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.
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.
This was an excellent analysis but I wish Mr. D. had gone further into the likelihood of Russia and China resetting the value of gold, unilaterally. I think this is inevitable and need not be driven by any outside event. All that I think is inhibiting the resetting of the precious metals’ prices are the desires of the two nations’ to vacuum up as much Western gold/silver as they can before revaluing them.
It seems that Mr. Dougherty feels that the imposition of a cashless society is inevitable. I’d like to hear more about his analysis of that assessment.
Hello Mr. Dorsey and thank you for your message. Regarding the price reset, I agree with you 100%: Russia and China are not done buying, so why reset the price now if you are they? Regarding the inevitability of cashlessness, permit me address that in more detail in a future article. In my opinion, if the people do not rise up RIGHT NOW and tell their representatives that they will not tolerate this scam, it will happen. Best regards, Stewart
I Can’t help thinking that we don’t see the forest for the trees. There are many people far more intelligent than the ones, who by happenstance have fallen into a prefabricated system to control the world, through no ability of their own.
Couldn’t we use their game to our advantage and destroy their evil but basically simple strategy? Remove the variables, the speculation, cut to the chase, until only the facts remain? Identify the key components that make the machine run and short circuit them?
I can’t believe there is nothing we can do except watch as they destroy us.
Can’t we just say we’ve had enough and take over the control of our country because the Constitution says we have to? We can roll into DC and make a mad dash for the office we want to hold and kick the occupant out and claim it for ourselves.
Your a smart bunch of guys, don’t you think we can come up with something?
Hello Julie: You’ve put your finger right on the issue, and one, powerful solution is so simple it’s almost laughable. (We always need to remember that the obvious is the hardest thing to see.) If the people would simply start to buy physical gold and silver, en masse, it would have an enormous impact on the Bank State and the Deep State. People completely underestimate the power that is in their hands. As it is right now, every day, the people feed the Beast that is completely intent on destroying them. Why do they do this, when they don’t have to??? I’ll have more on this in future articles; I just wanted to acknowledge for now your excellent message. The simple fact is this: the people have all the power they need to win, but have no idea they do, because they have deliberately been educated in total ignorance of their own strength. Regards, Stewart
China and Russia are just sovereign distractions.
The global elite are pulling the strings.
Hi Stewart, I always enjoy reading your work. My question is
when the Deep State finally realizes that clock(access to bullion)
is running out, do you think that’s when the war with Russia and or
China begins ? These neo-cons seem psychopathic and IMHO will
most likely decide to just kick the chess board over. Also I attached
a link to the debt clock. Notice the lower right hand corner. What’s
up with that ? Is that just another sick taunt ?
Hello Jeff: It’s always good to hear from you. Regarding your first question, a war with China and Russia cannot begin. It can only end. Because it will annihilate humanity. The price of gold will never mean anything to human beings ever again, because there will be no human beings. I am not being facetious. But yes, you are correct, the Neocons are psychopathic, and because they are completely insane, they will destroy the world because they think they will be safe in their bunkers, and that they when they come out of their bunkers, they will own the world that has been destroyed. Regarding the right lower corner of the Debt Clock (I think you’re referring to the number of uninsured persons), no one is uninsured in this country. People just go to the Emergency Room, and then refuse to pay. The taxpayers pick up the tab. It’s been this way for years. Best regards, Stewart
JEFF, if you click on that you will see that this is not the “price”, but a ratio; it is the yearly increase in M2 money $upply decided by the yearly mined gold or silver. If you go back to 2012 you will find that the M2 over 5 years increased by roughly 4 Trillion; divide that by 5 and by roughly 1 billion Ag toz. and you get close to the 850$ ratio. It just goes to show how tremendously undervalued fizzical silver and gold are; when they are remonetized, I think this ratio will still be on the conservative side, but they are fighting with tooth and nail (and throw the kitchen sink at us too) to prevent/delay the inevitable end of fiat-“value”. Too much debt (and fiat on the other side of it) vs. fizz.
