Mr. President, If We Don't Have Gold, We Don't Have a Country / Commodities / Gold and Silver 2018
“Passivityis fatal to us. Our goal is to make the enemy passive. … Communism is not
love.Communism is a hammer which we use to crush the enemy.” Mao Tse-tung,
proclaimingthe founding of the People’s Republic of China, 1949
Circumstantial evidence is mounting highthat there is something seriously wrong with the amount of gold reportedlyowned by the United States government, or more precisely, the American people.
After nearly two generations of beingbrainwashed into believing that gold is a meaningless relic, western citizenshave lost all concept of gold’s crucial monetary importance. If it turns outthat the United States does not, in fact, possess and own the gold it claimsto, the monetary, fiscal, economic, and humanitarian fallout will beunprecedented in its destructiveness. Unfortunately, the people have no ideawhat is at stake.
The largest corporation in the world, byfar, is the United States government. No other corporation has anything evenclose to its $3.4 trillion in annual revenues, and $4.4 trillion in annualexpenses. And no other corporation has ever suffered multiple annual lossesexceeding $1 trillion dollars, nor could it have, as such losses would havefinancially annihilated it. To be able to print money at will and withoutlimit, as USG, Inc. can do, has blinded it to the powerful beast calledConsequences that is slowly and methodically hunting it down.
USG, Inc. employs thousands of accountants,many of whom work at the Congressional Budget Office. The CBO prepares detailedbudgets, one of which looks forward thirty years, and then extrapolates thenumeric trends for an additional forty-five years, for a total forward horizonof 75 years. The 2015 report examines USG, Inc.’s projected performance untilthe year 2090. According to that report, not only will USG, Inc. lose money everysingle year for the next 75 years, the losses will actually accelerate eachyear and total more than $300 trillion. In 2047 alone, the deficit is estimatedto be $5.3 trillion, on a cash accounting basis. On an accrual accountingbasis, it will be far worse, if USG, Inc. even makes it to that point in itscurrent state, something we find it difficult to envision. It is arithmeticallyimpossible for the dollar to avoid destruction in such a scenario.
It should be no surprise that USG, Inc.’sfinances are such a disaster, because for the past generation and longer, theCEOs of USG, Inc. have never in their lives held real jobs in the productiveeconomy, other than GW Bush’s brief stints as a member of an oil and then abaseball investor group, which is not the kind of real job we mean. Instead,these CEOs have all been professional politicians, who by definition do notcontribute to the real economy, but rather, feed upon it.
This pattern was about to repeat itself in2016, with the Deep State’s planned installation of Hillary Clinton into theCEO role at USG, Inc. Clinton, too, has never in her life had a real job in theproductive economy, and has precisely zero experience managing anything evenbeginning to resemble a massive corporation with millions of employees andprojected $1+ trillion, accelerating annual losses extending as far as eyes cansee. This is exactly what the Deep State wanted: a corrupt, financiallyclueless, ideological figurehead, who would be oblivious as they ramped up thelooting of USG, Inc. to a new level of rapaciousness while she was busyhectoring the nation’s producers and taxpayers about their deplorable selves.It is this looting that is the precise reason why USG, Inc. is now drowning inlosses and debt, and is strategically paralyzed.
While anyone with any common sense wouldimmediately understand that it would be ridiculous to expect that someone withzero education, training or experience in engineering could oversee the designof a spacecraft capable of landing on Mars, or that someone with zero medicaleducation, training or experience could successfully conduct brain surgery, forsome unfathomable reason, people think that someone with zero businesseducation, training or experience can successfully manage the world’s largestcorporation. USG, Inc.’s catastrophic financial results demonstrate theregrettable stupidity of that thought.
We previously termed the current UnitedStates operating system as one of “crony communism,” whereby the cronies havefree rein to steal the nation’s current and retained earnings (the privatewealth), while the people are progressively immiserated in communistichelplessness and squalor. The election of HRC would have finalized the cronycommunist revolution that Obama unleashed with all his might.
