Thursday, March 26, 2009
Insanity Expands to new heights
After writing yesterday's entry, I thought, wow, that's some of the craziest stuff I have heard in a few months. Then comes today.
First, Congress seeks to expand the US Treasury power to "at will" take over companies that are NOT banks. This means the US Treasury could take over, AIG, or any insurance company, or anything "deemed" a financial company. I'm curious if that would include companies like GMAC. This of course, is yet another unprecedented level of consolidation of power.
Next up, "U.S. Treasury Secretary Timothy Geithner said he was open to considering a new global reserve currency. " The US fiscal autonomy would be eliminated. I am assuming instead of one currency, there would be 4, the Euro, Amero, Afro, and the Eco. My greatest concern would be the influence of China in this new world order of currency control, and such centralized power to the banking system, as to enslave the world through its consolidated power.
Both of these items are unprecedented. If either becomes a reality, they will join my "Financial Ground Zero" moments. In any event, this level of "crazy talk" by the US Treasury just re-enforces how critical natural resources is.
Speaking of which, gold has been strong, very strong. My only concern is why isn't it at 2x the current level. This type of "crazy talk" I would think would drive gold much higher than it is.
If I posted the US Treasury would entertain the idea of dissolving the US Dollar in favor of a new world currency back in October 2008, you would have written me off as insane. And here we are today, when it is a reality. Hence I only hinted at it in October of 2008, creating 4 global currencies.