Jim Rickards in his latest book, “The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis,” predicts in the coming crisis the banking system will be frozen by banking authorities until the crisis is over.

The crisis, however, will be unlike any other because the banking system can’t be fixed. Today, the bankers’ edifice of credit and debt is beyond repair; and because the crisis will be so extreme, the government’s response will be even more extreme than during the Great Depression when banks were closed, triggered by a run on gold. 

…the New York Reserve Bank’s gold reserves had fallen below the legal limit. Reserve Banks were required to maintain gold reserves equal to 40% of the paper currency they issued, but foreign and domestic holders of US currency were rapidly losing faith in paper money and were redeeming dollars at an alarming rate.

…on Monday, March 6 [1933], President Roosevelt issued proclamation 2039 ordering the suspension of all banking transactions..The terms of the presidential proclamation specified that “no such banking institution or branch shall pay out, export, earmark, or permit the withdrawal or transfer in any manner or by any device whatsoever, of any gold or silver coin or bullion or currency or take any other action which might facilitate the hoarding thereof; nor shall any such banking institution or branch pay out deposits, make loans or discounts, deal in foreign exchange, transfer credits from the United States to any place abroad, or transact any other banking business whatsoever.”…For an entire week, Americans would have no access to banks or banking services. They could not withdraw or transfer their money, nor could they make deposits… - Robert Jabaily?, Bank Holiday of 1933, Federal Reserve Bank of Boston, November 22, 2013

Today, Jim Rickards recommends Americans keep gold and silver and other hard assets outside the banking system because all “digital assets”, e.g. stocks, bonds, money market funds, etc.” will be subject to a banking freeze in the coming crisis.

Rickards also recommends that 10% of assets should be put in physical gold or silver to protect against the coming attempt by governments to inflate away unpayable levels of sovereign debt, the cause of the Weimer hyperinflation in the 1920s.

The next crisis will be a game changer. It’s not merely the end of the bankers’ ponzi-scheme of credit and debt, it’s a paradigm shift of historic proportions; and when the crisis is over, nothing will be as before, including humanity.

To survive a transformative crisis, institutions, nations, and individuals must all change.
Those who do, will. Those who don’t, won’t.

The Endgame, Gold and Goldman Sachs

In the endgame, the greater the systemic distress, the lower the price of gold.

In the bankers’ endgame, to disguise increasing levels of systemic stress, bankers force the price of gold lower to dissuade investors from fleeing risky paper assets for the safety of gold. When Europe’s sovereign debt crisis was spiraling out of control, the bankers manipulated gold’s then rapidly rising price from $1920 (September 3, 2011) down to $1160 (December 31, 2016). Today, the price of gold is still falling indicating monetary and systemic stress is still rising.

We expect that gold prices will continue to trend lower over the coming five years and introduce our long-term gold price of $1,200/oz from 2018 forward. -Goldman Sachs, January 2013

Like a serial killer who cannot help but give clues to his next crime, the accuracy of Goldman Sachs’ prediction is due not to prescient analytical insight but to its manipulation of the gold price; and while Goldman Sachs is a principal in the bankers’ ongoing manipulation, plans don’t always go as planned, especially in the endgame

Goldman Sachs manipulates gold through its commodities subsidiary, J. Aron & Co. J. Aron’s role was noted by Swiss banker Ferdinand Lips in his book, Gold Wars. Lips was a co-founder and former managing director of Rothschild Bank, Zurich.

On February 6, 1996 I visited J. Aron & Co, a well-established bullion firm in London…The conclusion drawn was..central banks were controlling the [gold] price…I realized that..J. Aron & Co...were the people who actually advised the central banks…and so I found out..who had the biggest interest in keeping the gold price down..It was not the central banks – it was the bullion banks. - Ferdinand Lips, Gold Wars, 2002

Rolling Stone writer, Matt Taibbi, in The Great American Bubble Machine, wrote, J. Aron & Co,”a Goldman-owned commodities-trading subsidiary received an exemption from the CFTC in 1991” to speculate in commodities it did not possess, allowing J. Aron to short gold it didn’t have and forward sell it at a below-market price, driving the price of gold lower.

One of the interesting things about J. Aron, which I’m sure attracted it to Goldman Sachs, is that they have a policy of not taking positions in commodities, preferring to act as merchant bankers and brokers [see Ferdinand Lip’s above quote]. Thus, Goldman Sachs need not worry about sudden surprises. - Thomas Russo, Wall Street lawyer, quoted in New York Times, October 30, 1981?

Since Trump’s election, the price of gold has fallen and bank stocks have risen, i.e. Goldman Sachs’ stock price is up 33% and gold is down 12%. Expect this trend to continue until the next banker induced crisis shakes gold loose from the bankers’ tight grip.

Goldman Sachs’ storied run at the table of luck about to end. More than any other bank, Goldman Sachs has profited from the bubbles that have plagued America since the 1920s; and, according to Matt Taibbi, Goldman Sachs is not only a beneficiary of such bubbles but their architect, enriching itself as well when they collapse, see  The Great American Bubble Machine.

Goldman positions itself in the middle of a speculative bubble, selling investments they know are crap. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage. Finally, when it all goes bust, leaving millions of ordinary citizens broke and starving, they begin the entire process over again, riding in to rescue us all by lending us back our own money at interest, selling themselves as men above greed, just a bunch of really smart guys keeping the wheels greased. They've been pulling this same stunt over and over since the 1920s — and now they're preparing to do it again, creating what may be the biggest and most audacious bubble yet. - Matt Taibbi, The Great American Bubble Machine, Rolling Stone Magazine, April 5, 2010

In 2006 and 2007, Goldman Sachs group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it also was secretly betting that a sharp drop in US housing prices would send the value of those securities plummeting.

http://www.mcclatchydc.com/news/politics-government/article24561376.html

That Goldman Sachs bankers are members of Donald Trump’s inner circle is a warning sign that another banker induced crisis is coming. That it will come with Goldman Sachs sitting at the head of the table is somehow appropriate. Goldman Sachs needed $10 billion in outside loans to survive the catastrophic 2008 crisis. Next time, God willing, Goldman Sachs won’t survive.

2017 – 2027: A Hard Rain’s A-Gonna Fall, my youtube video, explains why the next ten years will be both difficult and significant, see https://www.youtube.com/watch?v=nE1Fr1KszTE. In the next decade, America’s destiny will be determined by our choices. Right now, it doesn’t look good.

Buy gold, buy silver, have faith.

Darryl Robert Schoon writes and lectures on the causes and significance of the economic collapse. His book, Time of the Vulture: How to Survive the Crisis and Prosper in the Process predicted the collapse and the following severe downturn. He graduated from UC Davis (1966) in political science with a focus on East Asia. His immersion in the 1960’s subculture in the Haight-Ashbury radically altered his outlook contributing to the unique point-of-view through which he views the collapse of the present economic system. He has lectured in Europe, Australia and the US and has written five books. Visit his website at www.drschoon.com. You can reach Darryl at: [email protected].

 

 

www.drschoon.com