Sunday, October 14, 2012

Money Printing Is the Only Thing Keeping the System Afloat

by Alasdair Macleod, Gold Money:

Last Monday GoldMoney published my article showing the frightening growth in money-quantities for the US dollar. In that article I stated that the hyperbolic rate of increase, if the established trend is maintained, is now running at over $300bn monthly, while the Federal Reserve is officially expanding money at only $85bn.
The first thing to note is that the Fed issues money because it deems it necessary. The hyperbolic trend increase in the quantity of money is a reflection of this necessity, implying that if the Fed’s money issuance is at a slower rate than required, then strains will appear in the financial system. There are a number of reasons behind this monetary acceleration, not least the need to perpetuate bubbles in securities markets, but there are three major underlying problems.

Government spending
Federal government spending is accelerating, due to rapidly escalating welfare commitments, not all of which are reflected in the budget. Demographics, particularly the retirement of baby-boomers, government-sponsored healthcare, and unemployment benefits are increasing all the time; yet the tax base is contracting because of poor economic performance and tax avoidance. Furthermore, state and municipal finances are dire.
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Jim Rogers on Politics, Money Metals and How to Deal With an Endless Downturn

from The Daily Bell:
Introduction: Jim Rogers was a co-founder of the Quantum Fund, and is creator of the Rogers International Commodities Index (RICI). A native of Demopolis, Alabama, Jim Rogers was entrepreneurial from a young age. His first business venture at age five involved selling peanuts. He attended Yale University where he received a degree in history and then also Oxford University where he focused on philosophy, politics and economics. In 1970, Jim Rogers co-founded the Quantum Fund, possibly the most famous and successful fund of its type. Despite his success, he still makes media and television appearances, focused on the free-market principles he believes in and investments in all vehicles, long and short worldwide, that he espouses. He has issued many warnings about the West’s debt-making profligacy and has concluded that China will likely constitute tomorrow’s most powerful nation-state, in large part because of the energy and discipline of its billion-plus citizens. He is author of many well-received books including the best-selling Investment Biker, a free-market oriented meditation on life and investing.
Daily Bell: Hello, again. Let’s jump right in. Where is gold headed – US$5000 an ounce? Is silver headed toward US$350?
Jim Rogers: I’m not smart enough to know something like that. I own gold and silver and there are a lot of bulls right now. If you look at open interest and see all the speculators who own gold and silver, that’s usually a worrisome sign. I mean, I am not selling my gold and silver, I assure you, but I do worry about all these speculators getting in the market.
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Charlie McGrath [Wide Awake News] – What Happens When The ATM Stops Working? Prepare Now

Charlie McGrath is a well known radio personality and host. You might call him a prepper, but certainly not an ultra-prepper. He believes, as we do at FSN, that its important to have a plan. Most of us wouldn’t have a clue what to do if the ATM/Credit Card Network shut down. There would be mass chaos and pandemonium. Do we believe such an occurrence is imminent or even likely, no. However, it is a possibility, which is why you should stock up on some food, have some precious metals nearby and perhaps a means of defending you and your family. The costs of such preparation are quite minimal. 60 days worth of food is just a few hundred dollars. And preparing a plan is free. The choice is yours.

The Punch Line: All The Charts That's Fit To Print

Abe Gulkowitz, publisher of the periodic chart masterpiece The Punch Line, has released his latest macro economic update full of 17 pages of charts and news blurbs indicating the true state of the economy in an easily digestible format. While it will hardly come as a surprise to most, the prevalent chart direction is one from the top left to the bottom right in practically every macro vertical, despite the now endless monetary intervention attempts by all central developed world central banks.

Selling Doubt In The MSM Matrix

Eric De Groot at Eric De Groot - 1 hour ago
The 1-2-3 setup doesn't mean all hell is about to break loose in gold. Transfering control of the trend from weak to strong hands requires only a little misdirection and time. Selling doubt in a world still largely plugged into The MSM Matrix is easier than shooting fish in a barrel. Chart: London PM Fixed Gold and GLD (ETF) Total Assets WA... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

SilverMoneyFuture Interviews Ned Naylor-Leyland

from Silver Money Future:

Lindsey Williams: Master Plan to Bring Down America Revealed

from TheAlexJonesChannel:

‘Elected leaders in Italy, Greece replaced by Eurocrats’

from RussiaToday:

RT talks to Daniel Hannan, Member of the European Parliament who gives his take on what exactly is wrong within the EU.

On Currency Swaps And Why Gartman May Be Wrong In Focusing On The Adjusted Monetary Base

Last week Dennis Gartman, in his homonymous letter said that he was concerned about the fact that the adjusted monetary base has been falling, rather than rising, taking away the bullish case for gold on the topic of “money printing”. One must therefore remind those with this concern that the credit expansion caused by the backstop of the Fed alone is enough to inflate asset prices. This is consistent with the case we made in our last letter, that a commodity based standard is not as relevant as having a 100% reserve requirement. By the same token, if the reserve requirement is below 100%, it is not that relevant to see the expansion of the monetary base! The “printing of money” will eventually come, when EU corporations begin to default and the Fed has to “ensure there is enough US dollar liquidity”. It happened in 1931-33, in spite of the fact that the adjusted monetary base had been contracting since 1929: The US dollar was devalued from approx. $20.65/oz to approx. $34.70oz and gold was confiscated.

Why Are Americans So Easy To Manipulate?

The corporatization of society requires a population that accepts control by authorities, and so when psychologists and psychiatrists began providing techniques that could control people, the corporatocracy embraced mental health professionals. In psychologist B.F. Skinner’s best-selling book  Beyond Freedom and Dignity  (1971), he argued that freedom and dignity are illusions that hinder the science of behavior modification, which he claimed could create a better-organized and happier society. Critically, given our current entitlement-heay environment, the finding that in order to get people to behave in a particular way, they must be “needy enough so that rewards reinforce the desired behavior.” should concern us all.

How To Spot A Keynesian

The truth of the matter is that there is no such thing as a free lunch. The phony prosperity of monetary inflation is entirely illusory. You cannot get something for nothing. "So, whenever you see a criticism of austerity as fostering recession, you are reading a Keynesian. He may not call himself a Keynesian, but in this case, he is delusional. Only Keynesianism teaches that reduced national government spending (“austerity”) in a nation whose national government spends 40% of its GDP (Greece) will produce a recession." Keynesian economic pundits advance many fallacious arguments about government spending. Chief among them is the egregious notion that mortgaging your posterity with debt and deficits is somehow “virtuous.”

Golden Numbers, Ersatz Numbers & Profit Nuggets

by Deepcaster, Gold Seek:
“Can’t debate, so they changed the job numbers.” ~Jack Welch, former General Electric CEO
Jack Welch’s Intuition – that the Official Numbers from the Bureau of Labor Statistics are Bogus — is correct (as we demonstrate below). The Real U.S. Unemployment Rate is 22.8% per
But of equal importance is Welch’s focus on the importance of having reliable numbers as the basis for making sound Business Decisions (and Investment Decisions, we add) in order to protect Wealth and Profit.
So we lay out here certain critically important Numbers, and indicate resultant Profit Potential.
Consider, for example, Key Numbers which will help determine the future Gold Price (and notwithstanding the Idle comments of Fossils who consider Gold to be an Archaic Relic).
In the first two months of Last Year, Chinese Gold Imports from Hong Kong were about 11,000 kilograms. This year, for the same period Imports were 72,000 kilograms for the same period, about a 650% Increase.
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