Saturday, September 1, 2012

The Monetary Endgame Score To Date: Hyperinflations: 56; Hyperdeflations: 0

We won't waste our readers' time with the details of all the 56 documented instances of hyperinflation in the modern, and not so modern, world. They can do so on their own by reading the attached CATO working paper by Hanke and Krus titled simply enough "World Hyperinflations." Those who do read it will discover the details of how it happened to be that in post World War 2 Hungary the equivalent daily inflation rate of 207%, the highest ever recorded, led to a price doubling every 15 hours, certainly one upping such well-known instance of CTRL-P abandon as Zimbabwe (24.7 hours) and Weimar Germany (a tortoise-like 3.70 days). This and much more. What we will point is that at no time in recorded history did a monetary regime end in "hyperdeflation." In fact there is not one hyperdeflationary episode of note. Although, we are quite certain, that virtually all of the 56 and counting hyperinflations in the world, were at one point borderline hyperdeflationary. All it took was central planner stupidity to get the table below, and a paper with the abovementioned title instead of "World Hyperdeflations."

The Shape Of 40 Years Of Inflation

While many claim that inflation is at historic lows, those who spend a large share of their income on necessities might disagree. Inflation for those who spend a large proportion of their income on things like medical services, food, transport, clothing and energy never really went away. And that was also true during the mid 2000s — while headline inflation levels remained low, these numbers masked significant increases in necessities; certainly never to the extent of the 1970s, but not as slight as the CPI rate — pushed downward by deflation in things like consumer electronics imports from Asia — suggested. This biflationary (or polyflationary?) reality is totally ignored by a single CPI figure. To get a true comprehension of the shape of prices, we must look at a much broader set of data.

The Barron's "Cover" Is Back

Just when all hope was gone that the market has lost all connection with newsflow, discounting, or fundamentals, and all that mattered was how loudly this or that head of printing could jaw(or finger)bone stocks up, here comes that patron saint of all contrarian indicators, the Barron's cover, and "Tough as Teflon." Or at least this was before central planning. Nowadays, every downtick is a catalyst to buy, as it has become a well known fact that even a 0.1% drop in the market is not only a catalyst for widespread panic, but also grounds for immediate promises of endless easing by any and all Goldman affiliated central banks (that would be all of them).

Spain's Debt Buyer Of Last Resort Becomes Seller In Scramble To Fund Deposit Outflows

Several days ago we reported that Spanish financial institutions suffered the largest deposit outflow on record in the month of July when a whopping EUR74 billion, or 5% of the country's entire asset base, picked up and left, the bulk of it most likely taking the well-known path of least resistance to the safety of Swiss and German bank vaults. We showed how this looks visually, and as the chart below confirms it can be summarized in one word only: waterfall. And while in isolation this news was bad enough, a far more troubling implication arises when one considers that in Europe's financial Ice-9 world, in which the interbank market has been dead for over a year, and where the ECB is the shadow lender of only resort, providing funding via various repo channels to local banks to fund Spain's deficit by purchasing sovereign bonds in the primary market. To wit: since the entire financial system's liabilities (deposits) just declined by a record EUR74 in one month, since the consolidated balance sheet has to balance, either Spain's (thoroughly insolvent) banks had to generate EUR74 billion in shareholder equity in one month, i.e. profits - a prospect which is rather amusing considering Spain's banking system recently officially demanded a European bailout, or banks had to sell a like amount of assets in order to fund this outflow. Naturally, they chose the latter. The problem is that the security they sold is the one which only the banks have been buying recently in order to preserve the illusion that Spain is solvent. It was Spanish sovereign bonds.

Russia’s Gazprom Tightens Its Stranglehold On Europe, France Falls: The Natural Gas War Gets Dirty

08/31/2012 - 21:15
The usual suspect, the all-powerful French nuclear industry? 

Quanticipation in the Gold Price

by Adrian Ash, Gold Seek:
Will he, won’t he? Either way, gold says more QE is coming in due course regardless…
SO HERE’S a turn-up for the gold price.
Today saw gold priced in Dollars – and everything else – rising after disappointment over new quantitative easing from the US Federal Reserve.
Maybe Ben Bernanke’s much-awaited speech at the annual Jackson Hole shindig for central bankers wasn’t so disappointing after all. Certainly the Wall Street Journal seems to think that, and its own inhouse “Fed wire” journalist Jon Hilsenrath to boot! But if today’s speech was a promise, it fell a long way short of matching 2010′s big event. Back then, Bernanke made the imminent launch of QE2 plain. Whereas the financial media’s first-rush response today was headlined “Bernanke: No more easing, for now”.
So maybe the gold market’s just got its mojo back. Or perhaps this week’s anticipation – the same anticipation we’ve seen for times this summer – merely put the gold price on hold, as the buying already under way took pause.
Read More @

RNC War on US Democracy! – Dear Ron Paul it is Time for a 3rdPartyRevolution!

from EX0MATRlXTV :

