Why I Don’t Pray for a Gold Bull Market

Since its inception in 1981, this newsletter has always taken a long position in gold and gold shares, not because we have cheered for a gold bull market but rather because I believe Keynesian economic policies, which truthfully are nothing less that “Communism lite,” will and indeed are now clearly ruining the wealth, stability and freedom of our nation. The only physical way I know of protecting oneself against the fraud perpetrated by the Federal Reserve Bank, the banking system as a whole, and the thugs in Washington that empower the bankers, is to step outside of the banking system and own physical assets. Gold and to a lesser or greater extent silver are the most logical and portable forms of wealth outside of the banking system into which you should transfer your wealth. Indeed my radio show last week with Ellen Brown (which you can listen to at http://jaytaylormedia.com/media/taylor20160126-1.mp3) lays out very clearly that it is only a matter of time before the policy makers will take part or perhaps virtually all of your bank deposits through negative interest rates and bail-in policies that are now legally put in place. On top of that as Ellen points out, the revised Bankruptcy Act as well as Dodd Frank’s Act allow our criminal banking system to have their derivative losses covered before common citizens get cover for their deposits when/if the system implodes. And with each new QE, rest assured the probability of an ultimate implosion gets larger and larger.

Not only is there danger of bail-ins but once the system does break down, it seems totally possible that what is now a deflation of asset prices may turn over into a massive inflationary problem, and we know from history that of all forms of portable wealth, gold and silver are the most likely to retain value.

Of course the direction of our nation toward dictatorship, whether gold and silver will be confiscated or not, is open to question. We cannot know in advance what will happen, but for everything I know, it seems one is better off stepping outside of the banking system as much as possible and owning gold and silver as well as other necessary assets like a house and car as long as they are debt free.

There is very little precedent for believing the American government will not once again confiscate our gold and/or silver since Roosevelt confiscated the former under penalty of $10,000 and 10 years in jail to those who refused to turn in their gold in exchange for fraudulent paper money. And of course the income tax is itself confiscation of our private property over the barrel of a gun by our government. There are many arguments why this time its different and I would like to believe we will be able to keep our most portable property. But even if by chance the American government would respect our right to keep possession of our own hard earned gold and silver, the following article in Zero Hedge this past week by Brent Johnson of Santiago Capital, highlights the reason why the inevitable rise in the price of gold will not be cause for celebration. I am passing it on because I think it should help all of us emotionally and spiritually how to prepare for the cataclysmic future that we may now be drawing very near to.
Gold Fund Manager Laments The Big Payoff “Will Not Be Cause For Celebration”

Submitted by Tyler Durden on 01/25/2016 21:20 -0500

Dreams don’t always come true for TV singing show contestants or gold enthusiasts. As Santiago Capital’s Brent Johnson explains, precious metals remain in a long and painful bear market… so why continue to own gold? Simply put, despite all the cries of “you suck” and feelings of loneliness and depression, “if you have done your homework” this will lead to conviction because all the reasons to own gold are still there and are now even more compelling…

Contrarians, by definition, spend most of their time bring wrong “until the moment they are not and the big pay off comes.”

Brent Johnson explains “you don’t get to make the big money and have it be easy…”

The Party In The Global Equity Markets Is Winding Down and “Our moment is coming.. and when that happens we can be humble and gracious or pompous rockstars. When this position – which has been so painful for so long – pays off, the urge to say ‘I told you so’ will be almost impossible to resist… but please don’t say it.”

“Our winnings are not going to come from the backs of politicians who sold out their constituents in mountains of debt; it’s not going to come from the bankers who loaded up their balance sheets with trillions of dollars of derivatives; it’s not going to come at the expense of the celebrities in Hollywood or rock stars of New York. Our winnings will come on the backs of innocent people around the world whose prices will rise as their wages fall.. it’s going to come from the people who wake up one morning to find their savings have been devalued or bailed-in… it’s going to come from the pension funds of teachers and firefighters. The irony is that when gold finally pays off – it will not be a cause for celebration.” – at www.zerohedge.com

Your Editor’s Reflection

“God grant me the serenity to accept the things I cannot change; the courage to change the things I can; and the wisdom to know the difference.” – Reinhold Niebuhr

“Do not store up for yourselves treasures on earth, where moth and rust consume and where thieves break in an steal; but store up for yourselves treasures in heaven, where neither moth nor rust consumes and where thieves do not break in and steal. For where your treasure is, there your heart will be also. (Words of Jesus from Matthew 6:19-21)

Therefore do not worry saying, ‘What will we eat?’ or ‘What will we drink?’ or ‘What will we wear?’ For it is the Gentiles who strive for all these things; and indeed, your heavenly Father knows that you al these things. But strive first for the kingdom of God and his righteousness, and all these things will be given to you as well. (Words of Jesus from Matthew 6:31-34)

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.