Oil and gas for euro
simply because
the euro is evolving into a gold-euro

GATA is the Gold Anti-Trust Action Committee.

It was organised in January 1999 in the US of A to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities, says its website.
http://www.gata.org/about

On the top of GATA’s webpage in the bleu ribbon of your browser appears
“Exposing the long-term manipulation of the gold market”.
http://www.gata.org

As Alan Greenspan said more than 45 years ago:
http://www.polyconomics.com/searchbase/06-12-98.html
The world of antitrust is reminiscent of Alice’s Wonderland: everything seemingly is, yet apparently isn’t, simultaneously. It is a world in which competition is lauded as the basic axiom and guiding principle, yet “too much” competition is condemned as “cutthroat.” It is a world in which actions designed to limit competition are branded as criminal when taken by businessmen, yet praised as “enlightened” when initiated by the government. It is a world in which the law is so vague that businessmen have no way of knowing whether specific actions will be declared illegal until they hear the judge’s verdict — after the fact.

Antitrust law should thus be repealed.

In the meantime, if some intellectuals argue that antitrust laws are necessary,
one should assume that when they see violations, they get a kick.

Yesterday, Wednesday GMT+8, I repeated on this blog that
ONCE
the world will be allowed to know that
the past three decades of cheap Arabian oil
have been made possible by the flow of cheap gold
to the Saudi Arabia oil-central bank
THEN
most will start to understand what the gold-euro really means.
Oil and gas for euro
simply because the euro is evolving into a gold-euro
through the European Central Bank marking its gold reserves to market.

And I continued:
In the meantime, it seems that the prices on the gold market are being manipulated by “Maktari”, an international off-market gold trader, also known as the “Gold Hand”, who mainly works for Saudi clients (1) (2)
in order of course to provide this cheap oil to the oil Sheiks.

To repeat:
- GATA says on its website that:
it is “exposing the long-term manipulation of the gold market”
- I said yesterday that:
“the prices on the gold market are being manipulated by “Maktari.””

My statements were based on articles which have been published on Sunday 27 and Monday 28 April 2008.

GATA is SILENT on this issue.

Here are GATA’s Daily Dispatches
http://www.gata.org/taxonomy/term/2
and I can’t find it.

In related news, Reuters reported on Wednesday
that
Venezuela will not abandon the US dollar as a currency for oil sales, despite the Opec member’s trend toward asking for payments in euros for certain contracts (3)
and that
whereas in the past Iranian officials have said that oil remained priced in the US dollar but with actual payments carried out in other currencies,
an Iranian official was now quoted as saying that Iran is conducting ALL its crude trading in euro and yen, instead of the US dollar. (4)

Since Aristotle, the principle of non-contradiction (PNC) says that it is impossible to be and not to be at the same time and in the same respect.

Contrary to what many authors argue, this is a law of thought, not a law of reality. Thought is submitted to the principle. Reality is not. (5)

You see, there is order in the world.
That’s why the PNC is not, does not need to be, applicable to the real order.

Man can destroy that order when he acts.
Man is supposed to be a thinking animal who thinks before he acts.

In order to make sure that man does not destroy the real order when he acts,
the PNC wants to make sure that the thought on the basis of which man is supposed to act
does not contain a contradiction.

By (man’s thought) respecting the PNC, man maintains the real order in the world.

When man acts in violation of the PNC,
this violation destroys, i.e., does not maintain,
the order in the real world.

GATA says it wants a thorough application of the immoral antitrust laws to the gold market.

But when GATA realises that oil is being traded for gold
and that the sellers of oil have only the real value of gold in mind,
not the present US dollar-denominated value of gold,
GATA also realises that its immoral antitrust law activism could lead to the collapse of the US dollar.

GATA’s thought contains thus an inherent contradiction
in that the application of the immoral antitrust laws leads to the collapse of the US dollar
and that no right-minded US citizen or US organisation can wish or promote the fall of this piece of paper which,
since 15 August 1971 when US president Nixon broke the Bretton Woods Agreement,
has no (gold-) backing anymore.

GATA’s thought creates disorder in the real world.

Repeal antitrust law!

Repeal GATA!

In his column “What’s the US hullabaloo over Opec?”, Joseph A. Kechichian proposes in today’s Gulf News that Opec member-states extend an invitation to the US to join the Vienna-based organisation, offer to move the headquarters to an American city, and change its name into USOPEC to honour its newest associate so that Opec will cease to be perceived as a four-letter word because it will cease to exist.

