Banks
Thanksgiving dollar plunge
Whilst the giant sleeps for four days the world at large is busy – dumping the dollars they hold! The dollar is sinking against every other currency – and at the time of writing is now at $1.50 against the Euro and will soon be on par with the Canadian dollar.
Gold, as predicted, is reaching for the sky and has now passed $1,180 per ounce – the $1,200 mark is almost upon us.
When the wankers (sorry Bankers) return to Wall Street on Monday expect some upheaval!
Sachs and the City
Whilst Goldman Sachs prepares to handout billions in corporate bonuses to its staff, how is the rest of the US economy?
This news article grabbed my attention…
CHICAGO (Reuters) – The seven-bedroom, three-bath house in this city’s West Garfield Park neighborhood had once been someone’s American Dream.
But at a recent auction of about 100 foreclosed houses and condos, it was just Property No. 20 — and drawing no bids from a roomful of buyers despite its bargain-basement price.
“Any interest in this home at $7,000?” fast-talking auctioneer Renee Jones asked the crowd. “If not, we’ll move on.”
“The foreclosures are going to explode again.”
Dollar Retreats in Broad Sell-Off
NEW YORK — The dollar sold off broadly overnight Tuesday, reversing gains from the two previous global sessions to hit new 12-month lows against the euro and Swiss franc.
Investors turned to higher-yielding currencies as most Asian shares and European stocks moved higher, triggering a new wave of risk-taking. In early New York trading, high-yielding currencies have backed off their overnight highs and trading is somewhat volatile.
The dollar bloc currencies were the top performers in the overnight session, led by the New Zealand dollar, which set a new high for the year after posting its lowest annual current account deficit in more than four years, said Brown Brothers Harriman analysts.
The euro hit $1.4822 — a fresh 12-month high — and the dollar hit 1.0216 Swiss francs — a new 12-month low — as traders abandoned the positions they had staked out Monday in anticipation of this week’s meetings of the G20 and the Federal Open Market
Took my chevy to the levy, but the levy was dry
Personal spending as dropped in four of the last six quarters. That has not happened since records began in 1947!
In the States the consumers’ net worth is down – from $62Trillion to $50 Trillion. In both the UK and the US the currency is being debased by the minute – gold has already passed the $1000 an ounce and silver is poised to clear the £10 mark!
Remember the days when a silver dollar was worth – well, a dollar!
So for those who where surprised when the banking crisis hit and were under the impression it was lack of money that caused it – think again. The Fed and the bank of England are busy keeping the printing presses going, to fill up the reservoir – but the hole in the levy is called debt….
All that glitters
Despite the move from the stock market to more solid , like gold, the average price of gold has still remained in the region of $900US per ounce.
INVESTORS BEWARE
Investors in gold have two traditional routes – one is to physically store gold coins and/or bars in the house or a bank vault – or to accept a certificate from the seller. The seller must have at least 90% of physical gold to back the certificates they issue.
We have all seen the results of fractional lending by the major banks getting out of control -as the dollar gets closer to total collapse expect to see that 90% rule breached – as it stands at the moment I would bet if 50% of certificate holders wanted their gold it would cause a very serious problem.
Investing in gold and silver is a wise move – but a piece of paper may end up being just that!
The only thing that is new, is the history we haven’t read..
We all know that between 1921 and 1923 hyperinflation ran amok in Germany – in fact by 1923 the mark was worth one-trillionth of it’s value from 1914! The government at the time was not inclined to raise taxes and so, as can be currently seen, ran huge budget deficits – interest rates were pegged well below inflation and fiat money (printing money with no backing) was epidemic.
Currently both the USA and the UK are funding deficits in the budget by the same method – just printing more and more paper. The US is approaching the same criteria as hyperinflation Germany and the UK has already past the post. The question is, therefore, why isn’t the US and the UK seeing the same inflation trend? The answer, it turns out, is quite simple – foreign investors selling the mark short (betting on inflation). This was possible, as is now, because the private banks lent large amounts, returning interest to the banks.
So what was the turning point for Germany? How did it achieve such a turnaround in such a short time-frame? Hitler! He issued ‘Labour Treasury Certificates’ – millions of Germans we employed to reconstruct Germany and paid with the Treasury Certificates. As these certificates did not trade on foreign markets there was no outside speculation – they were stable.
The problem, it would appear, is therefore the banks! Lincoln realised this, but his attempt to disband the private bank cartel known as the Federal Reserve ended with his death. The same with JFK and his executive order 11110.
The currently insolvent California could learn a lot from history – but it doesn’t even have to go that far back – only three out of fifty states are currently solvent, one of them being North Dakota. Since 2000 the GNP there has grown 56%, personal income is up 43% and it actually has a budget surplus of $1.2 billion – how has North Dakota managed to beat the trend? It has it’s own State Bank – The Bank of North Dakota, established in 1919.