01.19.21- Inflation Breeds Even More Inflation
I. Warning against Fiduciary Media
Early in the 20th century, Ludwig von Mises warned against the consequences of granting the government control over the money supply. Such a regime inevitably creates money through bank credit that is not backed by real savings—a type of money that Mises termed “fiduciary media.” Read More
The main central banks of the world are increasing money supply in an uncontrolled and unjustified way in what is so far the largest transfer of wealth from savers to governments ever. While savers see their deposits disappear with negative real rates and devaluations, while central banks seek at all costs to impoverish their neighbors through devaluations to benefit deficit-ridden states, financial repression continues to generate responses from citizens, who seek to safeguard their savings from the monster confiscator: devaluation and inflation. Read More
“Twelve voices were shouting in anger, and they were all alike. No question, now, what had happened to the faces of the pigs. The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.”
What should we expect in 2021? Read More
The Fed’s Powell made it clear yesterday: “Now is not the time to be talking about exit. I think that another lesson of the global financial crisis is be careful, not to exit too early.” Folks, that is the *only* lesson the Establishment has learned from the GFC: like it is always “more cowbell”, it is always more central bank regardless of the song being played.
The US government ran the biggest December budget deficit in history last month.
01.13.21- Is Inflation In Your Best Interest,
How long before mobs storm the Mariner Eccles building (Fed headquarters) if Jerome Powell were to make such a statement? Read More
WEST RIVER, MARYLAND – Wow… What a week! What a way to begin a new year!
Many people were outraged and appalled by last week’s shenanigans in Washington. And this morning, calls for impeachment, destitution, or lynching are still running riot over the internet. Read More
01.11.21- The Tyranny Nobody Talks About
All the tricks to hide our unaffordable cost structure have reached marginal returns. Reality is about to intrude.
There is much talk of tyranny in the political realm, but little is said about the tyrannies in the economic realm, a primary one being the tyranny of high costs: high costs crush the economy from within and enslave those attempting to start enterprises or keep their businesses afloat. Read More
01.09.21- Issues 2021
Fragility. Last year exposed myriad fragilities. The U.S. stock market went from all-time highs to an emergency FOMC meeting in ten sessions. The S&P500 lost more than a third of its value in just 21 trading days. Q2 GDP collapsed at a 31% annualized rate. Financial conditions tightened dramatically, with illiquidity and dislocation erupting throughout the markets – equities and fixed income. The year demonstrated the fragility of social stability. Frail confidence in our institutions was similarly revealed. Read More
About one million Trump, election integrity and Constitution supporters including this writer peacefully protested in Washington DC on January 5 and 6 at the Save America Rallies. The fake news media predictably is focusing on the US Capitol break-ins and ignoring the peaceful protests which constituted time-wise 99% of the two day events and why they were there – to protest election fraud and support the US Constitution and President Trump. Read More
No matter how bad things become, stock prices just keep going up and up and up. In 2020, we experienced the worst public health crisis in 100 years, the U.S. economy was plunged into the worst economic downturn since the Great Depression of the 1930s, Americans filed more than 70 million claims for unemployment benefits, and civil unrest raged in major cities all across the United States. Meanwhile, we witnessed the greatest stock market rally in American history. No matter what happened, nothing could seem to dampen the wild euphoria on Wall Street. Read More
01.06.21- Will the Fed Support Gold Prices in 2021?
Gold ended 2020 at $1,891, partially thanks to monetary policy easing. In 2021, the Fed may not trigger a comparable rally in gold, but it should offer gold prices some support.
Welcome to 2021! I hope that it will be a wonderful year for all of you; a much healthier, calmer and normal year than 2020 was. And even more profitable of course! Indeed, at least gold bulls could be satisfied with the last year, in which the price of gold jumped from $1,523 to $1,891 (London A.M. Fix)! It means that the yellow metal gained more than 24 percent, as the chart below shows. Read More
01.05.21- And Now, for Something Entirely Different: Giving Up the Ghost
Things are shaking loose. Secrets are flying out of black boxes. Shots have been fired. The center is not holding because the center is no longer there, only a black hole where the center used to be, and, within it, the shriekings of lost souls. Will the United States go missing this week, or fight its way out of the chaos and darkness?
Whatever occurs in this strange week of confrontation, Joe Biden will not be leading any part of it. Where has he been since Christmas? Back to hiding in the basement? Did the American people elect a ghost? Even if this storm blows over, could Joe Biden possibly claim any legitimacy in the Oval Office? And then what happens with the rest of the story — which is an epic economic convulsion sharper than the Great Depression — as time is unsuspended and the year 2021 actually unspools? Read More
01.04.21- Will The Fed Destroy The Dollar?
The two smartest Fed-watchers we know share their forecasts
The Federal Reserve’s official target rate of inflation is 2% per year.
Put another way, that means that if the Fed hits its target, the value of today’s dollar will only be worth around a third of its current value in 50 years.
Think that can’t happen? It already has. Read More
01.02.20- Is 2021 the Death of Fiat Currency?
Do you have FOMO yet?
If you didn’t put your cash to work in 2020, then you’re fighting the tide ignited by the Fed.
Never in the history of the world has so much money been printed.
Plus, if you’re an accountant and love seeing balanced books, you’ve likely never had your eyelids twitch more than this year. Read More
01.01.21- Will The Fed Lose Control In 2021?
The most important event in the new year is likely to be the Fed losing control of its iron grip on markets. The dollar’s declining trend is already well established against other currencies and commodities, leading to this outcome.
Events in 2021 will be the consequence of a developing hyperinflation of the dollar. Foreign holders of dollars and dollar assets - currently totalling $27.7 trillion - are sure to increase the pace of reducing their exposure. This is a primal threat to the Fed’s policy of using QE to continually inflate assets in the name of promoting a wealth effect and continuing to finance a rapidly increasing federal government deficit by suppressing interest rates. Read More
12.31.20- The Year Ahead: U.S. Faces Uncertain Economic Future
You’re standing in the back yard, filling up a wading pool for the kids with a garden hose. If you turn the hose off, the pool stops filling. Allow enough time, and the sun evaporates the water. Over the course of the summer, the water slowly dries up, leaving you with an empty pool and unhappy children – unless you turn the hose back on. Read More
12.30.20- Plus Ça Change: A French Lesson In Monetary Debauchery
Fiscal policy shifted into turbo-charged, warp speed, overdrive early into the COVID related recession. To facilitate the borrowing binge, the Federal Reserve took unprecedented monetary actions. In 2020, the fiscal deficit (November 2019- October 2020) rose $3.1 trillion and was matched one for one with a $3.2 trillion increase in the Fed’s balance sheet.
The Fed is indirectly funding the government, but are they printing money? Technically they are not. However, they are inching closer through various funding programs in coordination with the Treasury Department. Read More
12.29.20- Central Bank Digital Currency: A Primer
There has been a lot of talk about central bank digital currency (CBDC) recently, as central bankers around the world are discussing the possibility of launching their own CBDCs. Some of the problems of CBDCs have been pointed out already (see, e.g., here and here), and I will not discuss them too much here. The purpose of the present article is to answer the simple question: What exactly is a CBDC? How is it different from physical cash, demand deposits, and cryptocurrencies? Read More
12.28.20- The Most Hopeful Scenario for 2021
Choose wisely, America, or the options for a positive outcome will vanish like mist in Death Valley on a clear July afternoon.
12.26.20- Fed's New Paradigm Adds Helium
Valuation are not only high, they are among the highest on record.
The Laws of Investing
The Wall Street Journal asks Has the Fed Rewritten the Laws of Investing?
These days, most mainstream news reports are being monopolized by the pandemic, the covid vaccine and all the new rules and lockdowns that are being enforced across the Western world, and this near-obsessive focus comes at the expense of a lot other important developments. The last story that managed to “dethrone” covid from the headlines was the US Presidential election, and even that reporting was largely through the prism of the pandemic. And yet, the earth hasn’t actually stopped spinning and hugely important geopolitical and economic shifts are still happening and they’re certainly newsworthy, especially for investors. Chief among them is Brexit now: the long-awaited, much-debated and endlessly negotiated “divorce” between the UK and the EU. Read More
Let’s dispense with the obscenity that expressed intentions excuse all crimes and consequences.
It’s a close contest between which officially approved story is more implausible: Coronavirus as the Scourge of Humanity or America’s Free and Fair Election. The former enabled the latter, and they were propagated by the same people pursuant to an all-in power grab. Both are riddled with glaring inconsistencies and fraud, none of which are mentioned in polite society. Read More
Only decentralized planning—for holidays and economies alike—allows people to freely employ their tacit and local knowledge.
This year marks the 25th anniversary of Tim Burton's stop-motion musical, The Nightmare Before Christmas. Few movies—and even fewer holiday movies—teach so well how even well-intentioned meddling can derail. It’s fundamentally a film about the dispersed nature of knowledge and the dangers of centralization. Read More
Do you wish to know where the economy is heading? The bond market holds the answer, say the veterans.
The birds of the moment, the flighty birds, flock to the stock market. But the owls nest in the bond market.
The owls are the wiseacres.
The Federal Reserve’s hocus-pocus fails to trick them. They know the card is up the sleeve. And they enjoy exposing the fraud. Read More
12.21.20- What Would Happen
The following article comes with a surprising revelation — possibly an alarming revelation — at the end. Something big is happening at the Fed — the largest movement of “cash” in history. I don’t know what to make of it, because the Fed has been completely silent about it, and the mainstream financial press has missed it entirely. Crickets. Read More
12.18.20- How Stimulus Kills the Economy
Someone who is smart enough to know what he is getting paid to say. – Definition of an expert, offered by a Dear Reader’s college professor
No weight-loss expert was ever invited onto the Oprah show to showcase his new book, Don’t Eat So Much.
Nor did any household finance book, with the self-explanatory title, Save Your Money, ever make it onto the bestseller list. Read More
As I keep stating, the big theme for 2021 will be inflation. And a Biden administration will only accelerate this.
