Stacy Summary: Oh dear, where is snoot?
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ref. max keiser – Get 6 mo’s free storage
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Rick Ackerman-
- Karl Denninger – Market Ticker
- The Big Picture
- Mish
- David Morgan
- King World News
- SmartKnowledge
- GoldCore
fiat money and the french revolution
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crash banksters – Buy Silver & gold
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E pericoloso sporgesi
1st!
@Troy Ounce – good job! hey, I left South Africa out of my list in discussion in last thread; any young, interesting and vibrant financial commentators, analysts, activists or agitators in South Africa that you think we should talk to for Keiser Report or On the Edge?
@maxkeiser:
You sujest buying gold wich I try to do,
Do you advocate buying silver?
@stacyherbert:
You asked previously if there are any young people from Ireland etc willing to speak out.
Check these guys out, Its a start….
http://irishsideofthemoon.blogspot.com/
Look at the silver chart.
Oink oink
Grrr another CNBC vid
It dont buffer well as Youtube vids or ta google vids
Google & youtube ya can buffer 45 minutes and more
Tis ting sounds like an RJ gon bananas
Hic
CNBC should ask Soros..why he is increasing his Gold holdings…
John Galt = max keiser..?
I don’t get it. Why is the IMF selling it’s gold if it wants to introduce the SDR as a global currency?
@Stacy:
LOL!!!
Good morning!
I tink ta CNBC Faber has been reading my comments on Gold
lololololololo
Hic
Tom Prendeville: Collapse of Irish Economy Predicted in 1998 RTE TV
http://www.youtube.com/watch?v=a37sRjkLtWw
Whoa!!!! i think he works for the Independent now
@snoot – I thought this headline would make your morning!
Russia and China should also increase defense spending as they build their gold reserves. Wouldn’t want some belligerent country sending their military into either country to blow everything up and steal all of the gold. (China decreased their defense spending recently: http://www.bloomberg.com/apps/news?pid=20601087&sid=aKeXiuWe3sZ4&pos=9 Probably not a good idea for them.)
Well, I think its nice the discussion is finally on the table. But I don’t agree with Jesse. The reserve currency link between the nation/state/peoples and international trade allowed much more freedom: delinking domestic currencies from the global reserve/trade vehicle will only give the exorbitant privilege to the elite few with access to sdr. The rest will be licking boots. (Mind you, boot licking has been going on for some time now with the clever realizing that position trumps intelligent design; or position has become intelligent design. Look at the Sarah Palin position for comformation of this).
But we really haven’t much choice: it would seem the choices are going to be made for us.
I found this interesting link from April of last year:
http://www.forexpros.com/news/forex-news/yuan-should-be-added-to-sdr-basket-next-yr–mundell-42863
What did Strauss-Kahn mean by that statement concerning the IMF providing the world with a new reserve currency asset? Would they include the yuan before convertibility? Could it be December?
April Paris 2011 Sarkozy insisted the talk about sdr/reserve would finally make the G20. Will the inclusion of the yuan create just the right remix for this to finally occur? What mess will the GDP be in by then and how will gross happiness find it’s place on their agenda?
I really don’t see why enayone should give a toss about the global economy..I agrue that we should get rid of the chips, because someone found a chipmaking machine and is conning everybody else out of their earnings. Make a law saying you may only own what you use and see where we end up..
It’s CNBC that’s is ultimate ponzi. These Americain TV journalists are really quite a disgusting lot of bastards and psychopaths. CNBC Nazis whores. Mind you. It’s an excellent sign that these bastards are at it again against gold.
Is gold just a tungsten scam?
http://www.financialsense.com/fsu/editorials/kirby/2009/1112.html
“The US and UK are vehemently opposed.”
I don’t agree with that either. Sovereign wealth funds are positioning themselves with regards to the sdr/securities market.
http://www.reuters.com/article/idUSLI29819820090818
China and Russia have entered the IMF sdr-denominated bond market.
http://www.brookings.edu/articles/2009/0504_IMF_bonds_prasad.aspx
http://online.wsj.com/article/SB125205971223086149.html
Green money will fund US energy projects through the IMF:
http://www.imf.org/external/pubs/ft/survey/so/2010/NEW013010A.htm
Liquidity will become the domain of the ‘gentlemen’s club’ much as privilege and advantage always has been. The people opposing the sdr/reserve won’t be the American elites (G20 functionaries) who are positioning themselves to profit.