Hello CHX13: Thank you very much for clarifying this. I was looking at the number of uninsured Americans, which was on the bottom right of the screen I was looking at. Your commentary is superb. Thanks again, Stewart
There has been published a vey important book which develops the original thinking of Carl Menger, founder of the Austrian School of Economics. Menger’s thinking was based on the concepts of Marginality and Arbitrage as exercised by human actors. Current Mainstream Austrian Economics as developed by L. von Mises failed to follow Menger in this respect. The book is available by writing email@example.com. I think it is on Kindle, but I don’t use Kindle so I cannot give information on that.
The book: “Critique of Mainstream Austrian Economics in the Spirit of Carl Menger” by Prof. Antal E. Fekete.
This may be the book to which you refer – looks like a great read: http://www.professorfekete.com/articles/AEFCritiqueOfMainstreamAustrianEconomics2013.pdf
Dear Dr. Price: I am honored that you read and responded to my article. In my mind, you are a titan, so thank you very much. I will explore with great interest the lead you have provided. In my own work, Human Action is everything. Economic and monetary theories pale into total insignificance if Human Action is ignored. Thank you again and all the best to you, Stewart
Great article – thanks for posting it! Regarding Russia and China buying gold, it is perhaps of interest to emphasize that both nations are among the largest gold producers in the world. The Russian government accumulates gold by buying it from Russian mines and paying paper Rubles for it. In that sense, the Russian actions do not undermine the wester gold market. China does the same except that the Chinese appetite for gold is even larger than the Russian one, so they buy gold in the west as well.
The antagonism against Russia by the deep state is not irrational. Russia is the largest country in the world by landmass with a huge reserves of mineral resources and a relative small population of only 120 million (less than 40% of the US population). That makes it a very attractive target for global strategists who are constantly on the lookout for new opportunities for looting the world. Clearly, the goal is to get hold of these riches without paying for it. The very fact that the Russian government stubbornly refuses to give in to US threats angers the elites in the west a lot. Contrary to Yeltsin, Putin has outsmarted almost every US move in the past decade. That is the reason why the west hates him so much.
Regarding the price manipulation of paper gold, one has simply to admit this is absolutely essential und needed for an economy which does not produce much and wants to consume more than it produces. To keep the purchasing power of the Dollar, gold and therefore all other resources must be cheap in terms the US Dollar. That is necessary in order to keep the confidence game going on.
Finally, the question needs to be addressed why does the physical market follow the paper market ? I think the answer to that question is: the market is still very well supplied. There is enough physical gold to satisfy world demand. Once the demands exceeds supply, then and only then will the physical market separate from the paper market.
Dear Mr. Happek: Thank you for your incredibly intelligent and incisive comments. They are well worth reading four times or more. You have made a serious contribution to the cause. Together, with our community’s collective brainpower, we can win. Thanks again and best regards, Stewart
Thanks for the article. Just turned on the gold vacum.
Petedivine: Loved your comment! Mine’s hoovering, too. Stewart
Can you comment on the “supposed” transfer of all the Bundesbank owned gold from USA to Germany? The official story line is that it was completed ahead of planned schedule. Basically, number of sub-questions:
Do you believe US (Federal Reserve) did actually transfer all the tons they had originally promised they would?
I seriously doubt the exact same bars (with original serial numbers on them & purity) were transfered. Are you aware of any transparent audit proving that what Bundesbank claims happened, actually did happen?
Assuming Bundesbank is in fact telling truth : How much impact (if any) would the Bundebank transfer have on the situation tightness in worldwide physical supply?
Hello Theravaida: Thanks for your message. It’s always good to hear from you. To me, the entire Bundesbank gold repatriation drama has been pure theater and misdirection. You ask, “Are you aware of any transparent audit …” To me, here is Principle #1 regarding Central Bank transparency relating to gold: There has never been ANY Central Bank transparency relating to gold in the past, and there certainly is none today. We need to understand: these people operate a deliberately deceitful, staggeringly profitable scam. Wasn’t it kind of basic, before these people concocted their fraud, that you can’t print money or wealth out of nothing? Just because they say they can, while making trillions of dollars for themselves in the process, does that overturn all of basic laws of common sense? No, just because they lie through their teeth to justify their fraudulent, enormously profitable (for themselves) system, it doesn’t. And that’s the shoe that’s going to drop. Personally, I don’t pay any attention whatsoever to the Bundesbank gold repatriation drama. Merkel is an international disgrace, and trusting anything coming out of her government is likely to be a big error. In my opinion, the best things to do are these: 1) Honor common sense as if it were your Best Friend; 2) Trust your own instincts, they will not let you down; 3) Keep Central Bank pronouncements, which are nothing but self-serving (to them) lies, out of your precious brain; 4) Use your current time wisely, to do what #1 and 2 are telling you to do. All the best, Stewart
I am a retired engineer and spent most of my career focused on my narrow field of interest, it was only after 9/11 and the 2008 financial crisis that I began to wake up and pay attention to the larger issues that you so brilliantly clarify in your articles.
