With Goldman Sachs conquering Europe, Occupy Wall Street protests going global, Global Insurrection Against Banker

Occupation (GIABO) going viral, the European Union and its currency – The Euro, teetering on the brink of collapse, more Central Banks adding to their gold reserves, 2012 is poised to be the most fascinating year of the 21st century so far. These are truly testing times for every paper currency in the world. All of them are getting devalued against real money – gold and silver. 2012 should take this devaluation to the next step – daily volatile swings. Already, the markets around the globe have become so volatile that it’s a big risk to second guess any market now. As people are finding out now, nothing is for sure. Only gold and silver are. They have never lost value or become worthless ever since their inception. So let’s first turn our attention to what’s causing havoc in the international markets and every single economy around the globe. The New Masters of the Euro Zone: It was mentioned in our previous articles and especially the one titled “Currency Wars” in the April - 2011 edition of this magazine that the eurozone is on the verge of collapse. It was shown that the debts far exceed the annual income. These countries, also mentioned previously, issue debt-instruments –bonds, to run their governments. The public sector is at the mercy of these debt instruments and as long as there is confidence that the governments will keep making payments, there will not be any problem. But then again, it turned out that these countries were bankrupt but still were able to keep up with the payments. What came to light was that these nations were printing money and paying back in worth less amounts of paper currency. This is where investors lose confidence. The payments you receive are worth less and less every month and buy you less amounts. In such a scenario, investors now have 2 choices: 1. Sell your holdings of bonds and exit the country, or 2. Ask for a higher return (a higher interest rate) Both of the above can also take place as they did in Greece! The yield on the 1 yr bond reached as far as 100%! It is natural for the interest rate to go up as investors want a higher return to compensate for the loss in purchasing power of the printed currency. This is exactly the same thing that happened in the United States of America. But over there, the central bank, which is private bank, the Federal Reserve, stepped in and bought all the bonds when no one else wanted to buy at such low interest rates. They called it Quantitative Easing 1 and then 2. The net result was massive inflation. That nation is trapped now. If it lets the interest rates go up, the country goes bankrupt because the debt payments will go sky high. If the Federal Reserve keeps printing money and buying all the debt instruments from its own government, net result is hyperinflation

down the road. In either case, you are a defaulter! They have chosen the path of defaulting via hyperinflation. But in the eurozone, the European Central Bank (ECB) has so far to an extent resisted the call to buy bonds from the different governments that are in trouble, namely the PIIGS – Portugal, Ireland, Iceland, Greece & Spain. The reason is the largest economy in the zone – Germany. This particular country is wary of such an act as it remembers the hyperinflation it experienced under the Weimer Republic in the 1920’s when massive amounts of paper was printed to back the debts incurred after the Treaty Of Versailles put all the cost of World War 1 on Germany. So what happened when the ECB resisted?! The interest rates on the bonds for Greece, Italy and Spain shot up! Italy is the third largest economy in Europe and its failure to keep up with her debt payments has dealt a huge blow to the entire eurozone. So what exactly is going on here?! It is interesting to note that Italy now has a technocratic government run by bankers after Prime Minister Silvio Berlusconi was forced to resign during the crisis! The entire eurozone is rolling over its debt – paying off previous debt by buying new debt! That’s like paying off one credit card from another. It does not solve the problem, it just delays it! So what all these governments have done is to “kick the can down the road” and buy some time. The plan is to collateralize national heritage sights, ports and natural resources to the newly issued debt. This is what happened to Greece and this is exactly what is being done to Italy and Spain now. In between, the ECB has offered to buy bonds by printing money, but the amount required is somewhere around $6 trillion which will unleash hyperinflation down the road in the eurozone too! So the debate rages on, and the end game keeps on being delayed. The further the delay, the bigger the bust! This collapse will make the Great Depression of the 1900’s seem like a walk in the park.

