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Silver and Gold Truth Versus Fiat Lies
Posted with permission of Gary Christenson aka The Deviant Investor - Sprott Money
The Jefferson Airplane sang about truth and lies nearly 50 years ago.
“When the truth is found to be lies
And all the joy within you dies…”
Restating their insight to make it relevant to our global delusions about real money – gold and silver – and the much less real money we call dollars, euros, pounds, yen and so forth:
When the truths we want to believe are clearly lies,
Then CONFIDENCE in our currency dies…
What do loss of confidence, loss of faith in financial systems, and pervasive lies have to do with gold and silver? The answer begins with: Gold is far more truthful money – central banks can’t print it or create it from “thin air.” Dollars, euros, yen and others are fiat currency units based on confidence and debt (not assets) and are supported by government mandates that these pieces of colored paper and computerized digits shall be accepted as money.
But confidence in debt based currencies promoted by insolvent governments is clearly waning. The Russians and Chinese understand – they are converting dollars, yuan, and rubles into gold. Europe, Japan and the U.S. are “printing” more euros, yen, and dollars hoping that “extend and pretend” will give the politicians more years in office, another war or two, and more profits for the military contractors and bankers. When propaganda and “statistics” fail, there are always diversions like bombs and invasions. (What happened to the gold from Iraq, Libya, and the Ukraine? If gold has little value, why did it disappear so quickly?)
What happens when another financial calamity occurs? Something major can and will occur in the next few years. Possibilities: derivative crisis in Europe (Greek bonds anyone?); tactical nukes in Ukraine; cyberattack on US, Japanese or European banking systems; fall of the Petrodollar; credit collapse in China; US T-bond crash; an audit of the gold in Fort Knox (just kidding); or many other possibilities.
Assume a major financial crisis occurs within five years:
- Confidence in the purchasing power of some currencies will rapidly die.
- Some currencies, stock markets, and bond markets will implode.
- Confidence in political and financial leaders will decline.
- Gold and silver will retain their value while currencies sink into the sunset of devaluation and QE to infinity.
- Nominal prices for gold and silver will go far higher – based on the loss of confidence in paper currencies and the loss of purchasing power of those currencies. (Repression will not hold their prices down much longer.)
- Gold and silver will retain their value because many people know, trust, and have confidence in gold and silver.
- Confidence in dollars, euros, and yen can disappear in weeks or months. Think Argentina, Venezuela, Germany, Hungary, Bosnia, USSR, and many other countries in the past 100 years. (How much will Confederate money purchase today?)
- When our supposed truths are found to be lies, confidence in our currency dies.
The truths we have been told that are lies:
- Those dollars, yen and euros are money. Well no, the stuff passes for money as long as the next person BELIEVES IT WILL CONTINUE to pass for money. (What happens when people fear the next person will no longer accept those paper dollars in exchange for needed goods? It has happened many times before and will most certainly happen again in the next few years, perhaps in a country where you live.)
- Gold and the gold standard are a “barbarous relic,” useless, and unnecessary in the modern financial world. This lie is ruthlessly promoted, along with other nonsense from financial authorities who have a vested interest in selling their products (created dollars, euros, yen etc.) in exchange for real assets, such as steel mills, automobiles, land, and yes, gold and silver. (Does it amaze you that a central bank can print a billion euros and then use that newly created “money” to buy gold?)
- Deficits don’t matter. This is particularly relevant as the U.S. debt is more than $18 Trillion and rapidly rising due to massive deficit spending every year. Worse, global debt is approximately $200 Trillion. Ask Greece, Zimbabwe and the Ukraine if they believe that deficits don’t matter. I submit that “deficits don’t matter” is the intellectual equivalent of “we can borrow our way out of debt” or “we can spend our way into prosperity.”
- Central banks are necessary. I can’t prove they aren’t necessary, but it seems unlikely that parasitic institutions that extract money from their respective economies and do little but inflate their currencies are necessary or valuable to the general economy. The Federal Reserve has not prevented depressions or recessions, has not increased employment, nor maintained the value of the dollar. However, it has increased the wealth of the financial and political elite at the expense of most others.
- There are many more lies that are promoted as truth. Ignorance is unfortunate but believing the lies is far more dangerous. In no particular order here are a few more lies (only my opinions) that many of us currently believe or have previously believed.
- Real estate prices will always go up.
- The dollar is good as gold. (I last heard this in the late 1950s.)
- Buy and hold stocks forever.
- This war will make the world safe for democracy.
- “I believe in a balanced budget.”
- You can keep your doctor and current health plan.
- No more foreign wars….
- There isn’t enough gold in the world such that we can go back onto a gold standard.
- This is a temporary government program.
- The deficits are declining. (Why is there a deficit in the first place and how will the US repay $18 Trillion?)
- “No boots on the ground.”
- It was necessary to bail out the banks for the good of the country (actually the bankers, elite, politicians, payoffs etc.)
- We can spend our way into prosperity.
- Printing money makes us all wealthier.
- A lone gunman…
- We owe the national debt to ourselves.
