Libya and the Gold Standard

Libya and the Gold Standard

Libya’s Move to the Gold Standard led to Civil War

A few years ago the Libyan general Muammar Gadhafi was forcefully removed from power.  It was a tough time from for that North African nation, considering the casualties from the invasion that took place at the time.  There was a general insurrection that took place and people were generally divided into two: those who were on the side of their leader and those that weren’t.  Many lives were lost and there was a lot of speculation that occasioned such an incident that took place in a country that had never had a history of war.

Libya’s Central Bank and the Gold Standard

Part of the reason why Libya was attacked is because they had their own central banking system.  What this means is that they used to control their own currency,  were planning a move to a gold standard and it didn’t help that they were the largest oil economy in Africa ahead of Nigeria and Algeria. There was no way for the powers to be in the world to get a foothold in the oil money which they have no control over,  and so what better way than to find a good reason to get into that country and get that control that is so crucial to making the big economies bigger.

Trading in the Libyan dinar and the Gold Standard

Colonel Muammar Gadhafi was an eccentric character, but he was by no means a fool. He had a made a declaration of how his country would stop dealing or rather trading with the currency of US dollars, and to commence their trade in the Libyan dinar.  The Libyan dinar was to be a gold standard currency, and it was gaining popularity in the country and in the African continent at large.  It was an ambitious plan that would ideally drive the dollar out of business.  The fact that oil would be traded in the gold standard dinars would easily have made Libya a powerful player in the world economy in no time, and that didn’t please very many people as you would imagine.

Gold Standard and the Lots of oil
gold standard

Gadhafi intended that the oil producing nations in the Middle East should come together and do business in a nationalistic sense,  which implies that they would be directly involved in setting prices.  He was clearly disturbed that the oil producing countries weren’t making as much money as they potentially could if only they had the right strategies for the same thing.  That stance didn’t go down very well with the world powers once again,  and that potentially played a crucial role in the invasion of that country.  It was a hard time,  and no one ever wishes that to happen that to his or her country,  but it did happen.

There is more to this Libyan invasion and the gold standard than meets the eye.

Could This Be The Right Time To Invest In Silver and Gold ?

Could This Be The Right Time To Invest In Silver and Gold ?

Why Is It The Right Time & Place To Invest In Silver and Gold

There are things which have been happening in the world of money today which make it worthwhile to re-consider the factors surrounding fiat currency.  Fiat money has got some limitations which are dealt with by a different mode of currency unlike silver or gold.  The main reason why fiat currency needs to be reconsidered,  lies in the fact that it more or less benefits a few people,  something which isn’t good by any standards of it all.  Invest in silver and gold is a good commodity to consider as something to be purchased now for a variety of reasons:

 

Central Banks Invest In Silver and Gold

Silver always comes with a definite bank guarantee because the value of silver always rises in an exponential sense.  At the time when it appears as though it is hard to fathom the price of silver or gold has dipped,  the wisest thing to do is to invest in these precious metals because the price more often than not will always rebound upwards again.  The banks know from historical factors they are always ready to deal with this kind of business.  As the price remains low Central banks across the globe have been quietly buying Gold & Silver.

Invest In Silver and Gold As Fiat Currency Is Risky

Investing in the fiat currency isn’t a good thing because of the rate of inflation, devaluation, quantative easing in the world we live in today.  There is so much drastic changes in the value of paper currency, so much so this is dangerous to trust. What does the future holds if all you have is paper money? It doesn’t help that the fiat currency is always controlled by the central government and no one can do anything about it – casing point, just look at Greece.  It is simply dangerous business. The same cannot be said if you were to invest in Silver and Gold.  Where the individual persons have a role to play in how their investment is run, and they can even influence it in whichever way they want to.

 

Currency War has begun its time to invest in silver and gold. The world is facing a currency war,  half of the world’s trade is invariably linked to the US dollar.  This means if the US dollar is affected then the financial world will feel the economic tsumani.  The danger is, it makes coming up from the black hole of the financial crisis a near impossible process.  Gold and Silver will face a crisis,  there will be a shortage when the stock market crashes and paper currency becomes worthless, this is why people should choose to invest in Silver and Gold now rather than later.

invest in Silver and Gold

Once this is daily news then the madness of the crowd to buy the precious metals will prevail.  As we know economic upturns or downturns precedes the news and the time is right and the time is right now to invest in gold or silver.

