The War on Gold Intensifies: It Betrays The Elitists’ Panic And Coming Defeat – Part 1

IRD is honored to present another guest post from Stewart Dougherty

Dictatorship (noun):  Definition #3:   absolute power or authority (Websters);
Def. #2:   absolute, imperious or overbearing power or control (Random House);
Def. #3:   Absolute or despotic control or power (American Heritage);
Def. #3:  Absolute or supreme power or authority (Collins English Dictionary);
Def. #1:  A type of government where absolute sovereignty is allotted
to an individual or small clique (Wikipedia).

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained, you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” Sun Tzu, The Art of War

In recent weeks, the War on Gold, which is a subset of the broader War on Human Freedom, has sharply intensified, with massive, multi-billion dollar naked short price raids now being launched on a weekly and even daily basis by the criminal, state-sponsored price manipulators. This escalation proves the supreme importance to the Deep State financial elite of the maintenance of their gold price dictatorship, which is a vital component of their long term, systemic campaign of financial plunder.

The elitists have no problems whatsoever with stratospheric stock and bond prices; 5,000 year low interest rates; $450 million Da Vinci’s; $250 million private homes; $50,000,000 annual salaries for circus masters, whose role in keeping the masses distracted and dumb is vital; $1.9 million Aston Martins; $100,000 Air Jordan sneakers, or any of the other prices that have now gone into outer space.

But there is one thing they will not accept: an honest, free market price for gold. Because while all debauchery under the sun is permitted and encouraged in the Castle of Fraud and Corruption they have constructed and in which they revel, one thing is strictly prohibited: the utterance of truth. Being monetary truth when free to speak, gold is their deadliest enemy. Therefore, it is silenced, in the same way truth tellers are silenced in all dictatorships.

The vast majority of people, aside from a small, enlightened minority who refuse to poison their minds by ingesting mainstream media (MSM) fake news, propaganda and brainwashing, do not yet realize what they are up against in the wars that have been declared against them, and are therefore at serious risk. For those who wish to survive the wars, there has never been a greater need to know the enemy and know yourself.

As the gold price war becomes manic, so has the MSM’s anti-gold propaganda campaign, with their attempts to smear gold now a clinical obsession.

In a prime example of their over-the-top anti-gold propaganda, on 10 November 2017, the Financial Times, a long-time Deep State bullhorn and puppet, ran an article entitled, “Gold is the new cocaine for money launderers.” In this screed, the author beat the dead horse of the NTR Metals gold import scheme. This operation, whose total dollar yield was an infinitesimal fraction of the massive sums stolen by the financial Deep Statists in their forty year gold price manipulation crime, was already the subject of an over-dramatized Bloomberg Businessweek propaganda piece published on 9 March 2017, entitled “How to Become an International Gold Smuggler.” Apparently, the MSM is running so short of new material with which to try to demonize gold, that it is now forced to recycle old, stale non-stories to keep the smear machine going.

In the article, the MSM propagandist states such things as: 2017 has seen, according to his one time Goldman Sachs source, a “dramatic crash in [physical gold coin] demand,” that interest in gold coins is linked to “political conservatism, or anarcho-libertarianism” and “end of the world right wing sentiments,” that gold has been implicated in a “conspiracy to commit money laundering,” that gold is “financed by people in the narcotics trade,” that it comes from “illegal mines and drug dealers in Peru, Bolivia and Ecuador,” that “the federal authorities assume the NTR Metals [case] represented only a fraction of illegally sourced and financed gold,” that therefore the US attorney is broadly investigating the gold industry, that gold is “produced by exploited workers,” that “crude [gold] extraction techniques create serious and lasting environmental damage,” that gold plays an important part in “tax evasion,” that it is related to American gun sales, which the author abhors; that “drug dealers [use] gold imports as a way of laundering their proceeds,” and that “they came to realize that illegal gold [is] an intrinsically better business” than drug dealing; to name but a few of the aspersions cast against gold in the short article. As we can see, when it comes to their smear jobs, the MSM flings at the wall all the mud it can fit in its hands, hoping that some of it might stick.

As is always the case with the MSM’s consistently negative, biased and dishonest reporting on gold, no mention was made in the article of the Deep State financial elite’s criminal gold price manipulation fraud that has been perpetrated non-stop for nearly forty years and that has resulted in a massive, $1,000,000,000,000.00+ theft from its victims. This is because the MSM is the Deep State’s in-house public relations agency, whose job is to whitewash the elitists’ crimes, no matter how egregious they are.

But buried in the article was an important clue that the Deep Statists are concerned they are losing the War on Gold, which we will further explore later in the article. It turns out that the Deep Statists’ paranoia about and rage toward gold might be entirely justified, because more than ever in the past 37 years, gold is poised to tell the world what it knows, and this will absolutely annihilate them.

Many people are completely baffled as to why, with so many serious fiscal, financial, monetary, economic, social, and geopolitical problems in the world, the Deep Statists remain so mono-maniacally fixated on demagogically denigrating gold and controlling its price.

