Monetary Refom - Fractional Reserve Lending

Much is discussed right now about how to reform the monetary system given the evident flaws we now see appearing in front of our eyes.

Many, many times in history has the economy gotten in to very deep problems after it has gone back to a e.g. a gold standard. In fact it is not the fact money today is a fiat rather than something of worth that constitutes the problem. The real big problem we need to get away from is the privatization and centralization of money via the private banking interests and first and foremost get rid of the completely and utterly insane fractional banking system. This as it allows for private banking interests to create booms and busts (the so called business cycle) in the economy by the creation of credit that in fact is money out of this air and that then banks have the nerve also charge interest on that fraudulent behavior.

Bottom line:

in a world where money is defined as welth e.g. gold and or silver - the wealthy has the power

In a world where money is defined as credit, that is it is loaned in to existens via the fractional banking system as it is today - the private bankers rule the world.

The people rule in a world where the creation of money is made debt free via the goverment in a decentralized faschion far out of reach of centralised private hands. 

http://www.youtube.com/watch?v=Rbq7NRnCQDM&list=UUhZRoC9bMegevAxFmee1oSA&index=9&feature=plcp

Hugo Price and Max Keiser can save Greece, edited for English

http://www.youtube.com/watch?feature=player_embedded&v=DZb3AZvTZe8#!

We Are Now Beginning The Last Wave Of Gold's Major Uptrend

On the heels of the Fed announcing QE3, and the gold market surging higher, today King World News wanted to speak with the firm that is calling for $10,000 gold.  Paul Brodsky, who co-founded QB Asset Management Company, had this to say about what what the Fed and other central planners are doing:  “What I’ve noticed about today’s move is that the Fed embarked on more QE, but without any pretense, it seems, of economic stimulation.  I think this is something that investors, economists and others should take note of.”

Paul Brodsky continues:

“It may be ‘crossing the Rubicon’ if you will, from the thinking that the Fed might be able to elicit a cyclical economic rebound, to it looks as though we have a serious debt problem.  In an economic environment in the United States in which the budget deficit is on pace to grow at $1 trillion a year, it seems to me that the markets are starting to internalize that this is something bigger than what was previously acknowledged.  

We have been arguing for quite some time now that this really isn’t an economic stimulus game that the Fed and other central banks are playing.  What they are really trying to do is to de-lever the system....

“We see the $40 billion a month in mortgage backed securities purchases as being a way to put your thumb in the dyke.  We think it’s only going to get larger.  There is much more of this to come.  The frequency of further QE announcements is going to be greater, and it’s ultimately going to lead to much higher resource and precious metals prices.

Gold was up today, but what I really think we are looking at is a fundamental shift in investor psychology in that there is only so much central banks can do in terms of real economic stimulation.  Meaning they can’t.  So, again, what we are looking at is a deleveraging process that has to take place.  There is nothing that fiscal policy can do about it.  

We also think we are beginning the next and last wave of gold’s uptrend.  In reality, the move today was muted.  I would agree with Felix Zulauf’s comment (on KWN) today that you are supposed to buy the dips, and that’s been our strategy for years now.”  

Brodsky added:  “I would also agree with Felix that we are in the process of witnessing the end of the fiat money system right now.  The end result is probably going to be a new global currency regime.  It’s the only politically expedient way out.

By the way, the deleveraging that has to take place is the gap between bank assets and base money, and maybe even more than that.  There are only two ways to handle this.  The first way is to let it deteriorate on its own.  That would involve bank system failure and a deflationary depression.

The other way to deleverage is to simply manufacture the base money, which of course destroys the purchasing power of all savings.  We believe this second choice is what the central planners have been and will continue to choose.  This frankly defines QE.  They are confirming it because this is the 3rd round of QE we have seen, and they are going to continue doing more.

The bottom line here is that investors need to make sure they protect their purchasing power as the currencies are destroyed.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/13_We_Are_Now_Beginning_The_Last_Wave_Of_Golds_Major_Uptrend.html 

Truths behind global debt crisis with Steve Keen from Debtdeflation.com.

