Category Archives: Currencies

Global Inflation watch, by Alasdair Macleod

Currency debasement is inflation, and governments and central banks are debasing their currencies with abandon. From Alasdair Macleod at goldmoney.com:

his article posits that fiat currencies are on the path to hyperinflation and looks at the evidence in the prices of financial assets and commodities. So far, gold has notably underperformed, which indicates that the early signals of hyperinflation are confined to the cryptocurrencies, whose participants broadly understand fiat debasement, to equities reflecting the desire not to maintain cash and deposit balances, and in international trade, where commodity prices of all stripes have risen in price.

Given that the early warnings of hyperinflation of money supply are here, the article then looks at the qualities required of a sound money to replace fiat currencies.

Introduction

Figure 1 shows how prices have moved from the Friday before the Fed’s announcement on 23 March that it would go all-in on its support for the US economy with unlimited quantitative easing. It amounted to a commitment to hyperinflate the money supply if needed. Before the Fed cut its funds rate to zero on 16 March nearly all these prices were falling.


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Since late-March every category has seen increases in prices. Sector and specialist analysts will always claim that there are identifiable reasons why prices for an individual category or commodity have risen. But the fact is that with the exception of the dollar and the other fiat currencies listed in the table all prices have risen. This cannot happen without the dollar and these currencies losing purchasing power.

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The Post Covid World, The WEF’s Diabolical Project: “Resetting the Future of Work Agenda” – After “The Great Reset”. A Horrifying Future, by Peter Koenig

The great resetters are going to reset things back, way back. From Peter Koenig at globalresearch.ca:

The World Economic Forum (WEF) has just published (October 2020) a so-called White Paper, entitled “Resetting the Future of Work Agenda – in a Post-Covid World”.

This 31-page document reads like a blueprint on how to “execute” – because an execution (or implementation) would be – “Covid-19 – The Great Reset” (July 2020), by Klaus Schwab, founder and CEO (since the foundation of the WEF in 1974) and his associate Thierry Malleret.

They call “Resetting the Future” a White Paper, meaning it’s not quite a final version. It is a draft of sorts, a trial balloon, to measure people’s reactions. It reads indeed like an executioner’s tale. Many people may not read it – have no awareness of its existence. If they did, they would go up in arms and fight this latest totalitarian blueprint, offered to the world by the WEF.

It promises a horrifying future to some 80%-plus of the (surviving) population. George Orwell’s “1984” reads like a benign fantasy, as compared to what the WEF has in mind for humanity.

The time frame is ten years – by 2030 – the UN agenda 2021 – 2030 should be implemented.

Planned business measures in response to COVID-19:

  • An acceleration of digitized work processes, leading to 84% of all work processes as digital, or virtual / video conferences.
  • Some 83% of people are planned to work remotely – i.e. no more interaction between colleagues – absolute social distancing, separation of humanity from the human contact.
  • About 50% of all tasks are planned to be automated – in other words, human input will be drastically diminished, even while remote working.
  • Accelerate the digitization of upskilling / reskilling (e.g. education technology providers) – 42% of skill upgrading or training for new skills will be digitized, in other words, no human contact – all on computer, Artificial Intelligence (AI), algorithms.

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Money Is A Weapon of Mass Destruction, by Paul Rosenberg

Fiat money may be the most destructive instrumentality on the planet. From Paul Rosenberg at freemansperspective.com:

Money wasn’t always our enemy, of course; I’m old enough that I knew people who were alive before it was weaponized. But modern money – dollars, euros and so on – are so destructive that they’re threatening not just individuals, but Western civilization itself.

If that sounds a bit over the top, please read on. Before we’re done I think I’ll convince you otherwise.

I call fiat currency a weapon of mass destruction because it has caused far more widespread damage than chemical weapons ever have, and has assuredly destroyed more human potential than nuclear weapons. The nuke destroys horrifyingly but rarely; fiat money destroys minute by minute, day by day, over multiple decades and in shocking proportions.

How Money Destroys

How money destroys is not immediately obvious. We grow up learning to count it and spend it, then to make it, but few of us ever learn anything more about it, even in university-level programs.

