Honest Money

Gold is Wealth Hiding in Oil

Archive for May, 2009

UAE: business of central bank is investment

Posted by Ivo Cerckel on 31st May 2009

Now we know!

Dollar irreplaceable, says UAE cbanker
May 31, 2009 at 03:37
http://business.maktoob.com/20090000004304/Dollar_irreplaceable_says_UAE_cbanker/Article.htm
SNIP
The central bank chief for the United Arab Emirates said he saw weakness in the dollar as a “temporary situation” and expressed support for the greenback, saying nothing could replace it as a reserve currency.
“There is no other currency to replace the dollar, not the euro,” Central Bank Governor Sultan Nasser al-Suweidi told reporters on Sunday. “It is the currency for investment.” UNSNIP

Now we know.

The business of a central bank is investment.

A central bank needs reserves,
NOT in order to determine the value of the currency the central bank administers
or to provide SOME value to that currency,

BUT a central bank needs reserves for investment.

Ivo Cerckel
honestmoney@maktoob.com

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GCC peg versus gold as freely floating reserve

Posted by Ivo Cerckel on 30th May 2009

If the administrators of Gulf Co-operation Council currencies decide to use their gold reserves as freely floating financial reserves,
each increase in the price of gold will bring about an increase in the value of the currencies’ reserves and thus an increase in the value of the currencies themselves.
As gold is hiding in OIL, each increase in the value of the currencies’ reserves will also bring about an increase in the price of OIL.

Emirates Business 24/7 carries this article this morning
Monetary union in Gulf branded ‘unrealistic’ by senior academic
By Nadim Kawach on Saturday, May 30, 2009
http://www.business24-7.ae/Articles/2009/5/Pages/29052009/05302009_bcbfd8a526d440839b0e75f97c96e906.aspx
SNIP
Sultan said the six GCC nations – UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman – had effectively been within a monetary union until May 2007, when Kuwait broke ranks and ended the dollar peg in favour of a basket of currencies. “This monetary union can now be relaunched through a fresh agreement among members on a joint peg for their currencies,” he said.
“It is unjustified that the GCC countries abandon this easy option and adopt a more difficult alternative that requires them to abide by difficult criteria which cannot be implemented in the current conditions.
UNSNIP

The GCC should NOT peg its currencies to anything.

The GCC should NOT define its currencies like the old gold standard as a certain quantity of gold.

BUT

The GCC should use its gold reserves as freely floating financial reserves so that each increase in the price of gold will bring about an increase in the value of the currencies’ reserves and thus an increase in the value of the currencies themselves.

The GCC possesses the only commodity in the world, OIL, that is large enough for gold to hide in. Every increase in the price of gold will then also bring about an increase in the price of OIL.

The euro is the first currency to have severed the link to gold, said the late Dr. Willem F. Duisenberg, President of the European Central Bank, in his 9 May 2002 acceptance speech of the International Charlemagne Prize of Aachen for 2002.
http://www.ecb.eu/press/key/date/2002/html/sp020509.en.html

Whereas the rising price of gold devalues the dollar, it raises the value of the gold reserves of the euro, and thus the value of the euro.

The same could happen to the GCC currencies if the administrators of these currencies decide to use their gold (hiding in OIL) reserves as freely floating financial reserves.

Ivo Cerckel
honestmoney@maktoob.com

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But It’s Not Google

Posted by Ivo Cerckel on 29th May 2009

Truth is ad-equation between the thing and the intellect. (Thomas Aquinas, “On the Truth”)

Knowledge of the Truth must be transmitted through honest channels.

Bing is the new web search engine developed by the heroes from Microsoft Corp.

The way the world searches is changing. You want more than just information. You want knowledge that leads to action. (1)

That’s why Bing was developed.

Steve Ballmer, Microsoft’s chief executive, said at an industry conference that he was under no illusion that the enhancements would rapidly give Microsoft a much bigger market share after the service, despite a marketing budget that he said made him “gulp”. “My time frame is lots of years,” Mr Ballmer said. “There’s no way to change the game in one step.” (2)

Like money, a search engine is the vehicle or transmission mechanism through which the information or knowledge which the economic agents need in order to produce and/or consume wealth is being channelled. (3)

Google has an unpublished censorship policy.

Hence, the need has arisen for a new transmission mechanism of web knowledge.
The need has arisen for a new search engine.

Hence, some tech people are already noting that Bing is also an fortunate acronym, unfortunate acronym says the New York Times, “But It’s Not Google”. (4)

May KNOWLEDGE and TRUTH prevail!

