Big Picture

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Summary
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Here is a little thought experiment.

Why was petrol in Europe priced at 4 to 5x (via taxation) the price of gasoline in USA, while the strong dollar (see "Confessions of an Economic Hitman") policy caused the retardation of the developing of 6/7ths of world population and thus retardation of the demand for oil?

Thus the central planners subsidized a too cheap price for oil in the USA? Why?

To cause a suburban bubble that will pop and render America's greatest strength (its vast land resources and individualism) into a weakness.

The plan is nearing completion.

This is fairly strong – though general – language. But now, apparently, we seem to have evidence that China intends to put the UN's mandates into practice in a big way. The ultimate intention is to depopulate the countryside we would imagine, in preference for gigantic cities. Farming will be accomplished corporately and the corporate state will benefit from an expanded, controllable, urban population – one that can be repurposed for whatever social and corporate goals the leadership has in mind. The goal, ultimately, is globalism and a marriage with similar urban constructs created by Western elites.

It is control that the power elite is after – East or West. Environmentalism is merely a pretext for the kinds of mass-engineerings of society that is contemplated. And while the Chinese may be ahead in the race to implement Agenda 21, there is no doubt that Western elites intend to fulfill UN mandates as well. The Internet is full of stories about the attempted implementation of Agenda 21 under various euphemisms, Smart Growth being among the most popular. But the euphemisms no matter how cheerful disguise the reality – which is the abrogation of Western property rights.

In America, homeowners and local communities are fighting back. But there is a darker side to the story in the US; it can be speculated, for instance, that the depopulation of the Gulf Coast is part of a disguised effort by the powers-that-be to reconfigure population densities for various purposes. The rationales may include both the forcible mergers of Mexico and the US (referred to as the North American Union – and including Canada) and Agenda 21. Alternative news media investigator Jesse Ventura has already devoted a television program to the issue of Gulf Coast depopulation. (We'll be discussing this and other issues with Mr. Ventura in an upcoming Bell interview.)

anonymous wrote:I'm not sure what you're talking about?

"socializing losses, stealing profits"

Please listen to Catherine Austin Fitts, she is much better at explaining how TPTB do not want competition, so their economic model is one of shrinking the pie, and taking all the profits that remain (instead of competition increasing the pie and people competing for the increased profits).

Did you see that this tapeworm economy has announced that free birth control will be mandatory in the new mandatory ObamaCare health "insurance" program of the federal government?

Do you understand that the goal of TPTB is that your daughters will need a license to reproduce, and their reproductive organs and their entire bodies and freedom-of-choice will be controlled?

Do you understand that as the SuperCongress has to protect their power, they will be forced to enact laws that ever more totalitarian?

As a mother, if there was a car on top of your daughters, you could literally pick up the car and move it. This has been actually done by mothers, as they have superhuman strength built in to them which is called up in times of need.

The key is does the insidious tactics of the tapeworm economy makes changes at such a rate that you are never quite motivated to use your superhuman abilities?

Catherine Austin Fitts wrote:Establishing international control of the food supply is a condition precedent to creating a highly centralized digital global currency.

• BRICS and other developing countries have not decoupled in any meaningful sense, and once the current liquidity-driven investment boom subsides the developing world will be hit hard by the global crisis.
  
• Over the next two years Chinese household consumption will continue declining as a share of GDP.
  
• Chinese debt levels will continue to rise quickly over the rest of this year and next.
  
• Chinese growth will begin to slow sharply by 2013-14 and will hit an average of 3% well before the end of the decade.
  
• Any decline in GDP growth will disproportionately affect investment and so the demand for non-food commodities.
  
• Germany will stubbornly (and foolishly) refuse to bear its share of the burden of the European adjustment, and the subsequent retaliation by the deficit countries will cause German growth to drop to zero or negative for many years.
  
• Trade protection sentiment in the US will rise inexorably and unemployment stays high for a few more years.

