Update: I heard May 27th is the silver delivery date, not this week. Getting my popcorn out next week.
Have you seen what’s up with 2020? I mean, one thing after another. Oil had recently hit -37 per barrel and at the moment I’m seeing if the COMEX is going to survive this week. They probably will, but gold and silver prices are looking to absolutely go ballistic.
There are some other things at play here. Some how, some way, getting back to work became a red and a blue issue. Where this goal was to “flatten the curve”, it somehow became “get the goddamn cure before I go back to work”. Government is printing trillions in its basement. Kids had the last quarter of the school year off. Prisoners are being released to keep them from getting COVID and business owners trying to pay their mortgage are being jailed.
Welcome to 2020.
Let’s start with the first word in the title. As I’ve written here before, gold has been money for 5,000 years. In our constitution, it says that gold and silver are to be the only money – Article 1 sections 8 and 10. Yet – we “temporarily” went off of the gold standard in 1971. And shit went terribly downhill ever since.
What a lot of people don’t know is that dollar bill in your pocket does not have the word “money” on it. It is a “federal reserve note”, and it is worth a dollar because all of us has faith that is…a dollar. For a lot of years in this country, gold was worth $20. That was many years ago, when $20 was a hefty sum of money. Up until 1932 I believe.
Due to the great depression, FDR confiscated all of the gold held by citizens and made it ILLEGAL to own gold. I want you to try and picture a Bernie Sanders or AOC try playing that card today with the amount of private ownership of gold and the amount of guns protecting that gold. FDR did give them $20 in cash for each ounce they had.
And then turned right around and said, “gold is now worth $35 per ounce!”. Yup. Throughout the 1930s, as Hitler was pillaging Europe, we stayed neutral and supplied the allies. And – we collected in gold.
By the end of the war, WE owned 2/3rd of the gold. There was something called the “Bretton woods agreement” where it was determined the US would be the world’s reserve currency and all other currencies got pegged to the dollar.
All we had to do was spend within our means, and all would be well.
War has a funny way of costing countries a lot of money. Enter Korea. Towards the end of the 1950s, De Gaulle of France started converting his money into US gold. The US flipped and decided…oh shit, we can’t have this. Eventually, the US got into the Vietnam war and went to 40% gold backing of the US dollar, and in 1971 abandoned the gold standard.
Gold was then allowed to be owned by the people again, and the free market took gold from $35 to $800 in 1980 in a period with very, very high inflation. The only thing they could do to stop inflation was to jack interest rates up to 20%. That stopped inflation.
So – when periods of higher inflation happen, interest rates are supposed to go up to slow the velocity of currency, and when times get tough, interest rates are supposed to be lowered to allow the free flow of capital.
We are in a period of almost 0 rates, and if they try to raise the rates, it could bring the whole house of cards down.
But gold – gold is in Ft. Knox, right? Well, some claim there is no gold there. That we “rented” the gold to the likes of JP Morgan or other big banks, who then sold the gold. They rented the gold that was listed as $35 per ounce on the books, and the big banks apparently “owe” the US the gold. However, they may have rented the gold for $1 per ounce per year ($35 per ounce then, remember), and they may have sold it for $800. They probably figured they’d then use that $800 and lend out $10,000 and with the profits on this just keep paying the rent on the gold forever.
So we might not really have a much gold as we thought, and the last time it was supposedly audited was in the 1950s.
We are supposed to have 2,000 or so tons of gold.
Now – I’ve been writing about this whole gold and silver manipulation thing that might be coming to an end soon. If not Tuesday, then any month now. March 24th was a really bad day for a lot of the banks and the COMEX. This is when people were standing for gold delivery, and….they didn’t have it. It’s kind of like a store advertising they have 100 bags of gummy worms. You buy 50 over the phone. You show up and there’s 30,000 people wanting the bags of gummy worms they ordered. You were told you had claims on the first 50. So was everyone else. They had played this game before with a form of “just in time delivery”, where if people had “stood for delivery”, they could just beg, borrow, and steal – the problem was, with COVID, it exposed their scheme. They were supposed to have 100 bags of gummy worms onsite. And…they had 2. Because there were 100 listed, such a large number kept the price of the gummy worms down. If there were only 2, and 30,000 were bidding on them, it would drive the prices up a LOT!!
So the banks over the years would advertise lots upon lots of metal for delivery, artificially pushing prices down because there was a speculative element. A lot of people would settle for cash, and those that stood for delivery, they would simply move the item on paper from one room of a vault to another. The problem now is, you have a lot of rich bastards saying “send it to my house” and the banks…..don’t have it.
