3 Reasons Central Banking is a Plague on our Economy ...

Millions of American’s are thinking about pulling their money out of the big banks this week, and of course the mainstream mediahas wasted no time in marginalizing the real issues at play.

The banking industry has been an enemy of this country since its inception and the resistance that is boiling over right now goes a little bit deeper than overdraft fees.  Before we take the banks head on and start thinking about ways we can stop them, let’s review some of the fundamental reasons why banking (as we know it) is a plague on our economy and our way of life.

FIAT CURRENCY AND INFLATION – A fiat currency has been described by many as “Currency that agovernment has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith.” (Source)

In other words the money you have in your pocket is just worthless paper that only has value because thegovernment says it does. This is why we have a constant increase in the cost of living that is known asinflation.  The Federal Reserve Bank assigns a certain value to our paper currency, but that value is constantly diminishing because that same bank continues to print more money, thus taking value away from the money that is already in circulation.  So when the price of food goes up at the store, it doesn’t mean that the food is getting more expensive, it just means that your money is less valuable than it was when you made it, meaning that now you need more of it to pay for the things you need.

FRACTIONAL RESERVE LENDING AND USURY – Fractional reserve lending means that banks are lending out money that they don’t have; in other words, they only have a fraction of the funds in their bank. This is all perfectly legal, under the laws that have been created and pushed through this elite class, of course.  So acentral bank or government that uses fiat (worthless) currency and distributes money using fractional reserve lending can lend much more money than they actually have and then charge interest on the money that never existed in the first place.  This really is one of the best and most well-thought-out scams of all time.  This process of creating money out of thin air and charging interest on its use automatically creates a system of debt and dependence where those who aren’t born with inherited resources or the ability to print money are ultimately indentured to those who have enough extra real or imagined wealth to lend it out at interest.  Lending money at interest whether it exists or not is called “usury”, an immoral practice that is no different than the “loan sharking” that is said to take place in organized crime.  What we have in the global financial market today is a system that takes usury to a whole new level because traditionally bankers and goldsmiths were limited to lending out only the money that they had in their coffers, but with fractional reserve lending they are now allowed to lend out as much money as they want, even if they don’t have it.

WAR – The banking industry may have not created the concept of war altogether, but it has certainly made it far more dangerous and deadly.  Without fiat currency, fractional reserve lending and the “invisible tax” known as inflation, governments would be forced to rely on taxing their populations directly to fund their wars, a venture that rarely ends well for the establishment.  When taxes are raised during wartime, wars get unpopular very quickly, but if the government is able to extract the money that they need from the population through the use of inflation, most people won’t catch on until it’s too late.  The same goes for a growing homeland police state. If the people are heavily taxed and see a direct increase in police technology there will undoubtedly be outrage, but if the price of living just slightly increases every so often it will be much more difficult for people to figure out where their money is going.

For these core reasons, and more, I urge you to join the millions of American’s who are withdrawing their financial support from the major banks.  The ideal thing to do would be to put your money into tangible resources, but if your life situation makes this difficult then maybe just switching banks is best for you.  You really have nothing to lose, and everything to gain.  Smaller banks and credit unions are typically a lot easier to deal with and have far better track records when it comes to customer service. Of course, you’ll also be making an effort to bring down the system that enslaves us, by simply removing your support from it.

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Why Gold Stocks are Set for a Big 2012 ...

Last week we discussed the concept of relative strength. Again, relative strength is the measuring of one market against another. There are perhaps 1000 mining companies and maybe 5% of them are worthy of your research and investment. Fundamental analysis should lead you to the best companies while technical analysis (relative strength analysis in this case) can generate a precise list of top prospects. Today we are focusing on relative strength in a larger context and will then apply it to the gold stocks.

One of the best times to use relative strength is during or after a strong market selloff or panic. After 2008, I was most bullish on Gold and Agriculture for the simple fact that both didn’t have the long-term technical damage that occurred in most markets. Most markets plunged below 2005 lows. Markets that escaped that fate and held up reasonably well would make new highs first and well ahead of global stock indices (which have yet to make new highs).

