Category Archives: The Economic Decline

Economics, wealth building and finance and exactly what the category title suggests…

What’s Driving Social Discord

Russian Social Media Meddling or Soaring Wealth/Power Inequality?

The nation’s elites are desperate to misdirect us from the financial and power dividethat has enriched and empowered them at the expense of the unprotected many.

There are two competing explanatory narratives battling for mind-share in the U.S.:

1. The nation’s social discord is the direct result of Russian social media meddling – what I call the Boris and Natasha Narrative of evil Russian masterminds controlling a vast conspiracy of social media advertising, fake-news outlets and trolls that have created artificial divides in the body politic, or exacerbated minor cracks into chasms. Continue reading

This ancient city would still be among the wealthiest in the world today

In the year 440 BC, more than two decades into the reign of Pericles, an audit of treasury in Athens showed a massive surplus of more than 9700 “talents”.

A talent was a common unit of measurement in the ancient world, especially for gold and silver, and, based on today’s precious metals prices and the traditional gold/silver ratio (14:1) used by the ancient Greeks, 9700 talents is equivalent to about $700 million today.

At the time, Athens boasted a population of around 43,000 citizens and 28,500 foreign residents… so on a “per capita” basis, the ancient Athenian surplus amounted to just under $10,000 per person in today’s money.

If you compare this figure to our modern world, it’s pretty extraordinary. (Continue to full posting…)

Trump’s ‘middle class miracle‘ in Tax reform

I am hearing (as is the case when CUTS are talked about) that any loss of tax receipts will add more to the national debt.

This is easily solved and we can be left with money left over if we follow a simple formula as do those Americans who live on limited income and do so without going into debt beyond having a mortgage on a house and possibly a loan for a vehicle.
Continue reading

You’ve been Equi-Fuxed!

In the words of Bob Dylan – “the times are a-changing…” – and NOT for the better. My apologies (not really) for the tile of this entry – but understand – due to this breach – YOU are going to need to spend the rest of your life watching on a monthly basis for any security breach in your economic world. From your bank accounts and trading accounts, as well as your Social Security and Medicare accounts and to all of your retirements accounts, including Individual Retirement Accounts (IRA’s) 401K/501C3, et al. No one else can do it. You will need to freeze all credit information (which is restricted to a 90 day period – which will unfrozen the minute that you apply for a new loan, for a car, mortgage or anew credit card, after-which you will need to freeze access to it all over again – for another 90 day period. Welcome to the New World. ~ Jeffrey Bennett, Publisher and President, Kettle Moraine, Ltd.


The Equifax Hack Is The Most Disastrous Data Breach In History Because Now Hackers Have The Credit Information Of 143 Million Americans
Talk about a nightmare. It is being reported that criminals were able to hack into Equifax and make off with the credit information of 143 million Americans. We are talking about names, Social Security numbers, dates of birth, home addresses and even driver’s license numbers. If this data breach was an earthquake, we would be talking about a magnitude-10.0 on the identity theft scale. We have never seen anything like this before, and to say that this will be “disastrous” for the credit industry would be a massive understatement…. (Continue to full article)

Thinking Through the Equifax Security Breach
If you’re one of the 143 million Americans who just got screwed by the massive security breach at Equifax, you may be wondering what you can do to protect yourself going forward. For those who’ve been living under a rock, the personal data that was stolen included names, addresses, social security numbers, and birth-dates. In addition, 209,000 had their credit card numbers stolen, 182,000 had dispute documents with personal data stolen, and an undetermined number of people had their driver’s license numbers stolen… (Continue to full article)

Equifax sent customers to a fake phishing site for weeks to check if their data was compromised in historic breach
And is anyone investigating the underlining crimes of ‘Insider Trading’? On August 21, roughly 2,500 put contracts betting on Equifax shares dipping below $135 by September 15 and traded for a total price of about $181,000. By end of trading on September 8, these puts were worth about $2.6million, according to options analytics firm Trade Alert data… (Continue to full article)

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Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340

Bitcoin In An Illusionary Age

It is altogether fitting that crypto currencies, in particular Bitcoin, have witnessed a meteoric rise in this illusionary age. Not only has their monetary value gone to dizzying heights, but they are now being touted as the destroyer of the current, crumbling monetary order and the next paradigm upon which a new money and banking system will emerge.