Fundamentally, fiat currencies destroy because they hijack human will on a massive scale. Here’s how it happens:

  1. Money (currency) is one half of every commercial transaction, and those transactions involve nearly every aspect of every life in the Western world, from birth to death. That’s immense scope.
  2. Fiat currency is created at roughly zero cost, by governments and the friends of governments.
  3. Money is used to buy all the necessities of life. Thus it is deeply and inherently motivating, and to more or less every human on the planet.
  4. Because of the above, anyone creating new currency units can motivate millions of human beings: powerfully, on demand, and at almost no cost.

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The U.S. Government Will Inflate To The Bitter End, by MN Gordon

When you only have one solution to your problems, you go with that solution. From MN Gordon at economicprism.com:

The big news organizations say Joe Biden’s the next president of the USA.  That claims of election fraud and fixing are baseless.  Do you believe them?  Do you trust them?

Regardless, Biden’s acting as if.  He’s talking to foreign leaders.  He’s meeting with vaccine makers.  He’s making big plans.  He’s planning big things.  But, apparently, he’s not progressive enough.

This week, for example, an organization called Justice Democrats accused Biden of appointing corporate-friendly insiders.  They say these “corporate-friendly insiders […] will not help usher in the most progressive Democratic administration in generations.”

Certainly, Biden’s getting plenty of advice.  The political puppet has left many strings to be pulled.  Elizabeth Warren and Chuck Schumer want Biden to erase the first $50,000 of a person’s student loan debt.  According to Schumer, “Joe Biden can do that with the pen as opposed to legislation.”

Will Biden listen to them?  Will he listen to progressive superstar Alexandria Ocasio-Cortez?  On Monday, Ms. Ocasio-Cortez, tweeted:

“Student loan forgiveness is good, actually.

“We should also push for tuition-free public colleges to avoid this huge debt bubble from financially decimating ppl every generation.  It’s one of the easiest progressive policies to ‘pay for,’ w/ multiple avenues from a Wall St transaction tax to an ultra-wealth tax to cover it.”

Wow!  Biden hasn’t even moved into the White House and things have gone stoopid silly.  Where to begin?

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The global reset scam, by Alasdair Macleod

It doesn’t matter much if you shift from paper money to digital money if they’re both worthless. From Alasdair Macleod at goldmoney.com:

This article takes a tilt at increasing speculation about statist global resets, and why plans such as those promoted by the World Economic Forum will fail. Central bank digital currencies will simply run out of time.

Instead, the collapse of unbacked fiat currencies will end all supra-national government solutions to their policy failures. Already, there is mounting evidence of money beginning to flee bank accounts into stocks, commodities and even bitcoin. This is an early warning of a rapidly developing monetary collapse.

Moreover, nothing can now stop the collapse of fiat currencies, and with it schemes to control humanity for the convenience and ambitions of government planners. There can only be one statist solution and that is to mobilise gold reserves to back and save their currencies, which in order to succeed will have to be fully convertible into circulating gold coinage. It will also require the role of governments to be reset into a non-welfare, non-interventionist minimalist role, which can only be achieved after a complete collapse of the current fiat-financed system.

Anything less will fail.

The Deep State and The Blob fuel conspiracy theories

Increasingly, people are beginning to realise that their world is undergoing a period of rapid change, with the future of fiat money now uncertain. For most, it is too difficult to even contemplate. But growing uncertainties are driving wild speculation about what those in authority now have in store for the human race in the form of a global reset. It is a time for conspiracy theorists, aided and abetted by our politicians and central bankers who are being increasingly evasive, because events are spiralling out of their control.

Then there is America’s Deep State, or the British equivalent, the more recently christened Blob; an amorphous entity comprised of the permanent bureaucracy with its own agenda. These faceless planners have moved on from merely making ministers’ lives difficult if they deviate from the blob’s predetermined course — immortalised in “Yes Minister” and its sequel series “Yes Prime Minister”.

