Thursday, November 17, 2016

Gold World News Flash

Gold World News Flash

Trump's Election May Strain The Euro To The Breaking Point

Posted: 17 Nov 2016 01:00 AM PST

Submitted by Thorstein Polleit via The Mises Institute,

Many would not have discounted the notion that financial markets would take kindly to the announcement that Donald J. Trump won the election. But when the news broke on 9 November that he will indeed be the 45th president of the United States of America, prices on international stock exchanges climbed, the US dollar exchange rate soared, and interest rates went up.

All this suggests that international financial markets’ take on Trump’s presidency is much more cheerful than the gloomy outlook many would have predicted. Mr. Trump has made no bones about his thoughts on US foreign and economic policy, but it remains to be seen if and how he will put these thoughts into action.  

It seems Mr. Trump has no truck with the ranks of the globalists who, in their efforts to establish a new world order, have entangled the US in one ill-fated overseas adventure after another. Perhaps US foreign policy will change on his watch; it may well become far less aggressive. If Mr. Trump strikes a conciliatory tone in particular in his dealings with Russia, a more cooperative relationship could help deescalate conflicts in hotspots, say in the Middle and Far East. 

In terms of economic policy, Mr. Trump’s top priority appears to be boosting economic growth and creating jobs at home. How would his administration achieve this? Basically there are two options.

First: The new president may focus on the supply side, cutting taxes for firms and income earners, while curbing government spending.


Second: He may zero in on the demand side, encouraging more credit-financed spending on infrastructure and the like, while pursuing an overly easy monetary policy and taking up a protectionist stance on trade.

The first scenario would clearly be a regime changer. The US government machine, a juggernaut of swelling proportions, may not necessarily grind to a screeching halt, but its growth would be checked. This, of course, would be the boldest stateside political act in recent memory, and it would take some serious stamina to see it through.

But then Mr. Trump is a wealthy businessman with few allegiances to the party and little to fear from lobbyists. Perhaps he will capitalize on this independence and seize the opportunity to make a real difference. The situation is certainly auspicious enough with a Republican majority secured in Congress for the next two years.

The mere probability of the US economy improving under Trump’s presidency has financial markets bracing themselves for higher interest rates. It is now widely expected that the Federal Reserve (Fed) will act on its plan to edge up borrowing costs further in December. If this comes to pass, the US dollar may appreciate further against other currencies, in particular the euro.

One reason is that the yield gap between the US and the euro is set to widen, making the euro less attractive vis-à-vis the Greenback. On top of that, even if Mr. Trump’s administration does not buy wholesale into the neo-isolationist ideology he espoused during the election campaign, it won’t simply champion the cause of the globalists. As a result, the European integration project will be deprived of its most powerful intellectual and political advocate.

This should add to investor uncertainty as far as the euro’s future is concerned. The United Kingdom’s decision in June to do the “Brexit” has already dealt a heavy blow to peoples’ confidence in the European Union (EU) being an economically and politically desirable institution. The chances of the project stalling are now even greater, and the ties that bind the union together may even unravel.

All this raises the question as to the single currency’s raison d'être. Doubts about its viability will exacerbate the economic misery especially of weak euro member states. Investment in these countries will slow down, further suppressing production and employment. What is more, many euro zone banks engage in cross-border lending, and they will of course suffer if the euro’s very existence is called into question.

Investors are already reluctant to extend new capital to ailing euro banks in view of their low profitability and sizable liabilities with so many bad loans on their books. More than ever, the weal and woe of euro banks is in the hands of the European Central Bank (ECB). However, the unhealthy liaison between the ECB and governments and banks in the euro area could now take a really bad turn.

On 26 July 2012, ECB president Mario Draghi pledged that “the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” The ECB may now be forced to do exactly that: To buy ever greater amounts of debt against issuing ever greater amounts of money to prevent interest rates from rising and keep overstretched governments and ailing banks from defaulting on their obligations.

If it turns out to be a regime changer — by doing away with economic practices hitherto held dear by the current establishment, — Mr. Trump’s presidency could actually test the single currency to the breaking point. A really plausible scenario is that sooner or later the ECB, desperately trying to prevent the euro debt pyramid from collapsing, pursues a policy of high inflation before the euro eventually falls apart.

Australia Snubs Obama, Dumps TPP, Opts For China-Sponsored Trade Deal

Posted: 16 Nov 2016 11:00 PM PST

Submitted by Mike Shedlock via,

President Obama made a foolish decision to not welcome China in the formation of the Trans-Pacific Partnership (TPP).

It was ludicrous for Obama to leave China out of things. China is the second biggest economy in the world, third if you treat the EU as a block.

Had China been in the deal all along, we may not have seen the ludicrous provision that allowed companies to sue governments. That provision was one of the key reasons the deal failed.

With the election of Trump, TPP is officially dead. China, not the US, will be at the center of a new Asian trade pact.

TPP Dead, China Strives to Fill Void

On November 10, in the wake of Trump’s election, Beijing sought to fill the void left by TPP by reviving its proposed Free Trade Area of the Asia-Pacific pact.

The Financial Times reported Beijing Plans Rival Asia-Pacific Trade Deal After Trump Victory.

Xi Jinping is rekindling efforts to promote a rival to the US-led Trans-Pacific Partnership trade agreement in the wake of Donald Trump’s election victory, Chinese officials said on Thursday.


With Mr Xi set to travel to Peru this month for the annual Asia-Pacific Economic Co-operation summit, Li Baodong, vice-foreign minister, said China’s plan could fill the void. Chinese officials have previously sought to promote the proposal at Apec, only to encounter resistance from US officials who wanted to prioritise TPP negotiations.


“Protectionism is rearing its head and the Asia-Pacific region faces insufficient growth momentum,” Mr Li said at a briefing on China’s plans for Apec, which starts next weekend. “China believes we should set a new plan to respond to the expectations of industry and sustain momentum for the early establishment of a free trade area.”

US officials have warned for months that the failure of the TPP would open the door to China to promote its own trade agreements.


“We are seeing that play out in real time,” Mike Froman, the US trade representative, said in an interview this week. “We are the only ones who are going to be left on the sidelines as others move forward if [TPP] doesn’t happen.”


China’s efforts have been focused on wrapping up talks over a deal known as the “Regional Comprehensive Economic Partnership” with the 10 members of Asean and other countries including Australia and India.

Australia Snubs Obama, Dumps TPP

Death of TPP is at hand. Australia leads the way: Australia Snubs US by Backing China Push for Asian Trade Deal.

Australia is throwing its weight behind China’s efforts to pursue new trade deals in the Asia-Pacific region amid a growing acknowledgement the US-led Trans-Pacific Partnership agreement is dead in the wake of Donald Trump’s election victory.


Steven Ciobo, Australia’s trade minister, told the Financial Times that Canberra [Australia’s Capital] would work to conclude new agreement among 16 Asian and Pacific countries that excludes the US.


He said Australia would also support a separate proposal, the Free Trade Area of the Asia-Pacific, which Beijing hopes to advance at this week’s Asia Pacific Economic Co-operation summit in Peru.


Australia’s decision to back China’s vision comes amid soul-searching in Australia about the impact a Trump presidency will have on its long-established military and strategic alliance with Washington.


On Wednesday the opposition Labor party said Mr Trump’s election marked a “change point” requiring a careful consideration of Australia’s foreign policy and global interests. It is calling for more engagement with Australia’s Asian partners, although the party says the US-Australian alliance is bigger than any one person and will endure a Trump presidency.


Mr Ciobo said he would not comment on whether US failure to ratify the TPP would undermine Washington’s influence in the region. He said he had sought a bilateral meeting with the US trade representatives at the Apec meeting in Peru to advocate ratification of the TPP.


“Australia does not shy away from being an advocate about the multitude of benefits that flow from liberalising trade,” he said. “If the TPP does not come into effect it will mean there will be higher barriers to trade, which of course means you have a more subdued trading environment.”

Goodbye TPP, Hello Free Trade Area of the Asia-Pacific


Australia’s trade minister announced “Australia would work to conclude new agreement among 16 Asian and Pacific countries that excludes the US.”

TPP discussions started in 2005. The US joined the agreement in 2008. Agreement was finally reached in 2015.

Obama wanted to exclude China from TPP. As with Obamacare, Obama succeeded, but the patient died.

Obama excluded China, negotiated in secret, insisted on global warming nonsense and did nothing about the US sugar lobby, but did allow corporations to sue governments.

A trade deal 11 years in the making is now dead. Don’t blame Trump. TPP died on its own merits.

New TPP World

Image courtesy of Wikileaks.

Related Articles

As I stated previously, this is a very ominous if not outright scary setup.

Looking for a good trade deal? I happen to have one handy: Obama’s Trans-Pacific Partnership Fiasco vs. Mish’s Proposed Free Trade Alternative.

All tariffs and all government subsidies on all goods and services are abolished eliminated effective immediately.”

ALERT -- Secret backdoor in some Android phones sending data to China?

Posted: 16 Nov 2016 08:00 PM PST

Morgan Wright of the Center for Digital Government on the Sony PlayStation hack and reports that some Android phones are sending user data to China. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists ,...

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Politics Of Immigration - Sanctuary Cities Vow To Defy Trump On Deportation - Special Report

Posted: 16 Nov 2016 07:30 PM PST

Politics Of Immigration - Sanctuary Cities Vow To Defy Trump On Deportation - Special Report All Star Panel The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers...

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World Suffers From Trump Shell Shock - Here's What Will Happen Next

Posted: 16 Nov 2016 07:15 PM PST

Submitted by Brandon Smith via,

I’ve been saying this for a long time, and I’ll say it again here — in life there are only two kinds of people:  those who know and those who don’t.  Some might claim there is a third option: those who don’t want to know.  In any case, if you want to be able to foresee geopolitical and social trends, you have to be one of the people who know.

Above all else, in order to know you must be willing to step outside of the confusion and theater of the circus and look at developments from above.  If you are biased and retain too many sacred cows you will never understand how the world works.  You will be too busy trying to reinforce your own fantasies to see anything else.

Beyond this, you must also understand that political and social developments are not random; they are either reactions to deliberate policies of special interests or they are driven by policies of special interests.  Therefore, these developments are predictable and can be calculated (to a point).

I usually refer to these “special interests” as global elites, or globalists, because that is how they often refer to themselves.  The point is, most of the events you see in the political world are engineered events designed to elicit a specific psychological response from you and the people around you.  You are not a human being to these people; you are either an asset to be molded or an obstacle to be disposed of.  This is how our world works.  Period.  And until we fully understand this and accept it, things will never change.

