Wealth Confiscation for the Digital Age: the New “Cash Tax”

Directly from your bank account.

From Brian Hunt, director, Casey Research:

“Negative interest rates” have become a phenomenon with economists and the media. But I’m writing to tell you something about negative interest rates you haven’t heard. You certainly won’t hear about it in the mainstream press.

What’s coming at you is a historic event. It’s something our grandchildren will hear stories about, much like the Great Depression or the Cold War. It could send the price of gold much higher in the coming years.

If you know what’s coming, it could mean the difference between having lots of free cash in retirement and barely getting by. And please remember this warning: Social Security will help even less than you think.

To understand the gravity of this moment, let’s cover one of the most bizarre ideas in the world…

Negative Interest Rates.

In a normal world, your bank pays you interest on your savings. It takes your money, pools it with other people’s money, and loans it out. The bank makes money by paying out less in interest on your deposit than it earns in interest from borrowers. For example, it might pay out 3% to depositors while earning 6% from borrowers. This is how it has worked for decades.

Negative interest rates turn your “normal” bank account upside down. They could only exist in a crazy world where idiot politicians are in control. Unfortunately, that’s just what we’re dealing with right now.

Politicians all over the world are ordering banks to charge depositors (you) a fee for storing cash. It’s a perversion of saving. It’s a perversion of capitalism. It’s a perversion of planning for the future.

And it’s going to result in disaster.

Politicians think that by making it unattractive for you to keep money in the bank, you’ll save less money. Instead, you’ll spend more money on things like smartphones and cars. You’ll invest in things like stocks and real estate. This would “stimulate” the economy.

This thinking is very, very wrong. No matter what the government does, it can’t force you to spend money. It can’t force you to make investments if you don’t see good opportunities. Forcing people to pay banks to hold their money is a tax.

It is wealth confiscation for the digital age.

The government and the mainstream press won’t dare call it a tax. But that’s exactly what it is. A negative interest rate policy is a tax. Any time you hear a politician, central banker, or news anchor say “negative interest rates,” just think “TAX.” Think “TAX ON MY CASH.”

Negative interest rates are going to result in financial disaster that will wipe out many people. But you don’t have to be one of them. I’ll explain how you can sidestep this disaster—and even make a lot of money as a result of it—in a moment.

But let’s quickly cover one more thing about negative interest rates…

If the government makes it unattractive for you to keep cash in the bank, you can pull cash out of the bank. You can simply store it in a safe or under the mattress. Politicians know this. That’s why they’ve created another dangerous policy that works hand-in-glove with negative interest rates.

That policy is banning cash.

You see, if you pull your money out of the banking system and stuff it under the mattress, you aren’t doing what the government wants you to do. You’re not spending money or investing in stocks. This is a major reason why governments are banning large cash transactions and large denomination bills. They are fighting a War on Cash.

In just the past few years…

  • Spain banned cash transactions over 2,500 euros.
  • Italy banned cash transactions over 1,000 euros.
  • France banned cash transactions over 1,000 euros, down from the previous limit of 3,000 euros.

And just a little while ago, former U.S. Treasury Secretary Larry Summers called for a ban on the $100 bill! Historians aren’t surprised by Summers’ idea. Franklin Delano Roosevelt banned $500 and $1,000 bills in the 1930s. You can bet that our politicians will do the same thing in a financial emergency.

By making it so difficult (or illegal) to buy and sell things with cash, the government wants to force people into the banking system. That way, it can monitor us and coerce us into whatever it wants… like pay outrageous new taxes.

It’s all a dream come true for government central planners. The governments say these new currency laws are for fighting terrorism, money laundering, and drugs. But the ultimate goal is control of society… and to confiscate the wealth of private citizens.

As Congressman Ron Paul said, “The cashless society is the IRS’s dream: total knowledge of, and control over, the finances of every single American.”

Whether you agree with these regulations or not, the conclusion is obvious: By driving us more and more toward trackable digital payments, the government has made it much, much easier to confiscate our wealth. We’re like sheep that have been “herded” into a corral, ready for shearing.

And our politicians of all stripes are holding the clippers. However, you don’t have to be sheared. You can avoid the shearing by learning how to navigate what will become the largest underground currency market in history.

They don’t Want Your Gold, They Want Your Cash

On April 5, 1933, President Franklin Delano Roosevelt issued one of the most controversial orders in U.S. history. It went by the name “Executive Order 6102.” Not one American in 1,000 knows about this order. But to this day, many experts consider it to be one of the most destructive acts in U.S. history. It violated sacred principles held by our Founding Fathers. It impoverished millions and confiscated the savings of honest, hardworking Americans.

Executive Order 6102 made it illegal for private citizens to own gold. Citizens were ordered to turn in their gold to the government. In a nutshell, it was the act of a desperate government in the midst of a financial crisis.

The government wanted the gold in order to increase the nation’s money supply. It believed an increase in the money supply would revive the struggling economy.

An increase in the money supply… a struggling economy… a desperate government.

Sound similar to what is happening right now? And could such a confiscation happen again?

As the crisis develops, our deeply indebted government will act like a giant wounded beast, lashing out in all directions. It will grow more desperate for control. It will grow desperate for money. And just like FDR did in the 1930s, it will confiscate the wealth of private citizens.

But Hillary Clinton, Donald Trump, or whoever wins the election won’t go after your gold. Nowadays, the gold market is very small compared to the overall economy. Going after gold would be too much work for the government.

The government is going to go after your CASH. It will regulate your cash. It will tax your cash. It will take your cash. This has all kinds of implications for banking and the economy.

But here’s the most important thing you need to know as investor:

Negative interest rates and their partner, the War on Cash, will create a renewed interest in gold. This could cause gold to double or even triple in value.

Even children know what the government is doing is crazy. And people aren’t going to take this lying down. Rather than participate in the government’s monetary farce, people will go underground.

They will pull cash out of banks and hoard it in safe places. And they will seek the safety, anonymity, and reliability of gold and silver.

Gold and silver have served as money for centuries. Gold is the ultimate currency because it doesn’t rot or corrode. It’s durable, easily divisible, portable, has intrinsic value, is consistent around the world… and it cannot be created from thin air. It cannot be debased by the government.

By enforcing negative interest rates and fighting a War on Cash, the government will create a huge underground currency market. And the ultimate underground currency will be gold and its sister metal, silver.

Gold is trading for around $1,260 an ounce right now. As the government blunders into a negative interest rate disaster, gold will likely rise 50%… 100%… possibly even 200% higher. There’s an underground currency market coming to your neighborhood. If you own enough gold, you’ll be its king.

A cash tax isn’t the only bad thing that could happen after the election. A backroom Congressional deal legally mandates Social Security “cuts.” It’s the Social Security Bombshell every candidate wants to keep a Secret. To get the full details, read on here.

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  163 comments for “Wealth Confiscation for the Digital Age: the New “Cash Tax”

  1. James McFadden says:

    This article reads like one of those goofy “buy gold now” because “the sky is falling” promotions – an attempt to pump up the gold market. It’s full of all the same hype that has appeared for decades. I’m not denying that the economy is in trouble and will decline over the next couple of years – perhaps for a decade or more – but this “buy gold” propaganda with its sensationalist tone: “historic event” “gravity of this moment”, “remember this warning”, “perversion of capitalism”, “financial disaster.” Come on – are we supposed to fall for this stuff? The kicker is “I’ll explain how you can sidestep this disaster—and even make a lot of money as a result of it” – which appeals to fear and greed – right out of the con man’s rule book.
    Dredging up Roosevelt, order 6102, Ron Paul, and claiming negative interest = tax — this is nonsense. Negative interest is not going to ruin capitalism – capitalism was ruining itself with 40 years of loose money policy by the Fed policy leading to the mother of all speculation bubbles. And even without these stupid neoliberal policies, by putting profits ahead of the planet – capitalism was destroying the environment. You can’t have infinite compounding growth on a finite planet – it was bound to fail – neoliberalism just sped up the failure.
    The idea that gold is some sort of economic savior is nonsense. Face it – gold is a fetish with little intrinsic value. It’s primary useful application is for coating electrical contacts against corrosion – and we don’t need much to do that. The other uses (jewelry, finance, dentistry, medals) we can pretty much do without since they are fetish driven.

    • Anna Zimmerman says:

      Hear, hear Mr McFaddon. I’d like to add that I’m surprised that the normally erudite Wolf Street would parrot that old nonsense about banks lending out bank deposits. Surely the financial intermediary theory of banking should now be banished from serious conversation, along with Santa Claus and Leprachauns?

      • Wolf Richter says:

        Banks lend (= create an asset on the banks’ books) wherever that money comes from, including deposits, but deposits are not the only source of money these days, obviously, since banks have the ability to create loans without relying on deposits and can thus create their own money. But deposits are still part of it.

        Remember, money even on the banks’ books is fungible.

    • Wolf Richter says:

      You’re making some pretty goofy arguments yourself, including this adorable gem:

      ==> “Face it – gold is a fetish with little intrinsic value.”

      An asset is worth what a buyer is willing and able to pay for it and what the seller is willing to sell it for. The price at which this asset changes hands is its value. Period. Everything else – including this nonsense about “intrinsic value” – is BS.

      • bud says:

        BRAVO WOLF…..seems the trolls are everywhere now. But they can’t seem to be anything but radicle in their single minded thinking and groundless addenda’s.

      • Toddy says:

        That’s a bit harsh. Some assets do have intrinsic value. Potable water for example because you can’t opt out of drinking.

        For many in civilized society, gasoline also has intrinsic value because without it (transportation) they too would perish.

        Most “assets” traded in the banking system have zero intrinsic value because they’re contracts derived from the original asset (however many layers removed it might be) and a contract is entirely based on perception of its value in the future, to your point.

        The argument that gold will rise in perceived value by 500% or such is hyperbole but the essence of the article is accurate. The moment people realize that their cash savings are worth less tomorrow than they are today you will have a run on banks and a political fallout.

        Ireland can happen to any country.

        We have fixed asset inflation precisely because of the war on cash. Until something gives way, it’s only going to exasperate. And mind you, fixed assets aren’t easily traded when hell breaks loose, unlike contracts.

        I’m stockpiling water and gasoline (ust kidding)

        • walter map says:

          “Ireland can happen to any country.”

          It happened to Iceland. And Greece, Portugal, Spain . . .

          Iceland did the only reasonable thing it could do: it repudiated the fraudulent debts and imprisoned the banksters.

          No such luck for Greece, as the banksters who corrupted and infiltrated the government made sure it had joined the EU and could not escape their predation. Now they’re asset-stripping the country.

          They will get the rest of the planet in the fullness of time.

      • seamus o'bannion says:

        A loaf of bread has intrinsic value because it can keep me from starving. And I have intrinsic value to myself – so I eat the bread to stay alive. Reducing value to what something can be bought or sold for reveals an eerie and frightening fracture in your pathetic, mercenary, limited reality.

