Tuesday, November 29, 2022

Keiser Report: Credit Freeze (E1128)

from RT:

 

Max interviews Charles ‘Chuck’ Johnson of GotNews.com about how his operation managed to take down the billions-of-dollars establishment candidates and media empires in this latest US election series. He also reveals who his deep political sources claim is the source of funding for the Steele dossier.

It’s Time to Stop Pretending ‘Free Speech’ Rallies Are Actually About Free Speech

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by Justin King, The Anti Media:

As white supremacists of all sorts rebrand, they still cling to the concept of “free speech rallies”. Do you notice how they don’t invite groups opposed to them to speak? Do you notice all of the speakers are of the alt-right or alt-light variety? Do you notice the blatant racism? The rallies aren’t about free speech. They never were. They’re about getting stupid people to defend them and to side with them based on a buzzword. They wouldn’t get very far calling the “Unite the Right” “free speech” rally a “KKK-Nazi-White Nationalist conference” now would they?

Like all good propagandists, they term themselves something that is ridiculous to oppose. Look at the terms for the two main sides of the abortion debate. You aren’t really going to call yourself “anti-choice” or “anti-life”, are you? It’s a word game typically used to trick those who are of lower intelligence. Free Speech is a lofty ideal, so this time they’re targeting college-educated people. Nobody wants to stand against free speech.

Free speech is one of the most important facets of a free society. A person should be able to stand in the open and state their opinion, no matter how offensive it is. While we may disagree, they should be able to stand in a crowd and sing the praises of Hitler.

These groups aren’t really engaging in free speech though, that’s not the primary objective anyway. The real goal is to unite and organize various groups who openly advocate ethnic cleansing or a terrorist campaign under “leaderless resistance“. These aren’t debates or even forums for the expression of controversial ideas. They’re a front to organize for ethnic cleansing.

The websites of the groups openly proclaim their goals and even as they organize to gain the political power to make the United States a white “ethnostate”, many Americans refuse to believe it. It’s a story as old as time itself. Instead, liberals all over the country are patting themselves on the back for being tolerant and supporting free speech. Supporting the organizational efforts of those wanting to ethnically cleanse the United States doesn’t make you principled. It makes you an accomplice.

Throughout history, there were always groups of scared little boys who saw skin color or language or religion as a good enough reason to use violence. They were always small in number at first. They then tricked the less intelligent of those around them by pretending to defend them against some imagined threat, then they used the academic language of the time to silence dissent by framing it as unpatriotic, then they took power, and people did nothing. See, without the “good German” there never could have been a Hitler. Without the logistical efforts that were allowed to happen, there never could have been a Rwandan genocide.

Throughout history, it has always been the person who didn’t want to stand in solidarity with the minority who allowed the greatest crimes. You may safely stare in the mirror at your white skin and say “it’s just speech”. That’s a big bet to make with someone else’s life. Let’s be honest, the Richard Spencers of the world aren’t coming for people who look like you, are they? You’re not principled. You’re apathetic, or worse, you’re cowardly. For some reason, I doubt you would be so calm if NAMBLA decided to hold meetings next to the playground your kid visits, especially if the group was proclaiming they plan on kidnapping children from playgrounds. It’s just speech, right? Or if ISIS held meetings near you talking about beheading people who look like you? You’re not a free speech advocate. You’re not principled. You’re a person who has chosen to not get involved. That’s fine, but don’t post online about how you support the freedom of speech when you aren’t the one at risk if you’re wrong about their intentions. It doesn’t make you moral, it makes you a fool.

If history has shown us one thing, it’s that when a small group of people say “we’re going to ethnically cleanse this country if we get power”, you need believe them. Mass graves are full of those who mistook efforts to organize for genocide as mere speech.

