A current account deficit (or surplus) represents the flow of "money" into/out of an economy. Just as nations have "trade deficits" (and surpluses), so, too, it is a necessary proposition of arithmetic that each year there will be some nations with net in-flows of capital, and others with net out-flows.
What is phony here is the lie behind the mythical "current account deficit" of India. As the world's largest importer of gold bullion, each year India has a large outflow of the bankers' bogus paper currencies and a large inflow of real money -- gold. Obviously, you cannot have a "current account deficit" (or surplus) in exchanging one form of money for another.
Let's make no mistake here. The Western banksters themselves not only consider gold to be "money" but (as has been the case for 5,000 years) our best money. They recently were forced to elevate gold to the status of a "Tier I" monetary asset, in deference to its superior status to their own debauched paper.
More importantly, it is these same banksters who require all international gold transfers between banks/governments to be reported and accounted for exactly as they do with their paper currencies. No one thinks of gold as "money" more than Western bankers.
Thus the premise that India's swapping of (bad) paper money for (good) gold money somehow is creating a "currency deficit" is not only wrong, but patently absurd.
There are several other points to note here. Notice that at no point in the
article is the word "confiscate" mentioned. Banksters have learned they are much more successful with their stealing if they scrupulously avoid using the word "steal."
Am I trying to frighten readers away from gold and/or silver bullion by warning of the dangers of bullion confiscation? Absolutely not. Indeed, regular readers know I deliver precisely the opposite message: gold and silver bullion (as a matter of simple arithmetic) are our best refuge from the
looming directly ahead of us.
My message to people is to hold lots of gold/silver bullion. However, it's crucial people hold their precious metals personally, in a home safe or other secure location.
Some will argue for parking their wealth in real estate. However, not only do our permanent near-zero interest rates ensure all real estate markets are permanently in some form of
, but land can also be seized. Unlike bullion, however, it can't be hidden.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.