Jim Grant: Let’s Talk About Our Monetary Problems Using ENGLISH

Jim Grant on CNBC today discussing:

  • The ‘bad idea’ to attempt to resolve the national debt problem by minting a trillion-dollar platinum coin. Supporters say the US Treasury would be able to deposit said coin with the Federal Reserve to act as an asset, backing part of the outstanding debt.
    • As Jim notes, this is not an honest approach to discussing the root problem – which is based in the monetary system, itself.
    • Besides that, the idea is preposterous and just shows how crazy this system has become.  Things don’t hold value because someone says they have value.  A thing has value based on the public/market demand for that thing.
  • Prior to 1971, government spending was constrained by both interest rates and the fact that there was some semblance of a gold-backed currency via Bretton Woods.  But today, we have neither constraint – the Fed’s zero percent interest rate policy combined with the current, purely fiat monetary system has created the unstoppable spending spree that has led us to these extreme levels of debt.  If there is anything left at all as a bar against further spending, it is the debt ceiling.  But even that is now being threatened with a proposal to remove it entirely.
  • The just announced appointment of Jacob Lew as Treasury Secretary.  Jim is holding judgement in order to see if there will be any honest discussion regarding the real problems of the monetary system.

The Soverign Debt Solution

The Solution to the Sovereign Debt Crisis

After all is said and done, this is basically what’s been happening in Europe, where countries like Spain, Greece, Ireland, Portugal, Italy and Cyprus depend on each other and the stronger members of the European Union to keep buying their bonds, burying them ever deeper in debt (to each other).

But it’s not limited to just Europe, of course. The US is in just as bad of shape as far as debt is concerned.  In all western nations, as the cartoon above adequately portrays, there seems to be a symbiotic relationship between the banks and the countries in debt.  The banks enable the governments to keep borrowing just to be able to buy more debt from other countries’ governments, which are doing the exact same thing.  The whole sovereign bond market is one giant Ponzi scheme, just waiting to capsize.

What’s Their Agenda?

President Obama may, or may not have honestly shed tears over the victims of Sandy Hook, while at the same time maintaining status quo over innocents being killed by US military drones in foreign lands. Is it just hypocrisy?  Or could there be a hidden motive?

Statistically, guns aren’t the culprit.  If their true motive was to prevent senseless killings, why not ban tobacco?

Furthermore, it’s not the guns, it’s the people using them (and perhaps the drug-induced, psychotic nature of some of the more serious perpetrators) that should be the focus.

The Real Killers

Are we seeing the first steps of an agenda the world has already experienced  many times throughout history?  The following documentary reveals the horrific details of numerous genocides that followed weapons confiscations by governments in power around the globe.


Those who would give up essential liberty to purchase a little temporary safety
deserve neither liberty nor safety.
Benjamin Franklin, Historical Review of Pennsylvania, 1759

The Un-American Federal Government

Here’s an in-your-face, blatant example of the Federal Government supporting a foreign nation, even foreign criminals, over and above it’s own country’s law-abiding citizens.  Professor Terry J. Lovell pleads for fellow Americans to understand this situation and explains:

  • The Federal Government is siding with Mexican drug lords by suing the state of Arizona on its recently adopted illegal immigrant legislation SB-1070.
  • Citizens are urged to read the bill for themselves.  If they do, they’ll see that it’s not what the main-stream media touts it to be. All it requires is for foreigners to carry identification.  It’s a state law that was put in place to allow Arizona officials to do what the Federal Government is failing to do under its own Federal Laws since 1940 (Title 8, US Code Section 1304).  In other words, there would be no need for Arizona to take such a step if the Federal Government was doing their duty to protect American Citizens and enforcing their own law.
  • One third of the prisoners in Arizona are from Mexico!  One third of the cost of our prisons are from foreign felons!

Economic Freedom vs Debt Slavery

Pierre Poilievre, Canadian MP, makes a plea for his nation not to follow in the footsteps of countries like the United States, where people have been encouraged to go into debt which will be impossible to repay, or like Europe, which is now ensnared in welfare programs that are impossible to stop without complete social upheaval.

