Mar 092015
This was originally posted on by Jeff Thomas Those who trade liberty for security deserve neither and will lose both.John Adams In the end, more than freedom, they wanted security. They wanted a comfortable life, and they lost it all—security, comfort, and freedom. When the Athenians finally wanted not to give to society but for society to give to them, when the freedom they wished foremost was freedom from responsibility, then Athens ceased to be free and was never free again. Edward Gibbon, English historian and member of Parliament, commenting on Ancient Athens in The History of the Decline and Fall of the Roman Empire, published in six volumes between 1776 and 1788. Libertarians (myself included) now grind their teeth on a daily basis, as they watch the parade of irresponsible economic measures concocted by First World political and banking leaders. Each measure seems more outrageous than the last, both in its inability to correct the situation and its outright thievery from the purse of the populace. The EU recently announced that they will introduce a level of quantitative easing (QE) that promises to be the economic equivalent of an overdose to a heroin addict. In addition, the EU, the US, Canada, and other First World countries have created bail-in legislation that will allow their bankers to literally steal the funds of their depositors. Further, political leaders on both sides of the Atlantic have announced that pensioners’ funds are “in danger,” and their solution is to make it mandatory for the funds to contain a percentage of investment in government bonds—an investment that promises to go off the proverbial cliff in the coming years. So, what’s the plan? Are the leaders of the world’s most “advanced” nations planning collective economic and political suicide? Or are they simply so stupid/arrogant/out of touch with reality—pick your explanation—that they just don’t understand thateconomic collapse is now baked in the cake and it is now only a question of time? Or do they have an alternate plan? I must confess that I’m cynical enough to regard many of the leaders in question as being stupid, arrogant, and out of touch with reality. However, I do also believe that some of them are clever enough and devious enough to have a plan in place as to how they might continue to not only hold their power, but expand upon it. (That desire is, of course, a virtually universal truth, as regards (more…)
Dec 292014
Published on Dec 28, 2014 Gerald Celente, Publisher of the Trends Journal, says, “All it takes is a shock wave to end the game. You don’t know where it’s going to come from, but the stage is being set for a shock wave. . . . On one end, they can keep the interest rates low. On another end, they can even invent another quantitative easing (money printing) scheme. But on the bigger end, you have volatility in the world commodity markets and geopolitics that could end this scam in a second. . . . All the pieces keep adding up into a very serious economic and geopolitical game changer for 2015.” On war, Celente says, “It’s getting so easy to take the people to war. . . . Hatred is very easy to build between and among nations. So, I believe as these economic house of cards continue to collapse, they will get the people’s mind off it in a snap by getting us into more war. As I say, when all else fails, they take you to war because you can see the path. Go back to the crash of 1929, recession: depression, currency war, trade war then world war. Sound familiar? Join Greg Hunter as he goes One-on-One with top trends forecaster, Gerald Celente, as he gives his 2015 forecast.… Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Dec 282014
By The Event Chronicle on December 22, 2014 · Finance (Zero Hedge) Via Zero Hedge comments from AI Tinfoil, The Global Monetary Reset is under way, but people have not noticed it yet. The key is the move to zero interest rates. Government debt almost everywhere is too high to ever pay off, let alone pay a traditional rate of interest on.  As debts come due, including as bond issues mature, the only option governments have is to roll over the debt and accumulated interest, and the only way they can afford to do that is if money printing is a continued practice and interest rates are at or near zero.  QE is the latest name for money-printing, inflating the amount of currency available.  Logically, QE dilutes the value of a currency by inflating the number of currency units in circulation, and, theoretically, should lead to price inflation. However, if all nations engage in monetary expansion, the effects of money printing on exchange rates may be effectively concealed by a balance of expansion.  Or, as in the case of the US dollar, a currency with the status of world reserve currency may be expanded with relative impunity by the nation creating that currency, effectively exporting its inflation to the rest of the world that continues to sell to that nation, or trades in a monetary system based on that currency. Injections of QE into an economy with weak fundamentals is likely to result in speculative bubbles as QE funds show up in investors’ hands and not in the hands of general consumers. Inflation has become a necessary element of economic life according to the mainstream meme of economists.  Inflation is a key strategy in coping with immense and increasing debts.  Debt so large that it cannot be paid must be inflated away or governments must default.  Deflation makes current debt increasingly difficult to pay or service out of deflating GDP and tax revenue. Exporting nations have engaged in competitive exchange rate reductions to gain or maintain competitiveness for their exports.  A strong currency hurts export competitiveness but lowers the cost of imports.  A weak currency raises the cost of living of residents who must buy imports – a common feature for nations that import oil, for example.  There is a necessary balancing act between export competitiveness and consumer price inflation, regulated often through exchange rate manipulation.  Some of the Euro zone nations are learning the (more…)
Oct 232013
Published: Tuesday, 22 Oct 2013 | 11:23 AM ET By: Michael Pento | President of Pento Portfolio Strategies De-crowning the dollar, and the ‘collapse’ ahead CRISIS, PRIVATE DEBT, RISING, CORPORATE LOANS, CONSUMER CREDIT, FEDERAL RESERVE, PETER SCHIFF, INFLATION, QE, TEA PARTY, KARL DENNINGER, NETNET, US: NEWS, BUSINESS NEWS | Tuesday, 22 Oct 2013 | 11:23 AM ET The gradual erosion of the U.S. dollar’s status as the world’s reserve currency has been greatly hastened of late. This is due not only to the perpetual gridlock in D.C., but also our government’s inability to articulate a strategy to deal with the $126 trillion of unfunded liabilities. Our addictions to debt and cheap money have finally caused our major international creditors to call for an end to dollar hegemony and to push for a “de-Americanized” world. China, the largest U.S. creditor with $1.28 trillion in Treasury bonds, recently put out a commentary through the state-run Xinhua news agency stating that, “Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated.” In addition, Japan (our second largest creditor holding $1.14 trillion of U.S. debt) put out a statement through its Finance Minister last week saying, “The U.S. must avoid a situation where it cannot pay, and its triple-A ranking plunges all of a sudden.” (Read more: Fed in ‘monetary roach motel,’ won’t taper: Schiff) It is both embarrassing and hypocritical to be lectured by Japan about an intractable debt situation. However, the sad truth is we have become completely reliant on these two nations for the stability of our bond market and currency. We arrived at this condition because our central bank has compelled the nation to rely on asset bubbles for growth and prevented the deleveraging of the economy by forcing down interest rates far below a market-based level. For example, instead of allowing debt levels to shrink, the Fed’s virtually free money has now caused consumer credit to surge past the $3 trillion mark by the second quarter 2013; that is up 22 percent in the past three years. And of course, the Federal government massively stepped up its borrowing beginning in 2008, piling on over $6.8 trillion in additional publicly traded debt since the start of the Great Recession. (Read more: It’s back with a vengeance: Private debt)   Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)