For several years now we, the “west”, have been subjected to economic upheavals vaguely blamed on bankers. A lot is said in corporate media about the roles of low-level banking institutions, but not much is said about the larger, really important, banks – the ones that create and distribute currencies. It is with these institutions (IMF, World Bank, BIS, Federal Reserve) that the core problems are to be found. National central banks are problematic too, but they’re secondary. Although the Federal Reserve is technically a national central bank (a privately owned one) the dollar’s role as a world reserve currency gives the Fed a particularly strong economic role. Problems originating with the FED have global consequences.
Economic problems originating from the Fed go back to its creation almost a century ago and have been intrinsically linked to the role of precious metals as the basis of money, especially gold. Precious metals as the bank vault basis of money bring economic stability because it restricts the banks ability to inflate the economy by increasing the money supply. The Fed has persistently fought to remove this restriction and maintain a world reserve dollar currency based on nothing more than paper dollar printers and the Fed management’s decisions to print money on demand. The reason the Fed has pursued this kind of monetary policy is very simple … power. The power to create new paper money, and choose who has access to excessive loans and at what levels of interest, gives the Fed a power greater than the US government. Corporations (including news media) and political parties can be subjected to loans upon condition. Hence there are very few news media sources or political parties that speak out against Fed monetary policy.
If the Fed were to adopt a monetary system based upon precious metals, one in which new paper and electronic dollars could only be created in relation to increased precious metal reserves in the vaults, then their power to subvert politics and economics would be drastically reduced. The Fed would become merely a secure storage facility for national precious metal reserves, which is what it should be.
But today’s economic problems aren’t limited to decisions made by the Fed. They extend to other national and global banking institutions who, often in conjunction, have pursued economic policies similar to the Fed. National banks across Europe and North America have been selling off their most important economic asset, gold, onto private markets for decades. Gordon Brown and the Bank of England famously cost the UK billions with their selling of 395 tonnes of gold (over half of British national reserves) between 1999 and 2002. Since 1990 other western bank gold sales include:
- Austria – 354 tonnes
- Switzerland – 1300 tonnes
- Belgium – 1031 tonnes
- Canada – 459 tonnes (reduction of reserves to just 3 tonnes)
- Spain – 242 tonnes
- Netherlands – 1100 tonnes
- Australia – 162 tonnes
- France – 565 tonnes + 17 tonnes transferred to the BIS that are not accounted for in BIS accounts.
- Germany – 46 tonnes
- Portugal – 225 tonnes
- Sweden – 54 tonnes
- BIS (Bank for International Settlements) – 72 tonnes
- ECB (European Central Bank) – 271.5 tonnes. Note: in the same period the ECB has continued to accept large amounts of gold from national central banks as part of their membership conditions.
- (source report: MAJOR CHANGES IN CENTRAL BANK REPORTED RESERVES 1990-2009 – World Gold Council).
By strange comparison, the Fed have sold off only 6 tonnes of gold out of a supposed reserve of 8146 tonnes and even that was simply used for creating commemorative coins. Of course, the question of whether this reported gold actually exists in Fort Knox and in what quantity may be a factor. A full physical audit of Fort Knox gold hasn’t been conducted for decades.
As these massive gold sales have been conducted China, Russia and India have been buying up large amounts of gold and filling their vaults. Russia’s reserves have increased by almost two fifths since 2003. China’s reserves have increased by more than fifty percent in less than ten years to over 1000 tonnes, and we’ve heard plenty abount the emerging economic prowess of China and India. Basically the “west” has been abandoning gold, while the East have been adopting it.
Monetary history is replete with economic lessons about gold and other precious metals. The most long-lived, stable economic system was that of the Byzantine Empire. They had 800 years of economic stability through the use of Gold coins (no paper money, no electronic blips). By contrast the French Assignat was a baseless paper currency, excessively printed, that led to hyperinflation and economic ruin in the late 1800’s. Recovery was eventually attained by adoption of the gold Franc coin, introduced by Napoleon.
Those are just two of many examples, all of which are either forgotten or simply ignored by supposedly professional western bankers today. One of the great ironies of this western monetary policy is that large stores of national gold are still widely accepted as collatoral for international loans.
So how has this catastrophic lapse in economic policy spread across the west?
One source of great interest is the Trilateral Commission, an international, globalist think-tank consisting of hundreds of European, American and Japanese members, including top level politicians, national bank representatives, media tycooons and powerful corporate bosses.
The TCs first publication in 1973 is called Triangle Paper 1 – Towards a Renovated World Monetary System. This is the TC’s master-plan to create a global currency based on nothing more than paper and computer blips. Among the economic aims outlined is this statement: “Sell gold, on a cooperative and coordinated basis, into private markets, with gains to be transferred to international financial institutions for development assistance.” This backward thinking approach to money continues today. In spite of 1000s of tonnes of gold being sold off, especially since 1990, by countries who just happen to be involved with the privately owned Trilateral commission, gold prices today continue to rise and rise. In the TC’s corresponding 1973 document Trialogue 1, “inflation and it’s consequences” is identified as a “common domestic problem”. They knew the problem existed. They knew it would continue. But their solution … a new global monetary system absent of precious metal discipline. This blindfolded approach to money is a central factor in the current “world economic crisis”, of which Trilateral Commission participating countries (the ones who’ve been selling off gold) are the primary victims.
Let’s follow the example of our seemingly wiser Eastern friends. Retain and build up our reserves of precious metals. They are the real reserve currencies; the default money which people and countries turn to when their own baseless computer/paper money has caused economic ruin.