Geo-Politics

Why We Need To End The Power Of… The Banks.

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Bitcoin

The whole of not just American life, but the lives of those in the West, is predicated on cheap energy, and lots of it. Energy is a substitute for human Labour, so its cost and value, should reflect the human labour required to produce it, and of course the cost of wages that is provided by that labour. But, when you have a political and economic system, that means that SOME people can get that capital essentially at ZERO cost, because they have access to the printing presses that the major Central Banking institutions provide, you skew the system, and not in a good way.

The US is spending more than it produces, and using fraudulently produced currency, to pay the difference…
In 2007, Agora Finance stated:

“Our current military adventures in the Middle East, are predicated largely on keeping the old arrangements going. We’re in Iraq because we built Dallas, Atlanta, Orlando, Houston, Phoenix, Los Angeles, and Long Island the way we did, and the only way we can hope to keep these organisms going even a little while longer is to keep open our oil supply line to the Persian Gulf. The truth is, these organisms will not survive the oil-scarcer future in the form they’re in. The American people need to come to grips with this. No amount of chest-thumping around the globe will change it. In any case, sooner or later we’ll exhaust our military and bankrupt ourselves trying to project our influence into these places overseas – meaning, sooner or later we will withdraw back into our own hemisphere. I wonder if Wolf Blitzer of CNN will ask any of the candidates, what happens then?”

“A basic rule of reality is that you can’t get something for nothing. Sooner or later the financial sector will have to come to grips with this rule, meaning that that debt is not wealth and the revolving reallocation of debt in the form of credit does not amount to wealth creation.”

Of course the money that these Bankers create, funds the political processes that promote the interests of Capital over Labour, when in reality, Capital is inert. It is only when combined with Labour, that it can generate wealth. The trouble is, those in power for the last 40 years, have duped the rest of society, and I count myself amongst them, into believing that only by enabling and protecting the rights of capital, can we have a just society, and a bustling economy. I now realise that it was just a ruse, so that the Bankers could dominate the planet… WE are ruled by the Bankers

How so?

Read On…

QUOTES ON BANKING AND THE FEDERAL RESERVE

 

“By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.”

– Lord John Maynard Keynes, “Economic Consequences of Peace”

“The eyes of our citizens are not sufficiently open to the true cause of our distress. They ascribe them to everything but their true cause, the banking system; a system which if it could do good in any form is yet so certain of leading to abuse as to be utterly incompatible with the public safety and prosperity.”

– Thomas Jefferson

“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented.”

– Major L.B.Angus

Congressman Patman: “Mr. Eccles, how did you get the money to buy those two billions of government securities?” Eccles: “We created it.” Patman: “Out of what?” Eccles: “Out of the right to issue credit money.”

– Testimony of Marriner Eccles, Chairman of the Federal Reserve Board, before the House Banking and Currency Committee, 1941

“Every circulating Federal Reserve Note represents in actuality a one dollar debt to the Federal Reserve system.”

– Money Facts, House Banking and Currency Committee

“Every Congressman, every Senator knows precisely what causes inflation…but can’t, won’t support the drastic reforms to repeal of the Federal Reserve Act because it could cost him his job.”

– Robert A. Heinlein, Expanded Universe

“Every effort has been made by the Federal Reserve Board to conceal its powers, but the truth is that the Federal Reserve System has usurped the government. It controls everything in congress and it controls all our foreign relations. It makes and breaks governments at will.”

– Louis McFadden, Chairman of the House Committee on Banking and Currency

“I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power of money should be taken away from the banks and restored to the people to whom it properly belongs.”

– Thomas Jefferson

“If all the bank loans were paid up, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial banks for our money. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp upon the picture, the tragic absurdity of our hopeless position is almost incredible – but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and the defects remedied very soon.”

– Robert H. Hemphill, Federal Reserve Bank of Atlanta

“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.”

– United States Senator Barry Goldwater

“The financial system has been turned over to the Federal Reserve Board. That board administers a finance system by authority of a purely profiteering group. That system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money. This (Federal Reserve) Act establishes the most gigantic trust on Earth. When the president signs this bill, the invisible governments by the monetary power will be legalized. The people may not know it immediately but the day of reckoning is only a few years removed, the worst legislatives crime of the ages perpetrated by this banking bill.”

– Charles A. Lindbergh, Representative, MN

“Some people think the Federal Reserve Banks are the United States government’s institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers.”

– Congressional Record 12595-12603 June 10, 1932

“The issue which has swept down the centuries and which will have to be fought sooner or later is the People vs. The Banks.”

– Lord Acton, Lord Chief Justice of England, 1875

“The central bank is an institution of the most deadly hostility existing against the principles and form of our Constitution. I am an enemy to all banks discounting bills or notes for anything but coin. If the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.”

– Thomas Jefferson.

“The Federal Reserve Banks are not federal instrumentalities.”

– Lewis vs. United States 9th Circuit 1992

“The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers.”

– Congressman Louis T. McFadden

“The Federal Reserve bank buys government bonds without one penny.”

– Congressman Wright Patman, Congressional Record, Sept 30, 1941

“The few who understand the system, will either be so interested in its profits, or so dependent on it’s favors, that there will be no opposition from either class.”

– Rothschild Brothers of London, 1863

“The regional Federal Reserve banks are not government agencies. …but are independent, privately owned and locally controlled corporations.”

– Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

“This Federal Reserve Act establishes the most gigantic trust on earth. When the President Wilson signs this bill, the invisible government of the monetary power will be legalized. The worst legislative crime of the ages is perpetrated by this banking and currency bill.”

– Charles A. Lindbergh, Sr. , 1913

“The Federal Reserve is answerable to no one.”

– Ronald Reagan

“You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out. If the American people only understood the rank injustice of our money and banking system, there would be a revolution before morning.”

– Andrew Jackson

“When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money.”

– “Putting it Simply”, Boston Federal Reserve Bank

“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. They are not government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers. This evil institution has impoverished the people of the United States and has practically bankrupted our government, and it has done this through the corrupt practices of the moneyed vultures who control it.”

– Senator Louis T. McFadden, Chairman US Banking & Currency Commission

“The principle we must keep in mind is that two people cannot both be the exclusive owner of the same thing at the same time. Yet fractional reserve banking operates on the theory that bank account holder A and borrower B can both own the same money at the same time. This practice is just as fraudulent as selling two buyers the same vacation home and giving them both exclusive title to the home, hoping that they don’t both show up to use it the same weekend. With fractional reserve banking, titles to money (gold) are spuriously created, meaning there are more titles to property than there is actual property. In fact, no new money is created, but the number of titles to existing money is expanded. And it is in this manner that the value of the dollar is diminished.

In the absence of a gold standard, the crime is exceeded today to the point of absurdity, as only titles themselves are traded with no tie to any real property whatsoever. We have been swindled.” – Unknown

“We shall have world government whether or not you like it… the only question is whether or not it be by conquest or consent.”

– James Warburg, Rothschild Banking Agent, 1950

“If the American public knew how the money system really worked, I believe we would be chased down the streets and strung up before morning.”

– Henry Ford

“There are two methods or means, and only two, whereby man’s needs and desires can be satisfied. One is the production and exchange of wealth; this is the economic means. The other is the uncompensated appropriation of wealth produced by others; this is the banking and political means.”

– Albert Jay Nock

“All the perplexities, confusions, and distresses in America arise, not from defects in the Constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit, and circulation.”

– John Quincy Adams

“Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them but leave them the power to create money, and, with the flick of a pen,(or Switch [Ed:]) they will create enough money to buy it back again. Take this great power away from them and all great fortunes like mine will disappear and they ought to disappear, for then this would be a better and happier world to live in. But, if you want to continue to be the slave of the bankers and pay the cost of your own slavery, then let the bankers continue to create money and control credit.”

– Sir Josiah Stamp, President, Bank of England (2nd richest man in England)

“But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them. Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.”

– George Washington in a letter to Jabez Bowen, Rhode Island, Jan. 9, 1787

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”

– James Madison

“I am afraid that ordinary citizens will not like to be told that the banks can, and do, create and destroy money; and they who control the credit of the nation direct the policy of governments and hold in the hollow of their hands the destiny of the people.”

– R. McKenna, Chairman, Midland Bank London (Now part of HSBC. [Ed.])

“We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.”

– Winston Churchill

“If two parties, instead of being a bank and an individual, were an individual and an individual, they could not inflate the circulating medium by a loan transaction, for the simple reason that the lender could not lend what he didn’t have, as banks can do. Only commercial banks and trust companies can lend money that they manufacture by lending it.”

