The Death
of Banking and Macro Politics
Hans Schicht
February 9, 2005
An Obituary to "The
Death of Gold" and "The Death of Inflation" which
were written some years ago by Kenneth Gooding of the Financial
Times, London.
Democracy thrives on personal
liberty and on broad-based prosperity, which in turn depends
on a healthy financial system. And finances are healthy when
the money belongs to the people.
So when we see the red lights flashing with world finance running
amok, discipline out of the door, laws ignored and financial
wildcatting the rule, and people and government in need of ever
more credit, it is a sure sign that prosperity and civilization
are being threatened.
The pundits are talking of a return to a gold standard, a new
Bretton Woods agreement, even of a one-world currency. But none
of these proposals gets to the bottom of the problem and none
will suffice to prevent financial collapse. The reason is simple:
the whole of present day finance rests on erroneous, unlawful
fundamentals.
When we take all the country's assets holding monetary value
in a basket together and at the same time have Bankers around,
that acquired by deceit, the exclusive right to issue additionally
phantom assets in the form of fiat paper money and fiat credit,
then the original asset holders will lose out. The new phantom
assets automatically will become part of the original basket,
where they can freely be used by the issuer to acquire what ever
of the baskets original assets. It does not matter that the phantom
assets will be loaned out to third parties at first. In due time
all newly issued phantom assets are destined to flow back to
the "owner- issuer." In short: the issuer of additional
assets, the Banker, can raid the people's general kitty, as he
pleases, for nothing. And what counts at home also counts for
the investment raids into foreign countries! with phantom credit.
The New World Order wants open frontiers for international finance,
but that is the same as asking the house owner to leave the doors
unlocked for the burglar to have easy access. It would be quiet
another matter if loans would be executed by effectively transferring
gold and silver to the borrower! But that would not be in the
Banker's interest.
To short:
Any permission given to the Banker to issue monetary paper
or forms of credit additional to the original basket is an authorization
to steal, and should therefore be stamped unconstitutional.
The fact that the Banker is allowed to extend credit several
times his own capital base and that the Banking Cartels, the
Central Banks, are licensed to issue fresh paper money in exchange
for treasury paper, have provided them with free lunch for eternity.
Thanks to the stupidity and corruption of the legislators. And
thanks to the great pundits and journalists, that never understood
the crux of fiat money and thus never managed to explain the
blatant, ongoing legalized robbery of the people by means of
the financial fiat system!
For over 150 years this robbery has been going on, recently increasing
hyperbolically and building to an ultimate crisis. Year after
year the Banker's slice of the world's asset baskets has been
growing and growing. The Banker has become almighty. Through
a network of anonymous financial spider webbing only a handful
of global King Bankers own and control it all. Big Brother has
come to us in the striped suit of the Banker.
Everybody, people, enterprise, State and foreign countries, all
have become slaves chained to the Banker's credit ropes. And
on top of being robbed, all slaves are "dutifully"
paying their "legal" tribute in the form of interest
to the same Banker, who is continuing stealing their assets.
If prime ministers and presidents would only be blessed with
the most basic knowledge of the perversity of banking, they would
not go onto their knees to the Central Banker and ask His Highness
for loans, loan extensions or plead not to increase interest
rates! With a little bit of brains they would expropriate all
banking institutions, abolish the Central Banks and put the Bankers
themselves right into jail. Expropriation would bring enough
money into the national treasuries for the people not to have
to pay taxes for years to come. All confiscated assets should
be put in a common trust. Spare us however from the government
ever nationalizing the banks and take over their vile practices
instead of expropriating them.
Modern fiat banking has developed into an instrument of usurpation
and people control. Banking has become a form of government,
"bankdoms," like we speak of kingdoms, republics,
dictatorships, democracies or clerical theocracies.
Only that fiat banking system is much more efficient,
subtle, refined and enslaving and can be computerized. I consider
the United States as the leading "Bankdom," under the
auspices of the King Bankers behind the Federal Reserve, followed
by Japan, England, Australia, Canada and South Africa respectively.
The latter controlled by the Anglo-the Beers financial empire.
The European Central Bank will make sure that also the European
Union is going to become a Bankdom in time. Under Putin Russia
might have stemmed the Banker's advances at least for the time
being. China on the other side looks like having abandoned the
old communistic physical controls and opted for the organizational
and controlling advantages of fiat banking. But in China's case,
married to communist dogma! Argentina is wriggling and trying
to escape the Banker's clutches at no avail. Whereas both Brazil
and Mexico are! in the process of subtly being converted.
How can there be talk of teaching the world democracy by diplomacy
or if not by military force, when at home citizens and government
are enslaved and chained to ever growing debts? Where elections
have become a foregone affair with the billions spent by the
Media and where third parties have not a chance? Where every
dollar received or spent is controlled by the Banker and his
IRS? And overseas, where the New York Banker is making the whole
world America's enemy, enslaving the people into deeper and deeper
debt? Drug pushing or credit pushing, what is the difference?