If you doubt me, consider that Biden has picked Janet Yellen as his Treasury Secretary.
Previously, Yellen ran the San Francisco Fed before eventually rising to be Fed Chair under the Obama administration. Throughout her tenure in these positions, she proved to be someone who used political reasoning to justify printing more money or easing monetary conditions. Read More
12.16.20- Suicide of a City
I updated my economic forecast last month to include a recession in the first quarter of 2021, based on the reemergence of lockdowns. It was one of those forecasts I hoped I’d be wrong about.
Yet, all of the news since then confirms its accuracy. With governors like New York State’s Andrew Cuomo, you can take it to the bank.
Cuomo has banned all indoor dining in New York City due to the rise in COVID-19 cases, starting today. Read More
Oh the wonderful world of Mr. Globaloney; it never ceases to shock, to entertain, and to surprise with its unbridled hubris and somersaultingly insane policies. In this case, the particular Mr. Globaloney that we’re concerned with is Dr. Ernst Stavro Blohfeld, self-appointed Fuehr… er… head and founder of SPECTRE (Special Executive for Counter-Intelligence, Terrorism, Revenge and Extortion). Dr. Blohf….
…I did it again… (sigh)… Read More
12.14.20- The Implications of Collapse
Rachel Bodden, managing editor, Casey Research: Doug, last week we talked about where to put money for the grim and tumultuous decade ahead. What other investment implications do you see for a collapse?
For example, right now a lot of people are really, really interested in small, sexy biotech stocks and stuff like that.
What industries are going to be hit the hardest? Which ones should people start steering away from? Read More
This week, we’ve seen that real science… with its doubts and limitations… is easily brushed aside in favor of fake science.
“The science” allows people to “know” things they can’t possibly know… or believe things that aren’t true…
And – much like religion before it lost favor – it’s used by the elite to bludgeon the masses and keep them in their place. Read More
The increase in the U.S. money supply in the past two weeks is absolutely shocking. Something must be seriously wrong behind the scenes at the U.S. Treasury and Federal Reserve for the M1 Money Supply to increase more in the past two weeks than it did in six weeks during the beginning of the pandemic shutdowns in late March.
I wrote about this in my last subscriber video, INVESTOR WARNING: Markets Just Propped Up By Half-Trillion In Liquidity, Brace For Major Correction Ahead. In just one week, the M1 Money Supply surged by $498 billion. While that was stunning, I was quite shocked to see another huge increase in the past week. Read More
One of the first lessons in an economics class is every action has a cost. That is in stark contrast to lessons in the political arena where politicians virtually ignore cost and talk about benefits and free stuff. If we look only at the benefits of an action, policy or program, then we will do anything because there is a benefit to any action, policy or program.
Think about one simple example. The National Highway Traffic Safety Administration estimates that 36,096 Americans lost their lives in motor vehicle traffic crashes in 2019. Virtually all those lives could have been saved if we had a 5 mph speed limit. The huge benefit of a 5 mph speed limit is that those 36,000-plus Americans would have been with us instead of lost in highway carnage. Read More
One sure way to identify a system “optimized for failure” is if all the insiders are absolutely confident the system is “optimized for my success”.
I often discuss optimization here because it offers an insightful window into how systems become fragile and break down. When we optimize something, we’re aiming to get the most bang for our buck: maximize our efficiency, profit, productivity, etc., while minimizing our costs. Read More
12.08.20- Inflation roadmap
It is beginning to be obvious that global economic woes extend beyond covid lockdowns and that monetary inflation for the dollar, as the common foundation for other fiat currencies whose issuers face similar problems, will continue to accelerate.
Since the beginning of the pandemic, we've seen major increase of paper dollars in circulation. Analyst Wolf Richter explains why:
During a crisis, people load up and hoard cash, much of it overseas, and to meet this demand, banks have to buy more currency from the Fed, usually paying with Treasury securities for this paper. Read More
12.05.20- Janet Yellen: Too Dumb To Stop
The United States Secretary of the Treasury bears a shameful job duty. They must place their autograph on the face of the Federal Reserve’s legal tender notes. Here, for the whole world to witness, the Treasury Secretary provides signature endorsement; their personal ratification of unconstitutional money.
If you recall, Article I, Section 8, of the U.S. Constitution empowers Congress to coin money and regulate its value. What’s more, Article I, Section 10, specifies that money be coined of gold and silver and cannot be bills of credit. Read More
After two months of net global declines in gold holdings, central banks became net buyers again in October.
Gold-buying by central banks has slowed from the record pace we saw in 2018 and 2019, but many countries continue to load up on the yellow metal. In October, central banks added a net 22.8 tons of gold to their reserves, according to the latest data compiled by the World Gold Council. Read More
Another big round of money printing by the Fed is being tee’d up…
I love that quote from Chris. It reminds of when I suggested back in 2004 that the U.S. would start a war before it ever gets to the point at which it was forced to open the Federal Reserve gold vaults for a independent audit with the entire world watching. Read More
6 CENTRAL BANKS AND THE PONZI SCHEME THAT WILL BANKRUPT THE WORLD
The destiny of the world is now in the hands of 6 central banks, Fed, ECB, BoE (England), PBOC (China), BoJ (Japan), SNB (Swiss). This in itself bodes extremely badly for the global financial system. This is like putting the villains in charge of the judicial system. For decades these central banks have totally abused their power and taken control of the world monetary system for the benefit of their banker friends and in some cases their private shareholders. Read More
12.01.20- Bad News
Dr. Paul Krugman, Nobel laureate Paul Krugman, New York Timeseditorialist Paul Krugman — is a man enraptured…
For Janet Yellen will be the next Secretary of the United States Treasury (barring the unlikely). Mr. Biden confirmed the gossip today.
Here is the good Dr. Krugman, wailing sobs of joy:
It’s hard to overstate the enthusiasm among economists over Joe Biden’s selection of Janet Yellen as the next secretary of the Treasury. Some of this enthusiasm reflects the groundbreaking nature of her appointment. She won’t just be the first woman to hold the job; she’ll be the first person to have held all three of the traditional top U.S. policy positions in economics — chair of the Council of Economic Advisers, chair of the Federal Reserve and now Treasury secretary. Read More
Our 2020 has featured a bioweapon attack against human health shutting Americans away from their work, their churches and schools; great social complications arising from an internationally financed insurgency burning and looting businesses, restaurants and homes; and, a fourth year of unfounded accusations against an immensely popular president, culminating in a vacuous, failed impeachment. As if this were not enough, 2020 is now providing the most flagrant examples of voter fraud and vote-counting fraud in the reported history of American presidential politics.. Read More
Something remarkable happened on Tuesday. The Dow Jones Industrial Average (DJIA) broke the 30,000 point barrier for the first time ever. President Trump commemorated the feat by calling the number “sacred.”
Some Americans were especially grateful as they said their Thanksgiving Day grace. These generally include wealthy owners of stocks and other financial assets. Forty years of inflationary monetary policies have elevated their prosperity to holiness. Read More
11.27.20- How the Federal Reserve Causes Inflation
The Federal Reserve System is bigger than the board of governors headed by Ben Bernanke; bigger than its ominous headquarters in Washington, D.C. The Federal Reserve System is the banking system, and while one of its mandates is to maintain “stable prices,” the reality is that the Federal Reserve is responsible for all of the inflation we’ve experienced since the Fed’s inception in 1913. How much inflation is that? Well, the value of the dollar has decreased by more than 95% in that time – and this is according to the government’s own Bureau of Labor Statistics. Here is a list of the three ways in which the Fed creates inflation. Read More
11.26.20- Why a Hyperinflation “Time Bomb” Could Explode in 2021
No matter who is president next year – regardless of whether Biden’s election is confirmed over the next couple of weeks – he will have a potential economic “time bomb” on his hands…
The possibility of rising inflation turning into hyperinflation.
The pandemic has only sped the journey along...
We now have a clearer vision of what lies ahead on the global landscape; the trend that is now coming to fruition is that the standard of living for almost everyone in the world is going to sink lower.
For some, for .0001% of the world, it could improve.
For the remaining 99.999% of us, however, there will certainly be some turbulence ahead. Read More
The U.S. economy has been on the verge of collapse for at least a decade, ever since the crash of 2008 and the subsequent explosion in fiat stimulus from the Federal Reserve. While the mainstream media has always claimed that central bankers “saved” us from another Great Depression, what they actually did was set us up for a far worse scenario — a stagflationary implosion of our society. Read More
I will refrain from making comments about the presidential election itself until after it has been officially decided.
In the meantime, however, there is much to be said about how we got here. And, once again, it is left to me to say what almost no one else is willing to say…
First, had Donald Trump followed through with his promise to drain the swamp, we would not even be in this fix. Trump had four years to take care of the Clinton/Biden criminal cartel, and he did absolutely nothing. Read More
The big news organizations say Joe Biden’s the next president of the USA. That claims of election fraud and fixing are baseless. Do you believe them? Do you trust them?
Regardless, Biden’s acting as if. He’s talking to foreign leaders. He’s meeting with vaccine makers. He’s making big plans. He’s planning big things. But, apparently, he’s not progressive enough.
This week, for example, an organization called Justice Democrats accused Biden of appointing corporate-friendly insiders. They say these “corporate-friendly insiders […] will not help usher in the most progressive Democratic administration in generations.” Read More
11.20.20- The global reset scam
This article takes a tilt at increasing speculation about statist global resets, and why plans such as those promoted by the World Economic Forum will fail. Central bank digital currencies will simply run out of time.
