Gold v Dollar

The powers that be hate cash. They can’t get their vig on a cash transaction. The bankers that run this country get a piece of every pie, except cash pies. They get 1.5% to 4% of every credit card transaction. They get a slice of every SNAP transaction. Why do you think they changed from actual food stamps to SNAP cards? The move to outlaw cash is coming fast. Once they make everything electronic, they can make their slice bigger, and you will have no alternative. They will also have complete control of the financial system and can shut it down at their whim. Everyone will be Cyprused for the good of the country. It will be declared patriotic to have your deposits absconded by the government. It will be for the children.

If you have cash in Wall Street banks, get it out. Did the $29 jump in gold today have anything to do with the chatter about turning the country into a cashless society? It seems the ruling class is preparing for something big. They are laying the groundwork needed to keep control – no cash, military exercises, militarizing the police, mass surveillance, new foreign enemies, media propaganda, and false terror plots.

Their enemy is critical thinking people with, cash, gold, guns, and the ability to live off the grid. Prepare accordingly.

Guest Post by Martin Armstrong

Spanish-Gold-Treasure-Bar

The traditional mumbo jumbo is dollar up, gold down. However, we may be entering a completely new phase. Gold and the dollar may no longer be archenemies. They are actually now moving to the same side of the fence, for the common enemy is the rapidly approaching electronic money, with so many analysts at banks now calling to abolishing paper money. What is interesting is that paper money places a check and balance against central banks from moving deep into negative interest rates. At some point, more and more people will just withdraw their cash and hoard it, which has already begun.

Right now, gold enthusiasts are closely watching the statement expected for this week from the Federal Reserve policy makers on Wednesday. They are clinging to anything, looking for any clues that the Fed is becoming less likely to raise interest rates. They fear that raising interest rates will support the dollar, but there is really a lot more going on behind the curtain.


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DC Sunsets

Once again:

Cash is a liability of the Fed.
Bank deposits are a liability of the bank (not the Fed.)

If the Fed colludes with Congress to outlaw (or call back) all banknotes, it would be a modern parallel to FDR’s 1933 confiscation of gold. Then as now, it would free our rulers to devaluing their liabilities to us, it would allow them to default, in part or whole, on what THEY issued as IOU’s.

This would not entirely surprise me, as I expect politicians (sociopaths all) to renege on nearly every political promise ever made. Once the default-on-promises train leaves the station, EVERYTHING will be piled on it.

Persnickety
Persnickety

I think DC Sunsets might be on to something. However, what about FDIC insurance? For deposits up to $250k per bank, the federal government has backstop liability. This is, of course, a way to transfer liabilities from the Federal Reserve Bank, a weird private entity, onto the federal government. Not sure. I can see the logic of DC’s theory, but I question whether it really brings a benefit, or if the thoughts are quite that sophisticated. I’m more inclined to think that the war on cash is partly to bring everything into trackable and therefore taxable e-transactions, and also to make capital controls absurdly easy.

pavan
pavan

Stock up on items with intrinsic value that you can use for barter, and that aren’t too perishable. For example, whiskey, wine, coffee, ammo, etc. Land is valuable, but it can be taxed. Unfortunately, the State’s goal is to abolish all private property. If they succeed, we’re all screwed.

DC Sunsets

Persnickety, it’s even worse than you think.

FDIC regs currently “insure” up to $250k per account…but there are ways to increase this phenomenally.

If you open a savings account as an informal trust, which is simply an account with a POD (Payable On Death) arrangement so the money goes straight to beneficiaries, the FDIC takes the number of people on the account (say it’s a Joint account with husband and wife) and multiplies that by the number of named beneficiaries.

So Joe and Sue open a joint savings account and name their kids, Adam, Bonnie and Cassie as beneficiaries in a POD (informal trust): The account is insured for ($250,000 x 2 owners x 3 beneficiaries) = $1.5 million dollars.

Trust me, anyone in the 99.9th percentile for wealth is WELL aware of this and taking advantage of it.

The problem for the FDIC is that when a bank fails, the FDIC goes to “healthy” banks for more insurance premiums. In this way, the sicker the banking system becomes, the more it will sicken previously healthy banks. The FDIC is a suicide pact among banks where sooner or later a pandemic banking problem will kill them all.

