Tag Archives: Deep State

Empty Gold Vaults and Fresh Out of Bombs

Guest post from The Daily Coin:

Paul Volker was the last central bankster to actually do the right thing and push interest rates to 21%. Can you imagine that happening today? The entire global financial system would blow apart before lunch.

As U.S. politicians are in a constant state of bickering and arguing, not only with the world, but within our borders, how are we to compete with an economic machine the size of China and Russia? The citizens of this country need to understand these projects are happening and will change the course of history. The economic and power shift is happening right now. The now unavoidable economic collapse coming to the shores of America is happening. The Western economies began unraveling in earnest in 2008 and, as we are seeing today, will continue to accelerate until its bitter end.

You can read the rest of this here:   Out of Gold and Bombs

On The Home-Stretch To Collapse

The warning signs are there but very few look for them or want to see them. But it’s a dynamic in which once you see it you can’t “unsee” it. A teacher I know told me this morning that Colorado school districts are quietly cutting staff across all districts. The only reason this would be occurring is that the State is projecting a decline in tax revenues. The only reason tax revenues would be declining is because economic activity is slowing or contracting. And Colorado supposedly has one of the more “vibrant” State economies.

The soaring level of “hope” that, for some unexplainable reason, accompanied the election of Trump is now crashing. The so-called “hard data” which somewhat measures the level of economic activity never moved higher in order to justify the optimism – an optimism tragically seeded in ignorance. As an example, the Kansas City Fed released its economic survey today. The composite index crashed from 20 to 7. Not surprisingly, Wall Street snake-oil salesmen – otherwise known as “economists” – were expecting a reading of 17 on the index.

As for individual components of the index, the average workweek and number of employees dropped; the production component of the index fell precipitously; and new orders collapsed. In fact, new orders expectations fell below the pre-Trump level. The six-month outlook metric – aka the hope index – plunged to its lowest level since November.

The truth is that all of the regional Fed economic activity surveys were largely driven by “hope,” which registered in the form of new orders for goods that will sit on the shelves of car dealers and non-food retailers and in the form of “expectations” about the level of economic activity in six months.

But there has not been any follow-through in form of actual growth in economic activity to justify the unrealistic level of “hope.” Real disposable income and the real level of retail/auto sales have been declining on the way to a tail-spin plunge. Any pulsations in final retail sales and home purchases have been fueled by the parabolic issuance of sub-prime quality debt. In fact, an increasing percentage of home purchases are from aspiring flippers. We are at the point in the cycle, just like 2007-2008, in which many of these flipper purchases will never end up with end-users and instead will land on bank balance sheets.

Auto sales through the end of March were down 10% since the beginning of 2017, resulting in the steepest decline in auto sales since 2009.  New car inventory at some of the biggest auto dealers around Denver is spilling over into the giant parking lots at vacant malls as OEMs push overproduction onto the dealer network.   Once the debt capacity of those still buying pick-up trucks at record incentive pricing hits the wall, the auto industry will see a spectacular cliff-dive.  The Government is too broke to provide the “cash for clunker” safety-net put in place in 2010.

In addition to trillions in printed (electronically generated) currency, the Fed has been able to fabricate the illusion of economic growth with an enormous amount of credit creation.   Credit is debt-issuance.   The part about debt that is conveniently overlooked by economists is that borrowed money behaves like printed money until it has to be repaid. The problem is that most debt created in the U.S. is never repaid.  For instance, the level of outstanding Government debt has been increasing every day since before Nixon closed the gold window.  This is not “debt” in the traditional sense of a loan that gets repaid.  This is money printing.

Consumer  and corporate debt levels have been rising in parabolic fashion and are at all-time highs.  Given that large chunks of this debt will never be repaid, just like in 2008-2009, the issuance of this debt is the same as printed money.  Amusingly, though not surprisingly, the Fed stopped reporting the total amount of debt outstanding in the system (Government + Corporate + Household) on March 25, 2016.  On that day the total debt outstanding was $63.5 trillion.  It’s likely well over $65 trillion by now.   That debt, until it’s repaid, is no different that printed currency.

This would be great in a pretend world in which debt could be issued to borrowers ad infinitum.  It would be the proverbial money tree on which free lunches blossomed for everyone forever.  Unfortunately, debt can not be issued in increasing amounts to eternity. Currently it would appear as if the non-Government borrower segment of the debt statistic has reached its borrowing capacity.   It happens gradually then all at once.   The United States is getting close to the “all at once” stage.

