1971 redux is happening right now.

In the past few years there have been stories about countries repatriating their gold.  As if by some signal only heard by the money elite, the likes of Saudi Arabia, Venezuela and most recently Germany have been repatriating their gold.  Something is afoot here and it's happening right under the noses of the sleepy sheeple who simply do not have a clue about the implications of the collapsing global debt Ponzi.  If you want to take the red pill, read on.

It is a matter of recorded history that in the late 60s, the world began to suspect that the US did not have enough gold to back all the money it was printing in order for its citizens to live well AND have a couple major foreign wars of aggression AND play around with space exploration. So other countries began repatriating their gold which was on loan to the US.   At that time, the loans were tracked by markers called USD.   For each 35 USD ($35) held by the lender, the US government was supposed to have 1 oz pure gold in storage and ready to trade for the markers on demand. After it became clear that gold lenders had gotten wise to the fact that the US didn't really have the gold and that they were not going to stop in their requests for repatriation, Nixon simply stopped trading markers for metal. This was done on August 15, 1971.  It was better than saying "we don't have your gold".  It was also the largest economic default in the history of man to date.

The current ongoing repatriation activity is a 1971 redux; it's deja vu all over again.  Only a moron thinks it will be different this time.  Like before, idiots trusted corrupt US government to hold their gold.   And just like before, they took markers for it in the form of accounting slips.   The gold has been loaned out 20 ways from Sunday and there is no longer enough gold to return to all those with a rightful claim. The US is effectively running a fractional reserve Ponzi scheme on the world's gold. The purpose of this is to keep gold's dollar based valuation down because gold is the only thing on the planet that can believably call the US dollar a fraud.  I say again, the US has been "naked shorting" gold in a major way by lending it out to others.  Since the gold never actually moves from the US government vaults, all of this lending is done using paper or electronic markers for the gold.  This allows the government to lend out a lot more gold than it actually has on hand.  This is an old game which has been played many times through out history.  It is effectively a trust based Ponzi scheme.

All Ponzis eventually collapse when the suckers try to pull their holdings out en masse. Why do you think Germany is trying to pull their gold back home so carefully? Why only 50 tonnes per annum "for inspection"?  It's clearly being done so as to not spook the other suckers into pulling their gold out. Germany is trying to sneak out the back door of the Ponzi so that others will get stuck holding an empty bag.  If everyone tries to exit at once, the US government will simply make up some rule out of thin air stating that repatriation is not legal, etc. just like it did in 1971.  I can already hear them and I can already read the headlines that the government controlled media will spew:  "Any attempt to remove gold from the US is an act of economic terrorism and will dealt with harshly".

How do I know this?  Because it's what I would do if I were one of the corrupt con men running the show.  It's simply obvious if you really understand the scam that is being perpetrated by the corrupt system of fiat currency and fractional reserve lending.  As usual, in times of crisis possession is 9/10ths of the law.  The US has a strong military which it will use against anyone who tries to take their gold back by force.  It will either lead to WW3 or it will lead to some new kind of monetary system but either way gold is going to be a major part of the future because every sovereign nation obviously knows that gold is the only honest money on the planet.

At the end of the day, the US economic hegemony is no longer backed by faith and trust but by fear of the US military.  These things never last forever because they are dishonest.  Nuclear weapons are the great equalizer which is why the likes of Iran are so keen to develop them.  Ever notice how the US pretty much leaves N. Korea alone?  Gee, could it be out of respect for their nuclear capability?  At the end of the day, might still makes right on this misguided planet.