Making real things, and providing real services should earn us real money. Fake money is different. It is not earned and adds nothing to the world’s wealth. Fake money is borrowed from future output, and issued by a criminal bankster syndicate.
On the contrary, real money is not controlled by anyone. It is earned – freely – in win-win exchanges. Fake money takes a different route. It is created by the insiders, and controlled by them. It goes where they want it to go, corrupting politics; which is often completely beholden to it.
Readers may argue that money “stimulates” the economy, and that it “trickles down” to the common people. If so, there is little evidence of it. As a percentage of the working-age population, fewer people have jobs today than at any time since the 1970s. Back then, the typical man had to work 900 hours to earn enough to buy a new pickup truck. Today, he has to work 1,600 hours.
Central banks have increased their own balance sheets by enlarging the world’s monetary base by $20 trillion so far this century. This money didn’t go to the workers. It went to tycoons, billionaires, art collectors, hedge fund managers, and rich people on both ends of the money track.
Wealth built on fake money
People are richer than ever, private assets stand at a record high of over 100 trillion, and are surging in price all over the world. But this wealth was built on fake money. Is this wealth fake too?
Here is the key to understanding debt money, as opposed to real money: Real money is the fruit of past efforts – distilled and preserved for future use. Debt money is a claim on wealth that has never been produced. And perhaps never will be.
As the quantity of real money increases, a society becomes richer and more financially stable, because it’s real wealth.
But as the supply of debt money increases, more people owe more and more money; the economy becomes increasingly fragile, and eventually goes broke.
But if the authorities want to increase the supply of money, the only kind of money supply they can increase is the fake kind. Real money must be earned; like real wealth, it cannot be printed.
And here is the beauty of gold, Central banks cannot create more of it simply because they think there is not enough. That is why gold is such good money. The supply of it increases more or less at the same rate as the economy. More gold usually means more wealth.
Fake money – whether it is the trillions of dollars of Fed debt, or the gazillions of IOUs issued by the central banks of Zimbabwe or Venezuela – operates in the opposite direction. The more it increases, the poorer we become. In an important sense, it puts the cart before the horse.
Here some consequences of the crime cartel bankers that have profited themselves by keeping people – falsely – indebted. All that debt and all those “debt notes, like mortgages” that they have been holding over us are in fact negative numbers. And, a negative number is by definition less than zero. The bigger the negative number, the less than zero value it has. Minus eighty trillion is far less than zero. That’s how much this debt is really worth.
The only way that so much debt can be converted into credit is if it is forgiven. And the only way it can be forgiven is for the living people and unincorporated governments of the world, who are actually owners of this debt, which is the opposite of being debtor, to forgive the debt.
More clearly; this debt represents – besides being worth far less than zero – guilt. Since the only way that such extortionate debt could ever have been accumulated is through criminality.
The greatest rip-off in human history
Hillary Clinton, George W. Bush, Alan Greenspan, Ben Bernanke, Barack Obama, Janet Yellen, Mitch McConnell, Angela Merkel, Mario Draghi, Juncker, Macron, Theresa May, Boris Johnson, Mariano Rajoy, and many thousands of others are implicated, most of whom don’t even realise that they are enabling the greatest human rip-off in history.
These people are the insiders, the lobbyists, the Wall Street cabal, the bureaucrats and cronies in government, the academia, the military/security complex, the medical industry, the mainstream media, and many others. They make up a tightly knit collection of elite pawns who control the government and use it just as you’d expect – for their own benefit.
No matter who is in charge, no matter which party controls Congress/Parliament, these people – with their own internal rivalries and internecine wrangling for favours – are the real deciders. This group is called the Deep State. As most people may have come to realise; government is not really there to serve the “people.” It is there to serve the people who control the government.
The US-federal government, and the unelected EU-clique in Brussels are far too large, with far too many fingers in far too many pies for the elected representatives to keep track. That’s why lobbyists write the important legislation. The politicians don’t even read these complicated rules and regulations.
This infiltration has happened to every government that has ever existed. From ancient Rome, to the court of Louis XVI, to the Soviet Union, there has always been a group of insiders who exert power for their own benefit.
In 1971, President Nixon ended the convertibility of the U.S. dollar to gold. Almost without the rest of the world realising it, the Deep State gained control of most of the fiat currencies. By 1987, they had learned how to use their control to boost their wealth far beyond anything they had ever seen before. But now, they face a new test: Their fake-money system will soon explode, and although their next suppressive system is ready for implementation, the question arises; will the masses accept its implementation, or has a critical mass of awakened people been reached?
