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The Golden End Game – A Thought Experiment - Part One

Cognitive Dissonance's picture





 

The Golden End Game – A Thought Experiment

 

Part One of Two

By

Cognitive Dissonance

 

With limericks by The Limerick King

 

This is part one of a two part exploration (part two found here) into what the world might look like after a total or partial collapse of the currency/economic system from the perspective of holding Gold. As the title explains this is a thought experiment, not a dissertation filled with footnotes and references. Consider it one man’s flight of fancy, so take what you need and leave the rest. Anyone who claims they know what will actually happen is a fool greater than me.  

As markets are starting to sink

The end could be here in a wink

So should I prepare?

Should I even care?

My PMs will save me!!! (I think......)

(The Limerick King)

 

When I first entered the business 20 plus years ago the firm I started with had a mentoring program that paired the fresh faced rookie with a veteran for the first 6 months. The idea was that for a piece of the action paid to the veteran from the rookie’s commissions, the veteran would offer hands-on review, insight and support. While some on both sides of the office divide groused over this arrangement, from management’s point of view it made all the sense in the world because now the office was raising the rookie, not just one or two managers.

I found the mentoring system to be beneficial simply because I was coming in quite a bit older than the younger shark chum fresh from the diploma mills. Most of them felt they had the world by the balls, thus as long as they showed up the (fiat) spice would flow. But I knew these financial chop shops had a tendency to chew up the rookies, and then spit them out once they’d been used and abused. Since I didn’t want any part of the rookie churn and burn I relished the chance to work with a veteran and develop good habits early rather than be left with trying to break many bad habits later. 

Luckily I was paired with an old pro who quickly took a shine to me and showed me the ropes, spending far more time with me then he was ever compensated for. In fact the experience re-invigorated him and he went on to become the top producer of the office two years running. The more I learned the harder he pushed, reasoning that since I knew this, I damn well better know that. So he took most of his compensation in the form of my spilled blood and an inner satisfaction that he was making his mark. For me, the processes, morals and methods he taught me are still paying sweet dividends two decades later.

One of his demands was the weekly ritual of a portfolio review of each holding in every client account. When Friday came round he insisted I justify why this or that position was in a client’s account and quite frankly it drove me crazy. I would complain that we had done the same damn thing every week for months and not much had changed. So why was he still asking me the same questions again and again. And every time I complained he would respond with a question of his own, often dramatizing it by looking out the window or throwing the Wall Street Journal on his desk. Prove to him that the world was the same one that existed when we reviewed the accounts the last time.

And of course he was right; the world was not the same and often quite different from week to week. This trial by fire is something I still force myself to go through every Friday afternoon. Knowing the client and the world situation, if I can’t justify the position, why the hell is it still in the account? But of equal or greater value to me were my mentor’s questions each time I tried to add a new position to an account. I hated his probing and poking and often I took it personally. And that bastard knew where all my buttons were and delighted in pressing every single one until I finally wised up and stopped letting him goad me.

After we had discussed why I was adding the position, and well before I was allowed to call the client and make the pitch, he always had one final question for me. How was I going to dispose of it if things went wrong in a hurry? Or in his words, “What’s the end game on that?” At first I felt his question was downright stupid and my rote answer was always that I would cross that bridge when I got there. But he never let me get away with my intellectual laziness and he’d ask the same question 6 different ways until I saw all the possible pitfalls based upon the knowledge I had at the time.

I can still hear him today. “Don’t ever take on a new position until you have thoroughly considered how you will dispose of it under the worst of conditions.” It forced me to look beyond my nose and consider how circumstances change, and with those changes the ability to sell something that, while saleable today, might not be tomorrow. Liquidity and desirability can dry up quickly and always when it is least convenient to you and your client. This perspective broadening exercise was extremely useful beyond my business world because it can and should be applied at all (not just major) life decision points.

As this Keynesian game nears an end

And the Banksters can no longer lend

What will we all treasure?

Will gold be our measure?

Or the love of our family and friends?

(The Limerick King)

So……what’s the end game here folks? Regardless of whether we are USA centric or more globally focused, the fact is that we ‘own’ a political, economic and social portfolio that is the foundational basis not only of our wealth and investments, but of our very lives and those of our family, friends and neighbors. So have we done a fearless and thorough portfolio review or are we simply buying Gold and other precious metals, along with guns and various food stuffs, and hunkering down to wait out the storm?

I don’t pretend to have all the answers, let alone the proper questions. So don’t look to me for instructions when the T-1000 HFT bots crest the ridge and cream our asses. But a little proactive introspection is well warranted here considering we are now entering uncharted territory. And it is uncharted territory; at least for plebs such as you and me, even though there have been fiat currency collapses throughout history. This time really is different (as were all the other times for each generation caught in the middle) if for no other reason than the massive use of financial leverage combined with the humongous explosion in global population over the last 100 years.

Don’t get me wrong. I’m basically a hard asset guy at this point in the great unwind. But as I have said in the Zero Hedge comment section several times before, it’s one thing to grow and/or protect your assets and wealth in Precious Metals (PMs) (and other hard assets) and another thing entirely to move those assets to the next game board when this one is reset, replaced or recreated.

