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Who Is Left To Speak The Truth (Or Why Government Hates Gold)
Submitted by Bill Bonner via Bonner & Partners,
Mr. Market Gets Even
Yes, prices are being discovered again… by free declaration of buyers and sellers.
Owners of Greek stocks are discovering that their equity stakes aren’t as valuable as they believed.
But for every seller there is a buyer…
Sellers are losing money. Buyers believe they are getting a bargain.
You can fool all of the people some of the time. Some of the people all of the time. And most of the people once in a while.
You can obstruct price discovery and you can disguise and distort the real value of things. But Mr. Market will get even someday. He always does.
Yesterday, we mentioned but did not explain, that Alan Greenspan betrayed Mr. Market…
In 1987, after President Reagan appointed him Paul Volker’s successor as chairman of the Federal Reserve, Greenspan went over to the zombies… or more precisely, to their allies, the cronies.
It must not have been easy for the former free market defender and member of Ayn Rand’s inner circle…
The Largest Paper Money Racket Ever
In the late 1980s and early 1990s – you could almost see Greenspan struggling with the contradictions.
He had been loyal to free markets. But his job carried with it the biggest central planning authority of all time. He knew that currency unbacked by gold was a scam, but his position as chief of the Fed put him in charge of the largest paper money racket ever.
Greenspan believed in letting Mr. Market set prices. But as gatekeeper of U.S. credit, he corrupted more prices than any human being ever had before him.
But what was he to do?
In 1993, at her husband’s inaugural address to Congress, Ms. Clinton – now the leading Democratic candidate for president – chose to stand next to him. It was one of those magic moments in history, when power and money came together to celebrate.
(When we were in Vancouver, we went to an Anglican church. A banner hung down from the ceiling proudly proclaiming the trinity: “King, Country, God.” The parishioners like to imagine that all their leaders are united… It spares them the trouble of choosing just one.)
Of all the bigwigs in Washington, it was Alan Greenspan who had the biggest wig of all. He was practically a god to the members of Congress, to whom the economy was as big a mystery as Heaven itself.
Gold Stymies the “Welfare Statists”
To the American people, Greenspan was a combination of Mr. Fixit and the Wizard of Oz.
They didn’t understand a word of what he said. And why should they?
Greenspan made no sense when he spoke as Fed chairman – intentionally. As he later explained:

But the blither and blather worked. The politicians kneeled before him. The press took off their hats. And the masses, awestruck by the incomprehensible, thought he was a genius.
What was he supposed to do? Turn his back on all that for the sake of the truth?
“What was the truth?” asked the jesting Greenspan. And he did not wait for an answer.
We wrote contemptuously about Mr. Greenspan from the end of the 1990s until he stepped down as Fed chairman in 2006.
He did his thinking in the bathtub, the press reported. Alan “Bubbles” Greenspan, we renamed him.
He had sold out – for glory, for money, and for power. But we had to admit: He got a good price! Had we been in his shoes, we probably would have been bought at half the price.
But what a pleasure it was to rediscover the old Alan Greenspan, before he turned his coat and forked his tongue. Back in 1966, when he still believed in free markets and sound money, he expressed himself clearly.

Credit Nation
But now, who speaks the truth?
No one.
Because the elites – economists… businessmen… academics… policymakers – are paid not to see it. And if they do catch a glimpse of it by mistake, they keep their mouths shut.
Like Alan Greenspan, it is all very well to understand how things really worked. But you wouldn’t want to give up money, power, and status for it.
The Huffington Post explains how the cronies bought the economics profession:

But the Huffington Post misses the really big story…
The feds have bought off the entire intellectual, financial, business, and academic establishment.
How?
With easy money.
As we explained in our speech at the Sprott-Stansberry Natural Resource Symposium in Vancouver, there is scarcely a single public figure with substantial wealth or reputation who doesn’t owe it to the great credit expansion.
In 1999, for example, Fortune magazine named Jack Welch “Manager of the Century.”
Was it because of Welch’s genius… or the fact that GE had moved into financial services during a credit boom?
Warren Buffett is regarded as the greatest investor who ever lived. But it was Buffett’s great fortune to be investing during the greatest credit expansion there ever was.
And how did Ben Bernanke and Janet Yellen get to be heads of the Fed?
They could not have done so without the wind of credit expansion behind them, which seemed to make sense of their preposterous theories.
While the cheap credit embellished résumés and reputations, it also made people dependent. Academia reaped tax-free donations from people who had made their fortunes in debt-fueled finance… not to mention more than $1 trillion in tuition fees financed by the feds’ student loan program.
Corporations sold their products on cheap credit… made their profits from cheap credit… and then depended on cheap credit to issue their bonds, buy back their own stock, and pay their bonuses.
