Gold and the Amero

Came across the blog, below, while searching around the gold world. It is from November. I didn't know who Edelson was so I found a little resume and it is at the end. This is important stuff, sorry it is long. Don't ignore the train, it may be coming at you.

Even if Edelson is semi crazy, he is reflecting what his profession is saying. If he is not crazy, then you must buy gold or gold stocks asap.

Fit in these ideas when you read. Since even even knew the world was imploding and bought gold, then those in power have known for years.

1. Early in the Bush years, Mexico, Canada, and the US met to discuss the new union here. They began work on the Amero, the new dollar, and we have people in DC working on it now. There is a straight ahead operation afoot that seemed to make no sense, at the time. Corsi in Salon
Video
Dept of Commerce goes to amazing lengths to say the "SSP" is not the N.A. Union that Obama, in the above video, says has been "ginned up" after asking to be reminded of the name. Methinks the lady doth protest too much.
Snopes pooh-poohs the notion that the coins were being produced, the one you see above for sale. Snopes is part of the left's machine, so it is not an honest source, though it does throw out interesting facts. The above coins are now privately offered collectors items. I suppose if the Amero comes into fuition, they would be a great collectors item.

A side note:

2006: ...The billions of dollars China has invested in the flagging American economy will be worthless. They will have to negotiate the exchange rate to the new amero. This will then force the creation of the North American Union. The cloak of the NAU, fashioned in secrecy, will be thrown over an unsuspecting public, erasing the borders of three countries. Mexico, which already has legions of its citizens living and working inside America, is, in effect already inside the NAU. Their governments will inform the American and Canadian people that there is no option but the bread line.Unfortunately, the plan, which has been in place for some time, now, has been all but ignored by the mainstream media.One of the signs that the NAU is on its way is the collapse of the American greenback dollar paving the way for the debut of the ‘amero’.”Two analysts who have reconstructed money supply data after the Fed stopped publishing it argue a coming dollar collapse will set the stage for creating the amero as a North American currency to replace the dollar,” (WorldNetDaily, Dec. 13, 2006).The euro followed the same blueprint of stealth and surprise. It was already issued as replacement currency before the masses could coalesce to fight it....

2. If you thought the dollar was about to be executed, or any currency, in order to screw creditors, what you do as President? Spend like crazy and let the inflation go.

3. Gold is being held down at great expense and effort. It wants to go up. When it does mover a bit, it goes down. Gold folks are confused, with good reason, as they hear about rapid inflation predicted by the government and gold prices don't move too much. Just look at the Goolge chatter.

4. Why was Bush so non-Republican and why is the GOP mute on subjects of great importance to normal Americans, those who want to defend the border, protect the Constitution, stop idiotic spending and interference in people's rights. This always had my attention. All the GOP had to do was champion the taxpayers and close the borders; there would have been a blood bath as people had a place to turn.

I am sure you can come up with other pieces that would fit this puzzle

Adrian Ash 2007:

As for the world’s central banks, they seem to done a pretty bad job of “covert selling” since the start of this decade. The gold price has now doubled for US investors and savers, and it’s pretty much doubled for British and European gold owners, too. Japanese gold prices have more than tripled.

How come? Whatever the reality of active, covert manipulation, the world’s central banks do indeed control the gold price, as former Federal Reserve governor Wayne Angell put it in 1993.

“The price of gold is pretty well determined by us…But the major impact on the price of gold is the opportunity cost of holding the US dollar…We can hold the price of gold very easily; all we have to do is to cause the opportunity cost in terms of interest rates and US Treasury bills to make it unprofitable to own gold.”...

I can't pretend to know the in and out of all this, we may be going on a gold standard of some type and it may or may not be legal to hold gold, but something smells now. Where there is stink, there are governments and banks at work; oh, to help the people.

The G-20’s Secret Debt Solution

by Larry Edelson 11-13-08

If you think this weekend’s G-20 meetings in Washington are only about designing short-term fixes to the financial system and regulatory reforms for banks, hedge funds, brokers, mortgage companies and investment banks … think again.

Behind the scenes, a far more fundamental fix is being discussed — the possible revaluation of gold and the birth of an entirely new monetary system.

