True Reasons Of The World Economic Crisis
The world economy collapse was caused with a main and the only reason. This reason is that US dollar, which is the world currency, was overproduced.
Until 1971 dollar was tied to gold content, so the US currency was supported with gold reserves of the USA. However since 1971 dollar and gold correlation was canceled and dollars were produced in unlimited amount. Dollar purchasing power was ensured not only with the USA GDP (as it usually happens) but also with the GDP of other countries in the world.
It is ok, but the states which indirectly supported the power of dollar with their economies never had control on volume of dollar emission. The USA government doesnt have such control either. The right of control has only the Fed of the USA.
The Federal Reserve System (which is the central bank of the USA) is a privately owned organization and it is a property of 20 private banks of the USA. Their principal business is to produce the world money. The Fed owners devoted a lot of time (decades, even centuries) and efforts to achieve that privilege. Here we can mention the 1-st and the 2-nd World Wars and Breton Woods Agreement in 1944 etc., and certainly the establishment of the Fed in1907.
Thus finally a group of private individuals obtained a right to produce dollars, determine the volume and terms of production etc. In the period since 1971 till 2009 the volume of dollars in the world was increased in dozens of times, it exceeded the real volume of products in the world in many times.
Fed owners as private organization first of all and secondly the USA held all the aces in this situation. The advantages of the Fed owners we will discuss later. As for the benefits of the USA, this is the opportunity during the last 38 years (since 1944 and especially since 1971) to live beyond their means.
The USA GDP makes up 20% of the worlds production, and consumption of the USA is 40% of goods produced yearly in the world. How is it possible? Its possible only as result of dollar emission without production increase and great demand for dollar in countries of the whole world. Exchange of goods and tangible assets for uncovered but popular dollars seems to be very similar to the situation when the Island of Manhattan was bought for $24 (in trinkets and beads) from the American Indians.
Many countries build in their economies to the system of dollar purchasing power support. If they also had a right to provide the control of dollar emission as well as if the USA government had the right of control, the world economy would never undergo a crisis. Real volume of dollars would correspond to the volume of assets, which support the currency.
However dollar emission control is provided only by several private individuals. After all, it is well-known that private individuals have private interests.
I didnt mean to criticize the Fed, the United States of America or someone else. Lets not rake anyone over the coals. However we should be realistic to get at a true picture of the world we live in. A true picture of the world will help you understand what is going on, what is doing to be next and what you can do to avoid crisis consequences or make them as soft as possible.
Now we have a question. What made the Fed to produce more dollars than the world economy required for stability?
The matter is that if you are a private individual and have a right to issue dollar, which is supported with the world economy, so you are tempted to start overproduction (if only you are no saint like Maria Theresa, but bankers of Fed are certainly not), as it gives you fantastic opportunities and privileges. That was the real purpose the Fed was established for, that was the real aim of affords to make dollar to become the world currency. Your dollar overproduction is your own business. It is the best business in the world. It is much more profitable than any other way to make money. Drugs, prostitution and arms traffic look like childish sports comparing with the right of dollar production.
Dollar overproduction was organized to get rich (what can be other reason?). With help of this actually virtual money you can buy not virtual but really liquid assets (companies, plants, gold and other asset).
In order to prevent the influence of unsecured part of dollar emission on the product market, which can lead to dollar devaluation (and this will inevitably happen if there are more dollars than products and assets in the world) genius Fed owners invented very effective ways to tie up, to freeze the considerable proportion of dollars in a virtual product.
First of all, they used stock market for this purpose. Usual and normal stock market was changed to a great extent into virtual. Shares of a firm really have a certain price. However, the main and almost the only shares value on a normal market depends on business profitability; that means that shareholders get their income as a part of company profit shared between shareholders. Shares grow in prices in case if annual profit from laid-down capital grows. That is the situation on normal stock market.
