Best of the Week
Most Popular
1.Trump Delirium Triggers Stock Market Brexit Upwards Crash Towards Dow 20,000! - Nadeem_Walayat
2.The Future Price Of Gold Will Drop Below $1000 In 2017 -InvestingHaven
3.May Never Get Another Opportunity to Buy Gold at this Level Again - Chris_Vermeulen
4.Delirium - The Real Reason Why Donald Trump Won the US Presidential Election - Nadeem_Walayat
5.Why Nate Silver / Fivethirtyeight is one of the Most Reliable Election Forecasting Indicator? - Nadeem_Walayat
6.Gold Price Forecast: Nasty Naughty November Gold Price Trend - I_M_Vronsky
7.Gold Mining Stocks Screaming Buy! Q3’16 Fundamentals - Zeal_LLC
8.Delirium of Trump Mania Win's Mr BrExit US Presidential Election 2016 - Nadeem_Walayat
9.The War On Cash Goes Nuclear In India, Australia and Across The World - Jeff_Berwick
10.Hidden Signs for Gold and Silver - P_Radomski_CFA
Last 7 days
Our Future Economy, Jobs, Banking, And Governance - 5th Dec 16
Gold and Silver Bullion Buying Opportunity for 2017? - 4th Dec 16
First UK BrExit then Trump, Next BrExit Tsunami Wave to Hit Italy HARD Sunday! - 3rd Dec 16
The 10YR Yield and SPX Stocks Bull Markets - 3rd Dec 16
Gold And Silver – Do Not Expect Much Difference With Trump Compared To Obama - 3rd Dec 16
Gold, Currencies and Markets Critical 61.8% Retracements - 2nd Dec 16
Gold Junior Stocks Q3’16 Fundamentals - 2nd Dec 16
Adventures in Castro’s Cuba - 2nd Dec 16
We Are Putting Off the Inevitable - 2nd Dec 16
Macroeconomic Cycles & Demographics - A Fuse, An Explosive and The Igniting Catalyst - 2nd Dec 16
How Moving Averages Can Identify a Trade - 1st Dec 16
Silver Prices and Interest Rates - 1st Dec 16
America, is it Finally time for us to say Goodbye? - 1st Dec 16
Blockchain Technology – What Is It and How Will It Change Your Life? - 1st Dec 16
Burn the Flags, Can Trump Salvage The Sinking US Economic Ship? - 1st Dec 16
Will US Housing Real Estate Market Tank in 2017? - 1st Dec 16
Referendum Puts Italy's Government to the Test - 30th Nov 16
Why We Haven’t Seen Gold Price Rally after Trump Victory - 30th Nov 16
Breakdown and Slide in Crude Oil Price - 30th Nov 16
A 'Wicked Rally' in Gold Price Predicted - 30th Nov 16
Silver Market Sentiment Looks Golden - 30th Nov 16
Indian Demonetization Denotes Severe Stress in the Global Gold Market - 30th Nov 16
Owning Gold and Silver in Troubling Times - 29th Nov 16
Trump's Presidency - Stock Market Crash or Start of New Mega-Trends - 29th Nov 16
Prime Minister Modi's War Against Corruption, Black Money and Fake Currency Notes in India - 29th Nov 16
Can President Trump Really Drain the Swamp? - 29th Nov 16
President Trump’s Economic Plan Isn’t Going to Work - 29th Nov 16
The US Bond Bear Market Has Begun! - 29th Nov 16
Simple Yet Powerful Technical Trading Tools - 28th Nov 16
Public Infrastructure – Welcome to the World of Waste, Fraud, and Abuse - 28th Nov 16
Fifty Years Later, Moore's Computing Law Holds - 28th Nov 16
An Elusive Stock Market Top - 28th Nov 16
This Past Week in Gold - 27th Nov 16
Italian Bank Collapse European Sovereign Bond Carnage, Criss-Crossed Fuses & Lit Bonfire - 27th Nov 16
How to Beat UK Savings Crisis with Child Junior Cash ISA, Pension's and Life-time ISA - 27th Nov 16
Castro Was Not Who You Thought He Was - 27th Nov 16
Understanding the Trump Presidency , Beyond Merkel - 26th Nov 16
US Stocks Bull Market New All Time Highs - 26th Nov 16
Silver Mining Stocks Q3 2016 Fundamentals - 26th Nov 16
MSM's Stock Market Druck'n Suck-In Continues - 26th Nov 16
Gold Price Down 13.5% In 13 Days - Opportunity For Geometric Price Cost Averaging - 26th Nov 16
Tips for Trading Options with Elliott Waves - 26th Nov 16
Germany Pulls the Plug on Market Oracle site for 24 hours, German Election BrExit GerExit Warning Shot? - 26th Nov 16
New NS&I 2.2% Savings Bond Ahead of 2017 Stealth Inflation Theft of Purchasing Power - 24th Nov 16
Establishment Controlled Mainstream Media Launches War on Alternative 'Fake' News - 24th Nov 16
Black Friday Cheap Christmas Lights, How Long do they Last ? B&M Stores Review Video - 24th Nov 16
War On Cash Goes Global – India and Citibank In Australia - 24th Nov 16
Stocks, the Politically-Driven S.O.D. to Lose Again - 24th Nov 16
One of the best buying opportunities in history? - 24th Nov 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