And he concludes:
When opportunists make repulsive linkages, one cannot but shake one’s head, not in disbelief but in awe at their audacity. One is astounded at their deep-seated hatred, which denies anyone the right to prosper, or acquire the means to defend oneself. (6)

Oil and gas for euro
simply because the euro is evolving into a gold-euro
through the European Central Bank marking its gold reserves to market.

Ivo Cerckel
ivocerckel AT siquijor DOT ws

NOTES

(1)
International Gold Trader Denies Manipulating Price Of Gold
April 28, 2008 8:48 p.m. EST
http://www.allheadlinenews.com/articles/7010787989
Windsor Genova – AHN News Writer
London, UK (AHN) – An influential international gold trader known as the “Gold Hand” has denied Internet rumors that he and his billionaire clients are manipulating the price of gold in the world market.

(2)
Does ‘gold hand’ with his Saudi and UAE clients control world gold prices?
Published: 27 April 2008
http://www.bi-me.com/main.php?id=19581&t=1&c=33&cg=4
SNIP
INTERNATIONAL. Maktari is the so-called Gold Hand, the international off market gold trader, who many believe can control the price of gold along with his billionaire clients. Many have gone on the Internet with their fears that these enormously wealthy and ambitious traders are manipulating the market to the US$1,200 level, only to pull the market floor out from under gold later in 2008. Maktari comments candidly as he can on these perceptions of himself and his clients.
Maktari is the single name he uses. He lives discreetly in London and not much is known about the 31 year old gold trader except for two things. He has a very checkered past and in recent years he has brokered many major metric ton gold deals for wealthy Saudi and Dubai interests. Bankers in the know comment that Maktari is in on most large off market gold deals. In November of 2007 he entered into a US$12 billion three year gold purchasing agreement with a Saudi client. He also works in India and has let it be known that he is currently looking forward to working with Yemen and Russian clients. He plans to broadly expand, using his current business to advise and represent other clients who are new to the international gold market.

(3)
UPDATE 2-Venezuela says will not abandon dlr in oil sales
http://www.reuters.com/article/oilRpt/idUSN3053405620080430
CARACAS, April 30 (Reuters) – Venezuela will not abandon the dollar as a currency for oil sales, Energy Minister Rafael Ramirez said on Wednesday, despite the Opec member’s trend toward asking for payments in euros for certain contracts.

(4)
Iran conducts all crude trade in euro, yen -agency
Reuters – USA
<http://www.reuters.com/article/oilRpt/idUSBLA02024820080430>
TEHRAN, April 30 (Reuters) – Iran, the world’s fourth-largest oil producer, is conducting all its crude trading in euro and yen, instead of the U.S. dollar, an Iranian official was quoted as saying
+
In the past, Iranian officials have said that oil remained priced in the U.S. dollar but with actual payments carried out in other currencies.

(5)
Fernand Van Steenberghen, (F.-X. de Guibert, ed.), “Philosophie fondamentale” , Longueuil, Quebec, Editions du Preambule, 1989, footnote p. 296 :
Contrairement a ce qu’affirment beaucoup d’auteurs, ces principles [the PNC, the law of the excluded-middle and the law of identity] sont
des lois logiques ou des lois de pensee comme telle
ET NON des lois de l’ordre reel.

(6)
What’s the US hullabaloo over Opec?
By Joseph A. Kechichian, Special to Gulf News
Published: May 01, 2008, 00:30
http://www.gulf-news.com/opinion/columns/world/10209759.html

Manipulation of gold market,
Collapse of the dollar-regime,
Rise of the SCO

India introduced a series of measures on Tuesday to tame inflation and secure food supplies, including the second effort this month by the Reserve Bank of India to drain liquidity from the banking system. (1)

This is the second time in a fortnight that the central bank did this, in a further sign of anxiety about soaring inflation.
The move came as Manmohan Singh, prime minister, underscored the Congress-led coalition’s concern about inflation by accusing the developed world of failing to do enough to counter rising food and energy prices. (2)

ONCE
the world will be allowed to know that
the past three decades of cheap Arabian oil
have been made possible by the flow of cheap gold
to the Saudi Arabia oil-central bank
THEN
most will start to understand what the gold-euro really means.

Oil and GAS for euro
simply because the euro is evolving into a gold-euro
through the European Central Bank marking its gold reserves to market.

