HOW MUCH GOLD DOES THE U.S. REALLY OWN AND HOW MUCH WILL IT COST US?

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Two weeks ago we published an interesting article regarding the situation where the U.S. may or may not have enough gold to back our new U.S. currency when it debuts on the international financial marketplace. The United States Federal Reserve Note is soon to be history and it’s only a matter of time before it is replaced with a new U.S. currency that will have to be gold backed.

We received many positive responses regarding the article one of which was from a former client who works in the international institutional banking industry, which is completely different than the commercial banking industry we have become used to here in the U.S. These are the organizations that deal in assets with banking institutions that fund national central banks all around the world. These are the entities that own the real assets of the world, not the green backed paper with the ink that’s printed on it that we trade here in the West and call value.

Rita and I hadn’t spoken with each other for some time but she said she liked my article and it felt like old times. A mutual friend had sent the link of my blog to her. Back in the good ol’ days I used to tease Rita and call her “Lovely Rita meter maid” because she was a very lovely lady. She still is and very bright, a well educated woman who has always been very supportive of my writing. But this time she said there was “a problem” with some of the information I had provided. She zeroed in on the amount of gold I claimed the United States government claimed it owned. I thought the focus of her response to be odd since I had researched my information impeccably, but it was right at the center of what my article was about and I had to respect it. She was very succinct in what she said.

Regarding the actual amounts of gold in the United States I wrote that, “America claims to hold 8,133.5 tons of physical gold in its official reserves.” The disagreement my former client has with this figure is that she believes it is actually much lower. “I think the total amount is not the massive amount quoted with the real figure being far below the quoted figure,” Rita writes.

It is a fair response and I know Rita knows exactly of what she speaks. She’s been working the international financial industry game a long time, much of her time these days spent dealing with computers, financial documents, attorneys, banking officials, and members of international law enforcement. She’s precise with her work and provides specific statistics.

The problem is there is one factor that no one appears to have caught on to, Rita writes. “That is that the World Gold Council has stated that there have only been about 165,000 MT (metric tons) of the precious metal ever produced.”

That “official” figure had oddly grown since 2010 in amounts that make no historical sense. “Back in 2010 the figure was 135,000 MT (metric tons), so there is a 30,000 MT addition in 8 years which practically is just not possible because all the gold mines in the world cannot produce that much gold in 8 years, which is 3,750 MT per year,” Rita writes.

Rita is an international banking and precious metals expert and I trust her experience and reasoning for the steep increase in physical gold in U.S. possession. She’s saying that somehow Uncle Sam obtained it illegally. “Therefore I can only assume that the US is adding in some of the gold that they have stolen,” she writes. “In which case the real figure for the U.S. gold holdings is likely to be somewhere between 1,000 MT and 1,500 MT, if that.”

There are several disturbing prospects raised by Rita the first of which is that if she is correct, and the U.S. does in fact only have 1,000 MT to 1,500 MT of gold, then how does that figure suddenly rise to the 8,133.5 tons of gold I cited in my article? That’s the official figure. Or is the officially stated 8,133.5 MT figure a lie?

Rita writes that, “Russia and China are snapping up everything sold by the global legal bullion Markets, so the big question is, ‘Where has the United States suddenly got their gold from?????'”

DO WE HAVE THE GOLD OR DON’T WE?

If it’s true, that America has dramatically increased our amounts of gold assets, beyond the gold industry production capabilities, then how did we do that?

Rita says it’s obvious that we stole it from her clients. She sites specific U.S. military assets as being used in the transporting process. “We have calculated a loss of 1.2 million MT of gold from my clients’ banks,” Rita writes, “which we have traced as having been stolen by American interests, and shipped out … by U.S. Navy ships and U.S. Air Force C17 and C130 aircraft.”

Rita sites specific instances of United States government agents in the U.S. military as being responsible for stealing American gold from other countries around the world, particularly Asia and Europe, and bringing it back to American soil (or elsewhere). She also says we steal gold out of South America, The Middle East, and Africa. She says it’s been going on for a long time.

