GOLD WARS: TRUE HISTORY OF GOLD AND THE GLOBAL FINANCIAL SYSTEM, Vol. 8: Q: Does America have enough gold to back the U.S. Dollar and bring HR 5404 to life? (Hint: The answer depends on whose math you use)

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You remember what they say about assume, right.  Don’t do it because it’ll make an ass out of u and me.  Don’t assume is the rule, but sometimes you’ve just got to do it because it’s all they give you when you’re trying to solve problems. 

An assumption is like talking about The World Gold Council (WGC) figures on the world’s gold reserves.  Do you believe their numbers?  Many don’t.  Did NASA really land on the moon?  Is the Pope really Catholic? 

What else do you go by if you don’t believe what they tell you?  Where else do they give you figures on the world’s gold supply that might even seem remotely close to being believable? 

That’s why sometimes for arguments sake you’ve just got to assume that what they’re telling you is correct.  I’m a lawyer, I should know.

So, for the purpose of this discussion, and assuming the posted World Gold Council figures have some degree of accuracy for international gold holdings, the top 40 countries and financial institutions are as follows: 

Top 40 according to World Gold Council’s latest rankings (as of September 2017)

Rank Country / Organization Gold holdings (tonnage)  Gold as % Forex
0 Total Top 40 31,721.1  
1 United States 8,133.5                            74.6
2 Germany                                 3,374.1                             69.1
3 The IMF 2,814.0                             N/A
4 Italy 2,451.8 67.2
5 France 2,435.9  65.0
6 China 1,842.6  2.4
7 Russia 1,729.4 16.8
8 Switzerland 1,040.0 5.5
9 Japan 765.2 2.5
10 Netherlands  612.5 66.0
11 India   557.8 5.8
12 The ECB  504.8 24.0
13 Turkey  482.9 18.3
14 Taiwan  423.6 3.7
15 Portugal  382.5 58.6
16 Saudi Arabia  322.9  2.6
17 United Kingdom 310.3  7.2
18 Lebanon 286.8 21.6
19 Spain 281.6 17.5
20 Kazakhstan  280.9 34.8
21 Austria 280.0 53.7
22 Belgium 227.4 36.5
23 Philippines 196.4 9.8
24 Venezuela 188.1 71.3
25 Algeria 173.6 6.2
26 Thailand 152.4 3.3
27 Singapore 127.4 1.9
28 Sweden 125.7  8.0
29 South Africa 125.3  10.8
30 Mexico  120.1 2.8
31 Libya  116.6 6.6
32 Greece 112.9 65.6
33 South Korea 104.4 1.1
34 Romania 103.7 9.4
35 The BIS   103.0 N/A
36 Poland 103.0   3.8
37 Iraq 89.8 8.0
38 Australia 79.9 5.5
39 Indonesia 79.3 2.6
40 Kuwait 79.0 8.8

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

Going back to my earlier HR 5404 article, my focus was on how we are going to back a new U.S. currency, not the present Federal Reserve Note known as the U.S. dollar that I believe is going to be replaced.  Precious metals analyst and adviser Gerrit Visser speaks in terms of gold backing the FRN as it presently exists in relation to the Federal Reserve Bank system, which I believe will ultimately be dismantled by President Trump.

Whichever U.S. currency we end up with the issue for discussion now is this:  Does America have enough gold to back the U.S. Dollar?  Visser says he doubts it but the only way to figure it out for sure is to do the math. 

Based upon the above figures, and again assuming they are accurate, as of September 2017, America had 8,133.5 MT of gold, which in troy ounce terms equals 261,482,021.84 troy ounces.

“Let’s now multiply that figure by today’s (November 21, 2018) market price of $1,222.00 per troy ounce which equals a little more than $319.5 billion USD,” Visser says.  “We will note that the United States has a published national debt on November 21, 2018 of $21.4 trillion, with a gross national product (2017) of $19.61 trillion USD and a gross domestic product (2017) of $19.39 trillion USD.”

Taking all of the above figures into consideration has the math falling obviously short.  “The U.S. only has a little more than $319.5 billion USD in gold value as part of its national reserves, which is intrinsic value or real value against a real asset,” Visser says. 

With this amount of gold at these metrics the U.S. could not pay off its debt even if it wanted to because it doesn’t have the reserves it needs to pay the debt and keep the economy going.  The numbers don’t lie.

LET’S LOOK AT THE U.S. DOLLARS IN CIRCULATION

And that’s doing the math using the stated government figures.  If we used Visser’s figures in the calculation, then we would have to add an additional $8 trillion dollars in circulation to the equation, which totally messes everything up.

“Let’s now take a look at the U.S. dollars in circulation, as stated by the U.S. Federal Reserve as of September 26th, 2018, which equals $1.69 trillion USD, which is grossly under-stated, probably deliberately,” Visser says.  “Please note that I totally dispute this Federal Reserve figure.  Because we are aware of $8 trillion USD, largely in $100 USD denomination, being printed illegally against gold bullion certificates that neither the Federal Reserve or the U.S. government (Treasury) own or hold legal title to, so I am going to use the known and accurate figures I have.  Our records indicate there actually being $9.69 trillion USD in circulation, not the $1.69 trillion USD as stated by the Federal Reserve Bank.”

Stunning if true.  That would mean there’s an extra $8 trillion USD in circulation in the world that is not recorded at the Federal Reserve Bank.  Why do you suppose that is?  Might it be to avoid liability at some future date when other creditors call on the debt?  Talk about inflation.

There are other ways for the ‘Fiat Money’ financial system to hide money in circulation as well.  “In addition to the above there are the Federal Reserve ‘(Secret) Trading Programs’ that generate an awful amount of money from thin air, so even the figures I have available to me ($9.69 trillion) may be grossly understated,” Visser says.

GOLD MATH ON WHAT WE HAVE

So back to the calculations between gold and the U.S. Dollar, using the November 21, 2018 figure of $1,222.00 as the price of one troy ounce of gold.  One troy ounce equals 31.104 grams.

This means on November 21, 2018 a $1 USD note would need to be backed by 0.02545335515 grams of gold, or, 0.00081834437074893 troy ounces for U.S. Dollars to truly be gold backed. 

Which means a $100 USD note would need to be backed by 2.545335515 grams of gold, or, 0.081834437074893 troy ounces. 

Such collateral backing with gold would ensure that the U.S. dollar is actually worth $1 U.S. dollar based upon the November 21, 2018 gold price of $1,222.00 per troy ounce.

