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Jim Rickards: They're Going To Lock Down The System

When central banks can print no more, money will be trapped
Sunday, November 6, 2016, 1:50 PM

This week, seasoned financier, risk manager and author Jim Rickards returns to the program to share the predictions from his new book The Road To Ruin: The Global Elite's Secret Plan For The Next Financial Crisis

Rickards warns of a coming confidence boundary in central bank omnipotence. Once breached, trust and belief in the central banking cartel quickly vaporizes. Rickards predicts that boundary will be crossed by 2018 or sooner; and when it is, the entire financial system will go into lockdown, freezing access to our money:

Here’s the point. In 1998, Wall Street bailed out a hedge fund (LTCM). In 2008, the central banks bailed out Wall Street. In 2018, if not sooner, who’s going to bail out the central banks? The central banks are at the point where they don’t have any dry powder left.

By way of example, the Fed took their balance from $800 billion to $4.2 trillion and cut interest rates to 0%. Now, if they had normalized things in the meantime, so let’s say they got their balance sheet back down to $800 billion or maybe one trillion dollars and raised interest rates up to 2 or 3%, I’d be the first one to congratulate them. I’d say, “Hey, nice going. You saved the world and you normalized your balance sheet and normalized interest rates.” But, that didn’t happen. The balance sheet is still at $4 trillion, interest rates are still close to 0%. What are they going to do in the next crisis? Take the balance to $8 trillion, $12 trillion? They can’t do it. There’s an invisible confidence boundary. No one knows exactly where it is -- you find out the hard way. And when you cross it, you destroy confidence in the dollar. 

The only clean balance sheet left in the world is at the IMF, the International Monetary Fund. And, that’s where the liquidity will come from in the next crisis. They have a printing press. They can print this world money called a geeky name: the special drawing right, or the SDR. But just think of it as 'world money', because that’s what it is. So, the Fed has a printing press; they can print dollars. The European Central Bank has a printing press; they can print euros. The IMF has a printing press; they can print SDRs. An SDR is not backed by anything, it’s just this kind of world money. That’s where the liquidity will come from, with an important difference. The IMF is not that nimble. It will take six to eight months. Last time it took 11 months, maybe they can do it faster. But, it’ll take a few months to print this new world money.

In the meantime, if the central banks are tapped out and the IMF is taking six months or so to issue the SDRs to reliquify the system, what are the elites going to do in the meantime when they can’t print the money? They’re going to lock down the system. Money market funds are going to spend redemptions. Banks are going to be closed. ATMs will be reprogrammed so you can get max $300 a day for gas and groceries. Stock exchanges will close. By the way, all this has happened before. None of what I’m talking about is new. It has all happened before.

So, in 1998, the Fed printed the money and gave it to you. In 2008, they printed the money and gave it to you. In 2018, if not sooner, they’re not going to able to print the money, they’re not going to let you have your money. Instead, they’re going to lock down the system. 

Click the play button below to listen to Chris' interview with Jim Rickards (35m:25s).

Transcript: 

Chris: Welcome to this Peak Prosperity podcast. I am your host, Chris Martenson, and it is October 31st, 2016. What a great day to be talking about this next topic. Look, with every passing day there’s another example of central banks doing something, anything to rescue or stabilize financial markets, especially equity, currency markets, bond markets now.

And, to help us talk about this, understand all of this, we have back with us one of my favorite guests of all time, a man who really needs no introduction, Jim Rickards, seasoned financier, risk manager and author. Now, he’s the author of The New Case for Gold, which we last talked with him about in April, 2016. Of course, two New York Times bestsellers, one being The Death of Money in 2014, and Currency Wars in 2011. He’s a portfolio manager, lawyer, economist. He’s held senior positions at Citi Bank, Long-Term Capital Management, Kachs [PH] & Associates. He is all over the world speaking and advising his clients.

Now, today, we’re going to discuss his latest book, The Road to Ruin, with the subtitle of The Global Elites’ Secret Plan for the Next Financial Crisis. Obviously, a great time to be talking about global elites and their plans, which have, thanks to Wikileaks, been made a lot less secret of late. And, to the elites, they have a private position and a public position it seems. And, of course, they do, of course, they do. And, by now you, you have as much confirmation as you need to know that such things as a public and private position exists. And, of course, they do. We’ve always known that on some level, that that exists, because, honestly, we’d probably the same thing ourselves in their position. But, there’s nothing like a solid reminder in black and white that your interests and the elites’ self-interest are only ever accidentally aligned.

So, what’s called for here, today, in 2016, open mind, a strong sense of curiosity and a willingness to let the data tell the story. Not your hopes, not your dreams, what’s really being said and what can you make of it. So, Jim, what a timely topic, what a timely book title and book that you’ve written. It’s also have a pleasure to have you on as a guest. Welcome back.

Jim: Thank you, Chris. It’s great to be with you.

Chris: Well, let’s start right at the beginning. Let’s dive right into your new book, The Road to Ruin. The basis for this book really rests on the idea that there, there’s another financial crisis coming. Let’s go into some of your context for that view.

Jim: Sure. And, that’s right. You know, this is—I’m not sure if the listeners know—but, this is Volume Three of a projected quartet, so Volume One was Currency Wars, Volume Two is The Death of Money. The Road to Ruin is Volume Three. There’ll be a fourth book, Volume Four, maybe sometime in 2018. But, the first two books, The Currency Wars and The Death of Money talked about instability in the system, talked about a coming crisis, explained why. And, you know, Chris, I never make claims without backing it up with analysis. It could be history, it could be math, it could be anecdotal, but there’s some document. But, there’s always some source behind it. I don’t really like it when people make claims and then, you know, they just say, “Well, the sky’s falling,” or “The world’s coming to an end,” or whatever, but they don’t have anything to back it up. I don’t say either of those two things, by the way. I talk about financial crisis and reaction functions, but there is a lot of backup for it.

But, the way I do this, what’s different about the new book is it takes you into the crisis. It puts you into the next financial crisis, which will be a lot worse than 2008. It tells you why it will be different, what the reaction function will be, and what the global elites intends to do about, and how it will affect you as an investor. And, then kind of come back to what you can do today to prepare for this. But, here’s what’s different. I look at three crises. I look at 1998, 2008, and then I hypothesize a crisis in 2018. And, just to be clear, that’s an estimate. I don’t want to put a stake in the ground about 2018. It could be 2018, it could be a little later, it could be tomorrow, by the way. We don’t necessarily have to wait that long. But, it could be soon.

But, the point is in 1998, that was the Russia/Long-Term Capital Management crisis. And, of course, I was involved in that. I negotiated that bail-out, I was in the room with the Treasury and the Fed when the $4 billion dollars changed hands and they propped up the Long-Term Capital balance sheet. But, we were just hours away from closing every market in the world; every stock and bond market would’ve closed on that day, September 29th, 1998. Non-exaggeration. Greenspan and Bob Ruen [PH] testified before Congress to that effect. Like I said, I was there watching it happen. But, you know, we, when the money changed hands and the Fed cut interest rates not one, not once, but twice. Once at an emergency meeting, unscheduled FOMC meeting. Last time that happened, by the way, since 1998.

