Libya and Africa’s New “Gold Backed” Currency

27 Aug

This is a story I picked up yesterday:

CAIRO: Fallen Libyan dictator Muammar Gaddafi may have emptied the country’s estimated gold reserves worth $ 10 billion and will use it to buy protection and wage a guerrilla war, the nation’s former chief banker has said.

“Libya had gold reserves worth $ 10 billion in Tripoli. Now that Gaddafi is on the run, he may have taken some of this gold”, Al Jazeera quoted former Libyan Central Bank chief Farhat Bengdara as having told an Italian daily.

Bengdara alleged that Gaddafi may use this bullion to corrupt tribes for his protection and saw chaos. The Libyan banker had deserted the Gaddafi regime few months ago.

The story is out of India, perhaps originating in Tel Aviv but more likely Zurich.  The story is false, insanely so.  Gaddafi’s gold reserves were his plan for creating a 100% gold backed currency for Africa.  However, with only 9 billion dollars in gold, this was all talk.  What was Gaddafi really up to?

What was this Africa bank about?

The story is interesting, both good and bad.  In order to collateralize a currency that he claimed to be based on gold, required him to include other banks at a 20 to 1 ratio to underwrite his “reba-free” or “no interest” currency.

The problem was that the banks he went to were part of the American Federal Reserve system and to service his debt, the same 3% discount rate that pushed the US into the financial toilet would apply.

Gaddafi had only 144 tons of gold.

In effect, Gaddafi was recreating the Federal Reserve System for Africa, every bit of it, except he would be appointing himself “Alan Greenspan” for life.

His hard currency, at the time worth less than $3 billion, would barely build an oil refinery much less fund currencies replacing the nearly 1 trillion US dollars floating around Africa at the time, not to speak of the Swiss Franc’s, Euros and Pounds.

In the end, Gaddafi would end up with near dictatorial power over smaller states and never address issues of existing debt.  Recent events in the EU demonstrate the clear failure of multinational currencies.

The goal was always a tool of control, pure colonialism, Arab dictatorship over the inferior “blacks” of Sub-Saharan Africa

In fact, Gaddafi, the banker’s enemy was simply an agent for the European banks, the same banks that turned on him in 2008.  Currency backed by debt, underwritten by interest, even with a pittance of gold, as with Britain and the US, is still fiat currency, no matter how many speeches you make.

The Long Game in Libya


Al Queda – How Hyped Are They

Civil War.  This is the goal, with more money to be made peddling, not just Libyan conflict but building a “legend,” inflating the phony ”Al Qaeda doll” and dragging the Bush era “war on terror” back to life.


Imaginary Al Qaeda cells are building across Africa today, CIA and Mossad signature false flag operations opening the door.

The move, what drives it?  With Karzai leaving office, with war with Iran on the eternal back burner, the new Cold War, the one that was meant to last for generations is running out of gas.

Even Afghanistan gets tired of fighting, if you can believe that.  They are only just so stupid.

Pakistan will only allow Zardari just so long, playing the puppet before he is brought down.

India will take only so much exploitation, so much financial ruin in the midst of economic boom.

Theatre will move to Africa and Libya has been pre-staged as “ground zero” for the destabilization of Nigeria, the real target, and the entire Sahel.

Central Asia is considered “in the bag,” a “done deal” as it were.  In the process, oil, and gas revenue has proven to be less dependable than the war economy and the debt it creates.

It is easier to start a war than to find oil.  And, on to Libya and on to Africa it goes.

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Posted by on August 27, 2011 in Uncategorized


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