Read More @ TheAntiMedia.com

NORTH KOREA TO THE USA: “YOU HAVE DECLARED WAR ON US” AND “WE WILL SHOOT DOWN YOUR WARPLANES”

by Harvey Organ, Harvey Organ Blog:

RUSSIA STATES THAT THE USA KILLED A BIG TIME GENERAL ON THE WESTERN SIDE OF DEIR-EZ-ZOR: IRAQI KURDISTAN HELD ITS INDEPENDENCE VOTE TODAY AND TURKEY, IRAQ AND IRAN READY TO ATTACK/CATALONIA LOOKS DEFIANT TO HOLD ITS REFERENDUM VOTE ON OCT 1/2017/CONDITIONS IN PUERTO RICO DIRE/GOLD UP $14.00 AND SILVER IS UP 16 CENTS

GOLD: $1308.45 UP   $14.00

Silver: $17.11  UP 16 CENT(S)

Closing access prices:

Gold $1311.25

silver: $17.17

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1299.46 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1292.68

PREMIUM FIRST FIX:  $6.78 (premiums getting larger)

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

SECOND SHANGHAI GOLD FIX: $1298.02

NY GOLD PRICE AT THE EXACT SAME TIME: $1293.70

Premium of Shanghai 2nd fix/NY:$4.32  

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

LONDON FIRST GOLD FIX:  5:30 am est  $1295.50

NY PRICING AT THE EXACT SAME TIME: $1293.19 ????

LONDON SECOND GOLD FIX  10 AM: $1293.30

NY PRICING AT THE EXACT SAME TIME. 1293.95

For comex gold:

SEPTEMBER/

NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 0 NOTICE(S) FOR  NIL  OZ.

TOTAL NOTICES SO FAR: 83 FOR 8300 OZ  (0.2581 TONNES)

For silver:

SEPTEMBER

 

 67 NOTICES FILED TODAY FOR

 

650,000  OZ/

Total number of notices filed so far this month: 6,303 for 31,515,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

end

 We had 4 major events today to spark gold

1. North Korea stated that the USA has basically declared war on her and that North Korea will shoot down any USA war planes

2. Kurdistan is holding a referendum on independence today and already Iran, Iraq and  Turkey stated that they are ready to mount an offensive against them

3. trouble in Catalonia as the government of Spain is trying to stop the vote on independence on Oct 1

4. A Russian General was killed by rocket fire in Syria and this fire supposedly came from the USA..

all of the above makes people seek gold as a safe haven..

Let us have a look at the data for today

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In silver, the total open interest FELL BY 1321 contracts from  189,605 DOWN TO 188,644 WITH THE TINY FALL IN PRICE THAT SILVER UNDERTOOK IN FRIDAY’S TRADING (DOWN 5 CENTS ). ON FRIDAY, OUR BANKERS TOOK A LITTLE SIESTA FROM THE PREVIOUS 9 DAYS OF TORMENT.  A TINY AMOUNT OF SILVER LONGS EXITED THE CASINO BUT MOST OF OUR SILVER PLAYERS ARE RESOLUTE WILLING TO TAKE ON OUR BANKERS.  REMEMBER THAT WE HAVE NOW ENTERED OPTIONS EXPIRY WEEK SO EXPECT CONTINUAL WHACKING OF OUR PRECIOUS METALS. 

RESULT: A SMALL FALL IN OI COMEX  WITH THE 5 CENT PRICE FALL.  A SMALL FRACTION OF LONGS LEFT BUT MOST OF OUR SILVER PLAYERS ARE RESOLUTE IN THEIR DETERMINATION TO TAKE ON THE BANKERS.

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.943 BILLION TO BE EXACT or 134{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 67 NOTICE(S) FOR 335,000OZ OF SILVER

In gold, the open interest FELL BY A CONSIDERABLE 8,896 CONTRACTS DESPITE THE  RISE  in price of gold ($1.70 GAIN WITH FRIDAY’S COMEX TRADING.  The new OI for the gold complex rests at 552,379. WE ARE AGAIN EXPERIENCING THE SAME PHENOMENON AS WE ENTER ‘FIRST DAY DELIVERIES WEEK’ IN AN ACTIVE DELIVERY MONTH, I.E. THE ISSUANCE OF A HUGE NUMBER OF EFP’S WHICH ENTITLE THE HOLDER TO THE FIAT PROFIT PLUS A FUTURE DELIVERABLE PRODUCT ON ANOTHER EXCHANGE PROBABLY A LONDON BASED FORWARD. IT SEEMS THAT OVER 8900 EFP CONTRACTS WERE ISSUED. THESE ARE ‘EMERGENCY’ CONTRACTS WHERE THE SHORT HOLDERS DO NOT HAVE PHYSICAL TO DELIVER UPON A LONG AND SO THEY OFF- LOAD IT TO A PHYSICAL ZONE LIKE LONDON. WE ARE NOW ENTERING OPTIONS EXPIRY WEEK SO EXPECT THE PRICES OF BOTH GOLD AND SILVER TO BE SUBDUED. IT FINISHES THIS COMING FRIDAY MORNING .