Instead, the collapse of unbacked fiat currencies will end all supra-national government solutions to their policy failures. Already, there is mounting evidence of money beginning to flee bank accounts into stocks, commodities and even bitcoin. This is an early warning of a rapidly developing monetary collapse. Read More
11.19.20- Don’t Let The Fed Go “Full Retard”
"Never go full retard" is a good principle to abide by. Central banking worldwide is becoming more and more kooky by the week. Ken Rogoff, professor of economics at Harvard and formerly Chief Economist of the International Monetary Fund, cuts a wide swath across academic economics. In May 2020, he made a public case for "deeply negative interest rates." That is, perhaps, just one man's opinion. Read More
11.18.20- The Fed Has No Way Out
We have argued that the Federal Reserve has no exit strategy from this extraordinary monetary policy. In fact, it never could extricate itself from the extraordinary monetary policy it launched during the Great Recession. Today, we’re merely witnessing the same policy on hyperdrive. And there is still no way out. Read More
11.17.20- The Madness of Crowds,
Today, central bank shepherds are leading the vast majority of investors over a currency cliff. This is easy to predict, despite the fact that most…
Crowds, like sheep, are only as safe as the shepherds who guide them.
If the shepherd is mad, so too is the crowd. Read More
There’s been lots of talk about the possibility of price inflation in response to the surge in monetary and fiscal stimulus. It’s an important consideration for us bullion investors, as one of the biggest catalysts for gold and silver is the onset of higher consumer prices. And you gotta own your inflation protection before it sets in.
But the CPI has remained stubbornly low. This despite the Fed trying to produce higher inflation. And despite most people’s experience of higher consumer prices. Read More
People around the world are convinced that the United States is a nation run by criminal psychopaths and morons. A greater fear is that world leaders mistakenly assume that their American counterparts who do and say insane things continually are, in actuality, normal people operating inside some “master plan.”
Then, when time and time again, no such plan materializes, and it is demonstrated that America has blundered into a diplomatic, economic or military morass, for some unknown reason, a “reset” occurs, and the wrong assumptions are again made. Read More
Just as every cop is a criminal
And all the sinners saints
As heads is tails
Just call me Lucifer
‘Cause I’m in need of some restraint
– Sympathy for the Devil, by the Rolling Stones
As expected, Joe Biden will speed up America’s encounter with disaster.
That won’t be easy. Adding speed, we mean… Read More
While the markets were giddy about the prospects of a coronavirus vaccine, the Federal Reserve was warning of more economic chaos on the horizon.
11.10.20- And Now, for Something Entirely Different: Fore!
Sure enough, President Donald Trump likes to get out on the golf links, which is where he was on Saturday, a most spectacularly lovely Indian Summer day following a harsh election week. Of course, his outing provoked much mirth from a gloating national news media — and, by national, I mean united in purpose — as in: look at the big fat sad golfing loser-clown we of the anointed Woke class just beat like a drum on our noble march back to power!
In their righteous raptures of perceived victory, they missed Mr. Trump’s message, which was: This is how worried I am about the final outcome of this election. He’s a daisy, our president. Read More
I was born at the end of Gen X and the beginning of the Millennial Generation, and grew up in a middle class town. Life was good. Our home was modest but birthdays and Christmas were always generous, we went on yearly vacations, had 2 cars, and there was enough money for me to take dance classes and art lessons and be in Girl Scouts. Read More
11.07.20- Money is not wealth
The vast increase in government spending in response to the COVID-19 pandemic has caused many people to question their understanding of money…
The vast increase in government spending in response to the COVID-19 pandemic has caused many people to question their understanding of money. With any luck, such questioning will lead to a better understanding of money’s proper function and its potential for abuse.
A common and understandable misconception is that money is wealth. After all, aren’t people with a lot of money considered wealthy? However, while wealth and money are often found together, they are very different in their character and importance. Read More
“…devalues its currency and then buys up bonds of all levels of government to maintain the size of government. All in the name of…”
Case study of how the Australian central bank, the Reserve Bank of Australia, devalues its currency and then buys up bonds of all levels of government to maintain the size of government. All in the name of fighting deflation, of course!
Commit to tipping us monthly for our hard work creating high level, thought provoking content that includes interviews with top experts, analysis and short videos about investing and the economy. Read More
We're Number One in wealth, income and power inequality, yea for the Fed and the Empire!
The US presidential vote that concluded last night was still too close to call on Wednesday morning. It may well remain this way for a while. Yet — and, I suspect counter-intuitively for many — regardless of who ultimately wins, three things are clear at this stage that spell trouble for the US economy, and well beyond that.
The 2020 election has confirmed that the US remains a deeply divided country facing mounting challenges that threaten both this and future generations. Despite a collective wake-up call in the form of a severe health and economic crisis, the country seems both unwilling and unable to embark on the decisive measures needed. Read More
From the moment Donald J. Trump took office, I argued it was necessary that he face a rational opposition — with an emphasis on “rational.” Discerning, targeted, evidence-based criticism would be imperative to counteract against Trump’s worst impulses, I maintained at the time, given his hardly-disguised penchant for blusterous, petty authoritarianism. While of course Trump would be far from the only president whose excesses needed checking — any occupant of the most powerful office in world history would — there was at least some reasonable cause to believe that his regular issuances of impulsive, fly-by-tweet demands could eventually raise unique civil liberties concerns. Read More
“Politicians are more likely than people in the general population to be sociopaths. I think you would find no expert in the field of sociopathy /psychopathy/ antisocial personality disorder who would dispute this... That a small minority of human beings literally have no conscience was and is a bitter pill for our society to swallow — but it does explain a great many things, shamelessly deceitful political behavior being one.”—Dr. Martha Stout, clinical psychologist and former instructor at Harvard Medical School Read More
10.31.20- The Fed Will Monetize All Of The Debt Issuance
There has been a rising concern as of late about surging inflation as the Government injects more stimulus into the economy. While it seems logical, the reality will be quite different as weak economic growth rates force the Fed to monetize the entirety of future debt issuances.
The Inflation Premise
To fully explain why the Fed is now trapped, we must start with the inflation premise. The consensus expectation is the massive increases in monetary stimulus will spark inflationary pressures. Using the money supply as a proxy, we can compare the money supply changes to inflation. Read More
10.30.20- Going Full Orwell
Oscar Wilde observed that “life imitates art,” and there they were: the three grand poohbahs of social media, stone-facing the Senate Homeland Security Committee on their zoom screens like a trio of James Bond villains — Jack “Twitter” Dorsey, complete with sinister nose-ring and necromancer’s beard, Mark “Facebook” Zuckerberg, pasty and blank as a knish, and Sundar “Google” Pichai the Merciless. Only missing were the Persian cats in their laps.
They were on-board to answer how come their monstrous information engines were censoring the news so as to possibly influence a national election, and they offered the confabulated fantasy that their cancellation of the Biden Family influence-peddling story in The New York Post, and disabling the accounts of sundry un-Woketarian journalists, was actually a policy of “transparency.” With the election only days away, the subtext of their demeanor was a clear “Fuck you, you can’t do anything about it” to the American people. Read More
10.29.20- The Fed MUST have Inflation
The Fed says that “price stability” is part of their dual mandate and they are committed to maintaining the purchasing power of the dollar. But the Fed has a funny definition of price stability.
Common sense says price stability should be zero inflation and zero deflation.
A dollar five years from now should have the same purchasing power as a dollar today. Of course, this purchasing power would be “on average,” since some items are always going up or down in price for reasons that have nothing to do with the Fed. Read More
With only seven days to go to the presidential election, investors are getting edgy.
Yesterday, the Dow sold off by as much as 900 points, before bouncing back to end the day down 650 points.
What’s the trouble? Read More
I am deeply concerned that too many Americans are totally blind to the truth. They think this election is just about Biden v Trump. This is the World Economic Forum video on 8 predictions for 2030 which includes the surrender of the United States to the United Nations – they just say the US will no longer be the world Superpower. They will end eating meat, hence Gates’ investment in meat alternatives, will make fossil fuels history which is why Biden said in the debate he will end the fossil fuel industry and he will rejoin the United Nations. Read More
It shouldn’t come as a surprise that the Vice President of the World Bank Carmen Reinhardt recently warned on October 15 that a new financial disaster looms ominously over the horizon with a vast sovereign default and a corporate debt default. Just in the past 6 months of bailouts unleashed by the blowout of the system induced by the Coronavirus lockdown, Reinhardt noted that the U.S. Federal Reserve created $3.4 Trillion out of thin air while it took 40 years to create $14 Trillion. Meanwhile panicking economists are screaming in tandem that banks across Trans Atlantic must unleash ever more hyperinflationary quantitative easing which threatens to turn our money into toilet paper while at the same time acquiescing to infinite lockdowns in response to a disease which has the fatality levels of a common flu. Read More
When we recently described the upcoming "Unprecedented monetary overhaul" which will come in the form of the Fed sending out digital dollars directly to "each American", we explained that "absent a massive burst of inflation in the coming years which inflates away the hundreds of trillions in federal debt, the debt tsunami that is coming would mean the end to the American way of life as we know it. And to do that, the Fed is now finalizing the last steps of a process that revolutionizes the entire fiat monetary system. Read More
10.23.20- The Hazards of an “Endless Fed”
The Federal Reserve’s balance sheet has been soaring in 2020. In March, it was “only” $4.67 trillion; today, it’s approaching $7 trillion.
That development alone can be pretty unnerving. But what may be of even moreconcern is the growing amount of Fed treasury holdings.
It’s an amount so large that, at approximately $4.5 trillion, the bond market might require endless intervention from the central bank to continue functioning. Read More
Jerome Powell is going to create the mother of all bubbles…
Jerome Powell is going to create the mother of all bubbles.
The first sign of this came in 2018 when Powell used his first Jackson Hole symposium to glorify former Fed Chair Alan Greenspan’s economic insights and “considerable fortitude” in not raising interest rates back in the late ‘90s. Read More
10.21.20- Will the Stock Market Be Dragged to the Guillotine?
The Fed’s rigged-casino stock market will be dragged to the guillotine by one route or another.
