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.

Would you buy a car from these idiots?

Have you awakened yet and started to buy negotiable goods such as metals, art, antiques or land. Time is running out for good prices and availability.

Global central bankers beg for help from governments

Meanwhile, back in the USA…

The Fed and rate hikes,
‘A Brave New World’

Translation: We don’t have a clue…

These financial wizards have run the world’s economies into the ditch. The Keynesian economics practiced should have had these individuals fired and then brought up on charges for banking mis and malfeasance. Everywhere these naifs have placed their peanut butter and jelly coated fingers became a fiscal disaster zone.

Global central bankers, stuck at zero, unite in plea for help from governments

Central bankers in charge of the vast bulk of the world’s economy delved deep into the weeds of money markets and interest rates over a three-day conference here, and emerged with a common plea to their colleagues in the rest of government: please help.

Mired in a world of low growth, low inflation and low interest rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary policy may falter unless elected leaders stepped forward with bold measures. These would range from immigration reform in Japan to structural changes to boost productivity and growth in the U.S. and Europe. [snip]

Fiscal policy was not on the formal agenda for the conference, but it was a steady part of the dialogue as policymakers thought through policies for a post-crisis world. One of the central worries is that households and businesses have become so cautious and set in their outlooks – expecting little growth and little inflation – that they do not respond in expected ways to the efforts central banks have made.

That has included flooding the financial system with cash, and voicing a steady commitment to their inflation targets in an effort to make people believe they will be met. [snip]

The European Union is falling apart, banks are charging negative interest rates in hopes that people will spend money. They are but they’re buying metals, land and things that will hold value with the coming economic crash.

Given that all the Socialist/Progressive economic policies haven’t worked so far, according to the Banking Poobahs, they just need to try them harder.
Nothing like grinding what doesn’t work right into the ground.

As Fed nears rate hikes, policymakers plan for ‘brave new world’

Federal Reserve policymakers are signaling they could raise U.S. interest rates soon but they are already weighing new tools they may need to fight the next recession.

We don’t think they need to worry about fighting the next recession. Their record shows they didn’t do very well fighting this one. We’re mired hip deep with a batch of shlubs worrying about inflation.

A solid U.S. labor market “has strengthened” the case for the first rate increase since last December, Fed Chair Janet Yellen told a central banking conference in Jackson Hole, Wyoming. Several of her colleagues said the increase could come as soon as next month if the economy does well.

Further rate hikes are expected to be few and far between as the U.S. central bank tries to balance a desire to fuel growth against worries it could overheat the economy.

But Fed officials at three-day conference that ended Saturday also said they need to consider new policy tools for use down the road, such as raising the inflation target or even Fed purchases of non-government-backed assets like corporate debt.

Such ideas would test the limits of political feasibility and some would need congressional approval. The view within the Fed is that it could take effort to win over a public already skeptical of the unconventional policies the Fed undertook during the last crisis. [snip]

Has anyone grabbed one of those strengthened labor market jobs they yammer about so much?
Maybe they should toss Keynes book on economics into the trash and start use Friedman’s textbook. Ah but that is like telling Mohammad to give up the Q’oran.

Socialist/Progressives are ardent believers in the Lord Keynes. They just cannot figure out why he isn’t in the pantheon of fiscal Gods with all the smart ones.

Laissez le bon temps rouler

What do you do when the “Good Times Stop Rolling”? Will you be standing outside the bank doors with a fistful of unsecured paper currency? Keynesian monopoly money that the Central banks and the Fed have used to scam the populations for all these years.

There’s a problem coming up. Your turn to roll the dice and the best you can do is land on Boardwalk. Whadda know? Somebody built hotels on the Boardwalk and they don’t want paper money for the rent. What can you get for that funny money RIGHT NOW.

Let us take a look at what that toilet paper will buy or exchange for goods.
2016 YTD-performance
Oh boy, that doesn’t look good.

Getting “physical”…from Rico

When normally silent and invisible figures like Lord Rothschild publicly express their ‘concern’ over the Keynesian unbacked paper fiat-money experiment by Central Banks (and very ‘privately’ increase their Gold investments like he just did) maybe it’s time to start “paying attention.”
– It’s also time to consider holding “paper” promises vs. getting “physical.”

By “paying attention” I ask what are “paper” promises (IOU’s) going to be ‘worth’ in any one of these three likely economic scenarios?*
– Deflation, Stagflation, Hyperinflation.

