Elaine Meinel Supkis
As the dollar dies, OPEC debates what to do next. So far, it is to simply make the price of oil go up. But uncertainty increases as both Iran and Venezuela push to dump the dollar. The British pound is now following the dollar down the slippery slope. The Queen's navy and the USS Even Keel are both sinking, eh? And then there is the business of the FBI seizing the private mint money issued by a man who designed coins for the State of Hawaii. All, because he is suing the Federal Reserve and also issued some very amusing Ron Paul coins.
Foreign tourists to many of India's most famous landmarks will no longer be able to pay the entrance fee in dollars, the government says.
The ruling is aimed at safeguarding tourism revenues following the recent falls in the dollar.
When the Forex markets were first engineered, no one involved imagined it would lead to utter chaos. Of course, throughout history, when an empire is strong and powerful and patrols the Seven Seas with impunity, all currencies are judged relative to the currency issued by the Emperor or Empress. Of course, these empires had to issue currency in a form that had 'intrinsic value.' In other words, for the last 3000 years, this was of several metals. Gold, silver and copper for the most part.
All empires use their fleets and troops to seize and loot and one of the top items they seek restlessly is gold, silver and copper. Using this, they can issue coins which are used to buy luxury items, for the most part. This is because most of the economy until the 1600s was mainly barter. One thing all kings and emperors figured out was, if they controlled the mint, they could debase the coin by mixing the metals with baser metals. Often, it is either zinc or copper. To hide this, they had many laws. These laws still stand.
For example, a merchant could melt the gold coins which separates the minerals and then resell the pure gold with a guild certificate of purity. Holding gold has an overhead cost, of course. Everyone wants to steal it. Including the Emperors and kings hovering nearby. During the Middle Ages, the Church and Islam both forbade charging interest so holding gold brought no wealth. It cost the holder dearly. One had to hire guards and install expensive iron security systems and this is when many forms of locks we see in modern form today, were invented. Before this, people simply buried the gold in hidden places.
Literally, in the ground. Even in the 1600s, pirates continued this tradition. There are many fairy tales of young men or princes going forth with a purse filled with gold ducats only to be robbed on the road or in an inn. Ducats, by the way, were first issued by the Venetians during the Crusades. For money had vanished during the longest depression to hit Europe, the Dark Ages. Ducats were mostly the result of these wars. Gold was looted first from Jerusalem and the surrounding countryside. Then, from the great Empire of Byzantia. This was minted and used as trade tokens.
And what trade was this? Easy: trade with CHINA. One could not buy the fabulous manufactured wares of China unless one paid in gold. For 1,000 years, China slowly accumulated much of the gold in circulation this way. And it was a one-way street which meant, Europe was always having currency problems. The only cure for this was to find gold.
Over the centuries, bankers have discovered many ways of dealing with the contradictory nature of currency versus trade. If someone finds a lot of gold or conquers a kingdom with lots of gold to loot, the currency crisis is eased but this also causes the relative value of gold to drop. In a nutshell, everyone wants more gold but if more gold appears in circulation, the value of the gold in relation to everything else, drops.
Many an Emperor has torn out his hair after expending huge sums of money on armadas and troops only to find the looting expedition is causing the currency to collapse due to too much gold flooding markets. As expenses on the military eats up the budget, he is forced to go to banker/merchants for loans. And to pay for this, the Emperor issues IOUs to these merchants. Who, in turn, use these as...MONEY. For they love to trade things and a writ of promise for future tax revenues has value! Unlike gold, tax money is paid in yearly installments. So if the banker/merchants forward to the Emperor the equivalent of 3 years of taxes and the Emperor then promises to pay them with 4 years of taxes, everyone is happy except for the tax paying public.
But early on, the Emperor of Spain discovered he could keep doing this and he did until he ran up debts based on over 100 years of future taxes! And the foolish Emperor wasted all of this on trying to invade a land that has virtually no gold at all: England. And on top of this, the Armada sank. Within 100 years of this, due to the forward sale of future tax revenues, Spain collapsed as a world power and France replaced them only to fall in to the exact same trap of selling future tax revenues. This led to the King losing his head.
England, the next up at bat as World Ruler tried to avoid these fates. But after defeating Napoleon, England went on a classic looting expedition and the top two holders of world gold that hadn't already been looted by the Spanish was India and China.
