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Monday, January 25, 2016

Gold World News Flash

Gold World News Flash


2016 X-FILES EXPOSES ELITE’S GENOCIDAL PLAN: FROM GLOBAL BANKING COLLAPSE TO ALIEN DECEPTION

Posted: 25 Jan 2016 12:40 AM PST

by SGT, SGT Report.com:

THE PILOT EPISODE OF THE NEW 2016 X-FILES TV SHOW DID A BANG UP JOB EXPOSING THE ELITE’S GENOCIDAL PLAN FOR HUMANITY, IN PRIME-TIME – FROM GLOBAL BIOSPHERE & BANKING COLLAPSE TO ALIEN DECEPTION: The X-Files video clips are from the January 24, 2015 premiere of the 2016 X-Files TV show.

Where Is The Market Turmoil Taking Us? – John Rubino

Posted: 24 Jan 2016 10:01 PM PST

from Dollar Collapse:

On Monday, stocks tanked around the world and so did oil, breaking $27. On Tuesday things looked better. Central banks were jawboning, with Mario Draghi making noises about intervening. The Chinese were also busy buying stocks. The true test is when the banks really start intervening and whether they will be able to reflate another cycle. At some point this strategy is bound to fail. Will it be now or the next time? That past couple of weeks have seen a very brutal bear market. If you look at the average stock, it has lost more than 20 percent. Sounds like a bear market in the making with tech stocks leading the way.

The black-sheep founder

Posted: 24 Jan 2016 08:31 PM PST


That phrase is a stark truth from the American Revolution, yet most people can't tell you who said it and where.  It's not as if it didn't deserve better.

Even if you believe the Revolution was a bad idea, given the inflation that funded it and the Hamiltonian government that emerged from it, it would be hard to find words more influential in determining our history.  

The argument in their favor goes something like this: In late 1776 Washington's troops were chased from New York City and fled across New Jersey, finally settling across the Delaware River near Philadephia. Not only the British but many colonists were certain of their surrender, and only a Christmas break and snow were delaying the inevitable.  Legend has it that while the troops were camped out waiting for their enlistments to expire, one of them, Thomas Paine, a British expatriate who had arrived in the colonies only two years earlier, borrowed a fellow soldier's drum to use as a desk so he could pen an essay that General Washington had his officers read to the men.
THESE are the times that try men's souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands by it now, deserves the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly: it is dearness only that gives every thing its value.
Paine's message got the troops standing tall again for an afternoon.  With Paine among them they crossed the ice-strewn Delaware, marched nine miles through the night in a blizzard to Trenton, and surprised a British detachment of hung-over German mercenaries on the morning of December 26, 1776.  The fight was over quickly, and the General had achieved his first victory in the war for independence.

A new thought suddenly emerged among the colonists: The war might not be futile.  Morale was temporarily restored among civilians and soldiers.  "The dramatic victory inspired soldiers to serve longer and attracted new recruits to the ranks." (Wikipedia)

Paine had already achieved fame earlier that year for his pamphlet Common Sense, in which he argued persuasively that the colonies could govern themselves, and that George III was no more than the "Royal Brute of Britain" rather than some loving father who cares for his subjects.

"For as in absolute governments the King is law, so in free countries the law ought to be King," Paine wrote.  In a Paine-style flourish he added:
O ye that love mankind! Ye that dare oppose, not only the tyranny, but the tyrant, stand forth! Every spot of the old world is overrun with oppression. Freedom hath been hunted round the globe. Asia, and Africa, have long expelled her.—Europe regards her like a stranger, and England hath given her warning to depart. O! receive the fugitive, and prepare in time an asylum for mankind.
To attack the king in such manner was considered blasphemy and treason, but in the colonies it found a sympathetic audience.  Six months after publication the widespread popularity of Common Sense nudged the Continental Congress to draw up a Declaration of Independence.

Thomas Paine, in other words, ignited the drive for independence and kept it alive during its darkest hours.   

You might think Paine would deserve to be named among the country's key Founding Fathers, at the very least.  Yet his name is usually not listed among them.  Most Americans have heard of Washington, Jefferson, and Adams — but Paine?  Some historians regard him as an unfortunate footnote in the country's creation and nothing more.

The Age of Reason

Among the reasons for his diminutive stature was a three-volume book he wrote much later, The Age of Reason, which was openly critical of organized religion and the Christian Bible in particular.  Paine's attack was based on his personal biblical scholarship and as such called for scholarly counterarguments by those who disagreed.  While there were rebuttals, most people seemed to regard him as Teddy "Bully Boy" Roosevelt did many years later, as a "filthy little atheist."

