Despite numerous warnings about the multi-level marketing scheme of the German company, Karatbars International, the self-proclaimed “Rebel With A Cause”, V the Guerilla Economist, is recommending that you join him in his latest gold venture. On October 15, 2015, on Revolution Radio we hear “V” as radio host, joined by that other infamous Intelligence Insider “W”, and a third man who calls himself James The Russian Analyst. This latter guest is noted on RogueMoney.net as a “U.S. native Russian watcher for over ten years, former (temporary) Moscow resident, husband, Orthodox Christian layman, who likes Alexander I. Solzhenitsyn’s admonition Live not by lies!” If that is his motto, what is he doing with a fake name like James the Russian Analyst, and why is he hanging out with two of the greatest fakes ever to grace The Hagmann and Hagmann Blogtalk radio show?
V’s broadcast begins with blaring tinny music, and we strain to hear a man’s voice trying to advertise a DVD for “creating your own food like I do”. One hopes that this company paid nothing for their advertising spot, as we failed to understand what their spokesman was trying to say over the din. I still had not recovered from this experience when a gentleman gave some sort of introduction to the show saying “From the corrupt corridors of Wallstreet…. from gold… (What did you say? Do I need a hearing aid?)…came V the Guerilla Economist…he clears the fog of …disinfo…the Freedom Fighter, a Rebel with a Cause…”
Our radio host, V, ever unsure of his true identity, begins by referring to his listeners as Y’all as in Texas cowboy talk. He can’t seem to break himself of this odd habit, and even asks himself out loud why he keeps saying Y’all, when supposedly he is in New York. I lived 28 years in Texas, and believe me, V would not want to know what Texans really think of New Yorkers with a fake Texas twang. Banker, Baker, Karatbars, carrotbars, whatever; it is all the same to V as he juggles semantical accents and arguments all over the place to skirt the legalities of misrepresenting his credentials. In the meantime on this same show, W is joking about living in a missile silo with a rosebush on top. I think he means he used to go by the name of Rosebud. I am beginning to understand what a multi-level marketing scheme looks like.
If one types in Karatbars International into a search engine, one can read the words of this company describing their various gold products line. One can also find all types of scam warnings given about this company, which are then countered by the loyal multi-tiered marketing representatives. Probably the most authoritative warning comes from Quebec, Canada from the Autorite’ Des Marche’s Financiers (AMF). But let us take a look at what Karatbars has to say about itself.
Their webpage is very professional in design and summarizes their enterprise as “Karatbars International GmbH offers a wide range of products and options in the 999.9 fine gold market space. Our core products are 1g, 2.5g, and 5 g minted 24 karat gold ingots from LBMA accredited refineries. In addition to Karatbars classic core products, we offer collector cards for sports teams, professional athletes, and multinational charities. Karatbars has a custom branding card program whereby anyone that qualifies may have the company produce one, or thousands of branding cards that meet the customer’s requirements.” One can buy these products online as desired, and as always it is good to be a comparison shopper.
What we are discussing here in this post however, is their opportunity to join them in a multi-level marketing venture. And so we access their webpage which discusses the compensation plan. I am glad that they confess that their compensation package is confusing and not easy to understand, as that is exactly how I found their explanation to be. What I did understand is that there is the requirement to recruit other people who in turn recruit others, and these relationships affect your compensation. Now there is a lot of semantical nonsense going on in order to escape laws which govern illegal pyramid schemes. Somehow they have developed a system that has right and left legs; the left leg apparently being half as short as the right. If one desires to receive higher paybacks, all you have to do is pay more for your membership level. I am unsure how long it takes on average to recover this initial cost.
One of the observations made about Karatbars is that they are quite a bit more expensive than buying gold from other well respected companies. One example given said that in addition to the higher cost of Karatbars, there was also a shipping expense; whereas these other companies sometimes had free shipping. Now the Karatbars marketing reps argue that you are buying a product, not an investment. Why do they do this? Well it is well known in the US gold coin business, which is virtually unregulated, that they sell coins to collectors. If these coins were to be marketed as an investment, a not very well marked line is crossed which might cause the seller to enter into the world of investment regulations and laws.
What does Karatbars International claim? This company is fairly new, having been founded in 2011 in Stuttgart, Germany, by Harald Seiz, CEO. He is seen on a video as saying that their company goal is to “bring families from around the world true independence and financial security”. We are shown 5 photos as follows: 1. Financial Liberty (photo of affectionate young couple), 2. Financial Independence (photo of large modern house), 3. Hedging in a Financial Crisis (photo shows gold bars), 4. A second mainstay income (photo shows nice car), and 5. a career or main profession (photo shows huge yacht). Then they state that whether full time or part time, “you can achieve your financial goals”. Karatbars are not a product like carrotbars. They are an investment, and Karatbars International say in their video, “No longer fear a financial crisis, currency devaluation or hyper inflation”.
The other marketing rep comment I heard is that Karatbars have been sold in 120 countries (the video I watched said 74, at the time). But so what? Very few countries outside of the US and Canada have made a good inroad into implementing consumer protection laws. And just because Karatbars International comply with German laws, does not mean that you might not end up breaking a few US laws if you start recruiting US citizens into your pyramidal type marketing venture.
One of the company statements on their website says, “All Karatbars 1 gram gold bars are 1. certified and laminated with UV protective film. 2. Stamped with a valid trademark.” Apparently they also sell an extremely expensive devise that can read the code on the bar to ascertain the authenticity of their product in order to deter someone trying to counterfeit their gold bars. While reading up on the so called DNA system of authentication, my thoughts turned to a warning in the Bible in James 5:3, “Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days”. Since gold is the most inert, non-reactive of the metals, and never reacts with oxygen, one has to wonder why the Bible says that this particular gold rusts. There are several metals which do rust, such as iron.
Wikipedia has an article on Pyrite, which begins, “the mineral pyrite, or iron pyrite, also known as fool’s gold, is an iron sulfide with the chemical formula FeS2. This mineral’s metallic luster and pale brass-yellow hue give it a superficial resemblance to gold…the name pyrite is derived from a Greek word…”of fire” or “in fire”…pyrite is sometimes found in association with small quantities of gold. Gold and arsenic occur as a coupled substitution in the pyrite structure..”
So the question must be asked, why are Karatbars laminated with a UV protective film? My wedding and engagement rings are made of gold, and despite the fact that my hands over the last 31 years have been submersed in water on a daily basis, I have never noted any rust. Personally, unless I could test the gold content of high priced bars and coins, I would prefer to have the unlaminated ones. The day you have to laminate gold may be the day you should start wondering if someone is trying to stave off the conditions which might reveal a bit of fool’s gold. And while you are at it, ask yourself why V the Guerilla Economist, who was so highly promoted by Steve Quayle and Doug Hagmann as being one of the highest level financial insiders, should have to stoop so low as to promote a pyramid marketing scheme?
UPDATE 11/19/2015 This morning I was contacted by a “Sicilian Mobsta” who says that “V ain’t one of theirs”. The latest guess is that he is from India. Apparently this post has tested the mettle of V, and he is very worried about undergoing an authentication test, and has covered himself in some kind of UV protected Laminate so as to avoid having his inner corruption exposed.