So, come forward to 2008. Same thing. We were just hours, if not days away from a sequential collapse of every major bank in the world. Bear Stearns had failed on March, 2008. Freddie and Fannie failed in June and July, 2008. Then came Lehmans, September, 2008, etc. They were falling like dominoes. We, a couple of days later would’ve been Morgan Stanley, then Goldman Sachs, then B of A, then Citibank, maybe J.P. Morgan would’ve been the last guy standing, but who knows, probably not.

Now, what happened was the Fed came in and truncated that process. And, I make the point that this is, this is complexity theory in action. This is how complex systems collapse. They happen in the natural world and the man-made world, specifically, you know, capital markets. But, in a natural system, you can’t stop it, you can’t truncate it. So, when an earthquake starts, you can’t stop the earthquake in the middle. But, imagine if you could. What would happen, an earthquake is a release of energy. You can’t stop it. But, if you could, that energy wouldn’t go away. It would just get bottled up for the next time. But, in man-made systems such as capital markets, you can truncate with policy intervention, but the same thing happens. The energy, the destructive force just gets bottled up for the next time.

So, what did the Fed do in 2008? Well, we know over the following six years they printed four trillion dollars. They took the balance sheet from 800 billion to, you know, $4.2 trillion. But, that’s not all they did. They, they did $10 trillion dollars of swaps with the European Central Bank. And, the reason for that was the European commercial banks had loaned money in dollars. They had to borrow dollars to fund the loans. They were borrowing most of it from money market funds in the form of bank CDs and commercial paper. There was a run on the money market funds. Americans said, “We want our money.” The money market funds couldn’t roll over the paper. The European banks saw their dollar liquidity dry up. They turned to the European Central Bank, which is their lender of last resort. But, the problem was European Central Bank can’t print dollars, they only print euros. So, what they did was, the European Central Bank printed up a bunch of euros. The Fed printed up a bunch of dollars. They swapped them, so the Fed gave $10 trillion to the European Central Bank and then that gave them the dollars to bail out their banks.

So, that, by the way, we didn’t find out about that until two years later. It was not known at the time. It came out as, partly as a result of—that was one of the good things about Dodd-Frank is there some disclosure about things like that. They also guaranteed every money market fund in America. They guaranteed every bank deposit in America, regardless of insurance size. Insurance was 250,000. If you were a small, medium-sized business, happened to have, you know, let’s say a million dollars of working capital in your account, that was guaranteed. So, that’s the extent to which they did that.

Now, here’s, here’s the point. In 1998, Wall Street bailed out a hedge fund. In 2008, the central banks bailed out Wall Street. In 2018, if not sooner, who’s going to bail out the central banks? The central banks are at the point where they don’t have any, there’s no dry powder. So, just, again, by way of example, the Fed took their balance from 800 billion to 4.2 trillion, cut interest rates to zero. Now, if they had normalized things in the meantime, so let’s say they got their balance sheet back down to 800 billion or maybe one trillion dollars, raised interest rates up to 2 or 3%, I’d be the first one to congratulate them. I’d say, “Hey, nice going. You saved the world and you normalized your balance sheet and normalized interest rates.” But, that didn’t happen. The balance sheet is still at four trillion, interest rates are still close to zero. What are they going to do in the next crisis? Take the balance to eight trillion, 12 trillion? They can’t do it. There’s an invisible confidence boundary. No one knows exactly where it is. You find out the hard way, you cross it, you destroy confidence in the dollar. And, you look back and say, “Gee, we went too far.” Well, yeah. But, they sort of see that coming.

The only clean balance sheet left in the world is the IMF, the International Monetary Fund. And, that’s where the liquidity will come from in the next crisis. They have a printing press. They can print this world money called a geeky name, you know, the special drawing right or the SDR. But, just think of it as world money, because that’s what it is. So, the Fed has a printing press; they can print dollars. The European Central Bank has a printing press; they can print euros. The IMF has a printing press; they can print SDRs. Not backed by anything, it’s just this kind of world money. That’s where the liquidity will come from, with an important difference. The IMF is not that nimble. It will take six or eight months, last time it took 11 months, maybe they can do it faster. But, it’ll take a few months to print this money.

So, in the meantime, if the central banks are tapped out and the IMF is taking six months or so to issue the SDRs to reliquify the system, what are the elites going to do in the meantime when they can’t print the money? They’re going to lock down the system. They’re going to, money market funds are going to spend redemptions, banks are going to be closed, ATMs will be reprogrammed so you can get, you know, $300 a day for gas and groceries. But, why do you need more than that, after all? Stock exchanges will close. By the way, all this has happened before. None of what I’m talking about is new. It has all happened before.

So, in ’98, they printed the money and gave it to you. In 2008, they printed the money and gave it to you. In 2018, if not sooner, they’re not going to print the money; they’re not going to let you have your money, they’re going to lock down the system.

Chris: Now, I’ve been seeing a lot about the locking down on the systems. I’ve got a couple of questions from, from what you just talked through there. I’ll get back to them. But, this idea of locking down the system, now, now we had that one prime money market fund, Reserve America, broke the buck. I think it was a year and a half before people actually got access to their money by the time they’d sorted that out.

Jim: Right.

Chris: But, I think, you know, what you’re detailing in this book is that they’ve taken steps since then to make sure that that doesn’t happen again. But, not the kind of steps that maybe people would hope they would be taking.

Jim: Right.

Chris: Right? So, talk to us, like, like in money market funds, what has happened since the crisis that, that’s worrying to somebody who maybe has money in a money market fund.

Jim: Sure, Chris. And, again, thank you for pointing that out, and this is another example where I don’t just make claims. This is all documented in the book. So, here’s what happened. In 2008, there was a run on money market funds. Now, some of the biggest financial entities in the world, specifically General Electric Credit Corporation, financed themselves in the commercial paper market. Americans were panicked; they were pulling their money out of the money market funds. That, by the way, is what caused Ben Bernanke and Hank Paulson to march over to the White House with kind of faces white and tell the president, President Bush at the time, that he had to do something. They had to get the tarp done to save the system.

So, but since then, they’ve changed the rules in two respects. Number one, it used to be the case that money market funds could not break the buck. What that means is that if you put a dollar in, you get a dollar out. Now, you may or may not get a big yield, you know, maybe 25 basis points, maybe back in the old days you got 2 or 3%, sometimes more. But, whatever yield you got, you always got your dollar back. That’s no longer true. You put a dollar in, you might get 98 cents or 95 cents or 90 cents, depending on the price at which they can liquidate those assets. So, no more assurance, these are not the same as bank accounts, although they have their own problems. You might not get your money back at all.

But, worse than that, for the first time, this is brand new law, the SEC proposed it a couple of years ago, but it took that long to become into effect. It just went into effect, recently. They can suspend redemptions. That means they can close their doors and not give you your money. And, this is typical in a hedge fund world. I’ve read hundreds of hedge fund offering documents. I’ve never seen one that didn’t allow the hedge fund to, as they say, you know, raise the drawbridge or close the gates or suspend redemptions or basically tell you that you cannot get your money back. But, that is now the law with regard to money market funds.

So, I run into people, they go, “Yeah, I got my money in the money market fund.” By the way, great misnomer, it’s not, it’s not money, they call it money market fund, but it’s not money. Anyway, “I’ve got my money in a money market fund, no problem. I can call my broker, sell my units, the money’ll be in my bank account tomorrow. I can write a tuition for my kids’ college education or down payment on a house or whatever I need.” Uh-huh, not anymore. That money market fund can suspect redemptions and tell you that you cannot have your money. And, that is what they will do. That’s the law, again, that’s all, it’s all detailed in the book.