During all this mess, bankers have taken control of high profile positions in the eurozone to push for policies that they deem fit for them. It is interesting to note that all of them currently or previously belonged to a bank we identified as the biggest Financial Terrorist in our previous article, Goldman Sachs! Ireland – Peter Sutherland: Former Attorney General of Ireland; prominent voice during Ireland’s “bailout”; non-executive director of Goldman Sachs International France – Antonio Borges: Former head of IMF’s European Department (resigned in November, 2011); former chairman of Goldman Sachs International Italy – Mario Monti: Italy’s new prime minister; international advisor to Goldman Sachs

Belgium – Karel van Miert: Former EU Commissioner and ex-international advisor to Golman Sachs Germany – Otmar Issing: Former board member of Bundesbank and the ECB; helped create the Euro; advisor to Goldman Sachs Greece – Lucas Papademos: Greece’s new prime minister; ran the central bank of Greece during the controversial derivatives deals with Goldman Sachs that enabled Greece to hide the size of its debt o Petros Christodoulou: Head of Greece’s debt management agency; began his career at Goldman Sachs European Union – Mario Draghi: New head of the European Central Bank; former managing director of Goldman Sachs International Europe stands at the brink of a crisis partially orchestrated by the bankers to get more control over policy making. The governments are not bailing out themselves or the people. It is the bankers that stand to lose if the governments default on their debts. Majority of these debts are held by private banks with a habit for uncontrolled gambling on commodities, foreign exchange, stocks and bonds, disguised as “trading”.

The eurozone might be able to buy some more time like the United States of America by printing money. But it’s more difficult here because there are many countries that have different languages and culture and they have a past of total war. Not all of them are on the same page. Already, the UK has voiced concern about Germany taking over the entire eurozone if it buys debt of certain countries in need. We know the history of these two countries. So the stage is set. Every single option required printing more money now. It is the public vs. the bankers! The governments are in the pockets of these bankers. The civil unrest and riots in the eurozone covered in the last article are poised to go viral in the entire eurozone. Civil liberties are being quashed and new laws put in place to make it seem like a civil martial law now. The Euro will

fall apart and not exist as we know it today. The eurozone and with it NATO, faces utter annihilation in the shape they are today not long from now. United States of Americans on Food Stamps: Another month, another record! According to the Supplemental Nutrition Assistance Program (SNAP), the usage of food stamps, the minimal way subsistence, hit an all time record of 46.3 million in the United States of America! The rate of increase is frightening for anyone to observe. The economy is not recovering at all, and simply cannot as the fundamentals are so woeful; it makes the hair on the back of your head stand up!

With ever increasing dependency of the public on government subsidies or free giveaways to just survive, financed by printing more money, the capacity to support many wars around the globe seems like a dream. This particular dream is turning into a nightmare for the United States of America as foreigners have started dumping the US treasuries (bonds) at a record pace and amount. We have explained in detail in the past articles that how the United States of America has financed its entire economy and war machine on the back of fake paper money that was de pegged from gold in 1971 and the usage of US treasuries (bonds). Well, now since the world is waking up to the fact that this nation is just printing money and paying the bills, other nations

around the world have started accumulating gold and silver as they want real wealth that always retain its value in times of crisis, when everything else is falling apart.

Jan 2008-Oct 2011: Increasing when the Federal Reserve buys the US treasuries by printing money, Quantitative Easing 1 & 2. Inflation went from 2% to 10%-12% now. The recent drop may call for another round of quantitative easing (QE3) that will unleash hyperinflation down the road. 20%-50%. Once it goes to those levels, there is no way to stop it from going higher.

Feb 2003-Sept 2011: Another precursor to the next round of Quantitative Easing (QE3)?!