The answer is that the Deep Statists cannot, under any circumstances, allow the price of gold to replicate the surging price of Bitcoin and other cryptocurrencies. If the gold price genie were to get out of the bottle, becoming international news in the process no matter how much the MSM might try to suppress it, it would spur a gold buying stampede that would cause a flood of money to pour out of bank accounts and into physical precious metals. $325+ billion worldwide now resides in cryptocurrencies, a highly specialized and complex product class. In the right set of circumstances, many multiples of that amount could incrementally flow into gold, a simple product that has been innately understood for millennia by human beings all over the globe.

Already fragile, the banking system cannot withstand a large scale withdrawal of funds. Being finite and in short supply, incremental demand for physical gold would result in immediate and sustained price gains, creating a positive feedback loop in the market place. As people watched the price go up, more and more of them would want to jump on the band wagon and participate in the gains, which is exactly what has happened in the cryptocurrency market.

If interest in gold goes mainstream, then basic supply fundamentals indicate the price would have to rise by thousands of dollars per ounce to even approach what might be considered overbought and/or bubble territory. Which is exactly what has happened to Bitcoin, whose price has exploded to over $10,500 as of today, 29 November 2017.

In the United States, the latest Federal Reserve Board tally of Household and Non-profit Organization (much of which is private) wealth totals $96.2 trillion. If a miniature, 1% sliver of this amount, $962 billion, attempted to find its way into the physical gold market, it would represent incremental demand, at $1,300 per ounce, of 740 million ounces. Not even a small fraction of this incremental demand would be available in the physical gold market at this time, given that it already operates at a supply / demand equilibrium. The gold price would have to surge in order to flush out supplies from current gold owners, whose hands have proven to be, and are likely to remain strong. We believe it would take years for incremental demand of this magnitude to be filled, even at much higher prices. Please keep in mind that this example relates to the United States, alone; there are additional, vast stores of private wealth all over the world, all of which would almost certainly be activated in unison by a run to gold.

With the right spark, the same viral, Social Media-enhanced demand that has come to cryptocurrencies could come to gold. The Deep Statists know it, and the ghostly whites of their eyes now glow eerily and blinkingly across the dark battlefield of Liberty, in the senseless war they provoked and are going to lose.

While there are now hundreds of cryptocurrencies, physical gold is physical gold, and cannot be replicated or conjured out of nothing. There will be no endless stream of new ICOs for genuine, physical gold, because gold is what it is and always will be. This means that funds flowing into gold will be forced into the one and only physical gold market that already exhibits tight, inflexible supply. This further means that the upward price pressure on gold could become volcanic if a run starts.

A steadily increasing number of people will want to get in on the “new Bitcoin,” a bizarre paradox given that gold is as old as time, and will soon realize that gold possesses virtues Bitcoin does not, given that it is real, not digital and abstract; that owners can personally possess and store it in physical form; that it will survive any kind of electric grid or Internet disruption that might occur; that it cannot ever be hacked; that it is the epitome of private, quiet wealth; that it is actually quite beautiful to behold; and that it was not and cannot be made by man, only by God, who does not appear to have any interest in making any more of it.

To date, in order to prevent a surge in physical gold demand from happening, the Deep Statists have created various forms of transparently fake gold, such as electronic gold futures, options and non-auditable ETFs and EFPs. These fake gold products have siphoned funds away from real, physical gold, which cannot be created out of the nothing the way the imposter electronic gold products can be. Increasingly, people are learning that there are no substitutes for physical gold.

More, we find it interesting that while there have been certain highly publicized condemnations of cryptocurrencies, such as J. P. Morgan Chase CEO Jamie Dimon’s comment that Bitcoin is a “fraud,” the financial authorities in the west have done little to nothing to shut down the crypto market. They seem to be just fine with $10,500 Bitcoin, but will stop at nothing to prevent $1,300 gold. Today’s (29 November) market action is a case in point.

The reason is that monetary elitists fully approve of cryptocurrencies, because this the new form of fiat currency the western banks intend to issue. Mass adoption of cryptocurrencies is the necessary forerunner to the elimination of cash, a well-known and important agenda for the financial elite. By issuing their own cryptocurrencies, and/or co-opting Bitcoin and other private cryptos via regulation and edict, central bankers can continue their tradition of controlling the money supply. A population that has learned the value of owning and become adept at trading physical gold would prevent central banks from continuing to use fiat currencies as economic, political and societal control mechanisms. It should be no surprise that they loathe gold so much; in its honesty and integrity, it is the exact antithesis of everything they stand for, are, and do.

Some people argue, “Even if people run to gold, their funds will still remain within the banking system, so the bankers aren’t worried about this happening.” In our opinion, this is wrong.

Fiat currency used to buy precious metals will move from personal and business bank accounts, to gold dealer accounts, to gold wholesaler accounts; and then to a variety of sovereign mint, gold precious metals refiner, gold miner and other gold supplier accounts, a large percentage of which are international.