Chris: Yes. So, there’s this, this I think gets us to the subtitle, where you’re talking about how this idea that the global elites, they have a secret plan to protect themselves. It’s not really terribly secret, though. A lot of what I see you have in the book there, you know, you’re finding it’s on the BIS website. It might be 30 pages in, but it’s there, and they’ve been making moves, I think not just to gate things like money market funds, but to gate entire capital markets if need be. Like, pull up the drawbridges on Japan if things go wonky there. And, of course, that’s what you or I would be doing, because we’re both intelligent people. We’d say, “Listen, hyper-connected, hyper-complex international world without any financial bulkheads, if it starts to sink in one part of the world, best to sort of gate that and prevent it from sinking everything else.”

Now, I think, Jim, even six months ago if you had, you put that subtitle out, people would shriek the usual conspiracy theorist at you. Maybe today, not so much.

Jim: Well, that’s right. A couple of points there, Chris, and you’re right, when I say secret I mean secret from the mass of investors and savers and every day investors. It’s not secret from each other. They are absolutely signaling each other on the kind of venues you mentioned, you know, 24 pages deep on the IMF website, there it is. I guess I’m enough of a geek that I actually read these things.

But, start with the G-20 Summit in Brisbane, Australia, November, 2014. They had a final communique that listed working papers, and if you read through those, that’s where the bail-in plan is. It’s just not the bail-in of Cyprus and Greece, although that was the model for it. This is the G20, so this includes President Obama, Angela Merkel, David Cameron at the time—they have a new prime minister—all, you know, Mario Draghi, the heads of all the central banks and all the G-20 countries agreed on this. And, they said, “No more bailouts. The next time there’s a crisis and you know it’s coming, we’re not going to use taxpayer money to prop up the banks. What we’re going to do is we’re going to haircut the bond holders, freeze the depositors, wipe out the stockholders,” and then they can go beyond that and close the banks themselves, which they’ve done before. So, it’s all there.

Now, I give this a name. I call it Ice Nine. Ice Nine might be a new phrase to a lot of listeners, but if you go back, one of my favorite authors, Kurt Vonnegut, wrote a great bank in the early 1960s called Cat’s Cradle. For those who haven’t read it, I highly recommend. It’s short, easy to read and it’s hilarious. It’s sort of a dark, comedic novel. But, in the book Ice Nine was a polymorph of water, an H2O molecule with two differences. The melting temperature was 114 degrees Fahrenheit, which meant it’s frozen at room temperature. And, two, if it came in contact with a molecule of water, it turned the water to Ice Nine. So, you had to keep it in a vial. But, if you released it in a stream, then all the streams, rivers, ponds, oceans in the entire world were turned to ice. The planet would become frozen and life on earth would die. It was a doomsday machine.

So, that’s the metaphor I use for the financial markets. Imagine you close the money market funds, right, which we know is now the law. We can see that coming. So, you close the money market funds. Well, everyone will go to the banks. So, then you have to close the banks. Well, then everyone will sell stocks, so you have to close the stock exchange. Then everyone will sell bonds, so you have to shut down the bond market and so on. And, then they’ll, they’ll leave, capital will flow out of countries, so you have to put up capital controls at the national level.

So, the point is you cannot lock down part of the system, because the pressure will just move somewhere else. You have to lock down the entire system. It spreads through contagion, through what they call spillover effects. That’s the technical name for it. So, I do use this Ice Nine metaphor, but I think it works, and I hope the readers enjoy it. But, it’s a metaphor for—but, it’s more than metaphor, actually. The physics and the dynamics and the math are the same for how things spread exponentially throughout the system. But, the whole thing’s going to have be locked down. They’ll say temporary. Remember, August 15th, 1971, when Richard Nixon suspended the convertibility of dollars to gold. He said, “I’m temporarily,” he used the word temporary. You can find that on YouTube, “temporarily suspending the redemption of dollars for gold.” Well, that was 45 years ago. We still don’t have the gold standard.

They’ll say it’s temporary just to kind of appease people, but then the question is where does it go from there? People might accept it, but it could get worse. It could break out into what I call money riots. And, then now you’re into more of a neo-fascist scenario where, you know, it’s still illegal under the Posse Comitatus Act to use the military as a police force under local jurisdiction. That’s illegal. So, what they’ve done instead is they’ve militarized the police. They said, “Look, if we can’t use the military as a police force, let’s turn the police into military.” So, whether it’s, you know, Kevlar vests, night vision goggles, flash bang grenades, armored personnel carriers, battering rams, the police are armored up; they look like Seal Team Six. They’ll be deployed to suppress these money riots. That, I’m not saying that will happen, but that’s a logical extension of the financial lockdown that I’m talking about.

Chris: Well, you know, obviously, the, if you’ve been paying attention to anything but mainstream media, we’ve been seeing all of those militarized aspects coming out in the Ferguson riots, now at Standing Rock, etc., and so forth. I mean, they got M-raps out there and yeah, guys with thousand-yard stares and the latest greatest sniper rifles for guys who are smoking peace pipes. I mean, it’s just, you know, a crazy sort of an overreaction.

But, what you’re talking about is something really, honestly, should have the elites scared. I’m catching myself a lot of sense of the elites being scared. And, the elites to me aren’t some faceless people who, you know, occupy the upper echelons of the seventh floor at the State Department. I mean, they might be a few of them. But, I go and I talk with people at financial conferences who are elites. And, let me tell you the most disquieting experience I had. I was talking at a wealth conference where there’s, you know, billions and billions in the room. These are all very, very wealthy families. It’s mostly a family office scenario, but a lot of top tier hedge funds are there. And, Jim, for the first time, I was no longer a contrarian. I was kind of center mass, right, talking…

Jim: Right.

Chris: …about the kinds of things you and I regularly talk about, which is, hey, all this money printing probably will come to no good. In fact, the people who had the most experience, 10, 20, 30 years operating hedge funds or private equity or, or family office foundation portfolios, the more experience they had, Jim, the more worried they were. And, these people are making their own plans on a personal level, like they also have their public/private position. Hey, publicly, I run this fund, so this is what I’m doing. They had great strategies. But, privately, they were going to cash, they were going to gold, they were very nervous. They were even thinking about what they were going to do if unrest cropped up. Like that was a very different vibe for me to experience, that I hadn’t experience in prior years.

So, you said before, like you, yeah, could the Fed double its balance sheet to eight trillion. Technically, sure, why not. But, practically, when they lose the trust, it’s over.

Jim: Right.

Chris: And, that’s what I think I’m detecting now is that loss of trust in people I consider to be financial elites.

Jim: Right. That’s actually right, Chris. It’s one thing when everyday citizens lose confidence in the elites, but what happens when the elites lose confidence in themselves. And, that’s what I see happening. I happen to live in a, fortunate to live in a fairly wealthy town in During, Connecticut. We’re next door neighbors with Greenwich. I know a certain number of billionaires. I don’t know one hedge fund billionaire who doesn’t have a vault with gold. So, these guys may be out there whipping and driving the stock market all day long, but they personally are, are going to gold. You’re exactly right about that.

