We used to live in societies which observed the Rule of
Law. Among the many great ironies and perversities of our social/legal
devolution is this. Many of our fundamental principles of law (and justice)
were such an integral part of our lives that they were taken for granted, and
thus rarely discussed in explicit terms. Now, in the Corrupt West, many of
these same principles of law/justice have been forgotten – seemingly erased
by our lawless governments.
One of these elementary principles of law is the
commercial doctrine of “consideration”. The premise and legal principle is a
simple one. In order for any commercial transaction to be recognized as being
legitimate (and thus legal), both parties to any transaction/contract have to
derive some material benefit. In law; this material benefit is known
by the name “consideration”. There must be consideration, on both
sides of any/every commercial transaction.
At this point; many readers will already grasp that
so-called “negative interest rates” violate the legal doctrine of
consideration, and thus fail the test as a basis for any legal/legitimate
commercial transactions. However, this merely scratches the surface when it
comes to the degree to which our criminalized interest rates violate the Rule
of Law. To fully appreciate the lawlessness of what our puppet governments
are inflicting upon us (for the benefit of our Banker
Overlords ), we need to delve further back into this litany of
criminality.
The starting point in our descent into fraud and
illegality with respect to our interest rate regimen is the so-called “0%
interest rate”. There is no such thing as a “0% interest rate” or 0% loan. By
definition; an interest rate is a positive number . It is the price
we pay in exchange for the use of capital.
As has been explained
previously ; what our corrupt governments call a “0% interest rate”, our
Justice System (the real one) calls a “sham transaction”. We know this, in
our two-tier societies, because if Ordinary People attempt to engage in the
sham transaction of a “0% loan”, their transactions will be
immediately subjected to legal scrutiny (generally by the Tax Man) and deemed
to be null-and-void, as sham transactions.
Some readers will claim that this is not true. They will
assert that “0% loans” and 0% financing are now common, legitimate aspects of
our world of commerce, with automobile sales being a commonly cited example.
Why can car-dealers offer “0% financing”, and not have these transactions
nullified as sham transactions?
It is because these transactions do observe the
legal doctrine of consideration. It is simply that these transactions have
been disguised to create the illusion that the purchaser is getting
“something for nothing” (i.e. free financing). Nothing could be further from
the truth. The supposed “free financing” is merely an incentive to purchase,
provided in lieu of other sales incentives.
If the same purchaser sought to purchase the same
vehicle, but without the perk of “0% financing”, then instead of that
incentive they would be given a choice of other freebies, to entice them to
commit to such a major purchase. Alternately (and even more cynically) auto
dealers simply – and secretly – raise their sticker-price on the car, so that
there is no “free financing”.
The purchaser pays precisely the same amount for
the vehicle by the time that the payments have been completed. All that has
changed are the optics of the payments. Instead of paying “interest” over the
months/years of car-payments, the purchaser is simply making larger payments
of “principle”: the purchase price of the car. There is “no free lunch” in
legitimate commercial transactions, nor in societies which observe the Rule
of Law.
A so-called “0% interest rate” is a prima facie fraud. It
is free money. The Federal Reserve, corrupt
operator of the world’s “reserve currency” has been financing the U.S.
monetary system, and the U.S. economy itself, through fraudulent currency. Of
course the “0% interest rate” is just one of many Fed frauds. This is why
this fraud-factory never allows any legitimate audit of its books.
Free money is fraudulent money, and thus illegal money.
It is nothing more than a variation of counterfeiting , especially
when combined with the institutionalized (but legal) fraud of “fractional-reserve
banking” . The combination of so-called 0% lending and fractional-reserve
banking renders a monetary system fraudulent and illegal, all by itself. It
renders the currency of that monetary system worthless.
So-called “negative interest rates” are much, much worse.
Borrowers stealing from lenders. Banks stealing from their
depositors. Just as there is no such thing as a 0% interest rate, there could
never be a legitimate concept known as a “negative interest rate”. This term
is simply another banker-euphemism for more banker fraud/crime.
The enormous
economic carnage which is caused by our regimen of such criminalized
interest rates was the subject of the prequel to this piece. It was/is
important to demonstrate this harm, from a legal standpoint. Why has the
insanity/fraud/criminality of negative interest rates been inflicted upon us?