The situation will be different on a virtual stock market. You will be explained that profitability is not of a great importance. These 2, 3, 4 or 5% of corporate profit, which earn a corporation, and 10, 20 or 50% of this profit which are shared between shareholders dont mean anything.
The key condition is increase of capitalization and increase of shares value correspondingly. Its important that your share holding increased in value. That is the main income from investment. Actually that is a trick for chumps. And dont be disappointed with a fact that very smart and competent people are among these chumps. "The world wants to be deceived, so let it be deceived." Unfortunately, this rule is universal, has no exception and applies to very clever people too.
The situation on a virtual stock market is the following:
Imagine that a businessman made one or several million dollars. He starts thinking about widening of investment, for example about building of a new plant. For this purpose he has to go out of his way to develop a high-quality product which will be on demand, to find a building land, to build a plant, to hire personnel, to train them, to lay in supplies of raw materials, to produce some products, to promote own trademark, to sale own products etc. These are huge inputs of own labor, time and health, and you get only petty money from the investment. This kind of work requires your attention and forces daily, monthly and yearly. No pains, no gains. However, a sweet stock market comes to hand as an alternative. You dont have to make any efforts. Your money and your share holdings rise in prices annually. Actually 10-15% annually is added to initial price for you just on paper. No headaches, no special muscle or mental efforts.
It is easy and clear, as free cheese in a well-known device. It is really difficult not to get deceived and not to trust economic analysts, who explain that the main thing is not a companys profitability but increase of rate value.
This is really very important for those who changed stock market into virtual. Stock market based of increase of stock price can utilize or tie up dollar in dozen times more than stock market based on shares value evaluation according to the real corporate profitability. It is really important for virtual stock market creators as they count tens of trillions of dollars.
By the way, options, futures and other stock rubbish are also acts in the same performance which we call virtual stock market.
Thats why even very smart businessmen were interested in being deceived and in believing in stock market, they had a hope to lighten their burden. In fact, real money you earned doing a job of work were changed in such market into virtual capital.
A stock market trick founders solved not only the problem of freezing dollars. Such market provided other fantastic opportunities for them; it provided them with chance to make vast sums of money.
If you control key events of this market and you are a man of means (if you publish dollars you have surely no problem with money as you can always open long-term credit account for yourself), if you create news which will influence the market, and if you set time and order for news to be broadcasted, you will make fantastic sums of money. For all that, your money (in spite of money of those chumps who also try to gamble on a stock exchange) will be not virtual at all, your real profitability will be not 10-15 virtual percents but real 40, 50, 60,,100%. And it happens year by year.
The main thing is that you always know exactly when you are going to collapse the market after your money is derived from it. And until that moment you will buy up controlling stocks of really profitable enterprises year by year in order to have a great part of real actives in your hands after economy collapse.
Stock market for other participants can be compared with Russian roulette in its most extreme variant when there are five bullets in a six-shot revolver. That is also a gamble, and even in such kind of gambles there are chumps who win, but there will be not many of them as results are determined with certain starting rules.
Stock market was really ensured with money only by 1-2%. That means that only 1-2% of money can be taken out by invertors without losses, as this market is virtual and it wasnt supposed that investors could leave this market simultaneously and take out at least the sum they paid at the entry.
This situation is similar to situation at a bank when all clients decide to take their deposits simultaneously. Such bank comes very close to bankruptcy. However, usually a bank should have assets which exceed its liability, and when a bank doesnt have enough cash to pay clients deposits back, this bank is supposed to sell assets in order to meet commitments. In any case a bank will pay at least 80-90 % of deposit back to its clients.
Stock market is totally different, there is no liability at all, nothing is guaranteed and nothing will be paid back ever.
The lowest price of stock market is a real price for shares, which depends on profitability of an enterprise. This price is dozen times lower than shares price on a virtual market.
Thats why I smile when I hear that the USA will assign 700 billion dollars to save their stock market and experts claim that it would be enough.