The basis of the nwo is one of ‘invitation only’ and ‘the rest of us’. The sovereign banks are the conduit for sdr access at the international level. Divorcing the people from the global trade currency will create two classes of human: slaves and masters.
About Russia. It’s all Max Keiser and Stacy Herbert’s fault. It’s only logical. Russia is filled with unexploited gold deposits and mines. It’s only logical. Never understood why Russia did not use part of its gold reserves to anchor and solidify the ruble.
Francesnoot.
The SDR is as available to anyone for trade as is the US dollar. It is a medium of exchange. It is the Central Banks clearing that performs the task.
It is not a matter of access – it is a matter of valuation. Who controls the valuation of the medium of exchange used to settle the books among central banks and the reserve currencies.
The Anglo-Americans are opposed to a reconstitution of the SDR that provides more metallic content, and less fiat exposure to the dollar. The non sequiturs in your second comments are quite impressive.
Really, you are far afiled on this one, and so far have said little that makes sense to me.
“The SDR is as available to anyone for trade as is the US dollar.”
Anyone sovereign? Or anyone person?
Nonsensical?
Anybody can access the dollar because it is a liquid asset. Are you indicating that the sdr is a liquid asset? How can you indicate that the sdr is a medium of exchange? Zhou was asking for a REFORM of the international financial system to allow sdr to operate within the context of exchange:
“The scope of using the SDR should be broadened, so as to enable it to fully satisfy the
member countries’ demand for a reserve currency.
Set up a settlement system between the SDR and other currencies. Therefore, the SDR,
which is now only used between governments and international institutions, could become a
widely accepted means of payment in international trade and financial transactions.
Actively promote the use of the SDR in international trade, commodities pricing, investment
and corporate book-keeping. This will help enhance the role of the SDR, and will effectively
reduce the fluctuation of prices of assets denominated in national currencies and related
risks.”
http://www.bis.org/review/r090402c.pdf
Are you indicating, Mr. Jesse, that there are transactions involving the sdr outside of sovereign control?
@fsnoot -
Corporation = person in the US by edict of SCOTUS.
(pardon me while I hurl my breakfast from the nausea induced by the stench of our judiciary opinion)
hehehe Marc Faber always gives a good smile when reporter presents him as the editor and publisher of the GloomDoomBoom Report as if the name is a little secret inside joke for him, you see it in every interview he does. I like it.
Gold is a hedge against inflation, against currency default and currency redenomination. Gold has value across the world, paper currency is usually very limited. Gold is also a protection against crazy politicians and taxmen. Yes, become your own central bank.
francesnoot.
IF the SDR become the vehicle of choice, making it broadly liquid would be a non-issue because it already exists and is handled by the central banks. It is the central banks that do the clearing between countries.
What Zhou was proposing, in the quote you provide, is exactly that.
It has more to do with ‘reserve currency’ issues and the means by which countries balance the books among themselves.
For example, if there was a return to the international gold standard, do you think that individuals and companies would start sending gold bullion in the mail to pay their accounts?
No, it is the VALUATION that is the issue. It would be the exchangability of currencies against the SDR as the medium of reference, NOT the US dollar. The point is that no one country would be able to issue SDRs on their own, if it was a basket of currencies.
I hope this clears things up for you. Think back to the gold standard, and how it was a reference for currencies even if they were not ‘backed’ by it.
It is really not possible to take this further, unless you understand the issue. And to be frank, it seems you have already decided on a position that you will probably continue to beat to death until exhausted.
I keep trying to find ways to explain this to the layman, who is not familiar with international monetary exchange.
Let’s say, for example, that the BIS banks decided to settle their accounts in SDR’s.
This would make NO difference to an individual for example, since the forex markets are deep and liquid, and perfectly capable of changing almost any currency for any other, for a fee.