In this edition of the show Max interviews Steve Keen from Debtdeflation.com. It has been five years since global debt crisis began. The debt is now so great that it can no longer be hidden. Max discusses the issue with Steve to see what triggered the current debt crisis, what the response to it was and where we stand now. Steve also comments on the latest global debt crisis and banker's role in the current situation.Steve Keen is a professor in economics and finance at the University of Western Sydney and the author of Debunking Economics.
http://www.youtube.com/watch?v=6NLx0tT5AIs&feature=player_embedded#!

How about Quanitative Easening for the people?

The one economic benefit of QE has been to help governments finance the huge deficits caused by recession without having to raise taxes, slash public spending or face Greek-style bankruptcy. In this sense, QE has certainly prevented the U.S. and Britain from suffering worse outcomes, but it has failed to stimulate employment or economic growth. This is exactly what Japan has experienced for 20 years – and as in Japan, additional rounds of QE now will merely act as an anesthetic, perpetuating stagnation but discouraging more effective stimulus measures.

One such radical measure is too controversial for any policymaker to mention publicly, although some have discussed it in private: Instead of giving newly created money to bond traders, central banks could distribute it directly to the public. Technically such cash handouts could be described as tax rebates or citizens’ dividends, and they would contribute to government deficits in national accounting. But these accounting deficits would not increase national debt burdens, since they would be financed by issuing new money, at zero cost to government or to future generations, instead of selling interest-bearing government bonds.

Giving away free money may sound too good to be true or wildly irresponsible, but it is exactly what the Fed and the BoE have been doing for bond traders and bankers since 2009. Directing QE to the general public would not only be much fairer but also more effective.

Suppose the new money created since 2009, instead of propping up bond prices, had simply been added to the bank accounts of all U.S. and British households. In the U.S., $2 trillion of QE could have financed a cash windfall of $6,500 for every man, woman and child, or $26,000 for a family of four. Britain’s QE of £375 billion is worth £6,000 per head or £24,000 per family. Even if only half the new money created were distributed in this way, these sums would be easily large enough to transform economic conditions, whether the people receiving these windfalls decided to spend them on extra consumption or save them and reduce debts.
http://blogs.reuters.com/anatole-kaletsky/2012/08/01/how-about-quantitative-easing-for-the-people/

CSPAN Rep Paul Kanjorski Reviews the Bailout Situation
http://www.youtube.com/watch?v=pD8viQ_DhS4&feature=player_embedded

Bill Murphy- JP Morgan Is FINISHED!

Bill Murphy: There’s gonna be a Mega JP Morgan scandal which will rival the LIBOR scandal.

http://www.youtube.com/watch?v=RuwkztXa8qQ&feature=player_embedded#!

Soros Dumps Gold, Inciting Fear of Plummeting Price

"George Soros, the hedge fund investor who called gold "the ultimate bubble," has divested his portfolio of nearly its entire investment in the precious metal, inciting many to fear that the price will very soon plummet, devaluing the specie-heavy portfolios of millions of investors.

Like it or not, like him or not, attention must be paid to his movements. It can be very expensive to ignore the predictions of Soros. For example, on September 16, 1992 (a date subsequently known as “Black Wednesday”), one of the investment funds of Soros sold short more than $10 billion worth of pounds sterling, profiting from the British government's reluctance to adjust its interest rates to levels comparable to those of other European Exchange Rate Mechanism countries."

"A worldwide devaluation of gold could create a ripple of financial insecurity. For example, gold is viewed by a majority of the world as a very safe and trustworthy investment, one that only increases in value. This sort of reasoned speculation has undoubtedly fueled the bullish ballooning of the price per ounce of the metal.
If the actions of Soros and other global power brokers have the effect of devaluing gold, then the legitimacy and appeal of the call of many to return to a gold standard for the value of paper currency or to abolish the Federal Reserve (and other similar central banks around the world) and its money-printing carte blanche, will be similarly devalued."
http://thenewamerican.com/economy/markets-mainmenu-45/8495-soros-dumps-gold-inciting-fear-of-plummeting-price

My View - Take it or leave it.