Eventually, because of economic law, Gold will have to replace all fake fiat currencies.Economic law demands an honest exchange for things of real value, as currency cannot be revoked. The chaos that will one day ensue from this almost 50-year experiment with worldwide fiat money, will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or Euros.
Bypassing the U.S. petrodollar
Under the current petrodollar system, all global oil sales are settled in dollars. However, the Chinese government recently announced a new mechanism that will allow oil producers anywhere in the world to trade oil for gold. China’s new mechanism will totally bypass the U.S. dollar and the U.S. financial system, along with any restrictions, regulations, or sanctions from Washington. So for many oil producers, it will be much more attractive than the petrodollar system.
This is China’s “golden alternative” to the petrodollar that officially became operational on 26thof March 2018. This system will allow for the large-scale trade of oil for gold, instead of dollars. Here’s how it works:
The Shanghai International Energy Exchange is launching a crude-oil futures contract denominated in Yuan, China’s currency. This will allow oil producers around the world to sell their oil for Yuan. Of course, the Yuan is a fiat currency, just like the dollar. And most oil producers don’t want large stashes of Yuan. The Chinese government knows this. That’s why it has linked the crude-oil futures contract to the option of efficiently converting Yuan into physical gold through gold exchanges in Shanghai and Hong Kong.
The petrodollar has allowed Washington DC to spend astronomical amounts of money on war, but also on welfare and other benefits for over half the population of the United States. This gives Americans a much higher standard of living than they would have otherwise. Most of them don’t know this or understand how it affects their everyday lives.
Thanks to the petrodollar, Washington can also sanction or exclude virtually any country from the dollar-based global financial system with the flip of a switch. By extension, it can also cut off any country from the vast majority of international trade.
This has led the US Deep State into military actions against anyone who threatens the petrodollar system. Is the Deep State that scared about the effects the Shanghai Exchange could have on the economy and on its position as the world’s top power?
According to leaked emails, the U.S.—along with France—feared Gaddafi would use Libya’s vast gold reserves to back a Pan-African currency. This gold-backed currency was to be used to buy and sell oil in global markets. It would have likely displaced the CFA franc—a version of the euro used in 14 central and West African nations.
The U.S. and France backed a rebellion group that overthrew Gaddafi in 2011. After his death, plans for the gold-backed currency—along with Libya’s 4.6 million ounces of gold—vanished.
The dollar is not just a currency. It’s a political weapon, and Washington is not shy about using it. Most recently, it tried to punish Russia for its actions in Ukraine by imposing economic sanctions. This made it harder for Russia to access the dollar-based financial system. So, it’s no surprise that Russia struck a deal to sell oil and gas to China for Yuan afterward.
How big a deal is it that Russia is working with China to bypass the dollar?
Russia is one of the world’s largest energy producers. And China is the world’s largest energy importer. Historically, they were forced to trade with each other exclusively in US dollars.
But the Shanghai International Energy Exchange futures contract will streamline and solidify the process of selling oil to China for Yuan—or effectively for gold. When two of the biggest players in the global energy market totally bypass the petrodollar system, it’s a very big deal.
And it’s not just Russia and China; other countries want to sidestep the U.S. financial system and U.S. economic sanctions, too. China’s “golden alternative” will give them the option to do just that. This will make the US dollar a much less effective political weapon.
Take Iran, for example. It’s the world’s fifth-largest oil producer. And it’s now accepting Yuan as payment for its oil. So is Venezuela, which has the world’s largest proven oil reserves. Others will soon follow. This all makes perfect economic sense. Oil-producing nations can continue with the petrodollar system and sell their oil for dollars. But there’s not much financial incentive to do that anymore. The Fed has deliberately pushed down U.S. Treasury yields to “stimulate” economic growth. And, the system exposes U.S. rivals to the whims of Washington DC.
Now oil producers have a second option. Through China’s “golden alternative,” they can sell their oil for Yuan, then quickly and easily convert it to gold. Unlike the dollar, gold is an international form of money with no political risk, especially, from the perspective of oil producers with poor relationships with the U.S.
Russia may be one of the world’s largest oil producers, but Saudi Arabia is still the world’s largest oil exporter. And a lot of that oil goes to China, the world’s largest oil importer. The Saudis were also America’s partners in the petrodollar agreement back in 1974.
For now, the Saudis are refusing to participate in China’s “golden alternative.” That’s because selling oil for anything but dollars would break the petrodollar deal they made with the U.S. back in 1974. Remember, the Saudis agreed to sell their oil exclusively in dollars in return for U.S. arms and military protection.
