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Nov 26, 2014

Grant Williams: The Consequences Of Economic Peace

From ZeroHedge

The following chart-heavy presentation from Grant Williams is among his best as he wends his way methodically from the 19th century to the present day (and into the future) examining "The Consequences of the Economic Peace." From Keynes to Kondratieff and from Napoleon to Nixon, Williams looks at the ramifications of several decades of easy credit and attempts to draw parallels with a time in history when the world looked remarkably similar to how it does now (as he notes "that last time didn’t end so well, I’m afraid.") The real day of reckoning (Williams notes rather ominously), when the unconscionable level of debt that has been built up during the fiat money era finally topples over under its own weight like the giant wave in The Perfect Storm, lies ahead of us

Full Presentation:


Grant Williams' Chart Pack - The Consequences of the Economic Peace by zerohedge

Nov 20, 2014

Grandmaster Putin’s Golden Trap

From GoldstockbullNovember 19th, 2014
By 
The following piece by Dmitry Kalinichenko for Investcafe.ru suggests that Putin is using manipulated gold and energy prices to combat Western powers. Putin’s response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender. This comes on the heels of Russia’s central bank Governor Elvira Nabiullina telling the lower house of parliament about recent significant Russian gold purchases of roughly 150 metric tons. She is an economist, head of the Central Bank of Russia and was Vladimir Putin’s economic adviser between May 2012 to June 2013.
putin goldAccusations of the West towards Putin traditionally are based on the fact that he worked in the KGB. And therefore he is a cruel and immoral person. Putin is blamed for everything. But nobody ever accused Putin of lack of intelligence.
Any accusations against this man only emphasize his ability for quick analytical thinking and making clear and balanced political and economic decisions.
Often Western media compares this ability with the ability of a grandmaster, conducting a public chess simul. Recent developments in US economy and the West in general allow us to conclude that in this part of the assessment of Putin’s personality Western media is absolutely right.
Despite numerous success reports in the style of Fox News and CNN, today, Western economy, led by the United States is in Putin’s trap, the way out of which no one in the West can see or find. And the more the West is trying to escape from this trap, the more stuck it becomes.
What is the truly tragic predicament of the West and the United States, in which they find themselves? And why all the Western media and leading Western economists are silent about this, as a well guarded military secret? Let’s try to understand the essence of current economic events, in the context of the economy, setting aside the factors of morality, ethics and geopolitics.
After realizing its failure in Ukraine, the West, led by the US set out to destroy Russian economy by lowering oil prices, and accordingly gas prices as the main budget sources of export revenue in Russia and the main sources of replenishment of Russian gold reserves.
It should be noted that the main failure of the West in Ukraine is not military or political. But in the actual refusal of Putin to fund the Western project of Ukraine at the expense of the budget of Russian Federation. What makes this Western project not viable in the near and inevitable future.
Last time under president Reagan, such actions of the West’s lowering of oil prices led to ‘success’ and the collapse of USSR. But history does not repeat itself all the time. This time things are different for the West. Putin’s response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender. Putin’s real policies are not public. Therefore, Putin’s policy largely has always focused not so much on effect, but on efficiency.
Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.
Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!
To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the RF coming from the sale of oil and gas over the same period.
Moreover, in the third quarter the purchases by Russia of physical gold are at an all-time high, record levels. In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined (according to official data)!

Nov 19, 2014

#grubered

Jonathan Gruber Spawns Hashtags and Hilarious Videos
As a little addendum to our recent look at the arrogant, but surprisingly honest (in unguarded moments) government advisor Jonathan Gruber, we would note that he has by now spawned numerous Twitter hashtags. These range from the simple #Gruber, to #GruberGate, to #Grubered.

The latter specifically has probably a very good chance of becoming a widely used figure of speech (see conclusion for a practical application).

In addition, people have become busy putting together videos, making liberal use of the fact-checking powers of the inter-tubes. What have politicians said about Mr. Gruber in the past and what are they saying about him now?

Examples of then: “He’s one of the best outside experts”, “…using super-duper computer models and helping the CBO”, “Most respected economist”, etc.

Examples of “now”: “Don’t know who he is. He never helped us write any bill.” “Some outside advisor, he never worked on our staff.” “I completely disagree with him”, “Errr….aaah”, etc.

