Who owns the Central Banks ?

Below comes from the official FED web site. Red italics are mine.

The Federal Reserve System fulfills its public mission as an independent entity within government.  
It is not "owned" by anyone and is not a private, profit-making institution.( not profit making? what about 6% divident below?)
As the nation's central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding ( it prints it ) appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.
However, the Federal Reserve is subject to oversight by the Congress, which often reviews the Federal Reserve's activities and can alter its responsibilities by statute. Therefore, the Federal Reserve can be more accurately described as "independent within the government" rather than "independent of government."
The 12 regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation's central banking system, are organized similarly to private corporations--possibly leading to some confusion about "ownership." ( can it be more direct? ) For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

Hang on: not operated for profit! But for every share or stock or money issued given to other banks or government it earns 6%. So, it prints money, releases credit in the market by a stroke of a pen, gives it to others to use and demands at least 6% divident or interest for it. Solid business.

The statement still does not clearly say who actually owns the FED, and for that matter any other central bank. Member banks or top bankers?

Chuck Prince, CEO of Citibank, said in 2007 - after a 25 year bull market BOND market, basically adding debt upon debt in the market, "As long as the music keeps going, we can continue this fraud"

Sounds a bit like all the feeders and investors who took money from others and pumped it into Bernie Madoff Ponzi sceme...hey the music plays...keep going.. when will it all bust?

http://www.federalreserve.gov/faqs/about_14986.htm
as to who owns the FED

Unfortunately the ECB web site does not ahve any details as to who owns it:
http://www.ecb.europa.eu/home/html/directory.en.html

Mike Maloney on Gold's Checkmate and Ben Bernanke's role as the Pawn!

In general, I do not allow main stream media propaganda by politicians
and or financial engineers to dictate me lies and misinformation to serve
filling their own wallets and empty million others.

One alternative is to learn from guys who know basic truth about
finances, precious metals, etc..

One of these is Mike Maloney. Advisor to Robert Kiyosaki, author
of the most successful financial book in history, Rich Dad, Poor Dad.

Watch his below recent interview on the FED's monetary policy and
what we can expect in the near future..

Testing feedburner

Testing feedburner.

WFS - World Financial System Modus Operandus

"If you know HOW the World Financial System works,
you know the Game that you are playing...
...And if you don't know the Game and the Rules that
we are playing by, you are going to get slaughtered."

In love it when people have an opening address like this
for a documentary!

Why media is paying no attention to Ron Paul?

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When following the USA premaries on 2012 Election, I see that the media is hardly mentionning Ron Paul.
His name is not even mentioned when pictures are taken by all the candidates and much smokescreen is made on issues of other candidates while ingnoring the real issue. The economic fables and illusions.
It is a miracle why in this day and age, politicians, financial engineers and media are calling good: bad and bad: good!

They even call it bad (?) debt and good debt.

One of the few who is "honest" on how this system works, Ron Paul, is honest about it enough is "criticized" for not knowing it at all! Is the monetary system we are operating in now the so much discussed "Babylonian Mystery" that can rise and fall in one hour?
Watch below interview with one of my favourite mentors, Michael Maloney on the subject of monetary issues and currencies (aka finance) .

Conventional Wisdom or Conventional Ignorance ?

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Crude Oil for Gold ?

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Read following article by Anglo Far East's AFE Director Simon Heapes:  
The biggest exchange for oil in the glo bal world on mass is via the world's reserve currency, which is the US Dollar. 
If sanctions are placed on an oil-producing nation's ability to sell its oil, that nation will attempt to exchange its oil for an alternative, probably gold! This would have negative ramifications on the value of the US Dollar, because of less demand for USDs, and it would have a positive effect on the value of gold because of greater demand. 
Those readers who recall the media reports back in the 1990s before the USA attacked Iraq might remember that Saddam Hussein was attempting to exchange Iraq's oil, which produced 40% of the Middle East's oil at the time, for a 50/50 split between Euro and Gold. 
Could it be said that when this began (regarding the USA), war was imminent? They say history doesn't repeat exactly, but it sure does play a similar tune! 

The old saying, “Black Markets are Free Markets that exist in times when the government does not approve of the Free Market,” may again be proving true. These events illustrat e how gold actually is the money of last resort, even at a government level. Recent sanctions include EU's accepting no further contracts and freezes by the US, IMF and EU of Iran’s ability to trade in gold. The element to note is that this is incredibly difficult to enforce.

