Bullion Confiscation Goes East: Opinion

VANCOUVER (Bullions Bull Canada) -- As one of the loudest voices warning of the risks of "bullion confiscation" by our governments, it was no surprise to me to see the media, in this case Bloomberg, singing its virtues.

What was a surprise is where this "initiative" purportedly originates: India.

Readers who follow the precious metals market are familiar with the dynamics here. Western sheep choose to hold the bankers' fraudulent paper currencies despite our governments openly driving the values of those currencies to zero with their "competitive devaluation." This foolhardy mistake is a major factor behind the greater than 50% decline in the U.S. standard of living over the past 40 years.

Meanwhile, those in India do not engage in similar, suicidal behavior. They park their wealth in gold (and silver) bullion immune to the print-and-dilute theft inherent in every fiat-currency system. It is one of the key reasons why Asian standards of living are rising, while those of the West plummet downward at the fastest rate in history.

In my own naivete, I had assumed our predatory Western governments would target their own people for bullion confiscation and look to steal the modest amount of savings of those who hold precious metals. But apparently the bankers and oligarchs have their sights set on a bigger prize: the largest private holdings of bullion in the world, in India.

Let's be clear that this is obviously a Western proposal, as indicated by the English-speaking "front" organization used to deliver this propaganda. What is the substance of the proposal?
...Households and temples carry about 25,000 metric tons of gold and a successful plan to gather at least 10% of the gold reserves for lending to jewelers will ensure supplies for three years...

So here we see the goal: harvesting (i.e. confiscating) "at least 10%" of Indian gold and to apparently repeat this harvest every three years since allegedly a 10% harvest would only deal with the supposed "problem" faced by India for three years.

We see further evidence the entity spewing this banker propaganda is nothing but a Western mouthpiece, as any genuine "Indian" entity would understand that proposing to plunder the gold from India's religious temples would be an absolute "non-starter" for its ¾ billion population.

Just as phony as the organization itself is the supposed "problem" this bullion-confiscation scheme claims to address: what it calls India's "current account deficit." Here a quick definition is in order.

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 Bloomberg 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 Hyperinflation Hell 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 "bubble", 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.

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