View Single Post
Old 10-14-2019, 02:38 AM
Danny B Danny B is offline
Platinum Member
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,891
Competitive devaluation,,, gold,,, crypto

Mikey, I rarely watch the X-22 report because they don't demonstrate enough technical understanding / proficiency. I don't know if they just don't have it OR, they simplify things to keep in a time limit. You just can't lump together financial instruments.
A fiat currency note is a bearer bond of zero (time) maturity. Fiat currency is NOT going to go away. With the proviso that electronic money does not replace it. The State would VERY much like to see full electronic money to supply unlimited tax power. The State just can't help itself. Given unlimited tax power, the State would foster unlimited wealth transfer. This would be effective communism and, would destroy wealth creation.
Trump seems to be pulling away from the saturated facial recognition that would make unlimited identification & taxing a reality.

X-22 seems to make NO differentiation between bonds and currency. A bond can have a maturity out to 100 years. A currency is a transactional instrument. A bond is nominally a store-of-value. You can't lump them together. No transactional currency can serve as a store of value. BUT, because of a loss of confidence in most world currencies, the dollar is now serving as a worldwide store-of-value instrument. A store-of-value currency will go into hiding and, deprive the economy of a transactional instrument. The FED has responded to this potential problem by flooding the world with fresh $100 notes. This does not cause deflation of the value of the note because there has been no deflation of confidence in the dollar.

A gold backed / denominated bond can go into hiding and, that isn't a problem. A gold-backed currency isn't truly gold backed unless it is gold convertible. Since the State can't help but print, all the currency would soon get converted.

Automation fosters unemployment. Unemployment fosters social unrest. Every currency dominion is going to try to avoid unrest and chaos. Every currency dominion is in competition with every other currency dominion. We saw that in the late'30s. Germany was too productive and too efficient for France and England to compete. Worse yet, Hitler had kicked out the European banks and, injected money into the economy for actual work. He squeezed out the speculators.
Churchill; "Germany doesn't want a war but, we will force one on her."
Churchill; "WW II could have been avoided but, the bankers wanted it"
So, the West sided with the jewish Bolsheviks and attacked Christian Germany.
In the '60s, Churchill commented, "we butchered the wrong pig."

As automation increases, unemployment / chaos increases. As the government takes on more debt, It's finances become more perilous. This all shows up in the bond market. Currency is an entirely different story because is a zero-maturity note. It never trades at a discount. The "people" could do without bonds. They could never do without a currency. Barter is too limited. Imagine trying to barter with Exxon for a tank of gas.

China is over a barrel right now because of food shortages,,, especially pork. Wasn't it fortunate for America that swine flu wiped out Chinese pork producers.
China is in a dealing mood now.

Jim Willie claimed that; after the reset, international claims will be settled in gold. He said that America would have to lease 10,000 tons of gold from China.
Here is a collection of Articles from Armstrong on the sovereign debt crisis.

"An article published by the De Nederlandsche Bank (DNB), or Dutch Central Bank, has shocked many with its claim that "if the system collapses, the gold stock can serve as a basis to build it up again. "
"DNB holds 615 tons (15,000 bars) of gold mainly in Amsterdam, with other stores in the U.K. and North America; the value of this gold reserve is over €6 billion ($6.62 billion). Calling gold the “trust anchor,” the article details briefly why the hard asset is so important to wealth building and the global economy, claiming: "Gold is... the trust anchor for the financial system. If the whole system collapses, the gold stock provides a collateral to start over."
"the bank announced it would soon be moving a large part of its gold reserves to "the new DNB Cash Center at military premises in Zeist."

Almost as if the Netherlands is preparing for the grand reset, and is moving its most valuable asset to a "military" installation just for that purpose."
"It is hardly a coincidence that in its preparation for monetary doomsday, the Dutsch Central Bank is also set to begin cracking down on crypto exchanges and wallets, stating that "firms offering services for the exchange between cryptos and regular money, and crypto wallet providers must register with De Nederlandsche Bank.""

" the motivation of the five large banks not to lend to institutions that needed funding: it wasn’t that the banks were worried about solvency; it was that they had no cash to lend. "
"When the Fed buys Treasury bonds (or entices banks to do so), the government spends that money mostly as transfer payments for consumption"
" Myrmikan’s January 2019 letter points out that historical trends suggest that a recession would increase federal deficits beyond $3 trillion per year."
"The private sector thus was able to absorb half of the $20 trillion in new credit growth, and the government squirted the other half into the economy through deficit spending."
QE-for-the-people is the end game of the inflationary economic cycle. Gold will anticipate it first.

Morgan Stanley Makes A Stunning Observation: 28% Of The US Population Has FICO Score Below 650
J.P.Morgan Warns About The "State" Of The American Consumer
"Dear Jay Powell, How Stupid Do You Think We Are?"

"The forces of intervention want to “extend the business cycle” and they are throwing the kitchen sink at it..."
There is an election coming.
Monetary Failure Is Becoming Inevitable
...the consequences are unthinkable for the authorities.
Retail Investors Are Acting As If A Financial Crisis Is Just Around The Corner
IRS Adds Question On Crypto Usage To New Income Tax Form Draft

10/13 U.S. SEC halts Telegram’s $1.7 billion digital token offering – Reuters
10/12 Facebook’s libra association crumbling as Visa, Mastercard, Stripe, exit – Verge

10/12 Is bitcoin a safe haven like gold? These four charts say not yet – Coindesk
Reply With Quote