Gold Wars: Battle for the Global Economy addresses the grotesque,
growing and unsustainable imbalances in the financial system. As gold is
the barometer of systemic ills, a war on gold–to drive down its price—is
taking place to hide the negative impacts of fiat currency, shadow banking
and central banking on the global financial system.
Starting with an introductory discussion on the nature of money and the
bizarre fractional reserve structure currently in place, Mitchell moves on to
address the massive, but little known systemic pivot point: the Petrodollar
standard. Tying dollars to oil, this mechanism undergirds the dollar’s
reserve status. But soon it will fail with paradigm shifting consequences.
Next, Mitchell addresses the twins of shadow banking and central banking
(with a quick interlude to look at the traits of physical gold). Then, with the
stage set and the distortions, corruptions and levers of power in better view,
he examines a few historical precedents and likely outcomes through
deflationary/inflationary effects and their combinations.
Gold Wars features a detailed breakdown of the gross manipulations in the
gold market - from nonexistent paper gold, smackdowns, high-frequency
trading, and ETF’s to Central Bank games like swapping/leasing, shell
accounting, midnight raids, clandestine gold movements and regulatory
attacks on investors. Mitchell offers a prediction of the results for the gold
market: when the manipulation fails, paper and physical prices will separate,
with the physical selling for multiples of paper.
Similarly silver, with its own unique characteristics for industry and
investment, is also targeted as a potential refuge for flight from paper,
though strangely, above-ground gold is now more plentiful than silver. Add
to this a silver short position rolling from one institution to another as each
fails, a 4-year foot dragging investigation into market fraud, and a class
action suit for manipulation and the market has a recipe for a pressure
cooker at maximum.
Western banks, lacking the gold to cover their obligations, will eventually
declare a force majeure—an event supposedly the result of the elements of
nature, as opposed to one caused by human behavior—as a pretext for
settling their obligations in increasingly valueless paper.
Where is the resistance to this distortion and corruption of value? Power is
flowing East as China and Russia have drawn in massive amounts of gold
while denying the inflow. The BRICS will unveil a gold backed trade note to
supplant the dollar. Simultaneously, they will force the US debt back home
in exchange for real assets, choking the Fed/Treasury on the mountain of
paper, and grabbing the financial power. This momentous shift is already
What is to be done? Some radical solutions are examined to reset the
imbalances of the current system. Money issued directly by the Treasury
instead of the government would have no debt component, clearing up
numerous imbalances, ending the need for an income tax, and restoring
control of money to the people. A Resource Based Economy would end
capitalism, instead focusing on natural resources as common human
heritage. Emphasizing efficiencies, open-source knowledge, and completely
free goods and services, an RBA would restructure civilization at the root
level. Resource waste for profit, wealth inequalities, poverty, and monetary
control of governance would end.