VOCABULARY: Fiat currency created by computers in the Cnetral Bank = “mouse-click money”

Saturday, May 6, 2023

Matt Piepenburg calls mouse-click money

# – # – # – # – # 

Von Greyerz: Forecasting The Gold Price Is A Mug’s Game
by Tyler Durden
Tuesday, May 02, 2023 – 07:20 AM
Authored by Egon von Greyerz via GoldSwitzerland.com,

*** begin quote ***

Most investors are totally ignorant of the purpose of gold or its historical significance. 

After all, Gold is the only money that has survived in history but virtually nobody is aware of this vital information. 

*** and ***

The Everything Bubble is likely to turn into the “Everything Collapse” (link below) with all the bubble assets declining between 75% and 95% in real terms. 

After all; assets inflated by fake money must clearly be fake. 

The biggest collapse will obviously be the $300 trillion debt market. But before this debt collapse, Western governments and central banks will have drowned financial markets in what my colleague Matt Piepenburg calls mouse-click money.

And they will wear out many batteries and mice before this is finished.

We saw during the Ides of March (Shakespeare), which is an ominous time in mid March when Julius Caesar was murdered. This Ides of March this year contained the death of 4 banks; one Swiss, and three US within a matter of days. 

*** end quote ***

Very nice summation.

Back in history, the ruling elite always pretended that money contained valuable gold or silver.

The Romans debased their currency.  

https://reinkefaceslife.com/2007/10/10/money-leaders-to-the-guillotine/

So did the French.

https://reinkefaceslife.com/2021/08/09/goldbug-what-if-all-the-gold-in-fort-know-has-long-since-left-the-country/

What makes us think that it will result in a different outcome?

—30—

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ECONOMICS: illiquid assets should be “marked to market” of zero!

Saturday, April 1, 2023

https://www.zerohedge.com/markets/caution-better-part-valor-again

Caution Is The Better Part Of Valor… Again
by Tyler Durden
Friday, Mar 24, 2023 – 02:25 PM

Authored by Peter Tchir via Academy Securities

*** begin quote ***

I did not like what happened on Wednesday and reiterated that view as stocks were popping yesterday morning. Today, a relatively calm overnight session got spooked as European bank CDS (particularly contracts linked to sub debt) spiked. That continued into the U.S. session until headlines that Treasury Secretary Yellen had convened a FSOC meeting. Maybe something comes out of that meeting, but here are issues that I think resurface once that meeting is done, unless something surprisingly aggressive is done (I don’t expect that).

*** and ***

The “Unrealized” Mark to Market Losses

I remain dumbfounded by some of the duration risk that was obviously taken at, at least, one bank. The sense that I get, from talking to people is more time is being spent on what other issues could be out there?

*** end quote ***

One of the Managing Directors, that I respected from my days on Wall Street, was a real hard ass as a risk manager. I remember hearing many profound and LOUD screaming matches with traders and portfolio managers about “mark to market”.  As an IT guy I had heard the term, but didn’t grok (gestalt) it, until I heard some of his rants. (It was hard NOT to hear them screaming.)

His rule was, if someone said something was worth X and he didn’t think so  — especially if it was illiquid or had no active market, then he’d offer to put it in their personal portfolio at that value.  Otherwise, it was “marked to market” at ZERO.  (I really had to laugh when the eventually ended with “why would I want that junk in my personal portfolio?” Followed by the final nail in the coffin: “Why would the Firm want it in theirs at that price?”  I think those disagreements could have had tickets to watch that rival WWE matches.)

So, everyone should “market to market” all their assets as if you were a risk manager.  And, don’t think that your job is a risk-free asset. 

—30—

Note: A good post for April Fool’s Day!

# – # – # – # – # 

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MONEY: Gooferment Debt in a “death spiral”

Thursday, February 9, 2023

https://www.zerohedge.com/markets/welcome-death-spiral

Welcome To The Death Spiral
by Tyler Durden
Monday, Feb 06, 2023 – 09:00 AM
Authored by John Rubino via Substack,

*** begin quote ***

And there’s nothing that the monetary authorities can do to stop it, because either choice – keep interest rates high or push them back down – leads to the same place, which is a currency crisis. Meanwhile, each turn of the wheel makes the problem more intractable and the collapse more imminent. That’s what the term “death spiral” refers to: a process that feeds on itself until the system implodes.

*** end quote ***

Assuming that they, our wise and merciful Overlords, can see that they can no longer kick the debt can down the road, what can they do?