The other point you make, and this, I not only agree, but I expand on this in the book, is that when you say elites, it’s not some like faceless, deep, dark conspiracy. We know who they are. It’s Christine Lagarde, Marty Feldstein, Paul Krugman, Janet Yellen, Mario Draghi, Larry Summers. They’re professors, they’re academics, they’re central bankers, they’re finance ministers. We know who they are. They hang out in Davos. They go to the Aspen Ideas Festival. You know, you and I bump into them at various conferences. You know, the one, the spookiest one you hear about is Bilderberger—sorry, Bilderberg, rather, the Bilderberg Group. You know, they get a lot of attention. I actually briefed the head of Bilderberg. He invited me in and with some of this cohorts and I gave a private briefing in Rockefeller Center. And, you know, nice guy and didn’t, didn’t have horns as I say in the book. He wanted, we talked about the euro, he was very concerned with the collapse of the euro. I said, “Don’t worry, the euro’s good to go.”

And, you know, by that way, I said that in 2012, and at a time when Krugman and Stiglitz and all these guys were running around with their hair on fire saying, “The euro’s collapsing and Greece is getting kicked out, and Spain’s going to quit, and Northern Tier and Southern Tier…” I said, “No,” I said, “Nobody’s getting kicked out, nobody’s quitting. The euro’s hanging together. They will add members.” Every, every one of those things has turned out to be true. They’ve gone from 16 members to 19 members. By the way, the next member of the Euro Zone will be Scotland, because as the U.K. leaves the EU, Scotland’s going to leave the U.K. I’m sure the Bank of England will not share what little gold they have left. So, Scotland’s going to be there. What are they going to do, have a Scottish pound with no gold? So, clearly, they’ll join the Euro.

So, the Euro is strong and getting stronger, but that’s because it’s never, it has never been an economic project. It has also been a political project, and you need to understand the politics of unification, world government and kind of where all this is going. So, yeah, we know who the elites are, but you’re exactly right, they’re losing confidence in each other, and I talk about that in the book.

One other, one other threat, Chris, and again, we talked about this cascade and complexity theory and that’s all, that’s all coming. But, there’s another threat that’s a little bit more of a clear and present danger, which is cyber financial warfare. Now, of course, I do a lot of national security work with the Pentagon and the intelligence community and others. We all know about cyber warfare, so I cease control, I hack into a piece of critical infrastructure like a dam and I open the floodgates and kill 300,000 people. I drown them in their sleep, because they’re downstream and I open the flood gates on the, you know, the Hoover Dam or the Grand Coulee Dam. We know about financial warfare, that’s what I did at the Pentagon war game in 2009. But, how about combining the two? Cyber and financial warfare, where it’s not just, you know, shutting down the New York Stock Exchange. That’s child’s play. What if I get into the order entry system and start spoofing orders to sell Google, Amazon, Facebook, boom, boom, boom, and you’re an executing broker and you can’t tell the difference between a fake order and a real order. And, you’re executing all this and that’s getting, that’s turning into its own cascade, crashing the markets. Same thing with the bank lockdown.

What’s happening, Chris, is that this is part of the war on cash. We’re being told, you know, if you want cash, you’re either a drug dealer or tax evader or a terrorist. You know, of course, you can be a totally honest citizen just trying to have some cash, like keep batteries and flashlight for hurricanes. You know, it’s good to have some cash on hand in case the power grid’s out. But, you will be treated like a criminal by your, your friendly local banker. But, before you slaughter animals, they have to be herded into a pen, and before you slaughter investors, they have to herded into a digital pen. They’re forcing us all into digital accounts at one of a small number of banks, so when they’re ready for either negative interest rates, confiscation, bank closures, we’ll be—if you’re in this system, you’ll be helpless. So, what I recommend for investors is don’t be helpless, don’t be a victim. Get outside the digital system. That could be gold, silver, fine art, paper cash, land, income producing land, natural resources. There are a lot of ways to do it, but you have to have something outside the digital system or you are completely vulnerable.

Chris: And, they’ve been feathering this nest for a long time. I mean, this has been very careful preparations and, and I think this is useful to talk about this war on cash that you just raised. Because, whether it’s Larry Summers coming out and saying, “Oh, hundred dollar bills are just too big.” I mean, I don’t know if Larry goes shopping, but if he came with me to the grocery store, he’d discover I could put $200 in a single grocery bag if I’m buying expensive meat or something.

Jim: Sure.

Chris: But, you got him talking about that, you got Haldane out of the BOE talking about taking out the 500 euro note or whatever. You know, you got all these people talking about it, and then, of course, Rogoff [PH] out there famously saying, “Oh, this is all tax cheat terrorists, criminal…

Jim: Sure.

Chris: …guys and stuff like that. But, just ham-handed, very heavy-handed things where clearly if they were just honest with us and said, “Look, what we really hate is that you can evade our policies and our…

Jim: Correct.

Chris: …policies are we have to find a way to take a little bit from everybody so we can plug this big hole over here. And, if we can’t do that, we’ll have to go to the next layer of this. It’s a threat, it’s a financial threat is how I perceive it.

Jim: Right. Well, when I was, you know, back in the ‘60s when I was a young kid or early teenage years, we had a $500 bill. The United States got rid of the $500 bill in the late 1960s. Nickels, or, sorry, not nickels, but dimes and quarters were pure silver. So, you know, when I was kid if I had a dime, I went down to buy some candy, I was handing over a pure silver coin. And, you know, if you were an adult, you could go to the bank and get a $500 bill. Well, they turned the coins into zinc, they turned the, they made the $500 bill go away. We still have $100 bill, but by the way, since the late ‘60s, the $100 bill has lost 80% of its purchasing power. So, it’s like a 20. If you wait long enough, you won’t have to abolish the $100 bill, it just won’t be worth very much.

But, you’re right, Larry Summers has come out and called for the abolition. In Europe, they actually did get rid of the 500 euro note. Now, their largest denomination is a 200-euro note. But, they’re doing this—now, it’s always in the guise of, you know, counterterrorism, criminal gangs, tax evasion. But, whatever happened to liberty? I mean, I have no sympathy for terrorists and the tax evaders and criminals and drug dealers. I mean, I spent 10 years doing counter-terrorism for the CIA, so, but, but so what. I mean, whatever happened to liberty? Whatever happened to the freedom of people to decide what form of money is right for them, whether it’s cash, you want to put your money in the bank, that’s fine. It’s a choice. Gold, it’s a choice. What they’re doing is taking away the choices. Why? Because, they want to get ready for negative interest rates.

You know, negative interest rates, so I put $100,000 in the bank. If you pay me 1%, I come back a year later, it’s $101,000. But, with a negative 1%, I come back a year later, and it’s $99,000. They actually take $1,000 away out of my $100,000. But, I can just take the $100,000 out of the bank, put it in safe storage. A year later, I still have $100,000 and my next door neighbor only has 99, because they took it out of the digital account. So, people know that, and so you’ve got to get rid of the cash option before you impose the negative interest rates. It’s pretty straightforward. And, so they use the, you know, the drug dealer/terrorist connection to push an agenda which has nothing to do with counter-terrorism and everything to do with confiscatory negative interest rates. And, again, we’re all being herded into this digital pen. My advice is to, you know, do something about it. Don’t, don’t be a victim.

