This Is – by Far – the Biggest Threat to Your Investments

investmants

Have you ever noticed that nearly all the world’s surplus rests on Wall Street… or maybe in the City of London? I think this is something we should pay attention to.

So, let’s face it directly for a moment: All the big investment markets are owned and controlled by the Western aristocracy: by politicians, high officials, mega-corps and deep-state operators. These people are fully in control of the markets; they can close them anytime they like.

And in fact stock and bond markets are closed, and fairly often. NASDAQ has closed repetitively for technical reasons, all the New York markets closed for Hurricane Sandy, and nearly every market was closed after 9/11. The markets reopened each time of course, but only because it was in the best interest of the aristocracy. They didn’t have to reopen them. These people were – and are – in control.

This being the case, I’d like to familiarize you with two words that you have rarely heard but which are likely to be heard far and wide some day: Systemic Risk. Wikipedia defines systemic risk as “the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system….”

My point is this: Your most serious risk is not from the failure of a single stock or even a group of stocks, but a closure of the market itself.

“They’d Never Do That!”

Of course they would… and of course they have.

Don’t we remember what they did to Cyprus, just a few years ago? Haven’t we seen their current campaign to ban cash? Didn’t we see them save the institutions they owned in 2008, selling average folks down the river? And there’s more, including the US Treasury holding meetings on taking control of IRAs and 401(k)s and the IFM discussing “financial repression.”

The truth is that the Western aristocracy does what’s best for the Western aristocracy. If that means keeping the status quo going, that’s what they’ll do. If it means turning the status quo off, they’ll do that. Shutting it down would be a big and risky step for them of course, but if they face a near-certain loss of control otherwise, you can bet that they’ll do just that.

“Oh TINA, Thou Art a Heartless Bitch”

With due credit to William Shakespeare, TINA – There Is No Alternative – may end up being the most heartless wealth-destroyer in history. Why? Because of everything noted above and because of this:

Anyone who has examined the current situation knows that the markets should have tanked years ago and have been held up with massive currency injections from the central banks. They know that the system would crumble if any serious portion of that was pulled out or even if interest rates reverted to the mean.

And yet, people stay right where they are, smack in the middle of the risk zone. And why? Because there is no alternative. Where else can they put a million dollars or a few million euros? How many of us even have savings accounts anymore? With interest rates hovering around zero, they make no sense.

There are options of course, but they all involve extra work. Dump your money into the stock and bond markets, and you can move it from place to place with the click of a mouse; you can get instant charts and graphs; and of course you get crisp, clean accountings of everything. All is clear, all is simplified, all is easy.

And so, 99% of the world’s surplus has fallen into fully undiversified investments: Regardless of ‘market sectors,’ they all stay in the same big pot, controlled by an aristocracy that nearly all of us either distrust or despise.

This, at least in my view, is not a good plan.

But… TINA!

Yes, there are alternatives, but they involve work. Moreover, they also involve us taking responsibility for our failures. And let’s be honest about that too: Having investments ‘in the market’ means that you can blame any number of things for your losses, rather than taking blame yourself.

One option is to invest on Main Street… in a local business. Truthfully, that kind of investing can be far more personally rewarding, but it certainly isn’t sanitized and sanctified by authority like Wall Street is. If you invest in a dry cleaner that fails, your authority-minded ‘friends’ might ridicule you; if your Apple stock crashes, it’s merely “bad luck.”

But while investing on Main Street isn’t point-and-click easy, it’s far more diversified. And it gives you some personal control over your investments. If, for example, the dry cleaner or the grocer you funded is having problems, you can get involved, rather than watching helplessly from the sidelines.

So…?

So, we face choices. My point is that closing your eyes to your greatest risk – merely because it has an “Approved by Authority” banner draped across it – is a foolish thing to do.

* * * * *

If you’ve enjoyed Free-Man’s Perspective or A Lodging of Wayfaring Men, you’re going to love Paul Rosenberg’s new novel, The Breaking Dawn.

It begins with an attack that crashes the investment markets, brings down economic systems, and divides the world. One part is dominated by mass surveillance and massive data systems: clean cities and empty minds… where everything is assured and everything is ordered. The other part is abandoned, without services, with limited communications, and shoved 50 years behind the times… but where human minds are left to find their own bearings.

You may never look at life the same way again.

