Thursday, June 29, 2017

Treasury Will Run Out Of Cash In Mid-October, CBO Warns

The US government is Illinois 2.0 on steroids.  The key difference being, of course, the US Treasury and Fed will just create more dollars out of thin air, and Congress will just raise the debt limit, kicking the can down the road further.  The problem is one day, that can will be a boulder.

Wednesday, June 28, 2017

The End of the (Petro)Dollar: What the Federal Reserve Doesn’t Want You to Know

Sovereign nations looking to de-dollarize (for good reason) may want to reconsider (for good reason).  The US military industrial complex and the banking cartels which fund the perpetual wars don't look kindly on those attempting to abandon the petrodollar's reserve currency status.

Tuesday, June 27, 2017

Jim Grant Explains the Gold Standard

A return to a gold standard may not happen by design, but it will inevitably happen again--as it always has throughout history. Paper money experiments always eventually fail.

How Will Gold Perform During The Next Global Financial Crisis?
A possible explanation for the negative correlation between gold and the dollar may be found in the attribute as a safe asset in crisis situations. Although the dollar and gold may superficially be considered substitutable, a closer examination reveals a different picture. In local crises, the US dollar is seen as a desirable asset by many market participants because the survival of the fiat money system as such is not questioned.

It is different in the case of systemic crises. In these situations, confidence in fiat currencies and the banking system is shaken and many market participants pay heed to gold’s historical function as money. Particularly in systemic crises, gold is perceived to maintain its value, while paper money is in danger of becoming completely worthless.

Sunday, June 25, 2017

Get Ready for ‘QT1’: A First Look at the Federal Reserve’s Hidden Policy

Jim Rickards is a stud--let's just get that out of the way.  He has the academic and government pedigree, but he is also street smart and clever to boot, as a hedge fund manager and former Wall Street attorney.  He's not a feckless bureaucrat by any stretch, often formulating a contrarian opinion divergent from Wall Street's echo chamber of group think.

The result is a straightforward, but insightful assessment of potential black swans, often combining theories of complexity and game theory.

Thursday, June 22, 2017

Wednesday, June 21, 2017

Anti-Gold Propaganda Flares Up

Shanghai Gold Exchange to offer yuan-back futures contract in Budapest

Another brick in the petrodollar hegemony wall falls down.

Fed Trying to Cripple Trump Economy-Danielle DiMartino Booth

Danielle DiMartino Booth sounds like a lunatic fringe blogger. The only problem with that labeling is she is a former Fed insider.

Owning Gold Is the First Step to “Freedom Insurance”

Ron Paul Interviews Snowden On The "Rise Of The Deep State"

Gold Is ‘Managed’ by Wall Street and The Fed - Frank Giustra

I agree with Frank Giustra that gold is being "managed by central banks," but I fail to see the difference between the term "managed" and "manipulated".

Saturday, June 17, 2017

Bitcoin: Pros and Cons

My view on Bitcoin is somewhat ambivalent. As I blogged 4 years ago, it is a legitimate currency, as it is being used by many and is now being endorsed by financial institutions, even if reluctantly. It made sense as a hedge earlier when prices were much lower, as the fiat currencies are being systematically debased globally (central banks are creating their sovereign currencies with reckless abandon).

But are crypto-currencies sound money? I contend they are not, because while Bitcoin has an upper quantity limit of 21 million, that doesn't preclude others from creating alternative blockchain crypto-currencies (including the institutional favorite, Ethereum). Indeed, there are thousands of cryto-currencies in existence today already. In other words, while Bitcoin is limited to an eventual quantity of 21 million (a good thing for maintaining purchasing power), there is no shortage of competing crypto-currencies (which is a bad thing).

There are other real risks of possessing crypto-currencies (the biggest being forgetting your password, rendering permanent loss of access). Owners have been hacked, exchanges have been hacked, despite 256-bit encryption and peer-to-peer infrastructure), or the grid could go down.
In a mad world of fiat currencies where the financial elite can steal wealth from the masses via the printing press, Bitcoin is a viable hedge option. But is it the ultimate safe haven asset? No.

Central Banks Are Driving Many to Cryptocurrencies

And here is the opposing view, one which is pro-Bitcoin:

This Insubstantial Pageant Faded...

It's usually prudent to consider all sides of a concept or debate. Hugo Salinas Price is a Bitcoin skeptic--no, check that--he's a Bitcoin cynic, and makes some valid points. Granted, he's a big advocate of silver, so he is essentially "talking his book". But he ponders some questions which any wise person should consider.

The Pin To Pop This Mother Of All Bubbles?