Is Roosevelt's charge legitimate?  Age of Reason opens with the "author's profession of faith," as Paine described it, written while he was living in France during the Terror of the French Revolution:
As several of my colleagues, and others of my fellow-citizens of France, have given me the example of making their voluntary and individual profession of faith, I also will make mine; and I do this with all that sincerity and frankness with which the mind of man communicates with itself. 
I believe in one God, and no more; and I hope for happiness beyond this life. 
I believe the equality of man, and I believe that religious duties consist in doing justice, loving mercy, and endeavoring to make our fellow-creatures happy. 
But, lest it should be supposed that I believe many other things in addition to these, I shall, in the progress of this work, declare the things I do not believe, and my reasons for not believing them. 
I do not believe in the creed professed by the Jewish church, by the Roman church, by the Greek church, by the Turkish church, by the Protestant church, nor by any church that I know of. My own mind is my own church. 
All national institutions of churches, whether Jewish, Christian, or Turkish, appear to me no other than human inventions set up to terrify and enslave mankind, and monopolize power and profit.  
I do not mean by this declaration to condemn those who believe otherwise; they have the same right to their belief as I have to mine. But it is necessary to the happiness of man, that he be mentally faithful to himself. Infidelity does not consist in believing, or in disbelieving; it consists in professing to believe what he does not believe.
Is this is how a filthy atheist expresses himself?  You be the judge.  As one writer has observed,
When [Paine] had composed passionate defenses of freedom against political tyranny, the masses had loved him. But now that he had composed a passionate defense of freedom against religious tyranny, they hated him.
Paper Money

Paine had little in the way of formal education, yet his understanding of complex issues and his ability to articulate them clearly and passionately were without parallel in his lifetime, which is why he was the bestselling author of the 18th century.  One of his most profound essays addressed the nature of paper money
The pretense for paper money has been that there was not a sufficiency of gold and silver. This, so far from being a reason for paper emissions, is a reason against them. . . .
As to the assumed authority of any assembly in making paper money, or paper of any kind, a legal tender, or in other language, a compulsive payment, it is a most presumptuous attempt at arbitrary power. There can be no such power in a republican government: the people have no freedom — and property no security — where this practice can be acted . . . .
If anything had or could have a value equal to gold and silver, it would require no tender law; and if it had not that value it ought not to have such a law; and, therefore, all tender laws are tyrannical and unjust and calculated to support fraud and oppression. . . .
[If] money be made of paper at pleasure, every sovereign in Europe would be as rich as he pleased. But the truth is, that it is a bubble and the attempt vanity. Nature has provided the proper materials for money: gold and silver, and any attempt of ours to rival her is ridiculous….
It's difficult to document Paine's contributions to liberty in anything less than a book, but for more extended presentations please see "Thomas Paine: Liberty's Hated Torchbearer" and "The Sharpened Quill."  And for a script dramatizing his role in the nation's founding, see Eyes of Fire: Thomas Paine and the American Revolution.






DISCOURSE ABOUT THE COLLAPSE -- ERIC DUBIN

Posted: 24 Jan 2016 07:49 PM PST

Eric Dubin, Managing Editor at The News Doctors joins me to dissect the latest views of the global economic collapse. As we stand on the precipice of the death of the Petrodollar we examine two alternative views: Is it all being done by design, or have the masters of the universe simply lost...

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DISCOURSE ABOUT THE COLLAPSE — ERIC DUBIN

Posted: 24 Jan 2016 07:27 PM PST

by SGT, SGT Report.com:

Eric Dubin, Managing Editor at The News Doctors joins me to dissect the latest views of the global economic collapse. As we stand on the precipice of the death of the Petrodollar we examine two alternative views: Is it all being done by design, or have the masters of the universe simply lost control? Thanks for joining us.

The Ultimate "Truth Bomb" - The East Knows The West Is Bankrupt

Posted: 24 Jan 2016 07:25 PM PST

Submitted by Bill Holter via Jim Sinclair's Mineset blog,

What a tangled web the global geopolitical situation has become.  Geopolitics and finance have always been interrelated but recently much more so.  As many readers know, I have speculated we would be hit over the head with a “truth bomb” from the East and most likely from Mr. Putin himselfJust this week Britain has alleged Mr. Putin personally ordered a “hit” on an ex KGB agent for calling him a pedophile.  Another story came out that Turkey shot down a NATO helicopter which made no press coverage at all in the West.  Also, Victoria Nuland recently travelled to Russia and was refused an audience by Mr. Putin.  This, after John Kerry had a meeting where he went into it saying “Assad must go” and came out saying Mr. Assad can stay …  Why all of this now?  I would simply say this reeks of desperation and also a VERY dangerous strategy to attack Mr. Putin personally.  I say “dangerous” because it raises the likelihood of a response from him.  Can you imagine the outrage were Russia to accuse president Obama or the Prime Minister Cameron of Britain for ordering the murder of someone who called them a pedophile?