It appears to me that the America I thought I knew as a young man is finished, stolen by the Deep State and the Master Class. This is the final calm before the storm breaks and after many years of destruction and death a new America will emerge and nobody can say what that will look like.
Dear Mr. Willey: Thank you for your kind compliment about the article. What you did (remaining “focused on your narrow field of interest”) is exactly what most people have always done, and exactly what they wanted us to do, so we would not see the epic frauds they have perpetrated in the safety of the people’s career focus, distraction and innocence. Before the Internet, it would have required hours and hours of travel (to the places where data were held) and research to understand the true nature of the corruption. Now, we can get it online, sitting at home, or at least a lot of it. So don’t be too hard on yourself; very, very few people really understood what was happening to our country. Now President Trump is using a megaphone to speak to everyone about the political corruption and financial / economic fraud. He is taking an incalculable personal risk to both himself and his entire family in doing so, and we should be thankful. No, we’re not in Kansas anymore, and we never will be again. We just have to resist the evil as best we can. Every single person needs to step up to this obligation, because each one of us can make a difference. Thanks for writing and best regards, Stewart
Did anyone see Friday’s Bix Weir video claiming Thompson Reuters were giving up their role in the Silver fix? If true, it would seem to portend something seriously broken behind the scenes. just hearing this news makes me want to go buy a monster box. Thoughts?
Hello Petedivine: My personal view is that there have been hundreds of so-called “bombshell” announcements over the years about important metals markets players doing this, that and the other thing. Almost all of them have proven to be either meaningless, or deliberate deceptions and misdirections designed to confuse and screw people. Just ask yourself this: “What is a dollar?” Really think about it; run it through you mind forwards and backwards; sleep on it; see if you can have a dream about it. What IS it???? After you’ve seriously thought about it, perhaps the clouds will part on your monster box dilemma. Cheers, Stewart
Why is it so important for the Deep state to keep gold/silver prices low?
Surely if they want to pay off their debt they just devalue their currency? And if that means gold prices go up so what?
Sorry for being thick.
All polite answers appreciated.
Hello Col: You’re not being thick at all. This is a topic that has challenged even the most sophisticated of observers for a long time. I am working on a new article on exactly this topic. Please stay tuned. As a quick hint, there is no patriotic reason for it whatsoever. Best regards, Stewart
I’ve said it before and I will say it again – gold at its core isnt an inflation or deflation play, although there are times it is. At its core it is about a loss of faith in the “system” or system of systems. Thats where we’re at, and we havent reached the bottom of the rabbit hole yet.
Also, looking at the geopolitical situation and moves made by Obama/deep state in the last 8 years, its pretty clear they fear/want a showdown with Russia and China. They blew up europe – by design – and then did a “pivot” to Asia – as if China couldnt read between the lines as to whats headed their way.
The constant accusations of collusion between Russia and Trump serve to attack 2 enemies of the marxist deep state. I’m curious if Trump is aware of this and may at some point unleash gold in order to severely reduce the power of the deep state. Never thought in a million years we’d get a president who’s got a bit of Ron Paul but with giant b@lls.
