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Do you think if you hit yourself repeatedly on the head with a hammer, that eventually it would hurt?
Wouldn’t it be prudent, once the pain becomes obvious, that you would stop?
I think so personally.
And I also think that, should the idea ever occur to you again, you’d remember the consequences and not do it.
So, why do we continue to do it?
Why do we rely on our governments to do basically anything for our benefit?
I mean, how much more proof do you need over the last 3 years?
Even the last 4 weeks. Would there be conflict in Ukraine if there were no Russian or Ukraine government?
The average person is losing so much on so many levels it staggers the mind.
And if you think it’s a case of desperate times means desperate measures, think again.
Or maybe grab that hammer one more time.
Read on now as I show you how we all had warning to our own governments insatiable desire to take everything that we hold dear away from us.
After all, the more that governments give, the more they can take.
The cost of sanctions
You may have noticed a recurring theme over the blogs you’ve received this year.
And that’s for good reason.
It’s become obvious to me that to understand and deconstruct what’s been occurring to all of us over the last few years requires the correct context applied to it.
The gift of wisdom lies in our ability to study history.
This was my first thought when I caught this headline recently.
Source: The Australian
It was a think- piece about the possible wider consequences of this conflict in Ukraine if both parties can’t find a way to end it.
It’s a classic case of fear-mongering. I mean how can one not come to this conclusion after reading it.
It includes the shock to the oil market if Russia is precluded from selling crude production on the world markets, to another world recession if the US goes too far with its sanctions.
There could be supply issues with natural gas into Europe as well.
Frankly it’s the usual bad news sell stance our media sadly takes at times like this.
But credit where due; one thing brought up in the article did resonate with me as totally justified issue to raise.
It is the threat of cyberwar between the main belligerents. Russia and the US have some of the most potent cyber tools at their respective disposal.
The information war has already begun on the world’s most popular social media sites.
However, another aspect of this cyber war is crypto currencies. Their first true test as to whether they are a safe haven in much the way gold is regarded.
Make sure to read this next paragraph thoroughly.
Of particular focus in the cyber war will be the role of the crypto currencies led by Bitcoin. The supporters of the crypto currencies see them as playing a similar role to gold as a safe haven at a time of conflict.
But that status was damaged in the Canadian tracker dispute when large numbers of trucks blocked the US-Canada border over vaccination issues.
The Canadian government used its emergency powers and froze the banking assets of the truckers. That meant they captured the crypto currency holdings but not gold.
That was a light bulb moment for me.
Suddenly, how all this will end became crystal clear to me.
I just needed to go back to 1933.
Executive Order 6102
Now you may own some gold bullion, or gold exposed stocks or the like. And you may hold these to diversify your portfolio or to act as a hedge against markets falls or indeed, as we see now, disasters and conflicts.
Most people do, I’m sure.
However, are you aware that your own government can confiscate any gold bullion you may have?
It’s a fact, and its actually happened before.
The government of Franklin D Roosevelt seized all gold bullion and coins via Executive Order 6102, forcing citizens to sell at well below market rates. Immediately after the “confiscation”, the government set a new official rate for gold that was much higher as part of the Gold Reserve Act 1934.
Many gold owners were understandably unhappy about the gold seizure, and some fought it in the courts. Ultimately, however, the government could not be stopped, and gold ownership remained illegal in the US until the 1970s.
And if you think by living outside the US you are immune to such measures, think again.
In 1961 Australia brought in a law that allowed the seizure of gold from citizens “if expedient to do so, for the protection of the currency or of the public credit of the Commonwealth [of Australia]”.
And then there’s the UK with their 1966 decision to protect the pound and ban the import of gold.
Now, you would be correct in saying that at the time the western economies were following a gold standard.
The chances of a repeat today are remote. Probably right, and yet here we are again.
Replace ‘gold’ with ‘crypto’.
That’s what the Canadian government looked to take as their own citizens exercised their democratic right to protest on the US-Canadian border.
This move reverberated throughout all crypto exchanges around the globe and saw widespread selloffs and billions wiped out.
Note the major US institutional finance houses and banks have big exposure to this market too.
Expect intense lobbying and pushback against these measures.
History shows the way.
Now that executive order 6102 signed into law by the then US President Franklin D Roosevelt was almost 90 years ago.
Can you believe it. Here we go once again.
Once the government was satisfied that most former citizens gold holdings were in their hands, what do you think they did with it all?
They increased gold’s price on a per ounce basis to increase inflation levels!
Then allowed those same citizens to buy it back, should they choose, at the new inflated prices.
Fast forward to today, and the worlds markets already know that the government can do this to gold.
It has, to use a market term, ‘priced in’ this fact.
However, the market did not ‘price in’ the government confiscating its own citizens crypto portfolios?
This was a severe shock to the system, one not anticipated, and thus saw prices falling dramatically.
Do you think those same truck drivers, if indeed they did own any crypto themselves, will ever have them returned?
What precedent has now been set here?
It’s unconscionable that this could occur to people simply enacting their democratic right to protest.
I mean, what was ‘really’ at stake here? You can’t just fly the vaccines into Canada over the closed borders?
Folks, we need to do something. And we can.
To really understand these issues, I recommend a membership to the Boom Bust Bulletin.
It will teach you the history of the 18.6-year Real Estate Cycle, why it repeats to this day and, should you wish, guide you to the opportunities that the cycle presents as it turns.
Once you see and understand for yourself what we have allowed governments to turn our society into, the sooner we can clamour for change.
The right change.
The Boom Bust Bulletincan teach you this.
All for just $4USD a month. That’s incredible value right there.
It’s time to forge a new way forward for yourself and your family.
Sign up now.
Best wishes,
Darren J Wilson
and your Property Sharemarket Economics Team
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This content is not personal or general advice. If you are in doubt as to how to apply or even should be applying the content in this document to your own personal situation, we recommend you seek professional financial advice. Feel free to forward this email to any other person whom you think should read it.