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DEBT is the Achilles Heel of the globalist establishment… and pulling your money out of the banking system is the way to deal a DEATH BLOW to tyranny

Image: DEBT is the Achilles Heel of the globalist establishment… and pulling your money out of the banking system is the way to deal a DEATH BLOW to tyranny

(Natural News) After U.S. markets peaked in September nearly two years after Donald Trump’s victory came with the promise (and delivery) of pro-growth policies, investors got a scare in December when several factors combined with interest rate hikes by the Federal Reserve to drive down indexes.

The Dow Jones, Nasdaq, and the S&P 500 all finished the year lower than they were in September. Worse, there are predictions that 2019 could hit markets harder. 

Bank of America just polled 234 panelists who manage more than $645 billion in investments where they think global growth is heading over the next 12 months, and 60 percent said it will be negative. 

On top of this potential nightmare scenario is the fact that governments around the world comprising the largest economies have nearly all become debtor nations that are one economic calamity away from global collapse.

As noted by Robert Gore at The Burning Platform blog, France’s Yellow Vest protesters may have inadvertently hit upon a way to bring about the collapse of the fiat money and debt system that is sustaining the very governments which increasingly suppress the people they are supposed to serve.

Gore notes that in recent days the French protesters — whom, you recall, took to the streets in response to a massive gasoline tax pushed by President Emmanuel Macron to fund France’s contributions to combat “global warming” agreed to at the Paris Accords in 2015 — have advocated a run on the country’s banks. Such a run, if it occurs, could actually start a chain reaction that would spread to other ostensibly wealthy countries including the United States.

…click on the above link to read the rest of the article…

These 8 Red Flags Warn Us We’re Speeding Toward an Economic Collapse RIGHT NOW

These 8 Red Flags Warn Us We’re Speeding Toward an Economic Collapse RIGHT NOW

This isn’t exactly an article loaded with Christmas cheer, but there’s a very good reason that my family has strictly limited our holiday splurges this year. It’s because all the signs right now seem to indicate the US is hurtling toward an economic collapse.

It’s inevitable, of course. Our economy has been artificially propped up for decades, since abandoning the gold standard. We’re $21 trillion dollars in debt, an unfathomable number. The fact that other countries still lend us money boggles the mind. If the United States was a person with such a high ratio of debt that we aren’t paying off, we wouldn’t even be able to buy a car with one of those 25% interest loans, that’s how bad our credit would be.

Not only that, but there are some parties who seem to want to see the economy go belly up for their own greedy and nefarious purposes.

Here are the red flags that have me concerned about an imminent economic collapse.

The stock market is crashing.

Right now, the market is on track for a month that is equivalent to the crash of 1929, when the Great Depression began.  Both the Dow Jones Industrial Average and the S&P 500 are down by 8% during a month that is usually really good. Michael Snyder reported:

The ferocity of this stock market crash is stunning many of the experts, and many investors are beginning to panic.  Back in early October, the Dow hit an all-time high of 26,951.81, but on Monday it closed at just 23,592.98.  That means that the Dow has now plunged more than 3,300 points from the peak of the market, and many believe that this stock crash is just getting started. (source)

…click on the above link to read the rest of the article…

The Untouchable US-Saudi Relation Is a Core Element of US Imperialism

The Untouchable US-Saudi Relation Is a Core Element of US Imperialism

The Untouchable US-Saudi Relation Is a Core Element of US Imperialism

In the last few weeks, numerous articles and analyses have been produced relating to the murder of Jamal Khashoggi in the Saudi consulate in Istanbul. However, the relationship between Saudi Arabia and the United States has not been questioned, and the reason for this has not yet been explained.

Nixon’s decision in 1971 to withdraw the United States from the gold standard greatly influenced the future direction of humanity. The US dollar rose in importance from the mid-1950s to become the world reserve currency as a result of the need for countries to use the dollar in trade. One of the most consumed commodities in the world is oil, and as is well known, the price is set by OPEC in US dollars, with this organization being strongly influenced by Saudi Arabia.

It is therefore towards Riyadh that we must look in order to understand the workings of the petrodollar. After the dollar was withdrawn from the gold standard, Washington made an arrangement with Riyadh to price oil solely in dollars. In return, the Saudis received protection and were granted a free hand in the region. This decision forced the rest of the world to hold a high amount of US dollars in their currency reserves, requiring the purchase of US treasuries. The relationship between the US dollar and oil breathed new life to this currency, placing it at the centre of the global financial and economic system. This privileged role enjoyed by the dollar allowed the United States to finance its economy through the simple process of printing its fiat currency, relying on its credibility and supported by the petrodollar that required other countries to store reserves of US treasuries in their basket of currencies.