Get it now at Amazon ($18.95) or on Kindle: ($5.99)

TheBreakingDawn

* * * * *

Paul Rosenberg
www.freemansperspective.com

13 thoughts on “This Is – by Far – the Biggest Threat to Your Investments”

  1. Dear Paul,
    I think that you are a brilliant analyst and an articulate communicator. There is no doubt in my mind that the world is a better place because of your considerable efforts. I would like to make a few comments about Wall Street in general and precious metals in particular. Let there absolutely no mistake about – Wall Street and all of their markets are a fraud, a scam, a rigged game, and a Ponzi Scheme!
    As you well know, in the case of gold and most other precious metals, when anyone wants to buy or sell them the first thing that they do is consult the COMEX “spot price”. This has become an automatic Pavlovian response that nobody bothers to consider or analyze. Everyone just assumes that this is the free market price of these commodities. So let’s take just a minute to analyze it. What is the COMEX? It is a subsidiary of the CME Group, which is a private corporation that is mainly concerned about making a profit just like any other business in a capitalist economic system, and especially in a the predatory, corporate fascist system that now prevails in America where fraud, deceit, theft, and murder are perfectly acceptable in the pursuit of profit!
    For some incredible reason, the COMEX has been given the unchallenged and unregulated power to publish the prices of many commodities under the guise that they are just publishing the price that has been established in the free market for these commodities. Gosh and golly gee whiz Toto, giving a private corporation the carte blanche, unmonitored power to publish the price of gold, or any other commodity, what could possibly go wrong with that?!!!
    So exactly how do they arrive at the price of gold? While everyone would like to believe that this price is the result of a complex and delicate ballet of free market forces, this is nothing more than a naïve and gullible fantasy! I have absolutely no doubt that the electronic system that publishes the commodity prices for all to see is connected to some secret computer terminal in an office at the COMEX where some executive can arbitrarily enter into this terminal whatever “spot price” that he chooses anytime he chooses! Anyone who chooses to ignore this probability is a naïve and gullible dupe, who lives in their own selfish fantasy world and who doesn’t want to know, or care to know, how the real world works!
    The person, who had the ability to set the price of gold, would possess tremendous power – don’t you agree? This person could simply buy gold, or any other commodity, at one price, then set the price higher; then sell their gold or other commodity for a tidy profit – and vice versa – ad infinitum! There would be absolutely no way for anyone to verify that the price of gold was indeed being manipulated unless the manipulator came forward and confessed to the crime, and backed up his/her confession with hard evidence. I seriously doubt that this person would ever come forward – why should they?! Is anyone naïve and gullible enough to think that they would? And, if this manipulator did confess for some mind-boggling reason, they would not be alive for long! Too many insiders would stand to lose too much profit! This spot price manipulation crime is so gigantic that the average investor cannot allow themselves to accept it because it would shatter their entire world! Isn’t that exactly why you refuse to accept it – or even seriously consider it?!
    There can be absolutely no doubt that a market, where all of the participants look to only one source to for the price of gold or any other stock or commodity, is not a free market in any way shape or form – not even close! In a truly free market the price of any good or service is determined between the buyer and the seller at the time of their transaction, and the price will vary depending upon the conditions at that time. For instance the price of a gallon of water will cost much less when purchased in a free market with many competing vendors, than it will cost a person who is dying of thirst in a desert where there is only one vendor! The COMEX spot price for gold and other commodities does not reflect the free market price – it reflects the COMEX price objectives in order to make a tidy profit!
    And there is absolutely no way that anyone could possibly monitor or calculate the millions of transactions that occur for any particular commodity, including and especially gold! If the COMEX price of gold is arbitrarily determined by someone within the COMEX, and I think that it obviously is, then it would take a mind reader to accurately determine which direction the price of gold will actually take, and we all know that this is not currently possible. So any forecast about the price of gold is a pure speculation that has a 50% chance of being correct!
    Because the COMEX has the power to arbitrarily publish whatever commodity price that suits their fancy, there is absolutely be no possible way for anyone but the COMEX executive, who arbitrarily enters the commodity prices into his computer terminal, to accurately predict the future price of gold! And consider for just a moment what sort of advantage that the power to arbitrarily set the price of gold would give those who had that power! That advantage is staggering in its financial implications! This advantage is worth billions, if not trillions, of dollars!
    Let’s face the facts, anyone, who doesn’t believe that all human beings are corruptible, is not living in the real world! Every one of us has a price that we will accept to cross over to the dark side; and anyone who doesn’t think that the billions of dollars which can be made from manipulating the price of gold or other commodities is enough to corrupt the vast majority of people, then that naïve and gullible person doesn’t have a clue how the real world works or how human beings operate when given the opportunity!
    Those who choose to summarily disregard my message have been corrupted by an industry that is full of corrupt people who are manipulating the indicators that they rely upon to make their economic forecasts. They choose to ignore my message because, if they accepted the truth, their point-of-view and all of their forecasts would be fundamentally flawed for the past forty years, and so rather than to admit that they have been deceived, they choose to ignore and perpetuate the fraud so that they can protect their precious image and continue to sell their newsletters, and/or live in their pleasant delusion! Shame on them!
    So I wish them good luck on their gold price predictions, they have a 50% chance of being correct! If they get lucky, they will be a genius – if not, they will be a fool for about six months then nobody will remember what they predicted and they can do it all over again! But whatever happens, their forecasts will always be based upon luck – not brilliant analysis. Let’s finally admit that the system which sets the prices of most commodities and stocks is a rigged game – it is a fraud, it’s a con, and it’s a scam! In fact, all of Wall Street is a complete and total confidence game that rigs whatever prices that the power clique desires. It makes Bernie Madoff look like a sweet, innocent, altar boy! We have already accepted that government is a fraud that is secretly controlled by the “Deep State”; why is it such a stretch to accept the fact that the entire financial system is also an empire of lies, illusions, scams, and fraud? Thank you very much for your kind attention.
    All the best to you and yours,
    Steve

