Category Archives: Gold

Ann Barnhardt is Going to Rome to Face Down Caesar-Obama

What is freedom? Freedom is to be alive in Jesus Christ. Freedom isn’t keeping your money or your house or your car or your shit. Freedom isn’t going hither and yon whenever you please. Freedom isn’t earthly liberty. Earthly liberty is a mere derivative of authentic freedom, which is Jesus Christ Himself.

Reject Christ, and you’re already a slave, and thus earthly liberty will be impossible. That’s why this is happening. This nation has rejected Christ and thus the earthly liberty that WAS a derivative of a Christian culture is now rapidly evanescing. This nation has embraced evil, and with evil inevitably comes chains.

Day by day, link by link, this nation is forging its own chains, and it is so far gone that even the Christians are happily embracing the chains, ridiculing and desperately trying to convince those few who refuse to be chained that the only way to be free is to bow down and put on the chains too.

Well, to hell with that shit, I say.

Ann Barnhardt

Ann says the Obama régime FORCES each American citizen to choose between Caesar and Christ. It forces this choice upon the people since ObamaCare mandates that all citizens, employers and institutions pay for abortion, sterilization and contraception.

“We can CONSENT,” says Ann, “to pay taxes in a spirit of truth, justice, solidarity and freedom, but only if those four specific ends are served by our taxes.”

But subsidizing ObamaCare with our taxes is a sin.

Do we have to pay taxes? Do we have a choice? Are we going to be held to account for subsidizing abortion?
What if paying taxes puts you in violation of the First Commandment (I AM the LORD thy God; thou shalt not have strange gods before me.)?

“Render unto Caesar that which is Caesar’s” is NOT a release from the First Commandment.
— Ann Barnhardt

Don’t you think that, by forcing you to break God’s Law in order to follow the laws of the state, the Obama régime forces you to choose between Caesar and Christ? Or is this a false dichotomy?

— Ann Barnhardt

If you agree that the Obama Régime is utterly lawless, why would you still consent to pay taxes? Why would you continue subsidizing it? Is it that you feel you owe Caesar something?

Ann is putting her money where her mouth is. She declared a tax strike. And on October 27, the IRS confiscated her bank account.

Yesterday, Ann talked about her tax strike with BigFurHat.

And today, she responded to a few comments of the iOwnTheWorld thread:

part 2, Part 3, part 4, part 5, part 6.

“We have the chance to walk straight back into Rome at the side of Our Lord, face Caesar and show the world how Christians stand and face evil, and bend our knee ONLY to Our Crucified Lord.

And then … watch what happens.

I know where I’m going. I’m going to Rome to face down Caesar Obama and be crucified with Our Lord who already has and will have the Final Victory. If you should meet Our Lord as you are exiting Rome, will you turn around, take up your cross and go with Him, or will you lower your eyes and pretend not to see Him?

Where are YOU going?
Quo Vadis?”

Ann Barnhardt

If He is what He claimed to be, a Savior, a Redeemer, then we have a virile Christ and a leader worth following in these terrible times; One Who will step into the breach of death, crushing sin, gloom and despair; a leader to Whom we can make totalitarian sacrifice without losing, but gaining freedom, and Whom we can love even unto death. We need a Christ today Who will make cords and drive the buyers and sellers from our new temples; Who will blast the unfruitful fig-trees; Who will talk of crosses and sacrifices and Whose voice will be like the voice of the raging sea. But He will not allow us to pick and choose among His words, discarding the hard ones, and accepting the ones that please our fancy. We need a Christ Who will restore moral indignation, Who will make us hate evil with a passionate intensity, and love goodness to a point where we can drink death like water.

Archbishop Fulton J. Sheen “Life of Christ”, AD 1958


Ann Barnhardt: “The Economy Is Going To Implode”

Neil Ferguson: “Expect More Gold to End Up in Chinese Hands”

The world’s central banks used to think of the U.S. Dollar as the currency of all currencies. As an anchor. But now GOLD is increasingly seen as the anchor for relative valuations of other currencies.
The United States is no longer trusted to maintain the value of the Dollar since the United States basically decided to trash the value of the American currency.