Which of course brings us back to: How much gold does America really have? Do we have enough gold to back a new currency to replace the Federal Reserve Note? If not, where are we going to get it from since the U.S. dollar is being replaced globally, and other countries aren’t going to sell us valuable assets like gold for worthless paper?

And if we do have enough gold to back a new U.S. currency, how did we get it? How much did we pay for it? Do we have receipts? Or did we steal it? And if so, wouldn’t we have to pay it back?

WHO’S GOING TO PAY WHOM FOR WHAT GOLD?

The number repeatedly stated by the government and media for the U.S. national debt is $21 trillion. Who is going to pay that off when the U.S. dollar crashes?

Michigan State University economist Mark Skidmore and Catherine Austin Fitts, former assistant secretary of U.S. Housing and Urban Development (HUD), claim that another $21 trillion has come up missing from audits of HUD and the Department of Defense (DOD). That’s another $21 trillion in debt our children and our children’s children are never going to be able to repay.

That’s $42 trillion of debt that we know America owes and then if we have to pay for the gold that Rita says was stolen by our government, how much would that cost us? How much would the interest alone be? To whom would we have to pay it back? And does that mean our families are going to be indentured servants in perpetuity?

 

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DOES THE U.S. HAVE ENOUGH GOLD TO BACK THE NEW U.S. DOLLAR?

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The U.S. dollar as we know it is about to be replaced by a new currency. We don’t know when. It could be this year, or maybe next year, we don’t know. The question is not if? the Federal Reserve Note (U.S. Dollar) will be replaced but when? When it does, it’s going to have to be gold backed with value. Real assets like gold will have to back the new U.S. dollar at least in part for America, and Americans, to get back onto the global financial carousel with economic independence and the ability to coexist with foreign currencies that are backed by gold.

The important question to us as Americans with family members to provide for and a desire to see our spending power grow is how much if any gold does the U.S. actually possess? A legacy of secrecy still surrounds how much gold America has, author James Ledbetter, editor of “Inc. magazine” and the author of “One Nation Under Gold: How One Precious Metal Has Dominated the American Imagination for Four Centuries”, writes for the Los Angeles Times. “Some of the conservative and libertarian figures who demand that the Federal Reserve be audited, for example, grumble that there may be a lot less gold — maybe none! — in Fort Knox than official numbers allow,” Ledbetter writes.

Others believe U.S. central bank vaults possess more gold than America’s been letting on to. On August 21, 2017, Bloomberg reported that U.S. Treasury Secretary Steve Mnuchin had paid a rare official visit to Fort Knox to in fact confirm the nation’s gold stash.

Is our financial inventory in tact? U.S. Treasury Secretary says it is, sort of.

“I assume the gold is still there,” Mnuchin, a former Hollywood producer, recently told an audience 40 miles north of the U.S. Bullion Depository. After the visit, the Secretary of the U.S. Treasury playfully reassured America that the treasure was still secure. But is it? What if Mnuchin is wrong? Or lying? And what if the U.S. really doesn’t have enough physical gold to back the greenback?

DO WE REALLY HAVE ANY GOLD?

Our President appears to believe in a gold standard but he has expressed doubts as to America’s status as a present legal custodian of the precious metal. “We used to have a very, very solid country because it was based on a gold standard,” Ralph Benko of Forbes cites President Trump in March 2016 as telling WMUR television station in New Hampshire, “but it would be tough to bring it back because we don’t have the gold. Other places have the gold.”

Other places have the gold and America does not? Could that be true?

As if doubling down on our president’s position regarding America’s gold possessions Benko cites Trump as telling GQ: “Bringing back the gold standard would be very hard to do, but boy, would it be wonderful. We’d have a standard on which to base our money.”

Which makes it all seem obvious that there’s no way the U.S. actually has the gold to back a new currency, right? Wrong, Ralph Benko writes, objecting strongly to the President’s position saying Trump has been misled to believe that “we don’t have the gold. Other places have the gold.” The United States, Germany, and the IMF have about as much gold as the rest of the world combined, Benko informs us, with America having well more than Germany and the IMF combined.