Before going any further, I believe nearly ALL of what we are seeing is centered by and on the “petrodollar”.  Will it survive or be replaced?  In my opinion it is no longer “if”, but “when” and by “what” will it be replaced with?  Just over the last two weeks we have seen three very important yet interrelated events.

First, the sanctions against Iran in place over the last 35 years were lifted.  Along with this comes the ability for Iran to sell oil and they will now have access to up to $150 billion worth of assets and accounts previously frozen as reported by many credible non-government sources.

 

The day after, we saw 10 U.S. captured sailors on their knees as they were said to have “strayed” into Iranian water.  The official U.S. account has changed at least twice.  We heard “mechanical failure” at first, this is unlikely as there were reportedly two separate vessels.  If one had mechanical problems, the other could have tied off and either towed it or held it steady until help could arrive.  Then the story changed to “navigational” problems.  This one I believe …but not the official story they “strayed” into Iranian water.  Again, if it was just one boat, maybe their navigation system malfunctioned …at the same time their communications failed …MAYBE?  But both boats …at the same time lost their comm and navigation systems?  Probably a better chance one of these sailors winning the Powerball lottery two weeks in a row!  Speculation on my part, I believe the electronics were somehow hacked or blocked just as happened with the Donald Cook in the Black Sea in late 2014.

 

Just a couple of days ago, President Xi of China met with Iranian leaders one day and then the Saudis the following day.  We can only speculate what was discussed but surely oil was the centerpiece.  Naturally China wants to make and diversify oil supply deals from them both.  We have no proof but I believe it is a very good bet President Xi told the Saudis they would be expected to accept yuan for settlement instead of dollars.  There is no denying, the Chinese have done everything in their power to prepare for the dollar being dumped as the world’s reserve currency.  You can argue about timing, you cannot argue about “intent” as China/Russia have set up non Western clearing facilities similar to SWIFT but without any Western interference, trade deals, currency hubs, trading banks, and even gold and oil exchanges where the dollar will not be welcome.

It is not tough to tie all of this together.  I ask you this, what would the world look like the day following a “truth bomb” dropped by Mr. Putin and the Chinese.  Would Americans even notice if he documented several false flags or frauds embedded in U.S. finance such as outright monetization of U.S Treasuries?  No, most certainly not.  Americans would however notice if financial markets collapsed or were shut down.  Russia and China know full well the situation in the West.  It is a bankruptcy waiting to happen as everything is fractional reserve and running on maximum margin while the underlying system is shrinking and no longer supplying enough liquidity.  The way I see it, the stage is truly set for a financial attack on anything and everything American.  Is it implausible for the Saudis to announce they will sell oil in yuan to China?  Or Iran to withdraw their funds from U.S. institutions and then bid for gold with these funds?  If the East does in fact have jamming or hacking capability of Western technology, is it far fetched for them to show it very publicly in one or several situations?  How would the “bookies” react if they saw a prize fighter enter one of the later rounds with his hands tied behind his back?

You can laugh at the above speculation if you choose but it is all quite plausible and actually probable if you look at where things are and what posturing has already been done leading up to this.  Western markets, ALL markets are a fraud.  Our Treasury market is one where the biggest buyer is “our self” …the Fed and the ESF.  We have already seen $1 trillion of foreign reserves offloaded with no effect on yield nor the dollar itself and NO ACCOUNTING ANYWHERE as to “who” bought these offloaded central bank reserves.  Accounting fraud and no rule of law here, nothing to see …please move along!  You can laugh if you want and say Saudi Arabia will never move toward the East …  Saudi Arabia is now in very dire straits financially, who do you think they will side with when Western markets melt down?  Do you really believe they will go down trying to support our dollar?

The stage has already been set.  The East knows the West has bankrupted.  They know we have no gold left because they have it!  They can see the finances of the various cities, states and federal government.  They know the situation in derivatives is one giant mountain of dynamite waiting for a spark.  They know our rule of law is gone and bail ins of depositor funds is next.  We are monetizing their sales of Treasury securities.  “We” are fooling no one except ourselves.  And by “ourselves” I am talking about the vast majority of the population who have grown to rely on the government for everything.  Everyone knows we are broke, yet ask anyone and the odds highly favor you will hear “the government will never let it happen”.  Even if you are silly enough to believe this you must ask yourself, what are the ramifications when markets become “make believe”?