During the campaign, Trump claimed that the2016 election provided the American people their “last chance” to turn thenation around. The key word was “chance;” he offered no guarantees, because heknew that the situation hung on a thread. In an upset, Trump won, and for thefirst time in decades, an actual businessman is now the CEO of the world’slargest corporation. Imagine that. Unfortunately, he inherited a situation sofractured and poisoned fiscally, monetarily, politically and societally thathis turnaround task is virtually impossible, no matter how genuine his effortsmight be.
Whether or not one agrees with Trump’spolicies or style, he is now talking to the American people and the world aboutbusiness topics that previous, politician USG, Inc. CEOs totally avoided, giventheir desire and incentive to preserve the status quo: the astronomical tradedeficit; the need to bring back offshored jobs; the critical importance ofreviving manufacturing; the staggering national debt; NATO’s getting a freedefense ride at U.S. taxpayers’ expense; the need to slash strangulatingregulations; skewed, unfair trade deals; the urgent need for GDP growth; theuntenable condition of the nation’s infrastructure; the need to get massiveillegal immigration, which comes at an exorbitant cost to taxpayers, undercontrol; and all the rest.
Beyond those issues, Trump’s most importantjob responsibility is to restore the American spirit. Under Obama’s cronycommunist revolution, euphemized as his so-called “fundamental transformationof America,” a fraud he dared not call by its true name given that it was suchan overt and pernicious attack on everything the vast majority of the people ofthis nation stand for, believe in and want, the citizens started to do, indroves, what they always do when subjected to totalitarian control: check outand shut down.
GDP and retail sales stagnated, and theeconomy progressively ground down. Stores closed and business owners gave up.And by the millions, the people retreated into the dead-end dependency ofwelfare, Food Stamps and Medicaid, while homelessness, tent city andunder-bridge community numbers skyrocketed. Not coincidentally, opioidaddiction, the ultimate surrender to despair and suicide, became a nationalepidemic. Which is exactly what the crony communist profiteers wanted: anincreasingly helpless, hopeless, addicted and compliant populace that could becontrolled by the actual “crumbs,” Ms. Pelosi, of subsistence government pigeonfeed scattered upon the ground for the citizens to peck at.
As the Dutch thinker, Ronald Bernard, soincisively realized: “All the misery in the world is a business plan.”
Trump has said thathis proposed tariffs on steel and aluminum are more than a matter offinancials; they are also a matter of national security, because “if you don’thave steel, you don’t have a country.” This is thematically identical to thestatement he has repeatedly made about illegal immigration: “If you don’t haveborders, you don’t have a country.” Thisnotion of “country” is vital, and particularly so when it comes to a nation’smonetary reserves. To steel and borders, we would add that, "if don't have gold, youdon't have country."
Mr. Trump is knowledgeable about gold. Infact, on January 29, 2016, he sealed a deal with Apmex, one of the nation’slargest gold dealers, for a 10 year lease of the 50th floor of “TheTrump Building” located at 40 Wall Street in New York City. Significantly, atthe signing ceremony, Apmex CEO Michael Haynes paid Mr. Trump the $200,000lease deposit in gold bars.
In a statement, Mr. Trump said: “It’s a sadday when a large property owner starts accepting gold instead of the dollar.The economy is bad, and Obama’s not protecting the dollar at all. … If I dothis, other people are going to start doing it, and maybe we’ll see somechanges.”
Later, Trump’s press office amplified hisstatement by saying that “Mr. Trump has been bullish on gold due to hisconcerns about the value of the dollar.”
These statements demonstrate that Mr. Trumphas more than a casual understanding of gold.
It is well-known that China, Russia andTurkey, among many other smaller nations, are steadily, and in the case ofChina, massively adding to their gold reserves. In fact, the governments ofChina and Turkey publicly encourage their citizens to buy gold, while Russialeads by example with its steady and well-publicized sovereign purchases. Goldis important to these nations for reasons that are well thought-out,forward-thinking and strategic.