I see and hear a great deal of cognitive dissonance in many of the articles and comments discussing PMs as the best vehicle to use when moving to dry land……….that is, when dry land finally does rises from the ocean floor to form the new capitalist capital called Atlantis Redux. I find that many are kind of fuzzy on how the actual transition/transaction will go down and nearly all just sort of insert “and then a miracle occurs” at some point in the discussion when they recite the precious metals (PM) mantra.

Let’s just say for a moment that our Gold, Silver, Platinum and Gold-plated Tungsten have all quintupled in price (as measured in whatever fiat is the favorite at the end) and we are now all sitting pretty. Do we really honest-to-God no-fingers-crossed cherry-on-top believe that the powers-that-be will simply allow us to mosey up to the cashiers cage and redeem or convert it all for whatever monetary unit reigns supreme? Really? Because from my point of view it’s just crazy talk to assume that the enemy of the state (Gold and other PM’s) will be welcomed home with a warm welcoming embrace.

Now before you bite my head off (remember boys and girls, this is just a thought experiment) understand who this essay is directed towards. Or rather isn’t directed towards. If you are capable of purchasing several LBMA Gold bars and are able to store them overseas and you can easily relocate yourself to where your Gold is, then this rant really isn’t directed towards you. While you may not be a power-that-be, you are in a class above the middle class regardless of your protestations to the contrary. I’m not saying you don’t share many of the problems others are facing, only that you have a great deal more flexibility to deal with them.

In the same respect, if you own several Gold Eagles and a couple hundred ounces of Silver, then you are also not to whom I’m speaking. Most likely you will run under the radar because your small amount of Gold and Silver is being held in the form of the U.S Eagle coin which, while not exactly produced as a numismatic, is a US Mint produced Gold and Silver coin that is considered US legal tender. So from my point of view, if Gold and Silver Eagles are held in small quantities, they will not be considered an investment, but rather savings or collectibles.

The people I am talking to are those who are converting a substantial portion of their investable assets into physical Gold. Or who are selling other assets or breaking qualified retirement accounts (IRAs, 401(k)s etc) in order to purchase relatively large amounts of physical Gold and Silver, though the focus of this essay is Gold. Their intent is not only to grow their PM assets, but to carry the bulk of their wealth over to the Promised Land when the current Ponzi Empire crashes and burns.

You know who you are and unfortunately so do the government goons if you have ever bought any quantity of Gold from an established dealer with a check, a cashier’s check, wire, electronic funds transfer or other traceable method. And because of Check 21 everything is traceable nowadays (even cash within a few degrees of separation) if you used one of these instruments to gather the cash.

The End Game is here so I'm told

Will the last valued asset be gold?

If so, keep it tight

From the thieves in the night

For they know every ounce that you hold

(The Limerick King)

Where I have a problem with the logic used by some is this. There seems to be a general consensus that Gold is the arch enemy, the Kryptonite if you will, of the out of control fiat creation by central authorities in order to extend and pretend while looting the executive bathrooms of the Gold faucets and monogrammed bathrobes. This understanding, along with a host of others, is always proffered when explaining the reason behind PM manipulation and the entire PM paper racket. And I don’t necessarily disagree with this general supposition.

What I don’t get is the idea that if Gold has been considered ‘contrary’ or ‘dangerous’ to the unfettered debasement of fiat in the past and present, thus the reason for the manipulation, then why would this suppression and resistance to the ‘Golden enemy’ by the powers-that-be suddenly disappear precisely when the powers (or more accurately their agents and puppets) are desperate and have the most to lose? It is clear to me, and judging by the comments clear to many others here on Zero Hedge, that these guys and gals play for keeps, consistently pushing nearly all their chips to the center of the table in an endless game of bluff and intimidation.

More important to me, at least for the purposes of this essay, is that those lovable sociopaths would rather burn to the ground than play to lose or walk away. This, by the way, is precisely why they rarely lose. They play for keeps and they’ve been doing so for thousands of years. They not only have the power, but they know how to use the power they have. Meaning they are ruthless cutthroat bastards who see you and me as cattle to be consumed or beasts of burden to be used. And I’m being kind for the sake of the weak stomachs among us.

As best as I can tell the general assumption is that when the partial or total collapse comes (not if because we are talking worst case scenario here) the failed powers that be, perhaps inspired by some public hangings and decapitations, will pack up their lawn chairs and vacate the levers of power, allowing more responsible adults and even some advanced children to take over and save the day. Or at the very least, the expectation is that the new kids on the block will clean up the mess left behind by those traitorous bastards and that they will do so in a reasonably fair, open and egalitarian manner. Let me take a moment to collect my thoughts before rendering my opinion on this matter.

I DON’T THINK SO!

Why am I so confident of this? Well, from studying history of course. And by history I mean good old fashioned world history dictated and approved by the Empire for high school or college textbooks. You see, from the perspective of long term history, while we may have a new production company and support system for the global Ponzi screenplay, as well as fresh faces to fill the role of puppets, enablers and useful idiots, and even a (relatively) new political system to emotionally and culturally unify us all as we labor away in our hamster cages, the Ponzi is at its central core the oldest con in the books.

Essentially we are all experiencing plantation living at its highest and most efficient evolution to date, where the sole purpose of our existence is to serve our immediate masters who then serve their masters who then serve their masters in an ever narrowing pyramidal hierarchy. This goes on until it reaches the point where at the top we find several hundred to a thousand elite scattered across a number of blood-line families that share the power and spoils. And there is serious evidence available to be examined by the determined researcher that there might even be another level (or two) above that.

