Wednesday, July 29, 2015

100th Anniversary of the US Occupation of Haiti. “City Bank along with French and German bankers destabilized Haiti”

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Lovinsky Pierre Antoine disappeared in US occupied Haiti on August 12, 2007. No one knows what happened to our human rights icon Lovinsky Pierre Antoine.
Two weeks before he was taken by empire and their agents, Lovinsky Pierre Antoine personally sent to the Ezili Dantò Network/Free Haiti Movement his July 28, 2007 essay to mark the 92nd anniversary of the terrorizing US occupation of Haiti that lasted for 19 years from 1915 to 1934.
Lovinsky Pierre Antoine is amongst the few national treasures of Haiti. He used his life and professional skills to give voice and a space of validation to the victims, especially to Haitian women, of both the first (1991) and second (2004) Bush regime changes/foreign interventions against Haiti these last twenty-four years.
Charlermagne Péralte was assassinated and his body nailed to a door by US Marines in Haiti
Today, July 28, 2015 marks the one hundredth anniversary of the US occupation in Haiti that aimed to re-enslaved Desalin’s children. We recall that to help finance US efforts in the first European World War, the U.S. by force-of-arms took complete control of Haiti’s finances and expropriated Haiti lands to grow sugar, coffee, banana, sisal and rubber for export.
Libète ou lanmò, endepandans ou Lanmò, sa se pawòl sakre kidwe sonnen nan zorèy chak Ayisyen tankou se yon kout loray, tankou yon kout lanbi ki fè nou rasanble epi soude yonn ak lòt.“–Janjak Desalin, Deklarasyon Endepandans Ayiti Premye Janvye 1804 Gonayiv, Ayiti
First, the private City Bank of New York bankers (now Citigroup), along with French and German bankers, destabilized Haiti by refusing to pay Haiti workers for work done on the foreign-financed Haiti railroad, et al…). Then these powerfully-connected City Bank of New York bankers, brought the US Marines to Haiti and used them, in the words of the US’s most decorated marine, as “high class muscle man for Big Business, for Wall Street and the bankers.”   Major General Smedley D. Butler, wrote that he“was a racketeer, a gangster for capitalism…I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in.” (See, War is a Racket by Smedley Butler.)
Besides taking over Haiti banking, deep-water ports and collecting Haiti custom receipts, the US marines carted out Haiti’s gold reserves and brought it to the National City Bank of New York’s vaults in Wall Street New York, never to be seen by Haitians, ever again. The money changers at National City Bank of New York (Citigroup) then proceeded to tie the Haitian gourd, not to our gold reserves which they straight up STOLE, but to the US dollar.  These bankers, primarily the National City Bank of New York, unused to Black independence, used the US military to secure a foothold in Haiti, manipulate its credit and capital and continues to do this to the present day.
100th Anniversary of the US occupation of Haiti in 1915
July 28, 2015 marks the 100th Anniversary of the US occupation of Haiti in 1915
The US Marines from the segregated South, not only carted off Haiti gold to National City Bank’s New York offices, but they were the high class muscle men there to safeguard the gang of foreign bankers’ lives. Just as today’s US/UN forces are the high class muscle men in Haiti protecting the same oppressive, racist and exploitative interests of the NGOs, the corporatocracy’s mining, oil and other interests; Paul Farmer/Bill Clinton charity industry and basically the same foreign bankers from 1915 still controlling Haiti banking and credit.
White supremacy’s muscle men and their economic hit men at USAID/US Embassy have even managed to use the current US occupation behind UN guns and NGO humanitarian imperialism to illegally tax the $2.8 billion in yearly Diaspora remittances (at $1.50 per transfer) to Haiti that’s the only real foreign aid to the people and to tax all Haiti phone calls to, from and within Haiti at an extra .05 cents a call. ( Where Does Haiti Fit in Citigroup’s Corporate History? http://goo.gl/kPYh6A .)
Citigroup in Haiti, 100 year of imperialist oppression
