Friday, August 28, 2015

Wall Street & Their Protector
(The Government That Gave Them  Control Of The People's Money)
Will Turn To Debauchery Of Your Money 
Rather Than Let Their System Go Down
Alasdair Macleod has written a 5* timeless piece that summarizes much of the problem & how we arrived where we are. It is very much the way we see things & so we highly recommend you hit the link & take a few minutes to read it. A snippet: "The origins of a developing crisis are deeply embedded in the financial system and date back to the invention of central banks, and more particularly to the Bretton Woods Agreement, which was the basis of the post-war monetary system." .. stock markets are telling us that the debt crisis is now upon us again .. The detailed course that events will take from here cannot be predicted, but we can be certain that over the coming months governments will be ready to move heaven and earth to prevent a deepening crisis, by any means at their disposal. In this respect the lesson of the Lehman crisis is that flooding the system with money and guarantees of more money actually works.
Gone will be any pretense of monetary discipline,
gone will be any pretense of higher interest rates, and
gone will be any constraint on more debt. 
A crisis of malinvestment has become a crisis of the whole financial system, and will soon become a crisis of currencies.
We can be increasingly certain that debt will be extinguished not by debtors reckoning with creditors, but by the debasement of money,
and that this outcome becomes the unstated objective of policy makers .. In predicting this final crisis for any country that treads down the path of government corruption of its money, the economist von Mises described its manifestation as a crack-up boom, the boom to end all booms, when ordinary people finally realize the worthlessness of government currency and dump it as rapidly as possible for anything they can get hold of. The last vestiges of the currency's objective exchange-value evaporate .. This time the threatened currency destruction will be global, because where the dollar goes, and the dollar is still the reserve currency, so we all go."
[Cliff Note: We have said it many times before: We are living in the age of 'MONETARY DEBAUCHERY'. The authorities that control our money will destroy our currency before admitting their own failure. Their 'Federal Reserve System' failed in 2008 & there have been no structural improvements; just lots of 'duct tape'. The 'body' of the System was not rejuvenated. It was injected with lots of 'Botox' to make it look OK.]
LINK HERE to the essay
The Central Bankers’
Malodorous War On Savers
David Stockman* explains the financial repression being employed by central banks to attempt to prod Main Street into borrow more money & stimulate the economy, how it is helping more "carry trade speculators gorged with free funding in the money markets and to bloat the profits of Wall Street strip-mining operations" .. he references a recent FT article in the war on cash  & comments on the article saying their view is:  "The private economy and its millions of savers exist for the convenience of the apparatchiks who run the central bank."  .. concludes by commenting on the actions & statements of the head of the NY Fed's Bill Dudley, economist Ken Rogoff & others who advocate repressed interest rates & the abolishment of cash in the name of protecting & stimulating the economy: "In their palpable fear and unrelieved arrogance, would they now throw millions of already ruined retirees and savers completely under the bus? Yes they would."
LINK HERE to the essay
The Illusion of the Omnipotent Central Banker 
is the Biggest Bubble We've Ever Seen
Incrementum's Ronald-Peter Stoeferle believes the secular bull market in precious metals remains intact .. Stoeferle acknowledges the confusion experienced by gold investors when the Federal Reserve doubled down on its quantitative easing efforts in 2011 & gold began its long decline - he offers the diminishing marginal utility of QE as a possible reason for this disconnect, while also pointing out that gold has actually risen against currencies other than the U.S. dollar. Stoeferle says that continued strength in the dollar will add to deflationary pressures, he doesn’t believe the Fed will raise interest rates .. he sees financial repression of interest rates worldwide as contributing to an addiction by governments to "free" money, but they will not be able to get away with fiscally imprudent policies forever .. "This illusion of the omnipotent central banker is one of the biggest bubbles that we’ve seen .. Sooner or later, we will see rising inflation numbers and rising inflation expectations. Then the exit from the bond market will be very small. There is only one way this market can possibly move." .. Stoeferle sees many examples of financial repression - a move towards abolishing cash is another example - "Banning cash is the only effective tool to block all escape routes from the paper money system."
LINK HERE to the article
LINK HERE to our related recent post
Dr. Ron Paul*'s 
80th Birthday Speech
Weekend Special
Dr. Ron Paul* delivered a stirring speech at a celebration for his 80th birthday hosted by the Mises Institute. Dr. Paul is introduced by Tom Woods & Judge Napolitano. Audio was originally made public by LewRockwell.com .. 50 minutes
Gold is Very Good 
for Diversification
Juan Carlos Artigas, World Gold Council, discusses the value in owning gold .. 2 minutes
Earthquake in British Columbia
LINKED TO FRACKING
according to B.C. Oil & Gas Commission
CTV articles & clips on a company that has seen its fracking work linked to an earthquake in 2014  .. that company stopped work this week after another quake in northeastern British Columbia. Progress Energy, owned by Petronas, stopped its operations after a quake on Aug. 17 that occurred 114 kilometres from Fort St. John.
LINK HERE to the article
LINK HERE to another article
LINK HERE to a prior post
Visual Capitalist:
It’s Time to Pile Back 
Into Gold Stocks
click on any chart to enlarge
Some notes on the above charts - The ratio between the gold/silver sector to the S&P 500 is unprecedented. .. The gold bear market is closing in on being the longest in bear market in history. . Gold stocks have never been this cheap relative to the price of gold... The bear market in the TSX Venture now stands at 1,090+ days ..  The divergence between the S&P 500 & Bloomberg Commodity Index is at an all-time high
LINK HERE to the article

