World Bank Whistleblower Confirms Planetary Evaporation of Paper Wealth

 

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Karen Hudes, former senior counsel to the World Bank turned whistleblower recently delivered a stunning and revealing interview on Bull Market Thinking regarding the western corporate power structures now crumbling before our very eyes.

Her testimony confirms what this writer has maintained on numerous occasions & further corroborated by brilliant economic minds like Jim Sinclair, Marc Faber & Gerald Celente; namely that we are long overdue for a complete reset of our debt-slave monetary system.  This phenomenon which will light the economic world on fire is discussed in more detail during my short article entitled “How Counterparty Risk Extends to All Asset Classes in End Times, Including “Money” Itself.”

The suggestion made by Karen Hudes is not a new one, but instead offers validation that we will, by default, return to the only de facto money in existence – our means of production and precious metals as a form of exchange. 

In this scenario all paper currencies in existence must re-balance according to that which exists in real 3 dimensional space.  This would mean a totally new valuation for everything relative to specific weights of precious metals.  What we will discover as time progresses is that the pricing mechanism of our current “market” is not in fact determined by natural supply/demand forces but instead an artificial algorithmic intelligence set on auto pilot as a means to enslave humanity.

As this malevolent “invisible hand” becomes paralyzed by its own inability to accurately manage the collective value perceptions of humanity, the pricing system we have currently will be whisked away by the unstoppable power of true market forces & the human race will then be invited to revalue all assets in lieu of this planetary Schumpeter’s gale, effectively seizing back our collective human right to finance.  The tacit admission of this basic economic fact from a former senior counsel to the World Bank is one of the best indications we have in 2013 that this will in fact happen, perhaps much sooner than later.

Source: Bull Market Thinking

 

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I had the opportunity yesterday to speak with one of the western world’s most courageous and astute women, Karen Hudes, Former Senior Counsel to the World Bank—now turned whistle-blower.

It was a powerful conversation, as Karen spent 20 years with the World Bank as an attorney and economist, before being “let-go” after reporting internal fraud and corruption.

During the interview Karen indicated that the world is rapidly changing, with western power structures breaking down, economic & political influence gravitating to BRICs nations, all amid a pending currency transition which will highly favor precious metals.

Starting out by discussing the shocking centralized power she witnessed while working at the World Bank, Karen explained that, “A study done by three [Swiss] systems analysts who used mathematical modeling [shows] how the [world's] 43,000 transnational corporations were being controlled through interlocking corporate directorates. There’s a group of 147 companies, most of them are financial institutions, and what they’ve done, is through the interlocking directorates, they control 40% of the net worth of these [43k] companies, and 60% of their earnings…so that group has been using the presidency of the World Bank as kind of a puppet to dominate the world—that’s [now] finished.”

A major shock to that centralized power base, according to Karen, was the recent move by BRICs nations leaders to bypass the World Bank for their financing needs, by establishing their own development bank. “As the BRICs [nations] economic power grows,” she explained, “they’re not going to be strangled anymore through the grabbing [of] their resources…So their decision to start their own development bank was their way of letting [world] governments know…that its time to end this corruption.” 

Major moves toward monetary independence are also being made by growing numbers of U.S. states, Karen added. She explained that, “The states are starting to have legislation recognizing gold and silver bullion as legal currency. This is [also] a very strong signal the states are sending to the federal government, that the time to get serious about ending the corruption in the financial system is now here.”

When asked her thoughts on what this all means for the world monetary system, Karen said, “What’s going to happen, is we’re going to have all the countries of the world, sit down and figure out what’s going to be the best, most orderly transition from the current system that we have, [which has] profound imbalance and unsustainable deficits…[this change] is going to happen as each country makes its preference known, because the system we have now is not transparent, and the biggest change [in the new system], is that there’s going to be transparency.”

That transparency may be found through a gold-backed currency system, Karen noted, as, “All of the countries of the world are going to allow precious metals to serve as currency, and this will be an underpinning for paper currency, [as] we’ll have both systems at the same time. This is my guess, as I mentioned—I am an economist.”

As a final comment speaking towards her difficult journey as a World Bank whistle-blower, Karen said, “I’ve been struggling now for years, to tell the American public what’s [been] going on. I haven’t gotten through, because this [financial] group has bought up the press and has been spreading disinformation systematically. That undermines the whole point of a democracy. How can voters vote without an informed opinion, without the information that they’re entitled too? So this strangle-hold on information is going to end in very short order.”
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This was a powerful interview conducted with a great American patriot and honorable world citizen. Karen is setting an example for the history books, and her interview is required listening for global thinkers and market students.

 

Jim Sinclair Calls Gold at $4,400 before taking over as currency for the Golden Age

Source: JS Mineset

Dear CIGAs,

The new normal in Gold, the “Comet Gold Resistance Movement,” is your ticket to a sound monetary system. This will be followed by a period of long-term industrial growth as the world has never seen based on ultimate money, forced by the actions of the market place, not a product of any numbered group, be it G20, or G anything.

Since there is no doubt at all that the price of gold is going to and through $3500 with unimaginable volatility, I once again would like to suggest as in all wars that when a battle has been lost, the rise of the Gold and Silver Resistance Force, a militia of sorts in the market.

The reason behind this suggestion is explained below as the economic axiom known as Gresham’s Law operating in the Central Banks of the BRICs whereby gold is being accumulated with a goal of 15% of the reserve balance. To create this reserve goal you can reduce the fiat reserves as well as increase the gold reserves. You can reduce your fiat reserves by long term contracts in dollars by parastatal accumulation of resources and the means of production. The goal of 15% of reserves are the currency gold, and gold’s ascent in the marketplace due to the effect of Gresham’s Law to an accepted currency form. This is something the West has no control over. All the West can do is to attempt to inflict outrageous volatility into gold thereby trying to make confidence in the price of gold hard for those that do not understand. I have started to suggest this movement in the video repeated at least 6 times here that states, “Gentlemen, prepare to defend yourselves.”

