MONEY: Default is unavoildable

Tuesday, February 19, 2013

http://lewrockwell.com/north/north1264.html

—  begin quote —

Will the federal government default? Yes. Will investors learn their lesson? Not for long. But for a time, yes.

Here is the lesson: Do not trust a politician who says America cannot, must not, and will not default.

Here is the rule: “Never believe a rumor until it is officially denied by the government.”

Obama has officially denied it.

It’s coming.

— end quote —

Regardless of how you define “default”, what the FED is doing in buying debt with more paper, is de facto default.

So what the individual to do?

Buy assets that are not dollar denominated.

Bullion coins are my favorite. Nickles too.

Diversify. Pay off debt. And “get small in your hole”. (Any vet knows what that means!)

–30–

 


POLITICAL: “… steal the passenger lifeboats …”

Sunday, November 4, 2012

http://lewrockwell.com/holland/holland72.1.html

Gold, Switzerland and the European Secessionist Movement
Anthony Wile interviews Ron Holland
The Daily Bell

*** begin quote ***

Ron Holland: Cutting rates, monetary stimulation and creating more fiat money seems to be the only option left to the central banking cartel in Europe and America. For the US, this creates a higher stock market thus making citizens feel more prosperous and less destitute than they really are. This always occurs during a presidential election campaign as the party in power and the president up for re-election need a positive – or in this case an improving – economy to increase their chances of winning the election. Both parties have done this for the last 40 years or so; nothing unusual here.

I really don’t view monetary easing as particularly harmful as it only postpones the inevitable for a little while longer, like moving up the angle of the Titanic as it was sinking from the bow with the stern higher up in the air. You stay dry for a few minutes longer but in the end, you still drown. Today politicians and central bankers are sort of like some crews on recent sinking cruise ships. They are using their time to steal the passenger lifeboats and safely get away while leaving the passengers to swim to shore or drown.

Also, the European Central Bank (ECB) and banking elite efforts to postpone their day of reckoning in Europe and New York is actually somewhat helpful to American citizens and investors. The investor risk in Europe is actually propelling funds into the American stock and bond markets as well as the dollar buying us a little extra time before the crisis crosses the Atlantic. In addition, the EU problems are helping the dollar in the near term on a relative basis to be stronger than it would be otherwise.

*** end quote ***

This is an insightful metaphor (i.e., the Titanic’s lifeboats).

It’s interesting and dangerous times.

How does the individual protect themselves and their families?

Clearly, one has to diversify one’s risks.

Make “insurance bets”.

If inflation picks up (more than it is now; if you believe the Gooferment’s numbers), then you have to take precautions.

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MONEY: No meaningful way to save

Sunday, January 29, 2012

http://www.forbes.com/sites/charleskadlec/2012/01/23/gingrich-the-gold-standard-and-the-florida-primary

ForbesOp/Ed|1/23/2012 @ 4:33PM
Gingrich, The Gold Standard, And The Florida Primary Charles Kadlec, Contributor

*** begin quote ***

There is no meaningful way to save for your retirement, for your children’s education, or for the future if you don’t know what the dollar will be worth when you will need to spend it.  That makes us insecure and more dependent on government.  Sound money — a dollar that can buy the same amount 10, 20 or 30 years from now — increases our ability to take care of ourselves, our families and to be far less dependent on government.  That goes to the heart of our ability to live in liberty.

The gold standard also reinforces the constitutional limits on the power of the federal government.  When the dollar is linked to gold, the Federal Reserve cannot finance federal government deficits by printing excessive amounts of money.  If it were to try to do so, holders of dollars could over-rule the Fed by turning in the extra dollars for gold, forcing the Fed to reverse its policies.  Except in times of war, the Federal budget deficits were tiny.  From 1947 to 1967, they averaged just 0.1% a year.  In today’s economy, that would be the equivalent of $15 billion.

