Emergency G-20 Finance Meeting: Has The Financial Collapse Begun?

The G-20 central planners have scheduled an “emergency” financial meeting.
Is the global economy is on the verge total collapse?

Click Here For Full Coverage On the G-20 Emergency Finance Meeting: 

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More Americans Living With Parents Than With a Romantic Partner For First Time Since 1880

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Yesterday, the Pew Research Center returned to the headlines, with a detailed analysis of another disturbing trend. You know something big is happening when you start breaking records going back to the 19th century…

Read more here.

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Fox Poll: both Trump and Clinton seen as corrupt

The Fox News poll finds majorities of voters feel both frontrunners lack strong moral values and will say anything to get elected.

The poll also found that voters feel the two leading candidates lack honesty, empathy, and strong moral values.

Majorities also think the main reason that Clinton (57 percent) and Trump (56 percent) are running is for themselves — rather than for the country.

And finally, by a 49-37 percent margin, voters say Clinton is more corrupt than Trump.

Read more: Fox News Poll: both Trump and Clinton seen as corrupt

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“Only Money Outside Of the Matrix” Will Survive …

“Gold and silver bottom is in”, renowned silver analyst David Morgan tells Max Keiser on the Keiser Report and warns about paper and digital proxies for money and gold. Morgan, also known as the ‘Silver Guru’ of the TheMorganReport.com, talks to Max about the gold, silver and global bond markets and the ponzi scheme that are these markets.

hackedAlso covered in the show are central banks creating a financial and economic system not free for its participants, the end of hegemony spotted in the price of Russian bonds and the Bank of Japan failing, yet again, to get any sign of life from the Japanese economy.

Morgan warns about the importance of owning physical gold coins and bars rather than paper or digital proxies for bullion and money. He points out how gold investors lost money in the MF Global fiasco and were exposed by the ABN AMRO unallocated gold account fiasco.

ABN AMRO, the largest Dutch bank and one of the largest banks in Europe announced in a letter to clients in April 2013 that that it would no longer allow clients to take delivery of their precious metals including gold, silver, platinum, and palladium bullion coins and bars. Instead, they paid account holders in a paper currency equivalent to the current spot value of the precious metal.

Thus, instead of legally owning a risk free, physical asset (a bullion bar or a bullion coin), the bank’s clients were unsecured creditors and were exposed to the bank and the financial system – somewhat defeating the purpose of owning precious metals.

The move highlighted once again the importance of owning physical bullion either in your possession (be that be in a safe or vault in a house, in the attic, under the floorboards or elsewhere in your possession) or in a secure vault in a country that is stable and respects property rights.

As Morgan concludes the interview, he points out that physically held and legally owned gold and silver bullion coins and bars is the

“Only money outside of the matrix, only money outside of the system and only money throughout 5,000 years of history that people trust … ”

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Learn the risks inherent in paper and digital gold

 

 


Is a $68 TRILLION “BIBLICAL CRASH” Dead Ahead? Jim Rogers Issues a DIRE WARNING

A $68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans…

Click Here For Jim Rogers’ Dire Warning On the BIBLICAL FINANCIAL COLLAPSE DEAD AHEAD:

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The Choice For Venezuela Is Stark: Either Print Money and Fail or Establish Sound Money (USD to the Rescue?)

Let’s start our analysis of Venezuela’s economic plight with two exhibits: Exhibit A is a chart of the market (free) exchange rate of the Venezuelan Bolivar and the U.S. dollar (USD), and Exhibit B is a chart of the USD.

Back in 2003, when the writing was already on the wall, one USD bought 1.6 Bolivars. Today, it takes over 1,000 Bolivars to buy one U.S. dollar. Though the official rate is 10 Bolivars to one USD for subsidized goods and 416 to the USD for everything else, the street exchange rate is 1,050 Bolivars to the dollar.

(The official exchange rate has multiple levels, creating multiple layers of confusion and opportunities for graft/corruption.)

While Venezuela’s currency was in a free-fall to oblivion, a fundamental revaluation of the U.S. dollar pushed the USD up about 20% in the past two years.

Once a currency is mortally wounded, the government has a stark choice: either print more money and try to stimulate a dying economy by spending the fast-depreciating money, or relinquish the dead currency and establish a sound currency that will attract capital to the country’s economy.

There are only two paths: either the state/central bank creates or borrows money into existence in an attempt to “print and deficit-spend our way to prosperity,” or the state accepts sound money that it cannot print or borrow into existence. This stability soon attracts private capital.

If the state/central bank attempts to create capital by printing or borrowing money into existence, private capital will flee because the writing is on the wall: the currency and economy are doomed. You can create currency out of thin air, but you can’t create sound money out of thin air or real capital out of thin air.