In the chart below we show various markets (Gold, AGs, T-Bonds, Chile, S&P). Gold bottomed in late 2008 above its summer low in 2007. Agriculture prices bottomed slightly ahead of their bottom in spring 2007. Bonds maintained their uptrend in 2008 and beyond. Chile has been one of the strongest markets (held above 2006 lows) and surged to new highs while the S&P is nowhere close to a new high. The other four markets had the best relative strength in 2008 and thus performed the best from 2009-2010.

So how does that history apply to today? We just had a mini-panic or a mini-2008. The stock market likely put in an intermediate bottom. This doesn’t mean it will breakout but it means the lows are safe for a while. Now its time to spot the relative strength leader which will be a leader in the immediate future. In the chart below we compare gold stocks to commodity stocks, emerging markets and the S&P 500.

While emerging markets and commodity shares are in structural bull markets, both will soon meet multi-year resistance. Also, both broke their previous 2011 lows. Essentially, both have short-term technical damage to repair and long-term resistance to overcome. Meanwhile, the gold stocks have been in a consolidation for 12 months and held above their summer low during the mini-panic. We see a combination of relative strength and very limited overhead resistance.

A weekly close above $67 in GDX should usher in the beginning of a true bull market move in the gold stocks. After viewing these charts one can visualize the gold stocks galloping higher in 2012 while their commodity and emerging market counterparts encounter multi-year resistance. The reasons do go beyond technical. We’ve written about the low valuations, lack of ownership and the bull market moving towards its recognition point. The recent double bottom in GDX should make one feel more comfortable. Their relative strength in 2011 indicates leadership and potential for a major move higher in 2012. If you’d like professional guidance in navigating this bull market and finding the best performing stocks then we invite you to learn more about our service.

Source

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Video: World Banker In Stunning Confession ...

THE FORMER PRESIDENTOF THE WORLD BANK, JAMES WOLFENSOHN, MAKESSTUNNING CONFESSIONS AS HE ADDRESSES GRADUATE STUDENTS AT STANFORD UNIVERSITY. HE REVEALS THE INSIDE HAND OF WORLD DOMINATION FROM PAST, TO THE PRESENT AND INTO THE FUTURE. THE SPEECH WAS MAS MADE JANUARY 11TH, 2010. THE NEXT 19 MINUTES MAY OPEN YOUR MIND TO A VERY DELIBERATE WORLD.

HE TELLS THE GRAD STUDENTS WHAT’S COMING, A “TECTONIC SHIFT” IN WEALTH FROM THE WEST TO THE EAST. BUT HE DOESN’T TELL THE STUDENTS THAT IT IS HIS INSTITUTION, THE WORLD BANK, THAT’S DIRECTING AND CHANNELING THESE CHANGES.

WOLFENSOHN’S OWN INVESTMENT FIRM IS IN CHINA, POISED TO PROFIT FROM THIS “IMMINENT SHIFT” IN GLOBAL WEALTH.

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Occupy Money: Pay With Silver To Beat The Banks!

TARGET: BANK OF AMERICA-AT $6.47 A SHARE ON 20 OCTOBER. THAT IS BECAUSE OF MOVE WITH MERRILL DERIVATIVES ON MONDAY. IT HAD BEEN AROUND $5.00.  THE MARKET GAVE IT  $1.47 BECAUSE THEY THOUGHT THAT THE TAXPAYERS WERE GOING TO EAT THE LOSS.  WRONG.

People are now at the snapping point as B of A adds a $5 per month fee to use a debit card for purchases.   Nothing if you only use the card at the ATM.  A major hassle to go to the ATM before getting gas, etc.  The average Joe will pay the $5.00 fee and that’s what they are counting on.

This is how we corner them.  We OCCUPY MONEY.  It’s a lot of work to go down to the demonstration.  It smells like stale urine because people haven’t been very tidy.  You might get arrested for doing nothing more than walking down the street.

You can OCCUPY MONEY where ever you are!  If you have a bank account, you can convert some of the money to silver and spend it.  If you can’t attend a rally, this is a way for you to participate.

It’s an instant demonstration – a proclamation of freedom.  And the merchants can help support the people, too.

The banking powers aren’t counting on all the citizens out there to go off the banking grid.  This will start with small merchants who are being trashed by the big banks.  They will accept silver U.S. coins as payment for their merchandise because they want real money.

