The President of the World Bank, Robert Zoellick, obviously has bought a pile a gold and so have his buddies, which is why they are advocating the insertion of an element of gold into the SDR, the IMF’s preferred reserve currency replacing the dollar since 1991. Nearly all serious commentators have found the idea of using gold as money unworkable, and not so likely to happen, although with gold pushing the roof off, talking up gold as money is a great way to give the speculators even more rocket fuel, and get those Christmas bonuses planned early .
Other commentators position the idea of gold as part of the world’s monetary system in stronger terms. Martin Wolf in the FT writes that it would not be unreasonable to call for a rethink as to the global monetary system and its workings…
But gold? Does anyone expect politicians to put placating the world’s most speculative commodity market before worrying about a slump? Whom the gods wish to destroy they first make mad.
He sees that stopping deflation in the USA is the key, which is by far and away the primary threat. With underlying US inflation down at 1%, and that the case, even with oil at $84 a barrel, the Commodity Index at a two year high, and the Dollar in a trough, the much-hyped onslaught of US inflation is nowhere in sight.
The dollar will power up from here, quantitative easing or not. It is the inflation/deflation battle that is being fought, and the amount of QE won’t even touch the sides against powerful deflationary forces. Making gold into money, as proposed by Zoellick, would merely make the threat of deflation worse. Mad is quite right. Gold is an irrelevance, buoyed up by talk of non-existent inflation, and soon to crash to earth.
Yet this comment from Lord James makes me think. He said –
Lord James claims the group, which he referred to as ‘Foundation X’, has more gold on hand than all the world’s bullion reserves combined.
If this is true, then the One World Government has far more gold at its disposal than we know, and might well be in a position to make gold an element of the Special Drawing Right, or SDR. That could be why they are boosting the value of the metals to way above their natural market level. It’s got nothing to do with India or China, as market participants might believe, or Reuters will tell you, but all to do with creating an international currency, the SDR, which only the One World Government is in a position to control. And the gold part is the bit which would enable them to hold the rest of the world in their power. They could control the world’s money beyond all democratic control.
In fact gold as money is not as mad as it seems, in that case. It is being made the medium of political power. The EU (Germany especially) is handing over all its gold to Bank Of International Settlements as surety for the bail-out funds it is borrowing. The BIS is the central bankers’central bank, privately owned by people who are probably already ruling the world, and have been for decades.
Cameron like Blair (and Clegg) only sees acting as Prime Minister (or Deputy) as a stepping stone within the One World Government power structure. ZOellick is merely informing the world, like Lord James, as to what is really going on.
If this theory is correct, then gold will rise to a point at which it will stop and be held as if by an unseen force that has decided long ago where the price has to get to, and stay, in order to become part of the SDR, with the OWG in control of it all.
Gold might be declared up to 5% of the value of the SDR, it was estimated by the late Joan Veon. The USD would be 40% and the Euro 35% with Sterling, the Yen and Gold making up the difference.
As the saying goes, those who hold the gold, make the rules. The patsies that pose as Prime Ministers and Presidents are all part of the system, it seems. The revolution will rise up from the streets, but the revolutionaries must at least be told who is running the show first.