China can not trust the United States anymore, not since the Federal Reserve completed round of its first QE program. It became clear to the Chinese that the Federal Reserve intends to devalue the Dollar and the $3 trillion of U.S. Dollar it bought in order to maintain a cheap Yuan against the American currency.


The first QE program lasted from November, 2008 through June, 2010. The second, QE2, lasted from November, 2010 through June, 2011. Both QE programs put enormous pressure on the Chinese either to revalue their currency or face internal inflation as they printed yuan to soak up the easy money dollars finding their way to China.
The Fed’s relentless money printing, otherwise known as QE, is the key to forcing China to revalue the yuan despite their reluctance to do so.
James G. Rickards

The United States put enormous pressure on China to allow the Yuan to appreciate against the dollar. It did in 2011.

U.S. Dollar versus Yuan. Source: Yahoo Finance

Since then, evidence shows the People’s Republic of China has been responding to the Federal Reserve through stepping up central bank gold stock drastically at the People’s Bank of China.

The balance sheet of the Federal Reserve has about $5 trillion of base money, up from about $3 trillion.

China is now racing to stockpile gold, in order to earn a place at the Bank of International Settlements table when a new global currency regime will be negotiated.

China wants the Yuan to be included within the new global currency, necessitating an increase in the People’s Republic of China’s gold hoard of an estimated 2,000 tons.

Nobody knows how much gold China has, but China IS both the largest gold importer and the largest gold producer in the world.

China’s mines are producing more than 300 tons a year. And a lot of that 300 tons is going to China’s central bank.

Source: ZeroHedge

Currency Wars and Gold

A currency war in the simplest form is basically when there is too much debt and not enough growth.
– James Rickards, Currency Wars: The Making of the Next Global Crisis

Currency wars are real wars. But they are waged with currencies, stocks, bonds, derivatives, commodities, rather than guns and other kinetic weapons.

In a currency war, countries try to manipulate their own currency to gain an unfair trade advantage. There is a currency war when one country tries to devalue its currency relative to others in order to promote exports and create jobs.

Let’s take an example. Some countries manufacture jet aircraft. The United States has Boeing, Europe has Airbus, Brazil has Embraer and there are a few others. Now imagine you are Thailand. You want to buy aircrafts for your airline industry, but you don’t make them yourself. You have to go shopping. But where are you going to go? The theory behind the practive of currency war is that if the US cheapen the Dollar, it will make the Boeing aircraft a little more attractive than an Airbus or an Embraer. Boeing would sell more planes and create more jobs.

But once you go down that road, you quickly invite RETALIATION. In return, other countries will devalue their own currency too. There are unintended consequences. It creates a spiral of retaliations that ends up with a contraction in world trade, a GLOBAL DEFLATION. And in this context, the temptation to steal growth from your trading partners by trashing your own currency becomes overwhelming.

Suppose you are a Chinese manufacturer. You sell goods to the United States. They pay you in dollars and you take those dollars back to China. When you exchange those dollars into Yuans (¥), that’s going to drive UP the value of the Yuan. But instead of that happening, the value of the Yuan stays the SAME… You do exchange those dollars for Yuans, but the Chinese central bank prints Yuans TO BUY those dollars, so as to keep their currency where it is. By doing this however, China is importing INFLATION from abroad.

The USA are also doing the same thing. They are cheapening the Dollar to increase exports, by making export prices less expensive. The problem here is that a country like China or the US does not just export, it also IMPORTS. The USA for instance import more than it exports. So if the Federal Reserve cheapens the Dollar, the price of those imports is going to go UP, which will bring inflation into the United States from abroad. The American people will be paying much more for iPads and iPhones and flat-screen TVs and French wine and vacations in Italy and clothes made in Korea. It brings inflation into a country, and that’s why a currency war is always a losing game.

And when you devaluate your currency that way, it generates retaliation from other countries. China reacted to the devaluation of the Dollar by trashing the Yuan in return. (Weaker countries who can not do that develop measures of capital control, such as freezing the assets of foreign investors for extended periods, which can trigger trade wars.)