As banks and other forex mechanism accumulate foreign currencies, the Central bank of each country manages bulk transfer for them, keeping some store of forex is their own reserves.
So for example, when there was a shortage of dollars in europe, because of the mispricing of assets in dollars because of fraud, held by depositors in their own countries in dollars, Mr. Bernanke engage is a swap line of dollars for euros with the ECB. The ECB in turn took care of managing the swaps among their member banks.
This is why Bernanke could look congressman Grayson in the eye and say, Yes I engaged in xx billions of swaps with Europe and no, I have no idea where the dollars went. He was right.
The difference is valuation, the core of the accounts. It is no longer gold, and with the Bretton Woods agreement having fallen apart, the system worked ONLY so long as the US dollar emulated the stability of gold.
With the FEd engaged in monetary easing, that throw that stable regime into a cocked hat. What if the US engaged in hyperinflation? How would the world conduct its business among themselves.
The BRIC’s would like to have a more neutral mechanism for the interbank account settlements, and they would like it in something that cannot be manipulated so easily by the Anglo-American banks.
They would like it to be gold and silver, but that is not going to happen. So they would like to utilize the SDR system, which was itself initially set up for that very purpose, for interbank clearing among central banks. The SDR is the creature of the BIS.
The proposals to place this new ‘currency’ at the IMF is coming from the Anglo-Americans,and it is not popular because of the perception that the US dominates the IMF, whcih it does tend to do.
So that’s it in a nutshell. Make what you want of it. But that is how things work, and that is what is driving different proposals and purchasing behind the scenes.
This is not an easy thing to understand, obviously, since very few people ever have to be involved with it. And even among bankers, very few of them are involved in the macroeconomic implications of this currency or that currency.
I hve spent many many hours of study in this area over the past five years in particular. I know I am oversimplifying in my examples, and I sometimes do not get the jargon exactly right because I am writing with one eye on the ticker as I do now, but I am trying hard to take this material which is really not rocket science, and put it into a language that the people can understand.
Why? Because whoever controls the money supply, and how they control it, can wield enormous power over nations and peoples. And it is one of the most interesting economic developments of the last twenty years, and perhaps the next twenty.
The world is trying to find a monetary standard. Gold tends to be inflexible, and the dollar has proven to be too vulnerable to corruption. So, what next?
That is at the heart of the debate, and it is intimately involved in the status of the US as a world power, with other countries rising in their economic status in relation to it.
Its got it all. Money Finance Scandal! lol. Its just written in a somewhat foreign language, so subtitles are necessary.
@Jesse:
I beat rugs, not issues.
The ‘exchange rate valuation mechanism’ to which you refer will be run from a global regulator. The ideal was represented by Keynes in his reference to an International Clearing Union. It will regulate the exchange for each country, centrally, and also manage the reserves. Nation/states with surplus reserves will be penalized. Under the system, domestic currency will not cross borders except through the international union. The system implies trust in a global head: and we saw what trust in the IMF has brought upon the third world. We would be welcomed into the system as third world countries; the ‘exorbitant privilege’ resting upon those member banks (i.e. private citizens) with sdr-denominated assets/securities and reserves.
Look: the IMF/BIS are already sitting on a unit of account which is presumptuous. The value of the sdr is represented by the cream of the industrial export countries, and the volitility of the sdr is not a representation of any one nation’s currency within the basket. The sdr can be allocated, by fiat, at the whim of the IMF board: by fiat.
The system is inherently corrupt and run by the worst criminals. I wonder that trust would be consolidated in these families to continue their ruthless exploitive colonization of national resources.
But it looks like the men in the world will just talk down to ‘us little ladies’ and lend their backsides to the G20 banks for further services. It’s pathetic.
If one would like to preface the future, then look into the recent 250B allotment of sdr voted upon by the bank’s own governing board. Or the future 100B ‘green fund’ funneling more sdr into ‘green’ investments for the G20 bank profits.
The sdr/reserve will irrevocably separate the people from the profit on their global resource trade. It will simultaneously enable a Keynesian form of governing limits to liquidity for the people and enable a monopolized role in governance for the governing banks of the Bretton Woods litigation.
