Gold up—Dollar down

A.     H. Krieg 09/09/06

On September 8 2006 PBS at 2PM announced that the United States would cease all finacial transactions with Iran due to suspected terrorist funding by that nation. Shades of the reasoning for “Operation Enduring Freedom” i.e. Gulf war II, in fact it rings just about as true as the assertion of Washington as produced by the Mossad, that Iraq was harboring and training terrorists.

As Paul Harvey so aptly puts it, “Now here’s the rest of the story”.

Not long ago, in fact on June 15 2006 SCO (1) had a meeting at which Russia and China initiated discussion about appointing Iran to full membership. SCO is gradually especially with the emergence of Russia as a major energy producing nation becoming as important as OPEC. (2) SCO presently consist of Russia, China, Kazakhstan, Kyrgyzstan, Tajikiskan, and Uzbekistan. with India, Pakistan, and Iran having observer status. In other words over one third of the world’s landmass. It is important to understand that Iran is larger in area than Pakistan. In general SCO nations demand to be paid in EUROS or gold Dinars rather than dollars. Putin in the same week announced that Russia will be liquidating its $ 400 billion in US dollars (T-bills) and converting those asset into gold to bolster the Ruble.

Not only has Putin outdone Bush, he has buried him. On the matter of energy the USA has been outflanked in the Eurasian markets, which will generate geopolitical repercussions. It is not unreasonable to speculate that within three years all energy products will be traded in gold Dinars or Euros. The effect of this on the average American will be disastrous, resulting in a substantial drop in disposable income due to inflation. The worst hit will be those on fixed incomes, retirees.

In March of 2006 the FED (3) announced that they would no longer report the M-3 money supply situation. M-3 is the amount of increase in fiat-money (4) supply above what was originally issued. Thereby making it impossible to gauge the value of the dollar. This is not exactly an inducement for third countries to use the dollar as a reserve currency.

Additionally the American housing market is now in freefall. In the last five years the housing market has been artificially placed on the steroids of ARMs and no interest mortgages, courtesy of the Bush administration. ARMs financing is showing increases in repayment costs of over 5% in the last three weeks, this produces new mortgage due payments far beyond the ability of most owners of ARMs to pay the amounts due. Foreclosures that were unheard of five years ago are now commonplace. Worse yet many banks wind up stuck with properties that are impossible to sell at the valuation at the time of foreclosure leaving them stuck with losses. Just in Manatee County FL there is an inventory of over 6,000 single-family homes on the market that are simply not selling. While the 2000 to 2004 showed increases in property valuation of 45% these are dropping like lead balloons. The average home is now selling 6.5% below the asked for price that is already a substantially reduced price in many cases of 35 to 45%.

In April and shortly thereafter Iran, Libya, Russia, Venezuela, along with several minor oil producers announced that they would no longer accept Dollars for petroleum exports but instead Euros or Gold Dinars. Who can blame them? If the situation presented itself to me, I would do the very same thing.

In the last reporting of Americas trade imbalance the government announced that we were at the highest level of deficit trade finance in our history. About the same time it was revealed that America was financially hemorrhaging by the cost of our wars in the Middle East and Asia. Our government now spends over one and a half billion dollars every eight hours excluding the wars.

It is possible that we could have overcome these catastrophes but not with the fools we have running our state department, and executive branch. Frankly that’s not just Bush, the Middle East would look very different if Carter had not forced regime change in Iran, who was our best ally in the Middle East at that time, and was then flipped with help by France into a rabid Islamic Shiite theocracy, our worst nightmare.

While Putin plays chess Bush has baroques and reads Playboy. He is in fact so far outclassed and out paced by Putin who is an intellectual giant compared to the American president that we need not further comment on the issue. Our foreign policy under our present government is astoundingly simple minded. The Neo-Cons better called the Neo-Zionists think that every international issue can be won by 1) force of arms, or 2) force of economic blackmail, well after all that has been the modus oparandi in Israel since the ‘40s’. Domestic policy particularly in trade, finance, and strategy is infantile, and may be considered in line with the thoughts of Texas cowboys, lack of understanding of international matters abounds.

