Saturday, October 4, 2008

Lynch Paulson



"...our Treasury Secretary Henry Paulson was CEO of Goldman Sachs, and he told us that our banking system was sound for over a year, when he knew it was not. Mr. Paulson is no hero; he is a liar and a criminal."
-Bob Chapman, The International Forecaster

Damn right! And that S.O.B Paulson should be taken into custody immediately before he leaves office and flees the country. Unfortunately, our government, firmly under the thumb of the banking elite, will do no such thing. Hanky Panky is their savior. The coup by the banking industry to take over the US Government is now complete, with Hanky Panky now installed as der Fuhrer. Of the people, by the people, for the people? Yeah, right. Today it's of the banks, by the banks, for the banks.

If you had told me five years ago when I began investing in the Precious Metals and their mining shares, in anticipation of today's financial calamity, that prices in this sector would be "falling without a net" I would have laughed you into the next county. The fact that the Precious Metals and their related mining shares are being lead lower by crumbling futures prices on the CRIMEX should be all the proof the world needs that crime DOES pay. It should also be proof beyond a reasonable doubt that the world financial system is indeed F'ed up to the nth degree. Precious Metals prices should have been, and still be, rising exponentially since the day the Bears Stearns bailout was announced. Unfortunately, that has not been the case. One can only surmise that Precious Metals futures prices have been falling because of one of two reasons, perhaps both. The government is using it's monopoly money to short the futures market to suppress "paper" gold prices, OR the world is selling out and running as fast as it can from the paper Gold market in search of the real thing realizing that there is NO Gold in the CRIMEX vaults. It should also be considered that there is NO Gold left in Fort Knox either, and the USA is effectively penniless forcing the US Government to "control" the price of Gold, and inturn it's eventual debt to the entire planet. Why else would the US Government be deathly afraid of a rising price of Gold? Once the default of America's debt is official, the world is going to demand it's Gold hoard to cover their losses, but the emperor has no Gold. We would be lucky as a nation to be only DOOMED. Lacking the Gold to pay off it's global debt, the World will demand that the US surrender the country. We won't, of course, and World War Three will ensue and destroy the Planet. Game Over. So you see, it would be a good idea to get Hanky Panky into custody and prosecuted for his crimes against the country now, becasue nobody will be around to do it later.

The Month When Reality Invaded
SEPTEMBER 15
Paulson would have officially agreed with this optimism prior to September 15. He reiterated again and again that the financial system is fundamentally sound, that there is no threat to the banking system, and that people should not panic.

On September 15, Lehman Brothers Holdings declared bankruptcy. Merrill Lynch had become a subdivision of Bank of America the day before.

On September 16, at 10 in the evening, the Federal Reserve announced an $85 billion bailout of AIG, the nation's largest insurance company. The FED was buying AIG's about-to-be worthless stock. This was the first time the FED had ever publicly bought equity in a company – a dying company.

On September 18, Paulson clearly panicked. He told Congress that it had to pass a $700 billion bailout of the financial industry. The banks had loaded up on mortgages that are going bad, and this threatens to topple a highly leveraged series of dominoes all over the world. None of this was visible to him the week before. If it really was visible, then he was lying through his teeth, as high government officials are expected to, when he assured the public that there was no fundamental threat to the economic stability of the American economy. So, he was revealed as either a liar or a completely ill-informed high official. He is supposed to be second in knowledge only to Bernanke, but the two of them have imitated a pair of drunks, staggering home in the dark, arms wrapped around each other, each hoping that the other will not fall.

http://news.goldseek.com/LewRockwell/1223228024.php

Central banks favor gold as crisis unfolds
LONDON (Reuters) - Sales of gold by European central banks are likely to be lower than expected over the next year as the global banking crisis boosts bullion's appeal as a "safe" reserve asset.
And banks elsewhere in the world, most notably in Asia and the Middle East, may even become buyers of gold in an attempt to diversify their reserves away from the dollar, analysts say.

Under the terms of the Central Bank Gold Agreement, signed in 1999 by key European institutions including Germany's Bundesbank and the European Central Bank and renewed in 2004, members can sell up to 500 tonnes of gold a year.

But in the fourth year of the latest agreement, which ended on Friday, sales fell well short of this ceiling, to just over 357 tonnes.

With banks worried by the outlook for the financial sector, sales could be even lower in the final year of the pact.

"Given the damage done to a lot of other paper assets that were formerly considered secure, there will be greater risk aversion among central banks," said Philip Klapwijk, executive chairman of metals consultancy GFMS. "This will only boost gold's status within central bank reserves."

A key reason why central banks want to hold onto gold is the instability of their most common reserve asset, the dollar.

Bob Chapman, The International Forecaster
The Illuminati will now act like drunken sailors at a keg party. They will drain the keg in short order, and then ask for more. If they do not get what they want, they will get rowdy, pounding the tables with their mugs and threatening a brawl that will destroy the tavern if they do not get their next round, pronto. Out comes the next keg, which gets drained even faster than the first because everyone is inebriated, and the next round of table pounding and threats becomes manifest. This process will proceed until everyone at the party has more than they can handle and passes out. Then comes the derivatives tsunami that will drown them all in a sea of counterparty risk, an event which will be used to usher in a new Orwellian, corporatist fascist state, where the financial, manufacturing and other major industries are all nationalized. We, and our European and Canadian counterparts, will all then resemble our fellow fascists, Marxists and dictators in Russia, in China, in the Middle East, in Asia and in South America, and the formation of world government will seem like the most the most natural thing to do, when everyone is on the same page, after the pesky, arrogant United States has been humbled into submission.

Gold, silver to jump on US rate cut tomorrow
The charter of the Federal Reserve allows its chairman to make rate cuts of up to 0.5 per cent at his discretion in between official meetings to set rates. Expect such a cut as soon as tomorrow morning.

The paralysis of the banking system is reaching boiling point with inter-bank rates soaring and the true cost of borrowing prohibitive for corporates. This will cause a chain reaction of financial and business failures if it is not quickly dealt with and Fed chairman Ben Bernanke has no illusions about what is at stake.

He will also have observed the poor response on Wall Street to the final passing of the $700 million bail out package. By delaying this law the Congress may have undone its main purpose: restoring confidence. Cutting the Fed base rate is one more card to play in this increasingly desperate game.

We should expect the Bank of England and the European Central Bank to follow suit - although the ECB left rates on hold last week and could take its time as usual.

That ought to mean a weakening of the US dollar - and this can be afforded after recent gains for the greenback. Gold will also rise as the dollar falls, and with it silver.

Precious metals are safe haven assets, particularly as currencies lower interest rates and enter a period of competitive devaluation. What is the best currency in a devaluation cycle? It has to be the one in fixed supply, and that can only mean precious metals.

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