SideNote: And the gold confiscation starts, the sleight of hand trick by the elite, provide plenty of fiat money with one hand, while taking away your gold (real money) with the other hand. *Ho*Ho*Ho* And if there is a huge financial collapse like many predict, the reality is, food would not make it to market, and you can't eat gold. History has shown, that scarcity of food turns men into hungry wild animals, hunting for food from house to house, and town to town with clubs and guns. Food for thought.

GRIM
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

India’s Failing Gold Monetization Scheme: Seizure Imminent?
Submitted by Tyler Durden on 12/13/2015 19:25 -0500

Submitted by Paul-Martin Foss via The Mises Institute,

India’s newest gold monetization scheme has been a colossal failure. After one month, it has netted only one kilogram (2.2 pounds avoirdupois) out of an estimated 20,000 tonnes (44 million pounds avdp) of privately-held gold. Why is that? Well, let’s look at how the program works.

Gold-holders turn their gold over to a bank. The banks melt the metal down and provide it to the central bank to loan to jewellers.

In exchange, the central bank provides gold accounts to the banks on behalf of the gold depositors and pays interest on those deposits.

The interest rate on those deposits is a little over 2%, while the inflation rate in India right now is over 5%.

The deposits are time deposits, meaning that depositors receive their principal repaid at the end of the term; short-term depositors receive gold or rupees back, while medium- and long-term depositors receive only rupees.

So you give up all your gold, get at most a -3% rate of return on your investment, and might get both your interest payments and principal paid in rupees that the government has historically devalued at up to 15% per year. And the government wonders why gold-holders aren’t flocking to offload their gold?

But not to worry, the government will make sure this scheme works:

“A finance ministry official said if banks fail to win over temples, the government could intervene directly as it is looking for a big boost to the scheme to keep both imports and the current account deficit under control.”

Shades of 1933 all over again. One would imagine that outright gold confiscation from Hindu temples would result in massive protests and quite a bit of bloodshed. And while most rational people would assume that the government would be smart enough to avoid doing something so drastically stupid, this is the same government that developed the cockamamie gold monetization scheme in the first place. Never underestimate the idiocy of government bureaucrats, especially when those bureaucrats are trying to save face.

More…