 

Result: A HUGE DECREASE IN OI WITH THE  RISE IN PRICE IN GOLD ($1.70). DEMAND FOR GOLD STILL HIGH BUT LONGS TRANSFERRED TO ANOTHER PHYSICAL EXCHANGE LIKE LONDON. 

we had: 0 notice(s) filed upon for NIL oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:

Tonight , we got this huge news: we had another big change in gold inventory:

a huge deposit of 3.84 tonnes.

Inventory rests tonight: 856.08 tonnes. Whenever GLD inventory advances so does our gold price.

SLV

Today: a huge change in inventory: a deposit of 1.842 million oz/

INVENTORY RESTS AT 326.757 MILLION OZ

 

end

.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver FELL BY  1321 contracts from 189,865  DOWN TO 188,644 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE FRIDAY’S 5 CENT LOSS IN TRADING. WE LOST A TINY FRACTION OF LONGS BUT STILL THE MAJORITY OF SILVER LONGS ARE RESOLUTE WILLING TO TAKE ON THE BANKERS. WE HAVE NOW ENTERED OPTION’S EXPIRY WEEK

RESULT:  A SMALL SIZED DROP IN SILVER OI  AT THE COMEX WITH THE TINY LOSS IN PRICE OF 5 CENTS IN FRIDAY’S TRADING. 

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

i)Late SUNDAY night/MONDAY morning: Shanghai closed DOWN 10.98 POINTS OR 0.33{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}   / /Hang Sang CLOSED DOWN 380.18 POINTS OR 1.36{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/ The Nikkei closed UP 101.13 POINTS OR 0.50{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.02{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed WELL  DOWN at 6.6230/Oil UP to 50.92 dollars per barrel for WTI and 57.55 for Brent. Stocks in Europe OPENED MOSTLY RED . Offshore yuan trades  6.6155 yuan to the dollar vs 6.6230 for onshore yuan. NOW THE OFFSHORE MOVED MUCH STRONGER  TO THE ONSHORE YUAN/ ONSHORE YUAN HUGELY WEAKER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS WEAKER TO THE DOLLAR AND THIS IS COUPLED WITH THE STRONGER  DOLLAR. CHINA IS NOT VERY HAPPY TODAY

Read More @ HarveyOrganBlog.com

Food Truck Giving Free Food to Hurricane Workers, Kicked Out of Town for Not Having a Permit

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by Matt Agorist, The Free Thought Project:

A food truck, who was offering free food to utility workers, was kicked out of town for not having a permit. But he couldn’t get a permit, because city hall was closed.

Green Cove Springs, FL — After Irma devastated Florida, most restaurants and stores were shut down in certain areas. Green Cove Springs was one of those places. So, when Jack Roundtree, owner of the Triple J BBQ food truck, arrived in town, not only was he welcomed with open arms — he was desperately needed. As he sold BBQ to paying customers, Roundtree used the extra money to feed utility workers for free for all their hard work. However, once officials saw a man who’d dare sell food in their town without paying them first, police were called in to make quick work of this entrepreneurial good samaritan.

Shut down and get out of town—is what Roundtree was told by local authorities for both providing charity and a much-needed product and service. Why was Roundtree told to get out of town, you ask? Well, he hadn’t paid the local government for the ‘privilege’ to sell food to those in need inside Green Cove Springs.

Roundtree is no outlaw. In fact, Green Cove Springs actually encouraged him to sell his BBQ during their monthly Saturday-in-the-Park event before the hurricane. But not this time.

Even if he would’ve gone to city hall to buy a permit to sell during the Irma aftermath, however, he couldn’t—they were closed.

According to Clay Today:

“It was interesting to learn that Roundtree and his truck were encouraged to serve customers during Green Cove’s monthly Saturday-in-the-Park event without a permit, but during Irma’s aftermath, not so much.

“Had Roundtree decided to press his case at City Hall, he would have been greeted with a sign that read: ‘Due to Hurricane Irma, City Hall offices and services will re-open on Thursday, Sept. 14, 2017.’”

So, instead of allowing Roundtree to offer free food to utility workers and sell food to people during their time of need, and just get a permit after government employees decided to return to work—they just kicked him out of town.

