tag:blogger.com,1999:blog-43096758226134039412024-03-12T19:51:09.763-07:00James Turk BlogTRACKING THE FOUNDER OF GOLDMONEY, SILVER & GOLD VIGILANTE, JAMES TURK - AN UNOFFICIAL EDITING OF HIS INVESTMENT COMMENTARYN/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comBlogger619125tag:blogger.com,1999:blog-4309675822613403941.post-82784538091942981192021-08-18T11:11:00.006-07:002021-08-18T11:11:44.555-07:00The extinction of gold derivatives<span style="font-size: large;">This month is the fiftieth anniversary of the Nixon shock, when the Bretton Woods agreement was suspended. And the expansion of commercial banking into credit for purely financial activities became central to the promotion of the dollar as the international replacement for gold.</span><div><span style="font-size: large;"><br />With the introduction of Basel 3, commercial banking enters a new era of diminishing involvement in derivatives. The nominal value of all derivatives at the end of last year amounted to seven times world GDP. While we can obsess about the effects on precious metals markets, they are just a very small part of the big Basel 3 picture.<br /><br />However, gold remains central to global money and credit and the impact on gold markets should concern us all. In this article I quantify gold forwards and futures derivatives to estimate the impact of reversing anti-gold policies that date back to the Nixon shock in 1971.<br /><br />We are considering nothing less than the effects of ending fifty years of gold price suppression. Through leases, swaps, and loans central banks have fed physical bullion into derivative markets from time to time to keep prices from rising and breaking the banks who are always short of synthetic gold to their customers.<br /><br />To summarise, bullion banks withdrawing from derivative markets is bound to create replacement demand for physical gold that can only drive up the price and further undermine fragile confidence in fiat currencies at a time of rapidly increasing monetary inflation.</span></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, James Turk's <a href="-">Goldmoney</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-46661681798487939512021-08-14T11:11:00.000-07:002021-08-18T11:12:38.705-07:00The problem with climate change politics<span style="font-size: large;">Western economies have moved on from free markets to the point where they hardly exist in the true meaning of the phrase. Yet the state continually claims that it is free markets that fail, not government.</span><div><span style="font-size: large;"><br />The reason governments fail in economic terms is that economic calculation is never part of their brief, and nor can it be. By economic calculation, we mean taking positive actions aimed at a profitable outcome. To survive and prosper, businesses and individuals must do this all the time — the only exception being when they can rely on the state to underwrite their failures, which is why established businesses encourage statist regulation to place hurdles in the way of upstart competitors. And why at an individual level there is a ready demand for state welfare.<br /><br />But political objectives cannot involve profit and therefore economic calculation. Instead of economic calculation, a responsible state can only manage its tax revenues efficiently to minimise its impact on the producers in the economy and to achieve affordable social outcomes in the context of a realistic consensus. The problem is deciding where the line is drawn between what is reasonable and what is not. It is also the line that determines who in the distant future will go down in history as a statesman or as a political flaneur.<br /><br />Political objectives in the narrowest sense were the focus in America until the days of President Hoover, who broadened the political mandate into interventionism, followed by the modern-day hero for socialist economists, Franklin D Roosevelt. Nearly a century of increasing socialistic intervention since Hoover has led us into a socio-political system whose dubious achievements are not much more than monetary debasement and the repeated failure of statist ambitions.<br /><br />It’s not just America; it’s all advanced nations. Regular readers of Goldmoney articles will be aware of the inflationary consequences of promoting neo-Keynesian interventionism and to where it all leads. But over the last thirty years and more we have seen the same state-sponsoring of self-serving scientists in fields other than just economics. Especially relevant today is climate change, because this highly politicised topic is now determining the course of capital investment in the commercial sector instead of profitable objectives.<br /><br />Scientists, with no experience of climatology have been jumping on the global warming bandwagon for decades, milking state funds allocated for research aimed at proving that homo stultus is responsible for global warming. And when that didn’t arrive on frequently predicted schedules, global warming was renamed climate change...</span></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, Goldmoney, read the <a href="https://www.goldmoney.com/research/goldmoney-insights/the-problem-with-climate-change-politics">full article here</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-38847057692837522352021-08-05T07:14:00.000-07:002021-08-18T11:12:59.864-07:00The Monetary Logic for Gold and Silver<span style="font-size: large;">This week saw the news that a vaccine had been found to combat the coronavirus. At least it offers the prospect of humanity ridding itself of the virus in due course, but it will not be enough to rescue the global economy from its deeper problems. Monetary inflation is therefore far from running its course.<br /><br />The reaction in financial markets to the vaccine news was contradictory: equity markets rallied strongly ignoring rapidly deteriorating fundamentals, and gold slumped on a minor recovery in the dollar’s trade weighted index. Rather than blindly accepting the reasons for outcomes put forward by the financial press we must accept that during these inflationary times that markets are not functioning efficiently.<br /><br />To obtain a grasp of what is truly happening in capital markets, it is usually best to stand back and observe the broader context. Figure 1 below shows the course of three major indicators this year: the S&P 500 index as proxy for the stock market, the copper price as proxy for industrial commodities and gold as proxy for monetary inflation.<br /><br /><div style="text-align: center;"><img height="394" src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-11-12_at_1.24.07_PM.png" width="640" /></div><br />Before 22 March, the stock market had slumped along with copper, and gold had broadly flat-lined. The signals suggested that stock markets and commodity prices were discounting an economic slump, and that gold perhaps offered a haven from systemic risk, at least until it fell sharply in late March.<br /><br />On Thursday, 16 March, the Federal Reserve Board cut its funds rate to zero and the following Monday, 23 March, the Fed declared unlimited quantitative easing to support the economy through what it declared would be a V-shaped recovery. In other words, an injection of money was expected to ensure economic recovery and a return to normality. March was also the month many countries entered lockdowns to combat the first wave of viral infections.<br /><br />Following the Fed’s announcement, stock markets recovered sharply, being the direct beneficiaries of unlimited monetary expansion, which we discuss later. Copper recovered strongly, it was said to be on improved prospects for the global economy, but the back story here is more concerning. Following the Fed’s statement, China’s government decided to reduce its stockpile of dollars by buying key industrial commodities, particularly copper. If widely adopted by other foreigners and subsequently the American public, it is a policy that will ultimately destroy the dollar’s purchasing power.<br /><br />The threat of infinite money printing to the purchasing power of the dollar drove the gold price to new highs, but it can be seen in Figure 1 that gold generally underperformed equities and copper by a significant margin. In one sentence, the reason is the establishment’s dislike and suppression of gold as a rival to fiat currencies, and ignorance in the financial community about the effects and consequences of monetary inflation.<br /><br />This article is intended to put the latter right and to give the reader an advantage of knowledge in a subject which is bound to dominate financial markets and their underlying economies in the months to come.<br /><br /><b>The evolution of money and what it represents</b><br /><br />In the pre-dawn of history, when the limitations of barter became an impediment to further human progress, two conditions needed to be satisfied. A form of intermediary good commonly accepted as a medium of exchange was indispensable so that through the division of labour and by their individual skills and knowledge, humans could maximise their output in order to acquire other goods to satisfy their needs and wants. The classical economists defined the division of labour and with it the role of money as Say’s law, after the French economist, Jean-Baptise Say (1767—1832), who described it.<br /><br />The economic benefits of the division of labour are now taken for granted, even by socialists who are otherwise scathing of free markets. And the intermediary good, money, evolved to become commonly accepted by diverse communities, even those which did not trade with each other. Eventually, all civilisations accepted metallic money as the durable, reliable and quantifiable units of exchange.<br /><br />In descending order of value, that which we would term their purchasing power today, metallic monies were gold, silver and copper. Before the dawn of history, when scribes began to document events, metallic money had already become established. History then recorded numerous occasions when the powerful deceived the public by corrupting money — obtaining it for themselves while forcing the public to accept inferior or worthless substitutes.<br /><br />The Emperor Nero famously debased the Roman denarius to pay his troops, an act necessary for his personal survival, and a policy pursued by his successors for two centuries. In China, Kublai Khan confiscated gold, silver and precious stones, doling out paper substitutes made from mulberry leaves. From ancient times to the present day, kings, emperors and now governments more often than not were and still are heavily indebted and authorised schemes to replace gold and silver with debased coinage, or their own alternative forms of money. The public’s choice of a medium of exchange was incorruptible; a ruler’s choice was made with the intention to debase it as a source of finance.