The End Of Plan A: The Big Reset & $8000 Gold

Tyler Durden's picture




 

Willem Middlekoop, author of The Big Reset – The War On Gold And The Financial Endgame, believes the current international monetary system has entered its last term and is up for a reset. Having predicted the collapse of the real estate market in 2006, (while Ben Bernanke didn't), Middlekoop asks (rhetorically) -can the global credit expansion 'experiment' from 2002 – 2008, which Bernanke completely underestimated, be compared to the global QE 'experiment' from 2008 – present? - the answer is worrisome. In the following must-see interview with Grant Williams, he shares his thoughts on the future of the global monetary system and why the revaluation of Gold is inevitable...

Middlekoop predicts the real estate crash in 2006... (ensure English Subtitles - Closed Captions - are enabled)

 

Bernanke did not... (stunning!!)

 

And now today, Middelkoop has some even more ominous concerns about the end of Plan A and where Plan B begins...

"By revaluing gold to a much higher level, to over $8000 an ounce, central bankers solve quite a lot of problems"

 

17:00 - "But we know Plan A - the current financial system - will end soon, we can't go on this way... so we need a monetary reset... and a revaluation of gold has helped central bankers in the past, such as Roosevelt in the 1930s. It would help to restore the balance sheet of The Federal Reserve."

 

But there are problems...

 

21:00 -  "It always ends in inflation.. certainly in 2016, we can expect more QE... and when that does not defeat deflation (driven by global over-indebtedness), further unorthodox measures will be taken (helicopter money).. and eventually a gold revaluation."

In this episode of the Gold series, Willem Middelkoop, founder of the Commodities Discovery Fund, dives into the history of monetary shifts and explores a scenario where the US dollar could be debunked as the global reserve currency. Willem discusses the possibility of gold being incorporated back into the monetary system, outlining the knock-on effects and the role of central banks in this scenario.

Grab a glass of wine (or something stronger) and enjoy...

Source: Real Vision is the video on demand platform for finance, where the world's best investors share their ideas.

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Mon, 02/01/2016 - 17:02 | 7126225 Mark Mywords
Mark Mywords's picture

+400

Mon, 02/01/2016 - 17:07 | 7126253 Truther
Truther's picture

Get that toilet paper $ out of the way. It's too fucking infected. Got gold?

Mon, 02/01/2016 - 17:15 | 7126295 SILVERGEDDON
SILVERGEDDON's picture

Make it physical - that re-hypothecated paper stuff won't be worth a pinch of coon shit in a windstorm.

Glad to see this story back up - it disappeared for a while. Like a lot of other stuff lately.

Hope Goldie Sacks didn't buy out Tyler...................

Mon, 02/01/2016 - 17:17 | 7126320 summerof71
Mon, 02/01/2016 - 17:21 | 7126343 Pladizow
Pladizow's picture

More balanced than the average gold bug interview.

Mon, 02/01/2016 - 17:45 | 7126461 nope-1004
nope-1004's picture

The "price" of gold depends entirely on what is used as the measuring stick.

If farenheit is removed from the weather thermometer, WTF is the scale for "cold"?  If the USD becomes shunned, what does price matter?  Could end up being $8,000,000,000

Anyway, not trying to crap on a great interview.  I just think that all of these price predictions assume quite a bit.  And that's why owning physical with ZERO counterparty risk is wise, because the price setters during systemic failure will panic.

Mon, 02/01/2016 - 17:47 | 7126477 thesonandheir
thesonandheir's picture

8000 FRN is very conservative. We know the CB's know the game is up, they are just trying to postpone the inevitable. But before they do there are a few things left to try.

Cash ban.

Negative rates.

Helicopter money.

World currency.

 

 

 

Just hope it blows and blows soon.

 

Got gold?

Mon, 02/01/2016 - 18:24 | 7126652 macholatte
macholatte's picture

Nothing going to happen anytime soon.

Before the above scenario takes place 2 other things need to happen first:
1.  The USA needs to have some gold in Ft Knox and add to its stock pile.
2. .gov needs to confiscate PM’s in some underhanded manner similar to what FDR did.

Mon, 02/01/2016 - 18:46 | 7126752 Transformer
Transformer's picture

The problem is that there is almost nothing to confiscate.  Maybe the state of Tx has some gold, but a few coins spread around 300 million people is hardly going to be worth it.

