Understand Your History, Identify The Thief

If demand and supply aren't causing it, the only other variable is counterfeit money.

Feb 12, 2024

WHAT HAPPENED TO YOUR GOLD?

From the years 1870 to 1915, in the 45 years leading up to the start of the criminal counterfeit money printing by the United States Federal Reserve Bank in 1915, the price of gold maintained a steady fixed price.

Before the “Fed” began buying up “assets” with its monopoly money, the price of gold remained fixed at $21 an ounce in the United States. Here is a chart of the gold prices for these 45 years prior to 1915.

But then something happened after 1915. The gold price went from a 0% annual change in price for 45 years to an annualized 4% compounding growth rate for the next 110 years, and still continues to this day.

Here’s the chart.

Why did gold begin to have such sporadic and volatile price movements for the past 110 years, with a long term 4% annualized compounding growth rate?

Strange how an asset with a 5,000 year history all of the sudden spikes from $21 to $2,000 in only a hundred years!

What the hell happened?!

THE USUAL SUSPECTS

The first plausible idea that comes to mind for the rise in gold prices is that maybe the criminalization of gold ownership changed the supply and demand dynamics.

But this idea doesn’t hold water upon closer inspection.

You can see in the chart above that at the time of the 1933 gold confiscation from U.S. citizens there was an immediate bump up in price. And then another bump up in price in the 1971 gold confiscation from foreign governments.

So based on the theory that prices changed because of a legal status change, if the U.S. were to make gold ownership legal once again, that should stabilize gold prices, stopping them from rising, as was the case before 1933.

However, that’s not what we see in the data. The theory doesn’t hold.

Gold was once again legalized for US citizens to own in 1974, but we don’t see the price stabilizing after 1974. Instead the steady 4% rise in price each year continues to this day. The price of gold has continued its upward trend throughout this 110 year period, both with and without gold bans by the U.S. government.

(I am reminded of the old bitcoin adage, you can’t ban bitcoin, you can only ban yourself from it.)

So clearly the legality of gold was not a determining factor in the change of gold pricing throughout these years. The above chart shows us conclusively that regardless of whether the US banned the ownership of gold or not, there was a steady trend upwards in price after the creation of the U.S. Federal Reserve in 1913.

Perhaps then somehow the Federal Reserve is the cause of the rise in gold prices?

But that couldn’t possibly be the reason, could it?

Because if that were the case, surely the price of gold would have started to rise immediately in 1913. Or maybe not?

At any rate, we’ll consider this a little later.

Let’s first explore some more obvious possibilities, like a decrease in newly mined gold supplies causing the price to rise.

Here is the growth in global gold supplies for the first 45 year period we’ve been analyzing, 1870 to 1915.

As you can see, global above ground (mined) cumulative gold supplies grew at a compounding annualized rate of 2% for the 45 years leading up to 1915.

If newly mined gold supplies began to slow after 1915 this would cause people to bid up the price of gold, assuming there was no change in demand, which could account for the growth in gold prices over the past 110 years.

However, that is not what we see in the data.

Here is a chart of global gold supplies for the 110 years after 1915, up to today. No change in supply growth.

Actually it is rather incredible. Look how stable the growth of gold supplies was. A steady 2% growth rate continued throughout this 110 year period.

Another suspect scratched from the list.

(By the way, now you know why the Fed targets 2%. It is because this is the gold inflation rate. But their targets are a scam as explained a little later in this article.)

(And a shout out to Nik at http://www.goldchartsrus.com/ for the gold data. Thanks, amigo!)

So, if the price rise is not on the supply side of the equation, it must be a demand side issue. But from where?

Maybe there were more people moving into the US and this increased population created more gold investor demand.

Here is the population growth rate of the US from 1870 to 1915. A cool 2% annualized growth rate.

If prices increased because of more demand, we would want to see an increase in the US population growth rate in the years after 1915.

Another dead end though. Here is the US population growth rate from 1915 to today.

The US population actually reduced its growth rate after the creation of the Federal Reserve, down to 1% and falling off trend beginning in the 2000’s to below 1%.

The growth rate of people actually decreased in the US so that theory also doesn’t hold.

Well, if it wasn’t US population growth, maybe demand came from foreign investors.

Let’s take a look at global population growth.

Here is global population growth for the 45 years leading up to 1915. A modest 1% growth rate.

And here is global population growth for the 110 years after 1915 up to today, still holding at 1%, although falling slightly off trend since about 2013.