Seems this now is playing out for the SDRs. I mean a really fast quick SDR implementation. One can almost hear what the ECB and The FED are yelling - We need the $100 trillion NOW, and China seems anxious as well pushing to implement this new order. But I do believe that as an absoulte prerequisit in order to even be able to implement this new SDR structure gold needs to be "nutralised". This as every competing currency out there will jeopardise any such attemt and most certainly in its very early introductionary phase.
http://intheendwerealldebt.blogspot.com/2011/08/debt-here-debt-there-debt-everywhere.html

Keiser Report: Mad Mob vs Midwest Mubaraks (E130)

This week Max Keiser and co-host, Stacy Herbert, report on the rathole to the Walker palace and a secret silver investor. In the second half of the show, Max talks to media historian and critical theorist, Michael Betancourt, about agnotologic capitalism and the aura of the digital.
http://www.youtube.com/watch?v=iRTfex2VQ7g&feature=player_embedded#at=124

John Williams - The Great US Collapse Nears

“The U.S. economic and systemic-solvency crises of the last four years only have been precursors to the coming Great Collapse: a hyperinflationary great depression. Such will encompass a complete collapse in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system as we know it; and a likely realignment of the U.S. political environment.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/3/15_John_Williams_-_The_Great_US_Collapse_Nears.html

Gold And Silver Surge On QE3 Expectation Rerack

http://www.zerohedge.com/article/gold-and-silver-surge-qe3-expectation-rerack

If You're Saving US Dollars, You're Being Robbed

Jay Carter, host of http://www.FinancialSurvivalRadio.com explains why he's not saving money, but instead holds his saved wealth in the form of physical silver.
http://www.youtube.com/watch?v=W3RSjgb0VM4

after The Fed’s creation, from 1913 to 2008 (95 years), the value of the dollar, relative to the Consumer Price Index, decreased by 95%. A dollar could buy 95% fewer goods in 2008 than in 1913. Thus, if in 1913, you sat on your savings pile of $1,000,000 for 95 years, it would then be worth only $50,000 in purchasing power (it will have depreciated in value by 95%). One would now need to pay about 20X more than J.P. Morgan for one’s bread. Ask my mother how much the price of milk has increased just in the last ten years alone.

In other words, the value of the dollar remained extremely stable for 150 years, then The Fed was created in order to "stabilize the value of the dollar" and the result has been a 95% devaluation of the dollar in less than 100 years following its creation. Below is a graph of this history, which I’ve marked with the year 1913 so you can see the change. The graph is also marked with the years of decoupling from the gold standard, as no examination of dollar value would be sound without such mention.
http://www.lewrockwell.com/orig10/voorhees1.1.1.html

SILVER MANIPULATION DAY OF RECKONING

http://www.youtube.com/watch?v=-ZNHs2UpEjo&feature=player_embedded#at=14

“JP Morgan’s losses are exponentional once silver breaks $36″

WB: JPM is in worse shape then we ever dared to hope.

This is what I am now hearing from traders on the floor. These traders are not even sure if Blythe knows the full extent of JPM’s silver exposure.

When I first started to realize that JPM has shorted far more silver than they could ever hope to cover, my first question was “why would they do that?” Not only that, why do it with a commodity where you must report your positions through the COT and Bank Participation Report? After all,the whole world can see what you are doing. [my added comment: Ted Butler included!]

Now I know the answer. According to Max Keiser and now a couple of other independent sources, it seems the reasons why first Bear Stearns and now JPM are so desperate to manipulate the price of silver down is due to the fact that BS and JPM shorted billions (yes billions not millions) in ounces of silver through their derivatives.

Just like Joe Conason at AIG, silver shorting through derivatives have caused literally billions in losses not the millions that we know about publicly. That is why JPM has been so desperate to manipulate the price of silver downward so blatantly. If I am right about this, then JPM will be dead when silver hits $60 or so. Based upon the COT and BPR, if silver hits $60, JPM will lose around an additional $6 billion dollars, a large number but not nearly large enough to bring down mighty JPM.