All you need to do every time the US Treasury and Fed seek to make the gold market outrageously volatile via their friends, the gold banks, is to do nothing. Consider the volatile gold market to be the lion in the following video CIGA Pat sent to us. You are the photographer. Accomplish in the market place what this wildlife photographer did in the field, and you will still have all your gold insurance when gold finally trades solidly at $4400. When gold breaks above $3500 and $4000, as it will do, the US Treasury and Fed via their friends and relatives at the Gold Banks will run gold from $3500 to $4990 and back again a few times before gold settles into the currency as described above at $4400 for the beginning of the greatest economic expansion the world has ever seen.

You must join my Comet Gold Resistance Movement, a golden militia armed with courage to do just one thing. Do nothing, stand still in positions in gold without ant debt, and ignore the enemy of fear within and gold banks without. The market made mad by the Gold Banks will approach your jewels, but you must be internally quiet.

There is a writer made famous in the gold community in their rare ability to feel the pain of another who wrote a now famous article while un-free titled, “Gold $5000.” He is now scaring his benefactors by calling for gold to return to a very long term uptrend line at lower prices. Should that occur, he is willing to sell you his system as a computer program for $20,000,000 US dollars. Knowingly or not, he is a tool of the Gold Bank’s banks to create unprecedented volatility in the gold price. Join my Comet New Normal Gold Resistance Movement, a true non violent but armed militia. This is the way to protect yourself and thereby get to the other side still holding the preeminent currency.

In two weeks I will have printed certificates signed for you representing membership in the Resistance, but without your name or other identification. There will be no meetings, no charges, not even expenses. When you are long your good gold companies, mining money, and your physical gold at a sound $4400, protected from the inflation we are already experiencing multiplied by a minimum of 25, you will know your Resistance membership and your mindset will have gotten you there.

You must have a brain to know and eyes to see in order to understand what the end game is. Know that you have a tool to fight back, which is explained in the following video. Stand emotionally and mentally silent doing absolutely nothing whatsoever as the Gold Banks play the Western egocentric dislike for gold’s final roll in the end game.When the lions are close, all you have to do is do nothing. This is the Constitution of the Comet’s Gold Resistance Movement.

 

Gresham’s Law, not international edict, will reform the monetary system. Gold’s role in money is moving towards officialdom not by edict, but by Gresham’s Law. The difference now is that this concept of Gresham’s Law inhabits central banks of the “Real New Normal,” the rise of the influence of the BRICS and is spreading worldwide.

From Wikipedia:Gresham’s law is an economic principle that states: “When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.” Note please that the US Treasury still holds firmly to the mad concept that their gold, if there is any not compromised, at $42. More…

Over 190 million paper ounces of Silver dumped within minutes of NFP release

Source: JS Mineset

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My Dear Friends,

There is much discussion this weekend of the following:

Almost 192 million ounces of paper Silver were ‘dumped’ on the market Friday within ten minutes upon the NFP release. This is the equivalent to one-quarter of the world’s annual physical Silver production. –CIGA RS.

Have you for a moment considered that 192 million ounces of silver were purchased on the market on Friday within 10 minutes?

Respectfully yours,

Jim

Jim Sinclair: ” ‘Soon all that is required is a change in spread management by the gold banks and you will have whatever price the gold banks want from $3,500 to $12,400.’”

Source: Arabian Money

‘Mr. Gold’ Jim Sinclair

‘Mr. Gold’ of the 1970s, Jim Sinclair, the one-time adviser to the Hunt Brothers who cornered the silver market then is flagging up an imminent change in the way the bullion banks manage their spreads, something he feels is inevitable from his own long experience of the business.

In his latest missive, Mr. Sinclair explains: ‘You must note how central banks are either buying or protecting their gold reserve positions now. This is total about face two years ago. There is another change coming which is a replacement monetary system and the need for some asset on central bank’s balance sheets to have positive value, especially in the USA. Soon all that is required is a change in spread management by the gold banks and you will have whatever price the gold banks want from $3,500 to $12,400.’

Spread management

Spread management is rather technical for non-industry specialists. This is the profit per ounce when gold is sold, and the bullion banks juice this profit by taking both long and short positions in the marketplace to improve their real profit.

What Mr. Sinclair foretells is an upcoming move by the bullion banks to dump their short positions and go fully long, remembering how it worked for him at the top of the 70s’ bull market. At that time he instructed his team: ‘Take every short off the spread making us naked long. This was when the gold price broke $400 the second time over, running like a bunny to $887.75.’

Right now the preoccupation in the bullion market is over a short-term correction, and the more alarming potential for a repeat of the 30 per cent price crash of 2008-9. Mr. Sinclair seems to be hinting that this will provide precisely the environment for the shedding of shorts and the creation of long-only positions in the market.

Golden truth

As he explains: ‘Here comes the ‘Golden Truth’. When the gold banks perceive that the gold market is about to go ballistic, just like any bull market does, they need only reverse the strategy in place from $248 called ‘The Weak Gold Policy’ in how they handle the 75 per cent risk-less spread. Now when gold falls you take off the short aside of the spread with gusto and let the long run.’

That would set gold up for a spectacular rebound. A bounce from say around $1,600 to $3,500 would indeed by very much like the top of the 70’s gold market. That said Mr. Sinclair is also on the record as stating that the ascent of the gold price would be far more permanent than it was then with gold becoming a part of the global currency system again.

Let’s give him the final word: ‘Soon all that is required is a change in spread management by the gold banks and you will have whatever price the gold banks want from $3,500 to $12,400.’