The Engine of Inequality: Privilege

We all know wealth/income inequality is soaring. I’ve published many entries on this topic (please see the three charts below as a refresher), and it’s clear there are multiple sources of rising inequality: globalization and technology, which concentrate gains in relatively few hands, and inflation, which reduces the purchasing power of stagnating real wages.

But the dominant source of inequality is privilege–specifically, privilege that is institutionalized by the status quo.

This engine of inequality–institutionalized privilege–is the topic of my new book, Inequality and the Collapse of Privilege($3.95 Kindle ebook, $8.95 print edition).

The word “privilege” is tossed around rather loosely. What does it mean in economic and social terms? I differentiate between privilege, which is unearned, and advantaged, which is earned.

To reverse rising inequality, we must dismantle the institutionalized power of privilege and create universally accessible pathways to the advantages of building capital. A key part of my analysis is causally linking rising inequality, poverty and privilege.

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Jim Willie Issues Financial Collapse Warning: “Fuse Has Been Lit!”

Jim Willie Has Issued A Systemic Lehman Event Warning,
Except This Time, The Entire Global Financial System Will Erupt Like A Debt Volcano…“:

 

Many are the potential fuses to be lit, which would create the conflagration, the massive bonfire of the bond vanities and bank charades. Many are the fuses lying around, all criss-crossed, all exposed, all overlapping each other in highly dangerous manner.

If any single fuse is lit, then several will light and the detonation arrives. It is unavoidable since the financial world is so deeply interwoven. Never in modern history has the global financial structure been so badly weakened, so totally corrupted, so thoroughly undermined by control mechanisms, so intensely defended by sanctions even war.

In 2007 and early 2008, the Jackass warned of a mortgage bust that would alter the global system forever. It happened with far reaching consequences which endure to this day.

In recent months the Jackass is warning of a Systemic Lehman event, where several major national systems are at heightened risk of a similar bust like what happened in September 2008.

 

Except this time, the entire global financial system will erupt like a debt volcano, with several epicenters, all located in the West. The big Western banks are all lashed together, all tied to each other. The banker cabal believed that the interconnectivity within their bank structures would make them all immune to failure risk.

The reality is that the failure of any one major bank guarantees the systemic breakdown of all of them. It will erupt like a cave-in of the flying buttresses at the Notre Dame in Paris, with numerous bank (churches) collapsing, all located in the West.

Gold Market Arbitrage Breakdown

Ever since the Shanghai Gold Exchange opened and the London Gold Fix was exposed as a grand fraud, the pressures have risen on arbitrage within the gold market. A hidden battle has been waged, sometimes intense with big gaps, often mild with smaller gaps, between the East and West. The arbitrage gap is currently around US$20-25 per ounce in price, but could change quickly and suddenly. It is likely to rise to hundreds of dollars, but gradually, and later perhaps in large chunk increments. The result will be the wreckage of paper Gold & Silver bullion markets.

 

Big players would be free to buy cheap gold in London, sell dear in Shanghai, and bust the fraudulent market wide open. When the gold market arbitrage undergoes a collision between reality of physical gold in movement and the fantasy of phony paper market pricing, the Western banks go poof and the USDollar dies. 

FINAL SOLUTION

When the collapse occurs, the solution will finally be discussed, the solution avoided for eight full years.
THE GOLD STANDARD WILL BE INSTALLED.

Click Here For Jim Willie’s Full HAT TRICK LETTER:

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Banker Scaremongering In FT re €4 Trillion Italian Banking System as Referendum Looms

  • Bail in risk – €4 Trillion Italian banking system at risk as referendum looms Sunday according to Financial Times

  • Concerns of multiple bank failures – Eight banks at risk of failure and bail ins

  • Monte dei Paschi di Siena, third largest by assets and mid-sized banks Popolare di Vicenza, Veneto Banca and Carige and four smaller banks

  • Italy’s banks have €360 billion of problem loans

  • Contagion poses risks to Unicredit, Italy’s largest bank by assets and only globally significant financial institution

  • Bail in risks highlight importance of deposit diversification and gold

  • Imprudent to have all ‘savings eggs’ in ‘bankers basket’

bail-in-risk(Copyright The Financial Times Limited 2016)

“Up to eight of Italy’s troubled banks risk failing if prime minister Matteo Renzi loses a constitutional referendum next weekend and ensuing market turbulence deters investors from recapitalising them, officials and senior bankers say.