 

50 Reasons Why You Need To Invest In Gold or Silver

Many Reasons Why You Need To Invest In Gold or Silver

  The following list started off at 20 reasons why,  but quickly grew to 45.  By the time I finished this article it grew to 50 reasons why you need to invest in gold or silverThere many events happening in the world right now,  making it difficult to know where to pin the tail on the donkey.  In most instances it boils down to a few things,  first off “follow the money”,  second “divide and control”,  and finally “report quarter truths,  half truths,  anything but the truth”.

What all this leads to is,  as renowned expert Jim Rickards calls “The Avalanche Theory” as any one or a combination of these events will cause a total failure in the global markets.  “Which events?” I hear you ask,  this part nobody knows for sure,  however, I will list my top 7 reasons at the end and hopefully convince you why you must invest in gold or silver.   Keep an open mind,  perhaps you have heard some of these stories in the news,  but couldn’t join the dots as to why and how this may affect you.  So relax, enjoy a cuppa and read on…

50 Shades of Why You Need To Invest In Gold or Silver

    1. The Ukraine / Russia stand off
    2. Economic sanctions on Russia,  which has backfired on EU countries more
    3. On going trouble in Libya
    4. Greece’s unpayable debt
    5. 1 trillion Euro’s being printed by the European Central Bank (ECB) in the latest round of QE
    6. Russia & China just signed a $400Bn Gas pipeline deal trading in their own currency, by-passing the world reserve currency (the US dollar)
    7. Deepening crisis in Syria / Iraq with ISIS
    8. China,  Russia,  India buying tonnes of gold and silver – a great reason to invest in gold or silver
    9. Brazil,  Russia,  India,  China & South Africa (BRICS nation) created their own version of the US infuenced IMF
    10. China is the largest net importer of Saudi oil,  which may well signal the end of the ‘petro-dollar’
    11. Billionaire investor George Soro’s sold his shares in JP Morgan,  Bank Of America &  Citigroup investing in gold mining / tech shares
    12. HSBC bank buys $876 Million silver bullion bars from Poland
    13. US Federal Reserve not allowing a full audit on its gold.  Leading to suggestions its been loaned out,  stolen or sold off
    14. World reserve FIAT currency life span is on average 35 to 40 years – the US dollar is 43 years old
    15. Germany,  Holland,  Venezuela repatriating its own gold reserves from foriegn vaults.  This is a message in itself – another reason to invest in gold or silver
    16. China telling its people to buy Silver (as a cheaper alternative to gold)
    17. US debt now running at $70 trillion,  according to some experts this figure may well be higher.  US debt to GDP ratio 411%
    18. In 2016,  2.2 million baby boomers will reach pensionable age of 70.5 years in the US.  With an average of $50k in their pension pots this will be a huge draw down on the stock market
    19. European nation in debt crisis – Spain, Portugal, Ireland, Italy, Greece and France all over 100% debt to GDP
    20. Ever increasing snooping laws creating a Police state,  just like Germany did under Hitler
    21. Currency devalution is simply passing inflation onto other nations, hence the Palm Springs uprising where the locals could not afford daily staples ( Even more reasons to invest in Gold or silver )
    22. UK debt now running at $6 trillion,  this includes public sector pensions,  state pensions and the bank bailouts.  This equates to 240% debt to GDP
    23. NO real growth in any of the western economies,  despite mainstream reports
    24. Cheaper oil prices hurting other oil exporters, such as USA,  Russia,  Iran,  Canada
    25. Countries trading in local currencies or commodities,  signalling a loss of faith and real shift from the world reserve currency the US Dollar
    26. Russia dumped $26 Billion or 20% of its US Treasury Bond (US debt) in March 2014,  bought by chocolate maker Belgium.  Signalling a loss of confidence in the US
    27. Companies buying back their own shares to keep the stockmarket prices artificially high, allowing senior management teams to receive large bonuses
    28. World wide housing bubble
    29. Deepening racial tensions between black Americans and white Police officers.  These protest cost millions to police
    30. G20 signed a “Bail-In” bank law allowing banks to steal your cash should they fail
    31. Cyprus stole,  oops ‘Bailed-In’ users savings from personal bank accounts to save the ailing banks and issued shares in their near bankrupt banks instead
    32. Financial Services Compensation Scheme (FSCS) dubious bank depositors guarantee scheme.  The FSCS has £306 million in cash holdings to cover roughly 30 million personal bank accounts, this equates to £10 per account should the banks collapse,  just like RBS, HBOS, Lloyds-TSB in 2008
    33. Introduction of Bitcoin and other crypto currencies to by-pass the central banks control and manipulation of the economy.  Crypto currency can be a good, alternative investment alongside to invest in gold or silver
    34. Market price manipulation of the financial and commodities sector, i.e., Libor, Gold, etc
    35. 500 year power swing from East to West, now heading back East.  As gold and silver head back East this is a fantastic opportunity to invest in gold or silver
    36. 7 year economic cycle –  previous crashes 2008,  2001, 1994,  1987 going back to the great depression when the big crash occurred in 1931.  According to the Jewish calendar the next semitah is due 15th Sep 2015.  The semitah has coincided with stock market crashes
    37. Poland, Hungary, France, Bulgaria, Argentina ‘repartriated’ personal pension funds to ‘shore-up’ their failing economies
    38. On cue for the 100 year currency war,  1914 Weimar Republic (Germany),  1814 Napoleon,  1714 South Sea Bubble, 1619 Tulip Mania
    39. Over 50% of the working population are employed by the Government as oppose the private sector.  This means more debt has to be created to pay for Government employees.  This includes national,  regional,  local government,  schools,  tax collectors,  Highway maintenance,  Environmental Agencies,  Prisons,  Police,  Fire,  Health,  Intelligence and the Military services
    40. Stock markets are on steriods – artificially high as pre-2008 levels,  yet no real growth in GDP terms
    41. Silver & Gold set to rise in price,  even more reason to invest in gold or silver
    42. Your Government backed by Central Banks created this mess, do you honestly think they will look after you when the ‘proverbial hits the turbine blades’ ?
    43. Fiat currency (Dollars, Pounds, Euros) is fictious cash created out of thin air,  is only legal tender because your Government said so
    44. Chinese Renminbi Currency Clearing Houses now open in London, Toronto, Frankfurt, Geneva, Singapore and many more,  signalling the demise of the current US world reserve currency
    45. No fiat currency has ever lasted,  they have all Failed.  Another reason to invest in gold or silver
    46. Greece’s newly elected Syriza party want to renegotiate their debt.  Although they would like  to stay in the EU,  should this debt remain there may well be a Greek Exit (Grexit).  Should the Syriza party successfully renegotiate their debt other EU members such as Spain, Portugal,  Ireland,  Italy and France would also like the same deal
    47. invest in gold or silver
    48. Volatility_Index
    49. Quantative Easing (QE) does not work, aka currency devalution leading to an outright currency war, where its a race to the bottom.  When QE is stopped,  it creates deflation as there is less currency to go round.  Are we not experiencing a deflation right now in early 2015?
    50. Finally…  “Permit me to issue and control the money of a nation, and I care not who makes its laws!” Mayer Amschel Rothschild