Any layman (or woman) could suss this out in an afternoon. It’s not difficult, really. The amount of time bent to avoiding the issue or manipulating the outcomes to favor the common man belie the intentions of those who stand to profit through deception and coercion. Sarkozy relied upon some form of tyranny in his outrageous proposals recently delivered at the Davos conference: he followed up his ‘remake of civilization’ with an ultimatum, that the sdr/reserve system would be on the table for discussion at the Paris 2011 G20.
By that time the disruption in world finance will readily lead to another prepackaged solution sprung in favor of the sdr/reserve. But nothing surely before the reweight of the sdr basket in December this year.
The realities of the new sdr/reserve system are so fundamentally different from the current international financial system that they are termed ‘revolutionary’:
http://www.globalresearch.ca/index.php?context=va&aid=13045
“A single clause in Point 19 of the communiqué issued by the G20 leaders amounts to revolution in the global financial order.
“We have agreed to support a general SDR allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity,” it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century.”
@frances snoot, Jesse
The SDR has been used to denominate international cell phone calls for years already.
“To help you better understand how call charges are calculated, just read the example below:
You make a one-minute call via Operator A, Thailand back to Malaysia in January 2006. You are charged THB 42.00. We then convert this charge to the THB SDR rate, which is provided by the roaming operator. Here’s how it works:
Operator A, Thailand
THB SDR rate used in January 2006 = 57.38
Ringgit SDR rate used in January 2006 = 5.43
Calculation
THB 42.00/ SDR THB 57.38 = SDR 0.73
1 SDR = RM5.43
SDR 0.73 x 5.43 = RM3.96
RM3.96 + 10% Maxis roaming surcharge = RM4.35
Note: SDR rates will fluctuate and the amount you need to pay will fluctuate accordingly.”
http://www.maxis.com.my/personal/mobile/intl/callcharges.asp
And, according to Wiki –
“SDRs are the basis for the international fees of the Universal Postal Union, responsible for the worldwide postal system.”
http://en.wikipedia.org/wiki/Special_Drawing_Rights
“The difference is valuation, the core of the accounts. It is no longer gold, and with the Bretton Woods agreement having fallen apart, the system worked ONLY so long as the US dollar emulated the stability of gold.”
The problem was the litigation which enabled the Bretton Woods institutions and the Central Banking (BIS) conglomerate to operate as sovereign entities (World Bank, IMF): enabled by the collusion of criminal politicians and industrial bankers. We still operate under the governance of these insidious banks which stand apart and above the nation/states systems of politics with their proxy IMF finance ministers and central bank heads at the G20 level. The currency gyres feed into the sdr/profit margin at this time, as it has since the bank (BIS) decided to break link with the Swiss franc and developed the sdr as account unit.
These CNBC assholes are the used-car salesmen of finance media. They hate gold because they can’t profit from YOUR purchase!
“But you can’t eat gold,” they say. Can you eat dollar bills?
When the paper loses value the power of gold, silver and lead will increase.
FYI Everybody, I heard a report on the radio (NPR Marketplace or equivalent) seriously quoting Soros saying “Gold is a bubble” without reporting the fact that he’s buying.
The BRIC’s believe that a basket of currencies, containing perhaps gold and silver, is a fairer measure of international valuation than the US dollar alone.
That is the long and short of it.
That is the macro trend. Accord it,, or not.
“BRIC” is an acronym. BRIC is not a sapient being with agency. The agency/power is residing in the central bank BIS system and with the finance ministers/IMF alligned with the LisbonTreaty/EU/ECB.
Have any of the central bank heads or finance ministers confirmed the rumour that “BRIC” wants silver and gold (perhaps) in the reweighted sdr basket? Ignoring the structure of international global banking governance will not make it ‘go away’. It only allows those men behind the agency of the sovereign banking entities to consolidate power.
The question of the value of gold as a derivative of price in fiat currency is not answerable at this time: it will only become apparent within the context of the new sdr/reserve system.
The carbon/cap/credit regime needs to be understood as a part and parcel of the new system. The value of commodities (oil, gold, uranium, et.al.) will find their place within the context of the new system.
