Category Archives: silver

The Dow in Gold and Silver Price

On Sept. 3, 1929, the Dow closed at its high of 381.22, in gold it was 16.81 ounces, gold being priced at 20.67 dollars an ounce. In silver it was 381.17 American Silver dollars. On July 8,1932, the Dow closed in a bear market bottom of 41.22 dollars, in gold at 1.99 ounces, and silver at 41.22 American Silver dollars.
On April 21, 1980, the Dow hit the historical bottom 759.13. In gold at its peak of 1980, at 850 dollars an ounce, the Dow was selling for only 0.89 ounces of gold, and for 15.49 ounces of silver, as silver was trading at its historic high of 49 dollars an ounce. From that low in 1980, an historic new bull market in stocks started and still continues.
On December 9,2016, all major market indices closed at new record highs, the only exception being the Dow Jones Utility Average. The Dow closed at a record high of !9,756.85. In gold, trading at 1160 dollars an ounce, the Dow was selling for 17 ounces of gold, or 1167.66 ounces of silver at 16.92 dollars an ounce. This is the most expensive market in the history of the Dow. How will it end and how soon remains to be seen.

Gold, Silver, and Geo-economic Bipolarity

After the official dissolution of the USSR, the world became unipolar for about nine years. Under Yeltsin, the Russian Federation, like the Soviet Union before it, was falling apart. The  US-NATO bombing of the Federal Republic of Yugoslavia in 1999, an illegal act, must have sobered Yeltsin up. He appoints Vladimir Putin the new Premier of Russia. Under Putin, the bipolarity which had existed since 1945 between the US and the Soviet Union, began to be restored. In 1999, Russia was very weak.

The plan of the Anglo-Americans, that is of the US, Britain, Canada, Australia, New Zealand plus Israel, was to destroy Russia, and to partition and exploit Russian wealth. Russian-Jewish oligarchs, such as Khodorovsky, Berezovsky and others were in the forefront, helping the US in the destruction of the country. Poverty became rampant, suicides and alcoholism increased. Demographics collapsed. White slavery organized and controlled by the Russian-Jewish mafia became a booming business. Russian, White Russian, and Ukrainian girls were servicing the world, all the whore houses of the world. Russia was on its knees. The US and the dollar would rule the world. But, immoral, unethical, and evil plans never, never work out. Just look at history. Look at Hitler’s Germany…

Bipolarity is a natural phenomenon. Everything in Nature is bipolar. Earth is a sphere with two poles, North and South Poles. Without bipolarity, the Earth would not exist and rotate around the Sun. There is hot and cold, positive and negative, light and darkness, etc.

The geo-strategic and geo-political situation in the world is very unstable. The stronger side, the US and its allies are stronger than Russia. Let me explain; there is disequilibrium in the world. Because one side feels stronger and that is the US, even though it may not be stronger. Because of this feeling of being stronger, it is very aggressive, and wants to impose its will on the rest of the world, and Russia is opposed to that. China is also opposed to US hegemony, but in many ways it is developing a sort of Modus Vivendi with the US. There are no sanctions imposed on China and its leaders. The bipolarity exists between Russia and the US and is filled with immense antagonistic anger. Just look at the presidential candidates of both parties: they want war with Russia now, if it does not obey, rather than tomorrow. The exception is Donald Trump, and that is why he is liked by the American People and hated by the ownership class.

Russians have lost all trust in the US, and the way the US has broken all its promises to the Russians, who would blame them? Russia, the US, and the rest of the world know that the Achilles Heel of US power is the dollar. In the Trojan War, the goddess Athena whispers in Paris’ ear the Weakness of Achilles, and that was his heels. Paris, the lover of Helen of Troy is forced to fight Achilles because Achilles killed Paris’s brother, Hector. Paris kills Achilles because Paris knows Achilles’ secret and his weakness.

Russia knows the weakness of the US, and is buying gold and shunning the Dollar. Other countries, including China, are following Russia’s lead. When the world starts abandoning the dollar in earnest, gold and silver will sky rocket. Gold and silver will not be available at any price. To protect the dollar as the official currency of the world, the US will try to entice Russia into a general, possibly, nuclear war. My analysis is very, very accurate and true, but only time will reveal that.

Dollar vs. Gold II

In my previous posts I stated that gold does not need any paper currency, but that the dollar needs gold. The dollar has to be convertible into gold, because the gold price world wide is quoted primarily in dollars, and that’s due to the dollar being the official currency of the world. Everything in the world is traded in dollars. Just imagine the power that the US possesses by owning the official currency of the world, so it goes without saying that the US will do anything in its power to retain that authority over the financial system of the world; it will even resort to war.