Growth (gross domestic product) = consumption + investment + government spending + net exports

There is too much debt around the world now: sovereign debt, corporate debt, consumer debt, individual debt, student loans, car loans, etc. Too much debt that can’t be paid, and won’t EVER be paid.

Individuals can default, corporations can go bankrupt, but governments usually don’t. The US government is not going to default on its $16 trillion debt. It will just print the money, and pay the debt with severely devalued, virtually worthless “money.” Governments who print their own currency don’t have to default. They can just inflate their way out of their debt.

The US governement and the Federal Reserve want higher inflation in the USA because the dominant force in the global economy nowadays is deflation. Widespread debts lead to generalized deflation.

So to fight deflation and to boost exports, the USA began in 2009 to “print” a lot of money. A LOT. By “printing money,” we mean that the Federal Reserve buys Treasury bonds from the market in exchange of dollars. The Fed credits bank accounts electronically. We are talking about computerized entries into the Federal Reserve’s ledger. The Fed literally types in an addition of X billion or Y trillion dollars into its balance sheet, creating dollars out of thin air that exist as zeroes and ones on a computer server, and then use those new dollars to purchase US Treasury bonds. In this way, by INFLATING the supply of dollars, the Fed devaluates the Dollar. It has debased the US dollar by roughly one half the total GDP in less than four years.

But why are not the prices out of control in the USA yet, despite the Fed having increased the money supply by several trillion dollars?

First, a lot of inflation (US dollars) went to China.

Second, the VELOCITY of money is very low now. Velocity is the turnover of money, how quickly money turns over: do I take it and spend it, or do I stick it in the bank.

The Fed can increase or decrease the money supply, but it can not control how it is being spent or saved.

Well, if I take my friends out to dinner and you know, the restaurant owner uses the money to buy some new equipment or whatever, that money starts to have velocity, which means it’s getting used; but if I take it and stick it in the bank, or if I take it and buy gold, that money has a velocity of zero because it’s not being used.

The Fed can not control how money is being spent. It’s behavioral, it depends on how I feel and how you feel and how everybody feels. And frozen money does not affect prices.

The government has to affect behavior in order to control the velocity of money, which means they have to make the people worry about inflation, or scare you into spending your money. They think that by holding “interest rates” low, they can encourage inflation. And they bet on the people, spooked by inflation, will get out and buy cars or houses before the prices go up. The US government also tries to increase “lending” because it wants to get inflation ABOVE the interest rates. If borrowing rates are two percent and inflation is four percent, that’s a NEGATIVE interest rate. Which means that you can pay back the loan in cheaper money. So it’s actually not only a low interest rate, it’s FREE MONEY. The bank is PAYING you to borrow because you can pay them back in cheaper dollars, in dollars of lesser purchasing power.

And that is precicely what is happening. The US and many other countries want to do pay back their debt in a severely devalued currency. It’s called “monetizing” the debt.

They’re doing so by cutting interest rates to near zero, and by printing money. Printing money de facto creates negative interest rates because the value of the dollar is eroded by this inflation of the money supply.

In this world of negative interest rates, we need to FIGHT inflation, in order to preserve our wealth. If you put your money in a bank at zero or one percent interest rate, and you get 3, 4, 5 percent inflation, the value of your money is going to be cut in half in 15 years. Savers or investors are actually in a difficult position because the Fed is trying to drive the economy off of consumption, rather than investment.

With investment, you get growth when you make the investment. And then you get MORE growth down the road because you improve productivity as a result of that investment. Not so with consumption. Consumption is a one time thing. You buy something, you consume it. But investment pays off year after year, after year.

Higher interest rates encourage people to save. And that attracts investment from around the world. And that can drive growth. But in context of negative interet rates, many savers think they have no choice but to go into the stock market or the property market, which are very risky and volatile assets. They feel they are being forced to spend, to consume, to gamble, rather than to save.

But we the people can RESIST by buying gold or anything of physical value that can not be trashed by massive inflation, in order to store and preserve our wealth.