      1. I have spent years thinking about this problem and I keep arriving at the same “solution”. I put solution in quotes because nothing is certain in this life. Even our best laid plans can be destroyed by some random force, which we could not foresee and/or over which we have no control. But it seems to me that self-sufficiency is the only way that we as individuals can have any hope of surviving the tumultuous days that lie ahead. You mention “land” and “water”. I believe that this is definitely part of the solution. It is obvious to me that tools, the ability to use them, enough land to achieve self-sufficiency, and a little bit of luck will be the only way to survive as free-thinking individuals! The mighty force that put us on this earth originally gave us all that we needed to be self-sufficient, but five generations of Americans have conveniently allowed themselves to follow a clever clique of silver-tongued sociopaths, who can sell ice to Eskimos and sand to Arabs, out into a “civilized” jungle in which we are all lost and have very little chance of returning to reality! Most of us do not have the ability to become self-sufficient even if we wanted to and most of us would rather follow the silver-tongued sociopaths to the bitter end! Becoming self-sufficient takes years of learning and preparation. Unfortunately most of us just don’t have the time! I wish all of the true human beings on this earth the best of luck because we are going to need it!
        All the best,
        Steve

        1. Thank you for the reply. Along those lines, Joel Salatin and the Polyface Farm model seem very interesting. He is likely well positioned to weather the storm and his model also allows time for folks to engage in intellectual and educational pursuits, which is very important. Best to you too.

  2. Paul I concur here with Steve. I think that you are a brilliant analyst and an articulate communicator.
    There is no doubt in my mind that the world is a better place because
    of your considerable efforts.I’m also looking forward to reading your latest book. Now for Steve. I’ve read your many paragraphs here and you seemingly said the same thing over and over again. OK, it’s rigged….We all know that, but what else can anyone do??? What do you do with your money? How do you invest it? Where do you invest it? If your not part of the system then that means you do absolutely nothing. In your case I think you should by precious metals. And I think you are way off on that 50% guessing number. Nuff said. D

