[Updated 4 Dec 2009 15:01 GMT]

All the gold pundits are shrieking about gold. Even central bankers are panicked. The propaganda outlets have recently started adding to the chorus. We believe that those who allege market manipulation of prices are all wrong - they are looking at the wrong side of the equation. The most manipulated side of the equation is the USD side.

USD bank liabilities are disappearing from circulation as fast as the twin towers collapsed... free fall. No buckling or bending. The Dow-Gold ratio gives evidence of this, the most manipulated ratio of our time. We believe it will breakdown and drop sharply as the intervention ability of the Plunge Protection Team fades. The chart below updates once a day. You can bookmark this page to follow it for yourself.

 Dow Gold - The Last 3 years

[Update 4 Dec 2009] The POG (Price Of Gold) is beginning to go parabolic as insiders try to get something of value for the inherently worthless circular-fraud liabilities of the UST. It is a sign that the end game is near - failure of the UST itself. The liability of the UST to pay a dollar in legal tender is independant of the number of banks left standing. A military solution would not be unexpected, shortly after which one would expect everything to tank. This chart below updates as well.

Gold Price, 30+ Years

 

Public Notice to the JAG, the World Court and the SC: Clear evidence - The long term DOW/Gold ratio shows how the population has been scammed thrice:

 

Our old essay Why Gold?! gives you a brief synopsis. We wrote it when gold was $460. We updated it at $675 on 3 May 2006. The analysis still stands and our comprehension of what is going on just gets better. In this essay, we share with you the secret so you can do it too.

The key to the mystery: What sets a price?

Five people are around a table playing monopoly. Each has a 100 bucks. If all of them got together, could they bid 1000 bucks for that house. Answer: NO. Elementary analysis and Rule 101: In a lawful fixed money system, prices of assets (or anything) do not keep rising.

Corollary - Rising index prices are evidence of circular fraud in the markets. Falling index prices are evidence that the circular fraud ponzi has been pulled and that the scammers are stealing everyone's property.

What is the essence of the fraud?

Generating power from stupidity via fraud. [go ahead, mirror those articles]

1920s boom:Passing off loan liabilities as-if they were gold. Boom caused by Bank of England <> Federal Reserve nexus. Effects - Great Depression as the loan liabilities collapsed. Europeans betrayed. The real cause of WWII. Effect = looting of all the gold worldwide. Process incomplete. 43% theft, at the very least. WWII can be seen as a cover up.

1960s boom: Looting the US Treasury gold by arms race, Vietnam war, moon rush. 95% of USD value stolen. Gold is a lagging indicator. See yellow line.

1990s boom: Fraudulent finance in the stock market followed by fraudulent finance in real estate. Markets react to the fraud by holding purchasing power in stocks, then real estate. Stock markets turn into de facto money markets - stocks begin to function as a store of value rather than risk capital that produces yields. This is the third time the world has fallen for the fraud.

What we are witnessing

We believe we are witnessing the most sophisticated takedown of fractional reserve banking and circular fraud based banking in general.

What we suspect

Every "financial institution" has been rigged to implode. We believe that when certain parties who thought they were the be-all and end-all of banking figured out they had been scammed by monetized promissory notes, they predictably stopped buying. We suspect that this was very carefully planned for. Any central bank that thinks they will be able to continue last century's method of scamming of the people's wealth is delusional. All of them are in defensive reactive mode.They do not comprehend why their well oiled machinery of fraud has got hiccups.

The history of the last century is very different from the pablum in the fraudulent public school textbooks. This crisis goes back to the British default in September 1931 and the secret bankruptcy of the USA shortly thereafter.

What we observe and predict

Retail liabilities are being washed on to public debt liabilities. It will result in the failure of every corporate NATION STATE that there is, including the UNITED NATIONS. Remember League of Nations?

 

 

• Stocks will fail as a money because they are denominated in circular fraud units.

  • A knife edge plunge in stock and asset prices awaits.

• The DOW will meet Gold
• The chart above says - free fall in quantity of checking account USD liabilities in USA
• Paradoxically, this means a rout of every other currency including the EUR
  
  • Unless, widespread bank failure in Germany destroys the European Union.
  • In which case, legal tender EUR printed notes will be valuable, not EUR bank liabilities
  • Legal tender: USD: 883 billion EUR: 771 billion. USD inside US, estimated < 300B
  • Any "sovereign" who is holding trillions of "cash in the bank" or UST bills has been "had"
  • USD, i.e., FRN has been deliberately sequestered by the drug war
    
• Widespread bank failure
• Gold will become cash settled, that is, legal tender, printed cash settled
• Price of everything in dollars will plummet at that point
• Mutually assured destruction of every financial institution on the planet

What we further suspect

The worst. Reports emerge about gold plated tungsten. "Deep storage" may mean, that deliverable gold that could be stolen out of vaults has been stolen out of vaults and is "gone" into a safe haven guarded by exotic weapons. People who thought that their gold certificate meant that there was gold, may find tungsten. We have heard of over-issued Safe Keeping Receipts.

We can say that we believe that there is absolutely no large horde of gold that is free from taint of fraud, war, torture and worse.

Any attempt at regulation will only make matters worse. The crisis is proof that regulation is worthless, governments cannot be trusted, and that there is not one public leader with whom the word "virtue" can be associated with, and that the two worst crime against humanity - credit money and monetized identity have spawned terror and bloodbath on a scale that will hopefully not be exceeded. The so called "terrorists" are a joke in comparison. Al-CIA-Duh!

So where is the good news?

Mankind is ingenious. It would seem that the top soldiers have not willingly rushed at each other's throats for imaginary money. It is extremely good news that the American people are doing the lawful thing - suing the scammers in court. 

What not to believe, and what won't be a solution

... That any "settlement" in circular fraud money will result in anything that lasts even months. Mankind faces a choice:  God's money that is Gold in circulation on the street, or Armageddon. The thieves who are politicians, and the bankers who are scammers, would want a soultion that lets them continue as parasites. The history of the next decades will bear witness to the fact that this will be impossible, even if it is attempted. There is no "honest banking". That word, "banking", will live in infamy.

... That any FDR style "jobs for the boys" meetings will do anything more than coverup and divert attention from the crime.

... That gold or treasure or "jobs" alone will solve the problem of wealth creation. Free yourself from economic fallacy.

... That there is any group of wise Kings who are going to ride in and save the day with treasure from treasure mountain. Any such treasure would be the fruits of fraud, theft and war - not honest production. They better apply for public clemency. Nature has her ways. She, not "we" will see that it is so.

“There are,” he says, “two consequences in history; an immediate one, which is instantly recognized, and one in the distance, which is not at first perceived. These consequences often contradict each other; the former are the results of our own limited wisdom, the latter, those of that wisdom which endures. The providential event appears after the human event. God rises up behind men. Deny, if you will, the supreme counsel; disown its action; dispute about words; designate, by the term, force of circumstances, or reason, what the vulgar call Providence; but look to the end of an accomplished fact, and you will see that it has always produced the contrary of what was expected from it, if it was not established at first upon morality and justice.”

Chateaubriand's Posthumous Memoirs.