Ivo Cerckel
honestmoney@maktoob.com

NOTES

(1)
Introducing BING
http://www.decisionengine.com/Letter.html

(2)
Microsoft and Google face off over innovation
By Richard Waters in San Francisco and Joseph Menn in Carlsbad, California
Published: May 28 2009 21:41 | Last updated: May 28 2009 21:41
http://www.ft.com/cms/s/0/9acf4ff2-4bc3-11de-b827-00144feabdc0.html

(3)
Transmit knowledge through honest channels!
Posted by Ivo Cerckel on May 27th, 2009
http://bphouse.com/honest_money/2009/05/27/transmit-knowledge-through-honest-channels/
If the link does not work, try to coy it and paste it in your browser

(4)
Microsoft’s Request: Use Bing, Don’t Google It
The picture on Bing’s homepage changes daily.
By MIGUEL HELFT
Published: May 28, 2009
http://www.nytimes.com/2009/05/29/technology/internet/29bing.html?ref=business
SNIP
Meanwhile, some tech people were already noting that Bing is also an unfortunate acronym: “But It’s Not Google.”

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End pressure control on dollar regime!

Posted by Ivo Cerckel on 29th May 2009

C’est la lutte finale …

Opponents of the dollar regime should stop controlling the pressure on the dollar regime.

Most commercial types of nuclear reactor use a pressure vessel to maintain pressure in the reactor plant. This is necessary in a pressurized water reactor to prevent boiling in the core, which could lead to a nuclear meltdown. Pressure is controlled in a pressurized water reactor to ensure that the core itself does not reach its boiling point in which the water will turn into steam and rapidly decrease the heat being transferred from the fuel to the moderator.
http://en.wikipedia.org/wiki/Loss_of_pressure_control_accident

The Bretton Woods SYSTEM of 1944 said that the US of A dollar was linked to gold at fixed parity and all other currencies linked to the said dollar.

This system was repealed on 15 August 1971 by US of A president Richard Nixon.

At that date, the Bretton Woods System was replaced by the DOLLAR System.

The dollar System is being administered by the dollar REGIME.

The dollar regime is a colonial regime which cannot possibly accept a level playing field.

The administration by the regime results in colonisation, pauperisation, plundering, exploitation, blood, sweat and tears for the masses.

The price of gold is being subjected to the same persecutions.

Nevertheless, in the current financial crisis, the manipulators are not succeeding in taming the price of gold.

The euro and oil are devaluating the dollar. Housing prices are deflating. Nevertheless, US of A interest rates seem to be slowly rising.

Rise in Rates Jolts Markets
By LIZ RAPPAPORT
MAY 28, 2009
http://online.wsj.com/article/SB124346921018160569.html
SNIP
Treasury yields and mortgage rates surged Wednesday to their highest levels since November, dealing a blow to the Federal Reserve’s efforts to stimulate the economy by keeping borrowing costs low. UNSNIP

The pressure on the dollar regime is increasing.

The gold price explosion is a certainty.

The timing remains difficult. [smile]

All opponents of the regime should unite in their struggle against the regime.

As long as the  opponents of the dollar regime are not prepared to unite in the liberation struggle against the dollar regime, nothing will happen.

Once the opponents of the dollar regime will have united, the only thing they will have to do is to let go their pressure-control tools.

Is that as difficult as timing?

Can we no longer smile?

Ivo Cerckel
honestmoney@maktoob.com

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The geopolitics of OPEC Monetary Union

Posted by Ivo Cerckel on 28th May 2009

Antitrust, Israel, Iraq and Iran

As long as the oil and gas owners continue to invoice their wealth in dollar and not in a currency with freely floating gold reserves, they are doomed to remain dollar-pegged.

By the same token, the old dynamics of oil supply and oil pricing in agreement or in consultation with the dollar regime will not change.

Only if Asia and Europe would for instance agree to replace the petrodollar with a currency with freely floating gold reserves, (those reserves being) marked to market on a regular basis, will the Gulf Co-operation Council be able to institute an independent monetary union based on the FreeGold-wealth concept.

The oil and gas owners enjoy the so-called privilege of being allowed to act in a system which violates the immoral antitrust laws of the US of A and of the European Union.

As Alan Greenspan, former chairman of the Federal Reserve, the US of A central bank, said more than 45 years ago:
http://www.polyconomics.com/ssu/ssu-980612.htm
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. END OF QUOTE

The oil producers are thereby forced to confirm the US of A and the European Union with their immoral antitrust laws.