But what is not known is that due to the way that its derivatives are written, JPM’s losses are exponentional once silver breaks $36 or so. Rumors has it that JPM could be losing as much as $40 billion once silver is above $50. It has something to do with how the derivatives are written with payment tied to the price of silver.

Since JPM was a price manipulator with respectt to the price of silver, JPM assumed that any derivative payments tied to silver would be less than they would be tied to some other index like the CPI or TIPS implied inflation index. JPM’s inability to hold down the price of silver relative to other measures of inflation will cause unbelievable losses due to a mismatch in their derivative structures.

In essence,JPM has bet (a huge amount)through derivatives that silver will never outperform inflation. And why not,since JPM assumed that it will always be able to manipulate the price of silver. We have now come to understand that JPM’s loss exposure to silver is much greater than we have ever dared to hope.

WB: In an effort to clear up some recent confusion regarding my latest posting, I will try to explain what I have recently uncovered.

JPM’s current short silver position is estimated to be approximately 150 million ounces down from the recent 180 million ounces in August. The losses from these positions are easy to figure out. For every $10 rise in the price of silver, JPM will lose $1.5 billion. But what I have recently discovered is that through its derivative positions, JPM will lose about 5 times that amount ounce the price of silver is above $36. And ounce silver is above $45 dollars, JPM’s losses will increase to 8 times the amount of losses in their short positions. The reason is that as the price of silver increases, certain provisions get activated which multiplies the losses.

One reader asks the question why isnt the price of JPM going down to reflect the lossesd in silver. My answer is that the price of silver is not high enough to begin to trigger losses in their derivative positions. But once silver approaches this critical level say around $36, then you should begin to see the price of JPM stock begin to reflect these losses.

In fact, traders are saying that once the price of silver surpasses the stock price of JPM, then for every dollar the price of silver go up, JPM should lose around 70 cents or so. This means that if silver hits $60, JPM will be a single digit stock.

JPM market cap is around $170 billion. If silver losses are as great as $40 billion in cash , then JPM will be insolvent. Period.

Peter H.

My comment - Buy physical silver for immediate delivery and short the JP Morgan share.

Honest and Sound Criticism of Zarlenga’s American Monetary Act

But first an Interview with Stephen Zarlenga very worth while listening to:

Part 1
The Lost Science of Money, pt. 1 - Stephen Zarlenga
http://www.youtube.com/watch?v=1l3OxMAF7Rk&feature=related

Part 2
The Lost Science of Money, pt. 2 - Stephen Zarlenga
http://www.youtube.com/watch?v=h_2Wo0RRkQU

Honest and Sound Criticism of Zarlenga’s American Monetary Act
http://libertyrevival.wordpress.com/2010/06/22/honest-and-sound-criticism-of-zarlengas-american-monetary-act/

Från Italien till Gnosjö
http://intheendwerealldebt.blogspot.com/2008/11/frn-italien-till-gnosj.html

Egon von Greyerz: "A Hyperinflationary Deluge Is Imminent", And Why, Therefore, Bernanke's Motto Is "Après Nous Le Déluge"

As we have explained for many years, hyperinflation is created by the government destroying the currency as a result of money printing to finance deficits. This leads to the cost push inflation that we are now experiencing. Add to that, shortages in commodities worldwide, thus creating the perfect hyperinflationary scenario. The Dollar, the Pound, the Euro and many other currencies will continue to decline. They can’t all decline against each other at the same time so the market will take turns in attacking one currency at a time. But all currencies will continue to decline against gold. We believe that the dollar will soon start a very rapid fall against gold and against many currencies. Investors should exit the Dollar and also the Pound and the Euro. There is no currency better than gold or silver but for any small amounts of cash we prefer the Swiss Franc, the Norwegian Krone, the Singapore dollar and the Canadian dollar.