<br /><br />Gold and silver had long been accepted as the medium of exchange, chosen by those that use it. The fact that its quantity could not be expanded by a government was no impediment to the advancement of national and personal wealth. The improvement of living standards throughout Europe and America in the nineteenth century was testament to the combination of free markets and sound money.<br /><br />The limitations imposed by metallic money on the state’s ambitions were seen as a hindrance by socialising governments. The modern template for a resolution of the problem was the Prussian-led federation of German states, unified in 1871 by Otto von Bismarck. Accordingly, when Georg Knapp promoted his state theory of money in 1905, Bismarck furthered his statist ambitions by seizing the opportunity given by Knapp’s state theory of money to finance the expansion of Germany’s military forces, issuing marks unbacked by gold while still on a gold standard.<br /><br />In August 1914 Germany’s gold exchange standard was temporarily abandoned, and when it became clear that the war was not going to be the short conflict which Germany expected to win, the purchasing power of the paper mark began to fall, collapsing to a notional trillion paper marks to one gold mark in November 1923. Other European currencies without a gold exchange standard and who put vast quantities of unbacked money into circulation also suffered monetary collapses, notably those of Austria, Hungary, Poland and Russia.<br /><br />Bismarck showed in the years before the First World War that the gold standard was not necessarily protection against monetary debasement. Similarly, Benjamin Strong, the Chairman of America’s Federal Reserve Board, in the early 1920s used inflationary monetary policies under cover of the gold standard, and with the cyclical expansion of bank credit fuelled an unsustainable boom in the 1920s. The result was a stock market collapse, a banking crisis, the ownership of gold banned for American residents in 1933 and a substantial devaluation of the dollar against gold in January 1934. Gold then remained exchangeable for dollars, but only for the settlement of overseas trade.<br /><br />From these changes, the current monetary situation evolved, driven by a new breed of economist which abandoned classical economics. Classical economics had emphasised the importance of free markets and the immutability of Say’s law. Instead, the mass unemployment in the 1930s was taken as evidence that free markets and the division of labour had failed, and that the state had an interventionist role to ensure that a depression would never happen again.<br /><br />Despite all the evidence and a priori theory that explains the massive improvements in the human condition that arose from the division of labour and free markets, the denial of Say’s law was formalised by Keynes in his General Theory. Or rather, he skated around the subject, concluding that, “If, however, this is not the true law relating the aggregate demand and supply functions, there is a vitally important chapter of economic theory which remains to be written and without which all discussions concerning the volume of aggregate employment are futile.” Note that Keynes does not deny Say’s law as his acolytes do; he merely supposes that “If it is not the true law”.<br /><br />From Keynes’s supposition he went on to invent macroeconomics, a mathematically based discipline that substituted human action with aggregates and averages. It justified the temporary budget deficits that are intended to stimulate a slumping economy by monetary inflation — deficits that have now become permanent and increasingly beyond control. By inventing an economic role for the state, Keynes opened the door to unlimited statist intervention and for the generally non-productive state to become an increasing burden on the productive private sector.<br /><br />With the raison d’être provided by macroeconomics and questionable government statistics, the reliance by governments on inflationary financing has increased over time. We are now at the point when some observers of monetary history warn of hyperinflation...</span><br /><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.goldmoney.com/research/goldmoney-insights/the-monetary-logic-for-gold-and-silver">Goldmoney</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-24645578283172221672021-07-23T11:24:00.000-07:002021-08-18T11:12:47.385-07:00James Turk: Bitcoin and Gold are Quite Complimentary<span style="font-size: large;">Max Keiser continues his interview with James Turk of Gold Money about bitcoin and gold to find out which asset could be considered as a hedge and why.<br /><br />“Bitcoin is the currency of the future because it has proven to be an escape currency, it’s a way of getting your purchasing power into something that’s relatively safe,” says Turk.<br /><br />He points out that “Bitcoin and gold are in fact complimentary to one another because the weaknesses of gold are the strength of bitcoin,” and vice versa.<br /><br />“What I mean is that you can hold gold in your hand but you can’t do that with the bitcoin” but gold can be confiscated while the cryptocurrency cannot. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">“So, the two are really complimentary to one another, and if you feel that you need to own gold in your portfolio (and everybody should as a hedge), you might consider a cryptocurrency, like bitcoin, in your portfolio as well,” the expert says.</span></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.rt.com/business/523033-bitcoin-gold-quite-complimentary/">Russia Today</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-34257408812708799072021-07-18T04:33:00.000-07:002021-08-18T11:13:12.054-07:00The Consequences of Budget Deficits for International Trade<span style="font-size: large;">Long before the covid-19 lockdowns, economic and financial developments threatened to undermine both the US economy and the dollar.<br /><br />The similarities between the situation today and the end of the roaring twenties, and the depression that followed, are enormously concerning. Both periods have seen a stock market bubble, fuelled by bank credit and an artificial monetary stimulus by the Fed. Both periods have experienced an increase in trade protectionism: In October 1929, the month of the crash, after debating it for months Congress finally passed the Smoot Hawley Tariff Act, raising tariffs on all imported goods by an average of about 20%. In 2019, US trade protectionism against China put a stop to the expansion of international trade. These facts, which should continue to concern us, have been buried by the immediacy of the coronavirus crisis, which is an additional burden for the global economy today compared with the situation ninety years ago.<br /><br />As is nearly always the case in the year of a presidential election, economic negatives get buried in waves of reflationary optimism. This time the optimism has in turn been buried by the virus, but the reflation relation is still there in spades. The American budget has soared from a previously planned trillion dollars or so to $3.3 trillion in the fiscal year that ended last month. Between March and September, the deficit increased over the first half of the fiscal year by $2.7 trillion, an annualised rate of $5.4 trillion. And given the resurgence of the virus and the US Government’s commitment to avoid the slump, not only is the budget deficit likely to be even greater in the current fiscal year, but all else being equal it will be out of control for several years to come. Money-printing as a source of finance has already overtaken tax receipts by a substantial margin.<br /><br />While the Wall Street Crash commenced in late September 1929, there was an initial consolidation that lasted until the following May, nearly eight months. The recent market collapse between last February and March and the initial recovery to September echoed the duration of the recovery in 1929—1930, as shown in Figure 1 below. Today’s Dow is superimposed on the that of 1920—1933.<br /><br /><div style="text-align: center;"><img height="431" src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-11-05_at_3.48.22_PM.png" width="640" /></div><br />The difference between the two periods is that between 1920—1933 the Dow was effectively priced in gold through the dollar at $20.67 to the ounce, while today it is priced in unbacked fiat dollars. It is a matter of fact that today’s dollars are issued by the Fed with a view to keeping the investment yardstick, US Treasuries, yielding as little as possible. And by flooding the financial markets with money, in relative valuation terms equity prices are artificially supported in defiance of economic fundamentals by current monetary policies.<br /><br />It is a situation that cannot persist. Sooner or later, monetary inflation will undermine the purchasing power of the dollar as measured on the foreign exchanges, foreign selling of dollar portfolio assets is bound to escalate, the yields on US Treasuries will rise beyond the Fed’s control, and equities will adjust towards fundamentally derived values.</span><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.goldmoney.com/research/goldmoney-insights/the-consequences-of-budget-deficits-for-international-trade">Goldmoney</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-1706616496983705712021-05-12T11:23:00.000-07:002021-05-12T11:23:00.177-07:00Goldmoney's James Turk: Money & Liberty<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/_GqPRzgB6uw" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><span style="font-size: large;">James Turk, Founder and Lead Director of Goldmoney Inc. discusses what is money and the best way to preserve your wealth.</span>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-60067192079699022902021-05-07T11:23:00.002-07:002021-05-07T11:23:22.018-07:00James Turk: The Roaring Twenties Are Back!<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/jPV4qhR44DE" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><span style="font-size: large;">In this episode of the Keiser Report, Max and Stacy look at the return of the roaring twenties as incomes and consumption soar. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">In the second half, Max continues his interview with James Turk of Gold Money about the fate of the US dollar in the day and age of the Belt and Road Initiative and excessive money printing.</span></div><div><span style="font-size: large;"><br /></span></div><div>- Source, <a href="https://www.youtube.com/watch?v=jPV4qhR44DE">RT</a></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-3888623697489502262021-04-14T09:35:00.008-07:002021-04-14T09:35:54.991-07:00Alasdair Macleod Biden’s Last Throw of the Geopolitical Dice<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/GhZmW70uUng" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><span style="font-size: large;">Alasdair Macleod explains why America is already on its back foot in the continuing cold war, why the days of dollar hegemony are limited and what that will mean for your investments.