Here is Part 2 of Stewart Dougherty’s “War on Gold” essay. Here’s Part 1
Magicians use distraction, deflection and misdirection to conduct their tricks. They get their audiences to look to the left while they perform their magic undetected on the right. So do con artists and swindlers.
George H. W. Bush, in a speech delivered to a joint session of Congress on 11 September 1990 entitled “Toward a New World Order,” headlined a geopolitical theme that has garnered a great deal of attention ever since. And while Bush was not the first person to use the term, it struck a global nerve when he invoked it.
Bush’s speech about the New World Order deflected and misdirected the people’s attention to the left, and prevented them from seeing the real action that was taking place to the right: the imposition of a New World Central Banking Order throughout the west. This multi-country, supranational, autonomous, all-powerful, privately-controlled, for profit, non-auditable, monopolized, collusive, monetary leviathan has become what we call the Western Central Banking Dictatorship (WCBD).
This dictatorship, and we are not being pejorative, we are simply applying the standard definition of the word to what central banking actually is, operates throughout the broadly defined “west,” which includes: the United States, Canada, Mexico, the European Union, the United Kingdom, Japan, India, New Zealand and Australia. Certain African, Asian and South American countries also play lesser parts in the regime. Dictatorially ruled by this private monetary system are the hundreds of millions of citizens who must use Euros, Yen, Rupees, and United States, Canadian, Australian and New Zealand dollars to function in their daily lives, as these fiat currencies are all 100% controlled by the regime, and are subject to whatever actions, no matter how experimental or extreme (such as Quantitative Easing and negative interest rates), the controllers, in their sole discretion, decide to take.
One of the seven core principles of Inferential Analytics, the forecasting method we have developed and use, is that all phenomena represent Life Forces, and that all Life Forces ceaselessly work to expand, evolve, empower themselves, and conquer new terrain.
Some of the most powerful Life Forces on earth are the “isms.” One of today’s most rapidly evolving “isms’ is crony communism, the national operating system now metastasizing throughout western nations to replace its dying predecessor, crony capitalism. In this expanding system of crony communism, the cronies loot the capital that was produced by the dying capitalistic system, while the masses descend into communistic impoverishment, entrapment and despair. Crony communism is a system in which the forces of diabolism, greed and evil usurp and exploit state power for their own enrichment, empowerment and dominance, at the direct expense of the communized masses.
Relentlessly increasing wealth concentration combined with spreading impoverishment and paycheck to paycheck living are two glaring signs among many others that the Life Force of crony communism has entrenched itself throughout the west, and that it is evolving and advancing.
The enabling institution for the spread of crony communism is the WCBD, which is owned and operated by the Deep State crony elite, both of which are Life Forces of plunder and human exploitation.
To those who pay attention to fiscal, monetary, economic and financial realities, it is becoming clear, despite the current frenzy of propaganda to the contrary, that the existing system is failing. In the United States, to focus on one national example, massively underfunded pensions will collapse without equally massive bailouts; every government entitlement program is bankrupt, a fact publicly admitted by the programs’ respective government overseers; structural deficits are uncontrollable under current law and can only be contained if government promises are broken at extreme expense to the economy and people; debt at all levels is exploding and structurally, must continue to explode; mass financial stress is directly observable in such forms as street-level, in one’s face homelessness, fast-spreading tent cities, and teeming under-bridge communities; paycheck to paycheck and government welfare payment to government welfare payment living is now the norm for the vast majority of the population (for example, 78% of full time workers in the United States now live paycheck to paycheck; the financial condition of part time and unemployed persons is even more dire); the savings rate has plunged as people struggle to make ends meet or engage in financially disastrous “Eat, Drink and Be Merry” binge spending programmed into their brains by the MSM, which repeatedly tells them that things have never been better and they should go shopping; overall savings are non-existent or meaningless for the vast majority of the population; among many other signs of fiscal and financial decline.
The WCBD, which includes all western central banks, the World Bank, the IMF, the ESF and their consolidating organization, the intensely secretive, predatory, and frigid BIS, is fully aware that the system is failing. The United States Federal Reserve System alone employs hundreds of Ph. D. economists and statisticians, and it is literally impossible they do not comprehend that trillions more fiat currency units must be created out of nothing to keep the monetary system functioning. Further, it is impossible that these Ph. D.s and their management do not realize that ultimately, the very design of the fiat monetary edifice means that it must erupt into a hyperinflationary bonfire, exactly as it has repeatedly done throughout history. Every “fix” now being implemented, most particularly the new, frenzied fixation on GDP growth, is an urgent attempt deflect attention away from the structural impossibilities of the monetary system, and to buy time.