This is why the Deep State has resorted to the last stage of history’s Empiric life-cycle curve:  when all else fails start a war…

 

The Deep State Transcends Sovereign Law

The ultimate form of political and economic power is the power to commit crimes with impunity.  – John Titus

The Shadow of Truth is pleased to present a preview of, “All The Plenary’s Men,” the new film by John Titus (Best Evidence videos / Bailout Films).   The term “plenary” in this context is defined as, “complete in every respect;” as in, “plenary power,” meaning, “absolute power.”

In his spectacularly prophetic dystopian novel, “1984,” George Orwell offered the following observation about power:

Power is not a means; it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship. The object of persecution is persecution. The object of torture is torture. The object of power is power.

The quiet revolution occurring behind the facade that is called “Washington, DC” for several decades has led to the complete hijacking of the U.S. Government by an entity nefariously known as, “The Deep State.”   Those who warned about The Deep State previously were labelled conspiracy theorists.  Now, with the help of Wikileaks, the idea of the Deep State is openly discussed even in the mainstream media.  The Deep State is Orwell’s Big Brother.

The ultimate power is the power to commit crimes with impunity, meaning that the entity committing the crime does so free from fear of punishment.   We saw this with the Iraq invasion in several respects.  The invasion was never sanctioned by the UN Security Council or in accordance with  the UN’s founding Charter.   It was an illegal war waged by what has become the world’s most dangerous terrorist:  The U.S. Deep State.   Big oil is
part of the Deep State.  Therefore, when Halliburton was caught charging the U.S. taxpayer $10/gallon for gasoline being sold to the military in Iraq, Halliburton was never punished.

Even more horrifying was watching the Too Big To Fail banks break ev
ery major securities law in the rule book leading up to the financial collapse of 2008 and escape free from any form of prosecution.  Not only were these banks allowed to trample all over the law, but the Government  used $800 billion of taxpayer money to keep the banks from collapsing and to enable the banks to pay large bonuses that year.

The primary theme underlying John Titus,’ “All The Plenary’s Men,” is that any entity that can commit crimes with impunity has risen above a nation’s sovereign law.  In fact, that entity IS the sovereign authority.   Thus, The Deep State is the sovereign authority standing behind the U.S. Government.  The Deep State is comprised of not just the NSA, CIA and Pentagon, but also Big Oil, Big Banks, Big Healthcare and Big Technology.

“We’ve been swirling down the toilet as a nation since 2007” (John Titus).  The Shadow Truth chatted with John about his upcoming film, for which he provided a thoroughly engrossing, if not chilling, trailer:

Is Trump A Weaker President Than George W. Bush?

Shortly after his inauguration, Trump started doing the politicians favorite dance-step: The 180-Degree Pivot.  This is where the politician as a candidate for office issues policy promises that patronize enough voters to get the politician elected.  Once elected, the politician reverses course and becomes a puppet for actual policy-deciders “behind the scenes.”  The only “promise” to which Trump seems to adhering is that stupid wall along the Mexican border.  I’m not sure who really wants that other drug-addled right-wingers and schizophrenics.

More disconcerting is Trump’s about-face on foreign policy.  Specifically, his Administration’s sudden antagonism toward pretty much the rest of the world, except Israel, England and Saudi Arabia.  To his credit, early on Trump threw a few punches at the Deep State.  Unfortunately the Deep State has once again hijacked the Oval Office – more rapidly than I expected.

I wanted to re-post this commentary from my friend, Dr. Paul Craig Roberts, in which he presents VP Mike Pence as the Deep State’s front-man in the White House.  I was concerned from the day Trump selected him that Pence was a Trojan Horse for the Deep State.  As Dr. Roberts elaborates, it appears as if my fears were well-founded:

President Trumps Disappearance – by Dr. Paul Craig Roberts (LINK)

In my long experience in Washington, vice presidents did not make major foreign policy announcements or threaten other countries with war. Not even Dick Cheney stole this role from the weak president George W. Bush.

But yesterday the world witnessed VP Pence threaten North Korea with war. “The sword stands ready,” said Pence as if he is the commander in chief.

Perhaps he is.

Where is Trump? As far as I can tell from the numerous emails I receive from him, he is at work marketing his presidency. Once Trump won the election, I began receiving endless offers to purchase Trump baseball caps, T-shirts, cuff-links, coffee mugs, and to donate $3 to be entered into a raffle to win some memorabilia. The latest offer is a chance to win one of “personally signed five incredible photographs of our historic and massive inauguration.” https://donate.donaldjtrump.com/signed-inauguration-photo-sweepstakes?utm_medium=email&utm_campaign=JFC_direct-ask_signed-inauguration-photo-sweepstakes&additional[utm_content]=041917-inaugural-photo-contest-djt-jfc-p-p-hf-e&utm_source=e_p-p&amount=3

For Trump, the presidency is a fund-raising device. If his VP, National Security Advisor, Secretary of Defense, UN Ambassador, CIA Director, whoever, want to start wars wherever, that’s just more memorabilia to raffle off for a $3 donation.