In the meantime, it seems that the prices on the  (Indian) gold market are being manipulated by “Maktari”, an international off-market gold trader , also known as the “Gold Hand”, who mainly works for Saudi clients (3) (4)
in order of course to provide this cheap oil to the oil sheiks.

India, Pakistan and Iran will finalise in 45 days all agreements for implementation of the long-delayed tri-nation gas pipeline project, Iranian President Mahmoud Ahmadinejad said on Tuesday night, says The Times of India (5)

By the same token, Ahmadinejad described the pipeline as the pipeline of peace and brotherhood between the nations, adds Monsters and Critics. (6)

In a related vein, Iran, India and Pakistan are also Observers of the Shanghai Cooperation Organisation (SCO). This grouping, led by China and Russia, is a formal entity of mutually supportive members that also involves specific projects within a broader geopolitical framework, writes the Malaysia Star this morning. (7)

Iran is moving to join the SCO, said the Russian news agency op 24 March 2008 (8)
and the SCO Chief welcomes Iran’s membership, said IranMania.com on 29 March 2008.(9)

Other areas including stability in Afghanistan, counter-terrorism and economic and strategic interests in Central Asia, as both countries are observers in SCO, were also discussed in the Singh-Ahmadinejad talks, adds Monsters and Critics. (6)

As soon as the dollar regime will collapse under its own weight,
the SCO will replace it
and
the prices on the gold market will no longer be manipulated.

Ivo Cerckel
ivocerckel AT siquijor DOT ws

NOTES

(1)
Indian central bank raises cash reserve ratio to fight inflation
Reuters
Published: April 29, 2008
http://www.iht.com/articles/2008/04/29/business/rupee.php

(2)
India steps up war on inflation
By Jo Johnson in New Delhi
Published: April 29 2008 08:48 | Last updated: April 29 2008 20:40
http://www.ft.com/cms/s/5b0fce7c-15bf-11dd-880a-0000779fd2ac,s01=1.html

(3)
International Gold Trader Denies Manipulating Price Of Gold
April 28, 2008 8:48 p.m. EST
http://www.allheadlinenews.com/articles/7010787989
Windsor Genova – AHN News Writer
London, UK (AHN) – An influential international gold trader known as the “Gold Hand” has denied Internet rumors that he and his billionaire clients are manipulating the price of gold in the world market.

(4)
Does ‘gold hand’ with his Saudi and UAE clients control world gold prices?
http://www.bi-me.com/main.php?id=19581&t=1&c=33&cg=4
SNIP
INTERNATIONAL. Maktari is the so-called Gold Hand, the international off market gold trader, who many believe can control the price of gold along with his billionaire clients. Many have gone on the Internet with their fears that these enormously wealthy and ambitious traders are manipulating the market to the US$1,200 level, only to pull the market floor out from under gold later in 2008. Maktari comments candidly as he can on these perceptions of himself and his clients.
Maktari is the single name he uses. He lives discreetly in London and not much is known about the 31 year old gold trader except for two things. He has a very checkered past and in recent years he has brokered many major metric ton gold deals for wealthy Saudi and Dubai interests. Bankers in the know comment that Maktari is in on most large off market gold deals. In November of 2007 he entered into a US$12 billion three year gold purchasing agreement with a Saudi client. He also works in INDIA and has let it be known that he is currently looking forward to working with Yemen and Russian clients. He plans to broadly expand, using his current business to advise and represent other clients who are new to the international gold market.

(5)
Gas pipeline to be finalised in 45 days: Iran
29 Apr 2008, 2315 hrs IST , PTI
http://timesofindia.indiatimes.com/Gas_pipeline_to_be_finalised_in_45_days_Iran/articleshow/2996492.cms

(6)
Iran, India to finalize 7.5 billion dollar pipeline soon (Roundup)
Apr 29, 2008, 18:53 GMT
http://news.monstersandcritics.com/middleeast/news/article_1402615.php/Iran_India_to_finalize_7.5_billion_dollar_pipeline_soon__Roundup_

(7)
Wednesday April 30, 2008
Iranian diplomacy advances in Asia
MIDWEEK
By BUNN NAGARA
http://thestar.com.my/columnists/story.asp?file=/2008/4/30/columnists/midweek/21104504&sec=midweek

(8)
Iran moves to join Shanghai Cooperation Organization
12:42 | 24/ 03/ 2008
http://www.en.rian.ru/world/20080324/102052243.html

