A Good Time To Take Stock ::: NZ Gold

'A good time to take stock'

Sunday April 5th 2009

Late last year the author paid a visit to both Switzerland and England. Switzerland, of course, is that small mountainous country that is currently being bullied by the G20 over 'tax matters'. As an aside, we expect to see a lot more intimidation of small independent countries - if they deign to frustrate the Illuminati's vision of a new 'one world socialist order'. Want to maintain an element of national sovereignty beyond meaningless symbols? - then expect to be bankrupted or worse! At NZ Gold we would suggest that the real reason, for what has been described as 'Switzerland's financial purgatory', is that the nation is successful, independent, prosperous, and socially homogeneous. As such it is an embarrassment to the EU, that supremely arrogant and destructive new Reich, that is planning - and delivering - the progressive impoverishment and social fracture of once prosperous and cohesive member states.

Yet we digress. Whilst in London the author stopped outside his old school and allowed himself a moment's nostalgic circumspection. Within the confines of this East London establishment there used to be a delightful small garden, replete with an old brick wall. Atop it there were some words, carved neatly into the masonry, urging passers by to 'rest here a while'. What sound advice in the world of the nineteen seventies! What even better advice in the early years of the twenty first century, as a hitherto brisk advance along Friedrich von Hayek's 'Road to Serfdom' gives way to a final frantic dash - as Britain and the United States jockey for position to be the first 'former bastion of democracy' to descend into frank fascism.

Well, at NZ Gold, we can certainly claim to have been 'resting here a while' since we have not updated the website for some time. Of course, we are probably just rationalising our tardiness. Yet we do believe there is sometimes a case for masterly inactivity because this allows for that unfashionable process - which the ruling elite would prefer you not to indulge in - called thought. Indeed, thought is the very antithesis of the vacuous, banal, and easily manipulated world which they wish you to occupy. At NZ Gold we seek to be modest and self-effacing sorts, but we shall allow ourselves a little satisfaction about the timing of our 'sabbatical'. For events since our last commentary in October 2008 have been tumultuous and thus they demand the most rigorous and historically respectful of analysis. Unfortunately, the implications for the future are profound and deeply disturbing - especially for those avowed secularists who were fooled into believing that a new and perpetual era of rising prosperity and 'social justice' had arrived. Correct us - for wasn't this was to be a new 'post-Christian age' in which the Gods of Real Estate would take preeminence, bestowing their abundance on anyone wise enough to take out a mega mortgage on some 'triumph of architectural design'. Correct us, but wouldn't purchasers thereof - having paid flabbergasting multiples of annual income for their 'investment' - be compensated by the 'Gods' in the form of unlimited equity release, with which much crass and hedonistic material abundance could be acquired? Yet don't we discern an irony? For aren't the adherents of this new 'faith' the very people who seem so inclined to sneer at the religion of Alfred the Great, the man - paradoxically - on whose law-code their precious 'property rights' are reposed. Granted, at NZ Gold we are a little old fashioned - why else would we be advocates for sound money! Yet we can't help but reflect on the intellectual dichotomy - in which the long-established religion of the Anglo Saxon peoples is ridiculed whilst voodoo economics are embraced with evangelistic zeal.