$10000 Gold

Bail-Ins And Negative Interest Rates, The Ultimate Admission Of Failure....

Interest-Rates / US Interest Rates Mar 14, 2016 - 02:16 PM GMT

By: Submissions

Interest-Rates

Mike Hoy writes: ... Cash and Physical Gold, Standing in The Way of a Lifetime of Financial Servitude and Slavery!

For the last several decades, the out-of-control growth of US Government spending when combined with the unlimited printing policies of "The Fed" has set the stage for "The Perfect Storm!"

Anyone with a simple calculator can easily understand how it is virtually impossible for 320,000,000 people to retire a current and rapidly growing debt of $19,000,000,000,000. This is a sum which equates into $60,000 worth of debt per man, woman and child in the US today. Please ignore the fact that half of the population pays no income tax at all. Forget about the $100,000,000,000,000-$200,000,000,000,000 in future entitlement obligations as only a dreamer could believe this debt has any chance of ever being funded with anything other than more worthless paper!!


Two very important factors separate the US from the rest of the indebted nations of the world. First; the US debt dwarfs the debt of all other nations. Second; the US population has been brainwashed into the false belief the mere existence of "The Fed" is an "unquestioned given" entitled with the "inalienable right to print" unlimited trillions of fiat dollars to bail itself and any of its friends out of any mess they may find themselves in!

The US financial system came within an eyelash of imploding in September of 2008 as "The Run" on money market accounts threatened to bring the financial system to its knees!

To the rescue came "Helicopter Ben" as head of "The Fed" armed with his theories from a lifetime of study which he was eager to implement in a real life situation.

"Uncle Ben" opened the floodgates passing out trillions in "monopoly money" as he believed the solution to the problem was more of the same. He was presented the classic opportunity to attack and destroy the enemy responsible for the creation and implementation of "The Financial Weapons of Mass Destruction" while bringing to justice those responsible for the desecration of the world-wide financial system.

Unfortunately his mousetrap wound up being designed by and for the benefit of the "rats" responsible for the implosion within the financial system. Instead of being the cure for the impending nightmare "Uncle Ben's policies" wound-up becoming an effective vaccination for the "rats" as their numbers multiplied with the disappearance of the cheese; leaving the masses of the world to deal with the mortal side-effects of a corrupt financial world gone mad!

Not only did no one go to prison as a result of the 2008 implosion but the solution chosen by The Fed to print trillions has made a very dangerous financial nightmare exponentially worse when "The Fat Lady" does makes her appearance!


