Financial Wisdom Begins With This

Confucius gets credit for a saying that has been on men’s lips since the first lie was told: “The beginning of wisdom is to call things by their proper name.”

Fraud, malfeasance, systemic risk, and even fundamentalist Islamic terrorism have been all but scrubbed from Washington’s lexicon, courtesy of the Ministry of Truth.

Today’s Wall Street Journal published a short op-ed by Robert Rubin. His commentary is fine as far as it goes, but in what seems to be a bid for a post in the next Democratic administration, he omits his role in the financial crisis. In Decisions, I jog your memory.

Decisions: Live and Death on Wall StreetBook blurb: In New York, the Federal Reserve Bank hides damaging information about too-big-too-fail banks from the public eye. A prominent bank CEO seems on the verge of a nervous breakdown.

In Washington D.C., a former Wall Street regulator checks into a hotel using the name of a hedge fund manager for an illicit meeting with a prostitute. In a D.C. suburb, the CFO of a beleaguered mortgage giant chooses a drastic personal end to “relentless pressure”.

In a picturesque suburb of Zug, Switzerland, the CFO of a major insurance company decides to end his life. In London, a financier kills himself in a way he once said he never would.

Janet Tavakoli shines a bright light on the money-driven culture of Wall Street and Washington, and the life and death consequences of our decisions that put profit above all.

Release date: April 4, 2015. Approximately 14,000 words of text (not including front and back matter and references)


Is The Internet Of Money The Internet Of You: IOU?

You’ve heard of the IOT – the Internet Of Things.  How about the Internet of Money?  Who needs U.S. dollars or Bitcoin or Ripple or even gold for that matter, when the new money global standard ledger being offered up is YOU – monetized.

http://tradewithdave.com/?p=23542

 


Forget The $1 Trillion Platinum Coin–Here’s the $10 Trillion Stone Coin

The point I’m making with the $10 trillion stone coin is that if money is a social contrivance, then it should be distributed to those creating goods and services.

You’ve probably heard of the $1 trillion platinum coin proposal: the basic idea is the U.S. Mint issues a $1 trillion platinum coin, and returns the difference between the cost of minting the coin (trivial) and the face value attributed to the coin ($1 trillion) to the United States Treasury General Fund.

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[KR723] Keiser Report: Sovietization of capitalism

In this Keiser Report, we discuss removing the document to remove the men who rule our bureaucratic world – from their mountains of derivatives paperwork, which has added nothing to global GDP to the piles of QE, which has added merely more paper gains to an over-bloated stock market.

In the second half, Max interviews David Graeber about his new book, The Utopia of Rules: On Technology, Stupidity and the Secret Joys of Bureaucracy. They talk about the Sovietization of capitalism as more and more paperwork and more and more contracts are required for the simplest of every day financial exchanges. Max introduces the concept of a Fee-ocracy which believes in the ideology of fee-ism, whereby spinning enough contracts and debt makes us all rich as epitomized by the practice of Quantitative Easing which is printing paperwork.


Gold Holdings of Eurozone Rise to 10,792 Tonnes – ECB’s “Reserve of Safety” Accumulated

Gold Holdings of Eurozone Rise to 10,792 Tonnes – ECB’s “Reserve of Safety” Accumulated

The Euro zone raised its gold holdings by 7.437 tonnes to 10,791.885 tonnes in January, International Monetary Fund data released overnight showed.

The rise in gold holdings was small in tonnage terms and in percentage terms  – especially when viewed in the light of the recently launched ECB’s EUR 1 trillion QE monetary experiment.

goldcore_bloomberg_chart2_24-02-15
Nevertheless, the rise in Euro-area gold holdings shows how the ECB continue to view gold as an important monetary asset. Mario Draghi said of gold in October 2013 that gold is a “reserve of safety” that “gives you a value-protection against fluctuations against the dollar.”

Draghi told an open forum at Harvard’s Kennedy School of Government, why central banks want gold and what value it offers. He said that there were “several reasons” to own gold including “risk diversification”.

The increase in reserves came at a time, January, of rising gold prices amidst the reemergence of the Greek debt crisis.

It may signal that the ECB and Eurozone are set to embark on a gold accumulation programme. More likely, it is simply a way to bolster confidence in the euro due to increasing doubts about the viability of the single currency.

goldcore_bloomberg_chart4_24-02-15

Russia sold a very small amount of gold in January for the first time since March. Russia lowered its reserves to 1,207.7 tons from 1,208.2 tons, ending nine months of consecutive purchases, the IMF data showed.

Russia, the world’s fifth-biggest gold holder, had been adding to its holdings for many years in order to bolster the rouble.

Before last month, Russia had bought at least 18 tons a month since September and more than tripled its holdings since 2005.

