Friday 9 September 2011

Wars and Rumours of Wars

One of the most unnerving aspects of the apocalyptic conditions we must all and in our own ways somehow survive, is the inevitable tendency of the Big Players to pull every lever they have, act without warning, and generally lash out in all directions. They are, after all, trying to save their skins - and they still have some big levers within reach.

I point to just a handful of momentous recent actions, (and in my unseemly haste must leave readers to google the details for themselves - apologies, we normally offer a better service I know).

1. Chavez recalling his gold bullion from London

2. The IEA countries dumping their crude oil reserves

4. Switzerland holding a gun to its own head and daring the FX markets to do their worst (which unsentimentally they will)

3. The establishment by the Chinese of their new Pan Asia Gold Exchange, which seems to me the biggest signpost of all: they have in mind the Doom of the Dollar - and the means to bring it about.

When the elephants dance, ants and the humble punter can easily be crushed. The only upside as these developments explode around us is that sometimes they take a while to play out. But what do they mean ? I expect we all have our favourite theories and conspiracies.

In any event, the sands are shifting, the plates are moving, old certainties have limited shelf-lives, and instincts that have served well may no longer be enough.

How Marx would have enjoyed living today.



Old BE said...

I'm interested to know what you think that the Swiss move is suicidal. Surely it makes sense to put a ceiling on the Franc in the way they have?

Sean said...

Nope my guess is Marx would still make the same mistakes and see the means of production as the key to understanding the world, money does not make the world go round.

Knowledge and information does, the the control and understanding of it, if any, is what really matters.

The well known anthropologist Gillian Tett, wrote a book about it and the dangers of "Silo thinking", Marx would be the ultimate in silo thinker.

The shifting plates are as much about the internet and communications as they are about the rise of the east, if not much more in the long run.

hovis said...

BE - my understanding (from what I have read) is the logic goes something like:

Swiss sell swiss francs to calm price vs Euro --> have inflow of cash but want it to be AAA+ so buy givt bonds --> but will be in Northern Euro govts --> periphery spreads rise --> panic! the periphs are widening -->possible kaboom..

Of course adjust scenario to taste ..

Anonymous said...

Don't forget Turkey's intention to escort aid ships to Gaza or where-ever these ships want to send what-ever they want to send.

Anonymous said...

Pan-asian gold exchange is more about the possibility of hyper-inflation breaking out in China and the asian obsession with 24carat gold.

CityUnslicker said...

Losing the dollar as reserve economy will be great for the US and bad for Asia - the dollar will delfate and their economies will have to compete again with the West whilst they still can't generate enough domestic demand.

Oh, and all their T Bills will be worth a lot less. In return, the US will have to get a grip on the deficit which in the long term is great for its economy.

Go China!

Sorry all re lack of posting, poxy work!

Anonymous said...

Note Page 5. ... GOLD 40% hike

Anonymous said...

Romania debating buying all gold mined there.

Same for Kazakhstan

Same for Paraguay

Nibble Nibble....

LBMA and Comex is a hand wagging the tail wagging the dog...futures

Shang exchange is the dog wagging its tail..Spot.

Shang is 10 ounce gold contract, 100% physical backed.

LBMA/Comex is 100 ounce +. that is 1% physical backed +/-
PLUS LBMA OTC cleared through CME but NOT included in Comex stats.

Summary... LBMA/COmex are constructed to be intentionally fraudulent... to use NO position limits so as to manipulate PM prices to create an illusion of paper strength.

Regulators both sides of the pond should be shot.

The paper cartel still has power. That power is failing. That failing power is a major part of the fiction of perception created and fought over by western paper keynesian tigers.

The fiction has been laid bare by those who care to look.

Anonymous said...

Chaves plans to nationalse PM mines

South Africa is moving to Marxism, and is discussing nationalising mining, particularly PMs in 2012

Electro-Kevin said...

Fiat was shit anyway.

I always prefered my Nissan.

(@ Anon at 11.26)

Can anyone answer me this:

On balance did Brown save us more money than he lost selling gold/staying out of the Euro ?

Should I still hate him ?

Woman on a Raft said...

It would serve Marx right if he wrote another of his sponging letters to Engels (the better writer in every respect) and received the reply:

"Due to the Crisis of Capitalism, Papa has lost his dosh and says - and I quote - 'You and your hairy friends are going to have learn to work for a living instead of sitting around in your nightshirts, smoking and scribbling pamphlets. Why can't you write popular fiction, like that Dickens fellow? Have you considered putting some love-interest in that dreary tome about Luther? That'll ginger it up for a mass audience. You want to sub that podgy philanderer to complete his Meisterwork? You do it on your own pfenig, Bubba, not mine. Love, Pa.'

So I'm dreadfully sorry Karl, but I'm a short myself this month. Would it be against the principles of the Movement to start a beard-wax factory? Branded cosmetics are the coming thing, I'm telling you. I can get you royalties for using your image on the lit of the pot - they make them in Stoke on Trent. It helps the kids get work experience by doing small items and stacking the kilns for free, so it's socially responsible. Love, Fred."

Laban said...

Maybe the US, UK and Euroland all turn the presses back on simultaneously, Australia/Norway follow Switzerland to keep their currencies down, and hyperinflation wipes out pensions and savings worldwide (while clearing the debts ). Buy land !

(I like to think that Germany would leave the Euro before they'd countenance such a thing, but what do I know?)

Anonymous said...

The Title of the particular blog, by Nick, is Wars and Rumours of Wars.

Nick finishes admirably by saying,
I expect we all have our favourite theories and conspiracies.

In any event, the sands are shifting, the plates are moving, old certainties have limited shelf-lives, and instincts that have served well may no longer be enough.

which I find suitably vague, and may hint that Nick knows far more than he would care to admit...who knows, but..

The word conspiracies has been bastardised in recent decades, by the very people guilty of such, as a label to use on those who do look behind the curtain to find the identity of the characters there. The western complicit media have gone along with that defence, that label, and, financed as they are, have become as guilty as the active players...the serial murderers.

As correctly pointed out above, by anonymous, a pillar of western hegemony has been finance, and the perception of strength. Events have shown this, in vivid detail, to be totally false, instead being built on financial fraud on a monstrous level.

We now hear of a G7 wide liquidity flush, a QE3, or whatever you may call it, to kick the can down the road for a few more months. The can is now full of concrete, and doesn't go far. That G7 effort will turn into a G20 effort shortly, which will also fail.

The entire globe is heartily sick of western/anglo, hegemoney and warmongering, has realised that trade surpluses recycled into US debt instruments merely pays for their own military encirclement by sustaining a vastly overvalued reserve currency.

The global destruction of economic value raged constantly via this hegemony is being systematically dismantled via finance, and competing regional developing currencies and bilateral trade/finance agreements/swaps. The west moans about mercantilism. The west exports death and destruction, and calls it democracy to its own sheep.

The following link is a good summary. I could add dozens of links to substantiate in far more detail, the substance.

But I wont. Just consider this entire situation is planned.


6:46 PM