As a result of Trump’s failure to govern his own government, we have VP Pence telling Russia and China that there could be a nuclear exchange on their borders between the US and North Korea. Although Pence is not smart enough to know, this is not something Russia and China will accept.

Washington worries about North Korea having nuclear weapons, but the entire world worries that Washington has nuclear weapons. And so many of them. World polls have shown that the majority of the world’s population are far more concerned about the threat to peace posed by Washington and Israel than by Iran, North Korea, Russia and China.

Pence prefaced his “the sword stands ready” remark with “the United States of America will always seek peace,” which after Serbia, Somalia, Afghanistan, Iraq, Libya, Yemen, Pakistan, and Syria is as false a statement as it is possible to make. From Washington’s perspective it is always Washington’s victims that are “reckless and provocative,” never Washington.

The US stands for war. If the world is driven to Armegeddon, it will be Washington, not North Korea, Iran, Russia, or China, that brings life on earth to an end.

The Military Complex Has Taken Control Of The White House

“The astonishing reinvention of Donald Trump:”  Washingtonians are still puzzling at the speed with which the man who promised to “drain the swamp” has come to bask in its approval. In the past 10 days, Mr Trump has belied many of the city’s worst fears. Having promised to launch a trade war with China, Mr Trump is rapidly abandoning his protectionist rhetoric. Likewise, having vowed to avoid foreign wars, he has acquired a sudden taste for Levantine missile launches. And having dismissed Nato as obsolete, Mr Trump is now singing the alliance’s praises. – Financial Times, April 13, 2017

It was just a matter of time before the Deep State got its meat-hooks into Trump.   The move to remove Steve Bannon from the National Security Council and replace him with two Deep State operatives who had been formerly removed from NSC was our signal that the Deep State had restored its control of the Oval Office.  Shortly after that power swap was accomplished, missiles started flying in Syria in response to false flag “gas” attack and the world’s largest non-nuclear bomb was dropped on CIA-built underground tunnels in Afghanistan.

Trump has back-pedaled on every single “plank” in his campaign platform – about as quickly as Obama did after he was inaugurated.  Trump’s geopolitical policies now resemble the same policies endorsed by Hillary Clinton, who is a neocon dressed in drag.

When all else fails, start a war.  The opinion ratings on Trump are plunging, along with the major portions of the economy.  Auto sales are down 10% since the beginning to 2017 and JP Morgan, despite “beating” earnings estimates, disclosed a troubling spike in credit card write-offs, which rose to nearly $1 billion in Q1.  Retail sales have now declined two months in a row.  It’s no coincidence that the dismal sales report was released on Good Friday when the market was closed.  The original .1% gain reported for February was revised down significantly to a decline of .3%.   Restaurant industry sales have declined for 11 of the last 12 months in a row on a year over year monthly basis.

The economy is been fueled on money printing and credit creation for the better part of 40 years.  That artificial stimulation went parabolic in 2009.   The tech and housing bubbles have been reinflated along with every other asset class into an “everything” bubble.  Real weekly earnings have declined two months in a row. The consumer is tapped out on two fronts:  disposable income and the capacity to take on more debt.  Now comes the part where the average household begins to default on the debt it’s taken on over the last 8 years.  Hence the big jump in credit write-offs disclosed opaquely by JP Morgan last week.

Today’s Shadow of Truth discusses the role played by the Deep State in ushering in the inevitable economic collapse of the United States which will lead to the implementation of Totalitarianism and a dystopic political system:

Gold & Silver Manipulation: The Biggest Financial Crime In History

Investment Research Dynamics is pleased to present another truth-seeking missile launched by Stewart Dougherty:

This crime is already 285 times bigger than the LIBOR scandal, and 500 times bigger than Madoff’s swindle. It is, in fact, the largest, most destructive financial crime in history.

According to the mainstream financial media (MFM), the biggest financial frauds in history are the Bernie Madoff Ponzi scheme, with roughly $20 billion in net investor losses, and the Bank State rigging of LIBOR, which resulted in 16 guilty banks paying $35 billion in fines, which supposedly equated to their theft.