Banking customers are tired of getting near ZERO percent interest payments.  Why keep your money in a bank when you can buy silver coins and put them in your mattress.  People may say “you could get robbed at home”.  We say “You are GUARANTEED to get robbed at the bank”!

Paying with genuine U.S. silver coins sends a strong message to all….we don’t want any more of that “fake”Federal Reserve money.  We’re tired of the bankers controlling the money supply and stealing the value from our currency.  Pushing people out of their homes.

Go into any merchant and bring your silver coins.  Tell them you want to pay in genuine U.S. money.  Real money.  Not that fake electronic and paper money that depreciates by the day.  It’s 100% legal since it’s 100% legal U.S. currency.

Tell the merchants you visit to post a sign by their register with that day’s price of silver and the amount dimes, quarters and halves will buy.  Tell them to help Occupy Money.

Do it now.

Occupy Money- It’s Everwhere You Want To Be!

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Vatican Calls for a Central World Bank ...

the Pope officially gave his support toOccupy Wall Street and, likeGorbachev, proposed a solution that goes EXACTLY at the opposite of the protester’s demands: an international organization regulating economy. In other words, a Central World Bank. In other other words, a New World Order.

Thank you Vatican for your input. Jesus was indeed a big advocate of international banking. He also preached about a world financial system that would only benefit the elite. Yup, that’s what he did alright (sorry for the extreme sarcasm).

Enough about Jesus. Now listen to my economic policies!

Here’s an article about the Vatican pushing for the same international system as the Rockefellers and others.

Vatican Calls for Oversight of the World’s Finances

The Vatican called on Monday for an overhaul of the world’s financial systems, and again proposed establishment of a supranational authority to oversee the global economy, calling it necessary to bring more democratic and ethical principles to a marketplace run amok.

In a report issued by the Pontifical Council for Justice and Peace, the Vatican argued that “politics — which is responsible for the common good” must be given primacy over the economy and finance, and that existing institutions like the International Monetary Fund had not been responding adequately to global economic problems.

The document grows out of the Roman Catholic Church’s concerns about economic instability and widening inequality of income and wealth around the world, issues that transcend the power of national governments to address on their own.

“The time has come to conceive of institutions with universal competence, now that vital goods shared by the entire human family are at stake, goods which the individual states cannot promote and protect by themselves,” Cardinal Peter Kodwo Appiah Turkson, the president of the pontifical council, said as he presented the report on Monday. “That is what pushed us.”

The language in the document, which the Vatican refers to as a note, is distinctively strong. “We should not be afraid to propose new ideas, even if they might destabilize pre-existing balances of power that prevail over the weakest,” the document states.

The message prompted comparisons with the rallying cries of protest movements that have been challenging the financial world order, like the indignados in Madrid and theOccupy Wall Street protesters in New YorkCity. Still, Vatican officials said the document was not a manifesto for disaffected dissidents.

“The document proposes ideas that seem to be in line with those proposed by the indignados, but really we are in line with theMagisterium of the church,” said Bishop Mario Toso, secretary to the pontifical council, referring to the church’s teaching authority. “It is a coincidence that we share some views. But after all, these are proposals that are based on reasonableness.”

The document is a reminder that the Catholic Church, without getting involved in policymaking, still seeks to shape its principles. “To function correctly the economy needs ethics; and not just of any kind, but one that is people-centered,” the document states, paraphrasing an encyclical that Pope Benedict XVI issued in 2009 calling for greater social responsibility in the economy.

In the United States, the report was embraced by politically liberal Catholics who are concerned about the widening gap between rich and poor. Vincent J. Miller, a professor of Catholic theology and culture at the University of Dayton, wrote, “It’s clear the Vatican stands with the Occupy Wall Street protesters and others struggling to return ethics and good governance to a financial sector grown out of control after 30 years of deregulation.”

John Gehring of Faith in Public Life, a liberal advocacy group in Washington, said, “In the next Republicanpresidential debate, someone should ask Newt Gingrich and Rick Santorum, both proudly Catholic, whether they support the Vatican’s call for more robust financial reform.”