In an era where sacrifice, hard work, loyalty, ingenuity, tradition, and independent thought are considered anathemas, while affirmative action, sloth, effeminacy, office seeking, and something-for-nothing schemes are endemic in every walk of life, it is not surprising that non-tangible, computer-generated currencies would become a “natural” feature of such a world. Continue reading

Illegal Aliens Have More Rights Than IRS Taxpayers

“If illegal aliens can break our laws and get rewarded for it, if illegal aliens have more rights than the taxpayers that pay the billions of dollars to support illegal immigration, then there is no law and we become a de facto lawless nation without borders and without sovereignty.” ~ Ron Ewart


For over eleven years we have been writing a weekly column pointing out the injustices inflicted upon Americans and the American taxpayer by government and special interests. But no injustice is more egregious than allowing foreign nationals to invade our country by the millions where they get to profit from the invasion, rather than being put in jail or deported as they would be in any other country. No other sovereign nation on earth allows illegal immigration to exist on such an enormous scale, as does the United States of America. What is even more unfathomable is why this injustice doesn’t fester in the hearts and minds of the American people to the point where they put an immediate halt to it, or fire those in government who are responsible. What does it take for the American people to rise up against this injustice in full force and fury, as they should? Continue reading

Only in California…

California Can’t Afford to Fix Dams, But They Want to Give Universal Healthcare to Illegal Aliens

The land of Pelosi, fruits and nuts has a state debt that is spiraling out of control (over a trillion dollars), they are so short on water they have to buy much of it from neighboring states and they have a healthcare industry that is on the brink of collapse due to the ever burgeoning population of illegal aliens. (Or as Governor Moonbeam would say “undocumented workers”.) Continue reading

What’s In Your Wallet?

All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation. ~ John Adams

Money_gold_bars_HD_wallpaper.jpgAside from those who don’t have much of it, money is one of those things people take for granted. People open their wallets, or purses, and pull out a couple pieces of paper/clothe and expect that they will be able to exchange it for a certain amount of goods or services. But what is that stuff you carry around and use to make purchases? Money you say? I don’t think so.

The Sixth Edition of Bouvier’s Dictionary of Law defines money as: gold, silver, and some other less precious metals. What you hold in your wallets and purses is currency; and you should at least know a basic history of how it came to replace real money. Continue reading

The Grinches Who Stole (And Continue To Steal) Their Children’s (And Grandchildren’s) Future

As I write this, financial markets are bouncing near all-time (artificial) highs, with the Dow hovering around 20,000 (a point that also played a central role in last week’s article, “Making America Great” Through Anti-Christian Economics.)

This sky high (and then some) market exuberance is in no small part due to the next wave of anticipated bailouts of “too big to fail” banks and businesses through the black magic of our fiat economic system.

In case you haven’t heard, after Obama’s mountains of debt spending which followed eight years of ginormous government growth under Dubya, we’re now gonna “Make America Great Again” by – you guessed it! – spending tons of fake money on tons of cool stuff; everything from propping and/or expanding the satanic/Marxist constructs of Social Security and public schools to the funding of ginormous military buildups and road/rail/everything-else improvements is on the table. Continue reading

Dateline: December 27, 2016


I make $2.35 an hour in coal country…
I don’t want handouts. I want a living wage!” The white working class doesn’t need a savior at the ballot box. We need decent pay in the jobs we already have. (Continue to full article)

Herbert Hoover: Godfather of the New Deal
Herbert Hoover was worth $4 million in 1914 as a mining engineer and mine owner. This was before World War I, when the dollar bought 25 times more than it does today. He was good at what he did in the private sector… (Continue to full article)

As Socialism Shattered Venezuela, the Useful Idiots Applauded
Coming one day to Estados Unidos… (Continue to full article)

Static economy due to meddling by Big Government
It’s not just America. Meet the White Obama! … (Continue to full article)

Criminal Banksters and Their Demented Enablers
The central planners/central banksters, who answer to no one, have completely lost their minds. What has happened, beginning in 2008, has never been tried before in the history of the world. These maniacs, who are in charge of our economies and finance, are literally making up the rules and changes as they go along… (Continue to full article)

Goldman-Sachs Caught Manipulating US Dollar — No One Arrested, Slap on Wrist Instead
Goldman-Sachs was ordered to pay 120 million, “to settle charges that it often tried to manipulate a global dollar benchmark for interest rate products over a five-year period… (Continue to full article)

BUNDESBANK Hauls Its Gold Back from New York & Paris Faster Than Planned
Rumors ran wild that the gold was really gone, and that the Bundesbank had one heck of a time trying to round it up. About 45% of Germany’s gold was held at the New York Fed, and that’s where a lot of fingers were pointing… (Continue to full article)

