Economics

Economics
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The Conflict within the Deep State Just Broke into Open Warfare

12-Mar-2017

When do the unlimited powers of the Intelligence/Security agencies threaten America’s domestic and global national interests? The CIA and its political enablers claim the agency’s essentially unlimited powers, partially revealed by Wikileak’s Vault 7, pose no threat to America’s interests, since they are intended to “defend” American interests.

This is the rationale presented by neocon CIA allies in both political parties: the CIA can’t possibly threaten America’s interests because the CIA defines America’s interests.

This is the wormhole down which civil liberties and democracy have drained. It is an extraordinarily defining moment in American history when the director of the FBI publicly declares that there is no such thing as “absolute privacy” in the U.S.

In effect, privacy is now contingent on the level of interest the Security State has in the private conversation/data. If we read the U.S. Constitution, we do not find such contingencies: civil liberties are absolute. Post-1790 presidents have temporarily mooted civil liberties in time of war, and the CIA-led camp of the Deep State has justified its unlimited powers by effectively declared “a state of war is now permanent and enduring.”

So what’s left to defend if America has become the enemy of civil liberties and democracy, i.e. become a totalitarian state ruled by Security Services and their political henchmen and apologists?

I have long suggested that the tectonic plates of the Deep State are shifting as the ruling consensus has eroded. Some elements of the Deep State–what I call the progressive wing, which is (ironically to some) anchored in the military services– now view the neocon-CIA (Security State)-Wall Street elements as profoundly dangerous to America’s long-term interests, both domestically and globally.

Is the Deep State Fracturing into Disunity? (March 14, 2014)

I have suggested that this “rogue Deep State” quietly aided Donald Trump (by subtly undermining Hillary Clinton’s campaign) as the last best chance to save the nation from the neocon’s over-reach that the Establishment’s Wall Street-funded leadership (Bush, Clinton, Obama, et al.) has overseen–including granting the CIA and its allies virtually unlimited powers unhindered by any effective oversight.

Does a Rogue Deep State Have Trump’s Back? (January 18, 2017)

This profound split in the Deep State has now broken into open warfare. The first salvo was the absurd propaganda campaign led by Establishment mouthpieces The New York Times and The Washington Post claiming Russian agents had “hacked” the U.S. election to favor Trump.

This fact-free propaganda campaign failed–having no evidence didn’t work quite as well as the NYT and Wapo expected– and so the propaganda machine launched the second salvo, accusing Trump of being a Russian patsy.

The evidence for this claim was equally laughable, and that campaign has only made the Establishment, its propaganda mouthpieces and the neocon Deep State look desperate and foolish on the global and domestic stages.

The desperate neocon Deep State and its Democratic Party allies went to absurd lengths to undermine Trump via the “Boris and Natasha” strategy of accusing Trump of collaborating with the Evil Russkies, even going so far as to briefly exhume former President G.W. Bush from deep-freeze to make a fool of himself, saying the Trump-Evil Russkies connection should be “investigated.”

Now the rogue elements have launched a counterstrike–Vault 7. Here is one example of how quickly the CIA’s over-reach has been absorbed by the body politic:

I highly recommend reading Wikileak’s summary of Vault 7: Vault 7: CIA Hacking Tools Revealed.

We now know that the CIA maintained a special program (UMBRAGE) to mimic Russia-based hackers and create false trails back to fictitious “Russian hackers.” A number of highly experienced analysts who reviewed the supposed “Russian hacks” had suggested the “evidence” smelled of false trails– not just bread crumbs, but bread crumbs heavy-handedly stenciled “this is Russian malware.”

The body count from Vault 7 has not yet been tallied, but it wouldn’t surprise me if former President Obama and his team eventually end up as political casualties. Non-partisan observers are noting all this over-reach occurred on Obama’s watch, and it hasn’t gone unnoticed that one of Obama’s last executive orders stripped away the last shreds of oversight of what could be “shared” (or invented) between the Security Agencies.

Indeed, the entire leadership of the Democratic Party seems to have placed all their chips on the increasingly unviable claim that the CIA is the squeaky clean defender of America.

