Saturday, 9 April 2011

Weekend Update April 9, 2011

Baltic Dry Index. 1376

LIR Gold Target by 2019: $30,000. Revised due to QE.

"The fate of the nation and the fate of the currency are one and the same."

Dr. Franz Pick

Ever so slowly, mainstream media is awakening to the fraud of fiat money and how it lies at the root cause of what ails casino capitalism. Without honest money, the great vampire squids and their banksters can engage in massive financialised casino gambling without any risk to themselves. When all goes wrong, on a fiat money system the central banksters just take over the losses and pass them on to everyone else trapped in the fiat currency by legal tender laws. The currency devalues against tangible assets, reducing everyone’s wealth and standard of living in the process. Below The Telegraph almost gets it, but shies away from calling for a return to metallic money. Still this is a big improvement. A decade ago, only blogs like this one were raising concern over where our fiat money casino capitalism system were taking us. To mainstream media, a banking crash like the one we are still in the middle of was unthinkable. Guru Greenspan walked on water. We were on an unstoppable pathway to heaven. We in the west thought, traded, and bought real estate. The rest of the world did old fashioned work. We were the Lords of the Manor. They were the sweaty peasants.

After 30 years on the fiat currency dollar reserve standard, this was the way it was to be for all eternity. Then came Greenspan’s infamous US real estate bubble necessary to bailout his failed stock market bubble, made worse by Ebenezer Squid and his Wall Street gang, who securitised dross into “triple-A” securities peddled to brain dead money managers globally. Was it any wonder that the great vampire squids paid themselves astronomic bonuses, as the looted a system they knew was headed for failure.

"The gold standard makes the money's purchasing power independent of the changing, ambitions and doctrines of political parties and pressure groups. This is not a defect of the gold standard; it is its main excellence."

Ludwig von Mises

Aussie dollar boosted by its own 'gold standard'

The Australian dollar is one of the strongest currencies in the world because it is a commodity-backed currency. That’s why it hit a 29-year high against the US dollar today – and it’s all related to the gold price.

Garry White 10:44AM BST 08 Apr 2011

The gold price is hitting new all-time highs on a daily basis because many investors have lost faith in paper money. They believe that central bank printing presses are devaluing currencies on a daily basis.

It is the same lack of belief in paper money that has been boosting the Aussie dollar. Paper money used to be backed by gold held in a central bank, but this was abandoned all over the world, allowing central banks to print money via processes such as quantitative easing.

Today, no currency in the world is on the gold standard – all money is “fiat” money.

However, Australia has significant resources of gold, uranium, iron ore, coal and many other important and valuable commodities. They are in the ground, not in a central bank, but this is the nearest thing the world has to the old gold standard. That’s why the Australian currency is so strong.

The same is also true of currencies in Canada, South Africa and Russia. They are effectively backed by commodities in the ground.

----Commodity prices will fall – and the Aussie dollar along with it. But it won’t be for some time yet

We end for the week with very bad health news from India. It’s only a matter of time, months if we are unlucky, years if we’re lucky, before this development causes a new round of epidemics.

Antibiotic-Resistant Bacteria in India Could Spread, Experts Say

THURSDAY, April 7 -- A gene that helps bacteria resist nearly all antibiotics is present in bacteria in public water supplies in New Delhi, India, researchers have found.

The investigators are especially concerned because the New Delhi metallo-beta-lactamase (NDM) 1 gene has been detected in bacteria that cause cholera and dysentery.

NDM-1 now appears to be widespread in the environment and that points to the critical need for action to limit the global spread of NDM-1-producing bacteria, said Timothy Walsh, of Cardiff University in the United Kingdom, and colleagues.

The study authors tested the public water supply -- which is used for drinking, washing and food preparation -- by collecting samples from community waste seepage (pools that formed in public areas) and tap water in urban New Delhi. They found the NDM-1 gene in 51 of 171 seepage samples and two of 50 drinking-water samples. The gene was found in 14 different species of bacteria, including 11 species in which NDM-1 had not previously been known.

The study is published in the April 7 online edition of The Lancet Infectious Diseases.

"The potential for wider international spread of plasmids encoding NDM-1 is real and should not be ignored . . . coordinated, concrete and collective efforts are needed, initially to limit their widespread dissemination, and finally to combat this emerging threatening resistance problem," Mohd Shahid, of Jawaharlal Nehru Medical College and Hospital in Uttar Pradesh, India, wrote in an accompanying commentary.

"Gold will be around, gold will be money when the dollar and the euro and the yuan and the ringgit are mere memories."

Richard Russell


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