– Professor Irving Fisher, Yale University, in his book “100% Money”

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists tirades against gold. Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.”

– Alan Greenspan, Gold and Economic Freedom

“It is absurd to say that our country can issue 30 million dollars in bonds and not 30 million dollars in currency. Both are promises to pay, but one promise fattens the usurer and the other helps the people”.

– Thomas Edison

“The actual process of money creation takes place primarily in banks. Bankers discovered that they could make loans merely by giving their promise to pay, or bank notes, to borrowers. In this way banks began to create money. Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could ‘spend’ by writing checks, thereby ‘printing’ their own money.”

– Modern Money Mechanics, Federal Reserve Bank of Chicago.

“The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.”

– Abraham Lincoln

“Money is not based on gold anymore; money is only an idea. Ideas are not scarce. There should be no shortage of money to lubricate the gears of commerce any more than there should be a shortage of imagination. Today money is created on computers and paper, and since it is so easy to create, no one should have a right to charge interest on its creation. Yet, that is what the Federal Reserve System does – loans money to the people, charges interest on it, and puts the working public into debt just for being given permission to build for itself its own prosperity.” –

“Neither paper currency nor deposits have value as commodities, intrinsically, a ‘dollar’ bill is just a piece of paper. Deposits are merely book entries.”

– Modern Money Mechanics Workbook, Federal Reserve Bank of Chicago, 1975

“Permit me to issue and control the money of a nation and I care not who makes its laws.”

Mayer Amschel Rothschild, founder of the Rothschild international Banking Dynasty, 1790

“The youth who can solve the money question will do more for the world than all the professional soldiers of history.”

– Henry Ford Sr.

“There is no more direct way to capture control of a nation than through its credit and money system.”

– Phillip A. Benson, President of American Bankers’ Association, 1939

“We fix the price of gold and silver to make them valuable or not.”

– J. P. Morgan, in a letter to his son

“Our goal is gradually to absorb the wealth of the world.”

– Cecil Rhodes, “The secret banking cabal”

Watch a little bit of history here…

But that doesn’t tell the whole story… THAT is told here below…

The Bankers finance the Oil business, and OIL is where the problem is. It takes HUUUGE amounts of capital to find, drill, capture, transport, crack into its distillates, and deliver that distillated fuel to thousands of locations across the west so that vehicles of all shapes and sizes and their economies can run.

And the solution is in that last video…

Former President Barack Obama asked Americans in an Oval Office address to accept that the United States is running out of places to drill for oil. President Obama said in his first live televised address from the Oval Office that:

“For decades we have known the days of cheap and accessible oil were numbered. For decades we’ve talked and talked about the need to end America’s century long addiction to fossil fuels and for decades we have failed to act with the sense of urgency that this challenge requires.”

The US government’s claim that the World is running out of oil was made to drive up the prices, to make it viable to frack at home, so that they could wage their war in the middle-east. Higher gas prices means bigger profits for US oil companies. Just look at the Fortune 500 list of a few years ago – Exxon Mobil, Chevron and Conoco-Phillips were number 2, 3 and 4 respectively. The world is not running out of oil we are being fleeced by the oil companies. With the technology readily available today – specifically liquid to gas vapour technology – they are also wasting precious oil.

“Governments and the national oil companies are obviously controlling about ninety per cent of the assets. Oil remains fundamentally a government business. While many regions of the world offer great oil opportunities, the Middle East with two thirds of the world’s oil and the lowest cost, is still where the prize ultimately lies, even though companies are anxious for greater access there, progress continues to be slow.”

– Dick Cheney speech at the Institute of Petroleum Autumn lunch, 1999.

If you were to incorporate vaporizing technology into the manufacturing of a new ultra fuel efficient car those cars could travel a hundred times farther on one gallon of liquid fuel. On average the fuel efficiency of most cars on the road today is approximately 20-30mpg (US. Gallons). 20 mpg x liquid to vapor conversion factor of 160 = 3200 mpg.

I wonder if Henry Ford, perhaps had shares in oil companies? If so, then perhaps he had a disincentive to produce cars that were fuel-efficient, and as such may even have attempted to bury technology, that would make his cars either less competitive, or reduced demand for the product of one of his sources of income?

However, the quote above by Henry Ford about Banks and the money system, has been solved by a man known only as: Satoshi Nakamoto. He has never been identified, but it is presumed, he created the crypto-currency, called Bitcoin. Bitcoin is a way of you becoming your own Banker, your own Financier, and Sovereign. YOU can be free from being controlled by Bankers. YOU can be King of everything you work for and get rich in the process. As long as others accept your crypto-currency.

Many companies operate in this sphere, but, one company mines for Bitcoin, Litecoin, and 9 others using hardware and software systems, and encrypted software, using the strongest systems. And, for the price of an e-mail address (and a confirmation) set up 11 on-line crypto-currency accounts, and make an initial deposit, and subsequent daily deposits for FREE for you… Their plan is to become a crypto-currency exchange, and thus make money that way, but by then, the value of Bitcoins could be in the tens of thousands.

One Bitcoin has gone from 5 cents ($0.05) to now (August 8th, 2017) over $3,000 over the time since its initial creation, though the price varies, sometimes a lot but, each time it falls, it rises again, and gets ever more valuable.
Because the Banks, haven’t yet figured out how to control the price, and because there will only ever be 21,000,000 bitcoins, the value of each one could rise exponentially.

I can’t give you the whole story here, but I can give you a link to help you get set up with a free account, and get daily deposits.

(HERE ===>>> Https://www.qoinpro.com/)

IF you don’t trust the Crypto-currency sphere, and you haven’t got GOLD or Silver yet, then the coming crash (the fall that JP Morgan spoke of) will finally convince you that we cannot go on with this Paper and Debt Paradigm. The Banks and Governments want to trick us into a world where digits on a computer screen are our only form of money, and those under 40 and even many above that age, that should know better seem to not care. But when The ATMs Go Dark (to borrow a phrase from Bill Bonner writer and publisher), you and your money will be separated from one another – perhaps permanently and then you WILL care.

Get Gold, Silver and Crypto to buy your Gold and Silver with, time is short. I suspect by this time next year, the dominoes will have begun to fall.

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Is the Swamp being drained?

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Scales Of Justice
This week, we learned that James Comey – U.S. F.B.I. director heard those immortal words from reality star, President Donald J. Trump – “You’re Fired!”

Comey came to prominence over the Clinton e-mail scandal, but now he’s famous for a different reason.

It has been discovered, that Comey, was formerly a director of the British and Hong-Kong based bank – HSBC plc.

Comey, was at this particular bank, when it was also discovered from four interviews with John Cruise – former Senior Vice President at HSBC Bank, that HSBC was used to launder, terrorist, and Mexican drug cartel money, which ended up in the Clinton Foundation, which in turn, ended up in the Clinton Presidential Campaign Fund, and tacit approval for this was given by James Comey and the board.

Does that not strike you as coincidental?

Former Attorney General Angela Lynch, was given the evidence by Cruise, and she locked him out of her office, despite the fact the evidence was overwhelming… This would suggest that Lynch, Clinton and Comey, are guilty of obfuscation, or corruption and obstruction of justice.

Clinton, Comey and Lynch, therefore, are essentially joined at the hip, and if any arrest warrants are issued for Clinton, then Lynch and Comey, are also possibly in the frame.

Clinton, who set-up a private e-mail server, and thus was guilty of dereliction of her oath of office for this, for failure to secure her secret e-mails, led to her deleting over 30,000 emails when anonymous agents hacked that server, and that in turn, led to the Pizzagate story, heard throughout the internet some months ago – though the story is, that 65,000 emails were stolen and leaked.

This also suggests that Comey, Clinton, and Lynch are tied together not only in the money-laundering story, but in the recent paedophile ring story, that swirled around the political and financial world earlier in the year.

Trump, allegedly fired Comey, because he allegedly lied regarding Anthony Weiner and Huma Abedin’s e-mails, who are friends of the Clintons, and were involved in her campaign organisation. Though, that’s not the story that the MainStream Media got told – “He wasn’t doing a good job” is what they were told, as Trump, not wishing to kick a man when he’s down, omitted the real reason. Republican, House speaker, Paul Ryan defended Comey’s dismissal, saying that the former director had lost the confidence of Democrats, Republicans, and the President. “It is entirely within the president’s authority to relieve him…” he said.