</span><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.youtube.com/watch?v=GhZmW70uUng">Jay Taylor Media</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-37354970564241210702021-03-29T11:33:00.007-07:002021-03-29T11:33:33.791-07:00Interest Rates Amid Out of Control Spending<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/7q01QmQtCCA" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><span style="font-size: large;">John Rubino discusses how much more of this debt-based money can be produced before we face a hyper inflationary end of the momentary system as we know it.</span><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.youtube.com/watch?v=7q01QmQtCCA">Jay Taylor Media</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-53705478189036581192021-03-09T11:53:00.003-08:002021-03-09T11:53:12.408-08:00Alasdair Macleod: Bitcoin Will Die Along with Fiat Currencies<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/0ecSb8l8wC0" width="560"></iframe></div><div style="text-align: center;"><br /></div><span style="font-size: large;">Alasdair explains how the Treasury plans to spend the 1.6 trillion in the general fund over the coming months and its effects. The Fed is forcing the large banks to implement negative interest rates on deposits. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">He outlines backwardation and the implications for overnight loans with negative interest rates. Alasdair doesn't see much chance of a sudden economic recovery, and the markets are beginning to understand inflation is coming. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">In an inflationary environment, investors want higher rates of returns on their money. Rates are rising globally, and ironically, those in Europe are almost in positive territory. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">He feels the EU banks remain vulnerable and the entire banking system there is in zombie mode. This state can't continue much longer. Historically gold is extremely cheap compared to the dollar, which demonstrates how broken the markets have become. However, you wouldn't think gold would be acting dead at the bottom of the swimming pool in this environment. Gold can and often does rise along with bond yields. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">During the 1970s, gold moved up in multiples along with rising rates. Comex gold suppression is designed to keep regular investors uninterested in the shiny metal. has had something of a run in the market, and very little remains in London and Switzerland. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">They are likely holding some metals back, but overall deliveries from the Comex are tight. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">This is a wonderful opportunity to stack and keep in mind you can buy many things when no one else has physical gold and silver. Alasdair believes that central banks have been leasing gold into the markets. A recent GLD prospectus detailed some reserves of the ETF being held at the Bank of England. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">The only way that could happen is if it was leased. Central banks can intervene to smooth things over, but that results in multiple owners. Central banks don't have or store silver. London silver is mostly stored with ETF's and industrial users only take it from the vault as needed. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">Bitcoin is a fascinating development, and it's educated an entire generation or more on fiat currency risk. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">He questions if Bitcoin should be regarded as money or just as a store of value. Due to its deflationary nature, it can't easily support a debt-based monetary system.</span></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.youtube.com/watch?v=0ecSb8l8wC0">Palisade Radio</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-44271477491659263532021-01-27T18:17:00.004-08:002021-01-27T18:17:21.146-08:00John Rubino: Will Democrats be Gold Friendly?<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/k0qW8Cn2CWM" width="560"></iframe></div><div style="text-align: center;"><br /></div><span style="font-size: large;">John Rubino explains that the U.S. is broke and neither political party is able to fix the debt problems but the democrats will spend more money and drop off the cliff faster.</span><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.youtube.com/watch?v=k0qW8Cn2CWM">Jay Taylor Media</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-13998983574187595622021-01-23T03:06:00.008-08:002021-01-23T03:06:53.123-08:00Alasdair Macleod: IMF Urges Govts to Spend as Much as You Can<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/iWV2ExW1rJg" width="560"></iframe></div><div style="text-align: center;"><br /></div><span style="font-size: large;">Alasdair Macleod, head of research at GoldMoney.com, returns to Liberty and Finance to declare that we are on entering inescapable hyperinflation, and that there’s no escape for the US government but to ramp up destruction of the dollar and our wages, savings, and pensions, thus impoverishing almost everyone.</span><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.youtube.com/watch?v=iWV2ExW1rJg">Liberty & Finance</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-5725756850312676902020-12-18T12:27:00.003-08:002020-12-18T12:27:19.340-08:00Alasdair Macleod Shares His Inflation Roadmap<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/AMTF-qUlAvk" width="560"></iframe></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-89571054364797798162020-11-27T07:12:00.001-08:002020-11-27T07:12:02.053-08:00The Course of a Currency Collapse<span style="font-size: large;">The end of fiat currencies is likely to come sooner than later, from the consequences of today’s massive money-printing, particularly of dollars. Already, US government spending is financed substantially more by currency debasement than taxes, a condition that will almost certainly continue to deteriorate rapidly in the coming months. Furthermore, the global banking system, which is extremely thinly capitalised, faces a tsunami of bad debts which can only lead to a systemic failure — most likely in the Eurozone initially, but threatening all other jurisdictions through counterparty risks. It is coming to a head and is likely to happen soon, possibly triggered by the second covid wave.<br /><br />Long before the two or three years required for any CBDC to be operational, the world’s reserve fiat currency, the US dollar, is already hyper-inflating. There are signs the markets are beginning to understand this. Bitcoin’s price has risen sharply, sending signals to everyone that the differential between its ultimately fixed quantity and the accelerating rates of fiat currency debasement is feeding dramatically into the price.<br /><br />Despite the economic slump, equity markets are being driven to new highs as non-financial customers deem stocks to be preferable to bank deposits. It has not helped that the Fed reduced deposit rates to zero last March, well below everyone’s time preference. The Fed has also promised infinite QE in order to fund the fiscal deficit. Therefore, it is not surprising that individuals and corporations are shifting out of cash balances into financial and other assets, with the notable exception of fixed-interest bonds. Rising commodity and raw material prices are also telling us that dollars are been sold in those markets.<br /><br />This is the point being missed in all commentaries: the mounting evidence that markets, being forward-looking, are beginning to abandon the dollar. And once it goes beyond a certain point, nothing will reverse a rapid loss of purchasing power to the point of worthlessness. To avoid this outcome central banks led by the Fed must immediately abandon inflationary financing of budget deficits.<br /><br /> That is not going to happen. In addition to the current hyperinflation must be added the inflationary cover for the costs and consequences of rescuing a failing global banking system. The costs are immediate, in that governments will take on their books everyone’s bad debts. The consequences are that through their central banks they will have no political alternative other than to counter the economic slump through yet more money printing.<br /><br />US Treasury bond yields are already beginning to rise, perhaps reflecting this developing outcome as Figure 1 shows.<br /><br /><div style="text-align: center;"><img src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-11-19_at_2.28.51_PM.png" /></div><br />The up-arrow at the bottom-right of the chart shows that the downward momentum for the bond yield has reversed, forming a golden cross; that is to say the yield is above its two commonly followed moving averages which in turn are forming a cross with the 55-day moving average rising above the 200-day moving average, a strong indicator of a major turning point and of higher bond yields to come. The upward turn of bond yields is to be viewed in the context of the dollar’s trade weighted index, which is shown in Figure 2.<br /><br /><img src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-11-19_at_2.29.25_PM.png" /><br /><br />Currently standing at 92.40, if the dollar’s TWI breaks below 91.75 (the low on 1 September) it is likely to head significantly lower. With foreign holdings of dollars and dollar denominated financial securities totalling almost $27 trillion, the chances are that dumping of the dollar on the foreign exchanges will increase rapidly. That being the case, the Fed will not only be funding the unprecedentedly high (for peacetime) budget deficit but will have to absorb foreign sales of US Treasuries and dollars in order to keep the cost of government funding suppressed.<br /><br />Evidence is mounting that it cannot be done. And with the end of the suppression of interest rates comes the collapse of accumulated malinvestments, of government finances, and of the currency itself.</span><div><span style="font-size: large;"><br /></span></div><div><i>- Source, James Turk's <a href="https://www.goldmoney.com/research/goldmoney-insights/the-global-reset-scam">Goldmoney</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-30431058744890844162020-11-23T04:35:00.011-08:002020-11-23T04:35:01.395-08:00The Destruction of the Euro<span style="font-size: large;">If ever there was a political construct the unstated objective of which is to enslave its population, it is the European Union. Its opportunity stems from national governments which, with the exception of Germany and a few other northern states, had driven or were on the way to driving their failed states into the ground. The EU’s objectives were to support the policies of failure by corralling the accumulated wealth of the more successful nations to fund the failures in a socialistic doubling-down, and to accelerate the policies of failure to ensure that all power resides in the hands of statist looters in Brussels.