Vault 7 is not just political theater–it highlights the core questions facing the nation: what is left to defend if civil liberties and democratically elected oversight have been reduced to Potemkin-village travesties?

If there are no limits on CIA powers and surveillance, then what is left of civil liberties and democracy? Answer: nothing.

The battle raging in the Deep State isn’t just a bureaucratic battle–it’s a war for the soul, identity and direction of the nation. Citizens who define America’s interests as civil liberties and democracy should be deeply troubled by the Establishment’s surrender of these in favor of a National Security State with essentially no limits.

Americans tasked with defending America’s “interests” globally should be asking if a CIA/NSA et al. with unlimited power is detrimental to America’s soft and hard power globally, and toxic to its influence.

The answer is obvious: a CIA with unlimited power and the backing of a corrupt Establishment and media is more than detrimental to America’s soft and hard power globally–it is disastrous and potentially fatal to America’s interests, standing and influence.

Those of us on the sidelines can only hope that the progressive wing of the Deep State, the rogue elements who see the terrible danger of an unlimited National Security State, will succeed in undermining the powerful political support for this toxic totalitarian regime.

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

Check out both of my new books, Inequality and the Collapse of Privilege ($3.95 Kindle, $8.95 print) and Why Our Status Quo Failed and Is Beyond Reform ($3.95 Kindle, $8.95 print). For more, please visit the OTM essentials website.

When This All Blows Up…

12-Mar-2017

This report marks the end of a series of three big trains of thought. The first explained how we’re living through the Mother Of All Financial Bubbles. The next detailed the Great Wealth Transfer that is now underway, siphoning our wealth into the pockets of an elite few.

This concluding report predicts how these deleterious and unsustainable trends will inevitably ‘resolve’ (which is a pleasant way of saying ‘blow up’.)

Click here to read the full article

[KR1043] Keiser Report: Rise of the Machines

12-Mar-2017

We discuss the robots coming for white-collar jobs. And ask why, if workers can be replaced by more efficient robots, why can’t the U.S. insurance-based ‘healthcare’ system be replaced by the more efficient Medicare For All? In the second half Max interviews Wolf Richter of WolfStreet.com about why it is worse than before the last three crashes as ‘multiple compressions’ are on the Trumpland horizon

Stacy in Trumpland: 9 March 2017

11-Mar-2017

Been loving the sun and warmth down in North Carolina. It’s taking quite awhile to settle in to the American way of life, especially that Obamacare. Yowza! Quite a shock after living in a single payer system for past twenty years.

Max and I went to our first ever town hall this past week; it wasn’t in our district but wanted to see if it was all the headlines made it out to be (‘rowdy,’ ‘shouty,’ etc). David Price (a Democrat and in office for 30 years . . . hello term limits) came out onto stage just moments after the Republicans had announced their own disaster of a plan and yet Price only mentioned Russia.

I assumed, therefore, that he had not heard about the Trumpcare plan for, surely, that would have been more important? Alas, the first question from the audience was about healthcare. So Price mentioned, “Wow, gee, did you guys see the new Republican plan just announced?” So he had, in fact, known about it but I guess thought shrieking ‘Russia’ would be more important. As it was, the next 8 or so questions from the audience were about healthcare. We left after an hour or listening to pathetic defense of Obamacare, specifically the fact that they had no answer to the 4 or 5 million trapped on the system unsubsidized. Why they can’t see the Medicare For All solution staring them in the face, I’ll never know.

Anyway, this also happened in North Carolina and reminds me a bit of the US ‘healthcare’ system.

It’s not as crazy as Florida, but lots of weird stuff happens here.

Counter Party Risk in the Bullion Market

10-Mar-2017

With Gold & Silver Prices Pounded Relentlessly This Week Ahead of a Fed Rate Hike, Doc & Dubin Break Down the Action, Discussing:

  • Is the PAIN OVER For Gold & Silver?
  • Bullion Market Black Swan?  Bloomberg Reports FBI & DOJ Investigating One of the Largest Bullion Firms in US Over Alleged Illegal Gold Smuggling
  • Counter Party Risk: How Entire Physical Gold & Silver Bullion Market Could Be Affected

A MUST LISTEN SD Metals & Markets Begins NOW:

Jim Willie Issues Financial Apocalypse Warning: “HELL ON EARTH!”

