IMF & Gold Reserves


IMF

QUESTION: Mr. Armstrong; People are adamant that there is a move to return to the gold standard. They claim various scenarios. Is there any such plot by the IMF and it seems strange that the ECB gold reserves are minimal. Can you explain the truth in this matter?

Thank you

GS

ANSWER: The IMF has actually been jockeying positions for decades to remove gold as a monetary instrument quite to the contrary of these reports. IMF Special Drawing Rights (SDR) was first established with one SDR being equal to 0.888671 gram of fine gold, which was the par value of the US dollar on July 1, 1944. The IMF acquired its gold holdings through four main channels. First, 25% of initial quota subscriptions to join the IMF and subsequent quota increases were to be paid in gold. This represents the largest source of the IMF’s gold. Furthermore, all payments of charges (interest on member countries’ use of IMF credit) were also normally made in gold. The structure was established with Bretton Woods and then a member wishing to acquire the currency of another member could do so by selling gold to the IMF. The major use of this provision was sales of gold to the IMF by South Africa in 1970–1971. Thereafter, member countries could use gold to repay the IMF for credit previously extended.

The IMF has decided to either return gold to member countries or to sell some of its holdings. The reasons for this are varied; between 1957 and 1970, the IMF sold gold on several occasions to replenish its holdings of currencies. The IMF also sold gold to the United States and invested in U.S. government securities to offset operational deficits during this same period.

The Second Amendment was to make the SDR the principle reserve asset in the international monetary system, paving the way to remove gold as the ultimate reserve asset. The Second Amendment to the Articles of Agreement in April 1978 fundamentally changed the role of gold in the international monetary system by eliminating its use as the common denominator of the post-World War II exchange rate system. Gold ceased to be the basis of the value underlying the SDR. The Second Amendment, therefore, abolished the official price of gold and ended any obligatory use in transactions between the IMF and its member countries. Consequently, the Second Amendment of 1978 decreed that the IMF would no longer manage the price of gold or establish a fixed price. This, in part, helped the rally initially to $400 by 1979.

Under the Second Amendment to the Articles of Agreement, the use of gold in the IMF’s operations and transactions was very limited. Furthermore, the IMF may sell gold outright according to prevailing market prices under the 1978 Second Agreement. It may accept gold in the discharge of a member country’s obligations (loan repayment) at an agreed price based on market prices. This officially ended the idea of a gold standard set out at Bretton Woods. If the IMF were to sell gold, it would require Executive Board approval by an 85% majority vote. Therefore, the Second Agreement eliminated any IMF authority to engage in gold loans, gold leases, gold swaps, or use of gold as collateral. The IMF also no longer had the authority to buy gold under the Second Agreement formally ending the gold standard.

So in short, the IMF had been desperate to remove gold as a monetary instrument. From the mid-1960s, the total central bank gold reserved fell by about 25% by 2007. There is no evidence of any intent to return to a gold standard, and if anything, the hope is that the IMF will take on the role of making the SDR the new reserve currency that will replace the dollar when everything crashes and burns.

Europe on the Brink of Complete Chaos?


european_union_3d_map_1600_clr_17749

There are so many incidents with the refugee crisis in Europe that the blog could be filled with that subject alone. Even the press in Germany is starting to shift after countless incidents from knife attacks to a gang beating and robbing British tourists in the same square in Cologne, Germany. Not to mention the media’s failure to report things like the attack on women in Cologne and the protest in Frankfurt during the opening of the ECB that set the city on fire.

Up until now, the common view of the German press has been that it is THEM against the PEOPLE, because they are protecting Merkel at every corner. News blackouts have been the name of the game to the point that the people view the press as just an arm of government. Attacks by refugees are widening from France to other nations including Ireland.

It is as if the fate of the world could easily spiral downward now. All it will take is perhaps a flood of knife attacks throughout Europe to divide the people squarely against the refugees. Meanwhile, tourism is collapsing in Europe, not to mention Turkey. This will have a further deflationary impact upon the economic data that will be published by year-end.

Cartoon: Hillary Blames Her Lies on Mentally Short Circuiting


Vote for Hillary she will end all your suffering; and all ours as well!

Who Else is on Hillary’s Hit List?


