Thursday, January 6, 2011

How to short corruption ! By Mike Krieger


While many will say I am a perma bear and just see everything as half full, I cannot wait until the day that I can sell all of my precious metals and commodity exposure and start to invest in non-mining and commodity businesses and equities generally.  I have no doubt that this day will come but this is all a process and we are very, very far away from that day from a price perspective.  A large part of my intent in writing these notes is to catalyze the change so that it happens as quickly as possible.  The quicker we can change the guard within the elite class on Wall Street and Washington the quicker we can get on with human ingenuity.

Very early on I noticed that what Aldous Huxley and others have called the “power elite” have almost total political and economic control of the system.  Remember the quote attributed to Mayer Rothschild over two hundred years ago that perfectly and simply states:  “Give me control of a nation's money and I care not who makes the laws.” Combine this quote with Lord Acton’s: “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men” and you can start to really put all the pieces together on how money power works and how it has taken the entire world hostage to its selfish ends.

The founding fathers of the United States of America were very well aware of this aspect of human nature when they framed the constitution which is why they made money gold and silver coin and also why they were obsessed with the idea of a division of powers between the executive, legislative and judicial branches.  It is also why states rights was such as big issue.  Unfortunately, what we have today is almost the worst case scenario.  While under a gold standard the politicians will cheat and print and then default (like the United States did in 1971) at least there is the legal framework of moral money during that period.  Under a completely fiat system where money can be created to infinity and that power is granted to a small group of unelected academics (the Fed) that answer to the banks...well you get what we have today.  A society where all the wealth has become concentrated in the hands of a very small, corrupt and unenlightened elite.  Once their greed has collapsed the system they then scramble to secure their positions using their political connections (see the period from 2008-today) and in the process destroy the middle class.  To protect themselves from the “people” they then try to put in a police state or a more authoritarian government.  This has happened over and over and over in history and is happening again right now.  This is pre-1789 France make no mistake about it.

So when the masses of a formerly free people figure out what has happened to them it is not pretty.  My whole hope is to avoid the masses turning violent.  There is no need for it.  The system has an Achilles heel and it is precious metals.  People must become educated on money power, how it works and then use the system against itself.  The entire power of the elite resides in fiat money creation.  Buy physical gold and silver and take delivery if you want to short corruption in 2011.  Take that away and they go away.  Enter human ingenuity.    

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