Posts Tagged ‘reserve currency’

Gold Key, weighing one kilogram is used to acc...

Appearing on the Christmas Day 2011 broadcast of The Alex Jones Show, Porter Stansberry of Stansberry Research said in response to MF Global leveraging themselves 38 to 1 and going bankrupt (starting at 52:03):

This is how the system worked for 40 years. Ever since we left gold in ’71, this was the path to wealth. You borrow unlimited amounts of money and if you get in trouble, you will get bailed out, and you just borrow more money — that’s the secret. That is how Corzine made Goldman Sachs the biggest bank in the world — by leveraging everything, and getting bailed out anytime there was trouble.

The main factor in that case was likely outright theft, and regarding U.S. government policy, Congress’ repeal of Glass-Steagall under the Clinton administration in 1999 and the repeal of the ban on most derivatives under the Reagan administration were the real factors involved.

Stansberry is referring to Nixon ending the international gold exchange standard, which allowed foreign central banks to convert their USDs to gold at $35 an ounce, and there wasn’t anywhere close to 100% backing of the dollars held by other countries, so they were already lending out more dollars than was backed by gold.

Furthermore, Goldman Sachs is not the largest U.S. bank. Market capitalization, for Goldman Sachs, according to Yahoo Finance, was $46.17 billion as of December 23, while J.P. Morgan Chase was valued at $127.49 billion. The net income available to common shareholders of J.P. Morgan was $18.55 billion, while it was only $3.76 billion for Goldman Sachs.

For more on Porter Stansberry, see my article, Porter Stansberry’s prediction that the U.S. dollar will cease to be the world’s reserve currency in 2011 likely not to come true.

For more on the bankster gold standard, see my article, The gold double standard.

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United States dollar

On December 14, 2010, Porter Stansberry of Stansberry Research Associates released a video called “The End of America.”

In it, he made the claim (at 6:18):

Let me back up and show you in the simplest terms possible what is going on, why I am so concerned… and what I believe will happen in the next 12 months.

He then went on to talk about the end of the U.S. dollar as the world’s reserve currency (13:40).

“The U.S. dollar has been the world’s reserve currency for decades now. So most Americans don’t have a clue about what the repercussions are of losing this status.

Commenting on the likelihood of Stansberry’s prediction much earlier than October 2011 wouldn’t have been that useful, as we learned in 2008, when the U.S. stock market was relatively high prior to September, before things began to massively collapse.

And, obviously a prediction much later than now wouldn’t be of much value either. Therefore, on October 23, 2011, I predict that Stansberry’s prediction is likely not to come true.

Eventually, the U.S. dollar will lose its status as the world reserve currency, since nothing lasts forever, and especially not a currency whose status is imposed through artificial forces, and not market forces.

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In commenting on World Bank president Robert Zoellick’s gold linkage article in the Financial Times on November 7, 2010, at the start of the first segment of the second hour of the following day, Dr. Stan Monteith of Radio Liberty said:

The [current] president of the World Bank, Mr. Robert Zoellick, had come forward recently and said that what we need is a new international currency backed by gold. Now, that is an amazing, amazing statement. Because what it really means is that they’re talking about doing away with the dollar as the world reserve currency.

Robert Zoellick is one of the members of the Trilateral Commission. And the Trilateral Commission, there’s only 87 of them [from North America] — they control our government.

Barry Goldwater in page 280 of his book said the purpose of the Trilateral Commission was to take over control of the commercial and financial interests of the world by first seizing control of the government of the United States.

When he calls for a global currency, I think that this has a great deal of significance. He calls for a global currency that’s gold backed, I think that this could mean the end of the dollar dominance of the world and the impoverishment of millions of Americans.

To me, the fact that Zoellick was a member of the Trilateral Commission and called for a linkage to gold should ring an alarm bell, especially for those sincere people such as Dr. Stan and Ron Paul who are strong advocates of a gold standard.

Is it likely that Zoellick, being president of the World Bank and former member of the subversive Trilateral Commission, advocating a linkage to gold, in the best interests of the people in general, or is it more likely that he is advocating in the best interests of the banksters he works with and is one of?

I believe it’s the latter. For more information on the historical failures of a gold standard, see my articles:

Inflation on the gold standard,

“Famine or Gold Standard?” How About the Gold Standard and Great Depression

A new gold-backed currency for the U.S. dollar and

The gold standard loses its perceived lustre with major media attention,

and watch the free full-length version of the documentary by Bill Still, The Secret of Oz.

and become a regular listener of George Whitehurst Berry’s Crash! Are You Ready?

For the success of “fiat” currency, see my article A “fiat” currency that lasted more than 500 years.

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Since 2009, I have heard two prominent financial analysts repeatedly make the claim on multiple programs, including two major ones with over a million weekly listeners, that gold and silver are all you can rely on. But what about platinum?

How much can you really rely on gold and silver, when gold was confiscated by the U.S. government in 1933 at the height of the Great Depression, and silver in 1934. And how can you specifically rely on gold when it’s the commodity most controlled by the international bankers, and a reserve currency for national and international banks?

Unlike gold and silver, a confiscation of platinum is unlikely for several reasons:
1) It’s not a reserve currency for national and international banks like gold is.
2) It isn’t as widely held as gold and silver.
3) Its historical investment and currency use is shorter than gold and silver.
4) Its decreased demand relative to gold and silver in a recession, due to its overwhelming industrial demand, leading to better performance during the subsequent recovery.

When I mention platinum as an investment comparable to gold and silver, I’ve been told that platinum has little to no historical use as a currency. As I wrote previously, platinum has an international currency code along with gold, silver and palladium. Since 1988, one ounce platinum coins from the Royal Canadian Mint have a legal tender value of $50. Since 1997, American Platinum Eagles from the United States Mint have a legal tender value of $100.

From 1967-1978, the first and only regularly minted gold coin available for the masses was the South African Krugerrand. However, due to trade sanctions imposed by many Western countries on South Africa for their policy of apartheid, the Krugerrand’s availability was severely limited from the 1970s until 1994.

It got some serious competition in 1979, when the Royal Canadian Mint began minting Canadian Gold Maple Leaf coins. Just nine years later, at the height of sanctions on the import of Krugerrands, one ounce platinum coins were minted by the Royal Canadian Mint between 1988, and continued to be minted until 2002, and were reintroduced in 2009.

Not only can you rely on platinum as a historically non-confiscatable metal, you can also rely on it historically trading at a substantial premium over gold. Over most of the past decade, platinum has traded at a 50 to 100% premium over gold. At a 38% premium over gold at the end of January 2010, it still has plenty of room to appreciate to its historical trading premium relative to gold.

Recently, platinum outperformed gold in 2009, and for the first month of 2010.

Now ask yourself why you’re being told that gold and silver, and not platinum, are the only things you can rely on, why gold and silver are being pushed so much, and not platinum, and why most of you haven’t heard these things about platinum before.

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