Now let’s try using Visser’s stunning figure of $9.69 trillion USD being in circulation — and that is assuming that there isn’t more U.S. dollars in circulation that we don’t know about, and that is not accounting for U.S. dollars created by ‘(Secret) Trading Programs’ — “America would need a staggering 254,947,606,050.266 troy ounces which equates to $319.078754081 billion USD value of gold just to back their own currency, at today’s figures (November 21, 2018 gold price),” Visser says.

Based upon the above math, Visser believes the U.S. does have sufficient gold to back the U.S. Dollar, but barely, provided it is not totally used by the U.S. to pay off debt.  However, that leaves nothing extra to “collateralize” the printing of more U.S. Dollars in the future, so no sustainability or stability, and certainly no expansion of the U.S. economy after 2018.  “That scenario leaves nothing in reserve after 2018, and those very small figures of differential could be taken up by paying off, in part, the U.S. debt,” Visser says.

U.S. DOES NOT PRESENTLY HAVE ENOUGH GOLD TO BRING HR 5404 TO LIFE

Either way, in a best case scenario the United States does not have enough gold to bring HR 5404 to life.  With insufficient amounts of precious metals available on the open market and there seemingly being no other nation or present financial institution capable of or willing to give to the U.S. the amount of precious metals it needs to back the U.S. Dollar, while keeping the U.S. economy humming and growing, will the U.S. government finally look inward, and review their own records of international treaties, agreements, and related documents, in an effort to understand who in the past financially backed the U.S. Dollar? 

And let me give you a hint, Uncle Sam:  It was at a time when America and her ‘Allies’ turned their backs on those they had just signed treaties with to gold back the national currencies of the world, including the U.S. Dollar.  The intent was to essentially gold back global currencies in an effort to rebuild the world in a coordinated effort that would actually benefit humanity, but of course this was not to be.  For the proposed global currency gold-backed financial system had to be destroyed, its history rewritten and memories buried, and its precious metals and ancillary historic accounts stolen by the Globalist-backed central bankers to be used against the development of mankind.

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GOLD WARS: TRUE HISTORY OF GOLD AND THE GLOBAL FINANCIAL SYSTEM, Vol. 6: Where did all the gold come from to back the global currencies prior to 1971?

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International financial and banking expert Rita R. liked my gold blog about HR 5404 entitled “WHAT HAPPENED TO HR 5404 – AND THE GOLD BACKING OF AMERICA’S NEW CURRENCY?” so much she forwarded it to her dear friend and precious metals analyst, Gerrit Visser, who liked it so much he wrote back to me with detailed explanation as to exactly what’s wrong with America’s gold picture, HR 5404, and what it will take for the U.S. to fix its desperate financial crisis.

“The reason I write to you is that this is a subject which I am involved with on a daily basis, and a subject likely to become a highly contentious issue as time moves on as the ‘Gold Backed Currency Lobby’ gains far more traction,” Visser says.

The truth is finally beginning to come out.  Our “Fiat Currency” financial system is finally reaching its end.  Those who work in the international economic circle of understanding true history and how it creates today’s intricate global financial reality know that the world is presently pivoting away from central banking and “Fiat Currency” toward a global system of gold backed national currencies.  Some experts further believe this will eventually lead to the formation of a single new world gold-backed reserve currency; one that will not be run by traditional central banks, fiat currency, evil Globalists, Democrats, the U.N., the IMF, or Chinese Communist Technocrats.

My HR 5404 article has garnered attention from some of the right individuals because it stirred up many of the right questions at the right time, the most important of which is:  Where is America going to get the gold required to back its future U.S. currency?  We can’t have one without the other.  It’s a question everyone should be asking because it affects us all and is our ticket out of debt slavery and into a potential prosperous future in this country and abroad. 

The world has done this before.  We’ve changed global reserve currencies.  We’ve gone from the ‘Franc’ to the ‘Pound’ to the ‘Dollar’.  And we’ve also gone to war over the issue disguised as ideological, religious, or territorial disputes many times through the last hundred years alone.  Why is that?

The U.S. Dollar is going to go the way all fiat currencies eventually go.  The big question here is, How are we going to get out of this financial mess we’re in when it all finally does blow up?

Most importantly, my HR 5404 article stirred up in Gerrit Visser a desire to explain to my clients and readers the various factors which are usually overlooked by the public as the existing media and government narratives continue to mislead us to where we never become fully aware of the “deep rooted factors” surrounding the true issues of financial recovery for the U.S. Dollar-supported Western World. 

There is and has been for over a hundred years a solution to our financial system problems.  It’s going to be painful and it will take time and we’re going to have to study and search for answers, and the precious metals analyst here and financial experts elsewhere are supplying us with really huge clues.  There’s a lot more going on behind the curtain of international gold holdings that “officials” are not admitting to and these precious metals are at the centre of our future and past gold backed currencies.

PRIOR TO 1971 GLOBAL CURRENCIES WERE BACKED BY GOLD AND SILVER

The media and many financial historians and prognosticators seem to have forgotten that prior to August 1971, all currencies around the globe were fully backed by gold and silver.  “That factor alone determines that there was more gold and silver available in the world than stated by The World Gold Council (WGC), who estimates in 2017 that all the gold ever mined totalled 187,200 metric tons, with an estimated 52,000 MT yet to be mined,” Visser says.

What we are given are false statistics to base our math on.  But that’s all we have to go with officially.  The WGC states that currently in the world there are approximately 165,000 MT of gold in the hands of central banks, private investors, and the public, the latter as jewellery, collector’s items, and commercial operations for such items as printed circuit boards, electronics, etc.  There really are no other trustworthy figures to go by.

So we are supposed to believe that this is all the world’s gold; what they tell us the world has mined and is capable of mining, but is it the truth?  Visser doesn’t think so. 

“Gold has been mined for over 6,000 years.  Accurate records of production have only been kept for approximately 150 years.  So there is bound to be a discrepancy, quite a large one, in fact.  In the figures stated by the WGC where 187,200 MT have ever been mined seems to be a very, very low figure in comparison to actual figures.  The difference is not held by central banks, commercial banks, jewellers, collectors, or commercial operators,” Visser says. “Much of the world’s gold is held legally, on and off record, by the owner of the trust that is the world’s largest gold facility.”

PRE 1971 ALL COUNTRIES BACKED THEIR CURRENCIES WITH GOLD

Prior to August 1971, all countries were required by law to back their currencies with gold.  “There are over 200 countries in the world, so if we divide 165,000 MT of gold (The World Gold Council figures) by 200 it equates to an average of 825 MT of gold per country.  Of course in this equation many countries will have less than that figure and some countries will have more than that figure,” Visser says.

Now let’s take an average gold price per troy ounce of over 31 years (1940 – 1971), which equals 36.314 US dollars per troy ounce, he says.  Let’s multiply that by 26,524,370 troy ounces (825 MT) which equals $963.37 million USD.