Politically conservative Catholics, meanwhile, hastened to assure their camp that the document does not carry the full force of church teaching, since it was produced by a Vatican office, not by the pope himself. And some dismissed the report as nothing new, or simply misinformed.

Writing in the National Review, Samuel Gregg of the Acton Institute, which promotes free-market economic policies, said of the document: “It reflects rather conventional contemporary economic thinking. Unfortunately, given the uselessness of much present-day economics, that’s not likely to make it especially helpful.”

- New York Times, Vatican Calls for Oversight of the World’s Finances

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The Demise Of The Dollar ...

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading.

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China’s former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. “Bilateral quarrels and clashes are unavoidable,” he told the Asia and Africa Review. “We cannot lower vigilance against hostility in the Middle East over energy interests and security.”

This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil – yet again turning the region’s conflicts into a battle for great power supremacy. China uses more oil incrementally than the US because its growth is less energy efficient. The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold. An indication of the huge amounts involved can be gained from the wealth of Abu Dhabi, Saudi Arabia, Kuwait and Qatar who together hold an estimated $2.1 trillion in dollar reserves.

The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. “One of the legacies of this crisis may be a recognition of changed economic power relations,” he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China’s extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America’s power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states.

Brazil has shown interest in collaborating in non-dollar oil payments, along with India. Indeed, China appears to be the most enthusiastic of all the financial powers involved, not least because of its enormous trade with the Middle East.

China imports 60 per cent of its oil, much of it from the Middle East and Russia. The Chinese have oil production concessions in Iraq – blocked by the US until this year – and since 2008 have held an $8bn agreement with Iran to develop refining capacity and gas resources. China has oil deals in Sudan (where it has substituted for US interests) and has been negotiating for oil concessions with Libya, where all such contracts are joint ventures.

Furthermore, Chinese exports to the region now account for no fewer than 10 per cent of the imports of every country in the Middle East, including a huge range of products from cars to weapon systems, food, clothes, even dolls. In a clear sign of China’s growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China’s reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.

Ever since the Bretton Woods agreements – the accords after the Second World War which bequeathed the architecture for the modern international financial system – America’s trading partners have been left to cope with the impact of Washington’s control and, in more recent years, the hegemony of the dollar as the dominant global reserve currency.

The Chinese believe, for example, that the Americans persuaded Britain to stay out of the euro in order to prevent an earlier move away from the dollar. But Chinese banking sources say their discussions have gone too far to be blocked now. “The Russians will eventually bring in the rouble to the basket of currencies,” a prominent Hong Kong broker told The Independent. “The Brits are stuck in the middle and will come into the euro. They have no choice because they won’t be able to use the US dollar.”

Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years’ time. The current deadline for the currency transition is 2018.

The US discussed the trend briefly at the G20 summit in Pittsburgh; the Chinese Central Bank governor and other officials have been worrying aloud about the dollar for years. Their problem is that much of their national wealth is tied up in dollar assets.

“These plans will change the face of international financial transactions,” one Chinese banker said. “America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate.”

Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.

Source

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Gold Signals The End ...

Gold remains our best means of economic measurement. It is not a perfect or 100% consistent measure of wealth, but it is our best. Due to its monetary properties, gold can be used to measure wealth across generations. Just like we have the sun and moon to discern the times and seasons, I believe, we have gold to discern changes in wealth. It is interesting that the sun is often compared to gold, and the moon to silver. Just like a day in the Middle Ages is comparable to a day in this century, an ounce of gold in the Middle Ages is comparable to one today.

Currently we use fiat currency, like the dollar, for economic measurement. However, this creates a huge distortion due to the fiat currency being highly unstable. Can you imagine what would be the effect on our planet if we did not use the normal cycles that the sun and moon provides us with? Our ability to produce food for example, could be severely disrupted, leading to famine or possible extinction of mankind.

By using a highly unreliable measure like the US dollar, our ability to make proper economic decisions is severely impaired, since we (the common man) are not easily able to distinguish between a real increase or decrease in wealth , for example. This causes a great misallocation of wealth and will lead to a severe economic depression.