The problem has only grown since last month. Trillions more promised in aid, further making the value of gold go up. 25 million now unemployed. COVID to return in the fall worse? Bankruptcies? People will want their gold. And silver.
And Scotia bank had massive losses – and bowed out of the business. They took the few bags of gummy worms they advertised as 2 million bags and went home. Not before taking major losses and it being announced they were being investigated by the US for price manipulation schemes. JP Morgan apparently got out of their short side and used all of that price manipulation over a decade to buy up 40% of all of the known gummy worms on the planet. HSBC on March 24th took a $200 million loss in one day due to these problems.
What is happening is that the “big banks” able to hold a short position and advertise millions of gummy worms available has dwindled. So less and less gummy worms are being put on the market which is making the price go up – and those that are available, everyone wants in their hands. The problem is, there’s hundreds of claims yet for each bag of gummy worms. Everyone who thinks they have a claim on them are about to get burned. And – worse yet, those who say they are selling gummy worms now have to go out on the more expensive market to source the gummy worms they promise they are selling for less – taking a massive loss on each bag of gummy worms they are supposedly selling.
The problem is, as more and more banks get out and the prices go up, those left “hold the bag” of gummy worms are facing higher and higher costs to replace that stock.
The artificial pricing scheme on gold and silver may be ending soon – or, the crooks running the stuff might just invent new rules again this month to keep the game going more. But given where we are, they cannot continue mass suppression of prices.
What’s the big deal with price suppression?
- Think of all of the miners and mining companies in the world that are mining silver for $15 per ounce and gold at $1700 per ounce. They have been dealt artificially low prices for nearly 40 years.
- Think of all of the miners in these mines making near slave wages to do this job for a company that has extremely low margins.
- When gold is artificially low – countries like China and Russia can buy up the supply
China does not allow gold to leave the country. They buy it up everywhere, but it’s not allowed to leave the country.
Putin has had sanctions put on him by the US. Iran has sanctions. All of these countries that have sanctions against them are tired of the US ordering them around. So – they continue to find ways of paying each other outside of the dollar. And you guessed it, you are talking about gold and cryptos.
It is suspected that China has amassed a total of 20,000 tons of gold over the last 20 years. “Official” numbers by the world gold council have them somewhere around 2,000. The problem with this is that if this was widely known, this is a legitimate threat against the United States using the dollar as the world’s currency.
Right now, if we want more money, we print off trillions. Other countries cannot do this. They see us printing at will, living in our mansions and living in the lap of luxury, while they all suffer. And these countries are sick of us printing off trillions to then grow our military might and have us in bases all over the world.
This is the only reality I have known – we printed currency to defeat Russia in the late 1980s. Our monetary and fiscal policies put us $5 trillion in debt. The Cold War was another massive cost.
But….we continued to spend…and spend. Republicans, Democrats, we could not help ourselves. We are now $24 trillion in debt, and our national debt is now on a pace to double like every 10 years or so.
And countries are sick of it. The only way we can continue to pay for this is by…….
taxing the shit out of people and knowing every transaction that is to be had.
With cryptocurrency, there are a lot of advocates out there. I’m not one of them, but those that are, are really big on them.
The US sees bitcoin as “property” in the same arena as precious metals. The US de-monetized silver in 1873 and un-pegged the dollar from gold in 1971. We still had 90% silver coins in the form of dimes, quarters, and half dollars until 1965. Meaning – they expect your bitcoin to be taxed as capital gains.
One very interesting thing about gold, silver, and bitcoin – is that for the most part, these forms of currency bypass the US monetary system. You are pretty much taxed here on any transfer of wealth – or in exchange for a good. You buy something at the supermarket, you have sales tax. You get paid by your boss, you get wage taxes, social security taxes, etc.
If we went to a mostly bitcoin economy, tomorrow, the US would freak. How could they collect taxes or know about these transfers of wealth?
For the most part, the “smart people” in government think of those using gold and bitcoin as those who only need to avoid taxes and launder money.
In many countries, bitcoin is actually illegal. In many other countries, all cryptos are illegal.
Day by day, more and more “altcoin” currencies pop up. Every single one of them have a form of a “get rich” scheme. For example, when bitcoin started, if you had bought $1000 in bitcoin at $1 each, you’d have 1,000 bitcoins worth $9 million today. All of the people starting these altcoins have the exact same goal. Get rich. Can’t blame them.
