Wealth Confiscation for the Digital Age: the New “Cash Tax”
by Brian Hunt • May 10, 2016
Directly from your bank account. “Negative interest rates” have become a phenomenon with economists and the media. But I’m writing to tell you something about negative interest rates you haven’t heard. You certainly won’t hear about it in the mainstream press.
What’s coming at you is a historic event. It’s something our grandchildren will hear stories about, much like the Great Depression or the Cold War. It could send the price of gold much higher in the coming years.
If you know what’s coming, it could mean the difference between having lots of free cash in retirement and barely getting by. And please remember this warning: Social Security will help even less than you think.
To understand the gravity of this moment, let’s cover one of the most bizarre ideas in the world…
Click through for the rest of the article. This does indeed seem where we are headed. The FED already steals from our savings accounts with inflationary practices but that is not going fast enough.
The Labor Department has determined that 151 million people in the US have jobs. And that the unemployment rate is 5 percent.
You might be impressed by that until you look at who the government considers “employed” and how difficult it is to actually be “unemployed.”
This is going to get a little confusing, so hold onto your seats. But let me start by saying that the Obama administration didn’t set this policy. Both parties have enjoyed a mushy description of joblessness for decades.
Click through for the rest. This is an important read for those using the employment numbers as a what to gauge the economy.
By Turd Ferguson | Sunday, May 8, 2016 at 11:11 am Our friend, Paul Mychresst, has written this extraordinarily comprehensive report on the current state of the global gold "market". His timing couldn't be better. As price holds firm against the extreme efforts of The Bullion Banks, it is absolutely critical that you take the time to read this tremendous summary of the current situation.
As you've often heard me state, the global gold "market" is much more vast than the Comex-centric analysts would have you believe. There are literally hundreds of moving parts that affect price...and the price "discovered" on the Comex has no direct relationship to physical supply/demand fundamentals.
This new piece from Paul Mylchreest is the sort of thing I would have loved to have written myself...if I had the time and expertise to do it! With Bullion Bank leverage soaring to extreme levels and paper obligations to deliver gold reaching heights unseen for years, it is CRITICAL that you take the time to read through this report.
The boss of Britain’s pension lifeboat has told MPs the cost of BHS’s collapse could rise to £300m if it has to foot the bill for the retailer’s thousands of pensioners.
Alan Rubenstein, the chief executive of the Pension Protection Fund (PPF), said that the fund had estimated the cost to be around £275m, but this could rise to £300m as the number was based on estimates in 2012.
BHS collapsed last month with a £571m pension deficit and putting 11,000 jobs at risk.
Click through for the rest. This is yet another pension at risk story. Pensions really are at risk around the globe. And when the pensions fail the next step is the bank accounts.
I have been exploring and analyzing the present and proposed litigation of Gold and Silver Precious Metals (PMs). I have reached some conclusions and want to share my views and offer you an important opportunity to join with me to address this problem in a never before used litigation approach.
Are you a PM share investor? … A PM producer? … A company whose business was injured as a result of the manipulation and suppression of the price of Gold or Silver? If so, please email me as soon as possible, and provide contact information for me to confer with you. If your entity meets the above criteria, I will speak with you personally as soon as possible.
I have investigated Class Action Suits, and other conventional causes of action. I have not been satisfied by my findings. We not only need a cause of action, we need a prevailing case. We need a winning plan of action, not just another law suit on top of the heap of other emerging law suits.
Well, today is starting out slow, as most of Asia, and Pan Asia is closed for holidays, as is a lot of Europe, as they still celebrate May Day, which fell on a Sunday, so naturally, they take Monday off. And I don’t believe that things in the U.S . will get hopping wild today either, unless the ISM Manufacturing Index which is scheduled to print, has a rabbit in its hat…
There are a ton of Central Bankers globally, out on the speaking circuit, headlined by the European Central Bank (ECB) President, Mario Draghi, who is probably going to throw the euro under the bus, as the currency trades nearer the 1.15 handle than it does the 1.14 handle this morning. There are a couple Fed members that will speak, and it will be interesting to see if they sing from the same song sheet. Historically, they don’t, but maybe this time they can share the same song sheet.
