Sunday, August 30, 2009

Vital Signs and the “Fix”


Vital Signs and the “Fix”

Kal Gronvall, 321gold Ltd, Aug 28, 2009

As we approach the middle of the summer, 2009, it is of utmost importance to be able to slice deftly through the heavy propaganda fog that the government is pumping out through its mouthpiece the media. As Obama is optimistically predicting a miraculous recovery in the third quarter of this year, and promising, on top of that, to create 600,000 new jobs out of our current U. S. economic and financial graveyard, he is, in reality, “green shooting” us into the greatest disaster in our nation’s history, from which there will be no recovery.

Speaking of reality, and to illustrate my point about the media, years ago I read Michael Parenti’s book entitled Inventing Reality. The major premise of Parenti’s book was that the government, through the media, invents reality, while the real truth is never told. I remember a startling quote from the book that said it all. Parenti interviewed Walter Cronkite at the end of his career as a news commentator, and Walter Cronkite said, “In all my years as a news commentator I was never once, able to tell the truth, about anything.”

So what is the reality and the true condition of our country, and where are we headed? A brief, but succinct look at that reality is critical. When you go to the clinic for a physical or check up, the doctor examines your vital signs to determine your overall health: your blood pressure, your pulse, he takes a blood sample, checks your lungs, your eyes, your hearing and reflexes. In like manner, we need to keep our focus on the vital signs of our economy: unemployment, foreclosures, bankruptcies, consumer spending, Gross Domestic Product (GDP), the dollar, the banks, retail sales, residential and commercial real estate markets. All these are the real indicators or vital signs of how alive, or not alive, we are inside.

How are the U.S. vital signs doing now? Unemployment is currently at 9.5% and rising unabated, with 14.7 million Americans out of work, the highest number of unemployed since they started keeping records in 1948. Fully 29% of the 14.7 million have been out of work for the last six months with more jobs evaporating every day. The real unemployment number, called the U6, or Greater Unemployment Rate, issued by the Bureau of Labor Statistics, is much higher at 16.5%. That number includes not only people who have recently lost their jobs and are looking for work, but includes those who have run out of unemployment benefits and have stopped looking for a job because they could not find one. It also includes people who were forced to take a part-time job when they needed full time work.

The more people lose their jobs the more people lose their homes. Foreclosures are up 18% this year over last year and the number is growing unabated. The median home value dropped 19% in the first quarter of 2009, and home values are continuing to fall. The devastating sub-prime mortgage meltdown is almost over, but now the Alt-A mortgages (people with good jobs, good credit, good payment history), the prime mortgages (similar to Alt-A) and the Option ARMs (Adjustable Rate Mortgage) are starting to default, along with the commercial real estate market. These last four categories comprise two-thirds of the total meltdown that is still left to happen. According to the charts, the rest of this financial tsunami will total over $3.8 trillion and will peak in 2013. It is not an understatement to say that we will literally be buried way before then.

The government, however, has a plan to “fix it” before the end of 2009. Harry Schultz, an internationally acclaimed financial writer, in a recent newsletter, stated that he felt that the global elite are in the process of orchestrating a banking holiday in the U.S. in late August or early September, 2009. At that time they could either devalue the dollar drastically or switch from the dollar to another world currency. Schultz also postulated that the U.S. government has instructed many of their embassies around the world to buy huge amounts of currency from the particular country in which they are located, to allow them to function properly for a year or more. Perhaps something very ominous is going to happen to the dollar that the government doesn’t want to tell us.

To add further credence to the possibility of the dollar’s rapid, inevitable demise, I received a phone call last week Tuesday, June 30, 2009, from a man from California. What he told me I cannot completely verify, but what he said helped fit some of the pieces of the bigger puzzle together for me. As I have written about before, at the closed door session of Congress, March 13, 2008, they discussed the collapse of the U.S. economy and the banking system, civil war, martial law, the North American Union, and the issuing of the new currency, the Amero to replace the dollar.

As a little background about the phone call from the man from California, the man told me that he is in a gold buying group with people from around the world. Recently they have been buying gold from a gold mine in South Africa, about 1,000 kilos a week. The man who brokered the deal for the buying group is an international metals dealer who has been in the industry for over 30 years. In fact, he is so well known in international circles that he sits in on IMF (International Monetary Fund) meetings on a regular basis. At the end of 2007, right after an IMF meeting, this metals dealer reported to the buying group what was going to happen in the United States over the next two years. One of the primary topics at that IMF meeting was the global meltdown, and how it was going to affect the U.S. He stated that the U.S. was headed into an economic and financial meltdown so severe that there would be no way to salvage the economy or the dollar.

But the Fed has a plan to “fix it,” and it is not a warm fuzzy for us. First, the metals dealer said that the Fed was planning a slight-of-hand gold confiscation through gold buying parties. The ruse goes like this: in the beginning of 2008, you will see full-page ads in newspapers, magazines, TV ads, billboards, all promoting gold buying parties across the country. He said the IMF, along with the Fed and the other central banks in the world would run gold up to $1,000 an ounce, leave it there for a little while, and then knock it down a notch. The ads will say something like, “Sell your gold for cash. Gold is at an all time high. Now is the time to sell your gold, your jewelry, your rings, your pendants, anything gold you have; bring it in and get top dollar while gold is at an all time high.” Of course, selling gold is a hand-in-glove move now because of the bad economy when millions have lost their jobs and are strapped to pay bills. As I write this little narrative, these gold buying parties are still going on.

The Fed is dangling the “golden carrot” in front of these private people they have hired to hold the gold buying parties. According to this metals dealer, the Fed is paying these people $1,335 per ounce for the gold they buy at these parties. That is not a bad profit considering that gold is about $930 per ounce now. The Fed can’t lose. They exchange worthless paper for real money: gold. The Fed then melts down the gold and is stock piling it for their end of the year plan to “fix it.”

The man from California continued his story. He said that it is also the government’s intent to confiscate gold from the public in the forth quarter of 2009 through a call-in, very similar to what Roosevelt did in 1933. Once they have the rest of the gold from the public, in December, 2009, if we get that far, they plan to suddenly devalue the dollar by 50%. So, whatever used to cost one dollar will now cost two dollars. Once everyone is devastated with the dollar devaluation, they plan to switch over from the dollar to the Amero on January 1, 2010.

They plan an exchange rate from the dollar to the Amero will be one to one at first. But that won’t last long. Soon it will be two to one, three to one, four to one, and so on down the line. The Fed’s stock pile of gold which they have confiscated from the gullible public will then be used to provide a certain percent gold backing for the Amero. At that point, once they have all the gold in their possession they will let gold find its natural value in the market place, easily exceeding $2,500 per ounce in a short period of time.

As I mentioned before, I have no way to verify this information. But if you know our government as I know our government, and you are considering buying some gold and silver to preserve your wealth, you better do it before the government arrives with their “fix.” If you don’t act now, you might just find yourself one day soon, draped in flea-ridden rags, standing in a concentration camp soup line.

Kal Gronvall

321gold Ltd

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