“There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved.” – Ludwig von Mises
http://www.zerohedge.com/article/egon-von-greyerz-hyperinflationary-deluge-imminent-or-why-bernankes-motto-apr%C3%A8s-nous-le-d%C3%A9lu

Actually the notion that it is the goverment that is the problem is entierly false. Goverment should be by the people and for the people. Goverment is us. Problem is goverment is NOT in control instead its the Federal Reserve and the fractional banking system creating money as debt. This means money is defined as debt and thus debt can never ever be payed of. It is a defenition of money as debt and thus it's the bank that has the power. When it's the goverment that creates the money and pay no interest for doing so and with this finace tageable things like infrastructure, healt and education there is no defecit and no inflation. And the money is used for what it is intended for - the betterment of human conditions and improving our environment. Remember the defenition of usery is when money is not used for improving lives for all living things and the environment but simply in order to promot greed.

This stupid idea that gold and silver is the solution is pathetic and if you to that idea then also add the notion the goverment (the people) is at the heart of the problem well then you're really lost.

But there are solutions available - key word Money is legal tender

Nationalize the Fed. - End Banks Power to Create Money
http://www.youtube.com/watch?v=V_kbyAl3-AM

http://www.youtube.com/watch?v=nA54cgkvc_w&feature=related

http://www.monetary.org/ '

Then there are pople that beleive they promohing someting good when in fact is not in any way removing the real obstascle - the fractional banking system. Just simply owning the banks is just half the solution. It's allowing them to create money that's at the heart of the problem.

How Wisconsin Could Turn Austerity into Prosperity: Own a Bank
http://www.yesmagazine.org/new-economy/how-wisconsin-could-turn-austerity-into-prosperity-own-a-bank

And for all of you out there arguing well this then is socialism, well then what isen't?

97% of All U.S. Mortgages are Backed by the Government I heard a recent talk by Richard Wolff – Professor of Economics Emeritus at the University of Massachusetts in Amherst (PhD in Economics from Yale) – where Wolff said that 97% of all U.S. mortgages are either written or guaranteed by the government. http://www.ritholtz.com/blog/2011/03/97-of-all-u-s-mortgages-are-backed-by-the-government/

Seems that whenever tax payers money is "socialised" in order to support the financial sector is a good thing but when it's used to pay for healt, infrastructure, education is a bad thing?

Next is they coming to get you pension money in order to pay their rich criminal friends on Wall-Street. I'd bet they'll get away with calling that capitalism

George Carlin -"Who Really Controls America"
they are coming to get your social security money and your pension money so that they can give it to their criminal friends on Wall-Street
http://www.youtube.com/watch?v=hYIC0eZYEtI

You know an estimated 50% of ever tax dollar paied in the US is used to finance the Military/ Security sector. That's corporate welfare. So right now it's a system where austericy measures are used in order to eliminate welfare to the sitizens but at the same time promoting big time welfare to the big corporations.

Obama budget is the continuation of the bailout plan which was carved out to please corporate companies. They now have to balance the budget on the side of the poor. So, interest rates will go up and bank portfolios will collapse. Indeed the war machine in the states is very powerful and they are controlling the entire system for implementing their objectives.
http://www.youtube.com/watch?v=89EIadJ1QeQ&feature=player_embedded

The real issue here is that we simply do not have a goverment worth the name as it's supposed to be - by the people and for the people.

Keiser Report: Middle Class Misery

This week Max Keiser and co-host, Stacy Herbert, talk about a Chinese gold standard and about sobering facts about the U.S. middle class. In the second half of the show, Max talks to John Butler of Amphora Capital about gold bugs, the duration paradox and holding dollars.
http://www.youtube.com/watch?v=XB2FS4RT2sY&feature=player_embedded#at=88

Jim Rogers: "Saudi Arabia Is Lying About Being Able To Increase Its Oil Production"