Finally, making the dollar as good as gold, and restoring gold to the center of the international monetary system, will give the Unites States an enormous boost in soft power.  According to a recent study by the Bank of England, when compared to even the flawed, post World War II gold standard, the paper dollar standard has been a disaster whose true dimensions have been disguised by the time over which it has been inflicted on people all over the world.   Since 1971, real per capital growth rates have been cut by 1 percentage point a year, even as world inflation increased 1.5 percentage points to average 4.8% per year.  Meanwhile, the frequency and severity of economic downturns have increased, as have the number of banking crises.

*** end quote ***

As far as I know, Gingrich doesn’t support a Gold Standard; only Ron Paul wants to start the process. And, it would have to be a process. A complete process of unwinding the “Era of Big Government”.

There’s a TV commercial on about the old couple at the bank being congratulated about their retirement. The teller is counting out blank pieces of paper. How true is that? In my mind, very.

Social Security was sold to “We, The Sheeple” as “insurance”. Unlike real “insurance”, the politicians and bureaucrats took the “contributions” and spent them on the welfare / warfare state. And, put IOUs in the “lockbox”. What a joke! A fraud. At least Ponzi didn’t force people to participate. If MetLife did what the Gooferment did, all the executives would be jail. The politicians and bureaucrats collect a big Gooferment pension for <synonym for the act of procreation in real time> us.

And, Social Security was never supposed to be taxable. And, inflation adjusted. Until the Gooferment decided that energy and food shouldn’t count towards inflation. Right!

And, good luck saving on your own for your retirement. The FED, to hold down the Gooferment’s borrowing costs, has by diktat keeps interest rates at zero. Or pretty close to it.

401Ks and IRA were introduced to induce savings for retirement and take pressure off Social Security. Since “it was never intended to entirely fund a person’s retirement”. That would surprise “We, The Sheeple” circa 1935.

But then a lot would surprise them!

So, perhaps, youngsters might be better off saving for their retirement in gold or silver bullion coins.

Remember that in ancient Rome two gold coins would buy a fine man’s outfit. Pretty much the same today.

Remember that in 1964, three silver dimes would but a gallon of gas. I can PERSONALLY attest to that. And, they cleaned your window, gave you a free class, and trading stamps. Today, those three silver dimes would be worth about SIX DOLLARS; enough for almost TWO gallons of gas.

So, what has changed?

The dollar!

So returning to that old couple at the bank with a lifetime of paper savings. They’ve been defrauded by society. Hard to imagine, but visualize if they’d put those savings into gold bullion coins that they kept in a kitchen pot. Each week, instead of “saving” with paper, they put some gold or silver away in that pot. Hard to imagine that they would nt be better off.

Finally, returning to Gingrich, I agree he could ignite a fire of reality. But, that’s not going to happen. Because at the end of the road, these guys are all suits who want to control people.

Vote Ron Paul. A return to sanity begines with a single step.

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MONEY: Kill the FED; save the Republic

Wednesday, January 25, 2012

http://www.pittsburghlive.com/x/pittsburghtrib/opinion/s_777634.html

Kill the FedBy Eric Heyl, PITTSBURGH TRIBUNE-REVIEWSaturday, January 21, 2012
Read more: Kill the Fed – Pittsburgh Tribune-Review

*** begin quote ***

John Allison is the former chairman and CEO of BB&T, the nation’s 10th-largest financial holding company. He was named one of the 100 most successful CEOs by the Harvard Business Review and since 2009 has been on the Wake Forest University Schools of Business faculty as Distinguished Professor of Practice.

*** and ***

Q: In the long term, what do you think should be done with the Fed?

A: If I were in charge, I would get rid of the Fed. I believe that as long as the Fed exists, Congress can effectively print money. And it doesn’t matter whether they are Democrats or Republicans, they would rather print money than tax people. They want to spend because that effectively buys votes, and they don’t want to tax people because that loses votes.

