Babylon's Bankers

IT’S THE GOLD AGAIN FOLKS: PART THREE: ROYAL MINT, GOLD BACKED ...

Mr. G.B. shared this with me, and when he did, I found myself shaking my head in disbelief, for it confirmed my suspicions about bitcoin. Indeed, many people over the past year have asked me what I thought of it, and would I please write about the subject.

My answer to them has always been that I do not know enough about it, but that I had an intuition - nothing more, nothing less - that something was amiss. Some even urged that I make the website subscriptions available on bitcoin, and again, that nagging intuition kept me from it, and I'm glad I did. Here's why, and it comes courtesy of "Tyler Durden" at Zero Hedge once again:

UK Royal Mint Working Plans to Issue Gold Backed Physical Bitcoins

Now this is breathtaking folks, and "Durden" gets to the heart of the matter here:

"...the latest news comes from the birthplace of the modern central bank, the UK, where we learn that none other than the UK Royal Mint has been working on plans since this summer to issue physical Bitcoins in collaboration with the Channel Island of Alderney.

"But where the story gets downright surreal is that as the FT reports, the same symbolic Bitcoin token issued by the Royal Mint "would have a gold content – a figure of £500-worth has been proposed – so that holders could conceivably melt and sell the metal if the exchange value of the currency were to collapse." In brief: a perfect, and utterly incomprehensible, fusion of (opposing) hard, soft and digital currencies all rolled into one..."(emphasis in the original)

And here:

"Wait, what: gold-backed Bitcoins? If so, that would be truly revolutionary because for the first time a Treasury (and by implication, a central bank) is effectively hinting that not only are they willing to fiat-ize Bitcoin, but also have the symbolic BTC token (after all Bitcoin is a digital currency by definition) serve as a commodity trap. Because once enough gold-backed physical Bitcoins are locked up in some basement in the UK, who has the master key? That's a rhetorical question by the way."

This, as "Durden" quips with a healthy dollop of dry humor, is confusing, to say the least, because it combines "the minting process of a physical gold-backed token representing a digital currency, with the backing of an entity that does the bidding of an issuer that only believes in fiat currencies." Once all this is achieved, then

"All we can do at this point is sit back in wonder and amusement as we hit the pinnacle of monetary confusion, whereby the UK Royal Mint, willing to take full advantage of retail confusion, will mix hard, soft and digital currency, and produce a product... that is locked away on an island that belongs to the UK.

"And all we can say is "brilliant", because if there is a better plan to meld the sentiment of both hard and digital-currency (and hence, anti-fiat) advocates, and to redirect it in a "fiat" pathway, we have yet to hear it."

So what is really going on here?

It's simple, if you read between the lines a bit: what is being done is simple that virtual currency is being added to the gold-rehypothecation scheme, for what is happening is bitcoin is being "backed" by gold, which you can redeem if the currency value falls below the bullion content of the coin. Except, of course, the coins will be held in reserve on an island, and you can't redeem your virtual bitcoins for the real bitcoins, and, on that basis, the coins can be "leased" and rehypothecated over and over again... only this time, by the same computers used in high speed trading.

Frankly, we should call it what it is: High Frequency Fraud.

 

17 thoughts on “ IT’S THE GOLD AGAIN FOLKS: PART THREE: ROYAL MINT, GOLD BACKED ...”

  1. Of course, another stunner arrived yesterday when JP Morgan announced that it already has a PATENT on Bit Coin technology. Oh boy, is the ghost of the man, J.P. Morgan, haunting cyber space now … the man who likewise played the Patent Card on George Westinghouse and Nikola Tesla?

    http://www.zerohedge.com/news/2013-12-10/chasing-bitcoin-jpm-preparing-unveil-its-own-electronic-currency

    Quote:
    “I view this technology and patent application as an overwhelming good thing. Bitcoin is driving Innovation. It has been said that credit cards and the legacy banking system in use today was never meant for use over the internet. Chase’s updated Internet Pay Anyone technology appears to come head to head with Bitcoin.”