By the way, the war on cash is, people ask me how the war on cash is going, Chris. I tell them it’s over, the government won. I mean, people think they can get their money. Try going down to the bank, go down to the bank tomorrow morning and ask them for $20,000 in cash. First of all, they’ll probably tell you to come back. The teller’s face will turn white. He or she will call over the branch manager. They’ll ask you for all kinds of ID. They’ll ask you why do you want the money. They’ll file what’s called a currency transaction report with the Financial Crimes Enforcement Network, FCEN in, it’s actually in Northern Virginia. And, that’ll be put in a file right next to Al Qaida and, you know, Pablo Escobar. That’s how you get treated, okay. You’re just an honest citizen, hey, I’d like some cash, I’d like to be outside the digital system in case you guys decide to lock it down, which they will. But, no, you will be, that’s the best you can expect. And, they might even say, like, “Come back, because we don’t have that much money.”

Now, let’s say you went for $5,000. Well, that’s a different report. That’s called the SAR, the Suspicious Activities Report. Don’t think just because you’ve been going to the same bank for 20 years that these people are your friends. I mean, they’ve been terrorized by their own management. They’ve been trained to report these transactions. There is no upside for them not to report it. There’s plenty of downside if they don’t. And, so they will, and you know, it doesn’t, by itself, it’s, you know, it’s a report that goes into some government file. But, that is how you will be treated.

And, so as a practical matter, you cannot get large amounts of cash, even if you want to tell yourself that you can. The war on cash is over. But, people still have freedom to buy gold. It’s funny, the government has done such a good job of convincing themselves that gold is not money, that they forgot to declare a war on gold. But, you can see that, you can see that coming. I see the war on gold coming. They’re going to start, they’ll say, “Okay, now we got to do, you know, 1099s, and we got to do, if you’re a gold dealer you need a license, and you got to report all the transactions.” And, you know, etc., and, you know, take ID, etc., etc. All that stuff that surrounds cash will move over to the gold world. So, one of the things investors should do is, you know, kind of get your gold now while you still can.

Chris: I think that’s great advice. And, all of that makes a lot of sense. So, in the time we have left, we are recording this on October 31st, and you know, at the risk of making predictions, but here we are, we’re just days away from an election in the United States for the president. And, here’s, you know, this is something that I really think is potentially market-moving an event. I don’t really, not interested in the politics of it, but I am interested in the market side. Have you been tracking this and have people that you’ve been talking to been looking at this as a potential market event?

Jim: Absolutely, Chris. And, you know, one of the great things about doing programs like yours is that they’re timestamped. If you make a forecast, you know, you could be right, you could be wrong, but at least people will know when you, when you said it. And, I just got back yesterday from Australia. I was there for nine days, and I did some television interviews in Australia. I put them on my Twitter account, and before the FBI announcement, that was Friday, October 28th was when the FBI director said they’re looking into Hillary Clinton’s emails. And, that, obviously, has kind of hurt her electoral chances. But, before that, I did an interview, I said I thought Trump would win, not by a lot. It’s going to, it’s definitely going to be close. It’s absolutely going to be close. Hillary Clinton could win. I’m not ruling that out. But, I said Trump could win. In fact, I think he will win, and his odds went up.

But, here’s the point. And, again, I don’t want to get into the politics. I have the utmost confidence in listeners to, you know, make up their own minds and make the choice that’s, that’s best for them. But, the markets are fully priced for Hillary. The odds makers, the markets, the pundits, the polls, everything is all in for Hillary Clinton. Which means that you have one of these great asymmetric trading opportunities, which come along very rarely, where it basically, if you do the Trump trade, let’s say, if Hillary wins, you’re not going to make a lot of money, but you’re not going to lose anything. The stock market is not, the stock market is not going to go up if she wins, right. The stock market’s a little bubbly as it is. But, it’s priced for Hillary. If she wins, it’s not going to go up more because of it, because they already expect that. But, it’s going to, if Trump wins, it’s going to drop 10% almost overnight.

This is exactly like Brexit. I saw this in Brexit. I can’t believe it’s happening again within six months, but it is. I was in London, you know, the Brexit vote by the U.K. to leave the EU, I was in, that was on June 23rd, 2016. I was in London on June 20th, three days before the vote. I was in the London Eye, the capsule that’s the big Ferris wheel, with a camera crew. And, I don’t raise my voice much, but I was practically yelling at the camera, I was saying, “Short sterling, buy gold.” Because, the markets were fully priced for a remain to win. So, sterling was $1.50 and gold was about 12.60. I said, “If remain wins, sterling’s not going to $1.60, it’s priced for remain. And, like gold’s not going any lower, it’s priced for that. But, if leave wins, you’re going to see this, you’re going to see sterling drop like a stone and you’re going to see gold rally.” And, that’s exactly what happened. Sterling dropped from 1.50 to 1.30 in hours, and gold went up over $100 an ounce. It backed off a little bit by the end of the trading day. But, the immediate reaction was up over $100 an ounce. I had people writing to me saying, “Jim, thank you for, you know, paying my kids’ college tuition for this semester, because I followed your advice.”

I see the same thing set up. It’s, it’s, like I say, I do think Trump will win, but what I know is that the markets are priced for Hillary. If he wins, it’s an earthquake.

Chris: Fantastic. Well, I really love your views, Jim. We’re out of time here. We’ve been talking with Jim Rickards, author of the newly released book, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis. Of course, maybe it’s not that secret of a plan and it sure won’t be if you get the book and read it. You can find it on Amazon, your local bookstore. And, hey, Jim, I saw on Twitter, a picture of you in a sound booth. You recorded this, too, didn’t you?

Jim: I did. I read the audio book. It’s a lot of work. I mean, man is it hard, but I like doing it and I think, you know, a lot of—audiobooks are a big part of the market and a lot of buyers like it when it’s read by the author. And, so I hope people enjoy that.

Chris: Fantastic. Well, I know it’s a lot of work. I’ve read one of my own. And, whoo, it is work. But, so, Jim, thank you very much for your time today, and we’ll put this up and we’ll see how the predictions turn out. And, can’t wait to see how this next year unfolds.

Jim: Thanks, Chris.

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32 Comments

newsbuoy's picture
newsbuoy
Status: Silver Member (Offline)
Joined: Dec 10 2013
Posts: 185
Oh, what'll you do now, my blue-eyed son?

climber99's picture
climber99
Status: Silver Member (Offline)
Joined: Mar 12 2013
Posts: 159
Lock down

A great case for having some of your wealth outside of the financial system. However it is not full proof. The lock down will extend to other asset classes. For example, tax imposed on precious metals ownership and trading; a wealth tax imposed on property and land holdings. Just two that spring instantly to mind.

Interesting that Jim thinks that there is another 'kick it down the road' cycle left to come via the creation of SDR liquidity. What happens after this runs it course (2028 !!) ? Do we accept once and for all that growth is dead and are in full blown energy descent ? Will we use world war as the next liquidity driver ?

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1280
climber99 wrote:A great case

climber99 wrote:
A great case for having some of your wealth outside of the financial system. However it is not full proof. The lock down will extend to other asset classes. For example, tax imposed on precious metals ownership and trading; a wealth tax imposed on property and land holdings. Just two that spring instantly to mind. Interesting that Jim thinks that there is another 'kick it down the road' cycle left to come via the creation of SDR liquidity. What happens after this runs it course (2028 !!) ? Do we accept once and for all that growth is dead and are in full blown energy descent ? Will we use world war as the next liquidity driver ?

