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Financial Mad Max

There are a number of areas to cover when prepping, and they include the obvious ones like keeping yourself in the best physical shape possible, building a stock of food and water to last at least a month or two, and accumulating items to barter in the event of hyperinflation kicking in or when the networks crash with ATMs unable to dispense any more paper money. Here we look at the need to prep for the monetary mayhem that is already underway. Has everybody already forgotten about the 12-day shutdown of Cypriot banks in March 2013? That when they reopened a 300 euros limit was imposed as a maximum that can be withdrawn? What about the subsequent 40 – 70 percent haircut given to any deposit above 100,000 euros? If you think this can only happen to somebody else you’d better think again – hard. Cyprus style bail-ins are becoming the preferred way to stave off banking failures in future as private property rights become a thing of the past.

It is therefore only prudent to prepare ourselves in this area before a Mad Max world descends on us in full force. Hopefully it doesn’t ever come to that, but if it does, at least in this one area we have prepped to the max and we have a cache of real money to use and barter with ease. If Mad Max doesn’t grace us with his presence – fantastic, and the gold we have saved can become a valuable heirloom for the next generation and our loved ones. But at the present trajectory, history suggests it is a matter of when rather than if before the social fabric is torn asunder due to financial meltdowns. The song of angry men is being sung louder each day haven’t you noticed? Austerity for the masses and freebies to the rich, and a Les Miserables reprise is in the cards.

So what is spendable gold? I do not wish to harp about gold being real money, because I believe by now most of us have seen enough QE to the nth-degree and the sad erosion of paper currencies for ourselves. Spendable gold has become a rising European trend in recent years, with well-known producers such as Credit Suisse, PAMP, UBS and even the Perth Mint of Australia issuing them. This is gold in small sizes such as 1-gram, 2.5-grams and 5-grams. The small sizes make the bars affordable to most people who are seeking shelter from the monetary storm, while also making the gold easier to spend as well. Just imagine trying to buy a few loaves of bread with an ounce of gold (which at the time of this writing is US$1,230/oz.) and you get the picture. Sure, they might be happy to throw in a pound of salami free of charge but good luck asking for the change. These won’t be normal times after all, and it would hardly be a surprise if people acted less than civil.

I for one hope the market rigging will continue, and they can kick that darn can down the road indefinitely. Manipulation is better than Mad Max any day in my book, and the longer the farce lasts means the more time I have to prepare. However, Germany’s top financial regulator BAFIN has just spoken out against the manipulation of precious metals and currencies in the market, calling it a bigger scandal than the rigging of LIBOR. Hence, we can see the knowledge of gold manipulation has moved from the realm of conspiracy theories into the mainstream. The writing on the wall speaks volumes. Dr. Paul Craig Roberts, a former Assistant Secretary to the Treasury during the Reagan years made a telling comment on the subject: “We conclude that ability to manipulate the gold price is disappearing as physical gold moves from New York and London to Asia, leaving the West with paper claims to gold that greatly exceed the available supply.”