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Old 10-11-2019, 03:13 PM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,898
Armstrong,,, more speedbumps

For quite a few years, the U.S. dollar was backed by gold. This was a way to buy confidence. More importantly, gold-backing acted like a governor on the sovereign bond market. This, in turn, made it much more difficult to start wars that had to be financed up-front. As the gold backing melted away, the wars financed by credit spread around the world.
Gold backing thus served 2 purposes. Of primary importance was the prevention of credit bubbles to finance wars. The secondary purpose of creating confidence in the currency was secondary. When everybody went off a gold / silver standard, confidence in currency levelled out. Gresham's Law made sure that no single currency could be gold-backed. The economy needs a transactional currency. If a superior currency is hoarded, it isn't available for trade. A gold backed currency would be used as a store of value instead of a transactional device.
Bonds are a different story because they are not used for transactions.

For many years, the German Mark was very strong even though Germany had NO gold. So, what truly makes a currency strong?
Armstrong argues that the strength of a currency is dependent on the skills, work ethic education and GOV restrictions.
So, within a given economic sphere, fiat currency is OK. Since all States try to do competitive devaluation, this argues for gold-backed bonds. The BIS demands that ALL settlements between States are settled in gold. This prevents State "A" from printing up fresh Money to pay State "B".

OK, the strength of a currency is dependent on the education and skills of the workforce. What if that workforce is shrinking?
At the same time, automation is making much of the workforce redundant.
Electricians are now making 6 figure salaries. You can't find an electrician or plumber in Germany. everybody wants to sit at a desk and, not get their hands dirty.

Armstrong; "General Electric Co announced it was freezing its pension fund for about 20,000 U.S. employees with salaried benefits as the Pension Crisis continues to build. Its pension deficit is up to $8 billion."
"This is the cost of Quantitative Easing and lowering interest rates to artificially low levels. This is the collapse of socialism. All the promises are collapsing."
The private pension funds are about $380 billion in arrears at funding their in-house pensions. The PRIVATE pension fund shortfall has NOTHING to do with socialism.

Armstrong, "The interesting thing is as revenues decline in these state, they raise taxes and enforcement to make up the short-fall which in turn then send more people out. If a retail store sees a recession and sales decline, they run a sale to entice people to buy. The government is incapable of proper management. This is like a recession comes so the store doubles its prices to make up for the decline in prices. Duh?"

10/11 Most voters agree with Trump’s withdrawal from ‘endless wars’ – Zero Hedge
10/09 Graham rips into Trump for removing troops from Syria – CNN

Graham should go to the front lines and, make a stand.
10/11 Zimbabwe’s capital runs dry as taps cut off for 2m people – AP
Both South Africa and Zim have a huge population but, severely degraded infrastructure.
10/11 Geopolitical signals of global economic crisis abound – Technical Traders
But, nothing like that here at home.
10/10 California set to end private prisons and immigrant detention camps – Reuters
They can join the homeless camps.

10/10 It’s looking like one huge deposit – Great Bear Resources
The main part of this gold deposit will yield one gram per ton of rock. Imagine all the energy spent to get just one gram.
10/10 Debt market suffering “quiet meltdown” as billions in loans are suddenly crashing – ZH
So, how much longer will this all be "quiet"?
10/10 Blizzard-like weather approaches, only half of corn is mature, USDA says – Agriculture
10/11 ‘Crippling blizzard’ blasts Northern Plains; Denver weather is wild – USA Today

Robin Hood In Reverse - US Billionaires Paid Lower Tax Rates Than Working Class In 2018 In Latest Blow To Capitalism
Communist UN Facing Cash Crisis - Warns Staff Could Go Unpaid In November
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