Meanwhile, Washington ran deficit after deficit – again, all made possible by cheap credit.
And now, practically every sentient being in the nation (and some Democrats, too!) needs cheap credit to pay his mortgage, keep his job, boost his stocks, and hold down his finance costs.
Who is left to speak the truth?
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That's all you need to know
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.
There will come a point when bonds are not considered the safe asset class, and when that happens something will have to take its place. I think precious metals will be that asset.
“Paper is poverty,… it is only the ghost of money, and not money itself.” - TJ
@ Captain Debtcrash
Concur
After a great flush
Sure, timing is the issue.
same as it ever was...
This is one loooooong con. Everyone thinks there will be a day of atonement, a reversion to the mean; and there may be one day. My concern is that when that day comes
the witnesses will look around and wonder if they've actually won. Were the citizens of Rome winners once they realized their wealth/society had been expropriated by an
orchestrated looting? If and when that day comes, dual citizenship, and an expedient means of egress will be a necessity for some.
You are quite correct... There is never an easy way out of this, it always ends ugly.
I suspect this will be the ugliest ending on record.
It is very possible there will not be a man left on earth. Thats ok with me. We are an embarrassment to past generations. Nobody needs to know our history.
I've long suspected intelligence is a self-limiting, ultimately fatal evolutionary misstep.
Unpleasant to think it, but we may be one of those branches on the cladistic tree that flourishes briefly then just.... stops.
I think the possibility of earth being visited by highly-evolved beings from other planetary systems is zero, if they were smart enough to get here they would long ago have destroyed themselves.
Sharks have existed for over 400 million years. Something recognizably human for maybe two or three. Which is the evolutionary success story? Yeah, I know, it's too early to tell, but it's worth thinking about.
Who is to say that our existence isn't a product of highly evolved beings? Certainly you cant rule that out nor can one confirm it.
Our knowledge of the universe is increasing yes, but our findings are only alluding to more questions.
To your first point - I believe you are on to something
Cheers
where is our position on the wheel of time? maybe we are at the genesis of populating other worlds, the inhabitants of which will
look back on us as our equivalent of cavemen. maybe our future progeny123456789 have the ability to time travel, and the "Greys"
are studying their ancient,primitive for-bearers. possibly intelligent life is just now poised to spread, and the sci-fi permutations of
Hollywood will be realized eons upon eons in the future, but just yet we are like the lung fish just pushing out of the ooze.
or possibly, and more likely, Imuhnutjahb.
Who will want to default/write-down their soveriegn debt first? No one, I suspect. The best guess in that case is that some combination of environmental collapse along with social disruption resultant from inflation of food/housing prices will finally bring about the endgame on this sovereign debt bubble.
Talking about the absence of truth, muckraker David Icke just got banned from Facebook for three days for posting a picture of Jimmy Savile and former PM Ted Heath, both famous Brits now targeted by the UK police for being pedophiles and worse. http://www.davidicke.com/headlines/david-icke-banned-by-facebook-over-sa...
So, as the press shows pictures of Facebook's Mark Zuckerberg with his expectant wife, Icke's experience shows the real Zuckerberg, censoring out information about Ted Heath, who it is now well accepted was involved with the pedophile child murder ring at the highest levels of British society. Those are some family values, Mark.
But did they sell them after they murdered them?
Hey, there are photos of me with Jimmy Saville out there ,and I'm no pedo.
I was just a donor to his Stoke Mandeville charity.
I pity your wife if you are so premature in concluding.
I think his point was the facefuck banning. That said, it does look like the Grocer was a pedo. It's more than just a photo of him with a well-known TV personality/ lately-outed pedo.
US debt and unfunded liabilities have increased from $60 trillion in 2003 to $210 trillion in 2014. That increase could buy all the gold and silver bullion in this world every 59 days (2 billion ounces of gold and 1 billion ounces of silver).
That is why gold and silver are the enemy
Kotlikoff goes on to illustrate that the fiscal gap is increasing at an alarming rate and that delay makes our problem much worse. In 2003, just a little more than a decade ago, the fiscal gap was $60 trillion. But by last year it had catapulted to $210 trillion. The fiscal gap may not continue increasing as rapidly as it has over the past decade, but with each passing year - as Congress and the President do their best to avoid action - our hole grows deeper by substantial amounts.
http://www.brookings.edu/research/opinions/2015/04/08-federal-debt-worse...
That fact is that "modern finace" involves NO RISK for bankers and financiers (thanks to BAILOUTS). Modern finance is NOT connnected to REALITY, period.
Bankers and financiers today are useless overcompensated paper-pushers stuck between the printer/computer (where fiat is created) and the producer/consumer in the real economy.
