The Federal Reserve and Money...Aspects which are not widely known

[Tom Nolan + 2,443]

DELIBERATE and INTENTIONAL - It was by DESIGN.  - It is beyond doubt that The Federal Reserve Act (1913) resulted from a group of rich and powerful men who secretly hatched the plan for its eventual enactment.  It is also intentional that the identities of the institutions (and their shareholders) which own the Federal Reserve Banks are kept secret.  Thus, rich and powerful entities have control of the monetary system.  It is a debt-based monetary system...the money supply grows as a result of debt.  A Debt System is slavery.

Edited June 22, 2022 by Tom Nolan

[Tom Nolan + 2,443]

https://corbettreport.substack.com/p/the-controlled-demolition-of-the

https://www.corbettreport.com/the-controlled-demolition-of-the-economy/

The Controlled Demolition of the Economy

by James Corbett
corbettreport.com
June 19, 2022

In case you haven't noticed, the wheels are falling off the global economy right now.

We've all started to feel the pinch of supply chain disruptions and rising energy costs and economic uncertainty and inflation—not to mention stagflation and shrinkflation and deflation—but this past week has really hammered home the extent of the crisis we are facing. It seems every single day brings with it the news of some fresh five-alarm financial fire.

The Dow is sinking. The loonie is falling. Japan is cracking. Global stocks are plunging. Eurozone inflation is spiking. The Fed is hiking. Builders are slashing. Crypto is crashing. Treasuries are tanking.

And that's just this week! As I'm sure you've seen, there have been many, many such stories circulating in the financial press in recent months, all touting similarly bleak numbers.

But it's important to keep in mind that these numbers are just that: numbers. The real question is what these numbers actually mean.

Today, let's answer that question by drilling down on the narrative behind the numbers and discover what that story tells us about the bars of the financial prison that are locking into place around us.

The Confidence Trick

As I have long argued, the global financial system (and the monetary order that system is predicated on) is a confidence trick in the most literal sense of that word. This has always been so in the age of fiat currency—witness, for example, the "full faith and credit" verbiage the US Treasury and others use to describe the dollar's "backing"—but it is especially so in the last couple decades of central bank chicanery.

So, what does it mean to say that the financial system is a confidence trick?

To understand that, you have to go back to the birth of the modern monetary in Bretton Woods, New Hampshire, in 1944. As you'll recall from my podcast episode on Bretton Woods 2.0, the Bretton Woods Agreement required signatory countries to peg their currencies to the US dollar, which itself was convertible to gold bullion at $35/ounce. The idea was that in the post-war era, currencies would once again be backed by gold . . . by way of the dollar.

In short, the entire monetary order was to be based on the world's confidence in the US government's ability to keep its spending in check and not renege on its promise to pay its creditors in gold whenever they asked for it. But don't worry, everyone, Uncle Sam double-dog pinky swore that he wouldn't abuse the exorbitant privilege that comes with being the issuer of the world reserve currency!

Then along came the Cold War and the Korean War and the Vietnam War and the nuclear arms race and the rise of the military-industrial complex and the birth of the cradle-to-grave Great Society nanny state and a concomitant rise in public debt and a negative balance of payments. Some countries began to wonder if maybe—just mayyyyybe—the US government didn't actually have enough gold in its vaults to cover all of its paper promises. But when French President Charles de Gaulle sent the French Navy across the Atlantic to politely ask Uncle Sam to convert France's dollar holdings to gold, President Nixon responded by closing the gold window and formally ending the Bretton Woods system.

From that point on, no one could pretend that the monetary order was anything but a confidence trick. In the floating exchange rate system that developed in the wake of Bretton Woods' destruction, fiat currency is measured against fiat currency in a house of cards that only remains standing because—like the deluded subjects of the emperor in Hans Christian Andersen's fairy tale—people have been taught not to ask whether Emperor Dollar is really wearing any clothes.

It's no surprise, then, that the post-Bretton Woods era has been defined by a series of increasingly brazen attempts by the financial elite to cash in on the public's gullibility.

There was Kissinger's brokering of the petrodollar system, by which the Saudis price oil in dollars and launder those dollars back through the American financial system.

There was the Black Monday stock market crash of 1987, which led to the creation of the Plunge Protection Team, a group of high-ranking banksters and government officials that admittedly works to rig the stock market at the behest of the oligarchs.

And there was Greenspan's housing bubble in the early 2000s, which led to the Global Financial Crisis of 2008 and which was in turn papered over with a "jobless recovery" and the normalization of central bank intervention in the markets.

And now here we are at the end of the Longest Bull Run in History!!! (What Could Go Wrong???) with the wage slaves still being asked to Worship the Stock Market and pretend that it isn't commonly understood that The Markets Are Manipulated, that The Financial Press Now Admits the Markets are a Sham and that The Central Banks Have Engineered This Collapse.

. . . But the tide of the last 80 years of monetary history is turning. People are finally waking up to the fact that the emperor is indeed naked, and many are finally questioning their confidence in the system that the central bankers have created.

The (Engineered) Crisis of Confidence

 

That the entire economic order is one giant confidence game will come as no surprise to my regular readers or anyone else who has been paying attention to such matters. What is surprising is that the mainstream financial press aren't even attempting to hide this fact anymore.

The Bezos Post frames its coverage of the inflation crisis as a matter of the public "losing faith" in the Fed. Famed billionaire investor Bill Ackman is calling for aggressive Fed rate hikes to "restore confidence" in the markets. Even Fed chair Jerome Powell admits that what's concerning to the banksters isn't price inflation itself, but people's belief in the system, noting that the "really critical question" is "making sure that the public does have confidence that we have the tools" to fight inflation.

Indeed, by this point no one can deny that the faith which sustained the global economic con game for so long is faltering. When the financial order was putting food on their families' table, few were inclined to question the status quo. Now that the cost of putting food on their table is skyrocketing, many have no choice but to question that status quo.

While this loss of confidence may or may not be surprising to Jerome Powell or the other mid-level functionaries of the con game, it is certainly not surprising to the string-pullers at the Bank for International Settlements—the central bank of central banks identified as the apex of financial control by Carroll Quigley in Tragedy & Hope—who have been "warning" of the inevitable result of this central bank-driven QE madness time and time again for years.

It would be the height of naïveté, however, to believe that the people at the very top of the pyramid of economic power could foresee the collapse of this system and yet do nothing to prepare for it. In truth, of course, the BIS and the other financial elite are not sitting on their hands wondering what to do about this crisis of confidence. Quite the contrary. They are egging it on.

The various "failures" we're seeing in the markets right now are not mere happenstance; they are problems that are either being created or worsened by deliberate action.

Inflation isn't coming out of nowhere. It is the perfectly predictable result of central bank interventions.

The supply chain is not "breaking down" for no particular reason. It has been shut down by government decree.

