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  #1591  
Old 08-13-2016, 03:45 AM
Danny B Danny B is online now
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P. C. Roberts and Jim Willie

"The Cold War was a Washington creation. It was the work of the Dulles brothers. Allen was the head of the CIA, and John Foster was the Secretary of State, positions that they held for a long time. The brothers had a vested interest in the Cold War. They used the Cold War to protect the interests of their law firm’s clients,"
"The Cold War was pointless except for the Dulles brothers’ interests and those of the military/security complex."
"We had the Cold War because it served the Dulles brothers and the power and profits of the military/security complex. There were no other reasons for the Cold War.
The new Cold War is even more pointless than the first."
"Hitlery declared the President of Russia to be the Ultimate Threat—“the new Hitler.”

Could it be any more clear? A vote for Hitlery is a vote for war. Despite this most obvious of all facts, the US media, united as one, are doing everything in their power to drive Trump into the ground and to elect Hitlery.

What does this tell us about the intelligence of the “Unipower,” “the world’s only superpower,” the” indispensable people,” the “exceptional nation”? It tells us that they are as dumb as s-h-i-t. Creatures of The Matrix created by their own propagandists, Americans see imaginary threats, not real ones.

What the Russians and Chinese see are a people too brainwashed and ignorant to be of any support for peace. They see war coming and are preparing for it."
Rethinking The Cold War -- Paul Craig Roberts - PaulCraigRoberts.org

"The Too Big to Fail policy has instead assured the wreckage and destruction of the USEconomy. Save the big banks, but ruin the capital base."
"The USTBond Black Hole is drawing capital from the US land mass and the global centers, just in time for the new currency launch with devaluation. The wealth loss will be magnificent for all the dopey clumsy mindless investors who believed the bond market offered safe haven. No security can be offered by a bond market with almost no legitimate buyers, an annual $1 trillion deficit (huge supply), and deep dependence upon the Interest Rate Swap derivative contract which produces artificial bond demand at zero cost."

"Nothing displays the failure of modern central bank monetary policy better than the falling Money Velocity chart. They speak of stimulus, when the only benefit is to big banks in redeeming worthless bonds. They puff up the bond market, even the stock market. They neglect the muni bond market. They send wrecking balls into the pension fund system and the insurance company sector, which cannot possibly cope with the nil interest rate yield. No stimulus is given to the USEconomy by sustaining dead insolvent criminal enterprises call the big US banks. The QE monetary policy is destroying capital, seen in the mass of corporate job cuts. "
Banker Bunker Mentality
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  #1592  
Old 08-14-2016, 05:13 PM
Danny B Danny B is online now
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Deutches Bank; grasping at holographic straws

"And since a legitimate fiscal stimulus is what is needed to re-ignite the economy"
Wiki; Fiscal stimulus refers to increasing government consumption or transfers or lowering taxes. Effectively this means increasing the rate of growth of public debt, except that particularly Keynesians often assume that the stimulus will cause sufficient economic growth to fill that gap partially or completely.
The public debt is now reckoned at $19 trillion, though it is actually closer to $ 60 trillion. Unfunded liabilities are at $ 212 trillion and expected to add to the debt burden of the State.
"As for the conclusion, or why a financial shock is long overdue, Konstam says that "ironically the shock that is needed would require a collapse in risk assets for policymakers to then really panic and attempt dramatic fiscal stimulus. "
This is critical - and inevitable - as only a shock can lead to an "unwind of the falling yield/rising equity market where all financial assets trade badly."

WHY does he go on about the equity markets? The bond markets are FAR bigger and more important.
"Now, Deutsche Bank has taken it to a whole new level, explaining why a financial crash has to happen to purge the system from the toxic aftereffects of 7 years of financial repression, and to kickstart a fiscal stimulus"

About that "financial repression" ; The financial markets demanded hundreds of $ trillions of bailouts. This "demanded money" flowed into the perceived safest market,,, U.S. Treasuries. U.S. Treasuries are the interest benchmark for all other interest rates. The financial markets demanded the bad medicine that caused financial repression.
The more money that flows into U.S. Treasuries, the lower the interest rate flows.
"The last round of economic data does little to suggest any change in this dynamic. As we highlighted last week the conundrum for the US is how an overly strong labor market without meaningful wage inflation"
These people must be smoking crystal meth laced with PCP and Crocodil. OVERLY STRONG LABOR market.
"Policymakers aren’t used to dealing with financial repression and that unfortunately is one of the defining characteristics of stagnation." No kidding. The "poison pill" of ZIRP hasn't been used before.

"Ironically the shock that is needed would require a collapse in risk assets for policymakers to then really panic and attempt dramatic fiscal stimulus. "
What a total bonehead. Japan tried enormous fiscal stimulus. At one point, they were pouring more cement that the rest of the world combined. While public works projects are much needed, that isn't a long-term solution.
A Stunning Admission From Deutsche Bank Why A Shock Is Needed To Collapse The Market, And Force A Real Panic | Zero Hedge

What a bunch of high-paid boneheads. We are sliding down towards a global price for oil; https://www.quandl.com/data/SCF/CME_...ry.png?dataset[collapse]=monthly&dataset[graph_title]=nymex+wti+crude+oil+Full+History&dataset[height]=250&dataset[visible_columns]=3&dataset[width]=500

Iron ore; https://www.focus-economics.com/data...ry/IronOre.gif
Wheat; Wheat | 1982-2016 | Data | Chart | Calendar | Forecast | News
Wages; https://anthonybsanders.files.wordpr...ng?w=585&h=342
Effective wages; http://pricedingold.com/charts/wages-1965.png
Private investment has gone way up but profits have gone way down,,, even touching zero. This is true for NON-FINANCIAL companies.
https://3.bp.blogspot.com/-xpHt5TRv6...divergence.jpg

OK, so all the investment and money has flowed into the finance sector. BUT, there is no demand for credit. The "financial repression" that they demanded (QE) has killed the host.
Globalization brings in the lowest common denominator to almost all markets. Currency wars speed up this process.
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  #1593  
Old 08-14-2016, 07:00 PM
Danny B Danny B is online now
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Inflationism

The Western CBs tried their conventional "tools" to save the credit markets after the labor markets crashed. They then moved into unconventional tools to save the financial markets.
The World Gold Council recently wrote, “Investors are starting to lose confidence in the effectiveness of unconventional monetary policies, following increasingly desperate bids by the world’s central banks to reflate the global economy. In this environment, we believe investors are using gold to hedge portfolio risk as they add more stocks and low quality bonds to their asset mix.”

There is a small cadre of people who are seeing rising wages but, wages are falling for most.
http://www.oftwominds.com/photos2016...ality3-16a.jpg
"Conventional economists look to labor market supply and demand for answers--and have come up empty. They can't explain why labor supply--people of working age that are actively in the labor force--keeps declining in a growing economy.

They are equally flummoxed by stagnant demand for goods and services: in an expanding economy, rising demand should spur higher demand for workers that should eventually push wages higher.
These higher wages should attract non-participants to rejoin the labor force"
The GDP numbers have NOTHING to do with productivity. The F.I.R.E economy is juggling around mountains of fresh debt-money and THAT is counted as GDP.
Charles Hugh Smith Blog | Here's Why Wages Have Stagnated And Will Continue to Stagnate | Talkmarkets

“It [currency Inflation] discourages all prudence and thrift. It encourages squandering, gambling, reckless waste of all kinds. It often makes it more profitable to speculate than to produce. It tears apart the whole fabric of stable economic relationships. Its inexcusable injustices drive men toward desperate remedies. It plants the seeds of fascism and communism. It leads men to demand totalitarian controls. It ends invariably in bitter disillusion and collapse.” Henry Hazlitt,
"Dr. Richebacher argued that of all the various consequences of Credit inflation, the rise in consumer prices was one of the least pernicious. "
"But how about asset price inflation and Bubbles? Well, there is a powerful proclivity for letting asset prices run. An inflationary bias in asset markets certainly “makes it more profitable to speculate than to produce.” And the larger the speculative Bubble the more powerful the constituencies that arise to demand government involvement, intervention and manipulation to sustain Bubble Dynamics."
"Misguided policymakers will endorse destabilizing asset inflation as confirmation of sound policies "
" Accordingly, monetary stimulus had to be ratcheted up to counteract downward price pressures and insufficient aggregate demand."
"For one, the tantalizing New Age Credit apparatus was inherently unstable. This ensured progressive government meddling. Government guarantees and backstops further incentivized speculation, in the process exacerbating speculative leveraging and Bubble Dynamics. Faltering Bubble mayhem then fostered QE, where central bankers intervened directly in the marketplace with massive buy programs. Central bankers then became hostage to unwieldy global Bubbles dependent upon ongoing massive monetary stimulus."
Credit Bubble Bulletin: Weekly Commentary: Inflation

When globalism killed off high western wages, our aggregate purchasing power crashed. The banks (temporarily) avoided a commensurate crash by pumping out giga-tons of fresh debt-money. ALL markets are extremely distorted because this DEBT money had no relationship to underlying productivity. The corporatocracy leveraged third-world wages to drive down our wages and help their bottom line. This worked for a while but the effect has worn off as the consumer goes broke. The TTP and TTIP are efforts to regain the profits they lost when we lost our purchasing power.
This too is a short-sighted attempt to further drive down wages. ALL economic activity will be driven down.

