Mike Maloney reads from Ayn Rand’s Atlas Shrugged. Specifically, the part of the story where Francisco d’Anconia gives his discourse on money, how it is earned by productive people and either looted or mooched away by unproductive people. After questioning whether or not money is the root of all evil, Francisco asks, “What the root of money?”
A most excellent excerpt:
When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed.
A stunning, must-read dose of economic reality entitled, The Retail Death Rattle, is posted over at The Burning Platform.
Excerpt: The entire economic recovery storyline is a sham built upon easy money funneled by the Fed to the Too Big To Trust Wall Street banks so they can use their HFT supercomputers to drive the stock market higher, buy up the millions of homes they foreclosed upon to artificially drive up home prices, and generate profits through rigging commodity, currency, and bond markets, while reducing loan loss reserves because they are free to value their toxic assets at anything they please – compliments of the spineless nerds at the FASB. GDP has been artificially propped up by the Federal government through the magic of EBT cards, SSDI for the depressed and downtrodden, never ending extensions of unemployment benefits, billions in student loans to University of Phoenix prodigies, and subprime auto loans to deadbeats from the Government Motors financing arm – Ally Financial (85% owned by you the taxpayer). The country is being kept afloat on an ocean of debt and delusional belief in the power of central bankers to steer this ship through a sea of icebergs just below the surface.
Read the entire post at The Burning Platform.
Glenn Beck reviews Germany’s early 2013 request to repatriate 300 tonnes of gold held by the Federal Reserve Bank of New York and then asks why the Fed responded with a pledge to return the gold in 7 years. If the gold exists, it should be a simple matter of shipping logistics. But 7 years? Beck goes on to logically speculate that the gold doesn’t, in fact, exist. The gold that the Fed has so far returned, is not the original bars first delivered to the US from Germany some 70 years ago. They are newly recast bars. Could it be that the original gold was long ago rehypothecated, in order to maintain the illusion of a strong dollar? Beck believes it’s even worse – that the Fed and other western central banks of the world have not only rehypothecated each other’s gold, but have even sold or transferred the physical gold to new owners.
Over at ZeroHedge, Jim Kunstler’s latest post on his forecast for 2014 is a MUST READ!! Readers should greatly benefit from his astonishingly honest take on everything from the shale oil sham to last year’s gold slam. He even gets into Obamacare, Bitcoin the Euro crisis and the middle east.
Excerpt: Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical “recovery” and the “shale gas miracle” on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations.
Here’s Peter Schiff of Euro Pacific Capital pointing out that the recent positive GDP numbers indicate that America is spending money – money that is just created by the Fed. The GDP “is goosed.” If the Fed decides to take all that easy money away, the propped up markets – stocks, housing, etc. – will collapse. This, combined with the fact that most people don’t see the value of gold in this environment, makes Schiff even more bullish on the metal.
Here are a few interesting videos by YouTube’s belangp. The first one shows how the US economy is not getting better as the government’s massaged statistics try to portray. Instead, it’s so bad that only the Fed is left to buy up US debt as other nations are backing away. Are the elite preparing for a global reset?
In this audio clip from Physical Gold Fund, James Rickards of Tangent Capital talks about the Fed’s alternatives in 2014 and how they may carry out their tapering plans. Rickards reviews the Fed’s actions, and how they’ve been unable to attain their specific goals, the forces of deflation versus inflation, as well as affects of nominal GDP growth in lieu of real GDP growth. He also discusses gold and gives some interesting comments regarding why he holds it, how much of it should be a part of any investment portfolio, and its current trading environment (specifically, that the current set-up could yield a major short-squeeze opportunity). Listen to mp3 audio.
And in the following Bloomberg interview, Rickards talks more about gold and how even though 2013 has seen a bad year for the metal in paper terms, there is still major demand for obtaining gold in physical form. Physical gold has been leaving the GLD ETF and going straight to China. That the central banks have to drain the ETF in order to get the physical metal shows that there is very little of the stuff available elsewhere. This is a must watch interview with James Rickards.
Here again is Mike Maloney showing the growth of America’s debt to GDP ratio and explaining how a default would hurt the elite bankers and investors, while inflation hurts the middle class savers. Since they are in charge, which option do you think they’ll chose?
100 years ago today, President Woodrow Wilson signed the Federal Reserve Act into law. (How the institution’s framework was actually put together is revealed in Griffin’s Creature from Jekyll Island and is a must read.) In the previous post, James Rickards gave his critique of the Fed’s recent performance, but in the following video, Consuelo Mack gives a brief history of the Federal Reserve’s ascension to power and interviews James Grant and Richard Sylla to get their views on what ‘the Creature’ has accomplished over the past century.