the dollar vigilante blog
The Weekend Vigilante March 23, 2013
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Hello from Georgetown, Guyana,
No, it's not in Africa. Don't feel bad though, I didn't really know where Guyana was either. But if you are looking to go to a place that is almost completely untapped for profitable potential, put Guyana on your list of places to consider.
It's a tiny country in the northeast of South America with an even tinier population of 750,000... but incredibly rich in natural resources and opportunity overlooked by almost everybody (hint: go where no one else is going). The amount of business opportunities is staggering. As with many such tiny countries like this you can very easily and quickly be in the conversation with all the most influential people.
As we flew in on my friend's private jet we flew over hours and hours worth of dense Amazon jungle. We wondered where was all this deforestation that the enviro-watermelons (green without, red within) and the mainstream presstitutes propagate. I found out a few days later in a meeting with two of the top government officials in the country that under the Kyoto protocol, the Norwegian government is somehow paying them $250 million per year not to harvest any of the trees in the country. I tried to explain to them that if they privatized all property in the country that the area would make much, much more than $250 million per year. To give them credit, they listened quite intently to all my crazy ideas.
There are two take-aways from my trip here. The first is, as with almost all smaller, out of the way countries, that as foreigners you can very quickly and easily meet all the most influential people in the area. The second is what I have found anywhere in the world: you can almost cut any deal you'd like with the locals... but the biggest question the local government officials will have is, "what's in it for me?"
I even proposed that they privatize the entire country, turn it into a corporation, make it tax and regulation free and make it a publicly traded company on a major stock exchange. The idea was new to them but they listened quite intently... especially when I suggested that they would have a significant interest in the company (and would profit far more from that ownership than how they profit now).
We are just about to take off to Aruba for the night, though, and pushing this idea would take weeks, months or years of focused attention so it will likely all be forgotten as soon as we leave... and I just don't have the time to stay on top of it... so it will likely be soon forgotten and the status quo will likely remain unchanged.
That aside, the main reason for my trip was to check out a number of gold mining opportunities in the country and in regards to that the trip was a success. The local politicos are very open to investment in the mining sector here and I may soon tell subscribers more about the opportunities I've uncovered in a mostly unknown, undiscovered area ripe for capitalist exploitation (wealth creation).
WILL CYPRUS BECOME THE TUNISIA OF THE EURO COLLAPSE?
Unfortunately we still live in a government-centric, statist world and that means that almost all major deals are done behind closed doors usually with envelopes full of cash slipped into the pockets of a few people who control all the guns. This can be seen very plainly in Cyprus this week. As I write, the banks in Cyprus are still closed and all manner of secret, backroom meetings are occurring as the top politicians and bankers negotiate on how they can do the best deal for themselves and further enslave and indebt the local people - who are always at the bottom of the list of people any government official is working for.
The Russian government is very interested in the developments in Cyprus as it is estimated that Russian citizens hold between a third and half of all Cypriot deposits and are believed to have more than $30 billion in private and corporate cash in the island's banks.
Russian president, Medvedev slammed the European strategy to bail out the near-bankrupt eurozone member.
"This scheme that is being discussed on Cyprus now looks absolutely absurd," Medvedev said.
He is right. It is absurd, but much more than he knows. We have a situation where a fiat currency has been mandated in a given geographic region in a completely unworkable plan to combine numerous regions under one monetary system. Each region has various levels of fasco-socialist democracies and very different demographics and cultures... which has led to massive amounts of government debt as more profligate governments were able to borrow as if they were the more restrained ones. Then the banks stupidly bought a lot of the government debt. As each country begins to collapse, such as Greece, their bonds plummet and this ends up making countless banks insolvement. The solution they've come up with so far to deal with this issue is having the central bank print up more money and lend it to the insolvent banks. It's either that or let the banks collapse, as they rightly should.
Letting many banks in the Eurozone collapse, however, could cause a chain of events that very easily could end up with the complete collapse of the euro (which also would be good but somewhat uncomfortable for many people there in the near term). On the other hand, printing money and lending it to the banks to prop them up does not solve the problem and only makes it worse over time... but it puts off a complete collapse of the euro into the near future rather than today.