BTW for the most part, but with certain exceptions, you will not find these elite of the elite on any list of richest people in the world. I personally suspect that many of those who you do see listed are in fact the public caretakers of the wealth of others and who are paid handsomely to play the role and weather the slings and arrows of public scorn in exchange for growing the assets and guarding the anonymity of the real owners of Mother Ship Earth.

The Powers That Be are concealed

Their identities won't be revealed

They will hide from the light

And continue their fight

Until all of our fates have been sealed

(The Limerick King)

History is full of examples of crumbling empires and nearly all of them seem to share several characteristics. First and foremost in my mind is that regardless of how dire things may seem to be, the collapse progresses much slower than expected. It always seems like today’s bad news signals the end of the world as we know it….until tomorrow’s even worse news hits the ticker.

Grab Mr. Peabody and fire up the WABAC (pronounced ‘wayback’) machine to travel a few years into the past, say to 2007, and consider some of the headlines we saw and the reactions they provoked. What were considered Earth shaking events back then are nearly routine today, no big deal really. This is a severely misunderstood and underappreciated, and thus under weighted, counter balancing force to the general insanity level. The (normalcy bias) force is strong in you young Skywalker.

I suspect this isn’t so much because the powers that be are holding it all up, but rather it is the common folk living on the ground floor of this insanity that are doing the heavy lifting. Never underestimate the desperate desire of those who are chained to the plantation to preserve that plantation even when it would be easier and saner just to walk away. This Stockholm syndrome conditioned mind is of course exploited by the masters to rape and pillage long past the normal or even expected expiration date of the Empire.

Also, collapse (partial or total) is a relative term. For the financial elite, politically powerful and top tier business people, collapse is just another word for a really severe business cycle downturn. When conditions become harsh, the script is always the same. Shed useless eaters, strip all usable assets and sell the estate to the last of the greater fools, then move on to a more favorable business location. So by the time the barbarians are at the gate, the rich and powerful are long gone and have stripped most of the wealth from the kingdom.

In the modern era this means that the rape and pillage of the middle class is the purpose and eventual outcome of any severe recession/depression. So of course it is the purpose of the ongoing collapse. See ‘The Great Depression’ of the 1930’s for the Cliff Notes on the coming fun and games…exponentially escalated by $708 Trillion (notional value) in derivatives. But always remember that the explosive firepower released back in the 1930’s is nothing compared to the massive potential energy that is about to be released. The real purpose of can kicking is to try to slowly release that energy rather than to allow it to go BOOM all at once. Consider it a form of extended game play for the elite.

When the global reset is complete

And the Kleptos are in full retreat

Secure family and friends

For their game never ends

And they'll never accept their defeat

(The Limerick King)

The true powers that be have a long history of backing all sides in nearly every conflict or collapse. So it is not a stretch to assume they are supporting the very barbarians who are beating the door down while also relocating their kin from the collapsing empire. If you spend any time studying the blood lines of the rich and powerful, despite our general indifference to this seemingly inconsequential subject matter, to Earth’s owners the blood lines are carefully massaged, managed and manipulated in order to maintain a balance of power and influence among the bickering kings and queens. Do not underestimate the utmost importance of blue blood hierarchies or of the interconnected web between supposedly bitter enemies and plantations/countries. If it is important to them, then it should be considered life and death to us. 

Inside the sprawling plantation the conditioning of the slaves is ongoing and ever changing and relies heavily upon the older, more experienced slaves to indoctrinate and condition the new ‘volunteers’, thus cementing the bond that is often expressed as nation or community…..or more properly ‘misery loves company’. For several thousand years religion was the center of the indoctrination process and controlled by the blue bloods, all of whom had no aversion to donning priest’s robes to spout the all important rites and rituals. A close inspection of history shows that while the vehicles of power shifted and morphed, the methods used and the personalities involved always remained the same.

Closer to the modern era, there was a shift to the sharing of power between religious centers and blue blood families who presided over kingdoms. Again, there really wasn’t a divide, only the public appearance of division. Mom usually decided which son became King and which became a Cardinal or Pope, thus assuring her it all remained in the family.

Over the last several hundred years the center shifted once again to the façade of central governments organized under ideological memes such as democracy, communism, socialism and of course the more traditional blue blood families aka Kings, Queens and royal families, sometimes along with a quasi democratically elected congress designed to create a false sense of self control for the naïve native slaves.

Regardless of the method or ideology used today, they are all simply more sophisticated methods to organize and exploit the plantation and nothing more. In much of the so called ‘free’ world today, giving the slaves the illusion of freedom of (limited) choice has been found to dramatically increase productivity. An intelligent plantation manager will allow any work rules as long as they still maintain order while increasing efficiency because strip mining the human and mineral resources of Earth is the one and only goal of the ruling elite.

Preserving your wealth can be fun

The first thing you'll need is a gun

Trust no one you meet

Each night soak your feet

Just in case it is prudent to run

(The Limerick King)

Regardless of whether the financial elite remain in place or move on during or after the collapse, there will still be some type of procedure set up to exchange the old slave script for the new slave script. Without a doubt there will be different tiers or exchange rates depending upon which social and/or economic class you reside in. And rest assured the transition will not be fair and it will be used to extract whatever remaining wealth the middle class still holds. This is a given, but it will not be readily obvious or even visible since most of the dirty work will occur behind closed doors and well in advance of the general scrum.