That is the amount we would have to back the U.S. Dollar using the 825 MT gold figure.  Is that enough to keep America going strong?

“To answer your question, Michael, that is not a lot of money to back a nation’s currency, even the currencies of some of the smaller nations of the world.  So the question arises as to where did all the gold come from that was used to back all the currencies of the world and allow those countries to expand their economies?” Visser asks.

If America doesn’t have enough gold holdings to actually back either the U.S. Dollar in it’s present format or a new U.S. currency, then it would still have to get gold from somewhere else in the world.  That’s not going to be easy to do.  Ask gold analyst Rob Kirby and you would know that tonnage of gold is very difficult to find on the open market.  There’s not enough available for everyone.  Many nations are completely going without any precious metals officially being logged into their national treasury books.

WHERE DID ALL THE GOLD COME FROM TO BACK THE WORLD’S CURRENCIES BEFORE 1971?

“The answer is, and you know it as well as I do, but it’s the historical gold facility we’ve been talking about.  A facility that owns the wealth of the world, in terms of precious metals.  That is not a title held by the U.S. or the Federal Reserve Bank, or anyone else.  They do not own the wealth of the world,” Visser says.  “They say they own the wealth of the world, but that too is fraudulent.”

The historical precious metals and ancillary accounts ‘Trust’ the gold analyst and adviser speaks of is the most valuable trust in the world and is actually a very old gold facility spread throughout the world in depositories and the like.  It is made up of tremendous wealth that has been utilized several times throughout history in an effort to try to cure the global financial system once and for all of the evil controlling mechanism that is the Central Bank Fiat Money System. 

But those on the side of good who own the gold facility have faced tremendous odds and murderous attack from central bankers, corruption, terrorism, war, political manipulation, and mercenary, corporate, and military intelligence operations.  The mainstream, independent, and Internet media play a major part in misrepresenting the true state of global economics and the true history of what a solid gold backed financial system actually looks like.

It is all controlled from above by an octopus of central bankers, with it’s many dangling tentacles intermeddling in many things in many places.  They had to steal the wealth of the world that was intended to back a solid global financial system, in order to accomplish their control and smoke and mirror manipulation that has continuously fed their corrupt financial system, because they did not own the assets themselves.  Just ask Rob Kirby, Catherine Austin Fitts, and Michigan State Professor Mark Skidmore how money gets stolen and converted into the “dark” in this country.

“That’s one reason why all that gold that had been assigned to the countries of the world to back their currencies became unencumbered as of August 15th, 1971, when the gold standard was officially removed by an act undertaken by U.S. President Richard Nixon,” Visser says.  “The world’s gold was returned to the historical gold facility, except for that gold which was specifically assigned to America, who stole it using it to feed the ‘Fiat Money’ machine and illegally pay off some U.S. debt.” 

The whole purpose of leaving the Gold Standard and feeding us a steady diet of “Fiat Money” was so those controlling The Federal Reserve Bank system could not only control us through their slave finances but shift their complete attention and tremendous resources into once and for all stealing the gold that had been used to back the global currencies of the world in the first place.  It’s all about reaching financial critical mass globally.  Own the world’s precious metals and you own the world.  Go to war.  Conquer people.  Steal their gold.  Gold wars.  That’s what’s really going on.

GOLD WARS: TRUE HISTORY OF GOLD AND THE GLOBAL FINANCIAL SYSTEM, Vol. 3: Is that really an audit of U.S. gold holdings?

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Gold is more precious than ever.  On a global landscape countries and financial institutions are playing major games behind the scenes jockeying for tonnage of precious metals.  Many billions of dollars worth of fiat money is lined up to get into physical metal and it’s tough to find. They’re doing it for a very good reason as the financial system leans on the brink of total disaster and the future is going to have their gold backing.

Very few people in the world, maybe a dozen or two, legally arrange for the sales of tonnage of gold and other precious metals for wealthy people and macroeconomic analyst Rob Kirby of KirbyAnalytics.com is one of them. 

Kirby’s an expert on world gold sources and a huge critic of the U.S. Treasury and the Federal Reserve Bank.  He’s trying to get a big book published on the “gold suppression movement” and he thinks many central bankers are going to be hung by their necks.  He understands that countries and central banks are scrambling to possess, purchase, and / or steal whatever amounts of the precious metals they can get their dirty little hands on.  He knows the dollar backed markets are in trouble all over the world, national GDPs are down across the board, and bonds are showing major signs of stress. Rising interest rates have created major stress in the automobile and housing markets.  The financial system appears to be stretched to the limits and everyone is looking for a way out and gold is the answer to many experts.  The global financial world is slowly moving its way toward a new gold standard.

That’s why in a recent interview with Greg Hunter of USAwatchdog.com Kirby found himself discussing the validity of a November 9, 2018 Treasury audit report from the OIG, Office of Inspector General.  The issue is audit and the question is whether the U.S. really has the gold they say they do to back their new currency.

The report is about U.S. gold holdings and it’s called, Audit of the Department of the Treasury’s Schedules of United States Gold Reserves Held by Federal Reserve Banks as of September 30, 2018 and 2017.

The first question in anybody’s mind who follows gold is, Did they really audit our gold reserves?

Nah, the gold expert answers without apology.  It’s not even an audit to begin with.  “Well, it’s not an audit to begin with,” Rob Kirby says.  “It’s really about as material as Treasury Secretary Mnuchin when he visited Fort Knox and came out of a brief visit and said gold is safe.”

Steven Mnuchin tweeted that out but that didn’t tell us how much gold we have.  “We all know that gold is safe.  But saying that gold is safe says nothing to the notion that Fort Knox gold has not had a credible audit since the Eisenhower Administration in the 1950s.  And if you read into this November 9 publication you will see very quickly that it says they’ve audited the schedules that were provided,” Kirby says.

U.S. auditors have done basically a read-over of the paperwork provided to them by the Treasury, but no actual inspection of precious metal.  “And they’ve given an opinion:  Yeah, it looks like it’s all in order.  But that in no way constitutes an audit in physical gold claimed to be held by the U.S.government,” Kirby says.

This is not an actual audit which would require a lot of work.  The gold expert says a credible audit of the U.S. gold reserve would entail quite a number of people with a lot of professional expertise.  People to assay bars.  “This is something that’s quite time-consuming and what’s presented in this publication in no way constitutes a credible audit of U.S. sovereign gold,” Kirby insists.

So why would the U.S. put this out now saying we’ve audited the gold and everything’s okay?

There’s a great reason why they’d be pushing this out right now, Kirby says.  It’s called financial disclosure.

