Sunday, December 17, 2006

Fiat currency, lesson 1

The first half of an important piece of information you are not likely to hear a lot about (if anything) in the mainstream media:

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Report - China To Dump
One Trillion In US Reserves
Chinese tell visiting Bush administration officials they will not sit back
and lose their shirts as U.S. Dollar collapses; they are getting out fast and large.
HalTurnerShow.com
12-15-6

BEIJING -- Sources with a U.S. Delegation in Beijing have told The Hal Turner Show the Chinese government has informed visiting Bush Administration officials they intend to dump One TRILLION U.S. Dollars from China's Currency Reserves and convert those funds into Euros, gold and silver!

China was allegedly asked to withhold the announcement until Bullion Markets closed for the weekend to prevent an instant spike in gold and silver prices. This delay will give the world the weekend to consider appropriate actions rather than have a knee-jerk reaction which could see the U.S. Dollar totally collapse in value Monday.

According to this Senior source, China told the U.S. delegation they no longer have faith in U.S. Currency for several reasons:

1) The Federal Reserve Bank ceased publishing "M3" data in March, making it nearly impossible for anyone to know how much cash is being printed. China said this act made it impossible to tell how much a Dollar is worth.

2) The U.S. Dollar has lost upwards of thirty percent (30%) of its value against other foreign currencies in the recent past, meaning China has lost almost $300 Billion simply by holding U.S. Dollars in its reserves.

3) The U.S. has no plans whatsoever to reduce deficit spending or ability pay down any of its existing debt without printing money to pay it off.

For these reasons China has decided to implement an aggressive sell-off of U.S. Dollars before the rest of the world does so. China reportedly told the US delegation; "we are the largest holder of U.S. Currency and if the rest of the world unloads theirs before we unload ours, we will lose our shirts."

Early this week, in an unusual move, the Bush administration sent virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Dec. 14 and 15.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke lead the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation is Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.

The Bush administration wanted to get China's cooperation in preventing a dollar collapse. The Hal Turner Show has been told the effort failed.

According to the source, Fed Chairman Bernanke left the meeting "pale and in a cold sweat" as the implications of China's decision seemed to sink in.

The implications are enormous: The U.S. Dollar is likely to collapse in value against all other major currencies as early as Monday, December 18.

This would cause a worldwide sell-off of dollars, create almost immediate "hyper-inflation" in the US and also impact world markets at a level "worse than the Great Depression of 1929."

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Now, I'm a realist, not a conspiracy buff, but when the US decided to toss the gold standard out the window and make Federal Reserve Notes basically worth nothing at all, someone was bound to notice eventually that they could take advantage of their enemy's worthless paper money to attack their enemy's economy.

That time appears to have arrived, or at least be really, really close.

China has no reason not to trash the US dollar, and every reason to do so. Since the dollar has no intrinsic value - like it used to when it was pegged to the price of gold, a real commodity - it only has as much value as the citizens of the US and the other countries of the world have confidence in it as a medium of exchange. For as long as humans have been trading and bartering with each other, it has been obvious that if you trade something for nothing, you are getting nothing. China send hundreds of thousands of dollars of shipments of durable, real-live goods and objects made of real, intrinsicically valuable materials to this country every year - it only stands to reason that they want more than worthless paper for all that stuff.

Every country in the world that has some beef or another with the US need only insist on receiving payments in Euros instead of Dollars and our economy will promptly collapse. It's that simple, class. As long as the US was the spiritual, moral, and military leader of the world, there was no reason for anyone to rebel against the dollar, so no one did.

But things have changed now. We have proved that we cannot or will not achieve our military objectives, our own companies are moving their operations to foreign shores to avoid our government's jurisdiction, and petty tyrants of all sizes who once feared the US's resolve and might now know they can laugh in our face and get away with it.

The liberals seem to think that it is our support of Israel that has caused the hostility to American in other parts of the world, and has now been openly suggesting that the US weaken or cut ties with Israel in a vain attempt to stop the animosity.

Good luck with that, I say sarcastically, because it's way too late.

There were calls a few years ago trying to warn the public that monetizing the debt was the only real solution left to the US government, because the govt is actuarily broke: even if the US govt sold every piece of real estate and tangible goods it owns there would not be enough money to pay off the US debt. Prior to now, everyone was willing to look the other way, though, because the US was at least honest about the status of the dollar.

But when the Federal Reserve (a banking cartel, not part of the US govt, that controls our currency) decided to simply stop telling people statistics about how many paper and electronic virtual dollars were in circulation, everyone knew the game was up - the US is now allowing more "dollars" into circulation than could ever be pegged to anything with real tangible value. In other words, it admitted by omission that US Federal Reserve notes, which we know as US dollars, are worthless. They're not worth the paper they're printed on, seriously.

What this has to do with Jews and Judaism is scary in three ways.

One, widely known, is that Jews are heavily involved with banking and debt, and will be promptly cast as villians when the banking cartel collapses and people are terrorized by collection efforts by their banks and credit card companies. Even though many ordinary Jews will be in the same boat, every Jewish CEO or rich Jewish stockholder will be looked to with hatred and derision.

Two, some Jews are heavily invested in the diamond, gem, and precious metal industries, and have their own networks for meat and other foodstuffs, not to mention many Jews are close-knit and help each other even if not particularly observant - meaning there will still be "Rich Jews" when everyone else is starving, alone, and without real help [fema, anyone?]. Not a good recipe for tolerance, class, now is it? While American culture has splintered apart and torn up traditional family and community safety nets, with it now being the norm for people to have little, if any, serious religious affiliation with a congregation that might help support them in a crisis, and living hundreds or thousands of miles away from their family of origin, and thoroughly indoctrinated in the false Western paradigm of "individualism," Jews still retain at least a bit of resistance against these trends that will leave the vast majority of Americans high and dry in a real crisis. Telling them it's their own fault for rejecting traditional Judeo-Christian family values and culture isn't exactly going to help, either. They sacrificed their long-term security on the altar of their careers and their "independence," and only too late will figure out that human beings were not designed to be "independent" by their creator.

Three, political activists will blame the nation of Israel and the Jews for causing all the trouble in the first place. Israel will be forced to defend itself with nukes when the US fails to stand by their treaty obligations, plunging the world economy into chaos, and again Jews will be blamed.

So all of the rebellious Jews who refused to move to Israel will find themselves hated and the target of violence, with no recourse against their enraged neighbors and city/state governments. The far-right and fundamentalist christian groups who will be more than happy to yell loud and clear to the regular populace that it was their abandonment of religion and of Israel that caused God to punish them will not help, either. God will protect Israel - anybody that lives outside of Israel is on their own. The Jews of America will be astonished to learn this, but it is true.

So what can we do? Not much, frankly. Make Aliyah if you can. Get out of debt if you can. Collect gold and silver coins if you can - but all of these things should have been done long ago, it is, regrettably, practically useless to try and start now.

We have made our bed - and a lot of past and present high level Jews are, in fact, responsible for this monetary crisis of fiat money and abandonment of God's principles of fiscal responsibility - and now we will have to lie in it. Our punishment will come right along with the goyim, for our parents and grandparents cast their lot with America, not Israel. America is not the promised land. America has lost whatever favor God might have previously granted to them, because of rebellion. And here we are, class. Time to reflect on the choices we have made may be short.

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