On an otherwise uneventful February day in 2009, Criss Angel walked on water…kind of. Millions watched this event dumbfounded even though Criss explained it was all an illusion. My youngest son bribed me into viewing this televised miracle with hot buttered popcorn but I must admit this illusion looked as real as the nose on your face. But even walking on water fails to compare to the monetary illusions soon to shift untold wealth into precious metal. Today I’ll do everything in my power to expose the greatest wealth transference on earth. Thanks for joining TPS (The Prospector Site).
A run to gold or silver is NOT a natural occurrence. It is a reactionary result derived from a separation between you and your wealth. Nothing will cause monetary panic faster than a separation of wealth. Below is a must read paragraph that truly describes my point better than I can depict.
Some walk around in a financially comfortable delusion about our current system (banking) even though we all realize that we will never payback our $16 trillion in national debt. You also have a banking system backing $7.4 trillion in insured deposits with $32 billion (that is, 0.43 percent). Yet in our current system the Fed is digitally inflating away our currency and limiting available banking options. Are we simply ignoring the too big to fail? Source: Budget 360.
Let me put the above information in proper light since this financial writer is spot on. If all depositors simultaneously demand physical proof of individual wealth the banking intuitions of America don’t have it. What banks do have is less than 1% of real tangible money deposits on hand. This means a $100,000 depositor is entitled to a whopping $430 withdrawal (thanks to today’s fractional reserve banking system).
We often describe an age of capital controls but few actually connect the dots back to themselves. The banking system in parts of Europe is under stifling capital controls. They cannot, and will not, allow depositors to withdrawal tangible currency because the money doesn’t exist. The banking world has replaced real currency with digits (now two degrees separated from gold for those still counting).
Now we both know that here in the U.S. Bernanke can print the 99.57% necessary to make up the difference between a bank’s cash on hand and digits; and is more than willing to do so. But this Criss Angel like magic comes with a price at least if you’re one of the millions storing wealth in today’s banking system.
Controlling the capital (wealth, cash, money, currency, asset, etc.) is an overgrown government’s dream. Capital control corrals the wealth of a society and then allows the money divvied out in only small portions according to the controlling party’s timing. At such a time, technically your wealth still exists; you just no longer have any control over it.
We only have to look at Cyprus as a perfect example of how the world’s depositors should expect to be treated in the very near future. Capital controls use captured wealth as a tool of taxation and sustainability. They don’t call it theft because the word theft sounds too much like stealing; hence the modern-day term haircut.
Picture your bank account as a car in a parking structure with the entrance and exit blocked by capital controls. Your car is still safely stored but you no longer have control over it. This means the controlling party can decide all red cars are needed to say physically block city hall; then removed no longer within owner’s control. All trucks are to be crushed and then used to stabilize nearby creek banks; then removed…..and then crushed, no longer within owner’s control.
Capitally controlling your wealth allows the powers to be to tumble and recycle your financial future through the taxation machine over and over again. It is now reported that Cyprus bank depositors will lose upwards of 40% from this haircut round. Who knows what the next recycling round will take from depositors as they irritatingly watch wealth dissipate without another option.
Physical silver or gold is the only world currency NOT SUBJECT TO TODAY’S RISK OF CAPITAL CONTROLS. I’ve mentioned before that we are beyond arguing the “should we or shouldn’t we” of physical precious metal. If you’re looking for a safe way to store wealth beyond the reach of capital controls I strongly advise each reader to look beyond the doubt; while this option still exists.
QUESTION: Today I read that Arizona is considering accepting silver and gold coins as legal tender. However the article stated that only coins minted by the government would qualify. Further, that since they would be considered legal tender, they couldn’t be taxed as property. So now I wonder about my silver rounds which I bought as a result of this site. Will I be able to sell them in the future and avoid taxes on any gain in their value? Also, is your book available yet in paper format? Thank you.
TPS Reply: Thank you for the comment and questions. I agree, it is exciting to see a handful of states pushing back by implementing a competing currency. Will Arizona follow Utah’s precious metal footsteps; it’s too soon to tell? Here is how I see this playing out for what’s worth.
A few readers have emailed with the same sort of legal tender questions so I would like to clear the air. Individual states could view silver and gold as legal tender and possibly exempt from state capital gains, but I have my doubts the IRS will view silver or gold with the same tax exempt status. I’m not a CPA but I would use due diligence, and the help of a good accountant, before assuming a tax avoidance.
Like I mentioned by direct email; I have no plans to sell my rounds in order to buy more government minted silver bullion. But then again I have no plans to sell or spend silver regardless. Rumors spread quickly and this only proves the volatility of today’s monetary world. Thanks again for the questions and good job keeping your ear to the ground.
As for the book, I’m seriously considering combining two digital books into one paper formatted book. This will give readers twice the bang for their buck. I’ll keep you posted.
QUESTION: It just seems unpatriotic to abandon the dollar for silver and gold. My family fought wars and spilled blood for this great country. I would like to believe the US dollar is strong enough to lead us out of this recession and into a thriving economy. Maybe I’m just old fashion?
TPS Reply: Thanks for the comment. Boy, where do I start. It is no coincidence most paper currencies appear patriotic, regardless the country issuing the fiat money. This purposely instills pride, patriotism, and generational confidence while central banks spur inflation taxation among her people. Inflation is the one tax virtually unavoidable for most.
Your family did not spill blood for the US dollar; most likely they fought for freedom. A country who willingly debases her currency is not promoting freedom, not by a long shot. I truly admire your patriotic passion but please don’t misinterpret a fiat dollar as this country’s foundation of freedom.
I realize it can be frightening to let go of something we’ve worked hard to amass. Frankly, this anxiety is what keeps most from the protectiveness of PMs. They just can’t get past the dollar’s vulnerability in our fiat implosive age. Please look past this misconception while an alternate currency is still available. Thanks again for the comment.
FED chief Ben Bernanke is the most powerful man on earth. For this reason alone we must pay close attention to the FED’s actions as they relate to your financial independence. Below is an intriguing short video of Bernanke responding to the likelihood of bank runs here in the United States.
In other words, as long as you ignore today’s banking volatility and don’t “lose confidence” or allow fear to become “contagious” the most powerful man on earth will not have to implement capital controls. I find it interesting how Bernanke rolls out the FDIC as a source of protection for depositors. The FDIC’s primary goal in not to insure your bank deposits, its primary goal is to protect banks from Cyprus type bank runs.
DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.