This is a must-read for those who don't understand why the media broadcasts positive economic numbers when Main Street reality is completely opposite.  Residents are being squeezed by our corrupt banking system and thus, can't make ends meet.  Yet, the presstitutes keep cheerleading that everything is awesome.

Hillary Emails Reveal NATO Killed Gaddafi to Stop Libyan Creation of Gold-Backed Currency

This is old news for readers of this blog, but it's a good summary of the Gaddaffi murder for the sleepy-eyed.  Foreign policy of "king dollar" is everything, and top US officials know once the dollar loses its global reserve currency status, it's lights out for American hegemony.

Thursday, June 15, 2017

Texas taps private vendor to manage first state-run gold depository in U.S.

I didn't predict this, but I highly suggested this back in 2011 <click here> and 2013 <click here>.  That's probably understating it:  I pounded the table.  Texas is finally creating their own gold depository in Austin.

Here is an excerpt from my January 8, 2013 blog entry:

While I agree with him in principle, I don't believe UTIMCO went far enough.  Their gold bars do exist, but they are stored in HSBC's vaults, the custodian for the GLD ETF.  There have been some grumblings of HSBC manipulating GLD shares and physical inventory, as well as accusations of JPMorgan manipulating the SLV ETF for silver.  It's the ol' fox guarding the hen house syndrome.  If I were UTIMCO, I would go even further, and send a team of Texas Rangers to HSBC's vaults in New York, repatriate and transport those gold bars back to Austin, Texas.  After all, if/when the $hit does hit the fan, possession is 100% ownership--irrespective of legal paper claims.

Celente – This Trigger For A Global Stock Market Crash Will Devastate The World

You won’t believe this stupid new law against Cash and Bitcoin

Peak Economic Delusion Signals Coming Crisis

Saturday, June 10, 2017

The Secret World of Gold

Meet The 22 Economists That Want To Kill Your Purchasing Power

This is why Bitcoin is soaring, while gold and silver will. The Fed will raise their inflation target to 2%, benignly in their opinion. Keynesian economists will be the downfall of US citizens.

Paul Craig Roberts – This Will Complete The Economic Destruction Of America And The World

Clinton's repeal of Glass-Steagall has been catastrophic for the US economy and workers.

It's Official, Obamacare Collapse Is Trump's Fault - Just Ask The WA Insurance Commissioner

Killing the Pigeons

This is a very accurate accounting on the consequences of the left's ideology.

The Three Headed Debt Monster That’s Going to Ravage the Economy

Why The Markets Are Overdue For A Gigantic Bust

Martenson applies common sense in a monetary world gone mad.

Tuesday, June 6, 2017


This guy gets it.  Record-high markets can surge ever higher, in a so-called crack up boom.  A bull market climbs a wall of worry, with prognosticators anticipating a collapse which ultimately occurs later rather than sooner.

The author acknowledges a stock market crash will occur, but it will occur only after the bond market collapses, which is the bigger bubble.  And the collapse will be inflationary in nature, not deflationary, as most pundits predict.  In other words, the smart money will eventually be proven right--but they will also be early and probably lose a lot of money before they will eventually be proven right.

It's difficult to be a contrarian when the majority of people agree with you.

Similar to generals fighting previous wars, investors are fighting yesterday's crises.  NO ONE is expecting inflation to be an issue--deflation is the boogeyman declared by everyone in the financial services industry.  In fact, the global monetary authorities (including the Fed, the Treasury, and other central banks) have stated a "desirable" inflation goal of 2% (the way inflation is calculated is understated, which deems these inflation targets meaningless anyway).

My forecast is that they will reach their inflation goals, and even exceed them, at which point, the Fed will lose control of the long end of the bond curve, resulting in runaway inflation.  It will be hard to put the inflation genie back into the bottle.  The end game is a collapsing bond market and soaring interest rates, as confidence in the purchasing power of the dollar will dissipate.  Be careful what you wish for:  you may get it--and some.

Another truism:  QE to infinity.  Central banks know they must inflate or die.

Friday, June 2, 2017

What Will The Global Economy Look Like After The “Great Reset”?

An Insight, An Idea With Christine Lagarde

In rare moments of candor, the IMF and BIS does have a history of sharing concerns.  IMF Managing Director Legarde blurts out 200 million workers are unemployed in the western world.  She also keeps mentioning the word "reset", more specifically "global monetary reset."

That is globalist code speak for the USDollar losing its petrodollar status as the global reserve currency.  In its place will be the Special Drawing Right, an IMF currency consisting of a basket of dollars, euros, sterling, yen, and now Chinese yuan.

BIS warns of Great Depression dangers from credit spree

Some global elites DID give advanced warning prior to the 2008 financial crisis.

Tim Harford's Gold Investment Folly
" Sell economic ignorance; buy gold."