Most of my favorite deep thinking buddies (not all in the Wolf pack crew btw) understand the full value of “beans & bullets”! They love to say, “What good will gold be, when you can’t eat or protect yourself!” They are right, but only during the "Hunker Down" phase combined with the initial crossover to the "Rebuilding" phase. And, by the way one of those phases is sneaking up on us at this very moment. That being the “Hunker Down” phase, a phase where exposing your metals stash will probably be ineffective. If not down right dangerous. But, after the “Hunker Down” phase, nothing will be more universally accepted than “Gold & Silver Bars & Coins” a.k.a GSBC (acronym from now on). Sometimes Wolf Gray is slow on the uptake, an uptake that the universal acceptance of GSBC will not be it's only clear advantage. For example, there will also be a massive purchasing power benefit that is seldom discussed (mentioned to The Guerrilla in an email, & on the Nov. 20th radio show), in this case it is “AN INCREASE IN YOUR PURCHASING POWER BASIS!” Slightly akin to “tax basis”. One of the true hidden off the paper ledger benefits of GSBC's, details in a second.
Hopefully Ken Schortgen Jr., will review my theories, as he is closer to an accountant in his professional background, than yours truly. But, due to my professional background, I am supposed to have more than just a passing interest in the ‘economic/accounting’ side of the business equation.
First some amazing updates, that show how Team RM is ahead of the curve much of the time, as well as a brief discussion of what I consider to be a huge “wake up call”, delivered in the latest “Guerrilla Report”. Also a “Roast” of one of my favorite economic wizards, during one of his latest interviews with RT News. First......
And, in the “Big Time Punk of the Year” balloting, the award goes to…..
You don't make this kind of stuff public. Not about your 16 year old daughter. Have some pride! What a punk, or better yet what a puke! This is "Exhibit A" in the..."we have crossed the rubicon of moral leadership"....! Caitlynn is at least an adult, so OK make a big "too-do" about him/her, who cares to some degree, but not a child, and yes look at her she is a child! This tops the frickin' Kardashian 'bs'! Sorry I had to rant on this one, but not long, for it is too revolting!
Team RM may be able to take a bow regarding this next theory. In fact maybe the alt. media crowd is taking some cues from Team RM. Check this out…….http://www.zerohedge.com/news/2015-11-22/here-full-scenario-which-fed-hikes-commits-policy-error-starts-recession-and-launche
Pulled specifically from the above ZeroHedge link.....
What this means is that the Fed, in its reflexive attempt to boost confidence in the economy - and the logic goes as follows: "look, we are raising rates, and we wouldn't be raising rates unless we thought the economy could handle it" (just please ignore the whole "subprime is contained" thing) - is not only engaging in massive policy error, but is about to unleash a recession which will promptly force it to cut rates again (to negative) and start another episode of QE.
The above is a prime example of "taking the candy away & then giving it back real quick with a dose of sugar to boot". I don't mean to brag, but I will, Team RM was way ahead of the curve on this theory, note the installment from 2 months ago. Pay special attention to the final subtitle, "Final Head Fake tip"...
Isn't it odd that the equity markets went upward with rocket like force (Wed. Nov. 18th), in the face of FOMC minutes that said "Hawkishness was a forgone conclusion for December”? Maybe the theory is, if they hike rates it is because they know it is over so might as well pretend things are fine. But, that will not likely happen, and ZeroHedge posts the following link with insight from “The Vampire Squid”, detailing some strategies behind the strange Wednesday rally...... Ken Schortgen Jr’s recent article on the unusual emergency FED meeting a couple days ago comes to mind as well. The FED is probably about to act proactively instead of reactively to something (no telling what) that the crowd at RM was probably already well aware of. Time will tell? In theory,Team RM was out in front of this one as well on the 13th radio show:
Tooting the Team RM horn again (sorry when you are right you are right), note the following article that also details the fact “Economic Mother Nature” will eventual have her way with the “Paper Ponzi Equity Markets”.
