Category Archives: The Economic Decline

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

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

DEheadlines_orig

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)

KM PM_bnr_11.14

Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340
1-855-289-7587
Email:
gold@kettlemorainepreciousmetals.com

 

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

DEheadlines_orig

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)

KM PM_bnr_11.14

Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340
1-855-289-7587
Email:
gold@kettlemorainepreciousmetals.com

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

DEheadlines_orig


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)

Invitation
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
1-855-289-7587
Email:
gold@kettlemorainepreciousmetals.com

October 20, 2016: Morning Coffee

DEheadlines_orig

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)

Invitation
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
1-855-289-7587
Email:
gold@kettlemorainepreciousmetals.com

October 19, 2016: Evening Cocktails

DEheadlines_orig

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
1-855-289-7587
Email:
gold@kettlemorainepreciousmetals.com

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

Your Money or Your Life

What’s Behind the Latest Government Scam to Rob You Blind?

“The fact is that the government, like a highwayman, says to a man: Your money, or your life. And many, if not most, taxes are paid under the compulsion of that threat. The government does not, indeed, waylay a man in a lonely place, spring upon him from the road side, and, holding a pistol to his head, proceed to rifle his pockets. But the robbery is none the less a robbery on that account; and it is far more dastardly and shameful.” ~ Lysander Spooner, American abolitionist and legal theorist

money-bag-360x200If a cop wrongfully attacks you, you cannot fight back.

If a SWAT team wrongfully raids your home, you cannot defend yourself.

If a highway patrol officer wrongfully takes your money or your valuable possessions, you cannot get them back without a lengthy, costly legal battle.

It used to be that the Constitution served as a bulwark against government abuses, excesses and wrongdoing.

That is no longer the case. Continue reading

The Weekender: September 10, 2016

DEheadlines_orig

panic-stocks-economy-360x200Stock Market Falls Dramatically As Fed “Backing Away From Easy-Money Policies”
Friday’s huge drop in the stock market is being attributed to market worries that the timeline for QE-free money is rapidly coming to an end, and that a rate hike could bring the economy screeching to a halt… (Continue to full article)

Restless
Today we had the expected correction in the markets. It was the first stock market move greater than one percent since the Brexit decision in July. Stocks came down hard on nothing particularly new. And bonds followed as yields rose, and the reckless pursuit of returns without regard to risks reversed… (Continue to full article)

mo moneeBoston Fed Head Backs Interest Rate Hike
GREED – it’s what’s for dinner – and WE are the dessert… (Continue to full article)

Stock Bubble Will Pop, Social Mood Will Get Ugly
‘Round and ’round the cobbler’s bench
The monkey chased the weasel,
The monkey thought ’twas all in fun
Pop! Goes the weasel. (Continue to full article)

Dell Lays Off 3,000
Requests 5,000 Worker Visas. If it’s Dell – it SMELLS!!! (Continue to full article)

Wells Fargo Fined For Massive Consumer Fraud
One of them could be my mortgage – OOPS! Close the account… (Continue to full article)

One-Percenters Now Destroying Dollar Stores
Making sure that the little guy has nowhere to shop… (Continue to full article)

What’s Killing the Jobs Market?
The terrible job market has vexed an entire generation. It shows no hope of improving anytime soon. Young people are shut out. College students are taking refuge in matriculation without end. Thirty-somethings are zoning out in their parents’ basements and attics. Despair for the future has become a theme of American public life… (Continue to full article)

Who are Worse Liars, Central Bankers or Politicians?
It matters not – it is an incestual relationship… (Continue to full article)

Back At Great Depression Levels: “Millions Of Strong Young Men Just Sitting Around
Someday when people look back, they won’t be surprised by the horrific collapse. They’ll be surprised the system was able to hold together as long as it did… (Continue to full article)

Duke Ellington with Paul Gonsalves

Crescendo & Diminuendo In Blue

This is the hit performance at the Newport Jazz Festival in 1956, which is now considered jazz folklore. Ellington calls it “The Wailing Interval” or “Blow By Blow.”

Gonsalves almost created a riot as he played a tenor sax solo for 27 choruses that stirred the crowd into a frenzy!