It is interesting to note that whenever a crisis starts to unfold in the US dollar, some massive war campaign starts and fear mongering begins. The idea is to get people back into buying US treasuries as they are considered a “safe-heaven” in times of crisis. Well now, the crisis is coming home to the United States of America and this time, as more fear mongering is being spread about Iran, Middle East and Pakistan, China and Russia have had enough! In the report published in October, 2011, a record number of US treasuries, $74 billion, were sold in 6 consecutive weeks. Cunningly, the US would like this to become $740 billion, but judging by the response of previous metals; gold and silver appreciated to this news to this sell off in treasuries as the exited money entered the metals market, the US better wait until it forces the Federal Reserve to intervene and buy out all the bonds to finance the already bankrupt government when again, there is no buyer left. So the stage is set on this side of the Atlantic as well! 2012 will bring more money printing both in Europe and the United States of America. It will make things look a bit rosy for a little as the politicians use the media to say how this is the time of so-called “economic recovery” like President Obama of the United States of America dubbed the summer of 2010 as the “Recovery Summer”. What recovery indeed! One year on, gold skyrocketed to an all time high in the summer of 2011, record number of food stamps issued, and zero jobs created in August-2011! ZERO! Not even part time jobs. So when the cover comes off the lid, and inflation skyrockets further and possibly heads towards hyperinflation, more people are laid off, diminishing purchasing power of fiat currencies goes mainstream, there could be huge civil unrest around the globe. In this case again, there is no choice but to print money for the politicians! So, the markets are extremely volatile and in a downtrend, a sell –off in treasuries a reality, where is all this money heading to? Central Banks Add To Gold Holdings: Central Banks are all adding gold and silver to their reserves at a frantic pace. In October alone, Russian central bank added 19.5 tonnes of gold reserves. Thailand, Bolivia, South Korea added as well. All emerging economies are also reporting increases. Furthermore, China is one country which always understates her holdings. Every year, they report a sharp increase in their revised numbers. As mentioned before, China’s target is to have the largest amount of gold reserves in the world before it floats her blocked currency. This will add lots of muscle to it and shield it from speculative attacks. A month after prices rose to a record, Russia, Colombia, Belarus, Kazakhstan and Mexico added a combined 25.7 metric tonnes in October alone. Mexico is talking about a silver backed peso and even their parliamentarians, almost all of them, are no on board.

Russia marches on towards its official target of accumulating around 120,000 ounces. Currently at around 28 million. Big orders coming up for sure in 2012!

Russian President, Vladimir Putin shows off some real money!

The biggest shift in psychology is the fact that after nearly 2-3 decades, Central Banks around the world are now net-buyers of gold. The chart shows the change clearly. During the first decade of the 21st century, Central Banks were still net sellers and this is while the price was still going up! It rose by a total of 500%! This is the second phase of this bull market is gold (and silver). Central Banks have joined the party and they bring along a huge pile of fake paper currency which for the time being can be redeemable for a lot of gold, but not for long! Prices are set to resume their upward trend after taking a breather in the last month and it will take more and more paper to purchase gold in 2012. This bull market in gold (and silver) is just starting!

If you add the accumulation done after April – 2011, 2011 has exceeded 2010. Look for another record in 2012.

As mentioned in our previous article, a big game changer that took place was President of Venezuela, Hugo Chavez, claiming physical delivery of the country’s gold holdings that were held with banks in England, Canada, Switzerland and the United States of America. So against all odds, Venezuela took the shipment amidst tight security. The following was reported on November 29th, 2011, by MSNBC on the event: http://www.msnbc.msn.com/id/45481474/ns/world_newschristian_science_monitor/t/venezuelas-first-batch-repatriated-gold-comes-home/#.TuTcivIppIE “CARACAS, Venezuela — Many experts laughed off the plan, claiming it unfeasible and nothing more than a publicity stunt that would never materialize. Yet, just three months after announcing his intent to bring home Venezuela's international gold reserves and end the “dictatorship” of

the US dollar, President Hugo Chávez has pulled off at least the initial portion of the feat, with trademark theater. The first shipment of the precious metal landed at Caracas’ Maiquetia International Airport late on Friday night to great fanfare. Pallets carrying the ingots traveled along the runway with an armed soldier on top of each. They were loaded onto armored vehicles and carried to Caracas as supporters celebrated in the streets.”