This is interesting, but it doesn't take into account the illegal internationally displaced dollars that could be stuck in international nowhereville. Again detailed last summer by the Team @ RM in the ESF revelations, and other dollar hidey holes. All of this in the shadow of a rise in eastern power, with a sure fire guarantee that the displaced foreign western paper will soon find a north American home. This could be rocket fuel for a temporary time period to the equity markets, meaning onward & upward (got to find somewhere to hide). Note, if it happens, it will be very temporary. It is just dollars coming home to a paper world with nowhere legally to go, except the equity markets (see the next paragraph). Time will tell. As in very very soon.
BTW, does anybody recall who it was who stated the market is more likely to head up, and not down in the next few months? Could it be “The Guerrilla” (interview with Greg Hunter & The Watchdog), as well as Michael Rosecliff (r.i.p.). I may be wrong, but V’s friends at “Evolution Global Consulting “ might also be calling for a near term rise in the equity markets. If this outcome materializes in the market directional sense, they will be the "Lone Forecast Rangers". This is significant due to almost all of the alternative media crowd throwing their predictive hats into the market's actual collapse by the year's end. From a "no other place for paper to run to" scenario, V's forecast makes sense, as some of the fund managers (will eventually be dealing with a good portion of it), who will be responsible for the flood of returning cash, are restricted as to the placement of their investment funds. That is because, most are tied by the “Fund Prospectuses” to place the largest portion in the equity markets. If they deviate from that course, they will be looking for a job, or doing jail time. Regardless of the paper trail once it hits our shores, the inevitable flood of dollars back home has to go somewhere, and the bond markets now offer little possible upside return, with the '30 year' recently touching below 3%. Hello equities.
Why only paper investments? Simple, the hard asset world, like say real estate funds, are such a small portion of the western investment framework, that they will offer very few “welcome mats” to all the dollars that will be flooding home. It’s paper baby, that is just the stupid way we have designed the entire western system, and like in a past installment, “There is No Easy Way Out!” It is a trap with the exit doors about to be slammed shut. And, even more amazing, the trap is baited, and has recently been made legal.
First, a little more confirmation, of the coming real economic collapse, and the paper apocalypse that will be close behind, before getting into the explanations of the installment title. One that may illustrate a hidden secret with some true bargaining power for those who weathered the storm & still possess real money, GSBC’s.
A Major Indicator Rears It's Ugly Head:
Speaking of “The Guerrilla’s” information trail (3 paragraphs up) from his high level contacts, how about the latest “Guerrilla Report” that puts some common sense pieces into the confusing puzzle that is the world stage? Enter, France’s curious pre-positioning of an air craft carrier to the middle east prior to the Paris attacks, and why? Tie that in with the revelation from last week’s report detailing France's supplying military tactical support to Yemen, and you can paint a picture that shows an eastward movement by the NATO member. This is evidence of a shift east by a first tier economic country (as measured by paper of course, but who isn’t these days). Those that can’t see this shift after tying in the Paris events, are either blinded by a false paper facade, or are just plain dumb.
Note the c.y.a. action (cover your arse) in this next report from of all sources, the FED.....
The above article is a clear clear sign that a downward real economy direction is in the offing. It is my belief that the FED just wants to have it on record, “Hey don’t blame us, remember when we warned you of this bank failure problem!” Regardless of the analysis of it's meaning, it is a clear sign of impending doom no matter how you slice it.
And, in a real time sense this next one is a real eye catcher…….
Ah, the one & only "Hope" saves the day in another economic indicator. This time it is the Philly Fed. Wow, I think I am going to find me a good continuing education class with a strong emphasis on "Hope" & the fundamental reasons for it being a primary driver in on the ground business statistics. Gee I hope I learn something! What a crock of shit!
I can hear it now, "Hey Wolf you going to take you some extra vitamin D & C to fight the spread of the flu going around the neighborhood?" WG, "Nope I just bought a new bottle of "Hope" with 1000 mgs of hope per pill. I think that will do the trick!"
Wait a second, maybe the recent “US Manufacturing PMI" did not get the memo on the value of “Hope” like the Philly FED did. Check this out.
