"If You Can't Touch It, You Don't Own It"

Tyler Durden's picture

 "Submitted by Jeff Thomas,  Doug Casey’s International Man"

The pending Brexit has, not surprisingly, caused a shakeup in the investment world, particularly in the UK. Of particular note is that, recently, asset management firms in Britain began refusing their clients the right to cash out of their mutual funds. Of the £35 billion invested in such funds, just under £20 billion has been affected.

For those readers who live in the UK, or are invested in UK mutual funds, this is reason to tremble at the knees.

So, why have these investors been refused the right to exit the funds? Well, it’s pretty simple. The trouble is that quite a few of them made the request at about the same time. Of course the management firms don’t keep enough money on hand to pay them all off, so, rather than spend all their money paying off as many clients as possible, then going out of business due to a lack of liquidity, they simply announce a freeze on redemptions.

Those who are outraged may read the fine print of their contracts and find that the fund managers have every right to halt redemptions, should “extraordinary circumstances” occur. Who defines “extraordinary circumstances?” The fund managers.

Across the pond in the US, investors are reassured by the existence of the Securities and Exchange Commission, which has the power to refuse this power to investment firms…or not, should they feel that a possible run on redemptions might be destructive to the economy.

Countries differ as to the level of freedom they will allow mutual fund and hedge fund management firms to have on their own, but all of them are likely to err on the side of the protection of the firms rather than the rights of the investor, as the firms will undoubtedly make a good case that a run on funds is unhealthy to the economy.

The Brexit news has created a downward spike in investor confidence in the UK – one that it will recover from, but, nevertheless, one that has caused investors to have their investment locked up. They can’t get out, no matter how badly they may need the money for other purposes. This fact bears pondering.

Presently, the UK, EU, US, et al, have created a level of debt that exceeds anything the world has ever seen. Historically, extreme debt always ends in an economic collapse. The odiferous effluvium hasn’t yet hit the fan, but we’re not far off from that eventuality. Therefore, wherever you live and invest, a spike such as the one presently occurring in the UK could result in you being refused redemption. Should there then be a concurrent drop in the market that serves to gut the fund’s investments, you can expect to sit by and watch as the fund heads south, but be unable to exit the fund.

As stated above, excessive debt results in an economic collapse, which results in a market crash. It’s a time-tested scenario and the last really big one began in 1929, but the present level of debt is far higher than in 1929, so we can anticipate a far bigger crash this time around.

But the wise investor will, of course diversify, assuring him that, if one investment fails, another will save him. Let’s look at some of the most prominent ones and consider how they might fare, at a time when the economy is teetering in the edge.

Stocks and Bonds

Presently, the stock market is in an unprecedented bubble. The market has been artificially propped up by banks and governments and grows shakier by the day. Bonds are in a worse state – the greatest bubble they have ever been in. This bubble is just awaiting a pin. We can’t know when it will arrive, but we can be confident that it’s coming. Rosy today, crisis tomorrow.

 

Cash on Deposit

Cyprus taught us in 2013 that a country can allow its banks to simply confiscate (steal) depositors’ funds, should they decide that there is an “emergency situation” – i.e., the bank is in trouble. Unfortunately, the US (in 2010), Canada (in 2013) and the EU (in 2014) have all passed laws allowing banks to decide if they’re “in trouble”. If they so decide, they have a free rein in confiscating your deposit.

 

Safe Deposit Boxes

Banks in North America and Europe have begun advising their clients that they cannot store money or jewelry in safe deposit boxes. Some governments have passed legislation requiring those who rent safe deposit boxes to register the location of the box, its number and its contents with the government.

 

Each year, the storage of valuables in a safe deposit box is becoming more dubious.

 

Pensions

Pension plans tend to be heavily invested in stocks and bonds, making them increasingly at risk in a downturn. To make matters worse, some governments have begun to attack pensions. Others, such as the US, have announced plans to force pensions to invest in US Government Treasuries – which, in a major economic downturn could go to zero.

 

These are amongst the most preferred stores of wealth and are all very much at risk. In addition, there are two choices that, if invested correctly, promise greater safety.

 

Real Estate

The Mutual funds in the UK that are presently in trouble are heavily invested in real estate. But real estate that you invest in directly does not face the same risk. However, any real estate that’s located in a country that’s presently preparing for an economic crisis, such as those mentioned above, will be at risk. Real estate in offshore jurisdictions that are not inclined to be at risk is a far better bet. (An additional advantage is that real estate in offshore locations is not even reportable for tax purposes in most countries, because it cannot be expatriated to another country.

