Dear Mr Buffett,
 
You have been issued with a subpoena to force you to appear before a government panel in Washington examining the causes of the 2008 financial crisis.
 
Tell them that the crisis is due to the frauds of irredeemable, at least unbacked, paper money and of fractional-reserve banksterism.
 
Refer to page 45 of your 2008 biography “The Snowball” by Alice Schroeder (Bantam Books} where it is being demonstrated that after going off the “gold standard” in September 1931, England,  – which was deeply in debt – would, to avoid bankruptcy, simply print more money to pay off its loans.
 
A footnote on the same page adds that the “gold standard” stopped the government from provoking inflation simply by printing money.
 
Tell the government panel in Washington examining the causes of the 2008 financial crisisthat the flaws that could be remedied through reforms are,
ONE, preventing government from creating money out of thin air through the (digital) printing machine
TWO, preventing commercial banksters from doing the same thing through fractional-reserve banksterism.
 
They may ask you how the banksterism system can ever get into problems if it can create money of out thin air through fractional-reserve banksterism.
I don’t know the answer to this question.
 
Good luck!
 
Warmest regards,
Ivo Cerckel
 
From Times Online
May 29, 2010
Warren Buffett subpoenaed to appear before US commission
Alexandra Frean
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7139615.ece

Eurozone uncertainty reason for oil volatility: Qatar
http://www.zawya.com/story.cfm/sidANA20100515T115152ZSDU99/Eurozone%20uncertainty%20reason%20for%20oil%20volatility%3A%20Qatar
SNIP  
MANAMA, May 15, 2010 (AFP) – Qatar’s energy minister on Saturday blamed the uncertainty over eurozone debt problems for the volatility in the oil market and the slide in crude prices.
“The uncertainty, especially in Europe, the bailout (for Greece), and the euro (decline), all those put a lot of pressure on the economy and oil prices,” Sheikh Abdullah bin Hamad al-Attiyah told reporters on the sideline of an economic forum in Bahrain.
“It is volatile. There is uncertainty, and we are watching with nervousness,” he said, as oil prices tumbled to a three-month low on Friday.
“Oil prices are not reflecting demand and supply,” he said, adding that it was “very difficult to predict” the movement of prices. UNSNIP

So the volatility of the euro influences the price of oil?.

I thought oil was being priced in USA dollar.

If the euro does fail, gold will become the “world oil currency”.
http://bphouse.com/honest_money/2010/05/15/abu-dhabi-hotel-expects-euro-to-fail/

From The Sunday Times
May 16, 2010
Euro heads for parity with dollarSingle currency set for long-term slide, sparking fears for Britain’s export-led economic recovery
http://business.timesonline.co.uk/tol/business/economics/article7127642.ece
SNIP
The Bank of England warned last week that weakness in the eurozone was one of the main risks to Britain’s recovery. Jean-Claude Trichet, president of the European Central Bank, said in an interview with Der Spiegel, the German magazine, that “profound changes” were needed in the oversight of countries’ fiscal positions within the eurozone.
UNSNIP

This is a currency crisis, a crisis of money.Money has three functions, a means of exchange, a unit of account and a store of value, right. But what IS money? (The definition, please!)

Money is a good readily acceptable in exchange by everyone in a given geographical area, and is sought for the purpose of being re-exchanged.

But Trichet wants a quantum leap by euro guv’mints, headlines Der Spiegel. (1)

Quantum mechanics contradicts special relativity.
Albert Einstein’s theory of special relativity is based on the idea that the laws of science should be the same for all observers, no matter how they are moving.

Trichet wants a quantum leap. For Trichet, the laws of monetary “science” are no longer the same for all observers.

“A report this weekend from UBS suggests that the appetite for holding euros among [...] managers of official currency reserves is fading. [...] That is the verdict [...] of reserve managers that we’ve been visiting around the world “, writes The Sunday Times.That’s money in its function as store of value – or rather as a means of fouling forex markets – for central banksters.  