Easier said than done, cut spending.  The Military Industrial Complex is spending the USA into oblivion.  They have to face the largest share of the cuts.  It would seem that NATO has far outlived its usefulness and should be ended.  Our participation in the UN and all its corrupt activities should also go.

Then, we need to address welfare and entitlements.  Sorry but they have to get cut too.  As humanely as possible.

The cathedral of “education” needs to be starved too.

The entire class of Gooferment drones have to be freed to take on more productive roles.

Unpleasant times for everyone.

The alternative is the fall of Rome.

—30—

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ECONOMICS: Recongize reality and change the retirement age to 75 or 85?

Monday, January 30, 2023

https://www.zerohedge.com/personal-finance/raise-social-security-age-least-75

Raise The Social Security Age To (At Least) 75
by Tyler Durden
Sunday, Jan 29, 2023 – 06:30 PM
Authored by Ryan McMaken via The Mises Institute

  • On January 10, the French government announced plans to raise the retirement age from 62 to 64.

*** begin quote ***

One thing raising the age has going for it is that it’s been done before. A 1983 change very gradually increased the full-benefits age from 65 to 67. That’s much too little, and even an increase to age 75 would be a mild reform. Other reforms, up to and including abolition, should include means-testing pensions and totally defederalizing and decentralizing the program. But it’s also easy to imagine the tidal wave of opposition from activists who vehemently oppose even a very mild reduction in Social Security payouts. Raising the age won’t make Social Security just, prudent, or wise. But cutting federal spending is always the right thing to do.

*** end quote ***

As horrific this change wood be, it’s needed to prevent economic catastrophe.

Time to unwind the Ponzi scheme.  Those, that are close to their retirement age (i.e., 55), don’t have enough working time to adjust to the loss or reduction in Social Security benefits.  And, don’t forget that there is a terrible age discrimination problem when workers turn 40, 50, or 55. So evidently, those under 40 are going to take a real haircut.

I doubt the current crop od politicians and bureaucrats have any stomach for the pain to be inflicted on themselves and the general population.

One thing is for sure, “they” can’t print their way out of this one.

—30—

On Mon, Jan 30, 2023 at 10:39 AM Luddite wrote:

“Back in the day” when I was making some decent coin, I was always pleased each year when I reached the maximum income required on SS withdrawals each month. I remember a couple of years when I received some big January bonuses that they stopped taking out SS in April! In my opinion, the easiest solution to preserving SS is to remove the cap on income. I understand that the reason we even have a problem is because the crooks raided the fund years ago and have never paid it back, but given the current situation I believe removing the cap is the easiest and least painful solution. What say you? (Also understanding that I just poked the libertarian’s cage!)

# – # – # – # – # 

Taxation is theft. 

Starting from that basic principle, “eliminating the cap” merely allows the current plundering to continue. 

A radical reform is required to truly correct the problem.  Will some get hurt, yup. 

To minimize the pain, the young should be excluded, the old exempted, and the middle get the full retirement age adjusted. 

Say a 40 goes from 69 to 80, 50 goes from 68 to 75, 55 from 68 to 70. 

Then in 40 years social security goes away.

It’s only fair way to unwind the ponzi scheme.

Yes, fiscal reality sucks.  Economics is the dismal science. And, TANSTAAFL (“There Ain’t No Such Thing As A Free Lunch” From Robert Heinlein’s classic)!

Sigh.

—30—

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ECONOMICS: Maybe I have to start looking at price per ounce?

Monday, January 2, 2023

https://www.zerohedge.com/markets/whats-your-line-sand-25-burger

What’s Your Line In The Sand? The $25 Burger?
by Tyler Durden
Thursday, Dec 22, 2022 – 09:22 AM

  • Authored by Charles Hugh Smith via OfTwoMinds blog,
  • The gag reflex kicks in at some point and we walk away because it is no longer worth the price.

*** begin quote ***

Everyone has a line in the sand when it comes to inflated prices they refuse to pay. For one Walmart shopper I observed, it was a carton of eggs for close to $10. She announced her line in the sand verbally, with great force and sincerity.

What’s your line in the sand, the point at which you simply refuse to pay the asking price? Is it the $25 burger? Or is it the $50 for two burritos and two beverages?

Each person’s line in the sand reflects their income, wealth, budget, social status and value system–what’s important to them. For some higher income folks, it might be the ridiculous “resort fee” that’s tacked onto the already overpriced resort room, hotel tax, excise tax, parking fees and the extra-special charge for Internet service.