If the state/central bank surrenders the money-printing press, and accepts the limitations of a currency it can’t print into hyper-inflation, then private capital will enter the economy because it can trust that the currency can’t be devalued by politicos or the central bank.

I was interested in a recent article on Zero Hedge, Will Venezuela Be Forced To Embrace The Dollar?, for it followed my suggestion of four years ago that Greece should adopt the U.S. Dollar as its new currency (May 14, 2012).

There are a number of reasons why adopting the USD is a natural choice for any Venezuelan government that is not bent on self-destruction.

Adopting the U.S. dollar would deprive the Venezuelan state of its power to devalue its currency. The basic idea behind devaluing one’s currency is to boost one’s exports by making one’s goods cheaper in other currencies.

But since Venezuela has few exports other than oil, which typically trades in USD, there is no export-driven reason to devalue the currency.

A gold-backed currency would be sound money, but does Venezuela have enough gold left to back a new currency? Perhaps, but if there are pervasive doubts about the state’s policies and the ability of the Venezuelan economy to survive its present woes, everyone will quickly convert their currency into gold, and the nation’s gold reserves would quickly be depleted.

Many people see the ability to devalue a currency as necessary to attract investment. The basic idea here is that if a currency gets cheap enough, foreign capital will smell a bargain and flood into the country, boosting growth.

I think this is absolutely backwards: what capital will sniff out is the possibility that a cheap currency will get even cheaper. As I always note, no nation has ever devalued its way to prosperity or influence. Devaluing one’s currency impoverishes every holder of the currency, which invariably includes the bottom 99.9% of your population.

The practicalities also favor the U.S. dollar. With $1.4 trillion of actual physical cash in circulation globally, there is enough USD cash to grease daily commerce in Venezuela, which has about 30 million residents and a GDP of $131 billion (at the official exchange rate, about the size of Nevada’s economy) or purchasing power parity (PPP) GDP of about $500 billion, about the size of North Carolina’s economy.

The USD is already recognized and used as money in Venezuela (and virtually every other nation on the planet), and so the infrastructure is already set up to maintain a pricing mechanism in USD.

The current government of Venezuela has failed. That much is obvious. The only unknown is what sort of governance eventually replaces it and at what cost in human lives and suffering.

The new government, whether it labels itself Socialist, Communist, free-market or a hybrid of various ideologies, would immediately establish sound money and financial stability by adopting the U.S. dollar as its currency.

Since the USD is already a global currency, the new government would not need the American state’s permission; it could announce the adoption, bank the dollars being paid for Venezuelan oil and get about reorganizing the economy for the betterment of Venezuela’s people based on a currency that is recognized as a means of exchange everywhere.

A Radically Beneficial World: Automation, Technology and Creating Jobs for All is now available as an Audible audio book.

My new book is #2 on Kindle short reads -> politics and social science: Why Our Status Quo Failed and Is Beyond Reform ($3.95 Kindle ebook, $8.95 print edition)For more, please visit the book’s website.

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Another Brilliant Analysis on Why Trump Will Beat Clinton

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To boil down the above paragraphs into my own words: Clinton represents a cold, corrupt, rent-seeking technocrat; a skilled operator within the callous, abstract phantom economy, while Trump, for all his flaws, has come to symbolize the disintegrating real economy. A place of blue collars and bricks and mortar; a place where people still work with their hands and come drenched with perspiration, their pants covered in dust. While the reality of Trump is completely distinct from what he represents, he pays homage to that world, and versus someone as discredited and phony as Hillary Clinton, this will be sufficient (although it wouldn’t work as well if his opponent was Bernie Sanders, who exudes authenticity and empathy for those Americans left behind).

Read more here.

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SearchTrade Launches, Starts Paying Users Bitcoin to Search the Web

SearchTrade launch on IHB

SearchTrade is similar to other popular search engines in one way: advertisers pay it to display marked promotions among search results.


[KR918] Keiser Report: Bill Clinton’s ‘Economic Miracle’

We discuss the role that Alan Greenspan played in the so-called miracle economy of Bill Clinton’s reign. In the second half Max interviews author, Nomi Prins of NomiPrins.com, a former Goldman Sachs banker, about what she saw during her recent visit to Brazil. They discuss the role of private versus public banks and US versus Chinese banks.


Is the Next Soros-Backed ‘Color Revolution’ Red or Golden?

On today’s episode of Double Down, hosts Max Keiser and Stacy Herbert are joined by market analyst, Stephen Kendal, to discuss billionaire investor George Soros’ double down on his bet against the S&P500 and long gold.

To listen to this amazing podcast, click on image below!!