As I said, money is however a good readily acceptable in exchange by everyone in a given geographical area, and is sought for the purpose of being re-exchanged.
Since the gold standard is a barbarous relic, there is no good available. That’s not enough for Trichet. He wants a further quantum leap
.”Houston, we’ve got a problem!”  

“Wir haben es nicht gewusst!”  

Trichet didn’t know.  

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTE

(1)
Trichet fordert “Quantensprung” von Euro-Staaten
http://www.spiegel.de/politik/ausland/0,1518,694891,00.html

If the euro does fail, gold will become the “world oil currency”.
 
We do know this full well, “the Central Banks will horde all gold and buy any offered if this new European currency does not work” and “debt currencies fail”. If this does comes, no paper asset of world economic system will survive, nothing! Not a good thought, no? (1)
 
Hence, Abu Dhabi’s Emirates Palace Hotel on Wednesday unveiled the United Arab Emirates’ first ATM-type machine that gives those staying there the chance to withdraw 24-karat gold bars and coins. (2)

Gold is money.
 
Hence, now you can withdraw ingots from an ATM (3)
 
http://fofoa.blogspot.com/2010/05/hair-of-dog.html 
SNIP
FOFOA said…
As you all know, I don’t expect the euro to fail. The euro is designed for transition. It is designed for Freegold. And the specific value of a currency doesn’t matter in its primary role as a medium of exchange. Only stability matters, and the euro could handle a big one-time devaluation to a more stable level. It will have to devalue at one point or another. Devaluation is inevitable for all fiat currencies today. The European politicians apparently understand less about this than the central bankers do.
Even still, exiting the euro would be a Herculean task for any country. They’d have to reissue currency and re-denominate all long term private contracts, and then face the old risks of war and hyperinflation once again. For this and other reasons I am highly skeptical about reports of politicians making boisterous threats to leave the euro. They seem pretty empty to me.
Jim Rickards: “Now, political unification has had modest success. Military and foreign policy unification has really had no success at all. But the crown jewel of European unification is their monetary system, the euro and the European Central Bank. So that’s the pinnacle of their world historical efforts to unify the continent. They’re not going to give that away lightly. I mean, they view it in a much broader historical context than Wall Street and Americans. And so it’s of the utmost importance to them. And they’re going to do everything they can to preserve it.”
Jim Sinclair: “If the EU fails so does the USDX. With no mirror image to hold up the dollar artificially, the US dollar will fall faster than Greece’s credit.”
ANOTHER: “…If the Euro does fail, gold will become the “world oil currency”. We do know this full well, “the Central Banks will hoard all gold and buy any offered if this new European currency does not work”
May 14, 2010 4:40 PM - UNSNIP
 
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
 
NOTES
 
(1)
5/22/98 ANOTHER (THOUGHTS!)
ANOTHER(THOUGHTS!)
Foundational Gold Trail Commentary
The Inside Story on the Gold-for-Oil Deal that could Rock the World’s Financial Centers
-Page Four  
http://www.usagold.com/goldtrail/archives/another4.html
 
(2)
UAE gets first-of-its-kind gold bar vending machine
Agencies -14 May 2010
\http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010051472255
SNIP
ABU DHABI – Abu Dhabi’s top hotel on Wednesday unveiled the UAE’s first ATM-type machine that gives those staying there the chance to withdraw 24-karat gold bars and coins.
The ATM-style kiosk cash-for-gold dispending machine is the brainchild of CEO of Ex Oriente Lux Thomas Giessler and the first international foray for the German entrepreneur’s Gold to Go” brand, which was first tested in his native country in 2009
 
(3)
Abu Dhabi hotel installs gold vending machine
(AFP) – 14 May 2010
http://www.google.com/hostednews/afp/article/ALeqM5jh-I81XFnWmsFxqrrfJytXQWZYvw?index=0
SNIP
ABU DHABI — There’s no mistaking what’s in this vending machine. The well-heeled in the Gulf can now grab “gold to go” from a hotel lobby in the United Arab Emirates, when the need for a quick ingot strikes.
On Thursday, a day after its inauguration, the shiny machine attracted spectators of many different nationalities who gathered to watch whenever an enthusiast was struck with the urge to splurge on a bar of the precious metal.
Abu Dhabi’s Emirates Palace Hotel became the first place outside Germany to install “gold to go, the world’s first gold vending machine,” said a statement from Ex Oriente Lux AG, the German company behind the vending machine.