The Next Chapter is Written:

It was not enough lowering interest to zero destroying the life savings of depositors; now the architects responsible for "The Next Depression" are currently in the process of unveiling their next and greatest scam on the bank depositors of the world as they know the orchestra is warming up in preparation for the finale!

Regardless of the misinformation being spewed daily by a bought-off mass media the architects know the day of reckoning is close at hand where their derivative nightmare is imploding and depositors will be lined up demanding their funds just like 1929.

They are also aware of the fact that "you never let a good crisis go to waste" particularly when the greatest opportunity to legally rob their depositors has availed itself at the exact same time "justice" should be pounding on their door to haul them away in chains!

Negative interest rates are the proposed camouflaged bail-in funding scam designed to not only cover-up one the greatest banking debacles of all time but it also serves as the blueprint to pull off the greatest banking heist in history as depositors will be "locked in" to a lifetime of slavery and servitude with no place to run!

Not only has their lifetime savings been stolen but they now must pay, to the same thieves who stole their money, lifetime fees on every withdrawal and deposit to their captive bank accounts!

Simply put; "bail-ins" are designed to give the Government, and their banking friends, complete and absolute control over the finances of every citizen in this Country and The World for the rest of their lives! This is another "tax" that will never go away!


Forever Mortgage on Life: Abolition on Cash:

It is no accident the Countries of the world are in the process of eliminating cash from their societies at the exact same time negative interest rates are becoming a household phrase. These Countries, including the US, know the only way they can maintain absolute and complete control over depositor funds while charging for the privilege of being in possession of those funds is to eliminate all competition. Cash is their greatest immediate competitor and it must be eliminated. If you eliminate cash withdrawals there will be no standing in line as the system implodes!

This act, most likely, will bring about the architects own demise as eliminating cash withdrawals will end in a massive panic to purchase and take possession of physical gold and silver. This transfer will repatriate depositor funds from a bankrupt system to a physical asset that is no man's liability which will never be worthless! Gold's recent breakout from its multi-year bear market is a direct result of the masses awakening to the growing risk of confiscation in the banking system!

Therefore, "The Powers That Be" must also "attempt" to eliminate the actual purchase and possession of physical gold and silver! Failing to do so would create a leak in the dam which imprisons captive depositor assets. To ignore this leak would compromise the structure of the dam as the funds escaping would exponentially grow in numbers as the masses awaken to the diabolical theft now underway!


"The Trigger" Which Brings Down The House of Paper!

For decades, The US Dollar earned its seat at the head of The World Reserve Currency Table through strong leadership in financial, economic and fiscal trade policies where the US amassed the world's largest trade surplus. Unfortunately, those days are fond memories as the US is clearly the world's greatest debtor nation as the outsourcing of its manufacturing base has destroyed millions of US jobs where consumers are now dependent upon foreign made goods and services to supply the trinkets and toys they can no longer afford but are addicted to buying.

This shift from being a major producer to an indebted consumer has rendered the historical US superiority advantage obsolete in many fields they were once masters!

Two generations of US Citizens have been born and raised under the mistaken belief that financial issues which are being dealt with on foreign shores as a result of fiscal irresponsibility simply cannot happen here. I wish it were true but history begs to differ as the facts bare out!

Bank "bail-ins" will be the "ultimate admission of failure by the Government" exposing decades of lies, corruption and manipulation which have become adopted and unquestioned as a normal practice of doing business!

The illusion that all is well created by certain elected officials being spread by a "bought off Mass Media" will continue until a trigger is pulled bringing true reality into the lives of those who have never learned to think for themselves!

I have written in the past that I believe "The Trigger" which ultimately sets the dominoes in motion creating long lines at the bank to get cash, which simply does not and never has existed in quantities sufficient to ward off bank runs, will be a massive disruption in the physical delivery and supply of gold as the public awakens to the fact that they must regain control of their own personal wealth.

When the day arrives where the public is denied the right to purchase physical gold and silver either by Government decree or the fact that the physical supply of gold has reached its available supply limits at prices anywhere near these levels; gold and silver prices will rise dramatically and a New World Reserve Currency will be born which I believe will be backed by gold.

