US dollar vs the gold it could be backed with

If the RE bubble is bursting, mightn't a few banks be in jeopardy?

 

Anthony Sampson writes, in "The Changing Anatomy of Britain", Random House, New York, 1982,



Eurodollar Empire

"Today, together with allies on the island of Manhattan (Britain’s most important piece of real estate), the British Empire controls the entire $1.5 trillion Eurodollar financial market, another $300-$500 billion in the Cayman Islands, Bahamas, and $50-$100 billion in the Hong-Kong Singapore "Asia-dollar market". . . . Consider the $1.5 trillion Eurodollar market an "outlaw" market in the U.S. dollars over which this nation has no control. Here control and profits are overwhelmingly in the hands of London banks, who set the terms of lending and the interest rate on this mass of American dollars in relation to the London Interbank Borrowing

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Rate (LIBOR) . . . U.S. banks like Citibank (New York City), on whose board of directors sits the powerful British financier, Lord Aldington, collaborate openly in this market. At the same time, British banks including the known central bank for the world’s drug trade, the Hongkong and Shanghai Bank, pour into America to devour U.S. banks. In 1978 the Hongshang (Ed.--Hongkong and Shanghai Bank) took over New York’s Marine Midland Bank, the state’s 11th largest commercial bank. . . The British also control the creation of American dollars. While Federal Reserve Board Chairman Paul Volcker tightens credit against the domestic economy, British-controlled banks in the Cayman Islands (such as the European American Bank--Ed.) a British possession 200 miles off Florida, and in the Bermudas and a dozen other "free banking" computer terminals create hundreds of billions of American dollars. How is this done? There are no reserve ratios or other restrictions on the creation of dollar-denominated credits in the Empire’s "free enterprise" banking. A $1 million bona fide credit coming from the United States can be turned into $20 to $100 million in dollar-denominated credits as it passes through the British system without reserve ratios."*

 

Currency and Gold:

http://www.apfn.org/apfn/reserve.htm

Each day, representatives of four other London banking firms meet in the offices of N.M. Rothschild Company in London to fix the price of gold for that day. The other four bankers are from Samuel Montagu Company, which ranks Number 5 on the list of seventeen London merchant banking firms, Sharps Pixley, Johnson Matheson, and Mocatta and Goldsmid. Despite the huge tide of paper pyramided currency and notes which are now flooding the world, at some point, every credit extension must return to be based, in however minuscule a fashion, on some deposit of gold in some bank somewhere in the world. Because of this factor, the London merchant bankers, with their power to set the price of gold each day, become the final arbiters of the volume of money and the price of money in those countries which must bow to their power. Not the least of these is the United States. No official of the Federal Reserve Bank of New York, or of the Federal Reserve Board of Governors, can command the power over the money of the world which is held by these London merchant bankers. Great Britain, while waning in political and military power, today exercises the greatest financial power. It is for this reason that London is the present financial center of the world.

 

Came back to ET after about 6 months of inactivity, ran a search for my handle and see some still remember me. Thanks. No, it was not me, and I'm not sure if I'd agree - I have to go back and read what was said. But yes, I did fight for EMH and yes, I do believe socialism rules.
Take care.
PS as for "academia worship", I think you are wrong there. I appreciate the tools my PhD gave me and the level of understanding, but I've always been about the application of such knowledge which is foreign to many in academia.

 

Vlad,

I don't normally highjack threads, but I have to STRONGLY assert that socialism is a failed attempt to equalize things that cannot be brought into equilibrium, namely, human potential.

Can you cite ONE example where this has even romotely worked in ANY non-agricultural society in ANY time in HISTORY.

I anxiously await your response

Regards
Oddi

 

I hope this will not reignite the whole debate again, but since you were so eagerly anticipaing my reply, I'll make an exception . You do have a point that it may not work flawlessly in its extreme form. But in reality it's more like a specturm and I think the US would be a lot better off if it had more of socialism in the mix (it already has quite a bit, by the way, for those who aren't aware of this fact.)
If you are looking for an example of that in reality, I'd point to Austria. It's got a healthy mix of capitalism and socialism. Go for a visit there and if, God forbid. you have to attend a hospital there, you'll see what I mean. You may actually enjoy the visit, unlike those to HMOs here. Same applies to the educational system.
Cheers.
Vlad.
PS No more posts on this topic from me. I've got better things to do.

 

anyone read 'wealth of nations?'

 

I'm sorry to interject, but I can't pass this one up: Yes, socializm does indeed "rule," like a master rules a slave. Socializm, Grasshopper, is slavery.

 

hear, hear.