Sunday, June 26, 2016

Peter Schiff*: "Brexit Is Just 
What The Doctor Ordered"
"Brexit could also place severe strains and uncertainties on the global currency markets. The fear of financial losses could encourage investors to seek safe haven assets like gold .. On another level, the vote in the UK illustrates the fundamental inefficacy of the monetary and financial policies that have been implemented by the world’s dominant central banks and central bureaucracies. For years, global elites have been telling us that deficit spending, government regulation, and central bank stimulus is the best way to cure the global economy in the wake of the Financial Crisis. To prove these points, elite economists associated with the government, academia, and the financial sector have pointed to all kinds of metrics to show how their policies have been successful. But the man on the street perceives a very different reality. They know that their living standards have fallen, their cost of living has risen, and that their job prospects have deteriorated. They see a loss in confidence and economic stagnation when they are being assured the opposite. This disconnect has fueled anti-establishment sentiment on both sides of the Atlantic. British voters may not know what they will get with an independent Britain, but they knew that something was rotten, not just in Denmark, but all over the European Union. The same holds true in the United States. Until our leaders can paint more realistic pictures of where we are and where we are going, we should expect more 'surprises' like the one we got yesterday."
LINK HERE to the essay


Anonymous said...

LTCM lost $4 billion and never missed a margin call. It all depends how you write your legal documents.

think about that

Anonymous said...

Brexit Is Only the Latest Proof of the Insularity and Failure of Western Establishment Institutions

In 2008, their economic worldview and unrestrained corruption precipitated a global economic crisis that literally caused, and is still causing, billions of people to suffer — in response, they quickly protected the plutocrats who caused the crisis while leaving the victimized masses to cope with the generational fallout. Even now, Western elites continue to proselytize markets and impose free trade and globalization without the slightest concern for the vast inequality and destruction of economic security those policies generate.

The solution is not to subserviently cling to corrupt elite institutions out of fear of the alternatives. It is, instead, to help bury those institutions and their elite mavens and then fight for superior replacements. As Hayes put it in his book, the challenge is “directing the frustration, anger, and alienation we all feel into building a trans-ideological coalition that can actually dislodge the power of the post-meritocratic elite. One that marshals insurrectionist sentiment without succumbing to nihilism and manic, paranoid distrust.”

Corrupt elites always try to persuade people to continue to submit to their dominance in exchange for protection from forces that are even worse. That’s their game. But at some point, they themselves, and their prevailing order, become so destructive, so deceitful, so toxic, that their victims are willing to gamble that the alternatives will not be worse, or at least, they decide to embrace the satisfaction of spitting in the faces of those who have displayed nothing but contempt and condescension for them.

There is no one, unifying explanation for Brexit, or Trumpism, or the growing extremism of various stripes throughout the West, but this sense of angry impotence — an inability to see any option other than smashing those responsible for their plight — is undoubtedly a major factor. As Bevins put it, supporters of Trump, Brexit, and other anti-establishment movements “are motivated not so much by whether they think the projects will actually work, but more by their desire to say F___ YOU” to those they believe (with very good reason) have failed them.

Anonymous said...

In light of recent events, instead of taking Q&A from readers this week Jim and Bill will discuss the Brexit decision and the effects thereof.

Anonymous said...


Contrary to popular belief, downward manipulation of gold prices and upward manipulation of paper-based assets (stock and bond prices) is NOT solely done for short-term private profit. Short-term profit is the primary motivation of the smaller, more routine, day to day manipulations, such as those involved in the LIBOR and the London “gold fixing” scandals. However, major market manipulations have quite a different feel and character. The people who run our biggest banks, and the hedge funds they control, in the UK and the USA, work very closely with governments, and, on the surface, at least, profess high ideals and alleged “patriotism”.

The bottom line, however, is that they behave in certain very predictable ways. Most important to understanding them, is understanding the “revolving door.” Government operatives go to and from the banking industry, on a regular basis. Their reward comes in the form of lucrative jobs and/or consulting contracts. The size of the goodies are determined by the usefulness of the particular person during his time in public office, and his potential future usefulness if and when he takes public office again.

A short glance at the $1 million dollars per speech, paid to former Federal Reserve Chairman, Ben Bernanke and the tens of millions paid to Bill and Hillary Clinton, speaks for itself, and I need not elaborate further. Such examples, however, are simply the most open and obvious, and are “tip of the iceberg.” There are literally thousands of people who owe allegiance to private financial players, who are always moving back and forth between employment and consulting gigs with the banks and alleged “regulators”, like the CFTC, SEC, the British Financial Services Authority (FSA), as well as the Federal Reserve, Bank of England, and both the US and HM Treasuries.

In short, the big banks are tightly woven into the government.