The belief that the Federal Reserve and its rigged-casino stock market are permanent and forever is touchingly naive. Never mind the existential crises just ahead; the financial “industry” (heh) projects unending returns of 7% per year, or is it 14% per year? Never mind the details, the Fed has our back and since the Fed is forever, so too will be the gains for everyone playing the rigged games in the Fed’s casino. Read More
The main central banks have been discussing the idea of implementing a digital currency. The rationale behind it escapes many citizens. Most transactions in the main global currencies are conducted digitally and one could say that the largest and most traded currencies, the US Dollar, Euro, Yen, British Pound, Swiss Franc, and the Yuan are already functioning as mostly digital money. So, what are central banks saying when they talk about a new and different digital currency? It is basically another step in the effort to gradually get rid of physical currencies, with an idea of strengthening control of the payments and make it simpler to trace the use of a particular means of payment. It is also aimed at competing with global cryptocurrencies. Read More
We have it on highest authority — the Federal Reserve itself — that it may never permit free markets again.
Federal Reserve Vice Chair for Supervision Randal Quarles:
The Treasury market is now so large that the U.S. central bank may have to continue to be involved to keep it functioning properly.
Next we come to the president of the Federal Reserve’s San Francisco outpost — Mary Daly by name: Read More
Now that nothing short of a miracle is needed to pass a new fiscal stimulus deal before the election - with Democrats and Republicans unable to reach a compromise deal even as Trump appears to have broken away from Senate Democrats and is siding with Nancy Pelosi in demanding a "big number" - attention is turning to life after the election, where bulls point to a Blue Sweep as unleashing as much as $7 trillion in fiscal spending over the next few years, an amount which Goldman believes will be more than enough to offset the adverse impact on stocks from higher corporate and capital gains taxes. Read More
Now that nothing short of a miracle is needed to pass a new fiscal stimulus deal before the election - with Democrats and Republicans unable to reach a compromise deal even as Trump appears to have broken away from Senate Democrats and is siding with Nancy Pelosi in demanding a "big number" - attention is turning to life after the election, where bulls point to a Blue Sweep as unleashing as much as $7 trillion in fiscal spending over the next few years, an amount which Goldman believes will be more than enough to offset the adverse impact on stocks from higher corporate and capital gains taxes. Read More
10.16.20- Hyperinflation is here
Definition: Hyperinflation is the condition whereby monetary authorities accelerate the expansion of the quantity of money to the point where it proves impossible for them to regain control.
It ends when the state’s fiat currency is finally worthless. It is an evolving crisis, not just a climactic event.
This article defines hyperinflation in simple terms, making it clear that most, if not all governments have already committed their unbacked currencies to destruction by hyperinflation. The evidence is now becoming plain to see. Read More
If there's anyone who should be talking about economic inequality it's Jerome Powell, a man who as Fed chair has aimed a spotlight on the issue and put the Fed on an intentional trajectory toward reducing it through policy.
Yes, but: Pressed for answers on how the central bank's policies have impacted wealth and income inequality among Americans during last week's virtual meeting with the National Association for Business Economics, Powell dodged and downplayed. Read More
10.14.20- Can the Fed End Racism?
House Financial Services Chair Maxine Waters and Senator Elizabeth Warren have introduced the Federal Reserve Racial and Economic Equity Act. This legislation directs the Federal Reserve to eliminate racial disparities in income, employment, wealth, and access to credit.
Eliminating racial disparities in access to credit is code for forcing banks and other financial institutions to approve loans based on the applicants’ race, instead of based on their income and credit history. Overlooking poor credit history or income below what would normally be required to qualify for a loan results in individuals ending up with ruinous debt. These individuals will end up losing their homes, cars, or businesses because banks disregarded sound lending practices in an effort to show they are meeting race-based requirements. Read More
10.13.20- My Wife Finally Loses It
I could see where this was going, which was my wife grinding me into the ground, picking at me because of my many faults, real or imagined, usually about the damn kids. Usually some jibber-jabber along the lines of her sweetly saying “You know, dear, that the kids and I would love it if you _____ (insert one): paid attention to them, asked them how their stupid day went, stopped being such a jerk, remembered their stupid names, or all of the above.”Read More
The Federal Reserve is warning investors in no uncertain terms that higher rates of inflation are coming. Yet markets, for the most part, have disregarded that warning.
Bond yields, for example, remain well below 2% across the entire duration range. Stock market valuations continue to reflect a sanguine outlook for inflation. And crude oil futures suggest limited upside pressure on prices. Read More
Whether Trump or Biden is elected in November, they will have to decide whether or not to appoint Federal Reserve Chair Jerome Powell to another term.
And if he is appointed again, the way he continues to handle the continuing ripple effects of the COVID-19 "shutdown" economy will be critical.
10.09.20- Me? Really???
Okay guys, you’ll all need a stiff drink for this one. I am going to talk about crypto-currency, and as you know I’ve avoided the stuff like the proverbial plague.
First off let me start with something that will seem to fly in the face of what I’m going to say later. I don’t believe in this stuff. I truly believe that bitcoin was designed by the military and the global banking system. A “trial balloon” if you will. A way to introduce digital currency to the world, see how they adapt to it, see what bugs it might have, etc. Read More
10.08.20- The Federal Reverse Is Gaslighting America
Man is the Reasoning Animal. Such is the claim. I think it is open to dispute. – Mark Twain
Around 350 BC, Aristotle was the first person to formally study logic and reason. Aristotle did not invent logic and reason any more than Isaac Newton invented gravity. He merely discovered and defined the rules already in place as a necessary condition for human beings to carry on meaningful discourse. He identified the principles of reasoning already built into our humanity.
Logic measures the relationship between ideas, premises, and propositions. It allows for two or more ideas to be compared to see if they are consistent and coherent or contradictory. Read More
10.06.20- And Now, for Something Entirely Different: An International Group of Lawyers Have Brought a Lawsuit That the Covid Pandemic is an Orchestrated Hoax in Behalf of Pharmaceutical Profits and Police State Control
This will be taken down. Watch the video and save it before it is disappeared.
An International Group of Lawyers Have Brought a Lawsuit that the Covid Pandemic Is an Orchestrated Hoax in Behalf of Pharmaceutical Profits and Police State Control. Read More
10.03.20- The Fed and the Housing Bubble/Bust
[This article is part of the Understanding Money Mechanics series, by Robert P. Murphy. The series will be published as a book in late 2020.]
In chapter 8 we presented Ludwig von Mises’s circulation credit theory of the trade cycle, or what is nowadays referred to as Austrian business cycle theory. In the present chapter, we will apply the general theory to the specific case of the US housing bubble and bust, which began sometime in the early 2000s and culminated in the financial crisis in the fall of 2008. Read More
In Part 1 of this article I detailed the purposeful systematic destruction of global economies, with a bad flu as the catalyst, as part of a plan by the Davos elite to reconstruct the world in a manner most beneficial to these evil men and detrimental to you and me. The fight remains to be fought. Orwell’s worst fears are coming to fruition. Read More
The Federal Reserve isn’t going to lift interest rates anytime soon. That’s what it says, and that’s what outside observers say, given the central bank’s new commitment to what is called average inflation targeting, as well as its stated desire to minimize income inequality.
But in a new piece on financial markets from private-equity giant KKR, strategists led by Henry McVey, head of global macro and asset allocation, say the central bank hasn’t committed to keep financial markets bubbling up. Read More
09.30.20- The Fed's Bazooka Is Broken –
One of the Fed’s congressionally charted objectives is to promote stable prices for the goods and services we all purchase. Investors have been lulled to sleep for over 20 years by “price stability.” As a result, few investors have an appreciation for how inflation can impact their investments.
Despite stable price increases for the last two decades, the Fed now wants more inflation.
Given the negative impact inflation has on our wealth, why does the Fed wish to boost inflation? Maybe more important, how can they generate inflation? Read More
Up until recently I had never given much thought to the subject of economics. I never took an economics class in school and my understanding of the subject could be best explained by, “Don’t spend more than you earn.” However, the more I’ve learned about our system of government, and the men who created it, the more I’ve realized that I’ll never understand the extent of what they did unless I gain some insight into money; how it is created, how it is controlled, and how people profit from its exchange. Read More
“The great masses of men, though theoretically free, are seen to submit supinely to oppression and exploitation of a hundred abhorrent sorts. Have they no means of resistance? Obviously they have. The worst tyrant, even under democratic plutocracy, has but one throat to slit. The moment the majority decided to overthrow him he would be overthrown. But the majority lacks the resolution; it cannot imagine taking the risks.”
~ H. L. Mencken (1926). “Notes on Democracy,” Read More
09.26.20- "An Extremely Dangerous Game" - Central Bankers 'Extend & Pretend' Has Increased Risk Of "Catastrophic Collapse"
We also know that the Fed just committed to let inflation run hot, which is likely to take a big bite out of retirement savings in the form of higher costs for consumers.
09.24.20- The Fed Can Generate Higher Inflation
The Fed can generate inflation. Perhaps that seems obvious. After all, the Fed can create money at essentially zero marginal cost. But the point has been disputed. Several decades ago, a generation of Keynesians held firm to the belief that inflation was not a problem if the economy was not at full employment. In a world where inflation expectations lag behind actual inflation, expansionary monetary policy boosts aggregate demand, increasing the level of real output (productivity). Only when the economy is at full employment does an increase in the level of total expenditures translate entirely to an increase in the price level associated with inflation. Read More
09.23.20- Digital Money Is Coming to America
SAN MARTIN, ARGENTINA – For half a century, America’s greatest export has been the dollar. So much so that there are now more physical dollars outside the U.S. than in it.
Overseas, people use dollars as an alternative to their own money. Foreigners are more familiar with Ben Franklin than Americans. In many places, people cling to U.S. dollars like a drowning man to driftwood. Read More
To me slavery is the loss of freedom; when my life; my property; and my rights can be taken from me without my consent based upon the whim and caprice of others. If there is nothing that I can call my own, then I am, in fact, a slave.
