The Importance of Holding Physical Gold In Bankocracy and Gary North Missing the Young Factor

In the land of central banking where large financial institutions buddy up with government bureaucrats for their fill of private profits and socialized losses, here is just another outcome of an unsustainable fractional reserve banking system (Ht Rob Wenzel):

Since Gerald Celente's commodity broker, Lind-Walldock, was owned by MF Global which recently went bankrupt under the inept leadership of former New Jersey Governor, U.S. Sentaor, and CEO of Goldman Sachs Jon Corzine, Celente lost his gold account and future contracts to Chapter 11 bankruptcy proceedings. Financial catastrophes often provide political cover for government wealth confiscation; Celente's predicament isn't unexpected.  As former Kansas City Federal Reserve President Thomas Hoenig candidly admitted, the largest banks (in the U.S., but the concept applies globally) have essentially become "public entities."  Like gold confiscation during the Great Depression or the myriad of government declared "bank holidays" in response to bank runs, the financial system that serves as a catalyst for an ever growing state always takes paramount consideration over the enforcement of basic property rights of the citizenry.  Such is the nature of fractional reserve banking and our modern monetary system.

Gary North has an interesting piece out at LRC today that outlines what he sees as future voter discontentment with entitlement programs.   This refusal to pay for entitlement programs will leave many retirees who counted on the plundered Social Security surpluses for their golden years in deep, deep dog *you know what.*  Here is an excerpt:

The Retirement dreams of most Americans will fade, because most Americans count on Social Security and Medicare to provide them with a comfortable retirement. They will find that this is not after Atlas – the broad mass of taxpayers and voters – at long last shrugs.

This may take a decade. It may take a bit longer. But it will come. Voters are not fools. They will figure out what that pain in their left arm is. They will figure out that they can relieve themselves of this pain, not with the cortisone of fiat money inflation, but by shrugging.

For those who are not yet retired, I recommend that you make other plans. Be a shrugger, not a shrugee.

There are a few issues here.  I haven't done any background research but I am gonna go out on a limb here and say that the baby boom generation is larger in population size than those aged 18-45.  I am not sure what age the baby boom generation begins and ends but let's just say it's 46-65.  Whatever the case, baby boomers tend to be within 10 or so years of having access to Social Security and Medicare.  Once they are on the rolls, cutting the programs will only come at the behest of their cold, dying hands.  In this case, it will be votes which they cast in massive numbers to preserve their own funding.

What North doesn't mention is the youth, namely those around my age (23).  I have yet to find any of my peers that truly believes Social Security and Medicare are awaiting us after decades of labor.  Sure there are some so uninformed on politics and reality that they don't know who the vice president is and who believe they will be there.  But the majority of young adults know the truth; we are being robbed to pay for a system that lacks as much solvency as the scheme that put Bernie Madoff behind bars.  In the end, it will be us that shrugs and it won't come from the ballot box but the refusal to contribute.  Whether that means leaving the country for better opportunity or earning a living outside the reach of FICA taxes.  When it inevitably comes down to money printing, sounder currencies will be sought much as they are now.

The internet and increased mobilization of capital through globalization should strike fear into those who think generation "facebook" will sit around and be treated like a pool of wealth to be forever siphoned to pay for another generation's retirement.

I wanna end by pointing out what has to be one of the best Ron Paul videos ever:

And yet another reason why the youth know their goose is being roasted- their support of the only guy running for president who isn't a warmongering banker whore.