Gold Under Fire as Money Not Traceable like Bank Issued Toilet Paper

The WealthCycles Staff

Gold, seemingly everywhere and nowhere at the same time, has popped up on the mainstream radar, after spending the year beating stock markets as the less volatile asset and completing yet another year in a recognized bull market. That’s a lot more than stock markets can say, as they merely tread water in real terms.

Bloomberg highlighted gold on New Year’s Eve as the medium of exchange that could serve as payment for assassinating the U.S. Ambassador in Yemen, according to recorded audio.

The audio may or may not be credible. Should the recording turn out not to be credible, it would have served conveniently to support the idea that gold is used as money in illegal or morally destitute transactions. This argument usually is usually brought to bear in the push for a digital currency that would make it possible to hold anyone using it retroactively accountable. We have written about the chip, and the fact that a Cashless Society Is Totalitarian Dream. We also ask, is the End of Cash Compatible with Freedom of Choice?

The Associated Press reported that the audio, posted on “militant websites” of unknown ownership and posted anonymously, had the asking price at 3 kg, or 96 troy ounces of gold, worth $160,000 today. If the reward offer is real, it definitely illustrates the ire invoked by bombing the public from far above using remote-controlled drones.

The threat comes after the U.S. administration ramped up their war against Yemen in 2012, after using unmanned drones to kill those stated to be terrorists, including children.

Did we just kill a kid?” – U.S. Drone Operator

Of course, some departments in the U.S. federal government consider civilian protesters to be terrorists as well, and so the “terrorist” line is arbitrarily drawn. The decision of who to kill and who not to has become more difficult as due process (your right to a day in court), a right enshrined in law since the Magna Carta in 1215, has been lost. The Federal Reserve Branch (Fed) of Richmond even sent “passive” all-seeing-eyes to Occupy rallies, as the linked article describes.

Protesters complained of price fixing and policies that favor those with financial assets rather than the poor, those saving, and those living on fixed incomes.

Of course, saving in gold and transacting in precious metals denies the currency cartel operators the ability to pilfer the value of your savings by means of constant inflation of the currency supply. That institutionalized inflation, which continually decreases the value of existing currency, is an the inherent feature of fiat currencies that has made the “War on Poverty” nothing more than an ongoing joke.

Mainstream media, the financial establishment and government authorities will continue to attach gold,  as “one has no difficulty in understanding the statist’ antagonism.” But at some point, as their purchasing power falls, people will get “over” the increasing uselessness of paper notes. In Zimbabwe, they use the valueless currency to paper billboards and have had chronic septic issues resulting from the flushing of banknotes used as toilet paper.

In Hyperinflation Déjà Vu—Can What Happened in Zimbabwe Happen In U.S.? we note that Dr. Gideon Gono, the governor of the Reserve Bank of Zimbabwe responsible for Zimbabwe’s runaway inflation (and Ben Bernanke’s personal idol), has now turned to supporting… gold.

Now, in the other currently ongoing big inflation (other than Syrian and Iran, which are the result of economic warfare) in Argentina, “toiletgate” has again pushed into the press. The Financial Times reported on December 28 that a wad of cash was found in the private bathroom of the Argentine economic minister four years ago, and she has been sentenced for “aggravated concealment of a public document.”

Argentina’s banking system shut down entirely as recently as 2001 after big inflation destroyed the peso’s purchasing power. Soon the Argentinean peso will buy nothing yet again.

We have Argentinean customers who, while they are not yet defecating on the country’s newest currency, are defecting, seeking to exchange their paper pesos for gold and silver. Capital controls instituted by the Argentine government have limited wire transfers, credit card companies have limited transactions, and locally currency exchange often takes place just over the border.

This is a population that could explain how and why to plan for the same eventuality the U.S. dollar faces. But we can do better. As we are reminded, straight from the horse’s mouth via the same Richmond Fed from above:

It was not private speculation or government deficits that caused inflation, but rather reserves and money creation by the central bank.

As we lift off, destination $6 trillion as a monetary base (pre-crisis… $0.85 trillion), Bernanke stated at the December 12 press conference, “[If there is no cliff deal] we would perhaps increase [QE] a bit.”

The bigger they are, the harder they fall.

Dear Mike,

Do you think that if Central Banks are significant net buyers of gold (especially in relation to Basel III), this also means that these banks can also now manipulate the price of gold even more? When Jan 1, 2013 hit, I was waiting to see what would happen to the gold market, even though the Central Banks have postponed some of the Basel III agreements until 2019. But, we just see the price of gold slipping. I can only think of one explanation.

Thanks for your thoughts.

There continues to be manipulation of the gold prices by the United States Treasury through false Stabilazation efforts and some Central Banks. But eventually market forces will win the day and there will be a massive push upward.

James Bullock

If commercial banks and their counterparties demand more physical gold as money-good collateral per industry preference, it will be bullish for the metal.

Manipulation is possible through the use of ETFs, the custodial bullion banks & the paper fractional gold systems at the COMEX and LBMA.

This is good for those seeking to save in physical gold and silver, as accumulating ounces at lower dollar prices exacerbates the shortage, the eventual blow-off, and the quantity of savings one can amass.

If you see gold slipping, that means you see dollar strengthening. We would ask if this reconciles with higher and higher levels of debt, the many plans that exacerbate spending, or the ultra and very long term price trends (+100yrs, +12yrs)?

Thank you for writing in!

- GoldSilver & WealthCycles Research Team

I read an article recently that said drug dealers didn't want paper. They wanted gold. When even they, at the very harsh edge of wild west economics are turning their back on paper, then you know the farce is almost over.

That is a bad news for everybody else. If true, that will make the precious metals investment very risky and undesireble...

We found an article in the mainstream press pushing digital currency. Here is the acceptable opinion of big media for public consumption from The Wall St. Journal article:

Lately it seems like the only people who carry cash are corrupt officials, drug traffickers and terrorists.

Not only is this "true" that the mainstream media is reporting on money that is hard to trace, it is "deliberate."

Whether cash in hand, silver or gold coin, the message is obvious.

To help with this we quoted & linked to Greenspan above: "it is easy to understand," on WHY they would report on gold in this manner, and lastly check the title:

Gold ... Money Not Traceable

This is the entire point. People are not born to be tracked and traced, in and of itself this is a presumption of guilt. When you are followed around, constantly watched and judged, you are no longer free.

Do you have the link to the article? I wouldn't mind a read

Thanks

Billy

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