It's obvious the current system won't give him that. The UST/Eurodollar debt game is over.

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  2. JFK signed Eexecutive Order 11110 on June 04, 1963 enabling the US Treasury to print fiat Treasury notes redeemable and back by silver. He was killed November 23, 1963.
    Ghadafi and Saddam Hussein were both killed within 2 years after they foolishly challenged the Federal Reserve notes with gold back dinar and euro respectively.

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    1. Indeed! And 1110, and the notes, were revoked shortly after. Iran had a similar "Iraq problem", but oil sold in currency other than petrodollar is here to stay. Some will be sold in SDR and some will be sold in EM currencies. Dollars still buy much gold and China has a good use for them.

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  3. Finally Trump banns muslims from entering U.S.
    God bless him!

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