Cut these fuckers out already!!!
The worm may have turned. There was no bailout for the hedge funds that gobbled up Puerto Rican muni bonds. Even DiBlasio's whining didn't help.
Hopefully the bloodsuckers will just fucking die.
Doesn't the word "default" trigger CDSs? No. I thought so. Just more worthless paper promises.
it's a start, i'll give you that...we'll see how long it lasts.
TBTF as a distinction comes with power and control.
Its the Silver folks...the silver.
They hammer gold so's TPTB can accumulate silver...the next generation's gold.
President Lyndon B. Johnson on July 23, 1965 regarding the act that removed silver from U.S. coins:
“Our present silver coins won’t disappear and they won’t even become rarities. We estimate that there are 12 billion – I repeat, more than 12 billion silver dimes and quarters and half dollars that are now outstanding. We will make another billion before we halt production. And they will be used side-by-side with our new coins.”
“Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coins. There will be no profit in holding them out of circulation for the value of their silver content.”
well apparently they didn't have enuff...........hehehhehehehehe...........but in a CON you tell the big lie enuff times and the sheep swallow it
12 billion??? I was halfway there...before the big canoe accident...
Except no PTB are buying physical silver. None.
Often my votes increas the count by a factor of 2 or some times 3. Today each up vote yields a down vote too.
Often my votes increas the count by a factor of 2 or some times 3. Today each up vote yields a down vote too.
What you're seeing is a tally refresh.
Eventually the "Barbarous Relic" will shine and the "greater fool" will be truly exposed
I got rid of the dog last night, replaced it with a pet rock.
Gold is a hedge against the government.
"Gold is a hedge against monetary FRAUD" -- fixed. YOU are part of the government.
I agree with you. It is logical and in the interest of everybody to re-instate gold.
It is however not what the people want: they do not understand and are not interested. Give them a TV and popcorn and they are happy.
They might get upset if you take it away from them: TV and popcorn I mean. Not gold.
That is the tragedy.
Sure, but so what? Remember, half of the people you meet are in fact below average on numerous levels. Below average people have always been cannon fodder. Fuck em, that's fucking life, evolve or die.
There can be no gold standard anywhere today because gold (physical) is too spread out. Something like 140,000 tons are in private hands. To run a gold standard, or any metal standard for that matter, you need to corner the physical supply of "money" which is Golds case would be gold.
It would be impossible to corner the physical gold market now.
A gold or silver standard is yesterdays news. We humans are moving towards something else.
What do you propose would have the same discipline and control that a currency backed by gold would have?
A currency backed by national production and trade, and controlled by rigorous monetary policy.
People forget that currency is simply a medium of exchange. Gold is a commodity and in the past has been used as a medium of exchange. Consider that when gold/silver was used as currency, it was the equivalent of a naturally imposed rigorous monetary policy.
However the entire industrial revolution and our current exceptionally high standard of living would never have occurred without fractional reserve banking and massive lending.
Imagine never being able to build or buy any major infrastructure or equipment until AFTER you had enough money to build it.
"and controlled by rigorous monetary policy. " LOL You're a really funny guy.
Yep, but who will decide between the bridges to nowhere and the bridges to somewhere?
The point about gold was it made the tough decisions that politicians and humans in general have a bad record of making.
Fractional Reserve and debt based world has conjured money out of nowhere without the discipline or pain of decided what is worth and what is not.
Simple. Use gold as a wealth asset only. No ties to money/papergold.
It would be the focus for saving all by itself. This would discipline each currency zone better than ever before. It's better than a gold standard. It is free gold.
http://fofoa.blogspot.com/2013/05/what-is-freegold.html
or perhaps more readible
http://news.goldseek.com/GoldSeek/1429797900.php
And that is exactly what people don't understand.
To have something as a standard, or to valuate it at whatever you want, you can't do that unless you have control all of it.
I agree with you. It is logical and in the interest of everybody to re-instate gold.
It is "illogical" and only in the "interest of those who control gold". With only 1oz per person on Earth, there is nowhere near enough to back even the most restricted Medium of Exchange. I already have way over my fair share. There has never been enough gold to back money. It's always been a myth ... an obvious myth.
And you can't make gold a "standard" without making it a perfect "backer". People using notes representing gold must be able to trade them in for gold ... anytime, anywhere, and in any sized stampede. Even when they claimed we were on a gold standard, it didn't have that capability ... not even close.
OK let's assume you are right. Let's use silver money instead. Gold will be reserved for the kings.
OK let's assume you are right. Let's use silver money instead. Gold will be reserved for the kings.
I am right. And if you were paying attention you would know that the total value of silver in the world is 1/5th the total value of gold.