As trade shrinks, ALL trade shrinks; Profit At World's Largest Shipping Company Plunges On Collapsing Global Trade, Sinking Crude Prices | Zero Hedge
Worse than last time; Shipping industry faces worse storm than after financial crisis, warns Maersk boss
World trade is crashing and currency wars make it worse.
Economic activity goes down,,, the debt supply goes up.
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  #1594  
Old 08-14-2016, 07:42 PM
Danny B Danny B is online now
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A few economic vids

Shadowstats https://www.youtube.com/watch?v=4xAjR7-QHZg
International competition https://www.youtube.com/watch?v=uTGc-SxZ2JM
International competition https://www.youtube.com/watch?v=Ls_uS6z24io
Molyneux and Griffin https://www.youtube.com/watch?v=SLxVnvCQiUQ
Sr. Price https://www.youtube.com/watch?v=QRFRBKwleL0

Rickards and the currency war,,, war games. https://www.youtube.com/watch?v=kdPkaCTdxBU
Jim Grant https://www.youtube.com/watch?v=CLQsT9BPHpg
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  #1596  
Old 08-15-2016, 04:11 AM
Danny B Danny B is online now
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The FED was created as an answer to wildcat banking. The original FED charter was a pretty good design. It was the backstop of last resort. It could lend to banks for good collateral only. During great depression one, thousands of banks went bust. The FED wasn't able to save them. Bernanke claimed that the FED caused great depression one because it didn't provide enough liquidity. The feces-for-brains idiots got a second chance in 2008 and pumped in $trillions of liquidity. You can see how that is working out.
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  #1597  
Old 08-16-2016, 02:45 AM
Danny B Danny B is online now
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Pensions and other bumps in the road

Armstrong discovered cycles in the economy of several different periods. Many of his cycles are tied to π. There is another cycle of 8.6 years. Armstrong discovered it by looking at crashes. https://www.armstrongeconomics.com/a...was-the-first/
In a traditional "bank run" people pull out their deposits. In a modern
"bank run", people pull out their deposits and the central bank comes in and refills the bank. 8/15 When will the Bank of Japan own 100% of Japanese ETFs? – Mish It is a battle between levitation and gravity.
• The Bank of Japan’s Unstoppable Rise to Shareholder No. 1 (BBG)

• Younger Generation In UK Face Overwhelming Pensions Bill (G.)
• British Millennials Are ‘Collateral Damage’ as Pension Gap Grows (BBG)
"This can only go horribly wrong, there is no other possible outcome, but it’s a topic politicians either don’t understand or don’t want to touch. Which is why I wrote Basic Income in The Time of Crisis a month ago. There is not much time left."
"Caroline Abrahams, the charity director at Age UK, pointed out that 1.6 million older people live in poverty in the UK. “A strong pensions system that provides a decent quality of life in retirement"
“Postal-service operator Royal Mail said last week it may not be able to keep its program running beyond 2018. That’s because its annual contributions could more than double to over £900 million.”

"The last few months have seen trillions of dollars of fresh credit puked into existence in China to enable goal-seeked growth numbers to creep lower (as opposed to utterly collapse). The problem is… the Chinese are hoarding that cash at the fastest pace since Lehman as liquidity concerns flood through the nation." "In fact, the hoarding of cash in China corresponded with the top in 1999/2000, and the top in 2007…"
https://www.theautomaticearth.com/20...ugust-15-2016/

8/15 Ever-lower interest rates have failed. It’s time to raise them – Guardian Slow suicide by ZIRP or fast suicide by 3% rates.
8/15 Portugal gaining on Italy in the European banking “doom loop” – Zero Hedge
"Department of Defense Inspector General’s report was published last week. It revealed that the Pentagon could not provide documentation pertaining to $6.5 trillion in transactions.
On top of that, the report showed that the Pentagon “did not document or support why the Defense Departmental Reporting System . . . removed at least 16,513 of 1.3 million records during Q3 FY 2015."
16,513 removed. Space war is EXPENSIVE. "the Pentagon has been ignoring a federal law passed 20 years ago, which mandates regular audits for all government agencies."

Wyoming says that the State owns the wind and you have to pay them to use it. http://soswy.state.wy.us/Rules/RULES/9052.pdf
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  #1598  
Old 08-16-2016, 03:02 PM
Danny B Danny B is online now
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The great power shifts

"A recent study from Simón Bolívar University found that 9 out of 10 Venezuelans can no longer afford to buy enough food" Venezuela Is Descending Into Chaos. Now This Issue Is on America?s Doorstep. | Mother Jones
Jim Willie, "Over the last decade, global trade denominated in U.S. Dollars has been cut almost in half, down from about 75% of all trade settling in U.S. Dollars ten years ago, to a approximately 35% of all trade settled in U.S. Dollars today. "
Wet-ink money from the FED is making up the difference.
ALL government does redistribution of wealth to it's cronies, be they rich or poor. A gold standard prevents this. GOV is always trying to get gold out of the system. This always eventually collapses because the transactional currency can never be the same as the store of value.

This fact is always overlooked by writers who disparage the gold standard. Adopt a gold-backed dollar? This is what happened the last time we tried - MarketWatch
This isn't the only fatal weakness to our system;
"The reason that so many economists didn’t see housing rolling over and don’t think it will affect the rest of the system in any event is that most Keynesian models don’t pay attention to society’s balance sheet. A given amount of new debt is supposed to increase “aggregate demand” by the same amount whether the government and consumers are debt-free or buried under a mountain of obligations taken on in years past."
Why Housing Has Stalled - And Why Everything Else Will Follow - DollarCollapse.com

The PTB would very much like to remain in power. Their weakness is that they want to maintain the status quo at the same time that the world is changing radically. Mysterious Group Hacks The NSA | Zero Hedge

The writing is on the wall but, they aren't paying attention; https://www.armstrongeconomics.com/i...bias-or-input/
https://www.youtube.com/watch?v=DF7ssBYyV70
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  #1599  
Old 08-17-2016, 12:54 AM
Danny B Danny B is online now
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bumps in the road and rise of China

GOV printed mega-tons of new money to avoid the problems of Great Depression One. U.S. GOV created FACTA to make sure that this money was only invested in America. Investors leave the markets and go to cash. GOV institutes zero interest and 6--18% price inflation to keep investors out of cash and IN the markets. "They" tell investors that There is [B]n[/o a]lternative. (TINA) This gigantic blob of debt-money is circling the world like a Roc looking for a safe haven.
8/16 Why pension funds are driving biggest bond bubble in history – Zero Hedge
Everywhere it touches down, it brings price inflation. 8/16 Is California farmland overvalued by $70 billion – Zero Hedge
The lower loop of the economy depends on fundamentals like profit-and-loss. It is the upper loop that drives up prices regardless of returns or profits.

• Younger Generation In UK Face Overwhelming Pensions Bill (G.)
• British Millennials Are ‘Collateral Damage’ as Pension Gap Grows (BBG)


It is true that darn near everybody in Great Britain is screwed by the underfunded pension system. SO, who did what to get where they are?
Thatcher took the Scottish oil and; "Thatcher chose to fritter this revenue away on funding her ideological tax cuts for the wealthiest"
"Norway used its significant oil boom to create a sovereign wealth fund and prepare public finances for the future retirement of the baby boomer generation."
"A report by PriceWaterhouseCoopers states that had the UK government saved its tax receipts from oil revenues, it would have a larger sovereign wealth fund today than Kuwait, Russia and Qatar combined. "
Great Britain would be far less "great" without Scottish oil.
“There is No Alternative” – Debunking the Greatest Myth of Thatcherism | Scriptonite Daily

George Soros made a $billion dollars by shorting the British Pound. The queen called him in and had a talk with him. She told him that if he ever did anything like that again, she would have MI5 hunt him down like a dog.
His latest target is the U.S. stock market. 8/16 Billionaire Soros doubles bet against US stocks – RT I think that he is trying to create a self-fulfilling prophecy.

Rothschild said "let me print a nation's currency and I care not who makes the laws. That was a long time ago when currency had a positive value. Now that currency is a debt note, it is a completely different story. The CBs are being forced to print currency. Rothschild is now getting out of the dollar and into gold. Rothschild Ups Gold Bets | Kitco News

Here is a graph of small cap valuation. The Roc of debt has landed here too. http://static.safehaven.com/authors/hoye/42292_a.png

Debt to earnings ratio is the highest this century, http://static.safehaven.com/authors/hoye/42292_d.png
"Maybe it is an elitist thing to live in a land of unreal theories." Comic Relief | Bob Hoye | Safehaven.com

China is perfectly happy with the global mean wage. "As Trump might put it: “Something’s going on.” That something is a historic shift in economic and geopolitical power that is bringing to an end a 500-year period in which western nations have dominated global affairs."
https://www.theguardian.com/commenti...ssures-in-west
"By the end of 2008, the US had lost one third of its manufacturing jobs from peak and most of those had gone in the previous decade. Italy, whose industrial heartlands have suffered particularly badly from competition with Asia, has lost 25% of its industrial capacity since 2008. "

The China shock caused enormous deflationary pressures in the West and GOV tried to save everythingwith money printing. It didn't work in Japan and it isn't working here. http://dollarcollapse.com/stock-pric...kets-big-fail/

8/16 Banks look for cheap way to store cash piles as rates go negative – CNBC
Gold and banks, http://seekingalpha.com/article/3999...001fb&uprof=52
Gold and deflation; http://kingworldnews.com/expect-to-s...nic-into-gold/
D. R. Schoon has a lot of good articles and vids; http://www.drschoon.com/
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Last edited by Danny B; 08-17-2016 at 02:28 PM. Reason: need a link
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  #1600  
Old 08-17-2016, 03:25 PM
Danny B Danny B is online now
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Gold proxies

The U.S. dollar was gold-backed at one time. Running on momentum, people still used the dollar as a reserve currency and store of value even after it lost it's gold backing. The CBs made sure that no currency was gold-backed. NOT because it would be used as a dominant money. NO, they block gold backed currencies to keep all wealth in circulation and available to the State to be stolen by depreciation. It is the store of value function of gold that so confounds the banks and statists. The "first spenders" can't dilute your gold.
It was in the interests of these 2 parties that paper-gold was "invented", first in the futures markets. This led to the creation on mountains of paper gold proxies. This mountain of proxies is reckoned as 90--98% of the gold market.

Armstrong;
"The United States wants to eliminate cash so they can collect every penny they imagine is missing from their revenue expectations. If we are EVER going to really revise the world monetary system, we have to stop the nonsense of picking pieces from history to support predetermined ideas and just follow the facts to understand how this function.

