Tuesday, November 29, 2022

There is But One Course, SEEK TRUTH & PURSUE IT STEADILY — David Morgan

by SGT, SGT Report:
I’m pleased to welcome David Morgan back to the show. David is fired up in this conversation, not only about the precious metals, but about exposing the rotting stench of corruption within our government and speaking truth.

David says, “We’re getting near the end of this monetary system. The big picture is going to be all electronic digital currency and wiping out the cash market. People that don’t really understand the globalists don’t understand the power that they have or where their playground is, their playground is nation states. If you look at the India cashless system, it is a trial balloon for the globe.”

Time For More Physical Silver… And Zinc?

by SGT, SGT Report:

I’m buying more silver …and I’m following Keith Neumeyer’s lead by also increasing my exposure to zinc at these suppressed levels. The dwindling supply VS. growing demand gulf in silver, gold and zinc has grown too large because mining companies have been decimated by the cartel’s rigging of the prices of gold and silver.

Bogus Fed Research Claim: “Gold Standard Didn’t Really Tame Inflation”

by Mish Shedlock, Mish Talk: The Wall Street Journal reports Gold Standard Didn’t Really Tame Inflation, New Research Says.

The research was by St. Louis Fed economist Fernando Martin. Curiously, his study precisely shows that the gold standard did indeed tame inflation.

Let’s investigate Martin’s bogus claim and his peculiar logic in making it.

In his email to the WSJ, Martin stated: “Most of the price increase in the period starting with World War II is due to two specific episodes.”

WWII was the first episode and the “1970s inflation episode was unambiguously the result of Fed policy blunders.” Supposedly, “the lessons learned from the experience helped central bankers start a multi-decadelong effort to lower inflation to historically low levels.”

I cannot tell if the second set of quotes is the WSJ view or Martin’s.

Martin’s Peculiar Logic

Here is Martin’s peculiar logic in explaining why the gold standard does not work: “You can still have high inflation with a metallic standard” because history shows governments regularly go off such regimes.

Got that? The gold standard won’t tame inflation because … the government won’t stick with it!

This is what constitutes critical research and absurd posting of said research by the Wall Street Journal.

CPI Since US Founding

Policy Error by the Fed

The article cited a “policy error” by the Fed as the cause of the stagflation period.

Actually, the policy error was Nixon closing the gold window on August 15, 1971, ending convertibility of gold for dollars. Our balance of trade soon went haywire, as did the explosion of credit and debt.

Balance of Trade

Read More @ MishTalk.com

Gold A Good Store Of Value – Protect From $217 Trillion Global Debt Bubble

by Mark O’Byrne, Gold Core:
– ‘Mother of all debt bubbles’ keeps gold in focus
– Global debt alert: At all time high of astronomical $217 T
– India imports “phenomenal” 525 tons in first half of 2017
– Record investment demand – ETPs record $245B in H1, 17
– Investors, savers should diversify into “safe haven” gold
– Gold good ‘store of value’ in coming economic contraction

The Globalist One World Currency Will Look A Lot Like Bitcoin

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by Brandon Smith, Alt Market: This week the International Monetary Fund shocked some economic analysts with an announcement that America was “no longer first in the world” as a major economic growth engine. This stinging assertion falls exactly in line with the narrative out of the latest G20 summit; that the U.S. is fading away leaving the door open for countries like Germany and China to join forces and fill the power void. I wrote about this rising relationship between these two nations as well as the ongoing controlled demolition of America’s economy in my article ‘The New World Order Will Begin With Germany And China‘.

I find it interesting that the IMF is once again taking the lead on perpetuating the image of a failing U.S., just as they often push for the concept of a single global currency system to replace the dollar as the world reserve. The most common faulty counter-argument I run into when outlining the globalist agenda to supplant the dollar with the Special Drawing Rights basket system is that “the IMF is a U.S. government controlled organization that would never undermine U.S. authority.” Obviously, the people who make this argument have been thoroughly duped.

The IMF is constantly and actively undermining America’s economic position, because the IMF is NOT an American controlled organization; its loyalty is to globalism as an ideology as well as the international financiers that dominate central banking. America’s supposed “veto power” within the IMF is incidental and meaningless — it has not stopped the IMF from chasing the replacement of the the dollar structure and forming the fiscal ties that stand as the root of what they sometimes call the “global economic reset.”