- And finally…. If we vote out Useless Incumbent # 97 and vote in Slimy Candidate # 104, all will be well.
Don’t believe the lies or trust that unbacked debt based paper currencies will survive (they never do). Learn from the lessons of history – gold and silver have been money for thousands of years. The western world currently has amnesia about the true nature of money. Asia has not forgotten the value of gold and silver.
Convert increasingly risky dollars, euros, yen, bonds, and other delusions into gold and silver while you can. The window of opportunity will not remain open much longer.
Posted with permission of Gary Christenson aka The Deviant Investor - Sprott Money
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Sorry guys its fiat until the monopoly of force is broken. If the dollar is printed to oblivion nothing will change. They will simply roll out a new fiat. Because they can.
Strange this few comments on this article.
I like Mr. Sprott, Schiff and the Austrians like Ron Paul. Some day they can brag of being right about the dollar. Maybe. But for now, the "perception" you speak of and price action are what matters. Richard Russell has said many times in his 35+ years of writing the Dow Theory Letters, "look at the market and see what price is doing." That's the backbone to Dow Theory.
For gold and the dollar, how can you ignore that we are in a bear and bull market? I sell gold for a living and can see that. But unlike those with an agenda, I call it like I see it and for that I can take some solace of not being accu sed of not having an agenda. I would make a lot more money if I had an agenda, but the money will come when gold prices skyrocket.
For now, my 2015 thoughts article I have posted here. And recently I was mentioned in a AARP article:
Should You Buy Gold? http://www.aarp.org/money/investing/info-2015/investing-in-gold.1.html (page 2) I also write about my gold and silver and other markets in my Current Thoughts 5 days a week. http://buygoldandsilversafely.com/category/current-thoughts/ At least you get an opinion that ZeroHedge, LewRockwell.com and others don't care to hear. I know because I have written to them and am #ignored. Not complaining. I'll simply write about them in my next book, "Illusions of Wealth" and say; they'll be right at some point.Gold loses, Dollar Wins. Gold at 1220$ heading for 700$...
You're right, today ...it does.
In the big picture, and that's what I look at, the Dollar is a sham.
Go long in Silver, Copper, Brass and Beans. Paper Gold will be worth something because you'll be able to start and keep fires going.
My wife is Bolivian and went through a reset. It's simple. People with hard assets retained their wealth. Those with paper claims lost it all. By the way. In Bolivia those with house mortgages made out like bandits and paid off their debts with worthless hyperinflated paper in the final phase before the reset.
I can assure you, this will not happen here. Mortgages will most likely be reapportioned to maintain the same value in the intitial reset. Inflation after that may bring them down. We will see. Mortages in the USSA are owned by very powerful people.
I just can't imagine any advantage to the people passing through the reset.
What you are trying to tell me does not make logical sense. During a hyperinflationary rapid loss in currency value "very powerful people" have lost control.
Bitcoin is FAR supperior to gold.
A Bitcoin can be divided to 100000000 smaller units. Can you divide a gold coin ?
You can transfer Bitcoin anywhere in the world with no effort, no restriction, no cost, instantly.
The supply of bitcoins is regulated by software and the agreement of users of the system and cannot be manipulated by any government, bank, organization or individual.
Shit is FAR superior to gold.
I can smear my shit across 1000000000 walls. Can you smear gold on walls?
I can take my shit anywhere in the world with no effort, no restriction, no cost, as fast as I can move.
The supply of my shit is limited by how much food and drink I can consume and cannot be manipulated by any government, bank, organization or individual.
Crypto is cool, but don't be an idiot.
Bitcoin's already fucked if you've been paying any attention at all. The second you handed over the ability to push hard forks to a centralized, criminal entity like the Bitcoin Foundation, the Bitcoin community sold out everything the coin was built on. Software isn't impartial; it's programmed by human fucking beings. Not to mention the ability to track ANY purchase through the blockchain is much easier than initially imagined: http://www.reddit.com/r/Bitcoin/comments/2c63xg/coinbase_is_suspending_m...
Even with BitcoinFog, CoinJoin protocols, etc. it's easily unobfuscatable by simple forensic work, not even computer forensics, which would make things infinitely easier. Just wait for the Bitcoin ETFs, it'll have its price discovery moved to Wall Street and get screwed twelve ways to Sunday just like SLV and GLD. Oh, and have I mentioned that those in control of the core protocol have ZERO desire to fix any of these issues? People have asked; I'd know, I was one of them. Bitcoin is broken at its core and there's no getting around that, and that's barring all the "ZOMG EMP BAK 2 DA 1800z" fears.
I use Bitcoin occassionally because it's a cool way to pay for things on the 'Net without using the dollar, but that's about all it is. The Revolutionary dream Bitcoin could've been was squandered by the financial and technological short-sightedness of its userbase, which your blind faith exemplifies to a T. So when all of these blatantly obvious "flaws" manifest in what will essentially be "PayPal 2.0," just remember, you have no one to blame but yourself.
Thanks for the laugh
When the lights go out your bitcoin is going to be less than 1's and 0's.