If the laws are immoral, how can OPEC then be said to enjoy a privilege?

At that stage, it becomes the task of Israel to organise enough division in the Middle East to maintain petrodollar dependence.

This explains the occupation of Iraq and the continuous menaces from Iran.

The GCC Monetary Union cannot possibly be disconnected from this geopolitical fact.

And then there is the fact world public-opinion considers the Arab world as Islamo-fascists.

How dare the fascists attack the dollar peg?

If they do, we will get them with out immoral antitrust laws.

Ivo Cerckel
honestmoney@maktoob.com

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OPEC Monetary Union – developing

Posted by Ivo Cerckel on 28th May 2009

Oil pricing in Khaleeji, anyone?

The Khaleeji is the proposed Gulf Co-operation Council single currency.

The UAE is not seeking to rejoin the planned regional monetary union, senior government officials said on Tuesday, even as Saudi Arabia’s King Abdullah told a newspaper that Gulf countries would “review” their plans and try to resolve their differences before putting the union into effect, said the Khaleej Times yesterday.

The Saudi Arabian Central Bank rejects the idea of ending the dollar peg of the Saudi riyal to the US dollar saying the peg serves the Kingdom well, says the Saudi Gazette this morning.

The United Arab Emirates Central Bank is saying that the UAE will continue its expansionary monetary policy without change, and will continue to peg the UAE dirham to the US dollar, says Gulf News this morning.

OPEC, the Organisation of Oil Producing Countries, is meeting today Thursday in Vienna.

Saudi Arabia’s oil minister, Ali al Naimi, says that the global economy has strengthened enough to cope with oil at $80 a barrel.  The price rise is a function of optimism that better things are coming in the future,” Mr Naimi said, adding that customers were already demanding more oil from the kingdom. Saudi Arabia has so far refused to pump more, says the Financial Times this morning.

“There is no need to cut production,” Mr Naimi said. “Making another cut now would not help stabilise the market.”, says The National in Abu Dhabi this morning.

Oil pricing in Khaleeji, anyone?

Ivo Cerckel
honestmoney@maktoob.com

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Transmit knowledge through honest channels!

Posted by Ivo Cerckel on 27th May 2009

Stop intervening in order to achieve the dollar-regime nirvana, so-called nirvana!

End dollar dominance!

Stop dollar colonialism!

Money is the vehicle or transmission mechanism through which the information or knowledge which the economic agents need in order to produce and/or consume wealth is being channelled.

Nations will defend the system at all cost.
They will never sell US$ treasury debt as that debt is their currency!
(Another) (1)

To control the production of wealth is to control human life itself.
(Joseph Hilaire Pierre René Belloc) (2)

We must get rid of the total control and planning of human life by the organised dollar regime.
(Ivo Cerckel) (X)

In his 1944 book “The Road to Serfdom”, 1974 Nobel laureate for economics, Friedrich August von Hayek’s argument was not that a FULLY PLANNED SOCIETY would not work. Rather, he dealt here with the consequences of an attempt to introduce such planning systematically. Hayek believed that if one persisted with such a course of action, it would have the consequences of limiting human freedom, introducing a political system that is incompatible with democracy, and requiring the USE OF COERCION. Hayek offered a theory of the significant features of Nazi Germany. (3)

In his 1945 paper “The Use of Knowledge in Society”, Hayek explained that in ordinary language we describe by the word “planning” the complex of interrelated decisions about the allocation of our available resources. All economic activity is in this sense planning; and in any society in which many people collaborate, this planning, whoever does it, will in some measure have to be based on KNOWLEDGE which, in the first instance, is not given to the planner but to somebody else, which somehow will have to be conveyed to the planner.

In Chapter 7 “Economic Control and Totalitarianism” of “The Road to Serfdom”, Hayek argues that we shall better understand the significance of the service of MONEY if we consider what it would really mean if, as so many socialists characteristically propose, the ‘pecuniary motive’ were largely displaced by ‘non-economic incentives’. If all rewards, instead of being offered in money, were offered in the form of public distinctions, or privileges, positions of power over other men, better housing or food, opportunities for travel or education, this would merely mean that the recipient would no longer be allowed to choose, and that whoever fixed the reward would determine not only its size but the way in which it should be enjoyed.

Ivo:
Money is the vehicle or transmission mechanism through which the information or knowledge which the economic agents need in order to produce and/or consume wealth is being channelled.

For the moment the dollar regime is the channel through which this information is being transmitted to the economic agents.

This allows the said regime to have total control and total planning of human life.