So, to be clear, if you understand the minds of globalists and understand what they want, you can understand the basic direction of the future.

It is this philosophy which has allowed me to consistently and accurately predict geopolitical and economic events that very few other people have been able to predict.  For example, I correctly predicted the Federal Reserve taper of QE, I predicted the inclusion of China in the IMF’s Special Drawing Rights years in advance, I predicted the exact timing of the first Fed rate hike, I predicted the success of the Brexit referendum when most of the world and the liberty movement said it was never going to happen, I predicted that the Saudi 9/11 bill would pass, that Barack Obama would veto it and that congress would override his veto, I predicted that Hillary Clinton would be the Democratic candidate and that Donald Trump would be the Republican candidate for president of the U.S. and, for the past five months, I have been predicting that Donald Trump would win the 2016 election.

People can either attribute these series of successful predictions to pure “luck,” or they can consider the possibility that I know what I am talking about.  I’ll leave that to them.

The real issue, though, is not that my predictions were correct.  What is more important is WHY they were correct.  To begin with, I am often correct because it is a fact that globalists influence events.  Globalists are human (at least partially); thus, they are predictable, making events predictable.  If you can see from the perspective of a globalist, you will know what they want and what they are likely to do to get it.

In a world without globalists I would have a hard time successfully predicting anything.

I never make a cold prediction without a concrete rationale for why I hold that view.  I always break down the reasons and evidence that bring sense to them.  Some analysts might be content to simply flip a coin and make a call without explanation; I am not.

As far as the Trump election win is concerned, this is what I said in June of this year:

“In light of the Brexit I’m going to have to call it here and now and predict that the most likely scenario for elections will be a Trump presidency.  Trump has consistently warned of a recession during his campaign and with the Brexit dragging markets lower over the next few months, he will probably be proven “prophetic.”


… Even if Trump is a legitimate anti-establishment conservative, his entry into the Oval Office will seal the deal on the economic collapse, and will serve the globalists well.  The international banks need only pull the plug on any remaining life support to the existing market system and allow it to fully implode, all while blaming Trump and his conservative supporters.


The mainstream media has been consistently comparing Trump supporters to Brexit supporters, and Trump himself has hitched his political wagon to the Brexit. This fits perfectly with the globalist narrative that populists and conservatives are killing the global economy and placing everyone at risk.”

All of my predictions are rooted in a particular premise; that the global elites have been, since 2008 at least, deliberately setting the stage for an evolving international financial crisis greater than any other seen in modern history.  This crisis is a means to an end.  Globalists use one strategy above all others to achieve their goals — the Hegelian Dialectic; problem, reaction, solution.

As I have documented for years, the elites openly call for the ultimate eradication of national sovereignty and the formation of a single world economy, a single world currency and, eventually, a single world government.  In order to make this omelet, they intend to break a few eggs (and collapse a few economies).  By blaming "national sovereignty" (and the people that defend it) for this crisis, they hope to convince the masses that the only practical solution is total centralization.  You can read my in-depth analysis and evidence of this in my article “The Economic End Game Explained.

I also specifically predicted the Brexit and the Trump win based on another premise; that the elites are allowing conservative movements to take political power in certain regions, only to remove stimulus support from the global economy afterward.  That is to say, I successfully predicted the Brexit and the Trump win because I understand and accept the reality that conservatives and liberty activists are not “winning;” we are being set up as scapegoats for a financial crash that the globalists already created.

Again, people can either say I am lucky, or that there is something to my position, but the fact of the matter is I have been right and I will probably continue to be right.  This brings us to what will happen going into 2017.

The election of Donald Trump signals a sea change in not only global politics, but more importantly, global economic stability and social developments.  As frenetic and insane as 2016 has been, 2017 will be drastically more chaotic.  Some of these changes will be obvious, some of them will once again only be visible to a handful of people in the world.  Lets start first with my happier predictions…

The Death Of The Mainstream Media

This is an easy one.  The mainstream media, with its insane regressive-progressives and elitist bias, misrepresented the “Alt-Right,” the Trump campaign and anti-social justice movements during the entirety of the election process.  Not only this, but through Wikileaks the leftist media was made naked as numerous journalists and outlets were exposed; colluding directly with the DNC and the Hillary campaign to first bushwhack Bernie Sanders and then rig debates and polling numbers to show Clinton in a farcically superior position to Trump.

The mainstream media is now seen by the majority of Americans on the left and right as a lumbering rotting propaganda corpse that needs to be decapitated before it spreads its disease to anyone else.  I predict MSM outlet readership and viewership (with the exception of FOX News) will collapse even further than it already has and that many outlets will be forced to consolidate until they fade out of existence.

As I have said for years, the mainstream media is dead, they just don’t know it yet.  Well, after this election, everyone knows.  The alternative media will take the place of the mainstream media.  We will be adopting their viewership and growing explosively over the next year while they shrivel.

They decided that their job was not to report the facts, but to manipulate public opinion.  They are liars and a disgrace to true journalism.  Good riddance.

That said, some people will argue that my position that the elites wanted a Trump presidency is not tenable exactly because the liberal media worked so hard to rig public opinion against Trump.  I will explain in my next article why these people are missing the bigger picture.

The Crippling Of Social Justice Warriors

The SJW cult is not dead, but it has been crippled.  It is now a drooling bedridden quadriplegic eating its meals through a straw; a malfunctioning shell of a movement destined to be put out of its misery.

When I think of social justice warriors I think of the Island of Misfit Toys; nobody wants these people.  They are a detriment to everything they touch, including the Democratic party.  It was the zealotry of SJWs that caused conservatives to rally in anger around Trump.  It was they that awakened the sleeping giant.

One reason I was so certain Clinton had set herself up for a loss was her insistence that the Democrats openly adopt these hell spawn and their ideology.  By embracing politically correct rhetoric and accusing all opposition of being “deplorable” racists, sexists and homophobes, Clinton doomed her campaign from the very beginning.  Anyone with any sense could see the massive tide against SJWs growing on the internet.  In fact, I propose that the globalists, using the advanced web analytics at their disposal, saw it even before the rest of us did.

SJWs are a tiny minority in American society.  Their only strategy has been to use Alinsky tactics to make their movement appear much larger than it really is.  Through mutual aid and elitist supporters in popular media, SJWs presented a fabricated consensus.  They made it seem as though they were the majority view and, thus, the "superior" view.

One fantastic result of the 2016 election has been the realization by conservatives that they are not isolated on the fringes of society.  In fact, in America at least, we are a considerable force to be reckoned with.  There is an old story of a Roman Senator 2,000 years ago who suggested the idea of forcing slaves to wear armbands to make them easily identifiable.  Another senator admonished the notion, stating “No, if they realize how many of them there really are, they may revolt.”

This is what Election 2016 did for conservatives — we have seen that millions of us have arm bands, and we are now in revolt.

I rarely comment on race issues because I don’t really see race as very relevant in most cases; but it has been the tactic of social justice cultists to constantly and brutally target straight white males as the monsters of history and therefore responsible for the ills and failures of every minority group from today to eternity.  At this point I think it is safe to say that we will NO LONGER sit idly by as whipping boys for sad, deluded people clamoring for victim group status.

The End Of Mainstream Polling

I was also confident in my prediction of a Trump win based on my knowledge of inconsistencies in modern polling methods.  The fact of the matter is, polling suffers from the same lack of objectivity that any other “science” can at times suffer from — the results will always be vulnerable to influence from the observer.  If the observer wants a particular outcome for the numbers, they will consciously or unconsciously rig their method to produce the desired result.

I saw this happen time and time again during the Brexit polls leading up to the referendum, and, as I stated many times before the U.S. election, the campaign polls seemed to be behaving the same way.  This is how you get media sources like Reuters claiming a 90 percent chance of a win by Hillary Clinton just before the election.  When pollsters weight their polls with far more democrats than republicans and when they poll the same groups repeatedly they are not going to get varied or honest data.

In the end, polls become propaganda tools rather than litmus tests.  The mainstream has tried desperately to explain why their polls were so utterly wrong, but it is too late for them.  After the Brexit and the U.S. election, no one is going to trust these numbers again.

Liberty Groups Will Get Some Breathing Room (For A Little While)

The steady drum beat of government antagonism for “patriot groups” is probably going to subside for a short time.  I happen to know that many militia groups and preparedness networks are breathing a heavy sigh of relief today after eight years of a hostile Obama presidency, the IRS sniping at liberty organizations and individual activists based purely on political zealotry, the DHS profiling liberty activists as terrorists and the SPLC frothing at the mouth like rabid animals looking to use their ties to the feds as a means to sink their teeth into any conservatives with the guts to refuse participation in the mainstream narrative.

With conservatives launching into 2017 with complete control of government and a Trump mandate, it would seem that liberty groups have “won the fight” and have nothing to worry about.

That said, don’t get too comfortable, folks, because now we are going to discuss my negative predictions going into next year…

The Final Stage Of Economic Collapse

Economic collapse is a process, not a singular event; stock markets play only a minor part in this process.  Most Americans’ only relation to the economy is through the daily rise and fall of the Dow Jones.  If they see the Dow in the green, they go on with their day.  If they see the Dow in the red, they stop and question what is happening.  The election of Donald Trump has surprised many with a sudden rise, rather than fall, in stock markets.  But, as I told my readers before the election, it would be wise to wait a couple of weeks before trying to analyze these markets because that is how long it will take just to absorb the election results.

I predict first that central banks around the globe will further cut stimulus measures and that the Fed is now guaranteed to raise interest rates, probably in December before Trump even enters the White House.  I also believe that the process of initiating a market crisis will take approximately six months to become widely visible to the public.  As a consequence of the Fed pulling the plug on markets, I predict Trump and the Fed will enter into open hostilities against each other, which will erode international faith in the U.S. dollar as the world reserve currency.

By extension, Trump’s presence in the White House will exacerbate already-existing tensions with Saudi Arabia.  The Saudi 9/11 bill is just the beginning.  As a result, I believe Saudi Arabia will dump the U.S. dollar as the petro-currency, influencing numerous other OPEC nations to do the same.  I believe this will happen by early 2018.

In my view, for now, oil prices will be the best indicator for where stocks are headed in the next few months.

This is not something many Trump supporters want to hear.  The response in the liberty movement to my prediction that the elites would allow Trump into office was rather predictable as well.  In my article 'Why The U.S. Election Has The Entire World Confused' I stated:

“I have not taken this position just to be contrary. If I think about it honestly, my position is truly a losing position. If I am mistaken and Clinton wins on the 8th then I’ll probably never hear the end of it, but that’s a risk that has to be taken, because what I see here is a move on the chess board that others are not considering. If I’m wrong, then I’m wrong.


