Someone recently asked me about my thoughts on Kinesis, and I promised a blog. I’ll keep this one relatively brief, as some of you know I can really go on a tear with words. This is a “short” for me.

This title is a little darker than my normal writings, but I wanted to present to you some “worst case scenarios” that are unfolding around the world, and to most of my readers, there are 200 countries outside of the US who could feel things much worse than us – and could be canaries in the coal mine of what may come.

Recently, issues have been coming out in places like Lebanon where people are holding up banks just to get their own money. These are “capital controls”. In China, a bank “bailed them in” and basically told them their deposits in the bank were actually shares in a bank and the bank suffered losses, so you are screwed. If you look closely around the world, capital controls are everywhere – even here in the US. Don’t believe me?

Walk into a bank, ask to take out $20k you have. Try it. They want you to fill out paperwork, ask you what you are using it for, and may slow walk you to give it and tell you that if you want that much cash, you have to order it in advance. Imagine one day you see something on the news where Wells Fargo (example here, relax) shares are dropping 40% on terrible news. You know you have $300,000 in the bank, so you hop in your car and try to go take it out. You had heard they are “too big to fail” and rather than a “bail out” from the government, that in this country, they now have “bail in” laws. The bank can seize your funds over X amount of dollars if they run into a crisis to bail them out.

Interesting, huh?

This came up because I saw someone write, of course, that “bitcoin fixes this”. That’s another story for another day. I slightly….disagree with that take, as I have shown it is a risk ON asset that acts as like a NUGT does to gold (I showed this 18 months ago when this theory didn’t exist). But I then went on to say, “Kinesis solves this”.

What BTC does well is putting knowledge of a ledger out for everyone to see and is not held by a bank. The issue is, what you own is an empty parking space. Bitcoin people like to talk about “the ledger”. Take an accounting 101 class and you understand what a ledger is. It is an entry where there are debits and credits. Steve has an account receivable due from Paul of $100. Paul owes Steve $100. In reality, Bitcoin gives you a deed on the block chain to an empty parking spot. “Steve bought empty parking spot from Steve for $100 and receives lot. Paul sold the empty parking lot to Steve for $100”. Steve now has deed to the empty parking spot.

But what Kinesis did, metaphorically, was use the empty parking spot to put sports cars in the spaces and tell you that these lots have CARS which you have deed to. Instead of cars, obviously, it’s a pile of gold or silver. I created this drawing, but it seemed to be small font. I really like it though! I’ll have to re-do and turn it into a meme or something.

I, and others, advise you to layer purchasing in gold, silver, and mining stocks. I use mine as a hedge against my real estate holdings, so I have quite a sizeable small fortune held up in PMs/miners who have been baptized the last 2 years. But, my real estate went vertical, so I didn’t really lose sleep, yet. I had a 6:1 ratio of how well my real estate did as compared to my paper losses in gold/silver/miners. So if I lost $1 on paper, I gained $6 in my real estate. The idea was as my real estate were to go down, like in 2008, then the metals would PRESERVE my overall wealth, and I might even make a killing with the miners. IF I had to liquidate everything, I wanted to not LOSE money. I have succeeded.

But we are now seeing the effects of why the markets rose to such high levels. I had no IDEA how hard QE would hit, and the effects that would have on hitting the snooze button of doom. I got out of half of everything July 2020 due to a lot of potential shit I saw coming, only for it to be shifted to the right. Well, that shit storm is now here, and has been.

With this, I like the idea of holding SOME of my wealth in gold, silver, miners – and with this – layer those investments. As percentage of wealth – if I laid everything out, I might be somewhere between 12-15% in on PMs/miners. Most of my LIQUID wealth is in the PMs/miners, and I got fully deployed when I heard Peter Schiff said he was. Yep, turned out how we all thought it did.

But the idea here then is that having PMs in your house can also present a big security risk. You see those guys on YouTube with like 5,000-15,000 oz silver, and you have to wonder how silly that is. I love seeing the stacks, but it is extremely impractical to have that, in your house. Imagine a home robbery – imagine a situation where you had to be out the door in 1 minute with your family because an angry mob is heading your way to burn your development down. You cannot possibly load 5,000 oz into your car, and with this, I probably would not ever recommend more than a shoe box at home with PMs in it. If you have mad stacks of silver in it, perhaps start to add gold oz.