The MFM have conveniently ignored a far larger financial crime that has been perpetrated for 37 years and counting, and that has netted its orchestrators more than $1,000,000,000,000.00 ($1 trillion) in stolen profits. This crime is so powerful that it can produce fraudulent proceeds of $1+ billion on demand and in minutes, making it unique in the annals of theft. It is a crime that has been committed literally thousands of times since 1980, and is now being committed in the most blatant and brazen manner ever. This crime is already 285 times bigger than the LIBOR scandal, and 500 times bigger than Madoff’s swindle. It is, in fact, the largest, most destructive financial crime in history.

To read the rest of this, please click here:  Gold & Silver Manipulation

 

Gold And Silver: Legal Weapons Against The Deep State

  • Question:  Why do Central Banks and Governments hate gold?
  • Answer:  Because they can’t print it

“An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense – perhaps more clearly and subtly than many consistent defenders of laissez-faire – that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.”  – Alan Greenspan, “Gold and Economic Freedom”

Just like everything else in the western financial system, the paper trading markets are leveraged beyond redemption.   The amount of paper “claims” on actual physical gold was estimated to be 100:1 in 2010.   We can assure you that ratio is much higher now.  On the Comex alone, for instance, if more than 9% of the  April open interest in gold futures were to stand for delivery – based on the currently declared 1.4 million ounces of gold reported as being “available for delivery” (registered) – the Comex would default.  The entire open interest in gold futures is 60x greater than the amount of gold available for delivery.

This is just the publicly traded paper gold derivatives.  There’s also the shady world of OTC gold derivatives.  We have no idea what kind of leverage is embedded in these contracts.  But the total notional amount of OTC “precious metals” derivatives according to the OCC’s latest quarterly report on OTC derivatives (Office of the Comptroller of the Currency) is over $28 billion.  Just to highlight the degree to which the Government goes in order to hide the facts about the gold and silver market, the OCC used to break out OTC precious metals derivatives into the categories of “gold” and “silver and other.”  Now the OCC  reports just “precious metals.”  What is it that the Government and banks are hiding?

The amount of leverage embedded in a Comex futures contract, based on the current amount of margin required, is about 25:1.  There’s no telling how much leverage is embedded in the OTC derivatives agreements.  All we know is that the disclosure requirements are becoming increasingly more opaque.

Silver futures began trading on the CBOT in 1969.   But gold futures were not around until 1974, three years after the U.S. closed the gold window, completely disconnecting the dollar from gold.   Gold futures were developed to enable the Fed and the U.S. Treasury to control the price of gold as a means of reinforcing the legitimacy of the dollar as a fiat currency used as the world’s reserve currency.

While the price of gold has been heavily manipulated since at least the 1960’s, when the U.S. was running out of enough gold to fulfill its obligations under Bretton Woods, the manipulation and “shock and awe” price attacks are used as a form of propaganda that is designed to discourage investors from converting fiat dollars into gold and silver.  It’s a powerful weapon used by the Deep State against gold and economic freedom.

In today’s episode of the Shadow of Truth we discuss the manipulation of gold and silver and how it’s used by the Deep State to increase the Government’s control over the population:

The Deep State’s Gold Scam And The Demonization Of Russia

To me, what’s really going on needs to be explained to people or they are going to completely give up on the hope of finding / preserving a way to protect their financial freedom … in other words, getting out of the corrupt monetary system and into metals, while they still can.

This price pummeling [of gold and silver this week] is absolutely state-of-the-art Psy-Op…managed by the Fed and Bank State, using the most sophisticated techniques developed over decades by the CIA and related agencies. – Stewart Dougherty in an email exchange about his latest article

Must-read Guest Post from Stewart Dougherty

As the Fiscal Year 2018 budget, and particularly its war component are floated, it has become clear that without continued, massive military spending, paid for with mass-produced electrons masquerading as money, U. S. GDP would collapse, taking the country’s financial and monetary systems with it. The nation, whose real economy has been hollowed out, for profit, by the Deep State plunderers, has become significantly reliant upon deliberately contrived wars and military tensions for its economic survival.

With systemic monetary risk now at an unprecedented level, intensified by a new, partisan, “politics of defeat,” scorched earth agenda being implemented by those displeased with the results of the 2016 election, there has never been a more dangerous time for people to denominate their wealth in unbacked, baseless, debt-drugged dollars.

The absolute last thing the Deep State, and particularly its Banking Division (the Bank State), can allow the people to figure out at this time is that there is a far more safe, secure and potentially profitable way for them to position their financial assets than dollar-denominated bank deposits: precious metals. A widespread movement into metals at this time would damage the Bank State and its umbrella organization, the Deep State, because their future profits require the control and progressive expropriation of the people’s money.