Soldiers stand guard as an armored truck containing gold reserves arrives to the Central Bank in Caracas, Venezuela on Friday Nov. 25, 2011. President Hugo Chavez's government has begun repatriating Venezuela's gold reserves from European banks.

All this drama of money printing, bond exiting and gold accumulation is not oblivious to the public. People have woken up to the con of paper money and fractional reserve banking system and they are not staying silent anymore. Occupy Wall Street and Global Insurrection Against Banker Occupation (GIABO): They public in the United States of America knows that the Federal Reserve has totally taken over the nation’s economy and every decision is now made by big banks. The reaction to this has been movements dubbed as Occupy Wall Street (OWS) and Global Insurrection Against Banker Occupation (GIABO). OWS has taken some serious shape in the past few months. It started off with people in the United States of America camping outside Wall Street in New York and nonviolently expressing their anger against the big banks who were given “bailouts” or free money by the Federal Reserve with the approval of the US government in Washington. All the free money went to the big banks and nothing to the people, all of it for Wall Street, and nothing for what they call Main Street. This money did not pass on to the public and in the meantime, the banks gave out record bonuses while not really reporting record profits. Wall Street bankers have been lobbying in Washington for a long time and it is no surprise that they are now in total

control of the decisions made there. It was shown in the previous article how they plundered farm land in Africa before and now they have taken over the entire eurozone. The United States of America is at their mercy now. It is a matter of time when they attempt to do what many financial war analysts are expecting. George Soros and other elite bankers are attempting to hijack the Occupy Wall Street movement and get the population to become violent. So far, the protestors have been non violent. However, the police have used extensive force against them. Tear gas and pepper spray has been used by the police as if it were normal procedure. Reaction to this has been a movement called “Occupy Everywhere” and this movement has gone global and more than 100 cities around the globe have seen this movement against big banks. In the United States of America, the plan seems to force the protestors to become violent and as a result, the big banks can lobby in Washington to pass laws that would eventually lead to a martial law like situation! The idea would be to hijack such movements and then lobby for bills like Senate Bill S. 1867 which was passed 93-7 in the Senate. Such bills are attempts to give the military the power to detain, arrest, interrogate, and assassinate a US citizen if they the person is deemed “a threat to national security”. This tussle has been going on for the past decade and every year the bankers and the government seize more control over the population. How this movement unfolds is yet to be seen, but what is clear is that the so called elite bankers are looking at every opportunity to seize more and more control over the population.

So, no solution but to print money and civil disobedience movements going global, do the Central Banks, and especially, does the Federal Reserve have any trick up its sleeve to further fool the people and keep the house of cards from falling? The 5 Tools of Monetary Policy Under a Reserve Currency: The Chairman of the Federal Reserve, Ben Bernanke, outlined the 5 tools he believes can be used to rein in a collapsing economy that results in deflation. He has gone on record to say that deflation should be avoided at all costs. The policies he outlined are supposed to boost the economy by providing access to cheap(er) money which shall entice more borrowing and investing. So far, he has been true to his policies of avoiding deflation at all costs. The tools he cited can be summarized as follows: 1. 2. 3. 4. Drop Interest Rates to Zero, Offer zero percent interest rates to banks to inject money into the economy, Purchase unlimited treasuries (US bonds) to keep the interest rates low, Manipulate the Treasuries structure to keep interest rates low to boost the housing market by forcing low mortgage rates.