Gold has been smuggled across borders for centuries as payment for strategically important items, securing armies, arms, and for serving as bedrocks of monetary systems. Gold continues to resurface as money throughout history. You can transfer large quantities of capital completely outside the control of governments’ ability to stop it.

Sophisticated investors have learned that gold is therefore the ultimate form of wealth protection, because it is the only form of wealth that isn’t controllable.

2012 outlook by Jim Rogers

as I previously said, I like Jim for being realistic and true.

This is what he believes for 2012 and beyond.
In short: ECB (same as FED) will monetize the debt, which means printing more money.

Printing more money and flooding the M2 money supply will bring temporarily ease on the market, but remember those debts and its monetization, need to be serviced by paying interest on those.

• Who pays this interest? 

• Who will suffer from the inflation? 

• To whom are these interests payable? 

• Have you every asked the questions who owns the ECB, FED and other central banks around the world?

It is basically: kicking the can down the lane...till?
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Lost and found..

In France they keep finding gold...

kilos found on a train

found in an old cellar

... I wonder if all gold kept by individuals will be confiscated or nationalized again in case the Euro collapses, like the USD did in the 30'ies..
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"Happy" birthday Euro

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Whenever you buy gold or silver

Whenever buying gold or silver, make sure you have it (physical in your hand or your safe), not just some fancy looking paper!

Most of the ETF's or "gold bullion funds" being offered on the market today are "financially engineered tools" that have very little to do with actually owning the physical gold.
It is much like a "fiat currency" that is not backed by real gold but fancy paper being printed with no limit.

Much of these fiat currencies will fail - as well as the other derivatives engineered from it - when consumer confidence in them goes down. Much like the bonds being offered by the USA, EC and Japan Central bankers today.
Who wants to buy them?
The Chinese who have 3 trillion dollars "reserve" and not sure what to do with it when the USD continues to devaluate?




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What if there is no longer gold at Fort Knox?

Q:  IF there is no more gold in Fort Knox, then:

1/ where has it all gone?

2/ what else backs up the world reserve currency aka US$?
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Be prepared

This is from a BBC interview with Alessio Rastani:

Some of his quotes:

"Savings of millions will vanish"

"Goldman Sachs rules the world not the governments"

{ exactly what the first Governor of the Bank of England ( Sir Josiah Stamp ) also said. }

so, do you know HOW to prepare ?

---> Protect your ASSETS !

HOW ? .. feel free to ask me....
(hint: it is not bonds, paper instruments or any other ponzi or
investment sceme offered by governments, banks or insurance companies)



Note: Sir Josiah Stamp actually said this:

"Bankers own the earth. Take the earth away from them but leave them the power to create money and they will create enough money to buy back the earth"
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John Maynard Keynes, a British economist considered as the architect of our modern economic system, wrote in his own book "The Economic Consequences of the Peace, 1920":

"by a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of wealth of its citizens"

"there is no surer, no more subtle way to overcome the existing basis of society than to debauch its currency. It engages all the process of economic law that come down on the side of destruction and does it so in a manner that not one person in a million can recognize it."

I am not sure what you think of all this...but honestly it does not matter what you think, it matters how your respond to it.
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Why I am a fan of Jim Rogers

A few weeks ago I ran into Jim Rogers. I approached him while saying:" Jim, I am a fan of yours!"

We chatted for a while, he gave me his name card, and so...
let me tell you why I am a fan of Jim.

Though he is a billionaire fund manager, his trust is in real assets and not in paper assets.

Check below some of his recent interviewclips and what he says about protecting your family's assets.

Please do not play the "Monopoly" game much longer, but get in real ownership assets:

land, farming land, houses, orphanages, schools, other real estate (all paid for of course!), silver ( bargain deal now!) and gold (believe me it will never be cheap to buy, that's why it has been the only monetary asset that has never lost its value for the last 5,000 years.
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Jim: "I own gold and silver, not intend to sell it for ever and when it comes down, I buy even more at these prices.."
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Got silver and gold? What is holding you back?

The Case for your Personal Asset Protection

"Golden Rule": 30-50% of your cash should be in physical silver or gold, coins, bars...not paper.

The Real Story behind the crash of 2008

"Professor William Black, bank regulator, tells the real story behind the crash of 2008, and why it will happen again."
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... Part 2



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and make sure to watch Part 3: Quote from William Black: "The finance sector is a huge parasite, it transfers wealth from the poor to the wealthy."

http://www.youtube.com/watch?v=F_xdQyfNLnc&feature=channel
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Gold and Silver purchases made easy

Hedging your paper currency against inflation: best to buy pieces you can trade easily, like coins and PAMP bars.

