I think by now that anyone who’s paying attention understands that the United States is a broke entity (in many aspects). If you disagree with this then I would say that you are entitled to your own opinion …and good luck with that. In fact, the markets have gotten so large (not to mention lopsided) that the Federal Reserve itself is now dwarfed in size. Yes they now have over a $4 trillion balance sheet that grew by the necessity of sopping up bad debt and assets from the banking system, but this is still very “small” in relation to the monsters they must fight every single day.
2008 was over 5 years ago, rather than wringing out the bad debt, the blight of over leverage has spread further. China who was “in the game” in 2008, has become a huge player and just in the 4th quarter alone last year levered up another $1 trillion. Much of this leverage has been done by arbitraging the yield difference between dollar and Yuan interest rates and attracted “hot money.” It is important that you understand this, much (probably the majority) of the capital inflow into China is/was hot money that can change its mind in a moment’s notice. It looks like the “moment” was 6-8 weeks ago as a credit crunch in China has begun and is in the early stages.
As much of the credit creation involved financings through commodities and real estate markets, this is where the “unwinding” will be and already is being felt. Housing sales were down 18% last month in China, 6 different cities have initiated “bailout” programs to support the real estate markets and prices are dropping. If you look at it from a broad perspective, China is going through what the U.S. did in 2007. A credit crunch has begun, they are in the early stages of bail outs, growth is slowing and the defaults are sure to follow.
None of the above is a surprise or breaking news but I do have a few questions. Will China do the same thing that the U.S. did from 2008 on and bankrupt their own treasury? I highly doubt it. My guess is that China will try to “ease the fall” initially until they see just how big the problem is and then let the load go over a cliff for Mother Nature to sort out. I know that there will be those out there that disagree with this thought process but I don’t think it is too far off.
I have written several times in the past what my theory of the big picture (China) is, I believe that now, right now is the ideal time to bring it up again. I say “right now” because we have events converging that argue for “change.” We can see the credit crunch forming and asset prices just beginning to fall. We also know that China and Russia are expected to make a big energy deal announcement this week and we also just recently found out that gold flows (courtesy Koos Jansen) out of London have slowed dramatically. I know, what the heck do any of these have in common? Follow me through, this is what I think.
I believe that the West is now hitting the bottom of the barrel (remember that pre ’60 U.S. fabricated gold has been turning up on world markets), the flow from London has slowed dramatically yet China is still hungry for gold. China has a credit crunch beginning; they are aligning with the Russians and Iranians (and Saudis?) on energy deals. The other side of the equation, the U.S. is just now showing signs of serious inflation setting in, particularly food. We also have “backed down” twice in the last 6 months with both Syria and the Ukraine. This does not show strength and is not any sort of confidence builder. I would also like to strangely add to the mix that the Pope has made a public statement about “income equality.” I say “strangely” because I think it fits as you’ll see in a moment.
OK so let me tie this up. I firmly believe that a re set is close at hand. I believe that the U.S. will lose much power and the standard of living will be decimated by a minimum 25%. I believe that the Chinese “played the game” of debt long enough to vacuum up a large percentage of the world’s gold and also to put and build infrastructure into place. I don’t believe that they even care if the current financial system collapses in a heap. I think that they expect it and they have “built” what they believe will be necessary for maybe the next 50 years with current roads and bridges “to nowhere” and “ghost towns” …leading to somewhere and becoming occupied. They also now sit on the largest hoard of gold in the world. They stand to benefit more than anyone else should the decision be made to revalue to another much higher level. I mentioned “The Pope” above; the Vatican is also a very large holder of gold and stands to benefit from a revalued gold price. Is it possible that the “income equality” he spoke of will come along with a benefit for the church’s holdings?
