Welcome To The NEW DARK AGE

New Dark Ages

(by Hugo Salinas Price)

The Powers That Be in the US and its allies seem to be committed to keeping the price of gold below $1320US/oz.

Is the US control of the price of gold bad for China? It would appear that since China is purchasing large amounts of gold, keeping the price from rising is in the interest of the Chinese.

Is the US control of the price of gold bad for Russia? It would appear that Russia has no urgent reason to see a higher price of gold.

Is control of the price of gold considered as a damaging policy by the Rest of the World? The Rest of the World does not seem to be particularly upset by the control of the price of gold.

Who is upset that the price of gold is so clearly kept down below $1320US/oz? Answer: the gold miners of the world and those who own gold as financial protection, as well as those who have long positions in the futures markets. All of these actors are limited in number, as contrasted with a world population of some 7.5 billion humans.

So it is evident that in reality there are relatively few parties – individuals and corporations – who care about the price of gold. For the vast majority of people in The West, the price of gold is of no concern whatsoever. Wealthy Chinese are buying gold, but they know better than to say anything about it, let alone complain about the low price.

Gold has been banished from everyday use, and can only be hoarded unproductively. Gold is going into hiding, as Professor Antal E. Fekete has pointed out. (See www.professorfekete.com)

This is not the first time gold has gone into hiding; gold went into hiding in the days of the collapse of the Roman Empire of the West. It is going into hiding again, in the present slow-motion financial collapse of the world.

The price of gold will enter a rising trend, no matter how violent the official interventions to control its price, because at the present low prices it will be impossible for the gold market to satisfy demand for gold from a largely silent minority of mankind that wants to own gold. When this happens, we can expect the criminalization of gold ownership, at least in some quarters of the world.

At some point, impossible to predict, the demand for physical gold will only be satisfied at increasingly higher prices.

Gold today has really only one enemy: the Federal Reserve of the US.

At about $1307US/oz, one US Dollar is worth 0.0238 grams of gold. That is to say, a little more than two-hundredths of a gram: 2.38/100 of a gram. At 0.02 gram per Dollar, the price of gold would be $1,555US/oz. (31.103 gr per ounce/0.02 = $1,555.15US/oz)

The Federal Reserve – and the US Establishment – are naturally worried that as the dollar becomes worth less gold, there may be a loss of confidence in the dollar in the world’s financial markets. That is a horrifying prospect for the Federal Reserve and the US Government, as the American Empire rests on two pillars, each of which supports the other: the Military and the Dollar.

If the Dollar loses prestige in the world and declines in value against other currencies, the Military loses force. If the Military loses force, the Dollar loses acceptance. If they go, the American Empire is over.

Russia and China are ambivalent about the Dollar. The health of their economies – such as they are – depends on a Dollar which maintains its value. So they are not going to challenge the Dollar by fiddling with the price of gold.

On the other hand, the American Empire is not behaving towards them in a friendly manner. For that reason, they will not be collaborating actively to suppress the price of gold.

Russia will not demand gold for its oil and gas; Russia does not wish to upset the apple-cart. China will not push for a higher price of gold, because it owns over $4 trillion in Bonds denominated in both Dollars and Euros (with minor amounts in other currencies.) China wants to use those Bonds to buy up resources all over the world, and has no interest in destroying their value.

So Russia and China are just going to sit back and watch the gold markets do their work, which will be inexorable.

Will Russia and China collaborate to establish a new Gold Standard for the world? Highly unlikely. The structure of their economies is built upon banking systems which carry out fractional banking and which are loaded to the gills with maturity imbalances: short massive amounts of deposits and long massive amounts of long-term loans. They will not change this system until it suffers a total collapse, and then they will strive to resurrect the same flawed system, because that is all they know how to do.

Russia and China are attempting to set up a rival to the IMF. To the IMF mess will be added the BRICS mess, with all the same wasteful “development loans”. I repeat: that is all they know how to do.

Gold and silver will never lose the powerful attraction which they hold for humans.

However, the use of gold and silver in a productive, free society based on property rights, and in its financial system, is a body of theory which is unknown to today’s rulers. The necessary knowledge was put aside to deal with the exigencies of WW I, which started just 100 years ago, and was never put to work again when that war was over.