That said, if I am right, then I still lose, because Trump supporters and half the liberty movement will be so enraptured that they will probably ignore the greater issue — that Trump is the candidate the elites wanted all along.”

This seems to be the reaction from about half the liberty movement so far; a general blind faith and bias, clinging to the idea that the election (just like the Brexit) was a victory, and that conservatives had just won the culture war and defeated the globalists.  It’s funny how it wasn’t much of a controversy when everyone thought I was wrong about Trump winning in the first place.

There are two primary arguments that come up with these people. First, that my view on the influence of the elites is “unrealistic” and that the elites would have to be “omnipotent” in order to succeed in directing the outcome of these events so effectively.  I will address this argument in detail in my next article on the Trump presidency and what the consequences will be for us all if Trump turns out not to be a constitutionalist.

The second argument they present is that the elites “will never succeed” in blaming Trump and conservatives for an economic crisis that was decades in the making.  To the people that embrace this argument I say — I understand mass psychology far better than you do.

The reality is, half of America is ALREADY primed to blame Trump for everything that happens over the next four years (if we even make it that long).  Possession is nine-tenths of the law in the minds of many.  Beyond that, every meme in the global media and on the left is promoting the idea that Trump is an apocalypse in the making.  Even Germany’s 'Der Spiegal' published its after-election magazine with a cover depicting Trump’s head as a giant comet hurtling towards the Earth.  Don’t tell me that Trump cannot be blamed for an economic crisis.  Only a complete idiot would suggest that he is anything other than the perfect scapegoat.

At bottom, it does not matter whether people believe the above predictions or not.  I have hundreds of emails from readers who called me a “tinfoil hatter” in the past and are now apologizing.  So, if you plan to react in a knee-jerk fashion to the notion that Trump and conservatives are being set up by the elites for a final financial flagellation, be sure to write two letters — one for today saying I’ve lost touch, and the other for tomorrow when you find out I was right once again.

Here's Why Big Banks Love Trump

Posted: 16 Nov 2016 07:00 PM PST

 Nov. 10 -- Donald Trump and Republican victories at the polls have caused the stocks of Bank of America, JP Morgan Chase, and other big banks to jump. Bloomberg's Jenny Surane explains the move. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts ,...

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Will Donald Trump End The American Unipolar Moment?

Posted: 16 Nov 2016 06:25 PM PST

Submitted by Federico Pieraccini via,

We are facing an unprecedented breakthrough: a global change that potentially could definitively overwhelm the unipolar world order created after the fall of the Berlin Wall in 1989 and sent into overdrive by the 9/11 so-called War on Terror. The victory of Donald Trump is the most emblematic representation of a total repudiation by the American population of the so-called establishment and its interests.

The American elections have ended with an unexpected verdict that has confounded all forecasts. Trump won the election in the United States, home and capital of the western system, redefining the logic by which a President is normally elected. Largely for this reason, it is an extraordinarily important victory. All the apparatus of American power, such as the media, politicians, experts and intellectuals, were not enough to stop the people from expressing a vote that is more of an explicit protest.

The victory of Trump also spells the end of the Bush and Clinton dynasties, as well as the unexpected conclusion of Obama's mandate, the betrayal of which is the biggest in US history. Elected to solve problems such as inequality, racial divisions, poverty and social injustice, he failed on all fronts, becoming one of the major causes of a dissenting vote in favor of Trump. Barack Obama has ironically been one of Donald Trump’s biggest sponsors. Obama’s voters in 2008 and 2012 were not deceived by Clinton’s promises, and after voting for Sanders as a last hope, they preferred to stay home or even vote for Trump as an ultimate expression of contempt for the status quo represented by Democrats, Republicans, and by the Washington establishment. Above all, it represented the victory and the will of the working class, tired of their economic condition worsening over more than three decades.

The victory of Brexit in England, Duterte in the Philippines, the 2013 Five Star movement in Italy, the phenomena of Le Pen in France, Syriza in Greece, and the continuously rejected European treaties -- all these are part of the same theme connecting different voting issues. The continuous rejection of the idea of globalization and globalism has occupied the majority of the people. Identified as the great evil, it is considered the main cause for the continuing need for governments to subordinate national interests for international interests. This inevitably leads to a deadly embrace with an international model based on Wall Street finance, the main cause of the 2008 financial crisis, compounded by American wars around the world, a source of insecurity and prolonged terrorism.

The root of this pushback is the concept of multipolarity. In a unipolar model, power and the money is concentrated in the hands of a tiny percentage, producing an imbalance of wellbeing that is the base of common frustration of Western citizens. The success of the multipolar model derives primarily from the ability to choose without without facing unilateral imposition. Whether it is leaving the EU or the victory of a candidate not linked to the political establishment, multipolarity is the most effective way to respect the popular will, a huge difference when compared to unipolarity, where people are left with no alternative. We have been transitioning for nearly a decade into the digital domain, a world where an infinite range of options is available to achieve one’s objectives.

In the real world, the unipolar approach is outmoded and inadequate, creating the need for any alternative proposal, whether it be Trump or Brexit. We cannot otherwise explain why in recent years anyone who proposes an anti-establishment model in Europe or in the United States is considered a credible alternative. It is not the message one conveys that is important, it is simply enough to be something different from the status quo, simply an alternative.

The power of finance has devoured the few rights left for people, giving priority to interests whose greed is insatiable and has led many Western nations to the brink of collapse in the financial crisis of 2008. Since then, nearly 10 years later, nothing has changed, and people’s economic well-being has declined alarmingly, reaching unprecedented levels. The promises made by politicians after the 2008 crisis have been broken, and the middle class and poor have continued to pay for it all, generating a level of frustration that is expressed at the ballot boxes, with votes for Brexit or for Trump in the United States.

In addition to the economic situation, numerous wars have succeeded in antagonising Americans, with costs nearing six trillion dollars serving to further erode the confidence of the average voter in the Washington establishment. While the average American voter does not care about the foreign policy of their country, if the results are an increase in terrorism, a decrease in domestic investment, creating a general feeling of helplessness, then US foreign policy becomes something harmful, unnecessary or even counterproductive to the American voter.

It is amazing to see how in the most recent US elections all these considerations have become central in Trump’s arguments. For the first time in US history the media and establishment’s one-sided narrative has been broken. What has been shown is that a presidential campaign can be ran independently of the Democrats or Republicans on issues revolving around Wall Street, the Washington Consensus, exporting democracy, and the defamation of geopolitical opponents. For the first time, the vision of a unipolar American hegemony has been defeated by a multipolar vision of reality, a vision that simply places an alternative to the status quo of the past 25 years. The people were offered, first in the Republican primaries and then the election, the opportunity to express a vote that seemed more a referendum with a question that essentially amounted to: “Are you happy with your current condition?” The answer was a huge middle finger to the establishment expressed through the Trump vote.

Clinton, being a product of the establishment and representing the status quo, did not offer what the majority of Americans wanted, namely a break with the elites. Even if unconsciously, the majority of Americans rejected in their vote the unipolar economic, financial and military model, giving the rest of the world an unexpected hope for change.

The United States woke up the day after the elections with a more divided country than ever before, a reflection of a broader division that runs through the West. These are the consequences of a changing world that is drifting away from a unipolar vision with its one financial, economic and military system represented by Washington and Brussels. Back on the old continent, growing nationalist sentiment, the rejection of European institutions and the Brexit vote should have rang alarm bells for the elite some time ago. The US elections have confirmed that the globalist establishment both in Europe and America are living in their own world. They are completely detached from normal people, and the system they relied upon to influence and manipulate, with the hope of extending the unipolar domain (economic, military and financial), is no longer effective.

While globalization has brought wealth to the elite, it has also allowed the spread of the Internet, which is becoming more and more effective as a mass-communication tool. The concept of multipolarity is intrinsic to the Internet: everyone can open their own blog, write there own opinion, and spread it to millions of people, influencing the overall narrative. The alternative information, when printed on paper, was reserved for a niche of the population. Now such diffusion of information has become mainstream, relegating the corporate media to an increasingly narrow segment of the population. Compared to 30 years ago, the Internet has reversed the paradigm. Think of yourself: you read this analysis with, I hope, a sense of trust and belief that this information cannot be obtained from CNN, Fox News or the BBC. This is the true and genuine revolution. Trump has been able to interpret these feelings in a masterly manner, collecting all the major frustrations of the American people towards the elite, and making them his own. He has combined his personal passion into an impossible challenge, providing the desperate needs of the people with a voice “at the top” that will scream and yell on their behalf. The anger and the political incorrectness of Trump have been interpreted in a positive way by voters, almost like a concrete gesture of dissatisfaction with the elites of Wall Street, Washington and the giant American corporations.

Trump represents the first step, after Brexit, of the West recognizing a reality that is already multipolar. The American model based on the dollar is in trouble as a result of international institutions related to BRICS. The AIIB created by Beijing, and the IMF’s moves to include the yuan in an international basket, are another indicator. Countries not aligned with US desires, such as China, Russia and Iran, have been joining forces over the last few years to build an alternative economic and financial system to that of the dollar and federal reserve, undermining the US hegemony that is guaranteed by the petrodollar. In the military sphere, NATO is no longer the only global power, and the current situation in the Middle East is a reflection of this. The involvement of Moscow and the alliance with Iran have for the first time prevented the complete destruction of a country like Syria, providing an alternative ending to that experienced by Iraq in 2003. All signs are that America's unipolar moment is gone forever.

The last blow was the political change following the economic and military ones; first in Europe, with the decreasing popularity of politicians, an anti-establishment expression; then with the exit of Britain from Europe; and finally with Trump’s victory in the United States.

From the point of view of national and international policies, Trump’s triumph is yet to be tested and confirmed. As a result, the international balance could yet remain intact. The world is at its biggest crossroad in modern history. The election in the United States, caused by a spreading multipolar contagion, will eventually affect and change forever the international relations of Brussels and Washington. While the rest of the world is already fully part of this epoch-making revolution, the elites of Europe and the US continue to show that they want to fight to the end to reject the new advancing world order.

The American and European oligarchy is faced with a choice: either declare war on everyone and everything, including their own people, or embrace this global shift and try and carve out their own space within it. The challenge is to recognize and accept not being in absolute control of the levers of power but now having to share power with other centers of power like Moscow, Beijing and Tehran. It is a difficult task but certainly not impossible.

Trump offers the possibility of real change in international relations, and the words expressed by leaders like Xi and Putin are the first signs of a real attempt to change 20 years of impositions from Washington’s unipolar domination over the rest of the planet.

