The Golden Truth: Global Economic Power Is Shifting From The West To the East

Wednesday, September 15, 2010

Global Economic Power Is Shifting From The West To the East

And concomitantly the currency devaluation wars escalate. I missed these two news items. Thankfully my friend and colleague "Jesse" of Jesse's Cafe Americain posted a must-read commentary today around these two news items.

First, two weeks ago France announced that it would leverage its presidency of the G20 next year into opening up discussions about reducing/replacing the U.S. dollar as the global reserve currency. This movement has been visibly gathering momentum for at least a year now and it underscores the fact that the world has fatigued of being economically controlled by an increasingly corrupted U.S. Government and banking system.

The second news event that grabbed my attention was that yesterday Germany announced that it wants the U.S. to relinquish IMF veto power in exchange for Europe doing the same. This to me is a velvet hammer request for the U.S. to cede a substantial amount of economic/political control over world affairs. This is huge. This is a subtle yet explicit acknowledgement of a transformational shift in the global balance of power from the West to the East.

And make no mistake, China has quietly and efficiently maneuvered itself into a position of economic and financial dominance. All that remains is for China to start wielding political power, something upon which it has demured every time the U.S. sends its eunuchs like Geither and Bernanke over to China to brow beat them over their currency valuation policy.

Here is the link to Jesse's blog post - I would urge everyone to read it carefully: LINK

I would also like to add that IF this shift of dominance that is occurring does not ultimately unfold into some kind of global military conflict, it would make this event a unique data point in human history.

2 comments:

EconomicDisconnectWednesday, 15 September, 2010
Great coverage and thanks for the tip on AU earlier. I stopped buying miners due to heartbreak long ago!
ReplyDelete
Replies
AnonymousWednesday, 15 September, 2010
Sorry, I side with someone like a Bob Chapman.

This 'disintegration' is more likely by design so that the elites and their tool (the Fed) can step in when anarchy begins (SHTF to most of ya'll) and offer a solution; A world currency and banking system of their design.

Hey, it worked in 1913.

Be afraid, be very afraid... for a world wide Fed/CB will no doubt make life very difficult for Gold owners (and yes, that includes me ...so don't rake me over the coals for being the messenger).
ReplyDelete
Replies

Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.