We discuss the increasingly bankrupt British government as a sinking ship on George Osborne’s river of denial. We also discuss the remedy for the ‘too many poor people’ for democracy problem being global trade deals like TTIP and TPP whereby elected leaders can claim ‘their hands are tied’ by contractual obligations. In the second half, Max interviews Helena Norberg-Hodge of LocalFutures.org about the Economics of Happiness in a time of rising inequality.
We discuss the looming crisis as investors chasing yield have piled into obscure and less-liquid assets leading to sell-offs in the more liquid markets during panics as investors sell what they can. We also discuss Fannie Mae & Freddie Mac and the FHFA (Federal Housing Finance Agency) lowering bank obligations on buybacks in order to spur more subprime lending. In the second half, Max continues his interview with Mitch Feierstein of PlanetPonzi.com about financial markets on the precipice.
In this week’s Metals & Markets, The Doc & Eric Dubin break down the week’s action discussing:
First Majestic Silver takes on the cartel-holds back 35% of Q3 silver production- CEO Keith Neumeyer issues call for silver miners to form their own cartel to put an end once and for all to paper manipulation
Russian/ US Geopolitical crisis escalates-Putin warns of MAJOR CONFLICT with US, loss of reserve currency status for dollar
Silver market tightens- premiums are on the rise as Royal Canadian Mint begins allocating silver maples, major private mints running production delays on PHYSICAL metal
Gold predictably capped at $1250-whats next for gold & silver?
Stacy Summary: I’ve read this recent blog post by Adam Curtis which has left me feeling quite nauseous! The creepiest bit is the part highlighting Herman Kahn’s vision from 1966 of how to create utopia without violence. Before the clip, here is the info you should read about Herman Kahn who was the founder of the Hudson Institute, an employee of the RAND Corporation and one of the inspirations for the character Dr. Strangelove.
Watch the clip here (hopefully non-UK can also watch?) in which he (along with his assistant) sets out how to create a Utopia without violence:
Obviously, this ‘Utopia’ has been enacted as populations have willingly given up their privacy in exchange for this ‘Utopia.’
Adam Curtis then goes on to highlight a clip with BF Skinner, also from the same 1966 film on Utopia.
The film records an experiment in a mental hospital in San Bernadino – California. The patients are given rewards in the form of plastic fake money if they do what the doctors consider the right social behaviour. They can then use that money at meal-times to buy their way onto a “nice” table – with tablecloth and flowers.
Those without the rewards have to eat – as one of the nurses puts it, “in less elegant conditions”.
What emerges in the hospital is a new, ordered hierarchy created by a system of reward – but one where the patients don’t feel controlled – instead they feel “empowered” because it was through their actions that they received the reward. Skinner makes clear in the film that he sees this as a model for how to run a future kind of society.
Watching these sections of the film does make you think that what is being described is spookily close to the system we live in today. And that maybe we have misunderstood what really has emerged to run society since the 1980s.
The accepted version is that the neo-liberal right and the free market triumphed. But maybe the truth is that what we have today is far closer to a system managed by a technocratic elite who have no real interest in politics – but rather in creating a system of rewards that both keeps us passive and happy – and also makes that elite a lot of money.
In the world of fundamentalist Islam, a woman who refuses to submit is an unveiled threat, especially if she knows how to follow the money
In 1978, Janet Tavakoli, born and raised in the United States, moved to Iran with her husband. The large class divide, grand ambitions of the insecure Shah, discontent among religious leaders, brutality of the dictatorship, and, crucially, an old grudge against the United States, were about to spark the Islamic revolution. A year later, she left her husband and Iran behind and began her career as a globally renowned financial derivatives expert. In 1993, she was in the World Trade Center complex when terrorists detonated a bomb in the parking garage of the North Tower.
In September 2014, Tavakoli asked His Excellency Iyad bin Amin Madani, Secretary General of the Organization of Islamic Cooperation (OIC), why criminals from so many different countries and cultures continue to band together in the name of Islam to commit mayhem and murder authorized by the highest levels of Islamic clergy.
He dodged the question.
Unveiled Threat is her answer based on her personal experiences and study of the roots of terrorism. Tavakoli follows the trail of money that funds the mayhem.
Permanent TSB faces a capital shortfall of between €700m and €800m under an extreme case, according to analysts at Investec and Merrion Capital.
Mr Noonan declined to comment on the results of the stress tests, while officials from the Central Bank, PTSB, Bank of Ireland, AIB, Ulster Bank and Merrill Lynch also declined to comment. The Government would be able to switch its €400m of contingent convertible notes, or CoCos, in Permanent TSB to equity as an initial measure to reduce any capital need, according to Emmet Gaffney, an analyst at Investec in Dublin.
The lender’s shortfall shouldn’t exceed €700m “even in an extremely bearish scenario,” he said. Permanent TSB ‘failed’ tough ECB bank stress tests
- ‘Yes’ Campaign Launch
- Paper Decays, Gold Holds Its Value
- ‘No’ Campaign Launch – Alphabet Soup
- Unsaleable Gold Like an Unusable Fire Extinguisher?
- Swiss Electorate 5.2 Million
- Double Majority Including Cantons
- Referendas by the Dozen
- Sometimes There are Shock Results
The pattern of central bank covering the debt is clear. The lesson is that central banks can apply paper patches to the failed banks, and buy more time, then repeat the process on the next failed bank event. No limit to their bank patches seems to be in force. The banker cabal can continue endlessly since their patches are based on paper solutions, fiat paper money spew, and they control the paper output. They are the masters of the House of Paper. The paper mache solutions can continue in a seemingly endless manner,but not in the Gold market. The intervention and suppression in the Gold market is finite. It requires Gold bullion, the physical ingot bars, in order to execute the perpetuated interference and alteration to this financial niche market. The manipulation is finite, and it is coming to an end. When the Shanghai shock comes,all the Paper Gold structures will fall, all the FOREX derivatives will collapse, all the control rooms will go into panic mode.