…click on the above link to read the rest of the article…

What Can Kill a Useless Currency, Report 28 Oct 2018

There is a popular notion, at least among American libertarians and gold bugs. The idea is that people will one day “get woke”, and suddenly realize that the dollar is bad / unbacked / fiat / unsound / Ponzi / other countries don’t like it / <insert favorite bugaboo here>. When they do, they will repudiate it. That is, sell all their dollars to buy consumer goods (i.e. hyperinflation), gold, and/or whatever other currency.

Redemptions Balanced With Deposits

No national currency is gold-backed today. In a gold backed currency, each currency unit begins life with someone who chooses to deposit his gold coin in exchange for the paper currency. And it ends life with someone redeeming the paper to get back the gold coin. A good analogy is bone in the human body. One process is constantly removing bone material. And another process is growing more. What seems to be a static bone, with fixed length and mass, is constantly being torn down and rebuilt. The seemingly stable bone is actually in equilibrium between two opposing forces.

So it is with the gold standard. Some people are redeeming paper to get the gold coin. Others are depositing gold coins to get paper. The seemingly stable gold standard is actually in equilibrium between two opposing processes.

We often hear that governments hate the gold standard because they cannot print gold. This is true, but there is another reason. When people don’t like the interest rate or the soundness of the banks, they withdraw their gold coin. What had seemed to be stable, is no longer. This has nothing to do with quantity of currency or gold. It has everything to do with honesty.

…click on the above link to read the rest of the article…

Hitler’s Economics

Hitler’s Economics

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For today’s generation, Hitler is the most hated man in history, and his regime the archetype of political evil. This view does not extend to his economic policies, however. Far from it. They are embraced by governments all around the world. The Glenview State Bank of Chicago, for example, recently praised Hitler’s economics in its monthly newsletter. In doing so, the bank discovered the hazards of praising Keynesian policies in the wrong context.

The issue of the newsletter (July 2003) is not online, but the content can be discerned via the letter of protest from the Anti-Defamation League. “Regardless of the economic arguments” the letter said, “Hitler’s economic policies cannot be divorced from his great policies of virulent anti-Semitism, racism and genocide.… Analyzing his actions through any other lens severely misses the point.”

The same could be said about all forms of central planning. It is wrong to attempt to examine the economic policies of any leviathan state apart from the political violence that characterizes all central planning, whether in Germany, the Soviet Union, or the United States. The controversy highlights the ways in which the connection between violence and central planning is still not understood, not even by the ADL. The tendency of economists to admire Hitler’s economic program is a case in point.

In the 1930s, Hitler was widely viewed as just another protectionist central planner who recognized the supposed failure of the free market and the need for nationally guided economic development. Proto-Keynesian socialist economist Joan Robinson wrote that “Hitler found a cure against unemployment before Keynes was finished explaining it.”

What were those economic policies?

…click on the above link to read the rest of the article…

How States Can Escape America’s Looming Financial Meltdown


How States Can Escape America’s Looming Financial Meltdown

The USA is $21.4 trillion in debt. That is larger than the entire US economy. And it shows no sign of slowing down.

To put that in perspective, imagine spending $28 million per day, EVERYDAY since Jesus walked the earth. Even then, you’d still have a trillion dollars to go…

But it gets worse. This debt does not even include unfunded liabilities, like the promise to pay out Social Security benefits to retirees. Social Security is underfunded by a whopping $50 TRILLION.

Worse still is that the Federal Reserve has the power to print money, and set interest rates. That means the economy you and I see on a daily basis is not reality.

Markets always have corrections. It is natural for sectors to wax and wane. Some years boom, and some years bust.

But the Federal Reserve has made this problem a hundred times worse. The booms are astronomical because of artificially low interest rates.

That means it is easy to borrow money, even if there isn’t much real capital out there to borrow. And that means money gets wasted, placed in bad investments, or squandered and misallocated on unneeded projects.

We are living in a ticking time bomb.

I have no particular faith in any government.

But I do believe the smaller the government gets, the easier it is to control. Your vote might actually count at the state level.