There’s only really a few small problems:
- Usage. I can’t buy a tank of gas with bitcoin. More and more people are accepting bitcoin, but the other cryptocurrencies are relatively unknown compared to it. Bitcoin is at like $9000 for one, and the next leading competitor has like $100 for one, and the next might be $.35.
- Legalities. Let’s just say you pour $50,000 in to bitcoin today. What’s to say that tomorrow the US will not make bitcoin illegal?
- Hacking. Take a look at the Wikipedia page for cryptocurrencies. One after another after another have been hacked. I mean, this is a legitimate issue. You have $50,000 listed in savings, and one day it’s blipped away. What bank are you calling to get it put back into your account?
- Loss of wealth. Who do you call with a customer service issue? Maybe bitcoin has some support, maybe? What about the 1,000 other cryptos out there?
- Taxation – with all of the dark net going on and all, the US doesn’t have control of this from a banking or taxing purpose. The more and more cryptos grow, the more of a threat this becomes to the US dollar.
I’d contend, if you cannot beat them, join them.
In the most recent aid bill for trillions, there was a section on the “digital dollar”. I can tell you, this concept scares the shit out of me.
Today, if you try and put more than $10,000 in the bank in cash, you have to fill out forms. If you try and go to the bank and get $100,000 in cash out, good luck. Cash is a dirty word also because the government wants to control it. They do not want people avoiding taxes.
And taxation is what they want. And lots of it. Welcome to the rest of your life.
I made mention of the 20,000 tons of Chinese gold above because for the past god knows how many years, countries like Russia and China have been massive buyers of gold where the US, England, and others have been selling their gold. The artificially low prices have given our direct competitors on the global stage dirt cheap precious metals – and they have been amassing a stockpile.
To overthrow the US dollar.
One big thing in the works is that China apparently has been working on a cryptocurrency backed by gold. This concept is so countries that do not get along with the US can trade freely using this “trusted” form of currency. And – it is backed by gold.
We have the U.S. dollar – backed by nothing. Mike Maloney, in the hidden secrets of money series, goes over the fact that every single currency in the history of mankind that was not backed by gold or silver, FAILED. EVERY. ONE.
Most of these fiat currencies have a lifespan of 20-30 years, and apparently we are on year 49 of the dollar not backed by gold. It was supposed to more or less explode in 2001…then in 2008, but each time we dug ourselves bigger holes and printed off more dollars.
Now – the US is looking at a “digital dollar”, which is a crypto. Not backed by gold. I believe the idea of this is to eventually replace the US dollar – but using this crypto, it ties you to an identity. Every transaction you make is cashless. They track every transaction. Every time you stop and buy coffee somewhere. And….if you are perhaps arrested and on bail, maybe they only allow you to use items within 10 miles of your home and outside of that range, your crypto identity will not work. Perhaps – you become an enemy of the state, or challenge someone you shouldn’t. Perhaps you didn’t use appropriate speech. Could they “disable” your digital identity? Prevent you from spending? Freeze your identity?
It’s terrifying. And it will be in the name of “COVID” and “no germ transmission in dirty money”.
With doing this, they no longer need to print cash, they just click some buttons. Add another 0 to the ledger.
But – what if the Chinese-backed crypto gets a lot of buy in from those countries like Russia, India, Brazil, Venezuela, Iran, North Korea? The demand for US dollars collapse. Those whose currencies are pegged to ours…collapse.
And why would they go to a US digital dollar? Why wouldn’t they go to a gold-backed crypto? The world no longer trusts the US as their steward.
What if the world’s central banks created a crypto, and all digital currencies would go through them as a broker of sorts?
I think China is directly attacking world supremacy. I also think there’s a possibility that this COVID was released intentionally to pop the bubble we had built up. I was writing in fall of 2019 that we are in a MASSIVE bubble. Everyone expected the stock market to correct itself, and we expected a recession. If you were doing any kind of war games, this virus unleashed on us would be the perfect way to take down the US.
- Their companies were overvalued and in a massive bubble
- China has spent the last 20 years amassing a giant stockpile of gold
- Metal manipulation may come to an end, making Chinese gold worth possibly 10 times more than it is at current value
- The U.S. would have to print their currency into oblivion, causing the world to see alternative currency standards.
