Some weeks ago, before Xmas, I floated the proposition that “The West” might be about to shoot itself in the head, heart, AND foot, just to make sure.
My reasoning was that Russia, might be about to demand payment in Rubles for their gas and oil and other things, which would effectively shoot the west in the aforementioned organs, as they sought to ratchet up pressure on President Vladimir Putin.
The U.S. through its monetary influences and power in International Organisations – the World Bank, the IMF, BIS, Federal Reserve, and of course the ECB, Bank of England, U.N. and Bank of Japan etc, is waging a war against Russia, in a vain attempt at defending and extending its influence in the middle-eastern region, and throughout the near east, ostensibly to protect itself from the rise of China and a resurgent Russia. (more of which later)
The beginnings of this madness began with the end of the Soviet Union. The west in NATO, and through European organisations made agreements with the Soviets, to not encroach into former soviet countries, yet many of those countries, in order to avoid the risk of re-colonisation, chose to join the North Atlantic Treaty Organisation (NATO) and/or the European Union. (E.U.). This was also of course to strengthen the U.S’s Federal Reserve backed monetary system, which as I’ve mentioned numerous times is now no longer backed by physical precious metals.
Of course, when the U.S., under its attempt to extend its influence in the region, encouraged the western larger part of Ukraine to throw off its recently elected leader as it were, to rub Putin’s nose in it, and incurred the wrath of the Crimean Russians, and the Russian speaking ethnic Russians east of the Dneiper River, it essentially wandered into Russia’s back-yard, and that was the straw that broke the camel’s back.
The Crimeans, who are predominately ethnically Russian, were backed into a corner, as the new western backed government in Kiev, made the Russian language illegal.
Imagine if you were a Welsh speaking Welsh person, and the incoming British government, made your language illegal? Or Irish? or Highland Scottish and they tried to make Gaelic illegal?
You’d be pretty PO’d too…
The Crimeans, who felt Russian, spoke Russian, and historically WERE Russian – If we remember our history – Balaclava, near to Sevastopol, on the western coast of Crimea, is where the British Light Brigade, charged the Russian guns, to such detrimental effect, in 1854, and it is remembered in the rousing poem by Alfred, Lord Tennyson. So, a hundred and fifty years ago, this part of the world, was as Russian as it surely is today.
The President, of Russia, kept a low profile recently, and even disappeared from view for ten days, prompting mass media speculation by western media about his health. Of course, when he reappeared, the President issued a wry smile, and joked about “gossip”.
But behind the scenes, the Russian bear is fighting back against the Dollar hegemony. Of course the war of words is being ratcheted up as American military conduct war games in Estonia, this week-end, a former Soviet satellite nation, and right next to the Russian mainland.
Guyane Chichakyan a journalist for RT, posed an interesting question to one of the U.S. government’s PR spokespersons today (Saturday) when she asked Jeff Rathke of the U.S. State Department: Why was it that when Russia conducted military exercises on their own soil, it was supposedly raising tensions, but when Americans conducted military exercises several thousand miles away from home on Russia’s borders, it was in the guise of international peace and security.
The PR guy nearly choked on his reply, denying that they had ever said such a thing, to which, RT showed a clip of Jen Psaki of the U.S. State Department, on August 14th, 2014, doing just that, when referring to events in Ukraine and close to the Ukrainian border. As I mentioned some months ago, the next world war has already begun as a war of words, and for people’s hearts and minds. Every channel, both public and private will be used. It will in all inevitability end in a military war, though perhaps not on such a full-scale as the last one in 1939.
But perhaps also the anti-U.S. state of mind is gathering steam… As I mentioned some weeks ago, Britain applied to become a founding member of the AIIB (Asian Infrastructure Investment Bank) the alternative to the U.S. dominated World Bank and IMF, and we hear from the New York Times, that now Germany, France and Italy wish to join in defiance of U.S.’s (cough) “requests”.
Perhaps the dollar’s end as a major world currency is finally coming to an end, as a result of the mass Q.E. exercise of recent years.
It is time we all engaged our brains.
And then last week, I read this… http://russia-insider.com/en/2015/03/19/4696 which discusses just that.
If a shooting war does begin in earnest, money – hold in your hands money – will allow you to survive the inevitable inflation that will ensue, and the grey market will offer up far more than the government enforced, and controlled ones. If you value your freedoms, liberties, and the health and well-being of your family and friends, I strongly suggest you begin preparing – if you haven’t already.
Gold and Silver coins and widely accepted silver and gold ingots of widely known mints will prove to be good ways to secure your own future “essentials”. And Bitcoin, and other [Alt-coins] will enable international transactions. You can begin your own FREE collection of these precious [Alt-coins], when you set up an account by merely supplying an e-mail address.
This piece will be short and to the point, and full of visual elements, in keeping with modern trends.
Our monetary system has by many independent commentators become corrupted, and this has been allowed because of the benefits to the few. It begins with a discussion of Fiat versus, “Real” money. Continues with discussion on the future, and then finally discusses why we got what we got.
Egon von Greyerz, talks about the currency devaluation over the last 100 years versus Gold, and how with charts he suggests that the U.S. is technically bankrupt.
The end result of which will be a collapse of the currency and with it much of Western Banking and finance.