Weiner you may remember, was disgraced because he sent revealing images of himself, to a young woman. Weiner’s and the other e-mails, are circumstantial evidence in the Pizzagate story too, that Hilary and Husband, were allegedly involved in moving children from Haiti for elusive paedophiles. Huma Abedin, was born into a muslim family with an illustrious background. Her father was a professor at the Institute of Muslim Minority Affairs – which he founded, while her Mother ran a journal, pushing the Muslim Brotherhood line in London. Saleha Abedin, also sits on the Presidency Staff Council of the International Islamic Council for Da’wa and Relief, a group that is chaired by the leader of the Muslim Brotherhood, Sheikh Yusuf al-Qaradawi. Whle Huma, worked for this publisher for 13 years as an Associate Editor, while working as an intern at the Clinton White House, being introduced to Ms Clinton, and before becoming involved in the whole Clinton donor – “Pay to Play”, and pizzagate/missing e-mails scandal.

Of course, Comey re-opened up the Clinton allegations just a few days before the final presidential vote. He then suggested that the FBI had looked into those missing e-mails, and found that there had been no loss of secrets… Which suggests he is either a quick reader or he has a huge team of people that are not on the books…

Was this to kill the story, that had been swirling for weeks about those e-mails?

Catherine Austin-Fitts, former Housing and Urban Development Secretary now runs her own research and publishing house, publishing the Solari report, and in an interview with Greg Hunter, ex mainstream media investigative journalist, who now runs his own show, via his You-Tube channel, revealed the mess that the U.S. has got itself into.

This interview, built on another interview she did with Alex Jones of INFOWARS.COM, and stated “the U.S. launders $500billion to $1 Trillion of dirty money.” and the tax and financial systems, are supporting two cultures – the first the normal business of government, but the second is a secret cabalistic, financial system that supports war and militarism worldwide. She went on to say that the machinery of government is draining the President.

Swamp-Draining

Meanwhile, over at the World Bank, Karen Hudes, who was Legal Counsel for the World Bank Group for almost 20 years, was fired after allegedly whistleblowing because of corruption at the Bank, but has recently been re-appointed after she bought a bond, and thus became a client lender to the Bank, and because of her inside knowledge threatened to sue the Bank, and has been using the knowledge gained in the years since her dismissal, to dig deeper into the corruption at the Fed, SEC, FBI, Media Conglomerates, U.S. Secret Service and the World Bank.

Karen Hudes, has been on a crusade ever since she was dismissed. Her tenacity and drive to ensure that legal and financial compliance is ensured, and that those organisations who are supposed to police such institutions, are actually doing their job is positively herculean..

She has written to numerous National, International and State legislatures and Attorneys General, to ensure that there are people who realise the extent of the corruption, and the consequences of their inaction.

But also, here a time of reflection and study discovered that America is now, NOT a Constitutional Republic, but a Corporation, incorporated in 1871, that owes its fealty to the Vatican, via the City of London Corporation, which itself, was incorporated by the Vatican in 1855.

https://s3.amazonaws.com/khudes/Two_Constitutions_in_US.pdf

The UK too, it appears has also been incorporated, making us all serfs, or employees of the corporation.

But as Catherine Austin Fitts, states, and Jeremy Corbyn appears to want, ideology gets in the way, of the general public, achieving the nirvana they seek.

Don’t forget to like this, and if you want to share this content, please identify us as your source.

Global Capitalism, in the Age of No Capital

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DollarsThis piece began out of musings on how the current world economic system, could be overturned (or if we were starting from a clean slate) beginning with a new system. to develop a system, that serves everyone.

Some people have been speaking of the end of Capitalism, as though what we have now is Capitalism.

(Like HERE in the UK Guardian)

https://www.theguardian.com/books/2015/jul/17/postcapitalism-end-of-capitalism-begun.

But, I just think many people don’t really understand what Capitalism is…

The word, “Capitalism”,  derives from the word “Capital”.  This word is just a posher, more accountant friendly version of the word for “savings”.  And to have savings, you have to have a monetary system, that means that the money in everyday use (currency) retains its value over very long periods of time, and is garnered from the excess production by workers, or businesses who save that money.

This money can then be pooled, typically by Banks in individual savings accounts, to allow larger projects to be funded, and corporations to borrow this, to grow their business, or to finance those larger projects.

Of course, there can be savings made by corporations too, who produce in excess of current demand, and this “Retained Earnings” to use accountant speak, is then available for investment in new products or services, which adds value to the business, and enriches the lives of the many.

But, going back over 45 years to the 1970s, when I was a teenager, and just starting out in life, there were two forms of accounts. The type of account where money was deposited for immediate use (a current account) and money that was “saved for a rainy day” and was typically deposited into a “Savings Account”.  In some instances, these were 90 day accounts.  These accounts paid a higher rate of interest, than normal savings accounts, which were called “time deposits”, because these funds were deposited for a period of time – in this case 90 days.

That meant that the depositor, had to give 90 days’ notice, to get access to their savings, or forfeit interest earned.

However, back on 15th August, 1971, the last link between real money (Gold and Silver) was severed, when Richard Milhous Nixon, President of the U.S., closed the “Gold Window” temporarily, which meant that foreign nations could no longer demand Gold in exchange for dollars at the Bretton Woods rate of $35.00 for 1 oz of Gold.

That day ushered in Corporataucracy, though we didn’t realise it at the time.  In a world where a Bank can just press a few keys on a computer, or have its Central Bank (owned by these ultra-large corporate banks) create funds out of thin air by “Computer Keystrokes”, or the “Printing Press”, the large corporations and governments, can borrow increasingly larger sums of currency, without others having to make those savings out of current production or consumption.   This disconnect, means that current consumption, does not have to be forgone to pay for some new project, which reduces the need for savings – but also reduces interest rates, as capital is no longer needed, but it also tends over time to lead to increasing concentration of the means of production, into the hands of those with access to this line of credit, and the desire for huge capital sums.

The rise of these mega-corporations like Apple, Google, Facebook, Uber, Walmart, and here in the UK, BAe, TESCO, Sainsbury’s, Asda, and Morrisons, have all risen, by building large concentrated infrastructure, which is capital intensive.  Most of these corporations can borrow large sums cheaply, because their revenue streams, are constant, and thus they quickly create surpluses in their respective bank accounts.

For these large corporations, that money going into their current accounts, which is vulnerable to loss – IF – their Bank has financial difficulties so needs to be used or given back to shareholders, but is vulnerable, until such time..  So for many companies, this almost forces them to invest in newer premises, and growth in newer overseas markets, to use that currency, or risk financial loss as it sits there earning next to zero interest.

The alternative would be to return that surplus to the investors, which would raise share-prices, and distribute income, but in a world where money is too cheap because it is limited only by the bank’s willingness to hit the right keys on their computers, corporations who have large and dominant shareholdings by the families that created them, have little need for raising risk capital from shareholders, and thus the risk is transferred from the company, (and its shareholders) to the lending institution, while the share price rises, increase the power and wealth of these family shareholders. VW/Audi, Porsche, TESCO, Morrisons, and Sainsbury, are all businesses, where the original family owners are still large shareholders of the business. This is particularly true where the huge sums borrowed jeopardize the stability of the Bank doing the lending and a Black Swan event places a strain on the Banking system.

This risk, is later transferred to the State as Banks use their own freely created Capital, to acquire other smaller banks, consolidating markets, and then when they become systemic, they transfer that risk to the tax-payers as they become “Too Big to Fail”, “Too Big to Jail”.

I believe, that a number of events in the economic, political and financial spheres, may be about to undermine this.

Banking – Politics – Economics –  Changes Making the World a Different Place…

The rise of Islam, as I mentioned HERE: , threatens the wider economy, as religious doctrines amongst its followers, limit the number and range of economic activities which in themselves, could destabilise the western world’s economies to the point of failure.

However, this post is about the other events.

Bullion and Bitcoin.

The last eight years, has seen the rise of Crypto-currencies, like Bitcoin, and a concern among many about the extra $3.5Trillion, put into the monetary system, by the Federal Reserve, driving the rise in demand for precious metals Gold and Silver.

Bitcoin, and other crypto-currencies, could be about to usurp the power of the Bankers (See: My Post on this topic HERE , which if it occurs, means that because the Banks can’t just lend more and more money (currency) into existence, they have to earn the trust of depositors, and use their limited funds wisely. But inevitably, these inventive Bankers will use their political influence to ensure that they get the outcome they need. Probably outlawing crypto-currency trading, and using it for certain purposes.