Here’s how one Green Cove Spring witness, Bettie Tune, described the events at Rich’s on her Facebook page, as reported by Clay Today:

Read More @ TheFreeThoughtProject.com

U.S. President Donald Trump Quietly Signs Law To Allow Warrantless Searches In Parts Of VA, DC And MD

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by Aaron Kesel, Activist Post:

As former White House chief of staff and current Chicago Mayor Rahm Emanuel has said: “You never let a serious crisis go to waste.” While everyone was worried about the hurricanes, U.S. President Donald Trump signed away the Fourth Amendment buried in a new bill. He set a precedent by empowering the police state to allow warrantless searches in parts of VA, MD and D.C. near the Metro train system.

The government can now openly enter and search private property without a warrant in parts of Virginia, Maryland and D.C.

The House Joint Resolution 76 was signed into law on Tuesday, Aug. 22, by President Trump. The text is rather boring, starting off with: “Granting the consent and approval of Congress for the Commonwealth of Virginia, the State of Maryland, and the District of Columbia to enter into a compact relating to the establishment of the Washington Metrorail Safety Commission.”

CNN explained, “This law lets Virginia, Maryland and the District of Columbia form a new panel called the Washington Metrorail Safety Commission to oversee the safety of the D.C.-area public transportation Metro train system.”

The new safety commission will take over from the current Federal Transit Agency (FTA), which has been in charge of safety oversight for the Washington Metropolitan Area Interstate Compact (WMATA) since October 2015.

“We’ll set this up and get the FTA out of Metro. They are happy to get out, and we’re happy to get them out,” Metro Board of Directors Chair Jack Evans told Bloomberg BNA. “I’m glad we got this thing. If nothing else, we’ll get our money.”

Read More @ ActivistPost.com

Thoughts on Trump, Fake Patriotism and ‘Taking a Knee’

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by Michael Krieger, Liberty Blitzkrieg:

Americans do not and should not worship idols. We do not and should not worship the flag. As a nation we stand in respect for the national anthem and stand in respect for the flag not simply because we were born here or because it’s our flag. We stand in respect because the flag represents a specific set of values and principles.

– From the recently published piece: I Understand Why They Knelt

I almost always disagree with mainstream critiques of Trump, which is why I tend to stay away from commenting on the endless battles between the destructive and dangerous status quo and the dangerous and destructive Donald Trump. Critiques of Trump from status quo types and their supporters are almost always hysterical and superficial, based upon the false premise that everything was going just fine until Trump was elected.

I believe that sort of myth making is as dangerous as Trump himself, and I’ll never support a preposterous “resistance” strategy which elevates Wall Street CEOs, the CIA, neo-cons, neo-liberals and all sorts of other destructive elements of our society into saviors. These shallow resistance types focus on the symptom of the disease versus the disease itself, and therefore can never offer a constructive path to a batter future. That said, in this instance I completely agree with the view that Trump’s authoritarian tweets with regard to NFL player protests in recent days are extremely dangerous and encourage his supporters to rally around a debased and superficial fake patriotism based on symbolism as opposed to ideals and values.

First, let’s start with a little history. Former 49ers quarterback Colin Kaepernick started his protest in August 2016 when Barack Obama was still President and the mainstream narrative assumed Hillary Clinton would defeat Donald Trump handily later that year. He was clear about the intentions behind his protest from the beginning, which related to his disgust with unaccountable police brutality against people of color. Here’s some of what he had to say when asked about his actions a year ago:

“I’m going to continue to stand with the people that are being oppressed. To me, this is something that has to change. When there’s significant change and I feel that flag represents what it’s supposed to represent, and this country is representing people the way that it’s supposed to, I’ll stand.”

“This stand wasn’t for me. This is because I’m seeing things happen to people that don’t have a voice, people that don’t have a platform to talk and have their voices heard, and effect change. So I’m in the position where I can do that and I’m going to do that for people that can’t.”

“It’s something that can unify this team. It’s something that can unify this country. If we have these real conversations that are uncomfortable for a lot of people. If we have these conversations, there’s a better understanding of where both sides are coming from.”

“I have great respect for the men and women that have fought for this country. I have family, I have friends that have gone and fought for this country. And they fight for freedom, they fight for the people, they fight for liberty and justice, for everyone. That’s not happening. People are dying in vain because this country isn’t holding their end of the bargain up, as far as giving freedom and justice, liberty to everybody. That’s something that’s not happening. I’ve seen videos, I’ve seen circumstances where men and women that have been in the military have come back and been treated unjustly by the country they fought have for, and have been murdered by the country they fought for, on our land. That’s not right.”

