AN EXPLANATION OF THE FACTIONS  
 

[ DONATE TO RMN ] [ Archive Search Page ] [ RMN Reading Room ] [ CGI Media News Room ] [ SUBSCRIBE TO RMN ]

RMN is Reader Supported

Our Goal for
JAN 8 - FEB 5:
$2500

Powered by FundRazr

Click Widget
or Click Here to contribute.

Checks & Money Orders:

Raye Allan Smith
P.O. Box 95
Ashtabula, OH 44005


Users Online:
226

Who Founded RMNews?


Dewitt Jones' Video
"Celebrate What's Right
With The World"


"When the
Starships Fly!"

Listen at YouTube


The Theme for The Obergon Chronicles

Listen at YouTube


The Obergon Chronicles ebook


RUMOR MILL
NEWS RADIO


CGI ROOM
Common Ground
Independent Media


WHAT ARE
THE FACTIONS?


THE AMAZING
RAYELAN ALLAN


BIORHYTHMS

LOTTO PICKS

OTHER WAYS TO DONATE


CURRENT MOON




RUMOR MILL NEWS AGENTS WHO'VE BEEN INTERVIEWED ON RUMOR MILL NEWS RADIO

______________

NOVEMBER 2008

Kevin Courtois - Kcbjedi
______________

Dr Robin Falkov

______________

Melinda Pillsbury Hr1

Melinda Pillsbury Hr2

______________

Daneen Peterson

______________

Daneen Peterson

______________

Disclosure Hr1

Disclosure Hr2
______________

Scribe
______________

in_PHI_nitti
______________

Jasmine Hr1
Jasmine Hr2
______________

Tom Chittum Hr1
Tom Chittum Hr2
______________

Kevin Courtois
______________

Dr Syberlux
______________

Gary Larrabee Hr1
Gary Larrabee Hr2
______________

Kevin Courtois
______________

Pravdaseeker Hr1
Pravdaseeker Hr2
______________

DECEMBER 2008

Tom Chittum
______________

Crystal River
______________

Stewart Swerdlow Hr1
Stewart Swerdlow Hr2
______________

Janet Swerdlow Hr1
Janet Swerdlow Hr2
______________

Dr. Robin Falkov Hr1
Dr. Robin Falkov Hr2
Dr. Robin Falkov Hr3

JANUARY 2009 ______________

Patriotlad
______________

Patriotlad
______________

Crystal River
______________

Patriotlad
______________

Dr. Robin Falcov
______________

Patriotlad

FEBRUARY 2009

Find UFOs, The Apocalypse, New World Order, Political Analysis,
Alternative Health, Armageddon, Conspiracies, Prophecies, Spirituality,
Home Schooling, Home Mortgages and more, in:

Rumor Mill News Reading Room, Current Archive

The Eternal Relationship Between Gold And Global Crisis

Posted By: RumorMail
Date: Saturday, 9-Jan-2021 07:27:41
www.rumormill.news/140628

By Brandon Smith

Though it is often referred to by critics and elitist central bankers as a “barbaric relic”, there is no denying that gold is usually the go-to asset during times of crisis and uncertainty. And as much as they pretend to hate it, even the elites secretly stock the precious metal whenever the economy goes awry. In fact, you can almost predict when things will go bad simply by watching how much gold central banks around the globe stockpile in a particular year.

As noted in my last article, the banking establishment is often privy to impending disasters, usually because they directly participate in creating them. This is why they always seem to know when to prepare and hedge their assets to weather the storm. Gold is the hedge of choice because it is tangible, naturally rare, and cannot be artificially recreated or cloned. Governments and banks always seek to hoard gold when instability erupts because it not only shields their assets from decline, but it also shields their position of power.

In a world where the majority of the population is on the verge of poverty, those with an unbreakable economic position backed by hard assets tend to accumulate even more assets for pennies on the dollar, not to mention more political and social control. As the wealth gap grows wider, so does the power gap. It’s not that the elites have a personal use for all of these assets, they just don’t want YOU to have them.

In a world where the majority of the population is on the verge of poverty, those with an unbreakable economic position backed by hard assets tend to accumulate even more assets for pennies on the dollar, not to mention more political and social control. As the wealth gap grows wider, so does the power gap. It’s not that the elites have a personal use for all of these assets, they just don’t want YOU to have them.

Why? Because as hard assets and personal wealth are vacuumed up by the banks, they remove the concept of private property from the public consciousness, and thus, they destroy your independence. Pretty soon, the next generation has no idea what it means to own land, a home, commodities or precious metals. Eventually, they are living in a “shared economy” where they feel lucky just to have a pod apartment, Wi-Fi and close access to public transit. The idea of building a home of their own for their children and grandchildren is lost. They may not ever start a family because of this. They are beholden to the state for everything.

As mentioned, the central bank pattern of wealth protection and then wealth usurpation is evident in their moves to scoop up gold at the perfect time just before crisis. We can also see that in most cases, after the gold standard was slowly removed and regardless of the crisis, gold prices tend to spike. In other words, most crisis events show central bank gold reserves jumping just before they happen, and prices on gold rally dramatically in response.

For example, in 1913 (the initial birth year of the Federal Reserve), central banks in multiple nations bought up gold at an accelerated pace leading up to the Crash of 1914, World War I, and into the Spanish Flu epidemic of 1918-1920. The U.S. added around 650 tons of gold to its reserves in 1913, then another thousand tons from 1915 to 1920.