To illustrate how the IMF narrative supports the globalist narrative, I suggest comparing the 2009 “predictions” of George Soros on China replacing the U.S. as the world’s economic engine to the IMF’s latest analysis on the decline of America.

The IMF cares only about centralizing everything, from currency to trade to governance. If the sacrifice of the old world system (the U.S. dollar) is required to create their new world system, then that is what they will do. If you have read my article ‘The Federal Reserve Is A Saboteur — And The “Experts” Are Oblivious‘, then you understand that the Fed is also perfectly on board with this plan for a global reset. The central bankers, regardless of the nation they happen to reside, stick together and function as agents of larger controlling organisms like the Bank for International Settlements.

The agenda is not really veiled in secrecy, as it has been openly admitted to on numerous occasions by globalist media outlets. Mohamed El-Erian, former CEO of PIMCO, recently praised the concept of using the IMF SDR as a world currency mechanism and as a means to combat “the rise of populism.” However, the most “honest” of these incidences of admission was, of course, the article Get Ready For The Phoenix published in the Rothschild controlled magazine The Economist in 1988; an article which announced the beginning of a new global currency mechanism using the SDR as a bridge starting in 2018.

I have noticed in the past month that there has been a concerted disinformation campaign on the internet attempting to debunk the article from The Economist by stating that it “never really existed” and is merely a product of conspiracy websites. So, I will put that claim to rest right now, permanently, by pointing out that magazine and research archives completely unrelated to “conspiracy theory” have the Phoenix issue on record. It is undeniable — the article was indeed published by The Economist and does in fact exist.

Moving on…

Critics of the notion of a single global monetary framework tend to dismiss any evidence of the plan, usually due to their poor understanding of how currencies rise and fall and a poor understanding of the current monetary climate. They will argue that the SDR basket does not have the capacity to replace the dollar and that there is no other mechanism in the world with the liquidity to do so. In other words, “Where is this global currency going to come from?”

The fact is, it already exists, and it is right under their noses.

When The Economist wrote about a global currency being launched in 2018, they perhaps did not have a precise inkling back then on how it would come about. They do mention clearly the strategy of using the IMF’s SDR as a stepping stone to that global currency, calling it the “Phoenix,” as an example. They also mention the decline of the U.S. as being necessary in the wake of this shift into complete centralization.

These two events are taking place right now, with the American economy in steady and ever steeper destabilization, as well as the rise of the SDR basket as a “stopgap” for nations seeking to decouple from the dollar as the world reserve. But what about the currency itself? The SDR might be the framework that will reign in various nations under one nefarious economic umbrella, allowing the IMF to dictate currency exchange rates at will until their one world system can be established, but what will the average person ultimately be using as a unit of trade and how will the globalists maintain monetary subjugation over the public?

Cryptocurrency and the creation of blockchain technology is the answer.

Read More @ Alt-Market.com

STOP buying from AMAZON!

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from TheHealthRanger:

The Health Ranger explains why Amazon.com is a threat to your survival, sustainability and local community.

Stocks and Precious Metals Charts – Nocturne

from Jesse’s Café Américain:

“A horse walks into a bar, the bartender says, ‘Why the long face?'”

And so we had both an FOMC and a precious metals option expiration on the Comex today.

Let’s see if we get any post-FOMC, post-expiration shenanigans for the rest of the week.    Once gold breaks out it could be tough to stop, although I am not liking the small advances it has been making on such steady dollar weakness.

Don’t Fear The Fork: The Future of Bitcoin & Steem

by Jeff Berwick, The Dollar Vigilante:
Last week, I did an interview with Josh Sigurdson of World Alternative Media to talk about the latest news in the cryptocurrency arena and particularly about the future of bitcoin and steem.

There has been plenty of talk about bitcoin being in “a bubble” especially by the likes of Peter Schiff, so I made sure to point out that the real bubbles are mainly caused by central banks who expand and contract the money supply.

Josh made a good point about the volatility and large price swings which take place in the crypto markets and how they scare a lot of people because this is the first time many of them are experiencing what it’s like to trade in a truly free market.

The Two Charts That Dictate the Future of the Economy

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by Charles Hugh Smith, Of Two Minds:

If you study these charts closely, you can only conclude that the US economy is doomed to secular stagnation and never-ending recession.

The stock market, bond yields and statistical measures of the economy can be gamed, manipulated and massaged by authorities, but the real economy cannot. This is espcially true for the core drivers of the economy, real (adjusted for inflation) household income and real disposable household income, i.e. the real income remaining after debt service (interest and principal), rent, healthcare co-payments and insurance and other essential living expenses.

If you want to predict the future of the U.S. economy, look at real household income. If real income is stagnant or declining, households cannot afford to take on more debt or pay for additional consumption.

The Masters of the Economy have replaced the income lost to inflation and economic stagnation with debt for the past 17 years. They’ve managed to do so by lowering interest rates (and thus lowering interest payments), enabling households to borrow more (and thus buy more) with the same monthly debt payments.

But this financial shuck and jive eventually runs out of rope: eventually, the rising cost of living soaks up so much of the household income that the household can not legitimately afford additional debt, even at near-zero interest rates.

For this reason, real household income will dictate the future of the economy. If household incomes continue stagnating or declining, widespread advances in prosperity are impossible.

The Masters of the Economy have played another financial game to mask the erosion of real income: inflating speculative asset bubbles to boost the illusion of wealth, a form of financial sorcery called the wealth effect: households that see their stock and bond funds swelling by 50{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} to 100{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in a few years are emboldened to believe this phantom “wealth” is permanent and thus can be freely spent in the present.

The problem with this financial shuck and jive is only the top 5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} own enough assets to experience the speculative high of asset bubbles. This is one reason why the top 5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} have pulled away from the bottom 95{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}, a trend that is blindingly obvious in this chart of Real Average Household Income by Quintile and the Top 5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} from the always-insightful Doug Short (U.S. Household Incomes: A 49-Year Perspective):

The gains since 1992 reflect the national distribution of wealth very closely: those with minimal financial wealth (the bottom 80{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}) experienced minimal gains in real income.

Those with some financial wealth (the top 20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}) enjoyed substantial gains, but the truly outsized gains were reserved for the top 5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}, the class that owns the majority of the nation’s wealth.

Read More @ OfTwoMinds.com

Risk has been Abolished, According to Institutional Investors

by Wolf Richter, Wolf Street:

Why? Wall Street sells “more financial products and generates more profits when investors are bullish.”

“Covenant-lite” loans – risky instruments issued by junk-rated borrowers, with few protections for creditors – set an all-time record at the end of the second quarter.

They’re part of the risky universe of “leveraged loans,” and they’re secured by some collateral, but they don’t come with the protections and restrictive maintenance requirements in their covenants that traditional leveraged loans offer creditors.

Even leveraged loans with more restrictive covenants are so risky that banks just arrange them and then try to off-load them to institutional investors, such as pension funds or loan funds. Or they slice and dice them and package them into Collateralized Loan Obligations (CLOs) and sell them to institutional investors. Leveraged loans trade like securities. But the SEC, which regulates securities, considers them loans and doesn’t regulate them. No one regulates them.

The amounts are not trivial. Total outstanding leveraged loans in the US reached nearly $1 trillion ($943 billion) at the end of the second quarter, according to S&P Capital IQ LCD. And covenant lite loans made up 72.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of them, the highest proportion ever.

That’s up from 69{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} at the end of the fourth quarter. This chart shows the surge in the proportion of covenant-lite loans to total leveraged loans over the past three years, from about 55{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} at the end of Q2 in 2014 to 72.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} at the end of Q2 2017:

So what’s the big deal? When there is no default, there is no difference. And since there is apparently no longer any risk of default, it’s, well, no big deal. That’s what investors are thinking.

But when defaults do occur – as they have a nasty tendency to do – or before they even occur, investors have less recourse and fewer protections, and losses can be much higher.

The Fed and the OCC have been jawboning banks into backing off with leveraged loans for three years. Banks can get stuck with leveraged loans. They did during the Financial Crisis, which helped sink the banks. That’s when investors found out that leveraged loans are not exactly, as they say, as good as gold. But back then, the proportion of covenant lite loans was much smaller. So next time, the ride will be wilder.

Why do investors do this? They’re chasing yield, little else matters, and companies take advantage of that. LCD about the covenant lite loans:

For obvious reasons, they are more attractive to issuers, and have gained steady acceptance from loan arrangers [banks] and investors, particularly since 2012, when the US leveraged loan market found a higher gear after the financial crisis of 2007-08.

Then again, as naysayers are fond of pointing out, they’ve never comprised this much of the market before, so they will be under scrutiny once the current credit cycle turns.

Read More @ WolfStreet.com