Kaepernick has suffered the consequences of his actions, as he remains unsigned by any NFL team following last season’s protest and the controversy that followed. This is what tends to happen when someone sticks their neck out to make a point and enough people, especially extremely wealthy people like the owners of NFL teams, don’t like it. As anyone who’s ever held a job knows, if you act in a way that the boss doesn’t like and you do it consistently enough, you’ll get fired. This is simply how power dynamics work.

I’m sure Kaepernick knew this going in, yet he stuck to his principles irrespective of the likely negative consequences that would follow. Whether you agree or not with how he decided to make his point, I think it’s disingenuous to argue he wasn’t coming from a genuine place. If he had started this protest after Trump’s election, I would have seen it as superficial and fame-whoring, but that’s not what happened. He started it while the first black President was in office. Like it or not, the guy was clearly coming from a genuine place and sacrificed a lot to stand his ground.

Which brings me to Trump’s commentary on the subject. Much can be revealed about his nature and his plans for the future by analyzing some of what he said. First, here’s what got the whole thing going. During a Friday rally in Alabama, Trump said the following:

“Wouldn’t you love to see one of these NFL owners, when somebody disrespects our flag, to say, ‘Get that son of a bitch off the field right now. He is fired.”

In subsequent days, he added to that angry, authoritarian rant with a stream of related tweets, some of which are highlighted below:

These tweets are interesting. He conflates wealth and success with a requirement to be submissive. This is an implied threat that if you want to be successful in America, you’d better learn to stay in line.

Read More @ LibertyBlitzkrieg.com

A Constitutional Anniversary to Forget

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by Antonius Aquinas, via Acting Man:

Misguided Enthusiasm

While not a jubilee year, last week marked the 230th anniversary of the US Constitution. Naturally, most of its devotees enthusiastically praised the document which by now is seen on a par with Holy Writ itself.

The constitutional convention in Philadelphia, anno 1787. Things have gone downhill ever since. Many – though not all – of those taking part in the convention were members of the moneyed elite, the land speculators who had instigated the war of independence when King George foolishly tried to keep them from expanding their speculative activities to the West with his ill-conceived edict of 1763. Having won the war, they were no longer constrained by the edict, but they couldn’t leave well enough alone… sitting on their laurels apparently just wasn’t their style. The constitution was the next logical step – a successful attempt to install a centralized Merchant State after the British model, only sans King George. As Albert Jay Nock points out in Our Enemy, the State: “The great majority of them, possibly as many as four-fifths, were public creditors; one-third were land-speculators; some were moneylenders; one-fifth were industrialists, traders, shippers; and many of them were lawyers.” Not exactly the first thing they tell pupils in public schools about, we would guess. Nock also reminds us, ibid: “Wherever economic exploitation has been for any reason either impracticable or unprofitable, the State has never come into existence; government has existed, but the State, never”. [PT]

An editorial from Investor’s Business Daily provides an example of such hagiography:

The Constitution’s beauty is that it not only delineates our rights as Americans, but expressly limits and defines government’s ability to interfere in our private lives. This equipoise between citizens’ duties, responsibilities and rights makes it the defining document or our nation’s glorious freedom.

But America is wonderful largely because of the Constitution and

those who framed it…

What we have is too precious to squander…*

 

Most of the piece laments the widespread ignorance of its sacred contents among the denizens which it rules over and admonishes the unlearned “to bone up a bit on your constitutional heritage…”.

The editorial fails, as do most others on the Right, to understand that it is not a lack of knowledge of the Constitution’s contents among the populace which lies at the heart of America’s social, economic, and political problems, but the very document itself.

 

A Coup d’État

One of the main reasons why the Constitution continues to be so widely venerated is the deliberate distortion of history that its “founders” promoted and that generations of its sycophants have continued to perpetuate to this very day.

The official narrative runs that the Constitution was enacted because of widespread popular support for a change to the supposed inadequacies and deficiencies of the Articles of Confederation.

