The Corrupt Origins of Central Banking

Central banking has been a corrupt, mercantilist scheme and an engine of corporate welfare from its very beginning in the late 18th century. The first central bank, the Bank of North America, was “driven through the Continental Congress by [congressman and financier] Robert Morris in the Spring of 1781,” wrote Murray Rothbard in The Mystery of Banking (p. 191). The Philadelphia businessman Morris had been a defense contractor during the Revolutionary War who “siphoned off millions from the public treasury into contracts to his own … firm and to those of his associates.” He was also “leader of the powerful Nationalist forces” in the new country.
The main objective of the Nationalists, who were also known as Federalists, was essentially to establish an American version of the British mercantilist system, the very system that the Revolution had been fought against. Indeed, it was this system that the ancestors of the Revolutionaries had fled from when they came to America. As Rothbard explained, their aim was
To reimpose in the new United States a system of mercantilism and big government similar to that in Great Britain, against which the colonists had rebelled. The object was to have a strong central government, particularly a strong president or king as chief executive, built up by high taxes and heavy public debt. The strong government was to impose high tariffs to subsidize domestic manufacturers, develop a big navy to open up and subsidize foreign markets for American exports, and launch a massive system of internal public works. In short, the United States was to have a British system without Great Britain. (p. 192)

This post was published at Ludwig von Mises Institute on Dec 4, 2017.

Asian Metals Market Update: September-04-2017

North Korea’s hydrogen bomb has given a hydrogen boost to gold and silver. Copper and industrial metals have had a technical breakout. The US dollar has remained immune to North Korea. The US Navy has increased patrols in South China Sea. East Asia is now the current middle east and north Africa of the world.
US markets are closed today. Moves will be there. No one can sleep on their trades. Keep your eyes open and do not miss the opportunity to encash the sudden one-way moves.

This post was published at GoldSeek on 4 September 2017.

Frontrunning: August 25

Trump to push for tax reform passage by year’s end, says Cohn (FT) Bond Routs, Stock Surges: Jackson Hole Can Be Messy for Markets (BBG) Hurricane Harvey intensifies (Reuters) GOP Plan to Kill Estate Tax Sets Up Conflict Over Charitable Giving (BBG) ECB Is Set to Buy More Bonds (WSJ) U. S. Plans to Unveil New Round of Sanctions on Venezuela, Sources Say (BBG) U. S. Navy recovers second body in search for sailors missing after collision (Reuters) Britain will not pay ‘a penny more’ than it thinks right to leave EU: Boris Johnson (Reuters) Amazon Clobbers Grocers With Price Cuts at Whole Foods (WSJ) Samsung Heir Gets 5 Years for Scandal That Toppled a President (BBG) Auto Dealers Dogged by ‘Boys Club’ Showrooms Costing Them Sales (BBG) U. S. state election officials still in the dark on Russian hacking (Reuters) Band of Brothers Plotted Barcelona Terror (WSJ) U. S. fighter pilots in Afghanistan prepare for more air strikes (Reuters) China’s Aviation Push Lifts Aircraft Manufacturers (WSJ) Thailand’s ousted PM Yingluck has fled abroad: sources (Reuters) Centuries-Old Stolen Copy of Christopher Columbus Letter Recovered in U. S. (WSJ) San Francisco latest city to brace for protests (Reuters) Why Florida Farmers Want to Kill Nafta (BBG)

This post was published at Zero Hedge on Aug 25, 2017.

Cyberwar Risk – Was U.S. Navy Victim Of Hacking?

– U. S. Navy collisions: More than a coincidence?
– Latest U. S. Navy collision is fourth involving a Seventh Fleet warship this year
– Have US Navy vessels become victims of hacking asks Rickards
– Chief of Naval Operations, Adm. John Richardson, has not ruled out cyber intrusion
– ‘Once is happenstance. Twice is coincidence. The third time it’s enemy action…’ – Ian Fleming
– Cyber security cause for concern in autonomous vehicles, aeroplanes and now ships
– Serves as reminder that a connected world can expose and create vulnerabilities
– Cyber security a major threat to banking and financial industry
– Investors should hold physical gold as insurance against hacking, cyber attacks
The tragic U. S. Navy incident of the USS John McCain earlier in the week has raised several questions about the cause. Many are wondering if it was more than human error given this is not an isolated incident.

