A Wormhole on Wall Street Fantasy – Part Two
A Wormhole on Wall Street Fantasy – Part Two
Breaking News: Action in the three-ring impeachment circus moved to the center ring, the Senate. Meghan, Harry and the royal family reached an exit agreement. Middle east blowup potential increased. The Afghan war was a waste. Stock indices floated upward to new all-time highs on a sea of central bank liquidity. The Repo crisis continues. Don’t fight a desperate Fed!
Part one explained how I fell through a space-time wormhole and landed in an underground world. Mr. Robot, who resembled a former Chairman of the Fed, guided me through fractional reserve counterfeiting, the gold hypothecation room, museum of failed paper currencies, and a display of rising prices since 1913.
Mr. Robot frightened me with his revelations. Legal counterfeiting, intentional currency devaluation, paper gold, and failed currencies upset my naïve and trusting world. I would see commercial banking and the Federal Reserve differently when I returned to normal life. Scary!
After I finished touring the museum of rising prices, Mr. Robot stood and said, “I’ve recharged my batteries. Shall we continue?” His eyes reminded me of Jack Nicholson near the end of The Shining.
I told him, “Lead on.” We walked down the corridor to another doorway.
“This is another of our accomplishments. I hope you appreciate it.” We entered and saw one large computer. Dozens of cables emerged from the computer and ran into a large hole in the ceiling.
I was not impressed. “What is this?”
“We named this computer ‘Missy.’ Her job is simple. She feeds the major television stations, news networks, on-line outlets, newspapers, academic journals, and university publications. She repeats our message endlessly.”
“I’ll summarize what ‘Missy’ communicates every day.” He stood tall, and spoke, sounding sincere and important, like a politician announcing new legislation. “Central banking is crucial for running our financial system, inflation is low, the dollar is solid, and The Fed manages everything that’s important. Quantitative Easing programs benefit people, and we deserve everyone’s trust and support. The Fed is in charge and will take care of people, so citizens can return to Facebook postings, watching their favorite sports teams, and drinking.”
He smiled at me and asked, “How did I do? Was I believable?”
I shook my head in disgust. Sarcastically, I said, “You’re as believable as your gold hypothecation and counterfeiting schemes are honest.”
“Good. I’m glad you liked my presentation. ‘Missy’ distributes variations of that story every day. It’s important that common people understand and believe the narrative.” His facial muscles tensed with disgust when he said, “common people.”
Mr. Robot did not understand sarcasm.
I assumed ‘Missy’ was short for misinformation. I asked him, “Do our leaders in congress and government believe your story?”
He replied with an air of importance, “We pay them to promote our message. What they believe is unimportant.” The robot’s face distorted, reminding me of a grinning wolf.
I said, “Let’s move on. What else can you show me?”
Mr. Robot led me into another room marked “Gold Storage.”
Thousands of gold bars sat on sturdy steel shelves. Each bar had a mint mark and serial number. I lifted one. Its weight surprised me.
He told me, “That’s right. Gold is 19.3 times heavier than the same volume of water. Those bars weigh about 400 ounces. Impressive, aren’t they?”
I wandered around the room feeling uncomfortable. Something bothered me. I asked, “How often do you audit these bars?”
Mr. Robot told me, “There’s no need for an audit. But as I remember, they performed the last audit back in the 1950s.”
“I read that someone discovered gold plated tungsten bars in bank vaults.” I pointed around the room. “How do you know these bars are solid gold and not tungsten?”
“You needn’t worry. A robot never lies, and I assure you they’re real gold. Also, the full faith and credit of the Federal Reserve backs these gold bars. Everyone knows the Federal Reserve tells the truth. So, the bars must be solid gold. As I said, don’t worry.” He sounded sincere, but a glitch in his programming made his eyelids twitch.
I wondered if the gold bars were real. The paper gold hypothecation scam made me question their purity.
“Maybe you should confirm these bars are 99.5% gold and do a comprehensive audit. I believe in trust but verify. What do you think?”
Mr. Robot shook his head and said, “Not necessary. Let’s move on.”
We walked down the corridor to another room labeled ‘Future Prices.’ He said, “Inside this room is a powerful computer that predicts future prices based on our econometric models. Apple stock passed $315 this week. When will it reach $400? Will Microsoft stock rise to $200? Will gold prices drop to $700?” His knowing smile irritated me.
“Yes, I want those answers and more. Let’s go inside and find out.”
Mr. Robot told me, “Ordinarily that wouldn’t be a problem, but the prediction program malfunctioned during the last decade, so this room is off limits. Sorry.”
I asked, “You don’t know if Apple stock will hit $400 or collapse first? And you have no idea whether gold prices will fall to $700 or rise to $3,700?”
He frowned at me and said, “Like I said, the computer models malfunctioned. The programming goes wonky when interest rates drop near zero or when global debt accelerates higher. Both those conditions distort the computer’s predictions. Maybe you should leave. Ready to go home?”
I jumped on the opportunity. “Yes. I’m anxious to leave.”
“Fine. We have a space-time wormhole transport machine down the hall. I’ll take you there.”
My amazing trip to the lower regions via a wormhole from Wall Street ended moments later. The experience enlightened me.
- The banking cartel creates dollars via fractional reserve banking and outright monetization. They borrow or print billions of dollars into existence every day. Their counterfeiting is legal but dangerous.
- The Federal Reserve promotes the unproven story that central banking is essential. They create trillions of dollars and use them to buy politicians, news stories, academics and the media. The fix is in.
- We all suffer from ever-increasing prices for food, energy, trucks and hundreds of other items. Dollars buy less and prices rise.
- Gold is often hypothecated. Paper gold is a dodgy investment. What happens when the owners of paper gold discover the gold bullion backing their certificates is gone or never existed?
- Fake gold bars can look real. However, gold is valuable, and people are prone to theft and greed. That’s why periodic audits are necessary. The Treasury has not audited the Fort Knox gold since the 1950s. Why? What is the US Treasury hiding?
- The Fed uses econometric models, and their accuracy is suspect.
- The banking cartel and government deficit spending will force continual dollar devaluation. Prices will rise for silver, gold, stocks and hundreds of other necessities. Many stocks rose into the stratosphere in early 2020. However, silver and gold prices are up only slightly and are likely to rise substantially.
From: The Financial Times:
“The Federal Reserve is the cause of the bubble in everything.”
From Bill Bonner: “No, the Government Won’t Go Out of Business.”
“First comes the money printing. Then come asset price increases. Sharply rising consumer prices are usually the last and most spectacular phase of an inflationary disaster.”
From Chris Martenson: The Fed’s Evil Juggernaut
“The US Federal Reserve is once again force-feeding liquidity into the system. At its fastest rate ever.
The result? Record high stock prices whose valuations defy all logic.
What’s wrong with that? Shouldn’t we just enjoy the party and be grateful for our rising 401ks?
What’s wrong is that the Fed’s actions are dooming us. Their poisonous cocktail of endless cheap money and rock-bottom interest rates is hastening a terminal breakdown of the economy, while deliberately enriching a tiny cadre of elites to the ruin of everyone else.”
Miles Franklin does not borrow dollars into existence. They sell physical gold and silver, not paper substitutes. Call them at 1-800-822-8080 for real gold, not the paper stuff.
The Deviant Investor