For years, people have realized that certain vital government statistics, such as employment, inflation, retail sales and GDP are manipulated to tell a comforting narrative that all is well in the land. Confidence is everything in debt-dependent, fiat currency-based, consumer-expenditure-addicted economies. But for some strange reason, very few people question the most important statistic of all: money supply. This is remarkable in light of the fact that long after the emergency measures taken to re-start the system during the Great Financial Crisis (GFC), we learned that the Fed had created, in total secrecy, trillions of dollars’ worth of currency swaps that were extended to foreign central banks in order to bail out the financial system. This was so far outside the Fed’s “Dual Mandate” that it beggared belief they had actually done it, let alone without any public or even intra-governmental disclosure whatsoever.
We believe that such secret GFC money creation is just the tip of the iceberg, and that the revelation of actual, as opposed to deliberately misstated money supply would dumbfound even the most sophisticated of financial observers and require a recalculation of virtually every financial and economic metric. All of which would massively deteriorate. We believe that this is one black swan among dozens that could ignite a broad-based flight into physical gold, as people rushed to monetary high ground for financial and personal safety.
On 27 June 2017, during the British Academy President’s Lecture Q&A Session in London, Janet Yellen made the following, now famous statement in answer to a question:
“Would I say there will never, ever be another financial crisis? You know,
that would probably be going too far, but I do think we are much safer, and
I hope that it will not be in our lifetimes, and I don’t believe it will be.”
Many observers chalked up this comment to central banker self-congratulation and boastfulness. Or, they assumed that Ms. Yellen was making a campaign statement to land a second term as Fed Chair. We viewed it differently.
We do not believe Yellen ever had any intention of serving a second term as Fed Chair, and that her “candidacy” was theater. Yellen, Fischer and Dudley, all of whom have gotten or are getting out, realize that the monetary and financial systems are rigged to the breaking point, and that when they fail, the fallout will be uncontrollable. They know the systems are rigged, because they rigged them, and don’t want to be anywhere near them when they blow apart. This helps explain the documented elitist fascinations with long range Gulfstream jets and New Zealand, among their numerous other escape vehicles.
If Yellen had said she was not interested in serving a second term, this would have indicated that something is seriously wrong, a message central bankers never send beforehand. Having admitted, as she has, that she and many of her colleagues no longer understand inflation, an appreciation of which is absolutely critical to the entire process of central banking, she also admitted that, like Fukushima, the monetary system is melting down and out of control. Therefore, she played the game of running for a second term, even though it was just an act.
In the second to last paragraph of her 20 November 2017 resignation letter, Yellen wrote:
“I am enormously proud to have worked alongside many dedicated and highly able
women and men, particularly my predecessor as Chair, Ben S. Bernanke, whose
leadership during the financial crisis and its aftermath was critical to restoring the
soundness of our financial system and prosperity of our country. I am also gratified
by the substantial improvement in the economy since the crisis. The economy has
produced 17 million jobs, on net, over the past 8 years and, by most metrics, is
close to achieving the Federal Reserve’s statutory objective of maximum employment
and price stability. Of course, sustaining this progress will require continued
monitoring of, and decisive responses to, newly emerging threats to financial and
economic stability.” [Our italics.]
This statement was an Inferential Analytics trigger, because we noted that she did not say, “if” there are “newly emerging threats to financial and economic stability.” [Cryptocurrencies/Bitcoin are seen as threat per Trump’s statement that Homeland Security was monitoring Thursday’s Bitcoin sell-off]
A second IA trigger was pulled when Jerome Powell, during his opening comments to the U.S. Senate Banking Committee reviewing his Fed Chair nomination, said the following on 28 November 2017:
“We must be prepared to respond decisively and with appropriate force to new and
unexpected threats to our nation’s financial stability and economic prosperity.”
Please note two things: 1) Like Yellen, he did not say “if” there are “new and unexpected threats to our nation’s financial stability and economic prosperity;” and, 2) the nearly identical language used by both.
To us, both Yellen and Powell are warning that “newly emerging financial threats to financial and economic stability” and “economic prosperity” are on the horizon. People might comfort themselves by saying, “That is always the case,” which is true. Endogenous and exogenous risks to complicated systems always exist. The problem is that when these threats manifest themselves, what can they do about them at this point, other than print massive quantities of new currency units, a so-called medicine that has become more toxic than the disease it attempts to cure.
Central bankers go to lengths to paint a rosy picture, because belief is everything when people are living in a fantasy, which an economy that is more than $200 trillion in debt all told, is. We therefore find it extraordinary that Yellen, on her way out, and Powell, on his way in are painting a dark picture by talking about “threats to financial and economic stability.” They would not be using these words if they did not know that something serious is on the horizon. They know, because the threats are of the WCBD’s direct making.