        • Wolf Richter says:

          We’re talking about ASSETS! Assets that are traded, shorted, horded, manipulated, etc.

          This website is about business, economics, and finance, and NOT about what to do to keep from starving.

          We’re not talking about every-day items like photos of my wife gazing down from a mountain, which has sentimental value to me, but no value as an asset. Bread is not asset. It’s a consumable product. You should at least try to keep the distinction straight.

    • Petunia says:

      I agree with you about gold having little intrinsic value. I think valuables in the future will be items with high utility in the culture. A future where gold is valued at 40K per ounce is ridiculous. Why would an ounce of shiny metal be more valuable than a car, or any other actually useful item. Even silver has more industrial applications. The elites are trying to convince us that a small amount of a highly transportable metal is more valuable than the vehicle used to transport it. No way. I see gold as another way to extract wealth from people. I would rather hold useful items or a multitude of currencies to buy them. When the SHTF some country will still be on top.

      • Jungle Jim says:

        Petunia, in the ruins of post-war Germany, you could buy nearly anything if you had the right currency. American dollars and Swiss Francs led the parade, but in the absence of currency there was gold, American cigarettes, Scotch whiskey and antibiotics like penicillin. You would be amazed at how readily gold is accepted even under nearly apocalyptic conditions.

        • seamus o'bannion says:

          And let it be known that you are wandering around with a pocket full of gold, and you will be amazed at how short your life can be under nearly apocalyptic conditions.

      • Discgman says:

        A Home is an asset. Not a liquid asset, but asset never the less. But it valued as much as someone is willing to pay for it at a certain time, just like the dollar and inflation. But you need housing to live. Gold has always had value due to its value someone else is willing to pay for. If your talking about if the world collapses gold is just a rock, then you can say that about anything that is not supplying your livelihood. Paper money would be used for kindling.

        Gold in our current market is a valuable commodity and yes you will see its value rise as banks try to limit paper cash and invent new ways to digitize cash. Bitcoin, apply pay, google wallet (now defunk) is where banks and stock markets want to go. Goverments will need digital cash to track bad guys and keep tabs on good people. I dont see a problem of buying gold. Every electronic device in the world uses it. Companies strip electronic boards to collect it. It must have some value in the future. Sure it will go up and down, so does the stock market.

      • andy says:

        I guess you never lived thru time when several zeros added to your currency over several years. I have. If a gold coin will be valued at $40K, a car will be a cool million, that’s all.

    • Winston says:

      James McFadden – yes, this column damages its credibility by using hyperbole and by so blatantly pushing gold. However:

      From Bailouts to Bail-Ins: Understanding the Dodd-Frank Act



      “The latest news from Cyprus reported in a Wall Street Journal article late last year is that the existing shareholders were almost completely wiped out and 21,000 bank clients who had deposits of more than 100,000 euros saw 47.5% of their unsecured savings converted to equity making them 81.4% owners of an insolvent bank.”

      It’s time to kill the $100 bill
      by Larry Summers


      Suddenly, only just now, the use of large denominations in crime requires their elimination… says the person most responsible for the GFC.

      Japan to print additional ¥10,000 bills as more people stash their cash at home (due to negative interest rates)


      And I need to correct the author’s claim in this column that negative rates are a hidden tax – NO, any rate BELOW the rate that MARKET FORCES would set for money is “a hidden tax.” And considering that the historical average rate for 1 year CDs is 5.5% (IIRC), the current rates are one hell of a tax aren’t they?

    • Mark says:

      I do agree with your comment. Gold is mostly useless metal and it had its day during Jesus times because there was no printing press and computers. Today it is ONLY fertilizer for financial markets and NOTHING more.
      I buy it sometimes on uptick to make money (real money) and that’s all.
      If it is so valuable how come it is sold for currency (any currency, or $$$ which is printed “out of thin air”)?
      Things are not valued and sold in ounces but in $$$ real money. Now don’t get me wrong “real money” has its own problems which multiply with altitude. Things that many gold bugs mention like you can buy same things for same amount of gold now and 70 years ago is plain BS.

      • seamus o'bannion says:

        Psychologically and culturally, gold is the externalization of greed. You can’t eat it, sleep under it, keep dry under it, or ride it anywhere. As for the last element, if I need transportation, I can sometimes hitch a ride with my ex-wife on her broom.

        • cv5 says:

          For pity’s sake man. It is the result of an understanding and appalling fear of the inevitable.

    • cv5 says:

      OK. So conduct an experiment:

      Hold a big pile of fiat clownbux for 10-20 years,
      and find out if you can purchase anything other than
      a pack of chewing gum.

      You fail to understand that you are a ongoing victim of the Ponzi.

      • Mark says:

        You fail to understand that I’m filthy rich and 98% of that is made with real money.

      • Agnes says:

        cv5. I liked seamus’ comment about bread and wolf’s comment about assets because they reveal the tension caused by “no fixed measuring device” … that is, that assets are hard to price properly. I think this is the basis of much fear. (“Fear is caused by misplaced trust”) What do you think?

    • Gary says:

      James McFadden: You lost me at “capitalism was destroying the environment”. So you’re one of those environmental nutjobs (or conjobs). As in “pay a tax sacrifice to appease the Climate God”. That’s a goofy argument.

      • James McFadden says:

        Actually I have a PhD in physics, took the time to study the science, have been following this subject for decades, and regularly attend science talks on climate change including attending the American Geophysical Union in SF. I’m pretty satisfied with the scientific basis and agree with the vast majority of scientists. Where do you get your information? Talk radio?

        • Sammyja says:

          Climate models are and have been wrong:

        • d says:

          Yes they say we have much more time than we do.

          The Amunsden? floating ice sheet is breaking up, as the anchor on the bottom has already melted off. ( name maybe wrong, what is happening, is happening)This will allow the whole of the Eastern (western)? Antarctic land based ice field to move into the sea, then the same in Greenland.

          If the Atlantic gets much hotter the gulf stream will die.

          Then as Europe and the great-lakes band of the US goes under Ice. Alaska and Siberia will return to open tundra, all year and Africa will heat even more.

          The gulf stream keeps those three places warm and ice free.

          The Sahara will again be a tropical rain forest.

          The ice will effectively move from Antarctica, Greenland, and the Arctic. Back to Europe, Russia, the central Asian steppes, and great-lakes America.

          In this process sea levels will rise, then drop, as Europe Asia and America ice back to were they were 10,000 or more years ago. When New Guinea, and the Bismark sea Archipelago, was part of Australia.

          The Bering straight land bridge, may return.

          Man accelerated global warming creates extremes of weather (Lots more cat 5 and 5 + hurricanes, maybe even cat 6) and will cause a climatic shift.

          not simply make everything everywhere, a little warmer.

    • Robert says:

      “Face it – gold is a fetish with little intrinsic value. ” Well, James, face it- you can’t crank it out on a printing press either. In WWI, when Lawrence of Arabia was trying to enlist the Arabs to fight the Ottoman Turks, he wired Whitehall and told then to ship him gold coins to pay them- for some ungodly, completely undecipherable, probably fetishistic reason, they wouldn’t take paper. (I kid you not.) Another writer tells us that banks have no need for savings deposits to make unlimited loans- and that too is the recipe for having to have wheelbarrows to carry enough paper to the grocery store. The reason Britain was forced off the gold standard in 1931 was because they had counted on forcing defeated Germany to pay for their massive WWI debts, and when it did not happen, they could no longer honor their bonds. This is what actually triggered the Depression here; banks had a full $40 in gold for every $100 on loan- now THAT is a bank reserve!- but it was not enough as people began demanding specie for their gold certificates (i.e., dollars!), and the banks failed one by one. Anyone who suggests that reserves are meaningless is a fool, and should at least invest in a wheelbarrow. $20 trillion in unpayable national debt is thanks to central bankers, not gold.

    • Anonymouse says:

      The only part I’d agree is the way the article comes across, much more like an infomercial. However Wolf is correct, BUT the issue he’s not address is what percentage of your asset.

      First, Gold has more intrinsic value then any other asset and can be use anywhere, more places then USD. So its value is more secure anywhere in the world then anything else you will ever own (besides food/water/gun).

      Second, you’re going to diversify in a down economy, so what asset has the highest probability to retain its value? Cash … depreciates. House depends, based on location, rental income, natural disasters, capability of a buyer and you’re tied to a Govt that will milks you for more tax money. PMs… have shown a history of securing purchasing power. Stocks, that’s manipulated too, and at its highs, hard to predict, maybe after a crash. Bonds, too many are likely to fail. T-Bills which are tied to USD so its depreciating.

      Please if its not PMs, Cash, then House(in that order)…what else has a higher percentage likely hood to preserve wealth in an unpredictable but inevitable doomed economy?

  2. ML says:

    Here in UK it is cheaper for banks to borrow on the wholesale money market than from depositors so the banks pay hardly any interest on deposits and current accounts. According to my bank, I am amongst a dwindling minority that has a free current account. Most customers pay a monthly fee which includes loads of account ‘benefits’ none of which would be of any interest/use to me were I forced to switch.

    • Nicko says:

      It is scary, and humbling, just how little cash the vast majority of people have on hand. Most live pay-check to pay-check, perpetually on the edge of ruin.

      • seamus o'bannion says:

        This conversation probably wouldn’t be taking place if the mega-rich were still being taxed at 70%, as they were from FDR to Reagan. And the Clinton co-presidents didn’t help by gutting Glass-Steagle and allowing monster banks to come into existence. Why should we be dependent on any corporation,
        such that we have to absorb their losses? No entity should be too big to fail.

  3. frederick says:

    Well James it may be “goofy” to you but İ believe owning real money is alot better than wothless depreciating fiat paper but thats just me

  4. Julian the Apostate says:

    I recently opened a new bank account and lost my totally free checking. True this article is the gold-bug mantra. But Mr. McFadden’s comment is that of one of the True Believers bleating the Company Line. The points the article makes about negative interest rates and The War on Cash are dead on accurate. While Capitalism did cause environmental damage (out of ignorance at the time) it also came up with answers to the cleanup. They did a good job – and since the EPA needed an excuse to continue to exist, they made up a ‘pollutant’ out of whole cloth: carbon dioxide, and the concomitant fantasy of global warming. If gold (and its sister silver) are barbarous relics, expensive door stops and the like, why exactly is an ounce of gold worth $1,260, after all the pounding it’s taken from the Comex et. al.? Roosevelt was a cutpurse. The current crop are hackers. Matter of degree. Mr. McFadden also confuses Capitalism and a mixed economy, or to use modern parlance, Crony Capitalism.

    • bud says:

      “they made up a ‘pollutant’ out of whole cloth: carbon dioxide, and the concomitant fantasy of global warming.”

      Sill man. EPA you say? Why not call the US NAVY asses while you are at it since they take it VERY serious and actively are preparing for what they know is truth and not FANTASY …as you so expertly put it.

