Two Sipper: Read with coffee or correct tea

...This cable was prepared by the U.S. Embassy in Beijing and was sent back to officials in Washington, D.C. {Wikileads} The embassy was commenting on a recent report by China's National Foreign Exchanges Administration...

China's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. [The U.S. and Europe] intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or euro.

Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB [China's currency]. ....

Devaluation Planned

The FED, now, admits to a plan to devalue the dollar, which is a direct stealing of you property.

Recall, the FED not being part of the government, but a collection of banks. Those banks control the president's policy. So much for a national government of the people. It is government by Goldman Sachs. You work for the banks as well as the U.S. Treasury.

This is from way back in 2010:

"...Devaluation is the intention, and devaluation is what is going to happen,” Avinash Persaud, Chairman of Elara Capital told the Forex Forum conference in New York on Tuesday.
We can surely expect the U.S. to deny this, as Treasury Secretary Timothy Geithner did in October, but the truth will be seen in the foreign exchange markets, where the dollar has been falling and will fall further as the year winds down.....

The Red guy is your government

They no longer deny it.

Now, we will all have to understand why someone would buy a negative-yield bond. If you are interested, I am putting together an offer for people to invest in Canada and preserve wealth. Let me know if you want an offer.

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Federal Reserve and Big Banks Are Going to Crush the Dollar … and American Savers

Posted on February 13, 2012 by WashingtonsBlog

The Fed’s EXPLICIT Goal Is to Devalue the Dollar by 33% … and NEGATIVE Yield Bonds Are Coming

The Federal Reserve’s explicit goal is to devalue the dollar by 33%.

As Forbes’ Charles Kadlec notes:

The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.

***

The Fed has announced a course of action that will steal — there is no better word for it — nearly 10 percent of the value of American’s hard earned savings over the next 4 years.

While that is stunning, it is actually par for the course for the Fed:

Here’s a chart of the trade weighted US Dollar from 1973-2009.

And here’s a bonus chart showing the decline in the dollar’s purchasing power from 1913 to 2005:

The giant banks – through their treasury borrowing committee headed by JP Morgan and Goldman Sachs – are also demanding the issuance of negative yield bonds. 

In other words, the too big to fail banks want Americans to pay to have the luxury of holding their money in bonds. 

American savers – and especially those living on fixed incomes and pensions – are going to get creamed.

A thought about what we now accept

The President of Germany has resigned in disgrace over an ethical impropriety. This happens in the midst of a financial crisis the nation is attempting to lessen for all of Europe.

Compare the following quote with what we have become comfortable with regarding those who hold our public trust. Tony Rezko would be baffled. In the end, people get the government they deserve. In the end, morality and honor are the basis of a solid community and nation. The honorable people still left in the United States, and there are many, continue to be removed from the mainstream or from feeling a contact with their government, as in Germany under Hitler.

The scandal surrounding Mr Wulff escalated in December.
At the centre of the row is the story - first published by the Bild newspaper - that Mr Wulff received a low interest 500,000 euro loan (£417,000; $649,000) from the wife of a wealthy businessman in October 2008.
Mr Wulff was later asked in Lower Saxony's parliament if he had had business relations with the businessman, Egon Geerkens, and said he had not, making no mention of his dealings with Mr Geerkens's wife.

A sign

A report from the Treasury International Capital System (TIC) – a division of the Treasury Department that collects data on the flow of investments between U.S. residents and foreign entities – shows foreign governments are still dumping U.S. government debt. Russia has dumped Treasurys for the 14th consecutive month. Russia's total holdings stand at a multiyear low of $88.4 billion, half the $176 billion from October 2010.

And China sold $32 billion in U.S. debt in December, bringing its holdings to a post-2010 low of $1.1007 trillion. Total Treasury holdings by foreigners declined from $4.75 trillion to $4.732 trillion in December.

PLEASE LISTEN: Standsbury lecture

As I have noted, I am winding down this particular blog. Its done what it can. It has even focused my own concerns. If you do nothing else regarding your safety, please listen to the lecture below. 


As a farewell gift, please accept the accompanying lecture by Porter Standsbury.   


========

It does not matter who you are or what you are up to. This lecture is about financial and, perhaps, physical survival in the very near term. Yes, near term. Porter even mentions what I have written about: the normalcy bias. That is the inertia of the human mind that something new will not happen, even as you get into a cattle car.  Once reality clicks all the clever investment you may have will be rendered meaningless, unless they are puts. There will be a new normalcy, very Grecian in flavor.

Remember, I told you to buy silver at $11 and peanut butter. Indeed, it is a good time to buy more. Consider I may be on to something.


The lecture is long and requires attention, though it is brilliantly simple to follow.  A pencil in hand would be a good idea. Much of it, you have heard from me for years, but this presentation puts is all in one place. I can say no more, nor criticize the outlook presented. You don't need to buy anything. (I am guessing the 4th investment is diamonds).  


I noted in 2009 how the stock markets in the economic collapse tracked nearly to the day the Great Depression. It sill does and there is cliff directly in front of us. (In Standsbury)  More than a technical offering a technical prognosis, the lecture reviews the death of our dollar and the con game in Washington - one that will end in an instant as draconian measures will become law. 


It is the Depression on steroids. (He notes the Shadow Statistics find our unemployment rate is now 22.5%. The statistics game in D.C. is to lull us into complacency as the traps are being set. There have been no increases in Social Security benefits for three years because the government see no inflation.)


The army has already been given the authority to patrol our streets and arrest us. We have concentration camps. Republicans, by the way, voted FOR these items.  A conspiracy theory?  You decide.

You want to stay clear of riots and rioters, some of whom are already being primed as provocateurs - the Wall Street useful idiots.  Nothing, nothing I have warned against or that is in the lecture is untrue. All you hear from D.C. and the major D.C. outlets is pretty much a lie, in that subtle spin regarding essential statistics is an absolute lie.