On August 21, 2017, Treasury SecretaryMnuchin breezed into Kentucky for a visit. That morning, he spoke to members ofthe Louisville Chamber of Commerce, and announced, with no advance warning tothe press, that after his speech, he was headed to the Fort Knox Gold BullionDepository to check things out. Laughingly, he said to the audience, “I assumethe gold is still there. It would be quite a movie if we walked in and therewas no gold.”
After a short visit and cursory inspection,during which only one of the numerous Fort Knox lockers said to hold theAmerican people’s gold was opened and eyeballed, and a few bars were handled,”Mnuchin concluded his visit and then tweeted to America and the world, “Gladgold is safe.” The insouciance of his tweet was stunning.
The supposed U.S. gold hoard was lastaudited in 1953, sixty-five years ago. The nation’s debt at that time was $266billion, inflation adjusted. Today, it is nearly $21 trillion, or seventy-nine times greater. In 1953, thenation owned 20,000 tonnes of gold, an amount that plunged to 8,133 tonnes by1974 [at least according to the numbers reported by the Fed]. From 1974 untilnow, the hoard has supposedly remained unchanged at 8,133 tonnes, despite thefact that the country’s fiscal situation has disintegrated with, in addition tothe rapidly approaching $21 trillion in debt, more than $180 trillion infederal unfunded contingent liabilities; additional trillions in unfundedcorporate and municipal, county and state government pensions; and annualtrillion dollar plus deficits on a hockey stick trajectory projected for thenext 75 years.
And yet, we are asked to believe thatdespite the fact that 11,867 tonnes of gold were sold and shipped between 1953and 1974, generally strong economic years for the United States, not one ouncehas been sold in the 44 year period from 1974 until now. Not one ounce has beenused, for example, to guarantee China, Japan and other sovereign nations’multi-trillion dollar investments in U.S. Treasury securities; not one ouncehas been used to even fractionally settle the nation’s massive, persistent,multi-trillion dollar trade deficit that now measures $800+ billion per year;not one ounce has been used to sway foreign politicians who consistently andcuriously pursue an American-dictated agenda at odds with their own nationalinterests; and that not one ounce hasbeen required to facilitate the largest national bailout in history, in thewake of the Great Financial Crisis. In fact, not one ounce has been needed foranything, despite the fact that USG, Inc.’s financial fortunes have collapsedsince 1974. While we suppose that anything is possible, this does not appearplausible.
Mr. Trump was rightfully excited when AppleComputer announced a multi-year $350 billion investment in its U.S. facilitiesand operations. He has been similarly pleased by far smaller U.S. investmentcommitments made by other corporations. To him, every investment in America isimportant, no matter how big or small, and rightly so, as each has thepotential to create jobs and needed tax revenues.
USG, Inc. is said to own 261.5 million ounces(8,133 tonnes) of gold. Mr. Trump could increase the price of gold by at least$1,000.00 per ounce in 10 seconds if he simply announced that USG, Inc. believesin gold, and that, similarly to Russia, China, Turkey and numerous othernations, plans to buy it on a regular basis. He could boost the price even moreif he simultaneously announced that USG, Inc. would no longer tolerate theillegal rigging of gold’s price by the Wall Street profiteers and swindlers whohave corrupted and criminalized the gold market for the past 40 years.
As the supposed largest sovereign holder ofgold, by far, why on earth would USG, Inc. not support its price, when it wouldso obviously be in its direct financial interests to do so? If gold’s priceincreased by $1,000 per ounce, it would result in a $261.5 billioninstantaneous windfall for USG, Inc. and the American citizen shareholders whosupposedly own it. This would come at no cost whatsoever to USG, Inc. or to theshareholders, other than the trivial expense of setting up the pressconference. And there would be no reason for the dollar to decline simplybecause USG, Inc. announced that as one of its many investment initiatives,from education to infrastructure to armaments, it was also going to put moneyinto gold, in the expectation of making a profit from it. Just has China hasbeen doing for the past twenty years, with great financial success.