BELOW IS A LIST OF PEOPLE IN SOME WAY ASSOCIATED WITH THE CLINTON WHO HAVE DIED, ALONG WITH A DESCRIPTION OF HOW THEY DIED.  AT THE END OF THIS LIST ARE 5 ADDITIONAL INDIVIDUALS WHO HAVE PERISHED IN THE LAST 6 WEEKS. YOU CAN DRAW YOUR OWN CONCLUSIONS.

Hillary-Fist-440x300

  1. James McDougal– Convicted Whitewater partner of the Clinton’s who died of an apparent heart attack, while in solitary confinement. He was a key witness in Ken Starr’s investigation.
  2. Mary Mahoney– A former White House intern was murdered July 1997 at a Starbucks Coffee Shop in Georgetown (Washington, D.C.). The murder happened just after she was to go public with her story of sexual harassment by Clinton in the White House.
  3. Vince Foster– Former White House Councilor, and colleague of Hillary Clinton at Little Rock’s Rose Law Firm. Died of a gunshot wound to the head, ruled a suicide. (He was about to testify against Hillary related to the records she refused to turn over to congress.) Was reported to have been having an affair with Hillary.
  4. Ron Brown– Secretary of Commerce and former DNC Chairman. Reported to have died by impact in a plane crash. A pathologist close to the investigation reported that there was a hole in the top of Brown’s skull resembling a gunshot wound. At the time of his death Brown was being investigated, and spoke publicly of his willingness to cut a deal with prosecutors. The rest of the people on the plane also died. A few days later the Air Traffic controller committed suicide.
  5. C. Victor Raiser, II– Raiser, a major player in the Clinton fund raising organization died in a private plane crash in July 1992.
  6. Paul Tulley– Democratic National Committee Political Director found dead in a hotel room in Little Rock on September 1992. Described by Clinton as a “dear friend and trusted advisor”.
  7. Ed Willey– Clinton fundraiser, found dead November 1993 deep in the woods in VA of a gunshot wound to the head. Ruled a suicide. Ed Willey died on the same day His wife Kathleen Willey claimed Bill Clinton groped her in the oval office in the White House. Ed Willey was involved in several Clinton fund raising events.
  8. Jerry Parks– Head of Clinton’s gubernatorial security team in Little Rock. Gunned down in his car at a deserted intersection outside Little Rock. Park’s son said his father was building a dossier on Clinton. He allegedly threatened to reveal this information. After he died the files were mysteriously removed from his house.
  9. James Bunch– Died from a gunshot suicide. It was reported that he had a “Black Book” of people which contained names of influential people who visited Prostitutes in Texas and Arkansas
  10. James Wilson– Was found dead in May 1993 from an apparent hanging suicide. He was reported to have ties to the Clinton’s’ Whitewater deals.
  11. Kathy Ferguson– Ex-wife of Arkansas Trooper Danny Ferguson, was found dead in May 1994, in her living room with a gunshot to her head. It was ruled a suicide even though there were several packed suitcases, as if she were going somewhere. Danny Ferguson was a co-defendant along with Bill Clinton in the Paula Jones Lawsuit, and Kathy Ferguson was a possible corroborating witness for Paula Jones.
  12. Bill Shelton– Arkansas State Trooper and fiancée of Kathy Ferguson. Critical of the suicide ruling of his fiancée, he was found dead in June, 1994 of a gunshot wound also ruled a suicide at the grave site of his fiancée.
  13. Gandy Baugh– Attorney for Clinton’s friend Dan Lassiter, died by jumping out a window of a tall building January, 1994. His client, Dan Lassiter, was a convicted drug distributor.
  14. Florence Martin– Accountant & sub-contractor for the CIA, was related to the Barry Seal, Mena, Arkansas Airport drug smuggling case. He died of three gunshot Wounds.
  15. Suzanne Coleman– Reportedly had an affair with Clinton when he was Arkansas Attorney General.. Died Of a gunshot wound to the back of the head, ruled a Suicide. Was pregnant at the time of her death.
  16. Paula Grober– Clinton’s speech interpreter for the deaf from 1978 until her death December 9, 1992. She died in a one car accident.
  17. Danny Casolaro– Investigative reporter who was Investigating the Mena Airport and Arkansas Development Finance Authority. He slit his wrists, apparently, in the middle of his investigation.
  18. Paul Wilcher– Attorney investigating corruption at Mena Airport with Casolaro and the 1980 “October Surprise” was found dead on a toilet June 22, 1993, in his Washington DC apartment. Had delivered a report to Janet Reno 3 weeks before his death. (May have died of poison)
  19. Jon Parnell Walker– Whitewater investigator for Resolution Trust Corp. Jumped to his death from his Arlington, Virginia apartment balcony August 15,1993. He was investigating the Morgan Guaranty scandal.
  20. Barbara Wise– Commerce Department staffer. Worked closely with Ron Brown and John Huang. Cause of death unknown. Died November 29, 1996. Her bruised, nude body was found locked in her office at the Department of Commerce.
  21. Charles Meissner– Assistant Secretary of Commerce who gave John Huang special security clearance, died shortly thereafter in a small plane crash.
  22. Dr. Stanley Heard– Chairman of the National Chiropractic Health Care Advisory Committee died with his attorney Steve Dickson in a small plane crash. Dr. Heard, in addition to serving on Clinton’s advisory council personally treated Clinton’s mother, stepfather and Brother.
  23. Barry Seal– Drug running TWA pilot out of Mena Arkansas, death was no accident.
  24. Johnny Lawhorn, Jr.– Mechanic, found a check made out to Bill Clinton in the trunk of a car left at his repair shop. He was found dead after his car had hit a utility pole.
  25. Stanley Huggins– Investigated Madison Guaranty. His death was a purported suicide and his report was never released.
  26. Hershel Friday– Attorney and Clinton fundraiser died March 1, 1994, when his plane exploded.
  27. Kevin Ives & Don Henry– Known as “The boys on the track” case. Reports say the two boys may have stumbled upon the Mena Arkansas airport drug operation. The initial report of death said their deaths were due to falling asleep on railroad tracks and being run over. Later autopsy reports stated that the 2 boys had been slain before being placed on the tracks. Many linked to the case died before their testimony could come before a Grand Jury.

