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Q: We learned that the FED gave some trillions to foreign banks.  With them allowed to operate mostly in secret, would it not be possible for them to open obscure bank accounts anywhere in the world and electronically deposit any amount of money in them and use that for any purposes – buy / control property, media, heads of state, etc.?

David Schectman’s Answer:

I don’t see why not. Central banks, led by the Federal Reserve, and their hoard of “too big to fail” partners have put all of us in a very bad place. The TBTF banks gamble with our money and then fall back on the central banks (or tax payers) to backstop their losses.

We have no privacy but the Fed works in the dark, behind closed doors. They refuse to be audited. They are unelected bureaucrats making financial decisions that favor the banks and Wall Street, not the people, and nothing is ever done. Ron Paul tried for years and his son Rand is still trying but to no avail.

Expect nothing good from the banks and you will not be disappointed.

Q: Every time I hear anyone talking about the FED and how their policies will affect the markets, economy, etc., I am in awe that someone does not question, “While it is obvious that a free market economy would automatically keep everything in balance – avoiding the bubbles and crashes, etc., how is it possible that a handful of (idiot / criminal) bankers have almost total control of the markets and economy?”

Andy Hoffman’s Answer:

The answer is simple – power.  The people running the government and Central banks (and in today’s rigged world, the financial markets) have the power to do so – and equally important, the incentive, as it enables a status quo in which they retain not only such power, but wealth.  With each passing day, Joe and Jane Sixpack have less and less say in how things are run, and less and less ability to protest.

Naturally, “the powerst that be” will not act against their own interests, which is why we are fortunate to have “Economic Mother Nature” in our corner.  In time, all these economic and market manipulations and deformations will be swamped by reality – just as they always are.  This time around, said powers that be have more potent weapons to fight Economic Mother Nature.  However, as you can see by the ongoing collapse in global economic activity, currencies, commodities, and social stability – and conversely, the parabolic explosion in debt – they are decidedly losing the war.  In time, they will be destroyed completely, a la Napolean at Waterloo or General Custer at Little Big Horn.

Q: I follow your comments about the status of the world and it seems to me the only way out of this mess is to re capitalize the “world” using gold.   The major countries (including China) would agree on a new value for gold.  Probably north of 20,000 per ounce and all currencies would be backed by gold.   Essentially gold would be the reserve currency.   I hope the US has 8000 plus tons of gold because any country that doe not have gold would be in a world of hurt.    In this process, the US overnight would have to balance their budget and live within their means.


Jim in Phoenix 
Bill Holter’s Answer:

Yes Jim, this is my thought process and I believe that of the “rest of the world” also.  Revaluing gold higher versus currency has worked before and is a natural cure or medicine.  The problem with this as you say “I hope the U.S. has the 8,000 plus tons.  A world of hurt is an understatement for many reasons.  If the gold is gone, we would then be known worldwide as fraudsters.  And what about foreign gold we are supposedly holding?  Is that also gone?  The U.S. would not be invited to any table, be it financial diplomatic or otherwise.  The scary thing is the nuclear arsenal, owning gold is not a required part of the launch sequence.  No matter how this shakes out, it will be a very different world, ALL OVER the world