“It was just last week an ex trader for JP Morgan admitted that he was rigging the gold market for a period of six years with the full knowledge of senior people in the bank. And he stated in his admission that he had learned how to rig the market from more senior traders than himself,” he says.

But why say the eight thousand tons of gold is safe?  Is it to reassure American taxpayers?

“Look, the price discovery that we have for precious metals is largely set through the Comex exchange in New York and the LBMA in England and these markets are virtually all paper, where the price of futures are used to achieve price discovery for metal,” the macroeconomic analyst says.  “And the amounts of paper that gets sold versus the amount of physical metal there is to back the paper selling.  You’re talking about hundreds – I believe on Comex right now it’s around 360 paper ounces are sold for every ounce of deliverable metal they have in their warehouses.”

The price discovery process as we know it cannot differentiate between a paper ounce and a physical ounce.  “So they’re using this paper price discovery system which amounts to basically nothing but naked shorting of metal.  They use this fallacious price discovery system to price real physical metal. And the reality is this is bogus. And people are getting it.  This is becoming more widely understood. Certainly in foreign markets. But even here with the great unwashed – people are beginning to realize that things aren’t right,” Kirby says.

People intuitively know that precious metal is precious, Kirby says.  It’s called precious metal because it is precious.  “And it’s dear and it’s rare.  And people intuitively understand precious metal should be reacting differently than it has in the wake of geopolitical uncertainties, international financial dis-equilibrium.  The price of precious metals has not been behaving due to this false price discovery mechanism that we’re all subject to,” he says.

Metals have not been behaving the way they historically have and should be.  This is why Treasury Secretary Mnuchin trots out the goods or the wares to make people feel more reassured that nothing is amiss and America has all the gold that it claims to have.  Look, we have a fresh new audit right here that says all is good.  But is it really?

“Well, the reality is all is not good,” Kirby says.  “There’s been a lot of chicanery that has occurred in the precious metals markets.  As evidenced by the admission of JP Morgan ex trader just last week.”

The markets have been rigged and evidence of this is spilling back into the markets.  Both Australia and Venezuela have asked for their gold back from London but they have been denied.

And there’s precedence for this too, Kirby says.  It was five years ago in 2013 when Germany asked the American Federal Reserve if they could come and audit their gold that the Fed was holding for them in trust.

“They wanted to come in and look at the bars and inspect the bars and assay some of the bars, and the Fed said no you can’t do that,” Kirby says.  “And the reason that was offered at the time was we don’t have the room to allow you to complete this.  We don’t have enough space to accommodate you and your request.” 

It was not long thereafter that the Germans said well if we can’t audit our gold you’re holding for us we’d like some of it back.  And then they were told no to that as well.

So why is everybody hanging onto their gold?  We have Venezuela and Australia being stiffed by London.  Are they holding it because they think there’s going to be some sort of a reset?  Or are they holding it because they know gold is going to explode in value? 

“A reset will come at some point in the future,”Kirby assures us.  And it may be very close at hand, or it may not.

The debt is colossally overpriced.  And the price of gold is colossally undervalued.  “So a reset would mean that the value of debt, or the value of bonds is going to take a big haircut as the price on the bonds is going to go down dramatically, which would imply that yields have to go up and the value of precious metal has to go higher because there’s an insatiable demand for physical precious metal in the world today,” Kirby says.  “And central bankers are accumulating gold today at a rate they haven’t done in literally decades upon decades.”

Real Eastern money isn’t biting on Western banking sorcery where the financial powers work hand in foot with the lapdog mainstream media promoting alternatives to physical metal like GLD and SLV in silver, different sorts of certificates and paper programs where they sell people promises of gold but not the real thing. “People in the East, the Asians, the Russians, they’re well up the curve on the truth that the metal markets have been rigged with the futures markets and the paper price and that’s why when they buy precious metal they demand physical bars.”

Banking in gold is completely different in the East than it is here in the U.S.  Kirby calls it dislocation.  “If you’re talking to a prospective buyer of metal in the Eastern world they’re going to want nothing but physical metal,” he says. “But if you talk to a hedge fund manager in New York he will buy GLD if he wants gold or SLV if he wants silver exposure and they will believe that they really own gold or silver.”

The problem is it’s only going to get more difficult for banks as well as individuals to get their hands on tonnage of precious metal,especially silver.  “Interestingly it’s harder to get a large amount of physical silver right now than it is to get a large amount of physical gold. Silver is very difficult to obtain in the market,” Kirby says.

Purchasing large amounts of precious metal is not as easy as it used to be, especially here in the West.  There seem to be many roadblocks in the way of such purchases.  “The kind of roadblocks are the same kind of roadblocks that are showing up in Venezuela in their attempts to repatriate their gold from the bank of England,” Kirby says.  “I’ve done some reading into the reasons why the Bank of England is denying Venezuela the repatriation of their physical gold. And one of the reasons offered was because Venezuela hasn’t given a good enough explanation to the Bank of England as to what they were going to do with the gold once it was returned.”

That’s a very lame excuse not to return their gold.  There’s got to be something bigger going on and it has to do with the financial system and what’s going on is a battle to claim ownership to the world’s gold as the dollar markets collapse.  Everybody’s jockeying for position from a geopolitical and global economic platform and threatening to blow each other up with a combination of nukes and banks as we wind down the road to something very huge and costly.

GOLD WARS: TRUE HISTORY OF GOLD AND THE GLOBAL FINANCIAL SYSTEM, Vol. 2: Why is gold such an undervalued asset?

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Financial truth is very difficult to come by these days especially when it comes to gold.  The mere role gold plays in global finances is completely misunderstood by most financial advisers and talking heads because the truth has never actually been revealed to them.  They don’t have a truthful financial basis to operate from.

Truth in gold history has never been taught in any school of global economics.  It’s not made available for public consumption.  It’s one of the many hidden secrets possessed by the powers that be for their use, not ours.  That’s why the media and so-called experts of modern day economics never even take into consideration who truly runs the higher and deeper aspects of our totally controlled and manipulated financial system.  They have no idea really who controls the world’s gold, ancillary accounts, and other valuable precious metals, and how that really plays out when our financial system finally does bottom out.  The truth pseudo economic experts don’t understand and therefore are incapable of telling us about is this:  The key to global finances is in possessing the world’s gold supply, and then controlling all forms of income derived therefrom.

When you play by marketplace gold, for instance, in today’s modern world rules you know that Comex is a major player in gold paper trading.  Comex is the primary futures and options market for trading metals such as gold, silver, copper, and aluminum, and did you also know that Comex is run by the banks?  Which means the banks control the inflation and deflation of fiat currency and the paper that controls the price of gold.

Something else that’s not programmed into our box of understanding: the banks have all the financial control, and we do not. 