FT on Cash: "Another ‘Barbarous Relic"
Editorial of The New York Sun highlights the headline overa Financial Times editorial calling on governments to ban cash for everyone .. "This is what it has come down to. The government has run down the value of the dollar to less than 2% of what it was worth when our parents were born. Now it is itching to ban the use of banknotes and gets an endorsement from, of all broadsheets, the 'world business newspaper.' The FT refers to the banknotes as 'another ‘barbarous relic,' which, it says, is the 'moniker Keynes gave to gold.'" .. Actually, it was to the gold standard that Keynes gave that moniker .. The Financial Times concludes with this immortal sentence: "'The benefits of cash are significant — but they need not be offered for free.' You may be able read it for yourself at any newsstand — for a small poke of gold dust, which is the moniker the Sun uses for money."
LINK HERE to the article

From Our Archives:
January 20, 2015
                                                    
Swiss Bravery
Have the Swiss Taken The First Step
Away From Fiat Money?
"Congratulations to the doughty Swiss, we say. The decision of their central bank to remove the cap on its currency, allowing it to soar against the Euro, is causing the foreign exchange markets to be struck with the dreaded turbulence. It may well make things difficult for Switzerland in the short run. But it was a vote of no confidence in the quantitative easing that the European Central Bank is about to undertake .. A long-term chart of the Swiss franc shows that it (and the Euro) have kept pace with the dollar in this decline. Gold hasn’t changed its policies once during this period. Its quantity hasn’t changed a whole lot; it’s still inert; and hasn’t anybody found any world-shaking new industrial uses for the silent money? .. The bitter truth is that all the sturm and drang over the Swiss franc is a feature of the age of fiat money. The exclamations of horror that have greeted the decision of one tiny country to stop playing the same game as the bigger countries testify to nothing so much as the absurdity of the fiat system. We’ve never understood the virtues of any country running down the value of its money. We’ve long felt that one country or another — Switzerland, Israel, Britain . . . someone — just ought to stop issuing its currency by fiat and return to a classical system. Wouldn’t it be something if it turns out that Switzerland has taken the first step?"
- The New York Sun
link here to the editorial