BREAKING: Multiple Injuries On Airplane

Posted: 24 Jan 2016 07:08 PM PST

American Airline flight from Miami to Italy diverted to Canada multiple injuries on board The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

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Kyle Bass Warns Of "A Lot More Pain To Come" Before This Is Over

Posted: 24 Jan 2016 06:50 PM PST

Having recently explained his "greatest investment opportunity for the next 3 to 5 years," Kyle Bass expands on his China discussions...

"Given our views on credit contraction in Asia, and in China in particular, let's say they are going to go through a banking loss cycle like we went through during the Great Financial Crisis, there's one thing that is going to happen: China is going to have to dramatically devalue its currency."

...to focus on Emerging Markets more broadly and specifically The BRICs.

As Benzinga summed up, Bass Warns

"we still have three tough innings to go, maybe four," he warning that emerging markets will "see a lot more pain before things are okay."

Plenty more smoke and mirrors to be destroyed yet...

 

Bass talks Emerging Markets with Wall Street Week's Gary Kaminsky...

Specifically, as ValueWalk notes:

Brazil

“You look at Brazil, and the [carwash] scandal goes all the way to the President…It is a complete disaster with corruption,” he said. Bass believes that until the country roots out its corruption, the country “will keep going south.”

Russia

Russia faces issues related to “Putin’s global chess moves” and international sanctions.

India

Bass, meanwhile, called India a “semi-bright spot” in the grouping of countries, but didn’t delve deeper.

China

China, lastly, is “the big one,” according to the hedge fund manager. Bass cited the country’s non-performing loan growth as the key issue to watch.

 
 

"China many years ago attached its currency to the dollar: they hitched their wagon to our star very smartly because back then our goal was to depreciate our dollar through inflation. So we issued debt to the rest of the world to depreciate the dollar. And so now the real problem is China has hitched their wagon to our star, and their currency has effectively appreciated about 60% versus the rest of the world since 2005 and it's killing them... China's effective exchange rate moving up versus the rest of the world made their goods and services a little bit more expensive each year and now that labor arbitrage is gone. And if that labor arbitrage is gone, and the banking system has expanded 400% in 7 years without a nonperforming loan cycle, my view is we are going to see a non-performing loan cycle."

Rick Rule – Gold, Silver & Mining Co’s

Posted: 24 Jan 2016 06:30 PM PST

from Palisade Radio:

Rick Rule discusses the arbitrage between the biggest streaming companies and the largest base metals companies. The precious metals by-product streams of the base metal companies are valued at 15 times the EBITDA multiple in the markets. The mining industry has come to rely on ‘dumb’ money which has all but dried up but there are billions of dollars of ‘smart’ money looking for the right deal in the best of the best products.

Big Bad China

Posted: 24 Jan 2016 06:15 PM PST

Submitted by $hane Obata via Tha Business blog,

1989toon

It seems like every day we are inundated with news out of China. Investors are already concerned. The offshore renminbi (CNH) is more international than the onshore one (CNY), which is tightly managed by the government. As such, the rising spread (CNH-CNY) between the two may be indicative of mounting skepticism about China’s economy and its markets. Likewise, capital is fleeing the country as hot money flows have accelerated:

Hot Money Flows - @vikramreuters - Dec18'15source: @vikramreuters

In the following sections we will attempt to analyze China’s markets and determine the biggest risks facing its economy. Lastly, we will try to answer the following question: does it matter to us?

Markets

As the first week of trading in 2016 came to an end, the Chinese markets had already been halted twice. Newly minted circuit breakers, which have since been suspended, were triggered when China’s main equity index, the CSI 300, fell 7% on two separate occasions. The first selloff was triggered by a rumor that the China Securities Regulatory Commission (CSRC) was planning to suspend a short sale ban that has kept a reported ~$185 billion off the market. Subsequently, the CSRC decided to extend the ban in order to calm the markets. The second drop followed a significant devaluation of yuan by the People’s Bank of China (PBOC). China has also backtracked on that move. Basically, the Chinese markets are confusing

That said, the volatility is not surprising considering how unsophisticated China’s market is. One university study found that 2/3 of the new investors at the end of 2014 did not have a high school diploma:

Chinese Traders - BBG Brief
source: Bloomberg Brief

Along the same lines, individuals account for at least 80% of trading on the mainland exchanges. In other words, there are many speculators and few investors. China’s markets are undeveloped and relatively unimportant. Nonetheless, they may offer some clues into consumer sentiment and the government’s ability (or inability) to control the economy.