Ex-Fed Advisor: Looming Pension Catastrophe Makes It “Hard to Sleep at Night”
Of all the troubling economic issues in the United States today, the current crisis erupting from mismanaged public pension programs stands out as a uniquely menacing threat to Americans’ financial security. Five major cities have filed bankruptcy over pension woes since 2008, and dozens more are teetering on the brink (Continue to full article)

Why Gold?
The answer to the title question is simply: Why Not? A series of columns and commentary showing the history and importance of the ownership of ‘specie.’ (Continue to full series)

Beginning January 2, 2017, Life, Liberty & All That Jazz will be heard at 5:00 p.m. (Eastern Time) for TWO-HOURS, each Monday through Friday on The Micro Effect.

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Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340

Something WICKED This Way Comes

something_wicked_this_way_comesI stopped trying to predict markets back in 2008 when the Federal Reserve, Treasury Department, Wall Street bankers, and their propaganda peddling media mouthpieces colluded to rig the markets to benefit the elite establishment players while screwing average Americans. I haven’t owned any stocks to speak of since 2006. I missed the the final blow-off, the 50% crash, and the subsequent engineered new bubble. But that doesn’t stop me from assessing our true economic situation, market valuations, and historical comparisons in order to prove the irrationality and idiocy of the current narrative.

The proof of this market being rigged and not based upon valuations, corporate earnings, discounted cash flows, or anything related to free market capitalism, was the reaction to Trump’s upset victory. The narrative was status quo Hillary was good for markets and Trump’s anti-establishment rhetoric would unnerve the markets. When the Dow futures plummeted by 800 points on election night, left wingers like Krugman cackled and predicted imminent collapse. The collapse lasted about 30 minutes, as the Dow recovered all 800 points and has subsequently advanced another 1,500 points since election day. Krugman’s predictive abilities proven stellar once again. (Read complete story)

The Secret of the Bankers ~ The Series

What is Money?
What is money? Really. It’s a token, receipt or an electronic note we get or give for some thing or some doing. It’s a convenient marker to interchange value.

jig-saw_buckOh, and it’s also the most powerful WMD ever been used against us, for centuries.

A small group knows lots about money but they don’t want us to know what it is or how to use it to prosper because they are the ones who have been using it against us.

Maybe it has crossed your mind that something is wrong with money; that it’s not working right; that maybe the whole monetary system is broken; that “economics” is just being used to justify money failures; that maybe banks get richer because we get poorer. Mostly we ignore it because it’s there. Hmm? Continue reading

The New American Dream – A Life In Hock

We live in a society driven by debt.

debtCars, for example, have become hugely expensive (even on the low end) relative to what people can afford – because of the easy availability of credit. Which is the nice word used to speak about debt, intended to encourage us to get into it.

It takes at least $15,000 or so to drive home in a “cheap” new car, once all is said and done. And the “cheap” car will have to be registered, plated and insured.

It runs into money. Continue reading

Economic Reforms That Trump Can Pursue but Not Achieve

great-seal-on-the-dollar-public-domain-460x345A couple of friends of mine have proposed lists of economic reforms that Trump would be wise to follow.

This list is from Joe Salerno. I have known him since 1974. He is a sensible economist.

This list is from John Mauldin. He used to be my business manager in the mid-1980’s. He is a sensible newsletter publisher.

The question is this: Which of these reforms could Trump get through Congress? He might get one. He won’t get two. Continue reading

The Economic Decline: November 16, 2016


Middle Class Jammed By Fed’s Credit Bubbles
dollar_down_de_drainThe American middle class has suffered from painfully low wage growth since The Great Recession. In fact, 82% of Americans of suffering through the worst wage recovery since 1965. It was the first post-recession wage since 1965 without a single month above 2.7% YoY wage (or earnings) growth… (Continue to full article)

UBS Urges Ban On Large Denomination Notes
UBS is the latest to call for Australia to scrap large denomination bank notes, citing that it would help eliminate the black economy… (Continue to full article)

Copper’s Warning to Deflationists
copper_rnd_thumb‘Doc Copper’ is widely viewed as being able to predict upswings and slumps in the economy of manufacturing and real goods, so we should want to get this one in particular right. The post-election rally in Copper futures is on track for putting up one of the strongest months in the past decade. Buyers have retrenched somewhat in the last few days, but… (Continue to full article)

