Saturday, December 14, 2019

Sustainability Boils Down to Scale

by Charles Hugh Smith, Of Two Minds:

Only small scale systems can sustainably impose “skin in the game”– consequences, accountability and oversight.

Several conversations I had at the recent Peak Prosperity conference in Sonoma, CA sparked an insight into why societies and economies thrive or fail: It All Boils Down to Scale. In a conversation with a Peak Prosperity member who goes by MemeMonkey, MemeMonkey pointed out that social / economic organizations that function well at small scales (i.e. localized) fail when scaled up and centralized (i.e. globalized).

I was immediately struck by the impact of scale on markets (Capitalism) and the state (Socialism), an ideological spectrum I’ve written about recently.

Both markets and governance function well at a small scale because those making the decisions must absorb the consequences of their actions/choices.

The Economy Is Collapsing Under The Unbearable Weight Of Debt

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by Dave Kranzler, Investment Research Dynamics:

“Those who see no Lehman-like episode on the horizon did not see the last one.” – highly regarded writer, George Will, in a National Review article titled, “America Is Overdue For Another Economic Disaster”

Lost in the largely meaningless political Kabuki theatre being staged on Capitol Hill is the fact that the economy is deteriorating. Real average weekly earnings in July declined for production and non-supervisory workers. It was down 0.01% from June to July and down 0.22% from July 2017. For all employees, real average hourly earnings declined 0.20% from June to July but was flat year over year.

A Free Lunch Exists—for Some People

by Gary Christianson, Miles Franklin:

Most of us understand “there’s no free lunch.” Someone must pay for the products and services we use. The acronym is TANSTAAFL, or “There Ain’t No Such Thing As A Free Lunch.” The saying has been around for decades, even prior to Robert Heinlein’s “The Moon is A Harsh Mistress.”

Our morning coffee is an example. Coffee beans were planted, grown, harvested, roasted, transported, and ground. It required energy and currency units to buy beans and heat water to make our coffee. There is no free coffee.

A Labor Of Love With The Golden Jackass

by Turd Ferguson, TF Metals:

Well, here we are…the unofficial end of summer. It’s Labor Day weekend here in the U.S. which means we are in the midst of a 3-day weekend. And you know what that means here at TFMR! Fresh Jackass for everyone!

When Jim and I recorded this back on Thursday, time was somewhat short. So, with this constraint in mind, I asked Jim to focus on two, primary topics:

  1. Since we last spoke in July, what changes have occurred in the world of US dollar hegemony? Is the China-Russia-Saudi connection accelerating the demise of the petrodollar system?
  2. The current US debt and political situation and how this will increasingly impact global markets as traders return en masse on Tuesday.

Just two topics yet over an hour of audio? Yep, that’s how it works and you’re just going to have to listen to the entire thing if you want to unearth all the nuggets of knowledge that The Jackass has left behind for you.

Enjoy and have a great weekend!

TF

Click HERE to listen.

Read More @ TFMetals.com

Keiser Report: A Five Cent Cola and Gold (E1395)

from RT:

In the second half, Max interviews Alasdair Macleod of Goldmoney.com for his thoughts on the gold market as the US Federal Reserve chairman calls for the end of the use of the word ‘unconventional’ when referring to QE and other new monetary policy tools. They discuss whether or not interest rates will go to zero in the US as billionaire investor Stan Druckenmiller believes and what happens, in that case, to Europe where over $10 trillion worth of bonds have a negative yield.

Marin Katusa: This Gold Bull Market Is For Real

by John Rubino, Dollar Collapse:

In his latest report, commodities analyst Marin Katusa lays out the case for a sea change in gold’s relationship to the overall market. Here’s hoping he’s right:

Gold Just Had Its Biggest One Day Influx EVER

On Friday June 21st, the largest gold focused Exchange Traded Fund (GLD) saw over $1.5 billion flood into the ETF.

The inflow that day was over 10% higher than the 2nd largest ever inflow. That happened on July 11, 2008.

DOW / GOLD – A 98% FALL NEXT

by Egon Von Greyerz, Gold Switzerland:

“The winner takes it all, the loser standing small” (an Abba song) is the next phase in the world economy. Sadly there will be few real winners since the world and its people will be the loser in the coming phase of destruction of asset values, implosion of debts as well as a breakdown of the fabric of society.