  • Official US Debt is now larger than its economy.  Through current or future taxation, the US citizen is on the hook for this debt.
  • The US is on the cusp of funding 100% of the Chinese Military – just with interest payments alone!
  • The direction the US is going reflects the socialist policies already in place in Europe, where Greek citizens are taking to the streets to demand their government not halt the flow of welfare checks they have become so dependent upon.
  • It’s good that Europe has bail-out fund, but S&P has recently downgraded that fund, indicating that it, too, will soon need a bail-out.

One False-Flag Away from Martial Law

Now that the NDAA signed by the president last year has been stripped of the essential clauses protecting American citizens of their Constitutional rights, just how easy would it be for them to get away with another 9-11 event and seal the coffin lid shut on American freedom for good?  Before you dismiss the question outright, consider the following video carefully:

 

Ever since that fateful day, in the name of national security, the Constitutional rights of all Americans have been under attack, via such things as the Patriot Act, totalitarian executive orders, the continuing encroachment of Homeland Security initiatives and the inclusion into the NDAA of indefinite detention of American citizens without trial.

Now ask yourself this question: If there is an elite group (such as the Illuminati) holding key positions of power within  government, corporate and banking institutions, and they are indeed conspiring to subjugate America, what would be their next step?

If those bastards are so powerful that they were able to pull off the 9-11 event and keep their positions intact, then you also must consider what else they might be capable of doing.  Like, what would happen to the national psyche if a major US city, like Phoenix, for example, were to be suddenly vaporized in a Nagasaki-esque manner? (This is what S.K. Bain has fictionalized in his book.)

Absolute fear would grip the nation immediately. Martial Law would be declared. The new authorities already granted to the president under his own executive order would be cited and all resources would be seized by the government. Dissenters would be shipped off to all the FEMA concentration camps that have been prepared over the last few years. The internet would be cleansed of all  ‘unpatriotic bloggers’ while the ‘controlled’ main-stream-media tells the public that the Iranians are to blame. Religious leaders are quick to point out that Muslims are not only anti-Jew, but anti-Christian as well. It would be enough impetus to garner support for invading yet another middle eastern nation, and possibly lead to World War III if China and Russia run to the aid of Iran.

So the next question you’ve got to ask yourself is when would this elite group initiate their next move?  As the world economy spins toward ultimate depression, printing presses are already running at full tilt and there’s no real political will to tackle the underlying problems of the Fiscal Cliff – only moves to delay the inevitable collapse are given any attention.  Meanwhile, the national debt surges due to continued unbalanced government spending.   At some point, all these monetary shenanigans will become too obvious to the average citizen and a diversion will be needed to distract public focus.

Of course, they’ve not yet taken the guns away from the American public.  But the Second Amendment is indeed being threatened.  And history shows multiple examples where the confiscation of weapons is a precursor to genocide and despotism.

A final question to ponder is whether or not the agenda requires the Constitutional Second Amendment to be abolished prior to the more drastic event, or whether a more severe tragedy might actually aid in it’s own destruction?  As long as people continue their ignorance of freedom and refuse to accept responsibility for their own lives, they’ll happily increase their dependency on government wealth redistribution.  Lady Liberty’s lamp flickers in the wind.

Footnotes: For those that may scoff at the possibility of the existence of an elite group like the Illuminati, this radio interview with an ex-Illuminati member is quite an eye-opener (pun intended).  And a closer look at this country’s history reveals that Freemasons had successfully infiltrated civil offices and media control within early American society. After the scandal regarding the murder of William Morgan, many left the fraternity or went underground. A few words showing a hierarchical relationship between the Illuminati & Freemasonry might prove interesting.  A paragraph or two could also be included regarding the occult-rituals said to be practiced by the Illuminati to gain further insight regarding their motives in addition to significant dates and numbers held sacred by these elites. Perhaps some comments could be made on the recent Sandy Hook tragedy along with suspicious circumstances surrounding that event. But we’ve probably gone far enough down the rabbit hole already for most silver investors.

Flash Crash of May 6, 2010 – High Frequency Trading

What caused the “flash crash” of the stock market on May 6, 2010, when the Dow Jones Industrial Average plummeted 1000 points and recovered in less than 7 minutes? Enter the fascinating world of high-tech trading at the speed of light.