THE FOLLOWING PERSONS HAD INFORMATION ON THE IVES/HENRY CASE:

  1. Keith Coney– Died when his motorcycle slammed into the back of a truck, 7/88.
  2. Keith McMaskle– Died, stabbed 113 times, Nov 1988
  3. Gregory Collins– Died from a gunshot wound January 1989.

 
HERE ARE THE FIVE PEOPLE KILLED IN THE LAST SIX WEEKS: 

  1. John Ashe         (6/22)

The first in this most recent string of Clinton associate deaths was that of John Ashe, the former president of the United Nations General Assembly in 2013 and 2014.

Ashe died Wednesday, June 22nd while awaiting trial in a bribery scandal that was closely tied to the Clinton Foundation.

OFFICIAL CAUSE OF DEATH: Traumatic asphyxia and suffered laryngeal fractures while lifting.

TRANSLATION: His windpipe was crushed by a barbell.

  1. Seth Rich             (7/10)

Seth Conrad Rich’s unsolved murder on a Washington D.C. street has sparked a flurry of conspiracy theories because he was a staffer and self-described data analyst for the Democratic National Committee. Rich, 27, who worked for the DNC on voting issues, was shot and killed in Washington D.C., and his murder remains mysterious. “Police have found little information to explain his death,” said The New York Daily News.

Perhaps the reason for the “conspiracy theories” has something to do with the fact that Rich allegedly had access to the voter database and would have known about specific instances of voter fraud. Furthermore, in addition to being shot multiple times, including the back, nothing was taken from his person. His assailants didn’t take his phone, his watch, or his jewelry, and in addition to being shot multiple times, he was badly beaten.

It’s also worth noting that Julian Assange has hinted that his source might have been someone inside the DNC, and Seth certainly had access.

OFFICIAL CAUSE OF DEATH: Shot and beaten to death

  1. Joe Montano         (7/25) 

Aid to Hillary’s running mate Tim Kaine

OFFICIAL CAUSE OF DEATH: Heart attack at age 47 on the day the DNC began, and immediately after the Wikileaks announcement was made.

TRANSLATION: Why is this not being investigated?

  1. Victor Thorn        (8/1)

Famously wrote books about Bill Clinton’s sexual assaults

Also wrote books about the Clinton’s increasing trail of dead bodies

OFFICIAL CAUSE OF DEATH: Alleged self-inflicted gunshot wound (On his birthday)

  1. Shawn Lucas         (8/2)

Most famous for being the one to serve the DNC and Debbie Wasserman Schultz with a nationwide class action lawsuit for defrauding Bernie Sanders and all his voters. Lucas famously said, “You’ve been served.”