We must get rid of the total control and planning of human life by the organised dollar regime.

All opponents of the regime should unite in their struggle against the regime.

As long as opponents of the dollar regime are not prepared to unite in the liberation struggle against the dollar regime, nothing will happen.

The said regime is masterly exploiting this to the fullest extent by applying the “divide et impera” (divide and rule) rule.

First, we must achieve unity among ourselves. Then, we need to forge strong alliances with same-minded people.

As was predicted more than a decade ago by Another:
Nations will defend the system at all cost They will never sell US$ treasury debt as that debt is their currency! (Another Thoughts, Nov 05 1997)

Money is the vehicle or transmission mechanism through which the information or knowledge which the economic agents need in order to produce and/or consume wealth is being channelled.

It is of the utmost importance that this information or knowledge be transmitted through honest channels.

Indeed,
Hayek starts his Chapter 7 “Economic Control and totalitarianism” of “The Road to Serfdom” by arguing that most planners who have seriously considered the practical aspects of their task have little doubt that a directed economy must be run on DICTATORIAL LINES, that the complex system of interrelated activities must be directed by staffs of experts, with ultimate power in the hands of a commander-in-chief whose actions must not be fettered by democratic procedure. The consolation our planners offer us is that this authoritarian direction will apply ‘only’ to economic matters. END OF QUOTE

We should therefore immediately liberate ourselves from the dollar regime.

All the serfs of the dollar regime should realise that the coercion exercised by the regime (4) cannot possibly result in welfare and stability.

It’s only the local oligarchs who fare well with this dollar-regime dynamics. As long as the serfs continue to submit to dollar servitude, these oligarchs will not liberate the serfs.

The struggle between the good boys and bad boys must urgently come to an end.

Governments should stop intervening in order to achieve the dollar-regime nirvana, so-called nirvana.

Failing them to do so, we shall never be able to promote our development.

Hence we should stimulate our development outside of the dollar regime.

The dollar regime is not appropriate for our development.

Stop dollar colonialism!

End dollar dominance!

Ivo Cerckel
honestmoney@maktoob.com

NOTES

(1)
Date: Wed Nov 05 1997 22:06
GOLDEN CHEESEHEAD ( @ANOTHER SHOCKING POST! ) ID#431263:
http://www.usagold.com/goldtrail/archives/another1.html

(2)
Joseph Hilaire Pierre René Belloc (1870 – 1953), quoted by Hayek at the outset of Chapter 7 “Economic Control and totalitarianism” of “The Road to Serfdom”

(3)
This is my paraphrase of
Jeremy Shearmur, “Hayek’s politics”, in: Edward Fieser, ed., “The Cambridge Companion to Hayek”, Cambridge University Press, 2006, 148, p. 149

(4)
As I quoted above, Hayek said that a fully planned society requires the use of coercion.

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The UAE dollar-peg is history

Posted by Ivo Cerckel on 27th May 2009

United Arab Emirates banks have decided to lower interest rates on personal loans to 7%.  (1)

Last Friday 22 May 2009. I had interpreted Sultan Bin Nasser Al Suwaidi, the UAE Central Bank Governor, ’s statement that the UAE Central Bank was considering changing interest rates on personal loans as meaning that interest rates would be changed UPWARDS. (2)

I said, under the article and on this blog (3), that this was the result of the dollar peg.

Sultan Al Suwaidi was indeed quoted on Friday as having said on Thursday that there will be no change in the UAE’s monetary policy and that the dirham will remain pegged to the dollar. (4)

Now the UAE banks have decided to change interest rates on personal loans DOWNWARDS to 7%.

Does this mean that the UAE CENTRAL bank has let go the dollar peg?

Ivo Cerckel
honestmoney@maktoob.com

NOTES

(1)
UAE banks to cut interest rates on personal loans – 26May09 (0:35)
UAE banks have decided to lower interest rates on personal loans to 7%
http://www.zawya.com/video/default.cfm/sidVID20090526112446

(2)
UAE: Central Bank mulls changing interest rates on personal loans
Emirates Business 24/7
22 May 2009
http://ae.zawya.com/story.cfm/sidZAWYA20090522064629

(3)
UAE dollar-peg in practice
Posted by Ivo Cerckel on May 22nd, 2009
http://bphouse.com/honest_money/2009/05/22/uae-dollar-peg-in-practice/
(If the link does not work, try to copy it and to paste it in your browser.)