The key to financial world domination is not the petro-currency status of the dollar but its relationship to gold, Nature’s Money. The Bretton Woods agreement of 1944 made the dollar official currency of the world. The dollar was pegged at 35 dollars an ounce of gold, and the rest of the world’s currencies were pegged to the dollar. The US would keep the gold and print the dollars, while the rest of the world would keep the dollars in US Treasury Notes. The US had free use of their hard earned money, the perfect scam. General Charles de Gaulle immediately saw this for the scam that it was and took action. He exchanged the French dollar surplus for gold, as was allowed by the Breton-Woods Agreement. Run on gold began, in 1971, President Nixon closed the gold window. This is how the dollar became the “Petro” currency. Nixon told OPEC to increase the price of oil as much as they could but make sure it is traded in dollars. Surplus dollars flowed into US Treasuries, more than ever before, and the US got free breakfast, lunch, and dinner. This policy continues to this day…

The Crisis of 2007-8 was very severe. It nearly collapsed our entire economic system. Massive infusion of artificial money {printed dollars} only managed to prop up the system, and did not ultimately save it. The System barely meanders. A series of quantitative easing was introduced, QE I, QE 2, and QE 3. No real improvement. QE 4 is coming down the road. During the crisis, gold rose from around 250 dollars in 2001 to 1920 in 2011. Interest rates went down to almost zero. There was the danger that if the price of gold went any higher,  that dollar would not be convertible to gold. If that had happened, the Capitalist System would have collapsed. Something had to be done.  “Paper shorting” of precious metals was begun. The dollar can only have validity if it is convertible into gold.  Presently, the convertibility of dollars into gold has a severe price. Dollar surplus countries and individuals are buying gold on the cheap.

Gold, presently, is in backwardation. Individuals and countries are paying higher prices for gold delivery now than in the future. Shortages of gold availability are coming. The price of gold may sky rocket over night. By shorting paper gold the monetary policy of the US is extremely tight. It is in essence destroying the economy of the world. Increasing interest rates is sheer lunacy. Gold, silver, platinum, and palladium will demand their rightful value which is precious. They will be not be available in any currency at any moment. The rush for Nature’s Money, gold, will be the beginning of the end of the Capitalist System, as was the rush for gold the beginning of the Capitalist System, and when Christopher Columbus first “discovered” the “New World”. If the World survives, a totally new age will begin. Only time will tell.

How much is the dollar really worth?

The dollar is a fiat currency. It is created out of thin air through debt. A person goes to the bank and wants to borrow 10,000 dollars and if the borrower meets the criteria of paying back the sum plus interest agreed on, the bank issues a cheque of 10,000 dollars or direct deposits the amount to his account. Money has been created out of nothing to enslave that person for 10,000 dollars which he must now pay back at a certain interest rate for a specific period of time. In other words, he sells his labour, his life force, to pay the debt. He is exploited, he is a slave. This is the essence of capitalism, and the fiat currency is an instrument of enslavement.

Initially, the dollar was a gold backed currency as were other world currencies. President Franklin Delano Roosevelt, early in his presidency devalued gold from 20.67 dollars an ounce to 35 dollars an ounce. Also, he made it illegal for Americans to own gold, unless it was in a jewelry form of 18 karats or less. The Bretton-Woods Convention made the dollar the Reserve Currency of the World. The US would keep the gold and the rest of the world would keep the dollars. Other central banks could exchange dollars for gold at 35 dollars an ounce. Gold, however, would be stored in the US and some would be stored in London. This arrangement was propped up by fear that “the Communists” would take over if the gold was not stored in the US. Publicity  made Fort Knox, Kentucky, infamous as the storage place  for the world’s non-communist gold. General Charles de Gaulle, President of France, was not fooled. He realized it was the perfect scam. He had never trusted the Anglo-Americans. He knew how perfidious they were during the Second World War II. The Anglo-Americans hated him, and of course, he reciprocated. He withdrew France from N.A.T.O. and sent French warships to retrieve French gold from the US. Other European countries followed. A run on gold followed…

The gold drain from the US followed. President Nixon closed the Gold window. This closure was permanent, contrary to the President’s statement that  it was temporary. The US was running trade deficits and the Vietnam War was draining the country of its real wealth, gold. The dollar paper drainage was no big deal, because it was only paper. The Arab oil embargo saved the dollar and the US. The US told the oil producers to increase the price of oil but just have it denominated in dollars. The excess dollars of the world poured into US treasuries and helped finance government operation. The decade of 1970’s showcased growth throughout the world but with inflation. Gold was allowed to reach its equilibrium value of 850 dollars an ounce. Silver, taken out of circulation in 1965, went to 50 dollars an ounce in 1979-80. Interest rates were high because demand for money was high. Demand for real money, gold and silver, was high. But the dollar was losing value. In 1969, one could get four Swiss Francs for one dollar, but in 1979-80 period, the Swiss Franc was on parity with the dollar.