Citigroup in Haiti, 100 year of imperialist oppression
Back during the first invasion, Haiti was forced to renegotiate the 1825 French Independence debt at more usury interests rates against Haiti, while the money vultures (banksters) arbitrarily tied five Haitian gourd to one US dollar ($5 US dollar to one Haiti gourd). This extortion gave, their bogus, uncollateralized US dollar, more value than the previously gold-backed Haiti indigenous money. This, underlines and still undermines Haiti’s containment-in-poverty. Not to mention the fact that their Breton Woods financial institutions, would later, put international enslavement conditions in loan and trade agreements to force the former colonized nations to cut tariffs, not regulate capital export, privatize state assets and basically hollow-up the nation state apparatus to service the artificial legal entities (private Euro-US corporations) that these plantation minds set up for their white supremacist world thievery.
One hundred years ago in 1915, the US marines carted Haitians off to Cuba and the Dominican Republic to go work, as virtual slaves, on the sugar and banana plantations of US corporations. One hundred years ago today, the US instituted the corvee in Haiti, a chain gain system of force labor for those Haitians left in Haiti to build infrastructure for US export economy interests. One hundred years ago in 1915, the US marines from the Southern parts of the US, surrounded the Haiti parliament and at the point of the gun, dissolved parliament in order to re-write Haiti’s constitution to eliminate Dessalines’ Law.
“Never again shall colonist or European set foot on this soil as master or landowner. This shall henceforward be the foundation of our constitution.”–Dessalines’ Law
Franklin Delano Roosevelt who served as the Assistant Secretary of the U.S. Navy rewrote the Haitian constitution and took out Dessalines’ Article 12 which forbid the whites from owning Haiti lands or from ruling in Haiti. (See, The Quiet Genocide in Haiti from FDR to Obama: How it’s wielded https://goo.gl/XlgBkQ)
The national colours shall be black and red” -Desalin’s Constitution, the First Haiti Constitution, 1805
Ayiti’s lands are sacred, a world heritage for freedom, paid for in Black blood after three hundred years of European barbaric forced labor, systemic white men raping Black people and enslaving them. We are the real land of the free and brave….. We-Haitians carry the scars metered out by all the white power countries, the French, the Spanish, the British, the German, the Dutch, the US and now, since 2004, even Canada. Haiti is the independence symbol for the Black world. Free Haitians carry on the global fight against the annihilation of the Black woman’s children on the island of Ayiti. We are a rallying point for success. The example white supremacy must ground out. Charlemagne Péralte paid our interminable price. ( See, Bandits or Patriots?: Documents from Charlemagne Péralte –http://historymatters.gmu.edu/d/4946/ .)
We shall never forget the US marines’ assassination and crucifixion of Charlemagne Péralte and slaughter of 15,000 Haiti prisoners at the current Caracol location that Bill and Hillary Clinton have taken from Haiti to give to a South Korean factory complex. The spirit of the US-slained Charlemagne Péralte and the others walk the halls at Caracol and the entire North where Haiti oil, and now deep water ports are taken by the Bigio family in Haiti and Vicini family in the Dominican destroying and dredging up our sea walls. We aren’t as asleep as the mass media is. We are the Haitians who shall never forget the Haiti men, like the lone Emmanuel Drèd Wilmè, slaughtered by 1,440 U.N. Troops, in Site Solèy on July 6, 2005. We remember the ONE Haiti army soldier who, when he saw the Marine invaders on July 28, 1915 stood in his post and fired back. His name was Pierre Sully, our eternal hero showing the Haiti way:liberty or death, Libète ou lanmò – Endepandans oswa lanmò.