(9)
SCO Chief welcomes Iran’s membership
Saturday, March 29, 2008 – ?2005 IranMania.com
http://www.iranmania.com/News/ArticleView/Default.asp?NewsCode=58722&NewsKind=Current%20Affairs
LONDON, March 29 (IranMania) – Secretary-General of the Shanghai Cooperation Organization Bolat Nurgaliyev on Thursday welcomed Iran’s bid for membership in the Organization.
“Iran’s claim for the Shanghai Cooperation Organization full membership will not bring any negative moments in relations with the regional and international organizations,” Nurgaliyev said.
Nurgaliyev said Iran’s official claim was received in accordance with regulations of the SCO Charter.
According to the Secretary-General, since 2005 Iran has held the observer’s position in the Organization, equally with India, Pakistan and Mongolia.
Along with this, these states participate in the work of structural departments of the Shanghai Cooperation Organization, he added.
“The SCO is not a military and political alliance and all the speculations that the organization resists the existing military and political groups are quite groundless. The military training conducted by the member countries have anti-terrorist character. We tend to cooperate with the international structures and regional organizations which have interests in Eurasia,” Nurgaliyev noted.

US Fed To Blame for Global Food Crisis
Apr 26, 2008 – 03:09 PM

By: Mike_Whitney
http://www.marketoracle.co.uk/Article4486.html

SNIP
The US has been gaming the system for decades; sucking up two-thirds of the world’s capital to expand its cache of Cadillac Escalades and flat-screen TVs; giving nothing back in return except mortgage-backed junk, cluster bombs, and crummy green paper. Nothing changes; it only gets worse. But this is different. The world is now facing the very real prospect of “completely avoidable” famine because twelve doddering old banksters at the Federal Reserve would rather bailout their sketchy friends and preserve their spot at the top of the economic food-chain then save the lives of  starving women and children. Bernanke now has an opportunity to do more damage than Bush with one swipe of the pen. If he cut rates; the dollar will fall, commodities will spike, and people will starve. It’s as simple as that.

Saudi King Abdullah drops quiet bombshell; U.S. media sleep through it
Published on 21 Apr 2008 by ASPO-USA
http://www.energybulletin.net/43048.html
SNIP
On April 13, Reuters reported the following from Riyadh:
Saudi Arabia’s King Abdullah said he had ordered some new oil discoveries left untapped to preserve oil wealth in the world’s top exporter for future generations…
“When there were some new finds, I told them, ‘no, leave it in the ground, with grace from god, our children need it’,” King Abdullah said…
Saudi production capacity stands at around 11.3 million bpd, and is scheduled to rise to 12.5 million bpd next year.
UNSNIP

ONCE
the world will be allowed to know that
the past three decades of cheap Arabian oil
have been made possible by the flow of cheap gold
to the Saudi Arabia oil-central bank
THEN
most will start to understand what the gold-euro really means.

Oil and gas for euro
simply because the euro is evolving into a gold-euro
through the European Central Bank marking its gold reserves to market.

The Real World: Putin in Libya
Published: April 18, 2008
http://www.metimes.com/Politics/2008/04/18/the_real_world_putin_in_libya/2760/
SNIP
Reportedly, Gadhafi told Putin that he favors the idea of a gas OPEC, a notion that Russia appears to share with Iran and Venezuela, and which one day may do to the liquefied natural gas (LNG) market what OPEC has done to oil. Furthermore, the two leaders discussed cooperation in the field of nuclear energy. Policy makers in Washington are fuming and biting their nails – “bad Vlad” is apparently outfoxing them yet again.

OPEC President is in Kuwait
from where he will preside over OPEC’s extraordinary meeting in Rome by video-conference this week

Algerian President Abdulaziz Bouteflika and the accompanying delegation arrived in Kuwait on Saturday at the start of a three-day official visit to Kuwait during which he will hold talks with His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah. (1)

85 percent of Algeria’s imports come from euroland,
but its oil is being sold for worthless dollars.

Hence,
Algeria had last month to borrow 15 million euros from Belgium. (2)

If Algeria’s oil revenues had been priced in euro, the loan would not have been necessary.

In Algeria’s foreign reserves, the euro rate in the foreign exchange holdings was increased last month. (3)

What are we waiting for to price oil in euro?