They need to publish 100 trillion dollars to save virtual stock market; this sum should cover the whole value of the market. But if this money is published the dollar will tumble in 10 times. Thats why nobody is going to save stock market in the form it existed during last decades. It is simply impossible.
Stock market fulfilled certain tasks and its creators dont need it anymore.
Certainly the market creators are very clever and they will imitate attempts to save stock market until a convenient moment. Prices on stock market will grow for several days (by the way, stock market creators can earn some more money once again as time and volume of growth is determined indeed by them). No stranger will be allowed to win in this gamble.
By the way, did you ever analyze the information given by sophisticated experts and analysts about reasons of stock price or oil quotation growth and fall?
For instance, a sophisticated person claims on CNN channel (or any other channel) that the oil price increased $10 per barrel, and the reason of such increase was the information that oil supply in the USA oil storages appeared to be 1 million barrels less than it was expected. Who and in which volume expected this and why expectations level should be the starting point for published supplies evaluation? Nobody tries to answer this question, but this is another question of the same performance.
First of all, let us say couple words about these 1 million barrels. That is about 131 thousand tons for Brent trademark (or about 2500 tank-wagons of oil). Really such volume of oil is to be consumed in the USA during one hour. There was consumed about 21 million barrels of oil per day in the USA in 2005. Now this is about 24 million barrels. 1 million barrels is 1/8760 part or about 0,012% of annual oil consumption in the USA. One million barrels costs 100 million dollars (if price is 100 dollars per barrel). These 100 million barrels are not lost, they didnt disappear. This oil is just not brought to oil storages yet. Actually its not really certain that oil is still not brought and there is no oil in the storages. He who knows nothing, doubts nothing. What we have here is a piece of informative news for the market. This striking information results in cost increase of annual world oil production up to 228 million of dollars (10 dollars x 7,6 barrels in ton x 3 billion tons).
You can evaluate experts intelligence yourself when they explain you the reason of price increase up to10 dollars per oil barrel. 99% of other comments by financial experts from stock markets are of the same nature. And now you can make your own conclusion about how much was earned due to this piece of news and who did it.
And now lets talk about high price of oil. During last 8-10 years we could observe an increase of oil price. High price of oil solved during this period the same tasks as a stock market. It tied up dollars, but in spite of stock market it tied up dollars in real commodity.
Oil is the best choice to tie great amounts of money. It is possible to choose a wrong object and increase price for commodity, which will not be in demand in case price is too high. Oil is really the only commodity which is always in demand. Each citizen driving his own car can hardly be forced to use public transport, its practically impossible. Such person would better prefer to stay hungry but save this money to buy petrol and drive his car further more. Actually 69% of oil is refined into petrol or diesel fuel. But for all that oil ties not only money of big corporations but also money of usual citizens, as during last 10 years people possessed too much money and these means became also an early danger for dollar, which is the main commodity of the Fed owners.
Apart from direct tying up several trillion dollars, high oil price is also the best tool to increase prices for other goods (food, mechanical engineering etc.), as each price includes also energy and transport constituents.
Such annual additional rise in prices gave the opportunity to tie up several trillion dollars more.
So the only reason of extremely high price of oil during the last decades was the dollar publishers interest. They needed to delay a downfall for several years and get prepared to the managed collapse of the world economy.
In order to increase prices so much and clearly explain this fact later they organized a war in Iraq for cheap oil. But the real purpose was not oil control. The real purpose was to organize that Iraq oil wouldnt come to the market for several years and that instability in this region would influence on rise in world oil prices.
Lets continue.
It was ridiculous to observe the messages during spring and summer 2008 that special commission in the USA is looking for traders who are guilty of high oil prices, which makes economy of the USA suffer. Actually these traders were not found.