Food prices aren't rising because farmers are suddenly choosing to ask for more money. They're rising because governments are carefully crafting the conditions for a food apocalypse.

No, what we are experiencing is not a spontaneous economic collapse; it is the controlled demolition of the economy.

But why? What reason would the powers-that-shouldn't-be have for destroying the very confidence game that they've been running for the better part of a century?

Problem Reaction Solution

That the financial elitists who have worked so assiduously to build up a world order would then turn around and contribute to the destruction of that order is only puzzling if we think they are planning on continuing the current status quo forever. But they are not. So they can clear the way for the new economic world order, they must first destroy the old one.

Imagine that you signed a 99-year lease on some prime Lower Manhattan office towers. Now imagine that those towers were consistently underoccupied and were going to require $200 million of asbestos removal in order to bring them up to code. Finally, let's also imagine that you had the foresight to make sure your insurance explicitly included the right to rebuild anything you want on that land in the unlikely event of the towers' complete destruction. In such a scenario, you might just make the calculation that it's in your interest to destroy the towers yourself and blame the act on some Muslim bogeymen. You know, hypothetically speaking.

Similarly, if you were in a position of power over the global monetary order and you wanted to completely rebuild that order from the ground up to give you and your cronies complete control over every transaction taking place on the face of the planet, then there may come a time when you calculate that it's in your interest to begin a controlled demolition of the economy.

Not being part of that financial elite, I obviously can't say for certain whether or not that determination has been made. I don't know how much time we have before the current order collapses altogether or whether the controlled demolition of the economy has even started in earnest yet. After all, back during the Lehman collapse of 2008 I could hardly have conceived that the central banksters were going to be able to kick the can down the road for several more years with quantitative easing and negative interest rates and other transparent financial charlatanry. It's certainly possible that the con men who have been running this con game for so many decades have a few more tricks up their sleeves to keep the zombie economy limping along for some time.

But what I do know—because I covered it here in these pages just last month—is that just about every single central bank in the world is now actively pursuing the implementation of a Central Bank Digital Currency (CBDC). I know that by the end of the decade—if not much sooner—we are going to see country after country adopting and foisting retail CBDCs on their citizens with the intent of tracking every transaction in the economy in real time. Finally, I know that an altogether new monetary instrument is unlikely to be adopted by the public absent some compelling reason, like a hyperinflationary crisis in the old monetary instrument.

Putting all of these facts together, it stands to reason that the financial order we have known our whole lives is slated for destruction and its days are numbered. It is in the light of this knowledge that I believe we should be interpreting the current economic crisis.

It's important to understand how nicely the pieces of the broader political/geopolitical/social/financial puzzle fit together and how all of the events of the last two years bring those pieces together. The biosecurity rollout necessitates the vaccine passports. The vaccine passports introduce the digital ID. The digital ID provides the infrastructure for the CBDCs. The CBDCs provide a mechanism for enforcement of a social credit system (and/or a carbon credit system). To see these events as separate events unfolding haphazardly and coincidentally is to miss the entire point. The demolition of the economy is just an excuse for the implementation of the next stage of the agenda, just as COVID-19 was an excuse for this stage of the agenda.

In short, the all-out economic assault being waged on the free peoples of the world right now is just another battlefield in the all-encompassing fifth-generation war we find ourselves fighting against the global elitists.

And, just as I noted in my recent Guide to Fifth-Generation Warfare, our ability to defend ourselves from this assault (let alone win the battle) is dependent upon knowing that we are in a war at all. We must be able to lay the cards out on the table for our friends and family as clearly as possible: The economy is being destroyed on purpose. It is being done by the same con men who created the very system that's being destroyed. And it is being done to consolidate complete control over the economy, right down to our ability to buy and sell.

In effect, we're standing at Ground Zero of the global economy watching the squibs going off in the Twin Towers of the global financial system. We can either stand here, mesmerized by the pyrotechnics of the explosions, or we can fall back, regroup and take the necessary steps to lessen our dependence on this collapsing system and to expand and reinforce the counter-economy that will be our only lifeline as the bars of the new economic prison are closing in around us.

Whatever the case, make your choice quickly. There is little time left for deliberation.

This weekly editorial is part of The Corbett Report Subscriber Newsletter

Century of Enslavement: The History of The Federal Reserve

VIDEO -   https://odysee.com/@corbettreport:0/century-of-enslavement-the-history-of:9

TRANSCRIPT AND RESOURCES: http://www.corbettreport.com/federalreserve

Edited June 22, 2022 by Tom Nolan

[Tom Nolan + 2,443]

Don't people know that inflation is caused by too much money printing?  But get a load of this headline...it is stupidity on steroids.

Biden Economic Adviser Asserts That More Government Spending Will Solve Inflation Crisis

https://www.zerohedge.com/economics/biden-economic-adviser-asserts-more-government-spending-will-solve-inflation-crisis

EXCERPT

One of the main reasons for this inflation is due to government spending and massive Federal Reserve stimulus created from thin air.

The US national debt when Barack Obama and Joe Biden entered office in 2008 was around $10 trillion.  By the time Obama and Biden left in 2016, the national debt had doubled to $20 trillion.  That's a 100% increase in only 8 years.  Since 2016 the national debt has expanded to around $30 trillion.  The Federal Reserve created over $6 trillion in a single year in 2020 to supply the government with currency for covid checks and PPP loans during the lockdowns.   To be sure, the Federal Reserve is happy to continue destroying the dollar, but exponential government spending gives them the excuse to do it.

This is not even counting the spending required for long term government programs such as medicare and social security.   And yes, programs like Social Security DO add to US debt and the Federal deficit and anyone that tells you otherwise is lying.  Just because something is “off budget” does not mean it's not adding debt.

In March, Nancy Pelosi made a bizarre claim that in order to deal with inflation and bring down the national debt America need MORE spending, not less.  Of course, anyone with a brain and a mediocre knowledge of fiscal responsibility knows that the national debt has little to do with inflation directly, and government spending always creates more national debt and inflation when it relies on fiat money printing from a central bank, which the US government does.  One might write off Pelosi as a complete moron and they would be right to do so, but politicians like Pelosi do not make these kinds of statements in a vacuum.

Biden, Pelosi and other politicians rely on economic advisers and gatekeepers to write their talking points for them, and the narrative that government spending is a “good thing” that will eventually stop inflation is part of a much larger concerted propaganda effort; it is not just the ramblings of senile government hacks.

As we have seen recently from Biden's advisers, the all encompassing narrative is in support of massive spending as the magic talisman to ward off collapse.  In other words, the claim is that we can print our way to prosperity

 

[Boat + 1,323]

How about a country has to much gas, oil, corn and wheat so we help fuel and feed the world for money. But Europe farts, commodities are interrupted and the exporters pay the price? It’s those oligarchs I say. It’s those politicians I say.  Our system lacks any kind of reasonable fairness to a country that sells to others. Hell, stop all the exports. Feed the citizen, Cheap fuel for us. Or maybe give the producers a fair price and don’t bankrupt anybody or make anyone unfairly rich. The world of commerce/politics is led by dumbasses. The world of humans should strive for fairness and stability. Our idiots can’t seem to get it done. 