Monetary reform alone, in whatever form, will not suffice to
bring world finance back on an even keel. Whatever revamped fiat
paper or credit system, it will be doomed from the beginning,
as it will only feed the parasites. Fiat and credit must
be abolished in order to achieve stable finances. People should
learn to live with the discipline of a fixed volume of money
holding intrinsic value, like gold and silver, where no human
interference is possible. Purely reinstating gold and silver
without abolishing all fiat and debt banking will not do. It
is fundamental that nobody gets a free ride and parasites on
the common wealth of the people. What I am asking for is a 180
degree turn in economics and finance.
Growth should solely be financed out of profits. Debt and credit
laundering should be punishable by law. The belief that economies
need monetary expansion to grow is a misconception. The money
already in circulation can do the job alone. Automatically premiums
will appear for the sought after assets, products and jobs. And
discounts will appear for products, services and assets less
wanted. When markets are guaranteed free, then automatically
the money will flow where it will be most needed. When the economy
grows, money will increase in value and so will assets, products
and salaries, but the relative internal balance will not change.
The free market price adjustment mechanism will be more than
able to cope. All will be well as long as there is no threat
of human interference and the law is adhered to. Another misconception
is that society can not do without banks. The only banking services
which might still be needed would be the basic services the banks
started out with when gold and silver still where the only money
around, or custody, transfer and settlement services, but then
only where automation and electronics might fall short.
Additionally, an end should by made to anonymity in business
and spider webbing. Glasnost is needed. Shares should
held by private persons only and no company should be allowed
to hold participations in other companies. Who owns whom should
be transparent to the world.
It all sounds utopist, and the chance of it happening the peaceful
way is minute, but it is the only way real democracy might get
a chance again. If the present system is not reversed, people
will get ever more enslaved in debt and the Banker will become
richer still. 'Til one certain day a revolt will brake,
so bloody and violent, that the storming of the Bastille and
the guillotine will be non-events in comparison. The
rise of world wide terrorism, the protests against the World
Economic Forum, the World Bank the IMF and Globalization are
but early signs of things to come. People are not so much interested
in ballot boxes to vote for the corrupt politicians, that put
democracy aside as soon as elected. No, people want to hold and
manage their money, real money, and hold their destiny in their
own hands. The! y do not want to be pushed around, slaved and
screwed by nobody, let alone by the Banker.
Alas, how far has the Banker not already uprooted peoples' lives
and still goes on pursuing financial aggression. In Mexico, within
his first two years in office, Coca Cola Fox has seen to it that
the majority of the Mexican Banks have come under foreign ownership,
as promised to his sponsors, and seen to it that shorting shares
has become "legalized," ready to raid the markets.
In Argentina, all of last year's protests have not succeeded
in closing down a single of the hundreds of parasitic banks sucking
the country dry. In Brazil the demise of the Banco Safra, has
as good as obliterated the "street" gold market and
paper is now the only game in town. And all over Latin
America Visa and Master Card are on the offensive. The Banker
is marching on
Besides his global banking empire, the New York Banker pulls
the strings as well in Washington as well as in the Pentagon,
the cartel of his defense industries. Never will he cede his
riches and power without a fight. Not a fight he participates
in personally in the public eye, but a fight he orchestrates
from behind the scenes by manipulating the world's most powerful
nation and its resources. With his control of the Media, the
people mislead, with 185 American military bases around the globe,
unilateral military interventions and with the military above
the law, it all bodes ill for the peace of the world!
On the one side there is the
Banker who does not give an inch and on the other side there
is the growing anger of uprooted people.
A currency is only as strong as the power behind it and the Banker
knows it. Afghanistan and Iraq are not turning out as expected.
America's hold over Latin America is weakening. Venezuela has
invited the Chinese to participate in developing its resources.
Brazil and Argentina signed deals with China and Russia. So has
Iran. The dollar is weakening. The world's perception of the
Pentagon's almightiness is fading. Its ultra-sophisticated, expensive
armaments are showing up as obsolete and ineffective against
the cheap, simple and easy to acquire military hardware the Afghani
and Iraqi resistance and the terrorists are using.
Where in its final days the Roman Empire had no enemies of size,
the United States is not as privileged. America does not rule
any longer supreme without equals. Under Putin Russia has recoiled
strongly, its nuclear strike capability revamped, military rejuvenated.
Reborn China is flexing its muscles. A nuclear power in its own
right, with the world's biggest army. Europe and Japan, although
deprived of military teeth, are economic giants equal the United
States.
