End Game: Gold Investors Destroyed

Trail of tears and broken dreams (delusions) lies ahead...

Gold will go very high in fiat value, that is not the problem.

Gold investors (myself included) are trapped at the end game, and they do not even realize it yet. No physical confiscation is needed to wipeout the gold hoarders. It is much simpler than that. At the end game, the gold investors will throw their gold into the streets willingly (or bury in ground forever). The physical gold will be useless. You don't think so? I will prove it.

The blackmarket (barter) market will die in the end game. I will prove it. And gold sales are and will be increasingly taxed. Since gold only keeps up with inflation (due its role as the regulator of real interest rates, see this https://www.marketoracle.co.uk/Article20263.html ), then any tax paid on gold is a loss of purchasing power for the gold investor, irregardless of how much the price of gold has risen:

https://www.gold-eagle.com/editorials_08/amerman061110.html
https://www.marketoracle.co.uk/Article20208.html (see concluding paragraphs & comments)

The current and future timeline:

1) Sovereign nations are socializing the debt defaults, which is parabolically accelerating the negative direction of already negative real interest rates. Politically and mathematically this can not stop until the fiat system has died (irregardless of any media circus about austerity). Understand the connection of real interest rates to gold:

https://www.marketoracle.co.uk/Article20263.html

2) #1 mis-allocates (destroys) private capital and shortages result. An oversupply of production (e.g. China), does not mean necessary production, because mis-allocation due to too low interest rates (negative real rate) mean capital is allocated to the wrong production (a lunacy beggar-thy-neighbor race to grab world's export marketshare at negative real profit margins, even if nominal profits are positive). Inflation and/or rationing creeps upwards, until eventually sheeople wakeup and stampede to buy gold+silver and drive the sovereign bonds (and fiat currencies) to very low value relative to gold+silver, i.e. the price of gold+silver go very high. This is a Sinclair currency event known as hyper-inflation. Although not yet in the hyper-inflation (sheeople stampede) stage, this trend is already underway-- the ratio of gold to sovereign bonds bottomed in 1998 and turned upwards since 2001:

https://stockcharts.com/h-sc/ui?s=$GOLD:$USB

3) #2 is a defacto high interest rate for the private sector, because even though the govt is providing a low (negative real) interest rate to itself, an increasing portion of the private sector can't avail of these low rates and in some cases can't even get a loan (i.e. infinity interest rate). Escalating credit card rates are another example. As we push to hyper-inflation, defacto interest rates will go skyhigh (if not to infinity, meaning credit not offered) for the private sector, because no one wants to loan money during hyper-inflation (not even offer net 30 terms for wholesale), while the public sector can continue to print fiat to buy its own debt at low interest rates, causing fiat to lose more value relative gold+silver (gold+silver price to go up and up). The stampede away from this fiat deathstar to gold+silver, is hyper-inflation. Analysts are fooled by the low sovereign bonds rates, and they need to be focusing on the reality that private sector interest rates are skyrocketing.

4) #3 is armageddon, because the modern economy can not function without debt. The hyper-inflation is a market driven mark-to-market gauntlet, that will reveal that most of the private sector has a negative networth. Since the hyper-inflation will inflate away the value of the debts, the networth of the private sector will not be negative, but rather near 0. However, money is not capital, and so much human potential, aka capital, will have been destroyed (bad investments, wasted time, old age, misdirected education, etc), that there will be negative capital balance for the private sector. Hyper-inflation is a reset of the economy in favor of the banksters:

https://www.silverbearcafe.com/private/01.10/thinklikeabanker.html

5) However, there is a group of elite (the leaders of the banksters wolfpack) who control the majority of the world's gold, and they are above the law and do not pay taxes, because they print our money and they make our laws. They were adding to their enormous historical gold hoard at the bottom in price, when they ordered the Central Bank to sell and lease it. I am not referring to the people we see on TV, but the untouchables such as Rockefellers and Rothschilds, who are at the highest levels. Note I am not making a specific allegation against any person or family, just using those names since many people associate them with the inner elite circle. Rothschild wrote, "he who owns the gold, makes the rules". I will add to that, "he who owns the most gold, doesn't pay taxes, because he makes the rules". Rothschild also purportedly wrote, "let me print a nation's currency, and I care not who makes her laws".

Their plan is obvious, because you can safely assume they were not allowing us to buy gold+silver without a plan to prevent us from competing with them at the end game. When the world is wallowing in shortages and starvation due to #4, the elite will bring out a new gold-backed currency. Meaning this new currency will be redeemable for a fixed amount gold, and it will be a digital currency, with each transaction tracked by strict tax paper identification numbers. This new currency will be a great relief to the armageddon, because it will enable the private sector to make loans again. This is because the interest rate for a gold-backed currency must, by free market definition, be real positive (after inflation, since gold is the regulator of real interest rates as I explained previously).

In other words, only a circulating gold currency can arrest the hyper-inflation and finally retire the debt. This will start to bring the interest rates down from their very high (nearly infinity) levels, but it won't instantly improve the networth of the private sector. Thus taxes will be excrutiatingly high. Those of us holding gold+silver, will have huge capital gains from the former hyper-inflation, and we will have no way to avoid paying those taxes in order to get some of this new currency, because the new currency will require proof of the price paid for the gold (otherwise full value will be accessed as is the law for capital gains). This new currency will effortlessly destroy the black (barter) market. Let me explain why. The new currency bonds will be offering very high real, after tax interest rates, and these gains (say 20+% per year, if not much much higher) will be accrued in redeemable to gold! So it will be preferable to hold the currency bonds, than to hold physical gold. So who would have an incentive to use the blackmarket in physical gold? The buyers (private sector-at-large) will have 0 networth, so they can only pay in the new currency which they have borrowed, so they can not participate in the black market. We gold+silver investors will want to trade for something we need, and that will be difficult because the sellers of products will want the new currency, because everyone will want to buy the very high yielding new currency bonds, and because without reportable sales, a business won't be able to get a loan to expand and grow. Gold+silver holders will be trapped, either they will pay the tax to convert to new currency, or sit on their gold forever (until the new world order fails and elite lose all their power and gold).

There are numerous nuances and possible misunderstandings of this thesis, which I have already debated. You can read that debate (even continue it with me if you want) at the following links, which should make it much more clear:

https://goldwetrust.up-with.com/precious-metals-f6/how-will-we-physicall...

https://goldwetrust.up-with.com/precious-metals-f6/how-will-we-physicall...

The thread at the links above contains a discussion about investments other than gold+silver that will excel in high inflation, also some potential advantages for silver over gold. Realize that it will be important to obtain these before everybody else realize. To sell gold+silver into the hyper-inflation solves nothing if you receive fiat in return. No matter how you slice it, the elite will end up extracting the taxes. Some hope they will escape taxation by nationality, but the new world currency system coming will unify taxation. The UBS incident and the G20 movements towards closing bank secrecy and tax shelters is just the beginning. Perhaps you may want to read my comments at bottom of the following article:

https://www.marketoracle.co.uk/Article20146.html

I am not arguing that we should not retain some physical gold+silver for small time bartering and for insurance against other possible outcomes and if necessary to physically escape some war of fascist environment. I am arguing that we should not have our entire networth in physical metals and those hoarding metals hoping to become super-rich are in the words of a Treasury official, "going to have their arms burned up to their armpits". I am not giving tax advice, nor am I advocating breaking the law, consult your own professional advisor for tax and legal advice.