  2. The bitcoin will work, the people will accept it for material gain, and then the vultures will show there true intentions again.
    The same folks that dumbed down the masses in our education system, with the judas teachers bought and paid for giving the children red pill floride tablets. The same folks that have given us cancer, and a judas medical community that will not take the death sentence treatment….bought and paid for.
    When colonizing, you must force a loan on the colony. With the approval of the elected strong man. Then if the colony gets out of control, and starts to get so productive that, heaven forbid they share in the wealth…..they destroy it.
    Its a contract, that depends on drones concerned with eating, working and not much else.

  3. Was just reading this yesterday,
    http://2012portal.blogspot.com.au/2013/12/financial-reset-and-event-update.html
    although ‘questionable’ as a ‘credible’ source material, yet the interesting thing is this so called ‘insider information’ is also hinting at the possibility that Bitcoin is a ‘scam’, that the Western elites are behind it, namely the Jesuits and the Rosthchilds.
    Interestingly enough, the next day gizadeathstar is talking about Bitcoin and suggesting that it maybe a ‘scam’ as well. Given gizadeathstar is way more ‘credible’ than those so called ‘insider informations’ on the internet, if these two completely different sources are ‘in agreement over the nature of Bitcoin’, then i incline to think perhaps such scenario has a merit to it.

    Coupled with a recent development in which Chinese financial authority has just issued a ‘warning’ against Bitcoin to its financial institutions, coincidentally the decision came after reports of Bitcoin ‘missing’ in China.
    http://rt.com/business/banshee-bitcoin-vanish-china-601/
    “a reminder of the great risk associated with the digital currency”.

    This also reminds me of the recent ‘computer glitch’ troubling a major govenment backed Chinese investment bank, namely the Everbright Group that Dr.Farrell had a blog about and as i mentioned in that blog’s comments section that this bank is chiefly responsible for the financial backing of several Chinese investment into ‘high-tech’ industry including solar PVs, high-speed transportation and aerospace industries.

    The Everbright chief resigned shortly after the ‘computer glitch’ incident, even though it maybe not his fault per se, but its a sign that the authority is serious about ‘electronic financial security’, adding the fact the BRICS have been planning their own ‘NSA-free’ internet, not to mention China has been saying for years amid American/Western accusation of cyber attack that ‘cyber security is an international problem that China is also a victim of such attacks’.

    I think ‘High Frequency Fraud’ is the correct call, and i suspect the recent Chinese ‘crackdown’ on Bitcoin, coupled with other related ‘revelations’ in recent times concerning ‘computer economics/ electronic finance’ is yet another ‘tentative evidence’ that this maybe the case. Such ‘warning’ would be serving effectively as a reminder to financial leaders in those Chinese institutions of the example of Everbright chief, that ‘High Frequency Trading is not as secure as you would assume.’

    Speaking of ‘financial shenanigans linked to an island’, i incline to think the proposition that there is something ‘financial in nature’ behind the disputes over these Western Pacific islets between those ‘Asian Pacific powers’ has merit to it, and i believe there are ‘tentative evidences’ for that argument.
    Despite i have my own takes on the issue, but i think it doesn’t have to be just one reason, perhaps there is a combination of factors behind it.

  4. My best guess is they would couple BC to paper gold prices for a year or two and then drop the gold backing. Giving us fiat electronic currency that could be stolen via back doors on your computer, hand held, smart phone, etc. software.

  5. This madness has to stop somewhere, but where is the question. Seems like all of the financial attention is focused on the west. Isn’t is funny that Russia and China rarely get the glamorous ink that the Fed or J.P. Moran gets.

    Bitcoin, well there has to be a curtain call, I for one wouldn’t trust anything I couldn’t put in my wallet, and I suspect a lot of people have the same view.

    1. You can put Bitcoins in your Wallet; otherwise known as an encrypted thumb-drive, glowing with algorithmic value.

      What the tethered giants fear most of all is that their flock of debt slaves all become untethered, independent, decentralized and floating free of their snares.

  6. It still bait and switch the bitcoin is just the latest scam to enslave us the Banksters on going greed has no bottom. I just sitting back waiting for the explosion that might rid us of these parasites.

