Tuesday, February 4, 2014

THE TRUTH BEHIND OUR CURRENT MONEY SYSTEM - A FORBES ARTICLE

If you have been frequenting this blog a lot, you will have the notion that I think our money system is just one big sham.  It is the greatest fraud perpetrated upon the American people - and the world since the beginning of time.  Really, you might call it satan's masterpiece.

The men behind the curtains are running out of options to use to keep the sham alive.  The only thing they have left is to sell the land out from under our feet.  If you do not have allodial title to your land, this just might be a possibility.  I was shocked when I first learned that my wife and I only owned the land on our second house down to the bottom of the foundation - the mineral rights belonged to another.  There was quite the coal reserve down below us - and those who were a lot more lawyered up than we were, were not about to allow us rights to that mineral wealth.  Because you bought your land in FRN's (Federal Reserve Notes) and not in some other form, you will never own the true title to the land, but another does.  Your master, the Federal Government does.  Even if you, in your most delusional state of dreaming think you own it and hold the title in your hand, you will always be a slave to the land through a system of taxation that never relinquishes control to you.  I expect things will be different in the Millennial Model I have in my mind.  If it is not, I, quite frankly, want no part of it.

There are many who cling to the old system - and will, against better judgement and principle, fight their fellow Latter-day Saints to maintain this preponderous, clunky state of monetary affairs.  They have too much skin in the game to give it up.  One I can think of is an old friend from my growing up days.  He is in a bishopric in Eastern Washington and we ran into him one Sunday while over there on vacation.  He is a solid man - good to the core and their entire family has a spot in my heart.  His mother really pushed me to get my Eagle at 14, before I would have gotten carried away with girls, cars and all the activities of High School and focus on preparing for a mission and college.  His father was a second father to me as the Scout Master - who was camping with me while my own father was away for long periods on business.  So, I tried to let this brother know that this economic collapse is coming around 2015 - but he would have none of it.  It was not good for his friends to see on FB.  He is a financial planner.  My words were bad for business.  So it goes......  I had reached the boundary of our friendship.

The truth is, all this will be put behind us as the new system, based on Consecration, rises up and begins to shine in its Celestial glory.  The generation who will have to wander in the wilderness (my generation - the one who has had one foot firmly planted in both worlds) for 40 years, until the next generation can rise clean, pure and free of the filth and blood and sins of their parents' generation, may not get to see Zion in her complete majesty.  That will be left for two of my children, maybe more.  The one who was taken early, will get to rise and be part of that.  If my wife and I are worthy and have willingly and sufficiently extracted ourselves by our overt actions from the filth of greed, selfishness and the desire to consume it upon our lusts, will likely be the ones to raise him.  This disconnection may be so that none of the old makes it into the new to pollute it anew.  Those base tendencies will molder with the older generation in the grave.  True, it has been foretold that sin will again rise towards the end of the 1000 year reign of peace, it will not have its roots from those who had one foot in and one foot out, in the beginning.  So, in this we have our marching orders - if we desire to be a part of this great work.  The very foundation is being laid as we speak.  Spencer spoke of the process that those who desire, can be part of the great City of Zion.  It is a tall order.  It will be a place of love and where sin is not welcome, nor tolerated.  The money system will not be there.  I long for that.

Here is what got me spun up from a reader:

Here's the translation from the Forbes link that I posted to you:  My commentaries are in red.

Inteligencia Financiera Global is honored to present this exclusive interview, with the renowned buisnessman Hugo Salinas Price, expert in the world of the monetary precious metals.
We are sure that our readers around the world will enjoy this interview.