With Iraq turning into a quagmire worse than Vietnam, the super
power image is wearing off and bluff and jaw-boning are losing
their power, The only backing left for the dollar resides in
America's overwhelming nuclear capability. And it might not be
far fetched that America, pushed into a corner, could very well
be tempted to resort to nuclear power.
However, even taking the recent contrarian developments into
consideration, we should not underestimate the (still) formidable
strength of the New York Banker and his dollar. The greater part
of the world's reserves are in dollars. Most settlements at the
IMF, BIS and World Bank are cleared on a dollar base. Nearly
all the world's commodities are traded in dollars, from oil to
minerals and metals, to soft commodities, not to forget the gold
and the silver! Currency and interest arbitrage are done on a
dollar base. Most international contracts are dollar based. The
days of gold clauses are long gone. All the world's dollar transactions
are passing through New York! Then there are the New York investment
markets where besides the US shares and ! bonds also many foreign
papers are quoted and traded. It gives New York an unique control
of the world's finances, through its transfer and settlement
facilities, arbitrage, investment banking, forward trading, shorting,
options, risk covering and whatever kinds of derivatives, New
York (still) controls it all.
One ancient Greek mathematician once said: give me a long and
strong enough lever and I will move the Universe. So today New
York says: give me a long enough line of derivatives and I will
move the world's finances and markets at will. But all this will
only work as long as America itself is still viewed as strong,
and as long as bluff still works and nobody asks for the "beef."
But New York is not any longer in absolute control. Russia, China,
Europe and Japan, each of them, now also got a grip on the lever.
All trying to pull the lever into their direction, secure their
own interests and make sure that they will get their share of
the quickly dwindling treasures of the world, the exploding world
population craves for. They all have pulled their vital interests
in finance, energy, raw materials and logistics together on macro-scale.
Currencies, copper, wheat, oil, interest rates, gold, all have
become interrelated under their respective geo-political central
commands. The world has become a full house running rap! idly
out of resources and the main players are taking their steps
for survival. Each of the players is holding his cards close
to his chest. Power politics on the highest level and polarization
have become the name of the game. No more individual players
in industry, business, or commerce, no more raw materials, oil,
metals and minerals, soft commodities moving on their own account,
but all integrated with global power interests making and braking
markets through financial directives and manipulation. Today's
markets have lost their natural offer and demand patterns and
are but governed by integrated macro political interests. Forget
about graphs and statistics. Forget about daily movements, averages
and trends. But look at the political developments and events.
Macro managing does not work
out gradually, but is played till the end, when underlying stocks
or assets suddenly run out, the lever does not work any longer
and reality finally bursts forward. And when one lever succumbs
it will take all the other levers simultaneously with it. It
is all going to happen at once, in one big crisis, with the pre-condition
that no major war breaks out earlier. Watch the US long
bond. And what gold concerns I remember what my grandfather said:
"gold goes down before war breaks out."
January 31st 2005
Hans Schicht
Epilogue
To understand my way of analyzing events I wish to say, that
more still than delving in the fundamentals of finance and economics,
my thoughts are with the mysteries of the structure of the Universe,
where I arrived, I must confess, at heretic conclusions, think
about it:
Time is the crux of everything.
Our earth years should be counted as light years as they project
in time-distance. Like: the Dinosaurs lived till 60 million light
years ago. Besides Einstein's relative time there exists after
all also absolute time, Ta, which propels everything in the cosmos
into the future with the speed of light and which is the Primary
Force of the Universe. Light only piggy-backs on absolute time.
We can replace E=Mc2 with E=MTa2 now presenting the Universe.
Where E is the Force of time, or first dimension. Where Ta2 is
the infinite Flatland Continuum or the second dimension, we cannot
see. Floating on top of and born out off Flatland our grainy,
scattered galactic island worlds, the MTa2-s. There are no further
dimensions. Meanwhile, the red shift does not mean that the cosmos
is expanding. Red shift is not space dependent, but time dependent.
When we look back into the cosmos we look back in time. In our
eyes, the objects observed will have traveled less distance into
the future then our earth since whatever cosmic event of the
past. Thus relatively we are traveling faster into the future,
thus the red shift Doppler effect. Without an expanding cosmos,
the Big Bang never happened and the Intelligent Steady State
Universe of Fred Hoyle is re-instated. Black Holes are nothing
else than third dimensional matter dissipating back into Flatland.
It is a vibrant, living and all embracing Universe, directed
and propelled by the "Force," we all and everything
are part of, and not a geographically dead Universe with
three dimensions and time a fourth dimension where life is like
a needle in a haystack. Our souls are like Black Holes, linking
us to the vibrant, intelligent and infinite Flatland Mother Matrix.
And being part of it all, we better live as Greater Nature wants
us. Growth has to come from the bottom up, from grassroots. The
gold and the silver provided for by Greater Nature should be
our money. And parasitic cancers, like the Banks, must be cut
out.
____________
321gold Inc
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