Sunday, May 29, 2016

Confidence In Central Banks 
Is Plummeting
Investors in general are losing confidence in central bank money. If you think of it as a competition, there are many forms of money. The dollar is money, the euro is money, bitcoin is money, gold is certainly money, silver can be money, and at times in the past, feathers and clamshells have been money. Money can take many different forms based on shared values and the confidence that other people will take it as a unit of exchange. What’s happening right now is that investors are looking at central banks and saying that almost eight years on from the financial collapse, growth is still well below potential. Debt is still rising faster than growth, and debt-to-GDP ratios are increasing. It’s true; we have not seen that spectacular collapse in the international monetary system which I do expect. I’m certainly not taking that off the table, and I’ve been writing and thinking about it for a long time. It hasn’t happened yet, but the signs are that the system is under more and more stress. The central bank policies are not only failing to get economies back to trend growth, but they’re increasingly seen as futile. It’s like the joke about 'more cowbell' from that old Saturday Night Live skit; doing more isn’t working. If you’re an investor and say, 'We don’t have much confidence in the Fed and their dollars or the European Central Bank and their euros or the Bank of Japan and their yen. Is there another form of money out there?' the answer, of course, is gold."
- Jim Rickards*
LINK HERE to the interview transcript

1 comment:

Anonymous said...

who's bribed, who's not?'ll never know...........

The Whistleblower By Full Measure Staff Sunday, May 29th 2016

Birkenfeld: My government, the Department of Justice, put me in jail, and my government, the Internal Revenue Service, paid me the largest reward in U.S. history.

As a manager at Switzerland’s largest bank, UBS, Bradley Birkenfeld found himself part of a massive, longstanding scheme to help wealthy Americans evade taxes.

Birkenfeld: There were 19,000 offshore, illegal accounts with $20 billion in assets.

Sharyl: Of Americans?

Birkenfeld: Only of Americans. This was the America desk, and it was based out of Lugano, Geneva and Zurich.

In 2007, he decided to blow the whistle: the first banker ever to break open the legendary Swiss bank secrecy.

Birkenfeld: They didn’t find me. I sought out the DOJ, the IRS, the SEC and the U.S. Senate back in 2007. And the problem here is that when I gave them this information, they were hostile towards me at the DOJ from day one.

Birkenfeld suspects hostility from DOJ, the Department of Justice, had something to do with UBS’s powerful connections. The bank was a top donor to then-President George W. Bush.

Birkenfeld: They had over a trillion dollars in assets. So, you can imagine they had offices worldwide. They had a lot of political influence and they hired politicians to help them, whether it was for marketing, or for presentation, or for lecturing or what have you.

And there were also politically influential UBS clients referred to as “PEPs”.

Birkenfeld: PEPs are ‘politically exposed people.’ We had a very secretive desk in Zurich, in which no one really knows who those account holders were. But we did have a dedicated desk because I knew the gentleman there, and he handled accounts directly out of Washington, D.C.

Birkenfeld: We still don’t know who the ‘PEPs’ were. They should be made public to the American public, so they can see who was breaking the law. Most of the other people in this country pay their taxes, but these people made millions, if not billions offshore. So why is it that those names aren’t made public?

While he, the whistleblower, was prosecuted, the government worked behind closed doors to cut a deal with UBS, which was one of President Obama’s top donors. Secretary of State Hillary Clinton took the lead in negotiations with the Swiss Foreign Minister.

Sharyl: Do you think it was unusual that the Secretary of State, at the time, Hillary Clinton, intervened in this giant criminal case?
Birkenfeld: She has no right in getting involved in an international criminal investigation