Escaping the Glue Trap: Exiting the US Financial System

Having been in the gold business and the US financial system for well over a decade, and having literally talked to thousands of people from all walks of life, I have come to observe a few things about human nature and how it relates to the financial world. I came to the conclusion long ago that our present financial system is a rigged game, a setup, or a glue trap, if you will. This glue trap has been blueprinted and crafted by Wall Street quislings, complicit with corrupt government officials. Together they use their mouthpiece, the media, to pump out their propaganda poison into the minds of the mooing masses, intending to rob them of every dime they have.

Again, I am not trying to introduce a new kind of social behavioral science, I am just stating a few my own observations sprinkled with a pinch of perception about the nature of the beast, a little common sense, some old-fashioned logic, and a bit of 20/20 hind sight. Basically, here is. The people who have the most money to lose will lose the most, because they won’t do anything to exit the system before it’s too late. They are the ones stuck forever in the glue trap. These are the people who are influenced most by Wall Street and other voices, and consequently the group most effectively blinded and brainwashed by the system - - they are simply an inevitable fatality, waiting only for the coroner to arrive with his stethoscope. I will elaborate on that a little later.

On the other hand, people who only have a little money, value the little they have and will do something to save it. For simplicity sake, I will say that those who have less than $100,000 in total savings or investments are the people with a little, and they are the ones making plans to survive. These are the people who are stocking up on four to six months of food, medical supplies, water, tools, and other tangibles for the terrible days ahead. These are the people who are buying junk silver for barter and gold coins to preserve their wealth. These are the people who are getting completely out of the banks and financial institutions before Uncle gets their money.

Speaking of Uncle taking your money, you might want to listen to this radio program on the US financial system. It exposes the shocking facts about how the Federal Reserve, through one of its subsidiaries, the Depository Trust and Clearing Corporation (DTCC), not only owns and has possession of your money, but it can very easily commandeer it whenever it wants to, and you have nothing to say about it. Your money is legally in the hands of a band of thieves, with your name twice removed. Don’t believe me? Read the article, and do your own research.

Now let’s get back to the people who have a little. These are also the people who don’t have brokers, accountants, CPAs, insurance agents or financial planners telling them to stay in the market because “we’re in for the long haul.” These are more simple people who manage their own money while they see the financial and economic tsunami coming and are taking appropriate steps to get out of the way. These are the people who will leave the big cities before the Gestapo arrives. These are the people with common sense who know how to survive. For example, one of my clients, a cattle rancher from Kansas, quipped, “I’m pretty much all set. I already have my food running around here on the hoof. All I need is a salt and pepper shaker and a bottle of ketchup, and my 401(k) is already in a hole in my back yard.”

Leaving that piece of common sense behind, let’s consider the second group of people, the ones who have the most, and who will lose the most. Why will they lose the most? Because they will refuse, for a number of reasons, to do anything to get out of the system with their money before it is too late. Monetarily, this group of people has between $100,000 and two to three million sitting in financial institutions. These semi-affluent have a bit of wealth, but Siamesed at the hip with it comes a lethal dose of complex problems. By saying these things I am not trying to be insulting. My only motive in making these observations, is that possibly someone might recognize themselves in this glue trap and do something to get out before it is too late.

This sounds rather astounding, but I would say that over 90% of the people in this semi-wealthy category will never do anything to get out of their glue trap. Why? Let’s look at a number of reasons. First, they are generally the ones in the most denial of what is currently happening with the United States’ financial and economic meltdown. It is more convenient for them to play ostrich because they think that the problem might somehow magically vanish if they don’t acknowledge it. Second, their pride hurts to admit that their previously astute investment choices are not sitting in the best and safest places now. So, rather than swallow their pride and do something, they chose to stiffen up, ignore it and do nothing. Third, these are the people who have listened to the Sinbad and the Forty Thieves Wall Street gang too long, and their minds have long ago become burnt toast.

Also, the prospect of pain is too great for these people. If they take their money out of their IRAs, stocks, bonds, T-bills, mutual funds, annuities, CDs, money markets, or any other investment, they will have to pay penalties and taxes. These are the two big gorillas standing in the road ahead of them, and almost never will anyone do anything to save anything once confronted and intimidated by that hairy pair. People won’t even take a small amount of money out and do something with it. It is a denial thing, a pride thing, a pain thing, and an intimidation thing.

Combined with these already debilitating problems is another far greater threat, their entourage of hand-picked cheerleaders. These semi-rich have surrounded themselves with a host of self-proclaimed US financial system experts, their brokers, accountants, CPAs, insurance agents, financial planners, the obvious salt-of-the-earth type.

And, of course, when these people ask these financial parasites about liquidating any of their investments to protect or preserve what they have worked hard all their life for, the answer is always accompanied with red flags, sirens, screaming, intimidation tactics, swearing, and coercion, along with copious threats of penalties, taxes, and capital gains. At this point our poor soul in the glue trap of the US financial system doesn’t have a snowball’s chance . . . . , or any voice in anything - - they get smothered and end up simply dead in the water.

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