We shouldnt blame the Fed of the USA owners. These are just smart as a whip people, who achieved fantastic financial, political and military opportunities to influence our world. They are not obliged to take care of the whole humanity; they are not God after all. They didnt assume such obligations and dont have any duties for anybody. They just do their business and build mechanisms for their business to develop and prosper. The purpose of this article is not to accuse anyone; the purpose is to show you a real situation and to help you save your money. Money of those of you who earned them with hard work and saved an average sum of money: 100 thousand up to 1-2 million of dollars. You will not save this money keeping cash. But that is a point for further discussion. And now we shall continue.
Do you know how exchange price of gold is set?
Do you think that there are trades on the gold-exchange and balance of supply price and demand price is actually exchange rate? You are wrong. Gold price is set by very clever and respectful people (and that is not irony as people who created such mechanism are really smart and powerful).
Gold price is set by Rothschilds, who meet in their private residence in London. According to exchange bids, which origin is actually unknown, they set gold price. I applauded them in my mind 6-7 years ago when they gradually cut gold price until it became 250 dollars per troy ounce. Than as if somebody waved a magic wand there appeared a lot of articles claiming that gold doesnt serve as treasure anymore, that gold lost its ensuring function of a part of gold and foreign currency reserves, and that central banks should get rid of gold. As result central banks of Switzerland and England sold half of their gold reserves to investors. This is about 2500 tones, as far as I know (just guess who bought it). Also as far as I know, central banks not only of England and Switzerland made such decision.
During next 3 years gold price increased to more than $1000 per ounce.
Now the price is about $ 750-800. But dont worry, it will rise up to $2000 and $3000 if it is necessary. Actually the price will be claimed not in dollars but in other currency which will replace dollar.
Everyone can imagine the perspectives of his own welfare if he had the right to set gold price for the whole world. Would he need to have any other business or this business is worth all other businesses in the world?
And now its time to tell what is going on now in the world and what is going to be next.
Now we can observe a managed collapse. We should understand that there is nothing awful for virtual market creators. Everything is under control. This stage of managed collapse is called to bring huge incomes and strengthen positions of the Fed owners in the whole world. A stage of collapse is inevitable as laws of Physics are at work and any financial pyramid is always breaks down in a certain time. Egyptian pyramids are
Until 1971 dollar was tied to gold content, so the US currency was supported with gold reserves of the USA. However since 1971 dollar and gold correlation was canceled and dollars were produced in unlimited amount. Dollar purchasing power was ensured not only with the USA GDP (as it usually happens) but also with the GDP of other countries in the world.
It is ok, but the states which indirectly supported the power of dollar with their economies never had control on volume of dollar emission. The USA government doesnt have such control either. The right of control has only the Fed of the USA.
The Federal Reserve System (which is the central bank of the USA) is a privately owned organization and it is a property of 20 private banks of the USA. Their principal business is to produce the world money. The Fed owners devoted a lot of time (decades, even centuries) and efforts to achieve that privilege. Here we can mention the 1-st and the 2-nd World Wars and Breton Woods Agreement in 1944 etc., and certainly the establishment of the Fed in1907.
Thus finally a group of private individuals obtained a right to produce dollars, determine the volume and terms of production etc. In the period since 1971 till 2009 the volume of dollars in the world was increased in dozens of times, it exceeded the real volume of products in the world in many times.
Fed owners as private organization first of all and secondly the USA held all the aces in this situation. The advantages of the Fed owners we will discuss later. As for the benefits of the USA, this is the opportunity during the last 38 years (since 1944 and especially since 1971) to live beyond their means.
The USA GDP makes up 20% of the worlds production, and consumption of the USA is 40% of goods produced yearly in the world. How is it possible? Its possible only as result of dollar emission without production increase and great demand for dollar in countries of the whole world. Exchange of goods and tangible assets for uncovered but popular dollars seems to be very similar to the situation when the Island of Manhattan was bought for $24 (in trinkets and beads) from the American Indians.
Many countries build in their economies to the system of dollar purchasing power support. If they also had a right to provide the control of dollar emission as well as if the USA government had the right of control, the world economy would never undergo a crisis. Real volume of dollars would correspond to the volume of assets, which support the currency.