The Marxist approach was to try to dictate how the economy should function in his mind and to force that to take place by political decree. That concept was adopted by Keynes and is still with us today manifesting in every corner based upon predetermined biases. The dollar is by no means going to fade away. China will not replace the dollar as a reserve currency until debt is no longer used as reserves by nations. There is a separate and distinct difference between the currency being used in trade and the currency being used to store wealth. They do not have to be the same thing and are entirely two different animals."

"Until debt ceases to be money that simply pays interest, the dollar will not vanish as a reserve currency. There is no replacement as of yet. Even when China becomes the largest economy, that will not displace the “reserve” status of the dollar until there is a deep market to park cash. That is separate and distinct from trade being conducted in a variety of currencies. We have to revise the world monetary system. When we reach that point, then we can deal with creating an alternative for a “reserve” currency that is entirely distinct from trade currencies. Even the USA had two currencies during the 19th century – the domestic silver dollar and the international heavier trade dollar on par with international standards. Two tier monetary systems have commonly existed for a very long time."
https://www.armstrongeconomics.com/w...erve-currency/
This is where Armstrong completely falls down. ALL money was gold. ALL reserve currencies were gold (or silver) convertible. As long as the dollar is no longer convertible, it is just one more fiat currency. Power corrupts so, fiat currencies always get corrupted. Armstrong claims that the dollar can never be replaced as the reserve currency because there is NO OTHER candidate that is strong/viable enough to replace it. Gold proxies have been around for about 40 years. They have diluted the value of gold for an equally long time.

The May outflow from the COMEX was matched ounce-for-ounce by imports from Switzerland. Armstrong writes about a "slingshot move or a phase change" in gold, about January. Did it not occur to him that this move could be a return to gold as a store-of-value?


Ages ago, by general agreement, all portable wealth was stored as precious metals. The goldsmiths had the best vaults so, they stored much of the gold and issued receipts. These were the first proxies for gold. These receipts were traded as "money". Naturally,. the goldsmiths were often successfully tempted to issue more receipts than they had in physical gold.
The State treasury took over much of this function as part of it's responsibility of managing State funds. Gold-convertible notes acted as proxies for gold.

All GOV does redistribution and there was never enough wealth to make everybody happy, nor to buy votes. GOV always inflated the currency supply over and above what the gold supply was. GOV bonds were proxies for gold when currency was gold-backed. GOV always inflates the currency supply so, ALL governments eventually default.
Rickards talks about the various subterfuges used to create multiple proxies for existing gold. The Gold Hoax

Armstrong says that we need to reform the money system. I got news for you. It ISN'T going to be reformed peacefully when everybody is in a currency war. It isn't going to be reformed peacefully when unemployment is crashing so many States. Cyber war is taking down EVERYBODY. The U.S. dollar will still be around but, it will be domestic use only.
"75% of all trade settling in U.S. Dollars ten years ago, to a approximately 35% of all trade settled in U.S. Dollars today. "

Everybody is dumping the U.S. dollar because it is now pure fiat. Nobody needs the dollar to buy oil now so, nobody is buying U.S. Treasury bonds. The Western CBs are all buying each others debt to keep the party going. They call it "providing liquidity" in times of distress.

"China will not replace the dollar as a reserve currency until debt is no longer used as reserves by nations". Jim Rickards claims that the SDR, created willy nilly by the IMF ( a Western institution) will be the new reserve currency. The Chinese are VERY nationalistic. The British gave them a VERY good lesson in why they should NEVER trust the West. If anybody believes that the East is going to store their wealth in a fiat instrument controlled by the West, they are seriously deluded. They have no interest in a Western created proxy for real wealth.

Edit;I have more numbers for gold dilution.
"By August 2011, 36 of the 56 Full LBMA trading members submitted returns for the new survey, and the results were rather shocking. Quietly, the size of the “paper” gold market had grown to monstrous proportions – successfully creating a tsunami of paper gold flow. In fact, according to the Q1 2011 LBMA Liquidity survey, over 173,713,000 ounces or 5,400 tons of “paper gold” per day (more than 2 year annual physical production) turns over with only 2/3 of LBMA members reporting!"
". As of October 30, 2012 COMEX gold Open Interest equaled 454,742 contracts (45,474,200 ounces of gold). COMEX registered inventory stood at 2,735,041 ounces"
“When I talked to the head of deliveries at COMEX NYMEX, I was like, ‘What if 4% of the people want deliveries?’ He said, ‘Oh Kyle, that never happens. We rarely ever get a 1% delivery.’ "
https://intelligent-partnership.com/...-gold-volumes/
"Continued growth in Q2 2016 (+15%) brought total H1 gold demand to 2,335t – the second highest first half on record. Huge ETF inflows during the first six months (+579t) were counterbalanced by anaemic jewellery demand in an environment of sharply rising prices. In fact, the gold price posted the strongest H1 performance (+25%) for more than 35 years."
Gold Demand Trends | World Gold Council
Austrian Mint sells 41 tonnes of gold coins and gold bars in 2015 | Zero Hedge

BUT, 8/17 Gold’s popularity dims as ETFs shrink by most this year – Bloomberg. Yep, paper gold is losing favor.
How does Bloomberg explain; Huge ETF inflows during the first six months (+579t)
The 2011 leverage was about 16--1. The current leverage is about 300--1.
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Last edited by Danny B; 08-18-2016 at 01:52 AM. Reason: more numbers
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  #1601  
Old 08-17-2016, 07:35 PM
Danny B Danny B is online now
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The crash of the (not) noble experiment

The IMF is trying to get China on-board with the SDR. They will allow the PBOC to issue SDR bonds. De-Dollarization is Now Assured – SDR Bonds Have Been Approved – The Daily Coin
You can bet that China will bolt from western institutions when it best suits them. They are already dumping lots of U.S. bonds. Global central banks dump U.S. debt at record pace - Aug. 16, 2016
Everybody is dumping US bonds to prop up their domestic economy. They are presented for redemption instead of being rolled over.

"A weaker currency also reduces the purchasing power of citizens. The euro has lost over 30 percent of its value against the U.S. dollar since 2011, effectively slashing the income and wealth of euro-zone consumers. Australians, heavily dependent on imports, have lost a similar amount of purchasing power. Combined with stagnating incomes, this only cuts further into global demand."
https://www.bloomberg.com/view/artic...l-currency-war

So, the upper loop of the economy fights a currency war to gain market share. The fallout from the currency war diminishes the purchasing power of the lower loop. This results in reduced economic activity for everybody.

The credit bubble needs ever-more juice to service the debt load; Bank lending explodes and inflation will be next, Macleod tells KWN | Gold Anti-Trust Action Committee
GEAB has a subtle observation about the upcoming elections; US elections: the detonator of the ultimate phase of the economic and financial American crisis | GEAB

In the past, when money represented wealth instead of debt, people and groups saved up to do capital projects. In our new world, great mountains of debt are created to finance capital projects. This worked for a while only when bonds were repaid. Bernanke and Japan seem to be enamoured with the idea of "perpetual bonds" that are never paid back. Everybody knows that State debt can't be paid back. It is now apparent that it can't be inflated away either.
This has been one huge, gargantuan experiment to see of debt could replace wealth. True wealth can't suffer a wholesale evaporation. The upper loop of the financial sector managed to suck up all wealth. The lower loop where all the production and consumption happens can not redeem/vitiate the mountains of debt created by the upper loop.
The experiment does not seem to be working out.
http://www.zerohedge.com/news/2016-0...-history-world
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Old 08-18-2016, 02:52 PM
Danny B Danny B is online now
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SDR holograph of an illusion Birth rate = bond market

In Diary of an Economic Hit Man, Perkins clearly explained how the IMF$ crowd raped every foreign economy that it could. The East created the Asian infrastructure bank as an alternative to the IMF. They also created the Asian development bank. The U.S. dollar is rapidly fading and the IMF is trying to force-feed their SDR into the system. Bonehead Rickards suggests that the Asian Infrastructure Bank could use the SDR. The Day The Dollar Died, Part II - The Daily Reckoning

"They" want to use the SDR to recapitalize the UPPER loop of the economy after the dollar dies. No mention of the fallout from the total detonation of the entire credit system. No mention of wages or the entire lower loop. No mention of the global mean wage and/or automation. Bunch of hopeless idiots.
The SDR is issued by the West and backed by nothing. "From my perspective the SDR is an illusion of an illusion." One World Currency and the SDR Bond – The Daily Coin
Rickards was called on by the 16? intelligence agencies to do a war-game
scenario with DoD computers. One assumes that the 16 includes the master criminals, the CIA. Rickards assures us that collapse is near. Ichan seems to think the same thing. Carl Icahn Turns Apocalyptic: "I Am More Hedged Than Ever, A Day Of Reckoning Is Coming" | Zero Hedge

The safety net
"It is one of the most classic examples of linear thinking in a dynamic world you could ever wish to find. Pensions, welfare payments, social security, cash for clunkers, and the myriad other absurd programs which comrade clipboard decided were in our best interests… These are all the natural consequence of a power left unchecked and a populace to ignorant or to self absorbed to understand that there is no such thing as a free lunch."
"It all started with an obvious problem of financing a gap in cashflows. No problem, the coiffed haired suits said. We’ll simply forward sell cashflows (i.e taxes) to pay for it.

Forward selling cashflows is of course simply a bond. Cashflows based on taxes received and issued as a note are of course government bonds. Extrapolating those cashflows was really a function of extrapolating birth rates. Convert births into tax paying citizens and you can manage your financing. Perfect, until the math no longer holds water. Welcome to the future present." ah yes,,, birth rates.
https://capitalistexploits.at/2016/0...graphic-shock/

OK, so we financed the safety net by figuring the birth rate and the bond market. The birth rate is not cooperating. We lit a fire under the credit markets to bring consumption forward and keep the economy steaming forward. Interest rates have crashed because they are locked in to consumption. Pension funds need 7% growth to survive. They aren't surviving so, "they" claim that we are going to have to raise taxes WAY up.
The $6 trillion public pension hole that we’re all going to have to pay for - MarketWatch

BUT, every additional dollar of taxes reduces the producing economy by three dollars.

