What is a Person To Do?

Many things have been used as money down the years, I immediately think of gold, silver, coins of metal, paper money endorsed by the head of the realm whoever that was at the  time.

Scarcity= higher value but availability = lower value. OK That’s fine.

Next, the even more obvious: fractional similarity of smaller units as a swop for larger units, or fungibility =  a greater practicality of use as money. All moneys have it, bigger coins, smaller coins, cigarettes are divisional, so is booze via smaller bottles, or lower alcohol content.  2 x $5 note = 1 x $10 note. And maybe 20 bottles of beer =  1 bottle of whisky. OK! Got that and it’s obvious too! Quality counts.

Cigarettes and booze ...... hmmmm.

Upon deeper thought I add into the above a few more: foodstuffs, and fuels like gasoline during times of scarcity or prohibition. All of these have been monetized to some extend during scarcity and demand, and then demonetized again when the scarcity went away later.

Ah, prohibition! This is the polar opposite of state endorsement of paper. Prohibition makes scarcity which then gives extra value, and wartime rationing by the state definitely gave added monetary value to cigarettes, food, and booze.

But wait! If state sponsorship can make paper, a derivative of wood, into money (state monetizes wood!) and state prohibition can make alcoholic drink into money -  that seems to be contradictory! So this means that there is a process of money creation, or money acceptability,  that can be measured with a sliding scale. The extremes of state enforcement (pro or against) provide monetization. What is NOT monetized into money is that which the state does not really care that much about, all the boring middle ground stuff. We need to consider a sliding scale of the attitude of the state towards a certain thing to decide if the state is influencing a monetization of that thing.

So let us now look at this sliding monetary measure a bit more.

Here is one way to describe it as a mathematical equation:

  • State endorsement = higher value, eg paper made from wood = money.
  • State prohibition = even higher value!
  • Just so long as people want it, and demand it.

This simplistic equation allows for people rejecting paper money at times of hyperinflation.  They cease to demand it.  It also allows for deflation where money is scarce but goods are plentiful, and prices fall, or to put it another way, the money itself increases in value.

And it allows for something else, something a little darker and less spoken about. When the state bans ownership or sale of something in demand, It’s price goes up relative to the value of the state’s own paper money. The state by opposing availability of a popular thing, effectively creates a temporary monetization of that thing, which then competes with the state’s own money for value.

This is a feedback loop: The state bans, say, booze in the 1920s which then gets a higher value, and the state can’t tolerate that as booze then becomes a part of the institution of money. But the various individual institutions of money which comprise THE institution of money are intended to be controlled by the state. So if booze becomes an alternative currency (even by implication) then anti-booze measures  must be enforced by the state, which increases the scarcity of booze, and booze gets monetized even more. Just think of the price of illegal drugs. Now think of the budget allocated for their denial to people.

For the moment, I will ignore the legalization-taxation option, but it’s there sitting in the background all the while I discuss this.

So let’s look at some real life events:

Al Capone was making booze during prohibition, he got indicted for non payment of income tax which is a money related offense. Today he would be done for money laundering too.

Pablo Escobar was making narcotic drugs available on a large scale, he got taken down by the US Joint Special Operations Command, US Army Intelligence Support Activity (ISA), the Colombian Police, using Radio Triangulation  Surveillance technology and training supplied by France - a three state cooperation.

Ghaddafi looked into alternative money to the  US petro-dollar, he’s dead at the hands of multiple states.

Even in popular fiction there is a strange thread woven into fictional events. Take the Bond movies or books written by Ian Fleming, a retired naval intelligence officer turned journalist and author ... did you ever notice how many times the “bad guy” is dealing in an alternative currency, something usually state owned or controlled ...... gold, oil, caviar, satellites, and then the state representative Bond puts a stop to that? Good plots make good movies.

While  looking at privately held money: isn’t it interesting that the Rothschilds are Channel Islands and Cook Islands based and so forth, places where they don’t have a state trying to do a James Bond on their assets? Privately held wealth is closely connected to external asset safe storage, and domicile to keep the clawing grasp of greedy or desperate states away.

As a reminder:

From Executive Order 6260: Section 5. Holding of gold coin, gold bullion, and gold certificates. After thirty days from the date of this Order no person shall hold in his possession or retain any interest, legal or equitable, in any gold coin, gold bullion, or gold certificates situated in the United States and owned by any person subject to the jurisdiction of the United States, except under license therefor issued pursuant to this Executive Order; provided, however, that licenses shall not be required in order to hold in possession or retain an interest in gold coin, gold bullion, or gold certificates with respect to which a return need not be filed under Section 3 hereof.