[Tom Nolan + 2,443]

IMAGE LINK  - https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/nomura rate cuts forecast.jpg?itok=NyKMaAIP

Futures Surge To Two Week High As Traders Eye End Of Fed's Hiking Cycle

by Tyler Durden

Friday, Jun 24, 2022 - 06:53 AM

Futures are pointing to solid close to the week - now that a recession and earlier rate cuts are assured...

.... with a continuation of the rally which has pushed stocks to two week highs, with Tech continuing to lead while Chinese Tech is helping to fuel the global risk-on rally to end the week. Tech-heavy Nasdaq 100 futures added 1% while contracts on the S&P 500 gained 0.9%, trading near session highs  at 3,833 after the main US stock gauge closed near session highs Thursday, adding more than 3% in three days. In Europe, the Stoxx Europe 600 rose 1.5%, with the benchmark set for a small bounce this week. 10-year Treasury yields rose to 3.13% after earlier sliding as low as 3.04%.

 

ARTICLE CONTINUES  - https://www.zerohedge.com/markets/futures-surge-two-weeks-highs-traders-eye-end-feds-hiking-cycle

[Tom Nolan + 2,443]

[specinho + 467]

there was an ancient game called 'passing the words'...........

century or decades of how many hands have been changed............. The initial intention might no longer be accurately conveyed......?

[SUZNV + 1,197]

On 6/15/2022 at 7:01 AM, Tom Nolan said:

Most people do not realize that The Federal Reserve Banks are owned by private institutions within their district.  The public is not allowed to know who the owners are.  https://www.federalreserve.gov/aboutthefed/structure-federal-reserve-banks.htm

Most people do not realize that The Federal Reserve was initially created by a secret cabal of rich elite via deceptive maneuvers.  The group gathered secretly on November 22, 1910, then hatched their plan.  During the Christmas season of 1913 after wading through the House and Senate, the Federal Reserve Act (known then as the Currency Bill) was signed into law on December 23rd.  Insidious in its nature, the Federal Reserve Banking system is a debt-based monetary system. which in itself is a mechanism of slavery. 

(The IRS) - The Federal Income Tax was also enacted in 1913.

-- Commercial Banks --

Banks don’t lend reserves. Banks create money out of thin air every time they make a new loan: they credit your bank account with money that never existed. They don’t use reserves in the process.

 

When you withdraw cash from an ATM you are converting your digital bank deposits into bills, which is transforming an existing form of real-economy money (your bank deposit) into another form of real-economy money (cash).

 

  Reserves are basically money for the commercial banking system.

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Wednesday June 15th - 2pm ET  - The world will see what happens with interest rates by The Fed.

The Federal Open Market Committee (FOMC), a committee within the Federal Reserve System, is charged under United States law with overseeing the nation's open market operations. This Federal Reserve committee makes key decisions about interest rates and the growth of the United States money supply.

 

-  June 2022 - The Federal Reserve started (QT2) Quantitative TIGHTENING on June 1 .

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 

(QE) Quantitative Easing Explained by Alfonso Peccatiello who once was involved with the process.

 

  The True Reason Why Central Banks Do QE  https://themacrocompass.substack.com/p/portfolio-rebalancing-qe?s=r#details

EXCERPT

Pelley: “Where does it come from? Do you just print it?”
Powell: “We print it digitally. So as a Central Bank, we have the ability to create money digitally.’’.

Jerome Powell - ‘‘60 Minutes’’ interview, May 2020

In a famous interview released on May 2020, Jerome Powell stated Central Banks can print money in digital format.
And he is right, they indeed do that when they embark in policies such as QE.

But he forgot to mention that what they print is bank reserves, which is money only for commercial banks and not for us common people.
And that these bank reserves don’t have legal tender, they can’t be used to transact in the real economy and most importantly they never reach the private sector.
Never....

A LIST of LINKS to various documentaries, videos and articles concerning MONEY and the ECONOMY - Scroll to the last 10 paragraphs of the article:  https://www.minds.com/CorbettReport/blog/your-guide-to-the-new-economy-1309334974591143949

https://www.corbettreport.com/federalreserve/

 

 

All is true, except Fed is not a global central bank. Most of the bank reserves only within the US. Most US treasuries are on demand because of they are  rehypothecation collaterals of the Euro Dollar ledger system debt bubble from banks outside of US and in regards to this, FED is only a cheer leader in a decentralized world. Fed even had to invent SWAP to try to push US bank reserve to try to save foreign institutions in GFC 2008 because USD can only get out via US import or treasuries yield. 

Both the SWIFT system and Eurodollar system originated in Western Europe, yet somehow EU people blame US for the GFC 2008 while the visible  sub mortgages part was inside US only while the real cause of that is because of the ignored Euro dollar system.

The problem of the US banking  is the commercial bank can both print and invest. Glass–Steagall, which prevent this,  was repealed by Clinton and bi partisan Congress in 1998 by Financial Services Modernization Act of 1999. This is the main cause of the internal US sub mortgage loan which indirectly, unintentionally  blew up Euro dollar system and caused GFC.

The great reset is all about how to deflate Euro dollar bubble and reset without WW3 and it annually meeting is in...Davos, Europe.  

You have half a loaf of bread, you still have bread. But if you only know half of the truth, then you don't know the whole story. US FED is not responsible for the Eurodollar system although US Gov indirectly benefit from it to have the ability to have that negative balance and  the arrogant Modern Monetary Theory. It will somehow end but don't know when and how much pain for the US people to endure. In short, EU bankers and politicians have a tendency to  corrupt the US counter part,  yet blaming US or their people who footed the bills in the future. Another version of conspiracy theory (Western) compares to the  Eastern conspiracy theory about US Fed. 

[Tom Nolan + 2,443]

2 hours ago, SUZNV said:

except Fed is not a global central bank

SUZNV, There is much more data that is not included, but everyone knows that the international currency which is used for oil is in dollars.  The Dollar is the dominant world currency.  Watch "How and Why Big Oil Conquered the World". 

https://www.financialsense.com/contributors/jerry-robinson/the-rise-of-the-petrodollar-system-dollars-for-oil

EXCERPTS...

The Rise of the Petrodollar System

The petrodollar system originated in the early 1970s in the wake of the Bretton Woods collapse.

President Richard M. Nixon and his globalist sidekick, Secretary of State, Henry Kissinger, knew that their destruction of the international gold standard under the Bretton Woods arrangement would cause a decline in the artificial global demand of the U.S. dollar. Maintaining this "artificial dollar demand" was vital if the United States were to continue expanding its "welfare and warfare" spending.