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Doug Casey on the End of Western Civilization

Western Civilization is faltering because its intellectual foundations—reason and the primacy of the individual—are being ceaseless undermined. From Doug Casey at internationalman.com:

End of Western Civilization

International Man: The decline of Western Civilization is on a lot of people’s minds.

Let’s talk about this trend.

Doug Casey: Western Civilization has its origins in ancient Greece. It’s unique among the world’s civilizations in putting the individual—as opposed to the collective—in a central position. It enshrined logic and rational thought—as opposed to mysticism and superstition—as the way to deal with the world. It’s because of this that we have science, technology, great literature and art, capitalism, personal freedom, the concept of progress, and much, much more. In fact, almost everything worth having in the material world is due to Western Civilization.

Ayn Rand once said “East minus West equals zero.” I think she went a bit too far, as a rhetorical device, but she was essentially right. When you look at what the world’s other civilizations have brought to the party, at least over the last 2,500 years, it’s trivial.

I lived in the Orient for years. There are many things I love about it—martial arts, yoga, and the cuisine among them. But all the progress they’ve made is due to adopting the fruits of the West.

International Man: There are so many things degrading Western Civilization. Where do we begin?

Doug Casey: It’s been said, correctly, that a civilization always collapses from within. World War 1, in 1914, signaled the start of the long collapse of Western Civilization. Of course, termites were already eating away at the foundations, with the writings of people like Jean-Jacques Rousseau and Karl Marx. It’s been on an accelerating downward path ever since, even though technology and science have been improving at a quantum pace. They are, however, like delayed action flywheels, operating on stored energy and accumulated capital. Without capital, intellectual freedom, and entrepreneurialism, science and technology will slow down. I’m optimistic we’ll make it to Kurzweil’s Singularity, but there are no guarantees.

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Countdown To Chaos, by MN Gordon

The American republic died in 1913. From MN Gordon at economicprism.com:

On Wednesday, while the broad stock market was getting shellacked, and companies like Everbridge, Bed Bath & Beyond, and Dynatrace were suffering double digit freefalls, something else was going on.  Gold and silver were also getting shellacked.

But it wasn’t all crash and burn.  First Solar, Rolls-Royce Holdings, and CoreLogic all notched double digit gains.  The dollar, as measured by the dollar index, gold, silver, and most stocks, was also up.  And something else was up too…

Most investors likely didn’t notice that American firearm manufacturer Sturm, Ruger & Company managed to eke out a small return.  Why would they?  A return of 0.43 percent is nothing to write home about.

Nonetheless, we contend that Ruger’s modest gain in the face of a massive selloff is something that should get the attention of investors.  It’s something that should also get the attention of non-investors.  Guns are in high demand.  So is ammo.

Naturally, guns and ammo should be in high demand.  They are useful.  Sometimes they are especially useful.  And right now happens to be one of those times.

Without question something wicked is brewing.  Politicians, academics, and the media have been fermenting public divisions for decades.  Now a volatile cocktail of rage threatens to blow its top off sometime on or shortly after election day.  People are gunning up just in case the chaos – something more than things that go bump in the night – arrives at their doorstep.

What to make of it…

“Death to America!”

The weather may have cooled down.  But the populace still burns hot.  Factions and fanatics look for any excuse to destroy public usufructs.  And they don’t have to look far to find one.

For example, this week, following the fatal police shooting of Walter Wallace Jr. in West Philadelphia, people went mad.  First they took to the streets.  Then they took to setting dumpsters on fire.  After that, they took to looting Walmart and other stores.

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Market Friday: Iran, Bitcoin and The Sanctions That Won’t Be, by Tom Luongo

Iran may be on to something. From Tom Luongo at tomluongo.me:

Amidst all the posturing, fretting and craziness leading up to the election on Tuesday the thing that jumped out of my Twitter feed was this 2 minute video from PressTV.

Watch it. I’ll wait.

… Done? Good.

Let’s get started.

This came from Press TV, the Iranian equivalent of the BBC but without so much British Marxism. So, it’s as official as official gets.

Iran will use bitcoin as part of its import settlement system. It will export bitcoins and import things barred to it from the U.S.

Do you really think this policy will stop here?