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The War on Cash Is a War on Your Freedom to Opt Out

I’ve covered the war on cash i.e. the proposed elimination of cash, a number of times, for example, The War On Cash: Officially Sanctioned Theft (June 13, 2015)

Our first question should be: just how big a share of our financial universe is cash? The answer is: vanishingly small. Look at this chart of total credit in the U.S. economy–$63 trillion–and total cash: $1.45 trillion. Cash is the thin red line at the bottom of the chart–it barely registers.

Meanwhile, total household/non-profit-sector financial assets total $70.3 trillion (net $55.8 trillion minus liabilities of $14.5 trillion).

Total money (currency in circulation and demand deposits) is over $10 trillion.

If cash is such a small share of money and assets, why are governments so keen to ban cash?

The official answer is to limit money-laundering by drug traffickers and criminals. But laundering money through official banking channels is not that difficult, so cash is not necessary for laundering.

Another official reason is tax evasion. But tax evasion is now so easy, once again cash is not required: The World’s Favorite New Tax Haven Is the United States:Moving money out of the usual offshore secrecy havens and into the U.S. is a brisk new business.

THE BIGGEST TAX HAVEN OF THEM ALL? THE U.S., FATCA AND THE CRS “By resisting new global disclosure standards, the U.S. is creating a hot new market, becoming the go-to place to stash foreign wealth. Everyone from London lawyers to Swiss trust companies is getting in on the act, helping the world’s rich move accounts from places like the Bahamas and the British Virgin Islands to Nevada, Wyoming, and South Dakota.”

The irony of the situation has not been lost on at least one foreign observer – a Swiss lawyer quoted in the Bloomberg report:

“How ironic—no, how perverse—that the USA, which has been so sanctimonious in its condemnation of Swiss banks, has become the banking secrecy jurisdiction du jour. That ‘giant sucking sound’ you hear? It is the sound of money rushing to the USA.”

So if large-scale money-laundering and tax evasion no longer require cash, why are governments so anxious to ban cash? The simple answer is to eliminate small-time tax evasion by making every transaction visible to authorities.

This raises the obvious question: how much extra tax revenue would be raisedby eliminating cash purchases at swap meets, garage sales, farmer’s markets, etc.? Let’s face it–the revenues gained would be modest, as many of the people using cash don’t earn enough to pay much income tax anyway.

As for drug-related transactions–does anyone seriously think a buyer of street heroin is going to log the sale electronically via a debit card? Or that the dealer would digitally transact the purchase as “heroin, sold by ABC Dealers, Inc.”?

(Legalizing drugs and treating addictions as a medical issue would eliminate the illegal drug trade in one fell swoop. Look at Portugal’s positive experience as a real-world guide.)

The real goal behind calls to eliminate cash is to limit our freedom to opt out: to drop out of the entire must-get-a-paycheck-and-pay-payroll-taxes lifestyle that supports the status quo.

As I have often noted, a very common response to the decay of the Roman Empire was to opt-out / drop out: in effect, stop working for the Man, stop paying taxes and stop borrowing money.

As taxes rose to crushing levels, productive people fled to monasteries or the relative protection of large estates (whose wealthy owners naturally evaded taxes), or simply went off the grid.

This is known as Voting With Your Feet (August 14, 2015).

There are many ways to opt out, and most involve reducing expenses, living low to the ground and developing multiple income streams. Cash is integral to this lifestyle, and not just for purposes of tax evasion: cash is a proxy for the freedom to maintain some privacy in an era of Big Brother repression, surveillance and the suppression of dissent.

For the record, I am a proponent of rendering under Caesar that which is Caesar’s, i.e. paying all taxes owed to the various levels of government. Evading tax is personally beneficial, but it simply increases the burdens on those who are unable to skim/scam their way out of taxes.

Ultimately, the war on cash is all about increasing control by eliminating privacy and the freedom to abandon the debt-serf rat-race. I should have the right to conduct my business with cash and pay my taxes digitally. Cash is necessary to maintain some modicum of privacy in an age of all-pervasive financial repression, surveillance and the suppression of dissent.

I recently discussed the war on cash with Adam and Daniel of the Wake Up Podcast: The War on Cash with Charles Hugh Smith (YouTube)

Readers of my book A Radically Beneficial World will not be surprised to find that I see crypto-currencies as playing an increasingly important alternative role in a world of state-sponsored financial repression.

My new book is #2 on Kindle short reads -> politics and social science: Why Our Status Quo Failed and Is Beyond Reform ($3.95 Kindle ebook, $8.95 print edition)For more, please visit the book’s website.

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First Soros… Now Jim Rogers Predicts Trillion-Dollar ‘Biblical’ Crash

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Last year, we were the first financial site to explain how the Shemitah seven-year cycle would have an important and disastrous effect on the markets. The Shemitah ended in the third quarter of last year and just as we predicted, it was the worst quarter in worldwide stock markets since the last Shemitah in 2008. Read more ›