New Home Sales Slowing, Higher Rates Won’t Help
New home sales have rebounded nicely in 2016, but recent developments suggest the new home market could be looking at more softness ahead… (Continue to full article)

US Mint Stonewalling on the Fort Knox Audit
Auric Goldfinger contaminated the gold after all… (Continue to full article)

GoldfingerGold Signals That Trump Is No Different
The good news is that Hillary lost but the bad news is that Trump won. A massive take-down of the gold and silver markets was put into action shortly after it became obvious that Trump was going to take the election… (Continue to full article)

Silver Price and The Winds of Complacency
silver bullet_smlNot even a surprise Presidential election result could sever the bonds that have held prices in check for more than 5 years. From a mainstream media perspective, the financial system is a neat little house of cards… (Continue to full article)

Silver and the Train Wreck
Train-Wreck-300x300The U.S. National Debt is a “train-wreck.” The official debt is nearly $20 trillion and the unfunded liabilities are $100 – $200 trillion, depending on who is counting… (Continue to full article)

Gold: The Cost Of Production Is Near
Gold is no longer vulnerable. It has entered a nice buying area. The $1225 – $1200 price zone is both technically and fundamentally important. Here’s why… (Continue to full article)

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Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340

Good To Me

“When is a crisis reached? When questions arise that cannot be answered. ~ Ryszard Kapuscinski

supermoon2And it is also when the excessive leverage of a financialized market begins to implode, as the holders of claims discover that they have been the unwitting victims of misrepresented counterparty risks .

I am upgrading my computer and I am going to have to spend a little time on that one, getting some software and applications that are misbehaving sorted out.

The US dollar was on another tear higher today, and so we saw some weakness in the precious metals.

The bonds, especially the longer dated ones, have been getting beaten up of late. No real surprise there as they were caught up in a mispricing of risk, or in plainer words a bubble, for quite some time, compliments of the Fed. Continue reading

The Economic Decline: November 14, 2106


Bernie: Democrats Failed Working People
bernie_sanders_ben_garrison“It is an embarrassment, I think, to the entire of [the] Democratic Party that millions of white working-class people decided to vote for Mr. Trump, which suggests that the Democratic message of standing up for working people no longer holds much sway among workers in this country,”… (Continue to full article)

Copper calls Gold Bottom on Trumphoria Surge
copper_rnd_thumbThe reaction of the markets to the election was quite dramatic. Seemingly infused with the idea that Trump would live up to his election promises and make everything right with a sweep of his hands, the markets surged and the S&P500 index broke out upside from its bearish Dome pattern. Gold and PM sector investments were dumped in favor of the broad market. Copper rocketed higher at the prospect of the proposed massive infrastructure spending… (Continue to full article)

Dollar strength will continue as Trump policies fuel US inflation
Expectations of higher inflation would in turn boost expectations that interest rates would climb, which would likely attract inflows into the U.S. dollar… (Continue to full article)

How to Avoid Buyer’s Remorse With Your Mortgage
Detroit_houseMore than 25 percent of first-time homebuyers are unhappy with the lender that they chose to help them secure financing for their house, according to a new report from J.D. Power . Among all… (Continue to full article)

Regardless Of Price, Gold Demand Increases On Rising Market Uncertainty
Buy it and hold it, for the future is unknown… (Continue to full article)

Leaving the military? Here’s a financial checklist for returning to civilian life
Soon-to-be veterans must get their finances in order before leaving the military… (Continue to full article)

Waiting For the Bottom In Gold Is A Fool’s Errand! Dollar-Cost Average Instead
man_with_the_golden_armWhen it comes to precious metals investing, waiting for the bottom is a fool’s errand. We never know how long a price drop will last, or how deep it will go. All signs point to a coming bull market for gold. If you keep watching precious metals prices and waiting to move on investing, you risk being shut out of the market altogether. Stop waiting to get into the precious metals market! Dollar-cost average instead… (Continue to full article)

America Will Live, Financial Markets Will Die!
Trump not only won, but did so in a landslide! Sure, America’s deadly demographics – featuring an explosion of welfare-seeking immigrants; plus tens of millions of disenfranchised “locals” desperately seeking the same, made the result closer than the underlying sentiment of hatred for the establishment, and a desire for change. However, in winning essentially all “swing states,” despite massive election fraud, the soon-to-be-final Electoral College tally of 309-218 is as close to a landslide as you’ll get. In other words, for the second time this year, a major Western power elected to withdraw from tyranny, in favor of the unknown… (Continue to full article)