In the second half of this next video, Max Keiser talks to Bitcoin entrepreneur – José Rodriguez, about crypto-currencies, and how both Mexico, and Argentina, have taken to them, to help solve their financial problems, which have beset the two countries, because of corruption, and the dominance of the American Banking System, which has had a detrimental affect on their nation’s finances.
And the British political scene seems to have opened up in this last election pre-season friendly, as some of the political commentators, seem to have tripped up, and lost some of their moral high ground.
Maybe some good will come of all this.
A corrupt Media system, policing a corrupt political process, presiding over a corrupt monetary system, for its own mutual survival.
Who’d have thought it?
I’ve been giving some thought to, Monopolies and Oligopolies and Geo-Politics recently.
Many economists will tell you that both Monopolies and Oligopolies are detrimental to the economy. Monopolies generally are not allowed to exist – and where they do exist, they are generally in state control. Mostly in countries with one-party or no-party apparatus, whether that be Fascist, or communist and for many reasons, these two regimes allow or enable them, and share one common thread.
Both state types seek to compel people to do or not do, things that are, or are not in their own best interests – depending on the “thing” we are referring to.
Communists disallow ownership, and vest almost everything in the state, while the Fascist country vests the wealth of the country in the hands of one or a few “wise men” who own the bulk of the productive assets, and tax the rest of the society to pay for things that are generally considered in the nation’s good.
Oligopolies are a slightly different matter.
These have a tendency to become cartels, where these organisations secretly work to protect their own interests, while apparently working for the good of the customer and the nation, it is obviously not competitive, so are not in the consumer’s interest, but governments quite like these because it makes taking policy decisions easier to implement, when they can get the heads of these half-dozen or so corporations in one room – after taking their advice of course.
Here in the UK, we have an oligopoly in the energy market, and for this reason it’s heavily regulated, though if the energy regulator wasn’t trying to get them to improve their customer service, they might be focussed on the thing, that consumers worry about more – prices.
But there’s another oligopolistic industry, and monopolistic practice that is at the root of many other problems in Western Societies.
Banking oligopolies, and Monopolistic Central Banks.
The Central Bank determines the supply of the currency, and the governments allow this, in its own self-interest. The government can pay its bills with money it doesn’t have, which it otherwise would have to tax from its taxpayers, instead it borrows from the bankers, and then has to pay interest, which steals from the citizens, silently through the process of price inflation.
But what it takes with one hand, it gives with the other, in higher stock-market values, and rising asset prices – which benefits those wealthier citizens, who own stocks, properties and other financial assets. This makes those on limited incomes fall further back in the “getting on the ladder” rungs of success.
It happens through the agents of the Central Bank, the major clearing Banks, who form an effective oligopoly linked into this nefarious practice, (also as their owners – as in this case – of the Federal Reserve) while the population are enslaved by debt-slavery, because their taxes are used to pay the interest of the debts to these banks, who buy these Treasuries, using money they don’t really have, but who get it from their paymaster – the Central Bank.
Of course, for all this to work, people have to keep their wealth in cash form, or invested in things that can be manipulated for the ends of the Bankers. – homes, the stock-market, bank deposits etc,
Of course, they would deny this… but as Mrs Margaret Thatcher once opined: “They would say that, wouldn’t they?”
But, once people begin saving their wealth in forms that can’t be taxed, or that the authorities – the government, and the Bankers can’t manipulate, governments and politicians begin to worry.
For example: Crypto-currencies are things that Bankers fear, because they don’t control them, and aren’t taxable – at least not yet. If you have these great. If you haven’t, then perhaps you ought to check them out at Qoinpro. After all, if you can’t beat ’em, then join ’em. And numerous Bank employees and senior executives are now buying into these in increasing amounts – in particular – Bitcoin.
After all, for hundreds of years, the Bankers have controlled the printing presses that gave them immense power over the country and its institutions.
It was President Andrew Jackson of the United States who commented that:
“Banks of issue, are more dangerous than standing armies”
And Thomas Jefferson, who said:
“Paper is poverty. It is not money, it is the ghost of money.”
So what did they mean? As I’ve previously explained, paper currency is a receipt for money, while real money is both Gold and Silver.
So, why do they fear them?
If we look back into history, a Bank Note once said with authority – “I promise to pay the bearer on demand the sum of …”
The missing words originally were the sum involved – ‘in Gold’, or ‘in Silver’ depending on the country of origin, or as the twenty dollar bill from the early 1900s stated: “There has been deposited twenty dollars in gold at the Federal Reserve”
And this prevented the Central Bankers from printing too many of them, unless they had the gold in the vaults to back that up. It meant they could only lend out “savings”.
But what they do now, is lend out debt – because there is no savings, or nowhere near enough at any rate. And when that happens, we are borrowing from our children’s future – Which is fine for investments that add to our stock of goods, but what about those debts used for holidays or other consumption services? And what if they can’t be re-paid?
It also means the taxpayers of the future – our children, and their children, will have to pay off these debts through higher taxation, or face a lower standard of living through reduced government services, and experience greater control of their lives by a centralising government.
All industries tend to grow towards having a few large entrants, before newer entrants change things and shake up the industry just as Tesla has shaken up the motor industry in the U.S..