I don't get it, don't they understand or have they yet to factor in the value of "Hope". Even ZeroHedge slips, and alludes to it in the following sentence, without proper respect to the “Philly FED” & their reference to the value in the mighty HOPE!
Of course, hope remains that the Services side of the economy will maintain the dream of escape velocity but if last month's drop in Services PMI is anything to go by, it seems unlikely.
Economic Mother Nature has to be rolling on the floor laughing & muttering, “I mean “Hope’ really? Wait to you see what I have in store for you paper bozos in the coming months.”
I think the economic stooges best put “Hope” into the measuring of real economic trade, as represented by the shipping indices. As it stinks! Check out this dismal report in the face of “Western Hope”. Maybe they should change it to, “Hope & Change You can Believe In”, and get the mighty Zero to deliver the FED messages.
I know I report on the above headlined statistic a lot, but it just keeps getting worse. Truly amazing. The paper maestros don’t even attempt to hide this indication of the economic collapse, which leaves one has to ask why? Most likely c.y.a., and the knowledge it is over the steeple’s heads, and therefore it will not stop the last bits of debt overload.
One of the banks I do business with just lowered (this morning) the cash withdrawal limit at the window, once again (not the first time either & this is one of the big 5 in the USSA). I have no debt with them, and 3 accounts, all well in excess of the measly low 3 figure withdrawal. Be vigilant, folks!
Next up that wild and wacky promoter of globalism Jim Rickards…...These type interviews, globalist tool or not, are still worthy of review due to the intelligence you can gather that may impart knowledge on the King Dollar failure.
From 2:55 to 10:42 in this RT News report "J.R." shows his true globalist flag waving skills coming to the fore. Note I still maintain this is a smart well informed guy, so his views are a great way to take the temperature of the economic collapse, but all the while recognizing he is a tool for the western paper elites. First some of the evidence trail in this video, which is important, because it reveals we are so so close to a paper demise…..
4:00: He admits that congress is busy trying to block easy inroads for China into the IMF. Curious on face value, as it is the International Monetary Fund, not the US Monetary Fund. Why should congress be so important? That one is easy. The "King Dollar", after all the IMF is a US tool, for now anyway.
4:58: China is limited by “slow growth”….! Say what? Slow growth compared to who? And, it is a prestigious club! Another, say what? Maybe a prestigious club for bankrupt debtors!
5:25: It is about time for another panic, as they always happen every 7-9 years. Is he giving a hint of something he is now sure is around the corner? I suspect yes, and the Wolf Gray smells, another step forward to save room for a graceful entry into another Jim Rickard's economic best seller, by being on the right side of the prognostication game.
5:52: But don’t worry the IMF can save the day, due to an ability to re-liquify the world! Backed with what you moron?????? He will contradict this very statement via pure contradictory logic in just under 4 interview minutes. Hold on for this doozy.
6:20: I don’t know what to say to this ‘bs’….China may not be able to play in the next crisis (due any day by the 7-9 year rule), if they don’t have exclusive IMF membership! My eyes are crossing, what??????
7:10: China is a mess, ........ Debt to GDP is much worse than the US (paraphrased). Yes he actually said that. The words seem to match his mouth, and I don't detect any "sound dubbing"!
9:08: China is very small in reserves & global payments, but it is growing. First it aint’ small, and second is anyone else growing, at all? Or are they all declining? What a mattock head! What a tool! What a globalist!
9:21: (refer back to 5:55) The SDR is not backed by anything, it is just fiat money. He is admitting, or correlating that there is weakness in the fiat system, but the re-liquefication that will save the world will come from where? That’s right, the very same fiat!!!!!! Don't try anything new, oh no! Like Real money!
OK I got to rant on this one, and did on last Friday’s Guerrilla Radio Show, on the 20th of November. First this guy knows better, but….! Let’s just pretend fiat is the only answer, and thus so is his re-liquification by fiat. Next up, just envision the first IMF member meeting with it’s new upstart China in attendance.