<br /><br />It is Ayn Rand’s vision of the socialising state as looter in action.<a href="https://www.goldmoney.com/research/goldmoney-insights/the-destruction-of-the-euro#_edn1">[i]</a> All of surviving big business is aligned with it: those who refused to play the game have disappeared. Senior executives with extensive lobbying budgets are no longer at the beck and call of contentious consumers and have hollowed out their smaller competitors. They have opted for the easier non-contentious life of seeking favours of the looters in Brussels, enjoying the champagne and foie gras, the partying with the movers and shakers, and the protection they bribe for their businesses.<br /><br />It is a corrupt super-state that evolved out of American post-war policy — the child of the American Committee of United Europe. Funded and staffed by the CIA in 1948, the committee’s objectives were to ensure the European countries bought into a US-controlled NATO, in the name of stopping Stalin’s westwards expansion from the post-war boundaries. This was the official story, but it is notable how it formed a template for subsequent American control of other foreign states. It is the action of the jewel wasp that turns a cockroach into a zombie, so that its lava can subsequently feed off it.<br /><br />This European cockroach is now in the final stages of its zombified existence. In Brussels they don’t realise it, but they are partying into the dawn of the next world, and they will have nowhere left to go. Outside of the Brussels hothouse and EU capitals it is hard to discern any support for a failing political system, beyond simply keeping the show on the road. The German population grumbles about lending their money to economic failures, but like any creditor deep in the hole they will remain blind to the deeper systemic problem for fear of its collapse. At the other extreme are the Greek socialists who claim Germany still owes them for their brutality and destruction seventy-five years ago. It is a Faustian pact between creditors and debtors to ignore the reality of their respective positions. It is the method of imperialism; but instead of being applied to other nations, Brussels applies imperial suppression to its own member states. And now that they been hollowed out, there is nothing left to sustain Brussels.<br /><br />This is the destination they have arrived at today. Brussels and its European Parliament are nearing the end of their ridiculously expensive and pointless pig-on-pork socialising destruction. Not only have the panjandrums no one left to rob, nowhere left to go, but they have bankrupted a whole continent. Surely, the robbing of the rich and giving to the poor is close to its end. The creditors and debtors have nothing material left — money in everyone’s balance sheet will be written off through a monetary and economic collapse. It is the process of it and the destination we must analyse.<br /><br />The Eurozone’s banking system is a heartbeat from collapse, as will become evident in this article. There are two basic elements involved. At the bottom there are the commercial banks with rapidly escalating non-performing loans, a phrase which hides the truth, that they are irretrievable bad debts. At the top is the Eurozone-wide settlement system, TARGET2, which is increasingly used to hide the bad debts accumulating at national levels.<br /><br />Before we look at the position of the commercial banks, in order to understand how toxic the Eurozone has become we will start by exposing the dangers hidden in the settlement system.<br /><br /><b>The Chickens Are Coming Home to Roost</b><br /><br />The imbalances between the ECB and the national central banks in the TARGET2 Eurozone settlement system are indicative of the current situation.<br /><br /><div style="text-align: center;"><img height="406" src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-10-22_at_1.11.53_PM.png" width="640" /></div><br />Germany (light blue) is now “owed” €1.15 trillion, an amount that has escalated by 27% between January and September. At the same time, the greatest debtors, Italy, Spain and the ECB itself have increased their combined debts by €275bn to €1.3 trillion (before September’s additional deterioration for Spain and the ECB are reported — only figures up to August for them are currently available). But the most rapid deterioration for its size is in Greece’s negative balance, increasing by €45.6bn between January and August.<br /><br />Is the Bundesbank worried by the increasing quantities of euros owed to it in a system that was always intended to roughly balance? Certainly. Will it publicly complain, or privately demand they be corrected? Almost certainly not. For statist systems such as the EU depend entirely on total obedience towards a common objective. All dissenters are punished, in this case by the waves of destruction that would be unleashed by any state refusing to continue to support the PIGS. TARGET2 is a devil’s pact which is in no one’s interest to break.<br /><br />The imbalances are all guaranteed by the ECB. In theory, they shouldn’t exist. They partially reflect accumulating trade imbalances between member states without the balancing payment flows the other way. Additionally, imbalances arise when the ECB instructs a regional central bank to purchase bonds issued by its government and other local corporate entities. As the imbalances between national banks grew, the ECB has stopped paying for some of its bond purchases, leading to a TARGET2 deficit of €297bn at the ECB. The corresponding credits conceal the true scale of the deficits on the books of the PIGS national central banks. For example, to the extent of the ECB’s unpaid purchases of Italian debt, the Bank of Italy owes more to the other regional banks than the €546bn headline amount suggests.</span><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.goldmoney.com/research/goldmoney-insights/the-destruction-of-the-euro">Goldmoney</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-86030647281009538742020-11-22T07:12:00.008-08:002020-11-22T07:12:51.899-08:00The Global Reset Scam<span style="font-size: large;">Increasingly, people are beginning to realise that their world is undergoing a period of rapid change, with the future of fiat money now uncertain. For most, it is too difficult to even contemplate. But growing uncertainties are driving wild speculation about what those in authority now have in store for the human race in the form of a global reset. It is a time for conspiracy theorists, aided and abetted by our politicians and central bankers who are being increasingly evasive, because events are spiralling out of their control.<br /><br />Then there is America’s Deep State, or the British equivalent, the more recently christened Blob; an amorphous entity comprised of the permanent bureaucracy with its own agenda. These faceless planners have moved on from merely making ministers’ lives difficult if they deviate from the blob’s predetermined course — immortalised in “Yes Minister” and its sequel series “Yes Prime Minister”.<br /><br />As we saw with Brexit, The Blob has been rigging political outcomes, even conniving in elections. Christopher Steele, an ex-MI6 officer produced a dodgy dossier on Trump to influence the American presidential election in 2016. But there is no such thing as an ex-MI6 Agent because of the Official Secrets Act, so we can only conclude that the intelligence arm of The Blob sanctioned it on a distanced basis. MI6 works with other intelligence agencies under the five-eyes agreement and is close to the CIA. Though they do not necessarily share intelligence, it is impossible to conceive of Steele’s role in influencing the outcome of a US presidential election without the CIA’s knowledge. Almost certainly, the fact that it was commissioned must have been with the CIA’s blessing.<br /><br />At the time of writing, we do not know the outcome of the current presidential election, but enough doubt has been thrown on the validity of the voting process to implicate unknown parties in managing the outcome. It can never be proved, but for increasing numbers of sceptics it looks like a Deep State operation. It is therefore hardly surprising that conspiracies abound.<br /><br /><b>The World Economic Forum</b><br /><br />The most prominent of these conspiracies has hit the headlines in recent weeks. Its ambition is to take the lead in resetting the world by dismantling the capitalist system in favour of a greater technocratic rule — a fourth industrial revolution no less, even planting microchips in humans to read their brains and control them. The leader is one Klaus Schwab, whose World Economic Forum runs the annual Davos bunfight.<br /><br />As leader of the Davos forum, Schwab probably sees himself as the coordinator of world government. If so, at 82 years old he is probably getting impatient about the progress towards his personal vision of ultimate power. The covid chaos and the success of his climate change agenda must be encouraging him to think he is very close to a breakthrough. Alternatively, we might consider Schwab as a latter-day Charles Fourier (1772—1837), the utopian socialist philosopher, whose forgotten ideals were only marginally more narcissistic and bizarre than Schwab’s.<br /><br />While the great and the not so good love the annual Davos party as a networking venue for the politics industry, when it comes to transferring real power to Schwab, it’s a no-no. The only time a politician transfers power is when he is deposed by his or her electorate, colleagues, or the military. And history is littered with utopians, like Schwab, grasping for power over their fellow men. In addition to Charles Fourier, we can include Georg Hegel (1770—1831) and Auguste Comte (1798—1857), as well, of course, as Karl Marx. As thinkers or philosophers, they were all influential in their day and some of their ideas persist in the naïve.<br /><br />So, while increasing numbers of well-informed people are beginning to sense the end of the current world order, to assume that this will hasten the WEF’s grab for world domination by influencing events is a mistake. All our deep states, blobs and their branches, particularly central banks, will want to hold onto and enhance their executive power with the political class increasingly cast as cover. The planners at national level are not going to submit to Mr Schwab’s plans for world domination. Instead, international relations involve mutual cooperation to secure purely domestic objectives, something President Trump was in the process of destroying. From the Deep State’s point of view, perhaps that’s why he had to be deposed in favour of Biden, who is a long-serving compliant figure.