Thursday, December 08, 2016

India Confiscates Gold, Even Jewelry
Mish Shedlock*: "Global financial repression picks up steam, led by India. After declaring large denomination notes illegal, India now targets gold .. It’s not just gold bars or bullion. The government has raided houses, no questions asked, confiscating jewelry .. Evidence suggests the politically connected, and their friends, knew about the ban on cash and acted in advance. Everyone else is stuck .. India’s raid on gold reinforces its ban on cash. Short term aside, these kinds of actions will increase demand for gold .. I keep wondering: what’s next? People pretend they know, I admit I do not. However, I am quite sure a currency crisis is coming. Where it strikes first is unknown, but the list of likely candidates increases every year .. My spotlight has been on Japan, China, and the EU. India caught me off guard, but it adheres to my general theory this pot will eventually boil over in a cascade from an unexpected place, outside the U.S. .. U.S. actions may cause a currency crisis, but I believe a crisis will hit elsewhere first. If I am correct, gold will be the safe haven, regardless of currency, but especially where the crisis hits."
LINK HERE to the commentary

1 comment:

Anonymous said...

One way to finance Government I suppose ... confiscate the currency and then jewelry. Not very honest, but then what else is new.