10 years earlier, in 187, the Articles of Confederation were signed. When Hamilton called for a constitutional convention, it was done on the understanding that the articles would be amended here and there, which wasn’t considered a big deal. Instead they ended in the waste basket, with a new constitution drawn up de novo – and that was it for state sovereignty. The centralization of the political means was the goal, and who can look at the US today and not admit it has become glaringly obvious? [PT]

This is a myth. Instead, the Constitution was a coup, a deliberate scheme by the leading political and mercantile classes to set up a powerful central government where ultimate authority rested in the national state.

The use of the term “federal” to describe what was created in Philadelphia in those fateful days was a ruse much like the banksters and politicos used “Federal Reserve” to describe the central bank created in 1913.

It was neither “federal” – a decentralized monetary order – nor a “reserve” of gold, but a monetary institution which could create money out of thin air and eventually eliminate the gold standard.

Centralized Power

It was a similar political maneuver 230 years ago as a new American national state was established and touted as a decentralized form of government where power was evenly divided between state and national levels and between the different branches of the government itself – “separation of powers.”

In actuality, however, the “federal system” was the elevation of central power at the expense of local authority which had previously existed. Section VI of the Constitution says it all:

The Constitution and the laws of the United States… shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any state to the contrary notwithstanding.

Read More @ Acting-Man.com

You Can Only Choose One: Cheap Oil or a Weak Dollar

by Charles Hugh Smith, Of Two Minds:

When the price of oil rises to the point of pain, just remember the handy-dandy discount mechanism: a much stronger US dollar.

Glance at this chart of the trade-weighted U.S. dollar, and note the swing highs and lows in the price of oil per barrel around each peak and trough. You can look up historical inflation-adjusted prices of oil in USD on this handy chart: Crude Oil Prices – 70 Year Historical Chart (macrotrends.net)

The correlation isn’t perfect, of course. Oil was relatively cheap between 1986 and 2003, due to a relative abundance of supply as Saudi Arabia and new fields ramped up production, with two periods of extreme price action: a brief spike higher in 1990 preceding the First Gulf War, and a collapse to $17 in the 1998 Asian Contagion financial crisis.

Geopolitical crises, wars and supply shocks will move oil prices regardless of the value of the USD. That said, it’s clear that absent such shocks, there is a strong correlation between a stronger USD and lower oil prices (in USD of course) and a weaker dollar and higher oil prices.

The reason why is straightforward: if the dollar gains purchasing power against other currencies, it buys more oil for each dollar.

Conversely, when the USD weakens, its purchasing power declines and it takes more USD to buy an imported barrel of oil.

(Note that the price of domestically produced oil is largely set on the global marketplace. West Texas crude oil may be a few dollars less per barrel than Brent crude oil, but if the global price skyrockets, so does the price of US-produced crude.)

Since oil and gas are the essential resources of the industrial economy, the price paid by consumers and commercial users matter.

The one way the US can get an across-the-board global discount on oil is to push the purchasing power of the USD higher. That is an enormous benefit that few commentators ever mention. Instead, pundits talk about the benefits of a weaker dollar, which boil down to lower priced exports.

Which matters most to households and enterprises? A tiny blip higher in exports (a relatively modest slice of the U.S. economy) or lower energy prices at the pump?

If a recession were to pressure household budgets, the one sure way to lower household spending on oil/gasoline would be to strengthen the USD.

There are two basic mechanisms that strengthen the USD: raise interest rates, so global capital flows to USD-denominated debt to earn the higher yield, or a global financial crisis which causes global capital to seek the relative safe haven of the USD.

In a global crisis, liquidity and credit will dry up, and all those non-US debtors holding the $11 trillion in USD-denominated debt I mentioned on Friday will be scrambling for USD to service their debts. This will also increase demand for USD, pushing the USD higher.

The Federal Reserve insists that yields must remain near-zero or the economy will collapse. Americans paying 15{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} to 23{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} interest on their credit cards haven’t seen any benefit from near-zero rates, nor have student-loan debtors. The real beneficiaries of low yields are financiers, banks and corporations which borrow immense sums for next to nothing. (Try finding a credit card with a 1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} or 2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} interest rate.)

At some point, the price of oil might start mattering to households and businesses. Note that the discoveries of oil are now a thin slice of annual consumption. As the cheap oil is depleted, what’s left is the costlier-to-extract stuff.

Read More @ OfTwoMinds.com

Four Words that Ended the Nixon Shock: Oil-Yuan-Gold Triad

from Rogue Money:

“That PetroDollar deal held until last week…. China has now assumed the role that the U.S. abandoned in 1971.”