<br /><br /><b>Central bank digital currencies (CBDCs)</b><br /><br />There can be little doubt that central banks wish to increase their control over money and how it is used, cutting out the obstacle of commercial banks who produce most of the money in circulation through the expansion of bank credit. From a statist point of view, commercial banking is a dinosaur, an outdated remnant of free markets, perpetuating needless systemic risk and superseded by technology. Branch networks will disappear with cash, changing relationships between banks and the general public for ever.<br /><br />By introducing direct central bank accounts for members of the public and every business, commercial banks become superfluous and can be allowed to die. And if one goes bust before commercial banking has ended, the facility to transfer all its loans and deposits onto a central bank’s books will then exist. The removal of systemic risk by the abolition of commercial banks is one of several likely long-term objectives of CBDCs. Commercial banks can be left with the role of investment banking activities in capital markets.<br /><br />We can imagine the development of CBDCs going even further than just replacing cash. Stimulation by dropping money into personal accounts can be used to target increased spending by consumers, or even groups of consumers, sorted by wealth, location or other factors. Some consumers can be favoured relative to others, so in a swing state, for example, an incumbent administration might buy votes. While this would be strongly denied, as we have seen with unfettered fiat currency the state creeps incrementally towards unstated objectives, using every tool at its disposal. The election of Deep State-approved politicians then becomes possible.<br /><br />Eventually, funding of all capital projects will come under the direct control of the central bank. And savings deposits, always seen to be a brake on consumption, can be banished. Capital can be made available for government schemes and favoured businesses on the say so of the central bank.<br /><br />A future government statement might be issued on the following lines:<br /><br />“Your Government is pleased to announce that the National Audit Office has approved a number of infrastructure projects targeted at improving communications between administrative centres. This investment over ten years will secure an estimated 500,000 jobs. The cost over the life of the project is XXX billion monetary units. The Central Bank has confirmed it will make funding for these projects available, both to your Government and approved private sector contractors.”<br /><br />This would be a planners’ heaven. Furthermore, CBDC money can be withheld or frozen for anyone suspected of crimes and tax evasion, starving them into confessions of guilt. The justification is always that it is in the national interest to ensure that financial and tax crimes are eliminated — something commercial banks have singularly failed to do. Overseas payments can be routed through other CBDCs, giving the central banking network control over world trade. Just imagine foreign trade being conducted through a grander version of the Eurozone’s TARGET2 settlement system!<br /><br />Worried yet? In the advanced economies Covid-19 has nearly eliminated cash, which doubtless is intended to be replaced entirely by CBDCs. The end of cash and bank deposits will allow the central bank to cap the amount of cash anyone can hold, and also ensure that everyone is paid a “living wage”. Already flagged, another intention is to eliminate the burden of interest rates and by controlling where money supply is expanded, manage the economy.<br /><br />It is commonly assumed that those in charge of us know what they are doing — they don’t. They have become trapped at a socialist endpoint and are doubling down in their efforts towards greater socialism. But their dreams of future control are mere escapism. Individuals will lose yet more personal freedom, but ultimately the state cannot conquer human nature and the will of individuals to do what they want. The Soviets attempted it and failed, despite killing and starving many millions.<br /><br />Central to the collapse of any state-directed reset will be the loss of faith in fiat currencies, and particularly that of the world’s reserve currency, the US dollar. This remains the case irrespective of whether circulating currency is in cash, bank deposits, or CBDCs. Indeed, the collapse could be hastened by CBDCs, because the intention is to increase the pace of injection of new money into the economy if it is required (it always is), and to impose deeper negative interest rates, which cannot be easily achieved under the current monetary system.<br /><br />If these statist intentions are allowed to prevail, along with other agendas such as the elimination of cheap and effective fossil-based energy, the outlook for humanity is exceedingly grim. Like communism, the global reset into which the western world is drifting will destroy society. Those who believe in liberal values in the original sense of the term — not the modern socialist connotation — will find themselves welcoming the destruction of the current system before it is evolved any further.</span><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.goldmoney.com/research/goldmoney-insights/the-global-reset-scam">Goldmoney</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-28934762690255074922020-11-13T04:32:00.000-08:002020-11-13T04:32:00.183-08:00The Form of Today’s Monetary Collapse<span style="font-size: large;">The first thing to consider is the current relationship of the quantity of money to the economy. US dollar M3 money supply, the broadest definition of money, has increased along with US GDP: M3 stood at $18.327 trillion last July, while second quarter GDP was estimated at $19.52 trillion. The closeness of the relationship between these two figures is explained by the nominal GDP total being inflated by increases in the money quantity. The match is never perfect, because there is always some consumer expenditure which is subject to estimates, future revisions, or simply not captured by GDP. To these we can add statistical error. Furthermore, at the beginning of the inflation there would have been a base level for GDP when money was sound from which subsequent inflations occurred.<br /><br />The degree of the dollar’s loss of purchasing power is deliberately understated in official statistics. Originally, the policy was to reduce the cost to US and other governments of indexation introduced following the 1970s decade of price inflation. It is remarkable that the statistical suppression of changes in the general level of prices, now adopted in all advanced economies, is rarely questioned. Consequently, the scale of the fall in the purchasing power of fiat currencies has been ignored with some important consequences, at least for governments and their central banks, which are concealing evidence of the failures of monetary and economic policies.<br /><br />Figure 2 compares the cumulative increase in the general level of prices measured by the CPI, and the Chapwood index — comprised of “the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation”. The Chapwood price inflation numbers used in the chart are the arithmetic average of the fifty cities, the last data points being end-June 2020. Additionally, the growth of M3 money supply is included.<br /><br /><div style="text-align: center;"><img height="446" src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-10-15_at_1.48.40_PM.png" width="640" /></div><br />It should be clear that changes in the general level of prices are a theoretical concept which cannot be measured, because it is different for every individual. An average is therefore no more than an indication, even assuming the evidence is not manipulated by vested interests. Bearing this in mind, the cumulative price effect of the official cities’ CPI over the last ten years is for it to have risen by only 19%, compared with the Chapwood index which rose 159%, compounding by about 10% annually. By way of confirmation that the Chapwood figures are closer to the truth, we see that USD M3 diluted the dollar by increasing 109% over the period.<br /><br />The lower increase in USD M3 relative to that of the Chapwood index suggests that as well as the dilution of the dollar’s spending power in a general sense, holdings of money have also been reduced relative to the commonly bought goods in the Chapwood index. In other words, consumers appear to show a relative preference in their spending for their common purchases over their less common purchases. This could be taken to be evidence of the earliest stages of a reduction of money balances in favour of everyday purchases. It is inconsistent with the official story upon which monetary policy is based, whereby the monetary authorities and their epigones delude themselves that price inflation is contained by the two per cent annual target, with some of them even claiming price inflation is banished for ever.<br /><br />Figure 3 further illustrates the ineffectiveness of monetary policy by expressing GDP in 2010 prices adjusted by the CPI (the state’s version of real GDP), by the Chapwood index and finally by M3 money supply.<br /><br /><img height="396" src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-10-15_at_1.49.00_PM.png" width="640" /><br /><br />The monetary authorities claim that before the coronavirus crisis they had stabilised the US economy following the Lehman crisis. Measured by the CPI, by end-2019 the economy had grown by nearly 22% over nine years “in real terms”. But because the CPI is a heavily supressed measure of price inflation, the truth is different. The Chapwood index and USD M3 tell us that adjusted by these measures, GDP has more than halved from $15,241bn to $6,818 and $7,309bn respectively, measured by a base of 2010 dollars.<br /><br />To be clear, GDP is simply a money total of all recorded transactions. It does not tell us anything about their quality, or indicate the degree of economic progress, or the lack of it. As always, there have been winners and losers. We can only conclude in the most general of terms that the contraction of real values has exposed the failure of monetary and economic policies.<br /><br />Where it really matters is for governments, and the purchasing power of the taxes they collect.