The East, has for the last one and a half decades, been accumulating Gold in Central Bank Vaults, while the West, has been ridding itself of this substance, that Keynes according to legend discussed as a “barbarous relic”.

However, Gold as the final arbiter of the value of money (See This:  or This – ) can stem the flow of funds to large corporations, who would have to rely on available funds from savers, and increased economic activity, would have to produce those surpluses, which means the increasingly automated world, will need more savers, driving up real wages, to buy the products and services of automation, their prices would need to be more competitive too growing sales, and as Henry Ford recognised, salaries would need to rise encouraging savings to accrue.

And for those past the first flush of youth, or perhaps in retirement, the savings rates paid would go up, and that would help those having to live on retirement incomes.

But, it might also mean,  that for the first time in a long time, America, would not be able to rampage around the world, laying down the law, and interfering in all those countries, that require expensive military hardware, that the U.S.  can just buy with the funny money, that is hot off the computer or printing presses.

Mike Maloney’s take on things is that the printing presses will drive the world to take up the SDR sooner rather than later. The SDR, for those who don’t know it, is the “Special Drawing Right”. It was first created by the IMF during the 1970s, as a certificate for a basket of the major currencies. And the Yuan, has just been added to that basket, but the Chinese are pushing to add Gold to it too, and that will drive demand for Gold.

You can see Mike Maloney with David Morgan, precious metals dealer, and financial guru, discussing matters here:

And for when this happens, Silver will ride on Gold’s coat-tails, But the rush for silver will probably overtake the price rise in gold, by a factor of 5 to 1… And this explains WHY…

Beware The Ides of March…

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Can You Trust Your Bank

Students of Literature, will recognise the title from the warning given to Julius Ceasar, as epitomised in the Shakespearean play of that name.

It was a warning to the general, to beware, by a soothsayer (who remains nameless). A warning that apparently he ignored. Of course, as the conspirators – the Senators, stabbed at Ceasar, and Marcus Brutus a former long-time friend plunged his knife into the man, Shakespeare’s Ceasar uttered those now immortal words – “Et tu Bruté” (And you Brutus?)

Of course, in the modern era, the last major play, that resembles this drama, is the death of John Fitzgerald Kennedy on November 22nd 1963, as he was brutally slaughtered by a conspiratorial cabal operating in the upper echelons of the power political scene in America.

Who all these conspirators are, has remained largely unspoken… But some people, are doing what should have been done 50+ years ago, by the Dallas Police, before the CIA and the FBI took over the post assassination conspiratorial machinations, to cover up their involvement, and to plant the idea in the public’s mind, that “it was a lone gunman” a Russian Sympathiser, who spent three years in Russia, but who was in receipt of $200 per month from the FBI as an informer, and who received special training by the CIA to learn Russian, before he allegedly dropped out by going to Russia and staying there for three years…

Those invoved in the Conspiracy carefully massaged the images and the Warren Commission headed up by the very man, that Kennedy had fired just a few months earlier as Head of the CIA to ensure the story remained “on message”.

Of course George Herbert Walker Bush, when asked where he was at the time of the shooting, had vague recollections of where he was, despite someone of that name making a call to J. Edgar Hoover’s office – Head of the FBI just hours after the shooting proving he was in a hotel in Dallas. And his recollections apparently varied on subsequent questioning of the same incident, The same George H. W. Bush who went on to be Carter’s head of CIA, and then Vice President, during the 8 years that Ronald Reagan was President, and almost made it to the presidency when President Reagan was shot, by a lone nutter… But the President in true Cowboy hero fashion, survived.

JFK’s brother Robert Kennedy who also later ran for political office also met a sudden death when yet another lone nutter (CIA – MK-Ultra participant?) allegedly shot him at close quarters as he emerged from the hotel kitchen into the glare of waiting reporters, TV cameras and waiting dignatories – and CIA operatives?

Here is the best documentary I’ve seen on this and other subjects…

JFK Jr., had his 3rd birthday just three days after his father’s death, and after growing up and becoming by, all accounts, an honourable man, handsome, suave, considerate and latterly a pilot and publisher of a magazine called “George” – Was this a clue to the mystery surrounding his father’s demise?Why George?

And of course, John F Kennedy Junior ALSO met an untimely demise, when his plane came down late in the evening, as his plane disappeared off his flight path and plunged into the Atlantic, just 1 minute after he called in to the Martha’s Vineyard Airport, to say he was at 2,500 feet and ready to descend to the airport… But he never made it, falling out of the sky almost vertically just 60 seconds later… Meanwhile, George Bush Junior, for the three days, was nowhere to be found… Hmmmm… “Curiouser, and Curiouser”…cried Alice…

You can get a better description of events here…

So what does this have to do with the Ides of March?

Well, as President Trump has already made known to the world, some of the things he wants to do is to “Drain the swamp”, and began the process, though CIA leaks have been made to discredit him, but even the MSM have had to eat some of their words. However, many things seem to be happening that suggests he won’t see out his full-term – one way or another…

Already people are setting Trump up for a fall… Here’s how Zero-Hedge put it


Roberto Gualtieri, chairman of the European Parliament’s economic and monetary affairs committee, also criticized Trump. “Some first concrete confirmations of a new more unilateral policy stance by the new U.S. administration, including on sensitive financial markets regulatory issues, raise concerns and require both thorough reflection and action from the EU side,” he told the committee.

Meanwhile, Draghi deflected accusations lobbed at him over the weekend by German finmin Schauble, who said not Germany, but the ECB and Mario Draghi, are responsible for the undervaluation of the euro:

And SGTReport who holds views similar to my own, regarding the economy,  believes  much the same with regard to Trump’s likely outcome, as those behind the scenes are attempting to undermine, discredit, or if they can’t impeach him, probably develop a plan to slay him, when they produced this video…

 

And of course #Pizzagate is just another FAKE News story…

Err.. Maybe.


And of course, it was Trump and those Russian hackers who stole the election… Except it wasn’t…

 

BUT, at least Trump is fighting back, and so are the Americans…

Those evil Bankers, Oil-men, Military Corporate CEOs and multi-million share-holders, and those working for them in the secretive security organisations – all 16 of them, are now going to have their teeth pulled as the fight-back begins…As Ron Paul, that arch-enemy of the Federal Reserve has already had his £0.02 worth..

http://www.zerohedge.com/news/2017-03-08/arizona-senate-committee-passes-bill-treat-gold-money-remove-capital-gains-tax

So, if you’re in the markets, now might be prudent to lower your risk somewhat… Events have a habit of coming out of the blue, and given recent rises to bubble territory… and Cliff High’s, Jim Rickards’ and Bill Bonner’s and JIm Willie’s and Peter Schiff’s, David Morgan’s and Dr. Paul Craig Robert’s warnings a pull-back is long overdue.

UPDATE

This is an important adjunct to the above piece, as events come into focus:

The 15th March (Ides) is the day that Netherlands goes to the polls to elect a new leader. One in which the populist Geert Wilders is steadily making progress in the polls and is looking increasingly likely to win. BUT as Turkey and the Dutch go head to head over the latest political intrigue, will this mean Wilders gets more of the sympathetic vote, against the population concerned about the (as they see it) invasion of Islamists guaranteeing him the  vote?

The second concerning thing is the reaching of the $20 Trillion debt ceiling in the U.S. on that date, while also the Federal Reserve on that day too will decide whether to raise interest rates for just the 3rd time in 10 years.

And, in the UK, after the House of Commons rejected the amendment voted for by the House of Lords, this frees the PM’s hands to announce the formal Brexit process.

And finally, Clif High – researcher, has been announcing over the last two months that March onwards is likely to be tumultuous, and after all that, I found this…(below)

Anyone who has been reading this blog for any length of time, will know my feelings on Precious metals, and this just threw petrol on the bonfire.

 

 

 

 

If you think this piece is good, and would like to post it or link to it, as long as we’re quoted as the originators, please do so.

 

And don’t forget to like us, or post a link on your facebook or twitter feed…

Lazy Sunday Afternoon… How The Corporataucracy is Losing Its Grip

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It’s late Sunday, 26th February, and the oligarchy is fuming…

The large Corporate behemoths are concerned, because the Free Media – that’s the media, that doesn’t have corporate sponsorship, or control by the legacy media channels, are winning, and the legacy media are losing their power to control us, and that’s really pissing them off..