Backlight – Money and Speed: Inside The Black Box

Tough Questions for Eric Sprott

Lauren Lyster puts the tough questions to Eric Sprott regarding gold and silver and whether or not investment in such is warranted, given the lackluster performance over the past year.  Sprott responds by pointing out that given the increases in quantities of the metal that have been purchased recently,  it’s highly likely that central banks have been leasing their physical gold into the marketplace in order to suppress the price.

  • In the last 12 years, the annual physical gold demand has increased by 2500 tonnes/year. But the supply of gold has remained flat.  Where does the new metal come from to meet this new demand?
  • Some rather prominent central banks have recently been subjected to questions asking about the validity of their gold claims held in foreign vaults (i.e. Germany and Austria).

The discussion continues to include:

  • The Fed is buying 90% of US Treasuries.  Japan and other central banks are practicing similar policies. Central banks of the world are trying to keep interest rates low for extended time frames, “which is ludicrous.”
  • Sprott expects silver to outperform gold in the next decade and points out the investment ratios he’s seeing from the entities making purchases of these two precious metals.
  • Lauren Lyster defines Hard Money and it’s relation to old and new central banking policies.
  • A record 47.7 million Americans are now on food stamps, according to the latest report from the Supplemental Nutrition Assistance Program (SNAP).

Expect Currency War to Continue in 2013

Author of Currency Wars, Jim Rickards explains that the Fed’s easing programs have thus far failed to create their desired inflation, which, in their view, is required to boost US exports.  Although Japan will be allowed to weaken their currency, all the other currencies of the world will be strengthened as the US strives to further weaken the US dollar. Of course, gold is still the currency of choice to preserve wealth.




Expanding the discussion, Lauren Lyster interviews Jim Rickards, where he clarifies the Fed’s tactics:

  • The economy has failed to recover despite the Fed’s actions so far because the consumer has not been willing to spend or invest.  Hence money velocity has remained nil.
  • The Fed is trying to induce more spending by: (1) Forcing a negative interest rate as an incentive for more borrowing, and (2) Scaring the public into buying stuff through the threat of future inflation.
  • The inflation, they hope, will be the result of all the currency wars with other nations, especially China – cheapening the dollar will make imports more expensive.

It’s a race between the Fed trying to achieve their goals and the whole system imploading because of a loss of confidence in the dollar.

Attacking the Rich?

All this talk in Washington about going after the rich to pay more taxes is just a smoke screen.  As Rick Santelli explains in the clip below, the arguments between the Democrats and Republicans are using numbers that ignore inflation & mislead the public on who they’re actually targeting with tax increases.

  • To say that the tax increases will only affect those making $250K/year is really talking about those making $165K/year (in 1993 dollars), which is a 35% miss when it comes to being honest about the actual situation our economy is facing.
  • Or worse, when they talk about only taxing the millionaires and yet begin their arguments with finding ways to tax those making $250K/year, that’s a 75% miss.

The main point is that by ignoring the inflation, these government leaders are purposely hiding their ever-increasing extortion of wealth from the middle class, not from the rich!


The Debt’s the Issue, Not the Ceiling!

From the main-stream media: CNBC’s Rick Santelli reports from the floor of the Chicago Mercantile Exchange and expounds on our government leaders’ misguided pursuits to establish an unlimited (and unregulated) debt policy.  (Not that the ceiling debate will make any difference in the long run – because to fix the debt problem, spending cuts that cost politicians their careers would need to be undertaken.  But with a ceiling in place, at least there’s some semblance of recognition that there’s a real problem with the national debt and its unstoppable growth.)


Forcing & Reinforcing Socialism

How is it that many Americans have come to embrace the concept of socialism, even though history shows that it’s failed miserably as an economic foundation?  Perhaps it’s nothing more than human nature – we’d much rather be taken care of by someone else, rather than take responsibility for our own lives.  In the following video, Dinesh DSouza delivers two wonderful analogies that make it easy to understand what socialism is, why it’s morally wrong and yet, why most human beings would find it appealing.

Brooksley Born: Frontline PBS: The Warning

During the Clinton administration, Brooksley Born became chairman of the CFTC and then began warning everyone about the unregulated derivatives market, where hundreds of trillions of dollars are estimated to be invested.  Unfortunately the current economic leaders of the time – Alan Greenspan, Larry Summers and Robert Rubin – did everything in their power to silence Born. Since then, we’ve had a near disaster and a semi-collapse in the economy stemming from these derivative markets and yet, the problems have still not been addressed.