The Secretary of the Treasury, subject to such further regulations as he may prescribe, shall issue licenses authorizing the holding of

(a) Gold coin, gold bullion, and gold certificates

So here is the thing, the state makes a lot of money by limiting supply of ordinary items, licensing possession and charging for the license, in other words being a gate keeper which charges tolls on a massive scale. But when the tolls become onerous, the little people get ideas to go around “the gate” and some of the more aggressive of the  people actually set up the means to do it, and of course charge their own toll. Soon those individuals become very, very wealthy. Most end up outside the law, but a few get the law changed to remain safe. A little closer examination reveals that most are not only wealthy, and using external locations to preserve their wealth, but a large part of them are family relatives of politicians running the states.  Read and draw your own conclusions: http://www.icij.org/  and the offshore wealth in particular: http://www.icij.org/offshore

Remember that western governments are buying hacked or illegally obtained information to “crack” tax havens and go after that privately held wealth. NWO implications are clear - there is a counter NWO money grab movement lead by the states themselves! But that is not my main subject. I prefer for this discussion to focus on the little guy, the people and how this affects them.

So we can look at times during history of prohibition, or rationing, to find time of state currency competition. The onerous actions of the state provoked the reaction of the people. The ringleaders are hounded down by the  state, who moderate their oppressive ways, common sense returns for another 15 – 30 years  and it all happens again. This is the business cycle but a master version of it - larger in size, duration, and socio-economic consequences.

So for convenience I propose we are in a government money abuse period, a stagflation where interest rates are pulled down to virtually zero, and the  bond markets are making the first signs of revolting and fighting back. Naturally the states who have borrowed all that money would like to keep paying zero interest for as long as possible, and they want to run inflation as high as possible at the same time. Stagflation is great for the borrower who prints the money.

This also happened during the 1970s period. And the black economy grew as people used cash to avoid paying onerous taxation. This was seen by government and they are taking measures against it happening again. For the anit-state, in the 1920s gangsters used booze, at other times silver was the private currency within the states, borders. So was gold at other times.

All of these competitor currencies were opposed by the state in favour of the one it created itself (cost free), but cash was the exception, because cash was necessary for business. It was tough for the state that cash was also anonymous and could be used for black economy business too. So here we are in another depression, with stagflation, and the governments are moving not only against the old wealth, they are moving against the people, and their cash. In TFMR last week Ivars said it beautifully: “Cash is the new gold”.

Think about that. The use of cash will be treated the same as the use of illicit booze, drugs, gold, silver, you name it. It is coming.  Alternatives to cash are here, and (apart from Bitcoin so far) they are NOT anonymous. Now look at the resources being allocated to deal with this.

If you consider yourself to be a law abiding citizen, you are going to be presented with a choice, rather like the US citizens were when they were told to “sell” their gold to the US government. That is use cash and break the law, or be an honest citizen and use plastic/digital fully documented money and pay the  fee/tax to the boss.

So I posit that by looking at history we can see how this is planned, unless something changes. The western governments are hacking at tax haven security. EU countries are limiting the size of transaction for which cash may be legally used. It’s happening.  Spain has a €1500 cash transaction limit, Italy has a €1000 cash transaction limit. The US Bank Secrecy Act requires declaration of excess $10,000 transactions.

People can illegally use cash or alternative currency and pay the price when caught, or stay inside the system. We can look at the number of people who followed the counter culture moves in the past. The percentage of rebels will be the same today, or maybe lower as a percentage of the population, because people are the same, but the government surveillance is better/worse depending on who you are.

Cash is the new gold. Well government printed ash can be devalued, and it can be changed in design, and extra zeros can be added to make it worthless. So commodity based assets like gold or silver would not suffer this process of devaluation, they would increase in value instead. But they have to be converted back to government money, or cash and the gatekeeper stands there with his capital gains tax or VAT tax hand extended. So cash will get the treatment that gold and silver got due to its anonymity. The state efforts to crack that anonymity are where the rubber meets the road at the moment.

So are we prepared to be reviled as gold hoarders were in the 1930s? Can we take the heat as cigarette or alcohol smugglers were eg during the WWII period? What is our attitude to those within the drug counter culture world? Because in the not so far off future we may be exposed to the same public media campaign by the same sources, as illicit drug suppliers are today.

Try to imagine this future: ... you have a stack of silver which you laboured to buy in earlier years when silver could be got, and it's yours bought and paid for, and looked after, But the TV mainstream media is full of pictures of dying children who desperately need medical silver which hateful greedy hoarders are sitting on. What are “the average folks” going to think about you. In this new world private ownership of silver is banned, and in that future world its worth, oh, let's say about the same per ounce as heroin is worth today, but with all of the implications that owning heroin today carries. You are involved in black marketing and outside the law. The penalties if you are caught would affect your family and friends as well as yourself.

