LOS ANGELES (CBSLA.com) — Attorneys for a California State University, Northridge scientist who was terminated from his job after discovering soft tissue on a triceratops fossil have filed a lawsuit against the university.
While at the Hell Creek Formation excavation site in Montana, researcher Mark Armitage discovered what he believed to be the largest triceratops horn ever unearthed at the site, according to attorney Brad Dacus of Pacific Justice Institute.
Upon examination of the horn under a high-powered microscope back at CSUN, Dacus says Armitage was “fascinated” to find soft tissue on the sample – a discovery Bacus said stunned members of the school’s biology department and even some students “because it indicates that dinosaurs roamed the earth only thousands of years in the past rather than going extinct 60 million years ago.”
“Since some creationists, like [Armitage], believe that the triceratops bones are only 4,000 years old at most, [Armitage’s] work vindicated his view that these dinosaurs roamed the planet relatively recently,” according to the complaint (PDF) filed July 22 in Los Angeles Superior Court.
The lawsuit against the CSUN board of trustees cites discrimination for perceived religious views.
Armitage’s findings were eventually published in July 2013 in a peer-reviewed scientific journal.
According to court documents, shortly after the original soft tissue discovery, a CSUN official told Armitage, “We are not going to tolerate your religion in this department!”
Armitage, a published scientist of over 30 years, was subsequently let go after CSUN abruptly claimed his appointment at the university of 38 months had been temporary, and claimed a lack of funding for his position, according to attorneys.
“Terminating an employee because of their religious views is completely inappropriate and illegal,” Dacus said in a statement. “But doing so in an attempt to silence scientific speech at a public university is even more alarming. This should be a wakeup call and warning to the entire world of academia.”
CSUN spokesperson Carmen Ramos Chandler told CBSLA Armitage was a a temporary hire between 2010-2013 and worked as an electron microscopy technician. She could not comment on the lawsuit as university officials had not yet received the complaint.
The discovery is the latest in several recent – and controversial – soft tissue finds by archaeologists: researchers last November claimed the controversial discovery of purported 68-million-year-old soft tissue from the bones of a Tyrannosaurus rex can be explained by iron in the dinosaur’s body, which they say preserved the tissue before it could decay.
Paul Craig Roberts – former Assistant Secretary of the Treasury under President Reagan, former editor of the Wall Street Journal, listed by Who’s Who in America as one of the 1,000 most influential political thinkers in the world, PhD economist – wrote an article yesterday about the build up of hostilities between the U.S. and Russia titled, simply: “War Is Coming”. In the article, Roberts notes:
As reported by Tyler Durden of Zero Hedge, the Russian response to the extra-legal ruling of a corrupt court in the Netherlands, which had no jurisdiction over the case on which it ruled, awarding $50 billion dollars from the Russian government to shareholders of Yukos, a corrupt entity that was looting Russia and evading taxes, is telling. Asked what Russia would do about the ruling, an advisor to President Putin replied, “There is a war coming in Europe.” Do you really think this ruling matters?”
In January, well-known economist Nouriel Roubini tweeted from the gathering of the rich and powerful at the World Economic Forum in Davos:
Many speakers compare 2014 to 1914 when WWI broke out & no one expected it. A black swan in the form of a war between China & Japan?
Both Abe and an influential Chinese analyst don’t rule out a military confrontation between China and Japan. Memories of 1914?
Billionaire hedge fund manager Kyle Bass writes:
Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations will be stretched and in some cases torn. Sadly, looking back through economic history, all too often war is the manifestation of simple economic entropy played to its logical conclusion. We believe that war is an inevitable consequence of the current global economic situation.
Reagan’s head of the Office of Management and Budget – David Stockman – is posting pieces warning of the dispute between the U.S. and Russia leading to World War 3.
Investment adviser Larry Edelson wrote an email to subscribers entitled “What the “Cycles of War” are saying for 2013″, which states:
Since the 1980s, I’ve been studying the so-called “cycles of war” — the natural rhythms that predispose societies to descend into chaos, into hatred, into civil and even international war.
I’m certainly not the first person to examine these very distinctive patterns in history. There have been many before me, notably, Raymond Wheeler, who published the most authoritative chronicle of war ever, covering a period of 2,600 years of data.