- This virus could also have the benefit to further split the nation in two
- Russia did their part in 2016 to promote doubt in the confidence of the US electoral system, to the point that half the country actually believes that Trump is a Russian plant thanks to Rachel Maddow and Hillary’s campaign that paid for the Russian dossier on Trump
- The differences between the rich and poor in the US are getting that much worse, only possibly stoking the flames of socialism
While this was somewhat tinfoil hat stuff, there’s a lot going on in the world right now more than your local Starbucks not being open. China has directly challenged the US dollar as the world’s reserve currency, and if we capitulate that position, it may mean 20-40 years of “stagflation” in this country. Stagnant growth with nothing but increasing prices. Remember how gold went from $35 in 1974 to $800 in 1980? That was a high inflationary period in this country.
Get your metals while you can. I have a feeling we are in for more shit storms in 2020.
You may think war with China has to do with trade imbalances. Or COVID. You’d be partially right. Let’s list some of the reasons.
- Stealing. I wrote about “operation shady RAT” many years ago. China has had a policy of stealing all of our intellectual property for decades. Got a shiny new patent and you want to make money? Don’t fret, China stole your idea and made it for 1/100th the cost.
- Trade imbalance. What people don’t know is that we buy Chinese goods in US dollars. China is then supposed to take the US dollars to the FOREX to exchange it for Yuan to balance the currencies. China found a loophole. Instead of converting back to the Yuan, they bought US treasuries with this. This had the effect of artificially de-valuing their currency to ours. This made US goods too expensive for their people to buy from us, and it had the effect of making Chinese goods way cheaper than ours to negatively affect our factories.
- Taiwan/Hong Kong – China feels Taiwan belongs to them. They re-patriated Hong Kong. Both of these entities were close with us. This is causing tension that is boiling.
- Chinese island. The Chinese built an island out of nothing in international waters and declared it Chinese territory and chase our Navy vessels out of the area. We want to patrol international waters to keep an eye on Taiwan. China was us out of the area. More tensions
- Challenge the US dollar. You cannot defeat the US military head to head. The only way to defeat the US is to defeat our financial system. Years of stealing intellectual property, devaluing the Yuan, and amassing 20,000 tons of gold I believe is the final straw. If the Chinese do go through with this, inside of 1 year there may be international conflict. With a bunch of countries that have nukes. The end solution to this will be a BRICS (Brazil, Russia, India, China, South Africa) type of union (adding Iran, North Korea, etc) with a gold-backed crypto facing off with western powers using the “digital dollar”. Trade within your union will freely use their currencies, but trade outside of the unions may be mostly dead. The conflict may be small, but it will trigger international bodies to then segregate the parties. We will have a pact with North America, Europe, Australia – whereas China has been building inroads with a Silk Road v2 through the middle east and Africa.
This all will happen when the price of gold and silver get unleashed. At THAT moment, the price of Chinese gold increases 5-10x or so.
World War 2 – we fought for the liberation of our allies against an evil tyrant
Korea/Vietnam – we must stop the spread of communism!!
Iraq 1 and 2 – oil wars.
Our next war will be to preserve our way of life. And it’s going to split the world into two entities. A more authoritarian/socialist/communist system with cryptos backed by gold who shun the US dollar against the more capitalist systems who use modern monetary theory (MMT) and shun gold.
Our way of life has been moving away from gold since 1971. In truth, if you have a currency pegged to gold, you limit expansion. In fact, the head of our central bank actually told congress…”I don’t understand gold“. Check it out.
When asked why we still hold some gold? “Tradition”. Yeah. Right. Gold has been listed as a tier 1 asset and nations use it to settle debts. Story after story you can find where Russia is getting paid in Venezuelan gold to help them because their currency is dog shit. This is paper fiat currency – and is literally not worth anything.
Where China may have a gold-backed crypto, I believe we have a shot at doing the same. What we do in this country is fractional banking. I put in $10 in the bank, and the bank can lend out $9. What if we had a digital dollar backed by 5-10% gold and/or the equivalent amount in silver? For example, if gold is trading at $2000 per ounce and silver is trading at $100 per ounce, the US could back $2000 digital dollars with 1 ounce of gold or 20 ounces of silver?
I can also tell you this….
In order for them to do that, the price of gold and silver will absolutely go apeshit ballistic in short time. For example, for every ounce of gold out there, there is $55,000 in in US dollars. And, for every ounce of silver out there, there is $3,000 in US dollars. Let’s just say it’s a 10% fractional reserve?
That could then mean that one ounce of gold is worth $5500 and one ounce of silver is $300.
This would also get us back on a gold standard and have the effect of getting back to the constitution. AND….get us more credibility with our money – while allowing us 10-20x growth over China, if they peg their crypto 1:1 with gold.
I leave you with this…
“Whoever has the gold makes the rules”.