A bank that hosts a deposit account used to purchase physical gold has no assurance whatsoever that the buyer’s funds will transfer into another personal or business account managed by it. In all likelihood, the funds will disappear from the host bank and not return. Ultimately, the likelihood is also high that a portion of the funds, potentially significant, will disappear from the country’s banking system altogether, given the global nature of gold mining, refining, minting and fabrication. Therefore, bankers regard a run to gold as a severe, direct threat to them, which is why they do everything in their power to discredit it and crush its price. They are attempting to prevent a run on their banks.

Over the past several years, the Deep Statists have gone to extraordinary lengths to internationally legalize bank “bail-ins.” They did not do this casually, by accident, or for fun; they did it because they know that when the system fails, a time-bomb guaranteed to detonate given the system’s very design, they will be able to make an unprecedented fortune by expropriating customers’ deposits via the elaborate bail-in mechanism they have engineered. They will use the phony pretext of “rescuing” and “resetting” the financial system for the public good to justify this action. If, before they spring the bail-in trap, depositors have already withdrawn their funds to purchase physical precious metals held outside the banking system, those funds will no longer be available for bail-in looting. The bankers cannot steal bank balances that have disappeared.

The cryptocurrency phenomenon, now an international sensation, has stunned them into the awareness that people all over the world have a deep, abiding, instinctive desire to own honest money of limited supply that will serve as a reliable store of value, and that cannot be hyper-inflated into oblivion for the private gain of plunderers and profiteers, the chief problem with corrupt, endlessly counterfeited fiat currencies controlled by self-interested, opportunistic, predatory central bankers and their controllers, the Deep State financial elite.

Due to the length of this article, we have divided it into two parts. This ends Part 1. In Part 2, which is already written and will be released in a few days, we will share with you important clues indicating the Deep State’s concerns about losing the War on Gold, despite the unprecedented intensification of their attacks. We will also discuss how the United States Federal Reserve is outright warning that new threats to financial and economic stability are on the horizon.

Stewart Dougherty is the creator of Inferential Analytics, 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). He developed expertise in strategic analysis and planning during a 35+ year business career, has traveled to and conducted research in over 25 countries and has refined Inferential Analytics into a reliable predictive instrument over a period of 17+ years

34 thoughts on “The War on Gold Intensifies: It Betrays The Elitists’ Panic And Coming Defeat – Part 1

  1. A very good analysis. There is one more important reason why the gold price needs to be kept low and that is Russia. Russia and other Brics countries (including China) accumulate gold as a protection against economic sanctions by the west. The more gold these countries accumulate, the more important it is to contain the price of gold. A rising price of gold would mean that Russia and China are winning the economic war against the US. That can not be allowed to happen. We all should seriously consider the possibility that the price of gold will stay low for a very long time to come.

    1. Hello RH: Thanks for your nice words and excellent comment. I totally agree with you about Russia and China. Regarding the price, they can keep it down as long as they don’t have a delivery failure. The biggest frauds right now are the EFPs. The volumes are going vertical. This tells us that there is severe stress in the delivery system. They don’t have metal to deliver, so they’re punting with EFPs. Harvey Organ tracks the numbers on a daily basis, and his commentaries on the subject are valuable. Things might get better before we think. Best regards.

  2. I agree with everything in this article, but sadly the outcomes suggested are somewhere off in the murky future. It’s nice to feel the resolve that as PM holders we will someday find our day in the sun, but it’s a lot of waiting around and I’m getting bored. And now we get to watch the cryptos having their party without us (at least in my case). Missed the run up in equities and missed the bitcoin space…oh well. I’m just a little too far forward in the wave, always been that way.

    Sometimes it’s a curse to know too much.

    1. You only truly party when you cash out for REAL goods. Nobody celebrates on an iou, and that includes BC. Gold, land, etc, are useful in themselves and can be traded for other goods with direct or indirect value. Since cryptos are nothing more than digitized poker chips, like any real gamble…there can only be losers for every winner.

        1. I’m only riding on the shoulders of giants like yourself, Dave, Turd, etc, but thanks again! Cheers, and Merry Christmas everyone!

    2. Andy: Thanks for your message. I’m getting bored, too. Yes, sometimes it IS a curse to know too much, and to know way before the masses know. Being too early can be as bad as being too late. But please keep in mind, not ONE thing we are seeing in the markets today is natural or normal. It’s a massive manipulation specifically designed to tell a lie. So don’t be too hard to yourself. You’re not wrong. You’re normal, but you’re living in an insane asylum, which makes you think you’re wrong when you’re not. We’ve been suffering a long time, living in this nut house. Data are showing they’re starting to lose control. We’ll soon see. Happy holidays, Stewart

  3. Amen. Nothing has changed since Volker’s utterance of “Gold is my arch-enemy”. Whoever, IMHO they cannot suppress it indefinitely as the EAST is gobbling up all of the global mine supply and then some. The current price suppression IS the confiscation in the modern crypto-electronic-tulip-instant-gratification era. IMHO the price will be reset when they are ready and/or things fall apart for good; price cannot orderly trade up anymore with the paper-phyzz disconnect (leverage of 200+:1). As the “price detection mechanism” (CONeX/LBMA) breaks all paper gold/silver will burn and a global cash market will be set in place with a price that will ultimately be high enough to act as a de facto backing of fiat/debt, but not as an official gold standard. We’re surely living thru interesting, but also very dangerous times. More dangerous than most realize, but then, this is the whole point of the propaganda, gold bashing and all the lies that are being served to us by our governments and MSM on a daily basis.