And living down the street from your State Representative helps to keep him fearful of his constituents. Politicians should fear the people.

State governments can cushion the collapse of the federal government.

This collapse will be triggered by monetary policy.

So states should make sure their economies can keep on chugging along in the event of such a catastrophic financial meltdown.

…click on the above link to read the rest of the article…

You Can’t Eat Gold 

“You can’t eat gold.” The enemies of gold often unleash this little zinger, as if it dismisses the idea of owning gold and indeed the whole gold standard. It is a fact, you cannot eat gold. However, it dismisses nothing.

This gives us an idea. Let’s tie three facts together. One, you can’t eat gold. Two, gold is in backwardation in Switzerland. And three, speculation is a bet on the price action.

The fact that gold is inedible is supposed (by the enemies of liberty) to be proof positive that a gold standard wouldn’t work. Of course, there’s always the retort: You can’t eat dollars!

That may be emotionally satisfying, but there is a deeper issuer that the anti-gold crowd is missing. Yes, money makes terrible food but, also, food makes terrible money. A car makes a lousy airplane. And a shoe makes an awful TV. Cow poop is putrid as food for people, but it works well as fertilizer for plants. Each thing fits a particular purpose.

Why does food make terrible money? One reason is that it’s perishable. No one—other than a refrigerated warehouse—can make a bid on food beyond his own short-term needs. Without this robust bid, food has limited marketability. That is, it has a wide spread between its bid and offer prices.

Think of it in human terms, or even personal terms. Suppose you strolling along the sidewalk, and you’re hungry. You see a restaurant sign, “Hamburger + fries + drink $10.” You would pay the offer price. The next restaurant is going out of business, and its sign says, “All inventory must go! 50 hamburgers and 50 pounds of fries for $100!” You would not pay it (unless you were with 49 friends).

…click on the above link to read the rest of the article…

The Fed’s Easy-Money Policies Aren’t Helping Income Growth

The Fed’s Easy-Money Policies Aren’t Helping Income Growth

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Back in August, Bloomberg interviewed Karen Petrou about her research on quantitative easing and the Fed’s policies since the 2008 financial crisis. What she has discovered has not been encouraging for people who aren’t already high-income, and in recent research presented to the New York Fed, she concluded “Post-crisis monetary and regulatory policy had an unintended but nonetheless dramatic impact on the income and wealth divides.”

This assessment is based on her own work, but also on a 2018 report released by the Minneapolis Fed.1  The report showed that both income and wealth growth in the US have been much better for higher-income households in recent decades

Notably, when indexed to 1971 (the year Nixon ended the last link between gold and the dollar) we can see the disparity between the top wealth groups and other groups:

income_wealth.PNG

 Petrou continues:

What did we learn [from the Minneapolis Fed report]? This new dataset shows clearly that U.S. wealth inequality is the worst it has been throughout the entire U.S. post-war period. We also know now that the U.S. middle class is even more “hollowed out” than we thought in terms of income, with any gains made by the lower-middle class sharply reversed after 2007.

Indeed, the report concludes: “…half of all American households have less wealth today in real terms than the median household had in 1970.”

A closer look at income data also suggests that income growth has been especially anemic since 2007. Using data from the Census Bureau’s 2017 report on income and poverty, we find that incomes for the 90th percentile are increasingly pulling away from both the median (50th percentile) income and from the 20th-percentile income.2

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 The household income for the 20th percentile increased 70 percent since 1971, while it has only increased 20 percent at the 20th percentile.

…click on the above link to read the rest of the article…

The Gold Standard: Protector of Individual Liberty and Economic Prosperity

The Gold Standard: Protector of Individual Liberty and Economic Prosperity

A Piece of Paper Alone Cannot Secure Liberty

The idea of a constitution and/or written legislation to secure individual rights so beloved by conservatives and among many libertarians has proven to be a myth. The US Constitution and all those that have been written and ratified in its wake throughout the world have done little to protect individual liberties or keep a check on State largesse.

Sound money vs. a piece of paper – which is the better guarantor of liberty? [PT]

Instead, in the American case, the Constitution created a powerful central government which eliminated much of the sovereignty and independence that the individual states possessed under the Articles of Confederation.

While the US Constitution contains a “Bill of Rights,” the interpreter of those rights and the protections thereof is the very entity which has enumerated them.  It is only natural that decisions on whether, or if such rights have been violated will be in favor of the State.