Then Congress will be faced with trying to make people’s bank accounts whole by taxing the people who are supposed to be made whole…. …… and who will be the winners and losers?????

Dam-fi-no. Also, when the FDIC blows up, Congress will simultaneously be up to the Capital Dome in other alligators, too.

So I’m not all that sure when the crisis comes, the FDIC will last any longer than a Congressional Intern’s Chastity.

DC Sunsets

@pavan, People are already stocking up so much on ammo that they must be lining their basement walls with cases of it.

[STILL peeves me that I can’t find 22 LR ammo in any quantity at all….and I loves me my CCI Mini-mags.]

I strongly suspect that no matter how smart we try to be, the future will surprise us all….and it will turn out that while we were stocking up on Brand X, so was everyone else and when we go to the flea market to convert our ammo (whiskey, etc.) to green beans, kale, bacon and shoes that we’ll discover everyone else there is selling the SAME DAMN STUFF!

Big Bucks (wealth) go to those who correctly guess what EVERYONE ELSE WILL WANT, but NOT HAVE, in a future time. I suck at that forecasting so I’ve largely given up on it.

Tommy
Tommy

Thing is D.C., the amount of currency in FRN’s is practically nothing in % terms, and even less when you add up what’s domestically held. It’s all 1’s and 0’s. But your take is interesting, thanks.

DC Sunsets

@Tommy, I agree; we’re on the verge, I think, of the largest, fastest collapse in wealth in recorded history. There is almost no way to hide from it. It should reach into every corner of our lives and disrupt the living crap out of us all.

By one estimate there is now 1.25 quadrillion dollars worth of “wealth” out there that sits on people’s mental balance sheets, and most of it is highly likely to evaporate in tsunami after tsunami of defaults and price declines. Anyone who “owns” property on margin (including mortgages) will only be able to keep it if their ability to pay the payments is not impaired. This list may be quite short if jobs collapse as badly as seems likely.

Truly wealthy people who own lots of property free and clear will retain title and remain wealthy by comparison to the rest of us. Everyone else is going to learn a viciously painful lesson about the toxic trap that is debt, the toxic “wealth” that is someone else’s IOU (bonds) and the toxic people who they elected to rule over them.

ss
ss

DC – in other words self-destruction via uninformed, apathetic, and blindly loyal citizens. How many times throughout history has this happened? For all our progress in technology and the introduction of the “information” age, plus the Great federal reserve money machine, nothing ever changes.

“Men are born ignorant, not stupid. They are made stupid by education” – Bertrand Russell.

Our education system is designed to maintain the status quo – that of a minority exploiting a grossly uninformed majority.

DC Sunsets

@ss

“Most men do not desire liberty; most only wish for a just master.”
Nothing has changed for mankind in the 2000 years since Sallust wrote that.

I always harken back to Nock on this. Most men are part of the Masses. Few people break free of the hive-mind and they largely live their lives like insects in a hive.

Those of us who aspire to be “more” do not do so for accolades or celebrity (for there is no joy in Mudville for those who tell the truth.) We do so for the joy of reaching a better grasp. I’m not even sure there’s any benefit to be had at all in trying to figure all this out.

Even if I do so, my knowledge cannot truly be passed to someone else. Each of us learns this stuff the hard way, or not at all. Even my sons will benefit little, and by the time my great-grandchildren are adults, I doubt anything of what I’ve learned will survive in them (assuming my family survives the trials of the next 80 years).

We are born in ignorance, and if we’re lucky, we live for a short time with a handle on the Big Picture. That’s about it.

ottomatik
ottomatik

Admin- Your lead in was better than the Article. Pulled no punches in typical Quinn fashion. Simple,point blank, in your face, accounting of pertinent details.

Westcoaster
Westcoaster

I noted that $29 bump today, Admin. Silver is back above $16 too. Oh what tomorrow may bring 🙂 But I digress.
I think the wheels are coming off and Jade Helm is probably part of it or a dress rehearsal. Baltimore may lead it off.

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