It's not a pretty picture for an honest person to imagine that. "They" will exploit that too.

What is an independent minded person to do?

Argentus Maximus

.

I would like to express my thanks to Ivars and Foscotanner for inspiration underlying this discussion. AM

The author posts daily commentary on the gold and silver markets in the TFMR forum: The Setup For The Big Trade. More information about the author can be found here: RhythmNPrice

Sources: 

http://www.icij.org/ and also http://www.icij.org/offshore

http://fraser.stlouisfed.org/docs/historical/brookings/17628_03_0003.pdf

http://www.presidency.ucsb.edu/ws/index.php?pid=14509

http://www.iep.ru/en/comments/restricting-cash-flow-will-reduce-the-shadow-sector-of-the-economy.html

http://www.bloomberg.com/news/2012-04-11/spain-to-limit-cash-transactions-to-fight-tax-fraud-correct-.html

http://www.tax-news.com/news/Italy_Confirms_Anti_Evasion_Cash_Transaction_Limit____53545.html

http://epetitions.direct.gov.uk/petitions/22399

http://en.wikipedia.org/wiki/Bank_Secrecy_Act

98 Comments

Dr Jerome's picture

Somebody has to do it

I suppose I should read the article now...

     five minutes later...

Just yesterday I was struck by simply sliding a stupid plastic card through a machine and they let me leave the store with a cart full of food. There is nothing intrinsically valuable in that plastic, but it really is a window into my stored labor that my employer has quantified, actualized and placed in the ether of my bank account. 

I keep a store of cash at home --just a few K--but wonder if my home were over searched by jack-booted thugs if I would be detained on suspicion of something they don't like. I see it coming too, the day when cash will be illegal because it cannot be micro-managed the way my bank account can. 

"Sir, why do you have all this money here? Nobody needs this much at home."

"Well officer, I don't trust the banking system."

"Sir, we are detaining you on suspicion of affiliation with anti-government elements."

"What? Its just a pile of US currency!"

Sir, this tool enables terrorists to plot against President for life Obama--god be praised--and therefore it has been classified as a WMD." 

"Ow... Hey, let go of my (audio file is garbled)"

          End of transcript

TomMack's picture

tooth (2nd)

tooth?.... not as valuable as in the good old days.....sort of like a QE 2  now that there are mutli firsts.   now to read what i am second for.....

DayStar's picture

Thrud

Here's a diluted third.

Well, Tom, you will just have to be nicer to the Twoth Fairy, and maybe she will leave you a bigger tip next time. smiley

Argentius, as a common person, I have a responsibility to God and my family, and if the government purposely removes the means of fulfilling those responsibilities, my higher responsibility trumps my responsibility to be an obedient citizen.  Their objective is to see me and mine dead.  My objective is to stay alive and to provide as much as I am able for those that depend on me.  

DayStar

gold slut's picture

Outlaw cash

Excellent article AM.  I have wondered about the end of cash for some time now.  It is already discriminated against, for example when you get a discount in price if you buy on-line.

I can feel it in the wind but hope it happens after my time.

Oh yes, and FOORFF!

daveyboy's picture

Given how government has

Given how government has effectively become a cog of corporations, I think it is quite naive of you to equate the ability to spy and hack into bank accounts with a counter force to the NWO. Granted, they may choose at some point to burn a few level minions but the enforcement of tax havens will be as it always has been, extremely selectivive.

sierra skier's picture

We can only do the best we can

Understanding value. The government is afraid of things over which it has little or no control. By nature the government wishes to be in control and take their tariff so they can maintain and increase their authority.

When we exchange our labor and efforts to create value to exchange for the things we need to live and government comes along and declares that stored value to be illegal they have overstepped their bounds of reason. Our leaders continually overstep their limits and expect the folks to step up and cover for their excesses.

Yes the powers that be do wish to have complete control over the exchange of value so they con continually grow and direct the folks as they wish. In the US the government has so overstepped its constitutionally directed limits as to be completely illegal with regards to the majority of its actions while ignoring its mandated responsibilities.

I am a hard working solid citizen who has taken the steps to store wealth and value for my future retirement comfort, yet I am more than likely on the government terrorist lists because of my beliefs in the constitution, religon, self responsibility and the desire to do what is ethically right. Apparently trying to do what is right is considered wrong by those in charge to the point where we become threats to the illegal state.

