Category Archives: Money

Politicized Money and the Death of Capitalism, by Matthew Piepenburg

Technically speaking, money (“Real Money“) cannot be politicized; only debt can be politicized. From Matthew Piepenburg at goldswitzerland.com:

As far as we are concerned, it is no great secret nor any great surprise that our faith in fiat money (in general) and the central bankers who have debased it (in particular) and precipitated the death of capitalism is anything but robust.

To the contrary, our astonishment with the open mismanagement of global currencies as a whole, and the world reserve currency (i.e., the USD in particular), grows daily.

In fact, to fully un-pack the long series of comical errors and the failed experiment of politicized central bankers seeking to solve a debt crisis ($300T and rising) with more debt, which is then monetized by mouse-click money, would take an entire book rather than single article to address.

Hence our recent release of Gold Matters.

Learn more about the death of capitalism in Gold Matters, now available on Amazon.

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The Stock Market At The End Of The World, by Ed Zitron

Things are not always what they’re billed to be in the cryptocurrency world. From Ed Zitron at ez.substack.com:

Yesterday, as cryptocurrency prices crashed and many lost their shirts and asses due to overleveraging, Celsius Network, a loan platform for cryptocurrency, chose to pause all withdrawals, swaps, or transfers between accounts, citing “extreme market conditions.” To be clear, this means that billions of dollars of funds are being held hostage on a non-specific timeline by a company that several people have suggested may not have the liquidity to handle a full withdrawal of funds. It’s a bit like if you went to a bank and put money in there, but there was a rough day on the stock market, so now your debit card doesn’t work, and you can’t transfer money to anyone.

Binance, one of the largest cryptocurrency exchanges, also paused withdrawals of Bitcoin, citing a “stuck transaction,” a hold that lasted for three hours. In the last 48 hours, I’ve watched Bitcoin crumble from just under $25,000 on Monday to just over $21,000 as I write this – a number I’ll likely update multiple times before I finish writing this – and people are despairing. The Celsius Network subreddit includes some of the more depressing posts I’ve ever read, with users saying stuff like “they can legally just steal all our money?” and “Fuckfuckfuck” and “Bruh I was gonna exit today too RIP.” Crypto.com and BlockFi have both announced layoffs, and Coinbase retracted hundreds of job offers from people who had agreed to them, including at least one person who needed it for a visa.

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Edward Snowden’s Wrong About Gold, by Karen Selick

This has potential. From Karen Selick at lewrockwell.com:

I saw an article a few days ago about a speech given by famed whistleblower Edward Snowden at a recent cryptocurrency conference. Reportedly, Snowden said “Gold is great, but gold is not portable. Gold is not transmissible beyond borders at the tap of a button. But Bitcoin and crypto, more broadly, are.”

Up until about six months ago, I would have thought he was right. However, I have discovered that the marketplace was several steps ahead of Snowden and had already anticipated, and addressed, his concern. It’s too bad he doesn’t know about it.

There are now several offerings in the marketplace of gold-backed digital currencies that can indeed be moved at the tap of a button.

I have looked at a few, but the one I have chosen to try out over the past few months is called Kinesis Money. It has been in the works for about ten years, and it now offers a gold-backed currency (called a KAU) in which one unit of the currency is backed by a gram of gold. There’s also a silver-backed currency unit (a KAG) backed by an ounce of silver. (Cryptocurrencies are also available through Kinesis, but I’m not particularly interested in them. I’m there for the digital gold.)

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Sad: No One At Whole Foods Has Yet Received The News That The Pandemic Ended 18 Months Ago

From The Babylon Bee:

GRAND RAPIDS, MI—According to sources, a tragic breakdown in communication has led to thousands of Whole Foods shoppers being completely unaware that the global pandemic ended 18 months ago.

“I wear my mask to protect those around me. Please maintain a six-foot distance. EEEEEEEEEEE!” said local shopper Sable Channing when asked by a local reporter for comment. “Don’t touch my North Face jacket! Please put your mask up around your nose! GET AWAY FROM ME! YOU’RE A GRANDMA KILLER!”