At this point, it is as impossible to recover that knowledge and the spirit what went with it, as it is impossible to recover the spirit which created the Parthenon and the other marvels of antiquity.

“You are lost and gone forever,
Oh my darling, Clementine!”

I bid you welcome to The New Dark Age.

————-

You can read more of Hugo Salinas Price’s work at his site: Plata.com.mx

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12 Comments on "Welcome To The NEW DARK AGE"

  1. Should I take this article as a contrarian indicator? Hugo Salinas Price is a billionaire. By being a billionaire he is part of the established oligarchy. I don’t pretend to understand what motivates a billionaire. However, I do know that he makes a lot of assumptions about China and Russia . ” Russia does not wish to upset the apple-cart.” Really?

    • I’ve read several of his articles & listened/read his interviews. Just because someone is a billionaire doesn’t mean they think, act, or behave like the majority of billionaires. So if he is different, and I mean that in a complimentary way, is he automatically a financial oligarch? Not in the self-absorbed sense of many billionaires.

      Billionaires do have sources of information that the “common man” does not have. I don’t consider his opinions of Russia or China to be assumptions. They make sense to me.

      However…Obama and his minions’ sanctions [new ones today] are really starting to piss off Putin & Russian politicians, as they should. The U.S. and U.K. are pushing Russia to want to upset our apple cart.

  2. Now that QE is winding down and the pressure is on the Fed to raise interest rates, gold and silver are going to take a dip. Barring another world war, or something of that nature.

    • Apparently the stock markets are going to take a dip too. Seen the DJIA’s drop in the last five days? Pretty much wiped out all 2014 gains. Could it go back up on the next trading day? Of course, they are the master manipulators. But when Alan Greenspan recently said the U.S. stock market is due for a correction I’ll put “stock” in that.

    • the USA will never be able to service its debt if interest rates rise….NEVER…..imho

  3. This week has clearly shown the manipulation in the markets by the United States government. Just look at the price of oil below $100. With all the chaos around the globe including an ever closer peak in world production how can this be? Simple answer, the USA with endless pockets can run the price down as low as they want. Why do this? Easy…. Punish Russia. Punish Iran. Punish Iraq.

  4. Plague and all.

  5. Not to worry, there is light at the end of the tunnel. It’s the train that’s going to run you over (the fed) Or it’s the Israelis in gaza. Either tunnel, see the light, change your plan.

  6. I really enjoy reading Hugo Salinas Price. And agree with him almost always. I know TPTB have been destroying the USA since Nixon closed the Gold Window in 1971. I highly recommend William Engdahl’s work ” Gods of Money, Wall Street and the Death of the American Century ” for further insight. Bob Chapman had said years ago that the plan was to destroy the USA and build up China for the next 100 years. After that they will tear China down and focus the next 100 years on Africa. It sure looks like China is in a pretty good position. They have a lot of Gold. They have our Industry. And they own the debt. What do we have ? War, Fraud, and Porn. Humanity needs to go back to an asset backed monetary system. TPTB will continue to keep us in debt and enslave humanity as long as we pay for it. If we can get to the point that TPTB have tp pay for all of these Wars with Gold, Silver etc…. We wouldn’t have these Wars. Because we would have to pay for it ! As long as the printing press is allowed to run and real money is cast to the dust bin of History, we will forever be at each others throats. TPTB want it that way. Only we can change it. Keep soldiering on. Spread the word and challenge our oppressors at every turn.

    Now what would happen if the COMEX and LBMA defaulted on China’s Gold delivery ? Hmmmmmm….

  7. hello,

    This author is clueless, to say it midly. Russia just signed a 20 Billion Dollar oil deal with Iran in Exchange for Iranian oil Russia will send Iran products but NOT Dollars. China has been signing bilateral deals for several years now exchanging goods and Services between respective countries, WITHOUT using Dollars! Hello! They are preparing for plan B, a new world reserve currency. That is why Russia has not invaded Ukraine because she is going to attack America at it archilles heel: It is over used and out of date currency.

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