Physical Gold Is Money – Everything Else Is Someone Else’s Liability

When you own gold, it’s money that you own. Everything else circulating around here is currency – you don’t really own it. The cash you have in your pocket is Federal Reserve Notes [meaning you possess a liability of the Federal Reserve and your spending power is exposed to counterparty risk]. The money you have in your checking account is a liability of the bank where that money is deposited. But when you own physical gold, it’s money that you own. Your are not dependent on someone else’s ability to make good on that money when you want to spend it.   – James Turk on The Daily Coin

The U.S. populace has been methodically trained over the last 100 years, since the erection of the Federal Reserve, to believe that Federal Reserve Notes – otherwise known as U.S. dollars – represents a wealth asset.  But it’s just the opposite:  it’s a liability of the Federal Reserve backed by the “promise” of the U.S. Government.  How much value do you place in that “promise?”

Even more insidious is the notion that “money” in a checking account belongs to the person who made the deposit.  In fact, your money sitting in any bank account is no longer in your ownership.  You have ownership of an unsecured liability issued to you by the bank.  The bank takes  your money and “hypothecates” it – or lends it out.   If the bank loses that money and can’t honor its liability to you because enough loan counterparties defaulted and the bank is insolvent, you will never receive the full value of the bank’s debt obligation.  Welcome to the new world of bail-ins.

But gold in your possession does not have that problem.  Rory Hall of The Daily Coin interviewed James Turk about a new type of non-bank banking service called Bitgold.  He discusses the unmitigated advantages of using Bitgold vs. a traditional bank account.

I have moved U.S.Government electronic monopoly money from my checking account into my  Bitgold  account every day this week, including today. I don’t have the funds required to buy a 1oz. bullion coin everyday, but BitGold allows me to accumulate .9995% gold grams. This is bona fide allocated gold.  I look at this manipulated take-down of the gold price as a gift from the Fed because it enables me to purchase more Bitgold gold every day the dollar price of gold declines.  When the dollar price of gold moves back up, my Bitgold account will increase in value.  That does not happen with dollars sitting in a checking account.  They just sit there like a Pet Rock, earning no interest.  If the bank becomes insolvent, the Pet Rock has no value to me.

I want to make it clear that I’m not an affiliate or associated with Bitgold and do not get any ad revenues from Bitgold for the display link at the top (although I’m sure I could if I requested it). I just really believe in the service and I think anyone can benefit from moving their digital bank credits out of the global Central Banking system and in to Bitgold. I receive a 2% “bonus” if someone uses the links on this site to sign-up for Bitgold and everyone who opens a new account that is funded receives a 5% bonus.

I had an in-depth conversation with the CEO several weeks ago and when I find the time I am going to share my analysis of the with the subscribers of my Mining Stock and Short Seller Journals.

If you own gold, you have money – If you don’t own gold, you have a problem

12 thoughts on “Physical Gold Is Money – Everything Else Is Someone Else’s Liability

  1. Yeah, I too am enthused about BitGold and am moving digital dollars from my bank account to allocated BitGold. I’m using my bank debit card to transfer monies to my BitGold account, and there is no surcharge, only the 1% fee that BitGold takes with every purchase. I’ve got their Mastercard debit card linked to my account, but ain’t using it until I absolutely need to access my money.

    I’m doing the almost daily cost averaging as Dave, moving my money steadily into my account (buying gold).

  2. Presently drunk here in Australia, at 3:50 PM EST American Empire time.

    And ALTHOUGH I’m slightly relieved (for the short term) to see that gold and silver derivatives have held up today, on this day of COMEX options expirations when real money is usually smacked down,,,but then rises again, at least as determined by robots…

    …still, presently what REALLY comes close to driving me f-cking insane, is watching the post 3:30 PM EST ramp of the f-cking Dow and SP, all driven by AND PAID FOR BY the f-cking US Federal Reserve.

