Collectivist Banking

So many Americans believe that the Federal Reserve is a Governmental institution because it has the word Federal in the name. You couldn’t be more wrong. It is a private banking group formed by Woodrow Wilson a Progressive President and it just plays with your money. We have a Federal institution; it is called the U.S. Treasury.

Ron Paul: “The Fed’s Massive Bubble Is Creating A World Of Economic Pain”

There shouldn’t be a Federal Reserve, but it exists, and it’s constantly creating a world of economic pain.?

Each Federal Reserve bubble must turn into a bust. It’s unavoidable.

According to the central planners, the “solution” for the bust is more creation of new money and credit. That’s the only way they can keep their “system” alive.

When the Fed’s stock market bubble burst in 2000, it responded by creating new money and credit. Lo and behold, this led directly to the next bubble that was even bigger.

When the housing bubble burst in 2008, Wall Street was bailed out by taxpayers, and TRILLIONS of new dollars were created as the “solution.”

And now, almost 10 years later, we have an even bigger bubble than 2008.

The central planners at The Fed have done it again.

How much longer will we allow this “system” to last? How much economic pain will it take to return to sound money again?

To understand this one needs to look at currency against the price of a commodity benchmark, usually gold at a given point in time. The best point is when Nixon took the Country off the Gold Standard. Gold was priced around $300USD so we can start there.
Then it took $300 dollars to buy one ounce of gold. (12 troy ounces in a pound) Now gold is selling for close to $1300USD an ounce. Did gold rise up that much or is the dollar worth less (worthless). Loking at this another way, if you have $10 bill and the government prints another $10 bill, is your money worth $20 or worth $10, each bill now worth only $5 each. One way to find out is to try to exchange the dollars for another currency. Then you will find out what they believe the value of the dollar is. We are a debtor nation, like others with a fiat currency. We have nothing to back up the dollar except the “Full Faith and Credit” for what that is worth.
An example of where this financial idiocy terminates, observe Venezuela.

Maduro faces financial nightmare in Venezuela — just in time for Halloween

With its coffers empty and its financial moves restricted by U.S. sanctions, Venezuelan President Nicolás Maduro’s government is facing a nightmarish scenario with the approach of Halloween, when a series of debt payments totaling more than $3.5 billion are due.

Analysts said the government will do everything possible to make the payments, even if it means further cuts in already reduced food imports, which would deepen shortages in a country where a majority of people cannot get three meals a day.

But a default cannot be ruled out because of the precarious state of the country’s finances, the low level of reserves and the reluctance of strategic allies like Russia and China to continue lending money to Venezuela. [snip]

But the government could also decide to suspend all imports of food and medicine, De La Cruz added.

“They have demonstrated that they do not care about the well being of the people if it risks their hold on power,” he said.

The government has averted default in recent months because of timely loans from the Russian government, which so far has always seemed ready to provide the millions of dollars needed by its foundering Latin American ally. [snip]

“The Russians are not very happy,” Dallen said, noting a report in June that Venezuela had failed to make a $1 billion payment due to Moscow.

One billion dollars may not look like much in the United States, but it’s a lot for Russia, said Dallen, who often consults with Washington officials on Venezuelan affairs.

The Russians may well be approaching the point of concluding that continuing to invest in Venezuela is too risky, he added.

These ending ain’t pretty, usually finishing off with lots of gunfire and blood.

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Collectivist Banking

It is instructive to note which countries are buying up gold (and other metals) and who is playing with paper. Note that the Uited States isn’t among the buyers of metals. We are a debtor nation; that places us in a subservient position.

Watching the obvious and blatant monkey-hammering of the precious metals (Gold and Silver) on the CRIMEX….er, COMEX this week one might be unaware that the unbacked-paper games [read: naked shorts] being played in Chicago to manipulate ‘spot’ prices downward don’t matter much to a number of sovereign nations.
– In fact, almost everyone but the insider option traders of CME’s paper market are ignoring said shenanigans.

There are no Chinese buyers this week…and no Chinese market…because the entire country is closed to celebrate their annual “Golden Week” holiday, which makes the orchestration of drive-by paper raids on the metals possible in Chicago.
– The Chinese return from holiday and are open for business again on 09 October. Watch the precious metals price action after that.

It’s not just the Chinese who value Gold, we all know the Russians and the Indians do, too.
– But those ‘conservative’ Germans are demanding Gold at a pace that outstrips the Chinese.

Surprised? You should not be.
– The Germans have had some very unhappy experiences with inflation and valueless/worthless fiat currency, and they remember those hard, unpleasant, lessons quite well.

Observations

The job losses due to the storms will affect the service industry for some time to come as cleanup does take time.
What remains to be seen is the pickup is the construction and related industries. There should be a short term boom there.

US lost 33,000 jobs in Sept, vs 90,000 jobs increase expected

Hurricanes Harvey and Irma damaged not only Texas and Florida but also the U.S. jobs picture, as payrolls fell by 33,000 in September. That drop came even as the unemployment rate fell to a 16-year low of 4.2 percent, the Bureau of Labor Statistics reported Friday.

The jobs loss was the first monthly decline in seven years, when the economy was still pulling out of the Great Recession.

Even with the surprise jobs number, the closely watched hourly wages figure jumped higher, to an annualized rate of 2.9 percent.