There is no legal base to tax gold or silver exceptionally.  And there will be outrage and worse if what you say is executive ordered.   Paying attention to this Presidential Election?

Cornelius999's picture
Cornelius999
Status: Gold Member (Offline)
Joined: Oct 17 2008
Posts: 286
I will leave finance to those

I will leave finance to those more attuned to it though it is vital to myself and many others.

There is much for us to attend to these days.  I suspect the danger of solar storms for example may be high and the security of continuing electricity, telecomms, and internet is more vulnerable than we might want to believe for different reasons.

Since my main strength (admittedly dubious ) may be finding diversions to unpleasant, tedious, or downright terrifying reality, I'm inserting a note here ( I am also an alarmist ) in case the clocks should stop before they might be expected to.

It's about how we got to here and the fact that we may have plenty of time to read ( if only by daylight ) in the future. 

I'm recommending the works of Llyod Pye, such as " Everything You Know is Wrong", at lot of which seems to be based on Zecharia Zitchin's works. You can whip me to death if I'm wrong ( possible) but you may have other things to worry about. Liyod Pye can be found on Youtube giving an animated lecture. Normal books you can hold in your hands and smell will work better. 

I'm now going to think about Jim's book ( excuse me Jim ).

PS I'm relying on Arthur or somebody competent to post the relevent videos. The subject matter should be right down your street Arthur!  And a little reading up on history won't hurt when we're back in the Stone-Age.  Kinda.

robie robinson's picture
robie robinson
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Posts: 1085
Stone Age?

The only "sustainable culture",according to Derrick Jensen.

obtw, his two volume set "ENDGAME", is quite good.

Quinn, our filly is asserting her independence, time in the round pen is proving successful.

climber99's picture
climber99
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Posts: 159
wishful thinking

Ha ha. Sure they wouldn't dare. Wishful thinking on your part.

Arthur Robey's picture
Arthur Robey
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Posts: 3936
Emulating Alice, Cornelius.

Just like Alice, I like to explore all sorts of rabbit holes Cornelius. Very occasionally this approach yields a diamond.  Mostly I emerge empty handed.

There is a lot of schizophrenia in the world. I anticipate more, as stress takes its toll. Bear in mind that schizophrenia has both positive and negative effects. As Dr. Iain McGilchrist warns us, nermals rely too much on their models which leads them into his hall of mirrors, where they know more about what they know, about what they know.  .  .  . (Yes Gladys, it is a pathology.)

And that is the evolutionary role of schizophrenia, to break the mold. As Horrobin notes, before modern humans emerged it was boring. Now we can pin point a historical dig almost to the year because our artifacts change so frequently.

Which leads us to the matter on hand. Rickards is describing just such a transition to a new monetary system. Should we relax and enjoy the ride? Your response to this transition is in your hands. My response is to hang loose and enjoy this early morning coffee.

And then I have things to do. I have to fix the string thingies on my yacht.

Those whom the Gods would destroy or create they first make mad.

Horrobin

Cornelius999's picture
Cornelius999
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Posts: 286
Since my neck is already on

Since my neck is already on the block I'm reminded it's customery to give the executioner a silver coin to concentrate on what he's doing.  Therein hangs a tale: remember the suspicions that the gold in Fort Knox might not be there etc..  Mad stuff, but it gets worse.  By now we should realize that certain individuals in celestial realms prefer to be paid off with what J. P. Morgan called real money.  Apparently, they are ok with the executioner and ourselves using the silver stuff but they have their own uses for the g word.

Having already said too much I now await termination, not necessarily by the site moderators, and I'm only half - joking !

Cornelius999's picture
Cornelius999
Status: Gold Member (Offline)
Joined: Oct 17 2008
Posts: 286
Since my neck is already on

Since my neck is already on the block I'm reminded it's customery to give the executioner a silver coin to concentrate on what he's doing.  Therein hangs a tale: remember the suspicions that the gold in Fort Knox might not be there etc..  Mad stuff, but it gets worse.  By now we should realize that certain individuals in celestial realms prefer to be paid off with what J. P. Morgan called real money.  Apparently, they are ok with the executioner and ourselves using the silver stuff but they have their own uses for the g word.

Having already said too much I now await termination, not necessarily by the site moderators, and I'm only half - joking !

Pandabonium's picture
Pandabonium
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Posts: 77
Yen for money

I remember withdrawing a large sum of money from my bank in the USA and it was exactly the scenario that Mr Rickards describes in this interview - right down to the teller's face going white.   And that was about 15 years ago!

While the Bank of Japan can't get the yen to go down fast enough through it's rate chopping, the people here stash cash at home.  Sales of home safes have soared in recent years in Japan and the BofJ has had to greatly increase the number of ¥10,000 notes (similar to $100 bills in the US) it prints each year in order to cover the increasing demand for cash.  An estimated 40 trillion yen - about 38 billion US dollars - is held in cash in Japan.

The BofJ buys stocks, bonds, and indirectly buys real estate.   The bubble in big city housing is estimated by some to be headed for a 20% correction in the next year or two.   Meanwhile, real estate across the country has been declining in price by around 4% per year over decades due in part to the flat economy, in part to the declining population, and also in part due to the continuing migration from farms to cities.

For those moving to cities it isn't good news, but for those who want to live a more rural life, it just keeps getting better.

Pandabonium's picture
Pandabonium
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Posts: 77
Withdrawing cash in Japan

Perhaps I should have added that I have also made large-ish (for me anyway) cash withdrawals from banks in Japan in recent years (even from ATM machines).   No whispers between teller and manager, no paperwork, just the same politeness one experiences with every business in this country.  The ATMs will crank out whatever amount you can cover, limited only by the ATM owner to how much cash they want to keep in the machine (typically they will allow withdrawals of up to 1 million yen) or up to whatever limit you placed yourself on your own card.

Of course, being the proud holder of a US Passport, I get to fill out paperwork every year to FINCEN reporting every foreign bank account I have in the entire world and the maximum balance it had for the year.  Uncle loves his nieces and nephews and follows us every where we go.

Of course, if we don't keep our assets in banks or other reportable accounts, there can be nothing to report.  I don't want to be poor, but there are advantages to being not too wealthy.

pat the rat's picture
pat the rat
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Posts: 87
So Jim  think there a money

So Jim  think there a money mess every ten years or so,give or take a year or 2 .No matter how hard I try, not ready. Lets all hope that it is in 2 years.For every 2 steps I go forward 1 back.

locksmithuk's picture
locksmithuk
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Posts: 110
Taxes on gold, and outrage

KugsCheese wrote:

There is no legal base to tax gold or silver exceptionally.  And there will be outrage and worse if what you say is executive ordered.   Paying attention to this Presidential Election?

I don't believe that public outrage - or at least the prospect of it - has ever particularly bothered the holders of power and their lawmakers. As for anything "worse" - no problem, that's what Homeland have been catering for with their quiet stockpiling of domestic munitions.

If you control access to cash & food, if you control the financial & security statutes via martial law or state of emergency, and if your gun is bigger than everyone else's.... then you're laughing all the way to citizen compliance. Everyone can get as outraged as they like, but it won't change squat.