10-Mar-2017

Are The 7 Bowls of Wrath Upon Us?
Hat Trick Letter Editor Jim Willie Warns The Banksters Are About To Unleash HELL ON EARTH:

SEVEN BOWLS – CURRENT THREAT

Although finance & economics are the primary themes for the Hat Trick Letter and its related research, it is impossible to ignore the reality of widespread coordinated aggravated attempts to destroy our lovely blue orb, planet Earth.

The globalists are hell-bent on ruining the entire biosphere for the home to humanity. Gold & Silver might be the best protection for the financial and economic deterioration, if not destruction, as individuals and financial entities work to ensure the preservation of their assets.

However, Gold & Silver should be part of any concerted effort toward preparedness in emergency supply. The Jackass has diverted in this one article instance from the primary newsletter themes in order to warn people about the threat to the entire human species. The common theme among the perpetrators is the Satanism practiced by the Western Elite, who are gradually being exposed for their pedophilia and child sacrifice rituals. Their symbols are all through the corporate signposts, from Proctor & Gamble to HSBC and much deeper.

The Seven Bowls of death and pestilence are central to the Agenda-21 Global Genocide Plan. Its players include Bill Gates of Microsoft, George Soros, and companies Halliburton, Monsanto along with many others. They have a nucleus in the big banks and large energy firms. With destruction of economic foundations, the globalists hope to install the Global Fascist State, usurp all powers, reduce the individual to a true vassal serf, and turn the nations into a gigantic prison camp.

No, the Jackass has not lost his mind. This threat to humanity is very real, in progress, and might be interrupted. The Populist movement must take further root. The banker cabal is behind the globalist movement, with crimes committed against humanity. Their heinous transgressions extend far beyond war crimes, into areas of human genocide.

Each item in the list of the seven extreme threats is very well researched in the alternative media, with thousands of supporting documents and analyses. Let it be known that my list of seven threats is subjective. Other adept analysts can easily substitute one or two threats with other conceptual projects which might include groups of threats. The list is subject to interpretation. The globalists have been working hard for 30 years to produce hell on earth, their goal in service to Satan.

The Biblical Prophesies cite that during the End Times, the earth will be attacked by Satanists.

They will attempt to poison and destroy our world with seven bowls, a metaphor used to describe different avenues and methods for ruining planet Earth. Here is the Jackass interpretation of the details for projects currently underway. This is extremely disturbing. Their comprehension requires self-protection.

It is always wise to prepare for emergency times. People should accumulate supplies of water, dried food, canned food, clothes, vitamins, medical supplies, grooming supplies, toilet paper, and much more. They should also remove paper assets from their private financial stock. The old motto of buy low / sell high seems to be forgotten by the moronic sheeple which chase rising stocks, only to suffer very serious damage in financial loss later.

Best to sell what the central banks and big banks have been propping up, namely stocks and bonds. Bank certificates are not safe either. If and when big banks are toppled and go bust during the contagion extending from the Systemic Lehman event on the horizon, the bank bail-ins threaten the personal deposits.

Best to buy what the central banks and big banks have been suppressing, namely Gold & Silver invested in the form of bars and coins. These are extremely dangerous times, and they are likely to get worse…

Click Here For Full Hat Trick Letter:

Gold $10,000 Coming – “Time To Prepare Is Now”

10-Mar-2017

James Rickards: Long-Term Forecast For $10,000 Gold

James Rickards, geopolitical and monetary expert and best selling author of the ‘The New Case for Gold’ has written an interesting piece for the Daily Reckoning on why he believes gold will reach $10,000 in the long term.


Gold in USD Adjusted for Inflation 1970-2017 – Macrotrends.net

He warns of the many systemic and geopolitical risks including the EU elections, from nuclear North Korea, tensions with Iran and “rapidly rising tensions between the U.S. and increasingly powerful China in the South China Sea.”

James Rickards believes that the EU elections “could potentially bring the future of the European Union into grave doubt” and that the “bottom line” is that “there are plenty of potential geopolitical shocks that could threaten the current system, in addition to existing concerns about a stock market collapse or debt crisis.”