There is also no doubt, once again predicated by a careful reading of history, that regardless of the leadership actually holding office, when the gates are busted down (or as is more likely the case pulled down from within, often via false flag attacks), in order to placate the increasingly restless slave population, fresh faces will magically appear from the cloning rooms to offer stirring speeches and heartwarming platitudes about how all the slaves must engage in mutual sacrifice and work even harder to ensure that the elite make a clean getaway before the cleansing fires are set and the system is finally rebooted. I can’t wait for the games to begin because I still have more cognitive room left over for that hope and change thingy.

Every crumbling Empire always reaches into the same bag of tricks when the heat is on and the slave nation becomes restless. After all, the elite must maintain order so that the fleecing can be completed. ‘Order’, especially near the end of the End Game, is usually maintained by a heavy handed police and/or military presence via outright martial law or the stealth version implemented by (executive) decree. Let the head bashing begin. Desperate puppet leaders will most certainly do desperate things, first to maintain their own illusion of power, then just to save their asses. Count on it.

Two tricks of the deception trade that often work hand in hand are scapegoat harvesting combined with war mongering, which usually leads to out-right-war in order to deflect attention and blame those evil elites over there and their supporting band of vicious baby eating enablers, indentured servants and wage slaves. And while it might be an old trick, even the oldest, it still works every single time it is used because we slaves would rather support the devil we know then to take a chance and actually live free. Spend enough time in a locked cage under dehumanizing conditions and the jailer no longer needs to lock the door anymore. We slaves will keep ourselves just fine, thank you very much.

While I could extend this list of common denominators for several more pages, let me cut to the chase and list the one commonality that is near and dear to my heart and the core function of every central government that administers the (crumbling) Empire……..to be a blood sucking parasite. The bottom line is that governments, Kings and religious orders do not ‘produce’ anything nearly equal to their consumption no matter how you measure it, unless you have been drinking their Kool-Aid. These entities will consume from all sources using one or more of the following strategies; regulation, taxation and ultimately confiscation.

In Chapter Two we will examine the third method as the end game worst case scenario draws ever near.

  

11-20-2011

Cognitive Dissonance

 

Special thanks to The Limerick King for his wonderfully apropos limericks. It is an insult to describe the process of condensing complex subjects into 5 lines of prose as ‘writing’. The term ‘stupid good talent’ just begins to scratch the surface of what The Limerick King has to offer. Thank you TLK.

I also wish to thank Dagny Taggart for the ongoing and wonderfully diverse conversation that always leads to further inspiration. Thank you Dagny.

 

PS: For those who just can’t get enough of The Limerick King, below please find some more of his work that just couldn’t be fit in. Momma always told me never to waste a single mouthfull of The Limerick King.

 

To those who think gold is the cure

For everything fake and impure

You may get your wish

If gold catches fish

By making an outstanding lure

 

As the great global reset draws near

Consider the things you hold dear

Will others agree

With the value you see?

If so you have nothing to fear

 

My wealth is so precious to me

Without it I just couldn't see

Life would be dour

I'd lose all my power

I'm spawn of The Powers That Be...

 


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Thu, 12/22/2011 - 23:27 | Link to Comment roccman
roccman's picture

If I were king and knew peak oil was going to collapse commerce - I would

1) Inflate a huge bubble and pop it just as oil was peaking - check housing with the fuse of ARMs (2003-2007)

2) Crash the JIT system - nearly check as the global economy grinds to a halt

3) Starve the population

4) Scrape the bodies off the streets - render them into bio fuel

5) Shoot whomever does not want to be chipped.

6) Rinse and repeat in 200 years when the population is in overshoot again and a kill off is ordained.

 

 

Sat, 12/24/2011 - 04:17 | Link to Comment geekgrrl
geekgrrl's picture

Roccman, I don't disagree with your logic, so much as the conclusions. If I was King, I'd be very concerned about my own personal security. Knowing that I am killing large numbers of people, I would be exceedingly afraid that someone would try to kill me in revenge. It is a story that goes back to the Greeks (ironically), and involves Hubris and Nemesis. Hired help can turn on a dime. Would you vest your life in their hands? You take the rich to be all powerful, yet I consider them weak, failing, about to fall.

Wed, 12/21/2011 - 14:48 | Link to Comment thegr8whorebabylon
thegr8whorebabylon's picture

Thank you for this forum CD, & T.  merry merry.

Wed, 12/21/2011 - 13:46 | Link to Comment Miles Kendig
Miles Kendig's picture

Good to see you doing your thing Cog.  Thanks for your contributions, I appreciate them and the threads they always seem to generate.

Ultimately much depends upon how this pile of crap gets handled.  Regardless, private exchange will always be around.  Necessity is the mother of invention while whiskey, tobacco and other like items always fetch a premium during rough sledding.

Best-

Wed, 12/21/2011 - 14:53 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Always nice to hear from you Miles.

I have no doubt that on a personal one-on-one level (barter) transactions will always be accomplished. The focus of the article was on those who are attempting to transition most of their wealth onto the next game board using Gold and Silver. It will not be as easy or profitable as they think.

Wed, 12/21/2011 - 16:43 | Link to Comment Miles Kendig
Miles Kendig's picture

Most likely true.  We'll see how far transparency goes with the financial construct and how it will get structured.