I’ve been studying this issue in great depth, all my life. And given the speed at which the financial crisis is unfolding, I would be very surprised if what I’m about to tell you now is not on the G-20 table this weekend.

Furthermore, I believe the end result will make my $2,270 price target for gold look conservative, to say the least. You’ll see why in a minute.

First, the G-20’s motive for a new monetary system: It’s driven by and based upon this very simple proposition …

“If we can’t print money fast enough to fend off another deflationary Great Depression, then let’s change the value of the money.”

I call it …

“The G-20’s Secret Debt Solution”

It would be a strategy designed to ease the burden of ALL debts — by simultaneously devaluing ALL currencies … and re-inflating ALL asset prices.

That’s what central banks and governments around the world are going to start talking about this weekend — a new financial order that includes new monetary units that helps to wipe clean the world’s debt ledgers.

It won’t be an easy deal to broker, since the U.S. is the world’s largest debtor. But remember: Debts are now going bad all over the world. So everyone would benefit.

Fed Chairman Ben Bernanke … Treasury Secretary Paulson … President Bush … President-elect Obama … former Fed Chairman Paul Volcker … Warren Buffett … and central bankers and politicians all over the world agree a new monetary system is needed.

So they’ll start hashing out the details to get the new financial architecture deployed as quickly as possible.

If you think I’m crazy or propagating some kind of conspiracy theory, then consider the historical precedent …

To end the Great Depression in 1933 Franklin Roosevelt devalued the dollar via Executive Order #6102, confiscating gold and raising its price 69.3%, effectively kick starting asset reflation.

Only this time, it won’t be just the U.S. that devalues its currency. The world is too interconnected. Instead, the world’s leading countries will propose a simultaneous and universal currency devaluation.

This time, they will NOT confiscate gold. There would be riots all over the globe if they even mentioned the “C” word.

But they don’t have to confiscate gold. Here’s one scenario …

They cease all gold sales and instead, raise the current official central bank price of gold from its booked value of $42.22 an ounce — to a price that monetizes a large enough portion of the world’s outstanding debts.

That way, just like in 1933, the debts become a fraction of re-inflated asset prices (led higher by the gold price).

And this time, instead of staying with the dollar as a reserve currency, the G-20 issues three new monetary units of exchange, each with equal reserve status.

The three currencies will essentially be a new dollar, new euro, and a new pan-Asian currency. (The Chinese yuan may survive as a fourth currency, but it will be linked to a basket of the three new currencies.)

The new fiat monetary units would be worth less than the old ones. For instance, it could take 10 new units of money to buy 1 old dollar or euro.

New names would be given to the new currencies to help rid the world of the ghost of a system that failed. Additional regulations and programs would be designed and implemented to ease the transition to a new monetary system.

The IMF would be at the center of the new monetary system.

The International Monetary Fund (IMF) would implement the new financial system in conjunction with central banks and governments around the world.

Keep in mind that the IMF is already set up to handle the transition, and has had contingency plans allowing for it since the institution was formed in 1944.

Included in the design and transition to a new monetary system …

A. A new fixed-rate currency regime. Immediately upon upping the price of gold and introducing the new currencies, a new fixed exchange rate system would be re-introduced. The floating exchange rate system would be tossed into the dust bin along with the old currencies.

This would kill any speculation about further devaluations in the currency markets, and drastically reduce market volatility.

B. To sell the program to savers and protect them from the currency devaluation, compensatory measures would be enacted. For instance, a one-time windfall tax-free deposit could be issued by governments directly to citizens’ accounts, or, to employer-sponsored pensions, to IRAs, or Social Security accounts.

Income taxes may subsequently be raised to pay for the give-away, or a nominal global type of sales tax could be enacted to help pay for the new system and the compensatory measures.

C. Additional programs would be designed to protect lenders and creditors. Lenders stand a much higher chance of getting paid off under the new monetary system — but with a currency whose purchasing power would now be a fraction of what it was when the loans were originated.

So programs would have to be designed to help lenders offset the inflationary costs of their devalued loans, probably via the tax code.