During the first US occupation, Haitian presidents where selected through rigged elections, just like Michel Martelly was selected by the Obama State Department, with Cheryl Mills, Hillary Clinton at the State Department and the US-run OAS, handing Haitians back the result they wanted regardless of the facts. Just like back from 1915 to 1934, today’s elections are shams, to put in US puppets who will serve the domestic and international interests of the US-Euros, not Haiti.
Emmanuel Drèd Wilmè, was assassinated by 1400 US-supported forces in Haiti that pummeled 22,000 rounds of ammunition into the unarmed, sleeping Site Solèy community, at 3am, on July 6, 2005, killing countless Haitians, including Emmanuel Drèd Wilmè and his family. See, the Cite Soley Massacre Declassification Project
Emmanuel Drèd Wilmè (http://goo.gl/pwGjK3) was also a lone Black warrior to take up arms during the second direct US occupation behind UN uniforms that started in 2004 to present. We are the survivors left to tell this untold tale of American despotism, tyranny and imperialism in Haiti behind UN guns and uniforms and NGO fake white benevolence. To say the names of the 20,000 Haitians who were killed by US-supported forces in Haiti from 2004 to 2006. The one’s left behind to say the name Lovinsky Pierre Antoine, and share his essay on this day with all free Haitians. Lovinsky is not here to fight today, on this 100th anniversary of the US occupation. He was our colleague, one of Ezili Danto’s grassroots collaborator, a fellow soldier facing this permanent war against the Black woman’s children. He left the rest to all of us. Tande byen Ayisyen. (English speakers may read the Darren Ell’s interviews with Lovinsky Pierre Antoine, entitled “Sovereignty and Justice in Haiti,” Part 1, dated Feb. 18, 2007 (http://goo.gl/vDVnn1 ) and Part 2, March 4, 2007 -http://goo.gl/1FiyBw.)
Haitians, this was written for you, by Lovinsky, before the US/UN killed him. Lovinsky was the founder of Fondasyon Trant Septanm, the then leading Haiti human rights organization to represent the victims of the 1991 Bush Sr. regime change and 2004 Bush Jr. Haiti regime change and take over. They killed him or have him floating in their rendition ships at sea somewhere on planet earth’s oceans. If he’s still alive, we share his grief, the injustice, terror and unending suffering constantly being metered out by sick white minds running the entire planet as a great big prison battleship. If the US and its Haiti agents killed him outright, today on the 100th anniversary of the US invasion to destroy the one Black republic in the Western Hemisphere, we make time from the battle against white supremacy/racism to lift up Lovinsky’s indomitable spirit and these, his words.
The first piece is the Fondasyon Trant Septanm statement (in Kreyòl) on the 92nd anniversary of the US occupation of Haiti (found on our website, here -http://goo.gl/rSjqCE).  The second, you may find on our website (in French, here -http://goo.gl/cwnQGx ). It’s about UN Secretary General Ban Ki Moon’s visit to Haiti, written in July 31, 2007. Lovinsky Pierre Antoine was disappeared in US/UN occupied Haiti on August 12, 2007, just after writing these essays. Konen lambi a, sonnen lambi.
Jean Jacques Acaau and the Pikets are watching. Sonnen Lanbi.
Goman, the legendary leader of the Haiti maroons who fought and won the revolutionary War of Independence against the French, the Spanish and the British and who fought on after the mulatto Petion/Boyer forces killed the Black generals, including Janjak Desalin, Bwaron Tonèr, Kapwa Lamò, Henry Christophe, et al.. All these Haiti warriors, along with, patriots like Charlemagne Péralte, Benoit Batraville, Makandal, Goman, Grann Toya, Grann Guitonn, Defile, Sergeant Major Sanit Bélé, the Pikets, the Cacos have saved a space in the line of warriors going back to Lè Marasa, Lè Mò e lè Mistè for those conscious Haitians who reMEMBER our duty to the Ancestors, to ourselves and our legacy to live free or die. We reMEMBER, give our lifeforce to and understand we’re ONE body, ONE arm, ONE people calling up the Ancestral mother and fathers of Africa, the African spirits, these Ancient first peoples, original to planet earth that walk with Ayiti, our sacred highland, towards liberation from the UN criminals, US superpower terrorizers, NGO greedy opportunists and all theirNdòkiGinen poze.