On November 9, 2016, much of the world's population, ideally, has united in one voice and with all its energy declared aloud to Washington and to all the systems of power that have made our planet insecure and an economic disaster that enough is enough!

After Brexit and the victory of Trump, the Euro-American elites are faced with a choice that will shape the coming decades: either accept the coming multipolarity and decide to work together with other nations of the world, or descend into prolonged conflict. No one can rule out an attempt to sabotage Brexit or the assassination of Trump, especially if he decides to fulfil his promises. But one thing is certain: they will never be able to stop the progress of these inevitable changes.

If there is something clear from Trump’s victory, it is how an important part of Europe and America’s population has forever broken out of the isolation bubble where it was confined by the elite. They have understood that what has been told to them for decades is false, biased and completely against their interests. The world has changed forever, and there is nothing that the promoters of globalism can do to prevent it.

Trump's Victory Averted World War III -- STEFAN MOLYNEUX

Posted: 16 Nov 2016 06:00 PM PST

 Economic collapse and financial crisis is rising any moment. Getting informed about collapse and crisis may earn you, or prevent to lose money. Do you want to be informed with Max Keiser, Alex Jones, Gerald Celente, Peter Schiff, Marc Faber, Ron Paul,Jim Willie, V Economist, and many...

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Dollar Illiquidity Getting Critical: A $10 Trillion Short Which The Fed Does Not Understand

Posted: 16 Nov 2016 06:00 PM PST

In the latest report from ADM ISI's strategy team, "Dollar Liquidity Threat is Getting Critical and Fed is M.I.A.", Paul Mylchreest argues that mainstream economic luminaries (like Carmen Reinhart) are finally acknowledging the evolving crisis due to the dollar shortage outside the US, a topic which even the head researcher at the BIS shone a spotlight on yesterday suggesting that the strength of the dollar, not the VIX is the new "fear indicator". 

The bitter irony is that the institution which appears to have very little understanding of what's actually happening is the Federal Reserve. We noted Stanley Fischer's speech yesterday when he argued that liquidity is "adequate".... at least he didn't say "contained."

Yet Dollar illiquidity has been one thing that central banks can't control…think SNB and Swiss Franc, BoJ and Yen (full report on this below) and now the PBoC as the RMB looks at 6.90. Mylchreest points out that Fischer could take a look at dollar cross currency basis swaps (chart below) and the dollar liquidity problem would be immediately obvious. 

Fischer could take a look at dollar cross currency basis swaps (chart below) and the dollar liquidity problem would be immediately obvious.

While everybody is now waiting for the Fed to wake up, here at ZH we have been tracking the issue of a global dollar shortage well ahead of the mainstream, starting back in 2009 and continuing with "The Global Dollar Funding Shortage Is Back With A Vengeance And 'This Time It's Different" in March 2015 and "Global Dollar Shortage Intensifies To Worst Level Since 2012" in October 2015.

If the dollar continues to strengthen, it will spell trouble for the recently adopted market narrative that Trump brings higher inflation and higher rates. Another major rotation and market reversals are the last thing that active managers need, or can can afford, in the run up to year end.

From the first section of the report:

We know the narrative...Trump equals higher inflation, a tailwind for commodities and a headwind for bonds. We are "Endgame Inflationistas", but declining US dollar liquidity threatens this narrative near-term.


Dollar illiquidity is something that even central banks struggle to control, e.g. Swiss Franc peg, BoJ losing control of the Yen and now the PBoC/RMB.


The price of the dollar acts like a "Global Fed Funds Rate". A rising dollar tightens economic conditions globally, adding considerable deflationary pressure as is clear from the chart below.



Most commentators are not making the link between a rising dollar and a shortage of offshore dollars (Eurodollars). China's financial system is vulnerable and it's being reflected in RMB weakness.


The lack of a dollar swap between the Fed/PBoC is a glaring omission. We expect BRICS nations to become increasingly irritated about the current dollar-based system.


In his recent speech, "Is There a Liquidity Problem Post-Crisis?", Fed Vice Chairman, Stanley Fischer, concluded that liquidity is adequate. Sadly, that is incorrect and a glance at the chart (below) of negative Cross Currency Basis Swaps for dollar funding illustrates the error all too easily. A US$10 trillion Eurodollar short is a more dangerous and risky beast if the Fed doesn't understand it!


The table below shows the Cross Currency Basis Swap (CCBS) for US dollars using the average for Euros, Yen, British Pounds, Swiss Francs and Canadian Dollars. We discuss the CCBS in more detail below but, in essence, it is the additional cost of borrowing dollars via FX swaps in these currencies compared with what it should be according to interest rate differentials. The more negative the CCBS the more it implies a structural dollar shortage and a liquidity problem in dollar funding markets.



While the problem has been building for more than 2 years, mainstream economic luminaries are (belatedly) starting to take notice. This was Harvard's Carmen Reinhart last month.


"Today, seven decades later, despite the broad global trend toward more flexibility in exchange-rate policy and freer movement of capital across national borders, a 'dollar shortage' has reemerged."

* * *

Much more in the full report below.

How To Determine The Future Price Of Silver?

Posted: 16 Nov 2016 05:45 PM PST

We very often get the question from readers how to read charts, and how to determine the future price of an asset or stock. Given the interest of many investors in precious metals, and lots of reactions we received on our future price of gold 2017 article, we explain in this article how we determine the future price of silver. Readers who are not interested in this chart analysis tutorial can consult our silver price forecast 2017 for our expected future silver price in 2017.

Precious Metals Complex Update...

Posted: 16 Nov 2016 05:35 PM PST

The inflection point in many of the different markets still continues to develop. The precious metals complex is approaching a very critical backtest to some important necklines we’ve been following. I added the GDXJ to the combo chart which shows the HUI, GLD, SLV and the GDXJ have all broken down below their respective necklines and are now in the process of backtesting those necklines from below. I can’t emphasize enough how critical this backtest is to the overall health of the impulse move out of the January low this year.


Posted: 16 Nov 2016 05:35 PM PST

Andy Hoffman joins me to discuss TRUMPflation, the demise of global fiat currencies, the insanity of India's cash ban - and the blatant TREASON of George Soros.   The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free...

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Secession: Is it Time to Give the Federal Government an Ultimatum?

Posted: 16 Nov 2016 05:00 PM PST

What's your take on secession or the federal governments reasoning that the US Constitution provides no 'escape' when the government becomes a totalitarian jerk? The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative...

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Gold Price Closed at $1223.40 Down $0.60 or -0.05%

Posted: 16 Nov 2016 04:06 PM PST

16-Nov-16PriceChange% Change
Gold Price, $/oz1,223.40-0.60-0.05%
Silver Price, $/oz16.91-0.12-0.68%
Gold/Silver Ratio72.3310.4530.63%
Silver/Gold Ratio0.0138-0.0001-0.63%
Platinum Price944.5011.701.25%
Palladium Price718.2513.051.85%
S&P 5002,176.94-3.45-0.16%
Dow in GOLD $s318.82-0.77-0.24%
Dow in GOLD oz15.42-0.04-0.24%
Dow in SILVER oz1,115.534.310.39%
US Dollar Index100.440.190.19%
IMPORTANT NOTE: The following are wholesale, not retail, prices. To figure our retail selling price, multiply the "ask" price by 1.035. To figure our retail buying price, multiple the "bid" price by 0.97. Lower commissions apply to larger orders, higher commissions to very small orders.
SPOT GOLD:1,224.50

American Eagle1.001,261.241,265.521,265.52
1/2 AE0.50623.99645.921,291.85
1/4 AE0.25315.05329.081,316.34
1/10 AE0.10128.47134.081,340.83
Aust. 100 corona0.981,193.051,202.051,226.33
British sovereign0.24290.41303.411,288.91
French 20 franc0.19226.33230.331,233.68
Maple Leaf1.001,234.501,248.501,248.50
1/2 Maple Leaf0.50704.09642.861,285.73
1/4 Maple Leaf0.25312.25327.551,310.22
1/10 Maple Leaf0.10129.80133.471,334.71
Mexican 50 peso1.211,468.881,479.881,227.40
.9999 bar1.001,228.791,236.501,236.50

VG+ Morgan $B4 19050.7725.0027.0035.29
VG+ Peace dollar0.7720.0022.0028.76
90% silver coin bags0.7212,630.4812,916.4818.07
US 40% silver 1/2s0.304,812.934,962.9316.82
100 oz .999 bar100.001,676.501,711.5017.12
10 oz .999 bar10.00171.15176.1517.62
1 oz .999 round1.0016.7717.2717.27
Am Eagle, 200 oz Min1.0018.4719.9719.97

Plat. Platypus1.00959.50989.50989.50

Silver Price backpedaled 11.5¢ (0.7%) to 1691.4¢ on Comex. Gold Price swooned sixty whole cents to $1,223.40.

Monday both metals began an uptrend on daily charts but silver price must hold 1685¢ and gold price $1,220 to validate that uptrend. And of course, uptrends don't go sideways, either, so both metals would have to advance. We might have seen the lows, we might not. Be patient. Will probably turn this week.

Financial news is filled with headlines "US Dollar hits 13 year high." Hot zig, the millennium hath arrived.

Not exactly. Dollar index close up 19 basis points (0.19% at 100.44. Look at the chart,

Now technically it's true that this dollar index close was higher than 16 March 15 (100.04), or 27 November 15 (100.07), and 2 December 2015 (100.02). However, today's intraday high at 100.6 was not as high as March 2015's 100.72.

Look at the chart & you'll spy what I mean. The dollar index is merely challenging the old highs. Yes, it might break above 101 & run away. If so, it will rise a long ways, as high as 120. On the other hand, if it fails here it & falls thru support would be very, very weak. That would constitute an ironclad reversal.

I notice too that not only is palladium roaring (rose $13.05 today to $718.25), but platinum is also raising its head, up $11.70 on a day when the dollar rose & gold and silver fell. Together with silver & gold's stickiness at 1690¢ & $1,220 I am hearing whispers of a bottom to this fall. So far they are only whispers.

Stocks backed up today. Dow lost 54.92 (0.3%) to 18,868.14. S&P500 retreated 3.45 (0.16%) to 2,176.94. No clear sign of a downward reversal yet, but watch for it. It will come.

