Remonification of gold is a given.

Many articles like this one have come out this year about the de facto re-monification of gold but few of the rank and file have any clue what is going on or what it means.  Allow me to simplify.  The global money powers have been running a decades-long con which is now into the collapse phase.  In essence, the con men fooled people into thinking something other than gold and silver was money.  People believed it because it was convenient to do so and because they were ignorant of the consequences.  Money is power.  Someone has to be the leader in our society, right?  Smart, hard- working people should have the power and they should be the leaders because they are the energy source of progress for man.

But when fake money that you didn't have to earn is treated like real money that you did have to earn through smart, hard labor, power is siphoned away from those who actually deserve it and who would use it to better our species.  The power instead goes to con men and narcissistic sociopaths who think only  of themselves.  The result is society in decay.  Look around to see the result.  Of course, this is an unnatural situation and thus guaranteed to fail in the long run.  The long run is now upon us folks.  Anyone with eyes to see should look at the EU, recognize it as a marginal player in the fiat currency game and use its obviously impending demise as a warning that the whole global scam of fiat currency and fractional reserve banking is going bust.

It's very important to know who the marginal players are because in any collapse the marginal players are hit the first and the worst.  When you see them stumble it is always wise to treat them as canaries in the coal mine.  Smart miners have been using this device for centuries to know when they are in danger from gas (methane or carbon monoxide).  They don't look at the dying birds and think "OK, this kill-off is just happening to them, it will be different with me".  Instead they recognize that they are in the same sheep dip as the birds but only bigger and stronger which is why the miners haven't died (yet).  But they don't delude themselves about their strength; they know they will eventually keel over if they don't take prompt action.  In short, watch the marginal players for signs of ill health and when they look sick, take action.

Global bankers know that the coal miners are on to something with their canary strategy.  The bankers have been running a scam.  They know it's a scam.  They know how it works and the impending collapse of the EU tells them it is at great risk of coming to an end.  All this time they have been telling us that gold is for fools, that gold doesn't earn any income, that gold and a gold standard are "barbarous relics".  Such propaganda has been coming from people who wield power they did not earn.  They conjured up their credentials from thin air simply by printing up money and then leveraging endless credit on top of it.  But now that their fake money scam is collapsing they are scrambling to make sure they have gold on hand because it is the only thing that people will trust after the collapse of the fake money system goes global.

The global moneymen are transitioning back to gold in as organized a manner as possible.  First, they  stopped selling gold.  Then they recently became net buyers.  Now, the Basel III rules are indicating that gold will be returned to its rightful place as money and that for the purposes of lending it will be weighted at 100% of its market value as a tier 1 asset the same way government bonds and cash are today.  Currently, gold is treated as a risky tier 3 asset which only allows 50% of its value to be used as a backstop for making loans.

So banks are accumulating gold right now on the sneak.  As the gold price creeps up the bankers and financial elite tell us, "Nothing to see here, move along...".  Most people ignore it.  Unfortunately, most people will also get screwed because of it.  Why?  Because banks are accumulating gold right now while only 50% of its value can be used to backstop loans.  But one day, when the Bank for International Settlements (BIS) deems it is ready, it will change the rules so that gold is tier 1 capital with 100% of its value available to be used for making loans.  That means that any banks that are loaded with gold will see their ability to loan against that gold double.  Banks historically are allowed to loan at a ratio of about 10:1.  Most banks are far beyond that today because of "sweeps" rules implemented by the great con man Greenspan.  Thus, doubling the weighting of gold as a reserve against loans does far more for banks than to simply double their ability to loan.  It is in effect a back door way of recapitalizing dying banks.  That means more banks making loans and thus more credit inflation in the future leading to higher prices for fuel, food, clothing, etc.  In other words, a sneaky fleecing of the people.

Keep in mind that the vast majority of "money" in the global economy is not money at all but rather credit/debt.  Debt outweighs money by at least 10:1 in the economy and probably more like 30:1.  Debt is a faaaaar bigger driver of inflation than caused directly by Bernanke's money printing.  This is why he has tripled the monetary base over the past few years without tripling the price of everything in the economy.  This is the scam of fractional reserve banking.  Fiat currency is what you hear most of the newly awakening people complain about but fractional reserve banking is what really enables boom and bust bubble economies that are never without drama, pain, personal uncertainty and personal strife.

In case you didn't get the important parts of the con, I'll restate them:  Bankers have fooled people into thinking gold is not money but instead a risky asset.  That has kept demand for gold very low among individual savers.  VERY few people own any gold.  This is allowing bankers to load up on real money (gold) very cheaply by trading in their fake dollars for it just when the fiat currency scam is collapsing globally.  By the time that people at large figure out that they should have been keeping their retirement wealth in gold, the price will have climbed to the moon.

This little "do as I say and not as I do" deception would not be possible if gold was already treated as a tier 1 asset!  In that case, everyone would have been fighting each other for it all along and it would have gotten the attention of the common man that it deserves.  But as a 50% weighted reserve asset, government bonds seem a better deal, especially to banks who make money by making loans.  This sent a signal to everyone else to not care about gold as well.  I hope you can see how we are being set up here.  Today every leveraged bank/hedge fund/401k program/pension plan wants government bonds because they are treated like 100% tier 1 assets, same as cash and nobody wants gold because you only get accounting credit for half the money you spent on it to use as a backing for more loans (if you are a bank or margin bets if you are a hedge fund or pension fund manager).  Pay 100% of the cost of the reserve asset but only getting credit for 50% of it when trying to use leverage is a crappy deal for leveraged gamblers.  It was set up like that on purpose in order to convince people who know better to back loans and leveraged bets with collateral in the form of government bonds and government colored paper (aka dollars) instead of with real money (gold).

Those banks and other money institutions that load up on gold here while gold is still only treated as a 50% reserve asset will be able to wield huge amounts of leverage.  That means they will get rich because leverage is the fuel that drives income for moneymen.  US government bonds are at all-time lows in terms of yield which means they are near all-time highs in terms of valuation.  But when the yield starts to go up - that is, when interest rates begin to climb again, the market value of the bonds will go down which means that the amount of reserve capital banks that are holding them will go down.  This will be a crisis for many banks that only hold bonds because it means they can actually go bankrupt simply because the bonds go down in value.  Why?  Because in normal times banks must prove they have enough reserves to back their loans and if they don't then the FDIC can waltz in and put the bank into receivership.

So at this point there is pretty much no place for bonds to go sometime in the future except down and bankers will need some other reserve asset lest they all go bankrupt.  The con men see this shift coming and they are trying to get ahead of the curve.  The transition of gold from a 50% weighted asset to a 100% weighted tier 1 asset will be the de facto re-monification of gold and I would not want my retirement money to be in cash or bonds when that occurs.