Therefore, a March rate hike is guaranteed, for three primary reasons. First, precious metals prices must be pummeled as much as possible, in order to scare uninformed people away from the easy, safe and logical financial refuge metals provide. Even though the “rates up, metals prices down” reflexive reaction is absurd, it has been baked into the trading algorithms so that it will occur no matter what other factors might be in play when rates are increased. Strategic Deep State price fraud, which is perpetrated by internationally signaled, time-coordinated and algorithmic inside trading, ensures that metals prices can reliably be controlled. At least for now. When physical demand finally increases in a material way, the price fixing fraud will collapse.

Second, the Bank State must increase the incentive for people to keep their money in its institutions, while it pushes forward, as fast as possible, with its cash elimination agenda. Once cash is eliminated, the banks will no longer have to worry about bank runs, which would otherwise be historic when the  wheels coming flying off the thoroughly debauched monetary system, an event we view as inevitable.

Third, the Federal Reserve System is now 100% politicized, and run by sneaky, die-hard political ideologues who lie about why they do what they do and what they really think. Those who run the Fed are despondent that despite implementing for eight YEARS an interest rate policy specifically designed to enable Obama to create a totally false illusion of economic “recovery” by massively increasing government spending with trillions of phony, deficit, zero-interest-rate “dollars,” the people saw through the economic lie and defeated the Fed’s next intended puppet, Clinton.

Yellen, Fischer and the other partisan Fed governors are simply not going to allow Trump to turn around, in a matter of months, an economy that the Deep State and the Fed have systematically been looting, at mind-boggling and astronomical profit to themselves, for the past decade. Nor are they going to allow Trump to bask in DJIA-record glory. Therefore, the power- and money-obsessed functionaries at the Fed and within the Deep State, who all totally buy into the scorched earth agenda, are going to bring down the economy and markets, even if it means that every single private pension fund and the net worth of every non-connected citizen collapses with it. They couldn’t care less about that, as we are about to see, because they will have a scapegoat for what they, themselves have wrought: Trump. The Fed, in league with many others, is now doing everything in its power to rig the 2018 mid-term elections, in order to live up to its Sole Mandate, which is the preservation of political power.

While we deeply admire what President Trump is trying to do to expose to the people and turn around the fake economy in which the nation is drowning, we believe the challenge of reversing, in the short amount of time available to him, decades’ worth of asset stripping, corruption and for-profit economic destruction is beyond extreme. And the constant political obstructionism he is up against, which is increasingly treasonous, might make the achievement of his worthy objective impossible.

With this as our backdrop, let us move on to the geopolitics of gold, which while it might seem abstract and removed, we believe is highly relevant to your personal financial situation.

Aside from being tedious, politicized and baseless drama, the ongoing demonization of Russia, particularly with respect to its so-called rigging of the 2016 U.S. Presidential election, makes no common sense. But it makes perfect Deep State sense. It is about war-mongering, global destabilization, internationalized looting and the continued plunder of the American people, the for-profit enterprises in which the Deep State specializes.

We believe that there is actually a more specific reason for the demonization of Russia than the above, usual suspects. This is a case where one should not just follow the money; one should follow the gold.

For the past fifteen plus years, physical gold supplies have been like Lazarus: they keep rising from the Dead. Just when it appears that a serious supply-demand imbalance is about to precipitate futures market delivery problems and therefore increased prices, supply miraculously appears out of nowhere to alleviate the shortage and stabilize or depress prices.

This surprise supply has primarily come from sovereign central banks: for example, 1,500 metric tonnes from one-time sound money nation Switzerland; 600 from France; 430 from the United Kingdom (most at the bear market’s absolute low price of around $255.00/ ounce; central bank “genius” for all to see); 300 from Netherlands; 225 from Portugal; 240 from Spain; 180 from Venezuela and counting; 90 from Brazil. And the list goes on.

Each sovereign sale has produced needed physical gold at times of supply – demand imbalance, many of which have been critical. This has enabled the paper gold price manipulation fraud to persist without any failures to deliver or the need to set a true, as opposed to fake gold price. A delivery failure, even a minor one, would expose and terminate the Deep State’s enormously profitable price rigging fraud, and has therefore been prevented at all cost.

The Deep State’s overthrow of legitimate, sovereign governments has been another means by which needed gold supply has been injected into the pipeline. After Libya was overthrown, 143 tonnes of the nation’s gold disappeared. Dozens of additional tonnes disappeared from Iraq subsequent to its invasion.