I was reminded this morning how utterly dull & obtuse I have been about remembering those things that really counted to my dear Susan, birthdays among them. Later I was working on Volume 3 of At Home In Dogwood Mudhole, trying to get it ready to publish before Christmas. By the grace of God, I ran across this little story from 2011 that helped ease my heart considerably:

"Some years I go twelve months without remembering a single birthday, not even my own. Women do not understand this phenomenon. They are born with a tiny gland in their brains, just behind the ear, that doesn't appear in men, called the Birthday Gland. It's working remain one of those mysteries of nature, but it begins to prick them in their hearts whenever a birthday draws closer than thirty-one days. This pricking also stimulates the entire Greeting Card, Present, and Partying limbic system in one of Nature's most ingenious feedback loops. Once all the glands of the GCP&P system begin secreting, a birthday celebration is virtually assured, and virtually impossible to miss.

"As a male, I lack all that equipment, so Susan has adopted all sorts of tricks and stratagems to makes me remember birthdays, especially hers. I reckon she has pretty well reached the end of her rope with me, abandoning subtlety altogether. This year, about thirty days before her birthday, right to my face she began saying, "My birthday is coming up!" She must have feared that wasn't hitting my otic nerve, because finally she spread a catalog in front of me. Pictured there was a Bottle tree. Plain as day, no mystery, no oblique hinting, she pointed and blurted out, "I want a bottle tree for my birthday!" Negotiators need not apply.

" I got it, I got it, I just forgot it. Friday before her birthday on Tuesday I woke up terrorized, realizing that I had not secured her birthday present, nor had I a clue where to buy a bottle tree, nor, with a full Saturday, had I time to hunt one down.

" Susan was out of town visiting her sister, so I hopped up and ran to the office computer in my underwear. I typed "bottle tree" into the search engine, and sure enough, up popped down in Mississippi. I got my order in fast enough to spin your ears off, and I ordered the BIG one, too. Not a chance it would arrive by Tuesday, but I had the dated receipt to prove I had tried.

"Sure as this world it did not arrive, and somehow even my receipt crawled out of my dresser drawer, but Susan did accept my notarized affidavit." [End]
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger
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Whole Worlds Gone MAD!!! SINS OF THE WORLD - October. 2016 (Part 3) Shocking End Times News

Posted: 16 Nov 2016 04:00 PM PST

For The Latest in Sins OF The World And End Times News  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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The Fatal Flaw in Trump’s Economic Plan…

Posted: 16 Nov 2016 02:53 PM PST

This post The Fatal Flaw in Trump's Economic Plan… appeared first on Daily Reckoning.

Does Trump's economic plan carry the seeds of its own demise?

Trump's blasted Janet Yellen and the Fed for keeping interest rates artificially low. But if he's going to spend over $1 trillion on national infrastructure over the next decade, he might have to whistle a different number…

Trump's plan calls for a combination of public and private investment in roads, bridges, airports, utilities, etc.

Low interest rates are the key. Says Wilbur Ross, billionaire investor and Trump economic adviser, "With interest rates so low, this has got to be the best time from a break-even point of view, from a societal point of view."

But Ross indirectly points out the joker in the deck: "With interest rates so low"…

Trump's massive spending proposals have raised the specter of inflation at long last. But those same inflation expectations have the Fed ready to pounce. Fed funds futures are showing a 91% chance of a rate hike next month.

If Trump's plans make it over the hurdles and inflation starts flexing its muscles, the Fed might have to start raising interest rates aggressively to put a lid on it.

But could those rising interest rates play the devil with the entire proposal? Could they, in fact, sabotage the whole thing? Trump's proposals seem to make sense only in a low interest rate world. Their assumption of cheap money may be the fatal flaw, the hole below the waterline…

Goldman put the Trump plan under its microscope. It concluded that "Mr. Trump's infrastructure plan implies that a significant increase in interest rates could be a hurdle for the plan's feasibility."

And Kessler Investment Advisors says that "the Trump administration [needs] low rates to try to sell fiscal stimulus to the nation…"

Here's why…

When interest rates rise, so does the cost of servicing debt — not just new debt, but old debt that gets rolled over in the form of freshly issued Treasuries. And they're rolled over at the going rate, not the old one. So the cost of servicing all that debt rises if rates rise.

Despite the mounting $19 trillion national debt, servicing that debt has been a manageable affair for the past several years.

Last year, for example, Uncle Samuel forked over $223 billion to keep the chains of debt around his neck. That's less than he paid to service his debt 10 years ago, when the national debt was only about 40% of today's.

The difference? Low interest rates. The Fed's monetary contortion acts over the past eight years have nailed rates to the floor. So despite the higher total debt, it's actually cost less to finance.

If rates start rising, a different… darker… picture emerges…

The Fiscal Times reports the findings of the Committee for a Responsible Federal Budget. Those findings show that if 3-month Treasuries rise to about 4% by 2018, and if 10-year Treasuries rise from today's 2.24% to roughly 5.2%, "interest payments on the federal debt will soar to $505 billion in 2018."

That's $282 billion higher than last year. The point being, debt doesn't seem to matter… until it does. University of Chicago finance Professor John Cochrane:

Here's the nightmare scenario: Suppose that four years from now, interest rates rise 5%, i.e., go back to normal, and the U.S. has $20 trillion outstanding. Interest costs alone will rise $1 trillion (5% of $20 trillion) multiplying already unsustainable deficits! This is what happened to Italy, Spain and Portugal. Don't think it can't happen to us. It's even more likely, because fear of inflation — which did not hit them, since they are on the euro — can hit us.

Macro economist Richard Duncan is a Daily Reckoning contributor. Bear in mind Richard's a boomer for quantitative easing and ultra-low rates. But he says in no uncertain terms that interest rates must not be allowed to rise to normal levels. Richard recently fired off a letter of advice to President-elect Trump. From which:

You have… been elected at a time when the global economy is in grave danger of collapsing into a depression, one from which it might not recover for decades — if ever… If interest rates go up significantly, the bubble will pop and the New Great Depression will begin. One wrong move on your part and the economy will spiral out of control into a depression. It won't be short and sharp like 1921. It will be long and devastating like 1929–1945.

One wrong move doesn't allow much wiggle room. Richard says Trump can’t impose trade tariffs or cut taxes, which are both planks of his agenda. They're both inflationary in Richard's estimate. And inflation will bring higher interest rates…

Tariffs would drive up the price of imports and fuel inflation. And cutting taxes would increase the budget deficit, forcing the government to borrow more. Trump needs to spend on infrastructure, says Richard. But he has to get it right, no tariffs or tax cuts… or else face the above scenario.

We don't pretend to know if Richard's right or how it all plays out in the months and years ahead. But of this we are certain: Donald Trump, president, cannot be Donald Trump, reality show star.

The only question is… can he successfully switch roles?


Brian Maher
Managing editor, The Daily Reckoning

Editor's note: A free copy of Jim Rickards' brand-new book, The Road to Ruin: The Global Elites' Secret Plan for the Next Financial Crisis, is on hold for you right now.

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The post The Fatal Flaw in Trump's Economic Plan… appeared first on Daily Reckoning.

America’s Bridges Are Not Falling Down

Posted: 16 Nov 2016 02:23 PM PST

This post America's Bridges Are Not Falling Down appeared first on Daily Reckoning.

There is a good reason why Donald Trump's team has been light on policy details. It seems that every time he gets specific he manages to serve up a steaming pile of hogwash.

So when he told Fox News that he would double-down on Hillary's $275 billion infrastructure boondoggle, The Donald was right on cue. And in pulling his new $500 billion infrastructure program straight out from under his comb-over, he also demonstrated he has no idea what he is talking about on this topic, among many.

No, Donald, the bridges of America are not falling down, and the nation's infrastructure — to the extent that it is any business of Imperial Washington at all — is not "crumbling."

Actually, Washington's primary job is maintenance of the Interstate Highway System, and that's in pretty good shape, including its heavily trafficked bridges.

More importantly, if additional investment is needed in the interstate highway grid, then the users should pay for it with a modest increase in the gasoline tax. Or better still, Washington merely needs to rescind the earmarks that divert upwards of 67% of the existing $45 billion per year of gas tax revenues to state and local roads, mass transit, bike trails, walking paths, weed removal, transportation museums and countless other diversions.

In short order the system would be in tip-top shape. But that's not the half of Trump's wild pitch on this one. Having swallowed the infrastructure myth hook, line and sinker, the GOP candidate went a horrid step further and talked up an "infrastructure bank"— the Democrats' favorite backdoor route to further ballooning the nation's already-crushing public debt.

Despite insisting that "I'm doing the biggest tax decrease," Trump saw no sweat at all in coming up with the half trillion dollar price tag for his latest brainstorm:

" We'll get a fund. We'll make a phenomenal deal with the low interest rates," he said. Who would provide the money? "People, investors. People would put money into the fund. The citizens would put money into the fund," he said, adding that he'd use "infrastructure bonds from the country, from the United States."

Upward of 95% of what passes for infrastructure investment — highways, roads, streets, bridges, airports, seaports, mass transit, water and sewer, the power grid, parks and recreation etc. — are the responsibility of the private sector and should be paid for by users or, arguably, constitute local public goods and amenities.

The latter should be managed by state and local governments and be funded by local users and taxpayers. But give the Beltway lobbies and racketeers an inch and they will take a mile. After decades of federal mission creep, there is virtually no aspect of "infrastructure" spending that has not wormed its way into the federal budget.

That's why the nation has $19.4 trillion of public debt already. But there is also a larger issue. Namely, what's the point of federalism and some 89,000 units of state, county and local government if these taxpayer funded agencies can't even provide for fare box revenues on local bus routes, maintenance of secondary highways and streets or water and sewer services to local residents?

When all of this gets federalized on an ad hoc basis, of course, you end up with the worst of all possible worlds. That is, random redistribution of resources among localities; waste and inefficient pork barrel allocation of funding and a centralization of politics where the permanent governing class always wins and working taxpayers are left out in the cold.

Even in the case of just highways, the extent of mission creep and pork barrel politics is stunning. The 47,000 miles of interstate highways constitute only 1.1% of the 4 million miles of streets, roads and highways in the entire nation.

Indeed, the reason we have state, county, municipal and township government in the United States is precisely to take care of the 99% of road surfaces that the great Dwight D. Eisenhower said should remain a nonfederal responsibility — even as he pioneered the Interstate highway system and trust fund.

Yet less than $15 billion, or one-third of the trust fund's receipts, goes to the Interstate Highway System Ike fathered. The rest gets auctioned off by the congressional politicians to state, county and local roads and to the far-flung array of non-highway purposes mentioned above. Worst still, at the center of this abuse and corruption-ridden Washington infrastructure spending complex is a tissue of myths, exaggerations and lies which provide a veneer of justification for its inherent plunder, waste and unfairness.

