Friday, November 06, 2009

Gold, Celente, What's Happening

The economic/financial "shake, rattle and roll" is about 2 years old and is continuing. There are no green shoots. Those with decent stashes of gold and silver will feel less of it than those who are not prepared, which if current investor sentiment is any guide, most are not.

In 2007 global investments were about 200 trillion dollars worth. Now that may be down to 150 or even 100 trillion dollars worth. This one gold oriented money manager of 10s of billions of teachers pension funds estimates that in 2007 probably only about .4% of that was in gold or gold related investments. Wait till it dawns on the world where real safety is. There is no rush like a gold rush.


Below are links to a Gerald Celente interview on August 15, 2009, in 4 parts, by He is unusually angry, and for good reason. Celente is founder/director of Trends Research Institute. He has most of his savings in gold and little cash in a bank. Celente at Wikipedia.

Part 1/4
Part 2/4
Part 3/4
Part 4/4


Part of The Global Report from The Privateer



"Globalization and unfettered capitalism have been swept into the
history books along with the open-market theory of the 1920s, the
experiments of fascism, communism and the New Deal" (ie: interventionism).

Doesn't leave much, does it?

The Repeal Of Economic Law:

In January 1953, during his last week in office before handing over to President-elect Eisenhower, President Harry Truman issued his final "Economic Report". In it, he said this: "It is the purpose of the Employment Act (passed in 1946) to prevent depressions. The act stands as a pledge of the people voiced through their laws that never again shall any such sacrifice be laid on the altar of 'natural economic forces'. Thus, ...the act rejects the idea that we are the victims of unchangeable economic law."

Governments and the financial systems they control have been rejecting economic law ever since.

In its final form, the bill was diluted from the intent of its originators. It did not guarantee "full" employment. It did not enshrine President Roosevelt's "economic bill of rights" - including the right to a "useful and remunerative" job - in law. It did not set up a specific branch of the government to oversee the economy. What it DID do was to fix in the minds of the large majority of the American people the idea that it was both proper and necessary that their government RUN the economy.

The best proof of this is the statement from President Truman. It bears repeating: "Thus ...the act rejects the idea that we are the victims of unchangeable economic law." By the time this statement was made in January 1953, it was accepted without a murmur by almost all who heard it as a basic function of government. Economic law was deemed powerless in the face of government legislation.

Running The Economy - Into The Ground:

In 1909, 100 years ago, the US government did not "run" the US economy. It is true that it was tinkering at the edges with government land grants, railroad legislation, protective tariffs, "anti-trust" legislation and the like. But to measure the extent of this government meddling then as compared to now, only one fact is required. In 1909, the US federal government had an annual budget of $US 0.8 Billion. With this it governed a population of just over 90 million people. The cost of government was about $9 per capita. In 2009, the US federal government has an annual budget of $US 3,550 Billion. With this it governs a population of just over 300 million people. That's a cost of about $11,675 per capita.

Is it necessary to have increased per capita annual taxing, borrowing and spending 1300-fold in order to govern a little more than three times as many people? If it is a requirement of the government (and - sadly - most of the people) that it reject economic law, then yes it is. And even that is not enough, as witness the financial crisis we have been living through for the past two years.

Security Is Not "Social":

"Those who have an adult's recollection and ...understanding of the world which preceded WW I look back upon it with a great nostalgia. There was a sense of security then which has never since existed." (Benjamin M Anderson - Economics and the Public Welfare - 1949 - emphasis by The Privateer)

On the face of it, this is a most startling statement. Before WW I in the US, there was next to no vestige of government involvement in the economic and financial life of its citizens. The cradle and the grave certainly existed, but the vast majority of people made the passage from one to the other without support from government. And because the government lacked the means (see the 1909 US federal budget above) to provide support, it also lacked the means to "intervene" in the economic lives of its citizens. The period leading up to WWI in the US is the closest the world has yet come to a nation where state and economy were separate. It may seem "perverse" to most people today but THAT was the major reason why, to quote Mr Anderson again, "there was a sense of security which has never since existed."

It certainly does not exist today in the US or in any of the world's "developed" countries. The reason for this is very simple. WWI marked the end of an era in which both political and economic freedom had been steadily expanding. Today, we have been going in the opposite direction for almost a century. The current sorry state of global financial affairs is the inevitable end result. The means are running out but the idea lives on. Most people still see the government and its control of the economy as a necessary pre-requisite to their own well-being. In reality, the opposite is the case.


Increases in the US Treasury's deficit which means, since it's broke, increases in formal debt of the US.

Up $US 500 Billion in 2007.
Up $1 TRILLION in 2008.
Up just under $US 1.9 TRILLION in 2009.

This from the issuer of the world's reserve government fiat token. What's this say about the world's reserve token? Get out of it if you can, when you can, as you can.

The Congressional Budget Office CBO, is figuring trillion dollar plus deficits for the next 9-10 years. A wild and crazy situation.

When facism and communism are taking over in the US which is what's happening now, gold and silver, real actual money, will make a huge difference for those prepared.

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