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November 25, 2005

Phony Wealth = Phony Power
by Alex Wallenwein

... and that makes the US a very vulnerable country.

America 's formidable wealth is, deplorably, based on a lie - or at least it has been, since gold was defanged back in 1971. But, what its enemies don't realize is that this defanging occurred at a time when gold was still sporting its baby teeth.

After spending three decades in a rather toothless state (except for that brief moment in history when it jumped up to over $800 an ounce from less than $!00 in a few short years), gold's real fangs are only now beginning to show.

And they're starting to bite, as well.

They will sink deep into America's soft economic underbelly before long, courtesy of America's sworn enemies - and America's very own financial powers who exposed it to this potentially fatal threat.

America 's foreign enemies are using gold as a weapon. China and the Muslim nations of the world - and now Russia as well - are stocking up on the yellow metal while the US is wasting its time by pushing a phony, shadow-of-its-former-self version of capitalism on the world which it calls "globalization."

Globalization has gutted Americans' former mattress linings in favor of home-equity lines of credit and a helpless addiction to cheap-a_ _ Chinese goods - built with pirated US technology and know-how, to boot.

Our dependence on foreign oil, and dependence on foreign consumer goods and capital, have left the US economy a walking corpse and have heaped riches on our enemies. The US economy may be a colossal corpse, bigger than the world has ever seen. It may have been feeding the world's other economies for the last two or three decades and it may still be able to outrun every other - but it's still a walking corpse.

Why? Because it's nothing but a deadly accident, waiting to happen.

The sworn enemies of anything resembling freedom are now using real wealth - gold - to kick the clay feet out from under America's tottering financial edifice. Witness Russia's announcement that it will double its official gold reserves.

How did this happen?

Easy. They had inside help.

The powers that crafted, and now make up, the financial architecture of the United States are responsible for removing gold as its foundation - and substituting themselves for it. Themselves - and their system of debt-based, computer keystroke-created windbag-money.

Their arrogance would not allow them to let something they themselves don't directly and immediately control operate as the foundation of the world's financial structure.

All kinds of reasons have been trotted out to explain away the gradual removal of gold from the world financial scene as "historically inevitable," but there are only two factors that could function as anything resembling an original cause for this: Human arrogance - and human laziness. The arrogance of the financiers, aided and abetted by the laziness of the common man - us.

The financiers removed any vestige of gold from financial public life, and Mr. Common Man went right along with it. After all, the "experts" have decided that this is better for all concerned (especially them), so who are we to say it's not? Right?

It is clear that America can't be conquered through military attack. Not yet - if ever, unless the Chinese are successful in creating their planned racially targeted bio-bomb that will only kill white people and leave those of Asian origin unharmed. (I kid you not. They are actively working on this, however remote the possibility of success may appear at this point.)

That kind of gives you an idea of their mind set - and where things will be going from here on out. And it's not just the Chinese. The Russians under Putin are drawing their own plans against us.

Russians would like nothing better than to return to their old glory days when they were officially communist and the whole world was quaking in their boots, afraid of what Russia might do next. Just like the Jews who longed to go back into slavery during their Exodus from Egypt because they missed the phony comforts they had while in captivity Today, nobody pays Russia much mind anymore - and many Russians openly resent that.

What the Muslims' aims are doesn't even warrant any discussion here. If you want to know what the world will look like if Islam gets its way and nobody powerful enough to oppose it is left, just take a look at France right now. A puny minority of adolescent Muslim thugs are terrorizing an entire country - and French officials are wringing their hands and are making excuses.

These three power blocs (added to the traditional buyers in India that have always been around), are now the driving force behind the price of gold. And the US' financial powers have handed them the key to their city's gates.

Debt-based money (money that is automatically created by legal fiat every time a bank issues a "credit" through making a loan) guts any system that comes to depend on it, the same way heroin deprives the human body of its own endorphin-manufacturing capacity. By removing gold from our financial system, these "powers" have exposed our economic flank to a fatal attack, and our enemies are now marching toward it.

So, who are our worst enemies, then? Those besieging the city walls - or those who handed over the key in the still of the night, while nobody was watching?