The old News media channels, the main-stream media, such as here in the UK – BBC, and ITN, and the 6 major U.S. news channels, are pissed off, because the so-called FAKE News channels, are in reality more in tune with what is really going on in the world, than the mainstream media channels would have you think.

For example:

Did you know that last year, President Obama and Secretary of State, John Kerry, BOTH visited Antarctica? Now why is is that news? And if not, WHY not?

So, what was the Presidential interest in Antarctica all of a sudden? Is it because back in 1512, Turkish Admiral Piri-Reis, produced a map of Antarctica, which accurately showed the land-mass including rivers and lakes under the 1 mile deep sheet of ice? Did, President Obama, want to check it out for himself – just to be sure?

Or was it because back in 1946/7 the U.S. had Operation High-jump, which was organised by Rear Admiral Richard E. Byrd, Jr., and led by Rear Admiral Richard H. Cruzen, USN, Commanding Officer, Task Force 68.

Operation High-jump commenced 26 August 1946 and ended in late February 1947. Task Force 68 included 4,700 men, 13 ships, and 33 aircraft. Operation High-jump’s primary mission was allegedly, to establish the Antarctic research base Little America IV.

High-jump’s objectives, according to the U.S. Navy report of the operation, were:

Training personnel and testing equipment in frigid conditions;
Consolidating and extending the United States’ sovereignty over the largest practicable area of the Antarctic continent (even though this was publicly denied as a goal even before the expedition ended);
Determining the feasibility of establishing, maintaining, and utilizing bases in the Antarctic and investigating possible base sites;
Developing techniques for establishing, maintaining, and utilizing air bases on ice, with particular attention to later applicability of such techniques to operations in interior Greenland, where conditions are comparable to those in the Antarctic;
Amplifying existing stores of knowledge of electromagnetic, geological, geographic, hydrographic, and meteorological propagation conditions in the area;
Supplementary objectives of the Nanook expedition (a smaller equivalent conducted off eastern Greenland). {https://en.wikipedia.org/wiki/Operation_Highjump}

However, what was the real intention of this task force? According to some reports, and at least one guarded comment by Admiral Byrd, the U.S. Task Force, was involved in a military expedition, and ultimately involved in a battle… exactly 70 years ago today.

This particular operation returned early after only two months, allegedly after having a battle with Unidentified Flying and Submersible Objects, which cost this particular task force several ships, men and aircraft.

Was this the first interstellar battle? Or where these flying machines a legacy of work done by German Researchers, who had also allegedly had contact with extra-terrestrials and fled to the Antarctic region to continue their research? This Russian video (with English sub-titles) suggests the former…

So, if the President of the U.S.A goes to Antarctica, via a stop-over in Argentina, why did this not make the evening news? And for the Secretary of State?

It has been stated by some in the Financial elite, that they fear what is coming, and that if they could, they would get “Off Planet”. In fact so many have sought hiding places in far away places such as in New Zealand, or in the Argentinian Andes. That it has driven up land and farm prices. They also have been buying gold, silver and bitcoin, in ever larger quantities, pushing prices up, and stashing large sums in currency in an attempt to minimize the worst affects of what is to come.  Some of these “preppers” have even bought space in what used to be nuclear facilities in what are known as DUMB bases (Deep Underground Military Bases) The Russians, have also allegedly provided sufficient space underground for their whole population, but the U.S. has rather selfishly, only provided sufficient space for approximately 200,000, of its population – those senior military, political and financial elites and their families. In towns near these bases, demand for essentials has sky-rocketed.

But what if any of the above is the reality, and we have been fed a lie, for 70 years, that we are alone in the Galaxy, and that the July 1947 incident in Roswell New Mexico, which was reported originally as a UFO, before it was retracted, was in fact a real inter-stellar craft (or two) that crashed and this was retrieved, along with several alien bodies?

 

We have been told it never happened? Yet the officer involved in the cover-up confided in retirement, to his son, that it really was a cover up and that it really was an extra-terrestrial craft that crashed, and elements of it were taken to PhD students in several universities to examine, in attempts to reverse engineer the technology…

What if the post WWII technological revolution that brought about the Integrated Circuit, the Ceramic silicon wafer that made the PC and smart-phone revolutions that took place 50 or so years later possible, but were in reality reverse engineered technology from alien space-craft?

What would widespread acceptance of this fact mean for established religions when their whole edifice is placed on the crucible of scientific research and found wanting? What will happen to people if the Vatican, or the Mullahs in the middle-east have to re-design their religious texts to explain the unexplainable?

We can but imagine.

But in this WooWoo world, where the previously unscientific paradigms, are over-turned as the implications of this sink in…we could see this world turned upside down, and its finances along with it

Nikola Tesla, dreamed of a world where free energy could be distributed via high-towers such as the Wardencliffe Tower, that was unintentionally funded by J.P Morgan, until he realised what Tesla was upto and had it torn down.  And extra-terrestrial space-craft, will obviously require another paradigm shift, as our oil based economy suffers its own implosion, and the financiers that funded the industry along with it…  After all… if these beings are travelling distances measured in light-years, they aren’t using rockets or burning fossil fuels…  So the oil coal and nuclear industries have much to lose from this paradigm shift…

So… get with the program…

Prepare for the change – Disclosure.

Why Bitcoin could go to $1,000,000+

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Bitcoin

Time to get your Bitcoin, Gold and Silver?

Ever since I first heard of Bitcoin, my moods have oscillated with emotional highs and lows between optimism, and pessimism. I got involved about thirty months ago, mostly out of mere curiosity.  However, I first learned of Bitcoin, about 7 years ago, and perhaps because back then, there was a lot of hype, I was highly suspicious of it. I asked myself… What was this new technology? What are its implications? What are its strengths or weaknesses? Will it succeed?

Like you I had so many questions. But I didn’t know enough to commit to it.

However, I had some experience of cryptographics when, as a former software developer, early in my studies, I wrote cryptography software using a simple alphabetic replacement system. For those not familiar with this, it was the simplest form, which involves letter substitution.

Let’s take the Alphabet.

ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz

GHIJKLMNOPQRSTUVWXYZABCDEFghijklmnopqrstuvwxyzabcdef

As you can see from the above, you can shift each letter a number of times. In the above example from A to G, from B to H, etc. etc., to encrypt or decrypt the text.

As long as you know the shift count, you can simply unscramble the text. This however would be laughed at by any modern cryptographer, worth their salt. We know which letters in the English language are used most frequently, so having a few guesses at the piece of text would quickly, reveal the key (the number of letters shifted – 6 in the above example)

During the second world war, the Germans of course used two characters to denote a character in their encrypted messages, with random coded substitution, and it wasn’t until the British managed to get hold of an Enigma machine from a captured U-boat, to send to Bletchley Park where they worked on the decryption that they were finally able to decrypt the messages, and listen in on German U-boat communications, so helping bring the war to a speedier close. And cryptography is at the heart of global communication, and Bitcoins and other Alt-Coins. It is also at the heart of Apple’s attempts to restrict U.S. authorities from gaining information from devices, that are encrypted, by fighting a court decision forcing it to build software for the authorities to allow access – Apple of course designed its software because of increasing concern at the intrusive political and authoritarian institutions of all Governments, some of whom appear to have carte-blanche access to whatever communication traverses the globe – at least according to Edward Snowden.

Lately however, I have been doing further research into Crypto-Currencies, and both the theory and the practice.

What fired my enthusiasm for this research was listening to an interview, between a sceptic, and an enthusiast.

As a result, I began looking at a number of Web-sites, and following up on this conversation. To see what’s happening in the Bitcoin and crypto-currency space. After much thought, and research, I realised that there are at least 7 Network Effects which might lead to wider acceptance:

1. Speculation –

People buying to make a fast buck. This drove early adoption, taking the price to almost $1200 at one point.

2. Merchants –

Companies accepting it for goods, simply because people hold them, and they are convertible into fiat-currency or money at known rates. In the world there are over 100,000 merchants already accepting the coins, including major providers such as Microsoft, and Target in the U.S..

3. Consumers –

These are using it because merchants are accepting it, and they are now doing so in ways that allow consumers to gain discounts of upto 35%, even on web-sites such as Amazon.

4. Miners –

There are a number of crypto-currency miners, with computing power approaching 1 Exahash, which is about the equivalent of 10,000 of the top 5 supercomputers in the world

5. Developers –

These will use the above processing power to build out the infrastructure, to produce software that is more secure than all the others and to build functionality in the hope of receiving Bitcoins or Fiat.