However dollar emission control is provided only by several private individuals. After all, it is well-known that private individuals have private interests.
I didnt mean to criticize the Fed, the United States of America or someone else. Lets not rake anyone over the coals. However we should be realistic to get at a true picture of the world we live in. A true picture of the world will help you understand what is going on, what is doing to be next and what you can do to avoid crisis consequences or make them as soft as possible.
Now we have a question. What made the Fed to produce more dollars than the world economy required for stability?
The matter is that if you are a private individual and have a right to issue dollar, which is supported with the world economy, so you are tempted to start overproduction (if only you are no saint like Maria Theresa, but bankers of Fed are certainly not), as it gives you fantastic opportunities and privileges. That was the real purpose the Fed was established for, that was the real aim of affords to make dollar to become the world currency. Your dollar overproduction is your own business. It is the best business in the world. It is much more profitable than any other way to make money. Drugs, prostitution and arms traffic look like childish sports comparing with the right of dollar production.
Dollar overproduction was organized to get rich (what can be other reason?). With help of this actually virtual money you can buy not virtual but really liquid assets (companies, plants, gold and other asset).
In order to prevent the influence of unsecured part of dollar emission on the product market, which can lead to dollar devaluation (and this will inevitably happen if there are more dollars than products and assets in the world) genius Fed owners invented very effective ways to tie up, to freeze the considerable proportion of dollars in a virtual product.
First of all, they used stock market for this purpose. Usual and normal stock market was changed to a great extent into virtual. Shares of a firm really have a certain price. However, the main and almost the only shares value on a normal market depends on business profitability; that means that shareholders get their income as a part of company profit shared between shareholders. Shares grow in prices in case if annual profit from laid-down capital grows. That is the situation on normal stock market.
The situation will be different on a virtual stock market. You will be explained that profitability is not of a great importance. These 2, 3, 4 or 5% of corporate profit, which earn a corporation, and 10, 20 or 50% of this profit which are shared between shareholders dont mean anything.
The key condition is increase of capitalization and increase of shares value correspondingly. Its important that your share holding increased in value. That is the main income from investment. Actually that is a trick for chumps. And dont be disappointed with a fact that very smart and competent people are among these chumps. "The world wants to be deceived, so let it be deceived." Unfortunately, this rule is universal, has no exception and applies to very clever people too.
The situation on a virtual stock market is the following:
Imagine that a businessman made one or several million dollars. He starts thinking about widening of investment, for example about building of a new plant. For this purpose he has to go out of his way to develop a high-quality product which will be on demand, to find a building land, to build a plant, to hire personnel, to train them, to lay in supplies of raw materials, to produce some products, to promote own trademark, to sale own products etc. These are huge inputs of own labor, time and health, and you get only petty money from the investment. This kind of work requires your attention and forces daily, monthly and yearly. No pains, no gains. However, a sweet stock market comes to hand as an alternative. You dont have to make any efforts. Your money and your share holdings rise in prices annually. Actually 10-15% annually is added to initial price for you just on paper. No headaches, no special muscle or mental efforts.
It is easy and clear, as free cheese in a well-known device. It is really difficult not to get deceived and not to trust economic analysts, who explain that the main thing is not a companys profitability but increase of rate value.
This is really very important for those who changed stock market into virtual. Stock market based of increase of stock price can utilize or tie up dollar in dozen times more than stock market based on shares value evaluation according to the real corporate profitability. It is really important for virtual stock market creators as they count tens of trillions of dollars.
By the way, options, futures and other stock rubbish are also acts in the same performance which we call virtual stock market.
Thats why even very smart businessmen were interested in being deceived and in believing in stock market, they had a hope to lighten their burden. In fact, real money you earned doing a job of work were changed in such market into virtual capital.
A stock market trick founders solved not only the problem of freezing dollars. Such market provided other fantastic opportunities for them; it provided them with chance to make vast sums of money.