Kennedy, the Federal Reserve and Executive Order 11110
kennedy_cvr_webOn June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy’s order gave the Treasury the power “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” Five and a half months later – he was DEAD… (Continue to full article)

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Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340

Inside that ‘Great Wage Growth Number’ – Election Jitters

“The wealth of another region excites their greed; and if it is weak, their lust for power as well. Nothing from the rising to the setting of the sun is enough for them.

wall-streetAmong all others only they are compelled to attack the poor as well as the rich. Robbery, rape, and slaughter they falsely call empire; and where they make a desert, they call it peace.” ~ Tacitus

“He who makes a beast of himself gets rid of the pain of being a man.” ~ Samuel Johnson

In our artificial economy real things do not matter so much, but politics and managing the perceptions of the public are of paramount importance.

And so the ‘Goldilocks‘ Jobs Report, which is how the business TV channels described that lukewarm piece of dreck, did little to rally the markets except fleetingly intraday. Continue reading

The Economic Decline: Weekend of November 4, 2016


In its final report before next week’s presidential election, the Bureau of Labor Statistics said on Friday that 94,609,000 Americans are not in the labor force, 425,000 more than last month’s 94,184,000, and the second highest number on record… (Continue to full article)

The Wall Street Journal will launch a new format for the newspaper with fewer sections on Nov. 14, and has begun laying off employees as part of an effort to cut costs, according to two memos reviewed by Reuters on Wednesday… (Continue to full article)

Hundreds of CVS Health employees in Rhode Island and several other states learned Thursday they no longer have a job… (Continue to full article)

Will lay off about 2,000 workers, and sustain a charge of up to $250 million in the current quarter, connected to a “transformation” of its business… (Continue to full article)

To shed 7,000 jobs and invest in its digital platforms to make annual savings of $1 billion by 2021… (Continue to full article)

Average US inflation since 1995 has been steady at around 2.2%. But during that same period, cable TV prices have increased by 5.8% per year on average… (Continue to full article)

Wall St Plan To Acquire Retiree Savings
Hillary Clinton Economic Team planned secret meeting with Wall Street mogul pushing to shift retiree savings to financial firms… (Continue to full article)

US Auto Repossessions On the Rise
As the Financial Times recently pointed out, auto repossessions in the US are soaring and, with the exception of the “great recession” in 2008 and 2009, stand at the highest levels recorded in 20 years. … (Continue to full article)

3rd Consecutive Quarter of Weak Productivity
US Nonfarm Business Sector Output Per Hour Of All Persons YoY was just released for Q3 2016. It printed at … (drumroll) … 0% YoY. That is the third consecutive quarter of negative or zero growth YoY for Nonfarm productivity…. (Continue to full article)

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Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340

Gold and Silver Rally on Uncertainty, Worries For the Status Quo

gold-and-silver.jpgThe VIX spiked higher today, and gold and silver rallied with the Swiss franc as the market felt a chill of Winter run up their backs.

Conventional wisdom points to the sudden rise of Donald Trump in the polls, pulling even with Hillary, at least in the popular vote.

To sharpen it down to a fine point, today was all about the fear of the unknown, for those who are so comfortable and accustomed to be winning. The ‘establishment’ does not care one bit for this added uncertainty. Continue reading

The Economic Decline: November 1, 2016


The Fatal Expense of American Imperialism
The single most important issue in allocating national resources is war versus peace, or as macroeconomists put it, “guns versus butter.” The United States is getting this choice profoundly wrong, squandering vast sums and undermining national security. In economic and geopolitical terms, America suffers from what Yale historian Paul Kennedy calls “imperial overreach.” If our next president remains trapped in expensive Middle East wars, the budgetary costs alone could derail any hopes for solving our vast domestic problems… (Continue to full article)

Turning Cheap Generics Into Overpriced Ripoffs
Drugmakers turn cheap generics into expensive pills. Many drugs have active ingredients that can be purchased for a fraction of the cost… (Continue to full article)

Gold to Play Roll In New Global Monetary System
Lib-StG-wallpaper.jpgGold is a hard currency. It can’t be printed – like fiat money. It is divisible and it does not perish. It retains its purchasing power in the long term. If it’s in the center of the monetary system, it will also be more stable in terms of purchasing power in the short and medium term… (Continue to full article)