The Warning

The Warning – Long before the economic meltdown, one woman tried to warn about the threat to the financial system…



 

FERC Suspends JP Morgan’s Power Trading Unit

JP Morgan ChaseJP Morgan’s electricity trading desk will essentially be sidelined for 6 months next year because of actions taken by the U.S. Federal Energy Regulatory Commission (FERC).  According to the Los Angeles Times, the regulations authority accuses JP Morgan of misrepresenting facts and filing false information in its reporting and communications with the California Independent System Operator known as Caiso.

This all stems from August last year, when FERC started investigating JP Morgan Ventures Energy Corp. for alleged abusive bidding activities and potentially manipulative trading practices in the energy markets. Then, earlier this year in July, FERC sued JP Morgan because it had refused to turn over internal emails FERC had requested during its investigations.

Of course JP Morgan officials deny any wrong-doing, excusing any reporting deficiencies as inadvertent mistakes that were made in “good faith.”  But in its decision, FERC states “no showing of the respondent’s intent or mindset is necessary in order to demonstrate that a violation” has occurred.

So here we have a regulatory agency that has the integrity and courage to stand up to the banking giants when they see clear violations and market manipulation. If only the CFTC would take notice. In their 4+ years of investigating the alleged silver market manipulation by JP Morgan, nothing has resulted.

In his letter to subscribers, Ted Butler included the following:

While we hear excuses from the CFTC about the need to prove intent before bringing charges of manipulation against JPMorgan in silver, FERC insisted that intent was a side issue. FERC’s got it exactly right, in my opinion. If someone is messing with the market, there is no need to pussy foot around intent; stop the messing around first and then sort out the details later.  We can decide in time if JPMorgan is manipulating silver intentionally or by accident; the important point is to first stop the manipulation. Not every homicide is premeditated and to be prosecuted as murder one; some homicides are manslaughter and not premeditated. That doesn’t mean we tolerate people killing people if the intent isn’t clear. Likewise, JPMorgan is clearly manipulating the price of silver by virtue of their concentrated short position and status of being the dominant seller of new short contracts. First the CFTC should make them stop; then charges can be decided upon.

 But then again, there aren’t any FERC members within the inner circle of elite central planning known as the Plunge Protection Team.

CFTC Commissioner Bart Chilton Comments on Silver Manipulation

In this RT episode, Lauren Lyster interviews CFTC Commissioner Bart Chilton and they discuss:

  • The ongoing investigation of alleged silver market manipulation and Mr. Chilton specifically admits he’s seen one market participant have a controlling 30% concentrated position in that market. (It should be noted that this 30% position dominance is on the short side of the market. And the reader is urged to remember that in 1980, the Hunt Brothers were charged with having only a 20%  dominance on the long side of the market.)
  • The difficulty in winning a legal action suit that alleges manipulation is in proving intent.
  • The increasing evidence of fraud in the market place, exemplified by such cases as MF Global and Peregrine.  Mr. Chilton’s recommendations on protecting against future occurrences include the creation of an investor insurance program like that savers are provided with by the FDIC.
  • The delay in Dodd-Frank rules and the fact that “government is slow and reactive.”

Research

The following leads are suggested for those interested in precious metals.

Resource Description
Precious Metals Daily Summaries
Introducing the Précis Du Jour, which gives you access to the most recent data in tables & interactive charts. Get the latest Spot prices, ETF statistics, US Mint sales, COMEX/CME warehouse activity, Daily Delivery (Issues & Stops) data, precious metals Futures and the latest CFTC Commitment of Traders (COT) stats. And MUCH more!
Charts from the World Wide Web
Look-up key financial data & charts, using this cataloging feature, which references resources from around the web.
Key Financial Events
Here you will find an economic event calendar which shows the global events happening around the world. Events such as the Fed’s FOMC meetings usually have an impact on markets. Savvy investors will want to keep an eye on these events.
Articles
Various articles on subjects related to precious metals, economic activity, markets and things that might affect the psychology of the markets.
Videos
A collection of videos conveying interesting observations on (geo-)politics, economics and history.
Recommended Reading A list of books recommended for readers interested in a wider view of the global economy and the histories that got us here.
Main-Stream News
A small sample of main-stream news feeds.
Links
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