Moving Toward an Individual Gold Standard
Moving Toward an Individual Gold Standard, by Rory, The Daily Coin
With the changes happening in the Western world – war, Trump losing his mind and the economy imploding – it seemed like a good time to remind people how long the collapse is actually taking. The last major economic implosion began in earnest in 2007. We are now exactly 10.5 years removed. The wheels are still in place, but the engine seems to be running on fumes. The Eastern world is sucking the life blood out of the Western world economy. This is not a malicious act nor is it even the fault of the East. It is how the Federal Reserve System designed the American economy in 1913. The parasitical Federal Reserve is reaching the end of it’s life and it’s time to find a new host. The new host lives in China but operates around the world. The parasite will jump ship at the right moment in order to become reattached at the appropriate time. The new host, like the current, has welcomed this blood-sucker with open arms.
“The government is very good at making things overly complicated for the purpose of obscuring what’s really going on from the public,” observed hedge fund manager Erik Townsend during our interview in May.
He was making a point about the 2008 bailouts. The Federal Reserve played a leading role, applying trillions in paper-clip and rubber-band solutions. The Fed’s balance sheet swelled from $900 billion in September 2008 to $4.4 trillion as we go to press.
“Since Federal Reserve resources were barely able to prevent complete collapse in 2008,” Jim writes in his recent New York Times best-seller, The Death of Money, “it should be expected that an even larger collapse will overwhelm the Fed’s balance sheet.” Source
How do we beat the system and get ahead right now? We acquire and hold physical gold. Why is gold so far removed from the daily conversation – because of the old rule – “out of sight – out of mind”. This is the same reason gold is always talked down on the financial news networks or any time gold is discussed by the mainstream presstitute media. The goal is to keep the average investor as far from gold as possible. It is the kryptonite to fiat currencies. Once gold comes back to the financial table fiat currencies will begin disappearing.
The truly wealthy people of this world all own and possess gold. Some use the various gold ETF’s – gold price exposure – as a means of acquiring more paper wealth, but let’s be clear – the people that have generational wealth, at their disposal, all possess gold. Gold is money
In the meantime, you can probably guess what one of his recommendations is already: Go on your own gold standard right now, the rest of the world’s governments be damned.
“A fixed exchange rate is not essential to gold’s role in a contract money system,” he said. “It is necessary only that the citizen be free to buy or sell gold at any time. Any citizen can go on a personal gold standard by buying gold with paper dollars…”
He says our Zero Hour remains a distinct possibility — in which the price of real gold you hold in your hand runs away from the “paper price” quoted on CNBC. He thinks it could even be the trigger for the next crisis.
“As long as [gold] holders remain in paper contracts,” he writes, “the system is in equilibrium. If holders in large numbers were to demand physical delivery, they could be snowflakes on an unstable mountain of paper gold. When other holders realize that the physical gold will run out before they can redeem their contracts for bullion, the slide can cascade into an avalanche, a de facto bank run, except the banks in this case are the gold warehouses that support the exchanges and ETFs.”
Even Warren Buffett — that tireless critic of gold and its inability to throw off cash flow — has bought something very similar to gold, says Rickards. “Buffett has been known to disparage gold, but he is the king of hard asset investing, and when it comes to the megarich, it is better to focus on their actions than their words.” Source
We are huge gold fans and would suggest people begin immediately researching, acquiring or adding to their current holdings. The system is very fragile, the underfunded pension programs are next on the chopping block and the governments around the world are going to loot any and all “benefits” the people have become accustomed to having. When this will actually happen is anyone’s guess. We have some hints as presented by Ray Dalio, the privately owned Federal Reserve and the U.S. federal government. The timelines range from 2018 to 2030. That is a twelve year window and on the other side of that window is merciless, uncaring, unforgiving parasite. We can either avoid it or be washed away in it’s wake.