Regarding the specific comment Yellen made in London, we believe she was saying that the Fed in particular, and the WCBD in general, have now transferred the mechanisms perfected over the past 40 years to control precious metals prices, to western stock markets, in order to control their prices. The only difference being that while they have used sophisticated, computerized price manipulation techniques to push precious metals prices down, they are using the same techniques to push stock prices up.
Why? For four primary reasons: 1) To prevent the pension system from collapsing, which would bring down the entire economy and banking system with it; 2) To generate badly needed income and capital gains tax revenue; (Please keep in mind that most employee stock option gains are taxed as individual income, and result in top income tax rates being imposed; full, uncapped Medicare taxes being paid by both employee and employer; and, the Obamacare 0.9% Medicare surtax being collected. Therefore, such stock option gains represent a trifecta tax bonanza for the government. Additionally, capital gains over a minor threshold amount, which is not indexed to inflation, are now subject to the Obamacare 3.8% surtax, which the proposed “Repeal and Replace” House and Senate legislation never rescinded, evidence that the government is dependent upon the surtax revenue and will not let it go. As we can see, Republican legislators spoke with a forked tongue; while they said they hated Obamacare, they forgot to mention that they love its tax revenue and have no intention of parting with it); 3) To foster the “Wealth Effect,” and thereby stimulate consumer spending, which is critical to employment, corporate profits, corporate profit taxes and state sales taxes. In deliberately creating a consumer spending, as opposed to a production economy, the government and the citizens have become slaves to a low-to-zero savings, binge spending, consumer impoverishment economy, which is a Castle in the Air and a mirage that will fade; 4) To facilitate a high-intensity, big-dollar insider trading, front running and looting spree, via the dissemination of inside information to the elite regarding upcoming WCBD policy decisions and government economic reports, all of which move markets in predictable, sizable, and enormously profitable ways for those who can exploit them in advance. The surge in wealth inequality is not natural, and not an accident.
In addition to precious metals price controls and the legalization of bail-in banking, numerous other developments, such as the accelerated push to eliminate cash all suggest that the people are being elaborately set up for epic financial slaughter by the Deep State plunderers. The Deep Statists are intent on eliminating financial sanctuaries that are outside their bail-in dragnets. In past situations of this kind, gold has performed admirably in protecting wealth and, far more important, human lives.
We mentioned in Part 1 that there is a clue in the Financial Times article that demonstrates the statists’ fear that they cannot prevent broad scale interest in gold from developing among the people. The FT article argued that due to dealer commissions, physical gold is more expensive than its electronic counterpart. It also stated that physical coin dealers are dangerous because they are “exploitative” and “shady.” The conclusion the author reached for his dear readers to follow was this: “More gold will be traded electronically,” because if one is going to buy gold, electronic products are the better deal.
This is exactly what the increasingly concerned Deep Statists are trying to steer people into doing: buying electronic, not physical gold. They appear to realize that they might not be able to control the gold price for much longer, and that if the price gets away from them, the Cryptocurrency Effect will be activated in gold. If that happens, a price Vesuvius lies ahead. The volcano, they cannot stop. All they can do is misdirect the people’s money into their phony electronic gold products, to sterilize and control those funds. Then, when the price does explode, they will force customers to accept involuntary cash settlements and close out the electronic acounts. The customers will get fiat currency at the precise time when it is plunging in value, and the statists will keep any physical gold they might have purchased with customers’ funds.
As Sun Tzu said, in war, you must know the enemy and yourself if you intend to win. We hope that our article has helped readers know the enemy a bit better. The next task is to know yourself; to ask yourself, “Given what I know, what should I do?” In our opinion, and this is just our personal point of view, not an investment recommendation, which we are not licensed to provide, the fact that the Deep State elitists are stopping at nothing to discourage you from buying physical gold is the precise reason why you should buy it. And if this article has resonated with you, then you probably also believe, as we do, that the time to financially prepare yourself is getting short. The current intensity of price maneuvering and manipulation in a broad variety of markets implies that the center is losing hold, and that something wicked this way comes.
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
The three keys that prove every battle is decided before it is ever
1) If you know yourself and you know your enemy you
will win 100 out of 100 battles.
2) If you know your self but do not know your enemy the
best you can expect is win 50 out of 100 battles.
3) if you do not know yourself and you do not know your enemy
the you should expect to lose every battle.