As a further example: TESCO, the UK’s largest of the big 4 grocery retailers, has suffered recently in this fall-out, suffering a 50% share-price decline, as new entrant Aldi has grown its profits by 65%.
And to get to the geo-political issues, as ISIS rears its head in the middle-east, and Ukraine hots up, and once more unrest in Libya is raising its ugly head again, and now I hear two nuclear nations are on the brink of a conflagration, as Islam butts up against alternative lifestyles and religions. Many of these wars could embroil the west, and that will mean the amount of money the west needs to spend to fund its military activities, could be the straw that breaks the camel’s back. As stock markets have reeled in recent days, perhaps the market collapse that many predicted is already upon us.
And apparently the Indian and Pakistani peoples are on the verge of yet another major war between these two nuclear powers. And this is over a resource that neither can afford to lose – water.
Of course with both governments in dispute over the region of Kashmir, in the mountains of the north, the two governments came to an agreement over the Indus river many years ago, which allowed for both nations to tap into this resource which flows through the region, and they have already fought four wars over the territory.
But, since the agreement, both nation’s populations have risen exponentially. India now has a population of 1.2BILLION, while Pakistan has 178million. With senior figures in Pakistan now talking of Jihad, as India extracts more water, this is raising tensions, as Pakistan has only 30 days supply for the whole country.
The Indus river travels the whole length of Pakistan, from its source in Kashmir, to emerge near the Capital Karachi, on the west of the Indian subcontinent, and is responsible for 90% of Pakistan’s water needs. The river holds such a powerful drag on the nation’s minds, because it is used to generate electricity, and is responsible for 50% of Pakistan’s employment.
It could be used to trigger Pakistan’s “first use” policy, starting a nuclear war, given that many Pakistanis are affiliated to one of eight different radical Islamic organisations, who recently formed a joint committee of Jihad. Kashmir could well be that straw that breaks the world’s financial back, causing relations between allies to worsen, triggering a new world war.
Rising tensions and a nuclear war would be hugely detrimental to world economy and financial markets, as Pakistan and India fight over this precious liquid.
Prices of stock-markets would go into free-fall, as much as 40% almost overnight, and trigger losses on derivatives, which as some highly influential, and well-informed people now believe, is as much as 10 times the notional value of the world’s economy – or some 700 TRILLION American dollars.
If that happens, then the flight to safe haven assets will be huge, and if you don’t physically, own either Gold or Silver, your wealth could be totally eliminated. The world’s economy could be so badly damaged, that for a time supply chains break down, and Banking organisations suffer, like Bear Stearns and Lehman Brothers in 2008, reducing many corporations to pennies on the dollar as their chickens come homes to roost.
As a result, Indian Gold price premiums were as high as $50+ in 2012, despite government attempts to stem Gold imports, as the population eschewed rupees for Gold and Silver. Silver, now at prices not seen since 2009/10, could rise over its previous peak of circa $50, and take out a new all-time high.
As Warren Buffet, who has run Berkshire Hathaway since its inception, and where one share currently costs over $200,000, has been repeatedly quoted as saying in relation to markets: “Be fearful when others are greedy, and greedy when others are fearful.”
Now is the time to be greedy where silver is concerned as the world uses approximately 200 million ounces more than it produces. Sometime soon, those who cannot run their businesses without silver, will find they will have to cease operations because there isn’t any available, and the price will have to rise, to enable supply to increase.
And in 2013, not only have the Chinese and Russian Central Banks been buying Gold – But RUSSIAN Banks too bought 181.4 Tons of Gold in 2013. It was more than double that of Russia’s Central Bank additions in 2013.
The biggest buyers according to the Russian Finance Ministry include:
– Sberbank (48.5 tons),
– VTB (38.9 tons),
– Gazprombank (29.1 tons),
– Nomos Bank (19.6 tons),
– Lanta Bank (8.6 tons).
And if this has intrigued you, as to WHY? You can learn how these bankers over 2 centuries worked towards enslaving the people of Europe, Britain and America, in my book: “The Coming Battle – 2013” and you can learn how YOU can claim back your liberty.
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Forgive my opening title to this piece – particularly if you are French…
No, it is not a reference to the delicacy of your country, nor an Englishman’s tirade against one of my favourite places on earth.
No, it is a reference to a story, I have never proved, but have heard recounted many times.
I am of course referring to the oft quoted story of what happens to a frog if you put it into hot water…
According to legend: If you put a Frog into hot water, it will immediately jump out. BUT, if you put that same frog into a pan of cold water, and gently heat it, it will sit there until it boils itself to death.
So my opening question is one of self examination.
Given the changes in the West in the decades since the 1970’s, for the rights and privileges that we fought so hard for over the previous eight hundred years, are we like the above frog, merely watching now, as some of these hard won rights are eroded?
The right to free speech and movement;
The right to freedom from persecution;
The right to vote;
The right to not be spied upon without due cause;
The right to religious freedom;
The right of “Habeas Corpus” and trial by a jury of our peers;
and more recently,
The right to be treated fairly, in the eyes of the law, irrespective of our religious principles, abilities, age, sex, sexual proclivities, marital status, colour of our skin, or the amount of money we have.