Ukraine provides another example. Immediately after Neocon, Deep State functionary and State Department plant Victoria “F**k the EU” Nuland launched the for-profit coup d’etat in Ukraine, 43 tonnes of the nation’s gold, worth $1.7 billion at $1,200 per ounce, were airlifted out of the country in the middle of the night and went missing.

(As a side note, it is worth mentioning that while the cargo plane’s exhaust was dissipating into the Ukrainian atmosphere, Vice President Biden’s storied son, Hunter, miraculously appeared on the Board of Directors of Burisma Holdings, the largest private natural gas producer in Ukraine. Biden was joined by close friend Devon Archer, a lead fundraiser for by-then Secretary of State John Kerry’s 2004 presidential bid. Archer is also the former college roommate and current business partner of Kerry’s stepson, Christopher Heinz (an heir to the H. J. Heinz fortune). These two ascendancies to Burisma’s Board were curious, given that Biden and Archer had no natural gas production or Ukrainian business experience whatsoever, did not speak one word of Ukrainian and had never previously stepped foot in the country. This gives us better insight into the true nature of the Deep State’s murderous, gold-seeking and highly profitable coups.)

While the perfectly-timed materializations of sovereign gold have plugged the Delivery Failure dike at various critical moments, there have been two persistent demand problems that have bedeviled the Deep State’s designs: Russia and China.

China’s official gold reserves surged from 395 tonnes in Q2, 2000 to 1,838 tonnes in Q3, 2016. This number, impressive in itself, dramatically understates China’s actual, official gold reserves, which many well-informed analysts put at 5,000 tonnes, minimum. China’s official reserves do not include the thousands of additional tonnes imported into the country for the private sector during the same period.

While the Deep State routinely pummels the paper price of gold both to mint fraudulent profits on the futures exchanges and scare financially naïve western citizens away from it, the Chinese government urges its citizens to buy gold, which they do by the millions of ounces. The Chinese government knows what is coming, and wants its citizens to be prepared. Apparently, capitalism and communism have traded places, which will result in an exorbitant cost to the people of the west.

Meantime, Russia’s gold supply increased from 343 tonnes in Q2 2000 to 1543 tonnes in Q3, 2016.

Remarkably, it increased by 508 tonnes from Q1, 2014 to Q3, 2016, alone. This occurred when Russian sanctions, which were intended to destroy Russia’s economy and currency, were in place. The sanctions were not only expected to halt Russia’s ongoing gold purchases, but also force them to sell some or all of their existing reserves in order to raise cash, which is exactly what Venezuela has been forced to do since early 2014.

Chess Master Putin went in the exact opposite direction, by dramatically increasing the nation’s purchases of gold. This was unexpected and has put the Deep State on the defensive. It had counted on fresh supply from Russian to keep the supply – demand balance in equilibrium, and to prevent the Delivery Failure dike from breaching.

One way the Deep State reacted to Russia’s unexpected, continued demand was to engineer the out-of-nowhere Indian rupee demonetization, which stripped the Indian people of the cash they have traditionally used to purchase gold. This plan was effective at reducing Indian gold demand in the beginning, but is now backfiring, just as the attempt to reduce Russian gold demand backfired.

If China and Russia continue to buy gold at current rates, the only way the Deep State’s paper gold price manipulation fraud can continue is if other sovereign gold reserves are put into play, or, if physical demand is somehow diminished. While the Deep State is pursuing both tactics, their options are shrinking.

Even though sovereign gold sale risks remain, the value of nations’ reserves at the current fake price of gold is absolutely meaningless when compared to their exploding debts.

For example, Italy’s 2,452 tonnes of gold are worth $95 billion at $1,200 per ounce; the government’s debt is $2.45 trillion. France’s 2,436 tonnes are worth about the same, $95 billion; it national debt is $2.44 trillion. The same situation exists in virtually every western nation. Therefore, even if these countries were to sell all of their gold, it would not buy them any meaningful or lasting fiscal or financial relief whatsoever. There has never been a more pointless time for nations to sell their gold, particularly at today’s fake price.

To further amplify this point, the United States is reported to own 8,133 tonnes of gold, supposedly the world’s largest stockpile. (We disagree; to us, the arithmetic is clear that China now owns more.) This is the equivalent of 261.5 million ounces troy ounces, or about 0.82 troy ounces per citizen. At $1,200 per ounce, the reserve is worth $314 billion. The nation’s actual, annual deficits are roughly $1 trillion per year, more than three times the value of the entire gold reserve. The nation’s existing debt and contingent, unfunded liabilities exceed $200 trillion. Therefore, the nation’s gold supply could only pay off 0.16%, or one sixth of one percent of the nation’s current obligations. If it has not already done so, the United States could sell every ounce of the people’s gold and it would not make one bit of difference to the nation’s fiscal situation.

