What is the Globo?

By now, you should have heard about the Euro, as it is Europe's currency. If you look hard enough you can also find something about the Amero - a proposed currency for North America. But the Globo?

The globo is the global currency to be imposed by Russia, Saudi Arabia, Brazil, Japan, China, the EU, Canada, Australia, and possibly the UK, in a joint effort to detach themselves from the US dollar.

Why do all countries want to detach themselves from the US dollar? Are they even attached to the US dollar to begin with?

Unless you've been living under a rock, you should know about the Bretton Woods agreement signed after World War II that gave the then-gold-backed US dollar reserve currency status for the entire world. The dollar then was said to be "as good as gold," and was in fact 100% backed by gold. $35 was an ounce of gold - literally.

In 1971, after a decade of deficit spending on the Vietnam War, Apollo, and Great Society programs, the US had to end the Bretton Woods agreement. The US-gold link had come under pressure from France and the UK which were buying up gold like mad and dumping US dollars, knowing that dollars were intrinsically worth less than gold. Thus, Richard Nixon was forced to terminate the Bretton Woods agreement on August 15, 1971. What followed was a decade of inflation known as the "stagflation" era, after the dollar essentially became a worthless piece of paper.

However, in the early 1980s, after the middle east was driven into bankruptcy, a new deal was established with the Arab nations (except for Iraq and Iran), whereby those countries would sell their oil in exchange for US dollars, which they would then keep in gigantic savings accounts - called "reserves" - for ever & ever & ever (because if they ever spent those dollars, the US would experience hyperinflation and the US empire would come to an abrupt end).

During the Reagan, Bush, and Clinton years, a new kind of American imperialism flourished, where the US struck deals with increasingly more countries for those countries to purchase enormous amounts of US dollars (like the Arabs did) to finance a growing US debt. Japan is now the world's foremost holder of US dollars. China also holds a lot of dollars. Keep in mind that the dollar is nothing but worthless paper. Worse still, all the countries holding US dollars must be forced (coerced) NOT to sell those dollars because if they ever did, the US would suffer a Zimbabwe-like hyperinflation.

Today, virtually every country in the world holds large quantities of US dollars in reserve. The US dollar is a price-fixed currency. The US treasury (or more accurately the Federal Reserve) sets the price of the dollar. The dollar has no purchasing power, because it's a worthless piece of paper. However, the Fed gives it the illusion of value by DECREEING what its value is. It does so by simply readjusting the number of dollars in circulation. The dollar is a FIAT currency (FIAT implies "by government decree").

Whenever the value of the dollar is driven upwards (by the Fed selling treasury bonds), all other countries suffer because their own currencies inflate relative to the dollar. Thus, it becomes harder for those countries to purchase things (like oil) on the market, because those things are sold in US dollars. However, if the dollar is driven downwards (if the Fed buys treasury bonds), the US dollar reserves of the other countries now become less valuable. Furthermore, the rapid appreciation in the domestic currencies of the other countries causes problems for exporters. So you can see why the more volatility there is in the dollar, the harder it is for other countries to maintain stable economies.

For countries other than the US, the US dollar as a reserve currency is extremely detrimental. The current system of US dollar hegemony (where the dollar is used as the de-facto global currency) is an offshoot of American imperialism and is a way for the US to control world markets.

The problem we are faced with today is an impending devaluation of global currencies (other than the dollar). The Canadian dollar has been devalued enormously this week. The Australian dollar has been totally decimated. Every currency other than the US dollar has been falling. The Japanese Yen thankfully was spared, but if the US has its way, all other currencies will be devalued massively. Why? Because the US must inflate away its debt. In order to do that, it has to print more dollars. It can only do that while maintaining stable prices (otherwise inflation will result). The ONLY way to do that is by devaluing the currencies of ALL OTHER COUNTRIES.

So China, Japan, Russia, and other economically-strong countries are now deciding (behind closed doors) that in order to maintain some kind of economic stability, they must - ASAP - decouple their currencies from the US dollar. The only way to do that is by making some other currency the global reserve currency, and therefore forcing the US dollar to be valued against that currency. And that currency is the Globo.

So as not to repeat the mistakes of the past, the countries proposing the Globo have decided that it will be backed 100% by gold. In other words, the Globo is gold. Therefore, gold will be the new global currency. One ounce of gold will be worth exactly G2461. (G=Globo)

The common wisdom of Warren Buffett, Benjamin Graham, and other great investment mentors has always been that you should pick an asset that you believe is undervalued, and go long (purchase and hold that asset) for many years as its value increases exponentially. However, since the introduction of short selling, this age-old wisdom could not be more wrong.

In today's market, it is far more advantageous to be short for the long term, than to be long. The reason is simple: when you are long, you are paying a price for holding an asset that may or may not appreciate in value. Every day that you hold that asset, you are missing out on the interest that you would otherwise earn if you had not purchased that asset and instead kept your money in a savings account. However, when you are short, you don't have to pay that price. You borrow the asset at a specific lease rate. If the lease rate is less than the interest rate that you would earn in a savings account, then you are actually being paid for being short.