Wed, 12/21/2011 - 12:31 | Link to Comment outofhere
outofhere's picture

Great interpretation of the 'Protocols of the Wise Men of Zion' in laymens terms CD.

 

Thu, 12/22/2011 - 00:59 | Link to Comment outofhere
outofhere's picture

CD, if you want to check out something really real peruse this:

Nord William Davis, Jr. -- Northpoint Teams

Thu, 12/22/2011 - 01:05 | Link to Comment outofhere
outofhere's picture

P.S.  It may spur part 3.  Lesson 10.

Thu, 12/22/2011 - 00:47 | Link to Comment outofhere
outofhere's picture

read it 20 years ago.  Still freaky.  Keep spreading the truth.  I have!

 

Wed, 12/21/2011 - 13:16 | Link to Comment Miss America
Miss America's picture

Hello CD.

 

I always enjoy your writing.  You’re long winded.  …but so am I.  Anyhow, I’ve played this same game with readers many times, and it never worked very well. 

 

So many times, whenever I try to get Gold investors to at least “consider” opening their eyes to other perspectives…   all I get is hate mail.  (and it’s why this will get Junked by most of its readers here at ZH.  The junkers love their anonymity and safety from behind the keboard!)

 

I feel that the irony of gold is that it destroys impartiality.  Once you buy it, you buy its faith.  It seems like you have to believe in it.  …and once you do, then it seems to break down the ability to see anything else.  You tend to read others who also own it, and you all get into a re-affirming /vicious cycle / perpetual motion machine.  So IMO, gold bugs become blind to the fact that the hand they hold is the hand that holds them down.  The foresight they had, to purchase it, winds up blinding them!

 

I see it as a hedge, nothing more.  1 additional level of diversified insurance. 

 

So as I play this same game out, I just don’t see what “they” see. 

 

Here’s how I see it.

 

I see a somewhat “orderly” collapse.  No bombs and bullets.  In much the same way TPTB have been able to perpetually kick-the-can down the road, I see the same global “restructure-the-can down the road.”

 

The beauty of this virus is that everyone has it.  …and to quote Syndrome from the Pixar movie The Incredibles:  And when I'm old and I've had my fun, I'll sell my inventions so that *everyone* can have powers. *Everyone* can be super! And when everyone's super...  no one will be.”

 

In that same logic…   If everyone’s screwed….  then no one is!

 

So I don’t see a conversion desk, where you hand your gold over for the new regime’s currency.  I don’t see a barter system, where you hand slivers of gold for hot dogs. 

In fact, I don’t see the new system being very happy with you and your gold, since you didn’t have faith in the last system. 

 

To me, the ultimate insurance is productive land, and a massive investment in your network/community.

 

As a worst case scenario, when the creditors come demanding whatever, in exchange for a collapsing/hyper inflating debt that is owed, the needs of the creditors will be exposed.  China will see a massive import tax on food, Japan on supplies, etc…

 

To make the right bet is luck.  …but to once again quote Edna from the Incredibles:  luck favors the prepared!” 

 

So IMO gold is a hedge, nothing more, and not worth more than said land/community.

 

All the best,

Rich H / Miss America

Thu, 12/22/2011 - 00:55 | Link to Comment outofhere
outofhere's picture

"To me, the ultimate insurance is productive land, and a massive investment in your network/community."

Well said Miss A.  Doing exatly that as i reply.


Wed, 12/21/2011 - 12:10 | Link to Comment Dr. Engali
Dr. Engali's picture

Cd This is a great piece. I have been trying myself to run through the end game scenerios, as I do not believe for a moment the powers that be will let the masses carry their wealth through into the next system. I am looking forward to your conclusion. Personally I believe that there will be a great culling of the masses in the end game. It's funny when I hear about gold being in a bubble I have to laugh at those commentators. I have been in the business for some time and when I talk to clients about putting some of their wealth into gold and silver they look at me like I'm nuts. Then I get questions like..what do I do with it when I get it? Do I bury it in the basement? What good is it? And when I try to tell them it is to preserve their wealth then they say...well that is what CDs (no pun intended) are for. I can count on one hand the amount of clients who will actually take that advice to heart and purchase some precious metals. So when they say gold is in a bubble I know they are full of shit because your typical investor still wants nothing to do with it.

Thank you for the piece. I look forward to the conclusion.

Wed, 12/21/2011 - 13:06 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

You might be disappointed my friend. While I allude to some, I don't really state a conclusion. All I say is to stay nimble of mind and spirit.

Wed, 12/21/2011 - 13:25 | Link to Comment Dr. Engali
Dr. Engali's picture

I doubt I will be disappointed. I always enjoy your work. It's both entertaining and thought provoking. As far as being long winded, well if I can muddle through FOFOA I can  read anything :>

Thu, 12/22/2011 - 01:10 | Link to Comment outofhere
outofhere's picture

Read and reread.  Just make sure to get the gist and incorporate.

Wed, 12/21/2011 - 12:02 | Link to Comment tricky rick
tricky rick's picture

CD...  beautiful 'thought' experiment.  thanks for this and looking forward to part 2.

IMO Oz would focus most of his attention to the vast herds and delegate the sheperding of PM maniacs to  'special' bred of enforcers.  Brownshirts a/o to the SS in Germany.  Notice the new law from last week:  Military a/o to ATF, TSA, FBI  (take your pick).

anybody have a crystal ball I can borrow for a year? 