7 Reasons Why You Need To Invest In Gold or Silver

Reason One:    Europe holds the key to the escalation of the currency wars.  If the EU do not allow Greece to renegotiate their debt,  they will have no option other than to default on their ‘austerity’ package,  exit the Euro and start printing Drachma’s.  The domino affect or the avalanche theory will be for other indebted EU countries to follow suit.  Spain, Portugal,  Ireland,  Italy and France will watch with bated breath and quite possibly follow the Greek odyssey.

Reason Two:     The EU are about to start (April 2015)  a new round of Quantitative Easing (QE).  QE is another name for currency devalution.  60Bn Euros per month for the next 18 months equates to just over 1 Trillion Euros created out of thin air.  You see,  you just can’t print Gold or Silver. This devalution makes EU exports cheaper,  and imports more expensive.   The countries which import to Europe will also need to devalue or QE in order to compete and maintain their own economies.  This QE is a race to the bottom which will lead to a currency crash and the end of the world reserve currency the US dollar.

Reason Three:    This leads me nicely to my next submission.  The US dollar is in demise,  the facts above speak clearly for themshelves.  Russia is dumping its holdings of US Treasury Bonds,  causing ripples in the financial markets,  allowing the US to induce some type of incident (divide and control),  gain international support (tell half truths) to place sanctions and embargoes on Russia. 

Reason Four:  The US dollar has been the world reserve currency without being backed by the gold standard.  No Fiat currency has ever stood the test of time and they all have one thing in common,  they have all crashed and burned.  On Aug 15th 1971, Richard Nixon removed the gold standard and the printing presses went into over drive.  Another incredible reason to invest in gold or silver.

Reason Five:  Many countries are by-passing the dollar and trading in local currency or commodities.  China are now the largest net importer of Saudi oil, where oil barrels are priced in US dollars.  This may well lead to the end of the ‘Petro-Dollar’ and start to be priced in the Chinese Yuan. Surely signalling another loss of faith in the US dollar,  its economy and its overseas policies. 