 

Precious Metals

Precious metals are a highly liquid form of investment. They can be bought and sold quickly and can be shipped anywhere in the world, or traded for metals in another location. Of course, storage facilities in at-risk countries may find themselves at the mercy of their governments. However, private storage facilities exist in Hong Kong, Singapore, the Cayman Islands, Switzerland and other locations that do not come under the control of the EU or US. Precious metals ownership provides greater protection against rapacious governments, but storage must be outside such countries.

The lesson to take away here is that, if you can’t touch it, you don’t own it. Banks and fund management firms can freeze your wealth, so that you can’t access it. Governments and banks can confiscate your wealth. If you don’t have the power to put your hands on your wealth on demand, you don’t own it.

This evening, take account of all your deposits and investments and determine what percentage of them you do truly own. If you decide that that percentage is too low for you to accept, you may wish to implement some changes... before others do it for you.

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VWAndy's picture

 Suckers! After all the crap over the last few years?

cossack55's picture

I thought that was Rule 1

Supernova Born's picture

The shell game scam can't be run without shells.

InjectTheVenom's picture

Ann Barnhardt :  "If you can't stand in front of it & touch it & defend it with your weapon, then you don't own it !"   Rock on with your bad self Ann !!  

VWAndy's picture

 All my wealth is in tools. They are not worth taking unless you wanted to work with them. Even then its still not worth it. Thats the day they will piss off the wrong MFS and die.

847328_3527's picture

Real Estate is plunging in Canada and United States except for a few tiny areas so be careful there.

Arnold's picture

I never thought I could afford a gated community.

RafterManFMJ's picture

John McCain is a tool. Just sayin'.

Amun's picture

This whole thread reads like an endless confession of totally obsessed w*nkers

Four chan's picture

bought 10 2008 w fractionals yesterday, the suppression of price is taking place on ebay, stock up while you can is what my advice is.

Chupacabra-322's picture

Keep Stack'n Bitchez!!

"Across the pond in the US, investors are reassured by the existence of the Securities and Exchange Commission, which has the power to refuse this power to investment firms…or not, should they feel that a possible run on redemptions might be destructive to the economy.

Countries differ as to the level of freedom they will allow mutual fund and hedge fund management firms to have on their own, but all of them are likely to err on the side of the protection of the firms rather than the rights of the investor, as the firms will undoubtedly make a good case that a run on funds is unhealthy to the economy."

Dear Globalist,

Fuck Off & Die.

adanata's picture

 

 

You betcha... moreover, if they can lend money to it or tax it... they own that too. :/

RawPawg's picture

currently fondling my stacks
i'm good

FX223's picture

If I need to get to mine...grab the snorkel and back in a few.

 

Fuck those moneychangers games!

Wile-E-Coyote's picture

Did you ever see that guy on the other bank watching you dive the same place..............he got curious one day!

FX223's picture

Maybe, but I don't think he would have seen where I set the bear traps.

Thoresen's picture

Time to rush out and buy a taxable property overseas??? Doesn't work for most of us.

logicalman's picture

No shit, Sherlock!

If you hadn't figured this out before now you've not been watching closely.

 

Jack's Raging Bile Duct's picture

Enough cash on hand to transact. Large line of accessible credit just in case. Everything else goes into business ventures or PMs. The end.

Nolde Huruska's picture

Without rule of law, if you can't defend it you don't own it,

dark fiber's picture

You don't need the law to defend it you need  S&W.  And if "rule of law" doesn't allow it, then fuck the law, .45 is the law.

silverer's picture

.40 is OK as well. Even 9mm.

blue51's picture

I was at my friends gun club thursday, and got to shoot his new S&W 45. VERY nice, compared to my H-K vp9 . He was showing me how to use my AR-15 that I got a month ago . I got it just in time, because the Mass AG snuck in a ban on the AR ,  and any Assault type rifles, Wed at midnight.

Billy the Poet's picture

Let me know how that march back to Boston works out for her.

blue51's picture

I read earlier this morning, that there was going to be a protest Rally, on the steps of the State House  at 10 am. I will have to keep an eye out for follow-up.

She is trying to get to DC, like the Mayor of Boston, by doing whatever the DemoNWOslaves ask.

joeyman9's picture

Waiting for a court to remind her she doesn't have the power to create law, or perhaps a jury nullification or two would do it.

chicmagnet's picture

I've had a rageing hardon all weekend! Gettin me a couple of sigs this week probly a 226 chambered for 357 sig, and maybe a 380

tarabel's picture

 

 

Nothing like anticipation.