However, there are very few people who are willing to even discuss the issue right now. And based on what I’m seeing, the implications could be absolutely huge ….
Former Goldman Sachs technical analyst Charles Nenner – who has made some big accurate calls, and counts major hedge funds, banks, brokerage houses, and high net worth individuals as clients – says there will be “a major war”, which will drive the Dow to 5,000.
Veteran investor adviser James Dines forecast a war is epochal as World Wars I and II, starting in the Middle East.
Economist and investment manager Marc Faber says that the American government will start new wars in response to the economic crisis:
Martin Armstrong – who has managed multi-billion dollar sovereign investment funds – wrote in August:
Our greatest problem is the bureaucracy wants a war. This will distract everyone from the NSA and justify what they have been doing. They need a distraction for the economic decline that is coming.
What’s causing the slide towards war? We discuss several causes below.
Moreover, historians say that declining empires tend to attack their rising rivals … so the risk of world war is rising because the U.S. feels threatened by the rising empire of China.
The U.S. government considers economic rivalry to be a basis for war. Therefore, the U.S. is systematically using the military to contain China’s growing economic influence.
In addition, it is well-established that competition for scarce resources often leads to war. For example, Oxford University’s Quarterly Journal of Economics notes:
In his classic, A Study of War, Wright (1942) devotes a chapter to the relationship between war and resources. Another classic reference, Statistics of Deadly Quarrels by Richardson (1960),extensively discusses economic causes of war, including the control of “sources of essential commodities.”A large literature pioneered by Homer-Dixon (1991, 1999) argues that scarcity of various environmental resources is a major cause of conflict and resource wars (see Toset, Gleditsch, and Hegre 2000, for empirical evidence).
In the War of the Pacific (1879–1884), Chile fought against a defensive alliance of Bolivia and Peru for the control of guano [i.e. bird poop] mineral deposits. The war was precipitated by the rise in the value of the deposits due to their extensive use in agriculture.
Westing (1986) argues that many of the wars in the twentieth century had an important resource dimension. As examples he cites the Algerian War of Independence (1954–1962), the Six Day War (1967), and the Chaco War (1932–1935). More recently, Saddam Hussein’s invasion of Kuwait in 1990 was a result of the dispute over the Rumaila oil field. In Resource Wars (2001), Klare argues that following the end of the Cold War, control of valuable natural resources has become increasingly important, and these resources will become a primary motivation for wars in the future.
Former Federal Reserve chairman Alan Greenspan (and many world leaders) admitted that the Iraq war was really about oil, and former Treasury Secretary Paul O’Neill says that Bush planned the Iraq war before 9/11. And see this and this. Libya, Syria, Iran and Russia are all oil-producing countries as well …
Indeed, we’ve extensively documented that the wars in the Middle East and North Africa are largely about oil and gas. The war in Gaza may be no exception. And see this. And Ukraine may largely be about gas as well.
The last time there was a series of competitive devaluations … it ended in world war two.
Jim Rickards agrees:
Currency wars lead to trade wars, which often lead to hot wars. In 2009, Rickards participated in the Pentagon’s first-ever “financial” war games. While expressing confidence in America’s ability to defeat any other nation-state in battle, Rickards says the U.S. could get dragged into “asymmetric warfare,” if currency wars lead to rising inflation and global economic uncertainty.
As does billionaire investor Jim Rogers:
Trade wars always lead to wars.
Given that China, Russia, India, Brazil and South Africa have just joined together to create a $100 billion bank based in China, and that more and more trades are being settled in Yuan or Rubles – instead of dollars – the currency war is hotting up.
Multi-billionaire investor Hugo Salinas Price says:
What happened to [Libya’s] Mr. Gaddafi, many speculate the real reason he was ousted was that he was planning an all-African currency for conducting trade. The same thing happened to him that happened to Saddam because the US doesn’t want any solid competing currency out there vs the dollar. You know Gaddafi was talking about a gold dinar.
Indeed, senior CNBC editor John Carney noted:
Is this the first time a revolutionary group has created a central bank while it is still in the midst of fighting the entrenched political power? It certainly seems to indicate how extraordinarily powerful central bankers have become in our era.
This suggests we have a bit more than a ragtag bunch of rebels running around and that there are some pretty sophisticated influences. “I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising,” Wenzel writes.