So you let the kings claim to solve the problem with gold (which they can't) and you're going to solve it with silver worth 20% of that gold?
You can't back the money with gold, but you can back it with something that has 1/5 the value of gold?
How are you going to do that?
The fact is that possession of consumable calories and reduced hydrocarbons is the gratest asset for keeping a real economy going. However, PMs are still the best collateral in the world. That is why central banks are hoarding them.
Guns are a hedge against government. Grub is a hedge against hunger. And since we don't eat gold or shoot it from a barrell it's great for everything else.
So you don't think that PMs have a role in modern weapons? FAIL.
Hmm, silver bullets are supposed to kill werewolves, so there's that... :>D
"And how did Ben Bernanke and Janet Yellen get to be heads of the Fed?"
Answer - they are tribe members & part of the "club"
Dirty knees?
Kudos ZH. Your articles on gold seem to be getting more truthy by the day.
Anti-kudos to Tyler for the quote in the article from the Huffington Post. That's the second time I've read that quote on the Hedge. What is the world coming to? The Hedge validating itself by quoting the Huffington Post. Is nothing sacred?
Kudos ZH. Your articles on gold seem to be getting more truthy by the day.
Latitude25: You are such a slooooow study.
How is your concrete money working out for you? Got your warehouse stacked high now?
How is your concrete money working out for you? Got your warehouse stacked high now?
Concreate isn't money but may be a store of wealth. Gold isn't money but may be a store of wealth. See what I mean about you be so sloooooow?
Paper gold and silver was predicted to fall to zero even in 2007 when I started buying.
Everybody said "FUCK YEAH!!! BRING IT ON!"
but everybody forgot that when it would drop to zero, it would feel like a bitch.
I have turned 2 houses into gold and silver over that time. And let me tell you: IT FUCKING STINGS TO SEE PRICES THIS LOW!
Everybody expected a reset in a short period of time. Now it looks like it might take another 10 years.
I was 30 years old in 2007. Now I'm 38 and 20 pounds heavier with grey hairs popping up all over my head.
Another 10 years? Mannnn.... I'll be nearing 50 by then...
Your PMs should be a hedge against real estate. Both are hard assets and will probably go in opposite directions. So far so good.
I turned my retirement into gold and silver in 2009. Ah, the heights of joy with silver at ~$50! Now, not so much. Still accumulating.
I am not going to retire. Too much to do. Kids still in college, mortgage and taxes still due. Plowhorse.
Take care of yourself, man. The 40s are a time of physical change, stay active. We are living in interesting times.
You REALLY fucked up on selling rental homes to buy PMs. Epic Fail. Just get that out of the way. Because in life a failure can be seen as a success, nothing ventured nothing gained. Learn from your mistakes.
First of all "everybody expected a reset" no way. The few hundred people reading this blog and other doomer blogs say that, but they were dead wrong weren't they. Kingworldnews was sayhing over and over again, buy gold at $1600 it's going nowhere but up. FAIL. I can go gather up 1000 people in my community and ask if they think there will be a reset, and none of them will know what that means. So you've been had.
You have plenty of time. I sugget holding onto your gold and putting it away, forget you had it. Likely gold will go up over time but let's face it, you had freaking REAL ESTATE which PAYS RENTAL INCOME and you threw that out to buy rocks which pay zero. You need to change perspective on money and your life.
I suggest saving fiat to buy another rental, but wait for prices to drop, no doubt we are in a huge bubble. I am saving for that day but I'm going to purchase a different type of rent-generating equipment, not saying what it is here but it's going to a fantastic source of income. I'll be jumping for joy if I can get my hands on those things at half off today's prices (maybe lower if we really crash and burn).
As for real estate, I own a rental with a mortgage, and have fiat to pay the bank back but instead purchased PMs. My idea was to make no extra principal payments, keep saving fiat, and slowly convert the fiat into metal until the point where I could sell the metal and pay off the bank, and still have the fiat I started with. I'm there now even with these shit prices but there is no way I'll sell so I'm overjoyed with the low pm prices, as now is really a chance to slowly add to the stack.
Finally, phase OUT the doomer blogs like ZH, many of the contributors seem very ill psychologically in my opinion. Sure I read ZH a little, but I didn't sell two homes to buy gold at $1600 either. You've been BITCH SLAPPED by this place. Find a more optimistic venue or hobby, make love to your wife more. Get on paleo diet perhaps. Get away from doom, as you likely come across in real life as a doomer too.
Just trying to help.
His best hope now is for a crash in RE again like in 08 and that gold does not crash any more at the same time. Then convert gold to RE. I went all in on RE AFTER the crash in 08 and now those investments look pretty sweet and nicely being hedged by PMs now. Probably another RE crash on the table now though but at least I get cash flow from RE in the meantime.
