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2013: A Successful Year of Price-Suppression: Part II

Articles & Blogs - International Commentary

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Part I of this series ended with some rather ominous questions. Most of those questions tied-in to the chart below, and what it signified in both practical and statistical terms:

Here readers see a picture which is markedly different from the parameters we know to exist with (for example) precious metals. With gold and silver; we have two commodities where production is (now) falling, and inventories are (already) near-zero. It’s easily understandable why these commodities are already at a crisis-point in terms of basic supply/demand analysis.

It is much less-easy to understand why the chart above also represents a looming crisis. This is due in large part to the obvious/unequivocal importance of food production. Because food (self) sufficiency is a key policy objective of almost every nation; their reactions to the food-crisis looming ahead of us have coloured this data – and thus (somewhat) hidden the underlying problems.

It’s also important to point out another premise of simple logic. Because food-production (and sufficiency) will always remain a top priority; in the attempts to ward-off a near-term food catastrophe we could (will) see our governments simply trigger a different form of economic cataclysm – hyperinflation – which will also lead to mass hunger/starvation, but simply in a less-direct route.

Here it is necessary to itemize the causal links in this (inevitable) chain. To do so; we start by simply looking at the current trend which the chart above indicates unequivocally: the ratio of inventories to supply/demand is falling – and at a rapid rate. While this does not appear close to any crisis-point (at present); we can understand that the continuation of this trend will (at some point) take us to parameters which will look very similar to what we see in precious metals today.

So how/why does this trend represent an immediate – and enormous – problem? This is where it is necessary to add all of the additional, necessary economic/financial context to make the answer to this question self-evident. In the most general terms; what is the root problem leading to inventory-destruction in all commodity markets (especially precious metals)?

The answer to that question (as readers have heard again and again) is that all of these commodities are being grossly “under-priced” – meaning producers are being severely under-paid. However; those readers who have not absorbed much/most of my previous commentaries may not fully comprehend the magnitude of this under-pricing.

It is not simply an issue of the nominal prices being paid to producers in our world of fiat-paper currencies. Rather; the primary ingredient of this under-pricing (at this advanced stage of economic decay) is that most/all of these paper currencies are either worthless or near-worthless – especially the U.S. dollar, the “reserve currency”, and thus (for the moment) primary currency of international trade.

It’s not that producers today are simply being somewhat under-paid for the valuable commodities which they produce (whether renewable or non-renewable). Rather; the problem is that in reality they are not being paid at all. Since Nixon assassinated the last vestige of the gold standard in 1971, our world of paper-currencies has been nothing (in economic terms) other than a world of sovereign “IOU’s”  – the only mathematical/logical basis upon which we could assign any value (at all) to this paper.

However; (since the Crash of ’08) most of this debauched Western paper is now being created in the form of “quantitative easing”. Our currencies have literally been transformed from “IOU’s” to “I-owe-you-nothing”. The world of “QE” is nothing more than a world where (sovereign) Deadbeats pretend to pay their bills – for all of their debts/purchases – with an endless series of bad-cheques. It is a Ponzi-scheme financial system which has already been taken (thanks to the One Bank) to an absurd extreme.

Producers of all or our commodities now never receive anything for their time, effort, and financial investment for that production other than one bad-cheque after another. It is not merely logical that we would see inventory-destruction across (nearly) the entire spectrum of commodities – it was/is inevitable. The only reason this Ponzi-system hasn’t already imploded is due to the success of these Financial Liars (and their servants in government/media) in duping the masses into believing that these bad-cheques are actually “money”.

Hyperinflation is (always) ultimately a “confidence event” (as is the case with any “con”). What does this mean? It means that in every hyperinflation event in human history; the particular currency in question had already become actually/economically worthless long before awareness of that fact triggered ultimate hyperinflation. The Liars in power are always able to extend their financial system Ponzi-scheme for several years after their fraud-currencies are actually worthless.

We began our countdown in 2008, when the One Bank deliberately triggered the Crash of ’08, plundering Western governments for $10’s of trillions in present/future hand-outs, as the pay-off in its “too-big-to-fail” blackmail. That rendered all Western nations totally insolvent, ushered in the (ultra-fraudulent) era of “QE” – and unequivocally rendered the U.S. dollar worthless.

Since that time; the governments of Europe and Canada have been coerced (or simply chose) to also transform their own financial systems into totally insolvent Ponzi-schemes – with now-worthless currencies, as one of the results. In the case of Canada; which had (by far) the strongest financial system in the world the day Stephen Harper’s Conservatives took power, this took a lot of “work” (i.e. sabotage).

So the producers of all of our key, agricultural products are (in reality) being paid nothing for the goods they produce. This is, in fact, one of the key mechanisms employed by the One Bank for stealing all of the world’s wealth: taking the goods-production of all legitimate/businesses sectors, and then handing these good-producers worthless paper in exchange for their valuable goods.

But to this point, we have only seen how the One Bank has created a causal chain of fraud/theft/economic suicide on the supply-side of the equation. Before outlining the (suicidal) desperation measures which our Puppet Governments have adopted to ward-off implosion (as they assist the One Bank with its raping/pillaging), we need to also look at the other side of this “equation”: demand.

It is necessary to explain how/why the vicious, downward circle of deteriorating supply and vanishing inventories must also be accompanied by a continued upward spiral in global food demand. This is one of the unintended consequences of yet another of the One Bank’s economic mega-crimes: globalization.

In many ways; discussing/describing the Western economic suicide (and wealth-piracy) represented by the euphemism of “globalization” is even more complex than explaining the mega-crimes committed by the One Bank in our (deliberately incomprehensible) financial system. This is because globalization directly impacts most members of the human race; while the financial crimes of the One Bank tend to impact us more indirectly.

This larger and more-immediate “impact” (i.e. destruction in our standard of living) of globalization means that the spin-off consequences are also larger/more-numerous – making analysis of this different form of economic rape more difficult to convey. It will require a third-part conclusion to this series to provide a brief summary of the evils of “globalization”, and then to tie that in with the (suicidal) desperation measures being undertaken by our governments to delay immediate catastrophe.

Once that is done; readers will have a relatively complete picture of this paradigm of price-suppression, and yet another one of the incomprehensibly enormous economic Time-Bombs created by the One Bank. The failure of both Western citizens and their governments to prevent the total rape-and-destruction of Western economies will be multiplied if we do not ensure that this legacy of the One Bank is also its epitaph.

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Jeff Nielson
...
written by Jeff Nielson, January 29, 2014
It seems that there is so much that people do not understand about how the markets work, and how their everyday lives can change in an instant when things go haywire. This is why it is so amazing that you have taken the time to help those who want to understand all that we might be facing, as a general population. Hopefully people will read this and be able to invest better.


Thanks for the support HMason!

With respect to the "comprehension gap" here; this is something which has been deliberately (and carefully cultivated). The Thieves on top do most of their stealing in realms which the average person finds very confusing -- or extremely boring.

Thus most of the stealing takes place via banking and taxation, but in this series we will see how TRADE AGREEMENTS are another device to plunder the wealth of the masses...without the masses realizing it. smilies/wink.gif
H.Mason
...
written by H.Mason, January 29, 2014
It seems that there is so much that people do not understand about how the markets work, and how their everyday lives can change in an instant when things go haywire. This is why it is so amazing that you have taken the time to help those who want to understand all that we might be facing, as a general population. Hopefully people will read this and be able to invest better.

 

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