Man in the News: Jean-Claude Trichet
By Ralph Atkins 
Financial Times, May 14 2010 21:13 | Last updated: May 14 2010 21:13
http://www.ft.com/cms/s/0/8bbaa714-5f8b-11df-a670-00144feab49a.html
SNIP
“What we saw on Monday was the most impressive internationally co-ordinated action since the [1985] Plaza Accord,” says Jim O’Neill, chief economist at Goldman Sachs. UNSNIP
 
With the 22 September 1985 Plaza Accord, France, West Germany, Japan, the United States of America and the United Kingdom of Northern Ireland and Great Britain agreed to depreciate the USA dollar in relation to the Japanese yen and German mark by intervening in currency markets.
http://en.wikipedia.org/wiki/Plaza_Accord
 
http://www.ecb.int/ecb/history/emu/html/index.en.html
Stage One of EMU
On the basis of the Delors Report, the European Council decided in June 1989 that the first stage of the realisation of economic and monetary union should begin on 1 July 1990. On this date, in principle, all restrictions on the movement of capital between Member States were abolished.
 
In 1990, the Belgian franc was pegged to the German mark, which was synonymous with stability.  Governor Viscount Alfons Verplaetse of the Belgian central bank wanted to be sure Belgium could participate in European Monetary Union from the beginning
http://nl.wikipedia.org/wiki/Fons_Verplaetse
 
In May 2010, all currencies are unpegging from gold which is thereby being demonetised.
 
The depeggings are being organised in such a way that, in the fall of all currencies vis-à-vis gold, the dollar is shining vis-à-vis the other currencies
 
European commercial banks are indeed struggling to get hold of dollars. This problem comes up every time strain mounts on the global financial system – the dollar is the world’s reserve currency and only the Fed can provide it.
http://blogs.ft.com/money-supply/2010/05/10/dollar-swaps-are-back-will-they-work/
 
The euro is the first currency that has not only SEVERED ITS LINK TO GOLD, but also its link to the nation-state, said the late ECB-president Wim Duisenberg on 9 May 2002 in his acceptance speech of the International Charlemagne Prize of Aachen for 2002.
(International Charlemagne Prize of Aachen for 2002
Acceptance speech by Dr. Willem F. Duisenberg, President of the European Central Bank, Aachen, 9 May 2002
http://www.ecb.eu/press/key/date/2002/html/sp020509.en.html
 
The others are following suit.
 
In a speech at a prize-giving ceremony for Polish prime minster Donald Tusk on Wednesday, German chancellor Angela Merkel said on Wednesday that the eurozone crisis is “existential” and “must be overcome” in order to avoid “unforeseeable consequences” for the future of the EU.
politigg.co.uk
http://bit.ly/d7ZqK1
 
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

The EU ministers of finance offer a 500bn-EURO plan to support the EURO

Is this a joke?

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

EU ministers offer 500bn-euro plan to support currency 
Monday, 10 May 2010 03:41 UK
http://news.bbc.co.uk/2/hi/europe/8671632.stm
SNIP
Officials hope loan guarantees would prevent the Greek crisis spreading
EU finance ministers have agreed on emergency measures worth 500bn euros (£430bn) to prevent the Greek debt crisis from affecting other countries.
The 16 members of the single currency bloc will have access to 440bn euros of loan guarantees and 60bn euros of emergency European Commission funding.

