© Unknown
Most people thought big guy was rich and little old lady was poor. How wrong most people were.
Tiger's Tail
I watched a pretty forgettable movie the other night on TV. It was just so-so from a film-maker's perspective, but it had at least one redeeming quality from my blog-maker's perspective. It highlighted a point I had been thinking about.
The film is called "The Tiger's Tail", and the basic back story is identical twin brothers that were separated at birth when one was given up for adoption. The adopted brother is destitute when he discovers he has a twin who is a very public multi-millionaire businessman. So, filled with envy and anger over being given up as an infant, he hatches a plan to "steal" his brother's identity and life for just long enough to liquidate his assets and make off with the cash.
He is successful supplanting himself into his brother's life only to find that the vast wealth is built completely on debt. What filled him with envy on the surface is nothing but a giant, net-negative hole once he looks behind the curtain.
Here is an eight minute version of the movie that contains all the relevant scenes. We pick it up right at the point where the adopted twin first arrives at his brother's office, pretending to be him, ready to liquidate a few assets...
My apologies to John Boorman. I'm really looking forward to your remakes of The Wizard of Oz and Excalibur, and I loved Deliverance and Exorcist II: The Heretic. ;)
Marx had it backwards
Karl Marx predicted the breakdown of capitalism as a result of class struggle, followed by the establishment of a grand commune in which all the means of production would become publicly owned and used only for the public good. Sounds pretty nice, huh? "Imagine no possessions, I wonder if you can. No need for greed or hunger, A brotherhood of man. Imagine all the people, Sharing all the world..." ... and all that peace and harmony stuff.
Today we have many fine, intelligent and exacting analysts all looking at the same economic data and coming up with vastly different analyses of the present global financial crisis. What sets them all apart from each other is not intelligence, or math skills, or even popularity. What sets them apart is the foundational premises on which they operate.
© UnknownKarl Marx
Marx writes, "The history of all hitherto existing society is the history of class struggle." He got this part right! What he got wrong was his delineation of the classes.
Marx's classes were:
1. Labour (the proletariat or workers) - anyone who earns their livelihood by selling their labor and being paid a wage for their labor time. They have little choice but to work for capital, since they typically have no independent way to survive.
2. Capital (the bourgeoisie or capitalists) - anyone who gets their income not from labor as much as from the surplus value they appropriate from the workers who create wealth. The income of the capitalists, therefore, is based on their exploitation of the workers.
Simply put, Marx says it's the rich versus the poor. According to Marx the rich exploit the poor to get themselves a "labor-free income", which spawns a class struggle.
This is an attractive perspective because it requires only a cursory, superficial judgment to place someone into one of the two camps, the rich or the poor. If someone is driving a Bentley we immediately know which group they are in, right?
But within this simple, foundational premise lies an error so serious that within 130 years of Marx's death it caused somewhere between 85 million and 150 million deaths, depending on how you count them. That's an oddly large number of dead people for a commun-ity in which class struggle had been eliminated, isn't it? Peace and harmony my ar$e.
© UnknownInscription reads: "Workers Of All Lands Unite"
The two classes are not the Labour and the Capital, the rich and the poor, the proletariat and the bourgeoisie, or the workers and the elite. The two classes are the Debtors and the Savers. "The easy money camp" and "the hard money camp". History reveals the story of these two groups, over and over and over again. Always one is in power, and always the other one desires the power.
1. Debtors - "The easy money camp" likes to spend (and redistribute) money it did not earn, either by borrowing it, taxing the savers for it, or printing it. They like easy money because it is always and everywhere constantly inflating, easing the repayment of their debts.
2. Savers - "The hard money camp" likes to live within their means and save any excess for the future. They prefer hard money (or in some cases "harder" money) because it protects their savings and forces the debtors to work off their debts.
1789, the French Revolution, "the hard money camp" had been in power since 1720 when John Law's easy money collapsed, and starting in 1789 "the easy money camp" killed "the hard money camp" and took back the power. This is the way "the easy money camp", the Debtors, usually take power... by revolting against the hard repayment of their spending habits.
© Unknown
The American Revolution. Yes, the Constitution mandates hard money.
So just to repeat for clarity: Hard money regimes almost always end in bloodshed, when the easy money camp slaughters the hard money camp to avoid hard repayment terms. And easy money regimes almost always end in financial suffering when the easy money collapses. Here are a few more examples of "easy money collapses"...
