America Has the Government It Deserves

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“Every nation gets the government it deserves,” said 18th century French philosopher Joseph de Maistre.

If true, and we suspect there is justice here… the United States is a nation of no-good deadbeats.

For the nation hosts a spendthrift government perpetually on the borrow.

By some metrics, the United States now takes on more debt in one year than it did in the first 200 years of its lovely existence.

Its gross national debt rose $1.27 trillion in fiscal 2018… to a record $21.5 trillion. Continue reading

The Committee to Destroy The World: The Federal Reserve

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The general belief among average citizens is that the purpose of central banks is to help the economy by fighting inflation and mitigating financial crisis. It’s a fairy tale that politicians like to encourage. If there were any truth to it, however, where was the Federal Reserve during the crisis of 2007? Rather than helping, it was widening the crisis with its easy money policies.

While central banks are not a government entity, their primary purpose is to create money for the benefit of the government. By mindlessly printing fiat currency, central banks create a shaky illusion of financial stability. In reality, each central bank is a monopoly that controls the production of distribution of currency and interest rates. Most importantly, it also controls gold reserves. While paper currency allegedly has the backing of the government, it is the central bank that controls the value of the currency at any specific time. Continue reading

Why A Dollar Collapse Is Inevitable

 

“Naturally, the smooth termination of the gold-exchange standard, the restoration of the gold standard, and supplemental and interim measures that might be called for, in particular with a view to organizing international credit on this new basis, will have to be deliberately agreed upon between countries, in particular those on which there devolves special responsibility by virtue of their economic and financial capabilities.” 

General Charles de Gaulle, February 1965

We have been here before – twice. The first time was in the late 1920s, which led to the dollar’s devaluation in 1934. And the second was 1966-68, which led to the collapse of the Bretton Woods System. Even though gold is now officially excluded from the monetary system, it does not save the dollar from a third collapse and will still be its yardstick.

This article explains why another collapse is due for the dollar. It describes the errors that led to the two previous episodes, and the lessons from them relevant to understanding the position today. And just because gold is no longer officially money, it will not stop the collapse of the dollar, measured in gold, again. Continue reading

World Currency Profit Game Plan – Phase 1

Recently, I told you I was working on a special world currency report, with profit recommendations for a large basket of currencies.

The simplest way to do this is to start with the Big Five. These major currencies serve as the “drivers” for the minor ones. In my upcoming Part 2, I’ll tell you which of the minor currencies (like the Aussie dollar or the Swiss franc) are tied to which of the major ones, how that impacts their direction, and how you can profit.

Right now, we’ll start with profit recommendations for the five major currencies that drive all the rest. Continue reading

China Unveils a Dangerous New Economic Weapon During a Perfectly Timed Distraction

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Caption: Representatives of the founding nations of the Asian Infrastructure Investment Bank applaud after Chinese President Xi Jinping unveiled a sculpture during the bank’s opening ceremony in Beijing on January 16. (MARK SCHIEFELBEIN/AFP/Getty Images)

 

China’s new Asian International Investment Bank could upset the balance of power in Asia.

On January 16, China inaugurated its new international investment bank. In a lavish, ribbon-cutting ceremony at the renowned Diaoyutai State Guesthouse in Beijing, Chinese President Xi Jinping told the assembled dignitaries that they were part of “a historical moment.”

Yet most people totally missed the significance.

While Xi was inaugurating the Asian Infrastructure Investment Bank (aiib)—a project that former United States Treasury Secretary Larry Summers earlier called a “wake-up call” for America and the most important economic event since America led the world off the gold standard in 1971—the world was focused on collapsing stock indexes.

And for good reason.

Continue reading

China’s Gold Army

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July 2000, soldiers from the 8th detachment panning alluvial gold in Xinjiang. In 30 years, the gold exploration unit has found many large-scale gold deposits, in total found more than 1800 tons of proven gold reserves.

 

Withdrawals from the vaults of the Shanghai Gold Exchange, which equal Chinese wholesale gold demand, in week 46 accounted for 49 tonnes. Year to date withdrawals have reached 2,362 tonnes.

As part of the wide analysis of the Chinese domestic gold market I would like to share that since the seventies there is a special army in China dedicated to gold. It’s called The Gold Armed Police – if you can read Chinese have a look at this Wikipedia page.

It’s no coincidence this army came into existence in 1979, eight year after the US left the gold standard and when China started opening up under the guidance of Deng Xiaoping. As, this was the moment the Chinese slowly started to reform their economy and made the first preparations in their gold market. They knew, among others, the global dollar standard wouldn’t last forever.

Continue reading

‘America is a bomb waiting to explode’

As anti-American as the state-owned (Kremlin) propaganda outlet RT is, there couldn’t be more truth behind this article:

 

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The United States is in decline. While not all major shocks to the system will be devastating, when the right one comes along, the outcome may be dramatic.

Not all explosives are the same. We all know you have to be careful with dynamite. Best to handle it gently and not smoke while you’re around it.

Semtex is different. You can drop it. You can throw it. You can put it in the fire. Nothing will happen. Nothing until you put the right detonator in it, that is.

To me, the US – and most of the supposedly free West – increasingly looks like a truck being systematically filled with Semtex.