    1. Hello CHX13: Extremely insightful comments. I particularly agree with your point that the times are “more dangerous than most realize.” That’s the biggest problem. The vast majority of people have no earthly idea how bad the situation is. So if it collapses, they will be caught completely off guard, having made no preparations whatsoever. Ask people who have gone through a long, totally unanticipated power outage. They will tell you it was a “religious” experience that woke them from complacency. 95%+ of Americans are in a state of total complacency at this time, and will be blindsided when this thing blows. Thanks for your comment and happy holidays. Stewart

    1. Thanks, Marcus. Yes, Honesty. If only we could bring it back. Part 2 coming soon. Thanks again and all the best to you. Stewart

  4. Good morning all. Long time lurker. First time poster.

    I’m appealing to the wisdom of the crowd here as I am struggling with some new thoughts. I’ll try and keep this brief.

    I am beginning to think the conflict between Bitcoin/Gold is nothing more than the thesis/anti-thesis of a Hegelian dialectic. The foundation for this is the belief the real issue we face is the creation of debt based money and by extension usury. Returning to the gold standard would fix a symptom, the ability to print fiat ad nauseam, but does not eliminate the foundational problem of money being borrowed into existence.

    The Great Depression was caused in part because of lack of liquidity and retrospective analysis has told us injecting liquidity would counteract the deflation experienced in the depression. Part of the reason we enjoy an ever expanding FED balance sheet today. The question is what caused this lack of liquidity? I think it was the raising of interest rates in conjunction with an already tight money supply because of the gold standard. Other examples of the gold standard in action include Lord Norman and BOE returning to the gold standard, the conflict between the English gold standard and the colonies producing their own scrip, and the conflict around bimetallism – WJB “Cross of Gold”. I bring these up only to say it seems the money powers have used the gold standard before as a way of regulation and only turned to the fiat printing press after maintaining the gold standard became untenable.

    Additionally, I am wondering how the volume of gold remains impervious to manipulation? I understand that we move from no longer creating something from nothing and effort is required to mine it but the diamond market strikes me as being no different. Who does/would own a majority stake in the mining companies and how could we know they aren’t limiting supply? Whoever controls the asset money is valued against will still control the money supply. If it’s a scarce commodity with high barriers to entry, like gold, this will only enable deflation. Deflation as we know benefits the lender as opposed to the borrower. This does not solve the problem of a debt free means of exchange.

    Are we investing in gold because we think it’s going to reign in the bankers control? Or is it their fall back plan they have used throughout history and we are trying to take advantage when they utilize it as part of a cashless cryto-currency system? Am I too far down the rabbit hole?

    Thanks all for your time reading this and I look forward to your thoughts.

    1. “Are we investing in gold because we think it’s going to reign in the bankers control?”
      Not in my opinion.
      Buy physical gold or silver becasue it won’t drop in price/value like a stock or real estate has and will. Buy it as a form of savings held outside the banking system. Seen as a form of savings [currently priced not that far above the cost of mining and refining], you don’t have a strong expectation of it behaving as one thinks an investment should.
      Since many think most investments are in a bubble, investing in many things right now may be investing near the top, before a decline.

    2. Here are some of my thoughts. The times we live in are the exception, not the rule, for monetary policy and banking. I would go further and say a better adjective to describe these times is “unique” or unprecedented. All massive credit expansions begin, extend, and end the same way, eventually. Read Charles Kindleburger’s classic Manias, Panics, and Crashes for an in-depth history of this phenomenon.

      Throughout history, even with gold and silver as universal money, these credit expansions and manias still occurred. What is different now, in my opinion, is the breadth and scale of this everything, everywhere mania, as all asset classes, with the exception of commodities, have been massively inflated due to the enormous creation of unbacked credit and counterfeit money, and which I believe is without precedent.

      Commodity prices are under lockdown by the banking cartel for the purpose of suppressing input factor price inflation, and unless they relent on their price suppression schemes , the commodities production sectors will soon be decimated, including the precious metals industry.

      The inevitable credit collapse will be one for the ages, making credit extremely scarce and fiat useless because of; sovereign default, either overtly, or covertly through hyperinflation, bank failure, and counterparty risk. In such circumstances gold and silver are insurance policies. They are tangible, unencumbered, assets with universal appeal for everyday transaction and settlement, and have been so throughout history. In short, they will be your lifeline.

      However, having said that, if you believe the status quo will continue on without failure, then don’t bother owning them.