Mr. Salinas, thank you for accepting this interview.
- As many people know this, you have been a lawyer in favor of freedom, of free markets, and honest money among other subjects.  You are the author of the proposed project of monetizing the pure silver money in Mexico.  Can this be a proposal that can be implemented in any country?  What is needed for it to be done?  Can gold be monetized in that way???
My proposal was, and is, giving a monetary value in local currency, to a silver coin that does not have a value assigned on its face.  The monetary value--higher than the value of silver contained in the coin, could be established, ideally, by the Treasury.  If the price of silver rises, this exchange rate could be increased to give the silver coin a higher value (It could rise so much because the price of silver in dollars increased, or because the local currency had a devaluation), but under no circumstance will the monetary value, once established, ever be reduced.  If the value of the silver in the coins falls, the monetary value will remain the same.
This is a completely plausible project.  Actually, this is what generally happened to silver coins until the middle of the 20th century.  You will see, the silver coins, in all the world, always had a monetary value higher than that of the silver contained in the coin (the same as our proposal).  But the silver coins disappeared when the price of silver rose after World War II.  What we propose is maintaining the silver coins as money, because if the price of silver rises, the monetary value of the coin will also rise (this was impossible in the 20th Century, because the monetary value of the coin was engraved on the coins.  We eliminate this problem, when we don't have a value attached to the money.) 
This project will only become a reality if a political leader of sufficient power:
A) Understands our project
B) Desires to do something to the benefit of the people that he leads
Right now, the expectations of our project are poor, because the "leaders" of the world are not really independent men or women.  They are under control of their own central banks, who form an international fraternity, of which the leaders are the Federal Reserve of the United States (the FED), the International Monetary Fund (IMF), and the Bank of International Settlements (BIS).  When something "monetary" presents itself in front of these supposed maximum world leaders, every one of them defers the subject to their central banks.  These, of course, are completely against anything that has to do with returning power to the people at large, as well as real protection for the individuals and their families.  They are against EVERY form of SAVING, their interests are completely in favor of promoting more DEBT, and NO more SAVINGS.  Each and every one of them considers that SAVINGS are a bane to GROWTH, and they want the people to spend money, not save their money.  And the silver coin promotes savings, which are the source of prosperity for everyone.
Gold cannot be monetized in this manner, only silver.  Gold in fact is money, so it cannot be "monetized" or "demonetized."  Everything which the governments can do is:
A) permit (the gold) to be used as money
B) put bureaucratic obstacles against the use of gold as money.  
Today, the governments put obstacles against its use as money.
Today, the value of one ounce of gold in Mexican pesos is 16,925 pesos (that is about 1250 dollars--Source:  Kitco, 23 January 2014).  Now, if the Mexican government said that this money of an an ounce has a monetary value of let's say, 20,000 pesos, that would NOT set the monetary value of gold higher, it would be a declaration that the peso has a lower monetary value.  That movement would not "monetize" gold, which is already money, but it would DEVALUE the peso to one twenty thousandth of an ounce of gold. 
 -Mr. Salinas, Why is it important to return to solid money (gold and silver)?  You know that the "modern" economists like Nouriel Roubini call gold "barbaric relics" and others call silver "the poor man's gold".
First kicker.
Mr. Barba, everything in our modern world is a complete lie.  Look where you want, and you will find the lies.  Our civilization is living on borrowed time, because you cannot face the truth of the reality and the problem of finding the staff of life in Fiction and Lies; you have to look reality in the face by way of the TRUTH, and not of the lies.  If we continue pretending that we can avoid reality by way of the lies, we will end up in the state of the barbarians.  The world is trying to live by the big lie of fiat money.  It will not work.  You face reality by truth, the truth is thinking that corresponds with reality.  Gold is money, and if we deny ourselves from facing that truth, we are lying.
- How did we come to today's global economic crisis, where the debts of all the world (above all in the developed world), are growing exponentially?  Is there a relation to this, public deficits, and the abandonment of the gold standard?
We got to this state because our leaders--in the universities and in politics--have desired to forget reality, and they have thought that using our brains we could pick and choose our realities.  So our philosophers and political leaders have tried to put reality on the back burner and in its place, use ficticious money that could be manipulated to maintain happiness in the people.
The problem is fundamentally moral.  Should political power be based on reality or in systematic cheating of the populations of the earth?  Our leaders have chosen the massive systematic cheating as an instrument of power.  What they will get will be chaos, complete disorder, and massive impoverishment.
One of the problems is that the world population is about to get to 7.5 billion human beings, and the fact of the matter is that poverty has not been eliminated, nor will it be eliminated.  There will always be people living in miserable conditions.  Now, that fact is politically incorrect!  And thus, the politicians lie to their people and print false money to distribute and pacify the people.  But these politics cannot eliminate the fundamental condition of life in this world, which is there will always be some poor people.  The efforts to try to alter this problem only lead to even more terrible conditions of total despotism of the governments, like the Bolsheviki communism of the USSR under Lenin and Stalin.
We have an illustrative example in the French Revolution of 1789.  In 1790, the Revolution had commenced and the scared buisnessmen contracted their operations.  The complaint was that there was not enough money.  And thus did the more brilliant Frenchmen thought that if there was scarcity of gold, they had the minds to solve that problem.  How?  By printing money!  Then when they began to print money, first, in moderate chunks.  But all they got was a rising price of gold in relation to their printed money.    So they started to combat against gold, to despise it, and to persecute those that had gold, and they printed endless quantities of money without end.  Everything turned out very badly, after sending the gold-buyers to the guillotine or to the gallows.  The people of Paris was condemned to hunger.  Napoleon ended this saying:  "I will pay in gold or I will pay nothing."  You cannot pick and choose the realities of this life, no matter how smart you are.  The alumni of the great universities of the world, aren't in agreement; they think that they are qualified to drive the world according to their brilliant ideas.

