“Petro-Currencies” Replace Petro-Dollar

Petro-Dollars (courtesy Google Images)

Every so often, I propose a theory that’s new (to me, at least).  When I do, my initial presentation of that theory is often clumsy and incomplete.  This isn’t surprising.   If the theory offers a new insight, it takes time to learn how to explain it clearly.   However, over time, if the theory comes to seem valid, my presentations of that theory become more refined and easily understood. 

Today, I present another theory with language that’s at least clumsy (some might say, “half-baked”).   I don’t like to present texts that seem clumsy even to me, but I have to do so to not only to try explain the theory to my readers, but also to explain it to myself.  More, I must make the presentation because I know that some of my readers will make comments that will help me to better understand if the theory is probably true or probably false and thereby help me to make clearer presentations in the future.

In essence, I can’t seem to take this theory any further without help from my readers.

For today’s theory du jour, I propose that while the former global monetary system from A.D. 1971 to A.D. 2001 was based on the singular “Petro-Dollar,” in the past two years it’s been replaced by a new system based on several “petro-currencies”.  The fiat dollar is no longer the only currency that can purchase petroleum, but with the reemergence of the US as an oil exporting nation, the fiat dollar has gained some value as one of several “petro-currencies”. 

The emergence of the several “petro-currencies” might explain the last 20-month decline in the price of gold.

 

Desperate Times

Description: Newspaper clipping USA, Woodrow Wilson signs creation of the Federal Reserve. Source: Date: 24 December 1913 (Photo credit: Wikipedia)

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal.  In one of his articles after the recent “April Plunge” in the price of gold, he wrote:

 

“I was the first to point out that the Federal Reserve was rigging all markets, not merely bond prices and interest rates, and that the Fed is rigging the bullion market in order to protect the US dollar’s exchange value, which is threatened by the Fed’s quantitative easing.”

It’s one thing for people like the Gold Anti-Trust Action Committee (GATA) to claim that the gold and silver markets are rigged. It’s another thing entirely to have a former Assistant Secretary of the Treasury to make similar claims.  Mr. Roberts’ credentials add much credence to the market rigging claims.

 

“With the Fed adding to the supply of dollars faster than the demand for dollars is increasing, the price or exchange value of the dollar is set up to fall.”

 

For Whom the Currency War Tolls

Hanami celebrations under the cherry blossoms in Ueno Park, Tokyo (Photo credit: Wikipedia)

According to the South China Morning Post (“Japan stimulus will start currency war, say Chinese economists”),

“The Bank of Japan will double its monetary base to 270 trillion yen (HK$22.1 trillion) by March 2015.”

 

Doubling their monetary base?!  In just 2 years?!  That’s an average of 50% increase per year!  Ohh, the beasts!  The damn Japs are inflating the yen and starting another currency war!!  Ohh-Em-Gee!!!

 

Federal Reserve

Not necessarily profound, but authoritative.  Seeing seemingly “mainstream” criticism of the Federal Reserve helps validate some of the ideas and attitudes concerning the Fed that are commonly held by “conspiracy theorists”.

video  00:04:42

 

Jeff Berwick: US Economy Headed for Collapse

“This is the most dangerous time in human history for capital.”

video    00:09:49

 

The Root of All Evil

The following video offers a compelling argument that all modern wars are initiated by and for the owners of the world’s central banks.  Michael Rivero (the video’s author) speaks a little too fast, but he makes good sense.  If you listen to this video often enough to learn and understand the argument and evidence, you’ll understand more about this world’s current reality than 99.9% of the American people.

The video implicitly points towards the spiritual basis for the bankers’ wars:  the love of money.  The Bible, of course, declares at 1 Timothy 6:10 (KJV) that the “love of money” (not money, itself) is the “root of all evil”.   And who loves money more than the private, central bankers?  In the name of central bankers’ love of money, we kill foreign nations and and they kill us.

video      00:43:44

 

“Currency Wars” Against Whom?

Inflation & Gold (Photo credit: Paolo Camera)

When you have a “war,” it is presumably waged against a particular “enemy”.  If the governments of the world are about to engage in “currency wars,” who, pray tell, are their enemies?

Premise:  By inflating its currency and thereby lowering its currency’s value, a nation fosters its “competitiveness” in foreign markets—but simultaneously robs its domestic creditors of their savings and robs  its own working people of their standard of living. 

•  Inflation makes the fiat dollar “cheaper” and thereby benefits two primary groups:

 

Five Key Investment Criteria

Reverse of the American Buffalo gold coins (Photo credit: Wikipedia)

The Financial Trend Forecaster recently published an article entitled “The Five Key Investment Criteria”. The article was intended to help people decide which kinds of investments (stocks, bonds, commodities)—or even specific investments (GM, IBM or ABG)—should or should not be included in their portfolios.

The article explained,

“Safety is a major concern for two reasons:”

Safety is a “major concern” because we live in “interesting times” when our economy is fragile and prone to greater recession and/or depression.  Most investments—especially paper stocks and paper bonds—are vulnerable to losing value (purchasing power) until our economy truly begins to make a genuine “recovery”.

 

Germany Repatriates Gold from NY Federal Reserve

German Gold Euro 2005 (Photo credit: Wikipedia)

Germany reportedly stores about 1,700 tons of gold in the New York Federal Reserve Bank.  Germany recently announced that it would repatriate some of that gold back onto German soil at the rate of about 50 tons per year.

Some commentators believe the repatriation of German gold is one of the most important events in recent financial history.

For example,

According to Jim Sinclair, “Germany’s repatriation of her gold is a salvo fired at the concept that the USA has all the gold it claims and all the gold it stores for others. If true, this event is the most important gold development since Charles De Gaulle [demanded gold for US dollars in the late 1960s].

According to Bill Murphy, “Let’s say the GATA camp is only partly correct about the gold loans, gold swapped, and gold no longer there [in Ft Knox and the NY Federal Reserve vaults]. If other central banks, or the investment world, believes GATA is correct, it could set off a panic.  Numerous central banks could call in their gold loans. Where would the gold come from?”

 

The “Fiscal Cliff” and Gold

MEL-GIBSON-JUMP ANSWER TO FISCAL CLIFF ! (Photo credit: snowlepard)

The term “fiscal cliff” describes a moment in early January, A.D. 2013, when certain cuts in federal government expenditures and increases in federal taxes are mandated by law to occur.  The purpose for these spending cuts and tax increases is to reduce the current federal budget deficit.

 

However, many fear is that if the government spends less and taxes more, the net effect will be to slow the economy and push us deeper into recession.