6. Financialisation –

The Banks and CFTC have already discussed using the Bitcoin Network and blockchain technology for transfer of financial instruments denoted in Bitcoin. And one of Max Keiser’s former regulars, decided to invest heavily in building out the technology for this process almost eliminating Brokers and brokerage fees.

7. World Reserve Currency –

IF, or rather, WHEN the US. Dollar crashes, then people will hold their reserves in an alternative or alternatives. Gold and Silver are obvious candidates, but also increasingly Bitcoin crypto-currency, is a candidate rather than some other Fiat currency, because of the current currency wars, which could turn into trade wars, and then hot wars..

This is still to happen but, the instability in the Middle-East and around Africa, is a sign of things to come.

If the price of Bitcoin, begins to rise towards, four, five, then six figures, more and more people will hold their reserves in Bitcoin, and other fiat currencies will recede in value – including other currencies such as: British Pounds, Euros, Japanese Yen et-al..

This will accelerate the acceptance and expand the wider use of crypto-currencies in general, and Bitcoin in particular. The rise of Bitcoin, and the fall of the U.S. Dollar therefore, will be as much an opinion of the dollar, as it is of Bitcoin

So, as more and more of these people and organisations, developers, merchants, financial organisations, miners and finally those who hold their nation’s reserves increase their use of Bitcoin, then the value will explode exponentially, and the price speculated in the header will be a distinct possibility.

But, the alternatives to Bitcoin – Alt-coins – and of course Gold and Silver may take up some of that slack. Gold appears to be in increasing demand, at least amongst 4 particular countries. India, China, Russia, and Turkey alone out of the world’s 200+ nations, currently (according to Mike Maloney quoting a Zerohedge article on 3/3/2016) are already consuming the entire planetary output of gold – and then some. The excess demand is currently being met by Western Central Banks reserves.

Canada which has suffered in recent months as the oil price has tanked, perhaps made pledges to its people, that were based – at least in part – on an expected almost permanent high oil price, so the fall to circa $30/bbl, and subsequent rise to around $54/bbl is causing problems for those states with Tar-sand production, which is a high production cost energy item, and thus costs may already be exceeding revenue from such operations. Those modest Canadian Gold reserves were apparently sold off in one month or less. The reserves stood at a mere 1.7 tonnes according to February 2016 reports, but by Feb 29th, the remainder was just 77 ounces, which is a pitiful amount. This is down from 1,000 tonnes that the Canadian Central Bank reported in 1965, but since the end of the Bretton Woods agreement (15/8/1971) these have been replaced by U.S. Dollars in the main. It took Canada, 20 years from 1965 to reduce those reserves by 50%, and the last 30years to rid themselves of the rest of this Keynesian Barbarous relic. Which begs the question… What will the Canadian Government use for currency/money, when the dollar collapse occurs?

But what might trigger this Tsunami? Anyone who is not a Keynesian, has to study – observe – what happens in the real world. Economics is one of those dry dusty subjects given to study by essentially – Nerds – I count myself amongst them. The original economists: Adam Smith, John Gresham, Ricardo, and the other early economists, studied markets and what happened in them. They then formulated ideas based on those observations.

But since the dawn of the Federal Reserve, and the end of WWI, economists have been looking for ways to manipulate the economy to serve politicians, who as the old saying goes – “Don’t want it to happen on my watch.” IT, being a recession or a depression.

But what causes depressions? Think about it for a second. A new idea comes along. Lots of people begin to provide that service or product. Lots of small businesses are built. Over time, these small businesses get swallowed up by competition, over decades ultimately half a dozen huge corporations provide that product or service, freeing up people to do other things – (unemployment) and concentrating the industry into a few corporate hands.

When this happens, the unemployed inventive ones with access to capital invent new products or services, to replace, or make better what went before. Perhaps even to the point where what went before, gets replaced almost completely – such as cars replacing trains, which replaced horses and canals. But for the additional products, you need additional consumers, not hundreds of millions, retiring, or on the verge of retirement, looking to save, rather than spend.

Since the end of WWII, the computer has gone through several metamorphoses – from Mainframe, to mini-computer, to PC, to Laptop, to smartphone and tablet computer. They each in their turn improved on previous designs, made them smaller, more productive, cheaper and widely available due to cost reductions.

But for industry to grow (so they can grow the share price) they need new products, new markets, or lower costs, and it is this last item, that means doing either more with the same, or the same with less that is causing the problem… As that means fewer workers. We are at one of those inflexion points. Apple, and Samsung, Sony and just a few others in China and the Far-East, now dominate the smartphone and tablet industry. HP, IBM and other American behemoths have shrunk or got out of the computer business altogether. Britain’s Computer industry has gone from a handful to one, producing designs for chips in smartphones, and tablets (but also increasingly servers for server farms).

The capital sitting in corporate bank accounts should be going into research, but research can take years to produce anything, and corporate execs need to deliver share price rises today, tomorrow, next week, next month, and at the end of the financial year. Not maybe, in three years time if the research proves fruitful. Much easier to buy up a new corporation that has already proved up the technology, and can be tacked on to existing business.

And so to force companies and large holders of capital to invest, we have the prospect and reality of NIRP – Negative Interest Rates Policy – already in place in 3 countries in Europe: Switzerland, Sweden, and Denmark. The ECB and Japan too is trying them, but none of them appear to be working to the extent they would like. In Switzerland, the Tax collecting service even told its taxpayers not to pay up-front, so that the money held on deposit at the banks wouldn’t be “charged”. This is monetary madness. Anyone with 6, 7 or 8 figures in a bank account should be worried. And those living from week to week, or month to month, will need to grow their income rapidly as the dollar declines.

JP Morgan (according to Satyajit Das, finance expert and author of “A Banquet of Consequences”) has speculated – sorry modelled – that -3% (negative 3%) might be necessary for the dollar. But with Bank notes, people can just take that cash out of the bank and keep it under the mattress so to speak. So Central Banks want to get rid of banknotes, and that is why they are starting with large denomination notes – the €500 note, the $100 bill et-al.

India has edged towards this by eliminating the 1,000 and 500 rupee notes, which in a country that still largely uses cash for transactions, and hundreds of millions still don’t have a bank account. This has led to mass demonstrations and mass hysteria. It may lead to social unrest as people rebel against this edict.

The Bankers use euphemisms, and downright lies to attempt to achieve this, but the moment that the U.S. does that, all those dollar bills overseas will return to U.S. shores, and the trickle of deals away from the dollar – the 30 countries that now have bilateral trade deals with China, Russia, India, and the middle-east, for oil, and commodities outside of the dollar, will become a flood – fleeing from the dollar. To what?

We can but speculate, but to my mind, Bitcoin will be one of them, and of course Gold and Silver. Of course, we may yet see governments attempt to outlaw the ownership of Bitcoin, Gold or Silver, just as was tried once before in 1933. THAT moment may arrive far sooner than many think.

Bitcoin – are there any drawbacks? What are the Risks? What if…?

The total number of Bitcoins is limited to 21,000,000,  so I hear, which sounds a lot, until you realise how many transactions there are in the world, and how much economic value people have added to the planet over the centuries. Money therefore is used to value those objects – Buildings, Corporations, and the time value of Labour, to all the products and services we take for granted in our modern world. So a modern money must be the measure we use to assign our value to these. IF therefore, Central Banks can just conjure up currency out of their printing presses, or computers, they are esentially stealing value to be created out of human labour. Whether that is a corporation that took 50 years to build, or it is someone’s work, the value of the currency itself therefore, should also reflect its time value to produce. THAT is why both Gold and Silver served our purposes so well over the millennia.

Think of the worldwide number of large corporations, sky-scrapers, huge mines, roads, motorways, bridges and tunnels built since the dawn of the Industrial age, together with their cost in materials, time, energy, and lives lost. That value runs into the hundreds or even thousands of trillions of U.S. dollars.

$200,000,000,000,000 – is reputedly, the total currency debt of the world – divided by 21,000,000 Bitcoins is 9,523,809.5238095 per Bitcoin, and that is in dollars alone.

This assumes that all other currencies go to zero, and we only use Bitcoin for our financial transactions.

Which means theoretically, it could go higher, when you add in Pounds, Yen, Euros, Rubles, Yuan, Dinar, Riyahls etc. etc.

Of course this is perhaps unrealistic, but not outside the bounds of possibility.

We also need to consider what are the pitfalls.