For OPEC President Chakib Khelil, who is also Algeria’s Minister of Mines and Energy, and is accompanying the Algerian President,
the falling value of the US dollar is responsible for the surge in oil prices. “When the dollar loses one percent, the price of a barrel of oil rises by four dollars,” he said this week-end in Kuwait. (4)

OPEC Secretary-General Abdullah el al-Badri said on Sunday in Rome that
high oil prices haven nothing to do with supply and demand. (5)

They have everything to do with the US dollar.

Hence, Chakib Khelil did not hesitate to speak in the same sentence about oil and … gold. (6)

Will we see oil for gold?

Is that the reason why Chakib Khelil is not in Rome to attend the two energy conferences and OPEC’s extraordinary meeting which, the latter, he will preside by video-conference this week?

Ivo Cerckel

NOTES

(1)
The Algerian President is on 3-day visit to Kuwait

http://www.arabtimesonline.com/kuwaitnews/pagesdetails.asp?nid=15642&ccid=9

(2)
L’Algérie emprunte 4,5 millions d’euros auprès de la Belgique

http://bphouse.com/honest_money/2008/03/27/l%e2%80%99algerie-emprunte-45-millions-d%e2%80%99euros-aupres-de-la-belgique/

(3)
After some oil producers switch to Euro when sealing oil deals -
27 Bloc’s single currency increased up 55% in foreign exchange holdings
Thursday 27 March 2008
Economy

http://www.elkhabar.com/quotidienFrEn/?ida=102459&idc=112

After some oil producers switch to Euro when sealing oil deals
27 Bloc’s single currency increased up 55% in foreign exchange holdings
On the background of the weakening US dollar, against the European single currency, Algeria has increased the Euro rate in the foreign exchange holdings totalling $120 billions, by early current March, a source close to finances sector said.
Although the US dollar is still the reference currency for all trade deals, including oil and gas, as well as in the key stock markets trading worldwide, numerous oil producing countries, such as Venezuela, which has decided recently to adopt the euro when sealing oil deals. Such a decision has been taken after the US dollar underscored its unprecedented lowest level.
In this context, the Algerian foreign exchange holdings are valued at $120 billions, or 55% in euro, and 40% in US dollar, while 5% in other currencies. This step is aiming at securing a minimum level of earnings, however a sizable foreign exchange holdings not exceeding 4%, have been changed in bonds, and put in the US central bank, these bonds are secured from at-risk loans crisis hitting the US economy which is threaten by a recession. Also a rate has been changed to gold assets, so Algeria’s gold assets reaching more than 147 tons by early 2008, rank it as a key gold assets owner in Middle East, and North Africa.
24-03-2008
By Hafid Soualili / Translation Section

(4)
OPEC rejects raising output
Published Date: April 21, 2008

http://www.kuwaittimes.net/read_news.php?newsid=MTEzNzk1NjI5NA==

SNIP
Both Kuwait and Qatar’s oil ministers underlined OPEC’s common position that there are ample reserves of fuel available at the world’s pumps. OPEC Secretary General Abdullah Al-Badri reiterated Saturday that ministers from OPEC member states did not need to meet on the sidelines of the Rome energy forum, despite soaring prices. Khelil, on his part, said the falling VALUE OF THE US DOLLAR was responsible for the surge in oil prices. “When the dollar loses one percent, the price of a barrel of oil rises by four dollars,” he said.

(5)
OPEC chief: Oil prices would go higher
Last Updated(Beijing Time):2008-04-21 08:02

http://en.ce.cn/World/biz/200804/21/t20080421_15217071.shtml

SNIP
OPEC Secretary-General Abdullah el al-Badri said Sunday oil prices would likely go higher and that the group was ready to raise production if the price pressure was due to a shortage of supply — something he doubted.
OPEC Secretary-General Abdullah el al-Badri said Sunday oil prices would likely go higher.
“Oil prices, there is a COMMON UNDERSTANDING that has nothing to do with supply and demand,” al-Badri said on the sidelines of an energy conference in Rome.

(6)
Lundi 21 Avril 2008
Chakib Khelil invité, samedi soir, du forum de l’ENTV : Ville nouvelle de Hassi Messaoud : 6 milliards de dollars alloués au projet
23-03-2008 à 21:43 El MOUDJAHID

http://www.elmoudjahid.com/em/economie/3230.html

SNIP
Concernant la hausse continue des cours de pétrole dans les marchés internationaux, le ministre et président en exercice de l’OPEP a rappelé que cette hausse n’est pas liée à la faiblesse de la production, mais à la dévaluation du dollar, ce qui a permis aux spéculateurs d’investir dans le marché pétrolier, précisant que les investisseurs se tournent vers les marchés du pétrole et de l’or, lorsqu’ils ne réussissent pas à réaliser de bons résultats dans les autres marchés.