So global population demand is also not the source of increased demand to account for rising gold prices.

The only other obvious possibility is a change in investor sentiment. Maybe investors were simply moving their money from one asset class to another.

A major investment class outside of gold is the stock markets.

A decrease in stock market prices, or at least a reduction in the rate of stock price growth over these two time frames could account for a rotation out of equity based investments, and into a larger gold allocation. This could indeed account for the increased demand of gold pushing prices higher.

Here is a chart of US stock market prices from 1870 to 1915, with a steady 2% compounding growth rate in prices during this 45 year time frame.

If investors shifted their investments out of equities and into gold we should clearly see a decline in the compounding growth rate of stock market prices.

But another swing and a miss. That is not what we see in the data.

Here is the stock market growth rate from 1915 to today.

Incredibly, stock prices rose over the next 110 years, with annualized growth rates of 6% after the establishment of the Federal Reserve!

Wow! The stock market actually increased its growth rate after 1915. Obviously, investors surely were not selling their stocks for gold.

And remarkably, the growth rate for stocks increased the same 4% that gold did. As we can see in the charts, equities had a growth rate increase from 2% to 6%, a net 4% increase, just as gold had a net 4% increase from 0% to 4% during these two time frames.

Very interesting.

What could have possibly created a similar increase in growth rate, other than a change in population or a change in investor sentiment, or changes in the legalities of asset ownership.

What else could have possibly caused a similar demand change to increase the price growth rates to both gold and stocks during these very large time frames?

Is there anything in the marketplace that has that much command over prices?

How could demand dynamics change in ways that would impact both gold and stocks in the same exact way?

WHAT HAPPENED TO YOUR WAR!

Narrator: It’s the money, stupid. They printed more of it. And didn’t give any to you. And they call it inflation, to confuse you, and they think you’re stupid. But you’re not actually stupid, just ill informed. And we’re here to fix that.

Let’s proceed.

During a Christmas Eve session of Congress, in December of 1913, the Federal Reserve Act was passed in the United States of America.

What followed this enactment was the first ever World War, the first ever Great Depression, the likes of which the world had never seen before, a second World War, which included the genocide of tens of millions of innocent lives from multiple ethnic and national backgrounds around the globe, including women, men, and children, and a more or less constant state of war by the US across the entire planet with military bases around the globe and permanent black ops around the world 24/7.

In the four centuries leading up to the creation of the US Federal Reserve Bank in 1915, the percentage of global human lives sacrificed under the direction of nation-state sanctioned militaries ranged around 1% of our Earth’s human population.

But then something changed in the 20th century with the establishment of the Federal Reserve money printer at the helm.

Our great grand fathers, our grand fathers, our fathers, our children, our brothers and our sisters, our aunts and uncles, our husbands and our wives, experienced an over 400% increase in nation-state sanctioned death.

The numbers don’t lie.

So, what happened?

Did people wake up in 1913 after the Federal Reserve was enacted and simply decided to start killing their neighbors?

Was their magically more demand for military actions in the 1900’s by the citizens of the United States?

Did people just look around and say to each other “you know Jim, these past four hundred years have just been way too peaceful, we gotta pump these conflict related death percentages, these are rookie numbers, let’s get our murder on.”

Or, was there simply more nation-state funding in the 1900’s, funding from an unlimited money printing machine, untethered from economic profit and loss.

WHAT HAPPENED TO YOUR GOVERNMENT DEBT!

From the years 1870, shortly after the United States civil war, up to 1915, upon the establishment and operations of the US Federal Reserve, the debt of the United States had a modest 1% growth rate.

Here is the chart.

But then something unprecedented happened. Something that the world hadn’t seen since the beginning of the fall of the Roman Empire.

Beginning in 1915 with the operations of the US Federal Reserve in full gear, something was put in motion that persists to today.

The US government found a sly round about means for gold debasement, for monetary debasement, for a work around to sidestep the pesky little problem of their citizens lack of interest in funding their insane war machine and whatever other hair brained ideas they had.

The US government found a buyer for it’s unquenchable thirst for debt.

A buyer with an unlimited amount of monopoly money. And with this unlimited money printer, the U.S. debt has exploded from 1915 to today.

Here is the chart. A 9% growth rate, increasing from a mere 1% in the 45 years prior.

Disgusting.

From three billion dollars to well over 30 trillion dollars and climbing.

Just unfathomable amounts of debt expansion.

And where there is debt, there is the other side of the transaction, credit based money, credit from nothing, on a central bankers balance sheet.