      • Petunia says:

        The Navy doesn’t control the contracts issued on its behalf. They execute the will of the commander in chief. In other words, they do what they are told.

        Julian is more right than you know. The whole global warming/climate change industry is a huge hoax to extract more wealth from the truly productive. I worked on Wall St. when they were making this crap up, and I still can’t believe they got away with it.

        • d says:

          “The whole global warming/climate change industry is a huge hoax to extract more wealth from the truly productive. I worked on Wall St. when they were making this crap up, and I still can’t believe they got away with it.”

          So you are saying there is no human influenced global warming and sea levels are not rising due directly to human activity.

          Good, go buy beach front in lowland Florida. Or Kiribati.

        • Petunia says:


          I lived five minutes from the beach in FL for 15 years. The seas are not rising. This is another made up lie. During hurricanes the beaches erode and they are restored. Other than that the coastline is the same as I remember it in the 70’s.

        • d says:

          “The seas are not rising. This is another made up lie.”

          The people on Kiribati dont agree with you.

          So as they are wrong why dont you go and buy some land there, its very very cheap now. You could make a huge profit. If you are correct.

        • Nicko says:

          Sorry but, the pentagon, vast majority of the world governments, scientists, and even oil companies acknowledge and are adapting to human caused climate change. Accept the reality.

        • d says:

          “The whole global warming/climate change industry is a huge hoax to extract more wealth from the truly productive. I worked on Wall St. when they were making this crap up, and I still can’t believe they got away with it.”

          Lets see you go tell that to them


          In that Part of the world don’t be surprised if their reply.

          Is, to eat you.

        • Robert says:

          @Petunia: It is indeed hard to know what to believe. I always had doubts about the supposed rising levels of C02(and the new industry to get a cut out of new regs)- after all, every green plant absorbs it and then gives off oxygen, so wouldn’t new production simply stimulate plant and forest growth? But on the other hand, in the Business and Tech section of today’s Wall Street Journal, in an article “Cruise Ships Now Test the Northwest Passage,” a map is shown comparing the extent of the ice cap in Sept. 1985 vs. Sept. 2015, and the shrinkage is striking. But whether it is true or not, there is no harm in conserving energy.

      • EVENT HORIZON says:

        Listen to the Lectures by John Casey. (NASA) about Globalist Warming and something interesting about Cooling.

        • James McFadden says:

          John Casey is not a NASA engineer or a scientist – he is a con artist.
          Much written about this fraud.

        • Wolf Richter says:

          James, “fraud” is a crime in the US. But Casey has not to my knowledge been convicted of a crime. So don’t make those allegations here just because he makes up stuff on his website and speeches. Fabricating nonsense is not illegal.

          Here is more on John Casey:


          “Casey is a retired engineer, having worked on the space shuttle at NASA for most of his career. Post-retirement, he now describes himself as a climatologist, claiming on his website that he is “one of America’s most successful climate change researchers and climate prediction experts” without providing any evidence that he has any coursework or research experience in climate science. Luongo parroted Casey’s line, word-for-word, without attribution, in his “newsletter.”

          “So, what is Casey’s claim to fame in the realm of climatology? That the sun exhibits cycles of activity. No. Really. That is Casey’s main thesis from his 2008 paper “The existence of relational cycles of solar activity on a multidecadal to centennial scale as significant models of climate change on Earth.” Casey makes the claim that his paper was peer-reviewed but a quick search for the paper title and author on Google Scholar shows that it has never been published anywhere other than his own website. A quick review of his website shows that this is the only formal paper Casey has written on the subject beyond various “Global Climate Status Reports” available for $8.95. Looking at the free summaries of his status reports shows that they’re largely a continuation of claims made in his 2008 paper.”

          To read more:

        • James McFadden says:

          Wolf –

          There are two definitions for fraud:

          1) wrongful or criminal deception intended to result in financial or personal gain. synonyms: fraudulence, cheating, swindling, embezzlement, deceit, deception, double-dealing, chicanery

          2) a person or thing intended to deceive others, typically by unjustifiably claiming or being credited with accomplishments or qualities. synonyms: impostor, fake, sham, charlatan, quack, mountebank;

          I was referring to the latter – and the remainder of your comment has made my point – thanks for revealing this quack.

          By the way, I’ve spent my entire career designing and building experiments for NASA (over 40 on various satellites). So I know a bit about the organization. First it is big. Much of it is a giant bureaucracy – mostly managing contracts nowadays. It has some really good scientists and engineers, but like any large organization, it has a lot of dead weight — and its share of cranks. Just because someone claims to have worked for NASA doesn’t mean much – most have rather mundane work experience and are no more competent than people in any other large organization. Most people who work for NASA are not actually NASA employees, but are contractors from some private company – which is what I suspect Casey was. None of this says anything about his predictive powers regarding climate science. He apparently tries to use this past association with NASA to argue from authority. My point is that having worked for NASA as an engineer doesn’t make one competent regarding climate science any more than an auto mechanic would have competence to opine on the structural integrity of bridge designs because cars drive on them. He is part of the phenomena of pseudo-science that our nation is experiencing as we become overwhelmed by information, most of it irrelevant, and much of it propaganda designed to manipulate us. So people retreat into the world of magic and illusion – focusing on stimulating amusements and cultural escapism. Truth and knowledge are no longer absolute – but are what one chooses it to be. And so you get people who cite from the plethora of nonsense put out by the propaganda industry, and using this propaganda to support their world view – smug in the comforting thought that reality is what they choose to believe. But the world does not work that way – we don’t create reality – reality created us – and we don’t get to pick and choose the rules.

    • walter map says:

      “While Capitalism did cause environmental damage (out of ignorance at the time) it also came up with answers to the cleanup.”

      You are gravely mistaken. Very few environmental cleanups ever occurred. Pollution was merely taken away from the public eye. A lot has been exported to India and China, but it still comes back, the hard way. Environmental degradation and resource depletion is accelerating. You have merely been deceived, and you are glad of it. You don’t know what’s in your food or your water, you don’t want it know, and they’re not going to tell you.

      “carbon dioxide, and the concomitant fantasy of global warming.”

      Big Oil has you suckered, but even they have known for decades and for certain that anthropogenic climate change is real.


      The nice thing about reality is that it continues to be reality regardless of the quality and quantity of your self-deception.

      “Mr. McFadden also confuses Capitalism and a mixed economy, or to use modern parlance, Crony Capitalism.”

      The recent history of M&A activity should have been sufficient to convince you that ‘crony capitalism’ is the dominant form of capitalism, and it hungers still. Adam Smith was perfectly aware of it and said so in no uncertain terms. More of it will convince you eventually.

      The board game Monopoly was invented by a socialist to demonstrate the evils of capitalism. In the end, one player bankrupts all the rest.

      Guess what? You’re not going to win. You just think you are.

      • bead says:

        Out of curiosity, what is the expected practical action to stop or slow global warming? OK, the scientists insist it can’t be stopped so let’s just discuss “slowing.” Is this where the democracy taxes itself on fossil fuel consumption? Happily leaving the lobbyists out of the picture, why does anybody consider this likely? Perhaps in a future wonderful generation but I find it difficult to imagine at present.

        Or is the endgame obeying the philosopher kings who know better?

        • walter map says:

          “Out of curiosity, what is the expected practical action to stop or slow global warming?”

          You can’t. It would take decades just to reduce the rate of acceleration, and by then you will need all of it to run massive cooling systems just to salvage what you can. The path dependencies are set. It’s too late. The die is cast.

        • Nicko says:

          Walter is quite right, the world’s ecosystems and climate have entered a new ‘human’ epoch, there is no going back. The only hope is that we adapt in time, preserve, and repair what we can.

        • EVENT HORIZON says:

          Year 1 A.D. World was warmer than today

          Year 1,000 A.D. World was warmer than today.

          Year 2,016 A.D. Pacific has been cooling. Crop failures in all counties north of the Alps. RECORD cold in Mexico, Vietnam, etc.

      • Mark says:

        Can somebody open window, so all stupidity said can leave room.
        Thank you.

    • James McFadden says:

      “Capitalism did cause environmental damage (out of ignorance at the time) it also came up with answers to the cleanup … fantasy of global warming.”

      What nonsense.

      First, I don’t know where Julian got the “out of ignorance” – which is total BS. Capitalism maximizes profit at the expense of everything including people and the environment. And like the tobacco industry, capital enterprises (Big Oil and Monsanto) continue to knowingly hide their damage in pursuit of profit.

      Second, capitalism never solved anything. It is just a mechanism for directing profits to the investor class. Engineers and scientists solve problems — often ones they create. We can thank (and blame) the engineers and scientists for industrialization and technical progress. Capitalism was merely an accelerant to the process of industrialization — one that allowed a small cabal to claim the surplus value as their own. That acceleration is part of the problem, not a solution. It doesn’t allow enough time to recognize the problems we create from that industrialization. And we often spend more effort cleaning up the mess then was gained in value from the initial burst of production. Capital enterprise just dumps the costs on the rest of us – privatizing profits while socializing the costs. Property rights over human rights. And since a capitalist economic system places maximized profit for the investor class above all other human needs, we end up with a perverted world with sociopaths rising to the top. Capitalism is creating a world where profit today is more important than our children’s environment tomorrow.

      • Wolf Richter says:

        Capitalism is a way to fund economic enterprise (via debt and equity “capital”), including the things that engineers and scientists invented. This economic activity funds wages and government budgets, and the like, including your livelihood, whatever it may be.

        Capitalism allows those that fund economic enterprise to make some money for taking the risks. Capitalism can be brutal on investors if it is allowed to function (which it wasn’t during the Financial Crisis when investors got bailed out).

        There is no place in the world where capitalism isn’t regulated. But there is a lot of disagreement on how to best regulate it.

        • walter map says:

          “Capitalism allows those that fund economic enterprise to make some money for taking the risks.”

          “Some” money?

          Don’t look now, but Capitalism just confiscated Greece, and the process of that confiscation, deliberately engineered, was perfectly risk-free.

          Greece was just for practice.

          All in good time.

        • Wolf Richter says:

          The corrupt politicians that ran Greece borrowed money they didn’t control (the euro) from investors and banks around the world, sucked much of that money out of the system, and then ripped off the private-sector investors (remember the 70% haircut in 2012) whose money this had been.

          Much of their remaining debts have been bought (the “bailout”) by the public sector (central banks, bailout funds, etc). Via these mechanisms, taxpayers in other countries are going to get ripped off over time by these corrupt Greek politicians who’d borrowed the money, and by the corrupt EU and other officials who’d then bought this debt from private sector investors to bail them out.

          Greece was not forced to borrow this money after joining the euro.

          This is how capitalism punishes investors for being stupid and lending money to Greece. No one EVER should lend money to Greece – except at very high yields – because you’re just going to get ripped off.

        • walter map says:

          “The corrupt politicians that ran Greece borrowed money they didn’t control (the euro) from investors and banks around the world”

          Those corrupt politicians were cronies of the banks and co-conspirators in loansharking Greece, including plants from Goldman Squid, which was also largely responsible for engineering Greece’s falsified application to join the EU in the first place.