But then, if you have more levels of wealth, where are you holding your PMs? Assuming you can get $5,000-$20,000 worth of PMs into your box, what about the other $50k or $100k you want in metals? Assume you already have sizable miner shares. What do you do? You can vault it – send your metals, via mail, to a service that has “segregated” holdings, where you have to pay a monthly fee for your metals to live there. IF there’s a disaster, how quickly can you get to your metals? Would you have to wait weeks? I think this solution may work as part of your layering. Maybe you have a ton of eagles you put there. Who knows.

But Kinesis, for me, adds layers of ACCESSIBILITY to it, and it is not held in a bank – who can take your shit. It’s not in a segregated vault, where it might take you days or weeks to get access. It can be accessed via debit card. Assume, for a moment, you buy KAG at $20 or so, and you take your excess green slips of paper and put them into Kinesis, and give those electronic slips of paper to someone for the title to that KAG (kinesis silver). You have silver or gold that can be sliced up a billion ways, and for argument’s sake – imagine a world where high inflation keeps up at 6-7% for the next 3-4 years. Those initial green slips of paper would have devalued at 6-7% per year in purchasing value. However, in these situations, things like gold and silver will move up – as it takes more green slips of paper to buy them in an inflationary scenario. At the end of those 4 years, silver may be $30 or $40. So it looks like you GAINED value, but in reality, you PRESERVED purchasing power.

I tell this one to anyone who would listen. Imagine you had 2 silver dimes from 1964. You were able to buy a gallon of gas with it. Imagine in the last 5 years that you had 2 silver dimes with a DATE of 1964 on it. It would continue to buy you – roughly a gallon of gas. So while inflation may see the COST of goods go up, RELATIVE to the dollar, what you are seeing unfold is purchasing power dying due to printing money and adding more money into the system that sloshes around.

What I would tell people is that if you were in Lebanon – Or Venezuela – Or China – Or Argentia – Or Turkey – OR Zimbabwe. Or anywhere that inflation is going nuts today….we are even now seeing 48% PPI in GERMANY – that had you had your green slips of paper converted to KAG or KAU, that you would have access to that metal, via debit card where you could SPEND it. So if you had that silver on your account, you could spend it at the pump to buy gas.

To me, as we start to see banks in the West start to have problems – along with even the banks in the East dealing with Evergrande-like fallout, you WILL see the values of green slips of paper diminishing AS governments scramble to dole out bread to the poor. The gold and silver show has not even began – and Maloney called this – that they will become unobtainium and unaffordium. We are seeing the vaults get run on now, albeit in slow motion. IF PMs are such a bad place to be, then why are central banks adding gold and all of the silver we can see above ground is getting sucked up?

I see Kinesis as a TOOL to use to PROTECT your wealth to be used in a financial endgame. To any Kinesis people reading this, please contact me – I’d love to understand why I cannot use ACH at this time to add cash into my account. It is the ONE thing keeping me from going crazy advocating for Kinesis 24×7. I was able to fund my account once with a wire transfer. The bank didn’t recognize where it was sending my cash, and warned me several times that they have no idea if the wire transfer would go through. I was on pins and needles for days waiting to see if thousands of dollars would get there or not. It did – but funding that account was scary as shit. When I sold KAG to fund renovations on my rental property, getting money BACK into my account was a breeze. But getting it there caused me some heartburn and I had heard the ACH was coming – but just hasn’t for me yet for some reason.

With the recent government usage going on in Indonesia, I am looking forward to seeing developments on this front where USAGE and ACCOUNTS start to go vertical. My disclaimer here is I’m a KAG holder, so I am very much interested in higher usage of Kinesis. My mitigation to my disclaimer is that this is sort of like wearing Nikes all the time and then all of the sudden you get a free pair from Nike. I was saying good shit about them before any of this, and will continue to do so. I love the IDEA of their product. One thing that MIGHT concern me is with PMs being cyclical, could we see great dips when using the product in down cycles? The answer here is – I’m not sure – because I feel we are at a point where the BRICS have a tie in to gold, and I feel the only thing keeping gold from being money for all is Western powers smashing it in the paper markets to continue their need for MMT. Gold is a relic of the past to these economists, and its value must be smashed at all costs.

To me, the proxy war going on right now appears to me to be a battle of MMT versus sound money. Those in the West who have financialized debt and dreamed up derivatives out the ass are at battle with those who have vaults of gold and want you to pay with what you have, not what you promise to have. One can see the obvious benefits to society with MMT types of advancements, but one can also see how over 40 years, it has hollowed out a middle class and is leading to a point in time where we are hunger-games like with 5% of the population doing fine, and the other 95% needing some sort of UBI to even put food on the table.