I completely agree with your post. For some, the truth hurts, but it is still the truth. Reading all the doom and gloom articles here, and being aware of the fraud that is rampant worldwide, is not a basis for arranging your finances. The fact is, the fraud has always been with us, and always will be. What is important, is ones' assessmant of tptb and their ability to manage the fraud. In my opionion, they will continue to manage the system that benefits them, and destroys you, for a great many years to come. Eventually their system will fail, but no one is more aware of this fact than they are. You will not be the benefactor of the failure of the present system - they will. At present, the ONLY advantage you hold over your masters is your choice of geographic location. THEY control everything else, including and especially your reliance on assets for protection. In my opinion, depending on your location, ALL of your assets, including your metals, will be stripped from you and your future generations by tptb. That is why the smartest and wealthiest do not rely on gold or silver - they rely on location to protect their wealth and person.
You guys are missing the crucial issue, athough Action Jackson alludes to it with "location". Our civilization as it exists is predicated upon the continuing supply of essentially free energy and credit. One cannot continue without the other. If one goes they both go. And we have so-far exceeded the oil-less carrying capacity of the earth that the withdrawal of that oil makes a catastrophe of unimaginable proportions inevitable. The one percenters won't be the wealthy then, they will be the ones that managed to survive.
Gold should improve your chances of being in that one percent. RE rentals, not so much. Selling houses to buy gold in 2009 was bad timing, but it was sound strategy to a man who wants him and his progeny to survive. When this thing happens, and it seems like it must, it'll happen fast, and it'll be too late then to make preparations.
The doomers will be right one day. I've no idea when. Tomorrow? 20 years? Hard to imagine it going 50. If it does, no problem, pass on your preparations and your mindset to your kids. That's the point anyway.
I up voted you not because I agree with all that you said, but because you have an intellgent, strong point of view that needs to be considered. I, too, "sold" the farm for gold at $1600, so to speak, liquidating my retirement account and taking out loans to buy PMs (a cardinal sin for most PM bugs). While I did my first buys at the lows of 2008, I grew greedier and greedier as I leveraged my buys up to the market top. Of course everyone is talking their book, so it was that when silver was $46 James Turk was on KWN saying that the "flag pattern" in the price action indicated $57.50 in the next week or two. I held on to all my PMs and have ridden this monster back down to near where I started.
I think rental properties are a smart route for many people. However some owners have sworn it off due to renter problems. Choose your poison.
My hanging on to PMs has become something of a religion to me now. I feel like a Palestinian kid throwing rocks at Israeli tanks. That's as much success my holding PMs as a political statement has had on Federal Reserve policy and Wall Street valuations. But I wouldn't take the job of driving the tank or providing its tactical support, no matter how much fiat you gave me.
Like No Debt I too have greyed, gained 20 lbs, and hung a lot of material aspirations on having PMs double or triple in USD fiat valuation over a 3-5 year time frame. Looks like that didn't happen, and silver still hasn't broken its 1980 high. I liken the derivatives market choking out real PM price discovery to the aluminum aerosols being sprayed over the G-20 population daily to sicken and cull the sheeple. IT'S THE SAME THING, FUNCTIONALLY.
One day my investment decision will be right. Whether I'll be around to see it is another matter. I wear my PMs like a Christian wears his crucifix. Morally it's the right investment. Seeking profit without conscience is what got the world into this mess. Finding our moral compass again is the only path out.
BTW, putting on 20 pounds is no way to be prepared for big changes.
No shit. I can't tuck in shirts anymore without an uncomfortable pressure on my newly formed gut. I will have a hard time evading drones and special ops teams wearing night vision now. :)
But it has been hard living with the pain of seeing what is real and valuable in this world treated like shit. Our hearts and minds have been under attack. My gut is a symptom, not the cause of my problems. But I am working on clawing back some of that unnecessary weight. Best to you, SD.
And to you, Hammy. My experience (unsolicited, and probably unwelcome, but fuck it) is that cutting out the simple sugars and grains as far as you can works wonders. But to do that you need to stop eating out, and start cooking from basic ingredients. Eat things that your great-grandmother would have recognized as food.
Thanks. One of my tenants is a white guy in his 50s who got fleeced in a divorce, declared bk, but has a good job dealing with computer security. He does things like buy a weedwacker to keep the place looking nice. I haven't raised his rent, it's $200 under market. I can see him there for years. Another one works in plumbing. Very reliable. I even look back with a badge of honor to say that I've had tenants from hell (Samoans) and lived through it. I'm sure they're scamming some other landlord now. Live and learn. I really like RE but there is another rental deal for m pursuing now, not RE but a type of equipment. Very optimistic on it.
