“Gold Is Now Effectively Illegal In India” The Consequences Of Creating A Cashless Society

http://www.zerohedge.com/news/2016-12-18/gold-now-effectively-illegal-india-consequences-creating-cashless-society

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by Tyler Durden

Jayant Bhandari warns “there are clear signs that in a very convoluted way, possession of gold for investment purposes will be made illegal” as he discusses India’s attempts to create a cashless society (and consequences of it) and why precious metals and geographical diversification are the most viable options investors around the world, not just India, should be taking.

“The situation is getting worse by the day… people are desperate”

Jayant provides the clearest explanation of where India is (and where it is going) in the brief interview with ProvenAndProbable.com’s Maurice Jackson

As Jayant detailed previously, expect a continuation of new social engineering notifications, each sabotaging wealth-creation, confiscating people’s wealth, and tyrannizing those who refuse to be a part of the herd, in the process destroying the very backbone of the economy and civilization.

There are clear signs that in a very convoluted way, possession of gold for investment purposes will be made illegal. Expect capital controls to follow.

Gold Bullion Is Now Effectively Illegal

Assaults on people’s private property and the integrity of their homes through tax-raids continue.  In a recent notification, government has made it clear that any ownership of jewelry above 500 grams of gold per married woman will be put under the microscopic scrutiny of tax authorities.

Steep taxes and penalties will be imposed on those who cannot prove the source of their gold. In India’s Orwellian new-speak this means that because bullion has not been explicitly mentioned, its ownership will be deemed to be illegal. Courts will do what Modi wants. Huge bribes will have to be paid.

Sane people are of course cleaning up their bank lockers. The secondary consequence of this will be a steep increase in unreported crimes, for people will be afraid of going to the police after a theft, fearing that the tax authorities will then ask questions. At the same time, the gold market has mostly gone underground, and apparently the volume of gold buying has gone up.

The salaried middle class is the consumption class, often heavily indebted. Poor people have limited amounts of gold. The government is merely doing what pleases the majority and their sense of envy, to the detriment of small businesses and savers. Now, the middle class is starting to face problems as well. This will worsen once the the impact of the destruction of small businesses becomes obvious.

India has always had a negative-yielding economy. It has suddenly become even more negative-yielding. Business risk has gone through the roof. Savers will be victimized. It is because of negative yields that Indian savers buy gold. They will buy more going forward.

Sane Indians should stay a step ahead of their rapacious government and the evolving totalitarian society, which are less and less inhibited by any institutions or values in support of liberty.

Conclusion

India will become a police state, likely with the full support of most Indians. Nationalism will be the thread that weaves them together. But it is a fake thread, devoid of any value. Eventually, there will be far too many stresses in the system, whose institutions are already in an advance stage of decay.

India as it exists today is a British creation. With the British now gone for 69 years, it is an entity has less and less reason to exist in its current form. The glue of reason that the British have applied is flaking, and it is doing so rapidly under the catalyst by name of Narendra Modi.

 

Six Steps Trump Can Take Toward Better Monetary Policy

http://www.zerohedge.com/news/2016-12-17/six-steps-trump-can-take-toward-better-monetary-policy

by Tyler Durden

Submitted by JP Cortez & Stefan Gleason via The Mises Institute,

Since Nixon severed the final link to gold in 1971, the US dollar has lost more than 80% of its purchasing power, wreaking havoc on ordinary savers, conservative investors, and households on fixed incomes. Today, inflationary monetary policy continues to be a foundational tenet of all presidential administrations as politicians and central bankers have heedlessly been borrowing and printing currency without restraint in order to bankroll today’s bloated and insolvent federal government.

Movement in the direction of sound money is badly needed, and even without abolishing central banking, there are several steps that the Trump administration can take toward improving monetary policy.

Step One: Audit the Fed

From Ron Paul to Bernie Sanders and many people in between, there has been plenty of support for “Audit the Fed” legislation. Politicians and constituents alike agree that the Federal Reserve lacks even the most basic oversight a government-sponsored institution should have — particularly when its officials can make decisions which can bring the American economy to its knees.

Step Two: Audit the Gold

The last time there was a reasonably credible audit of America’s gold reserves was in the 1950s. Since then, there has been little more than peek-a-boo glances at the gold. The most recent status report done by the Department of the Treasury, claims that Fort Knox holds 147,341,858.382 fine troy ounces of gold.

However, many question the accuracy of that report and whether it tells the whole story. There is evidence the US Treasury has engaged in gold leasing and other financial alchemy. Even if all the gold is still held in US vaults, it may have been leased, sold, pledged as collateral, or could be encumbered in other ways.

Step Three: Remove Federal Taxation on Precious Metals

Another necessary step in freeing gold and silver to be used once again as money is to eliminate capital gains taxation on monetary metals. At the federal level, IRS bureaucrats insist that gold and silver be taxed when exchanged for Federal Reserve Notes — or when used in barter transactions.

When the federal government’s inflationary policies lower the purchasing power of the Federal Reserve Note, precious metals’ nominal dollar value generally rises, triggering a “gain.” The gain may be purely fictional in real terms. But these “gains” are still taxed — thus unfairly punishing people for owning precious metals as money.

Step Four, Five, and Six: Appoint Proponents of Sound Money to the Fed, CEA, and CFTC

President-elect Trump’s rhetoric is loaded with claims about getting people back to work. He’ll play a hand in that directly when he makes appointments throughout his presidency. Among the most impactful will be his appointments to the Federal Reserve.

The Federal Reserve, the privately held central bank of the United States, has an unrivaled ability to manipulate the economy. For much of the past 30 years, starting with Alan Greenspan, the Fed has loosened the money supply with low interest rates and quantitative easing. And it’s created moral hazards by bailing out irresponsible market players. Trump can appoint 4 of the 7 leading officials of the US central bank.

The Council of Economic Advisors (CEA) advises the president on economic policy and prepares the Economic Report of the President. The council is comprised of 3 members nominated by the president and approved by the Senate, and its members are typically professors on a leave of absence from their universities.

Trump has the opportunity to appoint new members to this advisory body. He should look to economists with a firm understanding of the benefits of sound money than selecting yet more Keynesian school economists who have been cheerleaders for central government planning and an inflationary monetary policy for decades.

The people Trump appoints to the US Commodity Futures Trading Commission (CFTC) will also have substantial impact on the markets. In the recent past, the CFTC received complaints about concentrated short selling done intentionally to push gold and silver prices down. For example, there is strong evidence that unscrupulous banks and traders often attack during periods of low liquidity in the markets such as the middle of the night.

The largest contributor to inflation and financial turmoil is dishonest money – enabling bureaucrats to run perpetual government deficits and pile up the federal debt. If Trump takes the steps outlined above, he can repair some of the damage.

 OLDDOGS COMMENTS!

In their quest for world dominion the International Investment Banking Cartel will never allow Nations to be independent of their power to control Corporate governments, Take that to the bank folks. One by one, they will destroy every nations ability to rule their own commerce, and in doing so they will also destroy any and all means of becoming independent in the future. They intend to own everything of value to the people everywhere. They will destroy America with out shedding a tear, while remaining in total control of all we need to survive. They will kill everyone who becomes a threat and this has been their object for a thousand years, as they truly believe they are the only ones who can rule to the point of becoming indestructible, because they control all armies and police who will be allowed to plunder at will as their reward. Sound like a science fiction movie??? Well all you have to do is stop your insane pursuit of entertainment and do some history reading. Putting two and two together is not really that hard folks! It is way past time for the people to demand their heads in a basket!

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