    1. Hi Dana,
      Thanks for your point of view. I value it greatly. Only through honest discussion can the truth be found. Please forgive me if my repetitive paragraphs annoyed or offended you. That certainly was not my intention. I am not a professional writer. I am just doing my best to articulate my sincere thoughts and feelings. It was my sole intention to reveal the truth, if anyone is annoyed or offended by the truth, then that is their problem. I am not going to apologize for that! Reality is what it is and all the optimistic fantasizing in the world is not going to change reality! So what is reality?
      In order to better understand my point of view you need to understand that I was a combat helicopter pilot in the Vietnam War. I got shot down five times and I watched my friends die horrible deaths. It soon became obvious to me that there was a “military/industrial/political complex,otherwise known as the “Deep State”, that was making a tidy profit sending naive and trusting young men to be ground up in the gears of their war machine. I am outraged about what the Deep State has done and what it is doing to our beautiful country.
      I became a “Gold Bug” in 1975 when gold was once again made legal for people to buy and sell. For decades I have intently watched as the price of gold rose and fell, and I listened to all the “gold guru’s” reasons for gold’s price movements. Some of the brightest minds in the business tried to predict the price of gold and all of them failed! There is only one explanation for this phenomenon – the gold price does not respond to free market dynamics because it is not a free market!
      Anyone who thinks that people will clamor to buy gold and use it as a medium of exchange in an economic crisis, is not looking at reality. Look at the economies that have crashed. Look at Greece, Argentina, Venezuela, Cuba, the Soviet Union, China, etc, etc, etc. There is/was no rush by ordinary people to buy gold and use it in their daily lives. And even if there was such a rush, the gold price would still be controlled by the Deep State and not free market forces. If you investigate this you will find that gold has been prohibited or very tightly controlled by the governments of those countries that are in economic chaos!
      Whether you like it or not, true power comes out of the barrel of a gun. You need to understand the true nature of the Deep State. They have constructed a very well coordinated hierarchy and they have the guns and the obedient goons who will do whatever they are told to do by the Deep State – even steal and murder – if it is.necessary to accomplish their goals. Paul hit the nail on the head. The Deep State is determined to have their way no matter what it takes. If it suits their purpose to allow people to buy and sell gold – they will allow it. And if it suits their purpose to outlaw gold and confiscate the gold that exists in private hands – they will do that also. Just take a casual glance at history!
      Five generations have naively and trustingly created this monster called the Deep State and now the monster is loose whether you or anyone else likes it or not! And nothing or nobody is going to stop this monster until it eventually destroys itself! Please take an honest look at history. the future is all there! Thanks for your attention.
      All the best,
      Steve

    2. Here is one more thought-provoking fact for all of us die-hard gold bugs to contemplate. The average price of one ounce of gold in 1975, which was the first year that gold was allowed to be bought and sold by private individuals, was $160 per ounce. The average price of of gold in 2015 was $1,060. So if you had purchased 100 ounces of gold in 1975 it would have cost you $16,000. And if you held that gold for 40 years and then sold those 100 ounces in 2015 you would have received $106,000 for your 100 ounces of gold. Looks very impressive on the surface! However a 1975 dollar is now only worth 22 cents. So your $106,000 2015 dollars is really only worth $23,320 in 1975 dollars. So in the 40 years that you held your 100 ounces of gold you made a total profit of $7,320 or $183 per year over 40 years. This works out to an interest rate of 1.14% per year. Only an idiot would believe that this was a great investment! Please forgive my brutal honesty. Meanwhile the Deep State has made trillions of dollars by frequently manipulating the gold market a little bit at a time! This is why they allow regular folks like us to buy and sell gold or any other precious metal for that matter! If gold ever did go to $10,000 per ounce like some “gold gurus” predict, it would be a windfall for the deep state and I can absolutely guarantee that the gold and its profits for regular folks would be taxed and/or confiscated so that we never enjoyed those amazing profits. Five generations of Americans have naively and stupidly given all of their power and freedom to the Deep State. Whether or not anyone chooses to accept this reality, at this point in the evolution of this gigantic “slow motion train wreck” Americans, who choose to stay in Amerika, have two choices – comply or die! This is the legacy that the cowards, who conveniently imagine themselves to be men, have so selfishly inflicted upon their trusting descendants! Good job selfish cowards! Thank you so much for loving us enough to protect and defend our inalienable rights! Anyone who wants to know where America is heading only needs to take an unbiased look at Nazi Germany or the Soviet Union. May God or some other higher power help us now! If you disagree with me, please challenge my position with verifiable facts, your righteous indignation or “red, white and blue fantasies” prove nothing! Thank you for your kind attention. As hard as it is to believe, I sincerely wish only the best for you and yours.
      Sincerely yours,
      Steve