“We see herd behaviour in the market that is really pack behaviour, wolf-pack behaviour, and if we do not stop these packs they will tear the weaker countries apart, even if it is self-inflicted weakness,”, said Sweden finance minister Anders Borg on Sunday 09 May 2010.

Is “wolfpack” a system of submarine warfare used by the United States Navy and Germany during World War II?
Or is “wolfpack” herd behaviour?

Here’s translation I found:
On voit aujourd’hui des comportements violents sur les marchés, des comportements de meutes de loups et si nous ne le arrêtons pas ils vont déchirer les pays les plus faibles.

This means herd behaviour.

The frauds of irredeemable, at least unbacked, paper money and of fractional-reserve banksterism make a wolf of any honest person.

Does Borg mean “panic” by “wolfpack behaviour”?

Time is up for the frauds of irredeemable, at least unbacked, paper money and of fractional-reserve banksterism,
so the sheeple (or is it the “wolves”? – THAT’S THE QUESTION) are panicking.

We will defend the euro, whatever it takes, said European commission president Jose Barroso May 8 after EU leaders met in Brussels.

This is however
NOT about the stability and credibility of the euro currency
BUT about the credibility of the Brussels-based EU-Commission bureaucracy.

De Gucht not worried by plummeting Euro 
Belga Thu 06/05/2010 – 11:40
http://www.deredactie.be/cm/vrtnieuws.english/news/100506_De_Gucht
SNIP
The European Trade Commissioner, the Fleming Karel De Gucht, has said in an interview with the German daily ‘Süddeutsche Zeitung’ that the fall in the value of the Euro against the Dollar doesn’t give him great cause for concern. The value of the European single currency has fallen in recent days as a result of the crisis in Greece.

Meanwhile,
Central bankers meet as Greek crisis spirals
http://www.zawya.com/story.cfm/sidANA20100509T135254ZREI57/Central%20bankers%20meet%20as%20Greek%20crisis%20spirals
SNIP
BASEL, May 09, 2010 (AFP) – Central  bankers from around the world met Sunday in Switzerland, with talks on monetary reform set to be overshadowed by the threat of Greece’s debt woes ballooning into global chaos.
The talks, stretching over three days in Basel and Zurich, were meant to focus on longer-term issues including systemic changes following the crisis that has dogged the world economy since 2008.

Explosive gold catalyst
May 04, 2010
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/5/4_Explosive_Gold_Catalyst_.html
SNIPS
IMF, Swiss National Bank Announce High-Level Conference on International Monetary System
Press Release No.10/171
April 27, 2010
+
COMMENT
It is ironic that gold investors globally can count on central banks, the IMF and other senior policy makers to provide the catalyst for the next up leg in the gold market. Haven’t these been the same forces that have previously acted to suppress the yellow metal? These former villains of the gold market will do the heavy lifting going forward as the greatest wealth transfer in history continues to unfold.
UNSNIP

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

The financial regulators have no experience.

The principle of causality says that nothing can be the cause of itself.
The principle of causality is subsequent to the principle of non-contradiction (PNC) which says that is impossible to be and not to be at the same time and in the same respect.
Like the PNC, the principle of causality is known from, or arises from, experience.

How much more experience do we need?
Merkel and Sarkozy have no experience.
Hence, they need to have recourse to deductions and/or inductions to blame speculators,
thereby forgetting that prohibiting oil speculation has the same effect on society as preventing squirrels from storing up nuts for winter – it leads to starvation.
(Walter Block, “Defending the Undefendable”, New York, Fleet Press Corporation, 1976, p. 175)

Now they say they want circuit breakers for Monday in the USA.

Regulators eye curbs to slow stock price drops
Sat May 8, 2010 9:57pm EDT
http://www.reuters.com/article/idUSTRE64803J20100509 

Circuit breaker refers to any measure used by stock exchanges during large sell-offs to avert panic selling.
http://www.investopedia.com/terms/c/circuitbreaker.asp

What’s wrong with panic?