The U.S. gold reserve has not been professionally, comprehensively audited since 1953. We will not go into the U.S. gold audit topic here, because it has already been well documented. You can find the details with a simple search, if you wish to learn more. But we would like to point out something that is not typically noted.

In order to create positive “optics,” the United States government consistently massages, manipulates and even totally misrepresents a wide variety of financial, economic and monetary statistics (such as GDP, unemployment, inflation, money supply, interest rates, retail sales and many others). These positive optics are viewed as being crucial to preserving confidence in the nation’s economy and fiat currency.

Accordingly, one would expect that if the United States gold reserve actually exists, physically and unencumbered, the government would go out of its way to prove and advertise it, in order to create the favorable optics it spends so much time and effort engineering about everything else.

Instead, they refuse to conduct a professional audit, invoking the truly ridiculous excuse that it would be too costly to do so. One specialist has estimated that a comprehensive, independent audit would cost $10 million, which is approximately 1 MINUTE of federal spending, literally. So the expense excuse makes no common sense, and arouses serious and legitimate suspicion about the true state of America’s gold reserve.

The foregoing factors help explain the intensifying demonization and scapegoating of Russia. The Deep State needs to prevent Russia from continuing to buy gold in quantity, and is therefore intensifying its efforts to damage the country’s reputation, economy and currency.

Based on these and several other factors, the Inferential Analytics model is signaling that there is a strong probability the Deep State’s gold price manipulation fraud is dying, and that the imbalance in physical gold supply is becoming systemic and reaching a point where it can no longer be bridged with sovereign, stolen or fake supplies. This increases the risk of futures market delivery failure. The occurrence of any significant endogenous event at this time, such as an unexpected military, social, economic or financial disruption, that provokes a further reduction in supply or even a modest increase in demand, would dramatically increase the probability of delivery failure and a resulting, necessary, sharp increase in the price of gold.

The fact that the paper gold price manipulation fraud is reaching the end of the line due to deteriorating supply – demand fundamentals is exactly why we are seeing a radical, concurrent Deep State escalation of the War on Cash. Cashlessness is the Deep State’s upcoming Looting Field, and is designed to replace Gold market price fixing as its next, organized, long-term method of plunder. The elimination of cash will result in the largest looting spree ever orchestrated by the Deep State.

Every time the Deep State hatches a new looting scheme, they dress it up in false righteousness, phony morality and motherhood. In the case of cash elimination, they say it is needed to fight terrorism, drug laundering, tax evasion and crime. This is a huge, concocted, pre-packaged lie; the same kind that Hitler and Goebbels used. Hitler said and proved that if you make the lie big, and repeat it again and again, the people will come to believe it. This is the exact kind of lie the Deep State is telling to push its corrupt, greed-diseased, epically evil cash elimination scam.

While the Deep State demonizes Russia to perpetuate its gold price fixing profit center for as long as possible, it is simultaneously building, as fast as it can maximum security prisons for the people’s money. For the bricks, they intend to use your cash; for the mortar, they are mixing a stinking amalgam of their lies, corruption and greed. We can be sure of one thing: if we allow them to imprison our money in their cashless prisons, they will grind it into oblivion by fees and fraud, and our financial slavery will become inescapable. Please, do not underestimate what is happening all around you, and use your current quasi-freedom wisely.

Stewart Dougherty
March 2, 2017

Stewart Dougherty is the creator of Inferential Analytics (IA), a forecasting method that applies to events proprietary, time-tested principles of human instinct, desire and action. In his view, forecasting methods not fundamentally based upon principles of human action are unlikely to be reliable over time. He is a graduate of Tufts University (BA) and Harvard Business School (MBA), is a 35+ year veteran of the business trenches and has developed IA over a period of 15+ years.

The Deep State’s Message: Prepare For Totalitarianism

I find the current political situation to be as bad as I thought it would be when I forecasted it about ten years ago. The worst is yet to come. The corruption in the system is becoming much more apparent. The extreme biases in the mainstream media in favor of their particular owner’s faction is fairly obvious…The moneyed class turned the law and the thought leaders framing to their own benefit, and would now do anything they can to keep their ill-gotten gains. – “Jesse,” from Jesse’s Cafe Americain

Were you aware that the Government is starting to implement eye-scanners as part of the airport security protocol?  If you doubt that, then read this:  U.S. Marshals Scanned My Retina.   The TSA circus is all for show. It’s a way for the Government to get us used to following its orders and a way for the manufacturers of the technology used to make billions from selling that technology to the Government.   It also is an excuse for the Government to create employment for those who lack the competency to find a job in the private sector.