Italian banks have $406 billion of bad debt that they admit to. http://www.bloomberg.com/news/articl...-equity-market
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Old 08-18-2016, 03:10 PM
Danny B Danny B is online now
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Socialism vs hard work

Man has a natural inclination for survival and providing for the future. He believes in either capitalism or theft. Theft always grows in popularity over time. Hard work just isn't as attractive as theft to many people. Wal Mart reports that it loses $ 1 billion a year. That would by losses of $ 8.29 million a day.
Socialism is the antithesis of capitalism and hard work. The two just don't mix.
Why Capitalism Works And Socialism Doesn't: Arbitrage — Manhattan Contrarian
While China is trying to move from communism to capitalism, America is sliding down into socialism. Too many people just don't want to work. Information Arbitrage - From Capitalism to Socialism to ???: Crossing the...
OK, so the PTB have managed to pump up the stock market. BUT, can they keep it levitated? History says NO.
3 Standard Deviations Above The Mean! 99.73% Certainty the Stock Market Is Ready To Collapse | Opinion - Liberal
The Japanese GOV has bought everything in sight to keep the collapse at bay. Can this "strategy" work in the long term? Doesn't look like it can;
8/18 Japan July exports drop 14 pct on-year; imports tumble 24.7 pct – CNBC
8/18 What next for Japan if Abenomics fails? – Live Mint
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Old 08-19-2016, 03:39 PM
Danny B Danny B is online now
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Sovereign debt crisis

A search on sovereign debt collapse returns;
Sovereign Debt Crisis | Armstrong Economics
Inevitable, Global Sovereign Debt Collapse | Miles Franklin
Sovereign Debt Crisis - The Economic Collapse
What is a Sovereign Debt Crisis? Why is it so Scary?
Sovereign Debt Crises - Federal Reserve
FRB: Federal Reserve Bulletin 2014: Volume 100
European sovereign debt crisis could cause Eurozone implosion

Wages crashed....producing economy crashed....GOV printed bonds to make up the difference. Deflation is working it's way up the financial chain. There was a common belief that GOV could never go broke because it has a printing press. The huge deflation pressures have come up against the final "resource",,,,, GOV bonds. And the result is;
",,,, we also note that more than half
of world’s sovereign bonds in a key S&P Global Index—the
S&P Global Developed Sovereign Bond Index—carry negative
interest rates. "
https://media.spglobal.com/documents...ugust_2016.pdf

"China has been net exporter of DEFLATION for many many years" Bond Alert And Single Most Important Chart This Year - Mountain Vision
"China and Japan leads all macro impulses – China PPI and FX devaluation dictates world growth and inflation and Japan’s fiscal and monetary experiments leads ECB and FED into the dark age of ignorance."
As we deflate to a global-mean-wage, everything else eventually deflates. They print like mad but, it goes into everything except wages.

The sovereign bond market crashed years ago. The central bankers are all buying each others debt so, it appears that bonds are being sold. Levitation fighting gravity. Armstrong, et al claim that gravity will eventually win. So, what is the next step?
Rickards and "company" used DoD computers to project the outcome. Reportedly, the crash is assured. History says the same thing. What about after the crash? Will the PTB retain power and control?
Here is a very interesting document about retaining control of belligerent populations in history.
How The Globalists Will Attempt To Control Populations Post-Collapse

The document makes assumptions about the cities being a stable base to attack rural belligerents. This is pure fantasy. Our balance-of-trade deficit is $ 1.5 billion PER DAY. The credit markets will collapse along with everything else. Subtract $ 45 billion a month from goods flowing into America and see what the cities look like. Subtract oil and see what the economy and cities look like.
When GOV goes broke, can it force Cargil, Con-Agra and Archer-Daniels-Midland, et al to produce food at low prices? What happens in the cities when the safety net evaporates?
The rural populations will not be the major headache. 50% of municipalities are technically bankrupt. When the bond market dies, how will they pay their police?
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Old 08-20-2016, 02:43 PM
Danny B Danny B is online now
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There is a good reason the negative interest rates are never used

The FED has free money and is buying up every stock that threatens to drop in price. This has burned everybody who wanted to short stocks. When you have free money, you don't worry about price. Prices are set at the margin,,, whoever the highest bidder is.
" the Bank of Japan now owns over 60% of its nation's ETF market). Putting aside for a moment what an abomination this circumstance is to free and fair markets, having prices set by a central bank is a huge threat to price stability. Why? Because no one else can compete with an entity able to print an infinite amount of thin-air money at will. The gap between what a central bank is willing/able to pay vs the next marginal buyer is tremendous; so if the central bank ever pauses its buying, prices can drop precipitously."
The Marginal Buyer Holds The Pin That Pops Every Asset Bubble | Peak Prosperity

"The gap between what a central bank is willing/able to pay vs the next marginal buyer is tremendous" Levitation is quite expensive.

The Economist magazine is the mouthpiece of many of the self-proclaimed, "Elites". They have come to the conclusion that the Eurozone will fail. On course to fail | The Economist
There is a huge difference between the productivity of Germany and the productivity of the Southern Mediterranean States. They propose a wealth-tax on Germany to make up the difference. Something like the Treaty of Versailles but, without the war.

"According to Rickards, the next financial and economic collapse will be just another BIG BUMP in the road. Most precious metals analysts, Jim Rickards included, suggest the importance of owning gold to protect wealth during this next financial and economic calamity. Unfortunately, the most important factor they leave out is the “PERMANENT COLLAPSE DUE TO FALLING ENERGY PRODUCTION.”
https://srsroccoreport.com/gold-will...rds-forecasts/

Energy is the master resource. Peak cheap oil is a fact of life in the 49 states. When our $ 45 billion a month trade deficit becomes unsupportable due to the credit collapse, we will import a lot less oil. It remains to be seen where the price of oil will settle in after international credit has collapsed.

China exported massive price deflation in labor and manufactured goods,,, also, in some commodities. This has led to a huge deflation in interest rates. The Financial Times is another "elite" mouthpiece. This is their observation on negative interest rates.
"If negative interest rates spread to the wider economy, S&P said it can cause a shift towards a “cash-only economy”,
"Using Japan as an example, it said negative rates have not behaved as intended,"
"Mr Kingston said: “Negative interest rates were once considered by many economists as a radical strategy or even a mathematical impossibility, but some of the world’s most significant economies are now turning to negative interest rates to arouse moribund economies.

“However, moving to a negative rate environment, in every circumstance that we’ve looked at, is a clear sign of desperation "
Negative rate moves ‘clear sign of desperation’ - FTAdviser.com
"list of potential economic damage from these policies substantial.”

Peak cheap oil is behind us.
Peak credit is behind us.
Peak wages is behind us
Peak GDP is behind us.
Peak employment is behind us.
We are the high-cost market trying to maintain our former standard of living by borrowing to buy $45 billion a month of oil and trinkets. We are 4% of the world's population. Our entire system depends on levitation from the FED.
What could go wrong?
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Old 08-22-2016, 01:35 AM
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Why do economists call inflation deflation?

Because they are looking at the other side of the coin. One side is inflation and the other side is deflation. When it costs 10 percent more for the same item at the store, the customer says we are having inflation. The store says we are having deflation because the dollar buys 10 percent LESS that what it did earlier. So, does everyone understand now? Of course not. Hardly anyone understands anything at all. To 95% of the people it is hardly a topic worth talking about. However, when people, businesses and governments REDUCE the amount of borrowing they are doing, the multiplier effect of partial reserve banking goes into reverse. The LENDERS that profited from the LOANS the banks were writing no longer profit. They actually LOSE money instead. We had better watch out and be careful. Things are not looking good. The numbers that tell what is happening are available to anyone that wants a look see.
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Old 08-22-2016, 03:29 PM
Danny B Danny B is online now
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The emerging loss of control of interest rates

Today is the tomorrow that we didn't worry about yesterday. We moved consumption forward by juicing the credit markets. WHAT NEXT?
"currently project a likely S&P 500 nominal annual total return averaging just 0.9% over the coming 12-year period, with negative total returns at shorter horizons."
" On a cyclical horizon, we continue to expect the present market cycle to be completed by a 40-55% decline in the S&P 500 Index; an outcome that would be historically run-of-the-mill from current valuations."
"until we observe a more significant deterioration in the equity market (say, below 2000 on the S&P 500) coupled with widening credit spreads and a slowing in employment growth below about 1.4% annually (it’s currently about 1.7%),"
We do NOT have employment growth but, Hussman follows the official line to avoid problems.
"At current valuations, virtually everything is priced for a decade of zero. The unwinding of these speculative extremes is likely to be chaotic, and will likely occur over a shorter horizon than investors imagine. That chaos, driven not by central bank tightening but by an emerging default cycle,"
"I can’t emphasize strongly enough that there is no economic evidence that activist monetary intervention has materially improved economic performance in recent years;" Yep, it's just a sign of desperation.

"Even allowing for a negative “shadow” Federal Funds rate, as Wu and Xia have done, results in the conclusion that extraordinary monetary policy boosted U.S. industrial production by less than 1%, and lowered the unemployment rate by just over one-tenth of 1% beyond what would have been expected from conventional monetary policy " It's called a desperate move because it really never works.
"The outcome of years of yield-seeking speculation induced by central banks is that investors across the globe have now locked in zero prospective total returns in virtually in every asset class for the coming decade."
Hussman Funds - Weekly Market Comment: The Decade of Zero and its Chaotic Unwinding - August 15, 2016

The focus of the article is that there just won't be any returns for many years. The body of the analysis is based on faulty numbers for employment AND inflation. Factoring in the price inflation and unemployment number from Shadowstats would give a more negative outcome. The return on an investment can't be quantified by the interest numbers. It must be balanced against the purchasing power of the earned interest and/or dividends. The CBs created monetary inflation to juice the markets BUT, that same monetary inflation creates price inflation that reduces the value of any returns.