Finally, trend forecaster Gerald Celente – who has been making some accurate financial and geopolitical predictions for decades – says WW3 will start soon.
Martin Armstrong argued that war plans against Syria are really about debt and spending:
The Syrian mess seems to have people lining up on Capital Hill when sources there say the phone calls coming in are overwhelmingly against any action. The politicians are ignoring the people entirely. This suggests there is indeed a secret agenda to achieve a goal outside the discussion box. That is most like the debt problem and a war is necessary to relief the pressure to curtail spending.
The same logic applies to Ukraine and other countries.
Billionaire investor Jim Rogers notes:
A continuation of bailouts in Europe could ultimately spark another world war, says international investor Jim Rogers.
“Add debt, the situation gets worse, and eventually it just collapses. Then everybody is looking for scapegoats. Politicians blame foreigners, and we’re in World War II or World War whatever.”
After all, we spent trillions in Iraq and Afghanistan, and Americans are exhausted. Not only does a top Pentagon official say we’re no safer – and perhaps less safe – after 13 years of war, but it has now been shown that war hurts our economy.
Never-ending wars are also destroying our democratic republic. The Founding Fathers warned against standing armies, saying that they destroy freedom. They were right …
And they warned against financing wars with debt. But according to Nobel prize winning economist Joseph Stiglitz, the U.S. debt for the Iraq war could be as high as $5 trillion dollars (or $6 trillion dollars according to a study by Brown University.) The U.S. has the largest standing army in history, and treats anti-war sentiment as terrorism.
So it’s up to us – the people – to stop wider war.
What will happen first? Will we fall under the specter of martial law and all that entails? Or, will we experience an economic collapse prior to martial law?
In the present state of affairs, it is very easy to focus on the invasion of America through our Southern border as the Fifth column insurgents make their way into the country in the form of MS-13 as they prepare to wreak havoc on any opposition to the coming takeover. We are also focused on the presence of unscreened immigrants coming into our country and who are failing to be screened for very serious health conditions such as Ebola. It easy to become fixated on things like the NDAA and unconstitutional, permanent detention. We are very focused on the shoot down of MH-17 and preparing for war with Russia. However, what we should be focusing on is the economic collapse which has already began.
Before we continue with the analysis of what comes first, let’s interject some common sense into this analysis. The global elite need a horrific war to rid themselves of the old system and usher in the new system. Out of chaos comes order. This will set into motion the depopulation agenda that will accompany this coming martial law and World War III. We know the globalists seek to maximize profits at every turn. Therefore, one should ask themselves the question, “How can they globalists make the most money as they usher in the New World Order? The answer is simple, if they want to realize maximum value for their efforts, they should steal as much money from the American people as possible, before collapsing the economy.
America only has to look at three economic indicators to know that we are in a lot of trouble, The budget deficit is $17 trillion dollars, unfunded (partially or otherwise) mandated social programs constitutes another $222 trillion dollars and the credit swap derivatives total between $1 quadrillion dollars to $1.5 quadrillion dollars. Based upon these numbers, America has clearly been set up to fail.
When we look at Social Security, Medicare, Medicaid and all the government programs that we all take for granted, the price tag is a whopping $222 trillion dollars. These numbers are going to be exacerbated and grow exponentially because the bulk of the baby boomers are entering retirement age. Even if we took every single penny that the federal government takes in and devote it to paying off these social programs, it would take 111 years to pay off this debt.
In the United States, credit swap derivatives created national debt totals of over one quadrillion dollars. That is one thousand trillion dollars! The entire GDP of the planet is estimated at $66 trillion dollars. And somehow, in the infinite wisdom of Congress in 2008, we falsely and naively believed that a $750 billion transfer of wealth (i.e., Bailout #1) was magically going to save the economy and the collective futures of the American middle class. In short, the debt created by futures speculation is approximately 16 times greater than the sum total of the entire wealth on the planet! And we think we are going to climb out of this? We could fund 1,000 bailouts and the eventual outcome will be the same, slavery by debt. We are being held in place, while our financial assets are being separated from our soon-to-be dead corpses.
The fruits of the labor of young adults has already been transferred to the elite.