Many of these conditions that we have fought so hard to have put into law, have taken years of lobbying for, and yet the same class distinctions abide, and the same ruling elite still watches and rules over us.
The wealth accumulated by the few gives them privileges that we mere mortals can only dream of.
Take the senior banking elite for example. In recent years the Bankers have been involved in a series of actions that would make us mere mortals go to prison, and yet no senior banking figure has to my knowledge, even spent an hour in a Police station, let alone an interview room or a police cell. And if the allegations against these organisations are proved? They merely pay a fine, which ultimately gets paid by either their shareholders, their customers, or both.
One man Neil Mitchell, knows only too well the actions these Bankers have been involved in, as he was on the receiving end of their largesses and their dubious practices, as they foreclosed on his business just at the moment he was about to become successful. But, I digress.
So can a mere mortal join this elusive elite?
It means you, nay, WE need to accumulate wealth.
And, I’m not talking about a few million. That would be nice, but it wouldn’t put you in the realms of the elite. To reach those heady heights, you need circa £50million, and even that might be on the low side. According to the book “The Coming Battle”, over 100 years ago, the entry to this elusive club was already ten million dollars, and the value of those dollars has fallen 97% in the intervening period, so you can do the mathematics.
It has been said that a man (though it equally applies to a woman) can be judged by the company he (or she) keeps. Which boils down to the people you count in your social circle. In order to join this elusive band of brothers, you need to be useful to them, and that means you need to be an entrepreneur.
The word “entrepreneur” derives from the french word for “middleman” though its literal translation is “between taker”.
But being an entrepreneur is not necessarily just about being a middleman, it is about being a risk-taker. And we will have to think – as Napolean Hill once wrote, to grow rich, but it will be the route out of a future that many do not yet see coming, as the west’s social systems unravel, and future expectations go unmet.
Since the second world war, we baby-boomers constructed a political system where we required our politicians to give us care from cradle to grave. We required that politicians bribe us with our own money to educate us, keep us healthy, regulate traffic, regulate our work and our activites in the guise of “Health and Safety”. We even employed vast beauraucracies in government departments to tell us what to do, and how to do it, police and military systems to control it all, and funded it all on the back of growth we thought would rise almost forever.
But going forward, the transformation that is currently going on in the economic background means that many organisations that we currently see and use every day, will have to undergo major changes, to adapt to this revolution.
It is a truism that we humans have an in-built normalcy bias that makes us believe that the future will be an extension of today; and in the most part it will, as these things change slowly, but occasionally, there come times in economic and social history where change speeds up, and revolutions occur.
The first of those revolutions was the start of the agrarian society, when men began planting crops, and thus the normal way of surviving using the nomadic lifestyle gave way to living in one spot.
Once men began planting crops, they needed to defend them, and those people who threatened to take that away, were likely to get short shrift from the end of a spear, or sword.
As these people further developed, land ownership began, those with the most strength stood to gain the most, and a landed aristocracy grew up, with Kingdoms, and Fiefdoms spreading across the land, and battles for the ownership of these rich fields and water.
The next major revolution was in the 1600’s with the foundations of the enlightenment, and the discovery in the 1660s of chemical elements giving birth to chemistry. The previous elements of Air, Water, Fire and Earth, gave way to Hydrogen, Oxygen, Zinc, Nickel, Phosphorous, and the other chemical elements.
By the early 1700s we knew about 50 of these elements, and we were about to undergo the industrial revolution as these new elements gave us ideas to turn them into Iron, Steel, Steam-Engines, Iron-clad Boats, Steamships and Trains using wood and coal for fuel.
A second phase occurred in the late 1800s, as oil became more widely discovered, and then in 1901 as the oil in Spindletop, Texas oil well doubled the national output, ushering in the era of the motor-car its success encouraging further drillng, and gave the world and the U.S., cheap oil.
Another phase began a few years later when those early engines gave Wilbur and Orville Wright the idea to strap one to some wings, and the era of flight began. With the mass production techniques as used first by Henry Ford, producing vehicles in growing numbers, the world took its next steps of the Industrial Revolution.
The era of the semi-conductor began the next phase of this industrial revolution, as micro-electronics gave us first the huge power hungry mainframes used in government defence departments for decrypting our opponent’s messages, and later gave businesses the tools to automate many of their administrative functions, with the Lyons Electronic Office, mini-computers, and International Business Machines (IBM) becoming a household name.
The third generation of these machines began when Intel produced its 4004 Integrated Central Processing Unit (CPU) used in those early calculators, and desktop computing would emerge just three years later, by then the number of ICs (Integrated Circuits)in a chip, had risen several fold, and Gordon Moore’s Law was proven as his prediction that we would double in computer processing power every 18 months or so became accepted, and Microsoft would begin its journey to industrial behemoth as the Altair computer was developed giving the young Bill Gates, and Paul Allen their first challenge – to produce a computer programming code (Beginners All-purpose Symbolic Instruction Code) BASIC for this machine which still suffered from having no keyboard. By 1980, the home computer gave us in Britain, dozens of start-ups, and Acorn and the BBC computers. The Acorn, Amiga, Amstrad, Apple, BBC, Commodore, Sinclair, Tandy, Digital Research, Sperry and dozens of others pushed the boundaries of these desktop machines bringing computing into the mainstream.