Ben Franklin said, to paraphrase, those who are willing to give up some freedom in exchange for security will end up with neither.  That’s where we are today, America.  The Patriot Act was written well over a year before 9/11.   The blueprint for the Department of Homeland Security was crafted in the mid-1990’s, during Clinton’s presidency.

It’s all stunningly Orwellian.  Even the terms used to describe newly created Government functions are right out of “Animal Farm” and “1984.”  The totalitarian control, confiscation of wealth by those in a position to confiscate and the use of technology to invade and regulate our private lives was prophesied by Orwell, Ayn Rand (“Atlas Shrugged”) and Aldous Huxley (“Brave New World”).    The technology that we take for granted as making our lives better is being used to remove our rights and freedoms.

Ironically, it all starts with the control of  the monetary system.  Those who control a nation’s currency need not be concerned about who or what makes the laws (Mayer Rothschild).   A few unelected “officials” control the United States’ creation of currency, which is then used as a tool to confiscate wealth – at first slowly and soon it will happen all at once.

In today’s episode of the Shadow of Truth, we discuss the Orwellian fog that is enveloping the nation and connect the political control our lives to the control of interest rates and gold:

The U.S. Can Learn From India’s Move To Digital Currency?

In short, we can learn to not let it happen here.

In August, Obama’s Defense Secretary, Ashton Carter, appointed Jeff Bezos to the little-known and highly secretive Defense Innovation Advisory Board.  This for me confirmed that Bezos was an integral part of the Deep State, which I began to suspect when Amazon’s cloud computing division started receiving contracts from various Deep State divisions (like the CIA).    This “advisory” board is chaired by Googles Eric Schmidt.

This position dovetails nicely with Bezos’ ownership of the Washinton Post, which has been transformed into part of the Deep State’s program to proliferate propaganda – or “fake news.” Funded by the taxpayers, the work being done by this Board has intentionally been “kept under wraps,” as Business Insider describes.

After, all the Washington Post has been well respected  for decades as one of the primary “go-to” newspapers for domestic and international political news reporting.  Trusted as such, historically if a news item was reported by the WashPo, it had to be true, right?

Under Bezos’ control, and in the context that Bezos is part of the Deep State mechanism, the WashPo has become an Orwellian device in the “war on truth.”  In addition, Bezos can use the “power of the pen” as a powerful political weapon against politicians or Government bureaucrats who oppose the Establishment and the Deep State.

With that as a backdrop, the Washington Post published a curious report on the Indian Government’s of the removal of the most commonly used cash bills by the Indian populace titled, What The U.S. Can Learn From India’s Move Toward A Cashless Society.  The article goes on to describe all of these “benefits” but only casually mentions the huge economic disruption caused by the move.

Of course, these “benefits” all had to do with the implementation of technology which makes it easier for the Government to identify, track and ultimately control the individual. It should come as no surprise to us that, given the role Bezos plays as part of the Deep State, Bezos’ newspaper would be promoting the digital banking system.

A crucial fact not known by most is that the former Chairman of India’s Central Bank – the Reserve Bank of India – was appointed as the Vice Chairman of the BIS in 2015.  This fact calls into question the idea that digitizing India’s banking system was motivated by anything other than the western elitists’ goal of implementing totalitarianism.

While the WashPo did mention the disruption to India’s economy caused by the removal of the most common currency bills, the article did not mention the fact that the move temporarily undermined the population’s ability to buy gold during the country’s biggest seasonal gold buying period.  This latter effect was likely one of the primary motives behind the move and it underscores the control over India that can be exerted by the western elitists and their Central Banking cartel.

The bottom line is that India was used as “testing ground” for the western global elitists’ plan to digitize the global currency system. This will be used to exert Orwellian totalitarian control over the masses. It should come as no surprise that the wealthiest elitists like Bill Gates and Jeff Bezos have been advocating a cashless banking system, backed by the “intellectual” support of “academics” like Harvard’s Larry Summers and Kenneth Rogoff.

There’s no question that subtle and gradual effort will be used to implement a cashless banking system in the U.S.   All the warning signs are flashing.  I also suspect that, at some point, the “national security” card will be pulled in persuading the masses that cash is the “currency of terrorists.”

Ben Franklin once warned, to paraphrase him, that if we give up some of our freedom in exchange for security, we will eventually end up with neither.   That is where we are headed unless there’s an effort to prevent the elimination and use of cash in our economic system.