$261.5 billion in profits, in 10 seconds,would be many times greater than what USG, Inc. will realize from AppleComputer’s multi-year $350 billion investment, only a small portion of whichwill actually trickle down to the U.S. Treasury in the form of tax revenues. Soone would think there would be even more excitement about the opportunity ingold than in Apple’s planned spending. And we have not even included thesignificant capital gains tax revenue that would pour into USG, Inc. as acohort of current gold investors traded their positions at a large,tax-generating profit.
USG, Inc.’s persistent silence, aside fromthe frivolous comments and jokes made about gold by Mr. Mnuchin in Kentucky,make no common sense. But the situation is actually deeper, and worse.
As those who study the gold market now knowto be an undeniable, categorical fact, the price of gold has been illegallymanipulated for decades by Wall Street profiteers who appear to operate withthe full agreement and protection of USG, Inc. given that the manipulators arenever prosecuted and that their criminal rigging operations continue unabatedto this day.
Therefore, while foreign nations havedumped state-subsidized, underpriced steel, aluminum and other products intothe United States, which we are told is terrible for our nation, Wall Streetand its City of London collaborators have facilitated the dumping of tonnes ofillegally manipulated, underpriced western gold into numerous countriesincluding Russia, China and Turkey and many others. And yet western citizensare supposed to believe that the dumping of underpriced gold, includingsovereign gold, which is supposed to be the people’s gold, is somehow abrilliant gambit that should be allowed to continue. In other words, theequivalent of western government cargo planes dumping gold out of their holdsonto Moscow, Beijing, Ankara and other foreign capitals is presented as a smartthing for western nations to do, and of benefit to the increasinglyimpoverished, crony-communized citizens of the west, whose gold it is that isbeing dumped offshore.
Perhaps the same level of outrage that isexpressed about jobs offshoring should also be expressed about gold offshoring,whose financial damage will compound over time and end up costing the nationmore than the lost jobs.
It is virtually impossible to fathom theidiocy of this ongoing process of foreign gold dumping. On one hand, certainforeign nations promote their strategically important industries, such as steeland aluminum, by selling their products to the United States at low prices. Onthe other hand, the United States and its western counterparts facilitate thesale of their sole monetary bedrock, gold, to arch foreign competitors, for afraction of the gold’s true price given that it is illegally manipulated by thewestern financial elite for their own private profit. Even if a country, sayChina for example, loses some money selling low-priced steel to the UnitedStates, by using the revenue they generate from such sales to buy western goldat a fraction of its true price is a no-brainer deal the artistry of which evenTrump would have to admire. While they might lose a few pennies per pound onthe steel, they stand to earn thousands of dollars per ounce on the gold.
If USG, Inc. actually owned and possessed261.5 million ounces of gold, why would it allow Wall Street profiteers towantonly crush its price, and directly facilitate its outflow to and enrichmentof foreign countries with which it competes, and by which it is systematicallybeing destroyed in trade wars it has been losing for decades?
We can understand Clinton, Bush and Obamanot knowing the first thing about the strategic national importance of gold,and being clueless about how Wall Street has manipulated the gold market fornearly 40 years, at a profit to themselves that we have estimated exceeds $1+trillion dollars to date. As mentioned previously, none of those persons hasever had a real job in the productive economy, or understands the first thingabout competitive business tactics, capital markets, or national financialstrategy. But Trump is a businessman and, as we have shown, is knowledgeableabout gold. Yet while he has focused on far smaller opportunities than theenormous USG, Inc. balance sheet windfall he could engineer by simply talkingup the price of gold, he does the exact opposite: he allows its price trashingand foreign dumping to continue.
We can reach only one possible, logicalexplanation for this stance: USG, Inc. stays silent about gold, because itsgold is gone, either in large part, or altogether. And even if a portion of itis still housed at Fort Knox, West Point and Denver, it is pledged to and ownedby others. Therefore, if USG, Inc. were to talk up the price of gold, thefinancial benefits would accrue not to USG, Inc., but to its nationalcompetitors such as China, Russia, Turkey and the other governments that havestrategically purchased gold in large quantities at the bargain basement pricesextended to them by the private Wall Street and London City manipulators andprofiteers.