If you read the Weekly Standard, there's a big full page ad for gold almost every issue.  I would suspect that 95% of the gold held by private citizens in the US  is held by the 0.1%.  And those folks are not going to get confiscated.

Normal people probably have very little.  I certainly don't have any.

There was 18,000 tons to confiscate in '33.  Those are the kind of numbers that exist in India and China, not here.

Mon, 02/01/2016 - 19:08 | 7126822 Father Thyme
Father Thyme's picture

Let's get physical, physical / I wanna get physical / Let's get into physical / Let me hear your metal talk, your metal talk
www.youtube.com/watch?v=vWz9VN40nCA

Mon, 02/01/2016 - 19:32 | 7126936 Occident Mortal
Occident Mortal's picture

Clinton for prison stint.

Mon, 02/01/2016 - 20:34 | 7127236 Save_America1st
Save_America1st's picture

current GSR is 78.5:1

silver currently at 14.35/oz

SDB is having a sale on new micro-engraved silver Buffs any quanitity right now for .59 over spot.

https://sdbullion.com/silver/silver-rounds/1-oz-elemetal-silver-buffalo-...

If gold is revalued up to 8,000 FRN's then the silver to gold ratio would necessarily have to come down to at least 20:1...if not even much lower than that. 

That's a revaluation of phyzz silver up to 400/oz just for starters...

that's all I have to say to everyone about stacking the fuck outta phyzz silver now while they can still get some...bitchez ;-)

Mon, 02/01/2016 - 23:39 | 7128020 Fester
Fester's picture

Never, never never buy from SDB.  Very slow and they report transactions to the IRS that they don't have too.  Yes I did purchase (twice) from them, Never Again.

 

Go to reputable dealers like Apmex, Providence or TexMetals.

Tue, 02/02/2016 - 00:13 | 7128144 Save_America1st
Save_America1st's picture

as stated on their website as with every other dealer that buys and sells PM's they only have to report to the IRS if the transaction falls under form 8300 requirements:

https://sdbullion.com/help#answer-9

small purchases aren't reportable.

And SDB ships extremely fast...I've placed orders on a Friday afternoon quite a few times and got my delivery by either the next Monday or Tuesday. 

Just sayin'...

 

Tue, 02/02/2016 - 05:44 | 7128591 Manthong
Manthong's picture

Ooga booga boo..that's all I could understand from up there... but....

..when the quad of derivatives detonate it would be astounding if any real asset except 100 million dollar condos and stupid, ugly art did not appreciate 20 or 30K times in present fiat terms.

 

Tue, 02/02/2016 - 07:31 | 7128681 ilion
ilion's picture

FX broker tells its clients to stop trading if they cannot become profitable in 2 years:
http://blog.tickmill.com/trading-psychology/the-attractions-and-pitfalls...

Tue, 02/02/2016 - 20:25 | 7129832 Manthong
Manthong's picture

 

 

Tue, 02/02/2016 - 09:03 | 7128833 No Quarter
No Quarter's picture

+1 SDB has been great. Ordered a bunch from them and never an issue. Prices have allways been less than other dealers and product has shipped and arrived very promptly. In fact, i'm pretty sure you were the one to turn me on to SD.

Perhaps the other poster was thinking of JM Bullion? THOSE guys suck. Ordered twice from them and never again. Took a month each time to get my stuff and communication was AWFUL.

Tue, 02/02/2016 - 11:04 | 7129332 SilverDoctors
SilverDoctors's picture

The only transactions that SD Bullion has ever reported to the IRS are those required under 8300 money laundering laws: 
https://www.irs.gov/pub/irs-pdf/f8300.pdf

The number of times we've filed an 8300 can literally be counted on one hand, as we hate the gubmint as much as anyone, so we don't accept payment methods that would force reporting our customers' transaction.

Fester asked if he could send 2 personal checks for his transaction, then proceeded to mail in 9 money orders and a cashiere's check totalling 13.4k. 

Best advice when buying bullion if you don't want to be reported is to read the above IRS' 8300 pdf for yourself. 

