Category Archive: 6a) Gold & Bitcoin

Who the Heck Consumes Capital?!

I have been writing about consumption of capital, using the example of a farmer who sells off his farm to buy groceries. It’s a striking story, because people don’t normally act like this. Of course, there are self-destructive people in every society, but, not many. Most people know not to spend themselves into poverty. To make people hurt themselves, we need to add the essential element: a perverse incentive. Consider a parlor game called...

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The Economy is in Liquidation Mode

If you’re an American over a certain age, you remember roller skating rinks (I have no idea if it caught on in other countries). This industry boomed in the 1970’s disco era. However, by the mid 1980’s, the fad was fading. Imagine running a rink company at the end of the craze. You know it is not going to survive for long. How do you operate your business? You milk it.

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Yield Purchasing Power: $100M Today Matches $100K in 1979

Yield Purchasing Power reveals that with today's zero interest we are living in times of hyperinflation. Larry worked for his savings his whole life. Through the lens of conventional purchasing power defintions, we don’t focus on the liquidation of Larry’s wealth. We ignore—or take it for granted—that he’s trading his life savings for bread. We only ask how many loaves he got. If you had a farm, would you consider trading it away, to feed your...

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Keith Weiner: Open Letter to Alexis Tsipras

The troika wants you to accept another bailout deal, to service Greek debts a while longer. Since bailouts mean borrowing more, you cannot avoid default in the end. Going deeper into debt is no good for anyone. However, Greece has no future so long as it clings to the euro.

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Keith Weiner: Inflation Caused the Greek Tragedy

By inflation, I don’t refer to rising consumer prices in Athens. My Greek friends tell me that prices have been steady there in recent years. The focus on prices is the greatest sleight of hand ever perpetrated. It diverts your attention away from the real action. Inflation is the counterfeiting of credit. It is borrowing, when you can’t pay and you know it. Inflation is taking money under false pretenses, and issuing fraudulent bonds. This...

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THERE’S Your Hyperinflation!

Hyperinflation is commonly defined as rapidly rising prices which get out of control. Let’s restate this in terms of purchasing power. In hyperinflation, the purchasing power of the currency collapses. Many critics of the central banks have predicted that this end is coming soon. They have been frustrated as prices are clearly not skyrocketing. For example, the price of crude oil was cut almost in half (so far). There’s little to see if one...

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Dem Ausland ausgeliefert, wegen Gazprom – Danke, Eveline #NOT

Nun sind wir also bereits soweit in der Schweiz, dass man sich nur schon durch die Auswahl seiner Aktienpositionen suspekt macht. Heute habe ich von der Swissquote Bank SA folgende Nachricht erhalten, die sich auf meine gehaltenen Aktien Aktienrechte...

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What Good is the Texas Gold Depository?

You’re getting onto a highway. You want to go to your destination but there are roadblocks. The barriers are stacked up in layers. Even if one is removed, you still can’t get anywhere. So is it worth it to start eliminating obstacles, even though it won’t clear the road yet? On June 12, 2015 Texas said yes. The road we’re talking about is the path forward to the gold standard.

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Interest – Inflation = #REF

Economists say real interest = nominal interest - inflation. They paint a false and misleading picture.

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They’re Coming to Take Away Your Cash

They're coming to take away your cash. Not for the sake of control or steal your money, but to protect the banks.

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How Could the Fed Protect Us from Economic Waves?

Mainstream economists tell us that the Federal Reserve protects us from economic waves, indeed from the business cycle itself. In their view, people naturally tend to go overboard and cause wild swings in both directions. Thus, we need an economic central planner to alternatively stimulate us and then take away the punch bowl. The very idea of centrally planning money and credit boggles the mind.

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Who Is Worth More: Some Hedge Funds or All our Kindergartens?

"The top 25 hedge fund managers made more than all the kindergarten teachers in the country," declared President Obama in a discussion of poverty at Georgetown University. Calling them “society’s lottery winners,” he proposed to hike their taxes. Predictably, battle lines have been formed between two polarized sides. One side is unhappy with the pay disparity. The other is quick to defend the status quo. Rather than arguing about whether hedge fund...

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Peter Regli – unwissend? ferngesteuert? verblendet?

Peter Regli, Divisionär ausser Dienst (a D), ehemaliger Unterstabschef Nachrichtendienst der Schweizer Armee (USC ND), ehemaliger Leiter des Nachrichtendienstes der Flieger- und Fliegerabwehrtruppen, ehemaliger Assistent in der Schweizer Botschaft in...

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Falling Yields, Rising Asset Prices -Rising Yields,Falling Prices

Our paper currency causes falling productivity, though not in terms of bushels per acre. What falls is productivity per dollar or euro of savings. This is the real meaning of the falling interest rate. When the rate was 10 percent, $1,000 of principal produced $100 of return. When it falls to two percent, then the same capital generates a return of only $20. Now with the Swiss 10-year bond, CHF 1,000 earns only CHF 1.3. Keith Weiner argues that one...

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Yield Purchasing Power: Think Different About Purchasing Power

The dollar is always losing value. To measure the decline, people turn to the Consumer Price Index (CPI), or various alternative measures such as Shadow Stats or Billion Prices Project. They measure a basket of goods, and we can see how it changes every year. However, companies are constantly cutting costs. If we see nominal—i.e. dollar—prices rising, it’s despite this relentless increase in efficiency. At the same time, the interest rate is...

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Armeediskussion: “Reihen schliessen” – das falsche Rezept

Verordnete Einigkeit ist der falsche Weg in der aktuellen WEA-Diskussion. Es braucht die ehrliche Auseinandersetzung mit den Kritikern. Die Ablehnung des Gripen steckt vielen Offizieren, aber auch dem VBS, noch in den Knochen. Zum ersten Mal versenkt...

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Prohibition: Gold Is Like Marijuana



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Arizona Governor Ducey Vetoes Gold

Arizona Gov. Doug Ducey vetoed a bill Wednesday that would have made Arizona the third state behind Utah and Oklahoma to recognize gold and silver as legal tender. This isn’t yet another in a long series of articles lamenting the Federal Reserve, power, politicians, corruption, and the hopelessness of fighting the status quo.

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Did Ben Bernanke Call for Euthanasia of the Rentier or of the Pensioner?

Keynes called for “the euthanasia of the rentier” by government suppression of the interest rate (chapter 24 of General Theory). Bernanke did the same with pensioners, he threw them under a bus with low interest rates; still he “was concerned about those seniors as well.”

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Money as Debt and the Federal Reserve System



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