Iran’s Oil Minister, Gholam-Hossein Nozari, will attend two energy conferences in Rome to exchange ideas on energy issues, PressTV reported.
Rome is the venue for the 11th International Energy Forum (IEF) and the 3rd International Energy Business Forum (IEBF). The biennial Forum will take place from April 20 to 22 and is being hosted by the Italian Government with India and Mexico as co-hosts.

http://www.iranmania.com/News/ArticleView/Default.asp?NewsCode=59149&NewsKind=Current%20Affairs

Iran rejects calls for OPEC action over oil price
AFP – Wednesday, April 16 08:44 am

http://uk.news.yahoo.com/afp/20080416/twl-opec-energy-oil-output-price-iran-3cd7efd.html

Ivo:
By pricing oil in euros, Iran has taken the first step towards lowering oil prices, as Iranian oil is no longer being exchanged for a worthless piece of green paper, also known as the US dollar.
Iran has done that in order to hurt the US, the issuer of the US dollars in which other oil producers, except Venezuela, are pricing oil.
Why does Iran oppose other oil producers following its example and stopping pricing oil in US dollar?
Because that would lower oil prices?

Henry Hazlitt, 1946

http://jim.com/econ/chap01p1.html

The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.

Ivo:
OPEC must convene an extraordinary meeting in Rome
and at that meeting, it must follow Iran’s example
and ease global economic jitters by pricing oil in euro,

http://bphouse.com/honest_money/2008/03/08/opec-must-call-extraordinary-meeting-now/

Iran’s president Ahmadinejad having said on Saturday that as the dollar is only ”a handful of paper”, oil needs to discover its real value.

http://www.1010wins.com/topic/ap_news.php?story=AP/APTV/National/f/f/APFN-Iran-Oil

Ivo Cerckel
ivocerckel AT siquijor DOT ws

“Quousque tandem abutere, Catilina, patientia nostra?” is a Latin phrase. Its author is Marcus Tullius Cicero. He wrote it in his work called “Catilinaria 1”. Literally translated it means “How long, o Catiline, will you abuse our patience?” (1)

The European authorities are losing patience with the collapsing dollar
and want to intervene
in order to  weaken the euro,
thereby helping the European exporters whose margins are being trimmed down
and thereby also raising also the prospect of protectionism in Europe. (2)

As the European Central Bank (ECB) continues to stress that the level of uncertainty resulting from the turmoil in financial markets remains unusually high and tensions may last longer than initially expected (3)
and is leading to high inflation in euroland,
the ECB cannot cut interest rates in order to bring down the value of the euro.
The ECB can only hope for an external saviour in the form of lower oil prices, says a Lex-column this morning in Financial Times (FT). (4)

The ECB continues to not wanting to recognize that much so-called economic growth was made possible in the past by a shameful misadministration by the US Federal Reserve and the US Treasury.

The dollar house of cards, which was thereby created, will soon collapse because there is no “natural market” for the fiat-digits which the US Federal Reserve and the US Treasury have created out of thin air.

The digits have been created out of thin air. Unfortunately, they grow up to become stumbling blocks.

Rice traders are hit by panic as prices surge, says FT this morning. (5)

By engaging in an ultra-high risk geopolitical game with Beijing through the fanning of the flames of violence in Tibet just at this sensitive time in their relations and on the run-up to the Beijing Olympics,
Washington seems to have forgotten
that China long ago surpassed Japan as the world’s largest holder of foreign currency reserves, now in the range of $1.5 trillions, most of which are invested in US Treasury debt instruments
and that if Beijing were to decide it, it could bring the dollar to its knees by selling only a small portion of its US debt on the market, writes William Engdahl in the April 16 China Daily. (6)

As a starter, China could liberalize this planet’s gold trade.
After that it could start (continue?) valuing its gold on a mark-to-market (MTM) basis.

Nothing would prevent any group from copying this and keep gold (the Mona Lisa) in the strong rooms of its central banks (the Louvre-museums in Paris) and marking it to market price on a regular basis.

This, Freegold, a freely floating price of gold, is an alternative to the dollar regime.

In this situation, Freegold in the Central banks’ strong-rooms has the same role to fulfill as the Mona Lisa in the Louvre-museum in Paris. A wealth reserve in the strong room (the Louvre) of a monetary union.