Mon, 02/01/2016 - 23:45 | 7128055 Jtrillian
Jtrillian's picture

I don't think ANYONE can fathom what gold will really be worth after the global fiat currency system fails.  All fiat currencies are failing compared to the dollar.  Soon the dollar too will fail once China and the Eastern countries dump the dollar for a gold backed currency and all this inflation comes home. 

With the COMEX ratio currently more than 500 to 1, is it unfathonable to believe that gold could be 500X or more valuable than it is today.  If it's backing a new currency, amid hyperinflation of the current fiat currency, then I would say it's possible. 

At the least, I think $8000 is a fraction of what gold is really capable of once the next financial crisis really takes hold.  Bonds aren't safe.  Treasuries aren't safe.  Equities aren't safe.  Only hard assets will be safe.  And if WWIII erupts in the process, then NOTHING will be safe. 

Tue, 02/02/2016 - 02:53 | 7128488 capitallosses
capitallosses's picture

Quoting Gold in FRN's is of little use for the future. Gold should be quoted in terms of standardized rolls of toilet paper. Ask the Venezuelans.

Mon, 02/01/2016 - 19:32 | 7126940 thinkmoretalkless
thinkmoretalkless's picture

For the record...I don't have any either.

Mon, 02/01/2016 - 20:32 | 7127235 SumTing Wong
SumTing Wong's picture

Damned canoe trip...we do have some gold though. Both of us have our wedding bands. Mine is 10K gold. Wait...her's is platinum. Well, shit.

Nope, no gold here either.

Mon, 02/01/2016 - 21:46 | 7127554 Guided By Vices
Guided By Vices's picture

Me neither, but not because of a tragic boating accident. but a tragic blimp accident over the Orange Bowl on New Year's Day. "Good year?" you ask. No, it was the worst.

Luckily I have a "friend" who keeps packing and stacking ...

Mon, 02/01/2016 - 19:54 | 7127049 Huckleberry Pie
Huckleberry Pie's picture

When Germany asks for only a fraction of their gold back and the U.S. tells them it will take seven years...there is a problem.

Since the U.S. is sending Germany recast bars, they should thank Ukraine and Libya for their stolen gold.

Mon, 02/01/2016 - 19:54 | 7127051 Huckleberry Pie
Huckleberry Pie's picture

Boo. I see you:)

Mon, 02/01/2016 - 20:50 | 7127297 HoserF16
HoserF16's picture

(Transformer) Totally agree with your assessment. Back then, 1933, people trusted government. Today, people would rather throw molotov cocktails than confetti at the WH. "I'm sorry, confiscate what?"

Now at $15,000/Oz they might get a few takers. What do you want to leav your heirs??? 1's & 0's on somebody's hard-drive or a bag full of goodies that nobody know's about???

Mon, 02/01/2016 - 21:40 | 7127518 East Indian
East Indian's picture

In India, ownership of gold is very common. But confiscating it would be next to impossible. Moreover, Indian billionaires have not yet completed acquiring the political class...

Mon, 02/01/2016 - 23:16 | 7127934 delacroix
delacroix's picture

how much would an indian parent pay for a vaccine to save their child from dying of a manmade pandemic.

Tue, 02/02/2016 - 08:17 | 7128751 gonetogalt
gonetogalt's picture

If the Indians I know are any indication, damn little.

Mon, 02/01/2016 - 18:50 | 7126762 prefan4200
prefan4200's picture

Macholatte - I agree with your comment, however it is possible that the USA will be taken by surprise and not have 1. or 2. in place should the rest of the world decide they've had it with the dollar as a reserve currency.  I don't get the impression the current batch of DC clowns is very piped in to the international monetary scene and its important participants.  Ya know, community organizers, not world players....

Mon, 02/01/2016 - 20:29 | 7127177 The Saint
The Saint's picture

Look around.  There is nothing that can replace the U.S. Dollar as the world's reserve currency.  The world is stuck with the Dollar.

As far as the debt is concerned, the FED has to find a way to engineer inflation.  But the FED can't do it alone.  Congress and the President have to make business friendly policies instead of the crap that is coming out of the Obama White House.