Hello junior_kai: Thanks for your message, which is as insightful as ever. I agree with you 100%. While the gold price is currently out of the hands of the “mere” President of the United States of America, and under the firm control of the Deep State plunderers, Trump could change that in one sentence: he could say to the people essentially what the Chinese government has said to its people: “I think it would be a very good idea for every citizen to own one ounce of gold.” If he were simply to say that, the price of gold would spike by $1,000 per ounce in ten minutes, because if the people actually tried to act upon his advice, they would learn that the gold is not there. This would be the most personally dangerous message any American president in history has ever uttered, and he would be at extraordinary risk if he were to say or suggest anything like it. For now, look out for yourself and your loved ones, and let’s see, and hope, that powerful others will soon look out for us. All the best, Stewart
You state, “Once cash is eliminated, the banks will no longer have to worry about bank runs”
This is not correct. Eliminating physical cash would not prevent bank runs. Bank runs can happen just as well by having large numbers of depositors take money out of a bank electronically by transferring it to another financial institution like another bank, a credit union, a mutual fund company, a brokerage, an insurance company, into a Treasury Direct account etc… or by having depositors just close out their accounts and getting a cashier’s check.
There is also something called a silent bank run.
Only capital controls, such as preventing people from closing accounts and limiting the amount one can withdrawal from their account, can stop bank runs.
What people should be saying is that in a cashless society, money is prevented from generally leaving the banking system. Not that individual bank runs can’t happen.
Dear J Miller: Thank you very much for your message, and permit me to disagree with you. As usual, literature has the answers we seek. In the specific context of your message, John Dunne speaks to us: “No man is an island, / Entire of itself, / Every man is a piece of the Continent, / A part of the main.” The banking system a piece, and every bank a “part of the main.” What good would it do a person to transfer funds from, say, Chase, to, say, Citibank, or a credit union, or a mutual fund, or anywhere else within the banking “continent” if that person could not get it out of any of them, either??? The EVIL purpose of cashlessness is twofold: 1) to trap people’s money in the banking system, and then apply monthly and other fees to it; 2) to force the people to spend their money (and, in the process, generate sales and corporate profit taxes for the state). Forcing people to spend their SAVINGS just when they will need them most is an EVIL AGENDA. This is a very serious issue, so let’s not get twisted up in silly, stupid semantics. We are not just talking about money here. We are talking about the people’s ability to SURVIVE. Because when people’s money is stolen from them, how do they EAT??? You might want to spend some time researching what the poor bastards in Venezuela have been experiencing and continue to experience to this day as they try to SURVIVE after the collapse of their “money.” If people do not stop trying to paper over with stupid semantics the seriousness of what we face, they are going to be annihilated by reality. I am sorry to write so strongly, but this is a VERY important issue, and it is going affect people’s LIVES. You are obviously an intelligent person, and I would urge you to think more deeply about what is happening all around you, and stop trying to seek false solace in semantics. Sincerely, Stewart
I really do not know why you disagree with me. What I said is completely true. Individual bank runs can still happen in a cashless society. You state, “What good would it do a person to transfer funds from, say, Chase, to, say, Citibank, or a credit union, or a mutual fund”. Well that is easy. If your bank is in financial trouble, or is rumored to be, it may be a good idea to move your money out of that bank and into a more safer bank or perhaps a credit union. If a large number of people would do that it could cause a bank run even in a cashless society. And what good is it to transfer money from a bank to a mutual fund? Well I guess it would be good if I wanted to buy mutual funds or an ETF and not leave it all in the banking system. The fact is that your money is not trapped in the banking system in a cashless society. You can invest in financial products or buy real assets like precious metals or real estate.