President Carter appointed Paul Volcker Chairman of the Federal Reserve Bank. The Prime Rate went to almost twenty percent. The price of precious metals collapsed and value of the dollar rose. Money from all over the world poured into the US. By 1992, the USSR and communism had disappeared in Europe. The end of history was proclaimed. The plunder of the ex-USSR and Eastern Europe, along with the rest of the world began with increasing tempo. A unipolar world of ten years duration was achieved. In Nature, when one extreme is reached, opposite forces start building momentum, and new forces started brewing on the horizon…

Vladimir Putin was appointed Prime Minister of Russia in 2000, and the economic decay started in the first decade of the New Millennium in the West. It is now worsening and encompassing the entire world. The central player in all this has been the dollar. It has no intrinsic value like gold, land or water, but is the instrument of US power. The US wants to maintain that power come hell or high water, and in order to maintain it, debt in dollar terms has to grow. The IMF and World Bank, along with other private organizations, are working overtime to trap more and more countries into unsustainable debt and milk them for all they are worth. This is the MODUS OPERANDI of capitalism…

But opposing forces are rising, and the de-dollarization of the world has began. The World is trying to dis-infect itself from the dollar. Very interesting and dangerous times are approaching. But the US will not willingly give up its instrument of power. It is negotiating trade deals with Europe, South America, and South East Asia to insure the dollar to be the supreme currency. It is confronting China in the South China Sea, but at the same time, it is enticing  it to join the IMF arrangement of Special Drawing Right Currency. The US wants the China to row the dollar-SDR boat, and the US would steer it. Whether China falls for it or not remains to be seen. China, Russia, Brazil, Iran, and other countries that have backbone are trading amongst themselves in their own currencies. The river of history is flowing and it cannot be reversed.

How much is the dollar really worth? Nothing. It is merely an instrument of power, intimidation, and war, like aircraft carriers. And history will be unkind to both. Only time will tell.

gold and the dollar in mortal combat!

The dollar and gold are in mortal combat. Up to the present the dollar has been supreme. The Bretton-Woods Agreement crowned the dollar as Emperor of the World. This gave immense power to the US. As a matter of fact, it gave immense super power to the US. All economic activity of the world was transacted in US dollars and not only was it the reserve currency of the world, it was the official currency of the world. It enabled the US to buy anything it wanted by either printing dollars or going into debt. The US lends money to other countries, especially to newly independent countries in Africa, Asia, and Latin America in order to trap them into dollar debt and to exploit them to the limits of exploitation….

Any leader who opposes this arrangement is punished. The list of past and present offenders is long: Mossadegh of Iran in 1953, Gustavo Arbenz of Guatemala in 1954, attempted coup of Castro in 1961, Bay of Pigs,Patrice Lumumba of  Belgian Congo in 1962, Saddam Hussein of Iraq 2003 and Libya’s Gaddafi in 2011. There are many others such as Juanio Quadros of Brazil in 1964. The Modus Operandi of the West was total exploitation of the world through economics and any leader who opposed this policy was accused of communism and was overthrown. ( Another good example was president Sukarno of Indonesia in 1965.) The US will go to any length to protect the dollar rule of the world; possibly even nuclear war.

The opposing force to the dollar is nature itself. Gold is the power of nature,of the universe. It has the colour, the energy,and the power of the sun. Gold and other precious metals were created when the Universe was created. All civilizations of the world,past and present,cherished gold and silver. Both gold and silver are symbols of power and wealth. He,who has the gold,makes the rules.

Gold does not need the dollar, but the dollar needs gold. The “value” of the dollar can only be valued in physical things. How many dollars are needed to buy a barrel of oil or a bushel of corn.? Agricultural commodities cannot be used as money except in barter deals. Oil and agricultural commodities are consumed and cannot be used as money, but they can be the path to riches through labour. According to the first Law of Thermodynamics, energy cannot be created nor destroyed. Gold cannot be created nor destroyed. It possesses the power and energy of the sun. The dollar needs gold to measure its buying power. The true buying power of any currency can only be measured in terms of gold.

Presently gold is being suppressed for obvious reasons: to convince people that the dollar, and other fiat currencies, stocks,and bonds are the way to go. Anything that can be printed such as fiat currencies, stocks, bonds, and annuities are paths of speculation and not of investment. The world is waking up and experiencing an epiphany. The countries of Afro-Eurasia and Latin America are accumulating gold and abandoning the dollar.That is the nightmare scenario for the US and the main reason they hate Putin. They want to destroy Russia and encircle China. They want to give China the Japan treatment of 1939-41, that is, economic strangulation. If they succeed, the dollar will be supreme, and gold will go to jail. If the US fails, the dollar will most likely go to zero. Only time will tell….