America claims to hold 8,133.5 tons of physical gold in its official reserves. Fifty-eight percent is reportedly held in Fort Knox, Kentucky, 20 percent at West Point in New York, 16 percent is said to be at the U.S. Mint in Denver, Colorado, and five percent is held at the New York Fed, an RT article says

Singapore’s BullionStar precious metals expert Ronan Manly is quoted as telling RT that America’s actual gold reserves are likely much smaller.

“The entire story around the U.S. gold reserves is opaque and secretive. There has never been a full independent audit of the U.S. gold reserves, and the custodians of the gold, the U.S. Mint and the Federal Reserve of New York will not let anybody into the vaults to view the gold or to count it,” Manly told RT.

Besides, even if there were gold in American vaults there’s a very serious question as to the purity of the precious metal.

“Even the details that have been provided on the supposed U.S. gold holdings show that a majority of the gold bars are low purity and in weights that don’t conform to the industry standard ‘Good Delivery’ gold bar specifications,” Manly is quoted as telling RT.

This would make the gold un-tradable on the international market because of its low quality. There have been rumors that in the past the U.S. government has attempted to pay off debts with China using tungsten bars painted gold. China was reportedly deeply unimpressed with this payment method and returned the tainted bars back to the U.S.

WHERE WILL AMERICA GET GOLD TO BACK ITS NEW CURRENCY?

Like they say, if you’ve got it, show it. There’s a major question as to whether America actually does have the gold to back a new U.S. currency. If we don’t, where are we going to get it and how much will it cost?

President Trump has already told us that we don’t got it and someone else does. We know Russia has been buying up gold like there’s no tomorrow. China’s Royal Families and Elders are said to possess tremendous amounts of “unofficial” gold and other precious treasures from the ancient past. If we don’t have it in the U.S., would we get our gold from Asian countries in spite of the trade wars, billions of dollars in tariffs, South China Sea military standoff, and North Korea?

Or would we get our gold from Russia whom we’ve been targeting with the nuclear war drum roll for decades? Would Russian President Putin just forgive the United States for bringing the Communist Curtain down upon all Russian people in 1991, the destruction of the ruble, and the deaths of more than a million Russian people whose lives depended upon it, and just give the U.S. another 70 million metric tons of gold as the Russian Tsar reportedly did back in 1913 to help gold back the Federal Reserve Bank and the U.S. dollar?

There are rumors, myths, and stories that there are other greater hoards of golden wealth stashed out there in other countries belonging to someone that has yet to be legally established in the public eye. Might they lend a few million ounces of precious metals to Uncle Sam to help us in a time of need? Or not?

The rest of the world is turning to a gold standard. Our president and members of congress think gold backing of the U.S. currency would be a good idea. The Federal Reserve Bank and the Federal Reserve Note are breaking. The U.S. dollar and all markets tied to it are exploding into thin air on a global scale. Who’s going to give America its gold and save us? Who’s going to give our families a break?

 

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Singapore’s BullionStar precious metals expert Ronan Manly is quoted as telling RT that America’s actual gold reserves are likely much smaller.

“The entire story around the U.S. gold reserves is opaque and secretive. There has never been a full independent audit of the U.S. gold reserves, and the custodians of the gold, the U.S. Mint and the Federal Reserve of New York will not let anybody into the vaults to view the gold or to count it,” Manly told RT.

Besides, even if there were gold in American vaults there’s a very serious question as to the purity of the precious metal.

“Even the details that have been provided on the supposed U.S. gold holdings show that a majority of the gold bars are low purity and in weights that don’t conform to the industry standard ‘Good Delivery’ gold bar specifications,” Manly is quoted as telling RT.

This would make the gold un-tradable on the international market because of its low quality. There have been rumors that in the past the U.S. government has attempted to pay off debts with China using tungsten bars painted gold. China was reportedly deeply unimpressed with this payment method and returned the tainted bars back to the U.S.

WHERE WILL AMERICA GET GOLD TO BACK ITS NEW CURRENCY?

Like they say, if you’ve got it, show it. There’s a major question as to whether America actually does have the gold to back a new U.S. currency. If we don’t, where are we going to get it and how much will it cost?