When you look at a chart of the average day’s wages in dollars compared to the average day’s wages in gold ounces, with some analysis, you will understand why the dollar cannot be used as an economic measure. These charts show that the average daily wage for Americans, have gone from about $28 in 1964 to about $152 in 2010, whereas in gold it has fallen from just short of 60% of an ounce of gold in 1964 to just 12,67% of an ounce of gold in 2010.

Gold is telling us that people are now earning less money than they did in 1964, whereas the dollar is telling us the opposite. Which measure is telling the truth? This bizarre situation is evident in our “economic” and “accounting” language, when we talk about a real and nominal increase in prices. An example would be when an economist tells you that house prices has increased in nominal terms, but decreased in real terms. What? How can something go up and down at the very same time? Using a proper measure, there would be no need to have a “nominal” as well as a “real” analysis.

These bizarre and illogical concepts in our economic language are as a result of the bizarre measure of value called fiat money. We have to look at the right signs to discern the times. I prefer to look at the “behaviour” of gold to discern the economic times.

What is gold’s “behaviour” telling me?

Gold Rallies and Debt

Since 1900, we have had three major rallies in the gold price. The first started during the Great Depression, the second since about 1968, and the current since about 2001. Note, the gold price went up during the Great Depression, since most things as measured in currency (gold) depreciated. Further to that, in 1933, due to increased demand, the gold price was increased from $20.67 to $35. During the first two rallies, there were major economic declines. The economic decline during the Great Depression was much worse than that of the 70s. This is mostly due to the difference in debt levels during the two periods. The debt level during the great depression was far greater than that of the 70s. The greater number of defaults, due to the bigger debt, took a bigger chunk of value out of the economy.

The current gold rally is still in progress. Debt levels now are greater than during both the previous major gold rallies. It is believed that in 2008, total debt as a percentage of GDP in the US stood at more than 340% compared to 265% during the great depression. At some point during the great depression, debt levels collapsed, causing a major economic decline. The rally in gold is a way reflection of how debt levels collapse. The current major rally in gold is thus telling me that we are likely to have an economic decline far greater than that of the Great Depression, in the US and most parts of the world. This economic decline has already started, and is about to intensify.

New Monetary Order

In 1933, Franklin D. Roosevelt changed the monetary order in the US, with Executive Order 6102. Fundamentally the dollar changed its nature due to this order, and was therefore no longer backed by gold – for US citizens. As mentioned earlier, this and the revaluation of gold was done, due to the increased demand for gold. The principle is: people became aware that there were far more claims on gold (read dollars) issued than the gold available, and therefore demanded their gold. This was mainly the result of the increase in credit during the 20s. As explained above, this run to real money (gold) is basically the flip side of the contraction of credit or debt.

So, the revaluation of gold was done to halt or slow the debt contraction, with those who handed their gold to the government, paying the bill for this decrease in debt contraction. Also, it prevented the banking system from leaking more gold, due this increased demand for gold. The system was recharged, and ready to go, as we know, another 38 years.

The late 60s to early 70’s (start of the second gold rally) brought the same problem, however, this time it was sovereign nations that became aware that there were far more claims on gold (or dollars) circulating than the gold that the US had available. Some nations requested their gold because of this fact, and the US banking system was once again leaking gold like it did during the Great Depression.

Like in the 30s, the US knew that it would not be able to deliver the demand for gold, due to this “gold run”, and it therefore decided to close the “gold window”. Just like the US citizens, nations could no longer exchange their dollars for gold. This stopped more gold from leaking out of the US reserves, and the system was yet again recharged. The bankruptcy of the US was now well hidden, and it seemed like the perfect con. No more demand for gold from neither citizens nor sovereign nations that might expose the bankruptcy (too many dollars), too few ounces of gold.

Dollar could now be printed without any accountability to those users of dollars (basically the whole world). They have done it: the perfect con. Or have they?

No, there might be no one that will be able to bring the bankruptcy to light, due to the seemingly faultless plan; however, it is the natural laws that will bring this con to an end.

How? Debt levels are once again at historically high levels. The level of debt that this system can carry is limited. The level that it is limited to might not be known, however, one can look at natural laws in order to estimate a possible limit. It is my believe that the natural cycle (limits) for these type of systems (man-made systems) are linked to the human cycles of 40 years , 70 years and 80 years, as per the Holy Scripture.