Here is an especially hilarious example of these videos that we felt we had to share with our readers:


Fun with GruberGate
Something bothered us when seeing and hearing the president assert that Gruber “expressed an opinion that…err…I comletely disagree with…wrrrs…in term of, of the voters…”. A quick Google search of “how to spot when someone is lying” yields several indications that he didn’t really mean it, chiefly among them “change of head position”, “difficulty of actually speaking”, “repetitiveness”, “standing very still”, “having an answer for everything”, “not making eye contact”, “odd micro-expressions”, “pointing a lot” (note how Mr. Obama attempts to suppress this reflex but is still pointing up with his thumbs at the decisive moment).

We personally have not the slightest doubt that the president’s opinion of the US electorate is in agreement with Gruber’s even without body language voodoo (it admittedly is a somewhat dubious science, as the Pentagon found out when it spent $300,000 for an analysis of Vladimir Putin’s body language. In this case though, our gut feelings are probably accurate.

Speaking of money, we must correct a certain point we mentioned in “Dr. Gurber, Wie Geht’s Dir”: the good man did not get paid $400,000 for his consulting work on Obamacare. That is just what the State of Vermont is paying him for advising on its implementation. He actually got $6 million all in all. We already suspected that the figure of $400,000 was a bit too low for “one of the most respected economists + his super-duper computer models”.

Conclusion:

To the now successfully (more or less) Obamacared American masses (vulgo “stupid voters” ©,®, TM, J. Gruber) we can only say this: It’s official. You’ve been Grubered.

The man with the 6 million dollar grin, a man of mystery, who managed to remain completely unknown to the president and the speaker in spite of visiting the White House 21 times. He sure tried to get noticed, but evidently failed. Initially, at least (they have heard about him by now).

Nov 17, 2014

Governments Are Conspiring Against People – Worldwide

 by Martin Armstrong - 
A good example of government all ganging up against the people to cling to power is how they all follow each other. These G20 meetings are now serious events because they are all about how to control the people and sustain their power. This is demonstrated by coordination efforts from taxes to now controlling the internet.
I warned that Obama calling the FCC will result in licensing to censor the internet. That’s right, they may even shut this site down in the near future unless I write what they tell me. Sorry, it will be beach-time for me then as far away as I can get.


Illustrating that what Obama has just done is a worldwide conspiracy, we have to look always around the globe to see these movements and shenanigans. The Swiss initiative to start regulating the internet has been unveiled. This is a worldwide effort and those government who have not said anything yet are just hiding behind the curtain. The Swiss will begin with “quality ranking” from TV to internet news sites! Yep – the news on the internet cannot conflict with the newspapers – hello Pravda (means truth). This is a pretend private initiative but their first president is the former member of the state government of Zürich.. It is always government officials who end up in such positions for they are there to rig the game.
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Related:
Governments All Know What is Coming – They Want to Disarm the People

Nov 14, 2014

Coincidences: Flt 370 Then; Ebola Now - Leading Expert In

Coincidences: Flt 370 Then; Ebola Now - Leading Expert In Ebola Died On Missing Malaysian Airlines Flight. Glenn Thomas was also the coordinator of the media and was involved in the investigations that were bringing to light the issue of trial operations of Ebola virus in the laboratory of biological weapons at the hospital in Kenema. Now that this workshop was closed by order of the Government of Sierra Leone, more details emerge about the interests that hidden behind its management.   
Read all: 
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Related:  
Finally Russia releases Ukraine Flt17 Data: Ukraine military jet on flight path  
‘US withheld sat. image of MH17 downing’
Israel and MH17