This post was published at Gold Core on August 24, 2017.

Steven Bannon Fired – Thank God

Steve Bannon has been fired from the Trump team, and many are saying good reddens. It was Bannon who has been the one with the most confrontational approach and has really been clashing behind the curtail. Bannon said in the interview that the main front was China: ‘We are in a trade war with China’ and if the US were not to win this war, they would fall back as a world power permanently into insignificance. Bannon’s statement is really absurd for he has clearly no real understanding of the world economy. His focus of China and trade is the same stupid reason James Baker created the G5 back in 1985. We are plagued by people who pontificate on the world economy with zero experience.
Bannon is an American media executive, formerly a film producer, who served in the Navy for 7 years and then worked at Goldman Sachs as an investment banker mergers and acquisition but never rose very high. In the 1990s, he became an executive producer in the Hollywood film and media industry; he produced 18 films between 1991 and 2016. He may understand media, but I believe he is clueless with regard to how the world economy functions.

This post was published at Armstrong Economics on Aug 20, 2017.

Can Britain Afford To Be A Hard Power?

Recently the UK Royal Navy and Ministry of Defence unveiled their brand new aircraft carrier HMS Queen Elizabeth at a cost of 3 Billion Pounds. This at a time when UK national finances are under heavy pressure and the country has been experiencing seven years of severe austerity.
It has recently come to light that in true Ministry of Defence fashion (poor project management & wasteful spending, duplication, poor planning, lack of oversight and accountability) the true costs are set to rocket even further for more aircraft needed to be able to land properly on HMS QE. How very British. The decision to go ahead with a brand new and very expensive aircraft carrier for the UK at a time of acute social and economic headwinds has been hailed by some as an exciting new weapon in Britain’s hard power arsenal that will allow Britain to punch above her weight in world affairs and global power projection rankings in Jane’s Weekly.

This post was published at Zero Hedge on Jul 25, 2017.

China Sends Warships, Fighter Jets To Intercept US Destroyer In South China Sea

Just days before Trump’s meeting with the Chinese president in Hamburg later this week for the G-20 summit, the Trump administration sent a guided-missile destroyer near Triton Island in the South China Sea, Bloomberg reported, a move “which may cause concern ahead of President Donald Trump’s meeting with his Chinese counterpart.”
According to an anonymous official cited by Bloomberg, the U. S. Navy sent the destroyer USS Stethem within 12 nautical miles (22 kilometers) of Triton Island on Sunday, passing through the contested waters on the basis of “innocent passage.”

This post was published at Zero Hedge on Jul 2, 2017.