Setting the stage: I am representing China, and now entering my first board of IMF directors meeting (got no clue what these numb skulls call it). Here is my first question. “OK Mr. Dollar, & Mr. Euro, & Mr. Yen, & Mr. Pound, what percentage of rights do I have in this exclusive club?” “Well Mr. WG you are the new kid on the “FIAT/DEBT” Paper Block”, so your rights are reduced to low single digits as a percentage of 100%!” WG the China representative, “Check these pieces of paper out (laying them out on the board room table). These pieces of paper say I own your debt! Now let’s start talking real turkey you piss ants!”
Folks if these clowns insist on playing by paper rules, then so be it. Believe me China can get some serious leverage at the negotiating tables with those debtor notes. The current paper debt, junkies know this & the Wolf Gray’s sense of smell suspects, they will continue to try to keep China out. At least the one of the current four, that stinks the most will, the King Dollar!
Wolf Gray takeaway from this Rickard’s interview. The heat is on from the east, and he is just adding paper brush strokes to the phony view of the existing western painting. All in an attempt to complete his c.y.a. action as he adds, “I disagree on the premise China’s admission to the IMF isn’t a big deal though!” INDEED J.R.! Get that paper message out you paper lackey, but make sure you c.y.a. for the next book on how you saw this one coming. This one being the end of fiat dominance from the west. What a tool!
More hypothetical stage settings: "If you guys decide to print some more to liquefy the system, as the China representative, then let me add this, "Not until we settle the score at the gambling/debt table, right here, right now!" Bet I wouldn't be too popular at the IMF table of stooges, but hey maybe Chris(tine) Lagarde is into Wolves. That would get me out of the room, no eviction notice necessary!
Real Purchasing Power with 100% Likely Hood of Acceptance:
Many of my Wolf Pack associates feel they have things figured out in a post economic collapse scenario, with their “beans & bullets” strategy. I suspect they will be spot on in the "Hunker Down" phase, and also during the initial portions of the transition to a full "Rebuilding" phase. BTW the the transition to the hunker down phase has probably already started. Ask yourself if you have been trying to make a smaller, paper, footprint of late? The transition to a possible state of total invisibility is happening right now, in order to not be conspicuous to an ever intrusive government.
So let’s say you are a “beans & bullets” only type of individual. What do you use for barter or trade, after the "Hunker Down" phase, and followed by the shoot em’ up phase likely necessary during the initial "Rebuilding" days? After all a civilized "Rebuilding" phase is likely to require easily recognized, and respected capital. And, real monetary savings!
Examples: Imagine going into a food store to barter with your grain in hand (a b&b staple), and the vendor opens his grain storage bin to show you it is completely full. Then telling you, "sorry partner I don't need your grain, but even if I could take it, I couldn’t give you much for it."
Another example: Or going to a general store, and trying to trade your ammo, after the shoot em’ up phase is winding down. "Sorry I can only give you 50 cents on your dollar for that stuff partner."
It is likely to be from this moment forward that, one medium of trade will stand out, and be accepted during this time period with a near 100% acceptance rate, GSBC (gold & silver bars & coins). To boot it all, and by default, it will also be blessed with a stepped up basis in purchasing power. A little more on that valuable aspect in a second.
Ever noticed that some of the folks you see that are waking up, don’t seem to give much of a priority to GBSC's, as compared to the beans & bullets? I agree b&b should be important, but if survival for the rest of everyone’s days is up to those items only, then over 99% of us will be dead in a few short years. I don't care how bad you think you are, your days will be numbered without a conversion to transacting business with honest money. This mindset of those who are trying to wake up, is proof that the paper indoctrination by the PPPTB (paper pushing powers that be) has been quite effective!
Productivity, not fear & negativity will promote peaceful moral & economic business growth. Eventually you will run out of beans, and you can’t shoot everyone else for your food & survival needs, as the vendors will close up shop & leave town. I think a transition to rebuilding should come in short order, as in a year or less. Especially in order for a non-agrarian society (like we live in), to have any chance at being long term successful, with productive business growth. Thus, a peaceful honest medium of exchange will be a necessity. Any ideas?