I think the Fed provides the temptation for massive government deficits. If the federal government couldn’t print money, it would have to have better financial discipline than it has today.

*** end quote ***

Vote Ron Paul.

There’s no other candidate on the horizon that understands or articulates that the FED is the problem.

It gives the duopoly — the D’s and the R’s are two sides of the same coin intended to give “We, The Sheeple” the illusion of a choice — an unlimited checkbook to borrow and spend.

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MONEY: Rich people buy new cars. Poor people do not

Wednesday, January 4, 2012

http://dailyreckoning.com/the-corruption-of-america

The Corruption of America
By Porter Stansberryleadimage
12/21/11

 

*** begin quote ***

 

All we’ve done is convert the government’s nominal GDP stats into a fixed currency value that’s based on real-world purchasing power. The fact is, our data are far more accurate than the government’s because they represent the real-world experience. That’s why our data are far more closely correlated to other real-world studies of wealth in America.

Consider, for example, annual sales of automobiles. Auto sales peaked in 1985 (11 million) and have been declining at a fairly steady rate since 1999. In 2009, Americans bought just 5.4 million passenger cars. As a result, the median age of a registered vehicle in the U.S. is almost 10 years.

Our data shows that real per-capita wealth peaked in the late 1960s. Guess when we find the absolutely lowest median age of the U.S. fleet? In 1969. At the end of the 1960s, the median age of all the cars on the road in the U.S. was only 5.1 years. Even as recently as 1990, the median age was only 6.5 years.

Rich people buy new cars. Poor people do not.

 

*** end quote ***

 

Once again we have the “underground” confirming what we know in our gut, the country is getting poorer day by day.

 

“Penny candy”! Remember that? Like the recent Ron Paul point about 1964 dimes and gas, “penny candy” is a similar point.

 

One tenth of one single silver dime in the Sixties would get you one or more pieces of loose candy at the cash register. (Amazing in light of today’s focus on germs and health hazards that anyone survived.) Fast forward to today. That silver dime is worth about two of today’s dollars. So a tenth is about 20 cents. “Penny candy” is sold in quarter “gum ball” dispensers. So all that’s changed is the value of the money with respect to the  goods available.

 

Who wins in this inflation? No surprise there. The politicians and bureaucrats!

 

Argh!

 

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RANT: “Big Church”, another failed concept

Thursday, August 18, 2011

http://www.catholicnewsagency.com/news/diocese-of-orange-raises-bid-for-crystal-cathedral/

Diocese of Orange raises bid for Crystal Cathedral
By Marianne Medlin

*** begin quote ***

Garden Grove, Calif., Aug 11, 2011 / 05:59 am (CNA).- The Diocese of Orange upped its previous bid and signaled openness to new negotiations for the Crystal Cathedral after board members recently announced that the building is no longer for sale.

*** and ***

The liturgist for the Orange diocese, Monsignor Arthur Holquin, said July 26 that several changes would need to take place in order for the Crystal Cathedral to become a Catholic worship space.

Along with a central altar, a tabernacle and a baptismal font, the building would need a “cathedra” or bishop’s chair. While renovations are needed to the building, “not much deconstruction would be required and the iconic personality of the original architecture and design would, for the most part, be retained,” he said.

Purchasing the Crystal Cathedral is an attractive option for the diocese because it provides an instant solution to its building needs and would cost roughly half the $100 million price tag for the planned Santa Ana cathedral.

Though the diocese made an official $50 million bid for the Crystal Cathedral on July 22, the church’s board later voted against selling it and decided to appeal to church members and viewers to donate the funds instead.

*** end quote ***

Guess I just don’t understand.

Couldn’t God be worshiped in an appropriately decorated warehouse?

As far as the “bishop’s chair”, I have a old folding chair to donate. Won’t that hold a butt.

$100M$?

Reminds me of the French’s Maginot Line and Patton’s famous apocryphal remark “fixed fortifications are monuments to man’s stupidity”.

