The Philosopher’s Stone (Gold) Versus Quantitative Easing
January 6, 2013 2 Comments
Solve et Coagula
“And the gold of that land is good: there is bdellium and the onyx stone.” Genesis 2:12
By: Jay
In recent months we’ve seen the international banking establishment make moves to hedge their bets against the smaller economies, with the intent of wiping up the last vestiges of so-called “sovereignty,” aiming at an eventual world basket currency, the SDR, and the patterned central baking model of a planned economy one sees in most of the world, replete with fiat currency and printing. Some nations, like China and Russia, would like to hedge their bets against the Anglo establishment by obtaining enough gold to perhaps have a rival to the secretly stashed gold the Anglo establishment likes. In fact, Alan Greenspan spoke to the CFR in 2010 about this very truth concerning the permanent validity of gold:
“I’m increasingly of the opinion that what is happening here is that there is a connection that is increasingly credible between the issue of the amount of government stimulus — and more, very explicitly, the size of the current deficit that exists, not over the long run, but just concurrently — and, indeed, I’d say between that and the level of capital investment in this country.”
And,
“Gold for reasons we don’t fully understand is still the ultimate means of payment. And five monies have no place to go because five — exchange rates of five currencies are a zero sum game. So if you begin to get an undermining of five currency values, you get the whole — the whole structure go down. But the relationship between the dollar and the euro can stable, and the Yen and the Swiss franc can stabilize.
But they could all go down simultaneously. And the question is relative to what? And I think that what we are seeing is this extraordinary rise in the price of gold.
Because gold — I’ve been trying to understand why gold has the fascination it has for generations. And I’ve come to the conclusion since — for example, in 1944, Germany could not import anything except with gold. And when we landed in North Africa during World War II, in order to bribe the various potentates around, we needed — only gold would do it.
In other words, it’s the only means of payment which is accepted without endorsing it. The question is why human beings are so attracted to that, I’ve struggled with for years. I don’t understand it. I’ve now accepted the fact that we do. (Laughter.) And once we — once you do that, then the question is, it’s the ultimate means of payment. And it is a signal that there is a problem with respect to currency markets globally. I don’t think it’s a serious problem unless you short gold. But it strikes me that it’s the canary in the coal mine to keep an eye on.” Read more of this post
