This page has been archived and commenting is disabled.
JS Kim Issues Critical Warning About Newly Introduced Global Banking "Gold Programs"
JS Kim Issues Critical Warning About Newly Introduced Global Banking "Gold Programs". Could Bankers Be Duping Us into Yet Another One of Their Reverse Alchemy Schemes?
Indian Prime Minister Narendra Modi launched a 3-pronged scheme to allow gold to become an important part of the Indian economy – a gold monetization and bank deposit scheme, the issuance of bank and federal gold-backed bonds, and a gold coin and bullion selling program, in which an initial 15,000 5gm gold coins, 20,000 10 gm coins, and 3,750 20gm bullion bars will be made available to the Indian public.
The only aspect of this 3-pronged program, however, that I deem trustworthy at this point, until proven otherwise, is the gold coin and bullion selling program. Why? The answer is simple. The other 2-aspects of this 3-pronged program advocate against our advice at SmartKnowledgeU to specifically hold all of your gold in physical form only and outside of the global banking system. Both the gold monetization scheme and the gold-backed bond scheme require depositing physical gold at a bank and receiving digital credits and paper in return. If bankers never commit fraud and always keep 100% of the gold allocated specifically to the depositor, and we can be 100% guaranteed of this stipulation always being enforced at all times, then I would not have a problem with India’s gold monetization program and gold-backed bond program. The only problem is that history tells us that bankers will always commit fraud under these circumstances. Consequently, why should we take their word this time around that they will not commit fraud again and use the gold deposits to undermine and suppress the price of gold against the gold depositors’ best interests?
For example, we already know, beyond a shadow of a doubt, that the gold derivatives futures markets in New York and London are entirely fraudulent and that pricing mechanisms in these markets literally have zero relationship to the supply and demand determinants of physical gold. The UK Financial Conduct Authority fined Barclays Bank £26 million and banned Barclays banker Daniel Plunkett for artificially engineering a gold “puke” in gold futures markets to plunge gold prices on a specific day to ensure that they would cheat their client out of a payment of £2.3 million. Furthermore, this fraud would never have even been exposed had it not been for the client’s sophistication in understanding and identifying the fraud executed by the Barclays banker. I literally have witnessed other bankers execute the exact same pattern of fraud executed by Barclays banker Plunkett dozens of times in the past, and for which no banker was arrested or prosecuted. Given the history of banker fraud in gold paper derivative markets in which banks use paper markets to plunge gold prices, Indian citizens must ask themselves this pressing question, “Do I really want to give up the security of holding my physical gold outside of the banking system and then deposit it with the very bankers that have been repeatedly proven to execute fraud against my best interests?”
A second example of very likely fraud executed by bankers in gold derivatives markets is the gold GLD ETF (along with the silver SLV ETF). Bankers have always refused and/or failed to provide any proof that their paper gold ETF, the GLD, which they claim to be 100% backed by gold, is actually 100% backed by gold instead of just fractionally backed with gold rehypothecated many times, as is almost certain to be the case. And when bankers attempted to assuage concerns of GLD holders that their paper purchases were actually 100% backed by physical gold held in their vaults, as they claimed, they failed miserably, as the serial number of a bullion bar they claimed was part of the vaulted gold that backed GLD purchases failed to match serial numbers of bullion bars contained on the GLD ETF bullion bar list.
In fact, 2 years before the potential scam of the GLD was revealed to the world through this mismatch of gold bar serial number fiasco, I reported on our SmartKnowledgeU blog multiple reasons why people should question the legitimacy of banker claims that the GLD and SLV ETFs were fully backed by physical holdings after I inspected the prospectuses of both paper vehicles that contained a plethora of questionable language and banker claims. By the way, since 2009, bankers have removed a lot of the shady language that was first contained in the original prospectuses of the GLD and SLV. However, just because they have removed the questionable statements that orginally appeared in the prospectuses, this certainly does not mean that bankers are now operating both investment vehicles honestly.