Angola (1991-1999)
Argentina (1975-1991, 2001)
Austria (1921-1922)
Belarus (1994-2002)
Bolivia (1984-1986)
Brazil (1986-1994)
Bosnia-Herzegovina (1993)
Bulgaria (1991-1997)
Chile (1971-1973)
China (1939-1950)
Free City of Danzig (1923)
Ecuador (2000)
England (1560)
Greece (1944-1953)
Georgia (1995)
Germany (1923-1924, 1945-1948)
Greece (1944-1953)
Hungary (1922-1927, 1944-1946)
Israel (1979-1985)
Japan (1944-1948)
Krajina (1993)
Madagascar (2004)
Mexico (1993)
Mongolian Empire (13th and 14th Century AD)
Nicaragua (1987-1990)
Persian Empire (1294)
Peru (1984-1990)
Poland (1922-1924, 1990-1993)
Romania (2000-2005)
Ancient Rome (~270AD)
Russia (1921-1922, 1992-1994)
Taiwan (late-1940's)
Turkey (1990's)
Ukraine (1993-1995)
United States (1812-1814, 1861-1865)
Vietnam (1981-1988)
Yap (late 1800's)
Yugoslavia (1989-1994)
Zaire (1989-1996)
Zimbabwe (1999 - present)
Source
© Unknown
What does all this have to do with Freegold today? Well, with history, ANOTHER and FOA as our guides, we can see clearly what is coming. And with a correct view and a wide enough perspective, we can also see how some fine analysts operating under false premises are inducing the wrong conclusions.
Comment: In FOFOA's terminology, Freegold describes the rapid transfer of wealth that the world (this time) will experience when gold's commodity status is replaced as a true Store of Value (SOV) through a near instantaneous upward revaluation on the order of 20 to 50 times (current spot price in today's currencies). Concurrently, most paper wealth will burn as the current world financial system is reset and recapitalized. As an intended result of this reset, all subsequent trade imbalance will be settled in physical gold metal.Gold lending, leasing, and futures speculation will be disallowed.
ANOTHER and FOA (Friend of ANOTHER) are the handles of two individuals who posted on a gold forum (in the late 1990s to early 2000s) in attempts to warn of the coming reset and to help people to deprogram their thinking from concepts/beliefs derived from multiple generations of life in the confines of "the easy money camp" - debt-based fiat money system. It has been speculated that ANOTHER was actually a central bank insider with knowledge of long-range world financial plans and the future role of gold in the expected collapse and reset of the world financial system. FOFOA (Friend of Friend of ANOTHER) has carried on a deep analysis/commentary on these original posts since 2008 at his blog website, fofoa.blogspot.com. The collected posts of FOA and ANOTHER can also be found there.
Today we are living the end of the longest stretch of time in which "the easy money camp" has been in power both politically and monetarily. For a century now they have been easing our money more and more. And for those of you obsessed with the "emerging" NWO and One-World Currency... surprise! You've been living with it for 66 years now.
This latest push for central control and massive deficit spending by the "easy money camp" is simply the blow-off phase right before the long awaited collapse. And when easy money collapses, the transition is always financially painful but not necessarily bloody like the French Revolution, which was the end of the "hard money camp".
Now, what happens during ALL periods in history, whether "the hard money camp" is in charge or "the easy money camp" are running things... is a transfer of wealth. This is important! Because when the easy money guys are in power the transfer of wealth happens slowly and gradually, and wealth flows from the Savers to the Debtors. But when "easy money" collapses - and it ALWAYS collapses - there is a very RAPID transfer of wealth in the other direction, from the Debtors back to the Savers.
And this is where you need to take some action today. Because we have been living in a "easy money regime" for so long now, the delineation of the two camps is somewhat obscured. There are many many people who consider themselves Savers who are still sitting in the wrong camp, and will be on the WRONG side of the coming - extremely rapid - transfer of wealth.
Comment: There is little doubt that such a transfer of wealth (essentially, a financial system reset) will leave the vast majority of the "one percenters" in financial ruin - the same ruin that will be wrought on pensioners and savers that hold paper financial instruments to store their wealth. That little old lady with the box of gold coins in the basement will do quite well.
Today you need to be proactive if you want to get on the receiving end of this "blow back" transfer of wealth. You need to actively choose which camp you are in. And to do that, you need to recognize the two camps, or classes. Remember, this is a "class struggle".
