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Thursday, December 18, 2014
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Gold-Confiscation Coming To India?

Articles & Blogs - Gold Commentary

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As one of the loudest voices warning of the risks of “bullion confiscation” by our governments; it was no surprise to me to see the Corporate Media singing the virtues of bullion confiscation. What was a surprise is where this “initiative” purportedly originates: India.

Readers who follow the precious metals market are familiar with the dynamics here. Western Sheep choose to hold the bankers’ fraudulent paper currencies – despite our governments openly/explicitly driving the values of those currencies to zero with their “competitive devaluation.” It was this foolhardy mistake which is a major factor behind the greater-than-50% decline in the U.S. standard of living over the past 40 years.

Meanwhile the “peasants” in India (as well as many/most urban residents) do not engage in similar, suicidal behavior. They park their wealth in gold (and silver) bullion – immune to the print-and-dilute theft inherent in every fiat-currency system. It is one of the key reasons why Asian standards of living are rising, while those of the West plummet downward at the fastest rate in history.

In my own naivete, I had assumed that our predatory Western governments would target their own people for bullion confiscation, and look to steal the modest amount of savings of the shrewd minority in our societies who do hold precious metals. But apparently the bankers and Oligarchs have their sights set on a bigger prize: the largest private holdings of bullion in the world, in India.

Let’s be clear that this is obviously a Western proposal, as indicated by the English-speaking “front” organization used to deliver this propaganda. What is the substance of the proposal?

…Households and temples carry about 25,000 metric tons [of gold] and a successful plan to gather at least 10 percent of the gold reserves for lending to jewelers will ensure supplies for three years…

So here we see the modest goal of the Western Oligarchs: harvesting (i.e. confiscating) “at least 10 percent” of Indians’ gold, and to apparently repeat this harvest every three years – since the propagandists putting forth this trial-balloon claim that a 10% harvest would only deal with the supposed “problem” faced by India for three years.

We see further evidence that the entity spewing this banker propaganda is nothing but a Western mouthpiece, as any genuine “Indian” entity would understand that proposing to plunder the gold from India’s religious temples would be an absolute “non-starter” for its ¾ billion population.

Just as phony as the organization itself is the supposed “problem” which this bullion-confiscation scheme claims to address: what it calls India’s “current account deficit.” Here a quick definition is in order for those not conversant with this economic jargon.

A current account deficit (or surplus) represents the flow of “money” into/out of an economy. Just as nations have “trade deficits” (and surpluses), so too it is a necessary proposition of arithmetic that each year there will be some nations with net in-flows of capital, and others with net out-flows.

What is phony here is the lie behind the mythical “current account deficit” of India. As the world’s largest importer of gold bullion, each year India has a large out-flow of the bankers’ bogus paper currencies and a large in-flow of real money: gold. Obviously you cannot have a “current account deficit” (or surplus) in exchanging one form of money for another.


Let’s make no mistake here. The Western banksters themselves (and the Oligarchs they represent) not only consider gold to be “money”, but (as has been the case for 5,000 years) our best money. They recently were forced to elevate gold to the status of a “Tier I” monetary asset, in deference to its superior status to their own, debauched paper.

More importantly, it is these same banksters who require all international gold transfers between banks/governments to be reported and accounted for exactly as they do with their paper currencies. No one thinks of gold as “money” more than Western bankers. Thus the premise that India’s swapping of (bad) paper money for (good) gold money somehow is creating a “currency deficit” is not only wrong, but patently absurd.

There are several other points to note here. Notice that at no point in the Bloomberg article do the propagandists use the word “confiscate”. In the 2,000+ years in which the bankers have been stealing from us (since they originally went by the name “money-changers”), one lesson they have learned is that they are much more successful with their stealing if they scrupulously avoid using the word “steal.”

Of course the Corporate Media apologists will tell us that bullion confiscation is not “stealing”, as governments pay “fair compensation” for the gold (or silver) which they coercively obtain from their populace. Yes, just like the “fair compensation” paid by the U.S. government to its own citizens when it confiscated their gold in 1933 – and then immediately “revalued” it higher by 50%.

Put another way. First the U.S. government took its citizens gold. Then it retroactively reduced the actual value of the “fair compensation” by half. The only thing separating that from an open act of theft was that the U.S. government inserted an intermediate sham-transaction to make the theft a two-step process.

Am I trying to frighten readers away from gold and/or silver bullion by warning of the dangers of bullion-confiscation? Absolutely not. Indeed, regular readers know I deliver precisely the opposite message: gold and silver bullion (as a matter of simple arithmetic) is our best refuge from the Hyperinflation Hell looming directly ahead of us.

My message to people is to hold lots of gold/silver bullion (which cannot be debauched/stolen through the banksters’ money-printing scams).  However, it’s crucial that people hold their precious metals personally; in a home safe or other secure location. Obviously if (when?) bullion confiscation takes place in our own societies (again), the first gold/silver to go will be every ounce contained in any/every bullion account, fund, or trust – as all this bullion can be snatched effortlessly with nothing more than a point-and-click.

Would our increasingly authoritarian governments ever send their Nazis to start busting down doors, looking for bullion “the hard way”? Three reasons mitigate against this.

1) Our governments’ Big Brother electronic surveillance still provides them with no way to identify the source/location of all wealth we have stored in bullion – another reason they don’t want the Little People holding gold and silver.

2) Similarly, since we could have disposed of our bullion in private, legal transactions; they have no way of proving that such privately-held bullion even exists (at least in holdings of moderate amounts).

3) Our governments (up until now) have shown the preference to Steal with Stealth. They have already looted more than Âľ of all our wealth over the decades; through banking and taxation systems which were structured to funnel all wealth out of the pockets of the bottom-99% and into the vaults of the Top-1% (over time).

While those reasons provide no absolute security for our bullion holdings; gold and silver still represent our safest form of financial security – given the alternatives. Apart from losing all our paper wealth relentlessly through the serial theft inherent in the banksters accelerating currency-dilution; (insolvent) Western governments have already begun “confiscating” (i.e. stealing) paper assets.

Some will argue for parking their wealth in real estate. However, not only do our permanent near-zero interest rates ensure that all real estate markets are permanently in some form of “bubble”, but land can also be seized. Unlike bullion, however, it can’t be hidden.

Comments (2)Add Comment
Jeff Nielson
written by Jeff Nielson, December 14, 2012
Jeff, there seems to be a concerted effort by the Reserve Bank of India to try to wean people away from investing in gold. They have been recently advising people to not invest in gold...

Yes Samix, definitely a much different dynamic between India and China -- where the government is an open CHEERLEADER when it comes to the accumulation of gold and silver.

The difference between China and India this point is scale, AND the fact that India doesn't have a domestic gold-mining industry -- while China is the world's #1 producer.

Only NOW (much too late) is India's government thinking about the virtues of digging its OWN gold out of the ground. So China has avoided this phony issue of "current account deficits" arising from bullion accumulation, while India's bankers appear to be parroting Western lies...
written by samix, December 13, 2012
Jeff, there seems to be a concerted effort by the Reserve Bank of India to try to wean people away from investing in gold. They have been recently advising people to not invest in gold.

I have started a thread here and posted an article by an Indian blogger that offers more perspective, the Indian government has already decieded to start issuing gold bonds, more here

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