In a series of meetings, the United States — represented by then U.S. Secretary of State Henry Kissinger — and the Saudi royal family made a powerful agreement.

According to the agreement, the United States would offer military protection for Saudi Arabia’s oil fields. The U.S. also agreed to provide the Saudis with weapons, and perhaps most importantly, guaranteed protection from Israel.

The Saudi royal family knew a good deal when they saw one. They were more than happy to accept American weapons and a U.S. guarantee to restrain attacks from neighboring Israel.

Naturally, the Saudis wondered how much was all of this U.S. military muscle was going to cost…

What exactly did the United States want in exchange for their weapons and military protection?

The Americans laid out their terms. They were simple, and two-fold.

1. The Saudis must agree to price all of their oil sales in U.S. dollars only. (In other words, the Saudis were to refuse all other currencies, except the U.S. dollar, as payment for their oil exports.)
2. The Saudis would be open to investing their surplus oil proceeds in U.S. debt securities.

 

[Tom Nolan + 2,443]

'bank of central bankers' - Bank for International Settlements

EXCERPT...

The crash course for those who don't know about the BIS: It was founded in 1930 as an outgrowth of Rockefeller Trustee Owen D. Young's so-called "Young Plan" to chain German payments for the unpayable WWI reparations scam to a consortium of financiers led by J.P. Morgan. It is located in Basel, Switzerland, but is above Swiss law by terms of a treaty that makes the bank "inviolable" and free from search, seizure or interference in any way by Swiss authorities. And it was identified as the apex of a global system of oligarchical control in a shockingly frank passage by Georgetown historian (and Clinton mentor) Carroll Quigley in Tragedy and Hope:

"The Power of financial capitalism had a far reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks, which were themselves private corporations."

https://www.corbettreport.com/how-the-banksters-play-good-cop-bad-cop/

[Tom Nolan + 2,443]

https://www.corbettreport.com/the-second-most-important-bank-youve-never-heard-of/

https://www.minds.com/CorbettReport/blog/the-second-most-important-bank-you-ve-never-heard-of-1181240989692674048

 

The (Second) Most Important Bank You've Never Heard Of

by James Corbett
TheInternationalForecaster.com
April 17, 2016

What is the most important bank the public has never heard of?

My fine audience excepted, not one in a hundred people could name the Bank for International Settlements as the culprit, and fewer still could describe the BIS' role as "the apex of the system" of world financial control (as Carroll Quigley so memorably put it).

But what about the second most powerful bank? How many people would even be able to venture a guess as to the identity of that institution? If they were told that its acronym was "GEF," how many people would even know what that stands for?

It's like something out of a comic book.

Picture, if you will, a group of the wealthiest, most powerful villains the world has ever seen meeting in a secret bunker in an undisclosed location. A hush descends on the room as the proceedings begin, and the assembled super-fiends discuss how best to enact their plan for world domination. It is obvious what must be done, but not so obvious how to achieve it.

One of the evil cabal's henchmen rises to speak:

"I suggest therefore that this be sold not through a democratic process - that would take too long and devour far too much of the funds - to educate the cannon fodder, unfortunately, that populates the earth. We have to take almost an elitist program, [so] that we can see beyond our swollen bellies, and look to the future in time frames and in results which are not easily understood, or which can be, with intellectual honesty, be reduced down to some kind of simplistic definition."

Then the head villain, old and soft-spoken but with a gravitas that makes the others tremble, speaks. In his quiet and deliberate way he lays out a plan for world domination: The takeover of one-third of the earth's surface. The creation of a global military force to maintain that control. And a bank to oversee the whole process.

Edmund De Rothschild, Ex-Chairman N M Rothschild and Son and "environmentalist"

Sound too cartoonish? Well, it really happened. Only it wasn't a secret bunker in an undisclosed location, but the 4th World Wilderness Congress that took place in Denver, Colorado, in 1987. The evil henchmen was David Lang, a banker from Montreal. The head villain was Edmund de Rothschild. He was introduced by none other than the ubiquitous super-gopher / Rockefeller protege / "environmentalist" Maurice Strong. Also in attendance at the meeting: David Rockefeller himself, Secretary of State James A. Baker, international banker and Rothschild associate Michael Sweatman, and a host of World Bank members, foreign bankers and international delegates who all converged on Colorado for the strangest "wilderness" conference ever assembled. And we are only fortunate enough to know about this meeting because of an extraordinarily unlikely series of accidents that happened to put the right man in the right place at the right time to observe, record and report on it.

That man was George Hunt. He was a businessman in Boulder, Colorado, who had been watching public broadcasting one evening in 1987 when he saw an announcement for the "4th World Wilderness Congress" in Denver later that year. The announcement displayed images of wildlife in the Arctic and, his son having told him the week before that he was interested in going to the Arctic, Hunt decided to attend the conference to "rub shoulders with the forest rangers" and see if he could procure his son a job. Upon inquiry, however, he discovered that the cost to attend the conference was much higher than he had expected, and so, rather than purchasing a ticket, he volunteered to help with the conference. As luck would have it, one of the volunteers had become quite sick and would be unable to attend, so Hunt took his place and gained behind the scenes access to the proceedings.

Hunt was, needless to say, blown away by the guest list. This was no mere forest ranger get together, and the agenda was not idle talk about saving the reindeer. Instead, Hunt encountered a who's who of world finance discussing the creation of a new "World Conservation Bank" that would direct funds from governmental, intergovernmental, public, private, charitable and individual sources for the "conservation of wilderness areas."

At the World Wilderness Conference, Hunt was able to record Edmund de Rothschild describing the World Conservation Bank idea in the most glowing terms:

"This International Conservation Bank must know no frontiers, no boundaries. Its funds must be used constructively – and not, and not to be channeled into greedy hands or weapons of destruction. I hesitate to link this bank with World Wilderness; but I would like to link it with our survival, as a human race. This, our generation, must not be cursed by our descendants – if we have any – as to the greatest destructors and squanderers of the world’s resources."

Or, that was how they were planning to sell the idea to the unwashed masses, anyway. But perhaps unsurprisingly, the banksters were planning something much more sinister: using concern over environmental degradation as a cover behind which they could erect a new financial institution: A bank that can direct the mind-boggling amounts of money (and property) that are being transferred in this, the first round of the coming technocratic revolution.

The idea for an International Conservation Bank had been around for some time by the time of the 4th World Wilderness Congress. It was discussed within the World Bank. It was kicked around Washington NGOs. It was fostered by family foundations and governmental agencies like the Canadian International Development Agency (CIDA). Finally, France put forward a formal proposal for such a bank at a joint ministerial meeting of the IMF in 1989. The project was put under the umbrella of the World Bank and by 1991 the World Conservation Bank was formally established.

It calls itself the Global Environmental Facility (GEF), and it has so far made over $14.5 billion in grants and co-financed a further $75.4 billion. It is the funding mechanism for five different UN conventions, including the United Nations Framework Convention on Climate Change, which itself established the IPCC.