*I’m NOT holding out any hope of a return to normal business and private sector cycles absent central-planning manipulation or corrupt crony “rigging” any time soon.

By “physical” I do not mean tugging-on the old sweats and going to the gym or for a run around the block, I mean hard assets like precious metals, oil & gas, real estate….tangible things. Those with serious wealth to protect have already moved into antiques and art as well.

The attached 2016 YTD chart of returns on assets is my point. Silver is in the #2 spot with a +36.6% return, and Gold is at #4 with a +26.19% return. Oil (WTI) shows a +9.61% return and NatGas +7.38% return.
– In a ZIRP and NIRP economic environment, how does that compare with returns on Certificates of Deposit or Bonds? [zero interest rate policy; negative interest rate policy]

– How about holding good old CASH? The return YTD for holding USD is -4.61% (not factoring-in an inflation rate of 8-10% on top of that). OUCH.

Since the last time we posted about silver here, the price rose from $13± to $20± per ounce. Gold has come up in price. If you follow the mechanizations of the bankers on the COMEX, you will see the price driven down for a short period. That is when the large buyers make purchases. This manipulation is done by selling off the ETF’s in silver pushing down the price,then buying them back bringing up the price again.

Tell me honestly, how long do you actually believe this nonsense can go on? Are you believing that Obama and Hillary care about this country? That this Congress cares about something other than their wallets?

If you do a fast vacation trip to Venezuela should help you understand how all this ends.

Gold, Silver or Dross

Gambit or Prelude?
$1.25 Minimum Wage?…from Rico

It was difficult not to ‘notice’ the body-slam delivered to the Silver bullion spot price by the wiseguys today (8/22).

Aug 22 preparing for COMEX Silver expiry Aug25

It IS difficult to know whether this was merely a “gambit” by the usual suspects prior to the Silver option expiry on the  CRIMEX…..er, COMEX this coming Thursday 8/25 or instead a prelude to a significant price rise ahead.
– The same thing was done by the same crooks to Silver Wheaton, driving their share price down to $10 before it rose to $30.

Then there are the expected ‘antics’ by the crooks preceeding the annual FED Jackson Hole to consider…

The FED and the USG should be ‘thanked’ for the inflation we do not have (well, that’s what they tell us…no inflation, no COLA… would they lie?).
– Here is an example of their ‘inflation creation’ for you to consider:

Aug 22 COMEX Silver expiry Aug25Five Silver quarters (pre-LBJ, pre-1964) with a face-value of $1.25 contain ~$20.00 worth of Silver today.
– Why even debate a paper fiat Federal Reserve Note “minimum wage” of $15.00 when a Silver-based “minimum wage” of $1.25 would yield $20 in purchasing power today?

Now forget about ‘flipping burgers’ for a moment and think about what this would mean to the entire US economy.
– It’s one helluvofanargument to END THE FED right now! The thieving bastards……….

Do you still wonder WHY they hate Silver and Gold bullion so much?
– THIS is exactly why they “rig” the spot markets.

Observations

The idea of a cashless society sounds good until you get to the one 800 pound gorilla in the wallet: The Government.

The downsides? One is a loss of anonymity because cash allows consumers to make transactions without a paper trail.

Loose changeIf the market place does go cashless, all of your money is in one place: The bank. You tell me who controls the banks? Any money that is in any account can be grabbed by the IRS for any reason that the government chooses and you will go through hell trying to get it released.

A Progressive/Socialist Administration may decide you have too much in your accounts for the earnings you make; you’ll need to “share” that with others.

Stores to customers: “Cash not welcome here”

To get a glimpse of the future of commerce in America, look no further than Sweden.

The Scandinavian country is largely a cashless society, with consumers relying on mobile phone payments or plastic. While the U.S. is still far from achieving the same level of cash-free existence, increasing numbers of restaurants and retailers are now snubbing the lowly dollar bill.

Some merchants such as SweetGreen, a salad chain, refuse to open their registers for cash, telling customers they can pay only with mobile payments or cards. With some newer vending machines, only a card or mobile wallet will get that cold Coca-Cola to roll down the chute. [snip]

“What we’ve seen is a push toward electric payments because of convenience, especially for Generations X and Y and onward,” said Greg Burch, vice president of strategic initiatives as Ingenico Group, which makes payment systems for merchants. “The phone has become more personal than the wallet has.” [snip]

Another negative impact is stores that refuse cash may be effectively shutting out many lower-income customers. About one out of 13 U.S. households are unbanked, which means they have don’t traditional banking accounts, such as checking or savings accounts. Such families tend to be lower-income and rely on cash to make their purchases.

