On Things Financial

The April, 2006 edition of The Bob Livingston Letter is now out and I find this publication quite interesting as it makes some rather thought-provoking comments concerning both health and wealth. On the wealth front, it alleges that we are now faced with two crises:

First Crisis: A New Iranian Oil Bourse in Euros. This means, if successful, that an oil bourse priced in Euros would allow all oil producers and all oil buyers to buy and sell in Euros without using the dollar. This translates to a very significant reduction in the importance of the dollar as an international reserve currency. This could bring on huge selling of the U.S. dollar and a collapse of the dollar on the currency markets against the Euro. The Iranian oil bourse was scheduled to open at the end of March, 2006.

Second Crisis: End of publication (by the Federal Reserve) of the M3 macro-economic numbers on March 23, 2006. Ceasing publication of the M3 monetary aggregates can only mean far less transparency on money in circulation and a blackout on the amount of new money being created.

Money printing is speeding up, so to keep the world from knowing how much, the Federal Reserve will just remove the indicator. One can only imagine the amount of new monkey money.

Printing press money is fertile ground for expanding world crisis. Crisis is excellent cover for national and international chicanery, and boy, do we have it!

We see bad inflation in the immediate future, but please keep in mind that inflation always leads to depression. The end of it all will be an inflationary collapse of the paper money factory with the high probability of a deflationary collapse in some sectors such as real estate and municipal bonds, in the very midst of hyperinflation.

Sooner or later as inflation skyrockets along with gold, we can expect physical coercion to impose a politicized fiat (paper) money on unwilling citizens. Whoever owns the paper money factory controls the system.

Paper money economies always crash in the end and their currencies end up worthless. At some point there will be a panic. Many will realize that the debt pyramid is collapsing. We see it beginning now. Most who see what's happening will not act. The herd instinct suggests that only a few will bail out in time; but the majority will act in panic, too late.

In hyperinflation there is actually a shortage of paper money. The paper money production cannot keep up with the prices. Now that we have electronic money, prices and inflation can go higher than the mind can imagine. The Fed is manipulating the Consumer Price Index and stopped (on March 23, 2006) publishing the money supply figures. Things are in place for huge inflation now. They think the people won't know if they just kill the indicators. This is really a phantasy world. Since the money creators own the mass media, it seems that they can make the people believe anything, more fiction than fact.

Be assured of one fact here: The official position against gold is smoke as far as the insiders are concerned. Those who are not brainwashed by their own propaganda are accumulating gold as fast as they can. They know to exchange their paper money for gold while gold is cheap and paper is evaporating.

No one knows how long confidence in the system will last. It could be a very short time in months or it could be several years.

It all depends on how long the money creators can manipulate the public mind to believe what they want the public to believe. Everyone should be prepared for financial crisis and the social breakdown that goes with it. It's like a fire extinguisher; you have to have it before the fire.


NOTE: this was quoted by permission of The Bob Livingston Letter, P.O. Box 3623, Hueytown, AL 35023. It is published monthly, 12 issues @$65.00 per year.

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