          The evidence that the Greek government was deliberately corrupted by bankers to achieve precisely this result is not only overwhelming but has been freely admitted by several of the perpetrators, including Goldman.

          Loansharking entire countries by big banks has a very long and distinguished history.

        • d says:

          The anti bank spindoctors again with their lies.

          “including plants from Goldman Squid, which was also largely responsible for engineering Greece’s falsified application to join the EU in the first place. ”

          Goldman contractors in Europe were asked and paid by greeks to falsify the documents and get them signed off (Audited) so greece could illegally join the EUR.

          The same Goldman contractors were also asked by greeks to develop loan instruments that would not show in the national accounting during Eu Audits.

          All was fine until the currency shifts 08, as the goldman contractors had long since left goldmans, and the corrupt greeks had nobody who knew how the fraud worked, to hedge it properly.

          Goldmans was never prosecuted as it didnt do anything wrong. Its contractors did.

          The corrupt greeks, who arranged the false accounts, the hidden loans, and the extra tax free undeclared payments for the Goldman contractors are mostly still alive in the EU and have never even been formally questioned over this multi-billion Eur fraud.

          Yet everybody blames Goldmans (good old Jewish name that). And bankers (Banker being code for Jew).

          As its easy.

          The corrupt greek’s, don’t even get looked at.

        • walter map says:

          “Greece was not forced to borrow this money after joining the euro.”

          No force was needed. The bankers had their people in place to ensure Greece would get sharked. It worked, too.

          “This is how capitalism punishes investors for being stupid and lending money to Greece.”

          The banks are profiting enormously. They’re privatizing the country. Goldman certainly has profited from its part in the scam:


        • d says:


          Communism alwasy fails as it removes the benefit from personal endeavor.

          So is the current, ever expanding Population, Cheap Credit fueled, Consumerism based, model of Capitalism, long term, Ecologically sustainable.??

          Or do we need to return to a more durable model of Capitalism. Where retail banks do not, and can not, create money, From air, at their whim..

        • Wolf Richter says:

          d, I would love to see “a more durable model of Capitalism,” as you say. I would want to include in that the power of capitalism to punish and destroy investors – even the biggest ones – when their risk-taking blows up. This is one of the self-policing powers of capitalism, and our version of crony capitalism removed that function.

          On the other hand, capitalism needs to be strictly and fairly regulated – ie. create a level playing field, prevent monopolies, dispute settlement processes, etc. – or else it turns into chaos.

        • d says:

          Capitalism has to be regulated as you suggest, so there has to be a tax on it.

          These regulations must ensure a level national, and international field, with no system gaming or monopoly’s.

          Darwinism MUST be allowed to return, as you say there should be NO TBTF, anything.

          Any state bailout MUST be without doubt, shown to be in the greater interest of the society and rigorously scrutinized.

          It is in the interests of the society to have a low level social safety net, that can not be gamed, labour regulations, and standards, to control unscrupulous employers.


          Planned obsolesce and sealed proprietary components need to be more stringently regulated.

          There is a developing issue with electronic control Hardware/Software proprietary components that have a built in guaranteed failure after X many cycles.

          That need a computer S#code to be entered before the rest of the items system, will recognize the replacement component. These codes are not on, in, or with the existing components, so it is very hard to reuse recovered working modules.

          Enforced Planned Obsolesce, by computer. BMW is one of the larger offenders in this.

          Capitalism can function profitable, making equipment that last a lifetime, and is repairable. Along with good quality shoes, that are made to last, and be repairable, currently it dosent want to. It wont again, unless it’s made to.

          In those regulations, repairable Quality, needs some protection from cheap throw away junk, in the interest of preserving finite resources, and consumers.

      • EVENT HORIZON says:

        Gee, exactly which pages out of Das Kapital did you quote all that?

      • kceb says:

        Two major problems with your argument:

        1) You infer then that Communism (and every other) is better for the environment? Seriously?
        2) You forgot to mention your PhD.

  5. Nicko says:

    A goldbug article? Come now wolf, you’re better than this.

    • Wolf Richter says:

      Opinions diverge over gold – as they do over all other investments. That’s what makes a market.

      One thing for sure: gold has had a great year so far, outperforming stocks and many other investments.

    • Jungle Jim says:

      If the authorities really tighten the screws, I expect a black-market or at least gray-market economy to develop. It may be part barter, part non-US currencies, and part precious metals.

    • walter map says:

      The article’s advocacy for the pursuit of gold as a tactic to delay the inevitable is actually a side issue. The article is really about the consolidation of the world’s wealth at the top of the food chain.

      You are not at the top of the food chain. Deal with it.

  6. David Lentini says:

    Not sure I get the logic. If we all buy gold and silver, then those markets become ripe for the government’s action. But even if we are able to own gold and silver, what do we buy with them? When most people will be truly cashless, how do you make change on a $5 transaction with a gold or silver coin worth $100? Sounds like King Midas to me.

    And those idiot politicians. Who came up with this idea? Idiot economists and bankers who are so dumb and greedy that they will destroy all of society’s wealth just to hold on to their for a few more years.

    • walter map says:

      “how do you make change on a $5 transaction with a gold or silver coin worth $100?”

      You don’t. You’ve hit on a fallacy in the article. At best the resort to gold is a delaying tactic.

      • Petunia says:

        This is why holding multiple currencies is a better strategy. In a global breakdown some countries will still be functioning and be at the top of the heap.

    • Bobcat says:

      The way to make change is to use gold and silver coins. The bullion coins might be too high a dollar value but the “junk silver” coins will be less. Search on silver coin values to find out how much a mercury dime or a barber quarter goes for. “Junk silver” is plentiful and is priced at some multiplier of face value, depending on the melt price per oz.

      What do we buy? Think more in terms of barter. It’s an old concept but what was old is new again.

      Finally, I don’t recommend putting all of one’s eggs in one basket. These are uncertain times. It makes sense to hedge one’s bets.

    • Intosh says:


      Bitcoin has a better chance of becoming an underground currency than gold. For one thing, it’s less vulnerable to government action.

      • Bigfoot says:

        “For one thing, it’s less vulnerable to government action.”
        Don’t fool yourself, the ‘ off switch’ can be thrown at any time. Everything is vulnerable to government action. Bitcoin= underground currency?? Is that what some teach these days?

        Not that I crave either but given the choice of the gift of bitcoin (fluctuating electrons) or physical gold, choosing the physical gold is a no brainer. I tried grabbing some electrons once, shocked the hell out of me!

  7. Michael Francis says:

    I think I might just keep my cash in the bank and when such events start to take place will see what the top 1% are doing.

    I’m sure the ruling elite will have the answers and hopefully bloggers like Wolf and Zero Hedge will sniff out what the smart money is doing.

    • bud says:

      You just hit the nail on the head…they don’t know what to do with it. All the places they were dumping it, have peaked or exposed and just another bubble. I think the 0.1% will be just fine, but the 1% I think they have a problem that just might turn them into the new middle class or less.

      We have seen the play before and just because the stage set is different, doesn’t change human nature to believe in “everything will turn out just fine”.

    • Intosh says:

      The thing is, usually, the ruling elite have options not available to the average person. Just like they have more ways to avoid tax than the rest of us.

  8. d says:

    Having excess liquidity in a bank these days, is almost a dumb as buying gold at 1200 + OZ

    Silver maybe if it comes down a bit.

    gold at these falsely inflated prices Never.

    How do i justify my position on gold.

    Simple, look at the silver gold divergence since 1945.Gold bugs will tell you the price of silver and gold is being artificially held down.

    whatever when the divergence unwinds. I might think about physically owning some more gold, (What I have, I inherited) never before that.

    I dont have any DEBTS.

    Having Excess liquidity is a pain, where and how to store it.

    Urban property, JOKE.

    Rural property, anything nice with any location, is also overpriced.

    • bead says:

      Stocks! How many years before poor retail investors embrace the Bernanke put? Excess liquidity beats poverty. But you have a point about storage. Brinks trucks are probably expensive. It takes major cash flow to maintain a personal army. What prevents a government from simply outlawing gold? It seems as though the conditions for successful goldbuggery are pretty narrow. Some disorder, just not too much.

      • bud says:

        “What prevents a government from simply outlawing gold?”

        What difference does it make if something is “outlawed” or confiscated?

        Why would you believe that anything would be immune from the hand of any government.

        As far as storage is concerned, a shoebox can easily hold $250,000 in gold which is about the same volume as fiat paper.

        An insurance company will insure gold (as jewelry anyway) but no insurance company is going to insure a shoebox of fiat paper money.

        • bead says:

          No difference if you can’t buy anything with it. Guns and barter! The shoebox idea is a good one. Of course the insurance company survives the chaos. When I’m retired and almost blind, how good a shot will I be anyway?

        • EVENT HORIZON says:


          When they “outlaw” cash, they will certainly outlaw GOLD and Guns.

          That is the plan. They have been working on this for 200 years. Surprised? It’s all there for those who can “see”.

    • Agnes says:

      d How about financing an entrepreneur? That would use up cash nicely :) :) :) Ok, so you don’t want to risk it you just want to store it….How about buying a whole town? It has been done in Wyoming….or a really good quality Hotel…that is what Anschutz did…or finance pumping water uphill in the nighttime so it can flow downhill in the daytime(the best battery we currently have…..). I enjoy your posts d

      • d says:

        How about financing an entrepreneur?

        These days most of the are selling unicorns, or want to much.

        The issue with real estate, is that if the State/national administration wants to take it, and give no, or very little compensation, it will, further it owns you, as it all has a tax, and services charge liability.

        I have a tree-farm, (which also generates carbon credits) a leased out dry stock unit, and urban rental property, which combined generate an after tax return. And a cost free place for me to personally be, if I want.

        Dealing with retail tenants is a pain, paying someone to do so, is expensive.

        Banks were fine (per sae) until the bail in Issues arose.

        If it gets ugly FDIC will evaporate, and bail in will be on all depositors to 100%.

        In the country I used to hold cash in, FDIC, no longer Exists. Other country’s are and will go that way.

        Quietly, properly berried on my treefarm I have some, lead, copper, Bronze, and tin. Incidentally now is a reasonable time to buy that stuff at scrap value again.

        “or finance pumping water uphill in the nighttime so it can flow downhill in the daytime(the best battery we currently have”

        You use solar, to pump water up into a tank, to run a water wheel at night, and have also a wind mill. Perpetual motion, with the sun replacing the energy loss

        Do it wright and you can also start with dirty/salt water and end up with potable, in that cycle. My tree farm has a small one of these so it dosent need batteries to run its Fire/Trespasser watch.

        Have you ever noticed that the big dirty electricity generators, price just at the level where anything else is not cost competitive. And have the system rigged so any grid tie, is cost ineffective.