Nov 13, 2014

The Economic End Game Explained

A must read from Alt-market, Wednesday, 12 November 2014
By Brandon Smith

Throughout history, in most cases of economic collapse the societies in question believed they were financially invincible just before their disastrous fall. Rarely does anyone see the edge of the cliff or even the bottom of the abyss before it has swallowed a nation whole. This lack of foresight, however, is not entirely the fault of the public. It is, rather, a consequence caused by the manipulation of the fundamental information available to the public by governments and social gatekeepers.
In the years leading up to the Great Depression, numerous mainstream “experts” and politicians were quick to discount the idea of economic collapse, and most people were more than ready to believe them. Equities markets were, of course, the primary tool used to falsely elicit popular optimism. When markets rose, even in spite of other very negative fiscal indicators, the masses were satisfied. In this way, stock markets have become a kind of dopamine switch financial elites can push at any given time to juice the citizenry and distract them from the greater perils of their economic future. During every upswing of stocks, the elites argued that the “corner had been turned,” when in reality the crisis had just begun. Nothing has changed since the crash of 1929. Just look at some of these quotes and decide if the rhetoric sounds familiar today:
John Maynard Keynes in 1927: “We will not have any more crashes in our time.”
H.H. Simmons, president of the New York Stock Exchange, Jan. 12, 1928: “I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish and recede in the near future.”
Irving Fisher, leading U.S. economist, The New York Times, Sept. 5, 1929: “There may be a recession in stock prices, but not anything in the nature of a crash.” And on 17, 1929:“Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.”
W. McNeel, market analyst, as quoted in the New York Herald Tribune, Oct. 30, 1929: “This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan… that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years.”
Harvard Economic Society, Nov. 10, 1929: “… a serious depression seems improbable; [we expect] recovery of business next spring, with further improvement in the fall.”
I hear nearly identical statements from pro-mainstream, pro-dollar skeptics all the time. And all of their assertions rest solely on the illusion of the Dow and the dollar index, not to mention statistics that are sourced from the very government that has much to gain by fooling the public into believing all is well.
In 2009, Paul Krugman, perhaps the worst and most famous economist of our age, lamented on the fact that no one in mainstream finance saw the derivatives and credit crash coming. Yet it is the same kinds of manipulative policies that Krugman champions that caused this collective ignorance in mainstream circles to begin with.
What the past proves, time and time again, is that establishment trained and educated economists are perhaps the most useless of all analysts. They are perpetually wrong. Only independent analysts have ever been able to predict anything of value as far as our economic future — not because they are psychic, but because they have the advantage of standing outside the foggy propaganda of brainwashed financial academia.
It also proves that the appearance of prosperity means nothing if the fundamentals do not support the optimism. That is to say, a bullish stock market, a high dollar index and a low unemployment percentage mean nothing if such stats are generated by false methods and fiat.  The fundamentals ALWAYS matter.  As we saw during the Great Depression, the markets cannot hide from reality forever.
I relate these points because the future I am about to suggest here might sound outlandish to some, because it is so contrary to the “official” accounting of our current financial world. It is important to remember that the mainstream, the majority, is almost always wrong and that the truth is very rarely accepted broadly until calamity has already fallen.
I outlined the hard facts behind the reality of economic downturn in my article “We Have Just Witnessed The Last Gasp Of The Global Economy.”
The bottom line is that the stock market, the greatest false indicator of all time, is on the verge of implosion; and the banking elites are positioning themselves to avoid blame for this implosion while the rest of us are being sold on the most elaborate recovery con-game ever conceived. But what is the purpose behind this con-game? Lies are generally only told by those who hope to gain something through deception. What do the elites hope to gain by creating a facade of recovery?
They have openly admitted to the public on numerous occasions EXACTLY what they want — namely, the institution of a truly global and centralized economic system revolving around a highly controlled world currency framework and dominated by a select cult of banking oligarchs. Anyone who claims that this is not the goal is either a liar or an uneducated fool.
I have covered the evidence supporting this program many times in the past, but it would seem with the precariously surreal nature of our world today that much needs repeating. In 1988, the financial magazine 'The Economist' published an article titled “Get ready for a world currency by 2018,” in which it outlined the framework for a global currency system called the “Phoenix” (a hypothetical title), administered by the International Monetary Fund by the year 2018, which would erase all national economic sovereignty and require governments to borrow from the world central banking authority, rather than print, in order to finance their infrastructure programs. This would mean total control by the IMF over member nations as they beg and plead for more capital under the global currency umbrella.
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If this sounds familiar, it is because I have been warning about the IMF takeover of the global monetary system for at least six years. The Economist actually admits that the Phoenix system would start out in the format of the Special Drawing Rights basket currency:
The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power…
The plan is to introduce a basket currency system as an alternative to the dollar as world reserve, then slowly but surely phase out all sovereign currencies until the basket becomes a currency itself - the ONLY currency.  Former World Bank Chief Economist Justin Yifu Lin seems to agree with this ideology, arguing that national currencies must be replaced with a supranational currency, and pointing out that no single currency has the strength to stand alone as world reserve:
"I think the dominance of the greenback is the root cause of global financial and economic crises...The solution to this is to replace the national currency with a global currency..."
I would mention that a "Phoenix" rises from the ashes of calamity reborn.  What ashes are the elites expecting the new global currency to rise from?