Hello JMiller: Thanks for your nice response. Here is what I think many people are drastically underestimating: the banking system is a “Continent” (to go back to Dunne). It is a consolidated “piece.” Lloyd Blankfein (Goldman Sachs CEO) made it crystal clear in 2009 when he said in an interview in London: “If we go down, I can promise you that everyone else is going to go down with us.” He was NOT kidding, and was trying to give Paulson air cover and support he needed to get the bailouts approved, which Goldman desperately needed. If Citibank, or Chase, or any of them go down, they’re all going down. They are all interconnected. The only way they kept the system alive in 2008-09 was via massive bailouts. They will not have that option next time. In fact, the LAWS have now been changed to go to BAIL-INS, not bailouts, because they won’t be able to print enough bailout money next time; they have to steal the people’s money, that’s the only option. Please, think deeply about this. Why do you think they changed the laws to go to Bail-ins in future meltdowns??? Because they were just sitting around with nothing to do and wanted to fill their time??? No, they changed the laws to go to Bail-ins because they know for a fact that this is what they are going to do next time around. Because it is their only viable option. Do you really want to go into ETFs or real estate in a meltdown? Knowing that when you try to sell your ETFs or property, there will be no bids for them, and even if there are, you will not be able to get your money? Knowing that it will be stuck in a financial institution that will not give you your money? Regarding buying precious metals at that time, I don’t think that’s going to be an option, at least not at anywhere near current prices, if you can find metals at all. I don’t want to sound as if I have all the answers, because I don’t. All I can tell you is this: for over 15 years, I have developed an analytic framework called Inferential Analytics (IA). IA projects the implications of current events. So in a way, IA lives in the future. In my humble opinion, the future you have posited in your messages will not exist … not by a long shot. And when you get to that future, you will say, “Oh my gosh, I wish I had done X, Y and Z back then in early 2017, when I could have.” Read up on the Normalcy Bias … it is extremely important. Do not assume that anything you take for granted today is going to be reality tomorrow. I’m not saying I’m right; you’ll know what’s right for you. And I have no incentive in writing you, other than to try to share with you what I have learned. (I’m not a broker of any kind; nor am I selling anything to anyone.) All I’m suggesting is that you test your assumptions very, very hard, because we’re “not in Kansas anymore,” and we’re never going to be again. Best regards, Stewart
You are correct JMiller. Stewart Dougherty just does not get it.
In my opinion , Masters of Universe still buying the time and preparing themselves. They have got a lot dollars and time.
World economy still slowing down , BRIKS are almost demolished and with USA “help” they getting weaker , but Masters know that day of reckoning is coming.
I am not surprised China and Russia still buying gold , because it’s asset not liability. Manipulators on other hand are more interested in buying gold , silver miners . It’s much harder to manipulate price of gold than price of mining company.
I think next problem will start in Europe . Europe is now weakest place. Regarding the “War” , in their opinion there must be only one Master and they achieving this now by weakening their enemy’s economies.
Hello Mark: Thanks for sharing your extraordinarily perceptive comments with this community. Best regards, Stewart
I was told this week that the DHS can seize the contents of your safety deposit boxes without a warrant, merely on the SUSPICION that items or cash is being used to support terrorist activity. Is this true? Would you write about what DHS can do, without a warrant or court order or notice to the individual? Thank you.
Hello DS: There’s no need for me to write an article, because you have already written it. What you wrote is true. The only clarification would be that it’s not just the DHS. Virtually any agency can block access to and seize the contents of a box, for any of broad array of reasons. And last year, Chase informed its box holders that they are no longer allowed to store cash or metals in their boxes. If a box holder now violates that proscription, the contents of their box can be confiscated. All people who have boxes should read the fine print from their specific institution very carefully. You might be quite surprised by what you learn. Regards, Stewart
“Chase informed its box holders that they are no longer allowed to store cash or metals in their boxes.”
Not true Stewart. They never said precious metals. They were told that cash and coins where no longer allowed. What they are talking about is paper currency and coins, something that banks deal in. The banks do not want you storing money in your box but to have it deposited in your bank account. They were not talking about precious metals coins, bars or rounds. Most banks already had such rules.
“If a box holder now violates that proscription, the contents of their box can be confiscated. ”
Highly unlikely since the bank really has no way to know if you have cash in your box unless you make it obvious.
No one can seize the contents of your safe deposit box unless they have a warrant.
Hi Steward, dear mr. Dougherty,
Exellent article. I would like to take this chance to share a few of my thoughts on this. To me it is pretty clear that the American gold is encumbered. Not because of the usual reasons found on the web but because America defaulted on its gold under the Nixon administration. There are still, many, many foreign claims on that gold. If America starts to use that gold officially, the gold vultures, like the bond vulture funds, will be out en masse and with force. So it is in America’s best interest to ignore that gold and gold in general.
The world has (finally) realised that a country with the reserve currency is not something a country should want and that the Dollar will fair by itsself. The danger was that it would fail to soon. That is why the Euro was created for example. The currencies from the individual countries were all issued from the US treasury. Meaning that if the Dollar went the way of the dodo, the European currencies would die with it. Enter the Euro, issued from gold. Priced mark to market. You can check the website of the ECB, its number one asset is listed as gold and sadly as well gold recievables. Most of the Eurasian landmass followed this initiative just as the BRICS. All that is and especially was needed was a rebalancing of the gold holdings of major countries. Enter China. They had way to little gold and way to many dollars. But last year they also started to mark their gold holdings to market.