Your government can, and does, tax you to its heart’s content. It may allow you to keep a portion of your earnings, but if it raised the income tax rate to 90%, 100%, what could you do to stop them from taking every penny you earned. Government can seize your property through liens and eminent domain. Read More
When the Federal Reserve announced in July its intent to let inflation "run hot," there was fear that prices would rise rapidly.
According to Chair Jerome Powell, it hasn't happened yet — or at least not to the degree that he would like. Here's how a CNBC article summarizes the Fed's latest policy stance, which demonstrates the central bank's belief that inflation has not yet increased: Read More
The Fed is recklessly driving us towards an unavoidable reckoning
When asked what the biggest risks facing the economy are, David Stockman, lifelong Capital Hill and Wall Street insider, says “That’s easy. There are three: The Fed, The Fed and the Fed.”
After decades of misguided policy and chronically missing its targets, Stockman thinks the Federal Reserve is truly barreling off the rails now, hurtling our market economy towards disaster. Read More
09.18.20- This Is Why Inflation
This is why inflation will rip everyone’s faces off: production will continue to stagnate no matter how many trillions the Federal Reserve prints and throws around.
This is how market capitalism is supposed to work: consumers decide (for whatever reason) to buy more toilet paper. This increase in demand strips the shelves of TP and pushes the price up as demand exceeds supply. Read More
The bulk of it denounced us viciously. We are with the devil, readers insisted.
For we are dispensing falsehoods — and possibly condemning the witless dupes who heed our evil counsel to early, needless graves.
And if not condemning our witless dupes to early, needless graves… possibly condemning their elder and compromised relations to early, needless graves. Read More
Looking at today's FOMC decision at 2pm, and Powell press conference 30 minutes later, both of which will be the Fed's last public comments before the Nov 3 election (the next FOMC 2-day meeting takes place on Nov 4-5, right after the election) consensus is for a steady policy outcome after the Fed firmly took Yield Curve Control, enhanced forward guidance, and an extension in the QE maturity horizon off the table in its July 28 meeting. As BMO notes, the breadth of expectations run from "little change with an emphasis on the 2023 dots" to "extension of the weighted-average-maturity of QE with firmer forward guidance." That, however, could prove a disappointment to equities given the Fed’s uber-dovish efforts heretofore, although he lays out four considerations. Read More
09.15.20- Money Creation Mechanics
Since the Fed implemented its first Quantitative Easing (QE) program in 2008-2009, many analysts have claimed that QE adds to bank reserves but does not increase the money supply (bank reserves aren’t counted in the money supply). Such claims are patently wrong.
Anyone who bothered to do some basic calculations would see that when the Fed monetises securities, as it does when implementing QE, it adds to the economy-wide supply of money. Specifically, if you add-up the increases in the dollar amounts of demand and savings deposits within the commercial banking system during a period in which the Fed ran a QE program and subtract from this the amount of money loaned into existence during the period by commercial banks, you will find that the difference is equal to the net dollar value of securities purchased by the Fed. Read More
“Your right to swing your arms ends where another person’s nose begins.” While this widely attributed quote sounds ostensibly libertarian in terms of respecting self-ownership, it’s actually quite misleading. One need not abide some lunatic swinging his arms about near one’s face, being forced to tolerate it as long as no physical contact is made. Rather, property owners may establish rules regarding the conduct of those who choose to enter their property, including prohibitions against swinging arms near other people’s faces. Individuals may then decide what rules they are willing to tolerate when they enter another’s property, and competition between property owners enables them to determine what bundle of rules consumers prefer. Read More
09.12.20- Another Weekend Rant: When There are No Consequences for Anything
The Democratic Party with its deep state auxiliaries begins to look like a monstrous hybrid of Matt Taibbi’s fabled Vampire Squid and the skulking Kraken of the maelstrom, devouring the innards of our republic in its deep, dark depths one institution at a time while a storm rages on the surface and citizen’s eyelids flutter in horror, frozen like sleepers in the paralysis of a nightmare, at the rising havoc and ruin. Or, to put it plainly: what the fuck is going on in America? Read More
09.11.20- The Fed Promises More Dollar Destruction
The Federal Reserve has potentially had the most memorable year in its more than a century–long history. What started out as a year of “Will they or won’t they cut interest rates?” blossomed into a time of slashing rates to near zero, unleashing unlimited quantitative easing, purchasing corporate and municipal bonds, and growing its balance sheet to a record high. Now, as the economic consequences from the covid-19 pandemic linger, the Fed has taken advantage of the crisis to modify its policies to be more expansionary—which will inevitably blow bubbles and wreak havoc on households everywhere. Read More
Like Lincoln, Trump faces many threats today both within his own neocon-infested administration as well as within the British run deep state that…
While some onlookers have found themselves cheering on this impending meltdown of the “great American empire”, I think it is wiser to take a more measured approach to the tragedy now unfolding in America and across the entire trans-Atlantic Community. After all, what would we expect to see under conditions of dissolution of the union into civil war and economic collapse? Would economic injustice disappear as the Eurasian multipolar alliance swept the world to restore peace and win-win development on everyone? Read More
Federal Reserve Chairman Jerome Powell recently announced that the Fed is abandoning “inflation targeting” where the Fed aims to maintain a price inflation rate of up to two percent. Instead, the Fed will allow inflation to remain above two percent to balance out periods of lower inflation. Powell’s announcement is not a radical shift in policy. It is an acknowledgment that the Fed is unlikely to reverse course and stop increasing the money supply anytime soon. Read More
09.08.20- Inflation — Running Out Of Road
If you think that price inflation runs at about 1.6% you have fallen for the BLS’s CPI myth. Two independent analysts using different methods — the Chapwood Index and Shadowstats.com — prove that prices are rising at a far faster rate, more like 10% annually and have been doing so since 2010.
This article discusses the consequences of price inflation suppression, particularly in the light of Jerome Powell’s Jackson Hole speech when he downgraded the importance of price inflation in the Fed’s policy objectives in favour of targeting employment. Read More
Do you see what is happening, Dear Reader?
We’re entering a new phase. Up until now, the Federal Reserve was backstopping Wall Street. This created a huge shift in wealth from average people – with few financial assets – to the “rich,” who own most of them.
But it was fake wealth. That is, the U.S. stock market could easily be cut in half. In a flash, about $17.5 trillion of “wealth” would disappear. Read More
Since the pandemic lockdowns were first implemented in the US I have been more concerned with the government and central bank response than the virus itself. As I have noted in past articles, the pandemic restrictions and subsequent economic and social crisis events they help to create will cause far more deaths than Covid-19 ever will. Not only that, but the actions of the Federal Reserve continue to con the American public into believing that there is some kind of “plan” to stop the crash that THEY engineered. Read More
09.04.20- Inflation - DOW 50,000 - Gold $50,000
The buzz word of Central Bank Chiefs at Jackson Hole was INFLATION: “The Fed to tolerate higher inflation” says Powell, “ECB to inject more monetary stimulus to ensure inflation” says ECB Chief Economist, “Bank of England has ample fire power to support UK economy…… and not tighten monetary policy until inflation returns“ says Governor of BoE.
INFLATION IS COMING Read More
09.03.20- The Fed's Stupidity is Still Well Anchored
Fed Vice Chair Richard H. Clarida gave a speech today touting the Fed’s new framework.Alleged Robust Evolution
A Non-Robust and Painfully Slow Evolution
Please consider A Robust Evolution by Richard Clarida.
09.02.20- This Has To Be A Joke,
After thinking about it all day, I’m still not quite sure this isn’t a joke; a high-brow commitment of utterly brilliant performance art, the kind of Four-D masterpiece of hilarious deception that Andy Kaufman would’ve gone nuts over. I mean, it has to be, right?
09.01.20- The Fed and the
The Federal Reserve system made a future financial panic or currency panic impossible. It made stable for the first time in the history of the United States the credit system of the people of the United States. – Senate Documents, 64th Cong., 1st Sess., December 6, 1916
We have been watching the bailout of the financial system by the Federal Reserve with astonishment. Never before has a central bank tried single-handedly to rescue both the financial system and a large proportion of U.S. corporations. We were taken aback then by Fed actions and are now just as worried about what it has given birth to. Read More
08.31.20- The Fed Has Yet Again
This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: The Federal Reserve props up gold once again, another $2 to $3 trillion are expected to be poured into the gold market, and the surprising cheapness of gold and silver.
Gold jumps as Federal Reserve strengthens inflation expectations Read More
In 1976, economist Herbert Stein, father of Ben Stein, the economics professor in Ferris Bueller’s Day Off, observed that U.S. government debt was on an unsustainable trajectory. He, thus, established Stein’s Law:
Stein may have been right in theory. Yet the unsustainable trend of U.S. government debt outlasted his life. Herbert Stein died in 1999, decades before the crackup. Those reading this may not be so lucky. Read More
08.28.20- Space Oddity & Helicopter Money
“Ground control to Major Tom … Your circuit is dead, there’s something wrong. Can you hear me Tom. Can you here me Tom”….Tom: “I am floating around in my tin can and there is nothing I can do.” (David Bowie)
Yes, Ground Control in the form of the major central banks have totally lost control and the world economy is now floating around helplessly without direction. Since the end of 2006, the major CBs (Fed, ECB, BOJ & PBOC) have increased their balance sheets from $5 trillion to $25.5t today. The great majority of the extra $20t created since 2006 has gone to prop up the financial system. Read More
Yesterday we explained why Bank of America, a contrarian voice among Wall Street banks, believes that hopes for an explicit announcement of Average Inflation Targeting by Jerome Powell in his highly-anticipated speech titled "Monetary Policy Framework Review" which wraps up an examination of inflation which started in early 2019 among both among central bank officials andthe public, will be a disappointment.
The first reason that an explicit policy would entail picking a specific time period over which PCE inflation is required to average 2% before beginning a policy normalization (hiking) process. Read More
08.26.20- Central Banks Driving Gold
Gold as an asset class is confusing to most investors. Even sophisticated investors are accustomed to hearing gold ridiculed as a “shiny rock” and hearing serious gold analysts mocked as “gold bugs,” “gold nuts” or worse.