Moreover, nearly every amendment which has come in the wake of the Bill of Rights, has augmented federal power at the expense of the individual states and that of property owners.

History has shown the steady erosion of individual rights and the creation of “new rights” and entitlements (education, health care, employment, etc.) which have occurred under constitutional rule.  Instead of being a limitation on government power, constitutions have given cover for a vast expansion of taxation, regulation, debt, and money creation.

As Murray Rothbard notes in Anatomy of the State: All Americans are familiar with the process by which the construction of limits in the Constitution has been inexorably broadened over the last century. 

…click on the above link to read the rest of the article…

Silver v Gold Standard

QUESTION: Mr. Armstrong; You do not give much credence to the world returning to a gold standard. Didn’t the entire world use the gold standard before?

Thank you for your input

JK

 

ANSWER: The entire world has NEVER been on the gold standard simultaneously. Asia was on a silver standard while the West was on a gold standard. Above is the first coin struck in Hong Kong in 1866 which was the Hong Kong Dollar. The West struck Trade Dollars during the 19th century to pay for goods from Asia and they were silver – never gold. Here is an example of both the British and American trade dollars used in payments particularly with China.

It is just not practical that we have a monetary system that is based upon a commodity. The true value of money is the productive-capability of its people. China, Germany, Japan, all rose from economic depression WITHOUT gold. They did it with the productive capacity of the people. The produce whatever and sell it to someone else and then get gold or whatever in return. This theory that you have nothing without gold is just stupid. It would mean that no nation could ever rise no matter how good their people are because they lack a natural source of gold.

The collapse of the Turkish lira is a reflection of the collapse in confidence in the government. The same has taken place in Venezuela. China and Japan rose from the ashes, not because of their possession of commodities, but because they could bring their people to bear and produce various items efficiently and cost-effective. It was the people first that produced the economic recovery and then they bought even gold.

…click on the above link to read the rest of the article…

Gold Yuan Crypto

George Caleb Bingham The verdict of the people 1854
It’s been a while since we last heard from Dr. D, but here he’s back explaining why neither gold nor the yuan nor cryptocurrencies can or will replace the dollar as the reserve currency, but together they just might:

Dr. D: “Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.” –Ogden Nash

Over the last year or two there’s been discussion about the U.S. Federal spending moving beyond $4 TRILLION dollars, and whether a $1+ trillion dollar annual deficit, on top of a $20 Trillion national debt – Federal only – is sustainable. It isn’t.

“What can’t go on, doesn’t” is the famous quote of economist Herbert Stein. Since a spiraling deficit of $1 trillion deficit on a $20 trillion debt can’t go on, what will we replace it with when it very soon doesn’t? Historically gold. Whatever gold exists in the nation’s coffers, whether one coin or 8,000 tons, is used to as the national wealth, and fronted by paper to re-boot the currency. With some additions such as oil and real estate, this was the solution in Spain, France, Germany, and the Soviet Union among hundreds of fiat defaults. Why? Because at a time of broken promises — real goods, commodities that can be seen, touched, and used – are the tangible proof of wealth, requiring no trust, and from which the human trust system of paper and letters of credit can be rebuilt.

But in these complicated, digital times perhaps that’s too simplistic. Perhaps we have grown smarter than all our fathers and this time it will be different. Will it really be the same? Let’s look at how the system works now.

…click on the above link to read the rest of the article…

Congressman Alex Mooney’s Bill Defines the Dollar as a Unit of Gold

This story came out in March, but I just now caught it. I salute Mooney for wording the legislation correctly.

HR 5404 A bill to define the dollar as a fixed weight of gold was introduced to the Committee on Financial Services on 22nd March 2018 by congressman Alex Mooney.

Here is the actual HR5404 Bill.

Key Item

“Effective 30 months after the date of enactment of this Act – (1) the secretary of the Treasury shall define the dollar in terms of a fixed weight of gold, based on that day’s closing market price of gold; and (2) Federal Reserve Banks shall make the Federal Reserve notes exchangeable with gold at the statutory gold definition for the dollar.”

That is how it must work. Mooney did not make the mistake of setting a price for gold. He correctly defined the dollar as a unit of weight.

Thoughts

Supposing HR5404 gets signed into law in 6 months, that would mean that the US would need to transfer to a gold standard by Spring 2021. The mere passing of this bill would send gold rocketing over the next few years and, assuming the US gold stocks are intact, it would neutralise the national debt. While there is no mention of the national debt in the bill, this is clearly a major benefit of a gold standard to the US administration. However, as the gold price rises against federal reserve notes, so does everything else, which means the public worldwide would suffer crippling inflation if they hold FRN dollars and other fiat currencies.