    3. Hello Ken: Thanks for your thoughtful comments. Personally, I’m not quite so far down the “rabbit hole,” as you put it. I couldn’t care less about a gold standard or any other phony central banker or government construct. I simply think the precious metals market should be free, and that price manipulation should be prosecuted and ended. Simple as that. Just let the price be honest. Get government, Wall Street and all the other criminal profiteers out of it. Then people can decide if they want to be in it, or not. At least they’ll know that if they do want to be in it, the price is fair. I think it is absolutely idiotic that the taxpayers are forced to pay the employees of the IMF, World Bank, central banks, etc. hundreds of millions of dollars a year to travel around the world in First Class, and stay at 7 Star Resorts to sit in meeting rooms and ponder the financial system from their imperial highness. If these useless parasites were all fired tomorrow morning, do you know what it would mean to us citizens? Absolutely nothing. These people are an expensive curse to humanity. Don’t think they are going to come up with some fantastic solution for you, such as some idiotic gold standard or anything else. Declare your freedom from these jerks, my friend, and stop thinking they can help you in any way. They cannot. They can only destroy your life. That is the only thing these arrogant hypocrites know how to do. Part 2 will explain this in more detail. Happy holidays, Stewart

      1. “If these useless parasites were all fired tomorrow morning
        do you know what it would mean to us citizens?”

        Yeah I know what it would mean, freedom and being unencumbered
        from debt and indentured servitude. So let’s fire them or hang them
        and praise the lord. Now pass me the mustard.

    4. Ken, the seeds of the Great Depression were sown when the Fed was created in 1913 with the authority to create unbacked bills. Heck, well before that, the courts deemed it legal and necessary for fractional-reserve banking to exist…so gold standard? That’s a myth. It hasn’t existed for well over a century from any government that we know. The only REAL gold standards are in INDUSTRY where miners mine, smelters smelt, and jewelers, electronics makers, etc, craft with the actual stuff. They take their contracts VERY seriously, since it affects their ability to satisfy consumer wants. If it was legal for them to bank in gold, then yes…the gold standard in banking would be truly genuine , and their product would quickly overtake fiat. Unfortunately, we don’t live in that world…yet…

      To further answer your question, the GD was the market realizing that prior commitments were unsustainable, and the only way to explain a massive, systematic collapse in sustainability is if the money itself was corrupted. Once you start meddling in interest rates of money through fraud, it’s like tricking a sea-captain to run his ship aground.

  5. Hi Ken,

    I do not think there is a conflict between gold (and silver for that part) and bitcoin. Further more, money is debt by definition. The current, highly specialised, economy requires it. Besides that, human nature has shown over milennia that nothing will stop people from lending and borrowing. Ofcourse also using that as a control mechanism. A very good book about that is ”debt, the first 5000 years” by David Graeber.

    Gold is what caused the lack of liquidity in the Great Depression. After all, the price of gold was fixed but the bankers could create infinite loans, something they did during the roaring twenties. Ofcourse more and more loans that are called subprime or worse. Once they started to default, the collateral (reead gold) the banks had were insufficient. This triggered a bankrun (on gold) and since the banks also had a fractional reserve system back then, banks failed by the thousands. Ofcourse this made them reluctant (to say the least) to issue new loans. Thus a negative feedback loop came into existence bringing down the system partially.

    The cross of gold speech became famous because the bi metallic turned out to be nothing more then price fixing back then. It is very clear that during that standard, silver was the ”easy money” just as fiat is today. Back then it was fully understood by bankers that when a reserve currency failed, a new one had to be introduced that would also go through the same cycle. From strong with gold to ultimately basically a great depression in name only gold standard and resetted it again. I suggest you study the reserve currencies that (from the beginning of this system) Portugal, Spain, France, the Netherlands, Great Brittain. They all broke down within around 100 years because of the dynamic called the Triffin dilemma. Regular currencies fail because of their exponential dynamics only.

    There are many ”giants” in the world that want(ed) to keep the Dollar in place as a reserve currency untill a new one was instituted. It being gold. But a global redesign of the global monetary order of the last well over 500 years was needed to achieve that. This movement was started by late French president de Gaulle in the mid 1960 era. It was also understood very well that if the Dollar would die before a total redesigned system was in place, we would go back to gold we would fall back big time economically. Something that would make the great depression seem a walk in the park. Something no one wanted and mr Kissinger realised that and thus introduced the petro dollar after the failure of the bretton woods gold based system. After all, oil was the real backing of the economy already and not gold anymore!

    What was realised during that search for a good replacement system of the current one is that the Western concept of money is wrong. If you save in debt of other peoples massively, It sets up people, nations and even continents against eachother. In the East they see paper money is for spending, gold is for saving! That is basically the new money concept, yes also banking concept that has already been roled out all over the EUrasion continent plus the BRICKS. Ofcourse America and its allies (not the EUro zone btw) are fighting tooth and nail since that kills their exorbitant privilege the French called out in the mid 1960 era.

    For that to be happening, the paper gold markets have to be destroyed. Being Comex and LBMA. It seems to me the Comex is being hit now. Well over 500k contract and not even 16 tons dealer gold. Its for all to see the paper contract cannot be honored. Never forget the leverage physical gold holding has!

    I hope that clears a few things up for you.