First of all "everybody expected a reset" no way. The few hundred people reading this blog and other doomer blogs say that, but they were dead wrong weren't they.
The bailout and multiple QE's should have brought on hyperinflation quickly. Why didn't it?
The velocity of money has flatlined. It's all parked in treasuries, or selectively doled out to insider corporations to juice stock valuations through stock buybacks instead of reinvesting in productive capacity, R&D etc. John Q doesn't have it; he's on life support via EBTs, getting a fraction of what the oligarchs are serving to themselves. But gov stats on real inflation rates are fictitious, as we know. When will reality reassert? The same day there is a consequence for the US running a $trillion per year operating budget deficit with no real strategy for turning this around. Congress could push for a return to USD issued as credit (think Greenback) or backed by something tangible n(like gold), instead of debt with guaranteed 6% return to the private shareholders of the FED, but they would be nail gunned if they did that.
Oh yes, then there are those pesky deflationary forces like falling wages, layoffs, swelling welfare rolls, robots displacing workers, and escalating fraud and violence to keep everything appearing normal to the average person who doesn't want a reason to wake up. As the saying goes, you can't wake up a person who pretends to be asleep.
It's all parked in treasuries,
All government trading promises default. Without equal interest collections (and there certainly are not equal interest collections) they are immediately inflationary
or selectively doled out to insider corporations to juice stock valuations through stock buybacks
obviously inflationary
instead of reinvesting in productive capacity, R&D etc.,
counterfeit money invested in productive capacity or R&D is inflationary. Counterfeit money getting into circulation is inflationary.
Thus, there is no place that money could have gone that wouldn't have been inflationary except sitting on a pallet somewhere ... it we know that's not the case.
John Q doesn't have it; he's on life support via EBTs, getting a fraction of what the oligarchs are serving to themselves.
Counterfeit money going into circulation by any path is inflationary. It competes with real trading promises to deliver. It doesn't matter if it goes to John Q to support him for doing no work, or it goes to oligarchs who made bad bets and counterfeits covered their losses. It's all inflationary.
Congress could push for a return to USD issued as credit (think Greenback) or backed by something tangible n(like gold), instead of debt with guaranteed 6% return to the private shareholders of the FED, but they would be nail gunned if they did that.
But the government never delivers on its trading promises. They just roll them over. And that is default. And it's not recovered by interest collections. So that is inflationary.
Oh yes, then there are those pesky deflationary forces like falling wages, layoffs, swelling welfare rolls,
There is a time constant in any dynamic system. And those forces you speak of have a built in delay. What is the time constant of this system? Why is the delay so long? Are you making an argument for QE here? Are you suggesting if they didn't use it the economy would have "deflated away" in the face of the oligarchs' bad bets and the governments' irresponsibility?
robots displacing workers,
Well, we're going to have just more and more of that at an accelerating rate. So are you saying we need to drop money from helicopters per uncle Ben as we become more and more efficient at what we do?
and escalating fraud and violence to keep everything appearing normal to the average person who doesn't want a reason to wake up.
It may come as a surprise to you, but most people aren't in the game. It's for bright people like you.
As the saying goes, you can't wake up a person who pretends to be asleep.
Never heard that one before. But as Lincoln said, you can fool all the people some of the time, and 9/11 has certainly fooled virtually all the people if my survey of those knowing about WTC7 (7.3%) is any measure. And capitalism (while fighting its fake and equally misguided opponent communism) has fooled everyone during my lifetime ... and my parents lifetime.
My own personal assessment is that the butcher has his thumb on the scale. That we have huge inflation right now. We have exceeded critical mass and there are more people dependent on our occupiers than not. So I guess we just wait for them to devour their host and we all die.
You own lots of gold. Lucky you. It won't be another 10 years.
Your "reset" will be a LONG time coming. It won't happen in a decade, or even two. Think in terms of half a century or a century. It will be a long, slow decline, not a drop off a cliff.
And when your reset happens? Your gold and sliver will DROP in value. Why? Because they do NOTHING but sit there. PMs are only remain valuable in LOCALIZED "resets" when there remains a robust market in other parts of the world. But in the major reset you are preparing for, namely the crash of the US, and US dollar, that will affect the entire world.
What will be valuable? Actual production and usable assets. Things that people NEED every day. People don't need PMs.
Imagine you are in the desert, dying of thirst and looking for refuge. There are 123 other people with you, all looking for the same thing. As you come over a ridge you see a man selling one single glass of water (he has armed guards to keep the peace). Do you think those dehydrated, near death souls won't empty their pockets to be the one to get the glass of water?
