Tag Archives: Gold

£1 Is Worth £1 . . . Says Who?!

As I survey the global financial scene I become more bemused by the sheer lunacy of it all. Barnham and Bailey would have been quite envious of the antics I am sure. But let me start with a question:

Q. What is the difference between Willie Sutton, an ‘illegal withdrawals specialist’ and global banks, also ‘illegal withdrawals specialists’?

A. One robs banks and the other robs people!

Willie robbed banks because they had something of value and presumably banks rob us because our money is of value. But what is that value I find myself asking?

If we go shopping to buy food we buy by weight and so we know what we are buying. Before pre-packaging, weights and scales were used to assure us that we were getting a correct amount of goods for our payment.

The weights were of predetermined amounts, pounds, ounces etc. and they were regularly checked by government officials to ensure they had not been corrupted. This gave us confidence that what we were buying was authentic and that we were not being ripped off.

If we apply these ground rules to money, it really becomes quite scary to my simple mind. Originally money was assessed in terms of how much was needed to buy a piece of gold. You knew where you stood because you could trade your paper or coins for gold and be sure of its value.

Then in 1972 President Nixon took the dollar off the gold standard and the true value of money suddenly became very vague. For my part, I then began to value my money in what I could buy with it. As an example, in that year I bought my first house for £5,000. Today it would take £500,000 to buy that same house!

In 1971 there were 240 pennies to one pound and they were worth something. In that same year our currency ‘went metric’ and that gave us just 100 (pence) pennies to the pound . . . each of which is now quite worthless!

I’m no economist but rather than leaping for joy at how much my wealth has grown I am concerned at how much the purchasing power of my money has fallen. After all, if the house is how I measured my money in 1972, £5,000 was a good deal. Today the value of my money has reduced a hundred fold, because I now need 100 times as many pounds to buy that same house, which has not changed one iota.

It is still bricks and mortar, with a slate roof but in 1972 I could afford to buy it, whereas today a person of similar age to then cannot. The value of our assets have not gone up but rather the value of our money has plummeted! With a 100 fold reduction in the value of my 1972 pound it is now worth one penny which, as we all know is worthless.

The simple reason for this catastrophe is that when money was tied to something stable and secure, like gold, its supply was limited and so it restricted ‘economic growth’, which was a bad thing for banks and economists. The answer to ‘freeing it up’ was to disconnect its value from gold and for the banks themselves to guarantee the value of money. All we had to do was simply put our trust in bankers, (as we did with those government officials who checked the weights and scales).

A 100 fold drop in the value of the pound in my pocket tells me they are not doing a good job. What is even more lunatic is that we all have to work a lot harder now than I remember in 1972. We are getting stressed out because the value of what we are working for is falling through the floor and we have to borrow to make up the difference.

Is it any wonder we have a global banking system that is bankrupt and about to prove again that it is totally unfit for purpose as we face another imminent collapse, just 7 years after the last one? This is the prognosis of a growing number of eminent economists and clever money people who are now predicting the crash will happen next month or in October. (History shows that the 1929, 1987 and 2008 crashes all happened around this time of year!)

We now know that when it happens the banks will rob us of our money to cover themselves. The legislation is already in force. So it makes sense to take our money away from them and hoard it. Apparently they are wising up to this and there is now talk of legislation to outlaw the holding of cash.

This level of connivance and control, over something that is becoming ever more worthless by the day, is what led to the French Revolution. A subject I shall be returning to soon.


Until the next time


Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes

Austerity . . . That Hidden Charge!

Austerity is not a phenomenon of the 21st century. The robust empires of Mesopotamia, Rome, Bourbon and Britain failed under crushing debt that drowned economic output, destroying a healthy financial environment. If we go beyond the surface we can better understand the endemic cancer within debt that guarantees this constant failure.

97% of the world’s currencies are provided by private banks who charge us for using their money, rather than governments doing the job for free. They argue that it is ‘unhealthy’ for politicians to be involved in the supply of money and therefore the job of the banks.

There is however an equally ‘unhealthy’ aspect to the present arrangement, as banks charge compound interest on the money we use. This has been a bone of moral contention for centuries as religion decries the immorality of interest earning interest because compound interest quickly escalates debt.

If we borrow £20,000 at just 5% and compound it monthly, the amount repaid over 10 years would be £32,940.18 and a staggering £54,252.80 after 20 years! (Source math.com)

When you consider the trillions of dollars printed into the global system since 2008 is it any wonder we are now suffocating in debt! Currently this money is at low, or zero interest but the Federal Reserve are now talking about raising interest rates. Given these astronomical amounts the effects of compound interest on the economies of many countries will be crippling.

Here we get to the source of the immense power the monopoly of global banking has achieved. With debt comes obligation, guaranteeing them the ability to impose whatever terms they wish, of which compound interest is just one facet. ‘Austerity’ is another, as banks argue that when a borrower gets into difficulties they must “cut their coat”, irrespective of the banks contribution to those difficulties.

Armed with this logic they insist that borrowers forgo the expense of ‘non-essentials’, to meet the interest repayments on the money owed. Here lies the growing antagonism between lender and borrower, as it is banks and governments who define what constitutes ‘non-essentials’.

Government’s sign up to ‘Austerity’ in order to get the money, knowing full well that banks have little time for the social needs of Society. Whether it is healthcare, education, social benefits, water and energy supplies or state owned assets, they can be drastically reduced or sold off (at seriously discounted prices) as a condition of the debt agreement.

The most public example of ‘Austerity’, as a hidden charge within sovereign debt, was when the UK gold supply was disposed of by Gordon Brown between 1999 and 2002. This was the result of pressure placed upon him by Goldman Sachs, who were significantly short on gold and in danger of going bust. Brown was obligated to come their aid, (because of our indebtedness), which he did spectacularly by firstly advertising his intention to sell our total gold holding and secondly, offering it for sale by auction.

These were two unprecedented actions, deliberately calculated to drive down the gold price by making the markets aware of government intention to sell. The net result was that our gold was sold at between $256 and $296 an ounce, subsequently soaring to an astounding $1,615 by 2012.

Goldman Sachs were saved by the sale of one of our state owned assets at a derisory price, providing a nice little earner to boot! Added to which an unsuspecting public were totally unaware of a subterfuge that just six years later would be perpetrated upon them again in an even more abusive fashion by ALL the banks!

This hidden charge of ‘Austerity’ is an ongoing abuse, as demonstrated only a couple of weeks ago, when our government publicly announced its intention to sell its stake in RBS at a loss, tipping off the markets yet again to bring down the price, reportedly, with the full approval of Rothschild’s.

As both governments and bankers continue to conspire to keep the reality of their dealings out of the public eye it is becoming increasingly apparent that the true cost of private banks supplying our money is now becoming prohibitive. We are not only expected to pay compound interest for its use but also hand over our national assets and quality of Life as well, in the name of ‘Austerity’.

The severe treatment being forced upon the Greek people now is reminiscent of the loss of dignity suffered by the German people, forced into unconditional surrender at the end of WWI. This barbaric treatment resulted in a horrendous backlash, meted out to an unsuspecting nation by a maniac whose power came from the robbed dignity of the people.

To ensure history does not repeat itself this time, is it not right for all of us to stand with the Greek people and shout at our governments “ENOUGH. FOLLOW THE GREEK LEAD” . . . that we may once again live our lives with dignity.

Until the next time


Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes