Every once in a while it is good to go back to basics. We have
looked at the topic of whether gold even matters several times in the
past. Charles Hugh Smith undertook the exercise of “re hypothecation”
process last week and can be read here. He ends this article with a
common sense question that asks “if gold is such a useless relic then
why don’t they just charge the public for tours to see the gold in
Ft. Knox? What’s the danger?”.
Actor after actor has been paraded forth to tell the public. “gold is a
useless and barbaric relic”. We are told daily “it doesn’t pay any
interest, it costs money to store it, you can’t eat it and Walmart won’t take
it. It’s pretty for jewelry but that’s about it”. I ask the
questions, why then do central banks bother to hold gold? Why the
secrecy of our own gold holdings? We are told that no audit can or will
take place because it would cost too much? Why not sell a few of the
“useless bars” to pay for the audit?
The answers of course are all so obvious. Gold is badmouthed because
it is the direct competitor of the U.S. dollar. We haven’t had an audit
because the numbers would not match up and it would be discovered we do not
have the gold we claim(ed) to have. Put simply, the “danger” is the
U.S. will be discovered as a fraud, a thief and a liar if an audit took
place. This is why we are bombarded daily with negative psyops
regarding gold and why for the last couple of years the price suppression has
been so openly blatant and fierce. It is ALL about the dollar and the
privilege of issuing the reserve currency, namely the U.S. ability to hang on
to this privilege.
The above is “U.S. centric”, the view or perception is far different in
the rest of the world. China and Russia are openly buying gold for
their coffers. They even encourage their citizens to buy gold for
themselves. The Indians even smuggle gold into their country while
being discouraged by a pro U.S. government. My point is this, the rest
of the world knows what gold really is, it is money. I would even say
many Western governments understand the game as proven by their
requests to repatriate gold from N.Y. vaults, “trust” is waning.
You see, gold is “trust” itself. Gold is not “issued” by any
country, the reality is, any country who has gold is seen to have
“wealth”. Ask yourself this question, which is more important, whether
the U.S. considers gold to be wealth or whether the rest of the world
does? I have been asked the question “what if the U.S. decides to
outlaw gold and make it illegal to own”? THIS is why you should own
some or even the majority of your metal OUTSIDE of the U.S.. The rest
of the world clearly views gold as valuable, you would have wealth outside
where this wealth could either remain or be brought back in the form of
another currency.
It should be clear to you by now that power is moving away from the
U.S.. “Trust” is also moving away from the U.S., this is evidenced by
the various actions of nations over the last several years, an
alternative clearing system to SWIFT, currency hubs, the AIIB and other
banking systems… AND their buildup of gold reserves. All of these
measures have progressed as the U.S. has lost more and more trust. The
world sees the U.S. in a very poor light for what we do and how we act.
They no longer see us as a “model citizen” who follows the rule of law and
will “call us” on this shortly.
As I have said previously, the “we’ll show you our gold and we demand
to see yours” moment is close at hand. What exactly do you think will
happen in this event? Can the U.S. get by with “trust us, the gold is
there”? Can an audit demanded by the rest of the world be denied?
And what if an audit is done and the U.S. turns out to have less than 1,000
tons and a bunch of custodial gold is missing?
Back to the top and the title, does gold really matter? I guess I
can answer this with another question, “does trust really matter”?
“Trust” matters in everything we do, from daily life to financial
affairs. Trade depends entirely on trust and living standards depend
on trade. The endgame of the Bretton Woods agreement is upon
us because the leader, the U.S., has done so many dirty deals, twisted
so many arms and abrogates the rule of law at will.
I believe the defining moment will be when either China formally applies
for inclusion into the SDR or, when they outright
announce what their gold holdings are. If China does apply for SDR
inclusion, as I understand it they will need to provide audited figures for
their gold holdings. They are a very polite and proper people but not
the third world fools our press would have you believe. The intelligent
move on their part would be to ask for an audit of the others included in the
SDR. By requesting an audit of “all” they would be asking for an audit
of Britain and of course the U.S.. They know full well these audits
will not add up because they know they have purchased more gold than has been
produced, it had to come from “someone’s vault”. In my opinion, this is
the most likely way to “politely” expose the issuer of the world’s reserve
currency as fraudulently abusing their power. Gold really does matter
to the rest of the world which means when all is said and done, it will also
matter in the U.S. whether we like it or not!