- Who benefits the most from this policy of permanent expansion of money and credit?  What can the average Joe do to protect himself from this attack on his private proerty and his adquisitive power?
The clear beneficiaries of the expansion of money and credit are those that receive the money and the credit first, before the rest of the populace.  They become richer, at least for a while, while the rest of the population sinks in welfare diminishment.  But eventually, everything converts to smoke and the heads start to roll, those of the guilty and also those of the innocent
The only thing that the average Joe can do is:
A) Understand the Situation, first and foremost.
B) Save a little gold and silver, that, perhaps, if lucky, will allow you to survive the inevitable collapse, which invariably comes after money and credit have expanded beyond all the limits.
 
- You think that the gold market (and the silver market) can be manipulated?  If that were so, what would be the purpose of said manipulation?  Could it last forever?
Of course the silver and gold markets are manipulated.  You either have to be blind or a Harvard graduate with a PH. D. in Economics to ignore this fact.
The purpose of manipulation is the same of the purpose of the French revolutionaries when they attacked gold when they started to print money (assignats) like crazy:  trying to suppress the indicators that show the destruction that they were bringing to pass with their limitless printing of fiat money.  Gold says truth, and as such, is an enemy of those who desire to cheat their own people.  Paul Adolph Volcker, who was a famous FederaƱ Reserve president, said one time "Gold is my enemy."
Gold will triumph over paoer.  It has always happened ever since the Chinese invented paper money many centuries ago.  But while we see this, paper money is twisting the economic realities at such a level, that enormous distortions are taking place in the markets.  Enormous errors of investing are going on.  All of this will become evident in the opportune time:  a gigantic collapse will happen and many of those who think they are super rich will discover that they have virtually nothing.

-Is it possible to return to the gold standard?  Would it help create employment opprotunities for the youth?
A return to the Gold Standard will not be possible until the thinkers and leaders start thinking in a different way to what they are thinking now.  We know that the people of Asia have not forgotten about gold.  They are frenetically buying gold.  They are seeing that which we (the USA) cannot see:  The dollar is condemned.  Maybe a new monetary order will be imposed by Russia and China acting in agreement.  At least, that is a hope.
There is only one way to face reality and the problem of human survival:  through a clear recognizing and acknowledging of the facts at hand.  Gold permits us to face the facts, like it or not.  We continue damaging the hope of the youth when we continue going farther from reality, and we think that obtaining riches in paper is something that can last forever.  The youth deserve the chance to construct their lives according to their capacity of facing reality head on, and that is the opprotunity that gold gives them.

- Do you consider that the world is governed by a certain group or groups of people that "control" the story of the planet?  Is this possible, or are they just conspiracy theories?
This is precisely how Satan works and cheats the people on this earth...look at the answer below.
Certainly the world, in its disorganized state, is governed by perhaps a thousand people, that use the false predominant economic theories to foment their permanence in power.  There perhaps is a smaller group that is very influential among these thousand individuals.  But the principal problem is NOT these groups:  The principal problem is the false predominant economic theories that are supported by billions of human beings that blindly accept them.  This is the reality:  They people enslave themselves.