President Trump has already told us that we don’t got it and someone else does. We know Russia has been buying up gold like there’s no tomorrow. China’s Royal Families and Elders are said to possess tremendous amounts of “unofficial” gold and other precious treasures from the ancient past. If we don’t have it in the U.S., would we get our gold from Asian countries in spite of the trade wars, billions of dollars in tariffs, South China Sea military standoff, and North Korea?

Or would we get our gold from Russia whom we’ve been targeting with the nuclear war drum roll for decades? Would Russian President Putin just forgive the United States for bringing the Communist Curtain down upon all Russian people in 1991, the destruction of the ruble, and the deaths of more than a million Russian people whose lives depended upon it, and just give the U.S. another 70 million metric tons of gold as the Russian Tsar reportedly did back in 1913 to help gold back the Federal Reserve Bank and the U.S. dollar?

There are rumors, myths, and stories that there are other greater hoards of golden wealth stashed out there in other countries belonging to someone that has yet to be legally established in the public eye. Might they lend a few million ounces of precious metals to Uncle Sam to help us in a time of need? Or not?

The rest of the world is turning to a gold standard. Our president and members of congress think gold backing of the U.S. currency would be a good idea. The Federal Reserve Bank and the Federal Reserve Note are breaking. The U.S. dollar and all markets tied to it are exploding into thin air on a global scale. Who’s going to give America its gold and save us? Who’s going to give our families a break?

 

 

WHAT HAPPENED TO HR 5404 – AND THE GOLD BACKING OF AMERICA’S NEW CURRENCY?

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It’s tough being a kid growing up in these times of civil war and deprivation where censorship runs rampant and the many layers of falsehood are often confused for truth. We’ve seen up close the horrors of pain and desperation etched onto the faces of hungry American children and frail elders alike. Our food and water is poisoned, geoengineering is making us ill and destroying the environment in which we live, and fires endlessly burn us out of our homes, jobs, and air. The economy has turned many of us into financial slaves and we can feel the devastation of loved ones falling apart right before our helpless eyes.

Our children are our futures yet they suffer from the darkness of a financial insecurity of which they are yet unaware. Many families don’t have enough money to make ends meet on a monthly basis which means they don’t have the financial wherewithal to keep their families together, to fill their children’s bellies with nutritionally balanced meals, or to clothe them properly from head to toe. Choices with profound implications have to be made under every roof every day. Irreversible sacrifices are being taken. Bills are not getting paid, medicines or food or both are not being bought, and almost all of this has to do with scarcity in the name of the American Dollar

WHAT HAPPENED TO HR 5404?

One of our biggest problems is that the U.S. dollar has basically become worthless, rendering our purchasing power of goods and services in the marketplace to near nothingness. We’ve been fleeced through the last hundred or so years by the United States Federal Reserve, fiat currencies, and the Western Central Banking System. They who run finances have scraped 97% of the wealth out of the U.S. dollar which has benefited their well beings while we the average American family are left with the last three cents on the dollar which is backed by nothing but growing U.S. debt. Which is now more than $21 trillion dollars and that’s not counting the $21 trillion that has been proven missing from the HUD and the DOD. That’s at least $42 trillion right there that our children and their children and their grandchildren will never be able to account for.

Which all the more proves why it is significant that a Congressman from West Virginia has proposed a bill called HR 5404 to gold back the U.S. dollar. According to thedailycoin.org Republican Congressman Alex Mooney has proposed a bill that will “define the dollar as a fixed weight of gold.” Mooney wrote an op ed about it in the “Wall Street Journal”.

That’s right. It has been introduced into congress that America should return to a gold standard. This idea is not new though. Even President Trump told us back in 2017 that he would like to see America return to a gold standard. In a Forbes.com article entitled, “President Trump: Replace The Dollar With Gold As The Global Currency To Make America Great Again”, Ralph Benko writes that bringing back the gold standard would not be very hard to do with a president like Trump.

“Donald Trump shows a strong affinity for gold,” Benko writes. “He has also shown a keen intuitive grasp of how the gold standard was crucial to having made America great.”

So what this means is that our government is soon going to gold back the U.S. currency, right? That’s how it was supposed to be in the very beginning, before the Federal Reserve took over our country’s finances in 1913, right?