If I die in police custody

“If I die in police custody, burn everything down, koupe tèt, boule kay. No building is worth more than my life. No white person’s life or sell-out kneegrow’s life is more important than my life. Koupe tèt, boule kay! If I die in police custody, it won’t be suicide. White supremacy murdered me. It will be because I had tried not to accept their torture and was doing my best to take a few terrorist down with me because they kept me in a cage, wouldn’t let make a phone call, put my bail too high for an ordinary Black woman to pay for switching lanes and would not stop the physical and psychological brutality. It will be self-defense, a human right I own. But there is no justice for the un-assimilated Black women and their children in America. And I mean the whole hemisphere. Like Malcom X says, if I got to give up my life, let it be even-steven. Black mothers are rising! Desalin says NO to white supremacy, torture and tyranny in Haiti, in the US, everywhere and in all its forms. I want to live. I want to live. I want to live FREE. If I die in police custody, say my name, say my name, the one I chose, not the colonial name I was given. Say Ezili Dantò, say my name. Give Ezili Dantò her tongue back.” — Ezili Dantò, HLLN/Free Haiti Movement, July 28, 2015, on the 100th anniversary of the US occupation of Haiti (Watch, Black mothers rising video: If I die in police custody, here. )

Proof That Lawlessness Rules US Financial Markets

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This article establishes that the price of gold and silver in the futures markets in which cash is the predominant means of settlement is inconsistent with the conditions of supply and demand in the actual physical or current market where physical bullion is bought and sold as opposed to transactions in uncovered paper claims to bullion in the futures markets. The supply of bullion in the futures markets is increased by printing uncovered contracts representing claims to gold. This artificial, indeed fraudulent, increase in the supply of paper bullion contracts drives down the price in the futures market despite high demand for bullion in the physical market and constrained supply. We will demonstrate with economic analysis and empirical evidence that the bear market in bullion is an artificial creation. 

The law of supply and demand is the basis of economics. Yet the price of gold and silver in the Comex futures market, where paper contracts representing 100 troy ounces of gold or 5,000 ounces of silver are traded, is inconsistent with the actual supply and demand conditions in the physical market for bullion. For four years the price of bullion has been falling in the futures market despite rising demand for possession of the physical metal and supply constraints.

We begin with a review of basics. The vertical axis measures price. The horizontal axis measures quantity. Demand curves slope down to the right, the quantity demanded increasing as price falls. Supply curves slope upward to the right, the quantity supplied rising with price. The intersection of supply with demand determines price. (Graph 1)

Supply and Demand Graph 1

A change in quantity demanded or in the quantity supplied refers to a movement along a given curve. A change in demand or a change in supply refers to a shift in the curves. For example, an increase in demand (a shift to the right of the demand curve) causes a movement along the supply curve (an increase in the quantity supplied).

Changes in income and changes in tastes or preferences toward an item can cause the demand curve to shift. For example, if people expect that their fiat currency is going to lose value, the demand for gold and silver would increase (a shift to the right).

Changes in technology and resources can cause the supply curve to shift. New gold discoveries and improvements in gold mining technology would cause the supply curve to shift to the right. Exhaustion of existing mines would cause a reduction in supply (a shift to the left).

What can cause the price of gold to fall? Two things: The demand for gold can fall, that is, the demand curve could shift to the left, intersecting the supply curve at a lower price. The fall in demand results in a reduction in the quantity supplied. A fall in demand means that people want less gold at every price. (Graph 2)

Supply and Demand Graph 2

Alternatively, supply could increase, that is, the supply curve could shift to the right, intersecting the demand curve at a lower price. The increase in supply results in an increase in the quantity demanded. An increase in supply means that more gold is available at every price. (Graph 3)

Supply and Demand Graph 3

To summarize: a decline in the price of gold can be caused by a decline in the demand for gold or by an increase in the supply of gold.

A decline in demand or an increase in supply is not what we are observing in the gold and silver physical markets. The price of bullion in the futures market has been falling as demand for physical bullion increases and supply experiences constraints. What we are seeing in the physical market indicates a rising price. Yet in the futures market in which almost all contracts are settled in cash and not with bullion deliveries, the price is falling.

For example, on July 7, 2015, the U.S. Mint said that due to a “significant” increase in demand, it had sold out of Silver Eagles (one ounce silver coin) and was suspending sales until some time in August. The premiums on the coins (the price of the coin above the price of the silver) rose, but the spot price of silver fell 7 percent to its lowest level of the year (as of July 7).