Various Indian government officials are pushing their potential reverse alchemy schemes upon the public, urging them to turnover their physical gold holdings to bankers in exchange for digital credits to bank accounts and the issuance of paper certificates. PM Modri has claimed that gold bonds can “empower women”, a claim that reeks of the 1960s and 1970s women’s liberation “right of women to work” movement that succeeded in doubling the tax base for the Rothschild banking cartel. Finance Minister Arun Jaitley has already announced that interest earned on physical gold deposited into the banking system will be exempt from all taxes. On the surface that appears to be a fantastic benefit to Indian citizens, but before Indians embrace this benefit, they must question whether or not the physical gold they turn over to bankers will actually be kept in bank vaults or if it will be hypothecated hundreds of times and leased into the open market to suppress the price of gold as Central Bankers have historically chosen to do when given access to physical gold. This is a question Germans wished they had asked of themselves before they turned over their physical gold to US Central Bankers for holding.
In 2011, German Central Bankers employed by the Bundesbank announced that they were holding 3,396 metric tonnes of gold on behalf of the German people. They revealed that 45% of these holdings, or 1,536 tonnes, was being held by US Federal Reserve bankers. In 2012, the German government, under extreme pressure from its citizens to prove that US Central Bankers actually still had their gold and had not sold it off in the open market or leased it out to their puppet bullion banks on Wall Street in previous years to suppress the price of gold, demanded the repatriation of just a tiny fraction, or 150 tonnes of the 1,536 tonnes held by US Central Bankers. During the first year after Germany's repatriation request, US Central Bankers returned a paltry 5 tonnes of gold out of the 150 tonnes requested. After this insult, Germany increased the request for 300 tonnes to be returned by 2020, which was still less than 20% of their gold held by US Central Bankers. In 2014, US Central Bankers returned 85 tonnes to Germany, and earlier this year, an additional 90 tonnes had been confirmed as returned to Germany. Still, there are many questionable irregularities with the return of even this small fraction of Germany's gold to date thus far.
In 2014, the 5 tonnes of gold returned to Germany came in the form of melted down and recast gold bars, thereby confirming that the gold returned to Germany was not the gold Germany had deposited with US Central Bankers. If this gold was not Germany’s gold, whose was it? Was it gold stolen from Iraq or Libya?
Since Germany only asked for less than 20% of their gold back from US Central Bankers, why is it taking 8 years for US Central Bankers to return it?
Why can it not be returned in a few weeks time, as is entirely logical if the US Federal Reserve bankers actually still have it?
Why has Germany not requested for all of its 1,536 tonnes of gold to be returned, and why did they only ask for a paltry 300 tonnes be returned?
This is not a broke and bankrupt post-WWII Germany of which we are speaking and certainly Germany can build vaults secure enough to store all 1,536 tonnes of its gold. As there is absolutely no reason for Germany not to hold 100% of its gold within its domestic borders, why are they continuing to allow other countries to keep their gold?
Finally, why did the Bundesbank release statements that all of the gold returned to them in 2014 and 2015 matched serial numbers, fineness and weight of bars given to the US Central Bankers for holding when in 2013 none of the bars matched?
Though German Central Bankers released their gold bar list, only because of extreme public pressure to do so, the gold bar list contained bar melt/inventory numbers, fineness, and weight, but still lacked refinery names, refinery numbers and manufactured years. In other words, the bar list released by the Bundesbank was still far from transparent.
So Indian citizens, with tons of historical precedent from which not only to draw, but also from which to learn, one would be advised to weigh bankers' claims that physical gold deposited with a bank will remain there with extreme skepticism. Unless you can be given written assurances in any contract you sign with a banker that they will expressly not use the gold deposited with them to suppress the price of gold, you should refrain from participating in their physical gold into paper gold programs. With gold bonds ranging from 1-3 years, 5-7 years, and up to a whopping 12-15 years, with penalties for early withdrawals, if I had to guess, I would say there is a 99.9999% chance that your gold is going to be sold off into the open market during the duration of these bonds, even if bankers claim in the bond prospectuses that the gold that backs these bonds will never leave their vaults.