 Economists surveyed by Reuters expected payroll growth of 90,000 in September, compared with 169,000 in August. The unemployment rate was expected to hold steady at 4.4 percent. It declined even as the labor-force participation rate rose to 63.1 percent, its highest level all year and the best reading since March 2014.

“The lousy returns from the September jobs report will make little impression on observers, who essentially gave the labor market a free pass due to the impact of Hurricanes Harvey and Irma,” said Curt Long, chief economist at the National Association of Federally Insured Credit Unions. [snip]

The BLS reported that average hourly earnings were up by 12 cents on the month to $26.55, equating to a 2.9 percent gain for the year. That’s well above the 2 percent target the Federal Reserve sets for healthy inflation growth, meaning that the central bank is more likely to approve another interest rate hike at its December meeting.

Cognitive dissonance

Tax cuts only

 

benefit big earners

If you aren’t making any money, you aren’t paying any income taxes. Now how in hell can a tax cut affect you? All the clangor and hollering about taxes is nothing but political BS to distract you from the real issue: Those clowns in DC aren’t doing anything to solve the deficit.

If they really want to help the lower and middle classes, they would get rid of the excessive fees and taxes on the phones, Internet, tires, textiles, Federal excise taxes on coffee liquor and tobacco. Get rid of the inheritance (death) tax.

As for the Income Tax, make it a flat 15% on all income including interest and dividends; no deductions for anything. Everybody pays the 15% big earners will pay more. Progressives don’t like it because it is FAIR.

No corporate tax; they don’t pay that anyway, you do. That is passed through to you as a cost of doing business. You pay that tax when you buy the product or service. You get their tax on income from money paid out as wages and not put into the business for expansion. The rest is paid out to stockholders as dividends; that is collected in their taxes.

Can you tell me why this cannot be accomplished? There isn’t any reason except recalcitrance on the part of the likes of Sens. McCain, Corker, Murkowski, Collins and Paul. Why are these individuals reelected again and again?

We know why the Democrats won’t vote to change the system. They don’t believe it is your money.

What’s in your wallet?

Not as much as you think. If you want to know what the value of the dollar is, look at the interest rate you get for it.

Dollar Deepens Dive as Caution on Currency Grows

The dollar was hit by fresh selling in Asian trading Friday, a day after notching a 2½-year low, as reasons for caution on the currency continued to mount.

The Wall Street Journal Dollar Index was off 0.4% in Asia to 84.38, putting it down 9.2% for the year.

Thursday’s 0.7% drop was part of a broader move by investors into haven assets such as gold and government debt—a dollar “capitulation trade,” said Rob Rennie, currency-strategy chief at Australian bank Westpac . It was fueled in part by the European Central Bank, which raised growth forecasts and thus spurred the euro. [snip]

Haven moves are also at play, with rallies in gold and government debt. Gold is at its highest level in a year, topping $1,350 a troy ounce, while there has been broad buying of global sovereign debt in recent days. Yields on 10-year U.K. bond fell back under 1% during Asian trading Friday while yields on 10-year Japanese debt dropped below zero. The market is concerned that North Korea will launch another missile Saturday, when the country celebrates its founding—the occasion for a nuclear-bomb test last year.

“The dollar can’t find any loving at the moment,” said Rodrigo Catril, a foreign-exchange strategist at National Australia Bank in Sydney. Given the unresolved fiscal issues in the U.S.—debt-ceiling measures “kicked down the road again”—and political wrangling between President Trump and his own party, he adds, it isn’t hard to understand why.

Toon in

Collectivist Banking

How much longer do you believe this idiocy can continue? We have debased the currency to the point where the Government plays games with the Fed to keep interest rates low while lying about there being no inflation.
They can squander the money on worthless programs to keep themselves in office, or fess up and pay that money on soaring interest rates on the growing debt. You seen the choice they made.

The big question is,

“Why keep voting for them?”


No inflation. Pssst…I have this bridge you might be interested in…from Rico

Inflation? What inflation?
There’s NO inflation here! That’s why the 2017 COLA increased by only 0.3% [for Congress and Common Core math students that is 3/10 of ONE percent.]

But hey! Good news, in the last ten years (1996-2016) TV prices have fallen by 100%.
Huzzah!

Rejoice happy debt slaves.
Your beloved FED (that privately owned, for-profit bank) is staying under it’s inflation rate target of 2%.

Never you mind that the consumer items indexed on the attached charts reflects an overall inflation rate of +57.1%.

  • Food and Housing are up >50%.
  • Health Care and Child Care are up >100%.
  • College Tuition is up >200%.

Feeling better now?

Have you figured out how all this happened? Look back to LBJ’s “Great Society”. LBJ had to pay for the Viet Nam War; he didn’t want to take any tax dollars to fund that since his agenda required increased spending as is.

There was a Pot o’ Gold to be had and the Congress gave it to him: The Social Security Fund. The Fund was removed from it’s protected place and put into the general fund and spent on the war, his failed Great Society and every social program that Congressional members found for their districts. The Fund never was put back into it’s protected place. Now Social Security is failing too.

If the SS fund were to be removed from the General Fund, the National Debt would soar, spending would have to be curtailed AND taxes go up considerably. All because of American’s greed for current FREE lifestyle and still wanting a future payoff too.

You’re not going to get it.