Reports from around the country claim to be finding entire stores full of terrified millenial hipsters still using the social distancing “X” on the floor, donning two or three masks, and wearing fashion scarves all year round for some reason. Shoppers are being warned that any attempt to enter a Whole Foods unmasked could lead to hostile stares or being murdered.

“We have made several attempts to make contact with these out-of-touch primitives, but so far have only been met with primal screeches and thrown heads of cabbage,” said Grand Rapids Police Chief Camden Connors. “We may need more time to practice their language and dialect to reach them.”

At publishing time, experts warned that many Whole Foods shoppers are also unaware that organic food is a scam.

https://babylonbee.com/news/sad-no-one-at-whole-foods-has-yet-received-the-news-that-the-pandemic-ended-18-months-ago

Kiev Regime Admits Grain of Truth in Global Food Crisis, by Karl Haki

The grain of truth is that Ukraine is saying that perhaps, just maybe, they put down mines in the Black Sea. From Karl Haki at strategic-culture.org:

A regime that commits massacres against its own people as a propaganda device to smear Russia is not going to own up to anything.

The NATO-backed Kiev regime has admitted to blockading its own Black Sea ports by mining the sea lanes for cargo ships exporting vital supplies of wheat and other food staples.

The disruption of civilian shipping – a putative war crime – has unleashed fears of a global food crisis from soaring price inflation and critical shortages of wheat and other grains. Ukraine and Russia account for about one-third of the global supply of cereals.

Of course, Western governments and media have repeatedly blamed Russia and its four-month-old military intervention in Ukraine for wreaking havoc on global food markets. Washington and its European allies have accused Moscow of holding the world hostage to fears of famine and using global food supplies as “blackmail”.

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Ticking retirement timebomb? Unfunded state pension liabilities grow to $8.28 trillion, by The Center Square

Is default the only way out. Probably. From The Center Square at justthenews.com:

Unfunded state pension liabilities have climbed to $8.28 trillion, or nearly $25,000 for every person in the United States, according to a new report from the American Legislative Exchange Council.

The American Legislative Exchange Council released the latest edition of its report on pensions in all 50 states Thursday. The report, “Unaccountable and Unaffordable 2021,” shows just a handful of states with outsize pension liabilities account for a large share of overall pension debt in the U.S.

The report looked at 290 state-administered government pension plans and their assets and liabilities from fiscal year 2012 to fiscal year 2020. An example of state-administered government pension plans in Illinois would cover state employees, teachers, university workers, judges and lawmakers.

The states with the most unfunded liabilities were California ($1.53 trillion), Illinois ($533.72 billion), Texas ($529.70 billion), New York ($508.70 billion) and Ohio ($429.53 billion). These five states alone account for more than $3.5 trillion in unfunded liabilities, or about 43% of all unfunded liabilities in the U.S.

The bottom 10 states make up $4.9 trillion, or 59.36% of all unfunded liabilities, according to the ALEC report. On a per capita basis, the bottom five state were Alaska ($42,829), Illinois ($41,656.79), Connecticut ($40,427.58), Hawaii ($39,939.43), New Jersey ($39,849.02) and California ($38,713.16).

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THIS DAY IN HISTORY – FDR takes United States off gold standard – 1933, via history.com

It’s a short-odds bet that they try this again. From history.com:

On June 5, 1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold. The United States had been on a gold standard since 1879, except for an embargo on gold exports during World War I, but bank failures during the Great Depression of the 1930s frightened the public into hoarding gold, making the policy untenable.

Soon after taking office in March 1933, President Roosevelt declared a nationwide bank moratorium in order to prevent a run on the banks by consumers lacking confidence in the economy. He also forbade banks to pay out gold or to export it. According to Keynesian economic theory, one of the best ways to fight off an economic downturn is to inflate the money supply. And increasing the amount of gold held by the Federal Reserve would in turn increase its power to inflate the money supply. Facing similar pressures, Britain had dropped the gold standard in 1931, and Roosevelt had taken note.

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Shouldn’t Hillary Clinton Be Banned From Twitter Now? By Matt Taibbi

Russiagate has been a lie from day one and Clinton knew it. Yet, not a Russiagate or Hillary Clinton tweet has been banned from Twitter. From Matt Taibbi at taibbi.substack.com:

Trial testimony reveals Hillary Clinton personally approved serious election misinformation. Is there an anti-Trump exception to content moderation?

