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By: Khawaja Asad Saeed With massive fiscal imbalances on all fiat money based balance sheets around the world, Europe at the brink of default, confidence in the US dollar at an all time low, prices around the world skyrocketing, what could be the new form of money, or let's say currency, which could stabilize the financial systems once again and flush out all toxic debt and assets from around the world?! The developments may surprise a few, the events may shock many, but the solution has no argument against it, whatsoever! Bottom line: Confidence in US dollars is at an all time low. The largest creditor nation in the world, China, is about to dump a large chunk of US dollars and move into real assets like gold, silver, and national welfareimproving assets like investing in education, health, overseas investments, and strategic resources. This is a message to the world that the US dollar is not a viable investment and the domino effect is just around the corner. That was in May 2011. Reports coming out early June from the US Treasury show that China has divested 97% of her US Treasury holdings, decreasing its

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China Proposes To Cut Two Thirds of Its $3 Trillion In USD Holdings:

Latest data shows that the Chinese foreign exchange reserves increased by $197.4 billion (US) in the first three months of 2011 to $3.04 trillion. A member of the monetary policy committee of the central bank, Xia Bin, recently said that $1 trillion would be enough and that the rest should be invested more strategically. He mentioned that they should use the rest to acquire resource and technology needed for the real economy. On the private sector front, chairman of the China Everbright Group, Tang Shuangning, also took his take on this issue recently. Not surprisingly, he mentioned that China should diversify its foreign exchange reserves, thus reducing her holdings in US dollars. According to him, the current reserve amount is too high, and that the foreign exchange reserves should be restricted within the range of $800 to $1.3 trillion.

June 2011 Edition Cover for US, Europe, Asia and South Pacific

ownership of the short-term US Government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the US Treasury. Short-term Treasury bills are securities that mature in one year or less that are sold by the US Treasury Department to fund the country's debt. So the fate is sealed now. The only buyer left for the US Treasuries is the Federal Reserve Bank which prints money out of thin air and then buys the US Treasuries, and then the US Government taxes the public to pay them back. The never-ending debt spiral is set to implode in the next few years. The situation has become so dire that the credit-rating agencies like Moody's, Fitch Ratings and Standard & Poor, which are usually in bed with the US banks, creating a massive moral hazard, have been forced to warn the US that her credit ratings will be slashed if the US chooses to default on her loans, even temporarily. Hence, the Republicans and Democrats in Washington are fighting over cuts in fiscal spending or raising the debt ceiling. The case is clear. The debt is so large that the US cannot pay it back in today's money. So the only path they will follow is print even more money and devalue the dollar so as to pay back in dollars which are worth less and less. This is how it looks like for the United States:

international organization estimates China's economy will surpass, in real terms, that of America. This is just 5 years from now! So in five years, the Chinese economy will be the largest in the world. But a closer look at their analysis unveils a flaw in their methodology. Gross Domestic Product (GDP) of the two countries is being compared but by using current exchange rates and that is a very misleading comparison in real terms. As Pakistanis know better, exchange rates change quickly, and Chinese exchange rates are far from being fully priced. They are actually phony. The Chinese have artificially undervalued their currency, the Renminbi or Yuan, through huge intervention in the markets. Under the current analysis, the Chinese economy will increase from $11.2 trillion this year to $19 trillion in 2016 while the US economy will increase from $15.2 trillion to $18.8 trillion. This means the Chinese share of the world output would rise to $18+ trillion and that of the US would go down to 17.7%, the lowest in modern times. What is mindboggling in this case is that just about 10 years ago, The US economy was three times the size of China's! When the Chinese finally decide to let their currency float a bit more freely, it will send the Renminbi higher and the cost of Chinese goods to the Americans skyhigh! The result would be hyper inflation in the US Furthermore, if the Chinese let their currency float and it doubles in value because of their ever-increasing exports, the Chinese economy would double overnight! To present a doomsday scenario for the Americans, gold, silver and oil are sky-rocketing, signaling the declining value of the US dollar. Less purchasing power and loss of the international reserve currency set up will send the US back many decades in purchasing power terms. The case in point is what will replace the US dollar as the international reserve currency? Naturally, the world should revert to the gold standard with silver in the mix. However, recent events have shed light on yet another sinister plan by the western bankers, but they are failing miserably now.

IMF bombshell: Age of America nears end:

Finally, the IMF has accepted the fact that the Age of America will end. How long will it take? 2050? 2040? 2030? 2020?! NO! Mark it down in your calendar-its 2016! This is the year when this

Bretton Woods II - The Last Ditch Effort to Enslave Mankind!

When Amscel Rotchschild said, Give me the power of the money and it will not matter anymore who is

commanding, he expressed the true nature of international or global finance. The new front man for Bretton Woods II is none other than the famous international investor, George Soros. This is the same person who, in The Alchemy of Finance wrote, To put it bluntly, I fancied myself as some kind of god or an economic reformer like Keynes As I made my way in the world, reality came close enough to my fantasy to allow me to admit my secret, at least to myself. The Bretton Woods II conference was sponsored by INET, The Institute for New Economic Thinking. Some of the attendees and speakers at the INET conference included:

Paul Volcker, former Chairman of the Federal Reserve and Chairman of the current President of the United States of America's Economic Advisory Board. Gordon Brown, former UK Prime Minister. Joseph E. Stiglitz, former Senior Vice President and Chief Economist for the World Bank. INET Executive Director Rob Johnson, former Managing Director at (George) Soros Fund Management . Economist Jeffrey Sachs, Director of The Earth Institute, Columbia University Professor, who was written about by Aaron Klein in WND: Sachs is a special advisor to the UN Secretary-General Ban Ki-moon, is founder and co-president of the Soros-funded Millennium Promise Alliance. He has a been a World Bank consultant who formerly directed Harvard's Institute for International Development, which he turned into a major conduit advocating for World Bank and International Monetary Fund's use for structural adjustment program in the Third World and beyond.