“The time to prepare is now” advises Rickards.

Click here to continue reading…..

Nobel Prize Winning Economist Blasts America’s ‘Rent-Seeking’ Economy

10-Mar-2017

Rent seekers lobby and persuade governments to give them special favors. 

Bankers during the financial crisis, and much of the health-care system, are two prime examples, Deaton said.

Rent-seeking not only does not generate new product, it actually slows down economic growth, Deaton said.

“All that talent is devoted to stealing things, instead of making things,” he said.

Read more.

[KR1042] Keiser Report: Neoliberalism is Junk

9-Mar-2017

In this episode of the Keiser Report, Max and Stacy discuss why neoliberalism didn’t make us richer. In the second half, Max interviews Steve Keen (@profstevekeen) about quantitative easing

CONTRIBUTE TO HIS PATREON HERE

Silver Bullion Massively Undervalued From Historial Perpective

9-Mar-2017

– What wages in ancient Athens can tell us about the silver price today
– Wages paid in silver in ancient Athens compared to wages today
– Silver massively undervalued compared to the past few thousand years

The cost of building the Parthenon was 469 silver talents, or about £5.6m.

by Dominic Frisby

Today we look at the wages paid to oarsmen on warships in ancient Athens in 450BC.

I bet you’ve never read a Money Morning that began like that before.

Why on earth would I want to do such a thing?

Because it tells us a great deal about the silver price today…

How wages in ancient Athens compare to today

In The Economy of Ancient Greece, historian Darel Engen describes how the Athenian unit of money – the talent (about 26kg of silver) – could purchase nine years of a skilled man’s labour. If we assume 250 working days in a year, that works out at about 11.5g of silver per day – a little under 0.3 of a troy ounce.

A kilo of silver today is about £460, so nine years’ skilled labour would amount to about £12,000 in today’s money. That makes a year’s skilled labour about £1,333, and a day’s £5.29.

Fast forward to today. The average wage in the UK construction industry, which I’ll use as an equivalent, is about £30,000 per annum, or £120 per day. It seems that today’s British labourer is earning considerably more than his ancient Athenian counterpart.

We must, however, factor taxation into our calculations in order to appreciate what the worker actually took home with him. Enlightened souls that they were, there was no direct taxation on income in ancient Greece. The large part of the expenses of the city were shouldered by the rich, who made their donations voluntarily – sort of – through the system of liturgy.

In the UK today, on the other hand, somewhere between 40% and 55% of the average worker’s income is taken, one way or the other, to pay for the state, depending on whose figures you use (and that’s before you factor in inflation taxes).

For the sake of simplicity, let’s use a 40% figure and go with an after-tax income of £72 per day – or £18,000 per annum. So even after taxes, the modern labourer would seem to be earning considerably more than the ancient – over ten times as much.

As Greece was the most advanced civilisation in 450BC, perhaps we should only be comparing it to the developed world. But even if we factor in less developed nations, the modern worker appears to be earning more than the ancient.

Globally, according to the United Nations International Labour Organisation (ILO), the average salary is $18,000 – say £14,000, or £56 per day. That would be £34 after 40% taxes.

An Athenian warship, the trireme, cost about a talent to build (£12,000). A trireme’s unskilled oarsman would be paid 4.3g of silver each per day (£2). The cost of building the Parthenon was 469 talents, according to Professor Thomas Sakoulas. That works out, according to my maths (469 x 26 x 460) at about £5.6m. The cost of building the Shard, by way of comparison, seems to have been around £435m.

Read full story here…

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Call GoldCore and speak with a Gold and Silver Specialist today!

Why I Have to Agree with Tim Geithner on This

8-Mar-2017

Many of us disagree with the bloviated, self-congratulatory notion that the Federal Reserve and the U.S. Treasury saved the U.S. economy, capitalism and everything else in 2008-09 up to and including the Central Bank of Mars and the bat guano futures market.

That said, I found myself in agreement with Timothy Geithner’s recent assessment of systemic risk and the limits of regulation published in Foreign Affairs magazine: Are We Safe Yet? How to Manage Financial Crises (subscription/registration required)

Geithner starts with some refreshingly straight talk: financial systems are inherently fragile and prone to panics and runs. This echoes what Alan Greenspan wrote in the pages of his own analysis of inherent financial fragility in Foreign Affairs Never Saw It Coming: Why the Financial Crisis Took Economists By Surprise.