Great article. I’m as upset by injustice and poverty as the next man. However, I’m in no hurry for the curtain of delusion to reveal the immensity of the new reality lurking under the covers. If we could speak with SunTzu and make a good natured bet on the success or failure of the average American suburbanite vs. the reality rising outside our doors…would he bet against us or for us? It’s easy to talk smack when you have a full plate of food, good beer in the fridge, and a winning fantasy football team. Just saying..we don’t know the enemy. I suspect we really don’t know ourselves since we’ve never been tested with unyielding unending reality…where a better tomorrow isn’t possible. The matrix has its benefits. There won’t be many fillet mignons for $5 available once the curtain comes down. Love the article. I’m just less inclined for the magician to end the show. Cause…to overcome what comes next might require damnation to overcome. I suspect I understand tomorrow, but I always loved the movie “Ground Hogs Day” Thanks for the warning and the fantastic article, but don’t wish too hard. Enjoy the moment and stack like a M.F. Cause if reality gets through the door, you’re stack and a rifle is all that separates you and the unlucky.
Depends on your definition of “better tomorrow”…just sayin. A man who has been in prison all his life will be scared shitless if set free. This is the “fear” I believe you are describing. Unless you really embrace it, you don’t really know anything.
Thanks for the truly excellent, thought-provoking comment. I’m a believer in the insight, “Don’t trouble trouble, or trouble will trouble you.” The problem here is that the people troubling trouble are the elitists, not us, the people. Dave has said for a long time, and I agree with him 100%, that their plan is to scrape every last crumb off the table, into their own mouths and pockets. The longer the looting continues, the more power and money they will amass. We are fast approaching the point where the citizens will be completely helpless against the looters’ juggernaut of money and power. Then it’s over; it’s tyranny, and the people’s futures are dead. So I don’t buy the idea that the matrix can survive. It can’t. Because the forces of evil are so advanced and deadly that they will kill it, even though it’s not in their best interests to do so. They are addled by their insane lust for power and money. I agree with you that the vast majority of us don’t know ourselves. Ourselves have been programmed out of ourselves by propagandists and mind controllers who have, for an entire generation, deliberately dumbed us down and stolen from us who we really are, the powers and capabilities we really have. But when this thing blows up, people are going to reach deep inside themselves, and find and regain the amazing, innate strengths we possess as human beings. And that is going to be bad news for the crony communist bastards who are trying to enslave us with their cowardly war against us that dares not speak its true name. I don’t want any of what’s going to happen, to happen. But I simply cannot see how it cannot happen. So it’s almost as if the right stance is, “Let’s get this over with.” If it happens 5 years from now, the people don’t have a chance. The power and wealth will be so concentrated by then that we won’t be allowed to make breakfast until we receive authorization. I learned early in life, and I think many, many others did, too: the biggest mistake we can ever make is to shrink from a bully. If we do, the bully is empowered and the bullying never ends. No, you don’t shrink. You go for his jugular and his eyes and anything else you can get your hands on, and you don’t register any pain whatsoever in the process. You don’t care what it costs to fight, or how much pain you take; all you care about is winning. Total, complete victory, and total humiliation of the bully so that he cringes next time he sees you, if he still can. That’s where we are now. Us versus the bully. This has been going on for way too long, and it needs to end. Just some thoughts to consider. Thanks for writing, Petedivine. You’ve been a great correspondent for a long time, and it’s always good to hear from you. Stewart
Hi Steward and all others,
Really watch the clip Donny Brooks posted below. It shows the future that has to be unless we become the (eastern part) of the Roman Empire. So sad so few know that the Roman empire fully fell almost 1000 years later but that is another story (smile).
Stewart, thanks for the analysis, especially the reasons for the Fed to push stock indexes higher. Really insightful.
If the Wealth Effect increased consumer spending under this scheme, though, we would expect to see inflation of consumer goods prices. But that’s really not true, at least yet. The Wealth Effect isn’t working because the vast majority of the gains are going to the top fraction of a percent, who, relative the the plebes, aren’t much for spending it. Maybe luxury goods are still inflating, but this is a small part of the total.
So, the central bankers must have known this would happen; they may be evil but they’re not as dumb as politicians. I’ve seen it theorized that their aim is actually to concentrate wealth further so that consumer spending will *decrease*, or at least stay flat. Since we’re now at the point where the planet can’t support increasing consumption, the growth charade must be maintained in other ways.
And I agree with Pete – we should be careful what we wish for. If gold hits 10k an ounce, what’s to stop them from declaring it a tool of terrorists and initiating confiscation? You say you’ll thumb your nose at them and hold it? Imagine that your favorite US-based dealer can no longer buy from you. Already it’s extremely difficult to get any real quantity of physical coins or bars out of the US that are in your possession. There are solutions for this, but they require a 1031 exchange and that you either trust a foreign vault (and then have a form of paper holding, essentially), or that you open a Swiss bank account and spend some time in Zurich doing some PM shopping.