 

Wed, 12/21/2011 - 11:01 | Link to Comment Shizzmoney
Shizzmoney's picture

People also forget the possibility that if society REALLY loses its shit, PMs may not even be worth anything, either.

In the end, it's just a really shiny metal.  You can't eat it, you can't program it to do stuff (although platinum can be used to make cpu chips), it can't produce things.  All it is, is human's barter measure of last resort.

Wed, 12/21/2011 - 11:55 | Link to Comment SheepDog-One
SheepDog-One's picture

True, golds real measure of 'worth' was in shipping trade, so that you didnt have to figure out what someone 2,000 miles away wanted in exact exchange for what you wanted to buy from them, gold was universally accepted as a 'marker' of pretty much 'set' worth. So you could just load up the ship with some gold and set out knowing you can buy whatever you want pretty much hassle free. 

 

Wed, 12/21/2011 - 10:53 | Link to Comment onebir
onebir's picture

Suffered 'stamina dissonance' after about five screens :s

Wed, 12/21/2011 - 10:26 | Link to Comment FunkyOldGeezer
FunkyOldGeezer's picture

What a load of old tripe! This is the biggest, daftest conspiracy theory ever.

The whole article is based on one very important false assumption. That is, 'the elites' know how to play the game better than the 7 billion others in the world, which in turn must infer that 'the elites' have the absolute best brains, the absolute highest intellects AND it is/has been genetically handed down through successive generations. That patently, CANNOT be guaranteed. If it were, we would have seen it being used by more than the few elites of this world by now and it would be public knowledge.

So who exactly are the few in the highest two tiers, aliens???

 

Wed, 12/21/2011 - 17:21 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture

So who exactly are the few in the highest two tiers, aliens???

dont expect to get an answer to that question around here.  It's 'they', didnt you know?

Wed, 12/21/2011 - 10:57 | Link to Comment Stuck on Zero
Stuck on Zero's picture

If you want to know how gold holders will be treated when the elites want your stuff consider how the Feds treat people who have carefully stored away materials for sale after a hurricane.  The Feds label the free merchants "hoarders" and seize everything as if the the service they performed is a criminal act.  Watch the headlines after every natural disaster: "Gougers Sock it to the Victims", "Hoarders Drive Prices Up for the Unfortunate", "Criminal Gas Stations Jack Up Prices in Crisis"etc. 

When the Powers want your gold they will make you out as a criminal.  It's history.

Wed, 12/21/2011 - 11:57 | Link to Comment SheepDog-One
SheepDog-One's picture

Yea exactly, doesnt take much for the govt to label people 'hoarders', DHS/FEMA already says if you have more than 7 days worth of food stored, youre likely a 'terrorist'. No shit.

Wed, 12/21/2011 - 09:42 | Link to Comment BlackVoid
BlackVoid's picture

Good article, but some flaws in the logic.

1. TPTB are also using gold to transfer their wealth to the other side. Otherwise why would they discourage gold ownership? Why would they promote paper gold? All is that the "gold bugs" have is a very small amount compared to what they have. Why would they cara about a very very small minority who made it through with their money?

2. Gold has already risen 6 fold and now those who bought at the bottom are already sitting pretty. They can freely sell it now.

3. Even if gold is outlawed in the next system, there will be a black market. I am from East Europe and there was a black market for it in the 1950s here at the height of communist opression. Gold could be sold under the counter. It could also get you in jail if you got caught, that is true.

Wed, 12/21/2011 - 13:04 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

You will see that I cover what you mention in Part Two. Stay tuned kind sir.

Wed, 12/21/2011 - 13:20 | Link to Comment weyes1
weyes1's picture

Bring it on.

(Please)

Wed, 12/21/2011 - 08:42 | Link to Comment Optimusprime
Optimusprime's picture

This is your best so far, IMHO.  Thanks CD.  I await part 2.  Your tendency to seek general patterns in the welter of detail is well-deployed here. 

 

And the Limerick King is terrific!  When will he publish a book?  Or has he already and I just missed it?

Wed, 12/21/2011 - 08:16 | Link to Comment Fix It Again Timmy
Wed, 12/21/2011 - 08:16 | Link to Comment boogey_bank
boogey_bank's picture

My compliments, CD

You looked into the soul of ZH people,

bravo, bravo bravo

Wed, 12/21/2011 - 13:03 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Towards the end of Part Two I will even challenge them a bit. Stay tuned.

Wed, 12/21/2011 - 08:08 | Link to Comment Moe Howard
Moe Howard's picture

This current bs is nothing new. Why do you think they find hordes of Viking Gold and Silver etc? Because TPTB back in the day, and other thieves, made it necessary to sink your shit that you have accumulated. Sometimes you have to look at stored wealth as multi-generational. You may have to continue the poor charade your whole life, teaching your children to add to the hoard, not subtract, only take when emergency strikes. 

There is no magic "cash out" and happily ever after. There is no great reset, and never was. PMs are merely a traditional way of storing wealth that doesn't rot, can be buried or sunk, and still retain its' PMness. Three thousand year old Greek Gold Coins are still gold, for example. They don't tarnish or rust away. That is the point. If you are INVESTING then you are still in the wrong mindset. That is THEIR game.