While federal law allows merchants to set their own rules about which types of payments to accept, at least one state makes it illegal to refuse cash: Massachusetts. The issue came to a head recently after a rash of stores catering to well-heeled young professionals posted “no cash allowed” at their registers.

SweetGreen, the salad chain, changed its cashless ways in its Boston locations after learning about the rule, according to The Boston Globe. SweetGreen didn’t return CBS MoneyWatch requests for comment. [snip]

Of course, the bigger hassle for consumers might be the flip side of going cashless. Many retailers and restaurants still have cash-only policies, which can prove increasingly irksome as consumers visit the ATM less frequently.

Cash isn’t in any danger of disappearing, but maybe it should: The U.S. has much to gain by phasing out cash, according to researchers from Tufts University. Writing in the Harvard Business Review, they noted that the U.S. spends $200 billion each year to keep cash in circulation. (China also has high costs related to reliance on cash, they noted.) [snip]

Another downside is the tendency to spend more than one has, since they buy without really handle any cash. Direct Deposit, auto-pay for bills and paying with the phone or a card removes the sense of cash accrual.

Many Millennials don’t have much more than $1000 in their savings or IRA’s. Without any thought for the future that $7.50 coffee can become quite pricey in tough times.

Gold, Silver or Dross

WalletGeorge Soros has to be one of my least liked persons. what he did as a youngster working with the Nazis and is politics now bring new meaning to the word ‘Vomit’. As an investor, one has to pay attention to what he does. He’s not always right but anyone that amasses the amount of money he has, isn’t wrong very often.

Loon Watch has been a believer in accumulating negotiable metals as protection against idiot governments.

Problem: BREXIT, the EU

and Central Banks

A Bearish George Soros Is Trading Again

After a long hiatus, George Soros has returned to trading, lured by opportunities to profit from what he sees as coming economic troubles.

Worried about the outlook for the global economy and concerned that large market shifts may be at hand, the billionaire hedge-fund founder and philanthropist recently directed a series of big, bearish investments, according to people close to the matter.

Soros Fund Management LLC, which manages $30 billion for Mr. Soros and his family, sold stocks and bought gold and shares of gold miners, anticipating weakness in various markets. Investors often view gold as a haven during times of turmoil.

The moves are a significant shift for Mr. Soros, who earned fame with a bet against the British pound in 1992, a trade that led to $1 billon of profits. In recent years, the 85-year-old billionaire has focused on public policy and philanthropy. He is also a large contributor to the super PAC backing presumptive Democratic nominee Hillary Clinton and has donated to other groups supporting Democrats. [snip]

Mr. Soros also argues that there remains a good chance the European Union will collapse under the weight of the migration crisis, continuing challenges in Greece and a potential exit by the United Kingdom from the EU.

“If Britain leaves, it could unleash a general exodus, and the disintegration of the European Union will become practically unavoidable,” he said. Still, Mr. Soros said recent strength in the British pound is a sign that a vote to exit the EU is less likely.

“I’m confident that as we get closer to the Brexit vote, the ‘remain’ camp is getting stronger,” Mr. Soros said. “Markets are not always right, but in this case I agree with them.” [snip]

We shall see. the question is who will be sitting around until the financial quake hits.

Collectivist Banking

When Central Banks dump paper metal to knock down the prices of gold and silver, you know that they need fiat money to go on a bit longer. Perhaps so they can extricate themselves from some tangled positions before the collapse, or to close out long currency holdings and get into metals at lower prices.
Why isn’t going to matter, the fact that it is happening should be a cause of alarm for those of you aware of the arriving end game.

Click at period to connect.
[Most Recent Quotes from www.kitco.com]The end game is becoming a socialist utopia with debased currency and no economy: Venezuela North.

As the chart shows, there were 18,000 contracts dumped in a ten minute span (about $2.3 billion in paper gold)
goldintra 16may16

Silver contracts were dumped also
silverintra 16may16
Any country that is on a standard (gold, silver or any other metal) cannot manipulate it’s currency to cover debt. It cannot have debt for it cannot print money that isn’t covered by whatever standard it is pegged.

That is why Progressives want the fiat dollar; it allows them to spend with abandon. Look at all of the large economies engaged in the fiat currency: China, India, the EU the USA, Russia, South American Countries. All are in some economic stress, most in a severe condition. Of those only India China and Russia are buying up gold.