A spin off of the Acorn/BBC partnership, was the small chip design division into a separate company, that designed the Reduced Instruction Set Chips (RISC) processors, that allowed a limited instruction set to be used, and these computer chips were smaller and lower in power consumption than their Intel designed CISC (Complex Instruction Set Chip) competitors.
These Acorn RISC Machines (ARM) processors went into mobile telephony systems, calculators, PDA’s and some of the early computer systems that have long since been consigned to the history books, but like the Guinea Pig, or Hamster was to prove to the Dinosaurs, when the opportunity arose, they took over. By the turn of the millennium, the mobile phone had got more and more functionality, and the Apple Smartphone which now contained these ARM chips turned the humble cell-phone into the ubiquitous smartphone that 5.2 billion handsets later have transformed our lives, giving us TWITTER, FACEBOOK, YAHOO, BAIDU, YANDEX, ALI-BABA, AMAZON, GOOGLE and E-BAY, and dozens of huge software based American Corporations – Oracle, HP, IBM and others are moving their services into the cloud, so that their revenue streams don’t disappear in a puff of smoke.
BUT, the downside is, that now we’re watching the world evolve at its fastest pace since the start of this wonderfully complex industrial revolution and those not part of this new wave will have to shrink and adapt.
The hardware in mobile telephony has allowed Africa to finally catch up with its western counterparts, as people can now communicate over relatively long distances and create havoc for governments of all political persuasions, with handsets that give them access to Social Media, Finance and information, and allow them to make contracts, discuss ideas, and to build systems that enrich their lives, educate their children and provide health care.
But as this increases their wealth, they will be competing for the scarce resources that we all rely on, and this increased wealth will lead to a population explosion at first, before increased costs, better healthcare, and wider involvement of women in the economy brings the birth rate into line with the West…
But these changes will cause pain for the west too, as we now have a billion more consumers with access to mobile computing power, that 50 years ago, only governments could afford.
And the latest development to come out of this rapid technological change are Crypto-Currencies, allowing Africans to trade where no banks exist.
Of course the first of these was Bitcoin, which according to Bloomberg this a.m., MIT undergraduates are to be given $100 in Bitcoins to see where these Technological University students take this new development.
If you haven’t used Bitcoin, or one of the 80 or so others, then the time to get in is NOW, and one of the easiest ways to do that is through Qoinpro, who not only set up an account merely with an e-mail address, but make an initial deposit, followed by daily deposits into your account. And this means that you can buy increasing amounts of the necessary things in life that you need. And as more and more people use these digital currencies, the digits on your bank account move from central computers in a Bank somewhere out there to the digits on your smartphone. And once that happens worldwide, the Banks become almost superfluous to the needs of most humans.
These giants of the industrial age, which began as storage houses for the wealth of the rich who held their wealth in Gold and Silver and evolved into the masters of the universe, will lose some of their power.
Banks will still need their vaulting businesses. Yes, the gold and silver will still need storage, but the bankers will lose control of the currency that has been abused by Bankers for political ends since the dawn of the industrial revolution, and the privileges they have gained as the Banking Wizards were pulling the strings behind the curtain will be a distant memory.
But that will free us all to make choices for our selves that will REALLY make the Frog analogy I opened with a distant memory.
But we have some tough choices to make.
Look at the previous FIVE GREAT AGES of human progress:
The STONE AGE – lasted 3.4 million years.
The BRONZE AGE – 2,500 years
The IRON AGE – 1,500 years
The INDUSTRIAL REVOLUTION – 180 years
The DIGITAL REVOLUTION – 40 years
You’ll see the length of each age shortens as technology advances.
And the INFORMATION REVOLUTION is about to hit us, as handheld super-computers, and Big Data provides us with all the world’s information at our finger tips.
Google can barely keep up with the number of new Web-sites, and page changes; Twitter feeds, Facebook status updates, and the output from Universities and major Laboratory reports.
We’re about to be overwhelmed by an avalanche of new technologies that are taking shape in labs around the world. If your job isn’t in one of these new industries, you will probably lose it, and if it is, you may still need to adapt as your business’ competitors produce new products, that make your industry shrink or fail.
Being financially independent, having multiple sources of income, minimizing your taxes, and saving enough to live for 50 years in retirement, and the time when you can no longer work, will be the most critical decisions you need to make.
Technologies to cure cancer, stop you EVER getting it, cure arthritis, Heart Disease, regenerate new body parts – livers, hearts, kidneys. 3D printers to produce anything you want within hours of having the idea, and automated vehicles are about to change the world as we know it.
No matter what industry you currently work in, you will be affected, your town, or city, and those around you as these changes take place.
Being financially free will be the only way to cope…
Karl Marx encouraged the workers of the world to unite and to take ownership of the businesses – to free themselves from being wage slaves. Becoming a shareholder in these emerging industries will make you an owner, that will empower you, and we’ll do our bit to inform you of those that we think will be the Microsofts, Googles and Apples of tomorrow.
You will need to learn what being an owner really means.
