Doug “Uncola” Lynn randomly ruminates and extracts pearls of wisdom from his real life experiences. From Doug at theburningplatform.com:
It’s been a long year. First, we narrowly avoided World War 3. At least for now. And, currently, we are approaching peak bullshit in the arena of American politics; as if that were even possible.
War and political bullshit: Both means of blowing smoke up our collective asses prior to author George Orwell’s dystopic vision of jackboots stomping on human faces forever. Because, either the long slow collapse will usher in an era of decentralization – which would follow a period of immediate anarchy; or, a nightmare age of global centralization that may be about to commence.
Obviously, the billionaire class and their employees in human resources departments around the globe prefer centralized control – as do the Orwellian media and government apparatchiks. And in the Hegelian view of those peering behind the eye at the top of the pyramid, chaos brings order. But no matter what happens in the end, many people will definitely die before the new cashless age begins.
Nobody knows just how much of China’s economic miracle was bought with a credit card. We may soon find out. From Brett Redmayne-Titley at watchingromeburn.uk:
In emulating the American economic raison d’etre,China has attempted to develop its unique capitalist model while ignoring that it too will soon suffer the same fate for the same reason: Unsustainable debt. When examining the recent realities of Chinese banking and finance over the past year it seems the steam that president Xi Jinping touts as powering the engine of his purported economic miracle of a master-planned economy is only a mirage, now almost completely evaporated before his eyes.
Like the many other similarly foolish western nations, China seeks only one path out of this fiscal death spiral, one that will likely spell doom and/or revolution in many countries soon: More debt.
Alasdair Macleod outlines how the US could return to gold-backed money. From Macleod at goldmoney.com:
Given the current fiat money system is on a path towards its own destruction it is not surprising that there has been increasing talk of a monetary reset. Without a completely different approach and by retaining the same institutions and macroeconomic concepts, any such reset is bound to fail.
This article provides a template for an enduring sound money solution that will deliver economic progress while eliminating destructive credit cycles. It posits that a properly constructed gold and gold substitute monetary system, which also includes the removal of bank credit inflation as a means of providing investment capital, is the only way that lasting stability and prosperity can be achieved. As well as the establishment of an incorruptible monetary system, the state’s role in the economy must be curtailed, budgets always balanced, banking reformed, and the private sector allowed to accumulate the wealth necessary to provide the investment for producers to produce.
Monetary reform involves a clear understanding of why free markets succeed and why socialism, together with neo-Keynesian macroeconomics, are responsible for the impending monetary and economic collapse. It will require a complete change of socio-political and economic cultures, but properly approached it can be done.
There has been very little commentary in recent years about the benefits of sound money, being limited almost entirely to followers of the Austrian school of economics. Even less has been written about how to back out of inflationism, end unsound money and return to a monetary arrangement which cannot be corrupted by governments and the banking system.
The most notable attempt was by Ludwig von Mises who appended a chapter on the subject in his updated 1952 version of The Theory of Money and Credit[i] The circumstances were very different from that of today. At that time, the US had corrupted its gold exchange standard to progressively exclude the ability of individuals to demand gold for paper dollars. And both Keynesianism and socialism, in the West at least, were in their earlier days. Today, we face more of an end game where considerable damage has been done since to the status of circulating money, and we face the prospect not of reform but of a collapse of the entire fiat money system.
Posted in banking, Business, Capitalism, Collapse, Currencies, Debt, Economics, Economy, Governments, Money
Tagged Bank Deposits, Central banks, Federal Reserve, Gold Standard, government bonds
The next financial collapse will owe it all to debt and central banks. From David Stockman at internationalman.com:
International Man: You have sounded the alarm on a coming financial crisis of historic proportions. How do Trump’s trade policies figure into your view that a crisis is coming?
David Stockman: Trump’s trade policies only create more risk and rot down below.
They’re just kicking the can down the road. With this latest move by the Fed, they have cut the interest rates three times and short-term rates are back at 1.55%. They’re pumping their balance sheet back up—it’s up $300 billion just since September.
The Fed has reverted to all of the things that have created the underlying rot—and that means when finally things break loose, it’s going to be far worse than it would have otherwise been.
Given that they’re kicking the can down the road, they’re building the pressure in the system to really explosive levels.
The trade chaos that Trump’s creating is probably the catalyst that will bring down the whole house of cards.
At end of the day, it’s about the Red Ponzi. The world economy would be not nearly as good as it looks had the Chinese not been borrowing like there’s no tomorrow and building regardless of whether its efficient or profitable.
Posted in banking, Business, Collapse, Currencies, Debt, Economy, Financial markets, Governments, History
Tagged central bank policies, China, Federal Reserve
If the globalists have their way, a ramped-up war in the Middle East is on tap. From Brandon Smith at alt-market.com:
In 2016 during the election campaign of Donald Trump one of the primary factors of his popularity among conservatives was that he was one of the first candidates since Ron Paul to argue for bringing US troops home and ending American involvement in the various elitist fabricated wars in the Middle East. From Iraq, to Afghanistan, to Syria and Yemen and beyond, the Neo-Cons and Neo-Libs at the behest of their globalist masters had been waging war oversees unabated for over 15 years. The time was ripe for a change and people felt certain that if Hillary Clinton entered the White House, another 4-8 years of war were guaranteed.
There was nothing to be gained from these wars. They were only dragging the US down socially and economically, and even the idea of “getting the oil” had turned into a farce as the majority of Iraqi oil has been going to China, not the US. General estimates on the costs of the wars stand at $5 trillion US tax dollars and over 4500 American dead along with around 40,000 wounded. The only people that were benefiting from the situation were globalists and banking elites, who had been clamoring to destabilize the Middle East since the day they launched their “Project For A New American Century” (PNAC). Truly, all wars are banker wars.
Posted in banking, Collapse, Financial markets, Foreign Policy, Geopolitics, Governments, History, Military, Politics, War
Tagged globalists, Iran, Iraq, Middle East, Neocons, President Trump
To borrow from Orwell: there are some ideas that are so stupid on central bankers can believe them. From Daniel Lacalle at mises.org:
Negative rates are the destruction of money, an economic aberration based on the mistakes of many central banks and some of their economists, who start with a wrong diagnosis: the idea that economic agents do not take more credit or invest more because they choose to save too much and that therefore saving must be penalized to stimulate the economy. Excuse the bluntness, but it is a ludicrous idea.
Inflation and growth are not low due to excess savings, but because of excess debt, perpetuating overcapacity with low rates and high liquidity, and zombifying the economy by subsidizing the low-productivity and highly indebted sectors and penalizing high productivity with rising and confiscatory taxation.
Historical evidence of negative rates shows that they do not help reduce debt, they incentivize it. They do not strengthen the credit capacity of families, because the prices of nonreplicable assets (real estate, etc.) skyrockets because of monetary excess, and the lower cost of debt does not compensate for the greater risk.