THE END RESULT OF THE SUPPRESSION OF THE PRICE OF GOLD IS A REPRESSED UPWARD PRICE PRESSURE.
THE END RESULT OF THE SUPPRESSION OF INTEREST RATES IS A SUPPRESSED PRESSURE TO RAISE INTEREST RATES.

The FED keeps talking about a small rate hike,,, that never materializes because it would take the down the whole market. Here is another article talking about a BREAK in the repression of interest rates.

"Above is a 25-year chart of the U.S. T-Bond market. Of course the bull market extends at least 10 years further back than what is shown above."
"Blow-off Status! That’s how Michael characterizes the U.S. T-Bond Market. As stated in his August 10, 2016, missive, Michael noted that we are on the verge of an end to the greatest bull market in U.S. Treasury market history, which will be accompanied as well by the long-dated treasuries of Germany and Japan, the two other countries with sizeable debt markets that back two other reserve currencies—namely, the euro and the yen. As Michael stated, “The T-Bond’s long-term momentum trend is in a blow off condition (the terminal upside vertical phase of an aged bull)."

"Why is this such a big deal? It’s a big deal because when you have a blow off in any market, it is followed by a violent reaction in the opposite direction. In other words, when the long-dated T-Bond finally hits its peak—and Michael’s work suggests we are very, very close to that point in time"
"So here is what I’m thinking the most likely scenario is. If Oliver is as correct with the T-Bond market as he has been with every other market I have seen him opine on, we will likely see interest rates rise dramatically before year end"
" If the policymakers can keep a lid on them to get Hillary elected they will do so. But at some point, rates will rise and very early in that process I believe we will see a major economic implosion that could make the 2008-09 version look like a Sunday walk in the park.

With an inability of the Fed to curtail the raise in rates"
"As noted above, Michael believes all three major western world long-dated sovereign debt instruments will spin downward, sending rates skyrocketing more or less at the same time"
" If the JGB falls to 151 or lower by the end of this month or below 151.2 by the end of September, he is suggesting that will be a major long-term negative event. "
"Above right is an intermediate-term price and momentum chart for the U.S. T-Bond. A key to watch to determine if the verticality is concluding and thus preparing us for a major rise in interest rates whether the Fed likes it or not, is very close. The T-Bond price to watch now is a weekly close at 170.50 or lower. On Monday of last week the T-Bond fell to 170.65."
The Most Important Market in the World. Are We at a Tipping Point? | Kitco News
.
The focus of the article is ; the central banks losing control of the interest rates no matter how much money they print and inject.

Jim Rickards was asked by the American intelligence alphabet groups to do a war-gaming exercise about the U.S. economy. They undoubtedly look at the same data that Amstrong, Hussman, et al are looking at. They have reached the same conclusions as the private sector investors have.
BUT, the deep state and the military are determined to stay in control of everything.
https://www.theguardian.com/environm...ivil-breakdown

The Western Currencies are the backing and reference point for the SDR. China can talk about joining the SDR community because it doesn't cost them anything to talk. BUT, if Western currencies are in crash mode, the SDR will never achieve liftoff. Rickards and the NWO want a one-world currency to take up the reins after sovereign currencies crash. BUT, the spontaneous combustion of Western currencies will push gold to the forefront, NOT the SDR.
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Old 08-23-2016, 04:48 AM
Danny B Danny B is online now
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Dr. Judy Shelton and gold-backed bonds

Gresham's Law states that the strongest currency will go into hiding to be used as a store of value. This is the main reason that a State can not use it's transactional currency as a store of value at the same time. After Bretton Woods, the U.S. dollar was used as a transactional currency in America and a store of value in many other States. As the world got richer, post WW II, there was an ever-increasing demand for U.S. dollars to be used as a store of wealth worldwide. The world demanded that America run a current-account deficit so that it could provide enough dollars. This was described by Robert Triffin;
https://en.wikipedia.org/wiki/Triffin_dilemma

This created a worldwide glut of dollars. BUT, we over-printed the dollar because we could. There was a never-ending demand for dollars UNTIL we cut off the gold-backing. In summer of 1971, gold was leaving the U.S. Treasury at the rate of 100 tons a week. We cut off gold conversion. The U.S. dollar coasted on, valuable because of momentum. After the cutoff, the dollar became just one more debt instrument. This momentum is running down.

One of the factors that was HEAVILY affected by the cutoff was "seigniorage".
Investopedia; "Seigniorage is the difference between the value of money and the cost to produce it — in other words, it's the economic cost of producing a currency within a given economy or country. If the seigniorage is positive, then the government will make an economic profit; a negative seigniorage will result in an economic loss."
This is in addition to being the "first spender".

At one time, you could bring your gold to the U.S. mint and they would stamp it into coins for free. This allowed more money to be in circulation. There wasn't any seigniorage and GOV made no profit. By going to unbacked paper money, GOV gained all the seigniorage. International use of U.S dollars is in rapid decline and seigniorage isn't what it used to be. The various Central Banks are all buying each other's bonds. This circle jerk is called "providing liquidity". BUT, our trade deficit is $ 45 billion a month. BUT, since every debt instrument is just additional debt, we pay old debt with new debt,,, a LOT more. This "plan" has a definite end date. We just don't know when.

When every State went off gold backing for their currency, this ensured that NO State could go back on a gold-backed currency. Gresham's Law and human nature ensure this. Any talk of a transactional currency being backed with gold is just talk.
BUT, there is another option. Sovereign bonds are NOT a transactional currency and they can easily be gold-backed.
Trump has a very astute economic advisor and she has this to say; "Would the first step in that be issuing gold-convertible bonds?

Don’t attribute this idea to the Trump campaign, but it has been something that I have been proposing for years now. A gold-backed bond was first proposed in 1981 by Alan Greenspan."
"It's Not Some Barbarous Relic" - Trump Adviser Urges Return To Gold Standard | Zero Hedge

With the Bretton Woods agreement, America promised to NOT over-print the dollar. Once again the world is at the brink of war because of criminals with printing presses. Once again gold is the only agent that can bypass the monstrous greed of the bankers and politicians. BUT, we lose seigniorage. 51% of Americans receive a check from GOV. That will become unaffordable if all GOV wealth is represented by gold.
Both Jim Willie AND history indicate that America will get a new currency for domestic use. International debts will be settled, NOT rolled over. This will be done in gold.The FOREX will disappear. GOV will try the same old trick and over-print the domestic currency.

"The fact that Trump is a builder and a businessman makes me confident that he can bring his track record of finishing projects on time and under budget to the federal government. It’s the wasteful government spending that ends up being the problem."
Ah, but this wasteful spending is what keeps the welfare-warfare State moving along. You can see why everybody with money is against Trump and everybody who has to actually work is FOR Trump.
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Old 08-23-2016, 03:10 PM
Danny B Danny B is online now
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Defaults and front-running the bond market

The 2 articles from Hussman and Kitco claim that the FED will lose control of interest rates. This is expected to be brought about by an upturn in the default rate. The "junk bond" market is called "junk" because it is a market for risky investments.
8/23 Junk bond defaults to rise 5.6% in next year – CFO

In the '30s, Germany created it's own money independent of the money masters in London. Churchill said that this was the prime reason for WW II. This was the "German miracle" that brought so much prosperity. Russia is now in the process of doing the same thing.
Dollar Disaster Looms? China and Russian Currencies Break Away | Global Research - Centre for Research on Globalization

If a little bit of desperation doesn't do the job,,,, get even more desperate; 8/23 Japan is willing to cut interest rates even further into negatives – ETF Daily News
GOV is just buying up everything, Monetary policy has nationalized the Japan stock market – CNBC
Not to be outdone in the stupidity competition, the FED proposes injecting another $ 4 trillion into the economy. This is a sign of desperation squared. Fed Admits Another $4 Trillion In QE Will Be Needed To Offset An "Economic Shock" | Zero Hedge
They hope to drive interest rates way down further out on the curve. A very large part of the financial system depends on interest income. It has been WELL proven that QE doesn't help the producing economy or the bulk of consumers. SO, they propose to do more of it.
8/23 Big policies, bigger failures – Euro Pacific

David Stockman has written a book; "It also delves into the good and bad of the Trump campaign and platform and outlines a more consistent way forward based on free markets, fiscal rectitude, sound money, constitutional liberty, non-intervention abroad, minimalist government at home and decentralized political rule." Bubbles In Bond Land——A Central Bank Made Mania, Part 1 | David Stockman's Contra Corner

Stated very simply, the jews have always championed socialism and world domination. Israel destroyed their domestic bond market back in the 80s. Our bond market is close to destruction because of over-reach in both welfare and warfare. Israel has just over 4 million people and we send them about $ 10 million a day to survive. It's not the multitudes who are the problem. It is the power-mad leaders.
They claim otherwise; German President Booed, Attacked; Claims "The People Are The Problem, Not The Elites" | Zero Hedge

Stockman also writes about insanity in Japan; "Last year Japan lost another 272,000 of its population as it marched resolutely toward its destiny as the world’s first bankrupt old age colony. At the same time, the return on Japan’s 40-year bond during the first six months of 2016 has been an astonishing 48%."

The Central bankers have marched us to the edge of the cliff to save the banks. BUT, many of their actions are destroying the banks. The Central Bankers drank the koolaide many years ago and are hopeless.
"Nor is that the extent of the subzero lunacy. The Swiss yield curve is negative all the way out to 48 years, where recently the bond actually traded at -0.0082%."
"But here’s the thing. The geniuses at the ECB are not cornering the market; they are being cornered by the speculators who are recklessly front-running the central bank with their trigger finger on the sell button.