USG, Inc. will lose more than $1 trillionthis fiscal year. To fully offset that loss, the price of USG, Inc.’s reportedgold reserve would have to rise by $3,842.00 per ounce. Keep in mind, thisprice increase would be required to offset just one year of USG, Inc.’s deficit (aka, loss), namely that of FiscalYear 2018. This price increase would do absolutely nothing to neutralize orameliorate the roughly $20 trillion of pre-Fiscal Year 2018 debt, or theupcoming 75 years’ worth of $1+ trillion, steadily increasing annual deficits.The price of gold would have to increase by $4,000 and progressively more eachand every year from now on just to offset USG, Inc.’s upcoming annual losses,which are currently projected to extend into perpetuity.
The consequences of Gold Truth, such as itis but has not yet been revealed, are beyond sobering. If the Gold Truth isthat USG, Inc. does not possess and own the gold it has promised the world itdoes, every last shred of monetary, fiscal, financial, economic and moralauthority that USG, Inc. still possesses would be destroyed in a matter ofseconds. And it is impossible to see how the U.S. dollar could survive such arevelation without plummeting. A sudden, sharp dollar revaluation would wreakhavoc on the global monetary system, financial markets, and economy, and let usall hope it never happens, even though the epic mismanagement of USG, Inc.indicates that it could happen.
The consequences of fiat currencydestruction are currently on disturbing and heart-wrenching display inVenezuela. Many westerners look down their noses at Venezuela, as if it is somekind of freak, outlier nation whose suffering people are on a different planetfrom ours. But those people are not; they are here on earth, just like the restof us. And if we are correct about our concerns that the actual gold balancesat USG, Inc. are not what is being reported, the Venezuelization of the UnitedStates would become a likely, if not a guaranteed outcome.
President Trump isdoing his best to be the agent of change so desperately needed in the UnitedStates. At the same time, Truth is doingits best, as it always does, to be the same: an agent of revelation and change.History conclusively proves that Truth always wins inthe end. When people are ahead of a dangerous truth, they can work with andeven tame it by honoring and respecting its righteousness and force. But when adangerous truth is ahead of the people, and expresses itself on its terms andschedule, it almost always cloaks itself in fury, and metes out destruction tothose who have stood in its way and dishonored it.
We believe that it is vital for PresidentTrump to now get ahead of and tell the people the truth about USG, Inc.’s goldsituation, while there is still time to do so constructively. If the gold isgone, then as a national priority, USG, Inc. must figure out how to buy itback, at least to some degree. A monetary world in which China, Russia, Turkeyand other nations own gold, but the west does not would yield invinciblemonetary and financial superiority to the west’s competitors. If the gold isthere, then USG, Inc. should revel in and leverage the enormous fortune andfinancial opportunity it represents.
Mr. President, as someone who respects andsupports the work you are doing to try to turn thiscountry around, might I, with all due respect, paraphrase and echo your ownwords: “If we don’t have gold, we don’t have a country either.”
Stewart Dougherty is the creator ofInferential Analytics, a forecasting method that applies to events proprietary,time-tested principles of human instinct, desire and action. In his view,forecasting methods not fundamentally based upon principles of human action areunlikely to be reliable over time. He is a graduate of Tufts University (BA)and Harvard Business School (MBA). He developed expertise in strategic analysisand planning during a 35+ year business career, has traveled to and conductedresearch in over 25 countries and has refined Inferential Analytics into areliable predictive instrument over a period of 17+ years
Stewart Dougherty
Stewart Dougherty is the creator ofInferential Analytics, a forecasting method that applies to events proprietary,time-tested principles of human instinct, desire and action. In his view,forecasting methods not fundamentally based upon principles of human action areunlikely to be reliable over time. He is a graduate of Tufts University (BA)and Harvard Business School (MBA). He developed expertise in strategic analysisand planning during a 35+ year business career, has traveled to and conductedresearch in over 25 countries and has refined Inferential Analytics into areliable predictive instrument over a period of 16+ years.
© 2018 Copyright Stewart Dougherty - All Rights Reserved Disclaimer:
The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.