Well done Stewart. Thank you.
I am optimistic that not all the world is united behind these bankers. I think the global war over national sovereignty is not over. There are strong states and entities within those states not at all happy with the status quo.
The flow (of gold) to the east is key. When the flow becomes insufficient…
I think the price action in gold, or lack thereof, indeed supports the thesis that the flow of gold is getting critical. But I also think it is not just the bankers and their western governments who cannot tolerate price discovery. Ironically, certain buyers of physical gold in size might have now joined the price suppression party.
A rapidly rising price would not only do what you brilliantly describe, but would also end supply for these serious accumulators. Game over.
Western gold by most accounts is a no-supply market trying every trick to stay alive. Those with the means wanting to take delivery, and willing to wait for a host of reasons, can extract concessions of all kinds including what we see in the price ‘action.’
This perspective should receive more discussion. We might better understand our ‘enemy’, the dynamics of temporary alliances, and sustainability of the situation.
Yes, we’re seeing the London gold pool drainage 2.0, 50 years later all over again… Yellow BRICS heading east, not to return for a long time. Past is prologue, back to the future… Trade/hedge accordingly. GLTA and a big thanks to Steward for his brilliant piece.
Hello m, and thanks for your message. Let’s consider this. Let’s consider that for years, decades really, gold has flowed from west to east. For the accumulators, it’s been like shooting fish in a barrel. Because their acquisition efforts have happened to coincide with an epic price manipulation fraud in the west, which drove down the prices at which the acquirers in the east could acquire from the west. So, massive quantities of gold flowed from west to east, at stupid low prices.
What if it’s over? What if they can’t get any more gold, even though they would like to? What if the supply is dry?
To me, this is what the explosion in EFP contracts is all about. The supply is dead. So to prevent a Comex delivery failure, which would prove that the supply is dead, they move the contracts to London, and some future delivery date, to keep the scam going.
Yes, the accumulators would love to keep acquiring gold at stupid, sub-$1,300 prices. But maybe that beautiful opportunity, for them, is over. Maybe they no longer can. If that’s the case, and if they still want to buy, then the price needs to go up. And if the supply is so dry that it doesn’t matter that they want to buy, then it has to start going up a lot. The explosion in EFP issuance demonstrates that the manipulators will stop at nothing to keep this fraud going. But what will they do next? Issue an EFP on an EFP? Move the London EFP to Uzbekistan? Move it to Lagos? Move it to Tashkent? The move to London is already absurd. Anything beyond that is sublime, and end game for the fraud. Just something to think about. Cheers, Stewart
Thank you Stewart for your thoughtful reply. It makes sense. It is what I want to think as well. I agree with you on pretty much everything here. That’s what bothers me.
I’m often wrong – or way too early.
It’s been disturbing, to say the least, having journeyed from anger and fear to expectations, to delayed expectations (bring it ON indeed), to questioned expectations, to pathetic hope. It’s the effort of trying to understand that keeps me from turning back on the TV.
So I look at the ignored bits, the twist, the ironic turns of self interest as I try to reveal some flashing sign. EFPs indeed notable. Timing is everything.
So if you would indulge me a bit further..
I still don’t understand why the price of physical gold in Shanghai, Hong Kong (and elsewhere) is still so in line with the Comex price..? If physical demand is not being met at Comex, and now not in London, then WHY aren’t prices rising in these other physical markets?
WHO is selling and delivering this bullion there at these prices?
Could it be the same banks making empty promises in London?
From what stash?
Could it be that say China has some control now over the flow, which could keep flowing east at low price for who knows how long – despite the delivery delays to lessor customers in London?
Diverted mine supply..?
I don’t know.
What do you think has to happen first before prices in the east seriously diverge from the west?
Or what has to stop happening?
Hello m: Let’s think this through.
What is the thing that blows up the whole fraud? Delivery failure.
It is, without question, the one thing that cannot be allowed to happen.
Why do longs accept EFPs, as opposed to immediate delivery?
In other words, they are bribed to take EFPs.
Let’s say the buyers in Shanghai reject the EFPs. They don’t care about the bonuses. They want the physical, now.
In that case, the Comex and LBMA are going to make absolutely sure that they get their metal delivery. Because otherwise, there is a delivery failure, and that would be international news in ten seconds.
The Hedge Fund speculators are fine with the bonuses. Those payments directly translate into cash bonuses for the traders. The HFs love the bonuses paid on EFPs.
The net effect is that many of the longs gladly take the cash bonuses plus the EFPs. Those who refuse to are given their gold. They can still deliver, but only to a minority of longs. That’s what the EFPs are all about. Neutralizing a majority of the longs.