Maybe a cathedral is marketing? Of an idea who’s time has past. “Big Church” must join the dustbin of failed concepts like: Big Gooferment, Big Oil, Big Pharma, Big Labor, Big Biz, “Too Big To Fail” (2B2F), Social Security “Insurance”, the misnamed Federal Reserve Bank, Wall Street, Fiat Paper aka “monopoly money”, and all such stupidity?

It’s always sad when the illusions and delusions die. And all we are left with is the wreckage.

Is it too late to rebuild from the pieces?

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MONEY: We need to return to Constitutional money — gold and silver

Wednesday, November 10, 2010

http://nicholasnigro.blogspot.com/2010/11/quantitative-easing-just-got-easier.html

Sunday, November 7, 2010
Quantitative Easing Just Got Easier
Nicholas Nigro

*** begin quote ***

This roundabout way of printing money will, apparently, guarantee only one sure thing that you can take to the bank: the further weakening of the once Almighty Dollar and a corresponding rise in critical commodity prices because of it. Translation: From the grocery store to the gas pump, those who can least afford it will pay more and more for basic necessities. But I imagine the government measuring sticks will continue to tell us that we are living in a period of very low inflation for the foreseeable future, and that we should be more concerned about the prospects of deflation.

*** end quote ***

What “they” have fooled everyone into thinking is that a “dollar”, a “Federal Reserve Note”, that green piece of linen cotton “paper”, is actually worth something tangible. In elementary economics, we learned that humans transferred from barter to money because money had certain useful characteristics. Most notably it permitted the butcher to trade directly with the candlestick maker without trading with the baker first. From whence all the good things that the division of labor provides — specialization.

Quoting from my favorite novel (Mine!) “Money is a matter of functions four, a medium, a measure, a standard, a store.” He repeated that four times like poetry. “Six Characters in Money: Portable – Durable – Divisible – Uniformity – Limited Supply – Acceptability.” CHURCH 10●19●62 (Vol 1) 978-0-557-08387-9 page 110

“We, The People” have forgotten that. As well as the Dead Old White Guys Constitutional admonition that only gold and silver should be money. Along with a bunch of other stuff, like the Bill of Rights, Declaration of Independence, and a general dislike for oppressive Gooferment.

So, now, the politicians and bureaucrats are riding high on the hog and the taxpayers have been laid low. Like the host of a parasite weakened to near death.

Gooferment is the meme that kills people. It’s time to awaken from our economic nightmare and throw out the FED and return to “Constitutional money” — gold and silver. And watch the global economy rebound when the world isn’t paying the “inflation tax”.

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MONEY: One slug is as good as another

Thursday, July 29, 2010

http://www.impactlab.com/2010/07/27/record-number-of-counterfeit-one-pound-coins-could-force-britain-to-reissue-entire-denomination/

*** begin quote ***

Their warning came as new figures indicated there were £41 million fake £1 coins in Britain – one in every 36 in circulation. This is a record level and suggests that the proportion of counterfeit coins had tripled in the last decade. The situation has worsened since last year, when one in 40 £1 coins were fake. Experts and MPs said the level of fakes were so high there was now a serious risk that consumer confidence in Britain’s most popular coin was becoming compromised.

*** end quote ***

There has to be something “funny” — funny peculiar; not funny hah — at the bureaucrats calling out that fake coins might undermine confidence in their fiat currency. <Just shaking my head in disbelief> What is the intrinsic value of their “real” fiat coin. It’s worth what someone is willing to give you for it. If it’s a fake, it’s still worth what someone will give you for it. So this should point out that there is no difference between the “Real” and “Fake” ones. Isn’t that “funny”? Like the stories of countries printing high quality fake $100 bills. Who cares? There’s nothing to be “faked” out of. When coins were gold, or even silver, there was something of value that you could be “faked out” of. Now one slug is as good as another. No?

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