America’s financial war strategy

America’s renewed desire to escalate military tensions is a front for America’s continual financial war, this time directed at North Korea, Syria and possibly Iran. This is likely to be the opinion of China’s strategic advisors. We analyse the geopolitics and economics behind America’s war strategy from China’s perspective, concluding that it is entering its final phase. China’s exit plan appears to be to tie the pricing of energy and then other major commodities to gold, returning to the pre-1971 status quo, when the dollar was just a settlement link between commodity prices and gold. Except this time, the dollar itself will be side-lined, so far as China is concerned, which will use the yuan instead for its empire, which will be far larger than that of the US in time, measured by GDP.
The day President Trump assumed office, it appeared that at last there would be dtente with Russia, leading to America’s withdrawal from unwinnable conflicts and towards a new peaceful agreement between these long-term enemies. However, within the traditional presidential bedding-down period of one hundred days, Trump has gone from his electoral platform of disengagement from foreign ventures to overt aggression in multiple locations.
Something major has changed his thinking. Trump has committed no less than five acts of foreign aggression in that short time, with a sixth pending. The first was a joint operation with Emirati commandos in Yemen, which backfired, leading to the death of a Navy SEAL. The second was the recent attack on a Syrian airfield, in response to an alleged poison gas attack. The third is the escalation of military threats against North Korea. The fourth is the bombing of a cave network in Eastern Afghanistan. And the fifth is the deployment of more troops to Northern Iraq and Eastern Syria to step up the fight against ISIS. The rhetoric is also being ramped up against America’s long-term bogeyman, Iran.
The three theatres of war that offer the best prospects for further escalation are Syria, Korea, and Iran. They are in two regions where significant quantities of dollars are owned and invested, offering the potential for capital flight, which should be kept in mind, when reading this article.
Trump is also seeking congressional approval for an increase in defence spending totalling $54bn, a massive increase which, to put it in perspective, compares with Russia’s total defence budget of $66bn.
The default assumption is that American military power and weapons technology guarantees battlefield objectives will be achieved. This hasn’t usually been the case since the first Iraq invasion in 1990. Since then, any initial success has been more than outweighed by subsequent failures and unintended consequences. It is because of American-led operations in Iraq, Afghanistan, Libya and Syria that Europe is flooded with refugees, bringing undercover terrorists with them. There can be little doubt that a dispassionate analyst would recommend America abandons military action, so there must be other reasons behind America’s war-mongering.
China, itself a long-time strategic target for American aggression, is sure to be worried about the escalation of threats to North Korea, and with good reason. In terms of trade, South Korea is now an important trading partner, and for that reason, China will not want to see the situation on the Korean peninsula deteriorate. She will also not want America securing territory which abuts her border. Russia has a small border with North Korea as well and is likely to share that view. However, Russia’s trade is not so much with South Korea, but she is a major arms supplier to the North.

This post was published at GoldMoney on APRIL 20, 2017.

Markets Still Anxious Over Geopolitical Risks

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.
(Kitco News) – European stock markets were mostly weaker overnight. Asian stocks were mostly firmer, led by China, which on Thursday injected liquidity into its financial system for the first time in over two weeks. U. S. stock indexes are pointed toward weaker openings when the New York day session begins. Gold prices are holding solid gains and are at a five-month high on safe-haven demand.
Heightened geopolitical risks are still on the front burner of the world marketplace. A meeting between the U. S. secretary of state and Russia’s foreign minister ended Wednesday without agreement and likely pushed the two sides deeper into divisiveness. Secretary of State Rex Tillerson said Russia and the U. S. just don’t trust each other. And during a press conference on Wednesday afternoon Trump said U. S. relations with Russia are ‘bad.’ Trump at the same time praised Chinese leader Xi Jinpin. That move could have been calculated by Trump, as he appeared to suggest a warming relationship with China and its third-strongest military in the world, and one that has the most influence over North Korea. The U. S. Navy has warships headed for waters off the Korean peninsula. Trump also said he is not going to name China as a currency manipulator-likely in exchange for China doing some arm-twisting on North Korea.

This post was published at Wall Street Examiner by Jim Wyckoff ‘ April 13, 2017.

U.S. Strikes Syria, Gold and Silver Spike Higher

U. S. Navy warships fired 50 Tomahawk missiles at a Syrian military base a few hours ago. It was the first direct American assault on the Syrian government and Donald Trump’s most dramatic military order since becoming president. This attack was in response to the chemical attack in Syria that killed over 70 people, including up to 30 children. The attack has been blamed on the Syrian regime, but little evidence has been supplied thus far.
The surprise strike marked a striking reversal for Trump, who warned as a candidate against the U. S. getting pulled into the Syrian civil war, now in its seventh year. Unfortunately, he was right then as a reality TV star/businessman and wrong now as President.
Trump just did the ONLY thing that will destroy the base of his support. He took on Hillary Clinton’s foreign policy.
I always ask ‘cui bono?’ during times like this and have little trust in the mainstream media. It really makes no sense for Assad to drop chemical weapons on his own people and draw the ire of the world, just as he was winning the war in his country and the U. S. was backing off their insistence on regime change. Of course, I don’t know for sure what happened, but something does not seem quite right about the narrative. Hopefully we get more details in the hours ahead and there is a clearer picture of what evidence compelled Trump to order the attack.

