The gold-bug is the deluded hoarder who lives in a fantasy world scripted and controlled by the socialist globalist bankers. His claim to fame is that gold, silver, oil or some other commodity (such as bitcoins) is money which is “real” and has “intrinsic value.” They “believe” in gold, silver, oil or bitcoins. This belief is at best a self deception and at worst an outright self serving globalist lie.
And they can point to legitimate philosophers that had the same, wrong view. Adam Smith, for instance, developed a very correct economic theory based on supply and demand, but walked right into the goldsmiths trap by believing in “money that has intrinsic value.” Von Mises made the same mistake. So did Ayn Rand.
But because the philosophy was greater than the philosopher, we could use their own reasoning to discover their error by claiming “honest money has intrinsic value.” In their philosophy they exalted human effort in the creation of value, but when talking about money they “believed” without proving what the “experts.” Continue reading
“There is only one thing more painful than learning from experience, and that is not learning from experience.” ~ Archibald MacLeish
“We all make choices, but in the end, our choices make us.” ~ Andrew Ryan as a character in Bioshock
It will be interesting to see if Dandy Don and the Republicans can get their own house in order.
The party leadership, particularly in the House, encouraged the frivolous use of Congressional time with their fifty odd and meaningless votes to repeal Obamacare. They are now so used to acting like powerless frat boys, that they can’t seem to buckle down and get to work.
Well, maybe that is not all that bad, all things considered. Continue reading
The central struggle since the inception of the Republic has been about the control of money. Since the U.S. Constitution clearly defines coinage, the objective of the mercantile elite was to circumvent the law and establish a National Bank. Woe to any defender of President Andrew Jackson for abolishing the Second Bank of the United States and rendering the Bankster Nicholas Biddle to his ignominious place in hell. This victory for the common man was ultimately betrayed when the Federal Reserve Central Bank was instituted with all the ills of fractional reserve banking.
Since this treachery, the country was placed completely under the bondage yoke of debt created money. In the age of J.P. Morgan, the Jackals of Jekyll Island were able to implement the Rothschild scheme of the issuance of money by a private bank with the passage of the 1913 Federal Reserve Act. The inevitable reduction in purchasing value of Federal Reserve Notes and increase in the national debt provided the backdrop to the conditions that resulted in Black Tuesday October 29, 1929. Continue reading
The Fed’s minutes came out today, and they were yet mildly hawkish in that vague sort of way that has preceded twenty-nine of the last two actual rate increases.
There is a theory about that because of the failure of the EU and alternatively China, the inflows of monies into dollar assets are bound to continue to drive the major stock indices higher, and will prompt the Fed to raise rates higher than many think.
This is a variant of the ‘money on the sidelines’ theory that, for whatever reasons, will be compelled to toss their wealth into overpriced assets because they have ‘no other choice.’
Now of course this is possible. The real question is, ‘how probable.’ And what sorts of things might we watch to determine if this particular scenario is genuinely falling into place. Continue reading
Dear Imperial America: the lifestyle you ordered is permanently out of stock.
Our extraordinary misallocation of national treasure and political power has set a banquet of consequences that few are willing to face, much less address head-on. If we had to sum up this vast misallocation, we might start by characterizing it as the result of a multitude of elites playing Empire with money borrowed from future generations.
We can start the list of extraordinary misallocations of national treasure with the Neocon’s endless wars of choice. Ten years ago, estimates of the total cost of the Iraq misadventure were $3 trillion: Cost of Iraq War: $3 Trillion; Cost of Solar Plants to Power all 105 million U.S Households: $500 Billion (April 10, 2008) Continue reading
The only possible output of low social capital is rising inequality.
One of the themes I’ve been addressing since 2008 is the neocolonial-plantation structure of the U.S. economy. The old models of colonial exploitation that optimized plantations worked by cheap imported labor (or situated in peripheral nations with plenty of cheap labor) have, beneath the surface, been adapted to advanced capitalist democracies.
