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Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●Austerity is the government’s method for widening
the gap between rich and poor.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive,
and the motive is the Gap.

This is the entire gold story in just five words: “Gold is safer than dollars.”

But don’t ask “why,” because that gets a bit confused. Here are some article excerpts from someone who regularly promotes gold [My comments inserted in brackets]:

The Daily Bell
Don’t Lose Your Gold

If you’ve included gold in your portfolio, you’ve made a wise move. Foreign currencies and foreign stocks also add to your safety – until someone takes them away.

An investor in the U.S. might wonder… what happens when a new law or a new executive order or a bureaucratic edict tells me to undo all I’ve done to internationalize my finances?

My name is Anthony Wile, and in addition to serving as Chief Editor of, I also serve as Chief Investment Strategist for its publishing parent, High Alert Investment Management.

One way they make money is by advising people to buy gold. When gold is going up in price, they advise buying it (because it’s going up). And when gold is going down in price, they advise buying it (because it’s cheap). And mostly of course, because it’s so very safe.

What (some Americans) are all detecting is hints that leaving their financial lives tied 100% to conditions at home makes them vulnerable to the arbitrary actions of their home government.

This is under the nonsensical theory that there is some way you can insulate yourself from the arbitrary actions of your home government.

But then, Wile himself tells you why you can’t insulate yourself:

Here are eight of the worries that may make you tense up just a little:

Reckless (federal) borrowing. The U.S. government’s monster deficits are going to get paid for one way or another. [He goes on to demonstrate ignorance of Monetary Sovereignty by suggesting you are liable for the federal debt.]

So much paper money (always ending in runaway inflation.) It’s just a matter of time. [Except we never have had “runaway inflation,” and whatever inflation we’ve had, was not caused by “paper money.”]

The death of privacy. (making) any attempt to hold nearly any type of asset privately would turn you into a criminal. [Meaning you can’t hide your gold.]

Lightning asset freezes. Thousands of government employees, in the IRS and other agencies, hold a summary power to freeze all your bank accounts and any account you have with other financial institutions. [Meaning you can’t hide your gold with any financial institution.]

Guilty until proven innocent. [Which has nothing to do with any advantages of owning gold.]

Lawsuits. Anyone with substantial assets can be wiped out by a predatory lawsuit. [Including gold assets]

Government power now reaches everywhere. The people who used to work for you – people you confided in – now work for the government. [They are the people who will tell the government where you have hidden your gold.

Dishonesty has become the norm. Many public officials routinely lie. [Has nothing to do with owning gold, and it’s nothing new.]

Then the article gets to some partial “solutions.”

Perhaps you’ve taken some of the following steps.

Buying gold. It’s the one truly international asset, not tied to any particular country’s economy.

Storing gold outside the U.S. That should put some distance between the gold and problems in the U.S.

Opening a foreign bank account.

Buying life insurance or an annuity tied to a currency other than the U.S. dollar.

Setting up a foreign limited liability company for holding investments, especially foreign investments.

But no, these solutions don’t really work, because as Wile admits:

. . . the same government you are hoping to distance yourself from can compel you to undo every one of them.

Remember Wile’s admission: The U.S. government has the power to undo any step you may take to protect yourself from the U.S. government.

As Wile himself says:

If the U.S. government decides to restore the prohibition on private gold ownership that was in force from 1933 to 1974, you’d be stuck.

Holding gold outside the country does little to change things. Congress can easily make it a crime not to bring the gold back to the U.S.

If you lose a big lawsuit, . . . the judge (will) order you to bring the money home and hand it over.

When the U.S. government goes looking for foreign currency to use to protect the value of the dollar, your foreign life or annuity policy will be easy pickings.

So what’s a guy to do? Buy gold? Not buy gold? Wile has the answer:

The Only Robust Solution
You’d be kidding yourself if you thought you could rely on any of those solutions.

If leaving your financial life tied 100% to the US economy, the US tax system and the US justice system leaves you feeling uncomfortable, there is one and only one robust solution: Use an international trust to protect your assets.

The trustee you select (probably a licensed trust company) is subject to the laws of its own county – not to U.S. laws. It can’t be forced to do anything by any court or other government agency in the U.S.

Huh? What about the judge ordering you to bring the money home?

What about Congress making it a crime not to bring gold home?

What about “the same government you are hoping to distance yourself from can compel you to undo every one of them.

And of course, there is another problem: What makes some other country safer than the U.S.? (Please name the nation you consider to be a safer custodian for your money than the United States.)

Of course, we’re talking about your money, so you won’t want to give up too much control. Getting the protection you want without handing too much authority to your trustee is a delicate matter.

The needed balance can be achieved, but it requires trust terms that leave you with just the right amount of say-so (not too much, and not too little), and it requires going to a country where the laws have been tailored for just that purpose.

“Delicate balance.” “Just the right amount of say-so.” “Not too much and not too little.” “Going to a country where the laws have been tailored.”

Well, that makes me feel safe — about as safe as walking on a wobbly high wire above hungry sharks.

So why is Anthony Wile suggesting such a high risk, low reward solution? I’ll give you one guess:

The best way I know of to get started is with Passport Financial’s International Trust Kit.

There just is nothing with which I can compare Passport Financial’s Trust Kit as a resource for understanding international trusts and then acting on that knowledge to get your assets out of harm’s way.

Appparently, Anthony Wile is branching out from marketing gold to marketing Passport Financial.

But, who is Passport Financial? Could it be this company?

Terry Coxon is the president of Passport Financial, Inc., a publishing company specializing in international financial planning, and is a senior editor for Casey Research.

Hmmm . . . And who is Terry Coxon?

On the basis of the (Security and Exchange) Commission’s opinion issued this day, it is

ORDERED that World Money Managers and Terence Michael Coxon be, and they hereby are, ordered to cease and desist from committing or causing any violations or any future violations of Section 206(2) of the Investment Advisers Act . . .

it is further

ORDERED that Terence Michael Coxon be, and he hereby is, ordered to cease and desist from committing or causing any violations or any future violations of Section 34(b) of the Investment Company Act of 1940, and it is further

ORDERED that World Money Mangers and Terence Michael Coxon, jointly and severally, shall disgorge a total of $971,777.54, and pay half the amount of prejudgment interest as described at 17 C.F.R. § 201.600(b), due from September 21, 1993, which we deemto be the date of their violative conduct . . .

And then there was:

In her May 31, 2005 order, Judge Patel found that the Commission had established Coxon’s failure to pay the disgorgement and interest amounts.

Judge Patel also determined that Coxon had the ability to pay some of that amount and was therefore in civil contempt.

Unless (certain) payments are made, the Court ordered Coxon incarcerated pending payment or a showing of good cause for failure to make payment.

Now, in all fairness, I don’t know how, or even if, Wile is associated with Terence Coxon, or if that is the same Terence Coxon who was mentioned in the above proceedings, or if Coxon was found innocent on appeal, or really anything more about what Wile is recommending than what’s printed here.

But somehow, if I were looking for financial security, I’d not first turn to gold, to Anthony Wile or to Terry Coxon.

That’s just my opinion.

What’s yours?

Rodger Malcolm Mitchell
Monetary Sovereignty

Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.