Tuesday, July 21, 2009
The Economy: "Goldman Sachs, King Pimps of Capitalism"
"Societal collapse and widespread suffering are prospects I do not enjoy contemplating; and, were it not for my deep belief that what we see is what we see, not all there is, I would face the future with far less equanimity than I do.
We are in for some truly terrible times. The green shoots "seen" by Geithner and Bernanke make the LSD-based hallucinations of my generation seem rooted in rational experience; but those believing in these hallucinatory green shoots will find reality to be far different when the banker's world of credit-based paper disintegrates.
According to Mancur Olsen's theory, it is the dominance of special interest groups, e.g. the bankers, the healthcare industry, the military-industrial complex, etc., that led to the demise of the power and influence of the US. Bankers are well aware of this entropic decline and are repositioning themselves in China and other nations where expansion still seems to be the order of the day. In this, they will fail, for the collapse of the West's paper-based financial system will affect all nations, not just those now in decline.
Credit-based capital markets are in extreme distress everywhere and were it not for heavy government aid and intervention, they would have already collapsed. The bankers' credit-based paper money has weakened the entire global economy and when it collapses, all credit-based paper money could be virtually worthless with only gold and silver retaining monetary value. The case for gold and silver is simple as it is old; as the same story has been repeated during the last 1,000 years, first in the East then in the West. Gold and silver were money. Then paper currencies backed by gold and silver were introduced by bankers and governments and were substituted for gold and silver. Then gold and silver were removed from paper money because governments had spent the gold while printing more and more paper money. As a result, every experiment with paper money ended in disaster.
Note: On the subject of paper money, I highly recommend Ralph T. Foster's "Fiat Paper Money - The History And Evolution Of Our Currency." To order email tfdf(at)pacbell.net, phone (510) 645-3015, address: 2189 Bancroft Way, Berkeley, CA 94704 USA.
Today, paper money is far different than paper money fifty years ago. In 1959, the US dollar was still convertible to gold and 35 US dollars could be exchanged for one ounce of the precious metal. Today, it would take 900 to 1,000 US dollars to purchase that same ounce of gold. This is the true cost of accepting the banker's paper coupons as money. Over time, the banker's paper money loses more and more value. We are in the end-times of our experiment with the bankers' paper money and the system it gave rise to, credit-based capital markets. Those who have their wealth invested in paper-based IOUs, e.g. treasuries, bonds, etc., will suffer the most in the coming meltdown. In the coming days, paper-based IOUs will become increasingly worthless and in the coming years, most IOUs will have little or no value, including government treasuries and currencies, as IOUs increasingly become ICPs - I Can't Pay.
This is because the largest bubble of capitalism's end-game is being formed right now, a bubble of stupendous proportions, a bubble composed of extraordinary amounts of government debt; and, when this bubble bursts, governments and their citizens will be its victims. Of course, Goldman Sachs and the rest of the paper boys are hoping the vast majority of investors will continue to believe in their paper promises and will continue to leave their paper money on the table, their table, and to let the bankers do with it what they will.
This is the reason that financial interest groups have marshaled their considerable resources to defend paper markets against the increasing threat of rising prices of gold and silver as the price of gold and silver indicates the level of systemic distress in paper-based capital markets. Over the past decade, private bankers have emptied national treasuries of gold bullion, selling this bullion on the open market in order to keep the price of gold low in order to mask the increasing vulnerability of their paper-based assets. The US claims the US Treasury still holds approximately 7,000-8,000 tons of gold but has not allowed a public audit of its reserves since 1954; and since 1999 the UK and Swiss have seen their gold reserves decimated as bankers freely sold their gold in order to cap the rise in the price of gold to keep the banker's paper money scheme intact.
Goldman Sachs is today the pre-eminent paper player in today's paper markets, the king pimp of capitalism, Wall Street's equivalent of Harlem's fabled players of the past who lived opulently off the considerable labors of female prostitutes. But the pimps on Wall Street have done Harlem's pimps one better. Goldman Sachs and their fellow pimps benefit not just from the labor of women but from the labor of men as well. When Wall Street pimps take their cut of America's money, they're not alone. Without the US government, the pimps of Wall Street couldn't do you like they do. There are two hands in your pockets - and they're not yours."
- Darryl Robert Schoon, http://www.321gold.com/editorials/schoon/schoon072009.html