As of the time of this writing, the latest proposal is to not steal any money from any Cypriot bank accounts with less than 100,000 euros... but for those over 100,000 they are bandying about figures like a 40% "haircut". We'll see if this goes through or not... and then we'll see if this doesn't set off World War III with the Russian government turning off natural gas to the rest of Europe in retaliation.
No matter what happens, Cyprus has just commited suicide. Even if they call the whole thing off now, who would bank in Cyprus? If they default and drop out of the EU it will be a number of years to rebuild (and will be almost a completely desolate economy in the meantime) and if they do go ahead with the confiscation, the entire banking industry --which is almost completely the economy of Cyprus-- will evaporate. It is the proverbial rock and a hard place that we have been talking about for years as we progress towards The End Of The Monetary System As We Know It (TEOTMSAWKI).
Anyone with significant assets in Europe should now be sitting straight up at attention and be moving now to internationalize those assets outside of the Western monetary system. And, those in the US and other Western countries should also be aware that this is your last warning bell. This entire ship is a-goin'-dowwnn.
BITCOIN AND GOLD'S REACTION TO THE CYPRUS SUICIDE
One of the most interesting things related to what is going on in Cyprus in the last week has been gold and bitcoin's price reaction to the events.
While gold moved a few dollars higher on the news it was far from what I would have expected considering we currently sit at the edge of TEOTMSAWKI. The whole world must have normalcy bias to not be bidding gold higher in this environment. While I am not a huge believer in massive manipulation in the gold market this has definitely moved me closer to that camp!
Especially when bitcoin, the free-market currency, has skyrocketed since the Cyprus crisis. The following chart says it all.
At the beginning of the year, bitcoin was trading at $15 per bitcoin. It was trending steadily higher as the currency catches on throughout the world, including Iran, Argentina and other places with currency controls. But after the Cyprus news hit the airwaves bitcoin skyrocketed, reaching an all-time high of $73.75 yesterday.
Spaniards, probably realizing that the bank accounts in their PIIGS country could easily be next, have been making bitcoin apps a lot more popular. One market strategist says that bitcoin's recent rise is attributable to nervous Europeans turning in euros from their at-risk bank accounts for bitcoin.
The difference in trading between gold and bitcoin is enough for me to raise an eyebrow or two.
Even more importantly, however, is that bitcoin is absolutely exploding as a free-market currency. We've sold major products such as passports at TDVPassports.com in bitcoin and even plan to sell lots at Galt's Gulch Chile in exchange for bitcoin. All of the dozens of staff under the TDV Media umbrella also wish to now be paid in bitcoin. This is a massive monetary revolution in progress. One man in Alberta, Canada, is even accepting bitcoins for his house. In what could be the first transaction of its kind Taylor More will take CA$405,000 for his Crownsnest Pass...or its equivalent in bitcoin.
I've even recently relayed to TDV subscribers that I see bitcoin-related businesses as being the next multi-billion dollar (or multi-million bitcoin) businesses and will be relaying many of my business ideas to them over the coming weeks.
And, to top it off, we have already started some game-changing bitcoin businesses that I think will shock the world. I'll be announcing one of them, related to the crisis in Cyprus, on Monday here at the TDV blog.
Stay tuned! Things are changing very fast now in TEOTMSAWKI and TDV is going to be on the forefront of this monetary collapse and revolution... and rebirth as a free-market monetary system.
In the meantime, I have just arrived via private jet in Aruba and it is Semana Santa (Easter week) and spring break. Senor Frog's beckons. Oh, and just a quick note to say that the Liberty Forum in St. Kitts has been rescheduled for late September/early October. Be sure to mark your calendars accordingly.
Until next week! Keep your head up... there are going to be massive paradigm shifts in the coming years and those who are not aware will be having some uncomfortable moments. Those who are aware will stand to profit immensely in the Great Transition to come.
Anarcho-Capitalist. Libertarian. Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences including his own, Anarchapulco, as well as regularly in the media including CNBC, CNN and Fox Business.
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