— Jim Rickards on the Keiser Report, September 2017

It was Pepe Escobar who gave us four simple words to explain the great monetary earthquake that took place this past month of September 2017: the Oil/Yuan/Gold Triad. Lone prophets in the wilderness like Jim Willie, London Paul, and Rob Kirby have been warning us for years that it was coming. And then it happened. In what will surely induce a fit of hysterical irony among you baby-boomers who remember the historic visit that President Nixon made to China in 1972, only six months after taking America off the gold standard, China has effectively picked up where Nixon left off. President Xi now stands on the threshold of finally reversing the “temporary” loss of the Dollar Gold standard back in 1971.

Yes, on that summer’s evening of August 15, 1971, television news broke into America’s living rooms on a Sunday and abruptly announced that, to protect the Dollar’s stability, the nation would now “temporarily” abandon its gold standard, a move that was in total violation of the Bretton Woods agreement. But, alas, we must defend the dollar against the “international money speculators” who create crises on which they thrive. Well, Nixon was certainly right about that. Sadly, the American public was not informed at that moment of how those “international money speculators” were really just the modern incarnation of that ancient Babylonian priesthood that has been moving the football down the field for a couple of thousand years.

Pepe Escobar didn’t mention the “Nixon Shock” within the context of his discussion of the impending Yuan-denominated Shanghai oil benchmark coming in the next few months or even weeks. Neither did the Nikkei Asian Review who appears to be the source of the advent of the new oil contract. 

But Jim Rickards was quick to appreciate the historical context of what is really going on here. The video clip below from Keiser Report Episode #1125 is set to begin at the 17-minute mark. Rickards reminds us of that moment in time back in 1974 when Kissinger went to the Saudis and laid out the new Rockefeller plan whereby Saudi would sell its oil only in dollars and thus the U.S. currency switched its backing from gold to oil. Rickards concludes:

Read More @ RogueMoney.net

Sexting with Minor: Weiner Gets 21 Months in Prison

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by Tim Brown, Freedom Outpost:

Former Representative Anthony Weiner seems to have finished himself off in his latest adulterous escapade.

The former candidate for mayor was sentenced to 21 months in prison for sexting a minor.

That’s not all, his crimes have ruined his marriage and added to the demise of his political career, which the last part was not necessarily a bad thing.

U.S. District Judge Denise L. Cote issued the sentence in federal court in New York and stated, “This is a serious crime that deserves serious punishment.”

That’s all true, but is putting him away in federal prison a just punishment?  I mean the people of the united States are going to be forced to pay taxes to feed, clothe and house this criminal?  Is that just?

At least the courts are willing to call what he was engaged in a crime, and that’s a good thing.

The Washington Examiner reports:

Anthony Weiner was sentenced to 21 months in prison on Monday for sexting with a 15-year-old high school student.

Weiner, a former Democratic congressman from New York, was sentenced by a federal judge in Manhatten. The judge also sentenced Weiner to three years of supervised release after he serves in prison, and fined him $10,000.

He must surrender to prison by Nov. 6.

According to the Associated Press, Weiner held his head in his hands and cried as the judge delivered the sentence.

While Weiner claims that his behavior is a “disease,” he also says it’s not an “excuse.”

First, it’s not a disease at all.  He has submitted to sin and sin entangles.  The only real help for Weiner is in the Lord Jesus Christ who said that is He sets a man free, that man is free indeed.

Second, it is a backhanded excuse.  Otherwise, he would just say it was his behavior.

“I was a very sick man for a very long time,” Weiner said before sentencing.  “I was the adult … if I had done the right thing, I would not be standing before you today.”

“If I fail, I know what will happen,” Weiner said, pleading for probation to continue “treatment,” including sessions with Sex Addicts Anonymous. “But with God’s grace, I will not.”

Read More @ FreedomOutpost.com

Is Bitcoin a Commodity? – Keith Weiner

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by Keith Weiner, Sprott Money:

Carl Menger, father of the Austrian School of Economics, showed the world that money is not the product of the state. He did not mean that government is intrinsically incapable of decreeing something to be money while other groups, organized for different purposes, could do it. He described how money emerges as the commodity which is most marketable (“absatzfähigkeit” in German).