Yes. You can divide gold into extremely small and practical units.
http://valaurum.com/
I've been stacking physical gold and silver for some time now and I thought I was on the winning side. But I heard on Russia Today that a few people are calling for a "debt reset".
Now if these mentalists actually get their way and every government just resets everything and starts again, our precious metals holdings will be worth the same as everything else! Our forward thinking will have been negated!
What the hell do we do then....?
Of course, that's been the fucking plan from the beginning, no matter how much ZH tries to sell you the "Saviours from the East" meme. Never forget that BRICS was the brainchild of none other than Goldman Sachs: http://www.goldmansachs.com/our-thinking/archive/archive-pdfs/brics-drea...
Notice that date? It's from 2003, a whopping five years before BRICs was supposedly even an idea.
Chatham House (the British version of the CFR) wrote about exactly how such a "reset" would take place; it would include gold, the value of the SDR would be fixed in part to gold, but it won't be exchangable for it: http://redefininggod.com/2015/01/globalist-agenda-watch-2015-update-12-d...
Sucks, but it's time people grow up. There is no "Great Other" coming to save us. Any global solution is a GLOBALIST solution. If we want freedom in the 21st Century, we have to do it ourselves.
No worries mate just post me all your metal and I'll forgive and reset you first.
Hello,
I get that you're trying to make a point here, but could you spell it out for me? I'm not that bright!
Regards.
I agree with you 100%, you are not that bright. The debt reset scenario will never happen.
Hello, Zero-Head,
Why not?
Regards.
I really miss 2011 when silver was $40 and WW3 was still a couple of years away.
Sprott never impressed me as much more than a charlatan.
Remember when he sold millions of ounces of silver right before it crashed? Just a coincidence, right?
Actions speak louder than words.
Hey Eric, check this out. Don't be telling us about PMs. We already know. It is not our first day.
digital family photo album?
The funny thing to me is that gold and silver are valued relative to the fiat currency of this country or that. If/when all the currencies collapse or reset, then what? How much is the gold going to be worth? Whatever it will be worth, its scarcity is just going to reset the whole paradigm of the few having all the wealth AND militaries fighting for control of wealth.
Need some other, new system.
Very good.
Finally someone actually thinking and realizing a reset doesn't mean shit. There have been countless resets throughout history and not much changed. Don't we still have dictators, kings, queens, and untouchable thieving politicians in our modern society?
I have been looking for that answer and find very, very few that even realize that a reset doesn't mean shit.
"Gold is Money, and nothing else."
"Gold is real money!"
-JPM
-Alan G.
Of course the absurdity of their avarice is profound, as if their thefts continue on pace, their loot will be worth little, as slave labor produces little of value. But then that is assuming that the guillotines do not enter the scene one day.
The banksters need to repay us.
They do not fear the truth. They fear the end of the lies.
Ugh
So where did Ukraine gold reserves go?
China via Switzerland
The PRC has to be demanding fizz over paper in order to continue to be enticed into the Fiat Game.
But, they have the final say when it's "Game Over."
***
L-T, this chopper is so heavy we'll be lucky not to crash over this here mine in Mali."
"Get it up, Jonesey!"
"Where to?"
"Beijing."
"The Chicoms?"
"Just follow orders, Jonesey!"
Deep storage
"Leaving, on a jet plane.
Don't know when I'll be back again"....
(What happened to the gold from Iraq, Libya, and the Ukraine? If gold has little value, why did it disappear so quickly?
I know this is our narrative, but do we really know that gold vanished? Could it be stored somewhere we just haven't been informed of yet? I don't trust the elites, but speculation doesn't help either.
In the case of the Ukraine, they found their "gold" was a bunch of painted lead, so theirs is indeed gone.
It resides in a secret Vault under the Knesset.
In a former life, a Mossad guy took me there, as a professional courtesy.
"Look, we even have the NAZI gold!" he said.
"You guys sure like this stuff," I replied.
"Here, LC, have a bar. Good delivery. We owe you for saving Assad. The game goes on! We need you in Delhi next month. I have dirt on the Indian Minister. He married a younger girl- by force!"
"Sol, they have arranged marriages still over there. Which you would know if you ever left this gold vault and read some books. Damn, you guys want it all."
" No, we don't. I'm insulted! Are you gonna keep that spare change from the coffee shop?"
"know this is our narrative, but do we really know that gold vanished? Could it be stored somewhere we just haven't been informed of yet? I don't trust the elites, but speculation doesn't help either. "
Lead a horse to water but cannot make them think for themselves. Do you need a roadmap? A nanny? Some pharma drugs? Another paycheck from your masters?
Overthrow the regime and the first thing is scoop the gold. Things that make me ponder way beyond the obvious political nonsense. And death to civilians etc.
And inforcing of national boundaries drawn over tea decades ago. But scoop the gold seems primary. The rest is drones of death and golf.
Talk your book, talk your book, talk your book, talk....
Was there anything in this that we didn't already know?
Come on, can you quote Jefferson Airplane without making us feel old?