Click on above banner which will lead you to TG Gold and try a purchase of a few pieces. It is really easy, secure and safe.

Any questions, please drop me an E-mail or comment.

Retirement: choice or must to keep working

http://news.xin.msn.com/en/singapore/article.aspx?cp-documentid=4244505

Some views on the above interview with MM Lee. (please read the article first...)

I like the approach of MM Lee, who keeps working, exercising, learning, travelling into his old age. However, he DOES not have to and as a statesman, his retirement, savings and portfolio will always keep him comfortably afloat. He DOES however, because he likes what he is doing, is well paid for it.

My own father retired at 57. Not because he wanted to but 27 year in the oil industry saved him enough golden eggs and it was a handshake he received.

I can see where MM Lee comes from. I respect his views BUT between the line, he is giving us all a warning about the social changes ahead of us. Today, most of the Americans have lost 40% of their retirement plan and investments due to the last "minor" currency crisis. Last year a Belgian Pm announced that in 2015 no funds would be available to pay the heavy retirement payouts. All over in Europe, retirement age is being pushed up as too many will age and no money is available. Take with it a massive inflation which is yet to come and most pension funds, public or private will vanish.

Conclusion: not because we want to but HAVE to work during our old age. It only pains me to see that 60-70 year old nannies and grandpas, who are exempted to baby sit their grand children, are working in Kopitiams and MacDonalds to clean and wipe the tables. Then, I think of my 84 year old Mum, enjoying her old age. She deserves it. I am happy she does not have to work in a local hamburger shop because she is a widow...

Thanks for your comments!

(PS. I have no pension plan, because 20 years ago I decided not to pay into a public fund as inflation and a few financial disasters will wipe out your wealth or when governments run into deep debts, like the PIGS countries now, and Greece...)

Good books to read in 2010

"A warned man, values 2" .. my Dad used to say..

So for the new decade, informing yourself with some basic truths will enable you to come out of this decade better than you finished the last one.

Recommendations:

Ron Paul

- his complete reading list

Norm Franz

- Biblical Economist

I will add some more titles soon.
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( I welcome my readers suggestions as well !! )
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Recession over ?

Not according Jim Rogers !
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He even encourages the interviewer to become a farmer! Well... we all got to eat and .. drink water so that is where money is going to be made and humanity going to be served.
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Gold Prices - increase or decrease on long term

When confronted with savvy investors on how far the Gold can go, when is it going to drop again or when is it going to peak, I can only say this:

Gold (and silver) is a monetary commodity.

Unlike other commodities, like rice, wheat or ore, it is scarce, it is being hoarded by Central Banks, investors, institutional investors and now rich and alike.

According to figures of the World Gold Council, there is not much mined every year. So, demand will always increase, but supplies are getting scarce.

Second: as long as Gold will be traded in USD ( a heavily inflationary paper instrument printed by the private bank: Federal Reserve ) or any other deflating currency, Gold's equivalent value will increase. Not Gold's intrinsic value!

Meaning: if the USD continues to go down ( as it will, because the FED is massively printing them as we speak ) people want more USD for the same amount of gold.

But of course, there is a real cost. The value of our currency goes down with every new dollar the FED prints and with every dollar of new deficit spending. But the politicians can all pretend inflation doesn't exist. When it shows up in our economy, they can lay the blame with "speculators", oil companies and George Sorros, Madof, Lehman etc....

The government can manipulate the dollar like this because it's not backed by gold. President Nixon "temporarily" cut the tie between the dollar and gold in August 1971. You can see the video here.

In it, Nixon promises the dollar won't be devalued - "your dollar will be worth just as much tomorrow as today"... ( we all know by now, this promise was just a plain lie! )

At the time, $35 would buy an ounce of gold. Today, it takes more than $1,100. That's a 97% decline in purchasing power.

It's fascinating how many people believe this won't happen again...

I'm not surprised gold is trading at $1,100. I'm surprised it's not trading for more than $5,000.!

Now, let's say gold hits 5,000USD/Oz. It only means the USD has lost 70% in its value compared to today when gold is at 1,160USD. So Gold is not becoming "more expensive" , it is the dollar ( or an alternative currency ) that is loosing its "stored" value.

It is up to you: you keep your wealth in "so-called-stored-value-fiat-currencies" or in ownership assets, such as gold, silver, land and real estate?