“The danger is particularly acute in periods that see both large increases in wealth and optimistic beliefs about the economy–that the economy is safe, that risky assets will rise in value, that liquidity is freely available, and so on.”

Like now, right? Geithner goes on to describe the unknown unknowns of risk-off contagion:

“Panics, although scary and dangerous, don’t inevitably end in economic crashes. Much of what determines the severity of the outcome is the quality of the policy choices made in the moment. When expected losses to the value of assets appear very large, there will be uncertainty about which party will bear those losses. This uncertainty can lead to a general reduction in funding for a broad range of financial institutions. That, in turn, can force those institutions to liquidate assets at fire-sale prices, which, if used to measure the riskiness of assets across the system, will make large parts of the financial system appear to be insolvent. This dynamic is not self-correcting. Left unchecked, it will simply accelerate.

Nor are the dynamics of contagion fully knowable in advance. To paraphrase Ernest Hemingway, runs happen gradually, then suddenly. Their characteristics and severity depend on how things evolve in the event and on what policymakers do in response. What matters most are not the first-round effects of direct losses from the defaults of the weakest firms or even the linkages among those firms. Rather, what drives contagion is an increase in the perceived risk that a large number of firms could fail.”

While giving lip-service to the benefits of accepting losses, Geithner sees the state as the key player in any crisis. While I don’t agree with the idea that the only way to avoid depression is for the state/central bank to backstop everyone, it’s easy to see the logic once you accept Geithner’s claim that policymakers “cannot eliminate the inherent fragility of the financial system, and they cannot escape the reality that its survival requires extraordinary intervention on the part of the state.”

Where I once again find myself in agreement is when Geithner explains why additional regulation doesn’t reduce systemic fragility–rather, it increases it:

“There is no reason to be more confident about policymakers’ ability to defuse financial booms or head off financial shocks preemptively. Central banks and international financial institutions have made huge investments in producing sophisticated charts aimed at identifying early warning indicators of systemic risks. But financial crises cannot be forecast. They happen because of inevitable failures of imagination and memory. Financial reforms cannot protect against every conceivable bad event. So it is important to recognize that the overall safety of the financial system–and the health of the broader economy–hinges on more than just the strength of financial regulation.”

Geithner’s conclusion: current policy extremes, politics and astounding debt levels limit policymakers’ emergency options in the next crisis which Geithner concedes is inevitable given the inherent instability of our financial system.

“Solvency problems become more likely to be treated as liquidity problems. The government delays action until the only remaining options are even less politically appealing.”

Geithner’s proposed solution is basically unlimited state/central bank power to backstop anyone and everyone and create unlimited credit on demand:

“The right regime should recognize that successful crisis management requires allowing the government and the central bank to take risks that the market will not take and absorb losses that the market cannot absorb. It should allow the government to act early, before a panic gains momentum. And it should establish an overarching goal of preserving the stability of the whole system and restoring its capacity to function–not avoiding the failure of individual firms.”

While I am not persuaded that repeating the unlimited liquidity/credit “fix” of 2008-09 will resolve the next crisis, I do agree that the room to maneuver is shrinking. The American public has little stomach for another massive bailout of super-wealthy bankers and financiers, and the public is equally wary of granting the Fed the ability to buy staggering quantities of stocks, empty malls, bat guano futures and everything else the Fed will have to buy to keep the markets aloft forever.

What Geithner is unwilling to say is what’s obvious: now that policymakers have shot their wad and the room for maneuver is limited, there can’t be a centralized, painless “fix” for the next inevitable financial crisis.

Eight years after the crisis of 2008-09, central banks are still propping up a fragile, sick-unto-death financial firetrap:

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

Check out both of my new books, Inequality and the Collapse of Privilege ($3.95 Kindle, $8.95 print) and Why Our Status Quo Failed and Is Beyond Reform ($3.95 Kindle, $8.95 print). For more, please visit the OTM essentials website.

