The Europeans have returned from their long summer vacations only to discover their banks went bankrupt. Even the Rothschild owned BNP Paribas of France could not borrow money from the New York banks.
But the Rothschilds did not let that stand.
Later in the week Canadian finance blogger Harvey Organ (who is too technical for most readers) announced that money in large doses was flying out of America to Europe. And that the FED was selling paper gold and silver to push bullion prices down to make the euro and the dollar look good. Europeans have had massive runs out of their banks into gold. Austria is going to restrict gold buying. Bob Chapman says that is great. People will go to the black market for gold and drive premiums even higher.
For several weeks I have been telling you that Germany was going to refuse to bailout Europe but that Bernanke would print trillions of dollars and swap them with the Europeans for their bad assets. At one point, the Europeans had 16 trillion dollars in bad assets according to one expert. But Bernanke bought 6 trillion dollars as I previously mentioned. It appears Helicopter Ben will have to print a lot more money. Trillions of dollars more.
The Europeans want to wait until 2013 to change their laws so their Central Bank is more like the Federal Reserve. Currently they cannot monetize public debt like Bernanke does. The debts of Greece, Italy, Portugal, Spain and Belgium cannot be bought by their Central banks but are required by law to be bought by their banks and insurance companies.
And the Europeans still do not have one single euro. They have 17 separate euros. When Italy or Greece pull out of the Euro, you can see on the euro bank notes which country originally printed that euro. If Italy did, then you are handed lira that will buy nothing.
Geithner flew to Poland to meet with the 17 eurozone leaders. He wanted them to use fractional reserve banking to solve their problems. Borrow 400 billion dollars from Bernanke, deposit it as an asset, loan out 20 times that much or 8 trillion dollars to buy euro bonds to be exchanged for national debts and toxic assets. Problems solved. Except for Hyperinflation and food riots because nobody will have enough money to buy anything to eat.
The Europeans have decided not to move quickly to 2013 rules. They also decided to postpone their September showdown to October over Greece.
Let me explain why 200,000 Greek taxi drivers are extremely hostile. They have the same rules as New York City. To operate a cab you need a medallion which in Greece costs as much as a house. The Greek government sold the taxi franchise to a German company without paying the cab drivers for their medallions. The cabbies will not give up.
There is talk from Max Keiser of a stop gap loan of 500 billion dollars. That would only be a down payment to keep the French (i.e. Rothschild) banks open. In fact Keiser said it only took one day for America to respond to the Rothschild command for an American Bailout.
The Rothschilds owned Paribas is rumored to buy the government owned Soc Gen (Societe General.) The Rothschild owned Santander Group (a merged Spanish-Latin American drug dealing bank moving into retail banking as far north a England) could buy Credit Agricole, the other big French bank in trouble.
Gee. Wouldn’t it be nice to live in a country where all the banks are owned by the Prince of Darkness?
Of course all those Bernanke Bucks will come at a price. Think of yourself looking forward to a local drawing where first prize is a new car from a dealer in town. He is paid through advertising and not through the charity’s ticket sales. You have half of the 1,000 tickets sold. The car is worth £20,000 so you figure each ticket is worth £20 even if you only paid one pound each. You are on the phone trying to sell your tickets to a businessman when they announce on the radio the good news that 100,000 more tickets were printed and sold. You are now out the £10,000 you could have sold your tickets for plus the £500 you paid in. That is what will happen to Americans and Europeans when Bernanke can no longer print money.
Hint: Bernanke will not stop printing money until the dollar, the euro and the pound will not buy anything at all. But by then the Rothschilds will own everything including your children.
If you had changed your name to Rothschild just think how wonderful life would be. You could have Bernanke print 500 billion dollars every time you needed it.
Silver Update: If the Europeans can keep things going through October, then my prediction that silver would go straight up in November might be right.
The FED is pumping billions of dollars into shorting gold and silver. They want to keep silver below $50 an ounce. They will get killed covering naked shorts when silver goes above $50. That UBS trader who lost 2 billion dollars was naked shorting silver meaning he was selling paper silver and had no bullion to deliver.
The point I want to make is this:
After silver goes through $50, the FED will continue to print dollars to sell silver short to no avail. Bernanke has paper but no silver and no gold. As soon as everyone realizes what we do that Bernanke will print money until the dollar goes to zero value, then everyone will head for the exits. There will be no sellers of bullion because everyone will be getting out of paper dollars and euros to get into gold and silver bullion. That means there will be no resistance (i.e. no sellers) and silver will go straight up. At this point, the only safe exits are silver and gold bullion plus select mining shares.
My Prediction: When silver breaks $53 an ounce, there will be no resistance and the price will go up, up and away.
This is your last chance to get out of dollars, pounds and euros.
Hugo Chavez Update: He has not even seen the first ten tons of his 211 tons of gold. The Dutch have just now started to ask serious questions of their Central Bank as to just where their gold is. I might add that many people inside the Dutch government read Bob Chapman’s news letter.
If they do not have Mr Chavez’s gold, can you trust those same bankers to look after your money?
A NOTE OF CAUTION: I am not a financial adviser. Nor do I know your situation so please consult someone who is a professional before making any decisions.
I liked this writer. Too bad he is moving his blog
due to some AOL Huffington Post dispute.