(4)
UAE has most suitable financial infrastructure in region: Al Mansouri
Gulf News
Friday, May 22, 2009
http://www.zawya.com/Story.cfm/sidGN_22052009_10315854/UAE%20has%20most%20suitable%20financial%20infrastructure%20in%20region%3A%20Al%20Mansouri

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Oman has been hired by the dollar regime

Posted by Ivo Cerckel on 26th May 2009

Governments have to intervene in order to achieve the dollar nirvana.

Nations will defend the system at all cost They will never sell US$ treasury debt as that debt is their currency! (Another Thoughts, Nov 05 1997)

Oman Hints at Joining Union
Khaleej Times 26 May 2009
http://www.khaleejtimes.com/DisplayArticleNew.asp?section=business&xfile=data/business/2009/may/business_may1022.xml
SNIP
“A revision of the exchange rates and volumes of reserves should be made before establishing the single currency,” Oman’s Minister Responsible for Foreign Affairs Yusuf  bin Alawi bin Abdallah said in an interview with state-owned Oman and ?Al Shabiba Arabic dailies on Saturday. UNSNIP

As was predicted more than a decade ago:

Date: Wed Nov 05 1997 22:06
GOLDEN CHEESEHEAD ( @ANOTHER SHOCKING POST! ) ID#431263:
http://www.usagold.com/goldtrail/archives/another1.html
All paper gold will be worthless just like stocks and bonds! Am I right? If not please correct!
Mr. GCH,
You may be more right than wanted to be. For some it is a long torturous wait to go without paper gains. For ones outside the west, it is not hard. Days pass easily as a thousand years of history give backing to our investment. “For what I hold is not an empty promise. Nor is it a major thought of debt. I am now today, paid in full!”
Turn slowly now and view all directions. The wealth that was had was not real. The Pacific Rim started, now South America. Next will be Europe closely followed by the US. Remember, all currencies are the same now as they are “digital paper”! Nations will defend the system at all cost They will never sell US$ treasury debt as that debt is their currency! The dollar will soar as a final defense! As part of this defense they will allow oil to rise as oil is priced in dollars. How do you get oil to rise? Today, we stop our [central bamk]s from selling gold! END OF QUOTE

As Ambrose Evans-Pritchard says this morning in The Daily Telegraph.:

German debts set to blow ‘like a grenade’
Germany’s financial regulator BaFin has warned that the toxic debts of the country’s banks will blow up “like a grenade” unless they take advantage of the government’s bad bank plans to prepare for the next phase of the crisis.
By Ambrose Evans-Pritchard
Last Updated: 9:54PM BST 25 May 2009
http://www.telegraph.co.uk/finance/financetopics/recession/5383516/German-debts-set-to-blow-like-a-grenade.html

With such articles Evans-Pritchard is trying to pave the way for having our Masters only take those steps which suit the dollar regime.

As Nobel laureate Paul Krugman is saying:

Best for GCC to depeg from dollar: Krugman
By Ahmed A. Namatalla, Staff Reporter
Gulf News May 25, 2009, 22:38
http://www.gulfnews.com/business/Economy/10317030.html

Krugman has also been hired by the dollar regime to build perceptions.

Krugman is no realist who’s talking about what’s happening in the world,
he’s a dirigist directing the world towards the dollar regime nirvana, so-called nirvana.

Governments have to intervene in order to achieve that nirvana.

Krugman’s attempts will fail as the other power blocs do not agree
that the dollar SYSTEM is appropriate for their development

Nations will defend the system at all cost
They will never sell US$ treasury debt as that debt is their currency!
(Another Thoughts, Nov 05 1997)

Ivo Cerckel
honestmoney@maktoob.com

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The ultimate irony

Posted by Ivo Cerckel on 26th May 2009

The crisis is the result of government-initiated
irredeemable, at least unbacked, paper money
and
fractional-reserve banking.

But if you refuse to collaborate with the bureaucrats who are maintained alive with tax money
whereas
the thief does not come back periodically,
nor does the thief pretend to stealing in the public interest,
your business will be blown up by the bureaucrats’ grenade.

German debts set to blow ‘like a grenade’
Germany’s financial regulator BaFin has warned that the toxic debts of the country’s banks will blow up “like a grenade” unless they take advantage of the government’s bad bank plans to prepare for the next phase of the crisis.
By Ambrose Evans-Pritchard
Last Updated: 9:54PM BST 25 May 2009
http://www.telegraph.co.uk/finance/financetopics/recession/5383516/German-debts-set-to-blow-like-a-grenade.html

Ivo Cerckel
honestmoney@maktoob.com

Posted in Uncategorized | 13 Comments »

 

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