The Truth About Markets – 28 November 2015

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[KR842] Keiser Report: American Way! Bail out Bankers

We discuss short term gains for long term losses as our future chickens come home to roost. They discuss stock buybacks, CalPERS pensions shortfall and Osborne’s not very long term economic plan. In the second half, Max interviews Tina Louise Rothery of Nana Bloc about this weekend’s climate change and anti-fracking protests.

Blockchain notary service for Estonian e-residents

World’s first virtual nation introduces blockchain notary service for Estonia IHB News™

“e-Residency offers to every world citizen a government-issued digital identity and the opportunity to run a trusted company online, unleashing the world’s entrepreneurial potential.”

Read about Estonia’s blockchain notary service

Coming of Age: China’s Yuan Joins SDR Basket As IMF Reserve Currency

Christine Lagarde and the IMF Executive Board recently announced their intention to include the Chinese renminbi (RMB) in the Special Drawing Rights’ (SDR) valuation formula.  This would bring the Chinese currency into an exclusive group – alongside the US dollar, the euro, the British pound and the Japanese yen - of 5 global currencies that make up the IMF’s own reserve currency.  

So, what will this promotion really mean for the yuan?

GoldCore: Bank teller counts Yuan
A bank teller counts out Yuan
Read more ›

Hurry while stocks last by Sketchaganda


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[KR841] Keiser Report: Government Giving Burglary Bad Name

We carry two bucks with them in case they get shaken down by the police. We also discuss New York regulators fining recidivist bankster, Barclays, for ripping off clients with the Last Look algorithm which automatically cancelled trades unfavourable to the bank’s own positions. In the second half Max interviews Barry Silbert of Digital Currency Group about bitcoin, blockchain and the near future prospects for both.

Governments are pushing an agenda against Encryption

Governments around the world are pushing an agenda which would see the banning of end-to-end encryption: IHB News™

“For businesses operating in Bitcoin, cash flow, supply, demand and other competitive information would be exposed to their rivals. In this case, Bitcoin is a worse option than traditional finance channels.”

Read more about why they are banning of end-to-end encryption

The Beginning of World War III? The Fall Crisis Period Heats Up With NATO Shootdown of Russian Jet


At the beginning of October, nearly two months ago, I wrote a blog entitled, “World War III, the TPP and a New Global Police Force – Welcome to the Fall Crisis Period.” Read more ›

Jim Willie: Live, Dry, and DEAD- 3 HUGE Developments in the Silver Market

According to Hat Trick Letter Editor Jim Willie, 3 VERY IMPORTANT developments have just occurred in the Silver market…
Click here for more from the Golden Jackass on 3 HUGE Developments in Silver:

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Yet More Rigging By Big Banks – This Time It’s Interest Rate Swaps

The abuse of power is staggering.

Time and time again over the last number of years the largest global banks have been found complicit in the manipulation of key rates, indices and markets. Now, a large and important pension fund has taken the largest of banks to task and filed a class action lawsuit alleging conspiracy to thwart competition and extract large fees and margins from the vast and critical interest rate swap market. The banks “have been able to extract billions of dollars in monopoly rents, year after year, from the class members in this case,” the suit states. Read more ›

Why Even a Modest Disruption Will Shatter the Status Quo

Consider this clipping from the August 1932 San Francisco Chronicle newspaper:

“Reduction of salaries of municipal employees and limitation of city positions to only one member of a household will be sought by (Supervisor) Adolph Uhl in two amendments to the San Francisco charter. The salary reductions would run from 2.5% for the lowest bracket to 25% on salaries of $500 a month or more.”

Thanks to the handy BLS Inflation Calculator we know that $500 a month in 1932 is the equivalent of $8,680 per month (about $104,000) a year.

Imagine the tempest of fury and outrage that would arise should this be proposed the next time local governments run short of funding. Nowadays, the calls would not be for sacrifices from the highly paid public servants but for tax increases of 25% to maintain public-servant wages and benefits while the private sector economy implodes.


This unwillingness to sacrifice for the greater good is now endemic. This is the result of two powerful social forces:

1. The loss of any shared sense of purpose or social good worthy of sacrifice.

2. The ascendancy of maximizing private gain by whatever means are available as the primary purpose and goal of the Status Quo.

The dominance of maximizing private gain by whatever means are available leaves the Status Quo brittle and fragile. Since everyone reckons any sacrifice should fall on someone else, the only possible result is disunity and bitter conflict over modest sacrifices that are too inconsequential to save the system from collapse.

Wishful thinking, mindless optimism and blind adherence to failed ideas also make the Status Quo brittle and fragile. As Michael Grant noted in his book The Fall of the Roman Empire:

There was no room at all, in these ways of thinking, for the novel, apocalyptic situation which had now arisen, a situation which needed solutions as radical as itself. (The Status Quo) attitude is a complacent acceptance of things as they are, without a single new idea.

This acceptance was accompanied by greatly excessive optimism about the present and future. Even when the end was only sixty years away, and the Empire was already crumbling fast, Rutilius continued to address the spirit of Rome with the same supreme assurance.

This blind adherence to the ideas of the past ranks high among the principal causes of the downfall of Rome. If you were sufficiently lulled by these traditional fictions, there was no call to take any practical first-aid measures at all.

A dependence on debt, low interest rates and financial legerdemain also render the Status Quo extremely fragile when the debt become unpayable and low interest rates no longer boost additional borrowing.

The wishful thinking is that we can borrow limitless sums and leave the debt burden on our children and grandchildren with no consequences. But once the system is dependent on massive borrowing, it becomes acutely sensitive to default, as consumption collapses once consumers can no longer borrow to consume, and asset bubbles engorged by debt-assets (bonds, student loans, mortgages, subprime auto loans, etc.) burst.

Lest you think this implosion from a modest decline in debt and new borrowing is preposterous, please examine this chart of total credit: that tiny wobble in 2008 very nearly collapsed the entire global financial system.

Any modest reduction in debt, tax revenues, consumption or new borrowing will bring the entire Status Quo crashing down. This is the bitter fruit of rampant financialization and the ascendancy of maximizing private gain by whatever means are available.

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Gold Market Goes Quiet – Do We Hear The Echo Of The Bottom?

Demand for gold is soaring according to the World Gold council’s latest report. The report shows that overall worldwide demand for gold rose by a very significant 33% with the US, Europe, China and Russia all stocking up and pushing demand. Central bankers, lead by Russia, are stocking up aggressively.

With fundamentals like these, why are gold prices not soaring? Crowd psychology might be one reason. Sol Palha of Technical Investor explains.

GoldCore: Year on Year Changes in Gold Demand, by Category
Year-on-Year Changes in Gold Demand, By Category (Source: WGC)

Read more ›