By Hwaa Irfan
In short banks can now trade in gold i.e. gold counts as money…
In December 2012 I wrote:
The fiat money system is not based upon the real wealth that is created by the 99%, but exploits the 99%. It is a system that is used to stand for capitalist demcracy, which in real terms affords the 1% to keep on doing what it is doing. The fiat money system is represented by what we hold in our hands everyday, and and even fight, beg, steal and kill for becuase for those without land to provide a self-sustainable way of life it is perceived to be the only way to survive, to live, and to build a future.
As the fiat system totters on the verge of collapse, we have all been confronted by the realities that we have created to support myths that we deem as truths from a monetary system that is corrupt in nature.
The fiat monetary system is not based on a real commodity, quite literally, an illusion unlike the gold standard. The irony is, this has never been hidden from us, becuase the fact that a currency can be upgraded or downgraded – depreciated is a clear example of having no real value! It is a creation, a creation that allows the 1% to keep on creating money out of real money, the real money that is a product of the real wealth produced by the 99%. It is this ability to creat pseudo-money that is the real cuase of the global economic and debt crisis becuase it has no limits in theory to the availability and access to credit. In real terms, the illusory bubble burst when debt can no longer expand, and therefore inevitably contracts. In real terms, the fiat monetary system that we have taken as a reality that has shaped all our lives only exists as a result of excessive public debt. For it to continue shaping our realities, the fiat monetary system needs real money that is real value that never depreciates, and that takes the form of silver and gold. For a government to pay its debts, it has to repay with real value, i.e. silver and gold.
Earlier this year, Bloomberg warned of a “rebalancing through currency evaluation.
In August 2012, the accounting rules for gold in bank vaults were changed.
Basically, for banks which could only count gold as 50% money can now count it at 100% . A memo from the Federal Reserve, U.S., FDIC, and Treasury Department states without reason or rhyme:
“In this NPR [notices of proposed rulemaking], the agencies propose to apply the following risk weights for exposures… 1) A zero percent risk weight to cash owned and held in all of a banking organization’s offices or in transit; gold bullion held in the banking organization’s own vaults, or held in another depository institution’s vaults on an allocated basis…”
This comes at a time, when The House of Representatives passed a bill proposed by Republican Ron Paul, the one that the Republican Party dropped for corrupt as they come Mitt Romney.
Over the past months the Federal Reserve faced its first audit by the Government Accountability Office in response to Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. An attempt to block the audit was made Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator by ‘amending the bill HR107.
The GOP audit found:
U.S$16,000,000,000,000.00 i.e. trillion had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments at 0% interest – how very halal! The Federal Reserve never even informed Congress. The top bailouts included:
- Citigroup: $2.5 trillion ($2,500,000,000,000)
- Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
- Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
- Bank of America: $1.344 trillion ($1,344,000,000,000)
- Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
- Bear Sterns: $853 billion ($853,000,000,000)
- Goldman Sachs: $814 billion ($814,000,000,000)
- Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
- JP Morgan Chase: $391 billion ($391,000,000,000)
- Deutsche Bank (Germany): $354 billion ($354,000,000,000)
- UBS (Switzerland): $287 billion ($287,000,000,000)
- Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
- Lehman Brothers: $183 billion ($183,000,000,000)
- Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
- BNP Paribas (France): $175 billion ($175,000,000,000)
The recent developments are amidst rumors that the Federal Reserve, U.S. intends to crash markets before launching QE3, which right now sound slike one huge risk. QE3 means round 3 of :
“Quantitative easing is a tool used by central banks as part of their monetary policy to stimulate the economy. Basically the government pumps money into the economy by buying bonds, treasury bills etc.”
“Banks Finally Allowed To Count Gold As 100% Money.” http://www.offthegridnews.com/2012/08/21/banks-finally-allowed-to-count-gold-as-100-money/
Bendery, J. “Federal Reserve Audit Bill Overwhelmingly Passes The House.” http://www.huffingtonpost.com/2012/07/25/federal-reserve-audit-bill_n_1702879.html
GAO. “The Federal Reserve System: Opportunities Exist toStrengthen Policiesand Processes forManaging Emergency Assistance.” http://www.scribd.com/doc/60553686/GAO-Fed-Investigation#outer_page_144