Jim Rogers joins Zero Hedge in being highly skeptical about just how credible Saudi's call for a 1MM + boost in its oil supply is: "Saudi Arabia has been lying about the reserves for decades. Saudi Arabia the last two times said they are going to increase production and they couldn't increase production. Don't fall for that. The reason oil is going up is the world is running out of known reserves of oil." Of course, then there is the question of does one trust the Quantum fund creator who retired at 37, or does one go with the sellside lemming brigade of monkeys with typewriters who will groupthink anything and everything to death, just to get paid another completely unwarranted bonus. As to those who are concerned that the commodity "bubble" is about to pop, Rogers says: "It's still years away." And some reinforcement for the gold and silver bulls: "Gold will certainly go over $2,000 by the end of the decade, and silver will pass $50." And as a hedge to his great commodity bull market call, Rogers continues to be short Nasdaq stocks. His thesis: "If the economy gets better I am going to make money in commodities, if it doesn't get better, I am going to make money in commodities cause they are going to print huge amounts of money." Call it the adjusted Tepper call. Rogers is also holding a contrarian all on the dollar: "I own some dollars now because there was a huge drop in the dollar. I do sometimes like to buy things when they collapse, and sometimes I don't. Sometimes I lose money." We assume this is merely a short-term revulsion trade as all the near-record USD shorts get flushed out as we highlighted in the latest Committment of Traders update.

Full interview:
http://www.zerohedge.com/article/jim-rogers-saudi-arabia-lying-about-being-able-increase-its-oil-production

If You Think This Oil Spike Is Temporary, Check Out This Chart
This oil price spike is going to be anything but short lived, if you believe this chart from Morgan Stanley.

It details how by the year 2013, there's not going to be any excess supply in the system. That means, even if the Saudis aren't lying about being able to ramp up production like Jim Rogers says, they've only got two more years to do so before that spare capacity evaporates.

So beyond the Middle East instability trend, there's a much bigger problem lurking.
Read more: http://www.businessinsider.com/oil-spare-capacity-2013-2011-2#ixzz1FK2IAKBL

Then if you also scanned trougt the abowe link in regards to countries that will be hurt by and benefit from an oil price over $100 per barrel then you need to remember that's then not the whole story.

Add to this complex matter also "the food" challenge as described below by Mr Jeff Rubin whell then there are very few countries that will get out of an oil price increase as winners. As both a comodity, oil and grain exporter possibly Canada might be the ONLY one?

Then also remember that you have a situation with rapidly increasing economies and explosive population growt in almost all of the oil producing countries that will consume more and mor of that oil that they still are able to produce so as flat and future falling oil production combined with a steady and explosive growth of domestic consumtion means less and less volume of oil to export. So then going forward in coming years and even if oil price would be hiked up well the earnings from oil exports will start to decline. Given that these oil producing countries are so very dependent on earning from oil then the social domestic challenges they will face will be tremendous. It just cryes out social instability all over the place.

Soaring Oil Prices A Double-Edged Sword in the Middle East
Why is the Arab world convulsing with social and political unrest when triple digit oil prices should be bringing enormous wealth to the region? The answer may be that the link between energy inputs and food prices suddenly makes soaring oil prices a double-edged sword in the world’s largest food importing region.

Egyptians are about to find out that it is a lot easier to eradicate your local dictator than feeding your population. The crush of poverty is felt under the weight of a population of 80 million people who live in a country where average annual rainfall is less than two inches and where only 3% of the land is arable. Aside from a narrow strip along the life-sustaining Nile River, Egypt is basically an inhospitable desert.

Yet the population of Egypt has tripled to 80 million today from 27 million in the early 1960s. While the birth rate for an average Egyptian woman has fallen from six children to just over three, it still fuels more than 2% annual growth in the population. At this pace, Egypt’s population will double to 160 million by 2050.

But the country is already importing 40% of its food supply and 60% of its grain. Even a brutally repressive regime like Hosni Mubarak’s still spent 7% of the country’s GDP on food and energy subsidies. Can a replacement regime afford to spend more?

Not likely, particularly when the country’s oil production peaked in 1996 and has subsequently declined by 30%. Oil exports are down 50% thanks to strong demand for its subsidized fuel.