But you will also need a money system, that can’t be corrupted by governments and bankers…
And you can see the discussion here…
However, I have also been critical of Governments who use legitimized counterfeiting (QE) to stem the natural economic downturns that occur in all mature markets as producers fight for market share, and prices are forced down as a result when the growth in incomes is stagnant, or falling, or savings rise in preparation for retirement, because this fixes one part of the economy at the expense of others, and that is never a good thing, as it merely transfers wealth to the few from the many.
The markets boom or bust as people switch their buying habits, change their tastes, or prepare for their retirements, and either begin borrowing, or saving at different times in their lives. And the demographics of the population (the birth rate, average age, sex and range) determines what is likely to happen and when.
For those with pension plans, their savings build up on Pension Company books increasing that company’s liabilities, and if the investments they’ve chosen fall significantly (such as during a stock market correction) then they risk not having the liquidity to pay out for those retirees when their bills come due, and in April 2012, that reached 10,000 people per day – in just the U.S. alone.
I am prepared to admit, that the Central Bankers, may, MAY, be raising the base money level for perceived socio-economic reasons, but the people who benefit most from such actions are always the Central Bankers, and those closest to them in the Banking Elite, as they receive the money first, enabling them to buy government securites, and draw huge salaries, while securing a steady income from future tax-collection.
Of course future taxes MAY or may not, cover the government’s debt obligations, as economies shrink or change shape, when the buying public changes its tastes and some industries prosper, as others decline, perhaps at just the point when welfare payments rise due to a faltering economy, but raising taxes on the apparently wealthier members of society is not always the way to go, as this discourages further investment, which of course is the best way to create meaningful jobs.
The problem for economists and politicians alike, is that the world is changing, and in ways we are only just beginning to perceive.
A CHANGING WORLD – NEW INDUSTRIES
Robots and other programmable production machines have capital costs – Eg: Robots, 3D-Printers, CNC & DNC machines etc, (you need to buy them) and they have operational costs, in the materials they use, or financial costs because you need to depreciate that capital cost over time, to ensure you have sufficient capital to replace it at some future point in time, whether to replace it on a like for like basis, or whether you want to, or need to improve its functionality.
But robots don’t have an income (except to the owner) and that income doesn’t always get spent in the location of the factory, typically like the human capital does – the worker’s wages. Which means the benefits don’t always flow equally in the factory location. The owner benefits – perhaps from a low taxation status in one country, and the factory produces little in economic benefit in the country in which it operates. A problem for governments the world over.
And, in a zero-sum economic world, there will always be winners and losers (Until we start trading with Martians, or Venusians if you prefer.) the trick is to not be on the losing side.
Money was invented to facilitate trade, and to ensure that value for value was transferred. Money is really – savings – and was initially just Gold and Silver as well as copper for small transactions – the origin of the British £,s,d (Pounds, Shillings, and Pence, which were gold, silver and copper respectively) because when I trade my wheat or sheep, or cows, maybe I want to buy something not now, but in 3 months or 3 years time perhaps: seed or fertilizer or a new Barn, for the new industry I want to create, and Gold and Silver retain their value over time, making saving possible and these metals perfect for money purposes.
The first currencies, were Gold and Silver certificates of deposit, as Mike Maloney of GoldSilver.com outlines – A currency is a receipt for money. Certificates of Deposit which were a claim on the gold and silver that was in the vault (the money was in the vault, the currency was in circulation) then began circulating in trade and the Bankers hit on a wonderful idea – they could make more of these certificates than there was Gold and Silver available to back them. Thus modern Banking was born, and bankers became richer than Midas. But if there’s no money there in the vault when people want it… Then what?
Now in recent years the world’s Central Banks have been inflating their Fiat currencies (Money dictated by government, and NOT backed by metal) which means that the value of currencies fall, as the amount or quantity of currency now rises – through QE., (Quantitative Easing) and the purchasing power falls. (the cause of Price-inflation)
ANTIDOTE TO QE – CRYPTO-CURRENCY
As an antidote to this debasement of the currency supply, Satoshi Nakamoto (If you want to read more on this person – Click HERE – Who is Satoshi Nakamoto) developed a series of pieces of software to create a digital currency, with a fixed supply of 21,000,000 units and a system for transferring that value to others by digital means. Currency is initially earned by “mining”, which is a way of linking the world’s networks together to transfer the currency between users, and earning credits along the way. Or you can buy them, and transfer them to your digital wallet.
Of course the value of these digital currencies will rise and fall, like any commodity or currency, and one of these currencies is, if you have not already deduced – BITCOIN.
As Bitcoin has grown, and others have realised its features, there have been many who have emulated it. Max Keiser, of RT fame, has already launched MaxCoin, and there are dozens of others – upto 80 as I recently read, However, it is also obvious that governments have now decided that it is time to legislate these digital currencies for political reasons – some valid, others less so. The perhaps valid reasons are that it has been used to purchase goods and services, that the government would rather you didn’t, such as: Drugs, Ammunitions, Firearms, and other items of dubious morality.
In use, no means of identification is necessary, though the block chain can be followed to trace ownership, however, this means that to all intents and purposes it is a private transaction, but increasingly governments want to track ALL transactions so that they can extract their pound of flesh (to pay off the debts to their banker paymasters amongst others.)