“The interesting thing about the Comex is if you understand that it’s run by the banks who have market making monopolistic power then you know they’re going to lead the speculators into the wrong footed positions all the time,” says Craig Hemke, Sprott Money News.

That’s how the banks control the average investor and this is something most people who invest in gold never realize.  What they’re being told is part of the financial smoke and mirrors financial game of fraud.  Paper gold is not the same as precious metal stored in a safe deposit box, and its prices are manipulated by the banks.  Paper gold is actually worth little more than the paper it’s not written on.

As for silver, many experts believe the banks are not going to be able to deliver as promised on the open interest in December because there’s not enough recorded silver in their possession and under their control.  “Is there not like a billion ounces of open interested silver.  Like nobody has a billion ounces,” Eric Sprott says in Hemke’s weekly Wrap-Up interview called, What”housing Armageddon” means for gold and silver

The gold exchanges are not going to be able to pay off the contracts and they’re going to be scrambling to get precious metals on the open market that are not going to be there.  The reality is gold and silver are being bought out of global marketplace existence at a record pace by the East as we in the West suffer through financial misunderstanding and blindness and the worst financial crisis in our lifetimes.  The media is telling us our economy is booming while our family’s inability to make financial ends meet tells us otherwise.  And it’s not just us.  All the markets are reeling for everyone across the world at the same time.

“We seem to be having, one, economic weakness across the board,” Sprott says.  “German GDP was down, Japanese GDP down, Hong Kong GDP weak.  We’ve got stress in housing pretty well in all developed countries.  Auto sales are weak, and more notably in Europe.  That and travel data seems to be weakening off here.  And we’ve seen a lot of concerns about that.  And two, you have the signs of market that’s under a lot of stress here.  The fact that it’s almost flat on the air now.  Bonds have been weak.  No pension fund can be making money.  It’s almost impossible,” Sprott says.

America’s top shelf corporations are also taking a beating and we can see the bailouts are coming to corporate America while the rest of us starve.  “You got GE getting hammered.  You got PGE getting hammered.  Of course Apple’s in there.  Goldman Sachs is getting hung out here because of their involvement with Malaysian fraud that cost the Malaysian government $4.5 billion dollars,” Sprott says.

Malaysian people go hungry and the Malaysian King marries the former Miss Moscow after visiting a fertility clinic as financial debt continues to mount with internationally coordinated answers seemingly nowhere in sight.  We have a lot going on in the world that’s not very good from a market perspective and nobody’s offering viable solutions.  Companies are being negatively affected by the trade war, which doesn’t look like it’s going to be resolved anytime soon, and the media is not focused on what that has to do with our economy, jobs, or ability to feed our families.  The media is part of the disinformation campaign.

We have global humanity issues like Ebola raging its ugly head again in Africa.  Warnings from the CDC can cause chaos in the global economy, certainly affecting travel.  

We’ve got Brexit and nobody’s pricing that in if all of a sudden that goes south and the Euro rallies and the dollar falls. Who’s going to tell us the truth of how we play out that potentially catastrophic scenario?

“We’ve got major potential problems with the commercial paper market,” Hemke explains, “and all the GE short term debt that’s out there and held by people.”  One look at all of what’s happening around the world in the financial markets and we realize factors that are not being priced into real time economics. 

Do we have any idea that interest rates are going to kill us?  Mortgage rates have gone from 3.6 percent to 5.2 percent.  That’s almost a 45% increase in interest costs alone.  “Welcome to housing Armageddon here,” Eric Sprott says.

We’re seeing major signs of stress in the bond market.  “Some of the best commentators are suggesting that there’s fundamental weakness.  In fact, one of the best says, ‘You know, we all knew it was phony.  Zero interest rates and the printing of money.’  The whole nine-year rally from ’09 to today, we knew it was phony.  It was the elephant in the room.  But because the markets kept going up, we didn’t worry about it.  Well, you know what?  Now that we’ve reversed things, we see the elephant in the room.  Which is higher interest rates and restricting money,” Sprott says.

So what happens when the Fed raises interest rates even more?  They’ve scheduled four Fed rate hikes for next year.  Even the Wall Street Journal said the Fed should hold off on hiking interest rates, which will send bond prices plummeting, with our families stuck in the middle with nowhere to live.  The housing market is crashing in all four corners of America.  Rising interest rates and low paying jobs are preventing families from being able to buy new homes or cars and our future is being left up to the Fed raising rates which only benefits them. 

They’re going to begin printing more money than ever at some point with real risks of hyperinflation kicking in and we have no idea what we’re going to do to have a prosperous future with the U.S. dollar.  Which is why we keep hearing talk about a return to the gold standard.

Eric Sprott believes it’s the only thing that makes any financial sense.  “If you can own gold at twelve-hundred-and-twenty-bucks and a year from now it’s still 1220 and the markets are down forty percent, that’s one great move on your part, “Sprott says.

HOW MUCH WILL GOLD REALLY BE?

Some financial experts believe gold is going to explode in value once the banking control mechanisms, financial restraints, corruption, and price manipulation have been reversed and the criminal bankers arrested and/ or intentionally retired, with some pricing a future ounce at five figures.  “The $10,000 announced number comes from people calculating – based on the amount of fiat currency that exists in the world – what it would take to go back to the gold standard as it used to be structured,” financial writer John Rubino says.

In other words, if you have that much gold backing of the existing fiat currency in the world, what price of gold makes that balance?  “You know, makes the equation balance.  And $10,000 an ounce pretty much does it right now,” says Rubino who founded dollarcollapse.com, a financial blog and news aggregation site. 

One of the major problems however with trying to calculate the future value of gold is that the amount of global debt increases dramatically with every passing day.  So the number of debt is rising along with the amount of paper currency in the world.  That’s a major part of what keeps the fiat currency system expanding and afloat.

So if we own gold Rubino is saying that the $10,000 figure is right now what we’re looking at for the future.  When the economy crashes at some point the value of gold will be $10,000.  But on the other hand, it may be higher.

If the U.S. dollar dies to zero, gold could shoot to infinity, Rubino says.  “And if you assume that the fiat currencies that are out there today are not just going to fall and then be devalued – but they’re going to fall to zero.  If they’re just going to evaporate then your number for gold is infinity,” he says.

So somewhere between $10,000 an ounce and infinity is probably where gold will end up in the next monetary system, after we have the reset.  After everything has crashed.  If we’re still alive.

The experts keep saying that we can’t know the timing because we can’t know the exact progression of global events.  Gold and silver are good to own because their trajectory is going to be upward regardless of what happens geopolitically and to global currencies.