[KR1041] Keiser Report: Big Money in Space Junk

8-Mar-2017

We discuss bitcoin passing gold price and the big money in space junk. In the second half, Max interviews independent journalist, Tim Pool (@timcast) about his crowdfunded journey to the so-called ‘no go areas’ of Sweden and whether or not President Trump was wrong about how ‘dangerous’ they are.

Gold Investing 101 – Beware Unallocated Gold Accounts With Indebted Bullion Banks and Mints (Part II)

8-Mar-2017

Gold Investing 101 – Beware Unallocated Gold Accounts With Indebted Bullion Banks and Mints (Part II)

  • Investors looking to gold again but gold buyers need to exert caution
  • Royal Mint – a royally expensive way to help the government
  • Unallocated gold – unsecured creditor of a bank?
  • If you cannot hold it, you do not own it
  • Own gold bullion coins as insurance, to reduce counter party risk and to preserve wealth
  • Conclusion – Reduce counter parties, Don’t over complicate

Yesterday we pointed out how the gold market is seeing renewed interest from new, first time gold buyers and gold investors. Concern unites them – they are concerned about the current trajectory of the world – politically, financially, economically, monetarily and environmentally.

As the old adage goes though – ‘all the glitters is not gold’ and novice, and indeed experienced, investors need to be careful that they are not seduced by ‘shiny trinkets’ which look ostensibly attractive but in fact are fraught with risk and not the safe haven that gold bullion is – when owned in the safest ways possible.

We looked at collectible gold and silver coins with massive premiums, gold plated coins masquerading as “pure gold coins” and the assortment of such coins for sale on eBay and other online retail platforms.

Today, we move up the food chain of the gold market and look at some of the bigger beasts who offer various gold investment schemes – two of which are unallocated gold accounts with bullion banks and with government institutions and mints.

Below we take a look at some of these popular options and explain why they might not be the gold standard of gold investment.

For all of our talk about avoiding gold scams you might think that the wisest thing to do would be to go straight to the source in order to buy your commemorative coin or even a bullion coin. Whilst this does remove the risk of buying a fake, it certainly does not remove the chances of being royally ripped off when it comes to the price and buying intrinsically worthless coins are very high prices. This is most likely the case when it comes to newly minted commemorative coins.

The Telegraph writes that the Royal Mint’s London Olympic 2012 coins set was priced at £1,295, almost twice the value of each coin’s gold content (38 grams of 22-carat gold). One wonders how much a 2008 ‘Olympic handover’ coin is now going for given it was trading for 5% below the original retail price, in 2009 despite a 30% climb in the sterling price of gold.

Read full story here…

Interested in learning more about physical gold and silver?
Call GoldCore and speak with a Gold and Silver Specialist today!

CIA Hacking Tools Allow for an Unaccountable Intelligence Agency Dictatorship

8-Mar-2017

By now, most of you have heard about the largest ever release of confidential CIA documents published by Wikileaks, known as Vault7. Many of you have also read various summaries of what was released, but reading the take of others is not the same as analyzing it yourself. As such, I strongly suggest you check out the original Wikileaks summary. It’s mostly written for the layperson without much technical expertise (like myself), and I think you’ll get a lot out of it.

In this post, I’m going to republish the entire press release, as well as provide key excerpts from the larger summary along with some personal observations. Let’s get started…

Read more here.

Gold Investing 101 – Beware eBay, Collectibles and “Pure” Gold Coins that are Gold Plated

7-Mar-2017

Gold Investing 101 – Beware eBay, Collectibles and “Pure” Gold Coins that are Gold Plated (Part I) 

  • Investors looking to gold again but gold buyers need to exert caution
  • ‘Wolves of Wall Street’ ready to hungrily gobble up life savings of unsuspecting ‘widows and orphans’
  • Like all markets are few bad apples in gold market
  • Need to do due diligence on company buying from
  • Avoid companies marketing gold plated coins as “pure gold” coins
  • Collectible coins do not capture the value of  gold and are not safe havens 
  • Not liquid and pricing similar to art market
  • Own gold bullion coins as insurance, to reduce counter party risk and to preserve wealth


Last year gold demand reached a three-year high and the gold price finished up 8% in dollars, 13% in euros and 31% in British pounds.