Fund Manager: Liz Warren Doesn’t Know Her Place
But in this case, we agree with Princess Pokawantus… (Continue to full article)

How a ‘Pillar of German Banking’ Lost Its Way
And it will come to every bank in America – just as it will to all… (Continue to full article)

Life And Death On Wall Street
Wall St_pigs-by-Victor-Juhasz“We’re in precarious times for sure. What we have done is unprecedented in the history of the United States. We got rid of the benchmark, the gold standard. We don’t have any any stable benchmark anymore. Instead, we have currencies that are being benchmarked off of each other. If you’re measuring your weight you want a scale, right?”… (Continue to full article)

Venezuelans Resort To Weighing Cash As Hyperinflation Builds
“I Feel Like Pablo Escobar”… (Continue to full article)

Gasoline_thmbGasoline Prices Soar After Colonial Pipeline Explosion In Alabama
Here we go again! Any excuse to ‘pump’ us at the pump. Just two months ago – it was another explosion due to massive storms. Waterways and wetlands are being destroyed by faulty and outdated equipment and pumps and there is a plot to install a new massive pipeway over at least four states and what will the future bring?  (Continue to full article)

The Titanic Sinks on Election Day
The US national debt (official only) is nearly $20 trillion and has approximately doubled every eight years. What is the plan for controlling the growth of that debt? Let it grow exponentially and assume something magical will fix it? Hope that congress will cut expenses? Wait for the Easter Bunny to deliver a pile of dollars from La-La land?… (Continue to full article)

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Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340


Debt is the barbarous relic. Not gold

“The first form of culture is agriculture.” ~ Will Durant

20-fr_goldAnd he was right. When human beings discovered 10,000 years ago that the soil would provide more food than they could possibly eat, this changed everything.

For the first time ever, early humans could actually work WITH nature and reliably control their food production.

They were no longer dependent on unpredictable wildlife or the dangers of the hunt.

Nor were they resigned to devouring an entire beast in one sitting, only to end up right back where they started– in search of their next meal… Continue reading

The God of the Market

The Fall by Gustave Doré

The Fall by Gustave Doré

“Since the earliest stages of human history, of course, there have been bazaars, rialtos, and trading posts—all markets. But The Market was never God, because there were other centers of value and meaning, other “gods.” The Market operated within a plethora of other institutions that restrained it. As Karl Polanyi has demonstrated in his classic work The Great Transformation, only in the past two centuries has The Market risen above these demigods and chthonic spirits to become today’s First Cause…

Does anyone doubt that if the True Cross were ever really discovered, it would eventually find its way to Sotheby’s? The Market is not omnipotent—yet. But the process is under way and it is gaining momentum.” ~ Harvey Cox, The Market As God: Living In the New Dispensation

Today was the Comex option expiration for November futures for both gold and silver. Continue reading

Dateline: October 25, 2016


Lying About Inflation While Food Prices Skyrocket
In a recent survey, the Food and Agriculture Organization said its index which monitors monthly price changes for a variety of staples averaged 231 points in January — the highest level since records began in 1990. This was in 2011. How can this be ignored by so many? The government has decided food prices are too volatile to be considered in how we measure inflation… (Continue to full article)

How Free Lunches Break the Bank
Whenever something becomes an “entitlement” which happens when the government makes it a mandatory subsidy, the drain on the treasury and the productive members of society begins. First the government announces , “Everyone should be entitled to health care, housing, a safety net, free school lunches, a good education, a job, protection from viruses, a new hat and a care free retirement, clean air and water, etc” And the second announcement is, “We the government are going to provide for you”… (Continue to full article)

The Shovel and Hole Maneuver For Hiding Gold, Guns and Other Assets
At one time, securing your assets at your local bank branch seemed like a good idea. But we can no longer consider traditional safe deposit boxes as safe… (Continue to full article)

How I Became a Gold-Bug
I went home with my gold coins, and promptly put them in my father’s safe, to which he gave me the combination. They were really the only thing of value in the safe, and from time to time, I used to open the safe to examine the beautiful gold coins… (Continue to full article)

Cash Is Not the Enemy; Central Banks Are
Central bankers know getting rid of cash “would make it easier for central banks to invoke negative interest rates either when inflation is stuck at very low levels or, far more significantly, when the economy is in deep recession and requires substantially negative real interest rates to help stimulate demand.”… (Continue to full article)

Washington’s Endgame: First Your Guns, Then Your Cash?
TIf we don’t allow people to save money in the form of cash, it will filter through the economy, creating a recurring boost. If people want to save, they need to pay what is the equivalence of a tax on those savings to boost federal coffers. Hundreds, fifties, and twenties will become worthless under this plan… (Continue to full article)

US Housing Market Bubble II – It’s Happening Again!
Since everything in the blogosphere goes by what is officially declared by who, so forth, and so on, ditto, ditto, etc, etc, we are officially declaring there is yet ANOTHER bubble – this one in housing. Again… (Continue to full article)

How the ‘Losers’ in America’s Trade Policies Got Left Behind
The U.S. has not figured out how to help people whose jobs were outsourced overseas. Can the problem be solved?… (Continue to full article)

A Tale of Two Gold Standards
The problem in the US and England was not the gold standard, or a flaw in “the theory of the gold standard,” but ill-conceived legal restrictions that weakened the banking systems… (Continue to full article)

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Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340

And They Say I’m Crazy

jokernicholsonAnyone who knows me, and I mean really knows me, knows that I am not that bad a guy. I can be straightforward, to the point of being blunt; but I am honest and treat people fairly. I try to live by the motto; live and let live; as much as possible that is. However, there are a few things I simply cannot stomach, with ignorance; willful ignorance in particular, being at the top of the list.

Due to the medication I am required to take to manage the pain I suffer from in my feet, I am required to undergo routine medical exams to ensure the pain meds are not causing me any harm. The first thing they check is my blood pressure; which routinely reads around 115/65. I find that amazing because of the fact that so many people in this country refuse to accept the fact that our country is on the verge of coming apart at the seams; while they continue to believe that by voting for ‘more of the same’ or the ‘lesser of two evils’ is gonna make things better. Continue reading

October 21, 2016: Afternoon Brew


Cashless Society – War On Cash to Benefit Gold?

target_03Cash is the new “barbarous relic” according to many central banks, regulators, and some economists and there is a strong, concerted push for the ‘cashless society’. Developments in recent days and weeks have highlighted the risks posed by the war on… (Continue to full article)

To Some, it “Feels More Like a Crash”
crash_prediction_of_27_webThese US Markets Have Cracked, and the Cracks are Spreading. “There’s enormous risk in public markets because that’s the one that central banks have distorted to the greatest extent”… (Continue to full article)

All Time High Levels of QE Are Coming
001-0927123324-Federal-ReserveThe Central Banks are going to go absolutely nuclear within the next 18 months.In the last few weeks we’ve seen the Bank of Japan, the Bank of England, the European Central, and the US Federal Reserve all push for fiscal stimulus instead of monetary stimulus.What this means is that Central Banks are collectively saying, “We have reached the end of… (Continue to full article)

gold-and-silver.jpgWhat happens when a government spends as if there is no tomorrow, with no concern for the future? What happens when the printing presses of any nation crank out worthless paper fiat currency around the clock? What happens when those nations, who purchase America’s bonds, one day wake up and say, “no more!”? There is an old adage that says, “He spends like a drunken sailor.” Well, even a sailor stops spending when he runs out of money – but this government does not. The end of the modern Roman Empire draws near… (Continue to full article)

Gold: The Best Performing Asset of the 21st Century
piles_o_gold_02Had you acquired a 100 ounce bar of physical gold on December 31, 1999, your total out-lay would have been $29,025.00. The value of that same gold bar today would be approximately $132,800.00. That could easily pay off a mortgage, provide for a child’s college education, or buy a great many other items that would change the lives of most people… (Continue to full article)

KM PM_bnr_11.14

Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340

October 20, 2016: Morning Coffee


Fiat money and gold
gold-moneyIt is time to revisit the Fiat Money Quantity (FMQ), which totals US dollar money deposited in the banking system, the commercial banks’ money on deposit at the Fed and physical cash.Besides alerting us to how the expansion of fiat money is progressing, an objective of this exercise is to give some guidance on the price relationship with gold. It is particularly appropriate at a time when banking analysts have turned generally bearish, believi… (Continue to full article)

President Bill Clinton called Obamacare the "craziest thing in the world."

President Bill Clinton called Obamacare the “craziest thing in the world.”