I will continue to do what I believe I need to do to support and protect myself, family and loved ones while extending the value of my previous labor into the future as best I can. I prefer to do this without the government telling me I am breaking their false and illegal laws.

¤'s picture

Digital Valuation

At some point, as a means of total monetary/capital control, everyone will be put on a electronic debit (and credit) card system where all transactions, earnings, expenditures and direct (instantaneous) taxation will occur that provide almost real time revenue's being directed back to the govt coffers.

Bartering will always be an available alternative method of transactions between citizens privately when they see it as necessary and efficient except that the size of the transactions might be hard to hide. (Example: how could you swap a house or vehicle through a bartering process once that large purchase is recognized somewhere in "the data base' and that data base shows no cash transaction (and no taxes paid) ever took place in the electronic debit/credit system?)  They're would be no way of hiding a transaction of that size or type.

But what if the govt.(s) wanted to exert total control over your money (and activities) in the public sector to the greatest extent possible and they removed (or made illegal) alternative forms of  'cash' at any place that uses a cash register or card swiping electronic  system currently? 

The answer to..."What is a Person To Do?" ...is whatever it takes when they have the opening to do so and another willing individual to barter with. Electronic monetary control will make everyone accountable for almost everything they do in life and where and with whom they do so.

It's my belief/hope that at some point gold and silver will be accepted by certain banks within the US (and elsewhere) that will happily pay you an instantaneous electronic premium on your precious metals and then they'll credit your account or card accordingly. 

I've hated repeating this concept the past few years but if they want total control and accountability of your money (and their intake of identifiable and retrievable revenues) they'll go to an all electronic method of transactions at some point soon. Digital money creation by the govt. at that point will be hard to track and account for and public debts and deficits will lose meaning  once the debt ceiling is removed and all or most public debt is eventually monetized by the govt's private central bank...the Federal Reserve. 

Meanwhile, save it and spend it while you've still got control of 'it'.

OrangeAlert's picture

AM

Continue to love your work. Couldn't agree more. I wish I had an answer. Funny how all the right moves continueto be labeled wrong by the gov't though. Its kind of like entrapment in my opinion. They do xxx, forces people to do yyy, they outlaw yyy, but never change xxx. Then we are the criminals?? That makes sense.

DeaconBenjamin's picture

Aldi confirms up to 100% horsemeat in beef products

Aldi has confirmed horsemeat has been found in its withdrawn beef products

The environment secretary is due to meet the Food Standards Agency, food suppliers and retailers on Saturday to discuss the horsemeat scandal after Aldi became the latest supermarket to confirm its withdrawn beef products contained up to 100% horsemeat.

Owen Paterson said it was unacceptable that consumers were mis-sold products, but that the problems originated overseas. "We believe that the two particular cases of the frozen burgers from Tesco and the lasagne from Findus are linked to suppliers in Ireland and France respectively. We and the Food Standards Agency are working closely with the authorities in these countries, as well as with Europol, to get to the root of the problem," he said.

Paterson said he believed the food was safe but urged consumers to return products to the retailers. "The French authorities are saying they are viewing the issue as a case of fraud rather than food safety. Anyone who has these products in their freezer should return them to retailers as a precaution.". Findus denied reports that the company first knew there was horsemeat in its products last year. "Findus want to be absolutely explicit that they were not aware of any issue of contamination with horsemeat last year," it said in a statement. "They were only made aware of a possible August 2012 date through a letter dated 2 February 2013 from the supplier Comigel. By then Findus was already conducting a full supply chain traceability review and had pro-actively initiated DNA testing."

The Metropolitan police said in a statement it was not carrying out a criminal investigation. "Although we have met with the FSA we have not started an investigation and will not do so unless it becomes clear there has been any criminality under the jurisdiction of the Metropolitan police service."

Aldi said it felt "angry and let down" by its French supplier Comigel after tests on Today's Special frozen beef lasagne and Today's Special frozen spaghetti bolognese found they contained between 30% and 100% horsemeat. Comigel, which also produced the contaminated Findus beef lasagnes, has blamed its suppliers. Erick Lehagre said he believed his company was buying French beef from a company called Spanghero but it had since told him it had come from Romania. A spokesman for Aldi said random tests had shown that the products they had withdrawn contained between 30% and 100% horsemeat.  The company added that it would test the meals for the veterinary drug phenylbutazone, often referred to as bute, but said it was confident the meals were safe.

http://www.theguardian.com/business/2013/feb/09/aldi-100-percent-horsemeat-beef-products

DeaconBenjamin's picture

A Trade Currency: Cowry Shells

 

 
kikuya-woman.jpg
Certain types of seashells have been used by natives as currency on every continent of the world except Antarctica. This Kikuyu woman is in traditional dress showing hundreds of Cowrie shells. (Photo: Flickr user wayfaring stranger.)
 