This shamefully under-rated and largely ignored tenor-sax giant delivers a lesson here on how to play, and swing, the blues.

Life, Liberty & All That Jazz may be heard at 1:00 p.m. (Eastern Time) for TWO-HOURS, each Monday through Friday on The Micro Effect.

Could it happen to you?

Meet the average Americans forced into poverty by accidents, ill-heath or tragic misfortune in searing photo essay exploring the crisis of the country’s hidden poor.

povertyWhile one in every seven Americans lives below the US poverty line, their stories remain largely untold. For Danish photographer Joakim Eskildsen, what he witnessed traveling around New York, California, Louisiana, South Dakota and Georgia for seven months was a far cry from the ‘mythical’ images he associated with the US as an outsider. But he found the American Dream was persistent within the country as well, working as a dangerous set of ideals that did not account for the realities of more than 45 million people. Eskildsen described his experience as ‘heartbreaking’ and said: ‘The influence of the mass media is massive. Many people experience themselves as losers since they cannot live up to the ideals that are presented to them on TV.’ (Read the REST of the Story)

The Economic Hell That’s Been Left For Millennials (And Everyone Else)

SlaveryByDesignFor all the reasonable criticisms and concerns that are often lobbed towards Millennials as a group, there are at least as many dishonest, self-serving, and often flat out wicked insults added to the mix.

To hear older generations (meaning, anyone older than a Millennial, from “The Greatest Generation” on down to Gen Xers) talk about Millennials, you might get the idea that everything was just peachy keen ’round here in ‘Merica ’til these idiotic, self-absorbed, lazy, apathetic, entitled little brats came long and wrecked everything. Continue reading

Government Workers Now Outnumber Manufacturing Workers by 9,932,000

alicelookingbehindcurtainGovernment employees in the United States outnumber manufacturing employees by 9,932,000, according to data released today by the Bureau of Labor Statistics.

Federal, state and local government employed 22,213,000 people in August, while the manufacturing sector employed 12,281,000.

The BLS has published seasonally-adjusted month-by-month employment data for both government and manufacturing going back to 1939. For half a century—from January 1939 through July 1989—manufacturing employment always exceeded government employment in the United States, according to these numbers. (Read the REST of the Story)

The Scam Wall Street Learned From the Mafia

How America’s biggest banks took part in a nationwide bid-rigging conspiracy – until they were caught on tape

Illustration by Victor Juhasz

Illustration by Victor Juhasz

Editor’s NOTE: What you are about to read is just over four years old – but it could have been written last night. What Taibbi published back in the Fall of 2012 is the story of Wall Street and Politics for ALL time. Small time players go to jail while the BIG crooks laugh and pour another snifter of Cognac in celebration. We are now into the final months of the 2016 (S)election season and these same Wall Street shysters are committing the same fraud on behalf of at least one of the Presidential candidates – much of it through HER Foundation – along with her Foreign Donors.

Change the dates if you wish – the beat goes on… To the wicked go the Spoils! ~ J.B. (Read FULL Story)

The Strange Story of a Murdered Banker in Puerto Rico

As you will soon realize – the long arm of the International Banksters is very long indeed – and they will stop at nothing to protect their power. Heed the warnings. ~ J.B.

Maurice Spagnoletti was hired to clean up Doral Bank.

Did he uncover something that got him killed?

murdered banker

Illustrations by Daniel Zender

On the day Maurice Spagnoletti was murdered, his black Lexus sedan was full of balloons. It was June 15, 2011, the day before his wife’s birthday, and he was planning a celebration.

Spagnoletti, 57, was the No. 2 executive at Doral Bank in San Juan, Puerto Rico. Once flush, the bank had been almost ruined by a fraud scandal, and in 2007 it was rescued by Bear Stearns, Goldman Sachs, and a group of hedge funds. The Wall Street investors had put up $610 million, but Doral continued to lose money, and they were losing patience. In late 2010, Doral hired Spagnoletti, a New Jerseyan experienced in managing large banks, with orders to reduce costs and get Puerto Rican operations under control. Continue reading