We'll have to suffer though the 2016 recession then do the correct things to be business friendly so the FED can engineer an inflationary environment.  Inflation is the only way to get out of this mess and hurt the fewest taxpayers.  Of course, as always, those holding cash or on fixed incomes will suffer the most damage.  That's the way it always works.  It won't matter if it is called greenbacks or redbacks.  The debt can't be just errased without destroying the economy.  So, get ready for a round of inflation after the Obama recession.

Mon, 02/01/2016 - 20:37 | 7127253 Arnold
Arnold's picture

Hey, in this B rated show, the Regulators are the bad guys.

Mon, 02/01/2016 - 22:29 | 7127782 mkkby
mkkby's picture

Hey Saint, YOU need to look around some more.

They are creating inflation.  Since consumers and business are maxed out, the plan is for gov to do it.  That is why the federal gov is spending so reclessly.  Directly and thru student loans.

Most of that inflation is being exported.  Good news for americans.  Bad for everyone else.

Tue, 02/02/2016 - 09:44 | 7128966 . . . _ _ _ . . .
. . . _ _ _ . . .'s picture

"Look around.  There is nothing that can replace the U.S. Dollar as the world's reserve currency."

How about a fresh basket of SDR +Yuan -Dollars. Gold-backed Yuan, no less.

Goodbye Yankee Doodle Dollar.

Mon, 02/01/2016 - 19:21 | 7126890 Dragon HAwk
Dragon HAwk's picture

They could confiscate it by raising  it's price, and buying it,  what a strange concept I know...

Mon, 02/01/2016 - 21:42 | 7127529 East Indian
East Indian's picture

.gov does not know how to buy anything legally.

Mon, 02/01/2016 - 23:04 | 7127902 Tejano
Tejano's picture

Question: If you think FDR through executive order confiscated everyone's goldback in 1933, then where did all these double eagles and St Gaudens come from? Hell, just look at any dealer's website, your LCS, eBay, that old ammo can... Do really think anyone with lick of sense marched right down to the bank and turned in their gold? Sure, some dumbasses did...it takes all kinds.

 

Gold will prevail despite government shenanigans, as will those who hold (on to) gold.

 

Mon, 02/01/2016 - 18:31 | 7126692 Four chan
Four chan's picture

aside from the continental and the confederate we have had two systems of money in the us, one designed by our forefather patriots for the people and by the we the people, the second started in 1915 is our current jewish debt based monetary system from and for the jews who own it. in those 100 years they have enslaved a free nation of people to debt, confiscated all assets trough boom and bust cycles they create out of thin air, and bankrupted and bought off the republic's government. 

it is this second system that should be judged a failure, scrapped and rebuilt with money system number one and never again allowed to owned  by a people who can not be trusted for anyone else's welfare but their own base unlimited greed. see blankfein. 

Mon, 02/01/2016 - 19:46 | 7127010 FireBrander
FireBrander's picture

$8K for an ounce of gold? While a local furniture store HAS to offer 0%, three year, financing just to sell a fucking couch. The majority are BROKE; they'll pay $8K for gold ONLY if you loan them the money...

Mon, 02/01/2016 - 21:01 | 7127335 RaceToTheBottom
RaceToTheBottom's picture

His point is that it will be  a palatable solution to the 1% since only the 1% have enough to afford expensive gold.  They stay rich, the rest stay .... well the rest.

Mon, 02/01/2016 - 22:22 | 7127753 Four chan
Four chan's picture

lol well said. i always see those great depression pictures and think if that guy had a silver dollar or an ounce of gold in his pocket he wouldn't be so glum. so then i thought if it were me id prefer to have thousands of those things. this was back around 1985. 

 

Mon, 02/01/2016 - 23:52 | 7128074 Arnold
Arnold's picture

It wouldn't last you a  long time, if you had to feed yourself.

 

http://www.shorpy.com/

Mon, 02/01/2016 - 21:08 | 7127371 RadioFlyer
RadioFlyer's picture

I drove by my local, they were offering 0% for 5 years!

I just considered it like one of those "Repent! The End Is Near" signs.

Mon, 02/01/2016 - 23:23 | 7127961 83_vf_1100_c
83_vf_1100_c's picture

  They don't have do that to sell a couch. They do it to get low/no credit folks to sign the papers, then they wait. Miss one payment and bam, instant 28% interest rate kicks in. Fine print thing. Predatory lending practice/ usury is all it is.

