The Coming 'Great Gold Pivot' and the New Fiat System

Note: This has been extensively rewritten having distilled the essence of my thinking from the 'rant' of the previous version. —G
 

As I, like the rest of most of my friends, gape in fearful wonder at the financial drought and critical damage to the world's exchangeable currencies caused by the manipulative greed of those who own and operate it, I have cause to look deeper into the potential of little moves which may fell the monster.

I see a scenario emerging where the top 1% can be seen, through market behavior, manipulating the markets to retain (and increase) their wealth and power.  This is not unusual and were I in that position I would, if my existence revolved around wealth and power, be predisposed to do the same. 

Caught in this cycle of planetary change they probably see their danger.  With severely damaged economies shrinking the foundation and extendability of their ascendancy they must be seeing gold's historic behavior as a raft in the storm—like everyone else is.

Unlike everyone though they have benefited greatly from the fiat system which can be seen in the massive gap between their wealth and everyone else.  I believe they are in the process of positioning themselves to use gold and their trading power to use gold as a 'pivot' to migrate their wealth over the inflation abyss and into a revitalized fiat with shrunken debt. 

However, there may be blindness in the unbridled self-interest leaving them with limited vision and the danger of entitlement.  It is that group that has essentially generated the present condition.  I do not see an evil conspiracy rather a shared myopia of political and economic leadership caught in this clear cycle of planetary redefinition.

Though we may want to believe we are above natural law nothing could be further from the truth.  Human beings have never be separate from nature.  As such the larger movements of change are natural.  As with any cycle what was a the top will tend to be on the bottom.  The 'best' are predisposed to clutching to the view of their ascendancy of course.

The beginning of the 'Great Gold Pivot' can be seen in the trading behavior of gold.  Revealed in extended sideways trading gold-price manipulation, holding the price of gold and other precious metals in a range that benefits accumulation.  This I see as the transfer of wealth in preparation for the use of gold and other precious metals as the pivot. 

However, the pivot itself may be in great danger of falling flat with so much attention being given it. The spike may both look different this time especially if there is so little participation by the much much larger group of the relatively unwealthy and unpowerful.

Why?  Because the relatively unwealthy and unpowerful may be in the process of changing the game right under the feet of those who at present hold the board.

Historically the 'board' has consisted of a set of positions held by the 1% actively limiting participation of the 'great unwashed masses'.  But things are different now.  The board's positions are losing relevance to a world of people that communicates freely amongst themselves without effective censorship on the web.  But it is also knowledge and information that flow freely which greatly diminish the potency of the tools of the 1%.  Indeed this has also resulted in the machinations of the manipulators being unmasked more effectively and in real time which, coupled with the previous points, reveal the true shift in power away from the traditional powers.

Thus the stage is set for what may be both a diminished gold bull cycle and a new system of monetary exchange ripped from the grasp of divide-and-conquer's traditional masters

The core thread of the whole theme is exchangeable value and who controls it.  Gold has historically been the ultimate store of value because everyone thinks it is.  But the thinking is changing as the 'masses' perception of money's present masters' activity rises to general awareness.

It is very important to understand it is people who have always determined value.  But up to now that determination has been utterly manipulated.  

The idea of fiat currency is actually quite functional much more so than gold.  The only problem with the fiat system is that it has been controlled and manipuated by 'special' self-interest groups.  This is now revealed as problematic for emerging planetary society as it continues to move towards democratic management—political and otherwise.

Is there a system, a currency system that has the potential to cut the shackles of the powerful moneyed tribes?

Yes there is: Bitcoin

This or something similar is the little stone that could be the path of the changing economic reality.

Begin your research and add your mind to the change for the better which our world needs now.

G

PS  Here is a video, article and links for Bitcoin.

      Video: Bitcoin & The End of State-Controlled Money — http://t.co/E6LFeFi8

      Start looking into this and be prepared to be safe from the falling giants. —G

Is it really resource nationalism?

Resource nationalism is really economic nationalism.

Think about it.

The size and complexity of our economic and communications world has expanded exponentially but the economies in it have not and see the American version of the free market for what it is: greed and power.  And that's what they want too, the what-used-to-be the American Dream.

It should come of no surprise that they want what they see as theirs within the boarders of their country.   in order to be able to play well with others.

We are seeing is the emergence of new realities in markets and governments.

I feel sorry that companies are getting caught in the sea change that began at the turn of the century.

Don't get mad about it and realize that the big cop on the block, the USA, simply can't threaten, cajole or control this new world in the process of reordering itself.

Investors need to learn to see things as they are and seek insight into how to benefit from this.

It is my opinion that investors should be choosing jurisdictions that will protect their investments and flee those that do not.  It is that simple.  And their are a lot of options for them in stable jurisdictions.

The article below is from the local business paper in Vancouver, 'Business In Vancouver' about local companies in the mining and exploration business internationally.  It talks about how companies are trying to protect their "assets in foreign lands with legal agreements and key relationships".

But remember politics and corruption can trump any of these.

G

Rising tide of resource nationalism threatens Vancouver miners

by Jenny Wagler Tue Jul 24, 2012 12:01am PST
 
Companies protecting assets in foreign lands with legal agreements, key relationships

High commodity prices and a shaky world economy are intensifying Vancouver mining companies’ clashes with resource nationalism.

Two recent examples include Bolivia’s recent threats to nationalize South American Silver Corp.(TSX:SAC) and Rusoro Mining Ltd.’s(TSX-V:RML) July 18 announcement that it is filing for arbitration after Venezuela nationalized the company’s investments.

A Ernst & Young LLP’s recently releasedglobal survey identified resource nationalism as the top business threat facing mining companies for the second year running. In 2008, the risk ranked eighth on the survey.

Tom Whelan, leader of Ernst & Young’s national mining and metals practice, said the forces driving the trend aren’t hard to identify.

“Every government treasury around the world is under difficult circumstances, and if you look at [high] commodity prices and some of the earnings of the major mining companies … it’s easy to see why there’s a target,” he told Business in Vancouver.

Whelan said companies can protect their assets against the threat in a number of ways.

“It starts with building transparent relationships with the host government so that they understand the entire value of the project to the host government.”

He noted that companies should emphasize everything from tax dollars to infrastructure developments and jobs that projects bring.

Fred McMahon, the Fraser Institute’s vice-president of international policy research, said mining companies need to engage positively with local communities in a project area.

Beyond playing nice with governments and communities, however, companies are seeking legal mechanisms to protect their projects.

Chris Baldwin, a partner with Lawson Lundell LLP, noted that resource nationalism can span everything from tax increases to outright seizure of company assets. He said the key legal protection companies can obtain from a host government is a stability agreement.

Read more...

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