The only way I would trust any "gold program" other than one in which I can buy physical gold coins and bullion and hold it outside the banking system, were if these following conditions existed, in writing, in the contracts that describe these programs and in Indian law:
- (1) the bank keeps the specific allocated gold bullion bars and coins I deposit at a bank in their vaults 100% of the time in my name only, with a way to verify this process, such as serial number engravements on all deposited gold,
- I am allowed to verify the physical location and the purity of said gold bars and coins at any time I desire by means of an independent, not a bank, auditor at the bank's expense, and
- the punishment to a banker were he to ever violate either of the above two conditions (for both stored coins and bullion) is the same as outlined in the US Coinage Act of 1792 below:
Section 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of the fine gold or fine silver therein contained, or shall be of less weight or value than the same out to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offenses, shall be deemed guilty of felony, and shall suffer death.
Even if PM Modri and Finance Minister Jaitley’s intentions are pure with their newly instituted gold programs, if they have not instituted severe punishments to uphold the integrity of their gold programs to ensure that fraud does not occur, then their trust that bankers will uphold these gold programs honestly is misplaced and naïve. Without such regulations in place, this leaves their gold programs incredibly open to banker fraud, which history has already informed us will happen. The only way to ensure the integrity of such programs is to adopt the same punishments for banker fraud as contained in the US Coinage Act of 1792. And even so, if such punishments were adopted, I would still have second, third, and fourth thoughts, were I Indian, of willingly putting my physical gold into the hands of bankers. Every time the public has done so, such programs have ended very poorly for the people with no benefit to them despite false and hollow banker promises of many benefits to the people.
Recall that bankers duped South Koreans, including very sadly even my own grandmother, to hand over physical gold in a “Collect Gold for the Love of Korea” campaign during the 1997 SE Asian Financial Crisis. Bankers took advantage of the extreme nationalism of Korean citizens to trick them into willingly handing over 8 tonnes of gold for zero compensation in just the first week of the program. The final amount of collected gold was kept hidden from the public and never revealed after the bankers reached their target early in their campaign and they successfully robbed South Korean citizens of their gold and much of their life savings. Since all the collected gold was sold off and immediately given to IMF bankers to pay down IMF debt, the program would have been much more appropriately called “Collect Gold for the Love of Bankers”. I wonder how much gold Koreans would have willingly donated to "save their country" if they knew they were saving not their country, but only bankers.
In conclusion, even if Modi’s and Jaitley’s intentions are pure, bankers will corrupt their gold programs without severe penalties to discourage this fraud. Of this I have zero doubt. The collective history of banker fraud in LIBOR markets, Forex markets, gold and silver derivative markets, and the resultant billions of Euros and dollars that they have already paid as an indictment for their crimes, has proven to us that there is no fine that can be imposed upon them that will stop their fraud. And if severe punishments are not in place to protect Indian citizens, then Indian citizens, I urge all of you just to continue what you have been doing and to ignore the allure of these newly introduced gold programs. Despite the claims of politicians and bankers of how wonderful it will be for you to convert your physical gold into digital bits on a hard drive on a bank’s server and into paper certificates, keep converting your digital and paper rupees into physical gold and physical silver whenever you can, and keep possession of your family’s wealth outside of the banking system.
Recall that politicians in India have a recent history of colluding with the Reserve Bank of India (RBI) to prevent Indian citizens from converting their digital rupees into physical gold. In early 2012, the Indian government raised import taxes on gold by 900% from a mere 1% to a massive 10% within a little over a year's time. Furthermore, by 2013, they had raised import taxes on gold jewelry to a stifling 15% in an attempt to stop Indian citizens from converting unsound digitial and paper rupees into the sound money of gold. Politicians, when working with bankers to establish gold programs, do not deserve the benefit of any doubt because of their past history, and unless their gold programs live up to the conditions I've stated above, we should be wary to reject them. India may very well be a testing ground for bankers to discover if they can convince people to turn their physical gold into digital and paper gold, and they may very well attempt to spread these programs to other countries worldwide if they achieve success with them in India. If similar "gold programs" are introduced in your country, you now know why you should remain highly skeptical of them as well.