And what about those who neglected to watch, hmm? The responsibility for rectifying the sins of their leaders is surely theirs.

And that means it's your's and mine.

You, who read this, are the ones who know about gold. Your friends have been laughing you off for the past two and a half decades if you've been around that long, but now gold is going over $500 any second, and your friends are scratching their heads.

They are still within their comfort zone though, because the current rise in gold's fiat-ratio is happening while all of the other economic numbers still look marginally acceptable and the Dow is rising as well.

The dollar appears "strong" and long rates have come back down from their recent spike. Oil is behaving somewhat, the Chinese appear to play ball by slowly letting their currency rise against the buck, and the world still invests in America because their interest rates are lower than ours wherever else you go.

But gold is rising, partially because of the above named three power blocks, and partially because some people are slowly waking up to its potential.

This is the time when your friends and family will begin to listen.

Talk to them!

We are nowhere near any long term 'top' in gold. It's far from 'too late' to get in. Your friends, of course, will still keep one wistful eye on that Nasdaq screen while they try to listen to you. You still won't have their undivided attention - yet. But they are starting to prick up their ears.

America will not be safe from the onslaught of the foreign gold phalanx until enough people at home start accumulating gold, real wealth - at any price - before their enemies snap it all up. (I say "at any price" because gold's fiat "price" is not by any means the measure of its worth. It's only an indicator of the lack of worth of gold's competitors!)

In the end, gold's so-called "price" is absolutely irrelevant. The truth is that it's exactly the other way around, as I have been writing for so long now. In the end, gold was, is, and continues to be, the true measure of worth of all things fiat. Like it or not, it is the truth, and this truth, after having been the modern financial world's 'best kept secret' for so long, is now re-emerging in people's consciousness.

Forget about all that posturing of big financial houses, central banks, college and government economists, and of the beholden news-manufacturing outlets the world over. All of their schmonzes is now coming to the surface.

Unfortunately, the driving force behind this emerging truth currently emanates from America's enemies.

Can we afford to let America's enemies help the truth along - instead of us? Can we afford to give our faithless officials the chance to say: "Look, they are attacking us with gold, so gold is subversive and must be shunned by any red-blooded American"?

No. We cannot. Because gold is in reality no danger to America at all. It's only a danger to the Phony version, the smeared-off and twisted corporate carbon-copy called "Amerika." It's only a danger to the Ivy League crowd that spawned characters like Robert Rubin, Larry Summers, and Ben Bernanke on the economic side (and double-talking lawyers like the Clintons and Ruth Baader-Meinhof Ginsberg on the legal side) and their philosophical progenitors. It is those who raised us on lies, deceit, and debt-based pseudo money, money in which there is no safety, no real wealth, and no security.

The problem is that it is them - and others like them - to whom we gave the license to form our picture of the world. We believe it when they say that this country's fortune depends on its financial structure. We believe them when they say that a direct threat on their financial institutions and system is a direct threat on America itself.

But that ain't so.

Can you think back to the winter of 1995-96 when the Repugnicans shut down the federal government for a month or so by not agreeing to funding requests that would keep feeding the federal leviathan so they could put political pressure on Dumbocrats - and then whimped out?

Can you recall one instance back then in which this federal government shutdown actually changed your life for one iota while it lasted?

Unless you were a federal worker or depended on social security, you couldn't even tell that this supposedly oh so powerful force in our lives was no longer operating - unless you were glued to the TV screen every night. I challenge you to name one single instance in which this shutdown has even touched your life back then. I'll bet you can't find one.

It's the same thing with our financial system - if enough people have enough gold to live on and circulate it, and if the things we buy every day are priced in gold, we won't even know it if the banks turn belly-up

Let the entire financial infrastructure of the West go up in flames, and you won't know it - if people have real gold to use.

Of course, nobody has any, so it will be a catastrophe of the highest order. But if people had any sense left in them - especially now where they can see that gold is going higher and higher, year after year, and has already thrown off the shackles that formerly tied its price to a sinking dollar/rising euro scenario - they would buy gold.