Every individual is free to copy this concept of Freegold.

Indeed, Freegold makes gold the natural vehicle to temporarily or eternally store one’s wealth in, in order to be able to later convert it into tangible wealth.

The dollar is toast.

Oil surges as investors hunt an ‘anti-dollar’
By Ambrose Evans-Pritchard
The Daily Telegraph 17/04/2008

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/17/cnoil117.xml

SNIPS
Oil prices have surged to almost $115 a barrel as China builds up stocks before the Olympics and hedge funds pour money into commodity futures as a way to exploit the collapse of the dollar.
+
Analysts say it is no coincidence that oil punched higher on the same day that the euro reached a record of $1.5979, up 28pc in two years.

Dollar is toast?

Yes, food becomes too expensive.

The dollar regime wants this energy-food crisis in order to maintain its stronghold on this planet.

Hence, the dollar lakes on this planet are being sterilized
so that the dollar can still be considered a civilized currency.

Hunger and lack of energy may lead to calls for a strong-man to ….

Wouldn’t it be easier to dump the dollar-regime now?

End Confusion! – Dump dollar regime now!

http://bphouse.com/honest_money/2008/03/29/end-confusion-dump-dollar-regime-down/

March 29th, 2008 by ivo

But the masters of euroland want intervention in order to temporarily save the dollar.

By pricing oil in Honest Money now, OPEC will immediately bring down the price of oil and give the ECB the saviour it needs.

But why would OPEC want to save euroland?

Nobody seems indeed to realize that or nobody wants to believe
(and thus take (investment) decisions in accordance with this realization/belief)
that the dollar is toast.

Even George Soros, the hedge fund baron who “broke” Europe’s exchange system in the early 1990s, said yesterday that the euro could never anchor of the global system. (1)

Quousque tandem abutere, Catilina, patientia nostra?

Ivo Cerckel

NOTES

(1)

http://en.wikipedia.org/wiki/Quousque_tandem_abutere,_Catilina,_patientia_nostra%3F

(2)
Authorities lose patience with collapsing dollar
By Ambrose Evans-Pritchard
Last Updated: 2:38am BST 18/04/2008

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/18/cneuro118.xml

(3)
European Central Bank: Press conference – introductory statement
Introductory statement by Mr Jean-Claude Trichet, President of the European Central Bank
and Mr Lucas Papademos, Vice-President of the European Central Bank, Frankfurt am Main,
10 April 2008.

http://www.bis.org/review/r080411b.pdf

SNIP
However, the level of uncertainty resulting from the turmoil in financial
markets remains unusually high and tensions may last longer than initially expected.

(4)
European inflation spikes
Published: April 17 2008 09:42 | Last updated: April 17 2008 22:25

http://www.ft.com/cms/s/1/2b53703a-0c5a-11dd-86df-0000779fd2ac.html

SNIPS
Pity Jean-Claude Trichet. The European Central Bank’s boss faces an impossible dilemma – how to decide monetary policy with the economy stuttering and inflation surging.
+
Monetary policy in Europe, as in the UK and the US, is not proving as effective as central bankers would wish. But unless an external saviour – in the form of lower oil prices, for example – materialises, Mr Trichet is likely to stand firm.

(5)
Rice traders hit by panic as prices surge
By Javier Blas in London and Raphael Minder in Hong Kong
Published: April 17 2008 18:58 | Last updated: April 17 2008 18:58

http://www.ft.com/cms/s/0/f21969fe-0ca5-11dd-86df-0000779fd2ac.html

SNIP
Vichai Sriprasert, president of Riceland International, a leading rice exporter in Bangkok, said several of its customers, including governments, were buying far more than they usually did amid fears about scarcity.
“It is panic,” he said. “My customers are demanding double the usual volume. We would not have enough supplies for all the demand we are facing.”