Other related SmartKnowledgeU posts released in the past week:
SKU_Vlog_010: If This Doesn't Convince You to Exit the Global Banking System, Then Nothing Will
Is This the Gold and Silver Mining Stock Washout For Which We've Been Waiting All Year?
SKU-Vlog_002: What is the Fair Value of Gold? Ounces Over Dollars
To receive notification of our articles when we release them, please bookmark our SmartKnowledgeU blog, subscribe to our SmartKnowledgeU free newsletter, and subscribe to our SmartKnowledgeU YouTube channel.
About the author: JS Kim is the Managing Director of SmartKnowledgeU, a fiercely independent research, consulting and education company that focuses on analyzing the fraud of the global banking and investment industry to formulate low-risk, high-reward wealth preservation strategies for clients in more than 30 countries worldwide. Our mission is to restore integrity to our monetary system through a return to sound money worldwide. This year, all of our fee-based services have yielded positive returns ytd because of our focus on identifying banker executed fraud in gold and silver markets and of predicting lower trends for gold and silver for the duration of this year.
- advertisements -
I think an interest rate rise will set the system crash in place, and gold will become the 'outside' the system neccessity.
Gold is an insurance policy against failed governments and failed banks.
The last place you would want to put gold is with a bank.
As soon as the SHTF you will not get it back, govt will legislate to make sure you don't get it back, it will be converted to relative value in currency and that currency value used to buy you shares in that bank.
In other words your gold will be used to bail-in.
All that to say letting the govt hold ones gold is a bad idea.
Who would of thunk it.
LOL
that is not the half of, it remember when the JPM said "hey all the gold went missing" or the fire in the vault damaged the gold. haha. Sure it was never there to begin with. These guys are the biggest scammers yet.
And interest rate rising soon, will do lots of damage to gold, so we have to remember that. They do this on purpose, drive prices lower so they can buy up more at lower prices.
Every one since the last 8 weeks is looking for a crash for the stock market, but it still is not coming. Plus I doubt listening to the bears is going to help anyone, why? simple….
This video here, shows that we are now back in a FULL on bull market. =>https://www.youtube.com/watch?v=QRzuyt9KMoY
So next year, more up is coming, could be lots more up. Time will tell.
I would trust these like I do Obama or Hellary.
If the Indian banks/govt. are considering trying to pull a Western-style 'scheme' on their own people with gold, I have the feeling they are messing with the wrong population.
Gold has a very important place in Indian economics, especially on the local scale. It is also deeply embedded in their culture, in their social customs like marriage, etc. The behaviors of Western populations like the US with regard to gold is NOT indicative of how Indians will behave. We have a very different relationship with gold here.
And there are over a billion people in India, compared to 350 million in the US. That is very dangerous math, should you get it wrong and miscalculate the reactions to your little plans.
sorry Americans all your gold was taken in the 1933 bankruptcy of america.
Germans lost theirs in the treaty of Versailles.
the gold is held by international bankers, where, maybe only 10 people in the world knows where.
ask other countries where their gold is, and only a handful can truthfully tell you where it's at.
one day we'll learn how expensive 250 yrs. of financing wars really cost.
Thank you Tylers for posting SmartKnowledgeU articles.
POST MORE OF THEM PLEASE!
JS Kim is one of the best contributors on this site.
This is a great article and ties together many diverse bits of knowledge in a single, cohesive narrative.
Both the Bundesbank and Federal Reserve are sweating that the public will see their dance of fairies and conclude the gold in question is lost forever.
This is why the Bundesbank is so cautious and timid in demanding return of gold.
What’s more, neither one wants too many people to understand that their gold and “gold receivables” serve as collateral for all bank notes and bank reserves for all currencies.