<br /><br />A modern socialising government never reduces its expenditure, and budget deficits arise as a result of a reluctance to increase taxes to match spending. Prima facie it is evidence of an emerging hyperinflation, in that the decline in the purchasing power of the currency is driving the fall in the real value of taxation receipts, while at the same time it is realised that to raise taxes would be harmful to production, consumption, and therefore government finances.<br /><br />Then came the coronavirus, an unexpected hit to nominal GDP, upon which government tax income depends. And now we have a second covid-19 wave, the economic consequences of which can only be guessed. Let us not forget that before all this happened, last September there was an emerging liquidity crisis evidenced by the failure in the dollar repo market, indicating, in all likelihood, the end of bank credit expansion. And we should also remember that the trade tariff war between the world’s two largest economies brought the growth of international trade to a sudden halt.<br /><br />Anyone with an eye for the economic consequences of all these developments can only conclude that in addition to the already growing gap between government spending and tax receipts, governments are not just having to rescue their tax bases from a one or two-off hit from the coronavirus, but further rounds of inflationary expansions will follow at an increasing pace. Purely in terms of money quantities, hyperinflation is already well entrenched for the US dollar and all other fiat currencies subject to the same political and factual dynamics.</span><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.goldmoney.com/research/goldmoney-insights/hyperinflation-is-here">Goldmoney</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-74433211530818188232020-11-08T04:31:00.008-08:002020-11-08T04:31:57.653-08:00Hyperinflation is Here<span style="font-size: large;">In the last ten years I have waged two crusades to bring attention to issues I believe to be in the public interest. From 2011, I wrote a series of articles about China’s gold policy, which had been accumulating physical gold from as long ago as 1983. The meme that gold was moving from west to east became broadly understood and almost a cliché. The second crusade was to inform the public that the business or trade cycle was only the symptom of a cycle of bank credit, which inevitably ends in a crisis of credit contraction.<br /><br />It is now time for a new campaign, on a subject which I have been writing about in recent months, and that is to inform the wider public that their governments and their fiat currencies are now in a state of hyperinflation. It is not a development on the far horizon as many might think; it is already here.<br /><br /><b>What is hyperinflation?</b><br /><br />To understand why hyperinflation is already with us is to know what constitutes hyperinflation. It is not rising prices, or a condition that exists when prices increase above a predetermined rate: rising prices are the consequence of both inflation and hyperinflation. As Milton Friedman put it, inflation is always and everywhere a monetary phenomenon, though he spoiled it by continuing, “…in the sense it is and can be produced only by a more rapid increase in the quantity of money than in output.”<a href="https://www.goldmoney.com/research/goldmoney-insights/hyperinflation-is-here#_edn1">[i]</a> He was wrong on that last bit, conflating the price effect with the increase in the quantity of money. When even so-called monetarists are imprecise about inflation, let alone hyperinflation, it is hardly surprising public confusion is widespread.<br /><br />There can only be one definition of hyperinflation, and that is the one headlined above, which you won’t find in any textbook. There is even no definition of it in von Mises’s Human Action, only of inflation, and that is more a description than a definition. And since it is a relatively recent phenomenon of unbacked fiat currencies, hyperinflation was never defined separately from inflation by classical economists. The difference between inflation and hyperinflation cannot be distinguished by degree either.<br /><br />Have a look at US M1, the quantity of narrow money in the American economy, shown in Figure 1.</span><div><span style="font-size: large;"><br /><div style="text-align: center;"><img height="383" src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Graphic_25.png" width="640" /></div><br /><br />The progression of annualised monetary inflation from under 6% before the Lehman crisis, to 9.6% subsequently until March this year, and 65% in the thirty weeks since is clear from the chart. If the monetary authorities have the knowledge, the mandate, the authority, the ability and the desire to stop inflating the currency, we would not describe it as hyperinflation, instead deeming it to be no more than a brief period of exceptional inflation before a return to sound money policies.<br /><br />But sound money was emphatically discarded in 1971, when the post-war Bretton Woods agreement was finally abandoned — not that the monetary regime at that time was in any way sounder than Adam’s fig leaf was an item of clothing. For the fact of the matter is that sound money in America was arguably abandoned long ago, with the founding of the Fed at Jekyll Island before the First World War.<br /><br />As a means of funding government deficits, inflation is capable of being stopped by cutting government spending and/or raising taxes. But now, a one-off increase of 65% of narrow money is to be followed by another massive expansion already in the wings. The hope is that that will be enough, just as the original 65% increase in M1 was hoped to be enough to ensure a V-shaped recession would be followed by a return to normality.<br /><br />The early stages of a hyperinflation are always seen by the monetary authorities as the only policy to pursue. They convince themselves that there are either no consequences, or that they can be controlled. An example of the genre is found in a paper by Michael T Kiley, a senior Fed economist.<a href="https://www.goldmoney.com/research/goldmoney-insights/hyperinflation-is-here#_edn2">[ii]</a> In August he concluded that the lack of further room to cut interest rates to deal with the coronavirus requires quantitative easing to a total of 30% of GDP, or $6.5 trillion, to offset the lack of room for manoeuvre on interest rates. Kiley writes that about $3 trillion had been enacted between end-February and end-June, leaving a further $3.5 trillion to come. If we assume the full $6.5 trillion stimulus is enacted by next February, then the increase reflected in narrow money could be to more than double it.<br /><br />Kiley wrote his paper before the second coronavirus wave commenced. He was modelling an economic contraction measured in real GDP of just 10% in the second quarter (actually 9.5% — not to be confused with the annualised rate reported at 32.9%). But, as I pointed out <a href="https://www.goldmoney.com/research/goldmoney-insights/monetary-distortions-of-gdp-in-2021">in last week’s article</a>, with monetary inflation running at such a rate, a dollar last February is not the same as an inflated dollar next February, being diluted on Kiley’s figures by $6.5 trillion. The consequence is some extremely damaging intertemporal shifts, as described in the Cantillon effect, whereby ultimately both productive workers and the poorest in society lose savings, salaries and social security benefits through loss of the dollar’s purchasing power for the benefit of the government, its agencies, and big business.<br /><br />In his economic model, Kiley flattens the Phillips curve, apparently in an attempt to goal-seek a preferred outcome. The Phillips curve is meant to replicate graphically the relationship between inflation and unemployment, the idea being that an increase in price inflation goes along with a reduction in unemployment. Flattening it is the same as assuming that at a deemed level of full employment prices will not rise as much as previously modelled. But it is one thing to forecast such a relationship when the inflation “stimulus” is in the order of a few per cent, when arguably the public is more aware of the stimulation effect of monetary inflation than they are of the dilutionary effect on the money, but it is another matter when it is as dramatic as it is today.<br /><br />We must resist the temptation to accept a mathematical relationship between prices of goods and services and the rate of employment, such as predicted by the Phillip’s curve. Whatever the level of employment, production adjusts because of the division of labour. In their dismissal of Say’s law, modern economists fail to realise that production and consumption broadly march or retreat together. Other than users of currency being temporarily conned by the initial effects of monetary stimulation, there is no enduring relationship between the quantity of money and employment.<br /><br />Errors introduced by the mathematical economists through artifices such as the Phillips curve conceal the consequences of policies based on their forecasts at the outset. Consequently, the recommendations of senior economists at the Fed using economic models based upon macroeconomic assumptions give false comfort to the committees they advise. Furthermore, the annualised rate of the budget deficit since March was about $4.4 trillion, financed entirely through monetary expansion and significantly greater than covered by declining tax income.<br /><br />If these conditions persist in the new fiscal year — which seems increasingly certain, Kiley’s calculation of the further $3.5 trillion stimulus underestimates the problem. According to an op-ed by Allister Heath in today’s Daily Telegraph, Larry Summers, the US economist and arch-inflationist, believes that the cost of covid-19 will reach 90% of US GDP, substantially more than Kiley’s estimate of 30%. Over-dramatic perhaps; but can we envisage that the forthcoming stimulus package, and then undoubtedly the one to follow that, will restore normality and set the budget deficit firmly in the direction towards a balance? If the answer is no, then we already have hyperinflation.</span></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, James Turk's <a href="https://www.goldmoney.com/research/goldmoney-insights/hyperinflation-is-here">Goldmoney</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-53552688430431748512020-10-23T11:21:00.008-07:002020-10-23T11:21:55.104-07:00John Rubino: 2020 Setting Us Up For the Real Crisis That’s Coming<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/GkGNQkz3Clw" width="560"></iframe></div><div style="text-align: center;"><br /></div><span style="font-size: large;">In case you were reluctant to start preparedness steps before 2020, perhaps the COVID-19 lockdown, civil unrest, wildfires, hurricanes, and anticipated presidential election chaos have convinced you that having a “Plan B” might be good idea. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">According to this widely followed guest, we would do well to heed the lessons that 2020 has been providing, since in his analysis we are still facing the most convulsive crisis yet. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">John Rubino, founder of DollarCollapse.com, returns to Liberty And Finance / Reluctant Preppers to answer viewers’ questions and alert us to the critical risks we face in the time ahead. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">John also reveals the truth about gold’s role in banking that’s starting to leak out, even from official sources.</span></div></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.youtube.com/watch?v=GkGNQkz3Clw">Liberty & Finance</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-32386272442209715182020-10-14T06:40:00.012-07:002020-10-14T06:40:00.273-07:00The Relationship Between Inflation and Prices<span style="font-size: large;">Assuming no change in the average cash balances held by a population, over time there must be an inverse relationship between the expansion in the quantity of money in circulation and the diminution of its purchasing power. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">This is unarguable in logic and to argue otherwise is to subscribe to a version of monetary perpetual motion. By the same token, while the effects on individual prices also have to allow for changes in the factors specific to them, the effects of monetary debasement on the general level of prices should be clear. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">Now it is time to introduce a second factor; changes in the average cash balances held by a population.<br /><br />Changes in cash balances are an expression of relative preferences between money and goods. If a population as a whole is satisfied with the stability of money as the medium of exchange, it will be happy to retain balances surplus to its immediate needs. We see this even with inflating currencies, such as the Japanese yen, where irrespective of the level of interest rates monetary expansion merely accumulates as bank deposits. It is unusual for a population to go to the extremes evident in Japan, but equally, a population which realises its currency is declining in purchasing power has every reason to dispose of it in favour of goods, maintaining lower balances in consequence.<br /><br />The complete rejection of a currency as the medium of exchange renders it utterly valueless and is the common outcome to every hyperinflationary collapse. Governments that become ensnared by inflationary financing face the growing certainty of a Venezuelan outcome.<br /><br />For now, monetary authorities around the world are relying on public ignorance about money and the theory of exchange. Those who trouble themselves to consider how their currency’s purchasing power is actually changing will notice how it is declining more rapidly than official statistics say. This is deliberate. After the introduction of widespread indexation in the early 1980s governments devised methods to reduce the costs incurred. Changes in statistical methodology have achieved that, with consumer price indices now entirely suppressed, so much so that central banks claim to be struggling to get the CPI to rise to its two per cent target.<br /><br />The evidence from independent analysts in America such as Shadowstats and the Chapwood Index is that real world prices there are rising at closer to a ten per cent rate and have been for the last ten years. With the FMQ having grown at a monthly compounding annualised rate of 9.6% from the Lehman crisis to the end of 2019, the truth about price inflation appears closer to independent analysts’ calculation than the official CPI. Furthermore, there is little evidence of noticeable change in savings rates or cash hoarding over the period, which would have affected the general level of prices.<br /><br />The first to realise that the purchasing power of a currency is declining and will continue to do so are usually those who own it for reasons other than as a normal medium of exchange. These are foreign holders who have accumulated currencies other than their own government’s fiat money as a result of trade and have chosen to retain it instead of selling it in the foreign exchanges. And there is a second group of foreign holders which has diversified investment portfolios into foreign financial markets.<br /><br />These groups are primarily sensitive to external economic and financial factors, such as changes in the outlook for trade, financial asset values and their requirements to hold liquidity in their own currencies. It stands to reason that a state that manages to run continuing deficits on the balance of trade and retain an accumulation of foreign ownership of its currency is vulnerable to changes in international sentiment. This is the situation the dollar finds itself in, with US Treasury TIC figures revealing foreigners own financial securities worth approximately $20.6 trillion, and additionally bank deposits and commercial and US Treasury short-term bills totalling $6.15 trillion. In other words, foreign ownership of the dollar is 130% of the CBO’s estimate of current US GDP.<br /><br />The accumulation of foreign dollar positions was due to a number of factors: the dollar is the international reserve currency, trade expectations were of continual global growth, the perpetuation of US trade deficits, increasing portfolio investment and a rising dollar. Global trade is now contracting, and the dollar has begun to decline. Commercial priorities are changing from global expansion to conserving capital.<br /><br />With the global economic outlook deteriorating rapidly, the dollar is notably over-owned by foreigners, which is not counterbalanced by American ownership of foreign currencies. Most of US foreign financial interests are denominated in dollars with exposure to foreign currencies remarkably small at $714bn at end-June.<a href="https://www.goldmoney.com/research/goldmoney-insights/the-emerging-evidence-of-hyperinflation#_edn2">[ii]</a><br /><br />China has already declared a policy of reducing her dollar investments in US Treasury bonds and is selling her dollars to buy commodities. Few realise it, but China is doing what ordinary people do when they begin to abandon a currency — dumping it for tangible goods which will cost more in future due to the dollar’s declining purchasing power. And as the dollar’s purchasing power declines measured in commodities more nations are likely to follow China’s lead.<br /><br />When you see a chart of the expansion of money supply, as illustrated in Figure 2 below and combine that with a falling dollar in the foreign exchanges, it is only a matter of time before increasing members of the domestic population begin to follow the foreigners’ lead.<br /><div style="text-align: center;"><img src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-10-01_at_12.56.40_PM.png" /></div><br />Compared with the past, there is a generation of millennials which through their understanding of cryptocurrencies has learned about the debasement of fiat currencies by their governments. It remains to be seen whether this knowledge will bring forward the general public’s understanding of monetary affairs for an earlier abandonment of money for goods.</span></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, James Turks <a href="https://www.goldmoney.com/research/goldmoney-insights/the-emerging-evidence-of-hyperinflation">Gold Money</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-20203857990407475802020-10-09T06:38:00.000-07:002020-10-09T06:38:00.997-07:00Why Quantitative Easing is Inflationary<span style="font-size: large;">On 23 March the Federal Open Markets Committee (FOMC) announced unlimited QE for both US Treasury stock and agency debt as well as however much liquidity commercial banks need.<a href="https://www.goldmoney.com/research/goldmoney-insights/the-emerging-evidence-of-hyperinflation#_edn1">[i]</a> While judging the expansion of the budget deficit to be inflationary, it is only inflationary to the extent that it is not financed by savers, either increasing the proportion of their savings relative to immediate spending, or to the extent they divert their savings from other investment media. In the latter case, citizens have been committing their savings more to equity markets than bond markets. The returns for discretionary portfolios managed on the public’s behalf have also found better returns in equities than in government and corporate bonds, though when assessing increasing investment risk Treasury stock is seen to be a safe haven in bond portfolios. Pension funds and insurance companies also allocate cash flow to US Treasuries and to the extent that this is the case, the issuance of further government debt is non-inflationary.<br /><br /><br />Furthermore, if a bank does not increase its balance sheet by expanding bank credit, its participation in the Fed’s QE programme is not inflationary either. For this to be the case, it would have to sell existing stock, call in loans or subscribe on behalf of clients.<br /><br />By seeing them through a Nelsonian blind eye these factors give some encouragement to the Fed in funding the Treasury through QE, particularly since the statistics reflect a jump in savings, as the following chart from the St Louis Fed illustrates.<br /><br /></span><div style="text-align: center;"><span style="font-size: large;"><img src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-10-01_at_12.55.46_PM.png" /></span></div><span style="font-size: large;"><br />More correctly, the chart reflects the fall in spending when people locked down, as well as the $1,200 stimulus checks distributed to households at end-April, which marked the peak in the chart. Since then, there has been some downward adjustment, partly because some spending has returned, and the backlog of essential spending, such as property maintenance, is being addressed.<br /><br />The evidence is not yet strong enough to claim this statistical shift in savings habits is permanent. Furthermore, being calculated as the percentage of personal disposable income that is not spent and given the high levels of personal debt throughout the population, much of these so-called savings will have disappeared into credit card and debt repayments. It is more likely that with rising unemployment and roughly 80% of the American salaried population living paycheque to paycheque, that far from there being a higher savings rate, personal finances have deteriorated so much that money is being withdrawn from savings on a net basis, to acquire life’s essentials. In fact, the savings rate is one of those unmeasurable economic concepts, and the reality is that Joe Average is worse off in today’s contracting economy and is drawing down on savings in order to subsist.