The source of that missing demand, ladies and gentlemen to answer the question of what happened to gold —

I present to you, the target of all of your angst, all of your misguided anger, all of your vexation, all of your sorrows, all of your depression, all of your resentment, all of your apathy, all of your nihilism, all of your partisan politics missing the target, all of your misguided xenophobia, all of your justified concerns of consumption culture, societal degradation, and just the general malaise that we all find ourselves drowning in.

It is The Grand Simulacra.

A false god.

Dear ladies and gentlemen, I present to you, the growth rate of the assets of the US Federal Reserve, the largest most fraudulent institution our fair planet has ever known.

A 10% annual increase in government bonds, home mortgages, and who knows what else, funded with money created from nothing at the push of a button on a computer terminal in down town New York City.

EIGHT TRILLION DOLLARS, OF COUNTERFEIT MONEY.

This money they print to buy government corporate and personal debts then opens up the balance sheet for the underlying member banks, who then make more loans to thousands of other banks, and this expands the “money” supply still further and further through a fractional fiat banking system that floods global markets with hundreds of trillions of more dollars.

With these “free” dollars, investors bid up the prices of gold, stocks, homes, and anything else that is scarce and desirable that they can find.

And this is precisely why both gold and stocks had a similar growth rate as the Fed started printing money in 1915 through today. This is the missing demand.

But that’s not the main take away.

What you really need to understand is the distribution of these new dollars in circulation. As investors buy all of these desirable assets, with their disposable income, there is one thing they care least of all to buy.

The key to understanding this money printing cantillion effect is that new money, first and foremost, chases scarce stores of value.

And guess what ain’t scarce! A peasants labor in a third world, IMF impoverished, “developing” country.

You see, the last item on the investors shopping list, dear ladies and gentlemen, is your wages, your savings, and your pensions. And this is precisely why home prices, and gold prices, and stock prices, and steak prices, and everything else that is valuable and desirable grow faster than your wages.

This is the core problem the entire human population faces while the Fed remains in existence. That my friends is how the game has been played since the scam began over 110 years ago to this day. That is why we all feel like we are hamsters on a wheel and just cant get ahead in the rat race. We are indeed rats trapped in a money printing maze.

When the Federal Reserve creates money to buy your governments debts, it is by definition, stealing your purchasing power in your past savings, your present wages, and your future pensions. This is where the value of their money comes from, directly from you, dear ladies and gentlemen. From your labor.

They steal your hard earned work from you through the inflation of the money supply, with the push of a button, by an unpaid college intern in an office building in New York City.

It’s completely batshit insane once you understand it. And it is 100% true.

This is indeed why counterfeiting money is a crime, because it steals the purchasing power of everyone else. Yet, these criminal bastards have the gumption to tell you to your face, you must be stolen from at a 2% inflation rate on an annual basis, that somehow this money printing is not counterfeit. That through some hand waving, big words, and well tailored suits, magically this particular group of counterfeiters is the price of a well functioning economy and society.

No.

No I don’t think so. You dim witted paraquats.

[Queue Jesus flipping the table of the money changers.]

The Creatures from Jekyll Island, those central banking lame dogs whom have latched on to the teat of every thriving country in the world, led by the United States Federal Reserve banking system, are the most dangerous and evil mid-witted morons history has known. They are less than a den of vipers. They are parasitic slime. And it is most certainly high time we scratch these whores off our good works.

BITCOIN HAPPENED.

Lead us not into temptation, but deliver us from evil, from their ignorance, for they know not what harm they do to their children, and their children’s children, and our children, and our children’s children.

Our only hope is to opt out of their leviathan, and opt into the solution, into the peaceful revolution. An evolution of stronger, faster, smarter money, for a stronger, faster, smarter world.

Opt into the singularity, the unprintable, the unfakeable, the uncensorable, the indomitable, the one and the only, the indestructible and the all conquering, the mighty and the great, the Freedom Money We Call…. Bitcoin!!!

Until you understand the nature of the thief in our midst, you will not understand Bitcoin, nor the eternal conviction burning within its adherents, those of us who’s souls are prepared to see to the absolute annihilation of that thief in our midst.

Whatever it takes.

Sound off front line soldiers: OOOORAHHHH BITCOIN!!!

We stay till the job is done.

Nothing Stops This Train.

Get on the mission.

Vires In Numeris.

Fiat delenda est.

Get on zero.

HODL.

Cheers, fam. Let’s get it!