Nowadays, it is very hard to find an asset that grows by more than the interest rate in most savings accounts. It is (and has always been) very risky. However, it is very easy to find a bank that will lend you a particular asset (e.g. gold) at a near-zero lease rate. You then sell that gold immediately, pocket the money, and put it in a savings account where the growth rate is guaranteed. If gold goes down, you cover your short and make extra profits. If gold goes up, you simply double your short position. As long as the rate of return in gold does not exceed the rate of return of the savings account with virtually no volatility, you can always eventually cover your short position for a profit or simply use the interest to gradually cover your short.

Longs are getting killed, especially in the precious metals, precisely because shorts are always fundamentally favored. Lease rates on gold and silver are almost always zero or negative. Negative lease rates mean that you actually get paid for borrowing gold!

In recent news, the SEC banned short sales on all stocks. Too many ordinary people had caught on that short selling big financial firms could be extremely profitable. However, despite the short ban, the Dow plunged 7% today. Yet, the SEC remains silent on the shorting of commodities. If you cannot see the political agenda here, you are blind.

Bottom line - as long as short selling commodities is fundamentally favored by the banks (through low or negative lease rates), it is far more profitable to be short than long. Last month, three banks shorted one tenth of the yearly supply of gold (that's 250 tons), causing a devastating plunge in the gold price - all the way from $990 to $745 with no rebound. The shorts made it out with a 33% profit, even though they never sold any physical gold. The longs got destroyed. This is the sad reality of the "free market" casino. If you want to make money, you better be short, because long just doesn't pay.

We are mere days away from some VERY big news.

There is a greater chance than ever that the world will be VERY different by October 1.

Yom Kippur is approaching, and the Russians have expressed great fear of a second Yom Kippur War, between Israel and Iran. They are intent on "preventing" it, by launching an earlier strike in Iran - September 28th.

Israel has been positioning itself in Georgia, in order to invade Iran. NATO bases have been built in Georgia. Georgia represents the perfect strategic location (other than Iraq) for attacking Iran. Iran is now surrounded by enemies: Iraq, Georgia, and Afghanistan - all are now occupied either by the US (NATO) or Russia.

Russia has positioned itself in Georgia and Syria. Take a look at what countries border Georgia and Syria. The US is in Iraq, ready to help Israel with its Yom Kippur Iran invasion. Russia will attack Iraq from Syria and Iran from Georgia, and the US will not know what hit it.

Prophet Alois Irlmaier sees "two eights and a nine" for the start date of World War III. 9/28/2008.

Congress is going on vacation at the end of this week. McCain has decided not to show up for the debate in Mississippi. Americans will be totally taken by surprise by the events that are about to unfold.

I've taken the liberty of coming up with a list of very specific things that I would do if I were US President...

• End all combat operations, in Iraq, Afghanistan, and elsewhere
• Bring those troops home and station them at the border (80% at the US-Mexico border, 20% at the US-Canada border)
• Place a permanent cap on military spending during times of peace (or undeclared war)
• Implement a GST (Goods & Services Tax), a national sales tax of 5% on all discretionary consumption goods
• Eliminate income taxes for incomes of $30,000 or less per year
• Institute a flat 20% income tax on all income exceeding $30,000
• Institute a 25% tax on gasoline and diesel fuel, to encourage the development of alternative technologies
• Give the US Treasury legal authority to produce silver coins and certificates
• Create a public education campaign on the benefits of using silver as opposed to Federal Reserve Notes as money
• Create a 3-year program for phasing out the legal tender status of Federal Reserve Notes and the Federal Reserve itself
• Give the federal government the authority to finance itself directly by issuing US Treasury bonds (denominated in silver dollars) rather than by borrowing from the Federal Reserve
• After the use of Federal Reserve Notes is phased out, finance the entire national debt using 30-year US Treasury bonds denominated in silver dollars
  
• Create a system of transfer payments between the states, where rich states give a small percentage of their tax revenue to poor states
• Create a 3-year program to move medicare, social security, and prescription drug coverage to the state level
• Eliminate the DEA and all anti-drug legislation, legalizing all drugs from cocaine to marijuana
• Eliminate the national minimum drinking age
• Get rid of the FDA and FCC
• Revamp the government statistics program so that official statistics are realistic again
• Create a federal (public) TV + radio station, with a clear mandate to provide balanced journalism, that competes with the private networks (like the CBC in Canada)
  
• Start a 10-year plan to develop an interstate rail system similar to the interstate highway system
• Deliver a state of the union speech with the sole purpose of telling the truth to the American people
• The speech would discuss false-flag attacks, the US constitution, the Federal Reserve, secret societies (CFR, Bilderberg, etc.), and who owns the private media
• The speech would conclude with, "My fellow Americans, we have nothing to fear but fear itself."

Of course, by the time I get to the silver stuff, I'd probably be assassinated, or some odd scandal would come up that would force me to resign, or I'd be impeached. Power always does what it wants folks. The owners of America would never allow any US President to do what I just stated.