 Banksters and Markets!
(All is not well in La
La Land)
Frank Lechner
whynotgold@msn.com
Jun 9, 2005
(this is a real simulated
picture of the fiat monetary system over time!)
I have come to some conclusions,
some of which would be normal, like the US dollar up, and gold
down until the Great Disconnect begins. The Great Disconnect
being when gold finally chooses its own path, instead of following
the dollar like a dog on a leash. When this happens, gold will
go up, even if the dollar is rallying.
Or something more abnormal,
more contrary to commonly held beliefs, such as the banksters
being no different, better, or worse than common everyday legal
ambulance chasers. There are some who would agree, but in the
majority, most persons see bankers as upstanding citizens.
What was the genesis of this
'taking to task' of the money changers? Good question, and here
is the answer. A daughter of mine has been doing some babysitting
for a little extra ching. This is where it gets good, I promise.
The couple has been paying her in personal checks. Too funny
actually, that they consider it acceptable to give 14 year olds
personal checks. To get back on track, I took her to the bank
they were written on. We arrived, she signed the back
of the checks. Well the robotron teller says to me, she needs
two pieces of ID. Well stupid me, I say to her, does it look
like she has two pieces of ID or a drivers' license? The
teller says no, not her, you! Oh, OK. I give her two pieces of
ID. She then tells us she needs a thumbprint to cash the checks.
That was all it took for me. I said it will be a cold day in
H E double hockey sticks before you will get a fingerprint from
either of us. Does this young girl look like a terrorist, or
whatever other foolish excuse you are choosing to use today for
your insanity? Rules are rules! She tells me. I tell her now
you know why none of us have accounts at this particular bank.
End of discussion.
For quite some time now, I
have spouted a few thoughts on the subject. For instance, bankers
are no different from shoe salesman, only they are selling
purported 'money.' Why else would they consider gold and silver
on a balance sheet to be 'immaterial?' Why else would they exclude
the value of gold and silver as something representative of wealth?
Their job, as they have been
enlisted into the US fiat army, volunteer of course, is to continue
to move the unending and unwavering fiat monetary creation into
the everyday economy. They do this through various methods, but
most of all through consumer and business lending.
To them, they really don't
care, as long as they are making a spread off the difference
of cost vs lended rate. Especially when they have a taxpayer
backed organization to dump their risk on, be it Fannie Mae or
Freddie Mac. Time was when this really didn't seem to be such
a bad plan, I mean who can argue with The American Dream, or
owning your own home? (they never told you that you never really
own it, you rent it from them). Ahhh you say, but I don't have
a mortgage, so I do own it. I am going to argue with you here,
by reiterating the point. Even if you have paid off the mortgage,
you still have this pesky little thing called property taxes
(or rent of your property from the Feds). Try to not pay your
property taxes once, and see who in fact owns your property.
So the Fed goes merrily along,
addicted to the growth curves of monetary creation, virtually
forcing the banksters to lend more and more and more. There are
a few bankers who understand, and wish it wasn't so, but in reality
they are still one with the system and addicted to the spreads.
With the incredibly expanding
bag of fiat the Fed totes around, the whole system is flush with
excess. They have devised many creative ways to move this into
the economy, for instance the whole credit card evolution, the
125% mortgages, the interest only mortgages, the list is endless.
Seems as though they are pretty darn creative when it comes to
keeping this fiat monetary experiment alive and kicking.
When something happens to rumble
the system, the Feds or CONgress comes in to save the day. As
evidenced by the most recent bankster protection law, or some
other such drivel. They issue, they issue, they issue credit
cards, hell they issue credit cards to dead people and babies.
The banksters then run off to the lever pullers, crying profusely
that this cannot be. That these stupid, uneducated, wealth builder
wannabes are going bankrupt and making them accountable for their
reckless lending standards. They then wonder to themselves where
it all went wrong.
It used to be so easy, Joey
farmer would come into your office, asking for a loan
to plant this years crops, and the money hustler would tell him
no. The funds were reserved for those that did not actually need
them. Little mammy homeowner would come in and tell the bankster
it was hard to eat, as she had no teeth left. She had the audacity
to ask for a loan to get some shiney white pearls for the gums.
