MOTHER SPIRIT - "Clency, you more or less repeated what SERARA and MONJORONSON have been saying for years about this new era of financial difficulties we are entering into. Be assured the real reason for this double indemnity is not the USA or the EU, but due to the decision China took last year to let the Yuan float against the dollar and then rescind all use of gold backing for the Yuan anymore. Up until February of 2012, China paid off its debts with gold reserves and the world more or less gave a sigh of relief, and then suddenly renigs on that deal mostly because the USA refused to extend the favor in return. How this gets straightened out is for the USA to start paying china back with gold reserves too, but the USA is angry with China over what they do in the WTO and that is to claim double what they are owed without showing the receipt of the lading done up in specific lists of details of what they sold to determine they are really owed that much. The USA says they are being hammered with debt relief problems only China has and they will not play that game."
SERARA - "Clency, as usual you are fictionalizing the problem somewhat. What you write is written from my critique given in the year of 2004 in the summary publication by Daniel Raphael. In those days we saw the dollar collapse as so serious that we had to interven immediately to save the world's financial stability. Now it appears that the Chinese Yuan is strong enough to take some of the heat of a collapsing world financial system. If that happens much of what you suggest will happen is unlikely. The reason is that the Yuan is now out of the trouble of the WTO, which China does not like to operate under anyhow, and the USA and China will eventually agree they need set up their own control mechanisms, and conclude a trade deal OUTSIDE OF THE WTO. That will thrown the American dollar out the window briefly and the Yuan may become t he preferred currency, but China cannot maintain that pressure on the Yuan simply because, while they have lots of gold, their gold standard becomes subject to so much inflation, the Yuan collapses and the dollar renews itself as the currency of preference for the world to trade with.
"This seems far fetched to Ron, but I am not silly as he is at times, but Ron knows something you do not Clency. He sees the world as a unit of pests which make their own nest of problems in search for a profit. Ron feels the profit motivation will never cease, but it will abate, and when it does, the matter of food and water and energy becomes more or less a given in supply chains that are reinvented by man to keep civilization working somewhat. I happen to agree with him in this completely. But he is a wizard in that he also suspects that the United States need only call on Breton Woods Agreement we talked a lot about a few months ago, and now everybody forgets it again. Breton Woods Agreement is the back bone of the WTO and as such will force the WTO? to understand it must give credence to the US dollar because they have all agreed to use it instead of the British Pound Sterling to buy goods on the open market. It was good then, and it is good now, to do so.
"We are of the opinion, that Ron knows enough to split the difference between what you say and what will happen. There will be trucking disruptions to deliver goods. Inflation will skyrocket. Money for lending becomes very scarce. And so on. But be caring to note that the USA still retains the power of the US dollar and its credibility because the Magisterial Sons will back its financial system with enough gold to stop the run on the US currency we all call the dollar.
"The Magisterial Mission will provide enough gold liquidity to stop a run on the dollar and force nations states like China to fold its tent and stop borrowing money from the USA but be forced to pay itself off with debts incurred by its own Chinese population.
"For that reason alone we now have six trillion dollars in debt owed to China, bit by the USA, but by Taiwan and a host of other nations which incur debt over the Chinese Yuan design of renegotiation of debt through the USA Federal Reserve. Why Clency you have forgotten all of this is strange but you have and now force Me, SERARA, to remind you that we are about to appear incarnate and I have a lot to say from the rostrum, just what is to be done when this things hits soon and harshly and to destroy many markets including probably the New York Stock Exchange as exchequer of the western democracies. I leave it a that. SERARA."
MICHAEL OF NEBADON = "Clency, what is it that brings you to post these things when you have not learned one scintilla more as to what will happen when the crisis finally hits. The USA is still the top dog when it comes to currency revisions, and it keeps revising how to use the dollar in order to keep itself out of final debt. If final debt occurs, that means it suddenly is forced to pay all sixteen trillion dollars out to receiving nations, and they do not deserve sixteen trillion total, but more like five or six trillion total. The US has the gold to back that but refuses to spend it while China hordes gold and will not pay it out for its debts. But let it lie for now, as the real crisis is in the US government and its inability to come to grips with a US President that has no sense of good news, but only bad news, and may attempt to start a war with Iran that the US wished it never would have started. Iran is nuclear. Iran is useless as a partner to anyone. Iran will collapse and become a mysterious empire in history that had it all but could not get acknowledged as a good nation ever and it has never been a good nation unless it was forced to be so under the Shaw of Iran. I am sure this subject will come up again and again, but until the USA figures out it has nothing to fear from Iran by staying put, the USA will rue the day it ever started a pin prick war with that nation state that can blackmail anyone now due to the fact it has a nuclear bomb. Care not for Israel as Israel can defend itself well, but care for Turkey and the Arab Emirates, as Iran would love to decimate them because they are, in spite of appearances, good western allies and will never falter to defend them, but they can be removed with small nuclear devices that will poison that region with radioactivity for generations. Thank you, I am Michael of Nebadon. Good day."
END