I do realise that this all sounds very gloomy, and also that bearers of bad news are not popular. But the world is now facing an inevitable breakdown of the biggest debt and asset bubble in history. It is absolutely certain that this will happen, so it is in my mind not a question of if but only when.

Bill’s Latest Interview With Dave Janda

by Dave Janda, JS Mineset:

Nutrition, Wellness, Climate Change, Manipulation of financial markets, New World Order Syndicate, Obama Care, Free Market Health Reform, Putin, The Ukraine, ISIS, Syria, The Constitution, Natural resources, Reserve currency, Corruption, gold, silver, Global Elite, International Banking Cabal, debt, Federal Reserve, Too Big To Fail Banks, Crony Capitalism, Debt Ceiling, Financial implosion, Recession, Economic Depression, Freedom, Liberty

Click HERE for Bill Holter

Read More @ JSMineset.com

Australian Mines Are Running Out of Gold

by Peter Schiff, Schiff Gold:

Australian mines are running out of gold, according to a report by S&P Global Market Intelligence.

Analysts say Australia sits poised above a “production cliff.” The country could slip from the world’s second-largest gold producer to fourth by 2024.

The Australian gold mining industry faces the same problem as South Africa’s – aging mines.

Australia Cracks Down On Bitcoin Exchanges; Shrugs Off Banks’ “Systemic” Money-Laundering Violations

from ZeroHedge:

Australian Government Is Cracking Down On The Nonexistent Bitcoin Money-Laundering Epidemic

Australia’s largest banks can’t seem to go six months without a new scandal. In April, regulators accused Commonwealth Bank, one of the country’s largest financial institutions, of “systemic” money laundering violations, sparking an investigation into the broader banking sector, and the promise of heavy-handing civil penalties.

But instead of pursuing penalties that could lead to lasting reforms, Australia’s regulators are cracking down on bitcoin, creating a new set of guidelines that will make it more difficult for customers to trade on local cryptocurrency exchanges by mandating needless anti-money laundering controls. They’re prioritizing bitcoin over banks even though all relevant data suggest that organized criminal enterprises and terrorist groups overwhelmingly prefer to transact in cash.

According to Bitcoin.com, Australia’s Coalition Government has introduced a bill that would regulate digital currency exchanges, introducing “reforms” that will “strengthen the Anti-Money Laundering and Counter-Terrorism Financing Act and increase the powers of the Australian Transactions and Reporting Analysis Centre (Austrac).”  

Here’s Bitcoin.com with more:

“Among other proposals, the bill will “strengthen Austrac’s investigation and enforcement powers” as well as “close a regulatory gap by bringing digital currency exchange providers under the remit of Austrac,” the announcement reads, adding that:

‘The bill provides a net regulatory relief to industry of $36 million annually, with the digital currency exchange sector being regulated for the first time, while deregulating low-risk industries such as cash-in-transit, which is already subject to state and territory licensing requirements.’”

As Bitcoin.com explains, Australia’s new AML rules resemble regulations adopted by Japan and China over the past 18 months. In China, the crackdown on intraday high frequency trading triggered a decline in trading volume that caused the country to surrender its position as the bitcoin market leader.

“Earlier this year, following investigations by the People’s Bank of China (PBOC), many Chinese bitcoin exchanges halted bitcoin withdrawals to extensively upgrade their systems for the purpose of AML and KYC compliance. Also the European Union has been discussing how to impose rules on bitcoin exchanges as part of its Fourth Anti-Money Laundering Directive.”

Meanwhile, in what looks like an effort to compensate bitcoin traders for the overly stringent new regulations, Australia ended the double taxation treatment of bitcoin in July.

Read More @ ZeroHedge.com

USA RETAIL SALES AND INDUSTRIAL PRODUCTION DOWN HARD LAST MONTH..LIKEWISE FOR CHINA

by Harvey Organ, Harvey Organ Blog:

GOLD UP $1.50 TO $1297.05//SILVER UP 2 CENTS TO $14,81//USA DELAYS TARIFFS ON EU CARS SENDS DOW HIGHER BY 116 POINTS//WAR DRUMS BEATING LOUDER AND LOUDER AS THE USA CARRIER ENTERS THE GULF//TURKEY PUTS A TAX ON FINANCIAL TRANSACTIONS IN A MOVE TO INCREASE DOLLAR RESERVES/HUGE NUMBER OF SWAMP STORIES FOR YOU TONIGHT