If people had any sense in them, they would buy only gold bullion. Physical gold. The stuff that makes your pockets heavy when you carry it. That's what sensible people will buy.

Not gold stocks. You can't take gold stocks to the store to buy bread and butter.

Not gold ETF shares. Same problem. They're worthless when it comes push to shove.

Not gold options to make you a "fast buck." That buck is so fast, you'll never see it when the phony financial structure of the West melts down.

So, will it melt down, then?

Due to our own documented neglect, the answer to that lies now in the hands of our enemies from without - handed to them on a silver platter by our enemies within: the banker-bred architects of corporate "Amerika."

So, if and when the attack comes, are you going to be a patriot to "Amerika" - or to your true country?

Are you going to support the phony money printers and brokers, and the legislative farce they had their politician friends build around them to protect their rear ends? Will you trust their empty promises? Or will you trust the one thing that has been the bedrock of economic value no matter what any human ever said or did throughout most of recorded history?

It's a choice you may have to make very, very soon. The city is surrounded, and they are rolling up the catapults. It won't be long before the first volleys hit our defenses, and our defenses have "feet of clay" as we noted.

On the other hand, a closer look at what props up America's foreign enemies reveals feet of clay that haven't even been hardened in fire yet. They're made of mud. Their supposedly ominous 'strength' relies on even more deception and illusion than that of our own corporate leaders.

Case in point: The revealing look China's current copper-trading crisis offers to anyone who cares to point his eyes in that direction.

Here is an article everyone should read on that subject. In short: The Chinese economic miracle is possible only because the Chicoms have erected a wall of secrecy around its inner makings. A revealing commentary on its lack of real substance is presented by the fact that Chinese stocks have been languishing and even dropping, all the while the world marveled at China's "economic miracle."

I wrote before that China's wonder-economy is based on all-out money printing and bad-loan-forgiving by government decree, just so that normal market forces wouldn't push its new class of incompetent "entrepreneurs" into bankruptcy - which is where they would have to go if they were forced to operate under anything resembling a sane lending environment.

Now, that the world is putting pressure on China to let its currency "float", the Chicoms engage in some window dressing, declaring all over their news media that they are "cleaning up" their bad loan portfolio by arresting regulatory nepotists and lending-scoundrels of all shades and sizes..

Nobody knows if that is true or not. Nobody knows what the real bad loan figures are. The flow of information is totally controlled in a communist state. They could be lying their asses off and we would never find out - except for the dismal performance of the Shanghai stock exchange.

Russia , likewise, is an information-controlled environment. You think our news media stink? Try living over there. Their media remain under a constant threat of a state-initiated shutdown. The only difference in the way Putin is handling his mafia buddies (who now own the Russian media) versus how Breznev handled Isvestia and Pravda (back when the same crowd controlled everything in the name of 'communism'), is the length of the leash they are on (which, by the way, is also the only thing that differentiates our media from Russian's: The length of the leash.)

Do you believe Russians, Chinese, and Muslims are going to use their newly bought gold to usher in a new era of individual sovereignty, peace, and economic security in their respective spheres of influence? Ha! I got news for you, brother.

Here is a question everyone should ask themselves: America's enemies are now openly buying gold as a direct attack on US financial institutions. Is your buying of gold therefore a way to play into the hands of our enemies? Not at all. On the other side of the coin, though, not buying physical gold (or continuing to chase after a quick buck through buying phony gold-substitutes) is a dead-sure way of playing into the hands of our domestic enemies.

By the same token, if we don't buy gold, our enemies' attacks will be lethal to us as well, not just to our phony financial system. So, it is not buying gold that ultimately plays into the hands of America's enemies' - no matter which side of our borders they happen to be on.

Think about it.

Got gold?

Alex Wallenwein
Editor, Publisher
The Euro vs Dollar Monitor

Just like driving your car, investing only makes sense if you can see where you are going. The Euro vs Dollar Monitor is your golden windshield wiper that removes the media's greasy film of financial misinformation from your investment outlook. Don't drive your investment vehicle without it!

Copyright © 2003-2008 Alex Wallenwein

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