All these 4 tools have been implemented as explained in this and the previous articles. All of them have failed. The 5th one can be deduced by the following remarks Bernanke made before the National Economists Club, Washington, D.C. November 21st, 2002. titled, “Deflation: Making Sure "It" Doesn't Happen Here”:

“"It's worth noting that there have been times when exchange rate policy has been an effective weapon against deflation. A striking example from U.S. history is Franklin Roosevelt's 40 percent devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation. The devaluation and the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly. Indeed, consumer price inflation in the United States, year on year, went from -10.3 percent in 1932 to -5.1 percent in 1933 to 3.4 percent in 1934.17 The economy grew strongly, and by the way, 1934 was one of the best years of the century for the stock market. If nothing else, the episode illustrates that monetary actions can have powerful effects on the economy, even when the nominal interest rate is at or near zero, as was the case at the time of Roosevelt's devaluation. " 5. It is obvious that the final tool is revaluating gold. What is also obvious is that under this chairman of the Federal Reserve, inflation was and still is guaranteed! It is comical to listen to economists talk about how the chairman is saving the economy by injecting more money in the system, while at the same time, they fail to recognize that all he is doing is devalue the dollar deliberately and cause inflation to make things look rosy so the war machine can go around the world and plunder natural resources. He has said it in public he will inflate the economy no matter what! Whether gold is deliberately revalued or not, it will revalue by itself as mentioned and explained in the previous articles. Eventually, the free market forces will take over as they have for the past thousands of years, and then gold and silver will end up at astronomical numbers. It is certain to take place during this decade. This decade will be unlike any other. 2012 seems to be the start of the next phase of this shift in psychology. It will require nerves of steel to go through the economic Armageddon that’s staring us right in the face. Only the prepared shall survive. Nothing is for certain. Only gold and silver are. Paper assets are poised to collapse when measured against real money. What of Pakistan? It is very comical that after all these developments, the Government of Pakistan Finance Division Estimates of Foreign Assistance 2011-2012 showed plans to sell Eurobonds worth Rs. 44 billion! A Eurobond is an international bond, denominated in a currency other than the currency of the issuing country. When countries in Europe are begging the world to buy their bonds and US treasuries experiencing a steady sell off, who would want to buy Eurobonds from Pakistan?! Furthermore, there are expectations of loans and grants from the United States of American, Japan, United Kingdom, European Union, Asian Development Bank, Islamic Development Bank and various other countries. These countries are bankrupt themselves. Their economies are in a recession, pensions are being slashed just to finance the current governments, riots have gone main stream, and their financial system is on a path towards total meltdown. Yet our government expects them to provide us with loans and grants. This tells us of the competence level of the advisors, the economic team and the ruling class.

Source: Federal Budget: Estimates of Foreign Assistance 2011-2012

When it’s time to start accumulating real money, gold and silver, and focus on debt reduction rather than debt re-financing, the Ministry of Finance and the State Bank of Pakistan are busy in

making use of this interest based banking system. A country that was founded on the basis of a real-wealth based economic system now has so called elite economists telling us how the “modern” banking system is good for us, and we cannot do without this collapsing system! Deep down, even they know that this is most ill-conceived system and not suitable for the world anymore. The world has woken up to this con. Our beloved founder, Quaid-e-Azam Muhammad Ali Jinnah knew about this sick system based on excessive credit and debt. He clearly gave us the right direction at the inauguration of the State Bank of Pakistan on July 1st, 1948. The following is pulled from the Jinnah archives is also available on the State Bank of Pakistan’s website:

The opening of the State Bank of Pakistan symbolizes the sovereignty of our State in the financial sphere and I am very glad to be here today to perform the opening ceremony. It was not considered feasible to start a bank of our own simultaneously with the coming into being of Pakistan in August last year. A good deal of preparatory work must precede the inauguration of an institution responsible for such technical and delicate work as note issue and banking. To allow for this preparation, it was provided, under the Pakistan Monetary System and Reserve Bank Order, 1947, that the Reserve Bank of India should continue to be the currency and banking authority in Pakistan till the 30th September, 1948.