I’m watching how this unfolds very closely, because I see a BRICS alliance that will fight the strength of the dollar.

Conclusion

I feel like when you see this quote, and live it, you understand where Kinesis is going…

“Gold is the money of kings, silver is the money of gentlemen, barter is the money of the poor, and debt is the money of slaves”.

You can see how credit was abundant at low rates for 40+ years. With cheap money to borrow, people borrowed hand over fist. This created a massive debt class. They got into houses they can’t afford on promises of wages going up for years to come. But you can also see how countries are accumulating gold. You can see how silver is being drained. And, you can see on Facebook market place how people are selling anything not nailed down to get cash.

When you understand how debt can control you, I want you to look at how things happened in Canada, with the trucker revolution. They were protesting being forced to take a jab. Now, somehow medical procedures like this have become political footballs, but you can see a situation in where you had a controlling class of individuals inflict an IDEOLOGY on a group of people – and with this – took their money and took their ability to earn money due to IDEOLOGY differences. A political protest essentially ended up with a government inflicting their will on the people by destroying them financially. I don’t want to bash the left or the right here – one could imagine how a Trump could have done the same thing given the medical advisors he had.

But you have to understand that for you to protest, you must have the FREEDOM to express your voice to lodge a complaint against the government without redress. This is why we have a first amendment right here. We should be free to disagree. To assemble. To protest what we see as wrongs against us. But I want you to understand what kind of rat trap you are in today. You drank the kool aid of 40 years of cheap money, acquired things, and now you can be cancelled for not towing a prevailing political tailwind. If you say, “I feel this is wrong”, the government had met with social media to have tools and methods to silence your voice, remove you from platforms, and potentially send bot armies after you to gaslight others into thinking they are in the minority.

What Kinesis and PMs do is remove you from systems where people can control you financially. To me, that has other levels of risk involved with governments trying to destroy those types of instruments. This is why I would not advise going 100% into a Kinesis, LOAD, Cache, or even a Bitcoin for you folks out there that like empty parking spaces.

I feel that if capital controls happen at your bank – further than what you have now – there’s a risk you end up like the guy in Lebanon who needed to take out $200,000 to pay for medical treatments for his sick father. Now imagine our banks here denying you access to your funds and you have a sick child who needs an expensive surgery? Criminals you see can sometimes be a criminal of opportunity – but sometimes there are criminals of circumstance. Where they would NEVER be a criminal, but their backs are to the wall and they have to act in order to save someone or prevent a tragedy. When you are in Venezuela and they seized all of the guns in 2012, you thus took the MEANS a population could have to commit crimes in order to get their own money or access to food.

I’m not saying it will get that bad here. But you see a socialist regime talking about taking guns at every turn. You see how they want to confiscate wealth. You see how they have worked with social media to silence opposition. You see how they mobilize activists to cancel those who speak up. And you can now see we are heading towards bank bail ins, CBDCs to trap your wealth in the system, and adding 87,000 IRS agents to collect more taxes than ever before. To be fair to my leftist/socialist friends – you could see that ANY type of regime, given the right conditions to take power – would.

Kinesis to me is your trusty Swiss Army knife that has tools IF and when things go south. Given I live in the US, the statistical odds of that endgame-like scenario are slim. But look around people – and look at the countries falling like dominoes into the rioting going on worldwide. Riots over high food prices, high energy prices – and even how governments now seem to be taking land from farmers due to “nitrogen”. Everywhere you look you see WEF planted stories about eating bugs.

Things are getting dicey. We may wake up on a holiday weekend to learn our banking system is closed for 2 weeks as they roll out a CBDC. It may take 5 years for the system to get stood up. Putin may be ousted, along with Xi, and the BRICS ideal of sound money is then lost to financialized Western banking forever, in which “you own nothing, and will be happy” after your house is foreclosed on by the bank, but they let you rent it out indefinitely.

Kinesis to me provides an ability to protect my wealth, protect spending power, and perhaps capitalize on a once in a generation move where gold could see $8,000 to $20,000 per ounce as the USD goes into a form of spiral over years and gold – and other things – are reset in price as $17 trillion in USD pours in from outside our borders to bid everything into the stratosphere.

Now, I’m not saying this exact scenario will unfold – I’m game planning sort of a worst- case scenario. But – I wanted to point out that the bank robberies in Lebanon appear to be crimes of circumstance, and these types of crimes may increase. If these people had a portion of their wealth in PMs, perhaps this would not have happened.

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