Seems to me the world is ready to hyperinflate into gold. After all, all currencies have already hyperinflated in the financial world. When the run on real things happens, as a system operator, you dont want that since a functioning printing press is worth way more then gold. So you want to guide the hyperinflation into a useless metal (from an industrial pov) and help to equalise the tradeflows. They cannot implement a global political & economic system when things are unstable since then it will fail again and soon. Just as all reserve currencies did since late 1400. If I was like them, aim for the Roman model. Split the money concept. Currency for spending and setteling debts but use gold and silver as a final debt extinguisher. Also prevents the mess the EUro area now is in. The debts of the south are the assets of the North. Recepy for disaster.
Ah well enough rambelings on this sunday afternoon, enjoy the rest of your weekend.
Hello Hugo: Your message is as complex as it is powerful. One sentence in it that particularly resonated with me was: “Seems to me the world is ready to hyperinflate into gold.” I regard that as a truly prophetic statement. There is so much brilliance out there among the people, it’s astounding. If I could do it (my devoted German Shepherd would never allow me to be away from home that much, and I would be sad being away from her, too! Although maybe I could do it like Steinbeck’s “Travels with Charley” … hmmm, have to think more seriously about this), I would like to go visit the people who comment on this site, and sit down with them across the kitchen table, and open my notebook, and write down the things they say and think, because there is so much common sense and truth in the things they say and think, I believe we could really fix the world if only people listened to and acted upon those things. Thank you for your extremely interesting comments. Regards, Stewart
Thank you for your kind words. Let me elaborate on why I think that the world is ready to hyperinflate in gold terms. The Western public will not hold an asset that going nowhere, at least in currency terms. The public in the East were never fooled that way. Some (I think rightly) joke ”if one can only see value in paper currency terms, one cannot see value at all”. I also think gold is wealth and not money. Gold has always been funny in that way. So many people worldwide think of it as money even though its supply tends to dry up as the price rises.
First the Comex will be thrown under the bus to destroy the paper leverage (price suppression) game. Maybe the LBMA as well though I would not be suprised as well if its allowed to stay alive. Then the prices can rise and the message send (massaged), gold is the new wealth reserve to balance trade imbalances and then the Western hyperinflation will be killed. Central banks loose most of their gold reserves (and that is good) and gold can do what it did for milennia again, settle trade imbalances.
As usual, in historical terms, most of the average people wont have it besides a few grams. But it will be people, not institutions that control it and will help to create a decentralised counterforce to the centralised system we live in that is hopelessly out of touch with reality.
I know my comment was complex but I wanted to condense my thoughts I developed over the now 3 decades already (how time flies). Your solution for Steinbeck’s “Travels with Charley” wont help for our talk since Iam from a small country in Europe. My old mixed breed male dog would not agree either to me going over to America. Though Iam sure they would like eachother (smile)
I know my previous comment was a tad complex since I wanted to jam as much info in it as I could. Few things are are more fun then thinking and learning after all (smile). Considering the fact that you are a more practical as in the here and now thinker and me being a more systemic thinker I find it a shame we cannot share thoughts face to face. I would be happy to talk via mail or here. In case you are interested, you can reach me at hugo dot utrecht at ymail dot com. Talking more here is fine as well.
A last thing, curtosy of JS mineset, a map of the world (at least 6 years old and China is green as well now) of the countries that value their gold mark to market (green = mark to market) http://picpaste.com/pics/c6e6fe706866fe04b1394ec48214f084.1488917459.jpg. I thnk other countries followed but not sure.
“This price pummeling [of gold and silver this week] is absolutely state-of-the-art Psy-Op…managed by the Fed and Bank State….”
As could be predicted by the level of short contracts by the commercials, particularly high in silver.
Over and over and over.
David: So true. Over and over and over. I’m working on a new article about this. That they can keep getting away with it is truly disgusting, and tells us everything we need to know about “justice” in America. More soon and best regards, Stewart
We the people ask the federal government to Call on Congress to act on an issue:
Stop the precious metals manipulation in the Stock Market.
