The U.S. financial and political system has become possibly the most corrupt system in recorded history. But even worse is the willingness of the American public to endure and even accept the blatant corruption that has engulfed the system. The latter attribute is best explained by the psychological phenomenon known as “Stockholm Syndrome.”
The poster-child for this analysis, of course, is Hillary Clinton. Clinton should be spending all of her time defending herself from being thrown in jail for life. Instead, she gets annihilated in the New Hampshire primary voting and yet comes away with the same number of delegates as her opponent. It’s almost as if the more evidence is released which shows that Hillary Clinton broke laws and seriously compromised national security the more popular she becomes with ideologically blind Democrats.
Same for Trump. The only reason he has achieved some measure of support is because he’s willing to challenge the long running corrupt establishment politicians and there’s enough people who sense that the crux of the problem is Washington DC. But Trump is not the solution to the problem – he’s part of the problem from the Wall Street side of the equation. Trump is the guy who has run his casino “empire” into bankruptcy three times – “Chapter 33” (Chapter 11 x 3). He’s no more qualified to run the country than is a pedophile to run a daycare center.
As for Wall Street, I’m watching in horror as the same problems that blew up the financial system in 2008, problems which were never fixed, have become even bigger and more dangerous. Yet the public whistles by the graveyard as they are about to be subjected to money market fund gates and a cashless monetary system. The EU is getting ready to abolish the 500 euro note. And Larry Summers, one of the most insidiously corrupt public officials I’ve seen in my lifetime, has proposed abolishing the $100 bill. And no one cares.
A digital currency system not only will enable the Government to monitor everything you do with your money, it will also enable them to more easily “corral” any money you keep in a bank in order to use that capital for the bail-ins which will inevitably hit the system when 2008 Redux hits the system.
It’s not a secret to anyone paying attention, but the Government spending deficit is on the cusp of going parabolic. The one-time accounting games and fleecing of Fannie Mae and Freddie Mac to help “fund” Government deficit spending and to enable the appearance of of a smaller deficit are now used up. No one seemed to care, but the amount of Treasuries outstanding jumped up by about $700 billion to $19 trillion right after Congress and Obama raised the debt ceiling limit to $20 trillion. Folks, that’s money that has been already spent but which was hidden from the actual 2015 spending numbers by Jack Lew’s magic accounting wand.
Now that China is openly liquidating its Treasury holdings, the U.S. Government will need to find another source of funding for its Ponzi schemes. Enabling “gates” on money market funds will help the Government channel big waves of capital into Treasury bonds via Treasury mutual funds. Notice there have not been any proposals to gate those. It’s another backdoor bail-in that will be implemented on a complicit public.
I said back in 2003 that the powers that be would hold up the system with printed money and credit until they were done sweeping every last crumb of wealth off the table and into their pockets. But I had no idea what that process would look like. Now I’m starting to see how my prediction is unfolding and I will admit it’s clever. It’s the “boiled frog” strategy being executed with near-perfection.
Money market mutual fund gates, which go into effect in Q3 – and a digital currency system – which could go into effect before the end of the year – are nothing more than totalitarian capital controls in disguise. I have no expectations other than that the public will embrace them with eagerness as I suspect they’ll be shoved down our throats in the name of national security.
For anyone who “gets it” and who is paying attention to what’s happening, my best advice is to start moving as much of your money out of mutual funds, retirement accounts and banks and into physical gold and silver that you safekeep yourself. Ironically, at a time when the eschewal and ridicule of precious metals by the media and the clueless masses has reached an epitome, now is the best time since the bull market began to convert fiat currency and custodial-held wealth into gold and silver bullion.