This is the second time in 9 months that the U.S. Mint could not keep up with market demand and had to suspend sales. During the first 5 months of 2015, the U.S. Mint had to ration sales of Silver Eagles. According to Reuters, since 2013 the U.S. Mint has had to ration silver coin sales for 18 months. In 2013 the Royal Canadian Mint announced the rationing of its Silver Maple Leaf coins: “We are carefully managing supply in the face of very high demand. . . . Coming off strong sales volumes in December 2012, demand to date remains very strong for our Silver Maple Leaf and Gold Maple Leaf bullion coins.” During this entire period when mints could not keep up with demand for coins, the price of silver consistently fell on the Comex futures market. On July 24, 2015 the price of gold in the futures market fell to its lowest level in 5 years despite an increase in the demand for gold in the physical market. On that day U.S. Mint sales of Gold Eagles (one ounce gold coin) were the highest in more than two years, yet the price of gold fell in the futures market.

How can this be explained? The financial press says that the drop in precious metals prices unleashed a surge in global demand for coins. This explanation is nonsensical to an economist. Price is not a determinant of demand but of quantity demanded. A lower price does not shift the demand curve. Moreover, if demand increases, price goes up, not down.

Perhaps what the financial press means is that the lower price resulted in an increase in the quantity demanded. If so, what caused the lower price? In economic analysis, the answer would have to be an increase in supply, either new supplies from new discoveries and new mines or mining technology advances that lower the cost of producing bullion.

There are no reports of any such supply increasing developments. To the contrary, the lower prices of bullion have been causing reductions in mining output as falling prices make existing operations unprofitable.

There are abundant other signs of high demand for bullion, yet the prices continue their four-year decline on the Comex. Even as massive uncovered shorts (sales of gold contracts that are not covered by physical bullion) on the bullion futures market are driving down price, strong demand for physical bullion has been depleting the holdings of GLD, the largest exchange traded gold fund. Since February 27, 2015, the authorized bullion banks (principally JPMorganChase, HSBC, and Scotia) have removed 10 percent of GLD’s gold holdings. Similarly, strong demand in China and India has resulted in a 19% increase of purchases from the Shanghai Gold Exchange, a physical bullion market, during the first quarter of 2015. Through the week ending July 10, 2015, purchases from the Shanghai Gold Exchange alone are occurring at an annualized rate approximately equal to the annual supply of global mining output.

India’s silver imports for the first four months of 2015 are 30% higher than 2014. In the first quarter of 2015 Canadian Silver Maple Leaf sales increased 8.5% compared to sales for the same period of 2014. Sales of Gold Eagles in June, 2015, were more than triple the sales for May. During the first 10 days of July, Gold Eagles sales were 2.5 times greater than during the first 10 days of June.

Clearly the demand for physical metal is very high, and the ability to meet this demand is constrained. Yet, the prices of bullion in the futures market have consistently fallen during this entire period. The only possible explanation is manipulation.

Precious metal prices are determined in the futures market, where paper contracts representing bullion are settled in cash, not in markets where the actual metals are bought and sold. As the Comex is predominantly a cash settlement market, there is little risk in uncovered contracts (an uncovered contract is a promise to deliver gold that the seller of the contract does not possess). This means that it is easy to increase the supply of gold in the futures market where price is established simply by printing uncovered (naked) contracts. Selling naked shorts is a way to artificially increase the supply of bullion in the futures market where price is determined. The supply of paper contracts representing gold increases, but not the supply of physical bullion.

As we have documented on a number of occasions (see, for example, http://www.paulcraigroberts.org/2014/12/22/lawless-manipulation-bullion-markets-public-authorities-paul-craig-roberts-dave-kranzler/ [1] ), the prices of bullion are being systematically driven down by the sudden appearance and sale during thinly traded times of day and night of uncovered future contracts representing massive amounts of bullion. In the space of a few minutes or less massive amounts of gold and silver shorts are dumped into the Comex market, dramatically increasing the supply of paper claims to bullion. If purchasers of these shorts stood for delivery, the Comex would fail. Comex bullion futures are used for speculation and by hedge funds to manage the risk/return characteristics of metrics like the Sharpe Ratio. The hedge funds are concerned with indexing the price of gold and silver and not with the rate of return performance of their bullion contracts.