Wed, 12/21/2011 - 09:38 | Link to Comment dark pools of soros
dark pools of soros's picture

These are the points to remember.  People react to their immediate surroundings which empowers the few that give a damn about absolute control.  It allows them to use symbols and fear, religion and propaganda, and the human limitations all to allow a few to rule without question.

 

all the current financial voodoo boils down to a scientific method to replace the same results of royalty

 

 

Wed, 12/21/2011 - 09:46 | Link to Comment falak pema
falak pema's picture

A man and his money are soon parted.

A man who runs along the silk route has twenty days to come back to claim wife.

Beyond that fatal date, she is free to take new mate.

Such was custom in Middle Ages along the silk route of Samarkand.

It was a times when money came fast and easy but love ran freely like mountain rivulets

You made your pick. Either you camel rode along arid routes, from Kashgar to Acre, Constantinople, with your Khan-Atlas silk embroidery, unmatched and unparalled, sign of exquisite refinement that West envied mysterious Orient...Or you cared for wife and home in Ferghana valley, where sweet Margilan lay, where silk worm grew and produced loom and then sublime embroidery. The valley of apricots and pomegranates, of the Alfalfa leaf. Besides mighty Syr Daria where Alexander built Alexandria Eschathe, the farthest one, limit of western conquest.

Being a trader along silk road was a life lived intensely in wild unknown, full of lonely starry nights, when you were king of your soul.

Your successors would be MArco of Polo fame, or Ibn BAtutta of Berber name.

You were the passer of trade, of oriental wealth, since the days mighty Caesar ruled in great Rome and Caesar's wife reclaimed silk robe, as sign of her uber-alles status.

It made Cato and Cicero wild with rage. "To see all this hard earned gold won with our blood, spilt in building Empire from Carthage to Rhine forrest, fly thus to Cathay; to dress our sighing wives in silken scintillation, we do become Midas's sons, decadent race of effete men, surrounded by fawning slaves and singing peacocks!"

But none could resist the sheen, the feel, of magical silk. It conjured voluptuousness that was celebrated in Pompei, in nights of unparalled revelry, bunga-bunga delights of Oligarchical folly. It fed the commercial pipeline for two thousand years. Then it ended up one fatal day, according to contemporary legend, in the twin towers of Gotham city....

To know the trepidation of heart when facing glittering gold that all mankind feels--- as related in this story of CAthay's Dragon family hoarded gold vault, accumulated by regal blood line over the ages, in exchange for silk and spice---  you will have to wait for Part II of this tale...

Wed, 12/21/2011 - 06:09 | Link to Comment I got the Bull ...
I got the Bull by The Horns - HELP's picture

If you want gold, take a ticket to Australia, buy a tent when you arrive and buy a Metal Detector (THE LATEST)

 

The go to the "Golden Triangle" Victoria State. Wander around in the Iron Bark Forrests for a few weeks. Be prepared to find scraps of iron (Caps, nails etc)

 

Get gold fever and understand why it is expensive. It takes a lot of work and lots of luck to find it. A rich person desires it, and will exchange the equivalent of 2 cows for an ounce of it.

Perhaps those 2 cows will sustain you for a year (Milk and meat, but let them have sex before you kill the bull!)

 

Australia was the richest country in ther world 100-150 years ago, and now it is still pretty wealthy. All because of the productive labouring of thousands of hopefuls, and the obsession of a Monarch to control it.

 

To this day, in Australia you only own the land above ground 1 cm, anything found below is owned by her Royal Highness, Queen of England.

Wed, 12/21/2011 - 13:19 | Link to Comment Moe Howard
Moe Howard's picture

I never tire of relating this:

When I was in Honduras in the 1980's, Gringos I met would come down with some pans and small dredging machines that were on a little inflatable raft. They would go to the mountains and train the Indio women how to pan. They paid them $1 a day, and kept the gold. They would stay for a period of time, acumulate enough gold to statisfy whatever goal they set, abadon the equipment, and leave with the gold. They told me the Indios always stopped panning as soon as they stopped paying the $1 a day. If I remember right, they said the typical woman found about $10 a day in gold.

Wed, 12/21/2011 - 05:17 | Link to Comment Wakanda
Wakanda's picture

Growing up in suburbia I would get or exchange FRNs at "the bank" or "the store".  The prices were set in advance and the rituals carefully choreographed.  It was very safe and predictable.  I realized that I did not function well outside of this official "zone" of exchange.  I knew how to shop, but I did not know how to bargain. To get over it I would go to Canal Street in NYC and bargain with the vendors for something fun like a funky hat.  It's nice to know I can do it even though many of my exchanges are done at the "buy now" button.

When traveling outside the US I would go to markets and watch the buying and selling and the rituals that accompanied each realizing that I felt bewildered and a little scared.  Some of these markets had been going on continuosely for several thousand years regardless of cultural values, politics, mediums of exchange, products offered, religious preference, skin color/genetics of participants.  These markets are ancient, powerful beasts that bulldoze egos so that participants could find price agreement and consensual exchange.  I always feel invigorated when participating in them, especially when there are lots of small and medium size vendors. 

A market can be like a watering hole in the desert where beasts that were hunting each other yesterday, put aside their differences to drink from the same pool.  Mr. Market does not tolerate violence for long because it upsets the goals of those that are there for peaceful, consensual exchange.  There will always be a place to safely exchange valuables like PMs.  Getting them to market through the wild lands will probably be the bigger challenge.