If you control key events of this market and you are a man of means (if you publish dollars you have surely no problem with money as you can always open long-term credit account for yourself), if you create news which will influence the market, and if you set time and order for news to be broadcasted, you will make fantastic sums of money. For all that, your money (in spite of money of those chumps who also try to gamble on a stock exchange) will be not virtual at all, your real profitability will be not 10-15 virtual percents but real 40, 50, 60,,100%. And it happens year by year.
The main thing is that you always know exactly when you are going to collapse the market after your money is derived from it. And until that moment you will buy up controlling stocks of really profitable enterprises year by year in order to have a great part of real actives in your hands after economy collapse.
Stock market for other participants can be compared with Russian roulette in its most extreme variant when there are five bullets in a six-shot revolver. That is also a gamble, and even in such kind of gambles there are chumps who win, but there will be not many of them as results are determined with certain starting rules.
Stock market was really ensured with money only by 1-2%. That means that only 1-2% of money can be taken out by invertors without losses, as this market is virtual and it wasnt supposed that investors could leave this market simultaneously and take out at least the sum they paid at the entry.
This situation is similar to situation at a bank when all clients decide to take their deposits simultaneously. Such bank comes very close to bankruptcy. However, usually a bank should have assets which exceed its liability, and when a bank doesnt have enough cash to pay clients deposits back, this bank is supposed to sell assets in order to meet commitments. In any case a bank will pay at least 80-90 % of deposit back to its clients.
Stock market is totally different, there is no liability at all, nothing is guaranteed and nothing will be paid back ever.
The lowest price of stock market is a real price for shares, which depends on profitability of an enterprise. This price is dozen times lower than shares price on a virtual market.
Thats why I smile when I hear that the USA will assign 700 billion dollars to save their stock market and experts claim that it would be enough.
They need to publish 100 trillion dollars to save virtual stock market; this sum should cover the whole value of the market. But if this money is published the dollar will tumble in 10 times. Thats why nobody is going to save stock market in the form it existed during last decades. It is simply impossible.
Stock market fulfilled certain tasks and its creators dont need it anymore.
Certainly the market creators are very clever and they will imitate attempts to save stock market until a convenient moment. Prices on stock market will grow for several days (by the way, stock market creators can earn some more money once again as time and volume of growth is determined indeed by them). No stranger will be allowed to win in this gamble.
By the way, did you ever analyze the information given by sophisticated experts and analysts about reasons of stock price or oil quotation growth and fall?
For instance, a sophisticated person claims on CNN channel (or any other channel) that the oil price increased $10 per barrel, and the reason of such increase was the information that oil supply in the USA oil storages appeared to be 1 million barrels less than it was expected. Who and in which volume expected this and why expectations level should be the starting point for published supplies evaluation? Nobody tries to answer this question, but this is another question of the same performance.
First of all, let us say couple words about these 1 million barrels. That is about 131 thousand tons for Brent trademark (or about 2500 tank-wagons of oil). Really such volume of oil is to be consumed in the USA during one hour. There was consumed about 21 million barrels of oil per day in the USA in 2005. Now this is about 24 million barrels. 1 million barrels is 1/8760 part or about 0,012% of annual oil consumption in the USA. One million barrels costs 100 million dollars (if price is 100 dollars per barrel). These 100 million barrels are not lost, they didnt disappear. This oil is just not brought to oil storages yet. Actually its not really certain that oil is still not brought and there is no oil in the storages. He who knows nothing, doubts nothing. What we have here is a piece of informative news for the market. This striking information results in cost increase of annual world oil production up to 228 million of dollars (10 dollars x 7,6 barrels in ton x 3 billion tons).
You can evaluate experts intelligence yourself when they explain you the reason of price increase up to10 dollars per oil barrel. 99% of other comments by financial experts from stock markets are of the same nature. And now you can make your own conclusion about how much was earned due to this piece of news and who did it.