Of course the answer would be no, not unless you didn't need
the funds. Ahhh, those were the days.
Now they give away the teeth
if you open an account with them. They give away funds as though
their very lives depended on it. I suppose you could say it does,
but you get the point. The hidden little secret in all of this,
is that the banksters of today are no different from John
and Jane, they have the same mortgages, the same credit cards,
and the same multiple car payments. They are addicted to the
game as much, if not more so, than the everyday sheeple.
Most certainly the world has
changed. Long Bonds continue to rise (interest rates down), all
the while the Fed is raising short term rates (bonds down). The
dollar collapses in a predetermined devaluation, and then rises
like a Phoenix, trying to put out the 'all clear' to anyone that
will listen worldwide. The discussions of controlled devaluations
all around (read worldwide) continue, seems I am stuck on that.
As the dollar was decreasing,
all was aok for a bit, but after awhile, other countries started
to fidget in their chairs. They started to get uncomfortable
with the whole idea of a dollar decline. They realized the threat
this would provide to their own fiat based overmanaged underutilized
economies. They realized there were consequences to this dollar
depreciation game. They would look bad politically if this continued
to happen. Their answer of course, was to embark on their own
period of devaluation, much to the chagrin of the US. Hence,
our long bonds stubbornly continue to rise. Guess we need a new
plan ... Damnable Chinese anyway, never did unpeg their currency.
Little 'ole Gold, having a
hard time trying to keep up to all of this nonsense. Yes, we
have been through a bit of a correction, but the long term trend
is in tact. Don't let the fools dissuade you, Gold is not the
barbarous relic as proposed by so many fiat addicted money changers.
They, after all, are only looking to build more fiat wealth
at your expense. Too bad, they understand so little. The real
game is won by those that are still standing in the end, and
I would argue that the fiat addicted will be wealth challenged
at that time. Gold will be $500 before it is $300 again.
All these political machinations
creating a continuous roller coaster ride, but in the meantime,
gold continues to hold up, and will rise as conditions warrant.
Speaking of conditions, has anyone noticed how, almost imperceptibly,
certain little annoying occurrences continue to happen in the
markets? For instance, in the Forex markets, there seems to be
more frequent 'issues' crop up that cause a cessation of trading,
or at the very least, a reboot of the system. And how this seems
to be happening in other markets as well? Almost as though there
is a constant nibbling at the edges of the system. Checking for
vulnerabilities, probing, and probing. Believe it, it is there.
To some this may seem like meaningless noise, but to those that
watch the markets closely, maybe they will have this same 6th
sense that all is not as it seems. Shoot, I don't even do drugs
and I can see it.
When they are trying to fingerprint
minors, or adults to cash some Yuppy checks of minor amounts,
I am getting the Heeebeee Jeeebeeeies.
I believe I'll have to go get
some more gold just to calm the spidey senses. Gettin' a little
warm in here, and the storm clouds seem to be gathering. Have
to wait and see if it is a tornado, or yet another thunder boomer
moving through.
Everyday is
the right day to 'get physical'
This is a non-government
mandated disclosure that you must own physical gold and silver
to protect yourselves.
Frank A. Lechner
email: whynotgold@msn.com
Frank A. Lechner
is a private investor, and makes no allowances for stupidity or
insanity as each chooses his own investment battles. "Past
performance is no indication of future direction, nor do I even
care about govt mandated disclosures. You make your choices and
you live with them." He does in fact believe "that
we are indeed in a time of turmoil, a time of increasing prices,
much as wrote about before, and that this period will resemble
the 70s. Those that fail to learn from history are destined to
repeat, or so I hear. Good investing to you."
Recent Gold/Silver/$$$ essays at 321gold:
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May 06 Gold Sector: The Early Stages of a Multi-Year Bull Run Bob Hoye 321gold
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May 03 Gold's Pullback and Miners Adam Hamilton 321gold
Apr 30 Gold Stocks: A Pause With Grace Stewart Thomson 321gold
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