For others, it might be the outrageous estimate for repairing a system failure in a nearly-new vehicle that is (surprise!) no longer covered by the manufacturer’s warranty. Hundreds of dollars for what?

*** end quote ***

Hmmm, now that’s an interesting pot question.

For me, it has to be the $9 “craft beer”.  I switched at my local bar from draft to bottles when the price was 7$ for a draft and 3$ for a bottle.  Maybe I have to start looking at price per ounce?  Or, milliliter!

Dining out has become a $100 proposition.  Isn’t that far beyond the average working stiff?  It certainly is getting there for the senior citizens and people with rug rats.

Sad. 

And it’s all caused by the politicians and bureaucrats “printing” money.

Where does the merry-go-round stop?

Soon I think.

—30—

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NEWJERSEY: Remember Corzine and the missing $1.6 bullion

Monday, November 28, 2022

https://www.zerohedge.com/markets/youre-absolute-fraud-cme-ceo-terry-duffy-recalls-first-meeting-sam-bankman-fried-march-2022

“You’re An Absolute Fraud”: CME CEO Terry Duffy Recalls First Meeting Sam Bankman-Fried In March 2022
by Tyler Durden
Monday, Nov 21, 2022

*** begin quote ***

Penn professor and forensic accounting expert Francine McKenna summed it up perfectly when she commented on Twitter: “Duffy went to Congress and told them FTX was a bankrupt business model and he was ignored just like he was ignored when he said Corzine knew he had used customer funds and knew where the missing $1.6 bullion was.

*** end quote ***

So why do we need “regulators”, politicians, or bureaucrats who don’t listen.

Same as Made-off and all the other Ponzi operators.

What a circus!

—30—

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MONEY: The coming default by the US FED / Treasury?

Saturday, November 12, 2022

https://www.zerohedge.com/markets/are-you-ready-coming-us-government-default

Are You Ready For The Coming US Government Default?
by Tyler Durden
Monday, Nov 07, 2022 – 07:20 AM

Authored by MN Gordon via EconomicPrism.com,

*** begin quote ***

The vast herd of investors are a deluded crowd. Following the Federal Reserve’s much anticipated 75 basis point rate hike on Wednesday the major stock market indexes jumped upward.

Optimistic investors keyed in on the Federal Open Market Committee (FOMC) statement and, in particular, the remark that the Fed, “will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation and economic and financial developments.”

*** and ***

In other words, this bear market may not bottom out until well into 2025. What’s more, the entire dollar based financial system will likely blow up sometime beforehand.

*** and ***

But many won’t recognize heavy handed monetary policy as reasons for their disappointment. The erosion of purchasing power can be subtle over long periods. Moreover, the effects of currency debasement policies extend to all corners of the economy.

*** end quote ***

Depends upon how you define default. What happens when no one wants to buy US Treasuries?

It’s going to be ugly. As the interest rate goes up, more of the Federal budget should go to interest on the debt. If they don’t cut, then more dollar printing.

A vicious cycle.

Sigh!

But what will be the form of it? Us tin foil hats are trying to guess will they just: “print”, “default on the bonds (i.e., tough <synonym for excrement> you suckers)”, or something involving a FED version of mandatory bitcoin (i.e., cash is recalled just like gold was)?

And, then what will the sheeple do?

—30—

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VOCABULARY: “Weaponized Governmental Failure”

Monday, October 24, 2022

https://www.zerohedge.com/political/weaponized-governmental-failure-primer

Weaponized Governmental Failure: A Primer
by Tyler Durden
Saturday, Oct 22, 2022 – 07:40 PM

Authored by Scott McKay via The American Spectator,

*** begin quote ***

Democrats rule over a ruin, but they rule…

*** and ***

Let’s call it Weaponized Governmental Failure. It’s the single most explicative factor in the breakdown of American political consensus in the 21st century, even though it’s been around since the latter part of the 20th century.

The simple definition of Weaponized Governmental Failure is this: it’s the deliberate refusal to perform the basic tasks of urban governance for a specific political purpose.

The crime and the graft and the potholes and the bad drainage, not to mention the spotty trash collection or nonexistent snow shoveling, aren’t incompetence. In fact, none of what you see in the American public sector is incompetence. The people responsible for it are quite highly educated and well-trained in their craft. You just need to understand what their craft is.

It’s a choice to do a poor job with the more mundane tasks of running a city, and an educated and purposeful choice at that. If you do those things effectively, after all, what you will get is middle-class voters moving in. Middle-class voters tend to choose to live in places where they can expect to get actual value out of their tax dollars — good roads, safe streets, functional drainage, decent schools, a friendly business climate, and a growing economy, among other things — and those things are hard to produce when you govern the way the Left does.