Mervyn King, Governor of the Bank of England, gave a speech on October 25, 2010 at the Buttonwood Gathering in New York. His speech was titled “Banking: From Bagehot to Basel, and Back Again.”

Does he want to separate the risk-based banking system from the payments system? Did he say ”divorce the payment system?

Before you say to yourself, you can’t make money on a payment system that’s divorced from leverage… you’re wrong. You could make huge money on such a system, especially if you controlled it.

The math is quite simple as this is the philosophical equivalent of Isaiah Berlin’s Two Concepts of Liberty meets John Locke’s Two Treatises of Government. It’s two forms of money; one that’s safe and secure in the form of a risk-free deposit, backed by a gold-based central bank currency and one that facilitates a global payments systems. Keep in mind that under this scenario only the banks will be allowed to trade in precious metals such as gold. Gold is the one thing that the Anglo-Saxon and Islamic worlds can agree on. It’s equal parts sharia and tea-party compliant. And since you’ll have access to the new global payments system, you won’t need money anyway, so how could you sell your gold if you wanted to, that is with the exception of an authorized gold dealer on behalf of the banks.

Everyone knows you can’t fight a war when you’re currencies are connected if the offsetting balance is gold

the stage is not set for a currency war in my opinion. We’ve been in a currency war, but it’s wrapping up. Tell me what I’m missing…

a) with the HKMex and the new PAGE spot market and the announcement out of the City of London that the Yuan will be fully convertible by 2015, we’re opening the pipes that will allow for a pivot on gold… not a war, but rather see-saw.

c) what I see is that with the Euro wrapping up and rolling up into a Western Occidental currency merger and the new divorced currency system as proposed by Mervyn King

o, all the talk about focusing on commodities and oil and especially water as an emerging unit of value makes a lot of sense. That is if you don’t believe in the reset switch (see CHF last week for an overnight example). If my understanding of this is anywhere close to accurate, the Chinese end up with a bundle of mortgages that will be massively deflate (on our books… not theirs) ala the reset. Gold goes to FOFOA heights until you wake up one morning and you’re hit with a Texas size Rick Perry version of the reset switch that feels like sudden death to your inflationary dreams, but not before all that FOFOA price gold is unloaded back on the market in exchange for usable stuff like machines that make things and land that grows things and petro that powers things.

So to summarize… minor deflation followed by parabolic precious metal moves followed by mass hyper inflation followed by a drop in the price of gold followed by a reset switch (the divorce court for the currency, ending of the fed, roll-up of the TBTF banks) followed by massive deflation followed by the repayment of mortgages into what will essentially be SDR’s which inherit their partial gold-backing (you’re not too big to fail now then are you) followed by the purchase of productive assets by those (US alter Ego of SNB decision maker) who unloaded their gold the night before the reset switch.

You’re getting ready to witness a debt-for-equity swap on a global scale. If I was in the armed services, I would be sick to my stomach. This is the other side of high treason when our republic lays down with a communist regime all in the name of business, but this time it’s different. One half of the divorced currency will never be able to say “In God We Trust” because it’s trust will be in the communist state. What’s worse the Chinese people will pay the price for our debts. Sure, they will get “rich” with their gold, but not relative to Western standards. They’ll be rich within the confines of their own state. That’s the bargain. We’re willing to trap them because that’s consistent with their government’s agenda. So much for globalization. Thanks for the cheap TV’s and cell phones. They were great while they lasted.

@Winter:

I can see how the plagues and Mongols caused megadeath. World wars caused megadeath. Civil wars and tyrants caused megadeath.

But a money reform or bankruptcy causing megadeath?

Only a tiny percent of humans are sociopaths that lust for power.

Thus the only way to get a large scale war is to oppress men economically, otherwise they simply won't fight.

Thus every large scale war has been caused by economic failure. This is always at the root cause a fight over resources, which means the root cause is there was historic malinvestment.

Winter your concept that adjustments can be made in the future, ignores the fact that people have limited time here, and if they work their entire life, they don't accept for the promises to be changed when they are too old to go back and make different decisions had the debt bubble and malinvesting system not been in force.