Economy

It is hard to determine whether China is more capitalist or communism. Either way, it remains an indispensable part of the global economy. In nominal terms, China is the world’s second biggest economy with a GDP of ~$10.3 trillion. However, in terms of Purchasing Power Parity-adjusted GDP (PPP), it has surpassed the US. Moreover, it accounts for ~40% of global PPP-adjusted GDP growth:

World GDP - The Economist - Dec'15
source: The Economist

In regards to trade, China is the world’s biggest player. In 2013, it led the world in exports ($2,209 billion) and was the number two country for imports ($1,950). The combined value of its trading amounted to $4,159 billion, marginally higher than the US’ $3,909 billion.

Debt

China’s aggregate debt level is one of the highest in the world, although it may not seem to be at first glance. China’s government debt-to-GDP ratio is 55%. To put that in perspective, the US and Japan are at 89% & 234%, respectively. Even so, it is always prudent to consider a country’s debt composition. China’s mounting debt comes into focus when we account for non-financial corporate debt (125% of GDP), financial institution debt (65%) and household debt (38%). The grand total is an astounding 282% of GDP, or $28.2 trillion:

China's Debt - MGI - Feb'15
source: McKinsey

The rate of debt growth is also a concern. Non-financial corporate debt, increased from 72% to 125% of GDP from 2007 to 2Q14, a 73.6% increase.

China’s debt load is a global risk because of how tightly managed its economy is. The government has allowed unprofitable companies to stay in business. Though defaults have been very limited, China must allow these companies to fail eventually. Otherwise, it will continue to suffer from high debt servicing costs ( ~30% of GDP).

Overcapacity

Government investment has been a big part of China’s economy. Massive amounts of stimulus went into factories, leading to overcapacity in sectors such as coal and steel. This is making it very difficult for companies that operate within those sectors to make profits – both domestically and abroad. Fiscal stimulus also went into housing and infrastructure, which are both clearly overbuilt. Despite the overcapacity, gross capital formation still represents ~45% of GDP:

Over Investment - GTL - Oct31'15
source: Gordon T. Long

That is more than twice as high as it is in both the US and the European Union.

Monetary Policy & FX

The PBOC has been very active trying to support the economy. It has cut rates 6 times since November of 2014. Likewise, it has been lowering its Reserve Requirement Ratio and selling its foreign reserves in an attempt to prevent excessive devaluation of the yuan (CNY). They are down more than $400 billion (from a peak of ~$4 trillion) since mid-2014:

FX Reserves - BBG - Jan7'16
source: @TomOrlik

FX is also a risk because China has a lot of USD-denominated debt. In mid-2015, non-bank borrowers held ~$1.2 trillion worth of it. This is an issue because Dollar debt becomes more expensive when USDCNY rises, which is exactly what the markets expect to happen.

Corruption Crackdown

China’s anti-corruption campaign is a step in the right direction. That said, it is a big political risk for foreign investors. High profile businessmen and officials have been disappearing while others are being investigated. Moreover, securities regulators have been cracking down on market manipulators, “ensnaring some of the nation’s most high-profile money managers and announcing more than 2 billion yuan of fines and confiscated gains” (source: BBG Brief). Critics of the campaign suggest that it may deter business while failing to address the corruption that exists amongst the ruling party.

Implications

As investors, we should be concerned because China is one of the biggest economies and the world’s leading trader. Therefore, if it slows down then so will global growth:

Slower China, Slower World - $GS - Dec'15
source: $GS

China is also important because it is a massive source of demand for many commodities. Thus, its weakness is spreading to undiversified economies such as Russia, Brazil and South Africa. Recessions in those countries might not carry over to the rest of the world. Nevertheless, it is important to consider the amount of debt they have taken on since the financial crisis. In the US, credit is already tightening. If borrowing costs rise for the emerging markets, especially China, then we may see a wave of defaults with untold consequences.

Even Goldman No Longer Believes China's GDP Fiction

Posted: 24 Jan 2016 04:59 PM PST

When even that bastion of statist groputhink and legacy conventional wisdom accuses China of fabricating its most important economic number, then surely some violently volatile event is in the immediate future as China's goalseeked cognitive dissonance is forced to reallign with reality in an event which even the bank that does god's work on earth implies is now overdue.

From Goldman's David Kostin:

In China, the government reported 4Q GDP growth of 6.8%. However, during the same time period our China CAI (Current Activity  Indicator) expanded at an average of just 4.5%, 230 bp slower than the official measure. Earlier this week our December CAI reading suggested China economic growth has decelerated to just 4.2%.

 

And if China is indeed growing at 4.5% (or less), that means that its total debt is now growing three time as fast as the underlying economy, a recipe for not just an epic bubble, but its even more epic collapse.