A rational speculator faced with strong demand for bullion and constrained supply would not short the market. Moreover, no rational actor who wished to unwind a large gold position would dump the entirety of his position on the market all at once. What then explains the massive naked shorts that are hurled into the market during thinly traded times?

The bullion banks are the primary market-makers in bullion futures. They are also clearing members of the Comex, which gives them access to data such as the positions of the hedge funds and the prices at which stop-loss orders are triggered. They time their sales of uncovered shorts to trigger stop-loss sales and then cover their short sales by purchasing contracts at the price that they have forced down, pocketing the profits from the manipulation

The manipulation is obvious. The question is why do the authorities tolerate it?

Perhaps the answer is that a free gold market serves both to protect against the loss of a fiat currency’s purchasing power from exchange rate decline and inflation and as a warning that destabilizing systemic events are on the horizon. The current round of on-going massive short sales compressed into a few minutes during thinly traded periods began after gold hit $1,900 per ounce in response to the build-up of troubled debt and the Federal Reserve’s policy of Quantitative Easing. Washington’s power is heavily dependent on the role of the dollar as world reserve currency. The rising dollar price of gold indicated rising discomfort with the dollar. Whereas the dollar’s exchange value is carefully managed with help from the Japanese and European central banks, the supply of such help is not unlimited. If gold kept moving up, exchange rate weakness was likely to show up in the dollar, thus forcing the Fed off its policy of using QE to rescue the “banks too big to fail.”

The bullion banks’ attack on gold is being augmented with a spate of stories in the financial media denying any usefulness of gold. On July 17 the Wall Street Journal declared that honesty about gold requires recognition that gold is nothing but a pet rock. Other commentators declare gold to be in a bear market despite the strong demand for physical metal and supply constraints, and some influential party is determined that gold not be regarded as money.

Why a sudden spate of claims that gold is not money? Gold is considered a part of the United States’ official monetary reserves, which is also the case for central banks and the IMF. The IMF accepts gold as repayment for credit extended. The US Treasury’s Office of the Comptroller of the Currency classifies gold as a currency, as can be seen in the OCC’s latest quarterly report on bank derivatives activities in which the OCC places gold futures in the foreign exchange derivatives classification.

The manipulation of the gold price by injecting large quantities of freshly printed uncovered contracts into the Comex market is an empirical fact. The sudden debunking of gold in the financial press is circumstantial evidence that a full-scale attack on gold’s function as a systemic warning signal is underway.

It is unlikely that regulatory authorities are unaware of the fraudulent manipulation of bullion prices. The fact that nothing is done about it is an indication of the lawlessness that prevails in US financial markets.

Gold’s Two Stories: Paper Markets Collapse… While The Retail Public Buys At A Record Pace

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We’ve seen some significant swings in precious metals over the last several years and if we are to believe the paper spot prices and recent value of mining shares, one would think that gold and silver are on their last leg. Last weekend precious metals took a massive hit to the downside, sending shock waves throughout the industry. But was the move really representative of what’s happening in precious metals markets around the world? Or, is there an effort by large financial institutions to keep prices suppressed? In an open letter to the Commodity Futures Trading Commission First Mining Finance CEO Keith Neumeyer argues that real producers and consumers don’t appear to be represented by the purported billion dollar moves on paper trading exchanges.
With China recently revealing that they have added some 600 tons of gold to their stockpiles and the U.S. mint having suspended sales of Silver Eagles due to extremely high demand in early July, how is it possible that prices are crashing?

As noted in Mike Gleason’s Weekly Market Wrap at Money Metals Exchange, while it appears that gold is currently one of the world’s most hated assets, the retail public continues to buy at a record pace:

The paper market is telling one story. But the actual physical bullion market is telling quite another.