        Or if you are in spain you must pay tax to the state and the electricity generator, on the green energy you generate for yourself.

        And I have my house that floats, and is energy self sufficient.

        • Agnes says:

          d. …… As far as I know FDIC is already gone in the U.S., except for accounting tricks, likewise the Pension Benefit Insurance Corp. Hmmm, sounds like you are good to go, but If I think of anymore amusing ideas I will share :) I donate my time to some good people who can’t afford me–that is a way of being efficient with purchasing power. These are grown-ups, but having children is another good way to use up energy and cash. And you get to instill in them your thoughts. As a 20 year vet of the child wars (“never let them get you timed”–thanks Dad), I can say being at least adequate at raising children is the third hardest thing I have ever done.

        • Wolf Richter says:

          Agnes, I don’t know where this nonsense about the FDIC keeps coming from.

          The FDIC is alive and well. 100s of banks have collapsed, and the FDIC took care of all their insured depositors. I had an FDIC insured CD in one of them (Washington Mutual). When the FDIC took over, it transferred the deposits and loans to other banks, including my CD. Outside of the name changing on the documentation, I never saw the difference. I got paid every penny in principal and interest, and when due.

          No FDIC insured depositor EVER lost a dime. Sure, the FDIC can’t fund a situation when all banks in the US collapse simultaneously, but your car insurance can’t fund the liability costs either when all cars in the US crash into each other simultaneously. That’s how insurance works. And that’s what the FDIC is (Federal Deposit Insurance Corporation).

          Check it out and read its limits on the deposits it insures. If you’re in the US, it’s something you should know: https://www.fdic.gov/

        • Agnes says:

          Wolf I did some research…

          “The loss on assets and the loss to the insurance fund differ because a portion of the loss is borne by bank shareholders and uninsured depositors (in the case of payoffs). Moreover, in a P&A the premium paid serves to offset any loss to the FDIC. By subtracting from the loss on assets the book value of equity, the premium paid and the losses borne by uninsured depositors, an estimate of the loss borne by the FDIC can be obtained. For P&As the loss to the FDIC per dollar of failed bank assets averaged 28.4 percent. For payoffs the loss averaged 35.3 percent of assets. The difference is not statistically significant at the 0.10 level. Finally, the loss of assets and the loss to the insurance fund will differ if purchasers are provided favorable tax treatment.”

          So about a third of all assets are losses due to liquidating assets…I was adding up by hand the losses listed on the FDIC site but I am out of time, so I will (maybe) get that to you another time(losing access)(I was up to July of 2008 post Wa Mu only and was up to 25 billion in closures…but it doesn’t matter because of this:

          “Traditionally, the FDIC’s borrowing authority at the Treasury is limited to $30 billion, but Congress bestowed unlimited borrowing authority temporarily as part of the Emergency Economic Stabilization Act of 2008.

          The deposit insurance fund is currently at 1.01 percent, meaning it has $1.01 for every $100 of insured deposits. The law requires that the fund is maintained at a level of at least 1.15 percent. The FDIC is required to submit a restoration plan detailing how it will bring the deposit insurance fund above the minimum within a five-year period when the fund slips below the required level.”

          Of course they can inflate the money supply to pay for those deposits, and they can call it insurance. But I can’t call it insurance if they are creating the digits out of whole cloth.

        • d says:

          FDIC IS great Idea. When I worked in baking, we still had it. It made our entity very safe, from a depositor’s point of view.

          With a late night vote in parliament, by the left, it was gone.

          If Berni sanders wants that FDIC money.

          Under the guise of braking up banks, and protecting taxpayers from banks.

          He will take it.

          After he has spent trillions, America simply dosent have. Which he plans to do.

          When insurance company’s go under, nobody gets paid.

          FD Insurance C.

          It could, so one should “Be Prepared”

  9. Cameron888 says:

    The misinformation campaign from the gold pundits (from the likes of Bill Holter and others) about the Comex failed miserably so they will latch onto anything they can to scare you into buying gold and they can tell you just who you should buy it from. And the sellers will very happily take your dollars for the gold and make some very nice dollar commissions in the process..

    Nothing new in this and they all tend to sing from the same basic hymn sheet. The spruiking has been going on for years and there are plenty of gullible people who were induced into buying gold at $1600 and higher all based on their phony voodoo predictions that gold was going to well over $2000 years ago. Also, remember how, according to these salesmen, $1500 was a great buying opportunity once gold started to slide off the peak. You had better get in at 1500 because you will never see it at that price again. The $2000 and above did not happen of course and now all these hopeful people (gosh I hope the price goes up lot) are sitting on big capital losses not to mention annual holding costs eating into the value of their investment that generates no return. Then of course when the price goes up it is all due to the strong gold fundamentals but when it goes down it is all due to those invisible price manipulators. Nothing wrong with our voodoo predictions it is those price manipulators again. Excuses, excuses.

    As for a cashless economic system, Governments can do it anytime they wish regardless of the level of interest rates. They certainly don’t need negative interest rates to implement it.

    As for this…………

    “Politicians all over the world are ordering banks to charge depositors (you) a fee for storing cash.”

    Really. “All over the world”. How about those at Casey research provide a list of all these Governments “all over the world” that have passed legislation or issued legal orders to their banks specifically requiring that all depositors be charged fees on their savings.

  10. Dan Romig says:

    As FDR stated, “In politics, nothing happens by accident. If it happens, you can bet it was planned that way.”

    I think that more than one in a thousand Americans know what FDR did in 1933 with confiscating gold, but that historical fact is not part of our nation’s public school curriculum, and it should be.

    Negative interest rates are a perversion, but it is not an accident that we are there. As Michael Hudson wrote in 2012, “The ‘business as usual’ approach is to keep today’s debt overhead on the books and bail out insolvent banks. This policy implies that financialization was a viable way to get rich in the first place. But the effect is to polarize economies further between creditors and debtors. Economies will shrink as a result of debt deflation, and falling tax revenues will push government budgets deeper into deficit – unless they cut back spending, which will make the downturn worse and threaten full-fledged depression. Unemployment will lead to emigration, the balance of payments will worsen and economies will be even less able to pay their debts.”

    So today in the USA, we have a national debt greater than GDP, and that will continue for decades. We have 6% of our nation’s outlays paying to finance the debt at these artificially low ‘perverse’ rates. We have a stagnant domestic and global economy which precludes us from growing our way out of debt. The only mechanism left to keep the system from exploding is ZIRP, or else default. Trump has brought this up, although not in the most articulate manner.

    A while back, Plato warned, “The price good men pay for indifference to public affairs is to be ruled by evil men.” We are, and have been ruled by banksters that control the two-party status quo.

    • d says:

      “We are, and have been ruled by banksters that control the two-party status quo.”


      You are ruled by the Vampire globalized Corporates, Allied with china.

      Who took the idea of globalization, and hijacked it to lever themselves and china to the top, at the expense of everybody else on the planet.

      What sort of fools freely gl;globalize trade with having globalized tax and commercial regulation first especially with a mercenary nation like chian in the mix.

      American ones.

      Who now cry, that what were their national company’s, have exported their jobs, and keep their new wealth offshore avoiding American taxes.

      America Foisted this Globalization on the planet, Over the Objections of those who said it would be used to drag labour rates and standards down to the lowest common denominator.

      It i snow up to Americans to control and regulate this monster they have foisted on us all. Along with paying for that economically, as well as physically.

      Banksters a childish term.

      To blame a socially acceptable scapegoat soft target, for the stupidity of the American electorate, that allowed its politicians to gut it, and get fat whilst they did so.

      • d says:

        globalize trade, with out having globalized tax and commercial regulation first, especially with a mercenary nation like china

      • Dan Romig says:

        d, let me replace bankster with ‘Global Banking Cartel’.

        Your thesis on globalization is very true, and NAFTA, TPP & TTIP are part of the structure put in place by the powers that be, ” … to lever themselves … to the top … of everybody else on the planet.”

        The Fed and Central Banks are the powers that be, along with the ‘Vampire Corporates’, but ask yourself: how did the power structure come into being? This has been going on in the USA since Hamilton and the founding fathers. Does the Treasury have the power to issue fiat currency, or a private Global Banking Cartel?

        Yes, the stupidity of the American electorate has enabled the Democrats and Republicans to have a stranglehold on political power, and this has been unchanged for more than a century to get us where we are.

        • Petunia says:

          The Clintons foisted NAFTA on the American public and have done more harm to this country than most people could have ever imagined. Still they are considered viable to rule over us once again. Obviously, you can’t fix stupid.

        • d says:


          Is not, and should not be, in the same basket as NAFTA.

          TPP is a rules based system, not a simple access agreement, not everything in it is good, for everybody, everywhere.

          However it also protects, Environmental, labour, standards, and workers.

          One of the Issues for Vietnam in TPP, is that they will have to considerably raise their minimum wage to comply with the requirements.

          America foisted globalization on the world, without setting the rules first.

          China and its globalized vampire corporate allies gamed the system.

          TPP is the first step to stopping that gaming. As Corporates will never deglobalise. Unless forced, china will never play by the same rules.

          Getting the top 40% of the trade on the planet, to play by 1 set of rules, including, Japan and the US, is a major achievement.

          You can not negotiate that in public.

          The TPP agreement is not the end, it is the beginning of the begining, of a new set of GLOBAL trading rules.

          That china will have to sign on to, to remain in those markets, or soon get completely locked out of them.

          There is no Cabal.

          The vampires will trade their Allie china, for the next state that gives them better terms, when it suits them, as foxcon already is in the process of doing.

          These days border advantage two groups Tax collectors and criminals. And serve to control mass unskilled immigration into welfare states.

          Other weise they are an impediment to commerce and peoples lives.

          When there is when set of rules for everybody, everywhere states like china will no longer be able to game the system, or even maintain their existence. If humanity survives that long.

        • Bigfoot says:

          d – I really don’t understand how you are making all these claims about TPP. Do you have the complete set of documents hidden somewhere? So far, all I’ve seen is what little bit has been leaked out. Got something else? Link to full documents? If not, what’s the foundation for your claims?

          You really believe that 500 or more corporations getting together behind closed doors in secrecy to set down rules/laws/regulations is going to make the world better for labor & help the environment? Global minimum wage? While I don’t know anymore than the next person what is in TPP documents so I can’t give an opinion based on any known information, all these corporation acting in secrecy has me believing the only ones will that will benefit are the corporations. I do not believe they have suddenly “found religion” so to speak. Past behavior is the most useful thing in predicting future behavior IMO.

        • d says:

          “d – I really don’t understand how you are making all these claims about TPP. Do you have the complete set of documents hidden somewhere?”

          Wolf has posted a link to it as it stands, he posted it once, I lost it in my mass of links, ask him, he might give it to you us again..

          I know some of the people who started what became, TPP and why.

          I know what is basically in it, and what it does. As if certain changes, as claimed had been made, some country’s would not sign it that have, as politically their populations would not allow them to.