At NZ Gold we have watched with growing alarm - and only a little satisfaction - as the many warnings we have offered about about how the easy money orgy would end have been proved largely correct. If we offer ourselves admonishment it is that we have been insufficiently pessimistic. In all honesty we would prefer to have been proved wrong - about our bleak assessments for credit based prosperity, fiat currencies, ruinous taxation, and authoritarian government. We would love to convince ourselves that we are not on the road foreseen by Friedrich von Hayek and others - for what possible gain could the ordinary citizen enjoy from arriving at that sombre destination called serfdom. Yet, as we have stated before at NZ Gold, we are logisticians and historians. We are not interested in the wallowing emotional drivel of politicians, business leaders, and establishment churchmen. Rather, we seek to examine the historical and contemporary topography in order to establish from whence we have come and to where we are probably headed. In doing this we can find no issue with men like Hayek, and other commentators such as the late Robert Beckman and the controversial British Parliamentarian Enoch Powell. Moreover, we remind ourselves of the warnings given to use by those who understood the business of power from positions of ostensibly great authority. Thomas Jefferson, Abraham Lincoln, Benjamin Disraeli, Woodrow Wilson, Winston Churchill, Franklin D. Roosevelt, John F. Kennedy and Margaret Thatcher were all leaders who variously gave clues that it is not our elected representatives who really run the show. Ironically, one of the most erudite assessments came from the leader of The British Union of Fascists, Sir Oswald Mosely, when he addressed a vast "Britain First" political meeting at Earls Court on July 16th 1939. Although we would strongly disagree with many of Mosely's ideas his understanding of how money corrupts showed a remarkable prescience, especially when considered in the light of recent events! Small wonder that Sir Oswald was so deeply unpopular with members of the British establishment. For not only did he denounce them - he did something far worse. Being originally drawn from their ranks, he betrayed them!

So we find ourselves, in March 2009, at a point where the illusion of credit based prosperity is being exposed for the scam that it is - that it always was. This time it was not different - contrary to the garbage that vested interests may have told you. Of course, the reaction of governments is tediously predictable as they dash to save the interests of those who command them - at the expense of Joe Public and his children. At NZ Gold we predicted this in our September 2007 update Is 'Operation Bernhard' about to restart? Yet even we are stunned by the amount of money being tossed around. Therein lies the beauty of a 100% fiat money system - when the treasury has been looted, the public taxed to ruin, future generations mortgaged and indentured, and your nation's credit worthiness destroyed, you can always turn on the printing press. Such a thermonuclear financial action may reignite nominal property prices and allow the dishonest repudiation of debts - but it will wipe out your country's remaining capital and leave you with vast quantities of worthless paper with which to try and transact the business of daily living. At NZ Gold our worst fears are being realised, as our beloved Britain begins this folly with so-called 'quantitative easing' and the United Sates follows suite. Will New Zealand be forced into similar actions some time hence? We are told repeatedly that our finances are in better shape than countries like Britain and the United States but - when we ponder the nation's horrific overseas liabilities - we are not exactly sanguine. At NZ Gold we think it would be sensible to prepare for the worst, especially as we do not believe the current crisis is a matter of pure random economic mismanagement. Within this, we know from the experience of Weimar Germany that a hyperinflationary destruction of the middle class creates conditions which act as a 'precursor' for fascist dictatorship. Since we incline to the view that a one world fascist order is being planned we think it imprudent for Kiwis to assume that they will necessarily be spared a hyperinflationary maelstrom - since those of dastardly intent recognise it is the essential catalyst for destroying democratic and civil society.

Moreover, do not be fooled by mainstream media attempts to convince you that the fascist threat comes from such singularly ineffective groups as skinheads or minor political parties opposed to immigration. The new order, that we foresee, will involve government :

'Of the transnational elite, By the transnational elite, For the transnational elite'.

Remember, every hard-won liberty that has been removed from western countries in recent years was snatched away by mainstream politicians in expensive suits - not by bovver boys with shaved heads singing "ear we go, ear we go, ear we go". Remember also that socialism is not the antithesis of fascism, as the establishment would love you to believe. In the same way that depression and mania are often different symptoms of a common underlying psycho-pathology we would suggest that socialism and fascism are different symptoms of a common underlying political-pathology. At NZ Gold we would suggest that socialism is rather like one of the exquisite Sirens from Greek mythology - superficially attractive before turning into something hideous when relations have become too intimate. We reflect that Germany went from the enlightened socialism of Bismark, to the chaos of Weimar, and then on to the tyranny of Adolf Hitler. Have New Zealand and Britain been traveling along their own version of this continuum in recent decades? Time and unfolding events - not the pieties of politicians - will decide!