This cannot continue for much longer, it is impossible. We now have paper (Comex) being leveraged into paper (EFPs) … and there is nothing behind any of it.
They keep bringing new rabbits out of their hats. The EFPs are an example of new rabbits. These manipulators are stealing billions of dollars a year, so we should expect new rabbits. They do not want this to end anytime soon. But it’s becoming harder and harder to see … what could the new rabbits be??? What, the London EFPs are transferred to Tashkent, or Siberia? It’s already absurd. And there is always a limit to absurdity.
I could be wrong … but I think we’re going to start to see this break down pretty soon. Stewart
EFP = epic failure of promise (or ponzi).
The cash premium just gives a hint at the true value of PM bullion which will only show itself once there is a global free cash market (cash for bullion only, no margin, all trades to be physically settled in 2-3 days). Till then, “price movements” are just what they are, the reflection of a system that is rotten to the core.
Hi m and Steward,
Let me speculate / think out loud a bit more on this EFP stuff. I am using three assumptions here that I think are facts but still. 1) There is a new cold war, 2) The east (and oil btw, ofcourse read Saudi Arabia) wants to get as much as physical gold and 3) who has the gold makes the rules.
The east knows that ”empire America” is weakening but stiff powerfull military wise and know their achilles heel is physical gold. This considering the fact that not most of the EUrasian continent issues their currency from gold and not treasuries anymore. Heartland theory anyone? (smile)
America has been trashing around big time politically and financially globally lately and the east does not like that one bit. So it decided to show some financial force to appear forcing events that will have to happen eventually anyway. So they decided to signal the message by wanting to have Comex contracts delivered. Notice how many more contracts stand for delivery vs normally on a december month.
The East knows fully well that the Comex can go ”Hunt brothers” on them but they also know that that action makes the western paper gold contract fail sooner then needed so that will prevent the Comex to do that. Ofcourse the West (Europe excluded) does not want the paper gold markets to go the way of the Dodo so they made a compromise with this settlement. This seems a pure geo political play to me.
What it does signal to me is that the East is willing and powerfull enough to pull the plug on the current monetary system and they just signalled that. That Comex / Amerca / Japan and UK had to swallow it shows their financial weakness. It does not matter if the contracts are honoured or not in the UK. The message has been send and received.
From the perspective of the East, oil and even Africa and some parts of South America keeping this monetary system alive brings big bennefits besides rediculous cheap wealth aka physical gold. They can spend their US dollars, treasuries and the likes and build stuff. The one belt, one road initiative is in my mind a great initiative. Never forget, this system lifted hunderets of millions of people out of extreme poverty in China alone the last few decades. A few 100’s of millions elsewhere on the planet as well. Most of them peoples also gotten more free. It has a lot of drawbacks but also brings good things.
From the point of view of a sytem operator, that is a pretty good deal and you want to keep that going as long as possible. I know since I was at the heart of a system operator workings. Ok, ”only” for around 5 billion Euro a year but that was real stuff, not financial stuff. Even there the thinking was, if we have to throw a small privileged club under the bus to gain lots for the rest we do it. America will be trown under the bus so the the rest of the 7 billion people on the planet will gain lots.
So if the gold price can be kept low and thus this system can continue, they will support it untill it will break organically and no amount of manipulation can safe it. I hope the one belt one road initiative can be build, on what we know are worthless, dollars. It will bring lots of good stuff to 100’s of millions of people. Now it has been shown that they will bring down the system if their security is endangered.
It is poetic justice that America will suffer most from it since they were able to over consume. What saddens me is that America choose to try to dominate the globe by force and not seek a better world. After all, the concept America is the best concept for humanity ever conceded (in my mind). That only proves the old saying, power corrupts and absolute power corrupts absolutely.
That is why the world recognises the need to have a decentralised power vs the very centralised power(s) that be. Even communist China does! Isnt it amazing how life works? After all, they promote physical gold to their people
May you live in interesting times (smile). Another thing I want to offer for you to think about. Is it not amazing (and right) that the most worthless stuff in our economies, being paper, digits and gold being most valuable? (smile). That is why silver will never be super expensive, out economies need it to badly.
I hope my rambeling made some sense and given some food for thought 🙂
btw, thank you for your kind comment on my reply at the part one thread Steward.
Excellent analysis, Stewart.
Thank you, Dean. I appreciate your message. Stewart
Thanks, David. It’s kind words like yours that keep me pushing on. Best regards, Stewart
Well done Stewart this was a brilliant analysis and the time is nigh. The mess that has been created in our names and the damage to this entire world along with changes in climate seem to suggest humanity is nearing a massive disruption. Buy physical PM’s, get out of debt as fast as you can, keep your head down and stay very nimble.