The video reminds us that Iran has been building this case for the use of bitcoin to evade U.S. sanctions for years. This is a strategic move, not a fly-by-night operation like Venezuela’s Petro.

They could have gone the China or European Union route, push for a Central Bank Digital Currency completely controlled by the government.

You know, the worst possible arrangement, a cryptocurrency run by central bankers, i.e. Ripple.

But that would gain them nothing. Who would use a digital rial when no one wants the current rial?

Instead Iran embraced bitcoin because it had no other choice. The rial has been effectively destroyed by U.S. sanctions and the country is starving for a currency which accretes value to the user rather than steals it.

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A New World Monetary Order Is Coming, by Stefan Gleason

The envisioned monetary order will be, like the whole coronavirus and climate change scams, just another means by which the Davos Crowd will rule the world. At least that’s how the Davos Crowd imagines things. From Stefan Gleason at activistpost.com:

The global coronavirus pandemic has accelerated several troubling trends already in force. Among them are exponential debt growth, rising dependency on government, and scaled-up central bank interventions into markets and the economy.

Central bankers now appear poised to embark on their biggest power play ever.

Federal Reserve Chairman Jerome Powell, in coordination with the European Central Bank and International Monetary Fund (IMF), is preparing to roll out central bank digital currencies.

The globalist IMF recently called for a new “Bretton Woods Moment” to address the loss of trillions of dollars in global economic output due to the coronavirus.

In the aftermath of World War II, the original Bretton Woods agreement established a world monetary order with the U.S. dollar as the reserve currency.

Importantly, the dollar was to be pegged to the price of gold. Foreign governments and central banks could also redeem their dollar reserves in gold, and they started doing so in earnest in the 1960s and early 1970s.

In 1971, President Richard Nixon closed the gold window, effectively ushering in a new world monetary order based solely on the full faith and credit of the United States. An inflation crisis followed a few years later.

In response, the Federal Reserve took the painful step of jacking up interest rates to defend its wilting Federal Reserve Note and tame rising prices.

Fast forward to 2020, and the Fed has assumed for itself novel policy mandates that are a precursor to a new monetary system.

But the monetary masters aren’t contemplating a return to sound money. Rather, they’re planning for even more debt, more inflation, and picking of winners and losers in the economy.

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What the Great Reset Architects Don’t Want You To Understand About Economics, by Matthew Ehret

Innovation, not debt, is what propels an economy. The coming debt-fueled collapse will be wrongly blamed on the coronavirus. From Matthew Ehret at thesaker.is:

It shouldn’t come as a surprise that the Vice President of the World Bank Carmen Reinhardt recently warned on October 15 that a new financial disaster looms ominously over the horizon with a vast sovereign default and a corporate debt default. Just in the past 6 months of bailouts unleashed by the blowout of the system induced by the Coronavirus lockdown, Reinhardt noted that the U.S. Federal Reserve created $3.4 Trillion out of thin air while it took 40 years to create $14 Trillion. Meanwhile panicking economists are screaming in tandem that banks across Trans Atlantic must unleash ever more hyperinflationary quantitative easing which threatens to turn our money into toilet paper while at the same time acquiescing to infinite lockdowns in response to a disease which has the fatality levels of a common flu.

The fact of the oncoming collapse itself should not be a surprise- especially when one is reminded of the $1.5 quadrillion of derivatives which has taken over a world economy which generates a mere $80 trillion/year in measurable goods and trade. These nebulous bets on insurance on bets on collateralized debts known as derivatives didn’t even exist a few decades ago, and the fact is that no matter what the Federal Reserve and European Central Bank have attempted to do to stop a new rupture of this overextended casino bubble of an economy in recent months, nothing has worked. Zero to negative percent interest rates haven’t worked, opening overnight repo loans of $100 billion/night to failing banks hasn’t worked- nor has $4.5 trillion of bailout unleashed since March 2020. No matter what these financial wizards try to do, things just keep getting worse. Rather than acknowledge what is actually happening, scapegoats have been selected to shift the blame away from reality to the point that the current crisis is actually being blamed on the Coronavirus!

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