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Who Said The Hydra Would Take It Lying Down?

By Antal E. Fekete, New Austrian School of Economics (4/18/2013) :

Who Said The Hydra Would Take It Lying Down

... while its several heads were being chopped off one-by-one ?

I have never appealed to the so-called conspiracy theories in trying to explain the strange world of fluctuations in the price of monetary metals. But neither have I ever said that the fiat-money Hydra will take it lying down when it comes to chopping off its several heads one-by-one [...]

Bernanke is trying to stop gold backwardation by selling unlimited amount of gold futures contracts through his stooges, the bullion banks. He is underwriting losses they are certain to suffer in due course. We can take it for granted that they haven’t got the gold to make delivery on their contracts. In fact, delivery of gold will be suspended under the force majeure clause. Short positions will have to be settled in cash, to be made available by the Fed’s printing presses. Gold futures trading will be a thing of the past.

Bernanke and columnist Paul Krugman, formerly his subaltern colleague at Princeton don’t understand that the issue is not the price of gold. The issue is backwardation or contango. In trying to wrestle the gold price to the ground the Fed makes “the last contango in Washington”* an accomplished fact [...]

Read on :

http://www.professorfekete.com/articles/AEFWhoSaidDragon.pdf



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Cyril's picture

"Après nous, le déluge."

"Après nous, le déluge." [ http://en.wikiquote.org/wiki/Madame_de_Pompadour ]

(Used in French to mean : "whatever happens after I'm out of the game, I couldn't care less.")

Quoted in "What Chinese Unemployment?" (some should be careful on what they wish for...) :

http://www.professorfekete.com/articles/AEFWhatChineseUnempl...

The worst aspect of our misery is that in putting Keynesians and Friedmanites in charge of our economy and monetary system we have condemned ourselves to eternal slavery. Previously, elected or unelected officials could be recalled and given a dishonorable discharge in case of failure. Not any more, not in the realm of economic and monetary policy-making. The worse mistakes monetary officials make, the more power they are entitled to grab. You could never make these guys admit that they have been wrong. They know that the power they now have, the power to print money, is unlimited power. They will never give it up. "Après nous, le déluge."

Related, another recent warning of Prof. Fekete on gold backwardation :

http://www.dailypaul.com/278536

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Consider: Endgame destruction

What if their end game is not control of the monetary system, but the destruction of the monetary system?

Could it be they are purposely building a house of cards that is so unstable that it would cause worldwide collapse?

That would be a good time for them to bring in a global credit/debit system, RFID chip and eliminate money entirely, so they can monitor and control every transaction on the planet.

This explains Bernanke's blank stares and lack of admissions during the many showdowns with Ron Paul. He's playing stupid.

He knows Ron Paul is right, but that's the plan. They WANT to bring the whole economic system down. They want people begging them to put in the new system.

I could easily see them arguing that tracking all transactions will save lives and reduce terrorism.

Cyril's picture

Plausible.

Plausible.

They sure want chaos, wars, spying, control, dumbing down, division, antagonisms, hatred, and of course large scale / forceful wealth redistribution (they get to decide how, they get to decide thru which "hub" - theirs), etc, anyway.

And power. Always more power. By the law.

The Law Perverted.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Well I read it. I think I may understand it.

It means that at the same time that gold prices are being falsely bid down by contract sales in an attempt to make gold less attractive and the dollar more so, it is making delivery of physical seem more and more easy to accomplish so now demanders of physical are becoming more demanding? No?

Pandacentricism will be our downfall.

Cyril's picture

If you thought that hyperinflation would be the worst...

If you thought that hyperinflation would be the worst that could ever happen...

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius