(ANTIMEDIA) 2016 is the year many, many Americans began to question whether or not our elections, and to a lesser extent, our democracy (insert “it’s a constitutional republic, big difference!” here) are rigged. As I’ve argued many times in the past year, there is plenty of evidence suggesting these skeptical Americans are, indeed, onto something with their suspicions.
But the corporate media has come out in defense of America’s “democracy” — and political elites are defending the system, too. In the wake of Trump’s recent rhetoric regarding the “rigged” system, the ruling class of the United States is peddling the fiction that somehow Trump’s irresponsible sensationalism is solely to blame for the newfound feelings of illegitimacy plaguing our elections.
Take, for example, Monday’s POLITICO piece entitled “What if Trump won’t accept defeat?”:
A documentary film from my brother-from-another-mother, (haha) none other than Aaron Russo's 2011 release of Freedom to Fascism, which is just as relevant today - (if not more so) as it was when it was released!
My good-conscience compels me to share with you that which I sincerely believe is of the utmost importance to the future of our Nation and the World at large. Though it may not be popular nor generate well-deserved “shares” or “likes,” for the sake of posterity and clearing my conscience, I wish to share an article I penned five years ago back in November of 2011. Though most of us opt to avoid the topics of politics, money, and religion like the plague – I think we do so at a great disservice to ourselves and our progeny. Those who refuse to learn from the lessons of history are doomed to repeat them, and as eloquently stated by Thomas Jefferson, “All tyranny needs to gain a foothold is for people of good conscience to remain silent.” I publically lift my silence herein, and hope that one or more of you eventually do the same. My article, entitled “2012-2021 Global Spring, the Time is Nigh,” outlines the absolute and irrefutable root cause of all the political, financial, and intractable economic and social problems the Nation and the World appear to be irreversibly mired in. Thanks for reading, caring, and sharing!
Following the absolute failure and systemic insolvency that shocked global economies in 2008-2009, people of The United States , and the World at large, missed an extraordinary opportunity to champion a revolutionary shift toward liberating global citizenry from the corrupt tyrannical grip of the evil twins who have implicit mastery and command over a sacred trinity of deceit, illusion, and destruction.
Breeding Ground of Corruption
The evil twins to which we refer are the egregiously flawed Democratic/Communist/Socialist Governments of the G-20, in collusion with the Global Banking Cartels to which they grant coordinated fiat license to commit continuous legal fraud against the masses.
If you don’t know about finance and you want to learn, where do you start? Start with the money, says Paul Brodsky of Macro Allocation Inc.
Paul started his career in finance in 1982 and worked as a bond trader, options trader, fund manager, before founding the research and consulting firm Macro Allocation. He said he had to unlearn many of the principles first taught to him and focus on what’s really driving stocks, bonds, and the economy.
As a result, he returned his investors’ money in a mortgage-backed securities fund right before the housing crash in 2007 because he saw it coming. Many of the investment legends like Marc Faber and Bill Gross follow him because of his unique understanding of money, credit, and central banks.
There is a profound tale that originates from the deserts of Sindh in the Northwest of India, in which a beautiful princess is held captive by occult forces in a fortress surrounded by rushing rivers. Each of the aspiring suitors as they tried to reach the maiden drowned in its rushing waters. Eventually a prince figured out that the rushing rivers in the desert of Sindh were a planted illusion and having broken free from their trance he calmly walked across the dry sand to claim his beautiful princess.
Instead of drowning in the Sindh, if you were to wake from a planted illusion to discover that very little in life is exactly as it is presented and what we have been taught to believe is based on a lie, would you be dejected or would you calmly engage in a new beginning?
Prior to 1933, the name “dollar” was used to refer to a unit of gold that had a weight of 23.22 grains. Since there are 480 grains in one ounce, this means that the name dollar also stood for 0.048 ounce of gold. This in turn, means that one ounce of gold referred to $20.67.
A 1922 20 dollar gold certificate – this note was actually redeemable for gold on demand, i.e., it was a money substitute. Today irredeemable banknotes are “standard money”.
Now, $20.67 is not the price of one ounce of gold in terms of dollars as popular thinking has it, for there is no such entity as a dollar. Dollar is just a name for 0.048 ounce of gold. On this Rothbard wrote:
No one prints dollars on the purely free market because there are, in fact, no dollars; there are only commodities, such as wheat, cars, and gold.
Likewise, the names of other currencies stood for a fixed amount of gold. The habit of regarding these names as a separate entity from gold emerged with the enforcement of the paper standard.
Confidence is truly a big part of economics (small “e”); that is why orthodox Economists (capital “E”) spend so much time with asset prices, infatuating themselves with bubbles while also convincing themselves they aren’t that. It isn’t something that can be conjured out of nothing, manipulated like a regression variable (raise stocks X, confidence increases Y, economy grows Z). But it can work in the other direction, such as when policymakers claim the “wealth effect” and then watch the economy instead sink. The real danger in terms of money and economy might be when the world wakes up to what I wrote above; policymakers have been calling a depression a recovery for nearly a decade. The implications of that might be where this possible event horizon sits; that central banks have exhausted themselves and we still got depression anyway.
The ultimate effect of continued inflation of central bank balance sheets will likely be the complete breakdown of the currency system. There’s little doubt about this eventual fate. What’s more, the prospect of helicopter drops will help accelerate this unpleasant outcome.
Unfortunately, at this point there’s no way to reverse course without triggering the breakdown. Our advice, acquire some physical gold if you haven’t already done so and prepare yourself mentally and spiritually for the final phase of the crack-up boom. Remarkable things will happen.
One interim scenario is that some stock market investors will believe they’re getting rich. There’s no telling what sort of mania could be propelled by the dual effect of perpetually low interest rates and perpetually braindead central bankers…or how many points outright debt monetization could add to the DOW.
There’s great potential that the stock market will become a crude barometer of how successful central banks are at destroying the accumulated wealth and capital of the world. One signal they’re succeeding involves rapidly rising stock prices in the face of a stagnating economy. Another signal involves rapidly rising stock prices in the face of sluggish earnings. A third signal involves rapidly rising stock prices in the face of declining currency values.
All of these signals are already visible to the naked eye. Their further magnification will presage the final bust.
The point is, at this twilight in the rise and fall of our 45-year fiat based currency system, escalating stock prices are not something to be celebrated. Rather, they’re a signal that the end is nigh. Remember this in the coming months when you see DOW 20,000 hats circulating on the floor of the NYSE.
Ben Hunt of Salient Partners writes convincingly that this status quo narrative is starting to falter very badly, and in the face of events like Brexit, becoming harder and harder to maintain:
“… status quo political and economic institutions – particularly Central Banks – have failed to protect incomes and have pushed income and wealth inequality past a political breaking point.
They made a big bet: we’re going to bail-out / paper-over the banks to prevent massive losses in the financial sector, we’re going to inflate the stock market so that the household sector feels wealthier, and we’re going to make vast sums of money available for the corporate and government sectors to borrow really cheaply.” Narratives die hard, but when the ‘omnipotent central bank’ narrative finally and conclusively fails, bond investors will suffer a religious experience as the market rushes to reprice these heavily overvalued bonds.
One conundrum stumping investors in recent months has been how, with investors pulling money out of equity funds (at last check for 17 consecutive weeks) at a pace that suggests a full-on flight to safety, as can be seen in the chart below which shows record fund outflows in the first half of the year - the fastest pace of withdrawals for any first half on record...
... are these same markets trading at all time highs? We now have the answer.
Recall at the end of January when global markets were keeling over, that Citi's Matt King showed that despite aggressive attempts by the ECB and BOJ to inject constant central bank liquidity into the gunfible global markets, it was the EM drain via reserve liquidations, that was causing a shock to the system, as net liquidity was being withdrawn, and in the process stocks were sliding.
Fast forward six months when Matt King reports that "many clients have been asking for an update of our usual central bank liquidity metrics."
What the update reveals is "a surge in net global central bank asset purchases to their highest since 2013."
And just like that the mystery of who has been buying stocks as everyone else has been selling has been revealed.
But wait, there's more because as King suggests "credit and equities should rally even more strongly than they have done already."
Like all employees of the FBI, James Comey lives off the sweat of the American taxpayer. His large salary, upon retirement, will be converted into a very generous pension. Like most federal employees in a high ranking position like his, Comey continues to look forward to decades of living at a standard of living far above what is experienced by ordinary people in the private sector.
To maintain this life of comfort, all he had to do was agree to look the other way as a powerful politician clearly — by Comey's own admission — broke federal law.
Naturally, this same treatment would never be afforded to an ordinary taxpayer, who would likely be looking at years in federal prison for offenses similar to that which Hillary Clinton has apparently committed. Moreover, Comey even went out of his way to do his best to ensure no federal prosecutor would proceed with charges when he claimed that "no reasonable prosecutor" would proceed with charges. It wasn't enough for Comey to simply not recommend charges. He had to pre-emptively condemn any prosecutor who might proceed with charges.
Some have claimed that Comey was forced to cave to Obama administration pressure in order to protect his family. Of course, Comey could have resigned his position rather than take a position he regarded as unethical. Then the task of clearing Clinton would have fallen to Comey's successor. There are precedents for this. When ordered by Nixon to fire the special prosecutor in the Watergate scandal, Attorney General Elliot Richardson resigned rather than do what the president mandated. Comey could have done the same, but then he would have had to give up some of his comforts and privileges.
When I was a boy, one of my favorite holidays was Independence Day. I was an enthusiastic student of the War for Independence. My favorite book was the How and Why Wonder Book of the American Revolution by Felix Sutton. I spent a lot of my childhood reading about the colonial era, the lives of people like Sam Adams, Paul Revere, Thomas Jefferson, Patrick Henry, and George Washington. I learned all about our American forefathers’ struggle for liberty against a king who merely treated them as revenue-generating pawns. I was nine years old when the US celebrated its bicentennial and my mother wallpapered my room with a red, white, and blue colonial American themed paper and I had various prints of famous revolutionary war scenes hanging on the walls. I looked forward every year to the day celebrating the signing of the Declaration of Independence.
Over the years, alas, my enthusiasm became dampened so that now, if I am exposed to any mainstream media celebrations of Independence Day, I do not feel the joy I once did. Instead I feel more like Charlie Brown at the beginning of A Charlie Brown Christmas. Remember in that childhood classic how, when Christmas approaches, Charlie Brown tells Linus that he knows he should be happy, but instead he always ends up feeling depressed. I increasingly get the same feeling as people gear up for 4th of July celebrations.
Now, much older and perhaps wiser, when I hear the popular media gushing about our freedoms, the Declaration of Independence, the Liberty Bell, Celebrate America concerts, and all the rest on the Fourth of July, instead of being happy, I feel a tinge of sadness. I like celebrating the Fourth of July by, say, gathering with friends, teaching my children about the Founding Fathers, reading the Declaration, and watching fireworks, but when I think about where we started and what we have become, like Charlie Brown I end up melancholy. This is because the politicians and the media talking heads clearly have no idea what they are talking about. Most seem to not even know what liberty really is. The only politician at the national level who spoke about freedom and the Constitution with actual conviction was Ron Paul and they laughed him off the stage. Instead, popular journalists and pundits try to make us believe that we are free because we are allowed to have other people vote away our liberties.
Do you feel something is wrong with the United States and the global economy? Despite a respectable recovery and low unemployment, many people aren’t happy with their current economic situation or their outlook for the future. From rising prices for basic necessities or schooling, to harsh competition and low pay for lower income jobs to negative interest rates—the poor and the middle class all have their problems to deal with.
Experts in the government or central banks are trying to manage a suboptimal situation but cannot isolate the problem, let alone offer solutions. Or maybe they know what’s wrong but don’t want to talk about it because the truth is too shocking.
Enter Viktor Shvets, the global strategist of the investment bank Macquarie Group. He not only dares to think outside the box but also isn’t afraid to openly voice his opinions, which are fascinating and shocking at the same time.
“Longer term, what we’re headed toward is a systemic reset: the realization that the system as it is structured now just isn’t working, and furthermore, it cannot work. The main policy levers since 2007 have been how do we rebuild the status-quo? How do we solve what we think is a cyclical problem? And what we find now in 2016 is that those were faulty premises to begin with. It was never a cyclical problem, so status-quo policies aren’t going to work, and in fact they’re actually harmful, because they prevent the rest of the system from identifying actual workable policies for the needed systemic reset.”
In 2008; the central bankers of the West went berserk with their monetary crimes. Interest rates were driven to near-zero. Money-printing was driven to near-infinity, as represented by the Bernanke Helicopter Drop.
As a condition for engaging in monetary policies which were more insane (i.e. more criminal) than anything ever done in our economies; the central bankers promised an immediate Exit Strategy , in early 2009: the normalization of interest rates and the normalization of money-printing. Through the middle of 2016 ; we’re still waiting.
The question, never asked by media drones, and never answered by the criminal central bankers is this. If near-zero interest rates (and now “negative” rates) along with exponential money-printing make our economies stronger, why weren’t we doing this 100 years ago? Why haven’t we always engaged in such policies, like we permanently engage in such policies now? It’s because you cannot build any economy through monetary chicanery.
Political and economic events tend to swing like a pendulum, or move like the tides. What you think you know today, according to the mainstream mood, can swiftly change tomorrow. Sometimes this is mere random coincidence, but often it is engineered by the powers that be. When discerning coming trends, the only assumption I recommend people operate on is that the globalists will play the long game; the short game is only relevant as far as it serves the long game.