I do want to mention that I have read theories where China will use their newly acquired gold (along with legacy gold from dynasties gone by) to either back or ratio back their currency? Will Vatican gold also be used as collateral for a new currency? I bring up the Vatican because they are a very big holder of gold yet many forget them. I am not trying to offend anyone by mixing religion with business but it is what it is, the Vatican is a big gold holder, we are talking about “money” (which gold is) and the Pope did just recently make his public statement regarding income equality. Could it be that the world would like to use “SDR’s issued by the IMF to be used as a reserve currency?” Could it be that the world would like the IMF to actually become “international” as opposed to a U.S. puppet agency? Could Vatican gold be used as collateral by a truly “international” IMF and lend support and value to the SDR? Curious to say the least. If any of my theory is correct then the plans were made long ago. One must wonder what was said between The Pope and then President Jinping when our president visited both of them. It is possible that he knows the answers too much of this already. I know that much of this is merely hypothesis but The Vatican is a very large holder of gold which means that they cannot be forgotten regarding the topic of a re set.
It seems that these are the gold holders:
Vatican – 20,000+ tons
India – 20,000+ tons (mostly by temples & individuals)
Russia – around 20,000 tons
China – around 20,000 tons
Who benefits from a reset of gold, to its True Value?
What should its True Value be?
50,000SDR, 100,000SDR, 500,000SDR, 1 million SDR, higher?
How about the worth of all assets in the world and the labour of all mankind for the next 100 years (in SDR value) divided by 170,000 tons of gold?
What would this number be?
not sure, my calculator doesn’t go into the trillions. I also don’t believe your tonnage numbers are correct.
Where did you get the statistics for the Vatican gold amount? I had been searching to find the amount.
Thanks
One point of disagreement. The majority of capital flow is not hot money. The majority of capital flowing into China is earnings on goods sold in the West, particularly in the US.
I was referring to how things get financed, it is one giant carry trade.
Two issues with the post. Vatican gold was mostly depleated during WWII. Large sums were spent on clandestine efforts to rescue Jews from the Nazi’s and by the end of the war was mostly gone.
Also the remarks by the Pope were distorted by the media. Please read the transcript and see that he was saying that an encounter with Jesus would lead one to give to the poor. He was not talking about a political process but a falling in love with the Lord that leads us to distribute what we have much like the tax collector who offered to give his money to the poor.
maybe they depleted their gold maybe not, as I said, this is a theory and their is no firm proof whether they still have it or not. I suspect they do but is my opinion. As for what the Pope said, yes you are correct but is it not the mindset of “leveling the playing field”?
I usually think about what you say and agree with 95% or more of it, as you do a great job of seeing what is going on, thinking about it and coming up with logical reasons for your conclusions. I do think building 7 could have come down due to the two earthquakes in its footprint (the twin towers) that caused damage to its foundation, which caused small electrical fires seen on video, the way some buildings collapse in earthquakes and others don’t – but I digress.
Here what you say makes good sense to me except I don’t understand the Vatican gold part. How would the Vatican’s gold holdings becoming of value as the dollar dies lead to income equality? If the Vatican wanted to use its gold to give to the poor, it could have run out of it a long time ago. Also, does it really have thousands of tons? Personally (I am catholic), I think the Pope is a socialist and I don’t care much for him. Seems to me the Bible also chastises lazy leeches who are perfectly capable of working and doesn’t just say advocate giving them money for nothing.
not a chance in my opinion, the BBC reported it collapsed 10 mins. before it happened, do some research. Currency has value because of “trust”…do you understand my connection here?
Hey Bill,
This has been my theory for a long time. If you look at the recent gold nabs, Libya, Egypt, Ukraine, etc., it seems the Anglo-American world power attacks a country and then confiscates their gold. It seems to be the pattern. Go back to the French Revolution, the French took the Vatican’s wealth and property in France to backstop their new currency, I think history is about to rhyme.
Furthermore, the Anglo-American world power, financial powers does not want to let their power slip. My thinking (theory) is that they will proclaim some sort of “Peace and Security” with the BRICS and rest of the world and allow gold to be part of the new monetary system. Then make some secret back room deal with regards to returning everyone’s gold and acquire new gold to backstop their country and the SDR. THEN proclaim religion and the Vatican as some sort of terrorist and go after their wealth, gold, and property etc..
many moving parts.
