When Abuse Kills Trust

By: Sam Brown | Sun, Nov 13, 2016
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Just imagine you are a tailor. After days of hard work you have just produced the most beautiful dress for one of your best customers. Suddenly the police knocks down your front door and invades your workshop. They take some torches and without having charged you for anything they burn your just finished garment. Then they walk away. You need to finish your order, so you work through the night to replace the burnt dress. The next day your government sends in the police again and they burn everything you are working on. This becomes a regular exercise and at some stage your are facing ruin and physical and mental collapse.

This is not an invention. You replace the word tailor with gold miner, the hard work with the toiling to keep the mine going and the torch with the dumping of paper claims for thousands of tonnes of non deliverable gold and you get the gist. You may remember the last big gold take down on the 4 October when the Anti-Gold-Cartel dumped during London trading hours paper gold claims for 1,000 tonnes whilst the Chinese markets were closed. They wanted to smash the gold price below $1,300 to discourage people from buying the precious metal. This was an unprecedented attack even for the most hardened gold investor. Or the market manipulation on 24 and 31 August when almost seven billion USD of paper gold claims were dumped on the markets within minutes. During the US election night from the 8th to 9th of November gold spiked at $1,337. From 22:36hrs until 14:40hrs EST the Anti-Gold-Cartel tried more than 24! times to break the back of the gold price and to drive it below $1,300. They managed to smash gold down to $1,270, an enormous price move of $67 or 5 per cent. On the 10 November the Anti-Gold-Cartel came back with three major attacks to drive gold down to $1,251. Gold then recovered to $1,265 only to be attacked again. On the 11 November, with the start of US trading hours, the gold price was relentlessly capped and attacked. $10 billion worth of paper gold claims were dumped on the market until it was pushed down to $1,219. Gold only stayed there for a minute and bounced back to $1,227. Will they come with another $10 billion on Monday, Tuesday..? At that rate the expenses for the gold price suppression may top the US defence budget. What we have here is the most determined destruction of wealth by any US administration.

Some may say that this does not matter. After all do we not have all these carefully designed USD, EUR or Sterling bank notes to pay our way? To those who still harbour the illusion that fiat "money" is money I only say "Modi". On the 8 November the Indian prime minister announced to the nation that from tomorrow the 500 and 1,000 Rupee bank notes, about 80 per cent of all cash in circulation, would cease to be legal tender. He said that these notes were now as worthless as a piece of paper. Millions of Indians are now threatened by starvation. This is not an isolated incident. In 1945 the French government declared all bank notes worthless and replaced them with a sparkling new racket called the New French Franc. All paper money is just pieces of paper. Their value is solely determined by the promise of politicians. Politicians give it and politicians take it.

If a government attacks the holders of gold and silver, the only reliable store of value, it unmasks itself as the enemy of the people. It unveils its intention to destroy the savings of billions of people, not just in its own country but universally. Such a government or group of colluding governments  are the enemies of humanity. A damning verdict that will ultimately destroy all sympathy towards such administrations. How will the US government react if confronted with such a charge? They are dependent on the goodwill of the international community to finance their huge trade deficit and their debt mountain. Will they react like Richard Nixon' treasury secretary John Connally? After the Nixon administration deliberately defaulted on the gold standard to expropriate the world of claims for thousands of tons of gold, he stated: "The US Dollar is our currency but your problem".

In Hollywood they say that there is no such thing as bad publicity. The constant gold price manipulation will at some stage attract the attention of the most gullible market observer. It is a permanent sales pitch for gold because it underlines in the most dramatic fashion the importance of gold and the exponentially rising desperation of the US authorities to protect the emperor with no clothes, the US Dollar. In the trenches of today's gold war, the hardened gold investors dismiss these avalanches with ease and take advantage of the situation. They understand that there is no alternative to owning the physical metal. Gone are the days when paper gold dumping caused a panic in the markets. Unfortunately there are still hundreds of millions of less well educated people who are deterred from saving in gold and silver by the market manipulations. They are bled white as their savings turn to dust. "By the people, for the people".

The legal and moral issues in this brutal war are regularly ignored. Every year tens of billions of taxpayer's money are wasted on these attacks. Is this legal? Or morally justifiable? The pleasure of having dented the gold price for a few hours, days or weeks is traded in for the price of many hospitals and schools. Billions of Dollars that could be used to care for the homeless that wither away in the cold. The destruction of gold and silver mining companies by the government and the misery of unemployment and ruin is a declaration of war on hard working citizens. Worse still - the ever increasing short positions in the markets increase the risk of a failure to deliver the physical metal. This would create a massive spike in the price of precious metals and could easily trigger the collapse of the reputation of the US and British government, the demise of their banks and currencies. In such a case it would be the ordinary people who would be hit hardest. They would pay the price for the actions of governments that are subservient to the interests of the finance industry.

