Here is the glaring hole in the United States Federal Reserve's approach to what it calls stimulus, and what history will one day categorize as fraud: You can't use your own debt to purchase more debt when you can't repay the original debt. The crime is compounded when you know you're never going to repay the debt. It amounts to treason to intentionally destroy the integrity of the nation's money." "Buying $600 Billion in Debt with Debt." James West, lemetropolecafe.com, 11/5/10 Cui Tiankai, a deputy foreign minister and one of China’s lead negotiators at the G20, said on Friday that the US plan for limiting current account surpluses and deficits to 4 per cent of gross domestic product harked back “to the days of planned economies”. We believe a discussion about a current account target misses the whole point,” he added, in the first official comment by a senior Chinese official on the subject. “If you look at the global economy, there are many issues that merit more attention – for example, the question of quantitative easing.” China’s opposition to the proposal, which had made some progress at a G20 finance ministers’ meeting last month, came amid a continuing rumble of protest from around the world at the US Federal Reserve’s plan to pump an extra $600bn into financial markets. Officials from China, Germany and South Africa on Friday added their voices to a chorus of complaint that the Fed’s return to so-called quantitative easing would create instability and worsen imbalances by triggering surges of capital into other currencies… With all due respect, US policy is clueless,” Wolfgang Schäuble, German finance minister, told reporters. “It’s not that the Americans haven’t pumped enough liquidity into the market,” he said. “Now to say let’s pump more into the market is not going to solve their problems.”” “China tees up G20 showdown with US” Alan Beattie in Washington, Geoff Dyer in Beijing, Chris Giles in London, The Financial Times, 11/5/10 $10.2 trillion: The amount of money advanced-nation governments will need to borrow in 2011… Next year, fifteen major developed-country governments, including the U.S., Japan, the U.K., Spain and Greece, will have to raise some $10.2 trillion to repay maturing bonds and finance their budget deficits, according to estimates from the International Monetary Fund. That’s up 7% from this year, and equals 27% of their combined annual economic output. Aside from Japan, which has a huge debt hangover from decades of anemic growth, the U.S. is the most extreme case. Next year, the U.S. government will have to find $4.2 trillion.” “Number of the Week: $10.2 Trillion in Global Borrowing” Mark Whitehouse, The Wall Street Journal, 11/6/10 Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today The development of a monetary system to succeed Bretton Woods II launched in 1971, will take time. But we need to begin.” Robert Zoellick, World Bank President & a former US Treasury Official, 11/8/10 It is becoming ever more widely understood, correctly in our view, that the National Debt of the USA (and that of certain other Major Nations as well) can never be repaid without further dramatic Debasement of the Purchasing Power of the U.S. Dollar (and those other Fiat Currencies). And it is further Dollar Debasement we are almost Surely going to get with Q.E. 2 $75 Billion Increments now in the Pipeline and Q.E. 3, and, perhaps Q.E. 4 looming on the Horizon. So the Key Question for Investors (Savers/Retirees/Citizens/Small Business People) is: How do I prevent the considerable ongoing loss of Wealth resulting from the seemingly inexorable Present and Prospective Diminishing of the Purchasing Power of the U.S. Dollar (and those other Fiat Currencies)? The immediate Answer, and no Surprise to regular readers: Gold (and Silver), which has, unsurprisingly, been putting in Record Nominal Highs lately. But, in the past couple of decades, though the Gold Price has generally trended upward, it has also been subject to PERIODIC violent Takedowns. The Evidence is Persuasive that The Fed-led Cartel of Central Bankers has repeatedly attempted to Suppress Gold (and Silver) Prices, with some Success, as our Regular Readers are already quite aware. *We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster’s December, 2009, Special Alert containing a summary overview of Intervention entitled “Forecasts and December, 2009 Special Alert: Profiting From The Cartel’s Dark Interventions - III” and Deepcaster’s July, 2010 Letter entitled "Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds" in the ‘Alerts Cache’ and ‘Latest Letter’ Cache at Deepcaster’s website. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster’s profitable recommendations displayed at Deepcaster’s website have been facilitated by attention to these “Interventionals.” Attention to The Interventionals facilitated Deepcaster’s recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably. But beginning early this year, Insider Testimony about Market Manipulation plus Revelations that Major Repositories do not have all the Gold they say they do have led to a Surge in the Gold (and Silver) Price and Great Difficulties for The Cartel Price Suppression Scheme.

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