The end comes the day after the government cannot sell Treasury Bills - other countries have decided they do not need to put up with further theft in the form of inflation (the devaluation of the dollar, not the cost of peanut butter). That day, the music stops AND you have no chair to sit in. Get out of the game now.


The U.S. dollar is finished as the world's currency.  PERFECT VIDEO. Other nations are already organizing its replacement. Soros continues his slaughter. By itself this reduces our standard of living by a estimated 25%. Those exposed to large mortgages and stocks could be cleaned out.  (But, if you can, get a fixed mortgage right now.)

A temporary dictator who did not indulge in Keynesian fantasy could fix things, then ask us for a contributions. Add that to the coming oil and gas revenues, especially once Obama is gone, we might survive. In a healthy family, everyone will contribute to the household, but we have a boarding house run by the Artful Dodger. No one will trust the current government; no one will consider it their ally. It is either your pusher or a sneak thief, but it is not family. 


We have, in the presidency, a socialist follower of Alinsky who has been trained to collapse the system, this is no theory, so a central government can take control. So, if we decided to stop using services and contribute money to the common crisis, the government would steal the new money and transfer it to friends and constituents. 


Therefore, I see no possibility of salvation. The government will commit suicide and the death will blamed on "capitalists," those people who brought you the highest standard of living in history. Say good bye to your retirement funds, your extra car, and, for many, your home.  If you are over 70 years of age, just go die, please, but you could get free contraceptive pills.


If you want to protest this theft, the army will be waiting. If you think this cannot happen, why was the posse comitatus repealed New Year's Eve? That condition was the norm. Why are there concentration camps?  Are they normal? 


There is no advantage to pointing out our dull populace voted in the conman of the conmen; indeed, the GOP leaders are nearly as bad. The whole crowd is poisoning us. It is better that I urge you to get out to political meetings and clubs, now, today, to replace the incumbent statists. Run for the school board.  There are no more spectators in this game.  


There is work to be had to correct what we have ignored.


====


Finally, I have arranged a way for you to lend a Canadian company (I am a partner) as much money as you like. You will get a horrible interest, so we can easily cover it, BUT THE ASSET WILL BE IN CANADIAN FUNDs and will be out of the reach ands scope of our government, unlike your 401(k) or IRA. You can still pay tax on your interest and remain legal.


If the world were not about to change, the loan would be stupid.  You have decide what tis about to happen.


Let me know, if you are interested in making a loan.  I am working on writing up a term sheet.

Penultimate Aloah

I am going to end all this blog stuff, soon.  In addition to too much legal work, there is too much going on in this country.

Cassandra's dilemma shadows me, as it has become pointless to point at the obvious. So, I will organize some sort of farewell, close Facebook (not that I use it), stop using Gmail, and Google.  If you are unaware why, there you go.  You better look into it.

A few things to consider:

1. Our lovely government again (OLGA, I made this up) has instituted a mortgage tax.  Yes, a federal tax on new mortgages. This will depress prices, of course. This is the beginning.  This crap passes quietly through Congress while we all talk about the Giants destroying New England.

2. Predators fly over Manhattan.

3. There are dozens of concentration camps already in existence under the misnamed FEMA. They are complete with inward-facing barbed wire, so they are not for friendly use, and are on rail road lines.

4. As of 12/31, the Army can come and arrest you and hide you. Bye bye

5. The two recent bills aimed at controlling the Internet, the last bastion of free speech, were shouted down by the likes of Wiki etc., but a few months ago Obama secretly signed a treaty that is going around designed to control the Internet (oh, it is supposed to be about intellectual property.) In the America I remember, treaties were ratified by the Senate, but, of course this Senate is a combination of Marxist and simpletons in both parties.

6. The GOP candidates are statists who have no idea what a "conservative" is.  They are, essentially, despicable people behind false smiles. They play handball on the Fox channel.  All establishment - statist control. So, you have statist collectivism on the left and statist collectivism, but cheaper, on the right.

7.  The GOP is promoting Jindal and Rubio for VP.  BOth are not naturally born citizens - take your Constitution and shove it.  McCain wasn't either, when you find the real facts. So, both parties are ends justifies the means gangs.

8.  Etc Etc.  There is a daily barrage of insults to freedom and those who see it merely sit around and simmer waiting for the elections, if they happen, of course. As it is, the leftist are planning a violent year, they are pushing for violence that requires troops to quell.  Now that the troops can act in the country.

9. Worst of all peanut butter is going to  sky rocket.

10. The UN is creating a policy where nations agree to unify food, air, and water into one controlling entity.  The Codex Alimentarius is still around.

11. Buffet can do all the insider trading he likes, along with Soros. GE gets contracts build stupid things. Green energy companys take billions in cash and declare bankruptcy. The EPA is blocking the pipeline from Canada so we will not have 40,000 new jobs and energy independence.

All is purposefully chaos designed to tighten the strangle hold on all of us. Go Giants.

So, anyone who sees what is going on, doesn't need me.  Anyone who cannot, won't.  It is better to concentrate on grass roots elections and exit routes.  In the past few years, you have suffered through my calls to arms and you should likely see that I am usually right. So, why not go along with me.  It can't hurt and it could save.

I will get a gun pretty soon, sad to say. If you want to get cash out of the country you can lend to a company I partly own in Canada.

Note: My hysteria about inflation was premature,  since China has floated its currency and is now in an inflation cycle. So, you have until after the election until all hell breaks loose. The inflation will, then, drop in for a decade or so.  Dump that cash. Once you hear OLGA could not sell many treasury bonds at an auction, fill your gas tank.


Gene