According to Ingrid Van Damme, a Member of the Museum staff of the National Bank of Belgium, "Cowry Shells, a trade currency": The Museum of the National Bank is probably not the first thing that crosses your mind when you are talking about shells. And yet, apart from a large number of coins and banknotes it also possesses a nice collection of primitive means of payments. Within this category of traditional money the cowry shell is one the most renowned representatives.
 
LK_penz_kialakulasa.jpg
Cowrie shells, African ring money and ancient gold money
 
Long before our era the cowry shell was known as an instrument of payment and a symbol of wealth and power. This monetary usage continued until the 20th century. If we look a bit closer into these shells it is absolutely not astonishing that varieties as the cypraea moneta or cypraea annulus were beloved means of payments and eventually became in some cases huge competitors of metal currencies. All characteristics of money, i.e. durability, handiness or convenience, recognizability and divisibility are embodied in these small shells. In comparison with foodstuff or feathers which can fall prey to vermin, shells withstand easily frequent handling. They are small and very easy to transport and their alluring form and looks offer them a perfect protection against forgery. Besides, counting was not always absolutely necessary. As the shells almost all had the same shape and size weighing often sufficed to determine the value of a payment.
 
T_EN_77442_2.jpg
Cypraea moneta (cowrie).
 
According to local preferences and agreements, cowry shells could also been packed or stringed to larger unities. On the Bengalese market e.g. large payments were made in baskets full of cowries, each one containing approx. 12.000 shells. Due to it’s peculiar form the cowry was also considered to be a fertility symbol, which made it extremely popular with a number of peoples.
 
OrnamentGourdnCowries.jpg
Gourd Ornament with Cowrie Shells
 
The cowry which is indigenious in the warm waters of the Indian and Pacific Oceans travelled by land and by sea and gradually spread out its realm. It became the most commonly used means of payment of the trading nations of the Old World. The cowry was accepted in large parts of Asia, Africa, Oceania and in some scattered places in Europe. Chinese bronze objects, the oldest dating back to the 13th century B.C., inform us about this monetary usage. This tradition has also left its traces in the written Chinese language. Simplified representations of the cowry are part of the characters for words with a strongly economic meaning, as e.g. money, coin, buy, value…
 
images?q=tbn:ANd9GcQVlrqRwKze9rYzLwNnThj
Cowry shell collecting and trading became a real industry on the Maldives. Both men and women were involved and had their own responsibilities. Women wove mats of the leaves of the coconut trees which were put on the watersurface. Little molluscs covered these mats but before they could be harvested the mats were left on the beaches to dry. Once completely dried out the shells were ready to start their lives as currencies.
 
cowrieshells.jpg

1200 B.C.: COWRIE SHELLS: The first use of cowries, the shells of a mollusk that was widely available in the shallow waters of the Pacific and Indian Oceans, was in China. Historically, many societies have used cowries as money, and even as recently as the middle of this century, cowries have been used in some parts of Africa. The cowrie is the most widely and longest used currency in history.

 
The largest part of this Maldive production was exported by local seamen to the main distribution centre of Bengal. Important question: what was the value of this commodity? The law of supply and demand, one of the basic laws of economics, played a dominant rôle. In areas far away from production or trade centers, a few cowries would buy a cow whereas in the Maldives itself a few hundred thousands equalled a gold dinar. Along the northeast trade route caravans of Arab traders introduced the cowry in the African inland but it were the Portugese, English, French and Dutch who promoted the cowry to the currency for commercial transactions, as e.g. trading in slaves, gold and other goods. The massive import of cowries along the African Westcoast however caused a few disruptions both sides of the trade route: whereas India had to deal with serious shortages in the 17th century local African currencies lost their values or even disappeared completely in favour of the cowries. The cowry continued to play its monetary rôle until the 20th century but the financial world has not completely turned its back on this popular currency. Its memory is, amongst others, kept alive in the façade of the Central Bank of West African Countries in Bamako, Mali or… in museums dedicated to money. (source: the National Bank of Belgium)
 
20100913-money2.jpg
Cypraea moneta (cowrie)
Cowrie shells were the longest and most widely used currency of all times. In China they were circulating as money from the 2nd millennium BC. From there they spread over Thailand and Vietnam to the Indian subcontinent; finally they came into use also on the Philippines, the Maldives, in New Guinea, the South Seas and in Africa. On the African continent, cowrie money remained in circulation until the mid-20th century. Many cowries found on archeological sites are pierced like the specimen shown here, as they were also used for decorating clothes or tied together in strings for the payment of larger sums.

http://usslave.blogspot.com/2011/10/trade-currency-cowry-shells.html

gold slut's picture

Horsemeat

OK Deacon, put down the knife and fork and step away from the lasagne.  You are surrounded!!