Meanwhile, as the NYT writes, fears about China's economy are now "festering" even among the world's if not brightest then certainly richest.

Apocalyptic Outbreak Zika Virus / 82 Quakes / Blizzard Jonas

Posted: 24 Jan 2016 03:24 PM PST

 Since January 1, 2016 the Zika Virus has affected 5,000 people in Colombia and affecting pregnant woman across South and Central America The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

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Risk Management Lessons From A Drunk Welshman

Posted: 24 Jan 2016 03:03 PM PST

By Chris at www.CapitalistExploits.at

If I was to watch the world news every day I would be filled with a burning desire to build myself a hut in the hills, don my hazmat suit and wait for the impending collapse of humanity.

I met a guy who'd done pretty much that. He was Welsh and drunk most of the time. But once, in the local pub he'd decided to venture into after spending a year living in solitude, he confided in me that all the things that had driven him to his fearful state didn't seem all that important any longer.

He told me this as he glanced occasionally at a TV above the bar, where David Attenborough was magically making a previously boring looking swallow seem like the most amazing creature you'd ever seen. Perhaps he realised that the world in fact wasn't in quite so terrible a state as it seemed to be if you took your information from the 6'o clock news.

Indeed, media studies indicate negative news reports outweigh positive news reports by 17 to 1!

Given a 17:1 barrage of mayhem, death, destruction, and Tony Blair this poor miserable Welshman was on the brink of hanging himself, and a little quiet time providing perspective had brought him back from the brink. Sure it hadn't cured his drinking problem but then again he was Welsh.

I bumped into him again a month or so later and he'd taken up a regular spot in the pub playing his guitar. Apparently he was pretty good because the bartender told me he'd spent the previous night being ridden around his bedroom by some South American backpacker wearing a cowboy hat who must have mistaken him for Jon Bon Jovi. He had a glint in his eye that wasn't there before. This perspective and media diet had clearly changed his world for the better.

The reason for this poor sod's previous state of fear can be explained by an almond-shaped mass of nuclei deep in the brain's temporal lobe - the amygdala. According to men in white coats who play with rats and still wear Brylcreem this highly sensitive part of our brain contributes heavily to threat detection.

From an evolutionary and neuro-scientific perspective we are hardwired to look for dramatic and negative news and when we find it, we share it.

The clansman who spotted a sabre-toothed tiger would immediately share the information with his clan. Being eaten was a pretty big deal and you didn't want to be the guy explaining to Joey's wife as she sat grieving over his mauled body that, "Ah yeah, now you mention it, I did see that horrid beast up on Woolly Mammoth point just yesterday. I guess I should have mentioned it to him. Sorry about that." 

Social sharing of danger was therefore immensely important.

Today, however, we don't wait to catch up with Billy for a drink on the weekend to tell him about the car crash on the highway that we just drove past. We snap it on our smartphone and post it on a dozen social media sites where it is then re-posted and shared by hundreds of others, thus amplifying the visibility of the crash.

The fact is that unless you live in Kandahar, or maybe Detroit, unusual scary things just don't tend to happen that often to most people. If you live in a small town of a few hundred thousand people it's a big deal when someone is murdered.

On the other hand, when you have a murder in a city of a million plus people it's just a fact that you're more likely to hear about it. Take a city like New York and London with over 8.5 million people, or Shanghai with 25 million; there are a few murders going down and they will be blasted all across the 6 o'clock news.

Many studies have shown that we care more about the threat of bad things than we do about the prospect of good things. Our negative brain tripwires are far more sensitive than our positive triggers. We tend to get more fearful than happy. Clearly taken to its extreme this can result in radical emotion driven decisions which don't produce positive results.

An Experiment

In a now-famous experiment done by two researchers, Amos Tversky and Daniel Kahneman, they examined how people make decisions involving risk. These gents were working in an area of research known as behavioral finance but the results can be extrapolated to any actions involving risk.

In their experiment subjects where provided the following scenario:

  • Suppose you have been given $1,000 and must choose between a sure gain of another $500 or, alternately, a 50% chance to gain $1,000 and a 50% chance to gain nothing.
  • Another group of subjects were given a different scenario: You are given $2,000 and must choose between a sure loss of $500 or, alternately, a 50% chance to lose $1,000 and a 50% chance to lose nothing.

Both situations are identical in terms of the net financial benefit to the individuals but Tversky and Kahneman found that most members of the first group chose the sure gain of $500. A majority of the second group, however, opted for the gamble between a loss of $1,000 and loss of nothing.

The simple phrasing of the question - the fact that one is presented in terms of gain and the other in terms of loss - is what causes them to be interpreted differently?