The problem facing Arab countries today is higher oil prices feed directly into higher food prices. While oil may be massively subsidized in the Middle East, it’s not in major grain exporting countries such as Canada, Russia and Australia that Arab nations increasingly count on for their food supply.

From the diesel fuel that runs tractors and combines to the power needed to pump water through irrigation systems, modern agriculture is one of the most energy intensive industries. And the Middle East is the largest food importing region of the world. As the price of oil goes up, so does the price of food imports.

Egypt’s problems feeding runaway population growth is not unique to the region.. They are in evidence throughout the Middle East given the masses now out in the streets in Libya, Algeria, Yemen, Jordan and Bahrain demanding regime change. Could Saudi Arabia be next?

Population growth in the Middle East is rapidly outstripping the carrying capacity of the land. Democratic reform may be what is on the protestors’ lips but demographic reform is at the heart of the region’s problems.
http://www.jeffrubinssmallerworld.com/2011/02/23/soaring-oil-prices-a-double-edged-sword-in-the-middle-east/

My comment - Peak Oil is the reason ALL oil producing repressive political regimes including Saudi-Arabias ruling elite eventually has to fall. Now it's just a matter of when. Then note that e.g. Egypt peaked oil in 96, imports some 50% of its food and 60%of it's grain. Compare this to the US where their oil peaked in 74 and now imports some 70% of all their oil. Sure the US got grain but given future oil prices how sustainable is it agricultural system as it's designed today? Bottom line - when will the social instability also start to hit the US?

So then we need to the compex issue of Peak Oil also add the question how economical and food inflation may add to this complexety? A fair guess might be that oil from the middle east will not be very awailable for the rest of the world in coming years and that cost for food production will increase due the the hig dependency on oil in our modern agricultural system. On average the costs in a typical american farm is 50% oil related.Kinda gives you an idea, given the challenges with PO, where food prices now are heading..., doesen't it..?

Dollar getting slammed, Silver and Gold surging toward new highs

"Hillary Clinton in her speech today to the UN’s Human Rights Commission, stumbles on the Iran issue. She completely ignores the human rights abuses of Sunni Saudi Arabia, blows a kiss in the direction of Israel, and picks on Shia Iran. This kind of sectarian favoritism exacerbates tensions in the region instead of easing them. Sitting at a cafe here in Beirut, watching Hillary, my impression is that Hillary is struggling to get a grip on the reality on the ground here in the Middle East. She refuses to break out of the Saudi Arabian/Israeli narrative for the story.

The Dollar is not attracting ‘flight to safety’ support and this is surprising a lot of money professionals. I just heard Hillary’s speech in front of the UN and felt as if she was still reading from the old playbook written by Saudi Arabia and Israel decades ago. She sounded out of key as do all of the knee-jerk analysts ‘surprised’ by the dollar’s weakness. Silver is to the dollar – what the revolutions in N. Africa are to the dictators there. We are witnessing huge shifts in political and economic trends. The old dictators, including the US dollar – as world reserve currency – are being chased out of town by a global insurrection against the banker occupation. "

Max Keiser

iShares Silver Trust (SLV) scam exposed

SLV scam exposed. Investment fraud, stock market scams, economic collapse, inflation, deflation, Gerald Celente, Jim Rogers, Robert Prechter, Alex Jones, Charlie Sheen, Michael Savage, Max Keiser, silverfuturist, visionvictory, Mike Maloney,Gadaffi, gold, silver, hyperinflation, bank holiday, bank run.
http://www.youtube.com/watch?v=_-dBQd16cvg&feature=player_embedded#at=213

Why People Don't Buy Gold
http://www.youtube.com/watch?v=Yjr7NtntWeQ&NR=1

Turk - Dollar Ready to Collapse, Silver Squeeze to Continue

“The dollar right now is hanging on the precipice. If we break below 77 on the dollar index, look out below. I don’t think people really appreciate how scary the dollar chart is here, or how ominous the implications really are. There’s no predicting how far the dollar could plunge if confidence breaks.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/2/25_Turk_-_Dollar_Ready_to_Collapse,_Silver_Squeeze_to_Continue.html

There is no solution whatsoever until there is a MAJOR crisis

So here we are, waiting for the “event” which triggers a loss of confidence across the system. Will it be a sovereign, a US state, a bank, QE3 or QE5, the oil price, Chinese fixed investment, a false flag event (a convenient distraction/excuse) or a revolution?