In proposing H.R. 5404 the U.S. Congressman from West Virginia criticizes U.S. monetary policy, citing the fall in the dollar’s purchasing power after the gold standard was abolished.

“The United States dollar has lost 30 percent of its purchasing power since 2000, and 96 percent of its purchasing power since the end of the gold standard in 1913,” the bill says.

The congressman goes on to describe the advantages of having a gold-backed dollar.

“The gold standard puts control of the money supply with the market instead of the Federal Reserve. The gold standard means legal tender defined by and convertible into a certain quantity of gold. Under the gold standard through 1913, the United States economy grew at an annual average of four percent, one-third larger than the growth rate since then and twice the level since 2000,” Mooney says.

This would be good for us but nobody even knows about it. Did you? Nobody owns gold, instead everybody trading in dollars that are debt backed, which is what the U.S. dollar is and what America runs on. That’s all any of us own with our present financial system, which is being run into the ground.

Congressman Mooney says that under the Federal Reserve’s 2 percent inflation objective, “the dollar loses half of its purchasing power every generation, or 35 years.” Think about that for a long moment. We own debt that backs our assets and that’s what we bought our houses with. Our families’ homes and our cars were bought with U.S. dollars backed by debt that loses half it’s value every generation.

So what does that really say about everyone’s pensions or real estate that is tied into the U.S. dollar? Is that why we’re struggling so badly to keep our families living in some semblance of the lifestyle we have become accustomed to after we divorce? Is there any such thing as the “American Dream” anymore? If so, should we consider whether this new legislation, H.R. 5404, should become law? Because our old system of monetary value has lost its “value”?

Like Congressman Mooney says, “American families need long-term price stability to meet their household spending needs, save money, and plan for retirement.”   These are the types of important issues we advise clients about to help them and their families stay ahead of the financial game and move forward in their lives. Meet spending needs, save value, and invest for ultimate retirement.

HOW MUCH GOLD DO WE AMERICANS OWN?

In an interview with the World Gold Council’s Gold Investor former Chairman of the Federal Reserve Alan Greenspan stated, “I view gold as the primary global currency.”

President Trump agrees. It’s been 34 years since U.S. lawmakers even tried to change the way America’s currency is backed, when Congressman Jack Kemp introduced the Gold Standard Act of 1984, which was cosponsored by seven others including Newt Gingrich and Connie Mack. It didn’t pass. 34 years later we have HR 5404.

Will it succeed? It has to if we as a country are going to succeed. Some believe we’ve made positive strides toward making gold backing of our currency a reality. “I think we are building a foundation of expertise — expertise that we didn’t have in 1980,” writes Nathan Lewis in Forbes in an article called, After 34 Years, We Again Have A Bill To Relink The Dollar To Gold“. “That will allow us to restore the united long tradition of gold-based money, when the political time is right.”

The question remains: when will the political time be right? And when it is right, who will be there to tell us how much gold, if any, the U.S. really owns to back the dollar?

 

THERE WAS A MAJOR GOLD RESET BUT NOBODY IS TALKING ABOUT IT IN FAMILY LAW — UNTIL NOW

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Is the American financial system really crashing?  And if so, what are the indicators we should be looking for?  ITM Trading’s Chief Marketing Analyst Lynette Zang says we’ve been getting signals of a crash for quite some time now.

The former stockbroker and investment banker says she’s been referencing what she calls “pattern shifts” that have been speeding up since October of 2017.  She notes that “insiders”, heads of corporations like boards of directors and CEOs, have been “running for the exits” financially.

Zang also notes how global Central Banks, “not in this country, and not in Canada, but everywhere else,” are massively accumulating gold.  Why are they doing this?  Why are some of the world’s biggest banks and corporate heads “massively accumulating gold”?  Could it be that the gold hordes will be utilized toward a coordinated backing of those nations’ currencies?