So where does all this leave NZ Gold and our readers? Well, our primary objective in beginning the site, early in 2006, was to encourage Kiwis to take a more discerning view of their finances and their liberties. Being aware of the way in which the foundations for the bankrupting of Britain had already been laid we felt compelled to speak out about a similar phenomenon here. The 'modus operandi' was seductive but predictable. First, deliver an illusion of economic prosperity - through the expedient of supremely easy money. Then, with the population rendered crapulent and undiscerning, move rapidly to replicate the unfolding tragedy of Britain - whilst disguising your activities through petty nationalism. Are you bewildered, by how a country so richly blessed as New Zealand could be suffering from such horrendous social problems and levels of violent crime? Are you bewildered, as to how the new economic paradigm of house price based wealth could fall apart so quickly?

At NZ Gold we suspect that New Zealand has been taken so far along Friedrich von Hayek's Road to Serfdom that, like England, it is probably too late to turn back. We sincerely hope not but sometimes harsh reality has to be confronted. Yet, if we are correct, it is even more important to take steps of mitigation to safeguard the interests of yourself and your family from an increasingly authoritarian, voracious, and monetarily irresponsible state. Thus, over the coming months, we hope to offer more suggestions, ideas, and analysis to our readers with, as always, a particular emphasis on the precious metals. We hope to finish our guide to investing in gold and silver shortly and we feel it may be helpful to readers to conclude by reprinting our September 21st 2008 Market Commentary below:

NZ Gold Market Commentary For Sunday September 21st 2008

What was it that the great British poet Rudyard Kipling told us? "If you can keep your head when all about you are losing theirs". Well, dare we suggest there has been the appearance of rather a lot of heads being lost in the gold and silver markets since our last update on Sunday July 27th. At that point we noted gold closing on Friday July 25th at US$928.40 and silver at US$17.34. Since then there has been a 'massacre of the metals' with gold - and especially silver - falling in price dramatically. At close on Friday 19th September 2008 we noted gold at US$871.80 and silver at US$12.62 - and these are prices that represent significant recovery from recent lows!

Yet, in that market update of 27th July, we again reminded our readers of a theme often visited at NZ Gold: "fundamentally the precious metals are undervalued against paper... price volatility reminds us that investing in gold and silver needs a cool and disciplined approach"

So has the recent 'metals mayhem' caused us to alter our long-term view, on the importance of holding gold and silver as timeless financial insurance. In a 'nutshell' no! On the contrary. As we noted in our July 6th update, and reiterated on July 27th, "something is afoot". Well now we know what that something is - the largest financial 'bailout' in history! Perhaps we can allow ourselves a moment of self-congratulation. At NZ Gold we did foresee this in our article from 9th September 2007 "Is Operation Bernhard about to restart". In that update we offered our readers this observation: "In essence we have, at NZ Gold, always been suspicious that a contemporary 'Operation Bernhard' was waiting - apparition-like in the wings - to be summoned by vested interests when the great 'easy money con' began to unwind". (Access via About Gold)

Interestingly, Stefan Ruzowitzky's Academy Award wining film The Counterfeiters, which tells the story of Operation Bernhard, has recently been promoted in New Zealand - as an account of "the biggest counterfeit money scam of all time". Certainly, the Nazi plan to flood Britain with forged Sterling banknotes, to the tune of some 130 million pounds, was outrageous in its audacity - at the time. It was the actions of desperate men, who had learned from Germany's Weimar experience that a hyperinflationary nightmare can wreak havoc on a nation - especially upon its values. At NZ Gold we would suggest the lessons of history have not been lost on those who, last week, put in place arrangements that will ultimately make Operation Bernhard look like mere 'loose change' when compared to the coming tsunami of new money creation.

Have recent events scared you out of gold and silver? - we sincerely hope not! Although we can't be sure, historical and logical analysis - of what occurs when unimaginable debts are dishonestly repudiated - infers both hyperinflation and the conditions in which fascism can thrive. At NZ Gold we suggest our readers remember Kipling and keep their heads - for a time may well be coming when all around you start losing theirs.

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