All of this already has precedent - I've seen it in action. Anyone who thinks that laws and taxes cannot be conveniently and shamelessly changed in a lightspeed heartbeat is a sitting duck.

Cornelius999's picture
Cornelius999
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Joined: Oct 17 2008
Posts: 286
Fascinating information about

Fascinating information about schizophrenics Arthur. My main friends happen to be, and unfortunately have been of that church - the casuality rate is high.  The circles in which I move of necessity. And btw no previous offence intended to you.

I too should be relaxing on my yacht, if I had one - but change is breathing down our necks and even yachts may not be places to be if the forces of gravity shift.  Note all those earthquakes in Italy eg.

I may have better references....

I do. Please see SOTT.net(earth changes) and YowUsa ( under signs ). 

I'm having a lead cap knitted to keep my hair from standing up straight!

PS  Another mad idea: You previously opined that silver might be safer. If certain capable and ruthless entities are, so to speak, going for gold at any cost because their very (lives?), may depend on it, resistance would be................   But surely this is realms of sci-fi and I am already deranged. Must dash. The minders are coming!

Oh! Don't forget Michael Tellinger back in Africa. Was he completely mad or only half way there?

climber99's picture
climber99
Status: Silver Member (Offline)
Joined: Mar 12 2013
Posts: 159
Best way to invest your

Best way to invest your wealth which is out off the control of external agencies is energy efficiency and self sufficiency at home, growing more of your own food, setting up bartering networks, etc. After the upcoming SDR bailout there will be no further bailouts. We will have to face reality and take the pain.

ps. Those with gold, find a good place to bury it. Future archaeologists might find it and wonder what tragic circumstances led to it's burial and non retrieval. Lol

chipshot's picture
chipshot
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Posts: 25
Gold as Money?

I get the theory behind having gold in times of upheaval, but not sure I understand how it will work in practice.  Coins may be useful, but how will gold bars be used?  Wouldn't they be like $1000, or even $10,000 dollar bills? And if the majority of people have no gold?  Difficult to have markets or commerce if most people have none of the prevailing currency.

Won't the utility of gold become limited in a major collapse of systems?  For example, wouldn't jewelry become an unaffordable accessory?  

Wonder if a future currency will need to have more intrinsic or inherent value, such as food, which could be considered nature's currency.

Michael_Rudmin's picture
Michael_Rudmin
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Posts: 709
Here's the deal with silver and gold.

If you want to go to the store and buy a lot of goods, you bring silver or gold coin. If you want to buy a truckload of goods, you pay in silver or gold bar. The truck driver takes that silver or gold bar, and gets a truckload of goods to take to its next destination, along with some coin.

The gold bars stay in the same city for the most part; they empower the larger scale commerce until better arrangements are worked out.

herewego's picture
herewego
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Posts: 127
power over others

The obvious just grinned at me while I was reading these posts and remembering soooo many other interviews and discussions:  the underlying dynamic at play is the exercising of power over others.

It isn't about correct or incorrect monetary theories, or something intrinsic about fiat versus metals, or any guarantee about anybody that they will behave morally or legally, or about things ever being like they were in the '"markets'" again, or about debt.  It's about certain groups of humans having power over others and being out of their minds for more.  Money as we know it is the instrument, like large bones or better stone axes or cannons used to be.  It looks like a (freaky) monetary system, but it is domination.

I grieve that on this bounteous planet, and with these amazing instruments - ourselves - we still end up playing that one game so wholeheartedly.

In any dysfunctional relationship, the moves being made by the perp are the easiest to see and get all worked up about.  It's always interesting to ask myself, after I get over the outrage, "But what are MY steps in this dance?". 

I see that we have been complicit for several generations.  All 4 of my grandparents lived off the land for decades.  Then they, and the rest of us, walked away from being skilled at living on the Earth and took the easy, convenient path into complete dependency on a system controlled by those who want to consume our lives.  Now they have us.  Dependent.  Compliant or dead in most cases.  Or compliant AND dead, when they really do break things good.

Our survival-driven need for their money (i.e., access to food, shelter, fuel, medicine) powers the system that is enslaving us and mutilating our planet. 

My dependency is as much the fuel for this system as their lust for domination. 

I don't have any military training nor much knowledge of military history, but this situation seems to require tactical analysis.  Don't be distracted by politics, the mechanics of money, legal travesties.  They are not fundamental.  The question is, what power do they have over our survival, our lives?  How did we give it to them?  What power do we have over our survival, our lives?  Which struggles are only going to generate losses?  Where are our advantages?  Something like that. 

The lust for domination is a force that will not be mitigated by legality, morality, "normality".  It does everything and anything to enforce it's crazed will, until it is itself dominated or it runs out of fuel.  We can't expect intelligence or restraint from it.

Beneath all this is a persistent knowledge that humans can be other than that.  We can cooperate.  We can create.  We can heal.  We can celebrate.  We can be thankful, amazed and joyful in our Earthly moments.  How do we manage to migrate ourselves to that skill set en masse?  There I get stuck.

Well, that was unexpected.  Thanks for letting me get that sorted in my own brain anyway.

Cheers everyone.  Love the site, love your posts. 

Susan

Cornelius999's picture
Cornelius999
Status: Gold Member (Offline)
Joined: Oct 17 2008
Posts: 286
I like your posts a lot

I like your posts a lot Susan. I only recently noticed you were a woman and only now discovered your great scenic photo.  Forgive me but being short-sighted, I'd assumed it to be a fly on a pane of glass. Go figure!

Apart from Charles Hugh Smith there are some good people working on that. I just don't know how many incarnations it's going to take them to come up with an answer.  I'll leave it at that.....

blackeagle's picture
blackeagle
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Joined: May 16 2013
Posts: 177
re-Power over others

Susan,

Well written, well thought.

This is where I feel stuck in the system. I have been raised within the system. I have been raised to believe in this system. Today, I don't trust it anymore but I am still a part of it. I am working hard to cut the chains and one (just one?) is stubbornly holding: money. Giving up on money is not easy task (If you see the posts on this site, a lot of them are about money - so, I am not alone in this mindset). I "need" money. to maintain the house, to pay municipal and school taxes, to use my car, to buy the food I don't procude, to buy books on Amazon, to buy tools from Canadian Tire or princess Auto or Harbor Freight, t pay for my Internet access, etc... Living outside the system is not easy, not because of being outside of it, but because frequently other won't let us do it.

A few roads from my place, one guy and his wife are living outside the system. They own nothing (or almost), they live on a land on which the landlord gave them permission to stay there, they grow their garden, and raise their chickens, they do small jobs right and left (they too need a bit of money), they live in a container (yep, right here in Canada, all year long).. and they have a truck load of problems with the city hall because of the neighbors. It seems that if you don't live as "everyone" you become a natural and obvious target. Every month at the city council public meeting there is heated discussion about them. Everyone want's them out. Because they don't look pretty, because their container is not pretty, because their old car looks like a WW2 wreck, because they don't pay taxes, because... because... you can align whatever you want once they are your target. This couple is smart. They know the law (Better than the civil servants at the city hall) and they manage to stop city's actions every single time. For how long?

This is only an example of how the system is vicious to self-feed.

Back to myself, I mentioned the "money" blocking. There are for sure other blocking items. I am not conscious of all of them. Will I exit the system one day? Most probably not. There are so many things, very convenient things, I use that makes me an active participant. At least I am conscious of that. Which makes me less gullible; more critic; more Teflon-coated; able to see (sometimes) where is the true enemy; act more wisely. Well, navigate in these troubled waters trying to "pay the smallest toll" (Again, money reference...).