The price of gold would certainly skyrocket, but it is not necessarily so that national debt would be extinguished. However, it is clear that any countries that do not have gold reserves would be severely punished.

…click on the above link to read the rest of the article…

Why Gold Standard is Not Conducive of Boom-Bust Cycles?

According to some commentators on the gold standard, an increase in the supply of gold generates similar distortions that money out of “thin air” does.

Let us start with a barter economy. John the miner produces ten ounces of gold. The reason why he mines gold because he believes there is a market for it. Gold contributes to the wellbeing of individuals.

He exchanges his ten ounces of gold for various goods such as potatoes and tomatoes.

Now people have discovered that gold apart from being useful in making jewellery is also useful for some other applications.

They now assign a much greater exchange value to gold than before. As a result, John the miner could exchange his ten ounces of gold for more potatoes and tomatoes.

Should we condemn this as bad news because John is now diverting more resources to himself? This however, is just what is happening all the time in the market.

As time goes by people, assign greater importance to some goods and diminish the importance of some other goods. Some goods now considered as more important than other goods in supporting people’s life and wellbeing.

Now people have discovered that gold is useful for another use such as to serve as the medium of the exchange. Consequently, they lift further the price of gold in terms of tomatoes and potatoes. Gold now predominantly demanded as a medium of exchange – the demand for the other services of gold such as ornaments is now much lower than before.

Let us see what is going to happen if John were to increase the production of gold. The benefit that gold now supplies people is by providing the services of the medium of the exchange. In this sense, it is a part of the pool of real wealth and promotes people’s life and wellbeing.

…click on the above link to read the rest of the article…

The Dollar Dilemma: Where to From Here?

The Dollar Dilemma: Where to From Here?

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 Introduction: Where We Are 

It’s a fallacy to believe the US has a free market economy. The economy is run by a conglomerate of individuals and special interests, in and out of government, including the Deep State, which controls central economic planning.

Rigging the economy is required to prevent market forces from demanding a halt to the mistakes that planners continuously make. This deceptive policy can last only for a limited time. Ultimately, the market proves more powerful than government manipulation of economic events. The longer the process lasts, the greater the bubble that always bursts. The planners in charge have many tools to perpetuate confidence in an unstable system, but common sense should tell us that grave dangers lie ahead.

Their policies strive to convince the unknowing that the dollar is strong and its status as the world’s reserve currency is secure, no matter how many new dollars they create of out of thin air. It is claimed that our foreign debt is always someone else’s fault and never related to our own monetary and economic mismanagement.

Official government reports inevitably claim inflation is low and we must work harder to increase it, claiming price increases somehow mystically indicate economic growth.

The Consumer Price Index is the statistic manipulated to try to prove this point just as they use misleading GDP numbers to do the same. Many people now recognizing these reports are nothing more than propaganda. Anybody who pays the bills to maintain a household knows the truth about inflation.

Ever since the Great Depression, controlling the dollar price of gold and deciding who gets to hold gold was official policy. This advanced the Federal Reserve’s original goal of demonetizing precious metals, which was fully achieved in August 1971.

…click on the above link to read the rest of the article…

Why A Dollar Collapse Is Inevitable

Why A Dollar Collapse Is Inevitable

We have been here before – twice. The first time was in the late 1920s, which led to the dollar’s devaluation in 1934. And the second was 1966-68, which led to the collapse of the Bretton Woods System. Even though gold is now officially excluded from the monetary system, it does not save the dollar from a third collapse and will still be its yardstick.

This article explains why another collapse is due for the dollar. It describes the errors that led to the two previous episodes, and the lessons from them relevant to understanding the position today. And just because gold is no longer officially money, it will not stop the collapse of the dollar, measured in gold, again.

General de Gaulle made himself very unpopular with the international monetary establishment by holding the press conference from which the opening quote was taken. Yet, his prophecy, that the gold exchange standard of Bretton Woods would end in tears unless its shortcomings were addressed by a return to a gold standard, turned out to be correct shortly after. What the establishment did not like was the bald implication that it was wrong, and that the correct thing to do was to reinstate the gold standard. Plus ça change, as he might say if he was still with us.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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