    Regards,
    Hugo

    1. Hello Hugo: There’s a lot of history and economic theory here, but may I ask you a question? Does any of it really help you live your daily life? I view the current field of economics as a scam profession. It didn’t used to be this way; it used to be a noble profession that attracted genuine scholars and deep thinkers who came up with sensible, important solutions and ideas. Now it is nothing but a whore’s paradise. A way for otherwise completely non-employable people to make hundreds of thousands of dollars a year, most of it paid by hard-working taxpayers, to fiddle around within universities, think tanks, strategy centers and other for the most part taxpayer funded organizations, sitting in rooms eating doughnuts and pondering the universe. And then talking down and condescending to us with their precious insights and prescriptions. The United States has $200 trillion in debt, all in. It is a colossal fiscal disaster, and the debt is a complete lie, because next to none of it can be repaid. This is what the so-called economics profession geniuses have delivered us into: a financial slavery unprecedented in history. Can it be any more clear that the people who have led us into this financial slaughter are nothing but frauds and idiots? New Year’s is coming, a time of cleansing and renewal. I don’t plan to spend one second of my precious time in 2018 thinking about the arrogant prescriptions of Keynes, Krugman, the Economist Magazine … or, the history of fiat currencies, the wonders of a gold standard or any of the tripe churned out by idiot profiteers and parasites who talk down to us with their supercilious, arrogant error. A person needs two things to prosper: common sense, and freedom. If they have the freedom to act upon their common sense, they should be good to go. To survive what’s coming, one needs to pay attention to what is happening around them, correctly interpret the implications of what is happening around them, and act accordingly. All the economic theory in the world, combined, will be completely useless when it comes to putting food on your table in the Brave New World that’s coming. That’s how I see it, at least. Happy holidays, Stewart

      1. Hi Steward,
        You may ask me everything you want. Of course I reserve the right not to answer (smile). Knowing this does not help me in my daily life one bit in a practical way. I am a bit of an autist though. My interest in this started when I was 13ish (30 years ago).

        The granddad of a friend of mine passed away and he inherited silver Guilders but the soda vending machine did not accept them, only base metal Guilders. I truly did not get that. Silver Guilders should be worth more then base metal Guilders in my mind but clearly they were rejected! The autist in me could not let go and into the rabbit hole I went. I even studied macro economics at the university but soon found out that was bs so I quit and started to do something productive.

        Still, I could not let it go so it became my hobby so to say. Some play football, I study this kind of stuff. I find it very rewarding since it helps to make, at least a bit, of sense on what is happening on the planet and why.

        This fine site tries to help to educate people and I truly believe it is important. So when a good question or fine article appears and I think I can add some insight, I offer it.

        I fully agree that most economic theory is useless. Yes, once the big reset happens, most people find it hard to put food on the table. The ones that hold gold will find it a lot easier then the ones that don’t have it.

        I got your message and will not reply to you anymore since you are not interested. Still, I wish you all the best have a great holliday season and 2018!

        Regards,
        Hugo

        1. Thanks all for the insightful comments and reading suggestions! Much to consider here. Thanks again and very much appreciate the dialogue!

        2. Hello Hugo: I loved your message, but was sorry about your conclusion. I always enjoy hearing from you; you think deeply about things. It’s a shame more people aren’t like you.

          I was a bit cranky yesterday after about the 10,000th price smashing in the past several years. None of this is going to change until people wake up, get in their car and drive to their local precious metals dealer, or get online, and actually BUY a gold coin or two or three, or whatever they can afford. The ONLY thing that is going to bring down the dictatorship is RELENTLESS PHYSICAL DEMAND. It’s really a shame that this extraordinarily simple solution is completely non-comprehended by the people. My total focus right now is to help people understand that they could have financial freedom and prosperity of a kind they cannot currently imagine if they would simply exchange some of their savings … 10% would be nice, but 1% would work, if lots of people got on board … for physical metals. The solution is so simple and obvious that it PAINS me people don’t see it, and are financially drowning in the process. (The U.S. financial statistics have actually become heartbreaking.) When gold gets to $15,000 per ounce, I will buy you dinner, and we can talk theory and history all night long. I would be totally fascinated to hear what you know. But let’s get gold to $15,000 per ounce first, so I can afford our dinner! Thank you for your very nice response, Stewart

          1. Thank you for your kind words and I am glad to hear I misinterpreted you!

            I agree with you that the only thing that will bring down this horrible system is relentless physical demand. Physical gold is for saving, fiat for spending. Once that happens, there will be a big, powerfull decentralised counterforce against the centralised power(s).

            I feel you pain on people (en masse) not seeing this solution. I am happy that I have been able to help around a dozen or so from my friends and family to get at least some physical gold. A few others that are very dear to me and didnt want to get it themselfs, I just gifted them some.

            I came to the conclusion that for gold becoming the ultimate form of wealth again, the paper markets have to be broken (read Comex and LBMA). I am still amazed that that did not happen during the last financial crisis when Comex / LBMA gold was priced up to 50% lower then what one had to pay at the bullion dealers. The price attacks you hate will continue untill the paper contracts are fully discredited. It seems to me we are getting close(r) to that point.