By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
Financial expert Alasdair Macleod says the most important economic news concerns the U.S. dollar. Macleod explains, “I think the most important point is actually the dollar has turned. The panic move into the dollar by miners and producers of raw material . . . was driving the dollar up. That has now ceased. China has now started buying those raw materials, base metals, oil and so on and so forth. So, the result is the commodity crisis is over. That, actually, is the biggest driver of the dollar, which is pushing it down.”
If and when gold breaks out of this cup and handle formation, which is a matter of probability and not certainty, the next real battleground in a new bull market will be around $1550. One of the more interesting variables will be the manner of any breakout, and the 'time' it takes to reach a minimum measuring objective.
This is quite appropriate as 1550 marks the major support level for the channel in which gold had been moving prior to the recent bear market.
A successful cup and handle formation, should this occur, would mark a bottom for gold and quite possibly a resumption of another leg of the bull market.
It will be interesting to see how the future movement of gold as a cross to the US dollar may unfold. If the money masters were wise, they would permit it to rise back into the old trend channel and seek to find a balance in the wagers with the available physical supply.
I would not normally write something like this but it seems I had to. Last week, Bob Moriarty of 321 Gold wrote a story with the exact same title http://www.321gold.com/editorials/moriarty/moriarty041916.html and came to the conclusion “…is zero”. He began his article by saying “So anyone telling you Comex is about to default either doesn’t have a clue as to how commodity markets work or they are deliberately lying to you.”
He then goes on to say “But the chance of a ‘Gold Derivatives Time Bomb,’ is also zero. There is no such thing. And there is no such thing as a ‘Commercial Signal Failure’ or a 400 ounce gold bar made of tungsten.” Is he serious? When well over 100 pieces of paper “call” on the one underlying real ounce …there is no chance of failure? Is he trying to say the commercials can NEVER ever be wrong and forced to cover because they cannot deliver “promised” but non existent gold? Is he trying to say 400 ounce tungsten bars have not already turned up? I do want to point out, this is the same man who said a derivatives blowup can never happen. I think those at Bear Stearns and Lehman Brothers would beg to differ with him! We already know for a fact, we were only hours away from a total financial meltdown in 2008 were it not for the Fed magically creating $16 trillion. It is clear to me, since the amount of global derivatives far exceed the underlying assets they represent, true “settlement” or “performance” is a foregone impossibility as the “pie” only gets bigger. The only question now is “how big is TOO big”?
Economist John Williams has long predicted the $16 trillion in U.S. dollar assets held outside of America will be sold in a panic. The time draws near for that scenario to unfold, and Williams explains, “When people start selling the dollar, or dollar denominated assets, you will see the value of the plunge. We have had a remarkable rally in the dollar since mid-2014, and it is up over 30%. It is going to be going down by more than that, and we are going to be headed to new lows. We have the waffling of the Fed and the beginnings of the perception that the economy is in serious trouble, which generally would be negative for the dollar. We have started to see selling pressure on the dollar. It has been inching lower. It’s down year to year now. . . . The selling is going to intensify, not only with large central banks, but with corporations that will be beginning to dump their Treasury holdings. . . . Nobody wants to be the last one out the door when you have a panic like this. It’s not a panic yet, but the potential certainly is there.”
The hackers behind a large-scale Bangladesh bank hack went further than simply stealing money. Now it turns out that they created malware that could compromise the internationally used SWIFT payment system.
BAE Systems researchers tell Reuters that the hackers who took the central bank of Bangladesh for a ride compromized the SWIFT system using malware. SWIFT has confirmed to Reuters that it’s “aware of malware targeting its client software.” The organization plans to issue an update for its software some time today to protect the payment systems from attack.
This is fascinating. Click through for the full article. My answer: go gold!
"Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.
When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin!
You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out."
Andrew Jackson, in a meeting with the Bankers in Philadelphia, February 1834
Just as in the case of AIG, which was 'bailed out' at 100 cents on the dollar not to help them, but to provide a big cash infusion to places like Goldman Sachs, so Wall Street continues to socialize their reckless gambling with the help of their 'friends' in the government and the media.
Akin to ancient Rome, the United States has over-extended herself. She has created a climate that could easily be transformed into a war on a slight pretext. Wars, as it is well known are also a means a nation can extricate itself from debt and financial responsibility. – The U.S. Endgame, Jeremiah Johnson (nom de plume, retired U.S. Special Forces, excerpt from Zero Hedge One would have to be blinded from either denial or ignorance not see the escalating political and military tension between the U.S. and Russia/China. While the U.S. media spins the story into a tall-tale in which BRIC nation leaders are the provocateurs, the truth is that the U.S. has transformed its illegitimate “war on terror” into war on the world in a last-gasp attempt hold onto the economic and geopolitical hegemony it has enjoyed for several decades.
The Wall Street traders are all-in on the scam. The marginal bond price is “discovered”, in fact, when fast money traders buy the stuff on 95% repo leverage while front-running the central banks.
So Donald Trump’s wild pitch in this instance can’t hold a candle to the truly scandalous arrangement under which Uncle Sam’s debt is actually priced. Even the treasury debt in commercial bank vaults is mainly there because regulatory authorities permit the fiction that it is risk free and therefore require zero capital backing.
Egon von Greyerz continues: “But both Ponzi and Madoff were small time crooks compared to governments and central banks today. Because whether we take, Japan, China, the EU or the USA, they have all created Ponzi schemes which are exponentially bigger than what Ponzi did. Admittedly no government is promising the 50% return that Ponzi did or Madoff’s 10-12%. Instead they are giving investors of their “Ponzi” bonds the illusion that they will receive the capital back. To paraphrase Mark Twain, investors are neither going to get the return on their money nor the return OF their money, at least not in real terms.
Click through for the rest. This is why the gov decoupled gold from the dollar; the ability to run the ponzi.
Dr. Paul Craig Roberts: “The same factors that produced that 2008 crisis are still there. So the question is: When does it (the financial crisis) manifest (itself) again? What sets it off and why won’t the Fed simply do the same thing (paper over the problem)? Just create more money and buy up the bad instruments and keep the situation from ever being (properly) fixed.
Money manager and financial expert Michael Pento says every corner of the globe is in economic trouble. Pento contends, “I think we are going to have a global synchronized collapse amongst the developed world economies: Europe, Japan, the United States and China, and you should be hedging against this market. Don’t forget, we have the most overvalued, most dangerous stock market in the history of the world. . . . Record valuations sit on top of an unprecedented earnings and revenue recession. The only thing we have left is the promise of ZIRP, QE and negative interest rates that don’t work. All they do is inflate asset prices. You should be short the market, and you should be long precious metals.”
In the Puerto Rico default what happened in the universally feared Chapter 9 Bankruptcy that would end the life of the Muni bond market?
Well apparently according to some, an island has no such relief if the USA owns it. Puerto Rico has a person in congress as an observer, but no Senator. Long Island, another playground of the sociopathic 1%, better not get Trump angry with them. Fire Island is toast if you hear someone say President Trump. Thank goodness it is said that a President was born in Hawaii.
Here is another important question. Is today the day someone somewhere figured out what Jim is up to or what they have considered scary risk is actually outrageous opportunity?