Looking at historical antedotes concerning gold value or affixing a metaphysical connotation to gold value (through rhetoric and historical antecedent) is not logical at this stage in international finance.
Hope doesn’t bring change. Action brings change. Hope fritters agency until it dries “like a raisin in the sun”.
http://www.allbusiness.com/finance-insurance/monetary-authorities-central-bank/164731-1.html
International liquidity and the role of the SDR in the international system.
By Polak, Jacques J.
Publication: IMF Staff Papers
Date: Thursday, April 1 2004
Valuation or liquidity? The 3% rule (onus) upon the G20, required 3%deficit/gdp by 2013, may precipitate the kind of liquidity crisis necessary for a bump to the sdr/reserve system.
“The CBO estimates the budget deficit will total $1.6 trillion this year, or 11.2 percent of the GDP, and $1.4 trillion in 2010.”
http://www.bloomberg.com/apps/news?pid=20601087&sid=aNaqecavD9ek
“So to make sense of an argument that suggests that the world economy as a whole, or any of its larger components, faces inexorable deflationary pressures we must also suppose that the economy is in or is about to be in a liquidity trap.”
http://web.mit.edu/krugman/www/deflator.html
http://74.125.47.132/search?q=cache:IjebOmfNqwMJ:www.diis.dk/graphics/_Staff/lfo/BW%2520conf%2520dissemination/Luca%2520Fantacci.ppt+sdr+allotment+global+liquidity+trap&cd=8&hl=en&ct=clnk&gl=us&lr=lang_en&client=safari
@frances snoot
Russia wants rouble, yuan, gold in SDR basket
http://www.reuters.com/article/idUSLS3764812009032
@frances snoot, Is the Board of Governors of the Federal Reserve System “a sapient being with agency?”
@ManfromGlad:
The link you left is not there anymore. What I wrote was that neither the central bank head nor the finance minister from Russia has indicated anything about gold to be included in the basket. Here’s what I found from Kudrin, Russia’s finance minister:
http://www.reuters.com/article/idUSL64476620090606
As I read earlier, there has been discussion about the yuan being included this year without first becoming convertible.
My perspective concerning the Federal Reserve is that the bank is not moving in a unilateral way to protect the dollar/reserve system. Can the institution display sapience? It depends on the coherence of the board.
@frances snoot (Let’s see if it works this time).
Russia wants rouble, yuan, gold in SDR basket
‘”It would be logical for the set of currencies (that make up the SDR) to be expanded, and it could include other currencies, including the rouble, the yuan and perhaps others,” state RIA news agency reported the Kremlin’s senior economic aide Arkady Dvorkovich as saying….
“We could also think about more effective use of gold and gold and forex reserves in this system,” Dvorkovich said, RIA reported.’
http://www.reuters.com/article/idUSLS37648120090328
@frances snoot, The major developing nations, or those which actually lead the world in growth now, share common objectives. How coherent an approach they can coordinate remains to be seen.
What is a “senior economic aide”? Wait until the Russian central bank head or the Russian IMF financial minister has something to say about gold in the sdr basket. Stories are bantered about to create memes such as BRIC. The real power base exists within the currency proprietors. These men decide independently concerning the sdr basket: as they always have.
Zhou, as Chinese central bank head, brought the sdr into the forefront of discussion last March. But he is a mimetic tool of the real power brokers. Zhou has not indicated an inclusion of metals in the basket.
The G20 governing body represents sovereign banks with sdr as their unit of account. I see an extremely coherent approach through this body. Federal Reserve is not acting in the interests of the US people but in the interests of those who have governing (proprietorial) interests in the central bank.