            Truely, before we go to $15k the paper price will go to zero! Or close to that. When you see $800 paper gold and $2000 gold at the coin dealers, it is game on. A strange but logical dynamic, the bigger the physical demand is, the lower the paper price goes. After all, if a big physical dealer wants to take delivery next month, they will not use Comex but SGE (or the internation version of it) or LBMA. That player will hedge that buy order by going short Comex so it has no price risk! In my humble opinion that explains the smashes on or just before the opening in America. They know that on the SGE and to a lesser
            extend the LBMA, they have a risk having to cough up the physical they just bought but on Comex, there is no such risk!

            What is an ounce worth if you can sell it 100 times? $1280 or actually $128,000 (smile). If you are ever in Holland, let me know and I will be very happy to have a (long) talk with you and even pay for a fine dinner.

            Keep up the good work! I am sure your work helps more people see the light then my very limited actions.

            Regards,
            Hugo

          2. Hello Hugo:

            Your December 3 2017 at 4:08 PM message is incredibly deep and important. I really appreciate your sending it. It is worth three reads, and speaks for itself. Please keep contributing. You have a unique perspective on how things are unfolding. Stewart

  6. How does buying physical gold take money out of the banks? Scenario: I have money in my bank. I go online and buy an ounce of gold from a dealer. I my bank credits to his bank. He sends gold to me. The bank credits remain in the system.

    1. Monty: Please read the article again. It gives a very detailed description of how the money flows. In a significant percentage of cases, the money leaves a nation. Just ask yourself: why are the bankers absolutely paranoid about the price of gold? Why do they consider it to be such a threat to them? It’s because a run to gold is the equivalent of a bank run. Simple as that.

  7. The overriding issue is not money (including gold and bitcoin). The issue is economic growth. To start economic growth, the system needs credit, that is debt. Interest is charged on the loan because the lender wants to participate in the economic growth the loan is enabling. If the monetary system would be based on gold, economic growth would be limited to 1% per year because that is the rate at which gold is added to the existing gold reserves by mining. Most people in this world would disapprove of economic growth of just 1% per year. We all need more growth. Hence, gold is not an alternative to the paper fiat money system. And that is the reason why the gold standard of the past was displaced by the fiat money standard. Nobody objected against that because everybody was and is in favor of growth.

    In reality, limiting economic growth to less than 1% per year is the solution to many of our most pressing problems. If sustainability is truly desirable, then we should opt for gold. Economic growth, because it has no natural limits, is suicidal on a finite planet. The rate at which mineral resources are extracted and the natural environment is destroyed is a greater threat to our future than all the debt of this world.

    The greatest damage done to our collective thinking by fiat money is that it created the expectation of entitlement to wealth which simply does not exist. If all the gold of this world would be evenly distributed among all people of this world, everybody would own less than 3/4 of an ounce of gold.

    1. Robert, you are wrong in so many ways it’s hard to know where to start.

      Firstly, you’ve got that backwards; in order to TRULY lend anything, you must have savings in the first place. Hence, it’s silly to believe economies grow on credit when, in the end, credit doesn’t fill your stomach. Why many people believe the laws of physics don’t apply in scale is something that bothers me to no end.

      Secondly, economic growth BASED ON WHAT? And holy moly…I’m not going to touch your other fallacious reasoning on why people use fiat today. I can tell you this; it’s NOT because they want to grow the economy!

      Okay, so gold limits growth? True, an honest money would limit growth, but that’s like saying a geiger-counter limits the amount of radiation you feel. It does not limit so much as it acts like a guide…assuming nobody threatens you for using it.

      And growth is suicidal to the planet, uh huh. And certainly, YOU are not threatening it, right? So…when are you going to demonsteably prove that the good in this collective of yours…actually exists? Because so far, collective thinking has brought two world wars and is threatening a third!

  8. Great article. I suspect Something big is happening behind the curtain. Russia’s finance minister Anton Siluanov reportedly warns Washington to stay away from Russian gold reserves. Diplomats don’t make idle comments on such topics. Therefore, one has to ask why he would feel the need to give Washington a public rebuke. Russia must suspect the U.S. needs to Source gold and might just be desperate enough to try for Russian gold. Begs the question of what’s really going on. The only thing I know is that this story is telling us something is amiss and that we will be the last to know what’s really happening.
    http://www.zerohedge.com/news/2017-11-28/russia-warns-washington-confiscating-gold-reserves-would-be-declaration-financial-wa

    1. Hello Petedivine: Thanks for your very important comment. It was extraordinary that Russia felt the need to say what it said. There’s definitely something going on here. Whenever there’s absolutely manic market action, such as what we now see in stocks and metals (today, Friday, 12/1 being a particularly notable example … look at the intraday), it indicates that things are becoming unhinged. The people who are rigging the markets, and it’s no longer just metals, the fraud has metastasized (please see Part 2 of the article, now posted) are making so much money doing it that they have an overwhelming incentive to keep the manipulation machine going. So when we see them starting to lose control, that is very significant. To keep this fraud going, they’ll do ANYthing, and that includes stealing Russia’s gold and selling it, to raise liquidity. These people couldn’t care less about unleashing nuclear World War 3, if they think they can make a nickel from it. Also, thank you very much for the comment you left about my previous article, “Electronic Gold … ” It was very insightful, as usual. I got buried in a new research project, and ran out of time to reply. My apology. Best regards, Stewart

  9. Thank you. And as always, good read Stewart. But..

    No doubt, gold is the enemy of (G7?) central banking. No doubt the (G7?) fiat empire is starting to burn around the edges. Yes, the gold attacks and suppression look more and more desperate. They don’t let paper gold cycle anymore, which for a long time had been an effective more natural means of controlling price.

