Hitting The Reset Button On The Global Financial System

The more I turn on the mainstream news, the more I want to turn it off. Everyday, it feels more and more like Alice in Wonderland, because everyday, we're doing all the running we can do, just to stay in place. And the place where we're staying, grows darker by the hour. At the Commodity Futures Trading Commission hearings two weeks ago, we were told with a straight face that the London physical gold market is actually a paper market for gold. They just call it a physical market.

Stop right there and let the implications of that "language substitution" sink in for a moment. When bullion bank executives claim that their short positions in U.S. markets are offset with physical positions on the London market, what they are actually saying is that paper positions in the US are offset with paper positions in London. In other words, they are lying to your face, and they know it. The London gold market is leveraged, by their own admission, 100 to 1, paper to real gold. In other words, it's ALL paper. It's ALL leverage. There's virtually no real physical gold on the London market relative to the amount of trading that takes place. Bullion bank executives are relying on your interpretation of the word physical to actually mean physical, hold in your hand, gold bullion, instead of the phony paper certificates they have been using to exponentially prop up the dollar and other world currencies, while at the same time, smothering real gold with a paper blanket.

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The jig is up. The news is out. The (real) physical gold market will eventually overtake the (fake) paper gold market. And it could happen literally overnight. All the pieces are in place for a short squeeze of epic proportions. And when it occurs, it will be the equivalent of hitting the reset button on the global financial system. This will initiate the greatest overnight transfer of wealth the world has ever seen. It will be a transfer from everything dollar denominated to everything gold and silver denominated. If you haven't taken your position in gold shares and gold bullion before this occurs, you will never be able to catch up after it occurs. If you cannot accept the logic of this assertion, simply ask yourself: What will happen to the price of (real) physical gold when up to 100 claim checks are presented for every ounce of (real) physical gold that exists?

What will happen is the global financial system will change literally overnight. Future generations will look back on this event much like we look back and remember the world, before and after the great depression, before and after pearl harbor, before and after the Kennedy assassination, before and after 9/11. Future generations will look back at the coming collapse of the dollar, and all currencies throughout the world, as another watershed event in history that marks the end of one era and the beginning of another. Because at the end of the day, the price of gold is a universal constant, relative to the underlying currency in which it is measured. As the currencies lose value, gold buys more. It's really that simple.

Elizabeth Warren, Chair of the Congressional Oversight Panel, has identified 3000 community and regional banks that are classified as "risky" due to the coming collapse of the commercial real estate market. According to her panel, by the end of this year, half of all commercial real estate loans will be underwater. The banking system is getting dangerously close to being nationalized when the next financial event occurs. We've already nationalized, directly or indirectly, housing, healthcare and auto manufacturing. Banks are next.

Up to now it's always been a good idea to know your local bank president and board of directors. Going forward, it's going to be essential to know the president and board of your gold mining company. These executives will not just be mining gold or a commodity, they will be mining actual money. Because gold is money. Gold mining executives will, in many ways, be the new banking executives for the rest of this century. Because absent the dollar, gold is the only money that is accepted globally.