This post was published at GoldStockBull on April 6th, 2017.

Bill Gross Reveals The “Global Establishment’s Overall Plan” In Eight Simple Steps

Continuing his anti-establishment bent, in his latest letter “Red is the new black”, Bill Gross first exposes the “current global establishment’s (including Trump’s) overall plan” consisting of 8 simple steps to “solve the global debt crisis” (yes, the sarcasm is oozing), at which point he goes on to say that “it pays to not fight the tiger until it becomes obvious that another plan will by necessity replace it” and adds “that time is not now, but growing populism and the increasing ineffectiveness of monetary policy suggest an eventual transition.”
His monthly words of caution: ‘Red’ (in some cases) may be the new ‘Green’ when applied to future investment returns. Be careful – stay out of jail.”
The full Bill Gross’ latest monthly letter courtesy of Janus
Red is the New Green
I’ve got nothing against national anthems, and I wouldn’t kneel even if I was Colin Kaepernick. I just think as a country, ‘America the Beautiful’ might have been a better choice for ours and that in some cases, some words of ‘The Star Spangled Banner’ don’t ring true. A few countries’ anthems are, in fact, quite pleasing to my ear. ‘O Canada’ has a beautiful melody and words to match, although you’d probably have to be watching hockey to hear it. Our ‘Star Spangled Banner’? For me – not so much. I can sort of see the ‘rockets’ red glare’, but it’s hard to sing and quite long – especially if you’re waiting for the kickoff. But like I said, I have nothing against it, except maybe the last stanza. Not the ‘Home of the Brave’ part. Having spent two years in Vietnam, ferrying Navy SEALs up the Mekong Delta, I witnessed a lot of bravery. Not me. I was duckin’ quicker than Bill Murray’s gopher in Caddyshack. The SEALs though. Yeah – tough guys – very brave.

This post was published at Zero Hedge on Dec 6, 2016.

Fake News and War Party Lies

‘I have in my possession a secret map, made in Germany by Hitler’s government – by the planners of the New World Order,’ FDR told the nation in his Navy Day radio address of Oct. 27, 1941.
‘It is a map of South America as Hitler proposes to reorganize it. The geographical experts of Berlin, however, have ruthlessly obliterated all the existing boundary lines … bringing the whole continent under their domination,’ said Roosevelt. ‘This map makes clear the Nazi design not only against South America but against the United States as well.’
Our leader had another terrifying secret document, ‘made in Germany by Hitler’s government. …
‘It is a plan to abolish all existing religions – Protestant, Catholic, Mohammedan, Hindu, Buddhist and Jewish alike. … In the place of the churches of our civilization, there is to be set up an international Nazi Church…
Current Prices on popular forms of Gold Bullion
‘In the place of the Bible, the words of ‘Mein Kampf’ will be imposed and enforced as Holy Writ. And in place of the cross of Christ will be put two symbols – the swastika and the naked sword. … A god of blood and iron will take the place of the God of love and mercy.’
The source of these astounding secret Nazi plans?
They were forgeries by British agents in New York operating under William Stephenson, Churchill’s ‘Man Called Intrepid,’ whose assignment was to do whatever necessary to bring the U. S. into Britain’s war.

This post was published at Lew Rockwell on December 3, 2016.

Wells Fargo or the Federal Reserve: Who’s the Bigger Fraud?

The Wells Fargo bank account scandal took center stage in the news last week and in all likelihood will continue to make headlines for many weeks to come. What Wells Fargo employees did in opening bank accounts without customers’ authorization was obviously wrong, but in true Washington fashion, the scandal is being used to deflect attention away from larger, more enduring, and more important scandals.
What Wells Fargo employees who opened these accounts engaged in was nothing more than fraud and theft, and they should be punished accordingly. But how much larger is the fraud perpetrated by the Federal Reserve System and why does the Fed continue to go unpunished? For over 100 years the Federal Reserve System has been devaluing the dollar, siphoning money from the wallets of savers into the pockets of debtors. Where is the outrage? Where are the hearings? Why isn’t Congress up in arms about the Fed’s malfeasance? It reminds me of the story of the pirate confronting Alexander the Great. When accused by Alexander of piracy, he replies ‘Because I do it with a small boat, I am called a pirate and a thief. You, with a great navy, molest the world and are called an emperor.’