Because inflation is lethal for a lot of unprepared folks. You need to be prepared. There are winners and losers. The losers are the savers and retirees, people on a pension. They are going to see their wealth erode every year quickly.. The winners are banks, hedge funds, speculators, people who got into gold. Because of that, gold is nowhere near a bubble. People are underinvested in gold. Institutional allocations are anemic. They are investing a lot in stocks, in bonds, in hedge funds and so forth, and a skinny little one percent in gold. If institutions just doubled their allocation from say one-and-a-half percent to say three percent, there’s not enough gold in the world at these prices to absorb that kind of inflow.
Gold is volatile though. But it preserves your pruchasing power in a world of high inflation and negative interest rate.

“Give me control of a nation’s money and I care not who makes the laws”- Amschel Rothschild

There is a problem with the actual banking paradigm. Banks are required to keep from zero percent to ten percent of customer deposits on hand as reserves, and can loan the rest of the money out.
This banking paradigm is called fractional reserve banking. If a customer deposits $100 in Bank A, $90 is lent out and $10 remains as reserve (and this is the CONSERVATIVE version). Whoever borrowed the $90 then deposits it in Bank B. Bank B then lends out $81 and keeps $9 in reserve. And so on, and so forth. If you go through ten cycles this way, you end up with the original $100 being leveraged into $686.19 of deposits backed by only the original $100. This is what they call “MONEY CREATION.” With a 10% reserve requirement on a $100 initial deposit sum, the limit terminates at $1000. With a 5% reserve requirement on $100, the limit terminates at $2000. With a zero percent reserve requirement, the limit is obviously infinite.

A reasonable, non-zero reserve ratio is workable, but only so long as banks are required to carry one dollar of reserves for every one dollar they lend out. These reserves can be either in the form of the bank’s own capital, OR in the form of FAIRLY VALUED booking of the assets purchased with the loan. All unsecured lending must stop. This means that all home mortgages must be marked-to-market every single day, and if the home is worth less than the loan outstanding, the bank must post its own capital against the shortfall. This also means that credit cards, which are totally unsecured because they are used to purchase mostly non-assets, such as meals, gasoline, vacations and pure service commodities, must be backed by bank capital dollar-for-dollar. The bank could sell bonds to raise capital if it wants to make unsecured loans and then would be arbitraging the spread between the interest rate it must pay on the bonds and the interest rate plus default risk on the credit cards.

In this way, the worst that could possibly happen, namely every unsecured credit line totally defaulting, would result in the bank owners and investors losing their money – but the customer deposits would be safe because all of the loans against hard assets, which would be properly valued and marked-to-market, could be sold to other banks in the market, and that revenue would fully cover all customer deposits.

If you only loan against actual asset values there is no systemic risk possible; if you get in trouble you simply sell down the assets until you no longer are.  Since you’ve never “created money” there’s no systemic risk that can arise. Ever.

In not posting capital against unsecured loans, the banks are indeed naked short selling our currency – and it matters not whether that currency is gold-backed or not. The credit card customer is promising to pay back (deliver) a loan with money that they do not have and does not exist, and they won’t be able to borrow. So, the bank and the customer together are colluding in the naked short sale. The long on the other side is the citizen and taxpayer who will subsidize the inevitable “need” to print more dollars to “bail out” both the bank and the customer. Taxes will be raised and the currency will be further debased, causing price inflation – a one-two punch to the citizen. This is EXACTLY what is happening today.

That is functionally the precise same act as a naked short. You put into circulation that which does not exist “on the come” that it will in the future. In the case of stock that is naked shorted you’re counterfeiting the stock of the corporation in question – you’re representing that you have something to deliver (the stock) but only the company in question has the right to create (by issuance in exchange for capital) that stock.

In the case of naked credit creation unbacked by an asset the bank is effectively naked shorting the currency, betting “on the come” that production will in the future cause the government to issue actual currency with which to make the bet good!

Banks are both writing massive quantities of unsecured loans and doing nothing on their side to balance the ledger, AND they are failing to honestly and realistically book the values of their hard-asset loans. The big banks are still booking home values at their original purchase price – not the fair market value today. Given the housing bubble, most mortgages today are underwater and are worth far, far less than the principal balance to say nothing of interest. This is why the major banks are not just totally insolvent, they are insolvent multiple times over. If the banks actually had to comply with the law, the entire system would implode into a singularity tomorrow.
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