Everything in the European fixed income market—sovereign and corporate—– is now so wildly over-priced and disconnected from reality that the clueless fools in Frankfurt dare not stop. They dare not even evince a nuance of a doubt."
Wildly overpriced! What about defaults?
"Italy accounts for roughly one third of the Eurozone’s estimated €1 trillion worth of non-performing loans." The Impossible Italian Job | Wolf Street

"their trigger finger on the sell button." So, the bond buyers are front-running the CBs and will dump in an instant. The "algos" in the stock market will dump in a pico second. Any hint of a downturn will cause problems VERY fast. The 2010 "flash crash" happened in about 2.1 seconds.
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Old 08-24-2016, 01:21 AM
Danny B Danny B is online now
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Transmutation of gold

I try not to ramble but, I read in so many disciplines that it is difficult to stay on topic. This post starts out about transmutation in nature. First, the background
reading.
Transmutation in Plants

Extraordinary Biology
There is most likely a connection between LENR and spontaneous transmutation. I haven't had time to search. There are indications that the alchemists had some control of transmutation; The Platinum Cannon Shipwreck - Mango Metal Report

"Chemical transmutation, specifically involving lead into gold, was first heard within the occult science known as alchemy. Then, it was that same occultism that continue to suppress using the “national security” all encompassing excuse against free energy activist John Bedini, " I believe that I've heard of him.

"In order to weaken the clout of the Rothschild banking dynasty that is protecting the status quo, both Russia and China started buying vast quantities of gold available in the open market. "
"Since then, the BRICS established direct exchanges using sovereign asset-based currencies to sustain their own economies while requiring others, especially the West, to do the same in exchange for their oil and industrial products.

Now, the financing world is separated between the East’s asset denominated and the West fiat based economies"
"Since waging war is not a feasible option considering the possibility of a nuclear MAD, or mutually assured destruction, the only option left would then be the total destruction of the financial system itself.

But how exactly should the BRICS do it?
Barely a few weeks ago, a conference was held in Geneva, Switzerland, purposely to announce the discovery of a method to transmute any element into another element in the periodic table, and beyond."
"The essence of this discovery and the technology boils down to the development of an industrial method for the transformation of chemical elements into other elements and their isotopes."
https://geopolitics.co/2016/07/14/ru...stem-obsolete/

The claims are interesting. Who knows?
Researchers Discover Bacteria That Produces Pure Gold
http://www.abc.net.au/science/articl...14/1686120.htm
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Old 08-24-2016, 02:00 AM
Danny B Danny B is online now
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Bond fragility,,,, Duterte

Evidently, the CBs are afraid that interest rates are going to rise no matter what they do.
"Looking at this, it is obvious that something is very wrong. Either the data is inaccurate, or Central Banks know something we don’t. After all, they’re behaving as if they’re absolutely terrified at a time when the data is claiming their economies aren’t even in contraction!!!

Just what are they scared of?

We firmly believe the markets are preparing to enter another Crisis. With over 30% of global bonds posting negative yields, the financial system is a powder keg ready to blow.

The Bond Bubble is THE bubble. And with over $555 trillion in derivatives trading based on bond yields, this bubble is over 10 times the size of the one that nearly took down the system in 2008."
Central Banks Actions Indicate They Are Terrified?But Of What? | Gold Eagle
There seems to be a general feeling that an upturn in the default rate will push interest rates up and cause the derivative market to blow.

8/23 Emerging market debt up 24% in 2015 to $18 trillion – ValueWalk That will pop eventually.
8/23 Richmond Fed manufacturing survey collapses by most on record – Zero Hedge No money, honey. We can't buy anything.
8/23 Fed close to hitting job and inflation targets – Fortune No kidding. We must be close to 4% unemployment then.

The clearinghouse for derivatives is way underfunded for any kind of problem; https://geopolitics.co/2016/08/18/de...ancial-system/
"Aug. 16, 2016 (EIRNS)—The leading institutions of the bankrupt trans-Atlantic financial system issued a report today, warning that there are no mechanisms in place at this time which can prevent a blow-out the $600 trillion-plus global financial derivatives bubble"

The bankers make a LOT of money off drug production and distribution. Duterte is putting a dent in their profits; https://geopolitics.co/2016/08/07/du...ers-surrender/
Amazing article.

Here is his answer to the negative fallout from his actions; "My job as President is to protect law-abiding citizens…I was never tasked by any law to protect criminals," he declared."
Philippines President Threatens to Quit UN
The neocons are masters at creating un-anticipated consequences; https://geopolitics.co/2016/08/16/th...s-been-sealed/
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Old 08-24-2016, 07:52 PM
Danny B Danny B is online now
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Debt as far as the eye can see

Here is an article from a writer who insists that we must have a gold standard and that it will only work if we have a debt jubilee. This is a good example of somebody who hasn't thought things through. Since our currency is a debt note, cancellation of all debts would be the definition of pandemonium. All credit would come to an end also.
https://www.sprottmoney.com/blog/the...f-nielson.html

A couple of years ago, there was a well-publicised picture of the Queen touring the gold vault of the Bank of England. STACKS of gold all around. BUT;
Just for the record, the BOE vault stores approximately 5,134.37 tonnes of gold. [2] As you can see from the chart, the BOE only owns 310.3 tonnes of that gold.
FOFOA: Eight! She can touch it but, she can't move it.

8/24 Largest oil companies’ debts hit record high – Wall Street Journal Interest is eating up about 46% of earnings. Maybe they shouldn't have borrowed in the high-yield debt market.
8/24 Companies must sort pension black holes before paying dividends – Telegraph Never happen.
8/24 Why Portugal could be Europe’s next economic disaster – MarketWatch Damn, I was betting on Italy.
8/24 Japan needs 10 trillion yen stimulus in each of next two years – Reuters Japan needs a plan "B"

8/24 A Fed rate hike now would be a disaster for the economy – CNBC No kidding. What brain-trust came to that conclusion?
8/24 Negative interest rates smashed confidence, increased inequality – Financial Review It never occurred to the PTB that confidence would fall when they killed insurance and pension funds, savers,,, fixed income, etc. ?

8/24 Illinois warns of “crippling tax hikes” – Zero Hedge Socialism combined with crippling stupidity results in crippling costs.
8/24 Revealed: ECB secretly hands cash to select corporations – Wolf Street No kidding. Who could have predicted that?
8/24 Demographic HomeMageddon underway… will last until at least 2035 – Econimica At least they didn't use the words :tsunami or "gate"
8/24 Why France is the most likely to be the next to quit the EU – Euro News Damn, I was betting on Italy
8/24 CA Supreme Court decides “grossly ineffective” teachers keep jobs – Zero Hedge Your socialist tax dollars at work.
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Old 08-25-2016, 04:34 AM
Danny B Danny B is online now
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Sovereign debt slip-sliding away

U.S, Treasury bonds have been a bull market for at least 30 years. BUT; Aug 6. 2011, S&P Downgrades U.S. Debt for First Time - WSJ
Fitch Ratings has this to say; Fitch Sees $3.8 Trillion Of Losses For "Investment-Grade" Sovereign Bond Investors | Zero Hedge
Evidently, a lot of investors have been reading Zero Hedge; "It's Gone" - Why Foreign Demand For US Treasuries Has Disappeared | Zero Hedge
Another factor; since oil is sold in other than U.S. dollars, there is less need for foreign CBs to hold dollars. The U.S. dollar has slipped to 35% usage in world transactions. It doesn't matter if you have the reserve currency if nobody uses it. Previously, the central bankers were co-ordinating their actions so that nobody would have an advantage. As we slip down, they are starting to fight each other; The Era of Centralization Is Ending Right Before Our Eyes | Zero Hedge

Helicopter money would work for a while,,, maybe permanently. BUT, the State will never cooperate enough to make it happen. This writer assumes that helicopter money would be borrowed. It will never work if it is debt money. On The Impossibility Of Helicopter Money And Why The Casino Will Crash | Zero Hedge
ALL the CB plans have been BS that didn't work. Now, we are in quite a pickle; "The Global Economy Can No Longer Rely On Debt" - BIS Warns Central Bank Actions "Have Started To Backfire" | Zero Hedge

Armstrong warned about the collapse of sovereign debt. It looks like it is shaping up that way.
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Old 08-25-2016, 03:01 PM
Danny B Danny B is online now
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Destruction of the old paradigms but, nothing to replace them

NIRP is wiping out almost everything across the land BUT, 8/25 Swiss government sees windfall revenue from negative rates – Reuters
Then, there is the monetary "lab rat" Japan; 8/25 Kuroda money-go-round undercuts Japan negative-rate windfall – Bloomberg
SO, GOV survives a bit longer at the expense of everything else. Deutsches bank is NOT happy with this.
Deutsche Bank CEO Warns Of "Fatal Consequences" For Savers | Zero Hedge
Here is a graph comparing Deutsches bank to Lehman Bros. http://www.zerohedge.com/sites/defau...EUpanic2_0.jpg

It appears that the State is willing to give the banks a good rogering to save it's own skin (socialism).
The banks have seen the writing on the wall and are creating a "work-around" to the reaming by Wall street and the district of corruption.
https://www.sovereignman.com/trends/...lliance-20120/
This is a VERY important precedent. Obummer was ADAMANT that GOV had to have a back-door to all encryption. Otherwise, the State would be locked out of your personal financial transactions.
"President Barack Obama said Friday that smartphones -- like the iPhone the FBI is trying to force Apple Inc. to help it hack -- can’t be allowed to be "black boxes," inaccessible to the government."

These 4 huge banks are bypassing GOV control. "Adoption of this technology could cause a gigantic vacuum of deposits out of the US banking system."
"As far as the US economy is concerned, Greenspan isn’t optimistic. “We’re in trouble basically because productivity is dead in the water"
The lead bonehead talks the same as all the other boneheads. The base problem isn't productivity. It is consumption. "We're In Trouble": Alan Greenspan Delivers Stark Warning | Zero Hedge

Zero Hedge points out a troubling truism; A Gold Standard "Comes After War, Not Before" Macquarie Warns "The Private Sector Will Never Recover" | Zero Hedge
EXCELLENT article.
8/25 Stagnant economy won’t support high stock, bond, real estate prices – GATA Ah yes. The global mean wage doesn't allow for a lot of discretionary spending.