The bank's slick promotional videos highlight a number of projects it has helped fund in various impoverished nations: the construction of drainage trenches to prevent glacial lake flooding in Bhutan; the establishment of "protected areas" and economic development in Mali's wildlife areas; and the funding of Chinese companies producing solar cells and wind farm technology.

Supremely bizarre group chanting videos aside, the whole operation sounds pure as the driven snow, right? Not so fast.

According to the GEF's website, the facility "was established on the eve of the 1992 Rio Earth Summit, to help tackle our planet’s most pressing environmental problems." It has 18 "implementing partners" including the Rockefeller-funded Food and Agricultural Organization, the foundation-funded and corporate-friendly International Union for the Conservation of Nature, the Maurice Strong-created United Nations Environment Programme, and the Prince Bernhard / Prince Philip-founded World Wildlife Fund.

If such a pedigree immediately casts doubt on the altruistic intentions of the bank, one is right to be skeptical. In reality, the GEF and its affiliated environmental finance organizations have an ulterior motive: using the debt chains sown by the World Bank and IMF on impoverished third world nations as leverage to gain control over vast swathes of these countries' lands and resources, and funnel money to the banksters' corporate cronies.

Sound far-fetched? The practice is fully admitted to, well-documented, and even has a catchy name: debt-for-nature swaps.

The GEF's own documents describe debt-for-nature swaps this way:

"Debt-for-nature swaps are voluntary transactions in which a portion of a developing country’s hard-currency debt is canceled or reduced by a creditor. In exchange, the debtor agrees to allocate a portion of its cancelled debt in local currency to environmental programs or projects. Initially, most were private swaps in which international environmental NGOs raised the funds and initiated the process. In recent years, many swaps have been bilateral, where both the creditor and debtor are governments. Other creditors can include commercial banks or commercial firms owed money by governments of developing countries."

Although it is generally touted as a win-win for debtor nations (with debt relief for the debtor and environmental protections that benefit the globe), the debt-for-nature scheme always comes with strings attached: the ceding of certain land for environmental "development," for example, or the imposition of certain regulations and restrictions on a country's existing industries.

As the Convention on Biological Diversity admits, the scheme usually comes with hefty transaction costs of between 1.5 and 5% of the face value of the debt itself. And the big winners of these projects are generally the ones contracted to do them, manage them, or direct the investments, not the locals who, like the aborigines of Palawan island, are kicked off their land and effectively wiped off the face of the map.

Although it sounds scarcely believable, the debt-for-nature swap proposal had been kicking around since it was first suggested by Thomas Lovejoy of the World Wildlife Fund in 1984. It was first used in Bolivia in 1987 and by 1991 the journal of the American Bar Association, The International Lawyer, was publishing articles about the concept. By 1998 it had been hardwired into US law through the Tropical Forest Conservation Act, which has so far facilitated $223 million in debt-for-nature deals with 14 different countries.

Never heard of the GEF, or debt-for-nature swaps, or the proceedings of the 4th Wilderness Congress?

Of course you haven't.

The powers-that-shouldn't-be have decided it's better for their scheme if you don't.

After all, as David Lang was so quick to remind us at the 4^th World Wilderness Congress, we're just the cannon fodder that unfortunately populates the earth.

But at least now you know what to answer when someone asks you what the second most powerful bank is.

Edited June 28, 2022 by Tom Nolan

[SUZNV + 1,197]

7 hours ago, Tom Nolan said:

SUZNV, There is much more data that is not included, but everyone knows that the international currency which is used for oil is in dollars.  The Dollar is the dominant world currency.  Watch "How and Why Big Oil Conquered the World". 

https://www.financialsense.com/contributors/jerry-robinson/the-rise-of-the-petrodollar-system-dollars-for-oil

EXCERPTS...

The Rise of the Petrodollar System

The petrodollar system originated in the early 1970s in the wake of the Bretton Woods collapse.

President Richard M. Nixon and his globalist sidekick, Secretary of State, Henry Kissinger, knew that their destruction of the international gold standard under the Bretton Woods arrangement would cause a decline in the artificial global demand of the U.S. dollar. Maintaining this "artificial dollar demand" was vital if the United States were to continue expanding its "welfare and warfare" spending.

In a series of meetings, the United States — represented by then U.S. Secretary of State Henry Kissinger — and the Saudi royal family made a powerful agreement.

According to the agreement, the United States would offer military protection for Saudi Arabia’s oil fields. The U.S. also agreed to provide the Saudis with weapons, and perhaps most importantly, guaranteed protection from Israel.

The Saudi royal family knew a good deal when they saw one. They were more than happy to accept American weapons and a U.S. guarantee to restrain attacks from neighboring Israel.

Naturally, the Saudis wondered how much was all of this U.S. military muscle was going to cost…

What exactly did the United States want in exchange for their weapons and military protection?

The Americans laid out their terms. They were simple, and two-fold.

1. The Saudis must agree to price all of their oil sales in U.S. dollars only. (In other words, the Saudis were to refuse all other currencies, except the U.S. dollar, as payment for their oil exports.)
2. The Saudis would be open to investing their surplus oil proceeds in U.S. debt securities.

 

Tom,

This is the Eastern Bloc popular conspiracy theory part I was talking about in the previous post: The Petrol Dollar system, surprisingly most US people believe in it, or even take proud of it, the same way they believe in the fractional banking system instead of money printing from loan, as if we are still in gold standard era.

Bretton Wood  system failed long before Nixon Era, especially when many US allies, France in particular demand gold delivery. This is basically the bank run to the US. No hard global reserve currency can survive because of Triffin's Dilemma. USD was banned to reclaim to gold long before Nixon.  The Western people wouldn't to have current living standard if we do fractional reserve with gold. Gold standard cannot survive any bank run and a bank run in a bad bank would lead to the bank run of every others good one. No bank can survive bank run in fractional banking, especially in gold standard. Liquidity is the most important factor in transaction, and that was how the bankers club in Western Europe invent Euro Dollar Ledger system after Bretton Wood, which  consequently lead to US gold run in 1960s. 

Petrol Dollar was a popular myth that everyone was encouraged to believe in. There existed a Eurodollar ledger system, a club of foreign banks, outside of the US that have everything priced in USD already. There always a need of a unit of measurement in a global system and USD was a natural choice back then. You can pay in Yuan, in Gold , in Euro as long as the price is nominal in USD and the supplier accept to receive that currency, and in most case, they actively convert it back to USD or US treasury in the long run, or buying US assets.  In the FIAT world, USD and US treasuries is the most prestige, back by military, technology, trade routes, natural resources and the only top super power didn't have an active war to the new riser.