The conclusion of the experiment, which has been proven many times since was that people are willing to run greater risks to avoid losses than they are to make gains. 

Next week I'm going to discuss how this ties into another mathematics principle uncovered centuries ago by an Italian mathematician and how most investors focus on the completely wrong sectors and asset classes at the wrong times.

We'll top if off with asubscriber-only report on the 8 investment biases that screw with your investing that a good friend of mine and part of our global network put together.

Until then, have a fantastic weekend!

- Chris 

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Prepare For Empty Grocery Store Shelves

Posted: 24 Jan 2016 02:00 PM PST

 Have Crude Oil Prices In Nebraska Really Hit Minus 50 Cents Per Barrel? Are Shipping Companies Really refusing To Ship Products To The USA? The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists ,...

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Von Greyerz expects more QE, negative rates, hyperinflation

Posted: 24 Jan 2016 01:37 PM PST

4:35p ET Sunday, January 24, 2016

Dear Friend of GATA and Gold:

Swiss gold fund manager Egon von Greyerz, interviewed by King World News, says central bank economic forecasts are always wrong, a deflationary depression has begun, central banks will respond with more "quantitative easing" and negative interest rates, currencies will plunge, and hyperinflation will explode. Von Greyerz's interview is excerpted at KWN here:

http://kingworldnews.com/alert-legend-warns-panic-is-coming-but-exposes-...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org



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Join GATA here:

Vancouver Resource Investment Conference
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
Sunday-Monday, January 24-25, 2016

http://cambridgehouse.com/event/49/vancouver-resource-investment-confere...

Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Stock Mark Crash 50% By Mid 2016! MUST WATCH! Data Shows True American Economy

Posted: 24 Jan 2016 01:22 PM PST

 The 2016 Outlook Is Looking Like A HUGE Economic, Oil, USA Economy, Stock market COLLAPSE. Gold Prices Will Skyrocket when the worlds crisis unfolds! Predictions and forecasts see the dollar will finally fail and the American debt crisis that was created by the FED central bank will cause a...

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We GATA move these DVDs, posters, and T-shirts

Posted: 24 Jan 2016 12:28 PM PST

3:27p ET Sunday, January 24, 2016

We gotta install microwave ovens,
Custom kitchens deliveries.
We gotta move these refrigerators.
We gotta move these color TVs.

https://www.youtube.com/watch?v=lAD6Obi7Cag

Dear Friend of GATA and Gold:

With apologies to Dire Straits, GATA has its own merchandise to move, since it costs us rent every month when it just sits around at our merchandise fulfillment house in Rhode Island.

Now that the monetary metals mining industry has agreed to go out of business quietly and monetary metals investors -- in the West anyway -- are as demoralized as holders of Venezuelan bonds, GATA has been going easy on the fundraising. But our supporters could help us doubly just by taking some of our inventory off our hands. We'd get not only much of the purchase price but also a step closer to ending our rent to the fulfillment house.

We're selling DVDs of our 2005 conference in Dawson City, Yukon Territory, Canada, the conference that began alerting the world to the longstanding Western central bank gold price suppression schene, and DVDs of our 2011 conference in London, which really began offending the central banks:

http://www.goldrush21.com/order.html

Also for sale are poster reproductions of GATA's full-page color ad in The Wall Street Journal, published on January 31, 2008, which carried a well-timed warning that "surreptitious market manipulation by government is leading the world to disaster":

http://gata.org/node/wallstreetjournal

And then there are still some GATA T-shirts, in large and medium sizes, the extra-large size being as out of stock as Venezuela's gold reserve:

http://gata.org/tshirts

Please check the stuff out. Surely you've got room for one of these items in your basement so they don't end up in your secretary/treasurer's.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org



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Join GATA here:

Vancouver Resource Investment Conference
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
Sunday-Monday, January 24-25, 2016

http://cambridgehouse.com/event/49/vancouver-resource-investment-confere...

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

MARTIAL LAW IS COMING & HERE'S PROOF

Posted: 24 Jan 2016 12:11 PM PST

WITH THE STOCK MARKET BEGINNING TO CRASH I BELIEVE MUSLIM OBAMA WILL LOCK DOWN AMERICA AND CANCEL THE 2016 ELECTION AND DECLARE HIMSELF MUSLIM DICTATOR. ALSO WILL BE GONE ARE THE CONSTITUTION AND YOUR FREEDOMS... The Financial Armageddon Economic Collapse Blog tracks trends and forecasts...

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Financial Collapse 2016 - Could This Be “The Big One”?