This post was published at Lew Rockwell on September 27, 2016.

Speak Loudly and Carry No Stick

Theodore Roosevelt’s famous mantra ‘speak softly and carry a big stick’ suggested that the United States should seek to avoid creating controversies and expectations through loose or rash pronouncements, but be prepared to act decisively, with the most powerful weaponry, when the time came. More than a century later, the Federal Reserve has stood Teddy’s maxim on its head. As far as Janet Yellen and her colleagues at the Fed are concerned, the Fed should speak as loudly, frequently, and as circularly as possible to conceal that they are holding no stick whatsoever. Roosevelt’s “stick” was America’s military might, which in his day largely boiled down to the U. S. Navy, which he had enlarged and modernized. To demonstrate to a potential adversary that he was prepared to use these weapons, Roosevelt sent the fleet around the world in a massive show of force. However, he took care to couch the expedition in soothing rhetoric. He even ordered the battleships to be painted white to create the impression that they were angels of mercy rather than instruments of power. The combination proved effective. America’s global influence increased dramatically during his presidency even though few shots were fired. The ‘sticks’ that Janet Yellen is supposedly ready to employ are interest rate increases that are needed to help normalize the economy, fight inflation, and to stockpile ammunition to combat the next recession. Yet, in the last decade interest rates have essentially been fixed at zero. In fact, since the end of 2008 the Fed has raised rates a grand total of once…last December, by just one quarter of a percent. But what they have lacked in action they have more than made up for with torrents of talk. As a result of this ‘Loud Talk Policy,’ American economic prestige in the 21st Century has fallen faster than it rose in the Roosevelt presidency.

This post was published at Euro Pac on Thursday, July 28, 2016.


These days the Pentagon has been catching plenty of flak for their insanely expensive F-35 fighter jets; an aircraft which often fails to take off despite costing over $1 trillion to develop. However, the US isn’t the only Western nation that is wasting countless tax dollars on failure prone weapon systems.
The Royal Navy has just discovered that one of their most advanced and expensive warships, the Type 45, can’t operate in the Persian Gulf. Apparently, the turbines can’t cope with the 90 degree waters of the gulf. They’re not capable of redistributing that kind of heat back to the engine, which slows the turbines down, eventually leading to a complete power failure for the entire ship. In other words, when the water gets too warm, these ships are sitting ducks.
The Type 45 is controversial in Britain due to its development, which ran over budget and behind schedule. Each of the six ships that were constructed cost $1.4 billion, and are supposed to stay active for another two decades.

This post was published at The Daily Sheeple on JUNE 13, 2016.


Though Chris Kyle has been lauded as a war hero by the media and the men he served with, documents obtained by the Intercept have shown that he likely exaggerated some of his achievements. According to his autobiography, Kyle received two silver stars and five bronze stars during his 10 year military career. But according to internal military documents, his real record states that he only received one silver star and three bronze stars.
Even stranger are the contents of his DD214 form, which are the separation papers he received upon leaving the military. This document normally gives an accurate representation of what a veteran achieved during his or her service, but in Kyle’s case it stands at odds with both the internal documents and the claims he made in his book. According to his DD214, he received two silver stars and six bronze stars.
At this point, it would be easy to say that these discrepancies are nothing more than a bureaucratic mishap. Perhaps the Navy mixed up some of his papers, or failed to keep track of his medals. According to the Intercept however, his embellishments were an open secret within the Navy SEAL community:

This post was published at The Daily Sheeple on MAY 30, 2016.

It’s Begun, Countries Are Moving Away From The US Dollar By Loading Up On Gold – Episode 968a

The following video was published by X22Report on May 11, 2016
Macy’s, Gap, Old Navy and many other retailers are reporting a decline in sales. The US economy is declining rapidly and the collapse is right around the corner. Baltic Dry Index declines once again. Italian banks are struggling with bad loans and this is spreading to other European banks. Central banks and Countries are now trading their US dollars for gold, a signal we are approaching the end of the dollar reserve.