The adaptations have been so successful that not only do we not even recognize the Plantation structure–we love our servitude within it. Continue reading
Things Are Happening That Usually Never Happen Unless A New Recession Is Beginning
Is the U.S. economy about to get slammed by a major recession? According to Gallup, U.S. economic confidence has soared to the highest level ever recorded, but meanwhile, a whole host of key economic indicators are absolutely screaming that a new recession is beginning. And if the U.S. economy does officially enter recession territory in 2017, it certainly won’t be a shock, because the truth is that we are well overdue for one. Donald Trump has inherited quite an economic mess from Barack Obama, and it was probably inevitable that we were headed for a significant economic downturn no matter who won the election. Continue reading
“A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army. We must not let our rulers load us with perpetual debt.” ~ Thomas Jefferson
A common sense approach to bankruptcy is the recognition that no matter how much money you will be able to acquire you cannot possibly ever pay it back to your creditors. This is not what is required for a government regulating agency to declare a banking facility bankrupt, but it is a valid depiction of the state of our national debt and our ability to reduce it to a manageable quantity. The level of taxation that would be required to eliminate our national debt, which is climbing by astronomical numbers, would put such a strain on the fiscal ability of most Americans to survive we would instantly revert to a third world status. This is the danger we are confronted with by a free spending government unwilling to restrain its reach. Continue reading
All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation. ~ John Adams
Aside from those who don’t have much of it, money is one of those things people take for granted. People open their wallets, or purses, and pull out a couple pieces of paper/clothe and expect that they will be able to exchange it for a certain amount of goods or services. But what is that stuff you carry around and use to make purchases? Money you say? I don’t think so.
The Sixth Edition of Bouvier’s Dictionary of Law defines money as: gold, silver, and some other less precious metals. What you hold in your wallets and purses is currency; and you should at least know a basic history of how it came to replace real money. Continue reading
Don’t you find it appalling that there are people who claim they are “serving the public” yet fleece the taxpayer every chance they get?
They say they can’t afford the cost of tax cuts as if the money they are talking about is theirs. They say they are against earmarks but they fight tooth and nail to obtain them with no shame of their hypocrisy. They can’t produce a balanced budget, they have run a debt that cannot be paid and they continue to expect respect for being the equivalent of a mobster. They talk of killing a PFC who obtained some information that showed what a posh ineffectual bunch we have in the Diplomatic corps and they learn nothing when their party gets a “shellacking”. If this sounds like a tirade against just Democrats this is not the case. The Republicans learned nothing from the shellacking they got in 2008. Iowa’s own Senator Grassley pushed for continuing the ethanol subsidy (pure pork barrel earmark) and Senator Harkin was siding with Bernie Sanders in avoiding a vote on stopping the tax increase. Continue reading
Why is the Fed creating incentives for US corporations to destroy themselves? Why is the Fed pushing insurance companies and retirement funds into bankruptcy? Why is the Fed raising interest rates when inflation is still well below its 2 percent target?
Things are not always what they seem. In theory, the Fed’s low interest rates are supposed to have a positive impact on the economy by spurring a credit expansion. But it hasn’t worked out that way. Bank lending has remained stubbornly subdued throughout the post-crisis period. But what hasn’t remained subdued is corporate borrowing (via the bond market) which has exceeded all previous records increasing the probability of massive corporate defaults sometime in the next two years. Here’s a good summary of what’s going on from an article in Fortune titled “Corporate America is Drowning in Debt”: Continue reading
Another Banking Criminal Let Off The Hook
It is a verdict which we see over and over when it comes to the crimes of the Big Banks, the central banks, and their minions. These felons are caught committing serious offenses, again and again, yet receive either no punishment, or at worst some token slap on the wrist.
The banking felon to escape punishment this time is IMF criminal, Christine LaGarde . LaGarde’s criminal conviction came while she was still France’s Finance Minister. It involved a $400 million government pay-out authorized by LaGarde, against the advice of several other Finance Ministry officials, to “French tycoon” Bernard Tapie. LaGarde announced she wouldn’t appeal being let off the hook for her crime. How magnanimous. Continue reading
While economists, the administration and the Fed all trumpet “near full employment,” a stark reality intrudes: Most of the jobs created in the last decade have been temp or gig jobs, not permanent full-time work. It’s a huge problem.
From 2005 to 2015, fully 94% of the 10 million net new jobs were either temporary or contract gigs, says a new study by economists Lawrence Katz of Harvard University and Alan Krueger at Princeton University. The share of Americans — mostly Millennials — now doing what the study’s authors call “alternative work” has risen from 10.7% to 15.8%.
That wouldn’t be so bad if it was what workers wanted. But that’s not the case. Continue reading
I stopped trying to predict markets back in 2008 when the Federal Reserve, Treasury Department, Wall Street bankers, and their propaganda peddling media mouthpieces colluded to rig the markets to benefit the elite establishment players while screwing average Americans. I haven’t owned any stocks to speak of since 2006. I missed the the final blow-off, the 50% crash, and the subsequent engineered new bubble. But that doesn’t stop me from assessing our true economic situation, market valuations, and historical comparisons in order to prove the irrationality and idiocy of the current narrative.
The proof of this market being rigged and not based upon valuations, corporate earnings, discounted cash flows, or anything related to free market capitalism, was the reaction to Trump’s upset victory. The narrative was status quo Hillary was good for markets and Trump’s anti-establishment rhetoric would unnerve the markets. Continue reading