Because of the gold standard and the peg to the dollar, the price did not fluctuate much at this time, but central bank holdings did. The economic crisis was so bad that the New York stock exchange closed for four months straight from July to November 1914. No event before or since has caused such a shutdown of markets. Gold was the primary investment hedge to protect wealth, and gold exports were curbed.

The same thing happened again as the world entered into the Great Depression of the 1930s. The Federal Reserve and the Treasury added around 2,700 tons of gold from 1930 to 1935, and then DOUBLED their reserves from 9,000 tons to 19,000 tons from 1935 to the start of World War II in 1939. The price of gold jumped from $20 an ounce to $35 an ounce from 1932 to 1934, though, at this time Franklin Roosevelt restricted the private ownership of gold through Executive Order 6102. This “ban” was not to be lifted officially for four decades. However, this did not stop gold from being widely traded on the black market.

The next dramatic event in the world of gold versus international crisis was in 1962, when the Cuban Missile Crisis triggered record demand for gold on the London market. Central banks utilized price suppression through selling of reserves in a policy called “The Gold Pool”. You will find that this kind of price manipulation through selling is common when a price spike is not necessarily the idea of central banks. Such manipulation only works today as long as paper ETF markets and the physical markets remain coupled together. A large enough crisis has the power to break the paper to physical relationship, and physical markets then determine price as the rush to safety accelerates.

Free market pricing of precious metals tends to have a short life span as central banks reassert their control of the market. Collecting profits during these windows is essential, and having a sense of timing is key.

In 1968, The Gold Pool was ended just as the Vietnam War was becoming an international breaking point and the Hong Kong Flu pandemic swept through multiple countries, killing over 1 million people. The Hong Kong Flu had a death rate of only 0.5%; compare that to the “official” death rate of the coronavirus at 2.2% (which is likely much higher than China is admitting to). At this time, gold saw a jump in price of around 22% and a high volume of central bank gold trading. That said, from that moment moving forward, central bank reserves began to slowly decline.

This trend has suddenly reversed in the past decade.

During the recession and inflationary crisis of 1978-1980, gold skyrocketed again, jumping 29% in 1978, 120% in 1979, and 29% again in 1980. During the crash of 1987, gold jumped 24%.

Another gold rally struck from 2002 to 2003, just after the collapse of the Dot Com Bubble, rising over 40% as the U.S. went to war with both Afghanistan and Iraq. It was also around this time that central banks began amassing gold reserves once again, but primarily among eastern nations like China and Russia. This gold buying spree has only expanded in recent years, with banks buying more gold in 2018 than they have in over five decades.

The next major gold market rally, triggered from 2009 to 2012, is well remembered by most of us. Prices jumped around 70% total during the onset of the credit crash. This rally was thought to be thoroughly stifled by bank manipulation and many mainstream “experts” declared that gold would be dropping back well below $1,000 an ounce. In fact, these same experts have been predicting that gold would plunge below $1,000 every year for the past 7 years, and yet it has not.

Why? Again, because central banks are buying exponentially, and because the global economic system has been in a constant state of distress since the crash of 2008. Gold prices are not going to drop back to pre-crisis levels when our economy is perpetually unstable and none of the problems from 2008 have been fixed.

As the Federal Reserve began raising interest rates and cutting its balance sheet over the past couple of years, the mainstream economic media was certain that gold would plummet, but what they did not understand was the nature of gold during crisis. As the Fed tightened liquidity into economic weakness, volatility returned with a vengeance to markets, fundamentals like manufacturing and real GDP began to plummet, and like clockwork, gold began to rocket upwards again.

Gold rallied from $1,200 in September of 2018 to nearly $1,600 in the span of a year, and central banks are continuing to buy regardless of the price increases. They seem to know something that most of us only suspect…

With the historic trends displayed plainly here, it is easy to predict what will happen next. The coronavirus outbreak is about to be labeled an official pandemic. The Fed’s repo market stimulus has failed to quell liquidity issues within the U.S. banking system, U.S. corporate debt and consumer debt is at all-time highs, the UK has just left the European Union with a No Deal Brexit (as I predicted they would in March of last year), and the U.S. is initiating a troop buildup in the Middle East to surround Iran. Not since World War I have we seen so many crisis events happening simultaneously.

This article was originally published at Birch Gold Group

You can contact Brandon Smith at: brandon@alt-market.com


Read More



RMN is an RA production.

The only pay your RMN moderators receive
comes from ads.
Please consider putting RMN in
your ad blocker's whitelist.

Serving Truth and Freedom
Worldwide since 1996
 
Politically Incorrect News
Stranger than Fiction
Usually True!


Powered
by FundRazr
Click Widget
or Click Here to contribute.


Organic Sulfur 4 Health

^


AGENTS WEBPAGES

Provided free to RMN Agents

Organic Sulfur 4 Health

^


AGENTS WEBPAGES

Provided free to RMN Agents



[ DONATE TO RMN ] [ Archive Search Page ] [ RMN Reading Room ] [ CGI Media News Room ] [ SUBSCRIBE TO RMN ]

Rumor Mill News Reading Room, Current Archive is maintained by Forum Admin with WebBBS 5.12.

If you can't find what you're looking
for using our RMN search, try the Google or ixquick searches below:

Google
 
Web www.rumormillnews.com
www.bringemon.org

Ixquick
WebThis Site

AN EXPLANATION OF THE FACTIONS