But the water just sits there, you say. It doesn't earn anything- except survival for longer than the other 123 souls.
Oh, you're going to empty your pockets alright, and you're going to beg for gold just like you would beg for water.
Gold IS money, everything else is just debt.
Gold is just a commodity and something to trade. It's NOT "money".
But keep believing that it's money if it helps you sleep at night.
Whom should we believe? Anopheles or J.P. Morgan who said "Gold is money and nothing else."?
How can Mr. Market "get even" when THEY are Mr. Market?
The fact is, the entire world is hooked on the ponzi "money" system, which never in history has happened before. It will take many decades, if not centuries, to finally (temporarily) convince the citizens of the world that money cannot be imagined into existence. In the mean time, a tiny percentage of caucasions, and somewhat larger percentage of asians will hoard metals for the perceived insurance benefit of future generations. The problem is, those who are stacking today will run out of heartbeats long before the banksters run out of keystrokes, and many will become dissolusioned or face financial challenges that will result in their selling of their metals long before they become accepted as the only true money once again. That, or their offspring will fail to appreciate the insurance value of those heavy boxes, and sell the contents to buy something of depreciating value.
I think the banksters will work their game in such a way, and for such an extended period of time, that much of the metals hoard currently held by the public will go to the banksters vaults long before its' true value is realised by the masses. The only consolation is that none of us reading this website today will be around to witness the tragedy coming tomorrow.
The sheer number of anti gold articles in the MSM reeks of desperation. It may not be as long as you think.
I like the tough love being shared today. But bitter clinger I remain. Getting bitterer and bitterer. :)
Know this, however: The sheeple's love of fiat will evaporate when it no longer serves as a store of value or a trusted medium of exchange. When the EBT rations no longer get the FSA what it needs to survive, then all bets are off. We'll be back to bartering bottles of Tide detergent or Jack Daniels or whatever people trust. It's a confidence game. Washington DC has already lost my confidence. And so has the Federal Reserve Note. I detest holding them, even if it's a wise strategy at this point. I just can't participate in the fraud, even if it serves me in the short term.
I hope to see the "great reset" (not unlike the Second Coming) in my lifetime, and hopefully before I need to convert some of my PMs to a little land development when they are at a higher fiat valuation. But my moral principles may die with me, and my PMs passing on to my family. We all have to be prepared for that. There is no hedging for death.
Your point about the whole world is correct.
There were many that held out for China to march to a different drummer re fiat. But they appear to be following the US Fiat lead.
This appears to be a longer playing game than everyone thought....
Not sure how this plays out or the speed in which it does so.
Interesting posts
Looks like the fraudsters ... ahem banksters did not produce anything of value or aid society in any way again. What a surprise. Crossing my fingers the whole thing glitches out from solar storm.
What is to be said of the fact that the 'same' thing is happening all over again as it did in 2008 -- the old 'history rarely repeats, but it does 'rhyme' thing, with regard to the precious metals markets? It tells me loud & clear, that the 'controllers' are still very much in control, and that nothing very meaningful regarding truth-in-markets is going to happen until an outside event/s, which are beyond the grasp of the Fed, the ESF and Treasury, assert themselves. Which is why I pay more attention the foreign policy actions of the U.S. as an indicator, than any market in which the U.S. controls.
Agreed. Who knows what the eff is going to happen. Just do your best to stay fit physically and economically agile. Survive the storm. Have a 20 year plan. Do your best to be principled.
Question: What do the present foreign policy actions of the US indicate to you regarding the investment/economic path we should take? I.e., How do "defensive strikes" against Syria effect markets. Good for Haliburton stock? For me, I won't buy Haliburton or Monsanto even if they are a guaranteed triple. Plus stock valuations are built on a lot of accounting fraud and cheap money. I just don't want to participate...
Gotta love the Trolls who refer to blogs like ZH as doomers, when in fact all that these blogs refer to are the real data, real state of affairs, ie reality.
So reality is doomer, and falisfied data is the fantasy we should all be selling and believing in. lol
The critic is either a total imbocile or just a MSM, TPTB type Troll.
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There is always a large group that will not accept the reality in front of their eyes, will blindly believe the status quo, will find it inconceivable that the government hasn't got their back, that their govt will not be so stupid as to do something catestrophic.
That the govt will be mature and have the nation and its citizens as their first and last priority.
Then you look back on history and find that many a war, coup, catastrophe was preceeded with the same infantile trust of the citizens in their government, only to find themselves losing everything, dying by the millions in war, being removed of rights based on race or religion and so on.
So hear we are now. The real data is incontrivertible. The economic fundamentals of most nations on earth are a fucking gigantic disaster, far beyond the experience of history. The US is hell bent on creating a European Russia conflict that will inevitably lead to break downs within Europe, is goading China and Japan, is itself run by Oligarchs, including defence industry oligarchs.