Demand for Romney Disqualification Growing. Rampant Fraud well documented.
Concern to the Pentagon and U.S. Armed Forces are allegations contained in an 11th hour lawsuit that Republican Presidential Candidate Mitt Romney and Republican National Chairman Reince Priebus conspired and continue to conspire in an organized crime racket to steal the office of United States Presidency and Commander in Chief.
As the Romney Campaign went from state to state breaking people’s bones, rigging voter machines and closing down meetings they forget the most damming courtroom evidence of the 21 century – cell phones are video cameras. These videos form a forensic chronological evidence folder of hard fact videos that neither Mitt Romney nor Republican Chairman Reince Priebus can refute and will likely result in the disqualification of Mitt Romney. Felony convictions can result in serious prison sentences.
SUPPORT: If you saw any fraud at a voting precinct, congressional meeting, county meeting or state convention please contact: 

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D’Souza’s Anti-Obama Documentary: If Only It Were True!

by Gary North, Lew Rockwell:
I went to see 2016: Obama’s America. Dinesh D’Souza wrote, stars in, directed, narrates, and did the original research for it. If we look at this from the point of view of its success as a documentary, I think it is effective. It is making money in theaters. This is amazing for a documentary. It is a campaign year documentary, and it is a good one.
It is also dead wrong. That is because it misses the fundamental political fact of the last dozen years: the Obama Administration is the operational successor of the Bush Administration. In Iraq, in Afghanistan, in Guantanamo, on Wall Street, Barack Obama in George W. Bush in blackface. Obama is the star of a twenty-first century minstrel show.
This fact has been deliberately ignored for almost four years by both the neoconservative Right and the grin-and-bear-it Left. Neither side will admit what I regard as the fundamental fact of this documentary. It is a long whitewash of the policies of George W. Bush.
Read More @

Ron Paul, RNC Corruption And the True Political Education

from stefbot:

Ron Paul’s campaign has always promised an education, and by God I think we got one.

KWN Weekly Metals Wrap

from KingWorldNews:
The KWN Weekly Metals Wrap – We have added new segments to the KWN Weekly Metals Wrap covering gold, silver, trading and a plethora of other factors affecting the precious metals markets. I am giving King World News listeners globally access to what has long been my secret weapons in researching where gold and silver are headed directionally along with the COT Report. We Cover the Commitment of Traders Report in detail as well as a number of other factors which can influence the gold and silver market price action.

ALERT: Prepare For All Out Civil War and Economic Collapse – Episode #216

from PeterSantilliTV:

Pete starts off the show with a powerful segment with Truth Correspondent Kristen Meghan to cover recent news about the RNC, the railroading of delegates at the convention, the state of the union, as well as her horrifying experience at a TSA screening area on the way back from the convention.
In the second half of the program, David Lory Vanderbeek, U.S. Senatorial Candidate from the State of Nevada, makes his regular weekly appearance on The Pete Santilli Show to discuss false flag leaks from the White House and DHS, martial law, economic collapse, and U.N. Troops in the streets authorized with one signature by ineligible President Barack Obama.

Today’s Items:

Bernanke at Jackson Hole: No More Easing, For Now
Many had expected Benji Bernanke to come out and announce another round of QE, while in Jackson Hole; however, foreign investors – like the BRICS, have been quietly threatening retaliation if that happened.   Already, bilateral agreements between multiple nations are resulting in the  dropping of the dollar and the dollar stands at the edge of being dropped as the world’s reserve currency.  With all that said, the worsening economy will force the FED to print sooner or later.

Investors Assets To Be Stolen In The Coming Collapse
Egon von Greyerz believes that the illusion of wealth people are living under will vaporize like the $1.6 billion at MF Global. Unfunded liabilities and huge yearly deficits are going to be the undoing of the economic system that we see today.   When banks go under, they will take their depositor’s wealth with them and do not even think about the FDIC folks.   Simply put, if you do not have it in your hands, you do not own it. Also place a good amount of wealth into things without counter-party risk, like gold and silver.

Majority of New Jobs Pay Low Wages
According to a new report from the National Employment Law Project, many new jobs created are low wage jobs. The disappearance of mid-wage, mid-skilled jobs is part of a longer-term trend that some refer to as a hollowing out of the work force.   Lower-wage occupations, with median hourly wages of $7.69 to $13.83, accounted for 58 percent of all job growth since 2008.Needless to say, you can forget about employer health insurance and retirement plans here folks.

What State Is The Best Place To Live In America?
Here are the states where you possibly do not want to be when it hits the fan… California, Delaware, Louisiana, Michigan, New Jersey, and New York.   Here are the states where to potentially move to… Alaska, Colorado, Idaho, Kansas, Montana, Nebraska, North Carolina, North Dakota, South Carolina, South Dakota, and West Virginia.   I still think Texas is good though.

Did RNC “Scripted” Rules Change Start A Civil War In The Republican Party?
The Republican Party Criminal Leadership, in changing the rules in midstream with this bogus Rule 16, have essentially forever cut the RNC from grassroots by forcing delegates to vote the way the leadership wants to them vote or be disqualified to vote.   Needless to say, as more and more information gets to the grassroots of the extent of this ruling, the Republican party will not survive as it is now.

Ballistic Precious Metals
Having your food, precious metals, and other supplies is great; however, make sure you can protect yourself, and your loved ones, when it hits the fan.  Ammunition, like gas, gold and milk only have one direction to go when it comes to price and that is up. Anything, from a war to a presidential executive order banning imports of cheap ammo can make the price skyrocket even further. To that end, please ensure you have a ample supply before you really need it. After all, it is better to be a year early than an hour late when it comes to preparing.

Finally, please prepare now for the escalating economic and social unrest. Good Day!

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