The period of 40 years is associated with middle age, judgment, as well as a generation. The period of 70 years is associated with a life-time and judgment. The period of 80 years is associated with an extended life-time, two 40 year periods and also judgment.

The history of this dollar monetary system appears to follow these natural cycles with an almost scary accuracy. From the period of the Great Depression (gold revaluation) to Nixon closing the gold window is more or less 40 years. That is the period of 1929 to 1933 to 1971.

The period from 1929 peak in the Dow – when the stock market crash, as well as the peak in the Dow/Gold ratio – to 1999 when the stock market made a peak (1^st of 2 peaks), and the Dow/Gold ratio peaked, is 70 years. Remember, the Dow/Gold ratio is a significant indicator of the extent to which claims on real assets exceed the actual real assets; therefore, it is an extremely important signal when determining turning points in the current fiat money system.

The year 2014 will be 70 years since the Bretten Woods agreement that brought about the current monetary system, with the dollar as reserve currency. This is how the relationship with the US and the gold of other nation states in the US came about.

We are already in the period that marks 80 years since the Great Depression. The year 2013 will mark 80 years since the 1933 gold revaluation. It is currently 40 years since the closing of the gold window.

The point here is that the natural cycles appears to be very relevant to this man-made monetary system, and that it is very likely that we are extremely close to the end.

The end of the monetary system is likely to come before a peak in gold, if by decree (creation of a new monetary system), but still forced by natural law. If the system is ended by natural law, then it is likely to come at the peak in gold or after. The peak in gold I refer to is gold as measured against other real assets (not paper money).

Another possibility to keep in mind is the fact that gold could also be outlawed by most governments. I am not saying that this will happen, however it is a possibility, and should be watched for. If this comes to being, I believe we have entered the period when this might happen.

Again, the nature of gold allows us to keep track of the times and seasons of this corrupt system, by studying the behaviour of gold.

Gold Fractal Analysis

Based on the above analysis and long-term fractal analysis, it appears that we are close to a top in gold (in terms of fiat currency and real assets). However, let this not confuse you to think that we are close to a top in the price of gold in terms of the dollar or other currency amount.

We are close in terms of time (as early as the end of 2012 to the beginning of 2013), but $ 1920 is not close to $10 000, should $10 000 be the peak in the gold price, for example. It is also likely that gold will not have a peak in fiat currency as such, but instead, just discontinue trading in fiat currency. That means we might come to a point where gold will only be exchanged for real assets.

Below is a 38yr gold chart (thanks to goldprice.org):

I have done some fractal analysis on this chart. I published this analysis the first time when gold was well under $ 1200 dollars. The fractals indicated have astonishingly continued to keep its similarity as we have progressed during this gold bull market.

On the chart I have indicated two patterns marked by the numbers 1 to 3. The first pattern (fractal) forms a small cup between 1974 and 1978, compared to the second pattern which forms a big cup between 1980 and 2008. If the bigger pattern continues it similarity to the smaller pattern, then the parabolic (based on a long-term scale) move in gold should continue, taking gold to multiples of the current price. I have indicated the point in the 70s that is similar to point where we are at now.

What I wanted to highlight here is the fact that according to my fractal analysis, it appears that gold has reached a critical point where it is expected to rise really fast. Also, this analysis suggests that we could peak as early as the end of 2012 to 2013, and we should as a minimum reach $ 4000 by then. This is consistent with the above analysis regarding gold and the monetary system.

Please note, the above fractal analysis is just a very big picture analysis, as well as a simplistic analysis prepared for this article. One has to also look at the context in which both patterns exist as well as look at confirmation standards.

My premium subscription service and long-term fractal analysis report provides more usable information regarding the price of gold and silver. Please contact me for details as well as a free current edition of my premium service.

Other Important Points

I believe there are enough signs that indicate that we have entered a period where we should expect the worst. We should thus prepare for the worst, with the hope that we would be able to cope with whatever comes our way.

Due to the great probability that the fiat money system might come to an end soon, it is not desirable to exchange physical gold and silver for fiat money. Where possible it is better to exchange them for real goods and services and productive assets.

An economic depression is virtually assured due to the bankrupt monetary system as well as the extreme debt levels.hubertmoolman

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