Cynicus's picture

always an exit

By the very nature of the beast surely there will always have to be an illicit, or at least opaque, way to purchase - after all what is the point of being an avaricious, greedy and self serving politician if you can't spend your ill gotten gains? And they are the ones who make the rules...

DeaconBenjamin's picture

step away from the lasagne

Are you kidding?  Do you see this entree?  It's a Bute!

argentus maximus's picture

It's hard to imagine a world

It's hard to imagine a world where eg cocaine is legal, but cash is illegal, and unofficial money dealing is regarded by TPTB like drug pushing is looked upon today, but at legislation drafting level the world is moving in that direction.

About opaque ways to purchase, the more rapacious the government, the harder people will work to find or make a way.

In the circumstances, distributed piracy of copyright via Kazaa, Limewire, and Torrent technologies and the failure of TPTB to stop them must have been the ultimate scare for those who run the money scam to live it up at the expense of everyone else. That was Hollywood-state partnership in action.

But taxation is at the core of state domination over the individual. It's so immense all state will unite in their opposition to citizen efforts of avoidance. I expect a big reason for the existence of the NSA Data Centre in Utah is limitation of the impact of new innovations in decentralized anonymous money alternatives.

Silverwing's picture

A look inside the political TURD

Mr. Fix's picture

argentus maximus : Great post!

I love how you tied the value of things to their legality according to government. I would like to offer as evidence that our government is quickly making it illegal, everything an individual would need to be self-sufficient and live outside their system. Obviously, they are hell-bent on making self-sufficiency impossible. From using phrases such as “people clinging to their guns and Bibles”, to destroying and regulating private food production, they are wholeheartedly discouraging through regulation everything you would need to be self-sufficient. Over the last year, the one investment I have put money into that has grown in wealth the most is ammunition, just a government crackdown alone creates massive scarcity. I think the government will use this tactic for virtually everything we need that could be used for barter outside of their monetary system. 

I've been asserting for quite some time that the price of gold and silver is being artificially deflated for the sole purpose of propping up a failing currency, which you have brought it to the next logical step, of simply making its ownership illegal, and hence everyone here an outlaw. Our government is shamelessly stealing the wealth of everyone, and I have concluded that short of a genuine revolution,  this will continue.

I think at this point, if individual states simply started ignoring unconstitutional federal legislation, it might wake up enough people as to how corrupt the system is,  because the federal government would have to declare war on individual states for the simple crime of trying to maintain state sovereignty. Our constitutional guarantees are being eroded one at a time, and it's going to take one fairly large geographical region to be Institute the Constitution within its borders to create a showdown. Otherwise, individuals will simply be picked off one at a time.

Taken to your question of if I would still hold gold and silver if it was treated like heroine,

the answer is yes, that also includes guns,  and ammunition, food, fuel, and everything I need to survive.

I truly believe that laws that are instituted which are profoundly immoral need to be ignored on moral grounds.

At some point soon, this will come to a head, I know that, it's something that I prepare for.

Mr. Fix's picture

In the meantime, the surveillance state continues to grow.

NSA Has Full "Back Door" Access To iPhone, BlackBerry And Android Smartphones, Documents Reveal

Two months ago, when we reported that the NSA has successfully inserted illegal access protocols into the Android OS, thus granting it back door access into nearly three quarters of all cell phones, the news was met with skepticism and resistance: how could an open-sourced architecture be so frail and open to penetration was the most common complaint. We wonder if today's news, broken by Germany's Spiegel, according to which the NSA can spy not only on Android smartphones but tap user data on all iPhone and BlackBerry devices "including contact lists, SMS traffic, notes and location information about where a user has been", will be met with the same skepticism or if the realization that every form of privacy is now gone, has finally dawned on the population. Spiegel reports, citing"internal NSA documents that the NSA has the capability of tapping user data from the iPhone, devices using Android as well as BlackBerry, a system previously believed to be highly secure. The documents also indicate that the NSA has set up specific working groups to deal with each operating system, with the goal of gaining secret access to the data held on the phones." While at this point it should come as no surprise that the NSA pervasively spies on Americans without a warrant or clearance, and has access to every device permitting electronic communication, the bigger question is: if everything is being spied on, what is left? Is carrierpigeons.com about to IPO?