Both were looted ruthlessly. But instead of using this loot to build a huge army, the Brits used it to build the first Industrialist capitalist society. And then the eternal problem of how to conduct business while not having to deal with the insecurities and restrictions of using metal coins reared its ugly head. The solution was always to issue gold certificates rather then bonds of joint purpose like the South Sea Bubble bonds. I have a collection of 19th century gold and silver certificates. These were issued by banks that supposedly had the coins stashed in safes that were called 'safes' because they were supposedly secure. Only the banks never bothered to issue these certificates on a one-to-one basis. They always issued as many certificates as they dared.
Periodically, people would suddenly think, a bank was lying about this and would rush the banks to demand their gold or silver certificates be honored. Banks never run out of paper IOUs. Germany showed how their great printing skills could keep up with near-infinite demand. The problem was if people wanted gold or silver.
Today, all the world's currencies operate on the dangerous fiat value method. This works ONLY if the top imperial currency is still connected with gold and silver. But ever since the US, imitating all previous Empires, decided to pay for a lousy war via issuing irresponsible paper IOUs, there is NO CURRENCY ON EARTH that is connected to any tangibles. There are stocks and bonds which are attached to either future tax revenues or people paying back loans. These are very unstable due to the possibility of bankruptcy.
The news that Bündchen, the great-great granddaughter of German immigrants to Brazil back when the rubber plantation boom attracted many Germans, won't accept US dollars anymore due to it losing too much value when it is part of a contract which stipulates payment in the future, so it is with many operations now. The Indian government can't issue daily currency value changes at museums and public monuments! This is very much a reminder of Germany in 1923. The complications of the premier currency dying rapidly is, it destabilizes RELATIONSHIPS. And this is where POWER lies: not in declarations of friendship but in honoring and writing CONTRACTS that spell out financial and business dealings IN THE FUTURE.
We are losing very significant powers here. I would venture to say, our USS Even Keel is keeling over. And I want to keelhaul the idiots causing this.
In comments broadcast on a live television feed from a closed-session meeting of foreign, oil and finance ministers from OPEC countries, al-Faisal said: "We shouldn't mention the dollar because that would only endanger it more and aid its collapse."
So far, the Kings in Araby are clutching the dollars even as they lose value with increasing speed. They have many investments in the US and Britain and desperately want a strong currency regime. Only, like all things to do with wealth, there are contradictory forces at work here. The more the value of their oil rises, the worse the dollar does and the dollars sent to pay for this oil are devalued and buy less and less. This leads to a very vicious cycle with the Kings racing to move dollars faster and faster, into circulation. Only this causes the value of the dollar to drop even faster!
Both Japan and China solved this by simply hoarding dollars. They don't circulate. But this has an upper limit, of course. If the Fed makes dollars appear via the magic of lending themselves money, at a faster and faster rate, these two industrial giants can't keep up. Just this week, the Fed made up another $48 billion even as the House and Senate feud with the White House over the $50 billion emergency funds for the Iraq war. The instant this bill passes, our government will have to sell these to either Saudi Arabia, Japan or China. And all want a maximum interest rates but the US is producing these IOUs at a mad pace and it is now heading rapidly to $10 trillion. This is why the Fed needs to artificially lower the interest rates but at the same time, has to create inflationary money.
So everyone has solved this by lying about inflation. It is obvious that OPEC is edging towards bolting the doors to using US IOUs to transact oil purchases in the future. This is a sign, we are in the danger red zone of handing out more IOUs than 100 years of tax revenues.
And the Emperor of the US has dealt with all this by cutting taxes! The fact that our deficit grows rapidly means that this is just another trick to tap into future taxes while spending today. Totally irresponsible!
The pound declined against 12 of the 16 most-active currencies in the past week. It fell to the weakest against the euro in 4 1/2 years after retail sales unexpectedly dropped, reinforcing the case for lower borrowing costs. The central bank this week forecast economic growth will slow ``sharply'' next year and signaled at least one reduction in the benchmark rate.
``Sterling is likely to remain under pressure against the euro this year,'' said Martin McMahon, a currency strategist at Credit Suisse Group in Zurich. ``The inflation report was on the dovish side, retail sales weren't great, so it's understandable we see markets pricing in rate cuts, even before Christmas.''
This is sheer madness. The Sterling [silver] which is no longer based on silver of any sort, is weak because people aren't shopping? The Sterling is weak because the Bank of England issued billions in IOUs during the last 3 months because of the global banking collapse which is still ongoing. And the Bank of England dropped interest rates below the rate of inflation while inflating the paper currency! And England has a huge government debt. England once had very strict monetary laws and cruelly taxed the people to pay for WWI and WWII but since the US decided to overspend like crazy, Britain tagged along and joyfully did the same. Now, no one wants to balance budgets...EVER. And this is why the pound is being pounded now.