Created by M.O. on March 03, 2017
Rich: Excellent. This is exactly the kind of thing we need to bring on top of their heads like an avalanche … one thing after another. Thank you, Stewart
First of all, excellent analysis. I just wanted to point out that the other factor that has greatly contributed to the gold scam is that alternate banking systems (by banking I mean note-issuance that is redeemable by other branches) have, by and large, been outlawed by most developed countries. The result has been obvious: the world’s population has been forced, through the destruction of choices, into fiat. Since you cannot bank with gold, at least not legally, it’s been a major reason why the futures-markets continue as the average investor cannot handle the costs of taking delivery anyway. Hence, if you cannot bank it, it becomes costly to trade it.
So the situation, as I see it, is that it’s not merely just about the gold supply…but also about the life-span of the fiat banking system. Given the legal-teeth that the PTB have, I would say that it won’t be the former, but the death of the latter that would determine when the PM prices break out. At which point, the PM banks that erupt from the need to safe-keep/trade would have to go underground, as they already have in places like Venezuela…until the beast has has been starved.
That is, essentially, the best outcome I can see at this point, but I am curious as to your thoughts. Do you think the U.S. states will revolt and embrace open-banking systems outside of the Fed, or do you think it’ll be Mad-Max style underground banking at this point?
Hello DW: That is a deep, excellent message you just wrote, and I would like to sleep on it before responding. Your message really got the synapses firing. Let me get back to you tomorrow (Tuesday, 3/7). There is a multi-, multi- billion dollar business opportunity in what you just wrote. Stewart
Thank you sir. If you want your synapses to really fire, look into the history of the knitghts Templar. They grew extraordinarily rich this way, and developed the first checking account. Little, if any, evidence of them committing depositor fruad also, although their good name may had been the biggest reason for their persecution. Their wealth disappeared with them, and some suspect they are still around.
We be hearing “the Crimex Cartel Boyz will soon be carried out on stretchers” crap for the last 20 years.
It’s real old at this point and when the market cracks EVERYTHING will go down with it as margin call after margin call hits the PM stocks also.
Good luck with that!
Thank you very much for your article, I found it most interesting and informative. I can’t really comment on the current situation vis-a-vis precious metal manipulation and relevant globalist agenda, but, as a land-owner living in the Russian Federation, I can add a couple of points to your picture.
Firstly, private precious metal owership, not long legalised in Russia, is highly controlled. Purchases and sales may only be made at artificially higher prices through a very few bank branches throughout Russia, metals are not always available and the sales are taxed as for other consumer purchases (GST, VAT, etc), although the prices are well publicised. There exists a black market (a la USSR) that purchases from abroad (usually Finland) and operates through the many pawnbrokerages in different cities.
Secondly, two days ago, the Russian central bank directed various credit organisations to take measures to bring currency back into the banking system, citing the 1,5 times higher incidence of currency existence outside the system than that which is in actual day-to-day usage. The reality on the ground is that few ex-Soviets have forgotten the “bail-in” of 1998 and are not keen to repeat the experience, although few have the money to go purchasing precious metals even at the lower black market prices.
I keep reading here people saying “two sides of the same coin” in reference to “antithesis” and “thesis”. Maybe the West plays off against the Russian “bad guy” to further their own agenda, but, in reality, our oligarchs do to us here what your deep state are doing to you there, and for the same reason. Greed/power.
I’ll tell you something else, from an ex-Soviet. Your “quasi-freedom” does not exist. Writing letters to the District of Columbia will do nothing, because your leaders do not give a rats about you and your ideas of freedom. Appealing to the Supreme Court will do nothing, because the judges have all been installed and paid off by your deep state. The only reason government sees fit to lie to and pacify you is because a mass uprising would cause them significant inconvenience. And if you think that your law enforcement will support you, then consider that they have been heavily militarised in terms of equipment and training, implicated in several unjustifiable extrajudicial killings over the last few years and are even happy to level pistols at 11-year-old girls, as I heard recently. Don’t forget what happened during the Occupy movement. They have no more morals than that drunk-on-it’s-own-sense-of-power and rampantly corrupt armed brigade referred to as the US Army, which your government will successfully send against you if it feels the need.
I think that your position is a great deal more precarious than even you realise.