What are the long-term effects, to all groups in society, of circuit breakers? Our Masters want to avoid disaster? They will precipitate it.

Price controls don’t work, upwards, nor downwards. And they think circuit breakers will avoid disaster?

By circuit breakers, the sheeple will, at the point of a gun, be prevented from concluding mutually beneficial stock-market transactions.
Circuit breakers can only bring mounting chaos and radical discontent, like in Soviet Russia and Nazi Germany.

The financial regulators lack any experience.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

The present banking crisis is due to the fraudulent phenomena
of irredeemable, at least unbacked, paper money,
and of fractional-reserve banking. (1)

In order to provide more digital, not even paper, money to Greece,
the Masters of the European Union (EU), not just those of euroland,
will apply to Greece
a clause in the 2009 EU Lisbon treaty designed to provide cash for economies hit by natural disasters. (2)

This means that the EU Masters consider that,
due to the fact that they did not criminalise the phenomena of
irredeemable, at least unbacked, paper money, and of fractional-reserve banking,
these phenomena are natural disasters.

Wouldn’t it be more appropriate to consider the EU Masters to be unnatural disasters?

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
digital liquidity & fractional-reserve banking are fraudulent – Let the system collapse now!
Ivo Cerckel – December 2008
http://bphouse.com/honest_money/worthless-digital-liquidity-and-fractional-reserve-banking-are-fraudulent-%e2%80%93-let-the-system-collapse-now/

(2)
Alistair Darling trapped in euro deal

Alistair Darling has agreed to consult directly with George Osborne and Vince Cable as European leaders looked poised to push through a new multi-billion pound bail-out fund part-financed by British taxpayers.

By Edmund Conway and Bruno Waterfield
Published: 10:08PM BST 08 May 2010
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7697471/Alistair-Darling-trapped-in-euro-deal.html
SNIP
The proposal, tabled by Nicolas Sarkozy in an emergency meeting late on Friday night, will involve the creation of a €60bn “European stabilisation mechanism” designed to provide bail-out support for countries which may face similar strain to Greece in the coming months.

It is thought to be focused particularly on Spain and Portugal, both of whose leaders fear an assault by “bond vigilantes” in the market who have scented weakness within the eurozone. The plan will have fiscal implication for all European Union countries, including the UK. The key element is an extension of an existing bail-out package, already used to support Hungary and Latvia.

This involves extending an already-existing Lisbon Treaty clause originally designed to provide cash for economies hit by natural disasters. Under this, the European Commission will borrow directly from markets, with its own finances guaranteed by EU nations – something which would leave the UK public finances exposed if a country fails to repay the loan. It could also impact the UK’s credit rating.

The elections for parliament in the united kingdom of Northern Ireland and Great Britain this week have given no outright majority to any of the three parties.

The smallest of the three parties, the liberal democrats, will decide whether they will form the guv’mint with labour or with the conservatives.

Nick Clegg, the leader of the liberal democrats, is in favour of joining the euro. (1)

As FOA,
the gentleman who pointed out that the Euro Freegold system is designed to withstand the failure of a currency or an economy within the EU,
said a decade ago in the Gold Trail:

The moment England is seen as even a “virtual” member of Euro club; world will jump on gold available at whatever dollar amounts  (2)

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Nick Clegg: We should consider joining the euro
The view that Britain’s economy is a cut above is about to take a terrible battering
Monday, 26 January 2009
http://www.independent.co.uk/opinion/commentators/nick-clegg-we-should-consider-joining-the-euro-1515755.html

(2)
The moment England is seen as even a “virtual” member of Euro club; world will jump on gold available at whatever dollar amounts
( FOA (10/25/01; 17:19:54MT – usagold.com msg#125)
More Thoughts and Comments from the Trail House
in;
The Gold Trail: The Message of an Evolving Market…
http://www.usagold.com/goldtrail/