He discusses factors that limit marketability including to whom you can sell a particular good, where you can sell it, when you can sell it, etc. The most marketable is the one anyone can buy or sell anywhere at any time, with no limitations on quantity.

Picture the problems with fresh oysters, crude oil, winter woolens, and iron ingots. Oysters spoil very quickly, crude oil has to be stored in a specialized tank, no one wants wool mittens in the summer, and iron is heavy. Only a dealer in seafood could buy oysters. Oil can only be bought up to the buyer’s storage capacity. No clothing retailer wants to buy merchandise that will sit in a warehouse for a year until next winter. Moving iron any great distance is expensive.

At one time, cattle was money. A big cause of this is that cattle move under their own power. For nomadic societies, everyone thought of livestock as wealth and pastureland was not a limitation. However, as people settled into cities and agriculture, animals didn’t work so well any more. What would a blacksmith or weaver do with a few cows in the workshop? And what will it cost to feed them? They needed something more convenient.

Gold emerged as the most marketable commodity. It does not have any of the above problems. Anyone can accept gold anywhere at any time, and bring it anywhere else to anyone else.

It is important to ask why a commodity. Why not love? “I will trade you two acres of farmlands for love (or a kiss)” Why not chiseled carvings on a stone at the city temple, kept in absolute trust by the priests? Why not pieces of paper? The first is a frivolous question to make a point. Love or a kiss cannot be exchanged with a third party.

But the other two are nontrivial, and deserve a serious answer. The answer is not: because price inflation. Or, at least, that is only one potential risk among others that lead to a more general problem and the full answer. Nor is it about collapse and the end of the world, what will people barter with (e.g. bullets, cigarettes, or dried food). It is about a universal concern in the human condition.

Trust.

Obviously if you think someone is a cheat, then you will not extend him credit. Or if you don’t like the balance of risk and reward, you will want to withdraw credit. But the issue is much broader than these two simple cases. In the market, it is not usually black and white. There are degrees. In other words, you may want to keep a certain fraction of your wealth in the system, where it earns a return and is easy to use in exchange.

At the same time, you may also want to keep some portion at home in the sock draw or under the floor boards. Everyone must decide for himself what portion to hoard. Yes, we use the word hoarding, though we know that most economists were dismissive of it if not derisive. In his book Human Action , economist Ludwig von Mises called it, “…a deus ex machina, the much talked about hoards…” (though in other places, he treated hoarding more dispassionately).

In fact, there is an arbitrage between hoarding and—to coin a verb word here— crediting. Hoarding is less convenient. Handling and trading physical pieces of metal such as coins has a cost in time spent and often a wider bid-ask spread. However, crediting incurs the risks of default, fraud, and even honest error.

Spread is always a motivator. In this case, there are two spreads. One is convenience, ease of use, time saved. The other is interest. The higher the yield on gold that one can earn, the greater the incentive to dishoard and put one’s money to work. The lower the return, or the higher the risk, the greater the incentive to hoard.

Hoarding is the only alternative to crediting. Whether you put the gold in your pocket, store it in a safe, or contract with a professional vaulting service, you are withdrawing your gold, refusing to grant credit, not allowing your gold to be used by anyone for any reason, and not being in a position to depend on a third party to return your gold (which is somewhat ambiguous in the case of a depository).

This illustrates why money is a physical commodity. Everything else is a form of credit. With any other monetary asset, you are granting credit to someone. Your asset is represented by a number on a ledger of a debtor, or at least an issuer. For purposes of extricating yourself from risk, for purposes of having something in hand, only taking home a physical commodity will do.

Note that not just any commodity suffices. If you buy a warehouse full of lumber, palettes full of copper bars, or a tank full of crude, these have storage costs. And you are speculating. You cannot rest easy so long as you have these goods, because the prices are always moving either up or down. If up, then you are getting richer. If down, then you are getting sweatier.

All the discussion of price in the gold community aside, this is not true for gold. People put gold into intergenerational trusts, with good reason. When you hold the monetary commodity, you are safe. The purpose is not to sell it for a higher price, but to hold it for its own sake, for the reasons we cited for hoarding earlier.

Leaving aside the question of whether price is determined subjectively, we now raise the following question. Is the definition of commodity subjective? Is a thing a commodity, or not a commodity, based on personal preference? Can one person just say that a number on a ledger is a commodity, while it is equally true for another to say no, that only a thing you can hold in your hand is a commodity?

Read More @ SprottMoney.com