Naturally, all this is a bit more complicated than I’ve spelled out above. But that gives you a big-picture outline of what the plan could look like. And I think major changes like these are going to be set in motion at this weekend’s G-20 meetings in Washington.

Would they work?

Yes. They would help avoid a repeat of the deflationary Great Depression. But don’t expect even a new monetary system to put the U.S. or the global economy back on track toward the high rates of real growth that we’ve seen over the last several years. That’s simply not going to happen. Not for a while.

Instead, I’m talking about a massive asset price reflation, negative real economic growth in the U.S. and Europe — but continued real GDP gains in Asia.

The Big Question: What gold price would be legislated to reflate the U.S. and global economy?

I can’t tell you what gold price the G-20 would ultimately agree to. But here’s what they will be looking at …

• To monetize 100% of the outstanding public and private sector debt in the U.S., the official government price of gold would have to be raised to about $53,000 per ounce.
• To monetize 50%, the price of gold would have to be raised to around $26,500 an ounce.
• To monetize 20% would require a gold price a hair over $10,600 an ounce.
• To monetize just 10%, gold would have to be priced just over $5,300 an ounce.

Those figures are just based on the U.S. debt structure and do not factor in global debts gone bad. But since the U.S. is the world’s largest debtor and the epicenter of the crisis, the G-20 will likely base their final decision mostly on the U.S. debt structure.

So how much debt do I think would be monetized via an executive order that raises the official price of gold? What kind of currency devaluation would I expect as a result?

I would not be surprised to see the G-20 monetize at least 20% of the U.S. debt markets. THAT MEANS …

• Gold would be priced at over $10,000 an ounce.
• Currencies would be devalued by a factor of at least 12 to 1, meaning it would take 12 new dollars or euros to equal 1 old dollar or euro.

The return of the Gold Standard?

“But Larry,” you ask, “how could this be accomplished when we no longer have a gold standard? Further, are you advocating a gold standard?”

If the G-20 monetizes at least 20% of the U.S. debt markets, gold could easily hit $10,000 an ounce.

My answers:

First, you don’t need a gold standard to accomplish a devaluation of currencies and revaluation of the monetary system.

By offering to pay over $10,000 an ounce for gold, central banks can effectively accomplish the same end goal — monetizing and reducing the burden of debts, via inflating asset prices in fiat money terms.

Naturally, hoards of gold investors will cash in their gold. The central banks will pile it up. At the same time, other hoards of investors will not sell their gold, even at $10,000 an ounce. But the actual movement of the gold will not matter. It is the psychological impact and the devaluation of paper currencies that matters.

Second, I do NOT advocate a fully convertible gold standard. Never have. There isn’t enough gold in the world to make currencies convertible into gold. It would end up backfiring, restricting the supply of money and credit.

What should you do to prepare for these possibilities?

It’s obvious: Make sure you own some core gold, as much as 25% of your investable funds.

Also, as I’ve noted in past Money and Markets issues, you will want to own key natural resource stocks, and even select blue-chip stocks that will participate in the reflation scheme.

For more details and specific recommendations to follow, be sure to subscribe to my Real Wealth Report.

Best wishes,

Larry Meet Lawrence S. Edelson
Editor, Real Wealth Report:

This "$87 Billion Gold Trader" Is UNIQUELY QUALIFIED to Help YOU Grow Richer in 2004-2005!

• Larry has been actively involved in the precious metals and natural resource investment markets for nearly three decades.
  
  
• In 1978, Larry began his career at Wilcap Advisors, a private money management firm that specialized in gold and silver.
  
  
• In 1982, Larry joined Emanuel Capital Management as a senior trader, managing several million dollars in precious metals.
  
  
• During this time, Larry became one of the largest gold arbitrage traders in the world, trading in contracts worth as much as 700,000 ounces of gold in a week, which is the equivalent of $87 billion (in 2004 dollars) in gold annually.
  
  
• In 1982, Larry founded International Commodity Services, Inc., an international commodity brokerage firm with agency offices in Hamburg, Munich, Dusseldorf and Osaka, Japan.
  
  
• Larry's analysis of natural resources and precious metals is frequently sought out by the Financial Times of London, Bloomberg, CBS MarketWatch and other major media outlets.