The U.S. Mint has sold over 100,000 ounces of American Eagle gold coins so far in July. That’s the highest monthly demand volume registered since April 2013. And that’s just as of this week. There’s still another week left to go before the final sales tally for Gold Eagles comes in for the month of July. It could be one for the record books with 109,000 1-ounce Gold Eagles sold — with bargain hunters purchasing 6% of the U.S. Mint’s production from Money Metals Exchange.

As for Silver Eagles, the U.S. Mint has given up on trying to keep up with demand. After brisk sales during the first week of July, Mint officials suspended deliveries of Silver Eagles to dealers. Sales of the popular coins are set to resume next week. But we expect the Mint will be unable to get its act together and keep up with demand.

It’s not clear exactly who is suppressing precious metals or why, but it is quite apparent that prices on paper exchanges are completely disconnected from reality, as retail buyers are taking this opportunity to scoop up gold and silver at prices that are 50% or more off their highs.

But what happens next? That, of course, is anybody’s guess, but considering current prices and movements within the context of a broader economic crisis, there is a precedent for what we have seen in recent years.
We need only look back to the recession of the 1970’s.

gold-chart-1970s
You’ll notice that gold saw some significant price movements, not dissimilar to what we’re experiencing today. There were several down swings of 25% or more within the broader gold bull market. Most notably, take a look at what happened from 1975 to 1976. Gold shot up to nearly $200 an ounce, only to be pounded just twelve months later by 50% to a price of just over $100 an ounce.

As the crisis accelerated in severity into the late 1970’s, complete with gas shortages, job losses and geopolitical tensions, we saw gold explode in value to a high of $850 by January of 1980.

We’re not necessarily suggesting that gold will follow the exact same pattern. But history does rhyme, and the world again finds itself in serious financial, economic, and monetary crisis. As we’ve noted before, gold is and always has been the historical asset of last resort for preserving wealth. Should the current crisis accelerate as we saw in the 1970’s, the value of gold will likely rise accordingly. We may not be looking at a 700% increase in price like we did from 1976 to 1980, but there is a distinct possibility that we will witness serious gains in real value as crisis and panic unfold.

You can’t eat gold and silver, of course. If crisis is coming we have always urged our readers to prepare themselves for disruption to credit-dependent commerce systems with reserves of food, emergency cash and other supplies. But having a physical asset with real monetary and barterable value in your possession is certainly an important strategic consideration going forward.

It’s been said that an ounce of gold could buy 350 loaves of bread in Biblical times. Today, an ounce of gold still buys about 350 loaves of bread. However you slice it, whether the system falls into a deflationary depression like the 1930’s or an inflationary recession like the 1970’s, gold will maintain its purchasing power.

Though past performance is not necessarily an indicator of future results, we have over 6,000 years of history backing gold’s legitimacy as a true mechanism of exchange.