US treasuries is the collateral of this Euro Dollar Ledger Clubs. US treasuries is the collateral of this Euro Dollar Ledger Clubs. The Euro dollar debt bubble is much much larger than US Government debt and US Government is responsible for US debt only. The Lehman Brothers, Bear Stearns  etc. was a victim of over leverage and got a bank run from other Eurodollar club members asking for delivering US treasuries. 

Don't believe me, do research about the need of why Basel Accords was invented and enhanced with version 2, and recently Basel 3. This is the attempt to regulate the risk of aggressive lending of global institution outside of USA, completely out of control of Federal or US Government.  And because of the size of this debt bubble, as we know USD printing outside of the US, most institution encourage believe that Fed has some sort of super power outside of the US. Because in this Fiat world, the believe in Fed will make Fed's tool hopefully more efficient (Before the Volker myth, Fed was a joke, now Fed is the cheerleader). No one know how big is the Euro dollar bubble, even among Euro dollar institutions, as they only have their ledger who owns them and who they owed, no more, no less. Secondly they need some one be blamed for their greed and who is better than the one created US inside US, and with bank reserve.

Because money printing is from loaning out, this means the world living standard, especially the living standard  we enjoyed in the Western World, half of it came from the globalization that can make thing cheaper to push investment in complicated technologies with a cheap price which enhance productivity. The other half is from borrowing from the future resources and generation. 

The first half is good, the second will need to be paid back somehow.  Unlike in Europe, US tradition embrace individualism is heavily against socialism/communism, more religious in Christianity compare to most of Europe Countries. After WW1, US did go back to isolation (compares to Europe) until Japan dragged it to WW2 with Pearl harbor and US was trapped into the global until now, funded by US taxes in the past and future, will be somehow paid of by US future generation unless a massive default. 

Strategy to de globalization is easy, and most Trump's voters don't like globalization as he is the only US president since the end of Cold War heads toward this direction, but will have the following consequence:

-Western countries cannot sustain  current living standards, including health care and retirement savings when a large part of them went into retirements aka very less consumption to boost the economy, aka deflation, less tax for Gov while Gov are heavy in debt and cannot do much Keynesian economics via ESG (Developing countries don't have the welfare trap and most of the population was not that old yet, but most (former) Communism countries somehow aging really fast, this is why China trying to move up to a consumption system ). Aging countries need the youngster to consume. 

-EU will need to pay for their own defense system fully. Remember the purpose of NATO)? Keep the Russians out, The US in and the Germans down (I quote Peter Zehan). Why should the US in after the Soviet Union collapse and why need to keep Germans down when they are the largest globalism nest and have a good relationship with both France and Russia (pre Ukraine war). Why US people need to foot this bill?

-Everything will be really expensive after deglobalization. How do we reverse money money printing? Just practice stoicism, becomes minimalist and pay back all of the debt (mortgage, credit cards). Accept the life style of a stagnation or deflation. Forcing the Gov to pay back their debt too, shirking public sector and encourage competition among healthcare, education providers without government support, not more spending, risking the economy collapse and losing what ever you have if you didn't pay in time. I bet it will reduce lots of CO2 emission. No pain no gain. Maybe another form of own nothing and be happy but more freedom.

Zoo keepers made a very comfort debt zoo out of future taxes and suck the resources out the wild animal out of the cage, make them suffer and want to get inside the cages, voluntarily. Their tools are spreading greed, fear, hate, laziness and promises, all you need to do the reverse. The only catch is whenever the animal get in, it will be very hard to get out  and zoo keepers can afford pick and choose. And it is kind of not fair for young animals who were born in a cage, they didn't have a chance to experiment the outside world before making decision.  Guess where are we now in this circuit : “Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times.”. 

History keeps repeating itself. Some generations risk their lives for freedom and their offspring risk freedom for good lives.  Maybe now I enjoy life in the cage but will always vote for freedom.

Edited June 28, 2022 by SUZNV

[Tom Nolan + 2,443]

Zeitgeist - The Movie (2007 June 1st)

This film gathers information from many sources and puts it together in a way that shows it is possible for people to be manipulated by large institutions, governments and economic powers. It is divided into 3 parts.

QUEUED to Part 2 https://youtu.be/LPhANpsR1gM?t=2344

2. 9/11: An overview of the numerous questionable aspects of this immensely important event.

3. The Federal Reserve Bank: A history of its formation and ability to control the economy. With many news clips from tragic events in history, audio excerpts from those who believe people are being misled about the level of freedom they have.

[Tom Nolan + 2,443]

 

[Tom Nolan + 2,443]

https://www.zerohedge.com/markets/fed-quietly-handing-out-250-million-handful-happy-recipients-every-single-day

The Fed Is Quietly Handing Out $250 Million To A Handful Of Happy Recipients Every Single Day

by Tyler Durden

Thursday, Jun 30, 2022 - 04:30 PM

The Fed's QE may be over, and QT may be just starting (it won't last long), but don't think the Fed free money giveaway is ending any time soon. In fact, for a handful of happy, mostly anonymous counterparties, the real free-money bonanza has just begun!

Case in point: the Fed's reverse repo facility. While one can debate for hours why there is a record $2.330 trillion in cash parked at the Fed's overnight facility and what it means for systemic plumbing problems, the fact is that there is a record $2.33 trillion in cash parked at the Fed's overnight facility, doing nothing.

Well not nothing: it was nothing when rates were zero, but at 1.55% which is the current rate, that $2.33 trillion is a golden goose for the 108 counterparties that were parking cash at the facility, a mixture of money market funds, banks, GSEs and various other financial intermediaries.

How big of a Golden Goose? The chart below shows the payment in interest that the Fed makes day on this record $2.33 trillion in funds: as of today it amounts to just over $100 million every single day! That's right, more than $100 million in interest payments on funds parked with the Fed, which is by definition the world's only risk-free counterparty!

But wait, there's more!

Remember excess reserves? Well, technically excess reserves ended in March 2020 when the Fed reduced reserve requirement ratios to zero, thus converting the trillions in reserves held at the Fed from "excess reserves: to plain old "reserves" and which as of today amount to $3.13 trillion.

Whatever they are called now, however, reserves parked at the Fed (which is technically an incorrect phrase since the reserves are created by the Fed) also collect interest, and as of today, the Fed's Interest on (Excess) Reserves rate, or IOER, is 1.65%. This translates into $141 million in daily interest payments every single day to the various banks (mostly foreign) whose reserves are parked at the Fed!

Combining the two we get nearly a quarter billion, or to be precise $242 million and rising, in interest payments by the Fed - this is money which is printed into existence - every single day.

All of the above is with the Fed Funds rate at 1.75%. As a reminder, the Fed hopes to keep hiking at least another 175bps (or more) in the next 6 months, which will push the rate to 3.50% and will mean that the Fed will be paying half a billion in interest every single day to a handful of mostly unknown counterparties every day, money which for said counterparties is also known as (riskless) profit and which is only the result of the Fed's previous money printing.