    3:55 PM in America now (late at night in Australia), I see the SP spiked at 2090 around 3:30 PM EST, and now it’s decling slightly as the robots are taking some HFT profits. So now it’s coming down again JUST A LITTLE BIT, and it will close above 2080…today,,,

    …but then, in the near future (sometime later this year 2016), when it all crashes, THEN all of the Great and Wise and Good will whine: “NO ONE COULD HAVE SEEN THIS COMING!”…

    …oh but many of us did, many of us saw it coming. For thousands of years, honest persons have always seen it coming, again and again, over and over, like this. (This movie made a big impression on me when I was a boy in the 1960s, and now I understand why! It was a prophecy of America in the 21st century!):

    1. “I’d rather have a bottle in front of me than a frontal lobotomy.” That was graffiti on the bathroom toilet stall in Mudd Library at Oberlin College circa 1983.

  3. Dave, take a look at this. No trick photography or photo shop. People have been
    talking about this for some time, I was never a believer until a friend of mine who is
    an amateur star gazer sent me this. This information has been suppressed for years
    and now Nibiru is closing in on the earth. I’m not one to buy into conspiracy or sensationalism
    but now I’m buying in. Too many at NASA and the idiots in government are denying this phenomenon
    for it not to be real. I think the price of gold and silver will be quite trivial compared to the havoc that
    Nibiru will cause the entire planet. Do your own due diligence and connect the dots and you will have
    a “holy shit” moment.

    1. Freddie, it’s BS, a close friend of mine emailed a prominent scientist who works at a large observatory in Australia and he sent back a lengthy reply debunking this garbage.

  4. Dave,

    These nonstop daily fraudulent talks by Federal Reserve clowns to keep dumping more & more paper gold contracts (Exchange Stabilization Fund heavily involved?) and jawboning dollar – ahead of BrExit European Union vote – give me a horrible feeling that a certain staged false-flag terrorist attack may be on the horizon. Nothing else can explain this level of brazen desperation.

    Recall, I had posted here back in last October that the show should be over by Halloween (When the music’s over, Turn out the lights, Turn out the lights), considering how sick the situation had been in Japan? Negative interest rates, Bank of Japan being the biggest Nikkei buyer & what not? It’s beyond a miracle that a “major first-world” economy like Japan hasn’t imploded by now. Dirty hands of Exchange Stabilization Fund must be involved in keeping such illusion going.

    Is it Groundhog Day?

    Or is it Halloween every day now?!?!

  5. I suppose it is inevitable that you get the odd one wandering in off the plantation Dave, non sequitur is bad enough when it’s is half way smart….but sometimes i’m just gob smacked…personally it’s the coneheads that i think are the real problem no sorry i meant martians… no i mean those other creepy dudes ……you know …oh thats’ right the lizard ones……..eyes rolling……how long oh simple ones will thy love being simple?….well i have to tell you lord i’m starting to grow quite fond of it…….but could you go easy on the thunder bolt stuff…

  6. The very fact that Saudi Arabia & US (CIA-Pentagon apparatus) are openly blaming each other for architected 9/11 tells that the dam is about to break open.

    New engineered false-flag terror event will be brought about to wreak havoc in present collapsed economic conditions. I wouldn’t even count on 2016 presidential elections going thru smoothly.

    There is a very strong reason for why manipulations have been so much beyond egregious for about last 7 days or so, because the

    Did you hear that Prime Minister Shinzo Abe (yes, the same moron of Abenomics money printing) said today that the world will now have a repeat of Lehman moment? It’s an open secret that the funeral pyre is being prepared for Deutsche Bank.

    This is it, in response to my own comment above regarding “How could Japan not have possibly imploded by now?”, when Abe himself has started talking about an implosion.

    Exchange Stabilization Fund cannot create new atoms of gold and silver out of thin air. Regardless of whatever unlimited power they’ve been granted:

    Exchange Stabilization Fund CANNOT DEFEAT THE LAWS OF PHYSICS!!!

  7. Wow, nobody else on this thread offering opinions on BitGold, just Nibiru dreams and drunken Australian reveries.

    I guess most of us are so used to crooked schemes these days, we think everything could be a con. I suppose the government could shut down BitGold if they outlawed gold ownership, but short of that it seems BitGold is a positive development. Turk says almost 1 million users. I predict this thing will really take off somewhere down the line.

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