Fear Rises As Financial Markets All Over The Planet Start To Crash

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Can you feel the panic in the air?  CNN Money’s Fear & Greed Index measures the amount of fear in the financial world on a scale from 0 to 100.  The closer it is to zero, the higher the level of fear.  Last Monday, the index was sitting at a reading of 36.  As I write this article, it has fallen to 7.  The financial turmoil which began last week is threatening to turn into an avalanche. On Sunday night, we witnessed the second largest one day stock market collapse in China ever, and this pushed stocks all over the planet into the red.  Meanwhile, the twin blades of an emerging market currency crisis and a commodity price crash are chewing up economies that are dependent on the export of natural resources all over the globe.  For a long time, I have been warning about what would happen in the second half of 2015, and now it is here.  The following is a summary of the financial carnage that we have seen over the past 24 hours…
-On Sunday night, the Shanghai Composite Index plunged 8.5 percent.  It was the largest one day stock market crash in China since 2007, and it was the second largest in history.  The Chinese government is promising to directly intervene in order to prevent Chinese stocks from going down even more.
-Over 1,500 stocks in China fell by their 10 percent daily maximum.  This list includes giants such as China Unicom, Bank of Communications and PetroChina.
-Ever since peaking in June, the Shanghai Composite Index has dropped by a total of 28 percent.
-Even Chinese stocks that are listed on U.S. stock exchanges are being absolutely hammered.  The following comes from USA Today
The 144 China-based stocks with primary listings on major U.S. exchanges have erased nearly $40 billion in paper wealthsince the Shanghai Composite index peaked on June 12. It’s an enormous destruction of wealth that in effects wipes out the market value of a company the size of cruise ship operator Carnival.
-The Chinese stock market crash pushed European stocks significantly lower on Monday…
The pan-European FTSEurofirst 300 provisionally closed 2.1 percent lower, while the Germany’s DAX and France’s CACclosed respectively 2.4 percent and 2.5 percent lower.
The U.K.’s benchmark FTSE outperformed its euro zone peers, but still closed unofficially down 1.0 percent.
-Overall, European stocks have been falling steadily since the beginning of last week.  To get an idea of how much damage has been done already, just check outthis chart.
-As I mentioned above, an emerging market currency crisis is causing havoc for economies all over the planet.  The following comes from an article that was published by the Telegraph
The currencies of Brazil, Mexico, South Africa and Turkey have all crashed to multi-year lows as investors flee emerging markets and commodity prices crumble.
The drastic moves came as fears of imminent monetary tightening by the US Federal Reserve combined with shockingly weak figures from China, which stoked fears that the country may be sliding into a deeper downturn and sent tremors through East Asia, Latin America and Africa.
-The government of Puerto Rico has announced that it does not have enough cash to make a scheduled debt payment of 169 million dollars on August 1st.  The Obama administration says that there are no plans in the works to bail out Puerto Rico.
-On Monday, the Dow was down another 127 points.  It was the fifth day in a row that the Dow and the S&P 500 have both declined.
-Overall, the Dow is now down more than 650 points since July 20th.
-480 stocks on the New York Stock Exchange have hit new 52-week lows.  Many analysts consider this to be a very, very ominous sign.
-I have repeatedly written about the danger of the commodity collapse that we are currently witnessing, and the Bloomberg Commodity Index fell another 1.22 percent on Monday to a fresh low of 92.1493.
-On Monday, the price of U.S. oil hit a 52-week low of $46.92.
-So far, the price of U.S. oil has fallen about 20 percent this month.
-Back in June 2014, the price of a barrel of West Texas Intermediate crude was above 107 dollars.  Since then, the price of U.S. oil has fallen an astounding 56 percent.
-Thanks in large part to the collapse in energy prices, junk bonds are cratering.  This is something that happened just before the financial crisis of 2008, and now it is happening again.  The following comes from Wolf Street
Among the bonds: Cliffs Natural Resources down 27.6%, SandBridge down 30%, Murray Energy down 21.2%, and Linn Energy down 22.3%, according to Bloomberg.
For example, Linn Energy 6.25% notes due in 2019 were trading at 78 cents on the dollar at the beginning of July and at 58 on Friday, according to LCD. There was bloodshed beyond energy, such as AK Steel’s 7.625% notes due in 2021. They were trading at 62 cents on the dollar, down 22% from the beginning of July.
“The performance is a disappointment to investors who purchased about $40 billion of junk-rated bonds from energy companies this year, thinking that the worst of the slump was over,” Bloomberg noted.
This is exactly what we would expect to see during the early stages of a financial crisis.
Of course global financial markets may bounce back somewhat tomorrow.  If you will remember, some of the largest one day gains in stock market history happened right in the middle of the stock market collapse of 2008.  So don’t get fooled by what happens on any one particular day.
With so much fear in the air, literally anything could happen in the weeks and months ahead of us.  One month ago, I issued a red alert for the last six months of this year.  I warned that a major financial crisis was imminent and that people needed to start protecting themselves immediately.
As I write this article on Monday evening, financial markets are already opening up over in Asia.  Japanese stocks are already down 251 points even though the market has only been open for about an hour over there.
We have entered a time when what is happening to global stock markets will once again be headline news.  We are right on the precipice of another great financial crisis, only this one is going to ultimately end up being much worse than the last one.
Now is the time.
Please get prepared while you still can.