As Bitcoin is more widely adopted, over time there will be inevitable losses – people storing their coins on a smart-phone or flash-drive and losing it, or not backing it up, or finding out that electronic storage and strong magnets are not a good mix, or someone dying with their coins held in a smartphone, that no-one else knows about, which gets wiped and re-sold on, or given to a partner, relative or someone, who has no real interest in such electronic coins. There will be other ways that currency could be lost, so shrinking the pool of available coins, which might also lead people to not adopting them, out of fear of loss. There are those who speculate the earth could receive an Electro-Magnetic Pulse (EMP) which could lead to a major fault in the global telecomms infrastructure, killing digital coins – but with the Banks and Governments so keen to rid the world of ALL paper currencies, there is little choice except for those stand-bys of the last 5 millennia – Gold, Silver and Bronze.

Could Bitcoin go higher? Will it?

Could Bitcoin really go higher than the $1,000,000 speculated on? These are unknowns. The theoretical maximum of 21 million coins assumes that all the coins are mined, but which according to Trace Mayer, Bitcoin Expert, would take upto 140 years, as the mining rate halves every 4 years. The first such halving was in 2013 – Did this cause a price spike? (Basic law of Supply and Demand?) We don’t know for sure, but possibly; the next such halving is next year in 2017. It is possible that this time, people will front run it this time, to try to maximise their positions ahead of the reduction causing another price spike.

As I have said several times, there are about 80 different crypto-currencies. I hold over 10, and receive daily interest into my crypto-currency accounts – as can you (See below). I also have an app on my smartphone, in which I have deposited some of these coins to spend, with a QR Scan Code to make using them easier, just like I might with ApplePay(®) or the PayPal App and it is possible that I will be able to do this with all the others shortly.

There are already ways to exchange these different crypto-currencies, on exchange sites (listed below)

So, now do you think it is time to maybe check out this new currency system?

Where do I get Bitcoin, or these crypto-currencies?

Bitcoin, is available in so many places now it is almost impossible to recommend one or two sites over others, but the one site I do recommend, mostly because they set-up a number of crypto-currency [Alt-coin] accounts, simultaneously, for the price of an e-mail address, and you receive FREE daily deposits into them – albeit very small sums to begin with, but with loyalty bonuses, increasing with time and other ways to improve deposits. For those keen to promote or evangelise the site, additional bonuses are given in increasing amounts for more referrals.

You can earn upto 10 crypto-currencies, including Bitcoin, and Litecoin FREE at… Qoinpro.com, for the price of an e-mail address. Backing both horses in a two horse race may seem like wasting money or effort, but it depends on your view of risk…and the potential rewards. And in investing circles, NOT losing money is the first rule to financial security.

You can buy Gold and Silver with your crypto-currencies at: https://www.vaultoro.com   or with Fiat at  https://www.bitgold.com  or https://www.libertysilver.ee. At Liberty Silver, because it is based in Estonia, which does not charge V.A.T. on silver coins, as long as you purchase and arrange collection from their site (done via a courier) you can still legally buy your coins VAT free.

And you can trade between different crypto-currencies here at: https://shapeshift.io or at https://btc-e.com or even learn how to trade from your fiat to BTC here http://www.coindesk.com/information/how-can-i-buy-bitcoins/

 

 

I Will Survive – but will you?

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Apologies to Gloria Gaynor, for the title and the introduction…It has been some months since my last piece, and there’s been a lot of water under the bridge since then.

There’s a number of reasons for this, not least because I had a heart attack, followed by triple heart by-pass surgery leaving me away from a keyboard, and more interested in my own health, rather than the health of the world economy which was the main one.

But as my health improves, my interest in matters economic, political and financial return.

While the political seismic shift of the U.S.  election, and the inauguration of President Trump has left many foaming at the mouth, because of the media attention and focus on his shortcomings, rather than on their balanced interpretation of what he might bring to the presidency. There are many who see him as a racist, sexist, homophobic xenophobe, and they have little doubt that he will be one step away from being the devil incarnate.

For those away from California, the University Campuses and the metropolitan areas with their somewhat extremist liberal views, that is where jobs and dwindling incomes are the main topic of political discourse as the financialisation of the economy has meant that jobs in Fin-Tech, or Software have done rather well, while mass immigration has pegged workers incomes as a result of Mexicans and other migrants working in the grey economy, and competing for the entry level jobs that historically went to students, before they went onto the middle-management positions in well run corporations, but whereas changes in corporate management structure has meant that many of those well-paid middle-management and engineering jobs, the “high value-added” jobs, have gone with the industry outsourced to the Far-East, and the corporate profits earned overseas, held off-shore as corporation tax is now amongst the highest in the world at 35%. Apple reputedly holds over $1Billion overseas, yet borrows huge sums in the U.S. to reduce earnings and thus taxes at home.

I’ve also been researching Trump’s plans to reform the U.S. through major reformation of the U.S. tax code, which depending on his spending plans, and the revenue neutral elements of the tax code, he may or may not struggle to get through both houses.

What Trump’s victory changes most is the timing of economic collapse because his economic plan is bound to bring a temporary lift, even as it worsens some of the structural flaws. The effect of the flaws that have been written about elsewhere, will take more time to develop than the improvements, but probably not much more time.

So, let’s start with the positives:

Positive Economic Changes That Are Certain To Result From The Trump Triumph

Here is a list of economic changes, which I think are certain to bring a little boost to the US economy in 2017 and will likely delay the apocalyptic predictions:

It is certain that Trump’s tax plan will happen. While it may not happen entirely, something very close to it will certainly happen because Republicans have never seen a tax-reduction plan they didn’t like.

Republicans hold certain economic truisms as tightly as Biblical dogma: they believe tax cuts will pay for themselves and so will not create a huge worsening of the national debt. Every time they make tax cuts, they claim the cuts will stimulate investment, which will stimulate the economy, which means more businesses will produce more revenue, which means there will actually be more tax revenue, not less.

Whilst this may have been true at the end of the second world war, but before the Vietnam war, it hasn’t been true since.

They have never made tax cuts without increasing the federal deficit under any president since. This fact, however, never kills this dogmatic belief. Republicans also believe with religious fervour that targeting tax cuts to the rich in the form of corporate tax breaks and particularly capital gains cuts, will create new jobs and trickle down wealth to the middle class and the poor. The fact that real middle class wealth has stagnated or even shrunk since the mid-eighties, doesn’t seem to have registered.

Belief trumps truth. Since Reagan, when Republicans have control of the entire legislature and the executive branch [and will be changing the balance of the Supreme Court,] it is absolutely certain the world will see major tax reductions that will come as their third and greatest round of trickle-down economics. The plan coauthored by Larry Kudlow has all of his support with conservatives and Republicans, too. Even if Trump were removed from office, most of that plan would be introduced.

The stock market will rise…for a little while, at least. What we DO know from trickle-down economics is that it certainly does stimulate the stock market. The money that is saved on capital gains and corporate taxes and that is repatriated in corporate income from overseas largely goes into speculative gambling in stocks. Very little of it goes into capital formation, investment in new equipment, corporate construction or business expansion.

Even before any of Trump’s proposed changes have happened, we are witnessing how the mere hope of such changes has caused a huge jump of circa 15% in stock-market speculation (both volume and prices) as investors try to reposition themselves for this new reality. There was a brief stock market slump, once people started to question whether Trump’s plans would be enacted, but it didn’t last long because, as soon as Trump got into office, he moved rapidly via serial executive orders to start implementing many of his promises, quickly building faith that he will carry out most of them rapidly and with great determination.

It is unlikely though, that Trump’s infrastructure stimulus plan will make it off the ground in 2017. While Republicans are certain to approve tax breaks, they are not big on massive government spending increases. Trump will find some strong resistance among Republicans to his increased spending; at the same time, Democrats remember well how Republicans battled against Obama’s plans to increase infrastructure spending in order to stimulate the economy. According to junior Republicans who eventually came out against Speaker of the House John Boehner, this was partly because Boehner and the Republican old guard didn’t want Obama to get the credit for economic improvement. They put the good of their party over their nation’s good. So, Trump will likely find a lot of resistance there, too, as Democrats return this tactic.

Spending will certainly increase in one area — the military. Republicans have proven for decades that no deficit is too big if it is going toward building a stronger military especially as the media’s latest bogey-man – Vladimir Putin – receives the public ire, as they are fired up with their false agenda stories of interference in Western democratic independence.