Zang says it only makes financial sense.  “Because gold is a savings based currency,” the chief marketing analyst says.  Zang believes other countries are accumulating gold in record numbers in preparation for the reset of the debt.  If we’re a family, for instance, and we have a financial crisis, we can bail ourselves out of trouble through our savings.  Theoretically, we can throw money at it and get out of that crisis.  That’s one reason savings are so critical to our families’ survival.  But if we have no savings when that next crisis hits, how do we get out it?

Same thing with nations.  And if you’re a huge government like the United States, and you seemingly have no savings, just a bunch of intertwined bureaucracies trying to take the thin margin of profit from one another, what are you going to do when there’s no margin left to loot?  Where’s the money going to come from?  Where as individuals are we going to get our family’s financial security from?  Lynette Zang says that’s when it’s time to start a new financial system.

COME ON.  A NEW FINANCIAL SYSTEM?

Zang says that the reason a country should have major amounts of gold in its reserves is because, from a national perspective, gold creates fiscal responsibility.  That’s why all the other countries are buying it up in record numbers.

Now as far as the reset is concerned, it is about resetting the debt.  Zang says that if the financial reset is on a global scale, which she believes it is, because all the countries are in major financial debt, then the countries with the gold are going to be the ones with the savings.  They’re the ones who are going to be able to do the business, because they have savings.  The United States is not one of those countries.  That’s how the wealth is going to be transferred.

THATS HOW THE WEALTH IS GOING TO BE TRANSFERRED?

That’s how the American dollar has gone.  In the beginning, it was 100% backed by gold.  Then it was 25% backed.  We were taken off of that during the Nixon administration in 1971.  If having gold is a sign of fiscal responsibility, America’s dire financial condition is a sign of our lack of fiscal responsibility.

Zang believes that we who populate the United States will ultimately end up with Venezuela style hyperinflation.  If you don’t know what that means, look it up.  A good majority of the citizens in Venezuela operate from below the poverty line.  Economists say we’re going to suffer a similar fate.  Our standard of living is going to shift dramatically.  Globally on average about 80% of the population ends up in abject poverty.  In Venezuela that number is ninety percent.

Venezuela did a formal reset of their currency to gold on February 9th of this year.  The price of gold went up that day.

When the system crashes it’s not like you’re going to take your gold and silver and bury it in the back yard.   What you want to do is be prepared.  Think about your standard of living, and do what you can do to sustain that.  Food, water, energy, security, community, and silver and gold as barter.  Small denominations to be used for a tank of gas or to go to the grocery store and purchase blueberries.

During a financial crisis like Venezuela has faced, gold or silver may not pay you interest, but it is the safest thing you can do currency wise.  Zang also says you want a certain amount of cash out of the banks, because we’re not going to be given notice when the bank is going to shut down, or we’re not going to be able to get access to the financial system.  The more digital the financial system becomes, the more important cash will become.

Zang refers to 1996 when the National Security Agency white paper on cryptocurrencies came out which referenced cryptos as being outside the system.  “They are private,” she says.  “They’re invisible.”  You can have them in a wallet.  Zang believes this might be stretching the true intentions of the coming financial system, but she can’t be sure.  She wonders whether by telling us cryptocurrencies are outside the system, that they really mean that cryptos are “the system” the globalist controlling Banksters want us to adopt.

Other sources have alluded to the concept that in the U.S. there’s going to be a gold-backed cryptocurrency that will replace the U.S. dollar as our national currency.  In either scenario, it sounds like we’d better practice up on our digital cryptocurrency skills.  And save some gold and silver buried under a tree.  And read up on Venezuela-style hyperinflation and what it’ll take to survive it.

 

 

 

 

GOLD THIS CHRISTMAS GOOD FOR FAMILY’S FUTURE

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T’is the season to be jolly.  And why not, it’s Christmas time, right?  We can afford to do what we want, take our families where they want to go, and be safe in all that we do.  Right?  For some, maybe.  For those that can afford it.  But the reality this Holiday Season is that most of us can’t.  Most of us are lucky if we can afford to put food on the table to feed our families.  There’s really no celebration for most of us.  It’s egoic.  It’s delusional optimism.