In a part of the dead American Dream, we used to tell our children, “Study hard, go to college, get a degree and you will get a good paying job in your field. This former guidepost designed for preparing young people to successfully enter adulthood, should no longer be held up as an ideal. Please consider the following:
The number of Americans in the 16 to 29 year old age bracket with a job declined by 18 percent between 2000 and 2010.
Incomes for U.S. households led by someone between the ages of 25 and 34 have fallen by about 12 percent after you adjust for inflation since the year 2000.
In the United States today, 317,000 waiters and waitresses have college degrees.
One poll discovered that 29 percent of all Americans in the 25 to 34 year old age bracket are still living with their parents.
Young men are nearly twice as likely to live with their parents as young women the same age are.
Overall, approximately 25 million American adults are living with their parents according to Time Magazine. And this is because they cannot find decent work. President Obama tells us that our economy is on the rebound (after being robbed blind by the bail outs). However, the real unemployment statistics tells a far different story.
When I was a third grader in Mrs. Strong’s third grade classroom, we conducted an experiment in which we had to determine how long it took for water to evaporate from a small glass. As we were in the process of watching the water evaporate from our glass, Mrs. Strong asked us where the water went? From this children’s science experiment, we learned that the water did not just go away, it went somewhere in real form and would return to us in the form of rainfall.
Look at the following chart below which measures price increases for basic essentials from January 2000 to March 2014. The numerical differences of what it costs to be an American in this economy is dramatic!
Where did the money go? Most people with their lack of knowledge of economics will look at this chart and answer “inflation” eats up our money. What our nation’s sheep is never taught is how to answer the question, what really causes inflation? In our schools, we teach the inflation is just a part of painful living, just like getting colds. Nothing could be further from the truth. It is contrived and its purpose is to control the people through debt slavery.
The first place to look for these price spikes is the Federal Reserve. Between the usury fees and interest they charge us for the “right” to use their money, our dollar is actually worth about 94 cents by the time we receive the dollar. The minion banks of the Federal Reserve pay you less than one percent to house your money, that they get to loan out. All things being equal, you losing about 5% per year in real buying power. This is a hidden tax that you pay to the elite which amounts to about 5% per year. As Mrs. Strong would say, the money did not just evaporate. It went somewhere.
What has chronicled above is what I label as indirect theft. Nobody is walking into your bank and stealing your money in these examples. Simply, financial practices and economic controls are created to slowly erode our wealth and transfer it to the elite. However, things are changing as we are transitioning from indirect theft to a very stark from of directly stealing the people’s assets by the elite.
I have chronicled in a recent article that JP Morgan Chase and HSBC are making it almost impossible to wire money out of their banks into overseas accounts. This is the same as putting a bullseye on your eye money as they plan to seize as much as possible and they don’t want you to be able to money your money.
Over 50 percent of all stocks and bonds are owned by just 1 percent of the U.S. population. When the Stock Market crashed in 1929, who lost money? The elite already had their money parked on the sidelines when the crash came and when it did where did the money? That money went back into the hands of the people who created this Ponzi scheme. The same thing is about ready to happen again.
The elite are preparing for one last great garage sale. They are preparing to take every resource at your disposal.
In no civilized country in the world do the banks have the right to steal money from citizen depositors. However, in America, this beta test was already being accomplished as ex-Goldman Sachs CEO and ex-senator and ex-governor, John “the Don” Corzine, stole 1.2 billion dollars from secured deposits from MF Global, lied to congress about his actions and today is enjoying the fruits of his thievery.Let’s not forget that the Seventh Circuit Court of Appeals who just ruled that banks can steal the money of its depositors and it is legal! This would have been a SHTF moment in every other Western country, but Americans are taking this grand theft on their backsides, sipping a beer and bemoaning the performance of their favorite NFL team. THE ELITE HAVE JUST ANNOUNCED THEIR INTENTION TO DIRECTLY STEAL YOUR WEALTH BY USING THE FORCE OF LAW.