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
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Posts: 3936
Stephan and Milo go at it, hammer and tongs.

This discussion between Milo and Stephan is too good to miss.

Of cause, yours truly left a trail of comments over on Youtube

pyranablade's picture
pyranablade
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Posts: 178
safe deposit boxes

So if this is true - that there will be bank a lockdown in the next year or so - does that also mean that bank customers will not have access to their safe-deposit boxes?

Uncletommy's picture
Uncletommy
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Posts: 324
Don't forget to look over your shoulder, occasionally!

Hey, pyranablade. The fine print is always the most interesting. Where do you bank?:

"On April 20th, the Canadian Federal Government introduced legislation to implement a bank recapitalization or “bail-in” regime for domestic systemically important banks (D-SIBs). The Office of the Superintendent of Financial Institutions (OSFI) has designated six Canadian institutions as D-SIBs: Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and Toronto-Dominion Bank of Canada. The draft legislation provides a framework for the conversion of certain eligible shares and liabilities of the D-SIB into common equity of the bank (or any of its affiliates) in the event the D-SIB becomes non-viable. The purpose of the conversion is to recapitalize the bank and allow it to continue operating without the need for a government bail-out. The initiative is consistent with international efforts to address the potential risks to the global financial system of institutions that are perceived as being “too-big-to-fail.”

Only in Canada, you say; pity!

herewego's picture
herewego
Status: Silver Member (Offline)
Joined: Aug 11 2010
Posts: 127
green tomatoes and other forms of wealth

Thanks All for the thread, and Cornelius999 and blackeagle for your responses.

Not much to add here except I wasn't proposing we all quit money right now.  It's more about recognition of the dominance that dependence invites, and of our monetary system as a weapon of domination, and of how habituated we are to dependence than exactly what any of us do with money. 

Personally, I'm getting as much money as I decently can here in my tiny village and building my tiny homestead with it.  The more that gets done while money still works, the more independence will be built in to the picture when it stops.  It's an idea, anyway.

Yeah blackeagle - there's quite a bit of wanting "off the grid" and "screw the authorities" here too.  People have very creative living arrangements, cars with holes, Pit Bulls, standing stand-offs with local governments etc.  I kind of love and hate it.  Keeps the tourists away and land values lower, but it's not all that pro-active.  Just a scrappy mindset.  Your neighbors sound more focused.  I hope they get what they want 'cause it sounds like a consuming battle.

Independence steps from this year: 

I finally (5 years after moving here!) landed an amazing, decently paid, long term job 4 minutes away by bike.  This is a huge coup that will give me money and presence of mind to spend on actually living and prepping instead of hopping determinedly around after bad jobs.

I turned a huge crop of green tomatoes (weirdest growing season ever) into really tasty jars of piccalilli and mince.  They will never go to waste again.  Ditto a tree full of scabby apples.  Totally delicious apple butter.

I found out 2 women I know have guns/are getting guns.  They will teach me to shoot.

I worked with a team of people who gleaned unwanted fruit and turned it into a LOT of juice.  We will do it again, better, next season.

Gotta start somewhere! 

Susan

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1293
Access to safe deposit boxes

After FDR closed the banks and nationalized gold, safe deposit boxes were also unavailable for the duration. Once customers were offered access to their boxes again, they could only be opened in the presence of a federal revenue agent who made sure there wasn't any gold inside or anything else that needed to be taxed. Good luck with that!

Uncletommy's picture
Uncletommy
Status: Gold Member (Offline)
Joined: May 4 2014
Posts: 324
Don't forget the basic perspectve.

Historically, the real origins of the state lie in conquest and economic exploitation. The sociologist Franz Oppenheimer pointed out that there are two basic ways to acquire the means to satisfy our human needs. These are work and robbery, one’s own labor and the forcible appropriation of the labor of others. He called work and free exchange the economic means of acquiring wealth, and the appropriation of the work of others the political means.

Personally, I invest in mason jars, root cellars and fruit trees.When the "revenuers" come for those, it's time to get nervous. I hope I'm not being repetitive.

pyranablade's picture
pyranablade
Status: Silver Member (Offline)
Joined: Nov 8 2010
Posts: 178
boxes and the internet

Thanks Uncle Tommy and THC for your remarks about safe-deposit boxes. Maybe I'm a little better off using a locally-owned bank, but I'm hearing I should empty out the box pretty soon.

Maybe I should also close out my online brokerage account - sounds like that $ will be taken or frozen, or whatever. 

Jeff

pgp's picture
pgp
Status: Silver Member (Offline)
Joined: Mar 2 2014
Posts: 191
Lock down was always the most likely outcome.

A lock-down was always the most likely outcome. Fear of hyperinflation and falling skies makes for great rhetoric but regardless of what happens to currency or gold prices the elite aren't going to give up their wealth and control. They might be forced to take a sabbatical and bury their treasures but in the process of hoarding the world will be shut down if necessary.

You can buy gold but will anyone be allowed to use it if the currency fails. If you buy farmland instead what is to stop the government from taking it away in the form of taxes. The majority of voters in a post financial Armageddon will have zero sympathy for the well off consequently governments will be empowered to do whatever they want. The gluttonously wealthy will lose too but the system is always setup so they can afford it. Those with some but not much will simply be ruined and the impoverished majority will only cheer.

newsbuoy's picture
newsbuoy
Status: Silver Member (Offline)
Joined: Dec 10 2013
Posts: 185
Nader on Tort Law: Sue the Bastards!

newsbuoy's picture
newsbuoy
Status: Silver Member (Offline)
Joined: Dec 10 2013
Posts: 185
Nader on Tort Law: Sue the Bastards!

Brandon's picture
Brandon
Status: Martenson Brigade Member (Offline)
Joined: Oct 6 2008
Posts: 143
"A system vicious to self-feed"

A few roads from my place, one guy and his wife are living outside the system. They own nothing (or almost), they live on a land on which the landlord gave them permission to stay there, they grow their garden, and raise their chickens, they do small jobs right and left (they too need a bit of money), they live in a container (yep, right here in Canada, all year long).. and they have a truck load of problems with the city hall because of the neighbors. It seems that if you don't live as "everyone" you become a natural and obvious target. Every month at the city council public meeting there is heated discussion about them. Everyone want's them out. Because they don't look pretty, because their container is not pretty, because their old car looks like a WW2 wreck, because they don't pay taxes, because... because... you can align whatever you want once they are your target. This couple is smart. They know the law (Better than the civil servants at the city hall) and they manage to stop city's actions every single time. For how long?

This is only an example of how the system is vicious to self-feed.

I do wonder how many users here on PP are aware of the extra set of teeth that carbon-related legislation could put in the mouth of that very system.

treebeard's picture
treebeard
Status: Platinum Member (Offline)
Joined: Apr 18 2010
Posts: 565
Being stuck

Is a good thing.  The truth is a pathless land. Once we adopt an "ism" we are done for.  The truth is perceived not reasoned.

The obvious just grinned at me while I was reading these posts

And it will continue to do so as time goes on, and when those insights "come", there is no going back.  That is the source of courage and love, questions without answers and an open heart.  You are already there.

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