Because (supposedly) we “need” this fraud for the sake of our economies, and
thus our own best interests.
In legal parlance; such attempts at justification are
called “public policy” arguments. Yes, the conduct in question is technically
illegal, but because the conduct “serves the Greater Good”, we bend the rules
and allow the conduct.
With the open criminality of negative interest rates,
there is no Greater Good, merely greater and greater evils which flow
from this monetary fraud, as (primarily) the Big Banks steal from
anyone/everyone hapless enough to have some of their capital within the
clutches of these financial pirates. A “negative interest rate” fails the
test of legality, in several respects. There is no public policy argument of
any kind which could mitigate in favor of this fraud, to even the tiniest
degree.
It is particularly important to explicitly acknowledge
the open criminality of negative interest rates, because as informed readers
are well aware, the banking Crime
Syndicate is just getting started. While “negative” rates become
more and more common, and more-deeply negative (i.e. illegal), the banking
Crime Syndicate is pushing an even more-heinous criminal agenda on our puppet
governments.
Informed readers know this latest campaign of financial
crime by the name “the War on Cash”. The “war” is being fought (by the
bankers) in order to create a paradigm of ultimate financial fraud/evil: the
Cash-Less Society . What is a cash-less society? It is a
financial/economic system where all residents are compelled by law to keep
all of their (fully) liquid wealth inside a bank – generally a Big
Bank.
And once our wealth is inside the Big Bank? We no longer
receive a microscopic (positive) rate of interest on our deposits. We no
longer provide the bank with the use of our capital for free (which is
already illegal, by lack of consideration). We’re now forced to keep our
wealth inside the Big Bank, and then the Big Bank systematically steals that
wealth, in ever-growing increments, via the crime of a negative interest
rate. And what they don’t steal via negative rates of interest, they will
steal via “the
bail-in” – an even more-lawless confiscation of financial assets.
Crimes piled atop crimes. Lies piled atop lies, to
supposedly justify all this systemic criminality.
However, readers of these commentaries already have their
own Answer to the ever-thickening web of criminality and financial fascism
being wrapped around us like a choke-chain: precious metals. We will escape
the criminality of “negative interest rates” and escape the criminality of
“cash-less societies” by funneling our wealth into gold and silver.
Honest Money. Stores of value; protection
from this organized crime.
Yes. The same banking Crime Syndicate which has already
imposed the systemic criminality of negative interest rates, and is about to
impose the systemic criminality of cash-less societies, will allow prudent
people to escape their financial clutches , completely, while everyone
else has their wealth forcibly taken from them in this lawless/rapacious
manner. Here are two words for any/all people comforted by such a Dangerous
Delusion: “bullion
confiscation” .
We must stop the criminality of negative interest rates
today, not after the dwindling remnants of our wealth have been pillaged by
the banking Crime Syndicate, with the enthusiastic assistance of our puppet
governments. Governments which refuse to outlaw the naked criminality of the
so-called “negative interest rate” should not merely be (meekly) voted out of
office. They must be impeached .
The central banks which are callously and deliberately
facilitating this systemic financial/monetary crime demand more than mere
punishment. They must be abolished .
These corrupt, spineless governments and the Institutions
of Financial Crime which rule
above them (and us) are doing more than merely betraying us, as they
serve their real Masters. They are malevolently conspiring to destroy us
financially, completely and utterly.
The “War on Cash” and all of these other systemic
financial crimes are a war against all decent people, waged by the
psychopathic oligarchs who lurk in the shadows. We did not declare this war.
We do not want this war. But if we don’t start to fight this war, it
will soon be over – and we all will have lost.
All that is necessary for the triumph of Evil is for
good men [and women] to do nothing.
- Edmund Burke, Irish philosopher, 1729 - 1797
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Jeff Nielson is co-founder and managing partner of
Bullion Bulls Canada; a website which provides precious metals commentary,
economic analysis, and mining information to readers and investors. Jeff
originally came to the precious metals sector as an investor around the
middle of last decade, but with a background in economics and law, he soon
decided this was where he wanted to make the focus of his career. His
website is www.bullionbullscanada.com.
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The views and opinions expressed in this material are
those of the author as of the publication date, are subject to change and may
not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does
not guarantee the accuracy, completeness, timeliness and reliability of the
information or any results from its use.