This Holiday Season moods are generally a little bit darker for very good reason.  Families are battling to survive.  Unemployment is at an all time high.  There is very little money trickling down into most folks’ pockets.  People are battling to get their bills paid.  Many of us are failing in health.  Our skin itches, our hearts ache, and our cells are being genetically modified by the chemtrails they spray on us, the GMOs they feed us, and the killer cells they vaccinate us with.

Just the other day I heard one poor, limping, old man, walking on a cane with discolored and swollen ankles, tell the nurse at the doctor’s office, “I think I’m slowly dying.”  And he was right.  We’re all dying slowly.  It’s part of the plan.  It’s called slow kill.  And while they’re doing their dirty deeds on us the central banksters are stealing everything we have, right from under our runny noses.  And it’s not because we’re asleep at the wheel, it’s because we’re being overwhelmed by the system.  And we have to fight back.  It’s literally a matter of life and death.  As Moe of the Three Stooges used to wax poetically, “We got to edumacate ourselves.”  We got to understand who’s fixing the screw to whom, and how.  And why.  And then we got to do something about it.  And the sooner the better, or we’re all going to become genetically modified zombies.  And that means our kids too.

We must understand that it’s all about them having everything, and us having nothing, if that.  We’re easier to control that way, we’re easier to eliminate when we’re sick.  It’s that master-servant thang for the survivors.  They, the central banksters, have all the money and corporations, the banks and the pharmaceutical and chemical companies.  We have sickness.  They also have all the banks, which are our lifeblood, and through which they control us.  Their central banks print up fiat dollars in the billions, ship them off to the other central banks at low interest rates, who in turn mismanage it well enough to divide amongst themselves.  And we foot the bill in the form of debt.  And the battle rages.  And the family suffers.

We battle amongst ourselves for scraps.  We battle for religion.  We battle for race.  We battle for police not to shoot us in the backs.  And where’s all the battling getting us?  It’s getting us shot in the back.  And that’s not really helping our families survive.  We’ve got to be much smarter than that, because if we’re not, our families will not survive into the next holiday season.  The truth is we must wake up, and we must do it fast.

We must understand that the real trench warfare of this battle for life and death is being fought right now in the financial arena.  That’s where the winners and losers in life are decided.  That’s where it’s decided whether our children will live or die, be sick or healthy, have futures in prison or not.  It’s the playground of our handlers.  And it’s critical for all of us to understand how America’s reserve currency system stands up against the realities of our family’s existence.

It’s reasonable to assume, first of all, that the central banksters, along with our government, do not want gold to go into backwardation.  That’s because if people understood what it meant, they’d want to own gold, and not the worthless paper the Fed prints up and calls the dollar.  Remember from our last time that according to James Turk, there are two types of backwardation, money backwardation and commodity backwardation, and they both apply to gold.  Backwardation is a mathematical result that reflects the cost of money as measured by the interest rates of one national currency relative to another.

The U.S. government does whatever it needs to assure that the U.S. dollar remains the world’s reserve currency.  However, presently, market forces appear to be prevailing over the United State’s central bank’s attempts at controlling interest rates.

All national currencies have an interest rate, and so does gold.  It’s called GOFO.  And this is the interest rate at which gold is borrowed or loaned.  The reason gold has an interest rate is because it is money.  The problem was that in 1971, the governments of the world, led by U.S. President Nixon and the Federal Reserve, tried to convince the world otherwise.  They went off the gold standard, confused a lot of people, but never really changed the fact that gold was money.

When one begins to realize that gold is presently in backwardation, and its interest rates are higher than the dollar, he or she will begin to understand why our buying power is going down the tubes along with the dollar.  The interest rates we are dealing with are a direct reflection of the risk of debasement of our national currency.  Since you can’t print too much gold, it cannot be debased like other national currencies.

So how could gold’s interest rate be higher than that of the U.S. dollar?

The answer is it can’t.  Not in a market that goes without government intervention.

“Gold backwardation is an abnormal condition,” Turk says, “but theory and practice are different things. It is extremely rare for gold to be in backwardation, but it does happen when governments intervene in the market process.”  This is where gold is different from other commodities such as oil, soybeans, and pork bellies, all of which are frequently in backwardation.  Gold has an interest rate, where all other commodities like sugar, corn, and lumber do not.  Their “cost of carry”, according to Turk, “to determine their future price is based mainly on warehousing fees that need to be paid for their storage.”

