Tuesday, May 01, 2007
The Fix Is Built In
"It would be nice for a replay but it's not going to happen. Because you require massive debt/money supply inflation...In 1970 the Total debt/money supply was 1.5 Trillion dollars and Gold $35 an ounce as set by the Government of the USA according to the powers the US government has in the Constitution to regulate value. It's currently $42.2222 an ounce. Between 1971-1973 The 1944-1973 Bretton Woods rules of the Global system of fixed exchange rates could no longer be sustained and the rules were changed to the floating exchange rates.
"Record High Gold Price in US Dollars The previous all-time record high gold price in US dollars was reached on 21st January 1980, fixing at $850.00 on that day's p.m. fix."
"Highest Ever Gold Price in Pounds Sterling On Wednesday 10th May 2006, gold reached its record highest price ever in pounds sterling, the morning London Gold Fix was £378.249, beating the previous peak of £371.066 on 21st January 1980, although in US dollars it is still 15% below its $850 peak."
By 1980 the Total debt/money supply was 4.4 Trillion dollars and GOLD was 850 dollars an ounce.
Inflation of the US debt/money supply from 1970 to 1980 was just under 200% The inflation in the price of Gold by speculators was about 2300% The total public debt or Federal Government debt was 368 Billion dollars in 1970 and by 1980 was 845 Billion dollars. An inflation of 129% size of the Treasury market.
The FED does not set rates...The Bond markets set rates. So from about 1954 where yields on the 10 year were 2.29% to 1981 where Yields hit 15.32% on the 10 year Treassury...Bonds were in a bear market. Yields in 1970 were 7.79% so from 1970 to 1981 yields basically doubled. Meaning the supply of bonds was greater or increasing faster than demand for them. Gold was in demand more than bonds obviously. Then what happened? The top who does all the buying and selling switched from selling Gold to shorting Gold to all the speculators and began buying bonds and equities. Causing Yields on bonds to drop while the price of them was bid up and the price of equities in the stock markets to begin shooting up. While the speculators unable to sustain the rise in price of Gold any longer also began selling gold causing the price of gold to implode.Face the facts...
Once you remove all the babble to justify the bets you all are placing you all are speculators...All in search of yield. The top do all the buying and selling in the markets and the speculators follow along. When the top is buying or covering their positions the bottom is selling like mad and when the top is selling or shorting their positions the bottom is buying like mad. The top invented and owns all the greater fool games that you all play while foolishly thinking you are investors and that the greater fool games are stock markets in a so called free market system.
On May 17, 1792 a group of twenty-four traders gathered under a buttonwood tree at 68 Wall Street in lower Manhattan, NYC to negotiate the conditions and regulations of the speculative market. The result was the Buttonwood Agreement, a simple, two sentence contract.
The New Yorkers dedicated the Tontine Coffee House in Wall Street as their exchange in 1793. In 1817, they formed the New York Stock & Exchange Board with its own constitution and bylaws; its name was changed to the New York Stock Exchange in 1863.
"We the subscribers, brokers for the purchase and sale of public stock do hereby solemnly promise and pledge ourselves to each other, that we will not buy or sell from this day on for any persons whatsoever any kind of public stock at a less rate than one-quarter percent commission on the specie value of, and that we will give preference to each other in our negotiations."
You all have zero idea that the whole system is just one huge milking machine from the bottom to the top and that you all popped into existance within it and have been milked your whole lives...It did not become corrupted...It has been a scam from square one...It's just now that some of you are beginning to wake up from the daydream and catching glimpses of the nightmare that you think it's corrupt.
The SEC? created by the top to fool you all into thinking that there is a guardian protecting you. The SEC protects the owners of it. All the fines it imposes are chicken feed compared to the gains...Just smoke and mirrors to mesmerize the mass of speculators...
In order for a replay of the 1970's to take place you need to invent a Time machine and go back to 1970. Currently the Total debt/money supply is 43 Trillion dollars and GOLD is 624 dollars an ounce. Inflation of the US debt/money supply from 1970 to now is just under 2300% The inflation in the price of Gold by speculators from 1970 to now is about 1600%
The median price of Homes in the USA was $23,000 and now it's $230,000A 900% increase.All due to the 24 year bull market in Bonds...Where the supply of bonds is lower than the demand for them causeing them to be bid up in price and yields down. To sustain this fantasy world you all live in the bull market in bonds has to continue forever past zero which is impossible...Or the 35 year old real estate bubble that is the primary source of new debt/money will pop and the debt/money supply will stop growing and begin shrinking. All the prices of everything that have been inflating for decades will begin collapsing as well.
And no the FED is not, even if they had the ability, going to inflate the money supply to keep the price of gold inflating for the gold bugs so their feelings are not hurt by the snuff out of their hopes and dreams. When the time comes the top along with the rest of their rich bootlicking/worshiping servants will just short everything to oblivion.That's what happens when the rich getting richer poor getting poorer cycle reaches maximum potential."