The logic is simple; if you are a foreign supplier of goods and services would you prefer to accept as payment, for your labor and declining resources, a currency printed out of thin air, backed by only a promise to pay from the world's largest debtor nation or would you prefer to trade in a currency backed by gold regardless of the conversion ratio?

The only question which needs to be answered deals with the timing of "The Trigger" being pulled. Until that day arrives, when the supply of gold disappears, the "Game" will continue with the ultimate winner taking full advantage of every opportunity to add to their holdings converting the never-ending flood of overpriced and worthless paper into an asset with limited supplies which will never be deemed "worthless!"

One would think the value of the paper currency would collapse as the transfer from paper to gold is taking place. Oddly enough, the exact opposite is happening as the value of the paper is being supported at record high levels to maintain the illusion that all is well on the financial Homefront of the fiat paper dominated society, while the price of gold and silver has been manipulated in the paper markets to the downside for years in hopes that gold would revert back to its once believed place in the financial chain as that of an "Archaic Relic!"

Just imagine for a moment the absolute giddiness of those who for years have been dumping paper, they know to be worthless, at record high prices; while taking the massive profits and proceeds to buy the limited available quantities of gold at prices they cannot even begin to comprehend.

These accumulators of true wealth are perfectly content to see this "Game" go on as long as possible! The "Game" will end when the supply of gold is depleted culminating with the crowning of a New World Reserve Currency backed by gold!

The irony to this madness is the fact that the masses, when they awaken to the financial collapse directly in front of them, will initially revert to history as they panic to buy the dollar thinking they have a safe haven in which to ride the storm out! Unfortunately, the recent rise and breakout in the price of gold may be a sign that "The Greatest Bubble in the History of Paper Currency" is in the process of being burst!

Those with exposure to long term 10 year and 30 year US Treasury Bonds yielding well below 3% are going to be in for some very unpleasant surprises as the world panics to dump paper that is deemed to be very questionable in safety while yielding no return on their investment.

One must be in a prescription induced hypnotic trance to own 10 year and 30 year US Government bonds at record high prices and record low yields when the only hope of ever refunding their principal is through the printing of more worthless paper.

Miss a few payments on your credit card and then tell me how high your interest rates rise! Do you really think record low interest rates on record high US Government debt have anything in common with a free market environment? This is not a bad time to think about "Return of Capital versus Return on Capital!"


All is Not Lost!

Those who believe today's times share frightening similarities with the Depression of the 1930's might be interested to know that while the vast majority of US citizens suffered greatly, with many of those losing everything, there were those who prospered.

If the theories behind anything written in this article come to pass then I believe the financial events of the last few decades has set the stage for enormous wealth to be made as the masses awaken from their "normalcy bias" induced trance to begin seeking answers to simple questions they should have asked long ago!

And this ladies and gentlemen is where history offers a viable hedge against the uncertain times which most likely will mirror the Depression of the 1930's! It is not a question of "IF" but only a question of "WHEN" "The Trigger" is pulled bringing about the change that very few can even begin to comprehend!

This will be the subject of my next article which is currently in the process of being written.

An Open Invitation!

For those with an interest in investments we own in our own portfolios I invite you to join my Free E-Mail List where I share my thoughts and investments with those who are on my list. I currently view my favorite equity position as one of the best and most timely investments I have ever made at these prices.

Those with an interest to join my list or have any questions can simply respond at the e-mail address below where you can ask to be added to my list! I have not nor will I ever sell or distribute any information from my list.

mhoy@neb.rr.com

Mike

Mike Hoy is a graduate from The University of Nebraska in Lincoln Ne.  He has a degree in Accounting with a minor in Economics.  He spent 15 years as a licensed series 7 broker in the US from 1978-1993.

Mike has been writing since 2004 where he write specializes in the financial markets, economics and the precious metals.

© Copyright Mike Hoy 2016

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife