Submitted by Tyler Durden on 10/24/2015 22:49 -0400
Overstock CEO Patrick Byrne’s crusade against naked short sellers in particular, and Wall Street and the Federal Reserve in general, has long been known and thoroughly documented (most recently with his push to use blockchain technology to revolutionize the multi-trillion repo market).
But little did we know that Overstock’s Chairman Jonathan Johnson is as vocal an opponent of the fiat system, and Wall Street’s tendency to create bubble after bubble, if not more than Byrne himself. That, and that his company actually puts its money where its gold-backed money is and in preparation for the next upcoming crash, has taken unprecedented steps to prepare for what comes next.
One week ago Johnson, who is also candidate for Utah governor, spoke at the United Precious Metals Association, or UPMA, which we first profiled a month ago, and which takes advantage of Utah’s special status allowing the it to use gold as legal tender, offering gold and silver-backed accounts. As a reminder, the UPMA takes Federal Reserve Notes (or paper dollars) which it then translates into golden dollars (or silver). The golden dollars are based off the $50 one ounce gold coins produced by the Treasury of The United States. They are legal tender under the law and are protected as such.
What did Johnson tell the UPMA? Here are some choice quotes:
We are not big fans of Wall Street and we don’t trust them. We foresaw the financial crisis, we fought against the financial crisis that happened in 2008; we don’t trust the banks still and we foresee that with QE3, and QE4 and QE n that at some point there is going to be another significant financial crisis.
So what do we do as a business so that we would be prepared when that happens. One thing that we do that is fairly unique: we have about $10 million in gold, mostly the small button-sized coins, that we keep outside of the banking system. We expect that when there is a financial crisis there will be a banking holiday. I don’t know if it will be 2 days, or 2 weeks, or 2 months. We have $10 million in gold and silver in denominations small enough that we can use for payroll. We want to be able to keep our employees paid, safe and our site up and running during a financial crisis.
We also happen to have three months of food supply for every employee that we can live on.
The contents of the rest of his speech are largely familiar to advocates of sound money: fiat paper has no value, solid gold – as both a currency and an asset – has tremendous value but is difficult to transport (and since a systemic collapse would certainly involve gold confiscation, portability would be an issue); gold-backed money may be the best option, and so on.
We are confident the echo-chamber of worthless econohacks and macrotourists, the same ones who were absolutely certain the great financial crisis will never happen, will be quick to mock “prepper” Johnson and Wall Street pariah Overstock. And they have every right to do so. We only hope that after the next crash, with central banks all in and when calls for another global bailout hit a fever pitch, that all those pundits who made fun of the Johnsons of the world, will keep their damn mouth shut.
“…and when calls for another global bailout hit a fever pitch…”
It will be a Bail-In, not a bailout.
Obviously this CEO does not understand that gold is NOT money, until after total collapse of the monetary system. He would serve his company and stock holders much better to have a 50 – 50 mix of gold and paper currency, the latter to be used up first, until the ultimate day of reckoning for the FED. We could go through several financial hickups before a total collapse. At that point, when gold is recognized as a form of money (highly doubt it), you could cash it in for a newer currency which would be based against PM’s.
No matter which way the global meltdown occurs, and pans out, you can be sure that the banks will always be in the winning seat.
Whatever you think of this guy’s strategy, you can’t ignore the news of the Elites buying retreats and stocking up.
You don’t get to this level without a fair degree of smarts, being able to read trends and/or being plugged into the highlest levels of power.
I would call this a very strong “hint”.
I applaud Overstock.Maybe prepping for secession. Imo once politicians have or try to take away right to bear arms,they will loot pillage personal gold on behalf of bankers .Pocket some too,as law does not apply to bankers or politicians.I do not believe they even hide the corruption anymore
He’s got the right idea, and I like the fact he knows his employees have to eat.
Tell me about it HZK
The company I work for is helping to build 20000 square foot complex not sure exactly but it’s huge in hills of northern Cape breton for person with address at 1 Rockefeller in NYC. Ingonish Nova Scotia
They are spending about 11 million dollars there. I’m a rebar guy and most of building is concrete.
It’s mind-boggling the money being spent.
None of it is in newspapers or on tv
Everybody is in a room. Each person has 3 months food. You get one vote to determine who lives or dies ……………
Guns, bullets, gold, food, and water. What happens after it all runs out. If you do not have survival skills, guess what, YOU DIE!
The skill to provide for yourself and your family without supplies determines who survives and who dies.
It’s funny — in an ironic kind of way — that in in this thread all are for prepping, otherwise YOU WILL DIE.
But, in the “you, not me” thread almost everyone is willing to die FIRST.
hmmmmmm.
Stucky- The “you, not me” thread tells exactly how people die. There’s not much 50 people in one room with a zapper can do to prepare for their survival. People prep because of the unknown. I think UPMA is a great idea along with owning Bitcoin. I think if something is going to break in the economy it’s going to be the Federal Reserve system.
Is it a good Idea to announce to the world who will have food and gold when the world runs out?
Isn’t that like painting a bull’s eye on your employees?
If you want to protect them don’t say anything. If what you want is to look like a good guy well….
Oops anon above = me
Clammy said:
“I think if something is going to break in the economy it’s going to be the Federal Reserve system.”
To quote Vincent Vega: “That’s a bold fucking statement!”
It suggests you do not understand the history, power or true wealth of the worlds central banking families. The might appear to “break” at some point but my bet is that will be a ruse.
IS- It is a bold statement and I do understand. I don’t think the Federal Reserve will survive the fourth turning.
Overstock is located in Salt Lake City UT, the ultimate prepper community. Those Mormons are on the ball with this and I ought to know, I’ve moved many of them so I’ve seen their stash. Most of them have a lot more than a one year supply of food for each person and they sure as hell ain’t shy about guns. One family I moved who lived north of San Fransisco wouldn’t let me move their guns because they were transporting them themselves. What I did move were two thirty-gun gunsafes that I had to use safejacks and rollers to move. They were heavy bastards. That family was being transferred to New England, but that was over twenty years ago.
Not a lot of Mormons in CT, but they did build a big Temple in Hartford.
I applaud Overstock. Every other corporation I know of doesn’t give a shit about it’s employees nor it’s customers. They happily fuck both of them every chance they get.
Fiatman-“Obviously this CEO does not understand that gold is NOT money, until after total collapse of the monetary system.”
Gold is Money, right now, US Dollars or Federal Reserve Notes are not money, they are essentially Letters of Credit or Legal Tender, right now.
There is no need to wait for the total collapse of the monetary system for gold to be considered money, many at all income levels from top to bottom are using gold/silver as money, now. It could rightly be considered the only real money, as there is no counter party risk, unlike dollars.