America had a wage boom after WW II. As the rest of the world rebuilt their manufacturing capacity, the boom tapered off. NAFTA was an attempt to lower "overhead" for the manufacturing industry to meet our diminished consumptive power. When containerized shipping was perfected, manufacturing could be sent to an even-lower-wage producer. The TTP is an attempt to push manufacturing costs even-lower to meet the buying power of our ever-shrinking wages. Obviously, this is a downward spiral of the financial system trying to hold on to a large part of an ever-shrinking pie.

The working-man's share of profit from increased productivity is constantly shrinking. Greenspan, et al lament the fall in productivity but, don't seem particularly concerned with the fall in remuneration for the worker. The financial industry is FAR TOO BIG for the amount of money available for investment and discretionary spending.

The corporatocracy that demands control over GOV so that it can increase productivity and margin just doesn't catch on to the fact that it can never win. It fosters a LOW global mean wage and then, goes in search of a large body of consumers for it's products.

The article by Viktor Shvets points out that there will never be an exit from automation. GOV, finance and industry need to become aware that all the old paradigms are useless in the approaching world.
Advanced automation is incompatible with debt money. Advanced automation is incompatible wit human nature. We work for the sense of self esteem. Even if the State were to pass out debt-free money, society would stagnate.
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Old 08-26-2016, 04:23 AM
Danny B Danny B is online now
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Helicopters and gold

8/25 Mobius says helicopter money will be Japan’s next big experiment – Bloomberg GOV will fire up helicopters but, the financial system has another idea.
"Tanaka Kikinzoku Group – Japan’s leading precious metals trader, refiner and manufacturer – acquired Swiss-based Metalor Group, one of the world’s largest refiners and supplier of precious metals-related products – Tanaka Buys Metalor. Furthermore, in March 2015, Japan’s Asahi Holdings – a collector and refiner of precious metals – closed its acquisition of Johnson Matthey’s gold and silver refining business. JM is one of the leading producers of refined precious metals products, including LBMA-quality 400 oz gold bars."

"Now that Asia and Russia are no longer funding the U.S. Treasury debt printing press, the Fed will be forced to begin hyperinflating the money supply to keep the Government funded. This fact is underscored by the Cleveland Fed President’s – Loretta Mester, a voting member of the FOMC – recent comment about “helicopter money.”
"Japan has been quietly pivoting economically toward China for a couple years.

This abrupt transition into the physical precious metals market signals Japan’s move to integrate its financial markets and economic system into the developing eastern bloc monetary system, which appears as if it might eventually be seeded in gold. "
Japan Is Signalling The End-Game For The U.S. | Investment Research Dynamics
Japan and China are rattling sabers over territorial disputes. Stupid Americans don't know Kabuki theatre when they see it.

Venezuela bet everything on oil. They have lost the bet. Is Doomsday Inevitable For Venezuela? | OilPrice.com
It will catch up to us eventually, "On Wednesday, US public debt was more than $19.4 trillion, or almost $60,000 per citizen and $164,432 per taxpayer."
https://www.rt.com/business/357028-u...roaches-600bn/

The economy will crash. The stage is being set to blame it on Trump; CITI: If Trump wins, it would be a disaster for the global economy - Business Insider
We just have too many major problems that have grown past the point of no return;
5 Factors That Could Turn America Into Another Collapsed Empire | Zero Hedge
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Old 08-26-2016, 03:16 PM
Danny B Danny B is online now
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Jackson Hole, fiscal policy.. the State & the family

The CBs are getting together in Jackson Hole to discuss what to do about the economy. They are crying ever-louder that monetary policy is losing effectiveness and MUST be replaced by fiscal policy.
Contraction in the form of "austerity" has been well proven to be a complete dead end. Therefore, "expansion" is the only option left. The central bankers talk about fiscal policy but, don't explicitly espouse expansion.

" The passing of the baton from monetary to fiscal policy
Implementation of monetary policy globally

Monetary policy has been the dominant policy tool post global financial crisis, as central banks from around the world have repeatedly fed their economies caffeine shots in an effort to jump-start activity. The central bank baristas have moved from serving basic coffee to extra-large, triple shots of espresso just to keep the pulse ticking."

"The decreasing potency of monetary policy has led to the passing of the baton to fiscal policy, with Japan announcing a stimulus package in July and the UK poised to provide fiscal stimulus in the wake of Brexit. Additionally, the U.S. looks set to increase fiscal spending regardless of who wins the White House."
Stop worrying about interest rates. Here's what we should be focusing on—commentary

"Before the conference, deputy US Federal Reserve governor, Stanley Fischer, said monetary policy was not equipped to boost productivity growth. But governments have ignored the pleas of central bankers, leaving Fed boss Janet Yellen, the Bank of England’s Mark Carney, Mario Draghi at the European Central Bank and Haruhiko Kuroda at the Bank of Japan to carry the burden."
https://www.theguardian.com/business...entral-bankers

The good news department; "The truth is that the Federal Reserve has been planning on increasing its rate, but hasn’t been able to do so due to sluggish economic conditions. Nonetheless, things are improving there too. We’re starting to see incredibly strong jobs growth, strong growth in home sales, and growth in consumer spending"
http://www.aomarkets.com/price-gold-declines-seen-peak/
8/26 No signs of life in Fed manufacturing reports: add Kansas City to list – Mish
8/24 Existing home sales decline in July – CNBC
8/26 US Q2 growth trimmed to 1.1% – CNBC That is financial growth, not production growth.

8/26 States face pension fund gap approaching $1 trillion – CNBC
8/25 Central bankers eye public spending to plug $1 trillion investment gap – Reuters That $1 trillion would have to come from additional GOV debt.

Wal Mart is going down and closing stores. Now, 8/26 “Things are worse” – Dollar Stores’ startling admission – Zero Hedge
HERESY; 8/26 Broker Charles Schwab now recommending gold to clients – SRSrocco Report

Eventually, it will become apparent that there are just too many people for the number of jobs. If you reduce the number of people, this will further reduce the number of needed jobs. Like the austerity imposed on Greece, there is a downward spiral. The central bankers want GOV to do fiscal stimulus. Japan ALREADY tried that to no avail. They had gargantuan infrastructure projects.
Martin Armstrong's central model is a model of CONFIDENCE. Previously, when people lost confidence they did not invest in the chimera of future prosperity. TODAY, when people lose confidence, they do not invest in children and a family. Japan proves this very clearly. Armstrong's models have no baseline for this factor.

The State creates a hostile environment for the child and then wonders why nobody wants to create children. The State is focused on growth and specific goals BUT, "In fact, being a parent is valuable precisely because it is so unlike goal-directed productive work." https://www.theguardian.com/books/20...-alison-gopnik
Both the State and the finance industry are toxic to the family. The more centralized the State, the more toxic it is. If the State wants to co-exist with the family, it will have to radically change.
Globalism Is A Barbaric Relic - Voluntary Tribalism Is The Future | Zero Hedge
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Old 08-27-2016, 04:30 AM
Danny B Danny B is online now
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Socialism and generous promises

Democracy and socialism always break the bank. They buy votes.
"Walstrum reports that while the typical U.S. state was spending an average of 5.7 percent more, year after year, than it had in revenue — a foolish habit, we think — Illinois governments together were spending 15.9 percent more than they had available. Imagine the compounded effect of overspending your income by 15.9 percent, year after year. "
How Illinois politicians consciously created these debt and pension crises - Chicago Tribune
"Walstrum doesn't go here, but in countless cases that lavish spending, especially in sweetheart pension deals for public employees' unions, bought incumbents the votes, campaign contributions and Election Day muscle that got them re-elected time and again. Not only did the public officials spend other people's money, they spent money that didn't exist. To cover their tracks, they borrowed vast sums and knowingly underfunded the very pensions they had sweetened."
Nothing new.

"At issue was whether the Illinois Teachers Retirement System board should lower expectations about how much the fund might earn in the stock market. For the past two years, TRS has assumed that its investments will earn an average rate of return of 7.5 percent." NOT with NIRP.
" state government would be on the hook to make up the difference, estimated to cost an extra $400 million to $500 million a year, an expense that would come due starting in July. The governor and lawmakers would have to find that extra money, " An extra $ 1/2 billion,,, no problem.
Rauner loses $400 million vote on teacher pension fund issue - Chicago Tribune

April; "This Is Going To Be A National Crisis" - One Of The Largest U.S. Pension Funds Set To Cut Retiree Benefits | Zero Hedge
Actuaries figure on a 7--8% return to pension funds.
Government-worker retirement plans had 0.36% return last year
Underperformance may lead to higher bills for states, cities

U.S. Public Pensions Post Worst Returns Since Market Crash - Bloomberg
8/26 States face pension fund gap approaching $1 trillion – CNBC No problem. We'll just squeeze and extra $ trillion out of the taxpayers.

"Unlike most government pension funds, CalPERS has become an outright lobbyist for higher member benefits, including a huge pension increase that is now consuming California state and local budgets."
"it has ventured into “socially responsible” investment strategies, making bad bets that have lost hundreds of millions of dollars."
"Accordingly, California set its initial retirement age for state workers (and, beginning in 1939, for local-government employees) at 65, at a time when the average 20-year-old entering the workforce could expect to live for another 46 years, until 66." Good math.
The Pension Fund That Ate California | City Journal

"The US Healthcare System Bubble Is Going To Burst; This Is No Different Than The Subprime Crisis" http://www.zerohedge.com/news/2016-0...ubprime-crisis
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Old 08-27-2016, 02:37 PM
Danny B Danny B is online now
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Gold in Denver

"Gold and silver have been used as money worldwide for thousands of years. All things used as money have had one thing in common, they were all tangible wealth. They were all things you could touch. They were all things you could weigh and measure. Credit, however, is intangible. You cannot touch credit. You cannot weigh and measure it because there is no substance to weigh and measure. It is all imagination."
https://topstocks.com.au/threads/gold-at-usd-806

“the audits performed on 95 % of US official gold reserves — the 7,628 tonnes stored by the US Mint — this is referred to as Deep Storage gold, 4,583 tonnes is at Fort Knox, 1,364 tonnes in Denver, 1,682 tonnes at West Point. In total US official gold reserves account for the 8,134 tonnes, owned by the US Treasury.”
"Well, some of it. You see, the gold at Fort Knox is not counted and hasn’t been since 1986, if it even was then. But, the feds don’t admit that openly.