Reason Six:  The creation of the BRICS and their alternative to the US influenced IMF.  Many countries repatriating their gold away from the vaults of London and New York a safety measure to stop prying eyes with sinister minds.  China, Russia, and India invest in gold and silver at a unprecedented levels.  Gold and silver has been the true money for centuries and as this precious metal heads back East,  the economic power will also head East. 

Reason Seven:  Remember in my opening gambit, I said “follow the money”?  Well Gold and Silver is the true money of the universe,  invest in gold or silver as this has been in circulation for thousands of years.  Whilst we can’t stop whats happening in the world,  together we can wake people up as to what is really going on. 

If you enjoyed reading this,  share this blog with others and profit by a simple invest in gold or silver.

Til Next Time – HD

P.S.  As I was writing this I scribbled down 47 more reasons why you should invest in gold or silver

P.P.S.  For low cost storage,  cheapest Gold & Silver spot price  Invest In Gold or Silver

P.P.P.S.  For US Readers Consider my Regal Asset Review

 

Stock Market Crash In 2015 ?

Stock Market Crash In 2015 ?

Will the Stock Market Crash In 2015 ?

Those who have been watching the financial markets closely since the near collapse of 2008,  followed by bank bailouts,  quantitative easing and even more financial irregularities, all have one burning  question  “when will the stock market crash?”  No financial expert on either side of the fence really knows,  but perhaps we can narrow it down,  with graphs,  stats and other figures which lean towards a real possibility of a Stock Market Crash in 2015 or 2016.

In this article we will look at various factors which can affect the worldwide monetary sysytem. Before I get into the nitty gritty,  I’m not a doomsday merchant,  tarot card reader, nor a Nostradamus –  I’m going to use plain and simple hard facts which every reader can research for themshelves. Where possible I will list my sources,  so you too,  can come up with your own conclusion.  

Seven Year Cycle for the Stock Market Crash In 2015

Every seven years there is a sesmic shift in the money markets.  Whether its housing,  energy,  stocks, bonds, or currency market,  any one or a combination of these sectors will hit the buffers roughly every seven years.  The last significant crash was in 2008,  Lehman Brothers disappeared as fast as the Dot com mania and the World Trade center in 2001 when the previous crash occurred.  In 1994 the Bond market crashed due a high spate of selling,  pretty much what is going on right now.  Prior to the 1994 crash and my first experience of a stock market crash as a young man was in 1987,  also referred to as Black Monday. 

I couldn’t understand prior to the 1987 crash, why there was a house buying frenzy.   I even went for the ride, spoke to a mortgage advisor trying to make sense of the situation,  but I was more baffled than ever.  (As the saying goes BS baffles the brains).  On the plus side I wasn’t earning enough to get on the property ladder.  People I worked with who lived in desirable areas sold their homes within hours of their property going on the market.  Prior to the 1987 crash the FTSE was trading just short of 2400 points and nose dived to 1600 points a drop of approx. 30%.

In 2008 the stock markets listed below lost the following in % value:

New York – down 33.84%
London – down 31.3%
Paris – down 42.7%
Frankfurt – down 40.4%
Mumbai – down 51.9%
Singapore – down 49.2%
Sydney – down 41.3%
Hong Kong – down 48.3%
Shanghai – down 65.2%
Tokyo – down 42.1%

You may notice in 1987  &  2008 London dropped by approximately 30% However in 2008 the FTSE was trading at 6400 points,  eventually bottoming out in March 2009 at an index value of 3530 – this wiped out £645bn  from the FTSE 100 companies.   In 1987 this figure was apporx £100bn. 

This seven year cycle has fallen in place every seven years going back to the great depression of 1929, with the biggest stock market crash occuring in 1931,  which fits in nicely with the seven year cycle. 

A few days prior to the 1987 Black Monday crash,  the south coast of the UK was hit by a tropical storm,  along with the famous Michael Fish quote – “Earlier on today, apparently, a woman rung the BBC and said she heard there was a hurricane on the way… well, if you’re watching,  don’t worry, there isn’t!”  This weather phenomenon may well have an impact on the monetary systems.

Stock Market Crash In 2015

Stock Market Crash in 2015 &  the Weather…

In Jonathan Cahn book “The Mystery Of The Shemitah”,  the author talks about the Jewish calendar and what is referred to as the “29th of Elul”.   In or around the “29th of Elul” there have been huge stock market crashes.  In 17th September 2001 &  29th September 2008 stock markets crashed on the “29th of Elul”.