That is to say, when the Beltway bandits run low on excuses to runup the national debt they trot out florid tales of crumbling infrastructure, including dilapidated roads, collapsing bridges, failing water and sewer systems, inadequate rail and public transit and the rest.

This is variously alleged to represent a national disgrace, an impediment to economic growth and a sensible opportunity for fiscal "stimulus." But most especially it presents a swell opportunity for Washington to create millions of "jobs." Moreover, according to the Obama Administration's latest budgetary gimmick — and one now apparently embraced by The Donald — this can all be done in a fiscally responsible manner.

Yes, that would be via the issuance of  "green ink" bonds by a national infrastructure bank, as opposed to the conventional "red ink" bonds by the U.S. Treasury. The implication, of course, is that borrowings incurred to repair the nation's allegedly "collapsing" infrastructure would be a form of "self-liquidating" debt.

That is, these "infrastructure" projects would eventually pay for themselves in the form of enhanced national economic growth and efficiency. Needless to say, that's what the government of Japan has been saying for the last 25 years. With debt at 235% of GDP, in fact, what is being liquidated is the nation's taxpayers, not its "construction" bonds.

Besides that, the evidence for dilapidated infrastructure is just bogus Beltway propaganda. It is cynically peddled by the construction and builder lobbies and by state and local officials looking to fob the bill onto any taxpayers except their own.

A recent piece about the phony infrastructure crisis by one Philip K. Howard is par for the course. Howard is a lawyer and founder of a lobby group sporting a name — "Common Good" — which is reason in itself to be wary:

But almost every category of U.S. infrastructure is in a dangerous or obsolete state — roads and bridges, power generation and transmission, water treatment and delivery, ports and air traffic control. There is no partisan divide on what is needed: a national initiative to modernize our 50- to 100-year-old infrastructure. The upside is as rosy as the status quo is dire. The United States can enhance its competitiveness, achieve a greener footprint and create upward of 2 million jobs.

That entire paragraph is pure hogwash. The overwhelming share of the nation's infrastructure is not obsolete or dangerous, is not being starved for dollars; and has virtually nothing to do with the dramatic trend-line of decline in Main Street growth, investment, good jobs and real living standards.

Moreover, the infrastructure that actually does qualify for self-liquidating investment is overwhelmingly local in nature — urban highways, metropolitan water and sewer systems and airports. These should be funded by users fees and levies on local taxpayers — not financed by Washington issued bonds and pork-barreled through its wasteful labyrinth of earmarks and plunder.

In the above quoted passage, Howard attempts to throw in everything but the kitchen sink in his list of purportedly crumbling infrastructure. But as we have seen, the Interstate Highway System is at the center of the federal- government role, but it's not crumbling at all. Indeed, since it could be maintained in high style for 0.17% of GDP, where's the beef?

The key to restoring Main Street prosperity is not launching an infrastructure financing bank as the Beltway bandits keep insisting and even Donald Trump has now advocated. That will result in waste of capital, malinvestments, reduced economic efficiency and an even more bloated public sector than we already have.

The bank that needs addressing, in fact, is the nation's central bank. Until the Fed's massive intrusion in financial markets is eliminated via abolishing the Federal Open Market Committee and government-debt purchases, there is virtually no prospect of reigniting capitalist vigor and growth in the United States.


David Stockman
for The Daily Reckoning

P.S. I want to keep you ahead of the shocks and surprises that neither Wall Street nor the mainstream media can seem to even remotely anticipate.

That's why I wrote TRUMPED! A Nation on the Brink of Ruin… And How to Bring It Back. It's your financial survival guide for the next four years.

For the first time since the 1930s there will be a crash on Wall Street and a recession on main street, but Washington will be powerless to remedy either. All the fiscal and monetary fraud to maintain the illusion of prosperity and soaring financial asset prices will finally be exhausted.

That's why I strongly recommend you order your free copy of TRUMPED!. I don't exaggerate when I say your financial future could depend on it. Go here now to learn how to claim your free copy today.

The post America's Bridges Are Not Falling Down appeared first on Daily Reckoning.

Gold Daily and Silver Weekly Charts - The Fog of Politics

Posted: 16 Nov 2016 01:33 PM PST

Gold Seeker Closing Report: Gold and Silver Edge Lower With Oil

Posted: 16 Nov 2016 01:19 PM PST

Gold edged up to $1232.77 in Asia before it fell back to $1221.67 in London and then chopped back higher at times, but it still ended with a loss of 0.25%. Silver slipped to as low as $16.871 and ended with a loss of 0.7%.

The Great Dollar Shortage: An Update

Posted: 16 Nov 2016 12:45 PM PST

This post The Great Dollar Shortage: An Update appeared first on Daily Reckoning.

Four weeks from today, the Federal Reserve will trigger the next stage of the global "dollar shortage."

The best-case scenario is a wicked stock market correction. The worst case is an entirely new financial crisis.

Jim Rickards has noted that the Federal Reserve would raise its benchmark fed funds rate in December. It would be the first such move in a year. With the election in the rearview, it's time to further tease out the implications…

"The December rate hike was baked in before the election,"

Jim reminds us. No matter who won, the Fed would act.

There's just enough evidence of resurgent inflation to give the Fed cover. And the Fed desperately wants to raise rates so it can cut them again whenever the next recession rolls around — and there's evidence that too is approaching.

What's more, the Fed appears either oblivious or indifferent to the market chaos a rate increase would cause.

We've made mention of a speech by the Fed's No. 2 man, Stanley Fischer — one of only four people in the Fed power structure whose opinions really matter, according to Jim. Fischer said beyond the December increase, rates are set to plateau at levels below historical norms.

That's a longer-term thing. He said something shorter term that Jim finds surprising, indeed alarming.

From a Reuters account of the speech: "Fischer also said he was 'reasonably confident' that spillovers from the Fed raising interest rates would prove manageable for foreign economies to which the United States is interlinked by trade and financial channels."

In other words, the Fed raising rates won't have the effect of jacking up rates in other countries or crashing the value of foreign currencies.

"That's troubling and almost certainly represents wishful thinking on Fischer's part," says Jim.

"In fact, there's already a global dollar shortage."

It's worth revisiting this dollar-shortage paradox — a phenomenon explored back in September. "The idea of a dollar shortage sounds strange to many observers," Jim acknowledged. "Didn't the Fed print $3.4 trillion of new money from 2008–2015? How could there possibly be a dollar shortage with that much new money around?

"The answer is that the world created new dollar-denominated debt faster than the Fed created money."

In the United States, energy firms loaded up on debt, assuming oil prices would stay in the $80–110 range forever. This morning, it's barely $46.

Meanwhile overseas, emerging-market companies loaded up debt denominated in dollars, assuming the dollar would stay weak forever. This too isn't working out as planned; relative to a broad basket of foreign currencies, the dollar is approaching a 14-year high.

symptom dollar shortage

"Over $60 trillion of new dollar-denominated debt was created from 2009–2015," says Jim. "This huge debt pyramid was fine — as long as global growth was solid and dollars were flowing out of the U.S. and into emerging markets."

But soon after the dollar started to strengthen in 2011, the U.S. budget and trade deficits began to shrink dramatically. By 2013, the Federal Reserve began to tighten policy. And global growth was slowing down. "The dollar shortage took hold," Jim goes on. "It seemed that everyone wanted his money back.

"Chinese corporations began to default. European banks started to show signs of stress. The spread between fed funds and the OIS (the overnight index swap rate) began to blow out. Now, in late 2016, the dollar shortage has started to morph into a debt crisis and potential liquidity crisis."

But Mr. Fischer at the Fed seems not to know or not to care about the consequences.

Yesterday, he declared, "It is certainly too soon to declare that a broad reduction in market liquidity has occurred."

Fischer's what-me-worry attitude echoes that of another of the Fed's Big Four decision-makers.

Last month, we told you about Jim Rickards' dinner gathering with New York Fed president William Dudley. Jim reminded Dudley that when the Fed raised rates last year, it set off an 11% stock market correction over the following eight weeks. Was Mr. Dudley not concerned?

He was not. Indeed, he saw no connection between the Fed's action and the stock market. And even if a rate increase did tank stocks, Dudley said it's "not our job" to put a floor under stock prices. "The Fed does not see the market carnage coming," Jim concludes.

"November was volatile because of the election. December may be even more volatile as the Fed leans into the dollar shortage and makes matters much worse."

It might even trigger the crisis Jim anticipates in his new book, The Road to Ruin  (Learn how to claim your copy for FREE here) — released only yesterday. The dollar shortage and the resulting scramble for liquidity could be so severe that the global monetary authorities would resort to what Jim calls the "ice-nine" plan for the money in your bank account.

It would be there… but good luck getting access to it.


Dave Gonigam
for The 5 Min. Forecast

[Editor's note:] Because we have Jim in our stable of editors, we've arranged to publish a special edition of The Road to Ruin — unlike the one you'd get from Amazon or Barnes & Noble. It contains a bonus chapter about the No. 1 investment to own going into the crisis — something that's been available only for the last 16 years.

If you act in the next 13 days, your copy will also be signed by Jim. But there's no reason to wait until the last minute — and every reason to start preparing your portfolio and your household for the crises ahead. And all you pay is a $4.95 charge for shipping the book. Claim your copy now at this link.

Here's a hint of what you'll find inside:

➤The U.S. government's "ice-nine" plan to steal your wealth and prevent you from getting your cash. If you have a dollar to your name, you need to read Page 22

➤The secret program for controlling citizens used by elites and leaders from Caesar and Napoleon to Rockefeller and Roosevelt… through both Bushes and Obama. If you think this is some conspiracy theory, you better see Page 58

➤The exact date by which the elites will finally reach their goal of world money under their control. You MUST take immediate and specific action before that. Hurry to Page 186

➤The institution that will decide what the dollar is worth in the near future. (Hint: It is NOT the Federal Reserve, Congress, the U.S. Treasury or the IMF.) Page 70

➤The climate change "Trojan horse" the elites are using to mask a troubling plan for you and the world's taxpayers. Page 88.

That's just the beginning. There's more. Lots more.

Click here now to claim your free copy. This might be Jim's most important work to date.


The post The Great Dollar Shortage: An Update appeared first on Daily Reckoning.

Medical Training Goes Virtual

Posted: 16 Nov 2016 12:00 PM PST

This post Medical Training Goes Virtual appeared first on Daily Reckoning.

Imagine you're a medical student learning how to treat a car-accident victim just rushed into the emergency room.

The simulated hospital scene is set. Your patient's injuries are serious. The environment is chaotic.

Nurses, technicians and physician assistants are peppering you with questions. Time is critical.