Imbeciles have managed our State department for decades. Think of actions all the way back to FDR, Clinton and the Bushes. Madeline Albright (not so bright) and now Ms. Rice who is the protégé’ of Madeline’s professor father. I cannot think of any nation in the world who has had such totally inept fools in charge of her foreign policy as we have. I won’t even go as far as our secretary of defense. In fact I am far from the only person to think so. Mr. Mearsheimer and his co-author Stephen M. Walt academic dean at the Harvard Kennedy School of Government have produced a scathing report analyzing our Middle East Policy of America vis-à-vis Israel. In it they conclude that the pro-Israeli lobby hurts both American as well as Israeli interests, both regionally as well as internationally. That of course is not news to those of us who study the issue. AIPAC (5) has been caught red-handed jut last month, for the umpteenth time dealing with Mossad agents relating to American secret information purchases on behalf of Israel. The fact is that AIPAC uses its considerable political clout to punish any legislator who votes against any issue by them considered important to Israel, they could care less about America the nation in which they live, almost all are dual nationals holding Israeli passports.

What we in fact have in America is a Jewish problem. We have a government whose policy it is to allow the IDF (6) to do any damn thing they like to Palestinians including, kill them, destroy their homes, humiliate them, plow down their orchards, steal the top soil off farms, cut off their water supply, withhold funds due them, steal their lands, blow up and bulldoze their homes and businesses, or any other item that comes to their mind. Our problem relates to the fact that our legislative bodies, and our executive are intimidated by AIPAC, while our justice department is in bed with the SPLC (7) and JDL (8) meanwhile the WJC (9) extorts funds from around the world on behalf of Israel, not to be left out is the Wiesenthal Center in LA whose primary act in that in recent past has been the fabrication of false information relating to neutrals of WWII. The last president that had the guts to do anything about this was Eisenhower who told them in ’56 to get out of the Sinai or he would freeze all Israeli assets in America. They promptly withdrew out of Egypt. Today the power of the Jews has reached the point where our entire government is totally debilitated by the Jewish lobbies. Regardless of the fact that Jews provide over 50% of the political financing of the political process it would be refreshing if at least some of our elected idiots would realize that 3% of the electorate does not control political action and that the other 97% also deserve representation. 

Now consider; we are as a nation spending 40% more than we take in, our private banking monopoly has announced that they will no longer report how much paper they are printing, our trade imbalance with Mexico alone has deteriorated in ten years from a $ 6.5 billion surplus to a $40 billion plus deficit. We can thank NAFTA (10) for that. Our national trade deficit is now over $ 50 billion per month. And while all this is going on we continuously increase our military and social aid to Israel, and go on with giving them over half of our entire foreign aid. This to a nation that is worldwide in the top 20% of per capita income. in fact over 50% of Israelis have higher income than the American median income.  And then to top it off our wars in Iraq and Afghanistan are costing us just over one billion dollars per day.

The impact of all this on international monitory policies, the price of gold and silver, and the value of the dollar cannot be underestimated. Since introduction the EURO has risen from $.84 cents to about $ 1.20 or in percentage terms over 35% and that’s in less than ten years. Gold has simply skyrocketed in the same time. In 1996 gold was at just over $ 340.00 today it’s over $800.00.an increase of over 100%.  Silver likewise has risen exponentially.

The basic question is what does all this have to do with you as an individual?  That’s simple. As the value of the dollar declines due to your elected officials overspending, (inflation) every product imported into our country will rise in price. That is called inflation and it is my contention that unless drastic change is made immediately dollar inflation will rise dramatically. This means an increase in fuel, housing, food, transportation, and every other issue that comes to mind. It also means a lower standard of living for all of us.

1)     Shanghai Cooperative Organization 

2)     Organization of Petroleum Exporting Counties

3)     American Federal Reserve System which is not a reserve, not Federal, and not a System but in fact a private banking monopoly.

4)     Paper money

5)     AIPAC American Israel Public Affairs Committee.

6)     IDF Israeli Defense Force

7)     SPLC Southern Poverty Law Center (Morris Dees Esq. a real dirt bag)

8)     JDL Jewish Defense League  (best renamed Jewish intimidation League)

9)     WJC World Jewish Congress (Jewish extortion operation)

10) NAFTA North American Free Trade Area.

Read A.H. Krieg’s latest book, MONY a primer form all booksellers.