"We know where it is. We know how much there is. We know it's there. None of it has been removed," insists Treasury Inspector General Eric Thorson, as quoted by CNN." Has the Federal Reserve Sold the Gold at Fort Knox?

Alexander Lassen; "He predicted: 'Long before we wake up from our dream of prosperity through an inflated currency, our gold- which alone could have kept us from catastrophe- will have vanished and no rate of interest will tempt it to return.' " The Federal Reserve: An Astounding Exposure 1934

J.P. Morgan sold off it's gold vault in New York because they had no gold. There is fairly good evidence that there is a tunnel from their vault that goes just 90 feet to the FED vault. Why Is JPMorgan's Gold Vault, The Largest In The World, Located Next To The New York Fed's? | Zero Hedge

FOFOA has an article about local newspaper reports in Kentucky showing lots of heavy trucks leaving the gold depository at Fort Knox. The cited articles are easy to find. Reportedly, Robert Rubin sold off the gold.

In August of 2014, the Denver mint reported that it was storing gold and silver.
http://www.zerohedge.com/sites/defau...Aug%202014.png
In September of 2014, the Denver mint reported that it was storing silver.
http://www.zerohedge.com/sites/defau...ept%202014.png

http://www.zerohedge.com/news/2016-0...us-mint-denver

The Central bankers seem to be in panic mode even though we aren't technically in a recession. There is over 5,000 tons of gold traded every day,,, almost entirely paper trades with no delivery. In May of 2016, there was an emergency shipment of gold from Switzerland to America that matched almost perfectly ounce-for-ounce of the physical deliveries demanded from the COMEX warehouses.

Then, there is GLD. It is never audited. They say, trust us. http://www.goldensextant.com/GLD.html
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Old 08-27-2016, 08:54 PM
Danny B Danny B is online now
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They can't find the money and don't even know what it looks like.

"We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money System. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon."
From Gold to Federal Reserve Notes excerpted from the book Web of Debt The Shocking Truth About Our Money System And How We Can Break Free by Ellen Hodgson Brown

"We say in our platform that we believe that the right to coin money and issue money is a function of government .... Those who are opposed to this proposition tell us that the issue of paper money is a function of the bank and that the government ought to go out of the banking business. I stand with Jefferson... and tell them, as he did, that the issue of money is a function of the government and that the banks should go out of the governing business"

Greenspan; "The problem is that we cannot extract from our statistical database what is true money conceptually, either in the transactions mode or the store-of-value mode. One of the reasons, obviously, is that the proliferation of products has been so extraordinary that the true underlying mix of money in our money and near money data is continuously changing. As a consequence, while of necessity it must be the case at the end of the day that inflation has to be a monetary phenomenon, a decision to base policy on measures of money presupposes that we can locate money. And that has become an increasingly dubious proposition."
http://www.alhambrapartners.com/2016...the-reckoning/

This, from a long-time moneymaker, https://www.rt.com/business/356148-r...world-economy/

"Stated differently, home equity was tapped out last time and wage and salary incomes have been fully leveraged for years. So households have nothing else left to hock.
Accordingly, they now only spend what they earn" The Market’s Being Set Up For A Hard Fall - The Daily Reckoning

"According to several sources, the U.S. population was 122 million in 1929 while total public debt was $16.9 billion. Thus, the average debt per American in 1929 was $139. Compare that to a population of 320 million and $19.4 trillion in debt at an average $60,625 per American today."
"What is interesting about total U.S. debt is that after each World War, the total level of debt declined for several years. For example, after the end of World War I, total U.S. debt fell from $27.4 billion in 1919 to $16.1 billion in 1930 (source). This was also true after World War II when total U.S. debt fell from a high of $269 billion in 1946 to a low of $252.7 billion in 1949."

"Over the next several, as total U.S. debt continued to increase, there were a few years that experienced declines (1951, 1956 & 1957)."
Korean War, June 25, 1950 – July 27, 1953

VERY strange coincidence. Our money is debt money. Every time that our debt load threatened to drop, we had to have a new war. J.M. Keynes advocated perpetual war. With all the wars we've been having, we definitely have a high debt load; https://srsroccoreport.com/wp-conten...erican-NEW.png
Is perpetual warfare the 8astard child of debt money?
https://srsroccoreport.com/gold-debt...reat-collapse/

Edit; "In the World War [I] a mere handful garnered the profits of the conflict. At least 21,000 new millionaires and billionaires were made in the United States during the World War." http://wakingtimesmedia.com/donald-s...st-understood/

Ummm, about that money I owe you,,,, "Stanley Druckenmiller has been telling people to get out of shares and into gold. So you go buy an ETF that is betting on being short the S+P and you buy a pro-gold ETF. The S+P goes down 1000 points in a week as gold goes up $800.

You sit back smoking a big fat stogie and sipping on a dry martini with just a twist of lemon and think about how rich you are. But when you contact your broker, you find that you are penniless. You have lost every cent you invested. With 5,000 ETFs and $500 trillion in derivatives, when the system blows and it will very soon, the risk is no longer market risk. It’s counterparty risk. " http://www.321gold.com/editorials/mo...rty082416.html
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Last edited by Danny B; 08-28-2016 at 02:56 AM. Reason: one more link
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Old 08-28-2016, 08:33 PM
Danny B Danny B is online now
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Hyperinflation of debt money? The tectonic battle between gold and the SDR

There are numerous forecasts for hyperinflation. The first entry in a google search is CORRECT. The next 5? entries are incorrect.
Hyperinflation Definition | Investopedia
Investopedia
When associated with depressions, hyperinflation often occurs when there is a significant increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked, this causes prices to increase, as the currency loses its value.


It's simply an increase in the money supply. Price inflation can result from an increased supply of money chasing a fixed supply of products. not supported by gross domestic product (GDP) growth. The so-called GDP of America IS growing but, all the growth is in financial assets and not in actual productivity.
How does this equation work out when the increase in the money supply is actually an increase in debt? Debt-currencies are a financial asset. They are not tangible, nor is their value derived from expended labour. More precisely, they are liabilities of banks, and as any accountant knows, it is a bank’s assets – and not its liabilities – that have value.
The U.S. dollar was once backed by gold. When the mountain grew too large, it was claimed that the mountain was backed by our industrial capacity. It was later claimed that the U.S. dollar was backed by the "full faith and credit of the GOV"

The CBs worldwide have created about an extra $ 200 trillion (OF DEBT) and can't understand how we can still have deflation. Venezuela has hyperinflation because the money is chasing decreasing supply of goods. The FED calls for a 2% (price) inflation rate at the same time that it GROSSLY inflated the money supply. QE acts like anti-matter to wealth by destroying investment income. When you destroy all possibility of future earnings, you destroy all interest in future investment.
America’s biggest economic problem: Nobody is investing for tomorrow - MarketWatch

GOV loves NIRP. "Meanwhile, the European Central Bank (ECB) demands interest rate payments from the banks which deposit their money at the ECB."
https://mises.org/blog/how-central-b...ddle-class-dry
From this point of view, NIRP is a mechanism to perpetuate socialism at the cost of all future development.

Essentially, GOV piles on more debt to create price inflation. They want a wage-price spiral to diminish the pain of paying off the debt. Asset prices are going up while wages are going down. Earnings are in the basement while asset prices are in nose-bled territory. What could go wrong?

There has been a war on gold to keep it from being considered as a store of wealth outside of GOV/banker control. The crash of the London Gold pool was a decisive loss to the inflationists. The U.S. dollar is on it's way out as a worldwide store of value. The next battle with gold will be heating up in the next ?year? The sovereign bond market is in the process of crashing. That won't inspire any future confidence in the bond market. The fight to the death is between gold and the SDR.

“Two tectonic plates; there’s the natural tectonic plate—deflation—and then…the policy plate of inflation—which is money printing, currency wars, QE, operation twist, negative interest rates, and zero interest rates…”
"So debt deleveraging, demographics and technology are causing deflation now, and I would call that the natural state of the world. However, central banks cannot have deflation. They cannot allow it. "
"Central banks could throw up their hands and it could go deeply into deflation. Or, central banks could pull a few more rabbits out of a hat and it could go into inflation."NOT going to happen without helicopter money.

"It really doesn’t have so much to do with how much of it you print (which is an important economic concept), but rather the real fundamental basis of any form of money is people’s confidence in it." He lists this point and then drops the ball.

"The next financial crisis will be too big for the central banks to bail out.
What’s bigger than the central banks? The only thing bigger than the central banks is the IMF.
So the IMF will conduct a bailout using special drawing rights, using their printed money, the SDR," Not going to happen.
Jim Rickards: "There Will Be A War On Gold" - Sprott Global Resource Investments Ltd.
Rickards wrote a book, "the Death of Money and the New Case for Gold."
How can he write about the death of fiat currencies and then think that the R.O.W. will accept a new fiat paper, the SDR?
The cascade default of the credit system will take out every non-tangible instrument. That includes your bank balance. The paper dollar will go UP in value because they are so rare.
Rickards writes about a loss of confidence in currency and then proclaims that the SDR is the new currency. It's been around for decades and nobody wants it.

8/28 Confidence in the Fed sinking fast from Greenspan to Bernanke to Yellen – Mish Yep, everybody is getting tired of all the shuking and jiving out of the FED with no rate increase.
8/28 Renewable energy generation breaks records every month in 2016 – Eco Watch Think that might affect the price of oil?
8/26 EV revolution set to cripple more than just the oil industry – Oil Price
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