Wed, 12/21/2011 - 04:54 | Link to Comment thegr8whorebabylon
thegr8whorebabylon's picture

They got me by the short hairs

they got me by the long

they got me drinkin strong hooch

where did I go wrong?

I did what massa told me

got a spanky bran new house

I did what massa told me

gotta subprime golden mouse.

My momma she been dead for years

my daddy he long gone

my aunty ax me what I doin

an why I take so long.

I tell her there no dog to eat

no root upon the groun

that has not been infected by

radiation all aroun

My baby cryin helplessly

an what a man to do?

I goin find sum cardyboar

sumthin for her ta chew.

 

 

Wed, 12/21/2011 - 04:42 | Link to Comment zebrasquid
zebrasquid's picture

This is either one of the smartest things I've read in a while or one of the dumbest.  

Wed, 12/21/2011 - 09:38 | Link to Comment flattrader
flattrader's picture

At least this one contains less psudo-psycho babble than previous.

It may also encourage some to questions their psycho sexual reasons for holding PMs...their dreams of getting blow-jobs from starving women etc...as they sit atop their monster boxes or bags of gold...however unlikely.

Few have really thought through how they would exchange PMs for anything useful on a day-in-day-out basis...like how to "make change" for a gold eagle coin for that bottle of antibiotics?

I have.  And that's why I'm taking a much different approach.

Wed, 12/21/2011 - 11:19 | Link to Comment n8dawg84
n8dawg84's picture

I think you raise a good point, flat.  PMs will help secure wealth over the long term, but other items like booze, smokes, even food can be bartered for things like medicine.  That's why it will be prudent to have other supplies not just PMs (though PMs are very pretty and shiny).

Wed, 12/21/2011 - 11:05 | Link to Comment Crisismode
Crisismode's picture

.22 LR and 9mm ammo will get you anything you want after TSHTF

1.75 liter bottles of vodka are a good second bet

Wed, 12/21/2011 - 04:29 | Link to Comment geekgrrl
geekgrrl's picture

Thanks for this effort Cog Dis. Your articles always stimulate me to look into my heart to see what's there. I see where you're coming from, and I can't deny some of the bitter truths you ask us to accept, things like that we're really just slaves on a plantation or that blue-blood and other elite families run the world (or at least act as if they do).

I have to admit, I actually read the article twice, first with some skimming and reading the limericks, and then later to read your text. I must say The Limerick King summarized your article quite well, and I am definitely one of those who can never get enough of his work. I am in awe of his power to condense material and convey the central dilemma. Kudos to you both.

I am looking forward to see where you go with this.

 

Wed, 12/21/2011 - 03:20 | Link to Comment Palisade
Palisade's picture

Thanks CD for another thought provoking post. you continue to challenge any assumptions I may try to hold. Your earlier posts have also been quite helpful as the random puzzle pieces I've collected have begun to create a picture, I hope they have done the same for you. I look forward to Part 2.

Wed, 12/21/2011 - 03:16 | Link to Comment BullishBear
BullishBear's picture
Thank you, sir, may I have another?
Wed, 12/21/2011 - 12:54 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

You may sir. Today around 4 PM East Coast Time, Part Two will be posted.

Wed, 12/21/2011 - 02:57 | Link to Comment OldPhart
OldPhart's picture

Cognitive Dissonance

Outstanding article.  Thanks.  No one says that enough.  Your thoughts and insights are very good.  Thanks again.

 

Off Topic, but half-assed relevant.

I posted this to my facebook thingy.


To help explain why I disappear in the next couple of months. I have known I am monitored since "NSAGUY" popped up on myspace chat around 2003 while I was chatting with my son in his second year in Afghanistan. "NSAGUY" admonished me to watch what I said over "openly monitored channels". He popped up immediately after I had told my son, in my opinion, that we should drop a nukes starting in Syria and head them east every five miles.

Yes, I know it was extreme and nasty, but it was just me chatting with my son (so I thought).

Since 2008 and the Bank Bail Out in November I have become a hell of lot more radicalized on how I view our government and the american financial system.

I expect to be among the second or third culling of society. (Because I have no arrest record and am not directly dependent upon government.)

Congress recently voted to void the Fourth Amendment of the United States Constitution by approving the National Defense Authorization Act.

They are currently in the process of voiding the First Amendment with the Stop Online Piracy Act.

They have been undermining the Second Amendment for the last thirty some odd years.

Congress voided the Rule of Law with the GM bail out.

The United States Constitution is a rule of law contract between the States and the Federal Government.

Under my, still existing, First Amendment of the Bill of Rights under the United States Constitution: I declare that, I, as a sovereign natural born citizen of the United States of America, find Congress in contempt of the United States Constitution, and that Congress is a domestic enemy, and that Congress is a terrorist organization with a criminal global reach similar to Al Queda, the Mafia, or a Bank.

Conduct yourselves accordingly.

Wed, 12/21/2011 - 11:54 | Link to Comment acrabbe
acrabbe's picture

I hope you don't regret this?

Wed, 12/21/2011 - 04:45 | Link to Comment thegr8whorebabylon
thegr8whorebabylon's picture

Nice post, I hope your son is well.  Time to break out the Alexander Soltzenietzen and start prayin.  You are a patriot.

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