So beans & bullets to feed & protect (also protect your GSBC’s) during the early stages, supplemented with some medium of widely accepted, non devaluing real money to rebuild with, is a must. In each of the store owner examples above GSBC’s will be gladly accepted, and encouraged, while b&b will start losing their value rapidly. Best not be holding to many of them in one hand, and no GSBC’s in the other hand. Thus the reason for the RM term DHAP (diversified hard asset portfolio), which should be suited to your personal preferences and needs.
GSBC’s will be the easiest way for entrepreneurs & vendors to pay for inventory, and help establish new trading partners, without worrying about immediate devaluing of their money vs. commodities, and real assets. This is the foundation of a growing real economy that most businesses need, not a bankster’s version run by paper's entrapments. OK most RMer's understand this, but what is this “basis” stuff, as tied to purchasing power?
I am not an accountant, but basis is primarily your personal level of investment, or your own after tax money input to an investment. If you put a 100,000 after tax dollars into a fund, your basis, then after a few years you liquidate the fund, which has increased to a total of 200,000 dollars, you will then owe capital gains tax on the amounts above your basis, plus any applicable state taxes. In this example the taxable amount is 100,000 dollars (200K - the basis or 100K). If the original 100,000 dollars is in a qualified account (a.k.a. pre-tax account) like an IRA, then you would owe tax on the full 200K.
Well well well, how much of that is known by the Federalis’ on GSBC’s? If you did like has been recommended here on RM, none of it is likely to be taxable. Sticking with the same example, your purchase of GSBC's with 100,000 after tax dollars, will most likely have no paper trail for taxation of the 100K gain. So the extra 100K gain ain’t going to be attacked by the government tax machine. Plus the vendors who receive your GSBC’s will also welcome it, as they will now be able to personally take full advantage of this situation as well, for as long as it lasts. Win Win for all except the banksters. Just another reason the banksters hate GSBC's, they lose a great deal of control.
So no taxes applied leaves the full 200K value of your GSBC’s to work for you. Not 200K minus a capital gains tax on the 100K that would be applied to the paper equivalent. Probably leaving only 170K (at the very best after most state taxes) for your purchasing needs. A 30K loss of purchasing power coupled with a loss of the freedom due to being watched at your every "purchase move". Not too mention that the net after tax 170K in total fiat will likely be in rapid devaluation each & every day, (has been even during the days of the fiat's rule). So what business vendor is going to want rapidly declining fiat over GSBC’s? Or more importantly what business vendor is going to want post violent, beans & bullets, which will now be losing value very rapidly, or even more rapidly declining fiat, when they can instead have stably valued GSBC’s? Thanks to the power of ownership & usage of GSBC's, you have now enjoyed the leverage of, "A Step Up in Your Purchasing Power Basis"! A benefit with huge potential, when the alternative legal tender is in persistent decline......!
Without the standard paper devaluing problem, and the avoidance of the taxation over & above the basis problem that is afforded with the usage of GSBC’s, what is it that trade in Gold & Silver Bars & Coins allows every person at the bargaining table? Honest valuing of Purchasing Power, and an immediate step up in non taxable basis to the full value of the GSBC holdings. Again, a "Step Up in Your Purchasing Power Basis!"
Will the government try and stop this? Yes, but how long will it take to complete a system that is enforceable? Who knows, after all they will be trapped by their own proficiency in making a public mentally dumb to the values of anything but paper. Meaning even the store owners & vendors are caught up in the trap, where very very few westener’s understand the value of GSBC’s. But, once the vendors, and the citizenry catch on to the power of physical GSBC's, and the lies behind the paper, the enforcement by an outside agency will be difficult at the very best. I know the sheeple don't get it, but that will change over time after leaving the "Hunker Down" phase, and the emergence of the "Rebuilding" phase. At this point those that have made it through will not be so "sheeple-like" anymore.