When it happens, the speed at which capital will move in today’s over-liquefied world will take people’s breath away.

Where will it go? This is the global end of normal (baby) so that, first and foremost, it will go into the strategic assets - gold/silver, energy, food/agriculture, rare earths, etc, (as well as the equities of the financially strongest economies).

Bernanke’s QE2 is nothing short of economic warfare, in the form of a wave of inflation, directed at the rest of the world and even his own population (at least anybody without a large stock market, commodities or precious metals portfolio). This inflation is not temporary, as per the false reassurances, it’s baked in. Here is Martin Armstrong recently talking about the US budget deficit:

“A friend of mine on Capitol Hill, among others there, tells me there is no solution whatsoever until there is a MAJOR crisis”

In response, creditor nations have no other choice than to cut purchases of US Treasuries (China is selling), leaving the Fed increasingly standing alone. Rampant or hyperinflation results from the complete loss of confidence in a currency and we are being steered in this direction by the gentlemen above. Sure, they are smartly dressed, well educated (kind of) and pretend to know what they’re talking about with their carefully worded “policies”. It’s all NONSENSE. All they’re doing is leading us down a well-trodden path which has happened time and again throughout history.

In the meantime, there is evidence that the correction in gold and silver prices during January/ early-February-2011 only accelerated the process of Gresham’s Law Squared. In this scenario, buying some junior gold and silver exploration & development plays could translate into “Gresham’s Law Cubed”.

These stocks should have the greatest leverage to bullion prices in the medium term if they execute well and big funds, as well as retail investors, increasingly buy in. Examples from the 1970s prove this in spades – I wish I’d owned the “5,000 bagger”. I’ve cut back some positions in some major gold and silver companies to fund small positions in a string of these (admittedly risky) juniors. I already had positions in ECU Silver and Fortuna Silver mines, which are development plays/early producers, and I’ve bought some South American Silver, Bear Creek Mining, Vista Gold, Minco Silver, Gold Bullion Developments, Arian Silver, Axmin, PC Gold and Majestic Gold.

Like wild dogs which have been cornered, our central banking friends are likely to strike back at some point, since gold and silver are their mortal enemies. So expect the unexpected. The enemies of gold and silver are twofold, benign economic conditions and rising real interest rates. The former is not on the horizon, so they might try to bluff the market into believing the latter - for a while anyway. We all know that they are well behind the curve on inflation. So don’t be surprised if, for example, a manipulated Non-Farm Payrolls (unemployment) report out of the US is used as the catalyst for a (small) coordinated rate rise across the US, UK and Europe. The problem for these gentlemen and their political brethren is their insane policy of trying to solve a debt crisis with MORE DEBT. We are already past the point of no return in the current monetary system and anything other than a very modest rise in rates will only bring systemic collapse sooner rather than later. Hu Jintao was only stating the obvious on 17 January 2011 when he said that the dollar reserve system is a “product of the past”. The bark of these wild dogs (and “monetary drug dealers”) is much worse than their bite.

If you think about it, the whole basis of world finance and the world economy as we know it - and all those millions of forecasts for corporate earnings and economic data generated by legions of analysts in investment banks - are based on one critical assumption. It all hinges on the “greater fool theory” continuing to apply to buyers of US Treasury bonds (and the debt of other western governments along with Japan) and that a demonstrably insolvent US government can continue to find “investors” prepared to lend it gargantuan amounts of money. Kick away the rotting foundations beneath the world’s reserve currencies and everything changes.
http://www.zerohedge.com/sites/default/files/Thunderroad%20Report%20February.pdf