As a gold analyst, I grew used to this a long time ago. But, it’s still disconcerting when one realizes the extent to which gold is simply not taken seriously or is treated as a mere commodity no different than soybeans or wheat. Read More
The biggest news for the markets right now concerns the Fed and inflation.
For the last 20 years, the Fed has argued that it is targeting an inflation rate of 2%.
Everyone knows that the real rate of inflation is well above this level. But the Fed is the Fed. And as the primary director of the financial system, the Fed’s target rate of inflation is used as a baseline for all major portfolio managers.
Which is why the following story is of MAJOR import: Read More
08.24.20- Fed Can Control Yield Curve.
In a response to the coronavirus crisis, the Fed has already cut interest rates to zero and implemented quantitative easing. But that’s not enough and the U.S. central bankers are now talking about “yield curve control”. What is it and how it could affect the gold market? Read More
We are living in strange times…
Conflict with China is by far one of the single biggest threats to the dollar. So it's worth paying attention to, because, as the last Cold War proved, it can escalate rapidly and persist for decades.
But there is another threat to the dollar that is being developed on our own shores – and by our own central bank. Read More
“Earlier today apparently a woman rang the BBC and said she had heard that there was a hurricane on the way. Well if you are watching, don't worry, there isn't.”
It’s blowing a full hooley out there this morning, which is very bad news for my olive trees as the storm is shaking the ripening fruit off. Shame. It’s the first time our little olive grove has produced what looked likely to become full-sized olives. I was going to add them to Dirty Martinis. Meanwhile, mink farms are being wiped out by coronavirus which is proving 100% fatal to the well-dressed ferrets. Interesting, but what does it mean…? Read More
08.20.20- The Response To The Fed's Minutes
Triffin's Paradox demands painful trade-offs to issue a reserve currency, and it demands the issuing central bank serve two competing audiences and markets.
Judging by the headlines and pundit chatter, the U.S. dollar is about to slide directly to zero. This sense of certitude is interesting, given that no empire prospered by devaluing its currency. Rather, devaluing the currency is a sure path to dissolution and collapse of the empire. This dynamic--devaluation leads to decline and collapse--is not exactly a secret. Read More
We aren’t going to any kind of a gold-backed monetary system because we already know that by doing that, central banks will lose power. Their goal is…
The Federal Reserve is actively trying to destroy the dollar, which was the plan when they started enslaving humanity in 1913. The goal has always been to own the world through the debt-based monetary system. Read More
If some Congress members get their way, the Federal Reserve may soon be able to track many of your purchases in real time and share that information with government agencies. This is just one of the problems with the proposed “digital dollar” or “fedcoin.
Fedcoin was initially included in the first coronavirus spending bill. While the proposal was dropped from the final version of the bill, there is still great interest in fedcoin on Capitol Hill. Some progressives have embraced fedcoin as a way to provide Americans with a “universal basic income.” Read More
Depending on which liars you listen to, we have had the Wuhan/Covid 19 flu for about 9 months. In that time we should have learned a lot. The quality of our data should be better now than it was back in February/March. Alas I think the opposite is true. We are being lied to more and more every day.
There is some kind of flu that probably came from Wuhan that may or may not have been deliberately released. If you are in the narrow band of people susceptible to it, it can and does kill. Read More
08.14.20- This Is What
Back in October, I published a blog post titled, “This Is What Monetization of the Debt Looks Like,” arguing that the Fed’s intervention in the repo market at the time was not a return to “quantitative easing,” as many critics suggested at the time, but simply the central bank acting as lender of last resort to the Federal Government. It was, in its purest form, a commitment to monetize that amount of debt that could not be absorbed by the market. Read More
The health of retirement accounts could soon take a big blow, thanks to a combination of rising price inflation and recent monetary policy issued by the Federal Reserve.
First, let's shine a light on the Fed monetary policy…
SAN MARTIN, ARGENTINA – This weekend, as expected, the Trump Team came forward with more ways to spend the money it doesn’t have.
The package, announced by Mr. Trump himself, ignored the people’s representatives – who, alone, according to the Constitution, have the right to determine how money is raised and spent – and declared a $400 per week bonus for people who don’t work.
As for those who do work, they will get something for nothing, too. Read More
Judy Shelton, a Trump nominee to the Fed Board of Governors, may not have coined the excellent term “Fed Bug,” but she used it to delicious effect in this 2019 Financial Times interview:
If you want to understand America’s dangerously deepening travails, youhave to start at the Federal Reserve’s Eccles Building.
After a 30-year rolling coup d’etat, its occupants have imposed a regime of destructive falsification onAmerica’s financial, economic, political, and social life.
It has become the heart of mushrooming darkness taking prosperity, liberty, and democracy down for the count. Read More
08.08.20- Judy Shelton is Right About the Gold Standard
Dr. Judy Shelton, one of President Trump’s nominees to the Federal Reserve’s Board of Governors, recently passed a Senate committee vote and is currently waiting to be confirmed by the full Senate. She has drawn scathing criticism from the commentariat, mostly due to her positive view of the gold standard. Shelton’s detractors have published several attacks on the gold standard in recent weeks. Steven Rattner, a counselor to President Obama’s Treasury secretary, writes that the gold standard is “a long-abandoned approach” and that a Fed official supporting it “would be akin to a Supreme Court justice embracing the Code of Hammurabi.” David Wilcox, a former research director at the Federal Reserve Board, lambaststhe gold standard as an “outmoded approach to setting monetary conditions.” The Los Angeles Times editorial staff complains that the “gold standard is the antithesis of modern monetary policy. Read More
08.07.20- The Consequences of Worthless Cash
08.06.20- How Central Banks Made
Historical events are complex phenomena, and monocausal explanations are therefore by definition wrong when explaining history. Many factors go into explaining why people and the world’s governments reacted as they did to the coronavirus. It is, however, my contention that examining the inflationary policies pursued by central banks and governments are fundamental to understanding how the current corona hysteria developed. Read More
Yesterday, we were looking at “transfer” payments. Today, we look closer. What exactly are we talking about?
Our developing hypothesis is that the furious money-shoveling in the last quarter was not just a “fluke.” It was part of a pattern, like the M.O. of a major thief. And it won’t stop until the criminal is behind bars. Read More
08.04.20- Second Fed President Calls
Richmond Fed President Thomas Barkin issued a video call today for more free money.
Thomas Barkin joins Minneapolis Fed President Neel Kashkari in the free money call. Read More
Over the past decade, the one common theme despite the political upheaval and growing social and geopolitical instability, was that the market would keep marching higher and the Fed would continue injecting liquidity into the system.
The second common theme is that despite sparking unprecedented asset price inflation, price as measured across the broader economy (at least using the flawed CPI metric) would remain subdued (as a reminder, the Fed is desperate to ignite broad inflation as that is the only way the countless trillions of excess debt can be eliminated and yet it has so far failed to do so). Read More
08.01.20- Say’s Law and the Effects of a Growing Money Supply
Modern central banks have tried to foster the boom and avoid the slump…
The credit cycle drives the business, or trade, cycle. It should be obvious that changes in the quantity of money, mostly in the form of bank credit, have an effect on business conditions. Indeed, that is why central banks implement a monetary policy. By increasing the quantity of money in circulation and by encouraging the banks to lend, a central bank aims to achieve full employment. Read More
Central banks worldwide have injected further stimulus into the economy, as European Union (EU) leaders recently approved a $2.1 trillion budget, the Bank of England boosted stimulus injections in mid-June, and the Federal Reserve announced on Wednesday that it would keep lending until the end of the year. Meanwhile, bank indexes show that financial institutions based in the UK, Japan, and the EU are about to break support levels that have held up since the mid-eighties. Read More
07.30.20- Is Gold Going to Call the Fed’s Bluff?
The Fed now has a major problem on its hands…
The Fed now has a major problem on its hands.
That problem is the fact that gold is ripping higher.
Americans see gold as a measure of inflation. Food prices, car prices, home prices, stock prices, practically the price of anything can rise and the average American won’t think “inflation.”
It’s a different story with gold. Read More
07.29.20- The “Government Put,”
Gold recently crested $1900, where it is today as of this writing. For some, the $1900 price level is an important indicator of momentum building. I’ll share with you some advice on the gold price offered by my zoom interview this week, George Gammon, Rebel Capitalist, below.
In an effort to help you sort things out, I’ve invited George to help us put the macro picture into perspective given the pandemic, shutdown of the economy, a bizarrely resilient stock market and prospects for your investments now and in the future. Read More
07.28.20- The Case of Dred Scott
Never before have I seen the case of Dred Scott as completely and accurately presented as John Remington Graham presents it in his monograph, Blood Money: The Civil War and the Federal Reserve.
Dred Scott was a slave who belonged to a United States Army officer, an army surgeon, John Emerson. In 1834 Emerson took Scott with him when assigned duty at Fort Snelling, which was located in Wisconsin Territory, a part of the Louisiana Purchase where slavery had been prohibited by the Missouri Compromise of 1820. Read More
The most frequently asked question I get these days is what is going to happen in November, 2020. The election seems to be on the majority of people's minds even more so that the coronavirus pandemic. In the summer of 2016 I accurately predicted that Donald Trump would enter the White House and met endless opposition to the idea. At the time, an overwhelming number of analysts in the liberty movement assumed Trump would lose, and that Clinton, by hook or by crook, would become president. Obviously this was not the case. Read More
Last week, Tyler at Zero Hedge ran an article from a site called Adventures in Capitalism, in which the writer (Kuppy?!) lets his light shine on the CIVD19 situation. He concludes that we’re all going to get it, it’s no use resisting, there will never be a vaccine and herd immunity is all we have left to hope for.