Posted: 24 Jan 2016 11:30 AM PST

Everyone take a deep breath. This isn’t 2007 again.  The banks aren’t loaded with $10 trillion in “toxic” mortgage-backed securities, the housing market hasn’t fallen off a cliff wiping out $8 trillion in home equity, and the world is not on the brink of another excruciating financial meltdown.  The reason the markets have been gyrating so furiously for the last couple weeks is because stocks are vastly overpriced, corporate earnings are shrinking, and the Fed is threatening to take away the punch bowl. And to top it all off, a sizable number of investors have more skin in the game than they can afford, so they had to dump shares pronto to rebalance their portfolios.

Canada in Economic Crisis

Posted: 24 Jan 2016 10:49 AM PST

 n 2014 Canadian Oil Sands's operating cost per barrel was $49 per barrel. Will Canadian Oil Sands Ltd. Survive $40 Oil? Aug 14, 2015Aug 20, 2015 - Syncrude pegs losses at up to $10/barrel as oil prices collapse ..Aug 12, 2015 - This latest oil price plunge is piling fresh misery on Canadian oil...

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Currency reset is more likely than China to goose the gold price

Posted: 24 Jan 2016 09:14 AM PST

12:21p ET Sunday, January 24, 2016

Dear Friend of GATA and Gold:

GATA's friend R.B. sends a note that may be paraphrased this way:

"I know there's little chance GATA would ever say 'uncle,' but I'm sure that no followers of GATA would mind if you said simply, 'Wake us up when the Chinese take control of the price of gold.' For that seems to be the only counter to all the price suppression happening these days. There seems to be little hope that price suppression will be stopped by any supply-and-demand imbalances, world events, and market and currency problems. Western governments have the gold market locked down tight. China seems to be the only way out."

For whatever it's worth, your secretary/treasurer does not see China as any particular friend of gold. Rather, China almost certainly wants to have enough gold only so that it can start rigging the currency markets just as the United States long has been doing, gold being the prerequisite for currency market rigging.

... Dispatch continues below ...



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Gold's necessity for currency market rigging was explained in detail at a meeting at the U.S. State Department with Secretary of State Henry Kissinger in April 1974, the transcript of which, maintained at the State Department's archive, often has been publicized by GATA and presumably has come to the attention of other governments:

http://www.gata.org/node/13310

As other countries recognize their exploitation by the currency market rigging done by the imperial powers, they will add to their gold holdings and thus increase the pressure on the world's gold supply even as the world faces the catastrophic debt deflation that is inherent in a debt-based monetary system, as the burden of compound interest outpaces economic productivity. This catastrophic debt deflation is already well underway, with central banks -- particularly the U.S. Federal Reserve and the European Central Bank -- frantically monetizing debt all over the place and using futures market derivatives to prevent the escape of money from financial assets into commodities, resulting in hyperinflation.

These circumstances are likely to result eventually in an official, overnight upward revaluation of gold, a resetting of the international currency system, as the Scottish economist Peter Millar wrote a decade ago:

http://www.gata.org/node/4843

Such resets have happened before going back to ancient times. The Bible calls it a jubilee. The modern objective is to devalue debt and enable a new round of debt-based money creation as well as another round of monetary metals price suppression at a more sustainable level.

Your secretary/treasurer thinks there is a reasonably good chance that at least the younger ones among us will live to see such a day.

Even so, any such reset will not guarantee profits for gold holders. For governments can tax away any particular capital gains or even try to outlaw private ownership of monetary gold. The latter was attempted not only by the United States from 1933 to 1974 but also by Nazi Germany throughout occupied Europe during World War II.

No one can be sure how desperate governments will become to sustain their power over people by controlling all forms of money. But this struggle is for all the marbles -- for control of the planet. It's a struggle between tyranny and individual liberty, between parasitism and the progress facilitated by free markets, which is why GATA sticks with it.

Your secretary/treasurer's advice, given entirely as a mere layman and high school graduate, remains to get all the monetary metal you can, find a safe planet to keep it on, and, when you do find one, call me.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

* * *

Join GATA here:

Vancouver Resource Investment Conference
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
Sunday-Monday, January 24-25, 2016

http://cambridgehouse.com/event/49/vancouver-resource-investment-confere...

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

The Shemitah, The Debt Jubilee and Total Economic Collapse

Posted: 24 Jan 2016 09:10 AM PST

 In this video Luke Rudkowski interviews the Dollar Vigilante Jeff Berwick about the current status of the World Economy and his predictions for total economic collapse. We go over the shemitah prediction Jeff made, how that developed and how we are in the debt Jubilee currently. A lot of...

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Shanghai Gold Exchange Withdrawals in 2015 Rise to 91% of Annual World Gold Production

Posted: 24 Jan 2016 01:33 AM PST

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