I asked Max who owns the BIS. The men behind the sovereign banks are the power brokers. Sovereign nations are enslaved due to their capitulation to this system of banking governance.
http://www.docstoc.com/docs/25582548/World-Economic-Situation-and-Prospects-2010
World economic situation and prospects 2010 DESA UNCTAD
“A more viable option could be to pursue the transition to a reserve system based on a true form of international liquidity by expanding the orle of the SDR’s. Doing so would, in fact, fulfil the objective included in the IMF Articles of Agreement of “making the special drawing right the principal reserve asset in the international monetary system” (Article VIII, section 7, and Article XXII)
“Global governance should be strengthened on four fronts
To support the enhanced framework for policy coordination, further progress on global
economic governance reforms will need to be made on four related fronts. First, multilat-
eral surveillance by the IMF will need to be extended well beyond the traditional emphasis
on exchange rates, to address broader macrofinancial surveillance and also to monitor
the “sustainable rebalancing” process of the global economy as outlined. Second, more
pervasive progress on governance reform of the IMF will be needed to add legitimacy to
the institution’s enhanced role in this respect and also for mediating multi-annual agree-
ments. Mediation to achieve consensus on the main targets for policy coordination is
unlikely to be successful where doubts exist about the impartiality of the mediator. In this
context, the reform of the governance of and representation in the IMF has become all
the more urgent and important so that seats in the Executive Board and votes in the Fund
better represent developing country interests in the decision-making process that is under
way. Third, while the ongoing crisis has given strong impetus to macroeconomic policy
coordination, there is no guarantee that all parties will remain committed to agreed joint
responses. Having clear and verifiable targets for desired policy outcomes will help make
parties accountable, and the possible loss of reputation through non-compliance should be
an incentive to live up to policy agreements. Fourth, sustainable rebalancing of the global
economy will require close coordination with other areas of global governance, including
those related to development financing and the multilateral trading system, as well as with
the United Nations Framework Convention on Climate Change. No specific mechanism
for such coordination exists at present, and the creation of such a mechanism would need
to be considered.”
http://www.un.org/esa/policy/wess/wesp2010files/wesp10es_en.pdf
The move is toward the international clearing union with the sdr as an “index” (JSMineset)
http://jsmineset.com/2010/02/07/the-bi-polar-moving-bretton-woods-meetings/
The author is ignoring the advancement of sdr as a reserve asset. The index idea is interesting as it plays into Keynes idea concerning the international clearing union. The idea that the sdr will be traded on exchange is ludicrous. But this sounds apt:
“3. The USDX will become redundant.”
“The risk of exchange-rate instability and a hard landing of the dollar could be
reduced by having a global payments and reserve system which is less dependent on one
single national currency. One way in which the system could naturally evolve would be
by becoming a fully multi-currency reserve system. The present system has already more
than one reserve currency, but the other currencies remain a secondary feature in a system
where most reserve assets by far are held in dollars and where most of the world’s trade and
financial transactions are affected in the major reserve currency. The advantage of a multi-
reserve currency arrangement is that it would provide countries with the benefit of diver-
sifying their foreign-exchange reserve assets. However, it would not solve the problems of
the tendency towards the emergence of important global imbalances and the related defla-
tionary bias in the macroeconomic adjustment between deficit and surplus countries.”
http://www.un.org/esa/policy/wess/wesp2010files/wesp10es_en.pdf
A multireserve currency asset is just what Strauss-Kahn promised:
http://abcnews.go.com/Business/wireStory?id=9958995
At a Saturday news conference, the central bank head, Zhou Xiaochuan, said China should be “very cautious” about revaluing its currency, also known as the yuan, as long as major economies remained mired in slow growth.
He called China’s practice of pegging the renminbi to the dollar a “special foreign exchange mechanism” made to respond to the world financial crisis. Such mechanisms will be abandoned “sooner or later,” he said, but “we must be very cautious and discreet in choosing the timing.”
http://www.nytimes.com/2010/03/07/world/asia/07china.html
We are waiting on the words of Zhou?! Screw discreet: my guess is December 2010.
@frances snoot
“Arkady Vladimirovich Dvorkovich (Russian: Аркадий Владимирович Дворкович; born 26 March 1972) is a Russian economist, Assistant to the President of the Russian Federation since 13 May 2008.”
http://en.wikipedia.org/wiki/Arkady_Dvorkovich
http://www.businessweek.com/news/2010-03-05/russia-may-scrap-ruble-for-new-customs-union-currency-update1-.html