Workers in modern nations have always had retirement as an incentive to work towards. Soon, the government will control all retirement accounts. Furthermore, if you live in America, you are not getting the best pension package compared to other Western nations as America ranks last in overall pension benefits. And this is in the backdrop of the Obama Administration, there are clear plans to seize your 401k pensions. This planned theft by the Obama Administration will prove to be a devastating blow to the American middle-class and will provide a knockout punch to any hope that the middle class clings to when it comes to transmitting wealth to their children and we are just a short time from realizing this inevitability. At least in Greece, the people rioted when the Goldman Sachs run government stole the people’s pensions to pay down the bankers part of the derivatives debt. Conversely, Americans are merely acquiescing and passively accepting the fact that Obama and his minions are planning to steal your bank accounts, your social security, your public pensions and your 401k accounts and the process has already begun with Treasury Secretary Lew as he is borrowing against select Federal retirement accounts. Obama has announced the “MYRA”. The theft of American home mortgagees has been going on for sometime. When one adds up the totality of what is happening, it is safe to say that retirement accounts will be made to fail.
The soon-to-fail retirement accounts is one liability that the elite will soon get to stop paying on, but not before they initiate another round of bailouts designed to save the retirement accounts from the conditions that they have created.
Following the collapse of the retirement accounts, we can expect a cyberattack upon the banks that will cause them to fail. Interestingly, FEMA and DHS practiced for such an attack two weekends last October. Following this attack, bank accounts will be frozen and eventually, you will receive pennies on the dollar for what you formerly had in your account. Remember, money does not evaporate, it goes somewhere.
Once the economy is collapsed, martial law can be legitimized, and WW III can commence, and all the things that we are focused on now, will fall into place.
You are probably asking what can you do? The short answer is nothing! You can somewhat soften the blow by getting your money out of the bank as much as possible. Stop shopping the WalMarts the Kmarts and the other slave marts and shop locally. In reality, there is nothing that you can do to stop this coming train wreck. My advice is to focus on your relationship with God.
It is now being reported that Patrick Sawyer, whose sister also died from Ebola, was allowed on two ASKY Airlines flights in Liberia while infected witht he deadly virus, Ebola, which painfully kills 90% of its victims.
Patient Zero, Patrick Sawyer, had a layover in Ghana then changed planes in Togo and flew to an international travel hub of Lagos, located in Nigeria. Nigeria is also the site of an Ebola outbreak. “The dad-of-three died five days after arriving in the city”. His sister, with whom Sawyer had contact, died of Ebola. He should never have been allowed to board any plane.
A desperate search is on to find the hundreds of passengers who flew on the same jets as Sawyer. A total of 59 passengers and crew are estimated to have come into contact with Sawyer and effort is being made to track each individual down. There is an inherent problem with this “track down”. Presumably, some of the passengers connected to other flights, which known to be the case. Let’s just say for the sake of argument that only 20 people, a low estimate given the nature of the airports that Sawyer was traveling in, were connecting to other flights, the spread of the virus would quickly expand beyond any possibility of containment because in less than a half a day, nearly a half a million people would be potentially exposed. Within a matter of a couple of hours, Sawyer’s infected fellow travelers would each have made contact with 200 other passengers and crew. Hours later, these flights would land and these people would go home to the friends, families and coworkers across several continents.
The fact is that the window for tracking down Sawyers initial point of contact with the traveling public, has closed. Patient Zero has tipped the very first dominoes in what could prove to be the worst epidemic in human history.
United States health officials say they are not worried because Ebola is transmitted through exposure to bodily fluids.
“…Witnesses say Sawyer, a 40-year-old Liberian Finance Ministry employee en route to a conference in Nigeria, was vomiting and had diarrhea aboard at least one of his flights with some 50 other passengers aboard. Ebola can be contracted from traces of feces or vomit, experts say”. I would submit that it is time to get worried. And given the fact that we now know that Ebola detection kits have been deployed in National Guard unit kits in all 50 states.
We are either looking at gross negligence or a well-planned conspiracy.
Last week, the main drivers behind the gold prices were the situation of the Malaysian Airlines jet downing in Ukraine and Israel’s invasion of Gaza. For now it seems that the other hot-spots especially those in Syria, Libya and Iraq have been temporarily forgotten.
On Thursday, gold prices fell on Comex once again, in what was yet another bout of concentrated selling on two occasions. It is estimated that $1 billion worth of gold futures were sold in a matter of seconds on the open of the market. However, despite posting an overall decline for the week, the price of gold rebounded strongly on Friday even though the US dollar gained against most of the other major fiat currencies. At the time of writing, the price of spot gold is trading above $1310 an ounce.