Doug,
There is so much more to 9/11 than the mysterious collapse of building 7. If you ever want to invest a little time to search out the truth, I would start with a fantastic Italian documentary that was actually shown to the European parliament. It is called “Zero”. If you are truly new to the 9/11 truth movement, it may very well be one of the more eye opening experiences you will ever have. If you take the time to watch this there is no way you will come away still believing in the official story of 9/11. Here is the link:
http://www.youtube.com/watch?v=QU961SGps8g&feature=youtu.be
AK, thanks. Honestly, I haven’t researched it much because I figured it would be the greatest conspiracy in human history that can only be pieced together after the fact with no whistleblower/participant testimony on all the
planning/setting charges, etc., because relatives on the ground got calls from their loved ones on the planes describing the hijackers, and because I don’t think Barbara Olsen and other plane passengers are sipping on a gin and tonic on some beach somewhere anonymously, having left their families, while the world thinks they’re dead, or where is evidence they were killed on the tarmac or the planes hitting the buildings were hallucinations, etc. But there are a lot of smart people who think it was staged (Bill and you included) so there must be something convincing in these accounts that warrant me looking into and judging for myself.
like I said, currency has value because of “trust”.
Doug, I hope you do take the time to look into this some more. You are already far more awake than most people, so you have a huge head start. The great thing about this video that I provided the link for is that it does not go into any crazy theories about what really happened but instead examines closely the “official” story and then tries to reconcile those claims with the actual facts that are available for everyone to see. When you do that it becomes clear very quickly that the story that we have been told simply can not be true. Once you make that connection then you start to wonder what else is the government covering up and that speaks to Bill’s point of “trust”.
AK,
I will, thanks. I sincerely appreciate your comments as well as Bills, and my last post above was written only to explain why I haven’t looked into this much up until now. One thing has been troubling me since yesterday when Bill mentioned the news report of building 7 collapsing being aired before it collapsed. That is simply weird and smacks of planted information known beforehand. However, even assuming the building was taken down maliciously and not due to the towers incidents, why on earth would someone on the inside who knew of the planned demolition demolition go through the effort of tipping off the press to the collapse, when clearly the collapse would have been well covered on its own with no tipoff needed? Press was everywhere in that area after the towers were hit. In the end, any other explanation of what went on that day has to be more plausible than the official explantion. It is one thing to show apparent inconsistencies with the official narrative, but if a suggested alternative explanation has MORE inconsistencies or is MORE far fetched, IMO the official narrative would be deemed a better guess as to what happened.
One last anecdote. I remember Woody O’Brien posting a picture on facebook showing a plane on the ground, tilted. Next to the picture was a statement saying, “This is what a plane crash looks like.” Another picture was of the hole in the ground, purportedly from flight 93, as if there was no way that could be from a plane.
To me that was ridiculous, because the first picture was likely of a plane whose pilot did what he could to gently, carefully land the plane, while the hole in the ground was due to hijackers deliberately accelerating into the ground at over 500 mph. To me Woody’s failure to distinguish the two completely different situations in making his point ruined all of his credibility with me.
Hopefully I will have time later today to check out the video, thanks.
Hmm, just wondering if the Vatican also got duped and sucked into leasing out its gold hoard back in the last century as well? Ergo, the present day meetings with the various Heads of State from around the world.
it is possible and no real way to know …
Do you ever wonder who walked away with that 17 Tons of Gold that Portugal “loaned” to Drexel Burnham Lambert which completely vanished, and never returned to Portugal? And if I remember correctly, Michael Milken pulled down $550 Million (No, it is not a typo) in Executive Compensation from Drexel in 1987. Coincidence?
or the Iraqi or Libyan gold? Or the German gold for that matter.
Hey Bill, I guess no one reads the bible or have read the book called “The Vatican’s Billions”. You are on to something no matter how any of these people feel. The only way for “The Mother of all Harlots”(The Vatican) to become the world leader in religion and have the “nations drunk with the wine of the wrath of her fornications” is to show her skirt in her wealth. This is all part of the prophecy of Revelation. She is the Beast that once was but still is!
The Vatican is not a church but a business who is using the likes of being non profit(no taxes charged) as a church to hide the theft and crimes they are committing. This is not a church again read “the Vatican’s Billions”, it is a business entity because it has its very own bank!