There will be arguments as to which came first – the overnight rise in gold price on global after-hours markets, or the Shanghai Gold Exchange (SGE) pm fix – but the latest SGE figure of CNY 261.88 was at the higher end of trading being equivalent to around US$1,258 at the current CNY/USD exchange rate. Whether the SGE gold fix is leading, or following, the general price trend is thus open to question. But perhaps the principal driver of the overnight rise in the gold price will have been the fall in the US dollar, with the Japanese central bank keeping its monetary policy steady at its latest meeting. The Japanese yen thus rose around 2% against the US dollar, which has a significant impact on the US Dollar Index, which fell around two-thirds of a percent.
Needless to say, though, the move above the $1,250 level, which had been strongly resisted on the U.S. and London spot markets yesterday, was breached in the overnight trade.
The upper middle class is well and truly doomed by self-delusion and the pathology of entitlement. Two recent articles describe America's entitled (and doomed) upper middle class: the top 5% of households with incomes above $206,500 annually and individuals with incomes of $160,000 or higher annually. (source: Historical Income Tables: Households Census.gov) The first describes how businesses are responding to the new Gilded Age in which spending by the top 5% has pulled away from the stagnating bottom 95%:
In an Age of Privilege, Not Everyone Is in the Same Boat Companies are becoming adept at identifying wealthy customers and marketing to them, creating a money-based caste system.
Click through for the full article. Interesting read.
You must face the absolute and incontrovertible fact that you are going to be redundant from the majority of your pension, left out in the cold to starve and die, thereby reducing the need of funds by social security, medicare and your pension company. If you are not worried you simply are in total denial.
Do not even think about retirement. If you are retired think about a job. Those that will make it through this experience alive and sane are the already subsistent and those so poor now that they are used to it.
You know what I think. I think one needs to be really careful with who they trust to hold their wealth.
If nobody is working in one out of every five U.S. families, then how in the world can the unemployment rate be close to 5 percent as the Obama administration keeps insisting? The truth, of course, is that the U.S. economy is in far worse condition than we are being told. Last week, I discussed the fact that the Federal Reserve has found that 47 percent of all Americans would not be able to come up with $400 for an unexpected visit to the emergency room without borrowing it or selling something. But Barack Obama and his minions never bring up that number. Nor do they ever bring up the fact that 20 percent of all families in America are completely unemployed. The following comes directly from the Bureau of Labor Statistics…
The government continues to twist their numbers and create the make-believe narrative they desire you to swallow. Click through for the full article.
For a century, elites have worked to eliminate monetary gold, both physically and ideologically.
This began in 1914, with the UK’s entry into the First World War. The Bank of England wanted to suspend convertibility of bank notes into gold. Keynes counselled wisely that the bank should not do so. Gold was finite, but credit elastic.
By staying on gold, the UK could maintain its credit, and finance the war effort. This transpired. The House of Morgan organised massive credits for the UK, and none for Germany. This finance was crucial, and sustained the UK until the US abandoned neutrality and tipped the military balance against Germany.
Despite formal convertibility of sterling to gold, the Bank of England successfully discouraged actual conversion.
Gold sovereigns were withdrawn from circulation and turned into 400-ounce bars. This form of bullion limited gold ownership to the wealthy, and confined gold’s presence to vaults. A similar disappearance of gold as a circulating currency occurred in the US.
Alternatively, we can cling to a state of denial, and the dominant system will be replaced by arrangements that are not necessarily positive. The reality that cannot be spoken is that all the financial systems we believe are permanent are actually on borrowed time. One way we can judge this decline of resilience is to look at how long it takes systems to recover when they are stressed, and to what degree they bounce back to previous levels.
Another is to look at the extremes the system reaches without returning to "normal": for example, interest rates, which rather than normalizing after seven years of suppression are being pushed to negative rates by increasingly desperate central bankers. The key insight here is that financial systems and indeed economies function as natural systems. Central planning/central banker manipulation appears to control the system, but this control masks the reality that the system is increasingly fragile and prone to collapse, not just from internal dynamics but as a direct result of central bank manipulation.
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