On his campaign trail, Donald Trump said, “If Saudi Arabia was without the cloak of American protection, I don’t think it would be around.” He’s absolutely correct. If the Saudis started selling oil for Yuan, they would immediately lose American diplomatic and military protection. But Saudi Arabia is already looking for alternatives to American protection.
This is where the story gets really interesting. Russia and Saudi Arabia have been enemies for decades. The Saudis, along with the U.S., supported the Afghan Mujahedeen that drove the Soviet Army out of Afghanistan. The Saudis also supported a number of Chechen rebellions against Russia. And more recently, the Saudis and Russians were on opposite sides of the Syrian Civil War.
But recently, the Saudi king—along with 1,500 members of his royal entourage—visited Moscow. It was the first official visit by a Saudi king to Russia. The trip coincided with a $10 billion Saudi investment in Russian energy projects and a $3 billion arms deal.
As part of that deal, the Saudis will buy Russia’s S-400 missile system. It’s arguably the most capable air defense system in the world. It’s a powerful deterrent to even US fighter jets.
Ever since the birth of the petrodollar, the Saudis have depended on American military protection. In effect, it’s what they get in return for pricing their oil in dollars. The Saudis are hedging their bets. Firstly, they’re not buying an American-made air-defense system. Secondly, they’re buying a Russian air-defense system that’s capable of deterring an American attack. The House of Saud is making significant moves, in other words, to give itself alternatives to American protection.
Last August, Saudi Arabia announced it was willing to issue “Panda bonds” to finance its government spending deficit. Remarkably, these are Yuan-denominated bonds from non-Chinese issuers, sold in China.
The Saudi currency, the riyal, is pegged to the dollar. Up until this point, Saudi Arabia has exclusively used US-dollars for all of its major financial initiatives. Issuing debt in Yuan is a significant move. It means that financially, Saudi Arabia is drifting closer to China.
A few years ago, Saudi oil made up for over 25% of Chinese oil imports. They were Beijing’s No. 1 supplier. Today, the Saudis’ market share has dropped below 15%. The Saudis are losing massive market share and getting pushed out of the biggest oil market in the world—mainly because they refuse to sell oil to China in Yuan.
China has made itself clear. It’s willing to expand business with anyone who will accept Yuan as payment. If the Saudis bow to Chinese pressure, where does all that leave the petrodollar system? The Saudis haven’t made a clean break with the U.S. and the petrodollar, yet. But they are drifting toward China financially and Russia militarily. These moves are already sidelining the petrodollar. The Saudis are clearly setting up the option to dump the petrodollar.
If the Saudis start to sell oil to China in Yuan, it would kill the petrodollar overnight.
Short of that, things still look very dire for the petrodollar, thanks in large part to China’s “golden alternative”— the petrodollar is in a significant phase of erosion.
The increased demand for gold from China’s “golden alternative” to the petrodollar is going to shock the gold market. And this demand shock clearly hasn’t been priced into the gold market yet. As many readers may be aware, gold is still down significantly from its 2011 peak. As the petrodollar dies, gold is going to replace it as the go-to currency for oil trade. That makes the yellow metal the single best way to profit from this imminent major shift in today’s monetary order.
Meanwhile, China, Russia and Zimbabwe announced their gold backed currencies on Sunday night April 1. The US gold backed note came on line on April 2 when the markets opened. Rumours are heard that the RV for the general public would start on April 9.
China and Zimbabwe have announced a partnership of cooperation. This will lead to Zimbabwe switching to a gold-standard. Once Zimbabwe switches to a gold-standard, that will lead to the U.S. announcing the gold-standard (USN).
“Note that the USD is already gold-backed and is listed under the new financial system as “United States Note (USN)”.
Millions Will Lose Everything! GDP Deteriorates
Millions of people will lose everything. So many sources are looking for a place to blame the coming economic collapse on. The Fed called this a long time ago when they announced they were beginning to end accommodation. This is the perfect excuse to direct policies through Federal Reserve intervention. The recent GDP numbers show the size of the slide in productivity.
From the above video, it can be concluded and is accurately revealed that the FED is a foreign organisation:
“Basically… if the Federal Reserve was inflicted upon America by a foreign power, it should have been considered an act of war.”
Join Mike Maloney and Stefan Molyneux, as they explore the unintended consequences that await us due to the immoral acts perpetrated on the people by government and the Federal Reserve System. 4 min.