So let's put a few modern groups and people into these two camps. I think it is fairly obvious that almost all modern "socialistic" governments and their politicians addicted to sovereign debt and deficit spending are in the debtor class. These are the easy money guys. And the bankers as a class are generally there too. As I said in a recent post:
The banker makes his largest profits during times in history when the liberal easy money crowd is in power both politically and monetarily. And he makes his most absurd profits when the debtor class allows its debt to go too far... to the very mathematical limit. But don't worry. This unstoppable avalanche will reduce banking and central banking to what it should be; a utility for the public good.
Comment: That may be true in the short term but I think even FOFOA might agree that - after a few short generations, the horror of what is about to happen will have been forgotten - and we will gradually be returned to a debt-based Ponzi by the same group of elites characterized by pathological greed, self-interest and power mania.
And this is because easy money debt must flow THROUGH the banking class as it is passed between the savers and the debtors.
But as individuals, not "banks", but individual bankers, we could say that some of them are Debtors while others are Savers. For example, would you agree that the Rothschild family, as a family unit, is in the "saver class" while their industry or profession (banking) as a whole falls in the "debtor class"? Or perhaps we could say that the banking institutions, as the hollow corporate shells that they are, are closely aligned with the debtor class.
© Unknown
You can tell who the "easy money guys" are because they will always argue that a currency devaluation is preferable to forced austerity. They will say, "the euro got it wrong because it doesn't allow for Greece to devalue." And in saying this, they put themselves firmly in the Debtor camp. They are saying that the "Argentine/Brazilian/Soviet/Zimbabwe workout" is preferable to what is happening in Greece today.
How about that Soviet "easy money collapse" in 1992? Who came out ahead? Most average people that thought they were savers lost everything. So did the Russian banks take over Russia? Or did a handful of "Oligarchs" emerge as multi-billionaires through the process and buy up anything in sight for pennies on the dollar? And which camp do you think these Oligarchs were in? The Debtors or the Savers? Curiously, one of them just bought the New Jersey Nets.
As I said earlier, almost all modern governments are in camp with the Debtors. And this includes the Russian government. So are the Oligarchs in the opposing camp as their beloved comrades in the corrupt government? Here is an interesting article:
Here's The Real Reason The Russian Oligarchs Are Buying Up Professional Sports Teams
By Henry Blodget
Business Insider
SNIP:
...we hear that some Russian oligarchs feel that, if they become highly visible owners of beloved sports franchises, the Kremlin will be less likely to take them out.
Yes, as in that kind of out.
Remember Alexander Litvinenko, the ex-Russian spy who got poisoned in London...
© UnknownRussian Oligarch Mikhail Prokhorov
The coming "blow back" hyper-rapid transfer of wealth is not something that necessarily requires moral judgments of good and evil. It is simply a fact of life today. Pick which side you want to be on in THIS particular transfer of wealth. By selling your debt-financed paper savings and buying physical gold today you are making the conscious CHOICE to join the camp of the true Savers.
Many people that consider themselves "savers" are precariously positioned right now. These people need to take active measures to get on the receiving end of this transfer of wealth to survive. Many, many, many average citizens amazingly still have this option, yet they don't even realize it. They need to get up and move over into the same camp as the Rothschilds and the Russian Oligarchs, and prepare to own the future. It's not a matter of good versus evil at this point, it is a matter of survival!
The easy money crowd has had a really, really long run in the sun this time. There's no need to feel bad for them. And all the last-ditch central control efforts we see today are simply the culmination of that run. But their influential position is completely dependent on the power afforded by the easy money debt machine that is now crumbling. Their "power generator" is out of gas. And it's not the kind of gas you can legislate or print.
But don't take my word for it. And certainly don't take financial advice from me! For that matter, don't take financial advice from ANYONE. Think it through yourself, quietly. Use your own head. This is the only path to peace of mind. You and only you will lose your wealth if you take the wrong advice. And this time, it doesn't take an MBA and a JD to understand the choices.
It is easy to watch the dollar losing its reserve privilege today. And it is also easy to see who will come out ahead when it happens. All else is noise. Choose your camp wisely.
Sincerely,
FOFOA
Comment: Deprogramming ourselves of concepts/beliefs resulting from generations of life in the "easy money camp" is not easy, and requires much thought and a little rewiring.