- Mr. Salinas, we know that China has been accumulating very high quantities of gold.  China is now the number one consumer of gold, passing up India.  Why is gold so important for Beijing?  Is the Chinese government hiding something?  What do you think about it?
Evidently, the Chinese are not so stupid as to think that gold is no longer of vital interest and importance for humans.  China has thousands of years of antiquity, the United States still hasn't arrived at 250 years.  They (the Chinese) know that the reign of the American dollar is arriving at its end, and they are preparing for that moment.  They are not talking about it, because they know that those that think, understand China's motives, while it is useless to try to explain their reasoning to those who have no desire to think

-Last year, the Bundesbank (the German central bank) reported that it would repatriate all of its gold from Paris and part of what was supposed to be maintained by the Federal Reserve of New Youk (NY-FED), in the period of 2013-2020.  Nevertheless, in this first year, they only got 37 tons of gold, of which only FIVE tons came from FED-NY.  In your opinion, what is the reason for this delay?
This is the main kicker.
The reason is VERY clear:  The USA no longer has the gold they say they have.  The USA was the custodian of the flask of the golden cookies, and simply the USA ate all of the golden cookies.  There is NO gold remaining...

- In one of your recent articles (titled "the Siren Song of the Welfare State"), you write that in this world the "national management" of an economy means "making millions of people do what they would not do if they were permitted to do it for themselves."  Can you explain this, and why the result of this lack of liberty is "worldwide socialism?"
That is very simple.  When governments try to manage the economy, they have to make the people do things they wouldn't normally do if they were permitted to do it by themselves.  That is obvious.  If a government permits that the people do what they desire, without interference, the government would not be "managing" anything.  If the government wants to "manage the economy it HAS to interfere with what individuals would otherwise do if they were truly free.  The "government management" MEANS that you are interfering in the decisions of individuals.  When the government prints money, it is twisting the facts of the economiy and driving individuals to make decisions they otherwise would not make, if the money used were gold.  So we see people that subconsciously do what they would not do if they were using real money.  Printing money is one of many ways to "manage" a modern economy through massive disinformation, because money is a transmitter of economic information through the prices.  If the money is false, the information that it provides (the prices) is also false. 
Now, given that "governmental management" means interfering with individual decisions, the result will be impoverishment, because the people always try to maximize its own benefit through their own decisions, and if they are not free to make them, they are fighting a losing battle to obtain their own benefits and progress:  they have to take second best or third best decisions, all of them to their detriment.
So this condition leads to less prosperity.  As prosperity diminishes, the governments claim that they need more power, a stricter management, so that things can go better.  And this process of more and more management finally ends in someone saying, "Socialism is the logical choice."

- In another one of your articles, "When Reality Overthrows Imagination") you say that there has never been a moment in history , in which humanity has lived in this real world, physically tangible, trusting so much in the brain capacity of imagination.  Is this a problem that affects the life of the people?  Do we have too much confidence in technology and erroneous economic theories?  Why?
Imagination is a marvellous and beneficial ability of the human mind, without a doubt.  But imagination has to find its anchor in reality.  If we have no anchor, we are drifiting off course in a dreamworld  This is today's world, a Dream world, based on ficticious money that is being created without limit.  Look at the fantastic plans of Japan to create vast, astronomical sums of fiat money to escape their economic scare.  You have to have imagination, yes, but anchored in reality, not in fantastic dreams.  We are dreaming towards a very real Hell, thanks to imaginary money, which is what we are obligated to use--all the money in all the banks is only imaginary money.
The world is in love with technology and thinks that its biggest triumphs are sufficient enough to affirm with all confidence that the technology can resolve the problems of humanity.  But the problem is that technology is only in charge of the PHYSICAL universe which is subject to predictable responses.  The sphere of human action is NOT susceptible to technology, because humans have free will, which atoms do not have.  It appears that our so-called "economists" of today forget that very fact.  They want to "manage" us to prosperity, forgetting that we have free will and that we will inevitably frustrate their plans for us.  But, they will keep trying to "manage" us until we collapse ourselves into a new Dark Age.  That is what all of humanity is going to get, unless we connect the dots.
Thank you for your time and responses Mr. Salinas.



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