Bear Market Bottom : Mr. Bear has left the PM Sector for Greener Pastures

It appears the great gold bear of 2011-2016 has now ended. Mr Bear has now completed his work of cleaning up all the garbage and malinvestment created by reckless management teams over the past 15 years. Our sought after ultra low of HUI 66 where we were all going to ring the bell and back up the truck is not going to happen in my opinion. The bottom is in! This is my first and only call of a bear market bottom since the bear started in 2011. Its been brutal, but I believe its over. This is my best judgment based on the pieces of the puzzle I see.
We witnessed under our noses a double bottom occur while the deceptiveness of the market had us looking for yet another perfectly formed H&S pattern set to breakdown and lead to a final devastating full blown capitulation bottom. Instead what we saw was a professional stop run creating a head fake for the retail investor (all of us) which put in the final bottom
I previously posted the bull genesis charts of 1982 and how thats what this feels like and Rambus has shown the price action indicating but not yet confirming a bull has started and now I would like to add another insightful piece of evidence which is rather compelling that the necessary conditions to the end of the bear have now exhibited themselves.
The Step Sum- The Bulls Capitulation
My friend Mark Lundeen puts out uniquely original work. It is the product of a life time of market study. He has been a life time reader of Barrons and when he was in the Navy back in the late 1970’s as his ship would go to port in exotic locals such as Bangkok his Navy buddies would go ashore and do what navy sailers do. He instead would stay on the ship and catch up on his Barrons. So we are benefiting from a 40 year commitment to studying markets.

This post was published at GoldSeek on 8 February 2016.

How I See The Presidential Race

We have about a week before the Iowa caucuses meet.
Cruz’s support on a national basis is basically collapsing; he now trails Trump by almost half. That is, Trump has roughly 35% of the vote, with Cruz coming in at 19%. Palin didn’t do Cruz any favors with her endorsement of Trump, and in addition Cruz managed to get the Iowa governor to come out explicitly against him for his stand on ethanol.
In Iowa Cruz is down a few percent (4) from the last poll, but now trails Trump 34-23. Rubio is at 12, down 3. Absent at least one of the front-runners blowing his own brains out none of the others are in the game. Sorry Jebbie, go home and perform an anatomically impossible act; it’s what you’re best at.
In New Hampshire Trump has a commanding lead with more than double Cruz’s support.
Here’s the problem for the “establishment” Republicans — they’re running out of time and money isn’t doing them a bit of good. Trump hasn’t had to spend anything at all to get where he is while everyone else is blowing money like a Navy dude in a *****house after six months at sea — but all they have to show for it is masturbatory fantasies. Post New Hampshire as a candidate you’ve got two weeks, roughly, and then you either have the numbers to be serious or you’re done, which means we’re about four weeks out from this race being down to either two — or over.

This post was published at Market-Ticker on 2016-01-26.

Gold Deficits and T-Bond Fantasies

Fantasy #1:
My name is John Q. Public. I live a good life, make lots of money (never mind how) and have debts such as a mortgage on a great house – $375,000, a Cessna – $150,000 (my air force), and a sweet little two mast sailing ship – $78,000 (my navy). Also my wife and children (my army) spend a lot of money. My total credit card debt is $97,000.
But this was a bad month for revenue collections and there was only one thing to do. I called the customer service agent at my bank – the 3rd State Bank of Chicago, and asked for a credit limit increase. The friendly customer service agent asked how much I wanted my credit limit increased and I suggested from $100K to $200K. She checked with the credit computer and it beeped back ‘fine.’ She added, ‘Mr. Public, we are running an after-Christmas special on credit limit increases this week. For a one-time payment of $25 we’ll increase your limit another $100,000 to a total of $300,000, and you’ll be eligible for another guaranteed limit increase in six months. Would you like to approve that $25 charge to your account?’
I said, ‘Sure. That would make me very happy.’

This post was published at Deviant Investor on January 19, 2016.