          The information about things like Vietnamams issue with wage rates, is in the public domain, from reliable sources.

          “You really believe that 500 or more corporations getting together behind closed doors in secrecy to set down rules/laws/regulations is going to make the world better for labor & help the environment?”

          Do you really believe if TPP was so bad, that many people could keep that conspiracy quiet, for this long?????? There is no Illuminati or Rothschild bankers cabal for the same reason. In the moder world it is not possible to keep such quiet.

          look at the last selective TTIP leak.

          And the last selective greek IMF leak.

          Panama papers leaker is now seeking immunity from prosecution and of course a payout.

          like the first swiss tax avoidance leaker, he went to jail, but got a huge IRS reward (Millions) He is allowed to keep when he soon get out.

          Segments of TPP have been selectively leaked, and distorted by anti trade agreement, class warrior types.

          Those creatures are a big part of everybody’s problem, as they are basically like Berni Sanders. Who is simply another 1770’s FREE FREE rich man give me for FREE, french street mob agitator.

          They are not out to make the place better, they are out to be the regulators, taking from all sides, living better than the rich, without investing any capital, to produce the funds, to finance their lifestyles. To whit a Mafia gang of legalized extortionists wanting to live high on the public purse.

          They are leeches just like the republicans in france, that went to the Guillotine, after they had expunged and murdered all the rich, pocketing most of the wealth in the process.

          The mob finally figured them out, after they had turned a bad situation in a much worse one. Russian and china under Communism same, except china has yet to deal with a serious mob uprising, its coming.

          My aunt met Stalin more than once.

          Lady Catherina Ashton (an evil crawler), used to be her Goffer.

          There is a difference between a professional Agitator, who seeks to keep the administration honest, and promotes a cause/causes for the greater good of the population/Society, which my aunt was for over 55 years.

          A necessary part of any functioning democracy, Just like a responsible honest political left.

          And one who does similar, to line their own pockets.

          Edward Snowden, Julian Assange, John minto, Berni sander Et al. are all of the latter.


          In the parliamentary party system that the US does not have.

          Legislation that passes TPP.

          Can be Overturned by the next administration, in hours.

          Our law is nicknamed the fastest law in the west.

          I guarantee you, if the TPP is half as bad as people claim, we will overturn it, very loudly.

          As federated farmers will be paying lots of lawyers to be reading it. Line by line, clause by clause, and it it forces us to accept GMO or unlabeled products containing GMO, its gone. GMO is not all they will be looking for.

          Some of the arbitration clause are not the best, however it is hard to strike a balance between American based global vampire Corporates. And government that cynically set to to expunge corporations after taking their money, and accepting the infrastructure they developed. In Africa, Indonesia, south America, china, Mongolia, Russia Etc, governments do this, and get away
          with it, to often.

          TPP is a rule book for the top 40% of the world trading nations. Accompanied by a Mechanism’s with TEETH.

          Including Japan and the US. Two Diametrically opposed cultures.

          You have to start somewhere.

          TPP is that somewhere.

          It has to be better, than the unregulated Globalization, currently being gamed by china and its globalist vampire corporate allies, we currently have.


          we were the first to give women the vote.

          Out Transgender and Lesbian elected politicians, are 30 + years ago.

          We resolved the same sex union deal, long ago.

          We signed the first major free trade deal with, china.

          THEN WE STARTED TPP. Go figure.


          The path of progress, is not always straight, or pleasant.

        • Bigfoot says:

          d- Without being able to read what is actually in TPP, all of it, not carefully chosen tidbits, I certainly could not establish a fact based opinion & I conclude that neither can anyone else. Simple logic.

          Change needed – absolutely 100% agree with that.

          “It has to be better, than the unregulated Globalization”——-
          Again, do you honestly believe that 500+ corporations are going to draw up a plan in secrecy that will voluntarily limit their profits, treat labor fairly, & they will now be good self regulating stewards of the planet to boot?? I would once again cite past history as the most probable indicator of future actions.

          Are you for a global governing body & discarding whatever national sovereignty there may be left worldwide? This is a serious question, just wondering what your stance is. Equitably regulating 7 billion people. Is it even in the realm of realistic possibilities?

        • d says:

          “Are you for a global governing body & discarding whatever national sovereignty there may be left worldwide? This is a serious question, just wondering what your stance is. Equitably regulating 7 billion people. Is it even in the realm of realistic possibilities?”

          Overnight, or even over a century.


          To much remaining Nationalist and Ethnic/religious conflict.

          Globilization can not work properly for anybody, but the Corporates, unless the basic rules, Tax, depreciation, labour, environmental, accounting standards, are the same everywhere.

          Once that happens, and it must, unless we aim to completely unwind global trade Corporates.

          In the long term, bigger block will develop, with the same basic rules. Partly driven by the need to reduce the duplication of Administration with its horrendous costs, in a small area after the commercial regulation’s are forced into line, by the need to control the globalized vampire Corporates.

          The Globalized Vampire Corporates, will continue to act like they do, until the rules prevent them doing so.

          Once that happens criminals, immigration controllers, and Tax collectors, will be the only people who gain from borders.

          Look at the divisions of Borneo and New Guinea due to muslim Indonesian aggression greed and bullying.

          Indonesian Muslims that committed the atrocity’s in East Timor are committing genocide and ethnic cleansing in the New Guinea highlands and nobody gives a as its not very news worthy and you must not upset the Muslims.

          None of those Islands should be divided, Borneo, Timor and new guinea should not be ruled from Jakarta. Or all of those islands from Java to the norther Philippines and over to Noumea should be under 1 federated secular Authority.

          The illegal fishing and smuggling that takes place in that area, is horrendous, nobody can afford to police it properly, and none of them police the edges/overlaps regularly.

          look at central America between Mexico and the canal, Between Mexico and the canal should be 1 state.

          Humans need to move beyond this tribal nationalism, or they will destroy the planet and themselves.

          Without associated genocide, uniting humans out of the barrel of a gun, no longer works.

          The enemies of a united humanity, are the likes of Felix Salmon and Nikola Sturgeon, who promote division for personal gain, when they know it is long term counter productive. And their religious genocidal brothers in Tehran.

          The US and Canada will unite, its simply the how and when, whats slowing it, is the dogmatic American constitution, and accompanying flawed political system.

          Project Europe has run into a wall, as it went to far too fast, It should never have united the north and club med in the EUR as they have diametrically opposed economic models.

          Realistically the EU should still only be, England, Germany, france Austria, the Benelux , and Denmark, at this point.

          However in the current economic and immigration situation, all unions are off, as in recession tribal/nationalism will always to the fore.

          Australia and New Zealand Immigration wise, are moving apart again, a good global indicator of this.

          A lot of this is not completely original.

      • walter map says:

        “You are ruled by the Vampire globalized Corporates, Allied with china.”

        Vampire globalized corporations are owned and operated by the global banking cartels, and you are not allowed to know who controls those. They do have you chasing your tail though.

        You are playing a rigged game of Monopoly. You can’t win, but keep playing anyway.

  11. Vernon Hamilton says:

    It takes your money, pools it with other people’s money, and loans it out. The bank makes money by paying out less in interest on your deposit than it earns in interest from borrowers. For example, it might pay out 3% to depositors while earning 6% from borrowers. This is how it has worked for decades.

    no, it isn’t. It hasnt worked like that since George Bailey’s time.

    just think “TAX.” Think “TAX ON MY CASH.”

    Why would I think that? because I’m too dumb to understand, but I know TAX = BAD !!! and we blockheads can only hold thoughts of one to four syllables. Calling it a tax would suggest the payment is being made to the gubmint instead of the bank, which it isnt.

    • Wolf Richter says:

      Here is St. Louis Fed Executive VP and Director of Research Christopher Waller, who calls negative interest rates a “TAX in sheep’s clothing”:


      Of course, the other form of tax that is just as insidious is inflation: a tax on assets and on wages for the benefit of debtors.

      • d says:

        “Of course, the other form of tax that is just as insidious is inflation: a tax on assets and on wages for the benefit of debtors.”

        Inflation is a tax on Savings ( as interest never keeps pace) and wages (as purchasing power also never keeps pace).

        How is it a tax on Fixed assets, that generally do keep pace.

        +++ OT

        do you still have the TPP document link you gave me. I lost it, and Bigfoot needs it.


        • Wolf Richter says:

          here’s the release of full TPP text:


          I gave up trying to read it all. It’s HUGE. So if you manage to bite your way through it, you’ll earn my admiration for all times!!!

        • d says:

          Thank you did you ever to to law school,m there is a trick to these American Baffle them with BS contracts. (which is what TPP now is)

          small doses/segments, and old fashioned pin up notes. on an old fashioned pin up wall flow chart.

        • Wolf Richter says:

          I’ve never been to law school. But I have had to read many contracts in my life. Without fail, reading contracts drives me nuts.

        • Bigfoot says:

          I’ll give it a go as time permits. I dislike legalese but have spent a ridiculous amount of time in the past just to satisfy a question. I read 900 pages of an appropriations bill back in 2010 just to answer a question my wife & a few others had. It was/is amazing what you can find in these bills that never sees the light of day. This bill (can’t remember the HR# off the top of my head) detailed monies for African military bases & included provisions for stepping up the “domestic drone surveillance program.” All sorts of info can be gleaned for those that have the time & patience.

          If I can get through it, perhaps we can have a better discussion down the road. Thanks for asking & thank you Wolf for the link.

        • d says:

          You will need to download a few other treaty’s and such to go with it, its a doozy.

          Hence my position, how do you negotiate something like that in front of congress, and ever get something, those states could all agree to.

          Now its out in the open, from congress, silence.

          From the hysterical anti trade trouble makers, very little.

          This fuss over tribunals in private..

          Unless the information to be disclosed is confidential they are in public. but the reports are all public. I have to read more in debth will take while.

  12. Paulo says:

    If the negetive hits here I’ll buy a rental, offer tenants a deal if they pay cash……don’t claim any expenses on income tax filing, and see where it goes. I would have rentals now, but in our rural area renters can be very bad. Sure, there are great renters around but the horror stories of some are pretty scary. I’m still making 2.25% this year, but the deposits are coming due pretty soon and we have to decide what to do with them?

    Looking at what is happening in Vancouver and down Island, our local/available properties are the deal of the century, but the ‘bubble isn’t going to last forever. People are starting to move this way as they become housing refugees. The retired new people seem pretty well fixed, but the very young couples are just trying to get started. Only the older generation has any money in the bank, and the young are just getting by.

    My daughter, who lives in a very nice little town called Ladysmith (just south of Nanaimo), informed me Sunday night their neighbours just sold their house. It sold in one day in a bidding war. Anything under $300,000 goes within 24 hours. It sold for $325,000 and was a 70+ year old (well kept) bungalow. The original owners probably paid $10,000 for it when they were as young as the new purchasers. Just two years ago my in-laws bought a luxurious rancher for less than that up in Campbell River.