 
Hunt brother's picture

Toilet Paper as currency...

I have built a stockpile of toilet paper.

Gold and silver are my two favorite stores of wealth, but the value of toilet paper cannot be wiped out if the Dollar takes a big dump.

Howard Roark's picture

What a person do...?

Good question, AM. In all the examples given there is a constant: the state. And it´s monopoly of force, violence and extortion.

A minded person should not participate in anything that assures that monopoly (i.e. voting; imagine that only a small amount vote, say 100,000 ergo the leadership is sunk). 

With all the powers that the state has the reality described could became true to a lot of goods (let´s call it that), but the reason for the limitation in cash transactions lays elsewhere. Not only in the power of the state, but in the needs of it´s allies (politicians and their employers). And there are no limits to those needs as we can see abundantly.

Salut, 

HR

Chibster's picture

Toilet paper and gold

I bought and hoarded toilet paper when Costco Kirkland packages still had 36 individually wrapped rolls.  They are still in the back of my closet.  Now the Costco pack has only 30 rolls and to save money they wrap them in plastic holding half a dozen now (versus individually).  I believe the Kirkland 30 roll pack costs more now too.  A loss of 6 rolls /36 rolls is a 17% inflation rate over the last ~couple years.  BETTER THAN GOLD. 

I wear prescription glasses.  Buy backups of prescription glasses and contact lenses now.  BETTER THAN GOLD.

The Indian Rupee is being debased at an unbelievable rate.  Do as the Indians.  BUY GOLD JEWELRY NOW.  BETTER THAN GOLD BULLION.  YOU CAN WEAR JEWELRY IN AN AIRPLANE AND ACROSS BOARDERS and it won't be confiscated. 

With that jewelry, don't forget to also carry your steel and lead (be armed = firearms and carry a blade).

I recommend paying a very small premium over the actual gold weight for any jewelry so it is purchased like and can be treated like bullion.  Jewelry can later be used to swap into the new currency after the reset. 

Green Lantern's picture

Re: What is a person to do

Be less conventional in the manner in which one stacks

24 K gold flute 

I've seen the 18 k go for over 40 grand.  Can't tell ya how much this one costs.   I'm thinking over 60 grand.

I'm not really being facetious in suggesting that your stack does not have to be all coins.  I've said many times I'd diversify away from coins if I were a rich man.  ya da da da da da da

BTW, Irish flute player james Galaway plays a gold flute.  He is known as the Golden Flute Man.   Not sure if it is the 24k version.  But it looks awfully purty.

Missiondweller's picture

Making gold a usable currency

As some may know, I'm working to start a company that will allow customers to use physical gold that can be spent with an ordinary bank debit card. I've filed for a patent for the payment process. This "gold bullion debit card" has the advantages that

  • your account only sells enough gold to cover a transaction, leaving the balance in physical gold.
  • Transaction costs are reduced for the gold holding customer.
  • The merchant is paid in their local currency.
  • The client's gold is held outside the banking system.
  • The bank card payment network is only used for the customer and merchant's convenience.

Of course these transactions will not be anonymous but it does facilitate gold as a global currency.

I'd love to get feedback from the Turd community. Your questions, input and even scepticism will help me develop this product. Would you try it? What would be your concerns?

Take a look at the mock-up website and post a comment here or on the website.

http://goldbulliondebitcard.cloudaccess.net/

Also, if anyone has technical knowledge of bank card payment systems let me know. I'm trying to do as much of the development of this on my own before seeking funding.

ancientmoney's picture

@sierra skier re: do the best we can . . .

"I am a hard working solid citizen who has taken the steps to store wealth and value for my future retirement comfort, yet I am more than likely on the government terrorist lists because of my beliefs in the constitution, religon, self responsibility and the desire to do what is ethically right. Apparently trying to do what is right is considered wrong by those in charge to the point where we become threats to the illegal state."

------------------------------------------------------------------------------------------------------------------------------------------------

Agreed.

It is to help counteract people like you that the state has created the teeming, Free Shit Army, the surveillance state, and regulations against self-suffiency.  The FSA will be expected, and happy to turn you in for harboring food, silver, cash, or whatever the state deems its sole property to divvy up as it sees fit.  They view anything you have beyond what they have as illegal contraband, to be distributed to them, through the government.

The second amendment is all that may allow us to retain any of the freedoms provided by the founders of this country.  That is why it is under constant attack by obama and the rest of the military/industrial complex.

Chibster's picture

@ greenlantern pimp daddy jewelry pic

I actually like the gold flute idea.  My grandfather has a silver saxaphone still stored on top of his armour, but I don't think it's pure silver.  Probably silver plated brass.