2017 has picked up where 2016 left off. Uncertainty with regard to both the political and financial outlook and a growing demand to hold assets outside of the banking system is seeing safe haven demand for gold and gold is 6% higher in dollars and by more in other currencies.

It is little wonder, therefore, that many investors are again looking to invest in gold and sometimes silver in order to diversify their portfolios and reduce risk.

As mentioned last week, when it comes to investment opportunities, the pickings are looking increasingly slim with many markets, including stock, bond and many property markets now at or near all time record highs.

Read full story here…

Interested in learning more about physical gold and silver?
Call GoldCore and speak with a Gold and Silver Specialist today!

It’s What’s Happening Beneath the Surface That Matters: Moral Decay and Rising Inequality

6-Mar-2017

With the media’s hyperactive three-ring circus blasting 24/7, it’s easy to forget that everything consequential is happening beneath the surface, out of sight and largely out of mind.

What’s going on beneath the surface is structural and systemic–for example, the 4th Industrial Revolution that is transforming the global economy and social order, regardless of political ideologies or our wishes.

Centralization–the “solution” to every problem since 1940–is now the problem. Centralization generates corruption, privilege, rentier skims, institutionalized rackets and pushes one-size-fits all failure down the chain of command.

Fragmentation and the De-Optimization of Centralization (January 2, 2017)

Another “solution”–issuing more costly credentials–has also failed. An over-abundance of credentials pushes wages down, even for the highly educated, while the credential mill of higher education has become a bloated, ineffective cartel that charges outrageous fees for increasingly valueless credentials.

The structural changes in the economy are visible in these charts:

The civilian participation rate is plummeting, despite the “recovery:”

The civilian participation rate for men is in a multi-decade decline:

As a percentage of GDP, wages have been declining for decades.

The rich have managed to gain wealth and income while the bottom 95% have gotten poorer as the cost of living soars and their wages stagnate.

There is more going on here than changes wrought by technology. Consider how many analysts identify central banks as a key cause of rising inequality and debt burdens. Consider how many people identify “money in politics” as a key factor in the corruption of governance. Consider how many people view “big government” as the force eroding civil liberties and imposing financial repression on all but the super-wealthy who influence Big Government with campaign contributions, lobbying, sweetheart contracts, revolving doors between government jobs and lucrative corporate positions, etc.

All of these institutions were present in the “golden era” of the 1950s and 60s. The Federal Reserve and Big Government were dominant forces, and money was the mother’s milk of politics. Large corporations flourished and heavily influenced government policies.

So what’s changed? Why are our systems of governance and finance now so dominated by the super-wealthy and corporations? Why are they so corrupted and ineffective?

Beneath the surface, the moral dynamics of the social order and the economic mode of production have corroded, generating systemic moral decay and soaring inequality. An awareness of the common good has been completely eclipsed by a single-minded, obsessive devotion to maximizing personal gain by whatever means are available.

Those benefiting from obsolete ideas and systems cling to them obstinately to maintain their slice of the pie, dooming the entire social/ economic /political order to stagnation and collapse.

With the loss of an awareness of the common good, there is no stomach for sacrifice of any kind–we wuz promised and I’m a deserving victim are the cultural norms.

Moral decay at the top quickly infects the entire social-order pyramid. Once injustice is institutionalized in unearned privileges, rentier skims and scams, systemic fraud, state-enforced rackets, a some-are-more-equal-than-others judicial system and a drug-war Gulag for the disenfranchized, the systemic injustices corrupt not just every institution but the culture that is internalized by every participant.

I covered these dynamics in my short book Inequality and the Collapse of Privilege, and historian Peter Turchin has illuminated historic cycles and examples in his bookWar and Peace and War: The Rise and Fall of Empires, which describes how civic virtue is gradually replaced by personal greed and self-interest.

This excerpt perfectly captures the current zeitgeist:

“Virtus included the ability to distinguish between good and evil and to act in ways that promoted good, and especially the common good. Unlike Greeks, Romans did not stress individual prowess, as exhibited by Homeric heroes or Olympic champions. The ideal of hero was one whose courage, wisdom, and self-sacrifice saved his country in time of peril.