As Western media continue their propaganda regarding current geopolitical tensions, little attention has been paid to some major events that are developing in the global monetary system. And, while the U.S, and the European leaders impose more sanctions on Russia, their very move is prompting Russia to reduce its dependence on the U.S dollar.
Last week, U.S State Department spokeswoman Marie Harf gave the press a truly comical performance. After blaming Russia for the Malaysian air disaster and claiming the U.S. has evidence that Russia intends to deliver powerful rocket systems to pro-Russia rebels in Ukraine, Ms. Harf declined to provide details about the systems or about how that conclusion was reached. And, when questioned by Associated Press journalist Matthew Lee over how the conclusion was reached, she attempted to ignore his questions and instead asked for other questions. But, Lee politely demanded a response.
“Marie, I think that it would be best for all concerned here, if when you make an allegation like that you’re able to back it up with more than just ‘Because I say so,” Mr. Lee said.
Ms. Harf disagreed with the assertion: “That’s not what I said. It’s based on intelligence information. It’s not because I said so.”
Recently, a meeting between the leaders of the BRICS countries resulted in an agreement on a new financial system and currency pool.
BRICS is the acronym for an association of five major emerging national economies. Brazil, Russia, India, China, and South Africa. The grouping was originally known as “BRIC” before the inclusion of South Africa in 2010. The BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and global affairs; all five are G-20 members.
As of 2013, the five BRICS countries represent almost 3 billion people with a combined nominal GDP of US$16.039 trillion and an estimated US$4 trillion in combined foreign reserves. As of 2014, the BRICS nations represented 18 percent of the world economy.
Brazil is a large country, but it is a relatively poor nation.
While Russia is rich in oil and natural gas, it does not have much else going for it, and its economy is still quite small in comparison to the United States.
Although India has a population of well over 1 billion, it is a relatively poor country, plagued with bureaucratic regulations and a terrible currency. However, it is the second largest importer of gold in the world.
On the other hand, China is fast becoming a force to be reckoned with. The developments that have taken place there in the last 35 years have been astonishing, resulting in one of the greatest gains in wealth in history over such a short time span. Hundreds of millions of people have been lifted out of extreme poverty.
As for South Africa, there is not much to say. While Western leaders applaud the country for its so called democracy, they fail to mention that nation has one of the most corrupt governments in the world and the country is plagued with crime. Armed robberies, housebreaks, hijackings, murder and rape occur on a daily basis. Electricity prices are one of the highest in the world and so is the unemployment rate. Property rights have been weakened there, and the country is quite insignificant in global economic matters. And, South African leaders seem to know nothing about wealth creation and are more intent on the redistribution of wealth instead of the production of wealth.
Perhaps, South African leaders should take a lesson from Adam Smith who outlined in his book the Wealth of Nations how great empires depend on an educated, productive and prosperous citizenry. Or they should follow the policies of successful countries such as China, Singapore and United Arab Emirates instead of emulating the ideologies of leaders such as Robert Mugabe of Zimbabwe or Hugo Chavez of Venezuela. Nevertheless, what is significant about the BRICS nation is that they have established a new development bank and a reserve fund set up to offset financial crises.
The BRICS Development Bank – with an initial US$50 billion in capital – will be not only BRICS-oriented, but invest in infrastructure projects and sustainable development on a global scale. The model is the Brazilian BNDES, which supports Brazilian companies investing across Latin America. In a few years, it will reach a financing capacity of up to $350 billion. With extra funding especially from Beijing and Moscow, the new institution could leave the World Bank in the dust.
And then there’s the agreement establishing a $100 billion pool of reserve currencies – the Contingent Reserve Arrangement (CRA), described by Russian Finance Minister Anton Siluanov as “a kind of mini-IMF”. That’s a non-Washington consensus mechanism to counterpunch capital flight. For the pool, China will contribute with $41 billion, Brazil, India and Russia with $18 billion each, and South Africa with $5 billion.
Since its first summit in Ekaterinburg, Russia in June 2009, BRICS has grown into what it is today: an increasingly consolidated geopolitical alliance of powerful countries bent on neither allowing the Western powers to call the shots in today’s world, nor to threaten them. Furthermore, it will not allow the West to impose its currencies, and its debt-based economic philosophy on everybody.