Last week, in the trial of former Clinton campaign lawyer Michael Sussmann, prosecutor Andrew DeFilippis asked ex-campaign manager Robby Mook about the decision to share with a reporter a bogus story about Donald Trump and Russia’s Alfa Bank. Mook answered by giving up his onetime boss. “I discussed it with Hillary,” he said, describing his pitch to the candidate: “Hey, you know, we have this, and we want to share it with a reporter… She agreed to that.”

In a country with a functioning media system, this would have been a huge story. Obviously this isn’t Watergate, Hillary Clinton was never president, and Sussmann’s trial doesn’t equate to prosecutions of people like Chuck Colson or Gordon Liddy. But as we’ve slowly been learning for years, a massive fraud was perpetrated on the public with Russiagate, and Mook’s testimony added a substantial piece of the picture, implicating one of the country’s most prominent politicians in one of the more ambitious disinformation campaigns we’ve seen.

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Twenty-Two House Republicans Demand Accountability on Biden’s $40b War Spending, by Glenn Greenwald and Anthony Tobin

Those 22 Republicans had better be careful; demanding accountability can be considered treasonous. From Glenn Greenwald and Anthony Tobin at greenwald.substack.com:

A cohort of Republicans, part of the dissenting vote on Biden’s Ukraine war package, seeks oversight and specifics about the destination of U.S. money and weapons.

Vice President Kamala Harris (L) and Speaker of the House Nancy Pelosi (D-CA), in the House Chamber of the U.S. Capitol on May 17, 2022 in Washington, DC. (Photo by Drew Angerer/Getty Images)

The House of Representatives, on May 10, approved President Biden’s $33 billion package for the war in Ukraine, and then, on its own initiative, added $7 billion on top of it. That brought the new war spending authorization to $40 billion, on top of the $14 billion already spent just 10 weeks into this war, which U.S. officials predict will last years, not months. The House vote in favor was 368-57. All 57 NO votes were from GOP House members. All House Democrats, including the Squad, voted YES.

A similar scene occurred when the Senate, “moving quickly and with little debate,” overwhelmingly approved the same war package. All eleven NO votes were from Senate Republicans. All Senate Democrats, including Sen. Bernie Sanders (I-VT), voted in favor, seemingly in direct contradiction to Sanders’ February 8 op-ed in The Guardian warning of the severe dangers of bipartisan escalation of the war. Efforts by Sen. Rand Paul (R-KY) to delay passage of the bill so that some safeguards and accountability measures could be included regarding where the money was going and for what purposes it would be used were met with scorn, particularly from Paul’s fellow Kentucky GOP Senator, Minority Leader Mitch McConnell, who condemned Paul as an “isolationist.” Following the Senate vote, a jet was used to fly the bill across the world to President Biden in South Korea, where he signed it into law.

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Five Warning Signs the End of Dollar Hegemony Is Near… Here’s What Happens Next, by Nick Giambruno

The dollar may lose its place, giving way to the ultimate money: gold. From Nick Giambruno at internationalman.com:

It’s no secret that China and Russia have been stashing away as much gold as possible for many years.

China is the world’s largest producer and buyer of gold. Russia is number two. Most of that gold finds its way into the Russian and Chinese governments’ treasuries.

Russia has over 2,300 tonnes—or nearly 74 million troy ounces—of gold, one of the largest stashes in the world. Nobody knows the exact amount of gold China has, but most observers believe it is even larger than Russia’s stash.

Russia and China’s gold gives them access to an apolitical neutral form of money with no counterparty risk.

Remember, gold has been mankind’s most enduring form of money for over 2,500 years because of unique characteristics that make it suitable to store and exchange value.

Gold is durable, divisible, consistent, convenient, scarce, and most importantly, the “hardest” of all physical commodities.

In other words, gold is the one physical commodity that is the “hardest to produce” (relative to existing stockpiles) and, therefore, the most resistant to inflation. That’s what gives gold its superior monetary properties.

Russia and China can use their gold to engage in international trade and perhaps back the currencies.

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