Urgency is depicted in the overlapping voices and painful wails of the patient. Your training mission is to stay focused and synthesize the facts most pertinent to help prioritize your action steps.

You must collect patient data, assess the situation, decide a course of action and act.

But this chaotic scene isn't taking place in some makeshift ER.

You're in a virtual-reality environment.

The chaotic scene you're immersed in is video simulated.

Critical errors will do no real harm. Your VR trainer will point out your mistakes and teach you the correct method as you navigate around the scene.

And it's not some far off pipedream in medical training. It exists today.

Virtual reality and augmented reality are new, rapidly advancing teaching tools for medical and healthcare training institutions worldwide…and the range of usages across the globe is expanding at a fierce rate.

Today, the alchemy of Big Data, computer deep-learning and the advance of chip technology have set the stage for an explosion of VR learning at the highest levels of interactive, online learning — a trend I predicted almost 20 years ago in my book "Trends 2000".

With Big Data's boundless ability to find and deliver facts, charts, videos, infographics, statistics, official records and virtually anything else digitally stored, computer programs can leverage that information to learn from it and power VR programs for higher education.

These programs learn with the student. It enables a teaching environment that accelerates learning through trial and error across a spectrum of educational institutions, disciplines and levels of schooling.

This is what makes VR/AR learning so valuable in a wide spectrum of healthcare disciplines.

Virtual-reality models can simulate an endless range of cause-and-effect circumstances to test and shape the range of a student's knowledge…

In complex surgeries, students can learn about medical conditions in a virtual-reality setting that brings them inside the human body. In counseling settings, the student can engage the personality peculiarities of VR psychotherapy patients.

Another aspect of VR/AR learning in healthcare that makes this powerful trend even more essential is its ability for distance learning.

Medical knowledge and skill vary widely across the globe, even within the United States. As such, VR/AR technology brings distant learning to an unparalleled level.

Before VR and related technology, the ability for training institutions to share medical breakthroughs and innovations was limited to journals, presentations at annual conferences or cumbersome curriculum changes in medical schools.

Today, and increasingly so in the years ahead, doctors with unique specialties, skills and experiences can share them across digital platforms with ease.

The health care industry is becoming one of the dominant, most versatile beneficiaries of VR/AR technologies. The technology is being used in medical procedures, training and patient relations all at once. There is virtually no aspect of health care that won't benefit.

And because VR/AR tech is already practicing actual medicine, psychotherapy and other healthcare functions, the technology is inherently positioned to educate, too.

A single VR training module can include future doctors, nurses, social workers, lab technicians, administrators and more together in specific training scenarios to provide a full dimensional learning experience not possible before now.

The implications of how these types of VR/AR teaching models can apply to a vast array educational needs are staggering.

While the out-the-gate uses now are most prevalent in specific skills training and higher education areas, especially in medical arenas, the future of education on all levels, from kindergarten through doctoral studies, is virtual.

Within 10 years, AR/VR will be a multi-billion dollar industry. Recent estimates forecast 25% of that will be from VR in health care.

While this trend continues to grow, it's still considered in its infancy. And as new applications emerge for VR tech, investors will continue to profit.


Gerald Celente
for The Daily Reckoning

Ed. Note: The most entertaining and informative 15-minute read of your day. That describes the free daily email edition of The Daily Reckoning. It breaks down the complex worlds of finance, politics and culture to bring you cutting-edge analysis of the day's most important events. In a way you're sure to find entertaining… even risqué at times. Click here now to sign up for FREE.

The post Medical Training Goes Virtual appeared first on Daily Reckoning.

The Trump Effect - Ford Shifts Truck Production From Mexico to Ohio! 4,000 JOBS COME BACK to America

Posted: 16 Nov 2016 11:08 AM PST

  The TRUMP Effect: 4,000 JOBS COME BACK to USA! Ford Shifts Truck Production from Mexico. 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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America’s Retirement Crisis: What you need to know

Posted: 16 Nov 2016 10:45 AM PST

 FBN's Adam Shapiro reports on what you need to know about America's retirement crisis. 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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BUSTED! George Soros’ Son, Alex, Caught Demonstrating in Anti-American- Democracy Protests!

Posted: 16 Nov 2016 10:30 AM PST

 BUSTED! George Soros' Son, Alex, Caught Demonstrating in Anti-American-Democracy Protests! Of course, all paid for by his father George Soros the Globalist.~~ The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free...

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Hidden Signs for Gold and Silver

Posted: 16 Nov 2016 09:36 AM PST

Gold, silver and mining stocks moved higher yesterday, even though the USD Index moved higher as well, which had bullish implications. Based on the closing prices and the rally in mining stocks that took place in the second half of yesterday's session, it seems that closing our extra-large short positions and taking profits off the table early in the session was a good idea. However, that's not the only thing that changed in the precious metals market and the area surrounding it – some signs are not as clear, but just as important. Let's take a closer look at the charts for details (charts courtesy of

Revenge of the barbarous relic

Posted: 16 Nov 2016 09:33 AM PST

A former Fed chairman addresses the country on national TV (fiction):

"There should be a sign on the front of the Fed building in Washington saying, 'We work for the elites – the commercial bankers and government – at the expense of everyone else. Try and stop us.' 

"Let's try, shall we? 

"Bankers and politicians have had a mutually rewarding relationship for ages. Bankers create money and loan it out at interest, which can be very profitable. Trouble is, creating money electronically or with a printing press, which is what central banks do, is counterfeiting. In return for a share of the newly-created money, government lets banks get away with it. Government gets bigger, bankers get richer. 

"Bank counterfeiting, which is another name for inflation, fuels a great many evils for which it gets little credit, such as wars and depressions. To put an end to this racket we need to establish a free market in banking, which means open it up to competition. What would prevent banks from counterfeiting on a free market? Property right enforcement. All money is someone's property. If I deposit my money in a bank and pay a fee for the service, I expect to be able to get it back on demand. If the bank can't provide it because the bank's loaned it to someone else, it has violated my property rights. If the law respects property rights consistently, the law will hold the bank responsible. In the long run at least, counterfeiting would be unprofitable. Few bankers will find such prospects tempting. 

"Money was founded on the market. At first it was a commodity that was bartered for other commodities or services. But because of the great number of people willing to accept it in trade, it began to be acquired for trading purposes only – as a medium of exchange, or money. 

"Gold won the competition as the most popular money long ago. Gold is very difficult to produce, which is one of the biggest reasons it became the preferred medium of exchange. When a rare commodity such as gold is used for money, the supply remains fairly constant. 

"People have always known that increasing the money supply dilutes the value of each monetary unit. But apparently they didn't make a connection between this fact and government's eagerness to adopt a fiat dollar as our monetary standard. When new money is created as a matter of policy, as it has been for generations with the encouragement of leading economists, the dollar is doomed, and so are dollar users. 

"We need to remember, though, that banking as such is crucial to higher civilization. As one commentator has astutely observed, without an international banking system most of us wouldn't be alive today. Money and banking make possible the division of labor, which has drastically reduced child mortality and raised living standards wherever free markets flourished. 

"But it's also true that throughout most of banking history, banks promised to redeem their notes in some precious metal, either gold or silver. Though they could keep that promise for only a small fraction of their customers, it still served as a vital check on their propensity to counterfeit. 

"For Americans, the gold standard was killed by presidential decree during the crisis of the Great Depression. In 1971 another president told foreigners they could no longer get gold for American dollars and thus removed the last trace of monetary gold from international trade. Since then all governments have been on a fiat money standard, depreciating their currencies as a matter of policy. 

"The story of gold's disappearance is part of a larger narrative about the growth of government. Besides being a check on bank counterfeiting, or inflation, gold is also a serious restriction on government expansion. For the advocates of big government, therefore, gold becomes a barbarous relic that stands in their way. 

"The corruption of money began when people started keeping their gold with banks, which would issue deposit receipts, or banknotes, as money-substitutes. Because of the banker's reputation for trust and propriety, their notes were readily acceptable in trade as substitutes for the gold locked away in their vaults. People knew they could redeem the notes for gold any time they wished. But because of the convenience of carrying and doing business with banknotes rather than coins, people tended to leave their gold in the bank. 

"Bankers became the money centers of their communities, even though most of the money under their protection wasn't theirs – they could only claim a small percentage of it as a fee for their service. Because money was in their possession, though, businessmen would come to them for loans, and the bankers, seeking additional profit opportunities, found ways to accommodate them. 

"Unfortunately, they turned to counterfeiting as a means of accommodation. What I mean is, they began creating and loaning out deposit receipts that had no gold behind them. The new notes were counterfeit because they were being passed off with the understanding that they were genuine gold substitutes. But in fact the notes only looked like the real thing. The bankers knew, though, that as long as they didn't issue too many of these counterfeit bills, they would escape detection. 

"In extending loans with counterfeit notes or by creating unbacked deposit accounts, they could point to conspicuous growth in the local economy. According to almost everything we read, bankers weren't committing fraud, they were helping business grow, putting people to work, helping them earn a living. As businessmen, the bankers could tell themselves they were merely reacting to the demands of the market, in their case a demand for money. And they reacted by simply printing and issuing it. 

"Looking back, most commentators now find little fault with what they were doing. So what if their notes weren't backed by gold? Today's financial press would say the bankers were 'investing' or 'accommodating' or 'providing liquidity.' You never hear anyone call it counterfeiting, at least not in mainstream circles. 

"But by issuing banknotes or credit not covered by gold, the bankers were increasing the money supply, a process identical in its effects to counterfeiting. An increase in the supply of money confers no broad social benefits – but it does benefit early users of the new money at the expense of others: the first users have the advantage of buying goods at current prices. Later, when prices have gone up, the inflated money supply doesn't benefit anyone. We improve the general welfare by increasing the production of goods, not by increasing the production of money. 

"Nevertheless, the banks' practice of generating unbacked money substitutes prevailed. Invariably, some would go too far and cause depositors to begin doubting their banker's rectitude. A few would start showing up at teller windows wanting their notes exchanged for gold. Other note holders would catch on, and the bank was soon confronted with a run. But without enough gold to redeem, many of the banks had to shut their doors. As the panic spread, even the more cautious banks would experience massive demands for redemption. 

"For reasons of its own, government took a strong interest in the bankers' plight and usually issued moratoriums on note redemption. For a period sometimes lasting years, banks were permitted to default on their liabilities to note holders while being allowed to conduct all other banking activities. 

"Helpful as this privilege was, it wasn't enough. Banks weren't always allowed to renege on their promises, their easy credit policies created bankruptcies and recessions, and besides, bank runs were embarrassing. No banker liked seeing crowds swarming at his door demanding what was theirs, even if the law was on his side. 