And I was thinking: what if he’s -largely- right? What if the utter lack of preparedness and the glaring incompetence we see displayed before our eyes all across the globe has made escape -almost- impossible? Surely at the very least we should prepare for that, too, even if it’s not the only thing we should prepare for. Read More
07.24.20- Blood Money: The Civil War and the Federal Reserve
Continuing from the prior column John Remington Graham’s thesis that the mis-named “civil war” was fomented by bankers who desired a large national debt that they could acquire in order to exand and contract currency and credit and thus control the econony and government, I present today with permission Graham’s analysis of the repeal, in effect, of the Missouri Compromise.
The Missouri compromise was put in place by statesmen determined to keep the North and the South, two separate countries with different legislative interests, in a state of even power in the US Senate. The compromise admitted Maine as a non-slave state and Missouri as a slave state. Thus, North and South retained the same number of senators, which forced compromise if anything was to happen. Read More
07.23.20- The Fed Can’t Make Pi
In 1897, the Indiana state legislature proposed a bill to assign a specific value to the mathematical constant pi. The Greek letter π, or “pi,” is often used to represent the ratio of a circle’s circumference to its diameter. According to historical accounts, the legislature debated proposals to set the legal definition of pi equal to 3.2 or a similar constant. Read More
Wealth inequality has become a major talking point for those primarily on the Left who are vehemently against capitalism. Often espoused by leftist professors, lawmakers, and think tanks, the increasing disparity in wealth among Americans has been a growing concern. Many have questioned for years whether the Federal Reserve and their fiat currency monetary system is a fundamental fraud in our economy today. Is the Federal Reserve causing wealth inequality, thereby sowing the seeds of Marxism? Read More
It’s time to show you’re Fed up! Get mad as hell! Don’t take this any more! Scorch the earth with your rage! Yell from the rooftops! Stick your head out the window and scream! Fight the economic injustice that serves the rich! Kick political asses, and kick them hard! Don’t just whine, do something about it!
Ten commandments to show you’re Fed up! Read More
In the beginning of the film Gladiator, after the defeat of Germania, there is a scene when Marcus Aurelius calls Maximus into his tent and tells him of his plans for Rome after he dies. During that conversation Caesar tells Maximus, “There was once a dream that was Rome.” Caesar was telling Maximus that Rome was more than just a spot on a map, it was an idea; and, while they had strayed from that idea it was Caesars hope that by placing Maximus in charge he could steer Rome back towards its founding idea as a republic. That idea, that concept, has been on my mind a lot lately as I watch the country I love circle the toilet. Read More
07.18.20- The Last Gasps of
It was a mid-afternoon in 2006 in Cannes, where I joined Dr. Kurt Richebächer at his apartment to collaborate on a book project that, unfortunately, failed to come together before his death a year later.
The old man grabbed his cane and moved to a comfy chair and clicked on a widescreen TV.
Bloomberg. In German. Read More
Most everyone you know is a member of a cult. It’s not their fault, and they didn’t consciously seek it out, but your friends and family and almost everyone you know and even come in contact with belong to a system that has brainwashed them.
This cult is robbing them. And it’s doing so clandestinely, without their knowledge or approval. It’s so sly that they don’t even know it’s happening.
In fact, the leaders behind this cult have convinced them that this system is normal. They accept it, since that’s the way things are done and the way everyone else does it. Read More
07.16.20- The Fed’s Liquidity Confusion
The most essential function of the Federal Reserve is to provide money, or liquidity, to the financial system. The Fed is responsible for ensuring that the supply of money is equal to the total amount demanded. It is not responsible, however, for ensuring that each company and municipal government has sufficient cash to meet its obligations.
Fed Chair Jerome Powell recently testified to Congress regarding the Fed’s response to the coronavirus outbreak and lockdown. In addition to cutting interest rates to near zero, Powell described the Fed’s “forceful measures in four areas:” Read More
Federal Reserve Chair Jerome Powell and San Francisco Fed President Mary Daly both recently denied that the Federal Reserve’s policies create economic inequality. Unfortunately for Powell, Daly, and other Fed promoters, a cursory look at the Fed’s operations shows that the central bank is the leading cause of economic inequality.
07.14.20- The Bottom’s Falling Out
Imagine you’re standing across the street from a house that’s on the verge of falling apart, a condemned building, an edifice devoured by rot from bottom to top. Now imagine you see a construction crew arriving to repair it, and they start to fix the roof. You would think that’s not much use if the walls, floor and foundation are just one wolf’s huff and puff away from collapse.
Still, that is what the world’s central banks are doing today: they “fix” the top by bailing out banks and allege that somehow that will fix the rest of the edifice too. In that same analogy, while central banks prop up banks, governments try to support the walls, by bailing out businesses. Again, while the floors and foundations keep on rotting away. And when the floors cave in, so of course will the walls, just like the roof. Read More
Since the onset of the pandemic, the Fed has entered into the most aggressive monetary campaign. Its goal was to bolster asset markets to restore confidence in the financial system. However, the trap is the Fed is in a position where they can never stop QE as interest rates can’t rise ever again.
As we discussed previously, Jeremy Siegel already declared the end to the 40-year bond bull market.
It’s nothing but rosy news coming from the Federal Reserve.
Recently the Fed released this reassuring statement:
“The banking system remains well-capitalized under even the harshest of these downside scenarios. . .”
In other words, everything is just fine. Read More
As the inverted pyramid collapses, the effects will be non-linear...
Round about late March, we entered a Financial FantasyLand in which all the sins and excesses of rampant financialization were going to be painlessly washed away. Never mind the entire U.S. economy is an inverted pyramid of balance-sheet “value” and debt resting on a shrinking foundation of collateral; everyone would be made whole in the Federal Reserve’s Financial FantasyLand. Read More
During the first wave of pandemic lockdowns, America became a rather surreal place. The initial shock that I witnessed in average people in my area was disturbing. Half the businesses in the region closed and a third of the grocery store shelves were empty. The look in people’s faces was one of bewilderment and fear; their eyes were like saucers, no one was staring into their cell phones as they usually do, and people huddled over their shopping carts like wild dogs protecting a carcass. Read More
Make It So!
Back in the 1980s there was a lot of discussion at my college about “post-modernism”. At that point it was in a strictly cultural sphere. It meant different things to different people, but I personally found enlightenment in the example of Jean-Luc Picard, captain of the starship Enterprise. To be “post-modern”, I was told, was to be a cultural creation from beyond the modern era. The original Star Trek had been modern (indeed, ultra-modern for the time), but it had clearly been based on pre-modern concepts, such as novels like Horatio Hornblower and Westerns. On the other hand, Star Trek: The Next Generation was based on Star Trek, and hence was “post-modern”. Read More
07.07.20- A Long and Perilous Journey
Suppose you knew tragedy would occur at the end of a long journey. That knowledge would change your behavior, attitudes, and expectations. Global financial systems are near the end of a long journey.
What Long Journey?
Most unbacked fiat currencies issued by governments and central banks have failed and ended in tears, inflation, abuse, and corruption. Governments collapsed, devalued currencies to minimal or zero value, and people lost jobs, savings, retirements, and homes. Read More
In last week’s article I discussed the issue of American “balkanization” and the rapid migration of conservatives and moderates from large population centers and states that are becoming militant in their progressive ideology. In my home state of Montana there has been a surge of people trying to escape the chaos and oppression of leftist states. Some are here because of the pandemic and the harsh restrictions they had to endure during the first lockdowns. Others are here because they can’t stand the hostility of identity politics, cancel culture and race riots. Either way, they are fleeing places with decidedly leftist influences. Read More
In a recent disclosure to Congress, the Fed revealed that it just purchased $429 million in bonds from 86 corporations.
They did this through something called a Secondary Market Corporate Credit Facility (SMCCF). Buried on the Fed’s website, the press release explains the intention behind this purchase of bonds:
In the minutes of the June 9-10 FOMC meeting, the Fed discussed racism, Covid, Forward Guidance, Asset Purchases, and Yield Curve Caps.
07.02.20- Central Banks: Gold’s Greatest Ally
You’re likely aware of the price action in gold lately. Gold has rallied from $1,591 per ounce on April 1 to $1,782 per ounce as of today. That’s a 12% gain in less than three months.
My earlier forecast was that gold would hit $1,776 by the Fourth of July. I guess I was a bit early!
Today’s price of $1,782 per ounce is the highest since 2012 and a 70% gain from the low of $1,050 per ounce at the end of the last bear market in December 2015. Read More
I’d like to thank Jay Powell and his marvelous printing press. The equity side of my investment fund, which I manage, is 100% mining stocks – mostly juniors – and as of today it’s up 100% QTD. Thank you Jay. Almost every stock we hold is from the ideas I present in my Mining Stock Journal.
But I’m here to discuss the “idiot stocks.” I’ve decided to label stocks like SHOP, W, TSLA, BYND, CVNA, etc as “idiot stocks.” Yes, ignorant speculators have managed to get lucky trading these stocks during a period of time when the Fed has printed the greatest amount of money in its history. Read More
While the economic storm caused by COVID-19 has seemed to wane (temporarily?), the stock market can’t seem to go but one direction—up. Graham and Dodd’s meaty 700-page Security Analysis has soared to number 7695 on the Amazon best-seller list. According to Warren Buffett, the book is “A road map for investing that I have now been following for 57 years.”
One wonders what roadmap the young people who saw the pandemic March meltdown as an opportunity to buy slices of familiar technology stocks are following? Read More
06.29.20- Into Darkness:
The system is hurtling towards breakdown. Protect yourself now.
As you may know, I was one of the very first voices publicly reporting on covid-19, issuing an alert that the virus was a significant pandemic event on Jan 23rd, 2020.
This was long before most media outlets even managed to write their first “It’s just the flu, bro!” article. Read More
There seems to be no end to the Federal Reserve’s arrogance. Fed officials believe that through their wise actions, they can eliminate the business cycle, lower unemployment and make society prosperous. But it’s actually much more limited in what it can do.