Turkey’s gold reserves fell marginally last month along with Mexico and Belarus, the data showed.

Kazakhstan increased gold reserves for the 28th straight month, while Ukraine added to holdings for the first time since August, the data showed. Kazakhstan boosted holdings to about 193.5 metric tons from 191.8 tons a month earlier as Ukraine’s rose to 23.9 tons from 23.6 metric tons.

Kazakhstan’s hoard rose 33 percent in the past year alone and more than doubled in the past three years.

Ukraine’s assets dropped in November to the lowest level since 2005 as its foreign currency reserves contracted and the hryvnia slumped amid the conflict and collapsing economy. There were also concerns that the newly installed government had acquired the gold and moved it offshore, out of Ukraine.

Central banks are some of the largest buyers of gold today – see table above. Central banks have been adding to their gold reserves for the past five years, a reversal from two decades of selling since the late 1980s. They were net buyers in 2014 and are set to be net buyers again 2015.

Governments bought 477.2 tons of gold bullion in 2014, the second-biggest increase in 50 years, and purchases will be at least 400 tons this year, the World Gold Council has estimated.

The smart money will continue to follow the lead of central banks internationally and gradually accumulate gold and dollar, euro or pound cost averaging into an allocated and segregated physical gold position.

Daily and Weekly Updates Here


MARKET UPDATE
Today’s AM fix was USD 1,195.50, EUR 1,057.97 and GBP 774.59 per ounce.
Yesterday’s AM fix was USD 1,193.50, EUR 1,055.17 and GBP 777.12 per ounce.

Gold rose 0.09% percent or $1.10 and closed at $1,202.10 an ounce on yesterday, while silver climbed 0.56% percent or $0.09 closing at $16.32 an ounce.

Gold in US Dollars - 5 Years (GoldCore)

Spot gold was down 0.4 percent at $1,196.80 an ounce in late morning in London, after prices were flat in Singapore. Silver was down 0.3 percent at $16.24 an ounce, platinum slipped by 0.2 percent to $1,158.55 and palladium fell 0.2 percent to $783.15.

Gold slipped below $1,200 an ounce today but recovered from its 7 week low hit yesterday as optimism is abound that the Greek bail-out deal will be finalized today.

The close above $1,200/oz yesterday was encouraging from a technical perspective.

Some speculated that Federal Reserve Chairperson Janet Yellen’s pending congressional testimony added some pressure on the yellow metal and strengthened the U.S. dollar.

Yellen will address the Senate Banking, Housing and Urban Affairs Committee at 10 a.m. on Tuesday (EST) and the House Financial Services Committee on Wednesday.

Market participants are looking for any further guidance on the timing of when the U.S. Fed may raise interest rates.

Yellen’s European counterpart ECB chief Mario Draghi is also set to make a speech today at 3 p.m. CET unveiling the new €20 banknote in Frankfurt.

The world’s second largest consumer of gold, China, is still celebrating its Lunar New Year holiday today and returns tomorrow which should be gold supportive.

Gold had its biggest monthly advance in three years in January prior to giving up those gains in recent weeks.

Gold climbed 8.4 percent in January in London as policy makers in Europe and Asia signaled more stimulus to battle slowing economic growth and investors speculated that Greece may be forced to quit the euro.

Bullion traded at $1,195.80 an ounce on today. With gold being some 37 percent below the nominal record high set in 2011, contrarian investors continue to accumulate on weakness.

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TROIKA STOCKHOLM SYNDROME

TROIKA STOCKHOLM SYNDROME


CONSPIRACY THEORY

CONSPIRACY THEORY


League table of Debt-to-GDP for countries around the world


Another U.S. Veteran Passionately Pleads – “Please Don’t Thank Me for My Service”

Screen Shot 2015-02-23 at 10.33.29 AM

Interestingly and satisfyingly, it appears the phony “thank you for your service” comment is seen as the empty, thoughtless platitude it is by a large amount of U.S. veterans. Rather than saying “thank your for your service,” it appears increasingly clear the appropriate sentiment should be something like, “I’m really sorry American leadership carelessly sacrificed your life for no good reason.”

Don’t take it from me though…

Read the rest here.

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Grexit Drama Greenlighted for a 5th Season–New Characters, New Plot Twists

Season 5 of the popular drama GREXIT is now in production.

The political-financial drama Grexit was greenlighted for a 5th season, as new characters and new narratives have reinvigorated a series that was clearly flagging in mid-2014. Given the sleepy subplots that dominated the 2014 series, industry insiders were anticipating a cancellation.

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Help to design our free @start_coin scratch cards that will be given out to the public


TNE MYTH OF TSIPRAS

THE MYTH OF TSIPRAS


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