Here we go.  Florida family uncovers $300K in Spanish gold (mostly jewelry).  They are absolutely happy about this find.

http://www.usatoday.com/story/news/nation/2013/09/03/florida-family-gold/2757357/

Most of the jewelry I had selected are considered popular simple neck chain styles and are what I consider fractional coin bullion size  (ie. only .25 to .5 troy ounce actual gold weight) so it can be bartered easily or swapped for currency less than the tax $10k level siren.  Put one on every child and wife when I get on an airplane.  Anyone asks I'll say "fake" plated brass.  

I've brought my huge gold class ring on the airplane before.  No one ever harassed me over my ring or necklace jewelry before.

flyinkel's picture

RE: NSA post by Mr Fix

The bigger question is "Since the NSA has such pervasive spying technology why hasn't every drug dealer been apprehended?" 

Fact:  they can tail a person 24/7, listen to phone conversations, intercept E-mails, and have developed a vast  network that operates not only in the US, but Canada, Mexico, even as far away as places like Albania.  They can spend unlimited sums tailing those that threaten power/control or economic income streams, but not the criminal?  So again, do they work for us, the taxpayer that pays their wages (or goes more into debt funding them), or others?

And if it's others, the first thing you must answer with the posited "what is a person to do?" is to truly understand the threat.  We are far more caged than we realize.

Some folks will understand the threat and decide it's just easier to "belong".  Some will think they can put some integrity back into the system but the first day the suit shows up with fake documents about his supposed T-threat neighbor he will fold like a cheap suit; he will see 97% of the information is valid and conclude erroneously then 100% must be true, because they are pros at what they do and you are but a babe in the woods to them.  Putty in their hands.  And you will start to work for them believing you are doing good, when you are being manipulated.

Finally, there will be folks that will value our Constitution as written, civil liberties, and individual freedoms, and will actually stand up for their morals and beliefs and help to put folks in position of power that feel the same way.  When presented with info against their neighbor/friend/relative they will always seek the truth by actually getting the other side of the story.  This is the only way they will realize items have been fabricated against their neighbor/friend/relative!  The longer and more our system operates covertly against its own law abiding citizens, the more corrupted it can become.    

We elected the folks we have in power, we did it to ourselves, we own this mess!  We owe it to the next generation to get ourselves out of it.

Dynamohum posted a video a couple days ago.  One person, or one family, against such a threat does not have a chance.

Before I can answer "What is a person to do", I have to understand, "What exactly is the threat".  

Green Lantern's picture

@chipster

It's probably silver plated which is fine.  Most instruments are plated and not 100% silver or gold.     But for sure, if it's your grandfathers than it is a vintage instruments and vintage saxophones go for beaucoup bucks.  See if you can find model and research it.   www.vintagesax.com and there are probably other sites

Mr. Fix's picture

"Why hasn't every drug dealer been apprehended?"

The best theory I can come up with dovetails with Jim Willie's assertion that the big banks would collapse without their drug cartel money laundering operations. It seems obvious to me that if the opium growing in Afghanistan was a real concern to the US government, it would no longer exist, but in reality, they are actually protecting it, I can only assume that Jim Willie's assertion is correct. So while the price of  heroine has been driven to stratospheric levels, this just gives the bankers/government obscene profits.

The only people actually being busted for  drug distribution, are those that are working outside of the system, the government can't stand any form of competition.

The war on drugs was never designed to eliminate drugs, only to squash competition.

Darth Smoker's picture

re: Making gold a usable currency

GoldMoney.com already has four Patents

http://www.goldmoney.com/en-gb/our-services/gold-payments.aspx

Occasnltrvlr's picture

One Common Thread...

...Sir Maximus, in your post, is the role of the state.

What is one to do?  I suggest strongly considering creating the opportunity to carefully select one's state, now, while there is still some freedom.  I think Ann Barnhardt is right, there has effectively been a coup d'etat.

My opinion of the data center in Utah:  It is to effectively close the borders and support the gulags.  Given the confusing and arcane rules and laws, there will be sufficient data for probable cause to "legally" arrest virtually any person for any of countless ridiculous reasons (eg, transporting a quart of turpentine into California, or buying unpasteurized milk).  Given the complicity of the justice system (and seemingly utter un-interpretability of countless vague and ill-written laws and rules), it will be almost effortless to use some level of law enforcement (militarized, no less) to accuse, arrest, and probably convict virtually anyone.  Regardless of conviction, the arrest closes all foreign borders to residency and citizenship, and probably legalizes confiscation of assets.

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