  7. I just don’t think that one will fly. Bitcoin seems to have been built largely on the skepticism against London banksterism. It looks to me like just a cheap opportunistic scam by London and not something calculated with the advent of bitcoin. The real show will come in the 2016 US Presidential campaign when Rand Paul, or some blowhard sent in to co-opt Rand Paul’s message, will be campaigning on a gold backed dollar. Now this will have been calculated in advance to get the US banksters out of the pickle they are in, keep the dollar in the driver seat, and most importantly– wrap up another bullion con job. It will come off as a sound money revolution but in reality– more retrenchment, preservation, and stealing the thunder from BRICSA and maybe even London. Ron Paul will be dragged out on all the talk shows as a hero and the godfather of this revolution. The clamor for dismantling the police state apparatus will grew in this “revolutionary” fervor and token gestures will be made like closing Guantanamo. (Of course the surveillance state can’t really be dismantled because it will be needed to locate and confiscate gold). Even candidate Hillary will jump on the bandwagon and proclaim everything is on the table including a gold backed dollar. It will look like a real victory for the people.

    Of course, it will just be a new bankster bullion scam to re-accumulate all the gold they just sold at exorbitant prices these last ten years. The gold they accumulated in the eighties and nineties when they kept gold prices locked below $300 under the guise of geopolitical necessity, but in actuality just a scam to amass all the world’s gold including gold from those rubes in Germany and maybe even the Breakaways and their golden lily stockpile. (Who is to say George HW Bush wasn’t a double agent who was tasked with infiltrating the CIA and getting his hands on the Jap gold so he could turn it over to his real masters in NY?)

    And once the dollar is tied to gold by an official act of Congress and with Ron Paul and both political parties’ consent, all gold will be confiscated at $300 an ounce, with minor exceptions to the small coin collections of moms and pops. But the big gold hoarders who aren’t part of the bankster clique will be cleaned out along with all those chicken little goldbug useful idiots on the internet, radio, and tv. Germany and everybody will finally get their gold back (at $300 an ounce) and the US will have the undisputed reserve currency again and the banksters will have have completed just one more bullion scam and will be ready to commence the next one– this time probably some kind of phony get rich quick scheme involving aliens. Again the banksters will get the whole greedy, gullible world to hand over their gold to NY, including the dopey Germans, the Chinese, and every other sucker, with clever promises of big returns from desperate aliens who need gold to repair their atmosphere (or some hogwash like that). And on and on we go.

    1. A very interesting scenario. But as the word spreads about the decades-old gold scam – especially among the non-Anglosphere powers in the world – could it get very far? Of course this doesn’t mean that they won’t try it. And so, it’s better to hold onto a range of “real” assets, tangible and ” intangible (super advanced know-how etc.) that you can see and do something with, than get a thousand leveraged asteroids “somewhere out there”. Rocks whcih, significantly, are touted as being packed with all those minerals that human beings covet for one reason or another….

      1. F–

        Except the US dollar isn’t going to be tied to gold ever again. Nor is some other major currency. There are things of far more enduring value than gold.

      2. Frankie Calcutta

        Dana and Sag,

        I don’t claim to be a prophet. Just a cynical joe six pack well versed in bankster machinations. Therefore, i will step out on a limb and wager gold backed dollars will be the talk of the 2016 presidential race. If I am wrong I will pay you both ten non-denominated dollars and if I am right you will pay me ten gold backed dollars. If between now and then the scarcest and most coveted mineral in the galaxy, mithril, is discovered in a passing asteroid, then all bets are off. That would be a total game changer.

  8. Robert Barricklow

    Dumbing Down The Public Once Again. As they did with the public money, they are doing with bitcoin. Taking away the essence of control from the public at large, and transferring it to the private few. Just as when they took the countries’ sovereignty away, by privatizing the nations’ currencies, they are trying once again to silo disciplines(economic in this specific instance) within an institutional framework that atomizes our commons; instead of giving public access to the commons, from which to share the bounties of our labors & that of natures’.
    Self goverance is given-up, when a nations’ currency is privatized to an ownership of the few(BIS), at the expense of the many(Public Banking).

    Once again, they are dumbing the public’s knowledge in bitcoin, centralizing the essence of bitcoin’s inherent decentralized nature.

    High Frequency Fraud has become their calling card in the 21st century.

  9. “So, what’s really going on here?”

    Looks like the Royal Mint is playing witch doctor, and has stitched up a Bitcoin voodoo doll, which it is desperately poking with needles.

Comments are closed.