Today I’m going to dip into the reader mailbox.
You might recall a week or two ago I published a reader’s letter that called into question the actions of central banks. That is, are they pursuing this policy of rate cuts deliberately, knowing that it will cause long-term damage by twisting age-old economic incentives?
It seems like a perverse claim to make. But that’s only if you think like a normal person. What if the people running this world don’t have your best interests at heart? What if they are following a hidden agenda?
I’m not saying that is definitely the case. But I’m open to the idea. And you should be too. When big money and power is involved, nothing is as it seems.
Before I publish some of your responses, let me quickly address another issue raised by a reader’s letter. John writes that we are going on about gold a little too much:
‘It’s almost a daily rant.
‘What started out as a worthwhile newsletter now seems to be going down a gopher hole on gold again. There seems to be a thing at Port Phillip Publishing that they seem to have a real push to gold and I wonder what the driver is. Gold stocks never follow gold’s price so I am unsure of the strategic investment value.
‘If this line continues then I will also drop The Rum Rebellion as I have Morning Money. Driving a gold agenda is not what I have seen as sound investing.
‘Go back to providing an alternate voice. It is much more worthwhile and informative.’
As you know, this is a free daily email. You are under no obligation to read it, or to accept what we write as fact.
The ‘push’ to gold lately is deliberate. It’s because I believe you will make money from it and increase your financial freedom. It’s as simple as that. I’ve outlined all the reasons for this view in these free daily essays, and in this special report. So I won’t go into it here again.
As a company, we make money and stay in business by presenting you with investment ideas and hoping they resonate with you. It’s a very transparent business model.
From time to time, I need to tell you about these ideas. I do that via this forum. In my view, gold’s breakout to six-year highs (in US dollars) triggered an urgent need to alert you to an overlooked segment of the gold market.
As I said, you don’t have to act on this. It’s up to you. But I know those who did act early are already up on their investments. So we’re off on the right foot…
With that out of the way, let’s get back to your view on central bankers…
‘What we’ve seen in places like Japan and even the US is that the government starts buying assets directly to support asset prices when under pressure. Combine Quantitative Easing (money printing) with asset buying and where does that road take us in it’s illogical conclusion? To a dystopia where the state effectively owns controlling stake of all the assets and all prices and markets can be managed “for our benefit”. Sounds a lot like socialism/communism/authoritarianism by stealth to me. There are most definitely some elites who believe they should be in full control of the economy and every other aspect of our lives so this is a very possible long game that could be played and won over the course of a few decades.
‘Anyway, keep up the good work. As diligent libertarians let’s just keep buying Gold and Cryptos until they get made illegal.’
‘Only the very foolish could accept in any stretch of the imagination that they are acting in the best interest of the public
‘We are seeing total corruption at work here in our Western Styled Economy.
‘The system is so corrupted and they have so much power, they are determined to prove us believers wrong, they system is so manipulated , traditional values cannot function.
‘Cashless society is the next step to give control.
‘PRC is doing it their way. DT is now the pawn of the $$$$$$$$$Kingdom, Soros & others are at the table ready to spin the wheels, no marks for picking the winner.
‘I support your advise on Gold, have you thought that these rogues will take control of this market given time.
‘Pray given enough rope they will swing on the gallows, unfortunately we will have to pick up the pieces of the destruction.’
‘Greg, I totally agree with your readers quote. It’s a rigged scam this rate dropping. Currently the Central banks/Gov’t are unable to get the desired inflation which is how they usually fleece us via currency devaluation and bracket creep etc etc. In this case they will force us to accept negative interest rates in the hope of stoking inflation by us pissing money away on more garbage we don’t need so they can continue to fleece us the usual way. If that fails then that the worst they and their Gov’t/Bankster Crony mates can do out of this is to steal off us via the negative interest rates on our savings.
‘A heads I win tails you lose scenario. We’re screwed!’
‘I’ve come to the conclusion that our financial masters are intelligent, lack wisdom, lack guts, lack honesty and lack morality.’
‘I love ‘Rum Rebellion’ and , no, you’re not suffering with paranoia. There’s definitely skulduggery afoot in more sectors of society than just finance.
‘Imagine a group of influential people who regard democracy and individual liberty as a temporary irritation; an annoying interruption to the natural order of things. We could call them old-style communists or even national socialists, or any other term closely associated with totalitarianism. The name isn’t important. The end result is what matters.
‘History has taught this shadowy group that blood-in-the-streets revolutions don’t fare well in prosperous democratic countries, where individuals are doing OK and are too busy making money and raising families to engage in riots.
‘You have to create the unrest with more subtlety, so that the average person never recognises the malevolent guiding hand behind it.
‘You undermine families; introduce disruptive politics into education and dumb-down the curriculum; expand welfare to minimise the importance of self-reliance; choke off the energy lifeblood of capitalism by demonising carbon dioxide; dismantle national sovereignty by encouraging mass illegal migration across borders; debase civilised social interaction with low-grade ‘reality’ TV shows; and even create confusion and dissent about gender.
‘This is by no means an exhaustive list and I’m sure your readers will be able to add many more examples.
‘When every anchor in society is gone, when there’s nothing left for ordinary folk to cling to, the New Order will emerge from the shadows in a seamless transition to centralised control of everything. And no one will have any reason left to oppose them, or even understand why they should.
‘Your point about making profligacy more profitable than thrift – turning the financial logic of centuries on its head – is but one more facet of a global top-down manipulation and disruption of the very fabric of Western civilisation.
‘Something very big is happening; something so big that most people simply cannot perceive its existence.
‘We’re on our way to the kind of world Josef Stalin could only dream about and I’m afraid most people won’t wake up to it until it’s far too late.’
That, dear reader, is bang on the money.
Centralisation is the enemy of individual freedom and a key tool of the totalitarian state. Turning people against each other is another tool. Recognise this and you have a chance of educating your kids and/or grandkids about the way the world really works.
So there you go. You just got to see how the world really works in around 1,000 words. Not bad for a free daily email.
Knowledge is power = power to the people.
Editor, The Rum Rebellion
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