All the Fed can reliably do is stop bank runs and limit liquidity panics. It can also fund (or “monetize”) the U.S. federal deficit, as it has done in recent months.
By buying essentially the same amount of U.S. Treasury securities the government has issued, the Fed has taken pressure to fund mammoth federal deficits off of the private sector. Read More
06.25.20- Why the Central Bank "Bailout of Everything" Will Be a Disaster
Despite massive government and central bank stimuli, the global economy is seeing a concerning rise in defaults and delinquencies. The main central banks’ balance sheets (those of the Federal Reserve, Bank of Japan, European Central Bank, Bank of England, and People’s Bank Of China) have soared to a combined $20 trillion, while the fiscal easing announcements in the major economies exceed 7 percent of the world’s GDP according to Fitch Ratings.
This is the biggest combined stimulus plan in history. However, businesses are closing at a record pace and unemployment has reached extremely elevated levels in many countries. Read More
The New World Order is progressing at a rapid rate and Donald Trump isn’t even putting speed bumps in the way
While the mainstream media focuses on which senile sycophant will be the bankers’ puppet for the next four years, the central banks are destroying what’s left of the economy and sovereignty to usher in the New World Order. The election is all just a distraction from the real enemy; the banking cabal that runs the world and has already selected the next president. Read More
In a sign that the Federal Reserve is growing increasingly desperate to jump-start the economy, the Fed’s Secondary Market Credit Facility has begun purchasing individual corporate bonds. The Secondary Market Credit Facility was created by Congress as part of a coronavirus stimulus bill to purchase as much as 750 billion dollars of corporate credit. Until last week, the Secondary Market Credit Facility had limited its purchases to exchange-traded funds, which are bundled groups of stocks or bonds. Read More
You thought that monkey on your back was light as a feather, but now it transmogrified overnight into a crushing gorilla.
Dear junkies addicted to the Federal Reserve's free-money smack: like all addicts, you firmly believe you're not addicted. Never mind those tracks, you can stop any time. Yeah, sure, but we all know you're going to buy the dip and max out your margin account because the craving cannot be denied. Read More
06.20.20- Revealed: The Fed’s Next Trick
Today we lower our ear to the rail… and report the approach of a rumbling locomotive.
Free and honest markets are roped to the tracks, squirming, writhing, sobbing.
This iron horse is barreling toward them. Mr. Jerome Powell is at the controls…
And murder is on his mind. Read More
The coronavirus was a heck of a cover for the Federal Reserve’s failings, and the riots are laying even more cover for what’s to come. While the masses focus on what’s happening on the surface, the real criminals laugh at our ignorance from their metaphorical ivory towers.
As we fight amongst ourselves and try to figure out which violence is more acceptable looting or police brutality, the ruling class is tightening the chains of our enslavement. With the help of the mainstream media, we are distracted from the core of the problem while dividing ourselves as the masters command. Read More
06.18.20- Our Wile E. Coyote Economy: Nothing But Financial Engineering
Ours is a Wile E. Coyote economy, and now we're hanging in mid-air, realizing there is nothing solid beneath our feet.
The story we're told about how our "capitalist" economy works is outdated. The story goes like this: companies produce goods and services for a competitive marketplace and earn a profit from this production. These profits are income streams for investors, who buy companies' stocks based on these profits. As profits rise, so do stock valuations. Read More
06.17.20- Goodbye, Free Market
Fremdschämen is a noun of the German language. It translates this way:
Embarrassment for those incapable of feeling embarrassment.
Today we suffer embarrassment for Mr. Jerome Powell and his fellows of the Federal Reserve…
For no action they take lowers their heads in shame… or blushes their cheeks with embarrassment. Read More
06.16.20- Fed Gold Buying May Soon Be the “Policy Option of Choice”
06.15.20- Savings Are Critical to a Prosperous Economy
The heart of economic growth is the expanding pool of real savings. Monetary pumping destroys the flow of real savings and in turn…
It is held by most mainstream economists that spending is the heart of economic activity. Economic activity is depicted as a circular flow of money. Spending by one individual becomes part of the earnings of another individual, and vice versa. In contrast saving is viewed negatively as it weakens the potential demand for goods and services. Read More
The doyenne of MMT, Stephanie Kelton, has published a book this week explaining modern monetary theory. This article examines the foundations of MMT which Kelton explained in an earlier video released last year.[i]
Macroeconomics has become so far removed from reality that its practitioners cannot understand what is happening in the real economy. Never has this been more obvious than today. While they claim to be economically literate, macroeconomists are in thrall to their paymasters; a combination of government, quasi-government and financial institutions with a vested interest in not looking too closely at the full consequences of government economic and monetary policies. Read More
Ignorance is Bliss
The investment community witnessed financial history on Wednesday. For fifty minutes, Federal Reserve Chairman Jay Powell highlighted the risks to the economy. Specifically, he indicated that there is so much uncertainty to the economic outlook that the Fed’s forecasts in the Summary of Economic Projections are essentially useless. He warned that there are 22-24 million people out of work, and that millions will remain out of work when the economy recovers. He skillfully dodged a couple of questions about asset prices. Finally, with the last question of the day, Bloomberg’s Mike McKee nailed it when he asked the questions on all investors' minds. Read More
British economist Charles Goodhart observed in the mid-1970s that “when a measure becomes a target, it ceases to be a good measure.” Some 45 years later, Goodhart’s Law is at the center of a fierce debate in financial markets over whether governments and central banks turned riskier assets such as equities into targets. And if so, are markets no longer measures of the economy?
Small investors seem to have figured out that the Federal Reserve has, indeed, targeted markets through its unprecedented stimulus programs. They know that markets are now designed for investors to win, as evidenced by the S&P 500 Index’s about 43% gain since late March despite the worst economic recession since the Great Depression. Dave Portnoy, the founder of the website Barstool Sports who recently took up day trading, recently explained it best: Read More
Over the next several weeks everything Charles Holt Carroll got right in his assessment of the damage wrought by inflation, and everything Jerome Powell got wrong in dismissing the Fed's role in causing wealth inequality will be discussed. It will also be shown that the Fed's leading role in the concentration of wealth is merely a by product of the enormous inflation the Fed has created since it was freed from the constraints imposed on it by the Bretton Woods agreement of 1944. This agreement made the dollar the world's international reserve currency and valued the dollar at $35 per ounce of gold. (gold now trades around $1700 per ounce) Per this agreement, any national central bank could present $35 to the Federal Reserve and exchange the currency for one-ounce of gold. (individuals couldn't do this) Read More
America the Combustible
If we had all only known in March how everything was going to turn out we might have been able to do something different. Like move to Antarctica. What passed for worries for most Americans last year at this time certainly seem a bit trivial now that lockdown fever has exploded into full-blown civil unrest.
If this all seems a little too slick, organized, and, well, scripted it’s because it is. The first draft of this nightmare was written by the original hipster beard boy commie Karl Marx over 170 years ago. Read More
Governors Encourage Mass Protests While Keeping Others Locked Down
Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.
Coming up later in the program we have a conversation with Michael Pento of Pento Portfolio Strategies. Michael weighs in on the massive increase in the Fed’s balance sheet over the last several months, amounts that make the stimulative response to the Great Recession a decade ago look like chump change. Read More
06.06.20- Gangster State Capitalism
Hanne Herland of the European Herland Report has just had her book published in which she argues that the ruling elite has resurrected feudalism by financializing the economy and offshoring middle class jobs. The title is New Left Tyranny, but it is about gangster state capitalism.
Historically, capitalism freed labor from bondage by making labor the private property of the person. Serfs who owed labor obligations to lords became free individuals. Free labor markets and emergent capitalism made productive by technological advancements created with time rising living standards and a free people determined to protect their independence by holding government accountable.Read More
SAN MARTIN, ARGENTINA – We read the news. We are appalled.
Yesterday, we saw that, soon, it may not be only Blacks who want to set fire to police stations.
Since the bottom of the Crisis of ’08-’09, the 20% of the population at the bottom of the heap – largely young and/or Black – has lost 25% of its wealth.
The next and biggest group, those with more than the bottom 20% but less than the top 40%, are essentially even. That is, they hit bottom in March ’09… and never recovered. Read More
The scapegoating has already started. In almost every sector of the economy that is collapsing, the claim is that “everything was fine until the pandemic happened”. From tumbling web news platforms to small businesses to major corporations, the coronavirus outbreak and the subsequent national riots will become the excuse for failure. The establishment will try to rewrite history and many people will go along with it because the truth makes them look bad. Read More
The debate over the morality and practicality of forced vaccinations has been raging for many years, long before the coronavirus ever hit the US population. With the advent of the pandemic the narrative has shifted to one of “necessity”. The media and the majority of governments around the world now act as if mass vaccinations are a given; the “debate is over”, as collectivists like to say when they are tired of having to deal with any logical or factual complaints.
In the case of the novel coronavirus there is no vaccine yet; unless of course the virus was engineered or evolved in a lab (as more and more evidence is suggesting), and then perhaps there is one already developed. Typically, vaccines take years to test and produce, and whenever a vaccine is rushed onto the market very bad things tend to happen. Read More
06.02.20- This Time, the Fed Can’t Avoid Inflation, Says Expert
Can the Federal Reserve avoid inflation once again?
As the dust around the 2008 financial crisis settled, some may have been surprised that the eagerness of the Federal Reserve to print money did not cause inflation, or even hyperinflation. Yet those who are expecting the same turnout this time around should look at the underlying nature of both crises. Read More
06.01.20- Defining "Inflation" Correctly
Inflation is typically defined as a general increase in the prices of goods and services—described by changes in the Consumer Price Index (CPI) or other price indexes.
If inflation is a general rise in measured prices, then why is it regarded as bad news? What kind of damage can it inflict? Mainstream economists maintain that inflation causes speculative buying, which generates waste. Inflation, it is maintained, also erodes the real incomes of pensioners and low-income earners and causes a misallocation of resources. Read More