Unlike the selfish elites of the later periods, the aristocracy of the early Republic did not spare its blood or treasure in the service of the common interest. When 50,000 Romans, a staggering one fifth of Rome’s total manpower, perished in the battle of Cannae, as mentioned previously, the senate lost almost one third of its membership. This suggests that the senatorial aristocracy was more likely to be killed in wars than the average citizen….

The wealthy classes were also the first to volunteer extra taxes when they were needed… A graduated scale was used in which the senators paid the most, followed by the knights, and then other citizens. In addition, officers and centurions (but not common soldiers!) served without pay, saving the state 20 percent of the legion’s payroll….

The richest 1 percent of the Romans during the early Republic was only 10 to 20 times as wealthy as an average Roman citizen.”

Turchin’s latest book, Ages of Discord, describes the cyclical nature of disintegrative and integrative eras. (Needless to say, we’re in a disintegrative phase.)

These long cycles parallel the cyclical analysis of David Hackett Fischer, whose masterwork The Great Wave: Price Revolutions and the Rhythm of History I’ve referenced many times over the years, most recently in We’ve Entered an Era of Rising Instability and Uncertainty (July 18, 2016).

Corralling the Fed, staunching the flow of money into politics and limiting the predations of Big Government on civil liberties and economic freedoms would be welcome reforms, but they won’t be enough. The moral rot has hollowed out not just these institutions of governance and power, but the entire social order and the mode of production.

These disintegrative forces are easy to see but elusive to pin down. Nobody defines themselves as self-serving, greedy and lacking in virtue. Everyone feels trapped in the system as it is, a swirling funhouse of smoke and mirrors in which everyone seeks to maximize their private gain at the expense of others or the system itself, all the while signaling their virtue with cheap, substance-free speech acts.

This precisely mirrors what the Romans were proclaiming as their empire crumbled around them. You can’t rebuild a moral center with more regulations and legislation, or by trying to silence critics. Proliferating regulations and attempts to silence critics are simply proof that the disintegration is accelerating down the slide to disorder and collapse.

Silver & Bitcoin Expert Cliff High Warns: WE STAND AT THE CUSP!

6-Mar-2017

Clif High’s Webbot Warns, WE STAND AT THE CUSP!

 

“Think About and Prepare For” Euro Catastrophe

6-Mar-2017

“Think About and Prepare For” End Of Euro – TV3 Agenda Interview

David McWilliams interviewed Lara Marlowe and Cormac Lucey about the elections in France (April 23 and May 7) for TV3’s Agenda and the short interview about the French elections, Le Pen and the risks posed to the euro is a must watch.


Key points covered
– “Could the French say ‘au revoir’ to the euro?”
– Brexit vote and Trump election given a “lot of cold chills”
– Le Pen has “promised to take France out of euro”
– Her election would be “catastrophic for Europe and the euro”
–  “If people break out from the lunatic asylum … Ireland should leave the euro…”
– ‘Going bankrupt slowly and then suddenly’ as per Hemingway’s warning
– “Money moves when it is panicked …”
– This is now not a “fringe” concern – deep insiders are warning
– Lack of rational debate about risks – blindly dismiss concerns
–  “Seeing a slow motion bank run…”
– “Think about and prepare for…”

Interview can be watched on TV3 here (Begins 15.43)

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The Great Wealth Transfer

5-Mar-2017

The Federal Reserve and other central bankers have become the standard bearers of a system that can best be described as a reverse Robin Hood scheme, one that takes from the poor and gives to the Rich. It’s just that in this tale, the ‘poor’ means everybody not in the top 1%.

You need to understand this wealth transfer process — how it works, who’s perpetrating it, and what dangers to watch for. If not, you’ll be a victim of it. And you’ll probably live in confusion and shock by how hard just ‘getting by’ becomes going forward.

So what’s at risk here is an inflection point where the world realizes it’s holding a lot of paper, but little of substance. At that moment, the value of nearly every financial asset — stocks, bonds, mortgages, derivatives — even and especially our own currency — will be sharply, painfully reduced.

Realizing that you’re being specifically targeted by a system determined to separate you from your wealth is the essential first step towards figuring out how to evade the predators and protect yourself.

Click here to read the full article

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