The Tree has been Cut – Electronic Money Will Force an Underground Economy based on Barter

QUESTION: 

Martin,

I’m trying to wrap my head around a couple of things…

One of your recent blog entries mentioned, “The role of the metals will be as an alternative currency to ELECTRONIC when they terminate “printing” paper money,” and “The only real role for gold will be as an alternative currency not to the paper dollar – but to the electronic dollar. What maybe more practical is silver coins.”

I’m trying to wrap my head around what this will mean for:

1. the mining companies and even exploration companies

2. the price of gold in the future (3qtr 2015 and beyond).  It would seem all “bars” would be pointless at that point but also why wouldn’t governments just say it was illegal to own or use in transactions.  And if you have to purchase gold or silver coins using electronic money, everything will be trackable.

Thank you,

S

ProstituteToken

ANSWER: I agree that perhaps silver coins will be better for they will provide the small change for everyday transactions. But we have to understand that moving to an ELECTRONIC currency is extremely drastic and profound with a ripple effect that may be off the charts. This will eliminate panhandlers unless they carry a machine to accept credit cards. This will have a profound impact upon all illegal activity from drugs, guns, to gambling and prostitution. Perhaps private tokens will resurface like the ancient Roman Prostitute Tokens when there was a shortage of money. You can bet every law-enforcement agency is keenly behind this move to electronic money because they can track everything and the taxman jumpith for joy.

proposal8

The logical solution will be the ONLY real role for precious metals to become an alternative currency accepted more widely among the population. Why? Because they will sell this idea of electronic money to Europe and everyone else as well in order for it to work. There cannot be paper currency from Canada, for that will begin to circulate in the US black market just as dollars flooded Russia and China.

Diamonds

People do not realize but diamonds have started to emerge as an alternative form of money. Why? You can transport it without the scanners picking up the cash with the metal strips in them, and they do not set off the metal detectors as precious metals. This trend of diamonds starting to substitute as money demonstrates the BARTER economy is not far behind.

The ONLY thing will be BARTER. That is where precious metals in some recognizable form becomes practical. Do not expect hyperinflation or some other nonsense. The sales pitches by the Gold Promoters are no different today from what they said for 19 years in a bear market. It is always just gold being manipulated so they do not have admit they have been full of shit. History is by no means in support of ANY of their claims.

Tree Has Been Cut

The tree has been cut. The only question remains will it fall to the left, where we retain some sense of human rights,  or will it fall to the right where we are headed into complete authoritarianism as Germany did accepting Hitler following the Hyperinflation. So far, the NSA and other agencies are clearly demonstrating we are headed into authoritarianism with great speed. Will human rights fade for 52 years? We are fighting for the future of our children.