[Boat + 1,323]

On 6/24/2022 at 6:01 PM, Tom Nolan said:

Republicans always kill the economy by no regulations and overheating it. Then the Dems have to spend recover the economy money and get blamed for it. That’s the system. How it works. 

[Boat + 1,323]

Trump because of Covid had a huge tax break but it wasn’t enough to overheat the economy. So he envokes Covid relief to the tune of 3 billion. That did the trick.

[RichieRich216 + 454]

The Federal Reserve is more secretive than the CIA; who the hell knows who is pulling the strings.

Every financial crisis the banking industry created with these crazy financial instruments ultimately failed; not a bank or a banker went to jail.

J.P. Morgan may have thought he was assisting the stock market crash but ended up the most secretive group to this day.

As of the beginning of 2022, all the world's debt amounts to over 172 Trillion, which is impossible ever to be paid back.

We better put a lock on China which manipulates its currency and wants to replace the Dollar as the world's reserve currency.

Now with China, Russia and India attempting to group together and make a new world reserve currency, it's essential to make sure that never happens.

[Tom Nolan + 2,443]

On 6/30/2022 at 9:59 PM, RichieRich216 said:

Now with China, Russia and India attempting to group together and make a new world reserve currency, it's essential to make sure that never happens.

Unfortunately, that is the dream of the Elite... ...to pick sides and have conflict.  All wars are essentially banker wars.  It has always been a method to control and manipulate the masses.

[RichieRich216 + 454]

You nailed that, my friend; the United States Federal Reserve won't open there books since founded.

[Tom Nolan + 2,443]

[Andrei Moutchkine + 828]

On 6/29/2022 at 12:55 AM, SUZNV said:

Tom,

This is the Eastern Bloc popular conspiracy theory part I was talking about in the previous post: The Petrol Dollar system, surprisingly most US people believe in it, or even take proud of it, the same way they believe in the fractional banking system instead of money printing from loan, as if we are still in gold standard era.

Bretton Wood  system failed long before Nixon Era, especially when many US allies, France in particular demand gold delivery. This is basically the bank run to the US. No hard global reserve currency can survive because of Triffin's Dilemma. USD was banned to reclaim to gold long before Nixon.  The Western people wouldn't to have current living standard if we do fractional reserve with gold. Gold standard cannot survive any bank run and a bank run in a bad bank would lead to the bank run of every others good one. No bank can survive bank run in fractional banking, especially in gold standard. Liquidity is the most important factor in transaction, and that was how the bankers club in Western Europe invent Euro Dollar Ledger system after Bretton Wood, which  consequently lead to US gold run in 1960s. 

Petrol Dollar was a popular myth that everyone was encouraged to believe in. There existed a Eurodollar ledger system, a club of foreign banks, outside of the US that have everything priced in USD already. There always a need of a unit of measurement in a global system and USD was a natural choice back then. You can pay in Yuan, in Gold , in Euro as long as the price is nominal in USD and the supplier accept to receive that currency, and in most case, they actively convert it back to USD or US treasury in the long run, or buying US assets.  In the FIAT world, USD and US treasuries is the most prestige, back by military, technology, trade routes, natural resources and the only top super power didn't have an active war to the new riser.

US treasuries is the collateral of this Euro Dollar Ledger Clubs. US treasuries is the collateral of this Euro Dollar Ledger Clubs. The Euro dollar debt bubble is much much larger than US Government debt and US Government is responsible for US debt only. The Lehman Brothers, Bear Stearns  etc. was a victim of over leverage and got a bank run from other Eurodollar club members asking for delivering US treasuries. 

Don't believe me, do research about the need of why Basel Accords was invented and enhanced with version 2, and recently Basel 3. This is the attempt to regulate the risk of aggressive lending of global institution outside of USA, completely out of control of Federal or US Government.  And because of the size of this debt bubble, as we know USD printing outside of the US, most institution encourage believe that Fed has some sort of super power outside of the US. Because in this Fiat world, the believe in Fed will make Fed's tool hopefully more efficient (Before the Volker myth, Fed was a joke, now Fed is the cheerleader). No one know how big is the Euro dollar bubble, even among Euro dollar institutions, as they only have their ledger who owns them and who they owed, no more, no less. Secondly they need some one be blamed for their greed and who is better than the one created US inside US, and with bank reserve.

Because money printing is from loaning out, this means the world living standard, especially the living standard  we enjoyed in the Western World, half of it came from the globalization that can make thing cheaper to push investment in complicated technologies with a cheap price which enhance productivity. The other half is from borrowing from the future resources and generation. 

The first half is good, the second will need to be paid back somehow.  Unlike in Europe, US tradition embrace individualism is heavily against socialism/communism, more religious in Christianity compare to most of Europe Countries. After WW1, US did go back to isolation (compares to Europe) until Japan dragged it to WW2 with Pearl harbor and US was trapped into the global until now, funded by US taxes in the past and future, will be somehow paid of by US future generation unless a massive default. 

Strategy to de globalization is easy, and most Trump's voters don't like globalization as he is the only US president since the end of Cold War heads toward this direction, but will have the following consequence:

-Western countries cannot sustain  current living standards, including health care and retirement savings when a large part of them went into retirements aka very less consumption to boost the economy, aka deflation, less tax for Gov while Gov are heavy in debt and cannot do much Keynesian economics via ESG (Developing countries don't have the welfare trap and most of the population was not that old yet, but most (former) Communism countries somehow aging really fast, this is why China trying to move up to a consumption system ). Aging countries need the youngster to consume. 

-EU will need to pay for their own defense system fully. Remember the purpose of NATO)? Keep the Russians out, The US in and the Germans down (I quote Peter Zehan). Why should the US in after the Soviet Union collapse and why need to keep Germans down when they are the largest globalism nest and have a good relationship with both France and Russia (pre Ukraine war). Why US people need to foot this bill?

-Everything will be really expensive after deglobalization. How do we reverse money money printing? Just practice stoicism, becomes minimalist and pay back all of the debt (mortgage, credit cards). Accept the life style of a stagnation or deflation. Forcing the Gov to pay back their debt too, shirking public sector and encourage competition among healthcare, education providers without government support, not more spending, risking the economy collapse and losing what ever you have if you didn't pay in time. I bet it will reduce lots of CO2 emission. No pain no gain. Maybe another form of own nothing and be happy but more freedom.

Zoo keepers made a very comfort debt zoo out of future taxes and suck the resources out the wild animal out of the cage, make them suffer and want to get inside the cages, voluntarily. Their tools are spreading greed, fear, hate, laziness and promises, all you need to do the reverse. The only catch is whenever the animal get in, it will be very hard to get out  and zoo keepers can afford pick and choose. And it is kind of not fair for young animals who were born in a cage, they didn't have a chance to experiment the outside world before making decision.  Guess where are we now in this circuit : “Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times.”. 