What store owner is going to want paper that could devalue drastically before his or her next inventory purchase when they can have rock solid value in GSBC’s? Or if the vendor is forced to accept only legal tender, what buyer possessing a stash of "legal tender only", will be able to pony up the amount of fiat necessary for basic needs? Few, except for the super rich. Only those wise enough to have pre-insured themselves with a good stash of the "Stepped-Up Basis Purchasing Power in GSBC's" will be able to afford the increased fiat necessary to hand over to the hyper inflated fiat machines behind the vendors counters.
After this coming economic collapse, which will be coupled with the heavy devaluing of the local, legal tender, fiat paper, only the folks with the wisdom to have built a well thought out personal DHAP will be able to kick off the "Rebuild" phase effectively. And, in this phase, it will primarily fall on the shoulders of those wise enough to have also built up their DHAP with an inventory of real money, in the form of GSBC’s.
Most of us love freedom, well how about the freedom in a post collapsed economic world, where you can Preserve Your Purchasing Power to easily obtain the items needed to survive, and possibly without intrusive government control. Because that is what taxation defined by your basis is, governmental control, and with GSBC’s it will be, at least for some period of time, eliminated!
For those that have trouble envisioning this coming collapse, then look to the present. The largest commodity for profit on the planet, "energy is changing it's majority control & losing it's profit margins"..&..."western banks are on the edge of a steep cliff"..&.."Turkey supposedly (waiting for V or the Russian analyst to confirm)" shot down a Russian war plane..&..."the middles east is in total chaos"..&.."state side, 3rd quarter earnings were an unmitigated disaster"..! We may witness some phony jawboning by the msm about a surprise in the retail market after Thanksgiving, but it will be a short lived lie of a message. If you can't conceive of the future, then how can anyone still not recognize the disaster that is ongoing? I know, "but WG the DOW is up!" Best forget that folks, and pay attention to the current real, non paper back drop, because if you are honest with yourself, your best tangible option is..."Gold & Silver Bars & Coins! Current or crystal ball views, GSBC's are your best options.
"Gold & Silver Bars & Coins" will be the most universally accepted form of monetary exchange to purchase the products & services needed to fuel the "Rebuild" phase or stage. Otherwise, there will not be one, at all. Fiat or even "beans & bullets" don't have the intrinsic value to support any sort of lasting rebuild. In that instance there will only be survival! Think about this, almost every other hard asset has a taxable trail to it (excluding some oil & gas lease partnerships, which the Fed's watch anyway), but not "Gold & Silver Bars & Coins" in international, and or physically held form. An advantage that has constitutionality to it....with a link to economic FREEDOM!
No cut to the importance of ’b&b’ folks, but if you can do it, take the time to increase your purchasing power. Do it easily with the advantage of a stepped up basis in purchasing power, and all with very little government intrusion. How? Honest money, Gold & Silver Bars & Coins held in physical form! GSBC it may not be what’s for dinner, but it will most likely be able to buy it, for you & your family!
Avoiding diversification, when you had the means, especially in the form of “Gold & Silver Bars & Coins”, and your “Love will be Vengeance that is never free!” And one thing is for sure, “Your dreams will not be as empty as your conscience will seem to be!”….The Who…..
Personally I just want to celebrate..! Easier to do with the advantage of a “Stepped Up Basis in your Purchasing Power”!
I put my faith in the people But the people let me down So I turned the other way And I carry on, anyhow
Had my hand on the dollar bill And the dollar bill flew away But the sun is shining down on me And it's here to stay..... Rare Earth
Hard Asset Tip:
Get a manual bicycle tire pump (it works on autos as well). Usages could be quite broad, especially if power is limited in any way. In fact get 2, and add a bicycle or 2 to your garage if it is within your means.
God Bless, Be Well & Happy Thanksgiving!
ps...Just realized The Guerrilla put up a report on the Russian warplane shoot down scenario(15 minutes after posting this installment)
Credits to the thoughts of: Opie, Team RM, ZeroHedge, Jim Rickards, The Who, & Rare Earth