Meanwhile, China continues to develop the yuan into a global currency. Only last month China’s central bank said it plans to designate clearing banks for its currency in Paris and Luxembourg, as the two financial centres battle with London to become the leading European offshore yuan-trading city.
The French and Luxembourg central banks have signed agreements with the PBOC allowing for greater cooperation in the oversight of their domestic yuan market. Also, Singapore and Sydney are also vying for a significant share of the global yuan market, which is expected to expand rapidly along with China’s fast-growing economy.
In addition to designating a clearing back in London earlier this month, the PBOC also announced on June 18 that the yuan can now be exchanged directly for British pounds in Shanghai’s foreign-exchange market. Previously, traders have had to exchange the currencies through the U.S. dollar, which added to transaction costs.
In 2013, yuan foreign-exchange trading in London reached $25.3 billion a day, up 50% compared with 2012, according to data released earlier this month.
China’s currency has become increasingly popular in settling total trade. In the first three months, 18% of China’s total trade, or 1.09 trillion yuan, was paid for in yuan, up from 14% in the fourth quarter of last year, according to Bank of China. That compares with just 1% of China’s total cross-border trade five years ago.
For the long term, China wants to turn the yuan into a global reserve currency that is used for investment, trade and loans, as are the dollar and euro. A widely accepted yuan could help Chinese companies alleviate foreign-exchange risks. We may even see a gold backed yuan!
The result of these developments will ultimately reduce the hegemony of the US dollar which in turn will lead to a loss of faith in the greenback. But, in addition to this, I expect geopolitical tensions to deteriorate in the coming months. This will prompt Western governments to further debase the major currencies of the world and destroy the wealth of the middle class.
The end game will be an economic collapse and the destruction of our current monetary system. However, countries and individuals that have reduced their dependence on fiat currencies and have followed a policy of sound money that includes holding physical gold will survive this coming crisis.
Gold prices remain above the support level at $1300/oz. as well as the 200 and 50 day MA. Price action looks to be neutral to slightly positive in the short-term.
Dr. Ron Paul, former Congressman from Texas, Presidential candidate, and libertarian spokesman, declared on CNBC recently that he sees a stock market crash coming. Paul traces back what he believes is a stock market bubble to inflationary policies conducted by the Federal Reserve:
I think there’s plenty of inflation, but my definition of inflation is a little different than the rest, because I think prices going up in the different areas is a consequence of inflation. “There’s a lot of inflation in the stock market. I think there’s a bubble there.”
Paul is a student of the Austrian School of Economics, which contains Ludwig von Mises and Friedrich Hayek as a couple of its most brilliant thinkers. The Austrian School has long been critical of central banking; and Paul is no exception, having authored his own book called “End the Fed.” Dr. Paul thinks that the current interest rates are faulty and artificial, caused by the Fed. In turn, says Paul, investors make bad decisions based on the artificial interest rates, resulting in bubbles:
“One thing we have to remember is that when you get false information from artificially low interest rates, that mistakes are made, they’re inevitable. You make mistakes even when you have market rates of interest. But when the market rate of interest is so low for everybody, there’s a lot of mistakes, and that’s why you have the bubbles, and that’s why you go through the catastrophe we had in ’08 and ’09, and I think the conditions are every bit as bad as they were in ’08 and ’09.”
Paul remains steadfast in his belief that an America without a Federal Reserve would be a brighter America. He described the way investors are forced to hang on to every word of the Fed in the current environment:
“One thing you have to do is get rid of the Fed, because, you know, we’re anticipating what word, what phrase, what hyphen is going to be said, so that they can spin, you know, spin that, and the markets will go one way or the other, shifting values of tens of billions of dollars within minutes. That is just a very, very inefficient way to operate a market, to have one individual make one statement, and put so much weight on it. In short term, it’s very, very real, because people are going to make it or break it, you know, on this interpretation. But that has nothing to do with the free market, nothing to do with building capitalism, and savings, and the things necessary to have a growing economy.”
What do you think? Is Ron Paul right to think that a crash will be forthcoming? Or will the stock market continue to plow ahead as it has done since 2009?