I'm counting the days until my BM 59 kits arrive for the two spare Garand receivers I cleverly bought from the CMP last year.

I hate having stuff on order and then reading about various atrocities that are certain to crank up the fascists and might cause shipping difficulties, shalll we say.

chicmagnet's picture

“If you love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you and may posterity forget that ye were our countrymen.” — Samuel Adams

Wile-E-Coyote's picture

Exactly, if people know you have it nearby they will come and take it. Anyone will give up their stack if they are tortured enough or their loved ones are.

Queue Rambo types.................................. 

Seasmoke's picture

Correct. However. Paper still covers rock.

T-NUTZ's picture

in the LONG GAME, rock always beats paper.

silverer's picture

" management firms in Britain began refusing their clients the right to cash out of their mutual funds..."
Now THAT should whip up confidence in the financial markets there.

TimeIsTheFire's picture

Ownership is a consensus based concept. It works only with a majority - directly or by proxy - subscribing to it. There are alternative cultural models in which all land, goods, etc. are common goods, i.e. no private ownership exists. Of course, you can always say "this is mine" and club down anyone who goes near it, but good luck with that when you're outnumbered 100:1. You can touch gold, but that doesn't
mean you really own it, that was the "gold shirt man"'s costly mistake.

TimeIsTheFire's picture

And there are plenty of examples in history where presumtive "owners" had everything taken from them - their gold, their possessions and the land they lived on. A couple of handguns didn't save them from that fate.

Billy the Poet's picture

It's always good to have a leg up. Mare's Leg that is.

WOAR's picture

Well, when you're not strong enough to fight off the Mongols, yeah. You get raped.

But I don't think America could be steamrolled so easily.

People who argue and say "the government has tanks and drones!" fail to realize the incredibly long supply chain those things have. Knock out the tread on a tank, and it's not going to go anywhere for a hot minute. When spare parts run out, and the military can't ship in new ones because it's in the middle of a fucking civil war (and there are no factories in the US to make those parts), then they will be shit out of luck.

The American military requires hundreds and hundreds of hours of maintenance work for every hour that a plane flies, drops bombs, etc. I very much doubt that todays military might could be maintained in a WWIII scenario - they simply don't build them like they used to.

True Blue's picture

Not to mention only 155 days of fuel in the 'strategic petroleum reserve'.

dot.dot's picture

True that.  All branches of the .mil have been skimping on parts and maintenance for years.  Both the navy and AF have been know to be raiding museum's for parts very recently.  

Also, if GI Joe doesn't think his family will be safe while he is gone -he will not go.  If forced to go, he will go awol at first opportunity.

MontgomeryScott's picture

In the '91 Bush 'the Elder' CIA head's 'Desert Storm 1', the USGOV thought they could call up the 'Mothball Fleet' (WWII 'Liberty Ships') to transport the men and materiel during that 'coalition of the willing' bullshit.

THAT didn't work out quite as planned, though.

After 46 years, most of these ships were sinking at their moorings. Those that WERE operable lacked people who actually knew how to operate them (OLD technology, and all). I gather that the Liberian Fleet was called in to service...

You can 'fact-check' my claims, of course (I REMEMBER THEM FIRST-HAND).

WHERE was that computer you are using to post with originate?

Stu Elsample's picture
"If You Can't Touch It, You Don't Own It"

 

...I'm touching mine right now

beemasters's picture

How has it changed...The saying used to be "If you haven't bought it, you don't own it". Don't worry, I won't touch yours unless you touch mine first...gold, that is.

tarabel's picture

 

 

For someone named Stu Elsample, that's not very reassuring.

tarabel's picture

 

 

I should have known this was from the Inter-Nazi-onal Man blog. These guys are always so mutually contradictory with their logic.

1) If you can't touch it, you don't own it.

2) Put it in some stranger's vault half a world away.

How do those two pieces fit into a single argument?

I always walk away with the suspicion that these guys own one honking big ass storage vault someplace and they are planning on disappearing with the loot when everything goes south.

ah-ooog-ah's picture

the dilemma is resolved by

 - I have passports for 5 different countries

 - I have my own private jet  + crew

 - Half a world away is just 8 hours flying time

 - the other regime is not so bad

 - sod you i'm outta here