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use of the skies, fees for the use of the electromagnetic spectrum, fees on foreign exchange transactions, and a tax on the carbon content of fuels. All the so-called elite have joined in for a last ditch effort to further enslave mankind. For this to become a reality, a one-world currency will be required, implemented through what they are calling now a Super IMF! No Wonder IMF is working day and night to collateralize resources everywhere, from the United States to Europe to Africa to Asia, when loans are offered. This would be a dream come true for the international bankers. However, it should be noted that although, these rich elite do make money of fractional reserve banking, they always hold onto and increase their holdings of gold and silver, which is real



A millennium goal called for a "currency transfer tax," a "tax on the rental value of land and natural resources", a "royalty on worldwide fossil energy projection oil, natural gas, coal", "fees for the commercial use of the oceans, fees for the airplane

wealth. So in either case, the Special Drawing Right Unit that the Super IMF plans to issue and use as reserve currency for international settlements, will need gold and silver in the mix, which brings us to the point of who has seen through this game and started buying gold and silver at an aggressive rate?! The answer should not surprise you.

mine more gold and buy as much as she can. (Hello Reko Diq in Pakistan!) The Chinese are the largest producer and consumer of gold. Do we still need western expertise?! Once the fall in paper currencies goes parabolic, China could start floating her currency (which is pegged to the US dollar) and that may play a big role in international trade. So to avoid speculative attacks, which Pakistanis are well aware of, the Chinese will HAVE to back her currency by a good chunk of gold and silver and that is exactly what they are planning. Is someone else also?

World Gold Council Bombshell:

The World Gold Council just announced that China has surpassed every nation in the world in purchases of gold. Now China is not only the largest producer but also the largest consumer of gold. What else?! The Chinese banned the export of silver in late 2009 and encouraged their population to start saving in gold and silver by opening bullion shops and silver and gold accounts. Where she used to export 100 million ounces on average, the imports are now worth 200 million ounces every year! Add local mining and buying through the SCO camp which is not reported. The Chinese saw the coming inflation and saved their public's purchasing power which also helps in inflationary times which are already here. The public has not panicked and stayed calm as inflation arrived, unlike the Middle Eastern countries. The purchasing power was left intact for the Chinese public. It is an open secret now that China wants to own more gold than any other country in the world. She is desperate to

The Curious Case of Zimbabwe:

We are all familiar with how Zimbabwe recently went through hyperinflation in the past few years. The country was devastated as it printed and printed to pay off .. you guessed it! DEBT! (Federal Reserve and United States of America anyone?!). A lot of people still think that the country still trades in their Zimbabwe dollars! They actually use gold and US dollars now! But the Central Bank of Zimbabwe just announced that they believe the US dollar is no longer stable. So they are now considering selling their diamonds for gold, so they have a fully gold-backed currency. This is what the Central Bank there has proposed in their most recent paper.

China Silver Panda A country totally devastated with hyperinflation will now probably have the soundest currency in the world if the plan is approved and implemented. Imagine the capital inflows into the country. Look for Chinese to sky rocket her trade with Zimbabwe if this happens. The European countries are totally devastated. As we write this article, riots have broken out in Greece, Spain is no far away, Portugal has sold her soul to the IMF at the tune of $35 billion, and Italy is panicking as well as the bond payments arrive. British pound is on its death bed. The Euro is doomed. As we showed in the previous article, the west just cannot pay off her debt anymore. So, to instill discipline in the system again, there is surely going to be a gold standard implemented in this decade, which means gold and silver will be revalued against paper currencies. If that happens against the dollar, gold will have to go up to $15,000/oz. and silver to $500. Currently, they are at $1530/oz and $36/oz respectively. That is appreciation in value of a 1000% in gold, which has already appreciated by 500% in the last decade, and a 1400% appreciation in silver, which has already appreciated by 1000% in the previous decade. That is multiple thousands in the making! that only 30% of the silver supply of the world comes from purely silver mines, and 70% is a by-product of gold and copper mining. Pakistan has the 4th largest copper belt in the world and as mentioned, probably one of the largest gold mines. What are we waiting for?! The Central Bank needs to start accumulating gold and silver at an aggressive pace. We do not have much time. We need to diversify our foreign reserves into real wealth. Our banks need to start accumulating gold and silver to account for the loans they have issued. It should start right now! As silver and gold prices sky rocket, so will our foreign reserves, and our banks will become the most profitable, with no need to charge interest to make money. We will easily break the shackles of fractional reserve banking and the interest-based banking system. All Pakistani bankers have this in their heart. They are sick and tired of this interest-based setup. They can see how people are suffering because of it and they just cannot take it anymore. In a few years, we will be a debt-free nation! It is as simple as that! We are at the tipping point of a financial disaster. The financial markets are crumbling while gold and silver stay rock solid! There is no argument left, none whatsoever, against gold and silver anywhere! The time is NOW! NOW OR NEVER!

What of Pakistan?
The important question is where is Pakistan in this mix?! We have arguably the largest gold mines in the world and vast amounts of silver can be extracted from them. It is important to bring to our readers' attention