They’ll also find support among Democrats for this, who have just as many wealthy donors in the military-industrial complex as Republicans do. They’ll also find a lot of support among the religious conservatives — because conservatives like for America to be the strongest nation on earth. Besides being macho, defense and security have a strong argument behind them in a world full of terrorists. While Trump might wish to improve relations with Russia, he will be restricted by a aggressive media. He is also antagonizing relations with China.

The US, under Obama, was already acting more aggressively in the South China Sea in order to keep China from controlling secondary trade routes. Trump will build on Obama’s lead there, and his trade battles with China may intensify conflict with China overall. Trump has stated loud and clear that the US military will be ready to look out for Japan’s national interests. At the same time, North Korea is picking a fight in order to beat its chest, which presses Trump to take some action against them. That may come about just as sanctions, but could involve some military sabre rattling or counter-measures from the US that could escalate matters. Trump will take a greater lead than Obama did against terrorists in the Middle East, as he was critical of Obama’s restrained and somewhat ineffective efforts. Expect a more aggressive anti-terrorist policy therefore. That means, as under Reagan, increased military spending will be more important than increased infrastructure spending, but military spending also stimulates the economy by creating jobs and boosting a number of major stocks. Making something to use once – such as a missile, bomb or bullet, is always though, a waste of money.

Economically, those are all strong short-term positives, regardless of what they bring further down the road. BUT… the U.S. is already in what Austrian Economists call a “crack-up boom” according to the data being collected by one commentator – Cliff High – suggesting that the economic collapse WILL happen on Trump’s watch, probably later this year. (See this:)

In spite of these certain positive economic changes for 2017, there remains a countervailing globalist force that has already presided over numerous economic failures of its own making. These people will relentlessly attack Trump, and they will seek to pin their own failing recovery on him. Such an entrenched counterforce makes it impossible to say how much temporary good Trump’s economic policies can bring. Trump starts in a world where globalists have long ruled the nation’s central bank, which they have positioned to create US economic hegemony. Trump can change that over time, but probably doesn’t have enough time before the collapse is triggered. Also, his lineup of Goldman Sachs executives in all financial offices of the US says that he won’t. Globalists are also deeply entrenched in US intelligence agencies and the military leadership, where they have engaged in relentless nation building as they seek to shape the world toward the interests of their own corporate, political and financial establishment while also working in alliance with the interests of the UK and the rest of Europe.

They will do anything they can to restrain Trump’s plans to drain the swamp in Washington as well as his plans to align with Russia on terrorism in the middle-east, and his plans to diminish nation-building efforts. How far and how quickly he can push against their resistance depends entirely on his and his followers’ ability to overcome deeply entrenched globalist powers that have steered the nations of “the West” for decades. All globalists in the world will oppose Trump.

Globalist are first trying to groom and massage Trump into their ways. They are also trying to thwart him through fake news in the media, slanted stories, political attacks, and by stirring up chaos and counter-revolution wherever possible. Even Obama has formed a foundation to try to muster as many protests against Trump as possible. And the Clinton Foundation has been behind many international wars and humanitarian crises that have been used to the ends of the U.S. (See this piece:)

To the extent those efforts fail to stop or change Trump, the financial establishment will, in the very least, try to make him the scapegoat for the failure of their past eight years of badly misguided recovery efforts.

If they cannot impeach him, as some are already working toward, the ultimate risk for Trump and his supporters is that the establishment will assassinate him. This risk is real enough. For the first time in the history of the US (that I am aware of), we witnessed the nation’s largest mainstream news source (CNN) actually releasing one of the most important non-news stories it could trump up during the inauguration, which was a “what-if” story about how US leadership roles would be assigned if Trump was assassinated on the day Obama’s leadership expired but just before Trump got inaugurated.

That such a concern made it as a main CNN story shows there are many mainstream thinkers who see assassination as a realistic possibility, not as some hysterical conspiracy theory. CNN saw it as enough of a likelihood already in the public mind to make it useful fake news (fake in the sense that it filled news time but is not news at all, but (for the moment) pure fiction that teases liberal minds with a kind of “final solution” hope). Trump is Hitler, according to liberal mass hysteria (just as much as Hillary Clinton was Hitlery to conservatives). Both sides routinely demonize their opposition. As the flagship of the liberal media, CNN planted deep the implied seed of hope that Trump might be taken care of with a final solution aimed just at him. Of course, they would deny that they were raising incendiary hopes among liberal Trump haters.

Now that the revolution and counter-revolution have begun, there is no way I can say which force will dominate by the end of 2017, given the immensity of the forces, the entrenchment of the old guard, the resolution of the Trump revolutionaries, the huge flaws existing in the US and global economies, and the economic headwinds that will hit the U.S. down the road. What I can point out is that the globalists clearly begin with the upper hand by far, and they are certainly not going to give up. In fact, they are only beginning to implement their strategies to overcome Trump because they did not believe they would lose the election.

One of the things I learned about in early 2016 was how the Federal Reserve board held two back-to-back “emergency, closed-door meetings” (as described on the Fed’s own published calendar) followed by an immediate “emergency meeting” between Fed Chair, Janet Yellen, and the President and Vice President of the United States. After those meetings, the stock crash that had begun in January and somewhat recovered in February evaporated, and stocks moved continuously toward recovering all lost ground. We were never told what any of those meetings were about, but meetings between the Fed chair and the president rarely happen, and meetings including the V.P. almost never happen. That indicates some level of emergency that the vice president also needed to be fully informed on.

It has also been my belief all along that, if Trump did win (which I believed a better likelihood than Hillary), the Federal Reserve would capitalize on it. I have no doubt that globalists have plans for every contingency. With their recovery failing again (as we saw GDP cascade in the final quarter of 2016), the establishment would be more than happy to let it crash after the election, but most likely not until after Obama was out of office and it was likely they could blame it on Trump.

I have said for years that the Fed’s “recovery” during the Obama administration can only live as long as artificial life support continues. That support still continues intensely through the Fed holding indefinitely the huge expansion of its balance sheet (which leverages out to an historically enormous pool of new money continuing to float the economy) and through the Fed’s continuance of extremely low interest rates. (While raising interest rates now, still remain the lowest they have been in modern history, outside of the Great Recession.)

I’ve believed that, if globalists got a Trump victory, they would even collapse the economy deliberately, if it were not already failing, because they would love to decapitate their newly risen opposition by making people believe that the entire global economy collapsed because of Trump’s interruption to their plans. They would hope that would slam a lid on revolutionaries against globalism, teaching them once and for all that their individualism and nationalistic, anti-socialist ways bring only rapid calamity.

I think they recognize that, if a global collapse happens on Trump’s watch, many people will look desperately for a global solution from those who appeared to be having success with restoring the economy before he came into office. Many people do not see that the Fed’s recovery was only kept alive by endless and massive administrations of artificial life support. Many people also do not see or believe that the economic flaws of the US and many other nations are fatal or even important — such as the size of national debts, the vanity of fiat currencies, the dangers of financing national debts with massive infusions of such currency. They don’t believe that expanding personal debt to individual limits leads to enslavement as does national debt — enslavement to bankers. They even believe that banks and government have done the right things to reduce the risks of another economic crisis like we had from 2007 to 2009 in the Great Recession.

In fact, the opening title to this piece was carefully chosen, because there are many like me, who have been expecting and preparing for this forthcoming collapse even as jobs have been harder to come by and incomes were reduced by mass immigration. Even my wife has had to apply for her own job, as the corporation she works for wanted to reduce the numbers in her department, all in this ever increasing effort to reduce costs, grow revenue and grow shareholder value.

But despite my best efforts to interest her in this subject matter, she continues to bury her head in the sand, just (if I can be politically incorrect for a moment) because like most women, she is more interested in personality, rather than policy, and she believes the politicians will figure it out, and she won’t have to worry about it because she can’t do anything about it anyway (so she says).

So, it will not be hard to find a majority of the populace that will join the mainstream media and the establishment politicians in blaming Trump when the entire global economy goes down the toilet. Trump’s provocative mouth, his brazen plans, his sometimes brash execution of those plans, along with his narcissism and often clownish behavior, make him a ripe target as a grand scapegoat. (I think even most conservatives would have to admit to themselves here that, if Trump were carrying out a totally liberal agenda, they would find plentiful stock for ridicule in Trump’s showy, boastful, and brash behavior. It won’t be hard for his opponents to do the same.)

So, if the establishment doesn’t assassinate him (now a mainstream idea), they will likely make him a scapegoat to carry away their own sins. All of that places the likelihood of the start of an economic collapse sometime later in 2017 as a racing certainty.