In the case of the US Treasury, the gold it purports to possess serves as collateral for something like $4.5 trillion of bank notes and bank reserves plus an additional $15 to $20 trillion in so-called “cash equivalents” (on a worldwide basis).
Spread this knowledge – and watch the panic as people the planet over will rush to the exit of this currency hall of mirrors.
If you are I are to survive such slaughter, we have to offer an alternative.
The 'Public' has no clue anything is going on at all.
Most could give a rat's ass about gold price, silver price, or dollar price...they have no clue.
Most are more enthralled at who's going to the Superbowl and what new commercials we'll see as a result.
It's sorry state of affairs in our Republic.
Employment is up for bakers and clowns.
No they won't, 90% of the population is dumb and ignorant as fuck and they love being in that state, 7% are in on the scam at various levels, and 3%ish actually give a shit and can do basic math....
" If this gold was not Germany’s gold, whose was it? Was it gold stolen from Iraq or Libya?"
Ukraine's, right?
the dutch had to get theirs from somewhere, quid pro quo
The Indians are not stupid people. The sale of gold coins will go well, deposits of bullion less so.
Those buying precious metals stateside need to be wary of counterfeits. Buy only from reputable sources and keep your receipts.
If you want to play with paper gold or paper silver use options. GLD and SLV could go insolvent at a moments notice but the counterparty risk on your options wlll be with a bank or some greater fool they pawn them off on. When you wager on the manipulated price going up (now is a good time) add a position to cover your gains if the ETF goes belly up.
Fraud squared.
Fuck banks, this is a dumbass idea on Indias part
I'm not sophisticated, have minimal education, and have no understanding of high finance, even though I'm the corporate controller for fifty two entities.
All I know is if it isn't in your hand, you have jack-squat.
For me, my preferred, in my hand, dealing is pure silver or gold. Of which I have about fifty pounds of silver. I will never tell about gold. Save the 1/10 ounce I admitted to a while back.
None of it is here, in my home. The only precious metal here is FMJ lead. Lots and lots of it.
Come try to find my minor treasure...long lost to a dry lake bed out in the middle of the Mojave Desert.
(And, yes, it's still there. No one has ever disturbed it, so far.)
The advantage of a dry lake bed is that it's dry...it's easy to dig. Then later rains come and the dry lake fills up and obscures everything that was done to the bed. A couple tire tracks and and couple years...and no one is any wiser. Even when you go out ot dig it up, late at night, just to check every so often, the scar is hardly recognized in the daylight...if it's positioned right.
GOLD needs its own Glass-Steagal moment, even more than the rest of the financial system does.
If you act under the assumption that all the Financial System is criminal in nature, wou will be more right than wrong.
Not a fan of gold for precisely for the reasons presented here.
Gold can be "spoofed" in any number of ways. And that's what is happening. They can use your gold against you.
If you believe in gold, don't hand it over for any reason, but you'll have to be unreasonably strong to stay the course.
Being strong has its costs and I suspect the "system" will make you pay the highest cost that they can.
You prefer confetti?
Things that produce income.
And just what produces income when everybody's credit is tapped out and nobody out there is spending?
Essentials?
You cannot even purchase arable land which is free from counterparty risk. The Governments will tax you until they just seize it when you can no longer pay.
Haven't you figured out that this economy is dead, a waling zombie, and hollowed out, destind for a collapse of epocproportions?
Perhaps your strategy was good during the times of prosperity. But that has long since past.
Perhaps you need be building a stash of wealth so that you can purchase income producing properties and factories after the aftermath of collapse.
So take a loo around and loo at the real economy...not that you see from the confines of Wall Street or Ivory Towers.
Nobody is buying on Main Street. Nobody is selling on Main Street. There is no real production whatsoever in the USA.
It is dead.
The economy is not dead everywhere.
Look, matey, I know a dead parrot when I see one, and I'm looking at one right now.
They can use your gold against you.
They can use whatever they think against you. Money as debt is a wonderful idea, it's the way money changers use to control the planet.
If you don't hold it... you don't own it.
In gold we trust.