Mon, 02/01/2016 - 20:21 | 7127113 True Blue
True Blue's picture

Here's what I want to know; ZH ran something a few months ago that stated there were something in excess of 250+ paper claims on every ounce of gold.

This: http://investingchannel.com/article/379447/Comex-Snaps-Gold-Dilution-Hit...

Claims 542 Oz paper per ounce of physical on the COMEX.

Another source claimed 50 billion oz in gold were being 'traded' with an estimated total above ground global gold supply of 5.49 billion oz backing it, which is close enough to 10 to 1.

Who can tell how much of this is already priced into a thrice manipulated market, but that would suggest gold price in a fair market of between $11,000 and an absolutely insane, Weimar Republic 'let's vote for those nice boys in the brown shirts' figure of a whopping $610,000 per oz. Who actually knows how much 'paper gold' is out there; we know there's a ton... and we know 'paper gold' is being used to rig the market and hide problems with 'paper money'.

You know, some Honest person or group could make life great for everyone by making a real gold credit card; use your card to debit grains, grams and oz from your gold account, automatically converted into your local fiat at that moment's fix.

 

Mon, 02/01/2016 - 21:49 | 7127566 East Indian
East Indian's picture

there is no dearth of such honest persons: Bank of America, Goldman Sachs, ...

 

Franctional banking was there even in gold currencies.

 

Anyone who is entrusted with your gold will ultimately resort to fractional banking. The only alternative, if you want a gold based currency, is to have gold coins issued. These could be issued by any mint, and, the more, the merrier. However, with gold shooting up to the stratosphere and above, coins have to be really very small, for common transactions - in milligrams.

Tue, 02/02/2016 - 06:04 | 7128612 Global Observer
Global Observer's picture

The only alternative, if you want a gold based currency, is to have gold coins issued.

Not nearly enough. Those coins must be immune from counterfeiting. There are several ways to counterfeit solid gold coins and bars, the easiest being to have a core the same density as gold, but made from some other thing and gold layer around it (gold plating is easily detected) carrying the same markings as a regular coin. About the only of way detecting such counterfeiting would be to use the very expensive and time consuming (at least a few minutes for each test) X-ray Fluorescence Spectrometers (XRF) and about the only thing anyone can do even after detecting a counterfeit coin is to reject it. To make it extremely risky to counterfeit gold coins, there need be legal protection against counterfeiting them. Why would governments institute laws against privately minted gold coins or bother minting gold coins themselves when they may as well generate currency and make it legal tender i.e. have laws against counterfeiting?

 

The only arena where gold will be used to settle commerce is international arena where no laws can be made against counterfeiting, but there are enough time and resources to verify the purity of the metal being submitted as payment, given the large volume involved. Even there it is extremely unlikely that each payment will be settled as gold. Gold will be deposited with a central agency who after verifying the purity will issue equivalent electronic currency which can be used to make payments electronically. Periodically anyone accumulating large amounts of currency with this agency will withdraw it as gold and transfer it one's own wearhouses for safe keeping or lend out the electronic currency to others who need to borrow to make payments. If the only entities allowed to transact with this agency are nation-states, there will never be a need to create more units of the currency than there is gold on deposit with the agency i.e. no need for fractional reserve system. Those running surpluses can make loans to those running deficits direcly or through the agency itself which borrows from those having surpluses and lend it to those who run deficits. If a loan is defaulted on, the lender takes the loss, but the deposit balances always reflect the total gold available with the agency. If this agency is an international agency with participation by many politically stable countries with divergent interests (meaning they cannot collude to defraud others) it will be an instant success.

Such an agency already exists and will be issuing this 100% gold-backed electronic currency for international payment settlements soon. The agency is called the New Development Bank, headquartered in Shanghai, headed by an Indian and Chaired by a Russian.

Tue, 02/02/2016 - 16:48 | 7131425 True Blue
True Blue's picture

They wouldn't be tiny, but they would have Big buying power -the Dollar Store becomes the Half-Penny Outlet. Right now, it takes $.04 of fiat to mint a single penny.

Mon, 02/01/2016 - 23:36 | 7128008 raeb
raeb's picture

True Blue--Take a look at this, might be just the ticket.

 

 

https://upma.org/

Do NOT follow this link or you will be banned from the site!