Lining up the ducks........................from Rico

Let's sort out some interesting patterns before the next shoe drops.

- 2008 was the first shoe, but it was only a prelude for what will come next. Nothing in the financial system has been 'fixed' since then (there's still too much easy money to be made keeping things just as they are), but a lot of "preparations" have been made.

 

Here is one set of preparations to consider despite everything being pretty swell and okey-dokey...according to our ever-trustworthy politicians, the Ministry of Truth, and the money-honeys of FTV: Physical Gold bullion as collateral for paper trades.

- Some may have noticed that last week the Shanghai Gold Exchange said it would start allowing physical Gold to be used as collateral on futures contracts, up to 80% of margin value. [Reuters]

- Few know that the large clearing houses (ICE, CME, and LCH) which oversee the $700+ trillion derivatives market ALL began accepting physical Gold as collateral in 2012. [Bloomberg]

- And almost no one is aware the SEC has implemented regulations to STOP withdrawals when the next financial crisis hits. Capital can be "locked in" [read: you can't get your money out].

- [SEC.gov]

 

How many know that the banking laws have been changed so that 'depositors' no longer own the money they have deposited, but are now considered 'unsecured creditors' that have made a 'loan' of their money to the bank, and the bank can do whatever it wants with what has become their money? [read: unsecured means go the the end of the claims line and maybe get pennies on the dollar back in the event of a problem.]

 

Consider the recent drumbeat for a "cashless society" most recently promoted by the Financial Times. We already have seen the value placed on physical Gold by a financial system that publicly pretends to hate it but accumulates it while scaring people away from it, but why the "push" to get rid of physical cash too? Two very good reasons.

- 1. Negative interest rates, bail-ins, withdrawal limits, currency revaluations are all much easier to force upon people when there are no other options open to them. Complete control of 'digital' money allows complete control of people once cash is banned. The ones that crashed the system are hoping to buy some time before the math catches up to them and it crashes again. [Remember Cyprus?]

- 2. Because in a financial crisis derivatives, futures, options, swaps, and other forms of digital currency trades are, in fact, worthless. I think Bill Holter said it best with this: "Everything is worth nothing."

 

When faced with the question of what has value, and what does not, Gold (and Silver) bullion will be the only "insurance policy" left that can pay on a claim. 

- Having a little cash on hand won't be a bad idea either.

 

We see that there is an almost complete political totalitarianism already in place, and it is not far-fetched to conclude that complete financial totalitarianism is on the agenda.