That’s a lifetime of investing right there, some experts say.  That’s all we really need to do is buy a bunch of gold and silver right now and ride it until this thing plays out, and we’ve basically done our financial thing for a lifetime.  So long as we can avoid confiscation.

What the mainstream media fails to tell us is that if we don’t want to be owned by the financial markets right now we will probably want to be as safe as possible.  We will want hard assets that we either own or store in a very safe place, that won’t just evaporate in a financial crisis or be confiscated when the government is desperate for funds and starts to go crazy. 

GOLD WARS: TRUE HISTORY OF GOLD AND THE GLOBAL FINANCIAL SYSTEM, Vol. 1: Have our minds been programmed into boxes of limited understanding?

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Have our minds become programmed boxes of limited understanding?  Is that why we don’t know anything about truth in economics?  If so, how do we solve the problem?

Truth can be very difficult to ascertain these days.  It is being censored from the Internet at an unprecedented rate.  Our history books have been recorded with false insight dictated by the victors and survivors of centuries of calculated wars, population control, and the nonstop deadly assault on all living creatures, that has left the average human suffering interminably and filled with false ideas of just about every important concept known to man. 

We are being poisoned through our food, water and air and the threat of nuclear annihilation, burning by firestorm, or freezing to death in one of America’s East Coast storm cycles has become more terrifying and real each killing season.  We have been bullied and dummied down into a slave generation by governmental overreach and bound by the mind-programming leash of the iPhone, Internet, social networks, AI, and controlled-message technological programming. 

We know nothing of bio-engineering, multi-dimensional beings, global geo-engineering, or lost civilizations of God-like giants.  Our minds have been shrunk into boxes of manageable and finite data-knowledge, constituting our world of limited understanding, with some people’s boxes of data-knowledge being bigger than other’s.  All we know is what they tell us which isn’t much as we become just another brick in the wall.

Truth in money has never been a part of our programmed learning.  We don’t know about finances because it has never been intended to be a part of our history classes of life’s learning curriculum.  For those who can afford a seat at one of the universities of higher education to learn about economics, they are subjected to a mind-box-expanding but falsified history of pseudo financial theory combined with a fraudulent understanding of what has essentially always been a controlled and corrupt financial system.

Besides, global economics is complicated and who has the time to mess with it.  Does anyone really care how the life cycle of a fiat currency works and how its end is going to affect their families?  How hedge funds survive on algorithms and who controls all the financial markets are not usually the subject matter of family dinnertime discussions.  Many big questions with truthful answers are lost on the perplexed and fooled financial talking heads, who then misinform the masses who have either already shut off and become immune to the drone or taken the bait and invested and lost everything in manipulated and corrupt markets.

For others, tackling the major issues of the day is something that’s in their blood.  They’re modern day truth-warriors who take the world’s plight very seriously for the sake of humanity and try to solve problems for all of us.  They’re the bright headlights of a dim basement who look at gold as not an inconvenient truth but as the world’s future of prosperity.

These individuals understand that the truth is about national sovereignty, individual sovereignty, and freedom versus globalization and the total blackout enslavement of mankind forever.  Gold and financial truth is at the center of all of it.  Which is what they’re trying to awaken us to.  He who has the gold controls the world.

It’s about time we awaken.  Our families’ lives depend upon it.  Sh*t is beginning to hit the proverbial fan at a very hard velocity and solutions need to be found fast or a lot of us could end up not making it.

DISCLOSING TRUTH BEHIND LIES OF BANKERS

Greg Hunter of USAwatchdog.com doesn’t mince words as he blows up boxes of limited understanding.  Hunter recently started digging deeper into the dark world that is secret American government debt, in this case the verified missing $21 trillion from the Department of Defense (DOD) and Department of Housing and Urban Development (HUD), and he didn’t like what he was hearing from financial talking heads not knowing what they’re not talking about.

“You hear these people talking about, we’re wealth managers. Yeah, have you factored in this extra 21 trillion?  What 21trillion?  I mean this is stupid.  This is real.  People better factor this in,” says Hunter in his recent interview with Rob Kirby.  “They’re going to be asking, why weren’t we told about this?  A lot of mainstream media people are ignoring this; Fox Business, CNBC.”

That’s a lot of dollars to just go missing for the mainstream networks and media not to even talk about it.  We are being lied to and the financial experts and talking heads are not applying the math correctly when they predict the next big investment for us.  Why are they doing that?

“Greg, the issue is it seems too big to believe.  People cannot wrap their heads around how big 21 trillion is,” Kirby says.

A thousand times a billion times 21 equals 21 trillion.  That’s how much is missing in this particular instance that we’re not being told about by our government or the media.  This is what happens to truth in media when it comes to financial history and convenience of memory.  It gets buried under layers of piles of lies and half-truths.  Truth is something to be withheld from us and understood only by those who control our finances.  In this case, truth being too big to even believe.

GOLD WARS

Same thing with all the missing gold.  We’re being lied to about gold and that lie has been pervasive for as long as governments and banking have been working together behind the scenes to control mankind.  That’s why Greg Hunter, Catherine Austin Fitts, and Rob Kirby are desperately searching for the hidden truth of missing trillions from our government, where it’s been taken, and what that means for our future financial system.

We at  Family Law and Wealth Preservation Mediation Center are adding to that discussion as it relates to gold and global finances by posting this first of its kind ongoing series called, Gold Wars: True History of Gold and the Global Financial System

We’re going to dig deeper in examining what some of the world’s most renowned experts are saying through loud speakers about missing money and gold from our global financial system and how that affects your financial present and future.  We’re going to bring to light what Rob Kirby has been saying about the endless amounts of stolen money used to fuel our totally corrupt financial system and Federal Reserve Bank and why the central bankers should be hung by their necks.

We’re going to examine precious metals analyst and financial adviser Gerrit Visser’s explosive expose regarding the truth behind the world’s gold reserves and America’s slim chances of ever having access to any of it.  We’re going to explore financial expert Catherine Austin Fitts’ claims that $21 trillion to $50 trillion is missing from two U.S. governmental agencies alone and why the government is shifting massive amounts of money out of the U.S. government and out of the U.S. economy and taking it into the “dark.”

WE’RE GOING TO HAVE TO LEARN THE TRUTH ABOUT GOLD AND THE GLOBAL FINANCIAL SYSTEM

We are also going to analyze our country’s present financial predicament and whether the United States actually has any gold.  Our future financial system depends on us having enough gold to solidly back a new U.S. currency.  We know President Trump wants America to return to a gold standard but do we have any, and if not, why not and who does? 

Who really owns the world’s gold supply and what is the true history of gold in global commerce and wars, and how does that play out in America’s future? are important questions we all need to be asking.  The truth might shock you. 