Hello Curt: Thanks for your nice words and Amen. You’re right on the money. Best regards, Stewart
Stewart, please forgive me if this is a stupid question. If I understand the article a free market in gold would be a essentially the re-institution of the gold standard. Therefore it must be stopped at any cost?
Hello James: I appreciate your comment, but I am going to have to do some shock therapy here. Because your question shows that you have been listening way too much to the MSM. I am not being disrespectful, I am just saying that your question has absolutely nothing to do with the article I wrote, and everything to do with the MSM brainwashing you have received. Did I ever ONCE in my article talk about the “re-institution of the gold standard?” No, I did not. So where did you get that? You got that nonsense from the MSM. “Standards” are nothing but for-profit, for them, elitist control mechanisms. There is no need for a gold standard, which is nothing but a way for the elitists to steal people’s money. Do you adhere to a “Bread Standard” when you go to the grocery store to buy bread? Is that what a “free market” in bread would require? A Bread Standard, overseen by the central banks, for their profit??? No, you have no need to be the slave of a Bread Standard. The way free markets work is that the manufacturer of bread sets a price, based on their cost, including a profit; the retailer adds a little, and sets a retail price; and you go into the store and buy the bread at that price, should you want to. Do you think there should be a Bread Standard, so that the Fed or some other central bank can interpose itself in your purchase of bread, increase the price, and steal money from you just because you want to buy some bread??? Flush all of this toxic nonsense out of your mind. It is garbage that has been injected into your mind by the MSM propagandists and brainwashers. Just ask yourself this: how on earth did you associate a “gold standard” with my article, when my article never said one word about it??? Let alone, that “it must be stopped at any cost?” Where did this come from? It didn’t from me, so it must have come from you? And where did you get it from? A free market in gold is a free market in gold, that’s all. That means: you have an ounce of gold and want to sell it; you set a price for it; and someone else accepts your price and pays it. Period. End of sentence. Done. It’s not a “gold standard,” and it doesn’t hand a corrupt profit to a bunch of greedy interlopers. It’s nothing but you selling at a price you want to sell at, and a buyer buying at a price they want to buy at. This is what a free market is. But people have been so brainwashed that they think a free market is one that is completely, 100% controlled and distorted by bureaucrats, profiteers and interlopers. We’re in so much trouble, there are no words. Before we can move forward, we have to erase and entire generation of brainwashing and thought control. All the best and happy holidays, Stewart
I guess I worded my response badly. I meant to imply that a free market in gold would act as cap to the debasing of the currency, ie the price of gold would severely punish currencies for bad decisions.
By the way that a mighty high horse you are on.
James, you are spot on, and in my opinion it is a bigger deal than the draining of liquidity from banks.
I don’t see it as that and actually doubt that there will ever be a strict gold standard with fixed exchange rates between fiat and gold. In a freely traded gold marked there would simply be no entity that could (or ever would) sell gold naked short as is currently continuously happening in “the markets”. Gold would be thus be THE primary store of financial value. I think whatever happens, fiat money and debt(s) is(are) here to stay, but the price of gold would be such that the debt-levels would be de facto covered (by the CBs), which is not necessarily a gold standard. Gold will be the ultimate financial reserve asset (“CB’s base money”) and means to settle any financial/trade imbalances among countries or currency areas. THAT however, would imply a gold price of e.g. $250T (debt level) / 190 mt gold => 40 900 $ per ounce in today’s $. Include the derivatives and it could be even many multiples of that… Sounds outlandish, but if this is what it takes for the CBs to keep the debt burden from imploding they might just go there… I guess we’ll find out soon enough (few months or years). Before then I do expect wild, WILD price swings as the CONeX/LBMA paper PM markets go down in flames as they run out of physics metal to deliver. And we *may* be closer to this as most people think. I for myself started to embrace the (CB-induced) pull-back in the PM space as it surely will only leave strong hands with the actual goodies, and the cryptos may just be the ultimate (fiat) lure… GLTY+all, as we will all need it before long.
James…I suggest you watch this video–it might provide some light on the real and deepest meaning of a “free market” in gold:
Thanks for posting that video. I fully agree with that message and inspired me much! It only took me a few thousands hours to understand the simplicity of it in a super complex world! We need easy stuff money wise to keep progressing technolical wise. Such a waste humans use their best minds in money and not physics and the likes.
Spot on assessment. Thank you for a wonderful, concise summation of our world today.
Thanks, Grant. Greatly appreciated. There’s heavy lifting to do (see above), so it’s really nice to get encouragement. Best regards, Stewart
“The people are being elaborately set up for epic financial slaughter by the Deep State plunderers.”