And if they want this to stop, all they have to do is raise interest rates! Ditto, Japan. Of course, Japan is quite content with the lousy yen and indeed, will murder to keep it weak.
Dear Liberty Dollar Supporters:
I sincerely regret to inform you that about 8:00 this morning a dozen FBI and Secret Service agents raided the Liberty Dollar office in Evansville.
For approximately six hours they took all the gold, all the silver, all the platinum and almost two tons of Ron Paul Dollars that where just delivered last Friday. They also took all the files, all the computers and froze our bank accounts.
A number of readers sent me this story. I feel vindicated here. Unlike many web sites that fret about the things I fret about, one thing I will not do for ethical reasons is, suggest buying gold. Like any investment, it is OK to do this and one can make profits doing this. But one must always remember, power grows out of the barrel of a gun. And no one has more guns than the US government. Always, when push comes to shove, the government will revert to earlier piratical origins and loot. All the kings and queens of Europe descended from rampaging horsemen or Viking pirates! I have pirates in my own family tree.
A reader kindly sent me the homepage of this latest victim of state power: Bernard von NotHaus
Welcome to the Liberty Dollar: Remember when gas was only 25-cents a gallon? You could take a dollar down to the gas station and buy four gallons for a buck! At that time our dollar was backed by REAL money, real silver. Guess what? That same amount of silver still buys four gallons of gas! That just shows that real money like gold and silver holds its value and it is the green paper money that is now worth a lot less. As a matter of fact, when you think about it, you realize that gas, food, and almost everything else has NOT gotten more expensive. It only seems that way because the value of the green paper money is worth less and less and so it takes more and more of it to buy the same goods and services. Most people think prices have gone up, but in reality: it is the value of the US dollar that has actually gone down. Luckily, now there is a simple and profitable solution to the coming inflation - good old-fashioned, REAL money as the Founders intended. Look at these charts by the US government.
Gold does not track inflation at all. It can and has shot up much faster than the rate of inflation and it can sit dormant for a decade while inflation shrinks the value of gold. But gold is very much attached to the value of oil! This is thanks to the Arab kingdoms that are still quite Medieval in thinking and prefer to translate sudden flows of paper into gold which they then hoard, not use as a currency. The value of gold is in direct proportion to the stability of empires and the need to hoard it. When gold was stagnating and the price of oil dropped to record lows vis a vis, inflation, the oil kingdoms nearly went bankrupt. But now they are flush with money and pissed off that gold has shot up in price which, to their minds, simply means dollars are worthless. This causes dollars to fall in value because they don't want to hold them, they buy gold!
Baron von NotHaus [that name has to be fake]:
While I was the Mintmaster in Hawaii I pursued a secret project. For over 23 years I worked on developing a value backed paper currency to complement the Mint's gold and silver commemorative business. Not satisfied with just copying the paper money of the Kingdom of Hawaii from the 1800's, I wanted to create a totally new inflation proof currency that met the demands of the free market in precious metals and would represent real gold and silver stored in an independent warehouse. I called my secret project the "Hawaiian Sovereign Currency".
This guy is insane. I hate to clue him in on this, but there is NO currency, paperwork, coinage or system of trading tokens or icons or even barter that is proof against 'inflation.' The rate of production, discovery or looting of gold and silver can alter the relative value of this stuff instantly. On top of this, 'inflation' is due to many forces. For example, if there is a drought and then hail storms and an early winter, the price of wheat and other food products can shoot up 1,000% in a matter of months! This is 'inflation' and has plagued kingdoms and economies from Pharaonic Egypt all the way down to today. Indeed, the only reason gold is becoming more expensive isn't because it is a hedge against inflation but due to it being something people in Asia and the Middle East want in lieu of dollars. If the price of oil falls, this will ease, of course.
In comparison, the rise in value of art painted or carved in the Era of Great European Empires from 1500 to 1900, has risen much more than the value of gold. A painting by a master that sold for $1 million in 1960 sells for $150 million today. All sorts of curious items have risen far faster than gold relative to inflation!