@Winter:
Why are American men fighting in Iraq? Many of them are enlisted, because they would be unemployed otherwise. We are fighting in Iraq, because our collectivism depends on the dollar ponzi scheme, and so we must create guarantee our control over energy in order to sustain the middle-class debt bubble in the homeland. Our collective has created an elite who fulfill our insatiable demands for material goods and debt, and use this a leverage to colonize the developing world, and extract resources at a fraction of the cost that they charge to their debt cattle in the West. The geopolitics is about managing these forces to maximize profit for the elite and that resolves to maximizing imbalances, volatility and ultimately war. All of this, because the common man wants the malinvestment of debt and the infinite promises of the collective.

It is a sick INSANITY, but unfortunately not 1-in-a-million can see that is the case.

Even religious wars were really economic wars. It was about who was going to control the power of the collective. And if you oppress men economically, then plant the idea that the enemy is not the collective but actually a heretic religion, then the men think they are fighting for the solution.

Nadeem is the best I have found at analyzing the near-term moves in the markets. I am adding my "big picture" analysis. As you can tell by writing two long comments (after promising to stop commenting), I am worried that Nadeem is misunderstanding gold at this juncture. Well at least, I want to read his analysis about it. Thank you Nadeem for all that you do.

Nadeem wrote, "leveraged assets such as commodities". He did not mention gold separately. Understanding gold at this juncture is critical to preserving your networth. See gold to DJIA and house ratio:

http://nowandfutures.com/key_stats.html#ratio

(the chart proves we do have deflation relative to gold, but that is inflation to everyone who doesn't use gold as their unit-of-account)

Historically gold will peak at a ratio near 1 to DJIA, thus we still have about 8 - 10x relative gain in gold before it peaks.

Although it appears from the above linked chart, that gold is within 67% of its relative peak to a median house price, please look at the chart going back to the 1800s. I have a theory. See how the volatility in gold-to-house ratio was much less volatile and much less volatile than the gold-to-DJIA, back when houses were not part of "financialization". See how the 1980 volatility in the gold-to-house ratio was much greater and got closer to the extreme in the gold-to-DJIA. Well remember the level of the USA 1980s S&L bailouts? That was a couple $100 billion of peanuts compared to the current global real estate financialization, with a $quadrillion of derivatives of financialization.

Thus my theory is that the median price of a house will be devastated relative to gold going forward.

Gold is not a commodity.

The elite understand that ALL fiat systems end (every case in history of world), and they hold their gold for decades waiting for it. We are now at that juncture.

Understand the oil = gold, strong dollar fiat system:

http://fofoa.blogspot.com/2011/12/unambiguous-wealth.html
http://www.usagold.com/goldtrail/archives/another1.html
http://www.financialsensearchive.com/fsu/editorials/2009/1109.html

Also, the authors above didn't think circa 2000 that silver would perform as an unambiguous store-of-value, but it did outperform gold, because it is a tiny market and doesn't need much monetary demand to drive it up. Here is the reason for the volatility in silver:

http://www.financialsensearchive.com/fsu/editorials/2008/0127.html

My position is we have demographic bankruptcy:

http://www.marketoracle.co.uk/Article31855.html#comment131430
http://www.coolpage.com/commentary/economic/shelby/Understand%20Everything%20Fundamentally.html

The only solution to the demographic bankruptcy is remove the borders.

http://www.financialsensearchive.com/fsu/editorials/2008/0929b.html

But it can't be coordinated without a world government, thus instead:

http://www.financialsensearchive.com/fsu/editorials/2009/1012b.html

The author was prescient:

http://www.financialsensearchive.com/fsu/editorials/2007/0927.html

P.S. besides my infamous silver price prediction in Oct. 2010 (see my articles), I also called the top of the silver price above $20 in 2008 and made the call to sell out of mining stocks in 2008 (this is the forum jasonhommelforum.com/forums).