    It has to burst sooner or later. I know it isn’t SF or Vancouver around here, but what I see happening is absolute nonsense. Now is not the time to buy property. It is still more prudent to leave your money in the bank, imho.

    I think it is going to be far far worse than 2008.


    • Petunia says:

      I am not familiar with Canadian geography but I’m sure that big fire in Alberta will add fuel to the already overheated market. There’s always something that can happen to make things worse, unfortunately.

    • OutLookingIn says:

      “far worse than 2008” – Yes.

      Stand in a check out line anywhere, grocery, coffee shop, restaurant, etc.
      Watch how many pay with cash versus those with plastic cards, or the new “must have” smart phone app. You will possibly see one in ten pay cash.

      The “cashless” society is already here. Any article warning ‘Joe Sixpack’ of the coming “war-on-cash’ is now moot. Most transactions (90% or more) are now made with cashless systems, just a bunch of “digits” on a computer screen or numbers printed out on a piece of paper, to which you apply your signature.
      Warning of an oncoming war-on-cash is about as useful at this point, as closing the barn door long after the cow has gone.

      Those who “pooh-pooh” physical gold as just as useless, are beyond being helped in any way possible against their own financial ruin.

      Gold (and silver) has always been money. For thousands of years. And will continue to be for thousands of years hence. This is FACT.
      To ignore this FACT is to commit yourself and your decendents to the poor house. Gold and silver preserve wealth. This is FACT.

      • walter map says:

        “Gold and silver preserve wealth. This is FACT.”

        The Roman silver denarius was debased by 99% over its two-hundred-year history. That is also a fact. There are many such examples. So much for wealth preservation.

        An acquaintance of mine has a gilded lead-alloy bar with a forged refiner’s mark, which seems to have been resold for over a hundred years before the fraud was discovered. It’s worth a couple of euros.

        One has to be careful.

    • Nicko says:

      Some very good deals coming out in Calgary…but only for long term investment. And also make sure you don’t buy in a flood zone. ;)

  13. Bill Schuster says:

    With three countries now firmly established with negative interest rates and their economies doing fine, with the only result being they are now completely cashless, perhaps being cashless is the real intent.

  14. Bigfoot says:

    While this article is just another sales piece using fear & then a ‘I can help you avoid the pain’, let me sell you gold marketing ploy, there are valid concerns raised regarding where we are at politically & financially on a global basis.
    There is no denying the history behind the usage of gold as a store of value or wealth, but there are a lot of ups & downs within the thousands of years of history. I believe storing gold has some value for the very rich & the central banksters. For the commoners, perhaps to pass on down the line in the “hopes” of it making some difference. I think gold will have little value in the day to day realities presented to the majority as history unfolds. It’s just another controlled item. Maybe 100 years from now the ghosts of present goldbugs can say, “told ya so.” Maybe 100 years from now, the 442 nuclear power plants we have created worldwide have melted down & we have finally rendered the earth uninhabitable. Who knows?
    We live in a world where the power structure has confiscated our freedom & turned us into slaves, yet many can’t see it. Gold is not going to rectify this situation. Gold, silver, cash, your labor, your property, your thoughts(freedom of speech) are all controlled by a ruling elite. You are in essence, their property. Anything monetarily related can, has, & will be manipulated & highly controlled & not to the benefit of the common man.

    On a somewhat happier not, I made a nice clip trading both gold & silver. Bought gold in 99′ @ $330oz & silver@ $3.50oz. I was skewed heavily toward silver (& still would be if trading/speculating). I sold due to a failing business, personal tragedies in the family, & going broke helping relatives that had fallen on tough times. I doubled+ my “investment” over 7-8 years on gold & made triple+ on my silver holdings. I retained a small sum of silver. Big deal! From a trading perspective (perceived bottom of a 20 year bear market in gold) it looked like a favorable risk-reward trade. You would think I would be a huge goldbug, but I’m not. And YES, there were these same type of info/ads back then. And YES there was heavy gold manipulation in this time period with many central banks selling/leasing gold forward. Gold has always been one of the most heavily manipulated markets & that’s not changing anytime soon. It is all a game. From strictly an investment outlook, you have to gauge gold/silver like anything else. You must be able to accurately calculate risk/reward metrics & that is hard to do these days.

    Between gold & silver, I favor silver due to it’s medicinal properties & have used it for these purposes for 17-18 years with great results. Excess liquidity, IMO, there are a lot better places to utilize it than buying gold. This would be the basis for an entirely different article so I’ll leave it at that.

    • d says:

      Here you are

      Wolf Richter
      May 11, 2016 at 10:40 am

      here’s the release of full TPP text:


      I gave up trying to read it all. It’s HUGE. So if you manage to bite your way through it, you’ll earn my admiration for all times!!!

      That will make your head spin. Best consumed in small doses.

      • Bigfoot says:

        Thanks, I already got it from the previous posts above. It’s already taking me down a lot of side streets & dark alleys. Maybe next time it comes up for discussion, I’ll be much better informed.

        Problem is you have to go back to original GATT 1947, then have GATT 1994 at your disposal since the majority of TPP is based predominantly on theses agreements. Looking at the table of TRQ’s has me shaking my head. I’ll reserve judgment until I have digested as much as possible.

  15. EVENT HORIZON says:

    The Politicians and Bankers are not stupid. They are the MOST intelligent people in the world.

    That is why they print the money and rule the world.

    WE, the public, are stupid.

  16. Dave Mac says:

    I’ve heard it all before.

    “The end of the world is nigh”

    Gold Bugs never change their tune…

  17. Vern says:

    One of the most sobering scenes in “The Road” by Cormac McCarthy is when the father/son discover an abandoned “survival” bunker and discard the pile of gold for the far more useful canned goods.

    My favorite scene tho was the human abattoir — I’m pretty sure I recognized Jamie Dimon and Lloyd Blankfein shackled like cattle in the basement.

    • Petunia says:

      I read an interview with a survivor of the war in Bosnia about surviving in a real crisis. The man said the most valuable items during that war were bullets, food, and medical supplies. People routinely killed each other over them. Money, gold, and other hard assets were worthless to him.

  18. walter map says:

    In due course you will discover that you are no longer a big fish in a small pond, or even a small fish in a big pond, but a small fish in a big fish.

    Believe what you like. And as Auryn says, “Do what you wish.”

    “The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole . . .

    “They have created periods of booms and busts, inflation and deflation, in order to confiscate and consolidate the wealth of the world . . .

    “They now control every major international institution, every major multinational and transnational corporation both public and private, every major domestic and international banking institution, every central bank, every nation-state on earth, the natural resources on every continent and the people around the world . . .

    “For the last two and one half centuries wealth and power have been concentrating in the hands of fewer and fewer men and women. This wealth is now being used to construct and maintain the World Empire that is in the last stages of development . . .

    “They will then completely control the earth. and its natural resources. The people will be completely enslaved . . .”


    Capitalism will not save you.
    Capitalism is their tool, not yours.
    Capitalism is the bait.

    “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”

    – John Emerich Edward Dalberg-Acton, 1st Baron Acton

    I may not persuade you, but events will, and with certainty. Deal with it.

    Good night, and good luck.

  19. Gian says:

    I am perplexed by those who tout the enevitalbe demise of paper money (just around the corner), yet sell their gold and silver to the public at large for paper money. Sellers of gold and silver who push this narrative would be wise to heed their own advice and hoard every ounce they possess rather than sell it for as little as 200% below its near future level. You also forgot to mention the other precious metal that is fairly exclusive to the U.S., lead and its potential effect on all this when pandemonium breaks out.

  20. OutLookingIn says:

    Gold is the money of kings.
    Silver is the money of gentlemen.
    Barter is the medium of peasants.
    Debt is the lot of the slaves.

  21. RD Blakeslee says:

    Wolf, I’ve made the point before that there are ways to live happily “under the radar”, so to speak.

    While rural self-sufficiency cannot guarantee “life, liberty and the pursuit of happiness” (nothing can), it makes one much more flexible in adapting to hard times imposed on individuals by collective government.

    The successful subsistence of Russian peasants during Soviet times is instructive and our resources here in rural America are much superior to theirs.

    • Paulo says:

      You nailed it RD,

      If I lived down south US I would have a pond full of catfish and a freezer full of….whatever. Maybe wild pig or deer?

      We are very resilient in the country. Today, I am puttering on my boat (which I built myself). The sun is warm, sirius radio on, dogs sleeping in the sun to stagger off into the shade, and I am in no particular hurry to finish. On Thursday my wife and I will pop out to jig some ling cod, and maybe pick up a halibut. It’s been too windy this spring to fish. The other day it blew 45kts (80 km).

      What I wanted to say is that being mindful of the day is very important. It is certainly more important than gold and investments. This could be the best day of your life, our lives, and we might not even be aware of it. My friend slipped off his roof 4 weeks ago and broke his neck…3 vertebrae. He’ll be okay, but meanwhile is trussed and splinted for another 2-3 months. He was in absolutely top knotch condition. He owns a small golf course and was going to open that weekend. His rural neighbours have all pitched in and have taken over many of the chores. I am the ‘greens cutter’. In a month I can share the duties with another friend when he returns from vacation. Until then, every two days I cut the greens and try to avoid the golfers. I don’t think this would happen in a city or larger centre. People would be just too busy, or wouldn’t know the owner. Rural, we all look out for each other. hell, I don’t even golf! Watching the golfers I have concluded I’d rather be the guy on the mower.

      Petunia, the distance from where I live to Ft Mac is over 1500 km, plus a ferry ride. It would be two nightmare long days of driving as you have to cross many mountain passes. It is actually another world, and the situation there, (not counting the fire) is nothing like where I live. Actually. 90+% of Ft Mac is okay and did not burn. The city centre is fine, as is the airport and hospital. Albertans are tough and will be okay. The gravy is pretty thin these days with the low oil prices, but the Albertans will stay to live and work. Many outsiders will return home, though…and never return. Insurance settlements may help some of them do so, plus there will be lots of construction work with the rebuilding.

      Oh, and the sea levels are rising, about 5mm per year in the northern hemisphere. During high tide and a storm it is quite noticeable. I wouldn’t buy a resort in the Maldives!!!

      Coffee break over. All the best you guys.

      • Bigfoot says:

        Thanks Paulo & RD-B, refreshing & truthful posts. It seems the majority spend their time either looking in the rearview mirror bemoaning the past or trying to predict their future. While there’s no shortage of ugly & evil things all around us, there is much beauty to be found also.

        For those that have taken an honest look at the world around them & prepared themselves mentally, financially, & spiritually as best they can, there is nothing else but the moment, so ———————————-Enjoy the day!

  22. Chicken says:

    Good luck with your PMs, been there done that already.

  23. bead says:

    My small gold investment is the only sour note in today’s market. Otherwise it’s all going to the moon as I await confiscation. The big money crew probably won’t inform me when they evacuate. Or perhaps they will stay in the market given the assurance of our beneficent Federal Reserve. These are technical problems after all. As Bernanke tells us, the only limit is (lack of) resolve.