History keeps repeating itself. Some generations risk their lives for freedom and their offspring risk freedom for good lives.  Maybe now I enjoy life in the cage but will always vote for freedom.

There never has been a petrodollar, only petrogold. The only practical means to clear untold millions of dollars worth of oil contracts near instantaneously is to have some actual gold bars in storage with the commodity exchange change a locker.

Incidentally, does Basel 3 make physical gold a Class 1 reportable asset again, i.e. liquid cash.

Edited July 8, 2022 by Andrei Moutchkine

[Tom Nolan + 2,443]

Good article...

Inflation IS Money Supply Growth, Not Prices Denominated in Money

By Frank Shostak

https://www.activistpost.com/2022/07/inflation-is-money-supply-growth-not-prices-denominated-in-money.html

EXCERPTS

...Many mainstream economists have attributed the breakdown in the correlation between the money supply and inflation on the unstable velocity of money. What is it? According to the famous equation of exchange, MV = PT, where:

M stands for money,

V stands for the velocity of money,

P stands for the price level, and

T for the volume of transactions.

This equation states that money multiplied by velocity equals the value of transactions. Many economists employ GDP (gross domestic product) instead of PT, thereby concluding that

MV = GDP = P (real GDP).

The equation of exchange appears to offer a wealth of information regarding the state of an economy. For instance, if one were to assume stable velocity, then for a given stock of money one can establish the value of GDP. Furthermore, a given real output and a given stock of money enables us to establish the price level.

For most economists the equation of exchange is regarded as a very useful analytical tool...

...

...According to Murray Rothbard and Ludwig von Mises, inflation is defined as the increase of the money supply out of “thin air.” Following this definition, one can ascertain that increases in money supply set economic impoverishment in motion by creating an exchange of nothing for something, the so-called counterfeit effect.

General increases in prices are likely to be symptoms of inflation—but not always, however. Note that prices are determined by both real and monetary factors....

Edited July 9, 2022 by Tom Nolan

[SUZNV + 1,197]

On 7/8/2022 at 9:39 AM, Andrei Moutchkine said:

There never has been a petrodollar, only petrogold. The only practical means to clear untold millions of dollars worth of oil contracts near instantaneously is to have some actual gold bars in storage with the commodity exchange change a locker.

Incidentally, does Basel 3 make physical gold a Class 1 reportable asset again, i.e. liquid cash.

You don't understand the Eurodollar system. The most value collateral for eurodollar banks/institution is the US treasury, not gold. And Basel 3 is just using gold as class 1 collateral last year, not much of a petrol gold you are talking about. Basel 3 was introduces of a need to put more accounting rules in Eurodollar club to prevent they are using MBS as collateral after GFC . Canada central bank even didn't keep any gold and we all knows how much oil they export, and UK central bank hasn't kept as much gold as after WW2. 

People can pay for oil by gold, yuan, yen, euro, rouble etc. as long as the nominated value is in USD.  If gold is really that powerful like you believe, it cannot reach 1/100 physical over paper contract ratio. In recession time, people run to US treasury to have yield on US dollars. This has always been the case. Just look at dxy around 2020 and now. With gold, not so much. 

For 1 oz of physical gold, there is 100oz paper gold contract. Do you really think the amount of gold mined each year can pay for the oils consumption around the world with some weird locker exchange system? If people trust US, UK, China,Swiss... keep their gold for the other's locker, it the same meaning they rather trust US treasury and the eurodollar SWIFT system and that is precisely why Western can do sanction. Otherwise Venezuela and Iran would be rich and price of gold should be sky high by now, I have no complain about this. 

I don't say that I don't like physical gold. If it is in my hand, then there is no counter party risk with the financial institutions around the world or Fed or US Gov. If someday USD failed, gold bug would be very rich and Indian will be the richest people in the world with their gold culture. For now, we are seeing the reverse. The behavior of DXY is currently coherent with The Milk Shake Theory model and Cantillon effect. There is no graphs or model in my knowledge can prove petrol dollar or petrogold . If you have any, please, enlighten me. I am open to changes.

Edited July 11, 2022 by SUZNV

[Andrei Moutchkine + 828]

2 hours ago, SUZNV said:

You don't understand the Eurodollar system. The most value collateral for eurodollar banks/institution is the US treasury, not gold. And Basel 3 is just using gold as class 1 collateral last year, not much of a petrol gold you are talking about. Basel 3 was introduces of a need to put more accounting rules in Eurodollar club to prevent they are using MBS as collateral after GFC . Canada central bank even didn't keep any gold and we all knows how much oil they export, and UK central bank hasn't kept as much gold as after WW2. 

People can pay for oil by gold, yuan, yen, euro, rouble etc. as long as the nominated value is in USD.  If gold is really that powerful like you believe, it cannot reach 1/100 physical over paper contract ratio. In recession time, people run to US treasury to have yield on US dollars. This has always been the case. Just look at dxy around 2020 and now. With gold, not so much. 

For 1 oz of physical gold, there is 100oz paper gold contract. Do you really think the amount of gold mined each year can pay for the oils consumption around the world with some weird locker exchange system? If people trust US, UK, China,Swiss... keep their gold for the other's locker, it the same meaning they rather trust US treasury and the eurodollar SWIFT system and that is precisely why Western can do sanction. Otherwise Venezuela and Iran would be rich and price of gold should be sky high by now, I have no complain about this. 

I don't say that I don't like physical gold. If it is in my hand, then there is no counter party risk with the financial institutions around the world or Fed or US Gov. If someday USD failed, gold bug would be very rich and Indian will be the richest people in the world with their gold culture. For now, we are seeing the reverse. The behavior of DXY is currently coherent with The Milk Shake Theory model and Cantillon effect. There is no graphs or model in my knowledge can prove petrol dollar or petrogold . If you have any, please, enlighten me. I am open to changes.

Commodity exchanges, and a bunch of other trading enterprises of various stripes, hold physical gold for clearance purposes. Or supposed to, at least. There is a "paper gold" which is 1:1 to physical. It is called a warehouse receipt to the said "locker" Also the main mechanism how US/UK hemorrhage gold, as those have been taken out of the country and used as collateral. Which is why they also used values that are actually much higher than physical gold itself. None of those contradicts the quotations being in dollars or whatnot, but the clearing is in gold.

I think, this time around, the dollar and euro are broken. No longer useful reserve currencies. I mean, after wanton theft of Russian assets, nobody trusts them anymore. I hear Chinese and Arab capital is fleeing USA. Dunno about Venezuela, but Iran will be rolling in dough soon enough. Now that they are effectively in a free trade zone with entire Russia/EAC, the sanctions on them don't do much. Turkey is also in, albeit for more complicated reasons. Something like that

https://www.reuters.com/markets/commodities/exclusive-how-an-indian-cement-maker-bought-russian-coal-using-yuan-2022-07-07/

Edited July 11, 2022 by Andrei Moutchkine