Later on it was felt that it would be in the best interest of our State if the Reserve Bank of India were relieved of its functions in Pakistan as early as possible. The date of transfer of these functions to a Pakistan agency was consequently advanced by three months in agreement with the Government of India and the Reserve Bank. It was at the same time decided to establish a Central Bank of Pakistan in preference to any other agency for managing our currency and banking. This decision left very little time for the small band of trained personnel in this field in Pakistan to complete the preliminaries, and they have by their untiring effort and hard work completed their task by the due date which is very creditable to them, and I wish to record a note of our appreciation of their labours. As you have observed, Mr. Governor, in undivided India banking was kept a close preserve of non-Muslims, and their migration from Western Pakistan has caused a good deal of dislocation in the economic life of our young State. In order that the wheels of commerce and industry should run smoothly, it is imperative that the vacuum caused by the exodus of non-Muslims should be filled without delay. I am glad to note that schemes for training Pakistan nationals in banking are in hand. I will watch their progress with interest and I am confident that the State Bank will receive the cooperation of all concerned including the banks and universities in pushing them forward. Banking will provide a new and wide field in which the genius of our young men can find full play. I am sure that they will come forward in large numbers to take advantage of the training facilities which are proposed to be provided. While doing so, they will not only be benefiting themselves but also contributing to the well-being of our State. I need hardly dilate on the important role that the State Bank will have to play in regulating the economic life of our country. The monetary policy of the bank will have a direct bearing on our trade and commerce, both inside Pakistan as well as with the outside world and it is only to be desired that your policy should encourage maximum production and a free flow of trade. The monetary policy pursued during the war years contributed, in no small measure, to our present day economic problems. The abnormal rise in the cost of living has hit the poorer sections of society including those with fixed incomes very hard indeed and is responsible to a great extent for the prevailing unrest in the country. The policy of the Pakistan Government is to stabilize prices at a level that would be fair to the producer, as well as to the consumer. I hope your efforts will be directed in the same direction in order to tackle this crucial problem with success. I shall watch with keenness the work of your Research Organisation in evolving banking practices compatible with Islamic ideals of social and economic life. The economic system of the West has created almost insoluble problems for humanity and to many of us it appears that only a miracle can save it from the disaster that is now facing the world. It has failed to do justice between man and man and to eradicate friction from the international field. On the contrary it was largely responsible for the two world wars in the last half century. The Western world, in spite of its advantages of mechanization and industrial efficiency is today in a worse mess than ever before in history. The adoption of Western economic theory and practice will not help us in achieving our goal of creating a happy and contented people. We must work our destiny in our own way and present to the world an economic system based on the true Islamic concept of equality of manhood and social justice. We will thereby be fulfilling our mission as

Muslims and giving to humanity the message of peace which alone can save it and secure the welfare, happiness and prosperity of mankind. May the State Bank of Pakistan prosper and fulfil the high ideals which have been set as its goal. In the end I thank you, Mr Governor, for the warm welcome given to me by you and your colleagues and the distinguished guests who have graced this occasion as a mark of their good wishes and the honor you have done me in inviting me to perform this historic opening ceremony of the State Bank which I feel will develop into one of our greatest national institutions and play its part fully throughout the world. Well, it is obvious the direction was not acted upon. We now live in a Pakistan that is infected with the disease of fractional reserve banking where so many people are now living off savings bonds or simply, interest payments, not realizing that such policies are inflationary in themselves. Instead of honest money, people are being forced to resort to “easy” money. The system is designed to discourage people from even attempting to make honest money. Debt financing and printing of currency has led to so much inflation in the past four decades that it is impossible for the majority to support their families. We have promoted the idea of accumulating gold and silver on an individual and collective basis for a couple of years now. What is also required is an overhaul of the current fractional reserve banking system in Pakistan as well. The steps to be taken to install a gold (and silver) standard inside Pakistan will be discussed in the upcoming articles.

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