The abuse of power is becoming an issue. People around the world wake up. The mainstream media call them populists. I call them realists. These people have understood that that their governments do not represent them any more. They represent their private interests and nothing is more profitable than to slip into the role of a Judas Iscariot to betray your own for money.

We now know that Donald Trump will be the next US president. Does he understand the demands of the "populists"? I fear not. He is an oligarch and I expect him to represent the interests of his peers. He will scratch at the surface but does he understand that the dismantling of the network of oligarchs that rule the developed world from behind the facade of national governments is the precondition for the welfare of mankind?

How will events evolve from here? The pandering to the financial interests of the few by successive governments has lead to a widespread collapse in trust. Trust in the media, politicians, civil servants, judges, teachers or the police. This theme is the subject of the YouTube video by John Titus with the title "The Veneer of Justice in a Kingdom of Crime". He argues quite convincingly that the United States is ruled by organised crime (by some labelled "the elites") and shows that elections did not dislodge this Mob from the seat of power. President elect Trump will find it difficult to sidestep these issues. He will have to look into this, simply because too many desperate politicians and government officials (potentially thousands of people) will come forward with confessions because there is no administration left to cover up for them. Just take the nine trillion USD of unaccounted defence spending and the books that were cooked for years. This could evolve into the biggest fraud case in US history.

Sound money is the precondition for any prosperous economy. Fiat money is not sound. It represents a fraudulent system of credit notes that put the people into debt at issuance and is then used to pay these very same people. The profiteers are the state apparatus, the banks and big business. The unlimited issuance of debt expropriates the wealth of the population and transfers this wealth into the hands of these institutions. It is therefore no surprise that private consumption in the US does not respond as expected. Recent retail sales figures rather suggest that US consumers are scratching at the bottom of the barrel.

Many have realised that the political system is in dire need of renewal. How long will their patience last? We experience a world with a frightening dimension of free range totalitarianism. As long as the going is somewhat tolerable, as incomes and benefits allow people to get along, everything appears to be stable in the sheeple pen. But things are going to change. Not for the better as debt financed growth slowly comes to a grinding halt. US government debt, official and off balance sheet, is in excess of $200 trillion. It rises currently at a rate of more than five trillion USD per annum. The US is heading for default, either in a straight fashion or via inflation. Foreigners will stop lending to the US. The US Dollar that we know is destined for elimination.  It will be printed into oblivion by the attempts of the state just to cover the colossal trade deficit. Financial hardship will force the sheeple to wake up and to confront reality. The creeping collapse in trust will lead to the total disintegration of the economy. The banks will die first because their business model is entirely based on trust. People will keep their money at home because they won't be unsecured lenders any more. Corporations will keep their money in a safe to be sure they can pay the month end wages. Digital money will disappear because it can be confiscated by the state at the stroke of a pen. Financial markets will close because too few trust in their integrity. Taxes will not be paid because the regime is seem as a menace. Investments will not be made because the future is too insecure. The people will refuse to recognise the authority of the state because it is seen as a hostile power. In the US individual states will be forced to declare their independence and sever their links with Washington to protect what is left of public order. Parallel currencies will spring up and gold and silver will become extremely desirable.

Those who dismiss this vision as an absurd act of fantasy should look at Europe. In France, Germany and Italy the state has lost almost all authority and parts of the police force have already shown their solidarity with the raging public. People have stopped paying taxes or recognising the authority of the courts. Cities have partially turned into No-Go areas. Mrs Merkel, the Chancellor of the Federal Republic of Germany does not dare to appear in public because the people go ballistic and shout her down. They accuse her of being a criminal, the head of organised crime and a traitor of the people. Last week speeches were held in public, in the centre of Berlin, where politicians featured as bodies swinging from lamp posts. During an interview as outgoing President of the Federal Republic of Germany, Mr Gauss was warned that Germany was in a pre revolutionary state.

I fear that Mr Trump will ultimately be nothing but a footnote in history. He has made many promises but the resources to keep them have been squandered. Does he realise that time is running out for the Ancien Regime? In 30 years, our world will be a distant memory, and hardly anybody will remember his name. People will be fighting for their daily survival and our planet will have gone through a period of extreme distress.

 


 

Author: Sam Brown

Sam Brown

Sam is a private fund manager.

Copyright © 2016 Sam Brown

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