Put a different way, middle-class voters are a pain in the ass.

*** end quote ***

The politicians and bureaucrats are the drones of the human hive.

I have often posted that the Gooferment is immoral, ineffective, and inefficient. As well as untrustworthy. And to that “deliberately incompetent”.

Argh!

—30—

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VOCABULARY: “Gaslighting” — to sow self-doubt and confusion in their victim’s mind

Saturday, October 22, 2022

https://www.zerohedge.com/geopolitical/hopkins-gaslighting-masses

Hopkins: The Gaslighting Of The Masses
by Tyler Durden
Sunday, Oct 16, 2022 – 11:30 PM

Authored by CJ Hopkins via The Consent Factory,

*** begin quote ***

nstead, I want to focus on one particularly effective mind-control technology, one that has done a lot of heavy lifting throughout the implementation of the New Normal and is doing a lot of heavy-lifting currently. I want to do that because many people mistakenly believe that mind-control is either (a) a “conspiracy theory” or (b) something that can only be achieved with drugs, microwaves, surgery, torture, or some other invasive physical means. Of course, there is a vast and well-documented history of the use of such invasive physical technologies (see, e.g., the history of the CIA’s infamous MKULTRA program), but in many instances mind-control can be achieved through much less elaborate techniques.

One of the most basic and effective techniques that cults, totalitarian systems, and individuals with fascistic personalities use to disorient and control people’s minds is “gaslighting.” You’re probably familiar with the term. If not, here are a few definitions:

“the manipulation of another person into doubting their perceptions, experiences, or understanding of events.” American Psychological Association

“an insidious form of manipulation and psychological control. Victims of gaslighting are deliberately and systematically fed false information that leads them to question what they know to be true, often about themselves. They may end up doubting their memory, their perception, and even their sanity.” Psychology Today

“a form of psychological manipulation in which the abuser attempts to sow self-doubt and confusion in their victim’s mind. Typically, gaslighters are seeking to gain power and control over the other person, by distorting reality and forcing them to question their own judgment and intuition.” Newport Institute

*** end quote ***

IMHO the whole Covid fiasco from start to finish has been “gaslighting” the world’s population.  The politicians and bureaucrats did this to transfers huge amounts of wealth into Big Pharma. 

Argh!

—30—

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MONEY: Trustless Money

Monday, October 17, 2022

PayPal, Bail-Ins, & The Necessity For Trustless Money
https://www.zerohedge.com/crypto/paypal-bail-ins-necessity-trustless-money
— via my feedly newsfeed

PayPal, Bail-Ins, & The Necessity For Trustless Money
by Tyler Durden
Wednesday, Oct 12, 2022 – 12:08 PM

*** begin quote ***

Sure enough, the URL to the updated AUP was under the paypalobjects.com domain, which anybody in our business knows is real.

The document appeared to have been a PDF version of the forthcoming new AUP which was due to roll out in early November. It has since been replaced by the blank page however the original is still available via Archive.org

*** and ***

“It’s a bell that can’t be un-rung”.

I’ll tell you a couple other bells that can’t be un-rung:

When the Canadian government unilaterally seized bank accounts of not only the truckers who protested vaccine mandates in Ottawa (most of which are now gone anyway), but also designated the accounts of citizens who legally donated via GoFundMe or GiveSendGo as targets (sourced from a spreadsheet that somebody hacked from a third-party website, btw), that was a bell that can’t be un-rung.

*** and ***

The bells have been ringing for awhile:

In 2013, during the banking crisis in Cyprus, the first “bail-in” was enacted, when depositors’ savings were confiscated from their bank accounts to recapitalize a banking system that had over-leveraged itself through excessive bad debts to zombie companies.

*** and ***

How much of your wealth is reliant on trusting external, opaque systems and complying with their increasingly one-sided, ephemeral and arbitrary policies, expectations or whims?

Versus, how much of your own money do you have outside of the fiat banking, Big Tech operated monetary system?

Because one morning you may wake up to find out that’s all you have left.

*** end quote ***

Certainly seems that one should have some “wealth” outside of the financial / banking system.  That could be “cash”; although inflation makes that an expensive depreciating asset.  Metals that could be used as barter.  And, bitcoin, assuming that you have power and the inet.  Interesting that in Germany, “firewood” is the new gold!  Imagine not having heat or food in a First World country like Germany due to the complete and utter stupidity of their Gooferment.  

—30—

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