Yellen, Fischer, Dudley and Powell are members of the Rockefeller CFR, and George H.W. Bush is a former CFR director. Citigroup, JPMorgan and Goldman Sachs are CFR “founding sponsors”. See lists in the CFR annual report.
So much for freedom of speech when you have to say you’re not giving investment advice, but a “point of view”, while the elite can lie through their teeth about about virtually anything and call it “policy”. Mr. Dougherty, I for one, support your right to say whatever the hell you please, and to call it whatever you want. Whether you agree or not, your mere “point of view” has more truth in one sentence than most of these jackals have ever said in their lives.
Donny this was an excellent find my friend. Thanks ssssssssssssssoooooooooooooo much. Have already shared many times. Way Cool.
We can’t just seat and expect them to go away,
nothing will change till there is Revolution or War , they have to be eliminated.
We are closer to something , nothing happened in Syria and North Korea because there was something we don’t know , but time is ticking.
The War on gold intensifies because they know they loosing , in India and China middle class is getting richer and they accumulate more gold but in West specially USA interest is slowing down??!! If you want change, you have to be somehow involved , listening and believing to big bullshit will change nothing. Waiting for miracle ??! , don’t count on it.
Per history, the populace has an unlimited capacity for enduring abuse from the criminals running the system.
I would bet less than 5% of the population truly understands the degree to which the elitists are robbing them blind and just how fucked this country is
A large percentage of the population depends on the system in order to survive. A collapse of the system would create an immense suffering for many people. Federal spending has only two large components: defense and social spending. Everything else is peanuts. Manipulating the financial system is part of the larger job to keep the system alive for as long as possible.
Hi Stewart I agree on what you say, but maybe, because we have learned from history and experience the importance of gold as the only extinguisher of liabilities, just maybe, we now fail to adapt to a new reality, maybe we fail to see that we now are facing a “new reality”. I am not sure, but I really start to doubt about the future of gold in a new monetary system. I have no doubt that we are in a transition phase to a new monetary system, to a new multipolar geopolical equilibrium but I cannot say what the new system will look like, if gold will be part of it or not and what part the cryptocurrencies will play in this new system. Because if it is true that today is gold the “enemy” which is suppressed by the financial elites it is also true that gold has been and still is historically “the asset” of the financial elites. Therefore makes sense to think about the current price action as an opportunity to accumulate at very reasonable price? But what if the people of the world do not think in terms of gold as an asset any more. What if most people really do not care about gold anymore? What if most people think that gold is really a “relic” and has no use? Can we blame them? Sure not. Maybe the world is really changing faster that we take notice.
What if the real threat to the elites is not Gold (which they still own and accumulate) but Bitcoin, or Ethereum or any other Cryptocurrency for the sake of it. To dismiss Bitcoin as a bubble makes no sense. For Millennials and young people have no idea what gold is, but they are very familiar with Bitcoin and Cryptos. At the beginning I have myself dismissed Bitcoin as a bubble that will end in tears for many. The more I study it, the more I go to conferences, the more I dvelve deeper into the mechanics of Blockchain technology the more I see that it is no bubble, it seems more like a rebellion against the system of fraudolent monetary creation in which we live. Yes it is like embracing Gold again except the people who embrace Bitcoin they do not know gold. Think about it: I thought the best would be the use of Blockchain to issue a digital Gold (backed up by phisical for sure) to let gold flow again and be money that one can spend again. But it has a drawback: gold is physical and somewhere, someone must store it. Therefore can be confiscated by governments. The beauty and power of Bitcoin is that it DOES NOT EXIST. It is not physical, cannot be confiscated, it is not controlled by the financial elites, it is (more or less) democratic, its supply cannot be inflated, you cannot stop it by shutting down one node or one server, until the internet is up and running Bitcoin is also, short of a worldwide ban by all goverments worldwide simultaneusly it will serve its purpose as money, yes it can be stolen like everything else and hacked like everything else although likely with much more difficulty. Sure it is backed up by nothing but our currencies are backed up solely by debts, todays´ money is not money at all is just CREDIT.
So my final question for you is: it is maybe us who fail to see the changes coming and adapt to it?
Exactly, Miguel. Ultimately, gold is just a shiny metal that isn’t all that useful except in jewelry. Its value is determined solely by what others decide it is worth, historical patterns aside. This is not so unlike bitcoin, but bitcoin has all the advantages you mention.
I say this as someone who is himself long gold. Despite being long gold, I believe we should open our eyes to what change is afoot. Hoarding physical gold does not make for easy transactions in an environment in which it has been banned; bitcoin, however, cannot realistically be banned.
Thank you for a first time reader, my comment is like bitcoin it does not exist !