We see bail-ins and capital controls, the beginning of a war on cash, the revelation of ultra deep and wide digital snooping and collection world wide, the militarisation of police forces.
I mean what other Fucking warning signs do you want before you decide you better protect your own arse because the TPTB might not, and that any type of hell could break lose at any time from any black swan. Talk about denial.
When you don't know if your wealth is going to snared by bail-ins, capital controls, asset deflation, cash controls, hair-cuts and so forth, in fact their being so many unknowns on top of the nasty knowns, it isn't rocket science to think maybe you should own some gold and silver bullion.
Yeh, I can just imagine that Chamberlain called Churchill a doomer.
You should listening to a relative who receives a pension from the govt and refuses to losten to any criticism about the financial inslovency of state pensions.
He says TRUTH is idealistic. I guess for a retired cop that truth in a coirt of law is also idealistic when it comes to protecting his ass when he violates the.
Is that to truthy or am i being idealistic. Fucking hypocrite.
He knew that currency unbacked by gold was a scam, but his position as chief of the Fed put him in charge of the largest paper money racket ever.
What absolute nonsense.
A currency backed by gold "backs" less than $2,000 with an oz of gold. There's only one ounce of gold per person on Earth. There was and is far more currency needed out there than $2,000 per person. And the use of the word currency is misleading. The term is really "money" ... which may be coin, paper, or an accounting entry.
This subterfuge has got to stop.
Yes the subterfuge must stop. Definition of money: Anything of value that serves as a (1) generally accepted medium of financial exchange, (2) legal tender for repayment of debt, (3) standard of value, (4) unit of accounting measure, and (5) means to save or store purchasing power
Your money does not meet this defintion especially point (5). Therefore what you propose as money is a fraud.
Dollars need to simply be revalued relative to gold to cover all the dollars in existence. Your premise is ridiculous.
Definition of money: Anything of value that serves as a (1) generally accepted medium of financial exchange, (2) legal tender for repayment of debt, (3) standard of value, (4) unit of accounting measure, and (5) means to save or store purchasing power
Let's test gold against this:
1) Nope; 2) Nope; 3) Nope; 4) Nope; 5) Nope.
Dollars need to simply be revalued relative to gold to cover all the dollars in existence. Your premise is ridiculous.
Oh really? Throw out a number. Then let's run that number by the miners and see what it does to their behavior. Lets run that number by people who have gold ... then those that don't. Who's going to feel cheated?
I'm serious Latitude25. Put up or shut up.
And as said by Greenspan:
The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.
That welfare statist is you.
That welfare statist is you.
So Latitude25, is that "put up" or is that "shut up"? It's obviously avoidance.
Really ... throw out a number. It's the only way for you to make your case. And as soon as you do, any third grader can cram your case right down your throat.
Since you're a compulsive liar you don't set the rules. I do.
You should pick your own number and then tell a lie to prove to yourself that it won't work.
Since you're a compulsive liar you don't set the rules. I do.
You should pick your own number and then tell a lie to prove to yourself that it won't work.
Bingo! A Mises Monk again avoids the question that proves the gaping flaw in their scheme. For anyone watching, a debate with these folks seldom gets to this point (before they call you an idiot and not worth the conversation), but it "never" gets beyond this point.
It's all about getting them to tell you how with just 1oz of gold per person on Earth they can back "all" in-process promises to deliver on trades ... i.e. all money.
Sometimes you can get them to come out and say "just change the value of dollars in gold" as Latitude25 did here. But when you ask them what to change it to ... and what effect that's going to have on miners ... and what effect that's going to have on people holding gold vs those who don't ... the line goes dead.
And notice, I'm called a liar ... but I just asked questions. How can you be a liar by asking questions?
In the absence of the gold standard there is no way to protect savings from confiscation through inflation.
Oh yes there is.
And it's really stupid to fight inflation with a process that guarantees deflation and strangles trade ... i.e. imposing the fictitious notion of gold backing where no such backing is possible.
Stick with withglee. He's on the concrete widget standard.
Stick with withglee. He's on the concrete widget standard.
WithGLEE knows the standard is set by the traders themselves. And once established in the marketplace, it never changes. Inflation of the MOE is guaranteed zero. It's guaranteed by the process ... not by a standard. And the process is guaranteed by transparency, not a government.
Give me a number Latitude25. What does an ounce of gold need to be in dollars for your gold backed non-fiat, non-debt sound money scheme to work?
The ONLY way to defeat the regime with gold is if you make your bullets out of it.
When the global system crashes, gold won't save you or protect you - but weapons and ammo will.