And now lets talk about high price of oil. During last 8-10 years we could observe an increase of oil price. High price of oil solved during this period the same tasks as a stock market. It tied up dollars, but in spite of stock market it tied up dollars in real commodity.
Oil is the best choice to tie great amounts of money. It is possible to choose a wrong object and increase price for commodity, which will not be in demand in case price is too high. Oil is really the only commodity which is always in demand. Each citizen driving his own car can hardly be forced to use public transport, its practically impossible. Such person would better prefer to stay hungry but save this money to buy petrol and drive his car further more. Actually 69% of oil is refined into petrol or diesel fuel. But for all that oil ties not only money of big corporations but also money of usual citizens, as during last 10 years people possessed too much money and these means became also an early danger for dollar, which is the main commodity of the Fed owners.
Apart from direct tying up several trillion dollars, high oil price is also the best tool to increase prices for other goods (food, mechanical engineering etc.), as each price includes also energy and transport constituents.
Such annual additional rise in prices gave the opportunity to tie up several trillion dollars more.
So the only reason of extremely high price of oil during the last decades was the dollar publishers interest. They needed to delay a downfall for several years and get prepared to the managed collapse of the world economy.
In order to increase prices so much and clearly explain this fact later they organized a war in Iraq for cheap oil. But the real purpose was not oil control. The real purpose was to organize that Iraq oil wouldnt come to the market for several years and that instability in this region would influence on rise in world oil prices.
Lets continue.
It was ridiculous to observe the messages during spring and summer 2008 that special commission in the USA is looking for traders who are guilty of high oil prices, which makes economy of the USA suffer. Actually these traders were not found.
We shouldnt blame the Fed of the USA owners. These are just smart as a whip people, who achieved fantastic financial, political and military opportunities to influence our world. They are not obliged to take care of the whole humanity; they are not God after all. They didnt assume such obligations and dont have any duties for anybody. They just do their business and build mechanisms for their business to develop and prosper. The purpose of this article is not to accuse anyone; the purpose is to show you a real situation and to help you save your money. Money of those of you who earned them with hard work and saved an average sum of money: 100 thousand up to 1-2 million of dollars. You will not save this money keeping cash. But that is a point for further discussion. And now we shall continue.
Do you know how exchange price of gold is set?
Do you think that there are trades on the gold-exchange and balance of supply price and demand price is actually exchange rate? You are wrong. Gold price is set by very clever and respectful people (and that is not irony as people who created such mechanism are really smart and powerful).
Gold price is set by Rothschilds, who meet in their private residence in London. According to exchange bids, which origin is actually unknown, they set gold price. I applauded them in my mind 6-7 years ago when they gradually cut gold price until it became 250 dollars per troy ounce. Than as if somebody waved a magic wand there appeared a lot of articles claiming that gold doesnt serve as treasure anymore, that gold lost its ensuring function of a part of gold and foreign currency reserves, and that central banks should get rid of gold. As result central banks of Switzerland and England sold half of their gold reserves to investors. This is about 2500 tones, as far as I know (just guess who bought it). Also as far as I know, central banks not only of England and Switzerland made such decision.
During next 3 years gold price increased to more than $1000 per ounce.
Now the price is about $ 750-800. But dont worry, it will rise up to $2000 and $3000 if it is necessary. Actually the price will be claimed not in dollars but in other currency which will replace dollar.
Everyone can imagine the perspectives of his own welfare if he had the right to set gold price for the whole world. Would he need to have any other business or this business is worth all other businesses in the world?
And now its time to tell what is going on now in the world and what is going to be next.
Now we can observe a managed collapse. We should understand that there is nothing awful for virtual market creators. Everything is under control. This stage of managed collapse is called to bring huge incomes and strengthen positions of the Fed owners in the whole world. A stage of collapse is inevitable as laws of Physics are at work and any financial pyramid is always breaks down in a certain time. Egyptian pyramids are
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