From Our Archives:
May 22, 2015
                                                                                             
Gold Is a ‘Barbarous Relic’ 
but These Are ‘Barbarous Times’
Sprott talks with Free Marketeer Jayant Bhandari .. he sees gold becoming much more important in North America & Europe going forward, mirroring its role in India’s troubled economy .. "People in India buy gold as a store of value. In my view, they don’t care about appreciation. In fact, they may not mind losing part of their purchasing power. They are desperately attempting to secure some of what they have. Why are Indians turning to gold? Individuals in India are recognizing that real yields from stocks, bonds, and real-estate will likely be negative. Gold offers a store of value that pays no yield, but when real yields are negative, gold becomes competitive. A whopping two thirds of India’s household savings are in property and gold .. Some call gold a ‘barbarous relic,’ after famed economist John Maynard Keynes used this term to describe the gold standard in the first half of the 20th century .. They’re right. Gold is a barbarous relic, but these are also ‘barbarous times.’ When risks outstrip potential returns, you’re more likely to lose money in investing than make money."
LINK HERE to the article
Hey CNBC, New York Is NOT
the "Most Powerful City In the World"
"At 8:00 a.m. Eastern Time, CNBC‘s announcer says, 'From The Most Powerful City In the World, This Is Squawk Box.' What bothers me is the squawking about your importance. What irritates me even more is that Beijing has been the most powerful city when it comes to moving markets. Every other idea spewed this week has been about the impact of the Chinese authorities and the policy impact from the Politburo that 'destroyed' trillions of equity market value. It even appears that the Chinese are dominating the discussion in Jackson Hole, Wyoming where the Kansas City Fed is hosting their annual symposium .. The only objective force challenging the Fed’s omnipotence is the market, and the Fed’s QE and forward guidance have done much to emasculate the signalling power of the BOND, currency, precious metals as an opposing force. The equity markets act in concert to help the world’s central banks maintain the illusion of omnipotence. I have heard the rumor that the only way to get in the Jackson Hole Symposium is to follow the green brick road to the Lake Jackson Lodge, knock on the door, click your ruby slippers and pronounce your belief in the omnipotence of the all-knowing central bankers."
- Yra Harris
LINK HERE to the commentary
How & Why the State 
Controls Money & Banking
Tom Woods discusses the view of free market economist Hans Hoppe .. he explains how the government creates money & conducts the financial system  .. 34 minutes
TAKE A BREAK?
Great Dad 'Wins' Thanks go to old friend Larry Shimmelfarber.
click to enlarge
OUTSIDE OUR BOX
The 5 Things You Need
To Address & Help Reverse Most Illness
Dr. Mercola article on the general solution to most illnesses .. The basic principles involve sun, water, movement, food, & sleep .. "By addressing sun exposure, drinking water, movement, food, and sleep, you can reverse most chronic health problems .. Many new to natural medicines fail to comprehensively integrate all of these principles to reap the powerful synergistic benefits they can provide .. Insulin resistance is at the root of most chronic disease. Resolve insulin resistance and you no longer have type 2 diabetes, and you dramatically reduce if not eliminate your risk of cancer, heart disease, and Alzheimer’s."
1. Access Sun Exposure as Much as Possible
2. Drink Clean Water, Free of Toxins Like Chlorine and Fluoride
3. Eat Real Food at the Right Time, The Timing of Your Food Is KEY
Improving Your Mitochondria for Your Health, Energy, and Longevity
4. You Must Regularly Move Your Body to Stay Healthy
5. We All Need to Sleep Eight Hours to Stay Healthy
LINK HERE to the article
FOR YOUR WEEKEND VIEWING PLEASURE
Four Horsemen
An award winning independent feature documentary .. government advisers & Wall Street leaders break their silence & explain how to establish a more just society .. There are a couple points where we wouldn't agree 100% with the producers BUT their description of money creation & their general thesis makes this well worth watching .. a couple years old but still applicable .. about 1.5 hours
The Federal Reserve is "Rigging" Market Prices
"The 'wealth' created in the late-stage U.S. credit boom was largely phony. It came as the Fed dropped the price of money to zero. Underpriced credit gave the gamblers, schemers, and cronies the wherewithal to manipulate markets and bid up their own assets. But now .. All that whining and complaining about how the 'One Percent' were getting rich ,, All those calls for more regulation and redistribution to solve this 'problem' … All that claptrap about how capitalism always made the rich richer and the poor poorer  .. This was an inside job .. It was their way, not only of giving themselves trillions of dollars of other people’s money, but also of holding onto the power, status, and wealth they’d accumulated over the last three decades. Politicians had no more interest in solving this 'problem' than a wolf wants to solve the problem of too many fat sheep. But don’t worry. A real bear market will take care of it! .. The Fed has been committed to using its power to prop up asset prices. From an economic perspective, it makes no sense. Central banks have no way of knowing what assets should be worth. Nor do they have any real reason to want to see stocks be more expensive. As Austrian School economist Friedrich Hayek made clear, economic knowledge is dispersed among individuals, not among government technocrats. Through the workings of free markets, individuals 'discover' asset prices; the professors of finance appointed to the Federal Open Market Committee are not supposed to rig them through market interventions."
- Bill Bonner
link here to the essay