Mount Gox, a Japanese built business in Shiboya, acted as a coin exchange has been recently attacked several times, and money stolen by attackers, such that Mt Gox had to file for bankruptcy protection in Japan. Was this government sanctioned or controlled? Was it the Banker elite fighting back? Time will only tell. Though as in all financial systems, fraud is a possibility. However, much has been made that the Banks received Billions in subsidies to stave off bankruptcies, and little has been made of that wealth stolen from the citizens of various countries.
However, while researching this article, I found other web-sites that will perhaps replace Mt Gox, but one that is still in the early stages of development is QoinPro. The business strategy is unclear (and I asked them, but was unable to get a straight answer) however I suspect they will become a coin exchange, and trading house for which they will charge transaction fees as Mt Gox, They are registered in the Netherlands, and Hong Kong, so appear legitimate. To encourage memberships, they apparently mine for coins of several crypto-currencies, and for those participants they deposit sums directly into their accounts on a daily basis. So no mining fees, or set-ups for those who become members, and they have an affiliate system, whereby you receive between 7.5% and 16.5% on all currencies issued to those who you recommend, and who sign up under you. (dependent on the number of people at each level)
That means you get an initial deposit just for joining, but you also get daily top-ups, which though low at the moment, are designed to rise as they iron out any wrinkles over the coming months.
As a devout skeptic, I could not see the value of these crypto-currencies, but as I have given it some thought, it is just possible, that all existing fiat currencies will disappear, and be replaced by cryptographic-currencies. That will mean the banks will suffer as they will not have control of the money supply, and essentially the banking system becomes the network. However, we can expect them to fight back. Governments will not have control, as these are essentially stateless currencies, and the currency will be resistant to legislative processes, and these new currencies will circumvent legislation as it tries to keep up. Evolution happening faster than the bureaucrats can keep up. The Chinese recently made trading of BitCoin illegal, though it can still be used for purchases, but will the legislation stop other currencies from emerging? It has not so far. And will it stop peer to peer transactions?
Having thought extensively through the implications, it is clear, that crypto-currencies are here to stay. So what happens if crypto-currency exchanges begin, backing the digital currency with real money – Gold and Silver, and the crypto-currency digital wallet becomes in effect a bank account?
Then we have a parallel banking and finance system outside the control of any government, and true free-market principles will flourish. Having become a member of this web-site, I have to-date in a little over a week received over 100 coins split amongst 5 currencies, and two more currencies to be added shortly.
That end result, may be a few years away, so in the absence of monetary metal backing, it is safe to say, that you will still need to use some of your savings for Gold and/or Silver, and use the crypto-currency (or currencies) of your choice perhaps for everyday transactions – Of course, eventually it may be possible to buy these precious metals with them.
The following tables are not exhaustive and only serve to give an impression about coins available. Some of these coins can also be collected through QoinPro.
|NMC||Namecoin||SHA256||21,000,000||2,016||50 NMC / Block|
|PPC||Peercoin||SHA256||No Limit||1||103.10 PPC / Block|
|DVC||Devcoin||SHA256||No Limit||2,016||5000 DVC / Block|
|TRC||Terracoin||SHA256||42.000.000||540 Blocks||20 TRC / Block|
List of Scrypt based Alt-coins
There are many Scrypt based altcoins.
|LTC||Litecoin||Scrypt||82,000,000||2,016||50 LTC / Block|
|DOGE||Dogecoin||Scrypt||100,000,000,000||240||250,000 DOGE / Block|
|WDC||Worldcoin||Scrypt||265,420,800||120||50.79 WDC / Block|
|FTC||Feathercoin||Scrypt||336,000,000||504 Blocks||200 FTC / Block|
The last three were discovered on another coin exchange – McxNOW., which offers exchange of some of the above, but also offers interest on deposits, based on the value of the trades conducted on the exchange for each of the currencies – So if you hold BTC, your interest gets paid in BTC, and if you hold one of the others, in that too.
This video tells you a little more.
And if the currency or the alternatives listed above follow the path of Bitcoin, their value wil rise in line with it.
BUT it won’t be a straight line, and the unpredictability for some will be too much to handle.
However, in time, they may, just MAY replace currencies created by the Banks. And unlike those currencies, they are not simultaneously a debt to the Banker class.
In Africa, already many people now use these crypto-currencies exclusively for daily transactions, perhaps because of the distances involved, and the costs of installing fixed line telecommunications systems, is such that the newly emerging technologies in wireless telephone masts have been the engine of growth, and as banks were only available in cities, this has meant many Africans have leap-frogged the west as these technologies have become actively entrenched in the economy, allowing that continent to develop at a much faster pace than hitherto.
The West may have to run to catch up. YOU can begin your journey HERE –
And if you wish to learn why Bankers are a menace… Watch This.
Addendum. 23rd April.
And is it all about to come crashing down around their ears?
This video page of the End of the Bankers might just be the Clue…
Today’s rant is about Money…As the Fed, prints another 85,000,000,000 crisp new dollar bills, we have to ask…
“Where does that money go?” “Well, they don’t actually print that money do they?” Well, that depends on who you ask.