  24. Curious Cat says:

    I wish I was as certain of ANYTHING as some folks seem to be of everything.

    I do agree with Walter Map, though. I am not at the top of the food chain. But I take some comfort in the fact that I understand that. Maybe I can defend myself long enough to not die poor.

    Here’s an interesting article on how rising sea level is affecting Miami.


    It was probably all just made up though.

    • Petunia says:

      Miami is at sea level but a few neighborhoods are below sea level. These areas flood every time it rains for more than an hour. It has nothing to do with rising seas. Every time they need a picture to prove climate change is real they photograph all the known flooding areas. Alton Road is among the worst in Miami. You can get pictures of renovated art deco buildings surrounded by water. It has always been like that. Yes, they are lying.

      • Curious Cat says:

        Yep. That’s what I thought. Made up.

        Wonder why the water is salty though.

        • Chicken says:

          Many parts of Florida should never have been developed or inhabited, that’s the wildlife habitat environmental disaster in so many ways.

          BTW, be careful in Arizona too, there are washes that occasionally flood during rainy season so don’t build your house in one then complain about it, okay?

  25. JP Frogbottom says:

    Whether it is gold, silver, oil, wheat, heat, or water…. or dollars.

    It is all useful in a barter world. When I’m cold, hungry, and out of heating oil, or gas…. does it matter if you take $$ gold or any other commodity in trade?

    Dollars are a ‘useful’ medium of exchange presently, much easier to use than gold or silver. That may change, who knows.

    Should negative interest rates become a reality, more $$ will be stored in my house, or yard, or whatever, than in my credit union.

  26. K kilo says:

    The forbidding of the ownership of gold during the depression is relatively unknown because it did not have any effect on individuals. There was no stopping of women in the street and having the rings on their fingers removed by the police. The reason the president brought in the law was to avoid paying out on government bonds which stated that interest and principle could be demanded in gold – which in deflationary times was proving extremely expensive. The bonds were not defaulted on by the government since paying out in gold would break the law as no one could legally hold the stuff. Very clever legal

    • d says:

      You left out that FDR mandated the buy price down, then allowed it to raise after he had it all.

      some 30% raise APP without checking.

      The main reason he did it was to force people to use the money as they weren’t. So he could tax it.

      After possessing gold was outlawed ICE (Diamonds) and platinum, became a common medium of exchange in America, among those who had been using gold.

    • Agnes says:

      My great-grandfather who employed over 100 people in Cincinnati was put out of business by FDR. I would say the 100 men and their families were all affected. If you might think of Gold as a kind of liquid credit card, and you use that credit card for the ups and downs of a business, then having all your possibility of credit taken away, then you might see where we are heading.

    • Bigfoot says:

      It was probably one of the largest “legal” thefts perpetrated by a government up until that time. Gold used for industrial purposes & jewelry were not included. Citizens were allowed to keep 5 oz of gold & coins with numismatic value weren’t included either. There wasn’t a door to door raid to seize gold but the fines & potential prison sentence were huge. Many complied because it was sold to the public as necessary to save the country.

      Seven months later, gold was revalued approximately 70% higher, in effect, a massive devaluation of our currency on the back of a massive “legalized” theft to the citizenry. I don’t know how you came to the conclusion it didn’t have any effect on people.

      Clever? No, EVIL

      • Oneyedjack says:

        I do not think at this point the citizens would allow themselves to be raped and pillaged any further by the banker and political crooks. People would simply secede from the crooked gov. If you want your gold you can keep your gold!

  27. EVENT HORIZON says:

    IF it all goes bad, there is one item that will be worth more than anything: Tampons.

  28. Brian Richards says:

    I don’t have an opinion as to whether negative interest rates will ever be seen in the US, but such experiments are being carried out right now in Europe and Japan, so all we have time to observe the results.
    I would also like to point out that there appears to be no correlation between the price of precious metals and inflation, regardless of how much this is repeated on blogs, websites and in the press. I keep thinking that surprises of all kinds in life are frequent, so I speculate, since hardly anyone is predicting it, a deflationary event, that destroys nearly everything. I think this might surprise both gold promoters and those on Wall st equally.

    • Agnes says:

      Gold has historically done fine in deflation. But like Bigfoot, I think Silver is the better bet.

  29. Andy says:

    I read this blog daily, but never post. FWIW, this article on gold has brought a lot of posters out of the woodwork, names I’ve never seen before. There’s an unusual number of strident anti-gold voices on this thread. Are these trolls, and is this a sign that forces are now even harder at work trying to dissuade people from moving to gold??

    It only seems common sense that in this financial environment, people would naturally gravitate toward gold as an insurance policy. And if we end up in NIRP, then it behooves people to get out of paper currency.

    • d says:

      Moving to gold is not the problem.

      The current grossly manipulated overpricing of it IS.

      Its divergence from silver, and other metals, proves that.

      Most of the people pumping gold, are selling it.


    • Bigfoot says:

      Andy, I don’t think it’s trolls. Everyone has differing opinions based on their life experiences, their financial status, & their implied understanding of the various market mechanisms in play in this unscientific thing we call economics. I’m glad that people post pro/con on this or anything else. If you believe in one way about anything, I think it’s always beneficial to play devils advocate & really study opinions counter to ones own. I think valid points have been made to both sides of the gold debate here & I’m happy that people take the time to state their case. Thanks for adding yet another consideration.

  30. Oneyedjack says:

    Negative interest rates”-Return to under a mattress is best.Next bartering.If you work at google or silicon valley your skill set would be sol ….lol.If the shtf you would have to defend your property or perish,with a gun and bullets.Look at Venezuela. Thats the future of the US.May also be Wiemar Germany.China and Russia are also ready to set up a REAL GOLD EXCHANGE,NOT A PHONY RIGGED COMEX.What happens next?When they back their currencies with gold, dollar reserve currency is toast.What will the US do ?

    • Bigfoot says:

      What leads you to believe the new gold exchange will be any less corrupt than any other financial exchange out there? Just curious. I also remember the Euro was sold as being backed by gold (10% ??).

      • d says:

        There are some Titanium centered gold bars out there, to detect them you need expensive equipment, or a saw.

        Seller wont let you use saw’s.

        There are also some labeled as 99.99% bars from the US with an up to 20% impurity rate when re refined.

        The Germans had a big issue with the US over this impurity, when they re refined a bunch of US gold bars that were part of a gold repatriation. Eventually the US compensated the Germans for the shortfall, in paper cash.

        Most of the funny titanium bars are supposed to be in iran now along with a lot of the forged US $ although the drug lords also have a lot of funny money in their stashes.

        Without independent testing of every bar, Russian, Chinese, and US gold bars, among others, are not worth very much.

        The US gets accused of the Titanium fill. My money goes on the DPRK or Mauritius, those two can forge almost anything, almost perfectly.

        With the correct tooling, I and anybody, could do it. They use Titanium as unlike lead, the volume and weight lines up, almost perfectly.

        • Lars says:

          You mean Tungsten @ 19.25 g/cm3
          Gold @ 19.30 g/cm3

          Yes, gold bullion carries a really big risk of fraudulism.
          Minted coinage is much more riskless.

          Electronic conversionisms, bitcoin etc, rely on honest infrastructures, not having the plug pulled, or EM attack problems etc.

          All systems of exchange rely on the two parties to the exchange agreeing on the value of the medium of exchange, regardless of that medium. Therefore; the medium is of lesser importance than their mental agreement, the meeting of the minds.

          You know you’ve struck ‘gold’ when the trolls come out in droves ! This article stuck gold !!

          Having a PhD mostly means you’ve been brainwashed by the system more than the average Joe, it doesn’t necessarily mean you are smarter than the average bear, and it usually means you have more to lose from the adoption of a new paradigm than those who are touting the new paradigm have to gain from its acceptance.

        • d says:

          You mean Tungsten @ 19.25 g/cm3
          Gold @ 19.30 g/cm3

          Thank you

          Yes the lack of an edit causes me some issues at times, the upside is, people cant delete deliberate BS they post.

          “and it usually means you have more to lose from the adoption of a new paradigm than those who are touting the new paradigm have to gain from its acceptance.”

          DOGMA many Economist, Historians, and Archeologists, among others, are slaves to it.

  31. wholy1 says:

    Who is the owner of those “FRN’s” in the holder’s billfold?
    NIRP, bail-ins, cash withdrawl limitations/intimidations, po-lice asset seizures, int’l transfer capital controls is just the beginning of what’s to come. Are you trader/investor junkies having fun yet?!

  32. Julian the Apostate says:

    I shall refrain from making facetious comments, since the trolls can’t wrap their brains around them and it distracts them into assuming that they can attack THAT, not deal with the ISSUE at hand, rather like the pigeon playing chess: they knock over the pieces, crap on the board, and strut around the board claiming victory. DON’T FEED THE TROLLS. THEY DON’T ARGUE FOR REASONS THEY SIMPLY ARGUE ( apologies to Putin and Sarek of Vulcan)

  33. Kevin Beck says:

    So some of these comments read that negative interest rates can’t happen here. I just have one major question: Why not?

    Where is there a law on the books to prevent this from happening? And how often in recent times has government broken its own laws for their own benefit?

    Government will do what it wants, and we are bound to suffer the consequences of their poor actions. I am of the opinion that the further away one can get from the explosion when government policy goes wrong, the better off one will be. You may call me a fear-monger if you like, but I would rather be safe without the interference of government than be beholden to government for my safety.

    If one person makes a mistake, then that one person will suffer. If your government makes a mistake, then many will suffer. And many of those will suffer only because they didn’t get out of the way.

  34. J.R says:

    The gold bugs are desperate to make sales. Pretty damned sad.

    Invest in gold (or silver) and wait, wait, wait for your ‘investment’ to finally turn a reasonable profit (but you must time this carefully) and then convert it all back into cash before you can actually spend it. Not a very wise strategy. Gold’s lack of acceptance for actual everyday use make it pretty difficult to actually use. There are far better things to invest in.

  35. Jerry Bear says:

    A gold standard for a currency is a poor idea because the intrinsic value of gold constantly changes. When we had the gold standard we were locked into a constant boom and bust cycle. But I agree, if the economy goes to hell in a hand basket then gold and silver will hold onto their value. This could be important for your survival on an individual level though I would prefer silver over gold for this.
    The order FDR gave did not “confiscate” people’s monetary gold, it required them to sell it to the government for U.S. dollars. Roosevelt used all the gold to create the depository at Ft. Knox. This allowed the U.S. dollar to be backed by gold and made an eventual economic recovery possible. Roosevelt got wind to a scheme of the wealthy class of the time to sell their dollar holdings for gold then send the gold to Europe for storage. Had they done this, the dollar would have been destroyed and the U.S. economy would never have have had any chance for recovery. I am aware of the howls of outrage his order provoked but he did what he had to do and the continued survival of the United States is a testament to his foresight.

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