Mr Renzi, who says he will quit if he loses the referendum, had championed a market solution to solve the problems of Italy’s €4 trillion banking system and avoid a vote-losing “resolution” of Italian banks under new EU rules.”

Financial Times

The Italian banking system looks vulnerable to collapse whether the referendum is passed in Italy or not. Were the referendum passed, it may allow senior Italian and international bankers to further ‘kick the can down the road’ and delay the inevitable.

Read full story here…


Blockchain announces 10 Millionth Bitcoin Wallet, Unveils new features

Soon after the U.S elections, Peter Smith, CEO of Blockchain revealed that there’s a marked uptrend in the number of people embracing Bitcoin since Trump emerged as president. Blockchain is a London-based provider of …

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The Power Struggle Unfolding Before Our Eyes

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The masses have (finally!) reached the point where the pain of maintaining the status quo now exceeds that of breaking it. A People’s Coup has been set in motion, of which the election of Trump is just an early example of the unexpected and jarring surprises that lie ahead.

What will this coup look like? Will it succeed?

Click here to read the full article


Japan Firm, Mitsui Sumitomo Announces Insurance Product for Bitcoin Exchanges

The Nikkei Asian Reviewreports that Tokyo-based insurance firm Mitsui Sumitomo Insurance is developing an insurance product that will cover damages and losses at Bitcoin exchanges.

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[KR998] Keiser Report: Trump, Diamond & Silk

We discuss how Obama’s legacy lost the election for Hillary, and why lobbyists have no idea how to work with the Trump administration. They also talk to viral YouTube stars, Diamond and Silk, to find out why they backed Trump.


The Washington Post: Useful-Idiot Shills for a Failed, Frantic Status Quo That Has Lost Control of the Narrative

I was amused to find my site listed on the now-infamous list of purportedly Russian-controlled propaganda sites cited by The Washington Post. I find it amusing because I invite anyone to search my 3,600-page archive of published material over the past decade (which includes some guest posts and poems) and identify a single pro-Russia or pro-Russian foreign policy entry.

If anything, my perspective is pro-US dollar, pro-liberty, pro-open markets, pro-local control, pro-free-press, pro-innovation, and pro-opportunities to rebuild America’s abandoned, decaying localized economies: in other words, the exact opposite of Russian propaganda.

My “crime” is a simple one: challenging the ruling elite’s narrative. Labeling all dissent “enemy propaganda” is of course the classic first phase of state-sponsored propaganda and the favorite tool of well-paid illiberal apologists for an illiberal regime.

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Four of The Best Bitcoin Deals in Town

As strange and unbelievable as it might sound, you can actually shop with Bitcoin on Amazon. Amazon has the biggest, most diverse, and most comprehensive Black Friday deals in town.

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Liberty Blitzkrieg Included on Washington Post Highlighted Hit List of “Russian Propaganda” Websites

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I have to admit I’m quite honored to see that Liberty Blitzkrieg was recently included on a list of some of the most illustrious, impactful and successful alternative news websites on the planet. The list was created by an anonymous group of status quo crybabies who simply can’t handle the fact their beloved chosen oligarch was defeated in a democratically held election by Donald Trump (who I didn’t even support). As such, they are lashing out at alternative news outlets deemed most effective in countering the smothering and nonsensical pro-Hillary narrative tirelessly propagated by the fake mainstream news media.

The group in question calls themselves PropOrNot, and describes itself in the following manner…

Read more here.

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Why Is the US Dollar Rising?

On October 3rd I asked Is the U.S. Dollar Set to Soar? It seems the answer was yes. Here’s the weekly chart of the USD I posted on October 3rd:

And here’s the current weekly chart of the USD:

Note the apparent breakout above 100 and the constructive similarities to the 2014 breakout that was followed by a 20% increase in the purchasing power of the USD relative to other currencies.

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[KR997] Keiser Report: How Clinton Lost the ‘Rustbelt’

We discuss getting ‘voluntarily equitized’ on Thanksgiving Day . . . just as the First Americans were. They also discuss bail-ins in Italy and Brexit fallout in the UK. In the second half, Max interviews former head of the Democratic Party in North Carolina to find out how and why Hillary Clinton lost the Rust Belt.