(6)
Why Washington plays ‘Tibet Roulette’ with China
By William Engdahl (china.org.cn)
Updated: 2008-04-16 21:34

http://www.chinadaily.com.cn/china/2008-04/16/content_6622346.htm

SNIP
Washington has obviously decided on an ultra-high risk geopolitical game with Beijing’s by fanning the flames of violence in Tibet just at this sensitive time in their relations and on the run-up to the Beijing Olympics. It’s part of an escalating strategy of destabilization of China which has been initiated by the Bush Administration over the past months, and which includes the attempt to ignite an anti-China Saffron Revolution in the neighboring Myanmar region, bringing US-led NATO troops into Darfur where China’s oil companies are developing potentially huge oil reserves. It includes counter moves across minerals rich Africa. And it includes strenuous efforts to turn India into a major new US forward base on the Asian sub-continent to be deployed against China.

http://www.chinadaily.com.cn/china/2008-04/16/content_6622346_6.htm

SNIP
The US-led destabilization in Tibet is part of a strategic shift of great significance. It comes at a time when the US economy and the US dollar, still the world’s reserve currency, are in the worst crisis since the 1930′s. It is significant that the US Administration sends Wall Street banker, former Goldman Sachs chairman, Henry Paulson to Beijing in the midst of its efforts to embarrass Beijing in Tibet. Washington is literally playing with fire. China long ago surpassed Japan as the world’s largest holder of foreign currency reserves, now in the range of $1.5 trillions, most of which are invested in US Treasury debt instruments. Paulson knows well that were Beijing to decide it could bring the dollar to its knees by selling only a small portion of its US debt on the market.

From The Times
April 16, 2008
French cuisine and the rising cost of rice
Carl Mortished: World business briefing

http://business.timesonline.co.uk/tol/business/columnists/article3753806.ece

SNIPS
The [Common Agricultural Policy (CAP) of the European Union (EU)] has been a colossally wasteful experiment that diverted vast resources into shoring up inefficient farms, taxpayer euros that could have been invested better in transport infrastructure, scientific research and education.
+
In our hearts, we know the real cause of famine. It is not drought or pestilence but ignorance and fear.

But it was all predicted twenty years ago when the EU had food mountains and milk lakes.
And now, the US dollar, in which food is being priced on international markets, is causing shortage of food, that is, the opposite of mountains and lakes.

Here’s from the back cover of a 1987 book
Richard Cottrell, “The Sacred Cow – the Folly of Europe’s Food Mountains”, London, Grafton books, 1987:
The bizarre inside story of the bureaucratic folly and extravagance which have paralysed and all but bankrupted the [EU], and made swollen food mountains and wine lakes into permanent features of the European landscape.

The US dollar has changed all this.

And the euro was therefore going to replace the US dollar.

However, the return to power of Italy’s Silvio Berlusconi will now destroy the euro also.

Berlusconi plans Paris-Rome axis to humble European Central Bank
By Ambrose Evans-Pritchard
The Daily Telegraph, 16/04/2008

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/16/cnburly116.xml

SNIP
Silvio Berlusconi’s return to power in Italy is a nightmare come true for the European Central Bank, opening the way for a Rome-Paris axis with the political muscle to force a change in monetary policy.
The billionaire politician has pledged an alliance with France’s Nicolas Sarkozy aimed at humbling the bank and asserting the primacy of elected leaders over interest rates and the currency.
“A very strong euro is hurting Italy’s economy. I will discuss intervening with the ECB with Sarkozy,” he said.
The threat brought a sharp retort yesterday from the ECB’s German governor and chief economist Jurgen Stark. “I would recommend to political leaders in Europe, newly elected and re-elected, to read the European law on the ECB,” he said.

Shall we have to price agricultural products in Freegold?

Freegold is a freely floating price of gold as an alternative to the dollar regime.
Freegold makes gold the natural vehicle to temporarily or eternally store one’s wealth in, in order to be able to later convert it into tangible wealth.
Freegold in the central banks’ strong-rooms has the same role to fulfill as the Mona Lisa in the Louvre-museum in Paris.
A wealth reserve which would now be in the strong room (the Louvre) of a monetary union.

To quote again from the back cover of Cottrell’s book:
In this devastating exposé of secret transactions and official double-think, Richard Cottrell, Euro MP [Member of the European Parliament] for Bristol and Bath, reveals how the sacred cow of Europe’s common agricultural policy is leading us towards a world food crisis. In creating the biggest agricultural machine in history, the European countries have crushed the fragile economies of Third World nations, while in Europe the balance nature has been destroyed by agricultural over-production,
+
[The CAP [… ]] inspires widespread revulsion at a time when half the world is starving.
+
In its breadth of detail and the sustained force of the argument, “The Sacred Cow” presents a challenging case for the ending of all forms of state support for agriculture. It is a case which has to be answered if the political collapse of Western Europe is to be averted.

So there we are:
The dollar can no longer do it.
The euro will soon no longer be able to replace the dollar.

Will we be saved by Freegold, that is, by Honest Money?