      1. I confess that I made a big mistake in my previous gold profit calculation. The average price of gold was $160 in 1975. The average price of gold in 2015 was $1,060 per ounce. So if you had purchased 100 ounces of gold in 1975 it would have cost you $16,000. And if you held that gold for 40 years and then sold those 100 ounces in 2015 you would have received $106,000 for your 100 ounces of gold. This looks very impressive on the surface! However, because of inflation, a 2015 dollar is now only worth 22 cents when compared to the purchasing power of a 1975 dollar. So you effectively received only $23,320 (106,000 times .22) for your 100 ounces of gold in 2015! However you would have to pay a 28% capital gains tax on the gain of this gold in 2015 dollars. Your capital gain was $90,000 ($106,000 minus $16,000) times 28% equals $25,200. Your effective gold profit was $23,320 in 2015 dollars, so you lost $1,880 ($23,320 minus $25,200) after tying up $16,000 for 40 years! This is not what I call a great investment!
        Whether we like it or not, the guys with the guns ALWAYS make the rules! In a confrontation between a guy with a gun and a guy with 100 ounces of gold, or anything else for that matter, the guy with the gun will always have his way! For those of us who want to live our little lives as we choose as long as we don’t prevent anyone else from doing the same – there are only two options. We can hunker down while the Deep State slowly destroys itself and causes indescribable pain and suffering for millions of American human beings, and hope that we don’t get “disappeared” for one reason or another; or we can exercise our God given right to defend ourselves against a group of ruthless predators, like the brilliant Founding Fathers of this beautiful country did 240 years ago. This would only take one percent of the population, but I seriously doubt that there are that many Americans who have this kind of dedication and passion. We are too spoiled, too preoccupied, too complacent, too selfish, too timid, and too pathetic to defend ourselves. Consequently, we do not deserve to be free! Get ready to spend hours patiently and obediently standing in long lines in the hope of buying a few scraps of food in order to survive for just another day! Just take a close look at what is happening in Venezuela. Good luck to all of us!
        All the best,
        Steve

    3. Sorry, I posted this message in the wrong place. I confess that I made a big mistake in my previous gold profit calculation. The average price of gold was $160 in 1975. The average price of gold in 2015 was $1,060 per ounce. So if you had purchased 100 ounces of gold in 1975 it would have cost you $16,000. And if you held that gold for 40 years and then sold those 100 ounces in 2015 you would have received $106,000 for your 100 ounces of gold. This looks very impressive on the surface! However, because of inflation, a 2015 dollar is now only worth 22 cents when compared to the purchasing power of a 1975 dollar. So you effectively received only $23,320 (106,000 times .22) for your 100 ounces of gold in 2015! However you would have to pay a 28% capital gains tax on the gain of this gold in 2015 dollars. Your capital gain was $90,000 ($106,000 minus $16,000) times 28% equals $25,200. Your effective gold profit was $23,320 in 2015 dollars, so you lost $1,880 ($23,320 minus $25,200) after tying up $16,000 for 40 years! This is not what I call a great investment!
      Whether we like it or not, the guys with the guns ALWAYS make the rules! In a confrontation between a guy with a gun and a guy with 100 ounces of gold, or anything else for that matter, the guy with the gun will always have his way! For those of us who want to live our little lives as we choose as long as we don’t prevent anyone else from doing the same – there are only two options. We can hunker down while the Deep State slowly destroys itself and causes indescribable pain and suffering for millions of American human beings, and hope that we don’t get “disappeared” for one reason or another; or we can exercise our God given right to defend ourselves against a group of ruthless predators, like the brilliant Founding Fathers of this beautiful country did 240 years ago. This would only take one percent of the population, but I seriously doubt that there are that many Americans who have this kind of dedication and passion. We are too spoiled, too preoccupied, too complacent, too selfish, too timid, and too pathetic to defend ourselves. Consequently, we do not deserve to be free! Get ready to spend hours patiently and obediently standing in long lines in the hope of buying a few scraps of food in order to survive for just another day! Just take a close look at what is happening in Venezuela. Good luck to all of us!
      All the best,
      Steve

  3. Interesting thoughts.
    I got out of investing in the stock market several years ago. I came to the realization that the things being sold as “safe investments” were actually much more speculative than they are presented. If I buy $10,000 of stock in a company, I have zero influence on that company. Whether my investment goes up or down is totally dependent on a bunch of Senior VPs I’ve never met, and how good their decisions will be. I am reduced to the sole action of deciding when to sell.
    Part of my new investment criteria is how much direct influence I have on making a return on my investment.

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