"Fortunately for American bankers and their political allies, Europe provided examples of ingenious solutions to the dilemma of bank counterfeiting. During the early years of the twentieth century U. S. bankers imported some of their ideas and, together with a few powerful politicians, devised a plan for a banking cartel. 

"The cartel would consist of all the national banks of the country organized under the authority of a central bank, which would be endowed by government with a monopoly of the note issue. Furthermore, all the deposits of the member banks would be moved to the central bank and held as reserves, with the central bank dictating to its members what fraction of its reserves they had to maintain when making loans. Historically, banks have been held to a ten percent reserve requirement most of the time, meaning they could extend nine dollars in loans for every dollar held in reserve. By dictating reserve ratios for all members, the central bank would control the rate of monetary inflation in a uniform manner so that any one bank wouldn't get more reckless than the others and get itself and the rest of the banks in trouble. 

"Americans didn't like cartels or centralized power, the planners realized, so they called their creature a 'reserve system' instead of a banking cartel and dressed it up with regional branches to avoid the appearance of a concentration of power. As John Kenneth Galbraith observed many years later, the regional design was ingenious for serving local pride 'and for lulling the suspicions of the agrarians.' Since no cartel will work without government guns, it was natural, perhaps, to attach the name 'federal' to it, as well. Thus, the American central bank became known as the Federal Reserve System, or the Fed. 

"Signed into law on December 23, 1913, the Federal Reserve Act was hailed as a major victory of the Progressive Era's fight against the alleged abuses of concentrated market power, in this case, the Money Trust. Banking was at last rescued from the hands of Wall Street and put under the enlightened care of government. Greed had been tamed by the people through their selfless representatives in Congress and their man in the White House. Government would see that the Fed served the 'public interest' and would ensure that it didn't fail. And with the Fed providing the economy with an 'elastic currency,' the ruinous panics and depressions of the past would be gone forever. 

"Those were the beliefs, but the facts reveal a far different story. 

"It was the Morgans and Rockefellers of Wall Street who turned to government to cage their banking competition, especially the growing challenge from non-national banks in the South and West, and came up with a plan for a central bank. It was the big bankers who took the lead in creating a system that would protect them from the hazards of bank counterfeiting and make them a monopoly issuer of bank notes. After the Act became law, it was Morgan bankers who occupied the seats of power in the new system, particularly at the Fed's New York branch where Benjamin Strong, president of J. P. Morgan's Bankers Trust Company, ran the money machine from the Fed's inception in 1914 to his death in 1928. 

"The Fed became an indispensable instrument of profit and power. Beginning in 1914, it cut reserve requirements approximately in half, dropping the ratio from 21 percent to 11 percent, roughly doubling the money supply and permitting both financial aid to the Allies and eventual American entry into the European war. Under the impetus of the war, the Fed became the sole fiscal agent of the Treasury, securing the deposit of all Treasury funds at the Federal Reserve. The Morgans, exploiting its ties with England and its position of power at the New York Fed, became the sole purchasing agent in the U.S. for war materials to be shipped to Britain and France. The Morgans also became the sole underwriter for British and French bonds floated in the U.S. to pay for armaments and other goods the Allies wanted. 

"Government, meanwhile, used the war as an excuse to create what one economic historian has aptly called a 'garrison economy.' Among other things government took over railroads and communications industries, seized hundreds of manufacturing plants, fixed prices, intervened in hundreds of labor disputes, raised taxes, and conscripted a million men for military service so they could join the bloodbath over there, in the European trenches. The Supreme Court, the alleged guardian of the Constitution – which itself is our alleged guardian against an aggressive government – ruled most of the war interventions constitutional, including the draft. Merely questioning the constitutionality of the draft could get you thrown in jail. Thus, the federal reserve – a government-protected, government-serving, elaborately-cloaked counterfeiting cartel – played a crucial role in converting a peaceful America into a bellicose, interventionist state. 

"All the belligerents in the war went off the gold standard and resorted to inflation – counterfeiting – to fund the carnage. Taxes were raised, but only so far. Governments that attempt to fund wars by raising taxes often find themselves facing a revolt on the home front. Wars require massive inflation, and the institution responsible for inflation is the government's central bank. Without government control of the monetary system through its central bank there would've been no war, or certainly not one nearly as long or destructive. 

"The war killed over 19 million people, counting both military and civilian deaths. How many of those deaths could have been prevented if the governments did not control the money supplies? If they had engaged in central bank 'disarmament' instead of slaughtering one another? 

"Rather than pointing out the inflationary theft of resources that underlies all modern wars, many commentators were instead spellbound by the patriotic fervor and the wonderful command and control economy the war brought in its wake. No doubt it was a heady experience for the elites in command and very lucrative for a few others. In this connection I strongly urge you to read a short book written by two-time Medal of Honor recipient, Major General Smedley D. Butler, called War is a Racket. A racket, General Butler said, is something that is not what it seems to the majority of people. Only a small group of insiders knows what it is about. A racket is conducted for the benefit of the very few at the expense of the very many. 

"We hear voices calling for patriotism during war. But who exactly were the patriots during 'the war to end all wars'? 

"Was it J. P. Morgan, who repeatedly said, 'Nobody could hate war more than I do' as he was amassing commissions totaling $30 million as a purchasing agent of war supplies for England and France? 

"Was it Morgan's steel, shipbuilding, and powder enterprises that bought controlling interest in, and editorial control over, the country's 25 most influential newspapers? 

"Was it President Woodrow Wilson who had won reelection with the slogan 'he kept us out of war' then five months later asked Congress to join a war that had already killed 5 million men? 

"Was it Senator Robert La Follette of Wisconsin, who rose in the Senate to dissect Wilson's call for war point by point, arguing that Wilson and his advisors had been colluding with Britain for two years trying to find a pretext for American entry into the fray against England's enemies? 

"Was it the senators who spoke after La Follette and for five hours hotly denounced him as 'pro-German' and 'anti-American'? 

"Was it the majority of Americans who in spite of a well-orchestrated media campaign against Germany still opposed joining the war? 

"Was it the million men who were conscripted and sent overseas, over 100,000 of whom lost their lives? 

"Was it the industrial firms back home, thousands of miles from the slaughter on the Western Front, whose income tax records showed huge profits during the war years? 

"Was it the millions here who kept their mouths shut about the war because the Espionage Act of 1917 and its successor, the Sedition Act of 1918, hung a 20-year prison sentence over the heads of Wilson's critics?

"Washington, Jefferson, Madison, and John Quincy Adams are generally considered patriotic, yet they counseled strongly against American entanglement in foreign affairs. 'Commerce with all nations, alliance with none,' were Jefferson's famous words. America 'well knows that by once enlisting under other banners than her own, the fundamental maxims of her policies would insensibly change from liberty to force,' John Quincy Adams warned his colleagues in a famous Fourth of July speech to Congress. 'Of all the enemies of true liberty,' James Madison wrote, 'war is, perhaps, the most to be dreaded, because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes; and armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few.'

"The Fed, and its partner in theft, the income tax, enabled politicians and their financial backers to ignore their warnings. Should we be surprised that many American war supporters made out like bandits? J. P. Morgan w

Pound drops back towards $1.24 after UK jobs data - but dollar index hits 14-year high on inflation expectations

Posted: 16 Nov 2016 09:11 AM PST

This posting includes an audio/video/photo media file: Download Now

Dollar hits 14-year high as market anticipate Trump spending boom

Posted: 16 Nov 2016 08:59 AM PST

This posting includes an audio/video/photo media file: Download Now

Donald Trump BANNED Speech - Economic Collapse in 2016

Posted: 16 Nov 2016 08:07 AM PST

 Donald Trump gave us warning, it's on us what should we do next.Anonymous - Message to Donald TrumpWHY IM HAPPY TRUMP WONREVEALED IN BIBLE WHY DONALD TRUMPProphetic Alert Donald Trump and the Four Horsemen of the ApocalypseThe Prophecies Donald Trump has FulfilledDonald Trump exposes The...

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What's Next for Gold?

Posted: 16 Nov 2016 08:00 AM PST

In short, if investors believe the future is bright, with businesses increasing investments and with the Fed's magic wand doing wonders to keep inflationary pressures just right without causing too much of a stir, gold might not rise in value. If however, investors believe that this tug of war between the different forces will ultimately get the Fed to be 'behind the curve,' i.e. inflationary pressures to increase; or if investors believe the stock market might experience another bear market, then gold may continue to be a worthy diversifier.

Hidden Signs for Precious Metals

Posted: 16 Nov 2016 07:24 AM PST

Summing up, it seems that the outlook for the precious metals market remains bearish for the following weeks, but it's no longer bearish for the following days. The relative strength of gold, silver and mining stocks compared to the rally in the USD Index has bullish implications and so does the mining stocks' strength relative to gold.

Gold and the Real Interest Rate

Posted: 16 Nov 2016 07:09 AM PST

The real interest rate is one of gold's true fundamentals, with a rising real interest rate exerting downward pressure on the gold price and a falling real interest rate exerting upward pressure on the gold price. However, it is important to keep in mind that the real interest rate is just one of several fundamental drivers of the gold price.

Gold: What's Next?

Posted: 16 Nov 2016 06:47 AM PST

After an initial surge in the hours after Donald Trump’s election, the price of gold has been under pressure. To gauge what’s ahead for the yellow metal, we dissect the forces that may be at play. We have argued in the past that for investors to consider any investment, including gold, in their portfolio, it needs to satisfy two conditions: it needs to exhibit low correlation to their existing investments; and there should be an expectation of a positive return. Let’s evaluate the changing investment landscape for gold in the context of the election:

Breaking News And Best Of The Web

Posted: 16 Nov 2016 01:37 AM PST

Interest rates becoming the main story. Bond yields and mortgage rates up, emerging market bonds and stocks down. Gold and silver stabilizing, mining stocks begin to recover. Political class still searching for an explanation (see “Best of the Web”). Trump’s cabinet takes shape, with mostly old a few new faces.   Best Of The Web […]

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Top Ten Videos — November 16

Posted: 15 Nov 2016 04:01 PM PST

Jim Rickards on the coming mass devaluation and financial market shutdown. Edward Snowden on our prospects for privacy. Several provocative takes on the recent election and what it means for the economy and markets. And of course gold from lots of different angles.                       

The post Top Ten Videos — November 16 appeared first on

What's Next for Gold?

Posted: 15 Nov 2016 04:00 PM PST

After an initial surge in the hours after Donald Trump's election, the price of gold has been under pressure. To gauge what's ahead for the yellow metal, we dissect the forces that may be at play.

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