OFFICIAL CAUSE OF DEATH: Details nor released but there are conflicting reports he died in his sleep or he died on the bathroom floor.

TRANSLATION: Don’t even think about suing us  LARRY NICHOLS: FORMER CLINTON HITMAN

Videos from Before the News.

 

‘Kill Russians and Iranians, threaten Assad,’ says ex-CIA chief backing Clinton


The administration including the office of the President the State Department and the CIA are staffed with idiots and fools that are taking us to war by their insane policies. Hillary is part of the insanity that created ISIS and permeates this administration.

Europe Begins to Rebel Against Austerity


Euro Crisis Express Aug 2016

COMMENT: Mr. Armstrong; I attended the Berlin Conference. I have to say that you have done an excellent job of laying everything out from the rally in the euro back to 116 to the rally in gold and its failure to get past 1362 not to mention Brexit and the breakout in the Dow. You alone called for Brexit and that from there Europe would begin to unravel. Today, it was reported that the rest of Europe is ganging up on Germany over austerity. I sold the pound, bought the Dow and sold gold watching 1362 as you have explained how to trade. For an idiot like me to beat everyone I knew was really spectacular. You will have three more people joining your WEC.

KD

London

REPLY: If you just step back and go with the major trend instead of trying to catch every wiggle, sometimes you just outperform the crowd. Yes, they are starting to ban together against Germany and that includes France. Deflation is raising the real value of loans and makes debtors unable to repay. That was the very essence of the Great Depression. Germany is just focusing on the last event of hyperinflation. As they say, we tend to always fight the last war.

Political Correctness Going Nuts!


AUS School

QUESTION: Mr. Armstrong, it appears to me that we are moving to the extreme in political correctness to the point it is creating children who can no longer rep the very benefits of civilization. Have you seen this latest insanity in Australia where children cannot even clap their hands?

PD

ANSWER: Yes, I agree. Placing a ban on clapping and cheering is just nonsense. Some people are afraid to fly. Should we ban airplanes? There will always be someone offended by something. Either they realize they must bend to society or they cannot function. You cannot demand that society outlaws everything that people find offensive, for there will be no limit whatsoever.

Tower of Babel Bruegel - PeterYou can get to the point of such political correctness that civilization ceases to exist. Fly into Miami. You will see so many people who speak Spanish but cannot speak English. They are defeating themselves. The very thing that made America great was that we discriminated “fairly” insofar as the last one off the boat could not get a job unless they spoke English. After the first generation, their children spoke English. If you ask an American what they are, they will typically respond something like half-Irish and half-Italian for example. You will rarely see such a combination in Europe. The failure of the EU is their misunderstanding of America. It was not the single currency that made the economy, it was the single language. This puts meat on the bones of the old story of the Tower of Babel.

Germany Raids Healthcare Funds to Support Refugee Crisis


Germany Map 3D

COMMENT: Dear Martin, you always claim that the costs for social security will become unpayable from 2017 onwards. In Germany we have health care system organized by the federal government / the federal state. The government now created a “turbo” to bankrupt this system: The government passed a law that allows them to take 1.5 billion euros from the liquidity reserve of the public health care fund (10 billion euros in total, paid by all members and additionally by the taxpayer) and to give that money to refugees / asylum seekers. What would you call this? Insane?

Thank you for all you do!

Kind regards,

Michael

ANSWER: You are correct. The refugee crisis is rippling through every aspect of the economy. Germany is seeking to pay for the crisis the government created and will not reverse their policy.

Trump: 5% Unemployment Figure ‘One Of The Biggest Hoaxes in American Modern Politics’


The Cloward–Piven strategy is a political strategy outlined in 1966 by American sociologists and political activists Richard Cloward and Frances Fox Piven that called for overloading the U.S. public welfare system in order to precipitate a crisis that would lead to a replacement of the welfare system with a national system of “a guaranteed annual income and thus an end to poverty” This plan would also bankrupt any country that would try it and force a revolution where the proponents of this strategy could remake the existing political system into a communist form of some kind.

Queen’s Riddle


Unfortunately this is so very true.