In a wildly informative e mail forwarded to me recently by my former client, an international banking and economics expert named Rita R, in response to one of my previous articles called, What Happened to HR 5404 – and the New Gold Backing of America’s Currency?, Gerrit Visser issues this dark warning regarding supposed U.S. gold holdings:

“FINALLY A STRONG WARNING TO EVERYONE.  BE CAREFUL WHEN AMERICA STATES IT WILL BACK IT’S NEW DOLLAR WITH GOLD.  IT’S A VERY WELL STRUCTURED MAGICAL TRICK BY AMERICA THAT WILL GET YOU EXCITED AND SUCKED IN.  IT’S NOT REAL.  ITS A MIRAGE.  IT’S AN ILLUSION AND THE PEOPLE WILL END UP BEING THE LOSERS BECAUSE AMERICA HASN’T GOT THE GOLD IT CLAIMS IT HAS.”

Learn the truth about gold and our financial system.  Read Gold Wars: True History of Gold and the Global Financial System.  Don’t miss this running series of historical financial significance.  Our families’ survival is dependent upon it.

THANK GOD FOR GOLD, PART 2

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The Western financial system as it is tied to the U.S. dollar is saddled with so much debt and unfunded liabilities that it is on the verge of total collapse.  It’s difficult to tell when or what could trigger it.  It could be a single major event risk, or a corporate, state, or major municipality bankruptcy, or untimely hot war.  It’s not a matter of if but when

The question for our family is when it all melts down how are we going to find our way back from the ashes of a broken financial system to have a prosperous future?  We go back to some form of a commodity based currency, says financial writer John Rubino, co-author of The Money Bubble and The Collapse of the Dollar and How to Profit From It.  A currency that is linked to something real, and exchangeable for that real thing. Something that is not fiat currency.

“It limits the government’s ability to increase the money supply,” John Rubino says of valuable commodity backing of national currency.  “It ties it to the increase in supply of that commodity.”

This is where God and gold merge into a new financial system similar to what we used to have.  The kind of global economics that had United States finances running abundant and clear for two centuries.  “With gold, the reason it worked for 200 years, during the classical gold standard, was that the supply of gold goes up to about 2 percent a year,” Rubino says.  “So the supply of money linked to gold was stable for 200 years with no inflation.”  This was all wiped out by World War I, and the last 100 years of war. 

A global financial reset looks to be accomplished through devaluing the dollar relative to gold, which is where God comes in, backing our currency with lots of precious metal. “So we’ll announce on some Sunday night when all the markets are closed that henceforth the dollar now is just a name for one-ten-thousandth of an ounce of gold, or some number in that ballpark,” John Rubino tells USAwatchdog.com.  “And going forward we’ll be able to exchange dollars for gold, via the government.  We’ll have a sound money system.”

WHAT IS GOING TO BACK OUR NEW FINANCIAL SYSTEM?

Debt is going to be wiped out and fiat currency is going to be devalued or replaced.  So what’s going to trigger it? 

“Event Risks” are rare but they can impact markets harshly.  Event risks can brew for along time.  People know it’s out there,the one triggering event, but it’s unquantifiable, virtually impossible to time.  “A key reason is that one can never be sure of the outcome, the implications and more importantly, from a market’s perspective: The reaction once the event unfolds,” reads an article entitled Event Risk. 

We can expect secret indictments with many arrests and high political resignations anticipated by experts from both ends of the political spectrum.  There have been major allegations of voter fraud in the recent Midterm Elections and buildup toward exhaustive political investigations heading both left and right, north and south.  And how about the president’s constant Twitter attacks.  How soon will it be before one of these events has a direct, irreversible market impact? 

Political uncertainly does not breed confidence in financial markets.  “Waning confidence breeds more waning confidence and before you know it you’re in a bear market,” zerohedge.com says.  “From the time of Nixon’s re-election to his resignation markets dropped 29%. It was a wild roller coaster ride with ripping rallies and steep sell-offs, but all within a downward trend that lasted until the event concluded.”

Or it could be war. John Rubino says politics and geopolitics and war tend to follow major financial crisis.  If this plays out according to history the world could go crazy on every level imaginable.  We in America have basically, including the Cold War, been at war ever since 1914, and this isn’t expected to change anytime soon.  In fact, it could get much worse.

America has been on course to turn World War III into a nuclear exchange with named and unnamed enemies alike.  We presently have major geopolitical issues with China in the South China Sea.  Russia and the U.S. have been bombing each other’s proxy armies and advisors in Syria.  Israel is again fighting in the Gaza strip.  We’re still unsure of how the major powers will line up when the next round of major Arab / Israeli wars flare. 

Then you throw in all the blood incinerating new weapons including hypersonic missiles, drone submarines that can be equipped with nuclear weapons, and Terminator robots designed for the battlefield.  Bio warfare and chemical warfare are the most deadly they’ve ever been.  We have lasers, microwaves, and other types of directed energy weapons that fry humans alive but leave trees standing.

This can all play into our impending financial crash.  “Once they’re used there’s no way to predict what’s going to happen,” Rubino says.  “That’s another thing that’s completely terrifying from the point of view of an over-indebted, over-leveraged system.  See, when you borrow too much money you get very fragile.  And any old thing can destabilize you.”

So a new hot war could easily be the catalyst that sends us into a financial crisis like we’ve never seen before.  Or vice versa.  A financial crisis could cause a major outbreak of war.  These are the things that happen when you borrow too much money and can’t pay back your debts.  These are the issues President Trump’s tweets can cause.

SO WHAT DO WE HAVE TO BE THANKFUL FOR?

It is not all doom and gloom.  There is much to be grateful for this Holiday Season.  We have much to be thankful for.  Like what?

God.  A sound future financial system backed by precious metal.  Family.

We have truth to lead us to spiritual growth and gold, well chosen farmlands and rental properties to invest our hard-earned savings into.  Things they can’t make anymore of.  “Because that’s where capital will flow when the things that governments can make more of are inflated away,” John Rubino says.

As we look ahead there is a prosperous future for those who prepare for it correctly.  We wish all of you a happy and healthy Thanksgiving from everyone here at the Family Law and Wealth Preservation Mediation Center of Ventura, California.  We encourage you to fill up with not only nutritious food this Thanksgiving but plenty of healthy food for thought.  Read, research, and at all costs find as much spiritual, financial, and political truth as you can wrap your mind around.

Understand the direction the world is heading when it comes to potential financial prosperity.  John Rubino’s bottom line is that at some point the world financiers are going to have to acknowledge that the fiat currencies are going to be called into question.  “We can’t know the timing of this, but we can know what will do well when this happens, and that is gold and silver.”  Prepare intelligently.