<br /><br />The non-inflationary element of QE then boils down roughly to increases in insurance company and pension fund investments in Treasury stock and the increase in bank holdings and reserves at the Fed not funded through the expansion of bank credit. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">But this creates another factor: the extent to which existing bond investments are sold in order to subscribe for Treasury stock inevitably undermines corporate bond markets and their ability to satisfy their funding requirements. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">And it is for this reason the Fed has appointed BlackRock to spearhead its purchases of corporate debt to ensure liquidity is available for those markets and to put a cap on risk premiums. Therefore, where banks do not expand credit to buy new Treasury stock, the Fed steps in to compensate with additional monetary inflation.<br /><br />It has been necessary to go into the mechanisms behind funding government deficits in some detail to establish the inflationary consequences of QE, and to refute claims by monetary authorities and others that QE is either not or only partly inflationary, and so is consistent with the Fed’s mandate. No, with the exception of insurance and pension fund subscriptions, the Fed’s QE is almost pure monetary inflation.</span></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, James Turk's <a href="https://www.goldmoney.com/research/goldmoney-insights/the-emerging-evidence-of-hyperinflation">Goldmoney</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-29109825218435933722020-10-05T06:38:00.003-07:002020-10-05T06:38:14.865-07:00The Emerging Evidence of Hyperinflation<span style="font-size: large;">No doubt, the reluctance to reduce, or at least contain budget deficits is ruled out by the presidential election in November. But whoever wins, it seems unlikely that government spending will be reined in or tax revenue increased. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">For the universal truth of unbacked state currencies is that so long as they can be issued to cover budget deficits they will be issued. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">And as an inflated currency ends up buying less, the pace of its issuance all else being equal will accelerate to compensate. It is one of the driving forces behind hyperinflation of the quantity of money.<br /><br /><br />Since the Lehman crisis in August 2008, the pace of monetary inflation has accelerated above its long-term average, and the effect is illustrated in Figure 1 below.<br /><br /><div style="text-align: center;"><img src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/XAU_PHOTO.png" /></div><br />Figure 1 includes the latest calculation of the fiat money quantity, to 1 August 2020. FMQ is the sum of Austrian money supply and bank reserves held at the Fed — in other words fiat dollars both in circulation and not in public circulation. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">Because commercial banks are free to deploy their reserves within the regulatory framework, either as a basis for expanding bank credit or to be withdrawn from the Fed and put into direct circulation, whether in circulation or not bank reserves at the Fed should be regarded as part of the fiat money total.<br /><br />It can be seen that the rate of FMQ’s growth was fairly constant over a long period of time — 5.86% annualized compounded monthly to be exact — until the Lehman crisis when the rate of growth then took off. Since Leman failed in 2008 FMQ’s total has grown nearly 300%.<br /><br />Since last March growth in the FMQ has been unprecedented, becoming almost vertical on the chart, triggered by the Fed’s response to the coronavirus. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">And now a second wave of it has hit Europe and the early stages of a resurgence appears to be hitting the land of the dollar as well. With lingering hopes of a V-shaped recovery being banished, a further substantial increase in FMQ is all but certain.<br /><br />Already, FMQ exceeds GDP. If we take the last time things were normal, say, in 2005 when the US economy had recovered from the dot-com crash and before bank credit expansion and mortgage lending become overblown, we see that in a functioning relationship FMQ should be between 35%—40% of GDP. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">But with the US economy now crashing and FMQ accelerating, FMQ is likely to be in excess of 125% of GDP in the coming months.<br /><br />What is the source of all that extra money? It is raised through quantitative easing by the central bank in a system that bends rules that are intended to stop the Fed from just printing money and handing it to the government. Yet it achieves just that. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">The US Treasury issues bonds by auction in the normal fashion. The major banks through their prime brokers bid for them in the knowledge that the Fed sets the yield for different maturities through its market operations. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">The Fed buys Treasury bonds up to the previously announced monthly QE limit, only now there is no limit, giving the primary brokers a guaranteed turn and crediting the selling banks’ reserve accounts with the proceeds.<br /><br />This arm’s length arrangement absolves the Fed of the sin of direct money-printing but evades the rules by indirect money-printing. The Treasury gets extra funding through this roundabout arrangement. Participating banks generally expand their bank credit to absorb the new issue, which they then sell to the Fed, which in turn credits the banks’ reserve accounts. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">The Treasury gets the proceeds of the bonds to cover the deficit in government spending, and the banks get expanded reserves. The Fed’s balance sheet sees an increase in its liabilities to commercial banks and an increase in its assets of Treasury bonds. The Fed also funds agency debt in this manner, mostly representing mortgage finance.<br /><br />Under President Trump, the Treasury’s current deficit initially expanded as a planned supply-side stimulus to the US economy to the tune of just over a trillion dollars before covid-19 created additional financial chaos. Businesses experienced severe dislocation and have suffered a widespread collapse. Consequently, and together with the direct injection of money into each household, the Congressional Budget Office revised its trillion-dollar deficit for the financial year just ended as the following screenshot from its website indicates:<br /><br /><img src="https://www.goldmoney.com/images/media/Images/Articles/Tutorials/Screen_Shot_2020-10-01_at_12.54.33_PM.png" /><br /><br />Note how half the government’s income arose from revenues and half is covered by sales of government debt to the public (i.e. the commercial banks), which at the end of fiscal 2020 (ended yesterday) is estimated to total $20.3 trillion. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">But given that the first half of that fiscal year was pre-lockdown and the annualized rate of the deficit at that time was about a trillion dollars, simplistically the annualized rate of the deficit’s increase since last March is in the region of $4.4 trillion. </span></div><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">Incidentally, the CBO’s economic projections look too optimistic given recent events, in which case budget projections for this new calendar year will be adjusted for considerably lower revenue figures, and significantly greater outlays at the least.</span></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, James Turk's <a href="https://www.goldmoney.com/research/goldmoney-insights/the-emerging-evidence-of-hyperinflation">Gold Money</a></i></div></div></div></div></div></div></div></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-44662060860849001922020-09-14T11:47:00.002-07:002020-09-14T11:47:22.444-07:00Gold & Silver Unstoppable: China Dumping USD For Real Stuff Right Now<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/Zg51Wwdpq3U" width="560"></iframe></div><div style="text-align: center;"><br /></div><span style="font-size: large;">Respected analyst Alasdair Macleod, head of research at Gold Money, who has gone out on a limb to declare we are ripe for a banking crisis very soon, and a fiat currency failure by the end of the year, returns to Liberty and Finance to report that China is already dumping the Dollar and buying commodities hand over fist to get rid of its dollars before everyone else realizes the USD is accelerating into failure. </span><div><span style="font-size: large;"><br /></span></div><div><span style="font-size: large;">Alasdair further sees the flagship monetary metals will be unstoppable in the face of the inescapable financial corner the Fed has backed into.</span></div><div><span style="font-size: large;"><br /></span></div><div><i>- Source, <a href="https://www.youtube.com/watch?v=Zg51Wwdpq3U">Liberty & Finance</a></i></div>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-45572528061381199482020-09-06T10:41:00.000-07:002020-09-06T10:41:00.402-07:00It All Goes Back To Gold and Silver<div style="text-align: center;">
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N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.comtag:blogger.com,1999:blog-4309675822613403941.post-12360488142484653322020-09-02T10:39:00.000-07:002020-09-02T10:39:01.089-07:00James Turk: The Existing Monetary Order is Not Going to Survive<br />
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<br /><span style="font-size: large;">Paul Buitink talks to James Turk, founder of GoldMoney, about the current economic crisis. <br />James thinks it will inevitably lead to a collapse of confidence in fiat money and hence hyperinflation. </span><br />
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<span style="font-size: large;">James also believes companies should just be able to go bankrupt. </span><br />
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<span style="font-size: large;">He criticizes fiat currencies and calls upon people to return to sound money since corrupt money has corrupted the system. </span><br />
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<span style="font-size: large;">The existing monetary order is not going to survive. He believes in buying gold and silver to protect your purchasing power. Gold needs to be in the hands of the people, not the central banks he says. He also likes Bitcoin better than fiat.</span><br />
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<i>- Source, <a href="https://www.youtube.com/watch?v=zCNQEDGNF5k">Reinvent Money</a></i>N/Ahttp://www.blogger.com/profile/11793480571592168229noreply@blogger.com