Another reason gold is money is because it is accumulated, where commodities are consumed and disappear.  Gold backwardation is a unique event.  It can’t happen in theory, but it does take place when governmental central bankster intervention loses its desired effect, and market forces overpower the government’s attempt to manipulate them.

Previously, gold backwardation has taken place twice, and both times market forces overpowered government interventions that were bent on manipulating interest rates.  Turk says that gold backwardation does occasionally occur in spite of government intervention “because central banks cannot print physical gold to alleviate demand pressures.”

A shortage in supply indicates that unless demand for gold slackens or the supply increases, the price will go up.  And right now, according to Turk, there is a “strong demand for physical gold” and “a decline in demand at current price levels seems unlikely.”  To contrast this, national currencies, the supply of which can be increased to any quantity by a flip of the printing press switch, physical gold only comes from two sources:

  • New mine production, and
  • Existing aboveground stock

Mine production yields are relatively insignificant.  And above ground stock of gold “grows consistently year after year by 1.8% per annum,” Turk says, which doesn’t come close to satisfying the current global demand.  Thus, the present shortage of gold can only be “relieved from its existing aboveground stock.”  The only way for that to happen is for the gold price to rise high enough “to entice people to exchange their physical metal for dollars.”  Which is what has happened every time gold has gone into backwardation in the past.

It seems safe to say, buy gold, now.  Physical, in pocket, in hand.  It’s stronger than currency.  It’s stronger than dirt.  And it can save your family.

PEACE

From the Law Offices of Donna Santo, we wish a Merry Christmas to all, and to all a gold night.

CENTRAL BANKS/GOVERNMENT BATTLE FAMILY FOR PURCHASING POWER

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To understand finances in any meaningful way – where one might actually be able to help his or her family survive the oncoming financial collapse – one must at least be aware of how central banks play with our purchasing power, and how that relates to interest rates and gold.  To help shed some light on this financial shadow, James Turk, writing for Goldmoney, alerts us to a financial indicator called backwardation. According to Turk, there are two types of backwardation, money backwardation and commodity backwardation, and he iterates that “both apply to gold.”  He explains that backwardation (and something called contango) are “a mathematical result that reflects the cost of money as measured by the interest rates of one (national) currency relative to another.”  Okay, and…uh…what exactly does that have to do with the price of milk in Ventura? Turk goes on to explain that interest rates are set to reflect the risk that the currency might be debased through governmental and central bank policy.  In other words, we, the consumers, who presumably are the “market”, would lose our purchasing power due to central bank manipulations that could thwart “real and accurate price discovery” in the marketplace.  Hmmm, now why would a central bank like our Federal Reserve debase the value of our hard earned dollars to make it so we had less purchasing power? In 2008, Chris Powell of GATA.org asserted that, “There are no markets anymore, just interventions.”  Which means that the interest rates we deal with today that affect our purchasing power are not so much a reflection of true market conditions, but result from “heavy-handed central bank manipulations” that Turk says thwart “real and accurate price discovery by the market.” But Turk also emphasizes that central banks can only push so far (a limitation he calls “pushing on a string”) before market forces begin to push back.  Central banks in countries such as South Africa or India, whose interest rates tend to remain relatively high as compared to other currencies due to the fact they have a greater risk of being debased by government and central bank mismanagement, might then lower their own interest rates.  This would cause holders of the rupee and rand to sell the currency, which in turn would cause the exchange rate to drop.  This is because the risk of holding those currencies at lower interest rates would be perceived as being too great compared to other less risky investment opportunities for one to place their liquid capital (money). So, it appears there are limits as to how much damage “central bank intervention” can actually cause our families, or what it might be able to accomplish.  And based on what Turk says, this is because the people of the world, who we call the “market”, act as a “guardian that carefully watches central bank tinkering and responds to it by moving their money around to better suit their risk preferences.” But what if we don’t have any money to move around to better suit our risk preferences with?  We’ll try to figure this out.  And more.  As this discussion about family finances, central banks, interest rates, and gold continues…