Obamacare Rate Hikes for 2017 Even Bigger Than Expected
obamacare_weblogMajor insurers participating in Obamacare have won approval for substantial premium hikes next year in a dozen or more states. The increases range as high as 30 percent to 50 percent, according to… (Continue to full article)

The Great Physical Gold Supply And Demand Illusion
20-fr_goldGold supply and demand data published by all primary consultancy firms is incomplete and misleading. The data falsely presents gold to be more of a commodity than a currency, having caused deep misconceptions with respect to the metal’s trading characteristics and price formation… (Continue to full article)

guns_gold_country_4What happens when a government spends as if there is no tomorrow, with no concern for the future? What happens when the printing presses of any nation crank out worthless paper fiat currency around the clock? What happens when those nations, who purchase America’s bonds, one day wake up and say, “no more!”? There is an old adage that says, “He spends like a drunken sailor.” Well, even a sailor stops spending when he runs out of money – but this government does not. The end of the modern Roman Empire draws near… (Continue to full article)

Gold: The Best Performing Asset of the 21st Century
only_gold_bkgnd.jpgHad you acquired a 100 ounce bar of physical gold on December 31, 1999, your total out-lay would have been $29,025.00. The value of that same gold bar today would be approximately $132,800.00. That could easily pay off a mortgage, provide for a child’s college education, or buy a great many other items that would change the lives of most people… (Continue to full article)

KM PM_bnr_11.14

Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340

October 19, 2016: Evening Cocktails


The Smoke and Mirrors Recovery
recoveryMany among the status quo have defended the last 8 years as a productive “recovery” from the abyss of financial armageddon unleashed by our criminal banking sector. The efficacy of the recovery depends on the person responding to the question. For the vast majority of the U.S. population, there has been no recovery, but instead a steady decline… (Continue to full article)

Silver Eagle Demand Returns With A Vengeance As Political And Economic Turmoil Increases
American_Silver_Eagle,_reverseU.S. Mint Silver Eagle sales surged in the first half of October due to increased turmoil in the political system and economic markets. Silver Eagle sales were strong in the first five months of the year, but weakened in the summer due to several factors. One factor was the fall-off in demand by the Authorized Dealers (wholesalers) who had continued to purchase record Silver Eagles in the first part of 2016, even though retail investor demand had softened.. The other factor … (Continue to full article)

The Current Gold Price Is A Gift
nero_gold_coionTwo millennia ago, according to the Bible, three wise men came to offer Jesus the gifts of gold, frankincense and myrrh. The peak of the Roman Empire is considered to be at the time Jesus was born although it took until 476 AD until the Western Empire finally fell.

Today, just over 2000 years later, we might be standing at another historical peak in the global economy. There are certainly many similarities like deficits, debts and decadence. Just like the Roman Emperors, current leaders have illusions of grandeur of a magnitude that the world has never seen before… (Continue to full article)

The Debauchment of the Currency
Wheelbarrow-of-Money-300x300Economist John Maynard Keynes described the effects of inflation citing Vladimir Ilyich Lenin this way: “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. As… (Continue to full article)

KM PM_bnr_11.14

Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340

Deutsche Bank to Pay $38 Million in U.S. Silver Price-Fixing Case

The question is of course – to whom? Certainly NOT to the investors that got the shaft! ~ J.B.

A statue is pictured next to the logo of Germany's Deutsche Bank in Frankfurt, Germany September 30, 2016. REUTERS/Kai Pfaffenbach/File Photo

A statue is pictured next to the logo of Germany’s Deutsche Bank in Frankfurt, Germany September 30, 2016. REUTERS/Kai Pfaffenbach/File Photo

Deutsche Bank AG (DBKGn.DE) has agreed to pay $38 million to settle U.S. litigation over allegations it illegally conspired with other banks to fix silver prices at the expense of investors, according to court papers filed on Monday.

The settlement, disclosed in papers filed in Manhattan federal court, came in one of many recent lawsuits in which investors have accused banks of conspiring to rig rates and prices in financial and commodities markets.

The settlement had been expected since April, though terms had yet to be disclosed. In court papers, lawyers for the investors say the deal will likely be an “ice breaker” that will serve as a catalyst for other banks to settle. Continue reading

Medicare Paid $9.3 Million in Benefits to Illegal Immigrants

Agency paid out over 14,500 claims to nearly 500 illegal immigrants

money-540x359The Centers for Medicare and Medicaid Services paid $9.3 million in benefits to illegal immigrants in 2013 and 2014, according to an audit from the agency’s inspector general.

“Medicare benefits are generally allowable when rendered to a beneficiary whom the Social Security Administration has determined to be a U.S. citizen or U.S. national,” the audit explains. “Medicare does not pay for services rendered to beneficiaries who are unlawfully present on the date of service.” Continue reading