Some of the stock market crashes on the “29th of Elul” have also coincided with a solar eclipse.  In 1931, a solar eclipse took place on Sept. 12,  eight days later stock markets around the globe crashed.  In 1987,  a solar eclipse took place Sept. 23 – followed by Oct 19th Black Monday.   The next “29th of Elul” and partial solar eclipse is scheduled for Sunday September 13th 2015.

Solar eclipse or not the “29th of Elul” seems a significant date in predicting a possible Stock Market Crash in 2015 .

In the next article we will look at various factors and how this will affect a Stock Market Crash in 2015.

 

 

 

What Is FIAT Currency?

What Is FIAT Currency?

When Governments first created the FIAT currency,  they must have sang the Spanish song Que Sera Sera, whatever will be will be.  Even by Bank Of England’s own admission the Fiat currency they create have little or no intrinsic value in themselves and not convertible into gold or silver,  but made legal tender by fiat (order) of the government[1].  Fiat is the Latin word for “it shall be”.

Who is responsible for this fiat currency?

I’ll use the USA’s Federal Reserve in this example, if you’re in the UK substitute this for the Bank Of England, in Germany use the Deutsche Bundesbank, the French have the Banque de France and so on…

Nearly every country in the world has its own equivalent of a Federal Reserve,  which is not a government entity,  but a private sector company with shareholders and pays dividends.

Yes,  you read that right;  The Federal Reserve,  Bank Of England,  Deutsche Bundesbank,  Banque de France,  etc are private organisations,  which pay bonuses to its rather secret and select members at the expense of the mass population.

Have you ever wondered how Fiat currency is created?

When the government pledges to build more roads, schools, hospitals, health care programs, fighting wars,  etc,  it requires cash to do this.   In order for this to happen the Government Treasury department issues a treasury bond to cover this spending spree,  also known as deficit spending.   A treasury bond is a national debt placed on its people.  A Treasury bond auction takes place with the world’s biggest banks bidding for the treasury bonds.

The winning bank then applies interest to the bond and takes some of the bond to the Federal Reserve, which issues a cheque. Here’s where the “Sleight Of Hand Trick” comes into play.  The Federal Reserve has not got one penny to back this treasury bond.  The Fed issues a cheque, based on no intrinsic value and as if by magic,  “it shall be” Fiat currency enters into existence.  Some will be printed onto paper,  such as the dollar,  the pound,  the euro,  the rest will be digits on a computer screen.

The world’s biggest banks takes the Fiat currency,  sells this back to the Government Treasury with added interest, buys more treasury bonds, takes the new bond to the Federal Reserve with added interest, more Fiat currency is issued, sold back to the Treasury,  plus interest, raising the national debt and placing this debt on to future generations. (Hence the word bond coming from “Bondage”)

The world’s biggest banks act as middlemen, charging interest at every opportunity whilst the fiat currency merry-go-round continues, in what can only be called a Ponzi scheme.

 

How does Fiat Currency affect you?  

Put simply every Pound, Dollar, Euro, Yen, Ruble, Yuan, Rupee, etc has been borrowed into existence. This “by order of your government” fiat currency has been created out of thin air.

Interest has to be paid for this paper creation and on the digitised version. This interest payment goes straight to the central banks coffers as well as the Federal Reserve, Bank of England, etc and not to their respective governments.

All Governments with a Fiat currency system are in debt to their own version of the Federal Reserve via the Central banks and cannot afford to pay off their debts. So, the government creates a tax system, collected by the likes of the IRS in the US, HMRC in the UK and subsequently pay back the central banks. The collection of taxes is not enough to cover the loans and so the debt is growing in ever larger quantities. In order to pay the interest on the original loan (deficit spending spree), more currency has to be created to service the interest owed on the original debt.

Fiat Currency

The loan now has to be paid back, with interest added. Our governments have to borrow more currency in order to pay the interest, so the debt always remains.

The government think tanks come up with newer ways for us to be taxed. Here are a few examples, duty on goods, car tax, income tax, import tax, airport tax, local housing or council tax, and so on. So, the people are saddled with their own inept, good for nothing, government free spenders, singing Que Sera Sera, whatever will be will be.

Finally,  as more currency will be created to help fight the wars,  build new schools,  hospitals and health care programs,  FIAT currency will devalue.  The clever money will move into the true currency of the world and  physical precious metals,  such as silver and gold will envitably find their true intrinsic value.

[1] Source: Financial Times