The money gets loaned into existence, so perhaps no, they don’t really print off that money, it just gets lent to the Government via an I.O.U. The Government gives the IOU to the Fed, who pays the government the money, then the Fed,, takes that IOU to the major Banks, They lend the money to the government at the prevailing interest rate (i.e. the discount rate), and the bond (IOU) then gets sold to the money markets who are essentially looking for a safe return on their surplus assets – you know, the money they don’t want to risk in the stock market, so that they can pay the pensions of those pensioners who have already retired, or the insurance companies, who need to have spare capital to pay out to claimants or for funerals etc..
The government of course get the money from taxes to pay the interest, (and the principal – that’s the money borrowed) and as long as the taxes covers the interest payable, the money markets really don’t give a damn.
However, when times are tough, and the economy suffers, the taxes the government collects go down, and their spending doesn’t, so the Fed steps into the breach, to fund the deficit. Of course when a government is fighting a war, it needs even more money, and of course people in the military do not produce anything, so they don’t add to the stock of goods in the economy. And despite their protestations, they don’t really pay taxes, though they see it going out of the pay packets – If I give you $100.00 from the Tax coffers, and you give me $10.00 back by way of tax – how have you paid a tax? All you’ve done is give me back some of the money that others have earned…(and that goes for all government workers by the way) Anyway, that’s another story for another day.
Sometimes though the government spends way more than the economy can really accommodate, and that disincentivizes people, who don’t start a business, or who move overseas to escape the high taxation. In recent years the U.S. has experienced an increasing number of people who are renouncing their citizenship and moving overseas to escape the high taxation.
Of course, the inventive ones search for ways to escape taxes, and of course there are those who think government should be a lot smaller.
And that leads me to the meat of this rant… A Japanese man Satoshi Nakamoto decided to try to escape his governments free spending ways and as a software developer came up with a way for people to exchange values without.money changing hands, and a way that wasn’t controlled by the government. That was back in 2008. In 2011. Bitpay Inc., the company was founded, and Bitcoin became a worldwide success. Initially the Bitcoin, traded at a discount. However, in the last year, the price has risen and fallen, and risen some more.
During the last few weeks, the price reached the dizzy heights of $700, and briefly touched $878. On a Max Keiser show the other day, Max interviewed one of the early adopters, who suggested that Bitcoin was the future, and that the far east had become its main focus of attention as it had been more widely adopted there. He added that the U.S. had reluctantly adopted it, partly for technology reasons, as certain parts of the country lacked the technological infrastructure.
Bitcoin has been seen by its evangelists as the antidote to Big Government, and a rein on their free spending ways, which ultimately will rob government of its fiscal recklessness. However, as the value of Bitcoin has risen, alternatives have begun to spring up. Litecoin, and upto 80 others have begun to vie for the attention of the value exchanges.
In my own locality, the local Bus Company has a no cash payment system known as MIDAS. Here you load up a pre-pay card, and then when you board the bus, you deduct the payment electronically, and thus don’t need to carry cash.
This is one more nail in the coffin of cash, its exponents argue, but as lots of other alternatives compete for the investment dollars of the world, we have to ask… Is this so?
What is money?
As I’ve said in previous posts, money has to serve several functions to really be useful.
Its most important function is as a store of value, though portability, durability, fungibility and is widely accepted as such are others.
Bitcoins, Litecoins, and the 80+ others might serve some of those, but how do we know for example whether they are limited in supply?
When we buy a Bitcoin, we are buying software. Software is just a series of magnetized elements on a storage medium – 0s and 1s. However the software is written by humans, and unless we can see the source code, and the source code of the compiler used to translate the human readable code into the computer code, then we can’t be REALLY 100% sure – Can we?. And given that we humans are a trusting species, we tend to take on face value when we hear that a company has carried out the necessary checks – we have a tendency to trust them.
But as we have learned in recent years there are organisations who have been less than trust-worthy. The Banks for example.
JPM recently agreed to pay $13bn, as a result of its misdemeanours. HSBC agreed to pay £1.2bn (circa $1.9bn) for money laundering offences in December 2012, and was also fined $2.5bn in October 2013, with 16 major financial institutions colluding to rig the LIBOR rates. HSBC is also alleged to have been the recipient of $15 Trillion for onward transfer to other Banks in Europe (The full story can be read in – “The Coming Battle” ) – during the heat of the 2008 crisis
Gold and Silver, are only less useful these days as money, because the Banks have colluded to lower their true value, by market manipulations. The Fed which hasn’t been audited since 1953 properly gave a cursory glance to journalists in 1973, but has resisted all attempts since. In fact stories abound that the true amount of Gold that they are supposed to be holding, is far lower than the 8,700 tonnes for which they have entries on their Balance sheet.
So, why would we trust a software house, with millions of shareholders to satisfy, to limit, the number of these crypto-currencies.
We can but ask.
My firm belief is that sometime in the next 2-3 years, the Chinese government will announce to the world, that it has stored in its vaults 10,000 tonnes of the yellow metal, and if, (or when) that happens, then our current world currency system will come to an end, and if a world currency is to be formed, at its heart will be precious metals. And the price to buy will be perhaps 8 times what it is now.
A period of tumult is coming.
Gold and Silver will protect those with the foresight to prepare for this eventual re-organisation. The Coming battle is for a limited time available – Sorry No longer available for FREE