What is the long game? The globalists have openly admitted their goal in numerous mainstream publications, but my favorite example is the January 1988 issue of the Rothschild run magazine The Economist. The issue pronounces boldly that investors should “get ready for a global currency” by 2018. I examine this issue in detail in my article The Economic End Game Explained.
There is no ready-made answer in Austrian business cycle theory (ABCT) to the multi-trillion dollar question now looming over the global economy and markets. Is the present virulent asset price inflation disease likely to enter any time soon its final phase of bust and recession? Will this happen even though the Federal Reserve has flip-flopped on even token steps toward policy normalization and leading foreign central banks (i.e., the Bank of Japan, ECB, and Bank of England) to pursue experiments with negative interest rates and novel forms of mega-balance sheet expansion?
Astounding levels of debt in the western world in particular is the greatest financial, economic and monetary challenge facing the world today. To get debt under control is imperative. It could involve a short period when individuals legally opt to become debt free.
A hard currency regime is implemented and private central banking monetary agencies such as the Federal Reserve become totally defunct. Afterwards there is a lengthy period of shock and awe in which every asset deflates against gold until it finds fair market value with a price that is not derived from leveraged finance.
If we simply care enough to look and see what’s hidden in plain sight, each and every one of us - regardless of orientation, will suddenly conclude that it’s time to stop fighting with one another, as the majority of such infighting and divisiveness is fostered by the subversive encouragement of none other than a plainly visible common enemy – our Oligarch’s.
This model now pegs the “fair value” of UST’s 10s at 1.95%, though as Bloomberg points out, rightly, it figured “fair value” at 2.85% before this latest reconfiguration. These mainstream models and interpretations are all GIGO – garbage in, garbage out. Nobody can figure out bonds because nobody can figure out money, and thus what real monetary policy is. Yet, the answer is so obvious that no one seems to want to believe it. As that article I quoted above from June 2013 reads, everyone is wrong based on one, simple miscalculation.
Although I was raised under the doctrines of the Roman Catholic Church, and respectful thereof - as I am with all other peaceful religions of the world, I do not consider myself to be particularly “religious,” but rather a logical skeptic, and persistent seeker of empirical truth in every realm.
Since I typically keep rather abreast to such matters of import, I’m quite surprised that I did not catch wind of this newly presented scientific knowledge, which by initial accounts became widely available to the public through a motion picture titled “The Principle,” theatrically released in 2014.
Stumbling upon it of late was quite the revelation, and raised for me the following 3 questions:
In my view, this new bout of turmoil in financial markets is the prelude to the final demise of government currency.
If I’m right, a long-expected collapse in the purchasing power, and of the very concept of fiat currency, will evolve from current events. The purpose of this article is to explain why monetary theory predicts a currency collapse.
The question at the heart of today’s market instability is the validity of fiat currency; that is to say, forms of money issued and sanctioned by individual governments, with no backing other than faith in those governments’ creditworthiness, and the enforcement of its use by law. The risks they impose on all of us will be evidenced one day by both the speed of the fall in each individual fiat money’s purchasing power, and inevitably by their comparison with gold’s more stable purchasing power. Essentially, an awareness of the dangers of unsound money will gradually become evident to every economic actor.
So far, or at least since the days when fiat money was freely exchangeable for gold, central banks have managed to enforce upon us their currencies as money, originally on the basis they were gold substitutes. That pretence was finally dropped in 1971. The purchasing power of fiat currencies has never been seriously challenged since, except in relatively few extreme cases, such as Zimbabwe and Venezuela. Not even the financial crisis eight years ago threatened a collapse in fiat currencies, when banks had to be rescued with unlimited extra quantities of money and credit.
We expect $10 trillion of “paper wealth” to be wiped from the U.S. equity market over the completion of this cycle, because it is not “wealth” at all. Again, since every security that is issued has to be held by someone until it is retired, the main consequence of Fed-induced speculation is the opportunity for wealth transfer - the chance for existing holders to sell their overvalued securities to some poor bagholder who will reap the whirlwind over the completion of the market cycle. We wish this on nobody, but it’s unavoidable that someone must assume that role. Those bagholders would best be those who understand our concerns and either accept the risks or choose to deny them.
Sharing your scoops to your social media accounts is a must to distribute your curated content. Not only will it drive traffic and leads through your content, but it will help show your expertise with your followers.
How to integrate my topics' content to my website?
Integrating your curated content to your website or blog will allow you to increase your website visitors’ engagement, boost SEO and acquire new visitors. By redirecting your social media traffic to your website, Scoop.it will also help you generate more qualified traffic and leads from your curation work.
Distributing your curated content through a newsletter is a great way to nurture and engage your email subscribers will developing your traffic and visibility.
Creating engaging newsletters with your curated content is really easy.