    Why not now?

    Certainly the banks could make far MORE profit playing the old game and giving gold more leash before reigning the price back in. Would that in itself end the fiat empire – getting hopes up then crushing them?

    Is it really that they are simply now afraid of losing control? That they could not stop a price rally? ..mmm

    Could there be more going on?

    WHY has the Shanghai (physical) gold price remained relatively tight with the ridiculous Comex paper price? Yes there is a bit of a premium in Shanghai, but it behaves itself. Why does Shanghai follow the Comex down on hit days? Why – given the apparent strong global demand for physical and the stories we here of long wait times and premiums paid to aquire physical in size?

    ..”spur a gold buying stampede”
    ..”incremental demand for physical gold would result in immediate and sustained price gains”

    I agree in principle, but I would suggest we might already be experiencing a stampede for physical on a global basis. But without the advertised price gains for some reason. WHY do you assume that public sentiment abroad mirrors the sentiment in the U.S.? I’m not sure the U.S. public is all that relevant anymore. I’m not sure “incremental demand” makes any difference either. Something else is at play.

    WHY is open interest so high on the Comex while price is in the gutter?
    It’s not the easy answer to high OI that is interesting, but rather the implications of WHO is on the buy side in a clearly rigged ‘market’ – with lousy sentiment?

    And WHY are they buying?

    Obviously sellers now have little or no gold to sell and have price suppression in mind.

    Don’t the buyers (longer-term accumulators) also want low price? I mean if you are a serious accumulator then you want the best price right? You might even do something to facilitate that..

    WHO has the wherewithal and power to stand and enforce actual physical delivery of gold purchased at bargain price from a corrupt “market?”

    WHY are they willing to wait for delayed delivery?

    HOW LONG will the buyer(s) put up with delivery delays?

    1. Hello m: An absolutely outstanding set of questions. A full answer to them would require a book. But let me try a condensed version. First, I think you are underestimating the importance and power of the Tipping Point. You mentioned that perhaps U.S. demand is now irrelevant. I don’t think so, and think this is exactly why U.S. sentiment has been directly targeted for annihilation. The U.S. is the largest consumer market in the world, and U.S. private wealth is now at $96.2 trillion. A slight movement of that wealth into gold would trigger the Tipping Point. The Tipping Point is when it becomes obvious to EVERYONE that the available physical gold is gone. Then, the paper fraud completely collapses.

      With respect to Shanghai, China is CLEANING UP from the U.S./Western price manipulation fraud. The LAST thing China wants to do is end it, while they can still source western gold at these absurdly low prices. Russia and Turkey, too. They must laugh themselves sick that the corrupt Wall Street plunderers and morons are handing them this gift of sub-$1,300 gold year after year after year. They are buying everything they can get their hands on.

      Finally, I’m not sure if you’re tracking this, but if you’re not, it’s extremely important … the EFPs. Volume in them is surging, and for the first time ever, they are now going out many months. This proves that the Comex gold is gone. They are paying (bribing) Comex longs to accept EFPs in London. The London market is completely unregulated, so once the contracts go there, they are subject to negotiation with respect to delivery. The longs are going to find the negotiations to be a joke, but it will be too late for them by then. They will get a fraction or none of their physical gold … just a cash settlement. The Comex is acutely aware that a documented failure to deliver here in the U.S. would be a disaster, and this is why the EFPs have exploded in volume.

      The reason the longs are willing to wait for delivery is that they have no other choice. First, they are given a special payment / bonus to move to EFPs. Then, they think they will get their gold, so they say, “Well, that’s good, we got a bonus and we’ll get the gold.” The only problem is, they won’t get the gold. Yes, they WILL get the opportunity to file suit in London, at a cost of hundreds of thousands of pounds, and then will enjoy the opportunity to wait 5 – 10 years for the suit to be adjudicated, and then they will lose their suit. Gold will be $20,000 per ounce by then, or a lot more, and they will not have any of it. And they will rue the day they accepted the EFPs.

      More important, they are willing to wait for delayed delivery because what choice do they have? The Comex cannot deliver. So the Comex seduces them into believing that they can get their gold via the EFP, which comes with a bonus. Having no alternative, the long accepts this. Not knowing that they are not going to get their gold, because just as it is not in NY or Chicago, it is not in London either.

      Follow the EFPs. They are the pulsating electronic billboard telling us what is really happening. Harvey Organ tracks the numbers every day, and is well worth following.

      Hope this helps and best regards, Stewart

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