NORFED officials said yesterday that the raid occurred just as they were preparing to mail out the first batch of about 60,000 "Ron Paul Dollars," copper coins sold for $1 and decorated with the craggy visage of Paul, the libertarian Texas congressman, Iraq war opponent and sound-money advocate who has sparked a surprisingly vigorous insurgent campaign for the GOP nomination. The group says that it in recent months it already shipped out about 10,000 in silver Ron Paul dollars that sold for $20.
Bernard von NotHaus, NORFED's founder and executive director, said in an interview from his home in Miami Friday night that his employees in Evansville had received the copper dollars late last week and managed to mail out only about 3,500 of them so far. After a six-hour raid, he said, the agents left with the rest of the coins, which weighed about two tons total, as well as smaller amounts of silver Ron Paul dollars, gold Ron Paul dollars that sell for $1,000 and platinum Ron Paul dollars that sell for $2,000.
This is a good example. Once the Feds removed future Ron Paul gold coins from circulation, the value of the remaining coins shot up much faster than if this guy were content to continue minting them. Scarcity determines value! Also, this smells of political manipulations. This was a political act. The Federal Reserve has no army nor navy but they are servants of the ruling class and these people do not like Ron Paul at all. The approve of his spartan desires but hate these being applied to THEM. His threat to destroy their Franklin Mintenstein Monster, the Federal Reserve, strikes fear in their flinty little hearts. So I bet they pushed forwards with this raid at this point just like they are fearful of the Ed and Elaine Brown defiance going into an election where Ron Paul is promising to debate the Federal Income Tax...well!
This is typical. The state always uses power when they can't persuade.
Here is a good comment from the Washington Post blog:
Private money is Private money - pure and simple - Even ABC's parent company Walt Disney makes it.
If you go to Walt Disney World you can exchange US Dollars for Disney Dollars on 1:1 Ratio
All Walt Disney World® Resort shops and restaurants take Disney Dollars as a form of cash. Disney Dollars are available for a one-to-one exchange for U.S. dollars at the Disney Store nearest your home and at ticket booths, Guest Relations and Resort Guest Services locations at the Walt Disney World Resort.
Mining companies digging for silver, copper and gold as well as coal and other useful minerals, all issued their own currencies which the poor workers had to use in company stores. This early experiment in Stalinism was enforced by US troops brought in to suppress rioting miners fed up with this brutal exploitation. Note that the Fed will piously say, they are protecting us from 'false currencies' even as they do the opposite. Indeed, if the FBI needs to arrest someone or ruining the good name of the dollar, who is diluting the value of the dollar rapidly, they should arrest.....HAHAHA.
We know who should be arrested. The list is damn long, isn't it? Bernanke would have to flee to Brazil. Cheney and Biush, to Paraguay.
The U.S. Mint last year warned that the use of the Liberty Dollar was not legal tender. von NotHaus responded by filing a lawsuit, seeking a declaratory judgment against the U.S. Mint.
The Dalas were introduced at the Pagoda Hotel in August, with Sen. Sam Slom (R, Diamond Head-Hawaii Kai) present. He offered every guest a free $1 Hawaii Dala silver certificate, as well as the chance to get two Dalas for every U.S. dollar.
And here is the other reason. The Fed has a lawsuit against them, eh? So they remove all financial resources from Mr. NotHaus and leave him trembling with fear! Only the internet has caused this to backfire. It is very hard to run intimidation schemes when the net tracks all this. Maybe they will find an excuse to taser him. I would suggest he not ask Kerry about the Skull and Bones or the Bilderbergers.
The Secret Service has jurisdiction over violations involving the counterfeiting of United States obligations and securities. Some of the counterfeited United States obligations and securities commonly investigated by the Secret Service include U.S. currency (to include coins), U.S. Treasury checks, Department of Agriculture food coupons and U.S. postage stamps.
The Secret Service remains committed to the mission of combating counterfeiting by working closely with state and local law enforcement agencies, as well as foreign law enforcement counterparts, to aggressively pursue counterfeiters. The Secret Service maintains a working relationship with the Bureau of Engraving and Printing and the Federal Reserve System to ensure the integrity of the nation's currency. For more information, visit the Know Your Money page on this website.
The late Victorian Presidents started the Secret Service due to assassins but note how, instantly, they used this private guard to protect government-issued IOUs which we call 'money.' Now, with Homeland Security running the show, anyone can do this. Next: Blackwater will storm the homes of holders of gold certificates, guns or coins of value and confiscate them.
Actually, they already did this in New Orleans and are doing this in Iraq.