by Dave Kranzler
August 24, 2015
Under the gold standard, a free
banking system stands as the protector of an economy's
stability and balanced growth.
When gold is accepted as the
medium of exchange by most or all nations, an unhampered
free international gold standard serves to foster a
world-wide division of labor and the broadest international
Even though the units of
exchange (the dollar, the pound, the franc, etc.) differ
from country to country, when all are defined in terms of
gold the economies of the different countries act as one.
Alan Greenspan, "Gold and
Economic Freedom," 1966
I don't know if the Plunge Protection Team will be able to
stabilize and bounce the market today.
I suspect they will get it done sometime
in the next 24-48 hours - there's real blood money at stake here. By
this I mean there's still a lot of middle class wealth that has not
been wiped off the table and into the pockets of the elitists.
Hell, Hillary Clinton is still standing
- for now.
But at some point our system
EVERYONE in this country has been living
off the benefits of The Big Lie for too long. It's not just
the upper 1% who have benefited, even the welfare programs have been
levitated by the U.S. Government's ability to bamboozle the rest of
the world into buying our debt and accepting our currency.
When the rest of the world flinched at taking down more debt,
the FED printed trillions to buy
U.S. Treasuries directly, and lent $100's of millions to the Bank of
Japan and the ECB to enable them indirectly to continue propping up
the Big Lie.
But today gives us a glimpse of The Truth.
Beneath the headlines of plunging stock
markets, and not being reported by the U.S. financial muppets, is a
stunning 1.5% plunge overnight in the U.S. dollar:
At the same time, the world's oldest currency - the Wall Street
Rock" - has performed as the ultimate flight to safety
While the "Einsteins" out there offered only the obvious
explanations for China's move to devalue the yuan, I have
maintained all along that it was first and foremost a means of
tossing a "grenade" at the massively unprecedented U.S. dollar
It only took a about 3% move to
Meanwhile, here's what's really happening in China:
Shanghai gold withdrawals for the
week ending Aug 14th have been reported at
65.013 tonnes (previous week 56.015 tonnes). This brings the
year to date total to 1,585 tonnes, 161 tonnes more than in the
record 2013 year at the same time.
John Brimlow's "Gold Jottings"
The FED kept insisting that it would
raise rates in September.
For anyone willing to look honestly at
the underlying economic evidence, it was obvious - OBVIOUS
- that the FED would never raise rates. It was nothing but
Orwellian smoke. Keep repeating a lie until almost everyone wants to
I heard a radio promo yesterday for a mortgage broker who insisted
"rates are definitely going higher
later this year so you better take out as big of a mortgage as
you can now and buy your dream house."
Rates may go higher this year, but if
they they do it's because the dollar is collapsing - or even
vanishing - as the rest of the world other than the Bank of Japan
and the ECB rush for the exists with their Treasury holdings.
The Big Lie is that gold is a Pet Rock and the U.S.
dollar is the global flight-to-safety currency of the world.
If that's the case, then how come China
seems to be cornering the market in Pet Rocks while dumping
the dollar through that exit door at the back of the movie theater?