Are the masters of our currencies heroes or villains? Is it better to save the banking system or save the currency system? Is it good that they keep the gold price low for us? Ben Bernanke, chairman of the Federal Reserve: Stated on July 18, 2012 before House Financial Services Committee in Washington that if the U.S. Government continues to go into debt and no foreign entities are willing to hold that debt then he will print new dollars for them. He is willing to risk the currency itself for the short term continued consumption of the U.S. Government. He helps to keep the world gold price at low levels and even oversees an official price of US$42.22/ounce. He helps to keep the process of 25% more goods and services flowing into the U.S than flows out from the U.S.. Short term lifestyle benefits and low gold prices but with inevitable hyper-inflation. http://www.bloomberg.com/video/bern...cy-economy-part-1-luuXCw9IRSea8m0QYeSN1A.html Mario Draghi, President of the European Central Bank: Stated on August 2nd, 2012 that he will do whatever it takes to preserve the euro but only within the mandate of the ECB. He stated that he cannot print euros to cover bad debts of Governments, that it is not permitted by the European treaties and it is not within the ECB mandate. He is willing to sacrifice banks and sovereign debts to save the euro currency itself. Short term (2 years so far) debt and bond crises but no hyper-inflation. He values gold at current market prices and adds it to the prominent position of asset number one on the ECB balance sheet. http://www.youtube.com/watch?v=fW5Jw1F9Hj8 Glenn Stevens, Governor of the Reserve Bank of Australia: He may follow the FED and save the banks at the expense of the currency (which will collapse the banks anyway) or he may follow the ECB and sacrifice the banks and our retirement funds to save the currency. Which path will he take? In an unrelated matter he has stated that he and the board of the RBA had no prior knowledge of bribery and corruption charges alleged against RBA subsidiaries despite evidence to the contrary. http://www.abc.net.au/news/2012-08-24/glenn-stevens-rba-testimony-to-economics-committee/4220056 There is only one option for Ben Bernanke, short term delay then full on hyper-inflation. There is only one option for Mario Draghi, preserve the euro through re-pricing euro gold on their balance sheets, this will re-capitalize the Euro banking system and solve the sovereign debt crisis. But he can't initiate this without also triggering US$ hyper-inflation. His recent comments that he will "Do whatever it takes" (within the ECB mandate) is a message loud and clear to Ben Bernanke that he will not wait much longer to do this. What will Glenn Stevens do?
Are the masters of our currencies heroes or villains? - CRIMINALS Is it better to save the banking system or save the currency system? - Let them both fail as they will eventually anyway. History shows us this. Is it good that they keep the gold price low for us? No - in a gold backed currency, which would keep a lid on the excess spending of governments around the world, gold would be worth so much more than now. Of course governments want to be able to spend money willy nilly, hence why we have fiat based currencies. Gold keeps a lid on excessive government proliferation, but it will also slow economic growth. Hence why governments have given up on it. Our economies are now based on growth at all costs, even though it will become apparent that this model has failed. It is failing in the west even as we speak.
Oh come on man, this is basic Keynesianism vs Austrian School. Obviously everyone here in this forum believes in investing in precious metals thus most of us are Austrians. The current monetary system is so immoral. They're even so scared of even the simplest audit. What more competing currencies? I doubt it's going to happen.
The amusing thing is, the bankers are not ignorant of what they do. Oh they put on the song and dance for the masses, but similar to Bagdad Bob who fronted the cameras daily and promoted ludicrous propaganda during the Iraq invasion, these people will lie until their blue in the face because they honestly have no choice here. If they are honest, they trigger the collapse and put themselves out of a job - but worse, they face the potential backlash of the populace when they awaken and realise they've been had. It's interesting to note Alan Greenspan didn't make the list, because he was actually one of the few who before he got into the scamming central bank, was actually on record for undermining the whole system and displaying the totally immoral system for what it is. That said, I often wonder if the entire purpose of the fiat model and central banks isn't so much a system designed to fleece an unwitting public (like a casino), but rather to undermine and potentially destroy the political system of the day. Perhaps the banks don't see the population as an enemy, but rather the politicians and that the pain we feel as a collective is merely collateral damage in an ongoing war against the establishment. Or perhaps again, this is how the crusade started under the likes of Greenspan, but degenerated into a skimming operation by subsequent bank chiefs when they realised that the government would use lethal force to stop them and that they may as well settle into a simple routine of money for nothing. Either way, the ongoing war between banks and government will always harm the population and your only protection against their tyranny is to simply stop participating in their war. Gold, Silver - independent thought - living a simple and sustainable life and not relying on the grid - owning land. All the sorts of things that our forefathers knew were the keys to freedom and yet, have almost been totally disregarded by the population today. In as much as we can debate that central banks and governments are enemies of the people, there's a solid case to say that the people are themselves the worst villians of all.
I don't get this war between banks and Govt thing auspm. The banks and Govt in the USA are in bed together. There's no war. Are you trying to say that Greenspan 'saved' us from the USD fiat system by destroying it? That's a stretch that even I can't believe. Greenspan is responsible for probably the most deaths and suffering as a consequence of US central bank policy ever. So, to 'save' us, was it worth it? There's plenty more suffering to come.
What central banks and governments are doing has a ratcheting effect on people's wealth. We should be seeing high inflation after all the GFC bank bail-outs (yes we had them in Australia, but no media coverage), yet we are only seeing mild inflation. Why only mild inflation? Because most of that bailout money ends up with government and corporations, who don't/won't spend it. Because there is little trickle down effect, that money stays at the top with banks, gov, corporations, leaving the crumbs to common people. It has the effect of stealing wealth. End result is governments, banks, and large corporations get more money and power. Common people get screwed (as usual). If things keep going the way they are, the only outcome will be some form of slavery for commoners, with wealthy overloads having high positions in government, banking, finance, corporations. It's only a matter of time.
^^^ Why no inflation? Don't forget there's a time-lag between money supply and inflation (and another one between hyper-supply and hyper-inflation). This is why initial printing looks benign even before you add the current effects of the holding and - more importantly - of substitution of official Central Bank money to replace the FRB funny-money (which was disappearing).
I know there's a time-lag. But I don't think we'll see the full inflationary effect many gurus were expecting. Mainly because that bailout money will stay at the top, it won't circulate freely, except perhaps in form of more citizen debt. A classic example is China: A steel company investing in residential real estate. These are the kinds of places bailout money is going. It will cause bubbles in all sorts of places. Hopefully in PMs.
