The Eternal Relationship Between Gold And Global Crisis

Friday, February 7, 2020
By Paul Martin

Brandon Smith
Friday, 07 February

Though it is often referred to by critics and elitist central bankers as a “barbaric relic”, there is no denying that gold is usually the go-to asset during times of crisis and uncertainty. And as much as they pretend to hate it, even the elites secretly stock the precious metal whenever the economy goes awry. In fact, you can almost predict when things will go bad simply by watching how much gold central banks around the globe stockpile in a particular year.

As noted in my last article, the banking establishment is often privy to impending disasters, usually because they directly participate in creating them. This is why they always seem to know when to prepare and hedge their assets to weather the storm. Gold is the hedge of choice because it is tangible, naturally rare, and cannot be artificially recreated or cloned. Governments and banks always seek to hoard gold when instability erupts because it not only shields their assets from decline, but it also shields their position of power.

In a world where the majority of the population is on the verge of poverty, those with an unbreakable economic position backed by hard assets tend to accumulate even more assets for pennies on the dollar, not to mention more political and social control. As the wealth gap grows wider, so does the power gap. It’s not that the elites have a personal use for all of these assets, they just don’t want YOU to have them.

Why? Because as hard assets and personal wealth are vacuumed up by the banks, they remove the concept of private property from the public consciousness, and thus, they destroy your independence. Pretty soon, the next generation has no idea what it means to own land, a home, commodities or precious metals. Eventually, they are living in a “shared economy” where they feel lucky just to have a pod apartment, Wi-Fi and close access to public transit. The idea of building a home of their own for their children and grandchildren is lost. They may not ever start a family because of this. They are beholden to the state for everything.

As mentioned, the central bank pattern of wealth protection and then wealth usurpation is evident in their moves to scoop up gold at the perfect time just before crisis. We can also see that in most cases, after the gold standard was slowly removed and regardless of the crisis, gold prices tend to spike. In other words, most crisis events show central bank gold reserves jumping just before they happen, and prices on gold rally dramatically in response.

For example, in 1913 (the initial birth year of the Federal Reserve), central banks in multiple nations bought up gold at an accelerated pace leading up to the Crash of 1914, World War I, and into the Spanish Flu epidemic of 1918-1920. The U.S. added around 650 tons of gold to its reserves in 1913, then another thousand tons from 1915 to 1920.

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