Thank God for gold and silver.  Thank God as often as possible and pray for healing for American veterans and the elderly, and may you and your family have a safe, healthy, and prosperous Holiday Season.

THANK GOD FOR GOLD, PART ONE

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Why do we say, “Thank God”, when the world is on fire?  Do we really have anything to be thankful for this Thanksgiving?  And why is gold such an undervalued asset?

While we fight our way through numbness and Weimer hyperinflation posing as a 1930s depression I’m not dumbfounded to learn that debt continues to mount exponentially everywhere I look.  It’s in the tea leaves of global financial stress and it’s the bottom line of every paycheck we earn.  Everybody’s heading for bankruptcy, and nobody seems to have a really solid answer on how to avoid it.

No business or governmental entity appears to be immune.  Financial writer John Rubino says nothing demonstrates the “imminent bankruptcy” problem for cities, states, and countries that are swimming in unrepayable debt better than the financial obligations of New York City.

“They just announced that they have unfunded liabilities for retiree healthcare, just retiree healthcare and not the rest of their pensions, of $100 billion,” Rubino, founder of blog and news aggregation site dollarcollapse.com, says.  “That’s for a city, not a state or a country, and if you add their unfunded liabilities for their pensions, which is another $50 billion or so, and their official debt, which is $50 billion or so, you get $200 billion that New York City is on the hook for that they have not put money away for.”

Across our nation many cities are having major financial problems that run parallel to debt.  Unfunded liabilities for pension funds are a real liability.  Unfunded liabilities for retiree healthcare alone, not the rest of their pensions, can be astronomical, as the New York City example illustrates. 

We’re talking about a city filled with generations of unlimited healthcare for life for those who retire at age sixty, which is a really big expense.  Then you add in the pension fund unfunded liabilities, that cities and states are on the hook for, but have not put the money away for. 

So if you’re a fireman, cop or school teacher, and you worked ten years for New York City, you got health care coverage forever.  Baby Boomer cops, firefighters and teachers are retiring in greater numbers now and they’re going want to get the benefits of that healthcare coverage and retirement pension as cities’ finances fail into bankruptcy, so where’s it going to come from?

Major cities like New York and Chicago and Los Angeles are facing bankruptcy because of these unfunded liabilities, and who’s going to be the first one to blow and how will that affect your family and state?

The city of New York’s problems aren’t my city’s problems, exactly, yet, but they are the type of problem facing pretty much every major city and state tied to every country in the world that’s tied to the U.S. dollar.  Think Puerto Rico, Turkey, and Chicago, Illinois.  Who is going to pay their debt bond holders when their revenue streams dry up?  Who’s going to pay to haul the trash and clean city streets?  It can be difficult trying to be thankful in a world that seems to be at war with everyone while we all go bankrupt.

WHO WILL BE THE FIRST DOMINO TO FALL IN THE PUBLIC PENSION CRISIS?

A hundred other states and cities are in the same position, says John Rubino to Greg Hunter on usawatchdog.com.  When one goes they all go.  At some point, the whole thing blows up.  We’re talking about our financial system here, and it’s all interrelated through debt.

Unfunded liabilities in many cities and states are greater than the amount of official debt.  They are real obligations.    

Financial stresses are cyclical, Rubino says, and the question for New York is will they be able to raise the revenue needed to continue to keep the city going and to pay off their bonds?  Running a city or government is expensive.  Where will NewYork – Chicago, LA, Illinois, Turkey, Puerto Rico or the US – continue to get their revenue from to pay their growing debt?  New York has Wall Street, and New York does well when there’s a bull market and everyone’s making money and paying taxes.  But what happens when there’s a bear market? Where then do they raise the capital to pay their bills? 

Ongoing expenses can eat up a tax revenue quickly, and then you throw in massive public sector obligations like pensions and healthcare that will break the bank for these municipalities.

 States and cities must have the money to take out the trash and keep the water running which can pose tremendous conflict when it comes time to pay their bond holders.  If they don’t they will be closed out of debt markets forever.  Forced to live within their means.  Make cuts, or raise taxes.  Taxes go up, services diminish, and everyone leaves.  The tax base moves out, which is what we see here in the Golden State.  Think San Francisco.

In California our problem is that we rely on Silicon Valley and tech IPO capital gains and when that goes away during a bear market our tax revenues plunge too, Rubino says.  What happens when the cash flow simply isn’t there for us anymore?  Do we all have to move to Reno?  If we get to the point of where nobody can pay their debts and the bondholders get stiffed, then what?

The government comes and bails everybody out, right.  When major companies like GE or a state or locality goes bankrupt the government usually steps in and assumes the bankrupt balance sheet of that company, municipality or state.  This has been the American way of doing business for many decades.  The taxpayers take on the burden, having assumed all of the risk, and our national debt expands.

WHAT IF NO ONE BAILS THEM OUT THIS TIME?

We don’t have to bail out failing cities or corporations.  We can allow them to go belly up and learn their lessons.  That’s how it goes with capitalism.  There’s room for failure.  It’s called bankruptcy. 

Of course even if the federal government doesn’t bail them out the Federal Reserve could step in with loan guarantees or some other kind of tools to bail out bankrupt entities, Rubino says.

President Trump can help teach a lesson to those who control the financial system, but will he?  Or are the numbers too great and will the threat to destabilize the entire system be too scary to most?  Everyone wants to know who will be the next Lehman Brothers.  Will it be Chicago?  Goldman Sachs?  Apple?  PG&E?  New York City?

Due to all the debt America has taken on we’re going to see a collapse in the U.S. dollar, the financial writer tells Greg Hunter.  That much is clear.  There’s too much pressure on the system.  That pressure has to be released somehow.  It could be released through the deflationary path, where we let them go bankrupt.  Or we could bail them out.

But is that a legitimate solution to our financial issues at this time?  Rubino says that it only masks the problem.  “If you bail out all that debt, you shift the pressure over to the currency markets,” Rubino says.  “In other words, we’re creating trillions and trillions of new dollars, dumping them in the system propping up the bond market.  And then people realize the currency itself is in oversupply.”

That’s when people convert their currencies into hard assets like farmland, rental properties, or gold and silver.  The currency has collapsed and smart investors want value.

But the economic model is still going to have to be replaced.  The present system is destroyed beyond repair.  That’s why Russia, China and other Asian countries are bailing on the U.S. dollar and buying up all the gold.

“You reinstitute some kind of sound money,” Rubino says.  “So that is the most likely way out of this for us.  This is what happens when people understand fiat currencies and that giving government an unlimited printing press is a bad idea and we have to rectify that.”

How we rectify that will be discussed in part two of Thank God for gold.

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