But it’s easy to counter cries of alarm with the fact that the truck is stable – because it’s true: you can hurl more boxes into the back without any real danger. Absent the right detonator, it is no more dangerous than a truckload of mayonnaise.

But add the right detonator and you’re just one click away from complete devastation. Continue reading

Deutsche Bank Economist: The Fed Is in Danger of Making a Mistake of Historical Proportions

Please see the source for the video.

 

David Folkerts-Landau, global head of research at Deutsche Bank, says that staying at the zero bound of monetary policy for any longer would be a historic mistake. Continue reading

Richard Duncan: The Real Risk Of A Coming Multi-Decade Global Depression

 

Richard Duncan, author of The Dollar Crisis and The New Depression: The Breakdown Of The Paper Money Economy, isn’t mincing words about the risks he sees ahead for the world economy.

Essentially, he sees the past 50 years of economic prosperity fueled by globalization and easy credit in serious danger of being unwound, as the doomed monetary policies currently being pursued by the word’s central banks result in a massive multi-decade depression that spans the globe. Continue reading

The Next Empire

What this essentially means is that the sword is coming from multiple fronts against America and it is unavoidable at this point. We are watching a new chapter in world history unfold before our eyes. Pax Americana will go into the history books as a new empire takes shape and fills in the vacuum. The only thing that can turn America around at this point is turning back to God after repentance.

 

The Next Empire

 

Throughout history, political, financial, and military leaders have sought to create empires. Westerners often think of ancient Rome as the first empire. Later, other empires formed for a time. Spain became an empire, courtesy of its Armada, its conquest of the New World, and the gold and silver extracted from the West. Great Britain owned the 19th century but lost its empire due largely to costly wars. The US took over in the 20th century and, like Rome, rose as a republic, with minimal central control, but is now crumbling under its own governmental weight.

Invariably, the last people to understand the collapse of an empire are those who live within it. As a British subject, I remember my younger years, when, even though the British Empire was well and truly over, many of my fellow Brits were still behaving in a pompous manner as though British “superiority” still existed. Not so, today. (You can only pretend for so long.)

But this does suggest that those who live within the present empire—the US—will be the last to truly understand that the game is all but over. Americans seem to be hopeful that the dramatic decline is a temporary setback from which they will rebound.

Not likely. Historically, once an empire has been shot from its perch, it’s replaced by a rising power—one that’s more productive and more forward thinking in every way. Yet the US is hanging on tenaciously, and like any dying empire, its leaders are becoming increasingly ruthless, both at home and abroad, hoping to keep up appearances.

Continue reading

Russia Might Implement Gold Standard to Boost Economy: Expert

The recent accumulation of gold by Russia’s central bank has sparked a discussion on whether gold standard would be an appropriate monetary policy measure for the struggling economy.

MOSCOW, December 4 (Sputnik) — Russia’s Central bank has demonstrated an increased scale of gold-buying this year, triggering diverse speculations both in the media and the expert community on whether it is a simple measure of supporting the price for the domestically produced metal, or part of a complex strategy in the economic standoff with the developed world. This way or another, there are voices suggesting its high time for Russia to introduce a gold exchange rate for the nation’s currency amid the prolonged ruble’s plunge in order to boost living standards, consumer demand and spur manufacturing sector. Continue reading

A Chinese Gold Standard?

LONDON — While the 70th anniversary of D-Day last month received a lot of attention, another event, in July 1944 — the Bretton Woods conference, named for the mountain resort in New Hampshire where it was held — was perhaps even more significant in shaping the modern world. It not only led to the creation of what are now the International Monetary Fund and the World Bank, but it also confirmed the central position of the United States dollar in the international monetary system.

Why does this matter for us now? Just as America displaced Britain as the world’s pre-eminent economic power in the interwar period, so, too, the large debts and fiscal pressures confronting the West, and the rise of China and other economic powers, challenge us to think about the future of finance.

For most of the 19th century the British pound had been the world’s “reserve currency,” the currency in which trade and finance were denominated. “As sound as a pound” became a widely used expression. The pound was pegged to gold at a fixed rate of just under £4 per ounce. Continue reading

Mike Maloney: The Dollar As We Know It Will Be Gone Within 6 Years

 

Based on historical patterns and the alarming state of our current monetary system, Mike believes the fiat US dollar is in its last years as a viable currency. He sees its replacement as inevitable in the near term — as in by or before the end of the decade:

All of this is converging with the crazy experiments the Federal Reserve has done.

I absolutely believe that there are economic consequences to this that are inescapable. The Fed is not just in a box; a trap has been set. And before the end of this decade, if there is still a US Dollar around it will not be this US Dollar. It will be a dollar that is tied to a very different monetary system. Continue reading

Steve Forbes: Link dollar to gold or face Great Depression II

 

Influential financial publisher and former presidential candidate Steve Forbes is out with a new warning that the U.S. faces an economic catastrophe due to the Federal Reserve’s loose dollar policy, and returning to a strict “gold standard” is the only way to avoid disaster.

In Money: How the Destruction of the Dollar Threatens the Global Economy — and What We Can Do About It, Forbes blames President Obama’s money team for the stagnant economy, high prices, declining mobility and big government.

“[The Fed’s] vastly misguided monetary policies are now setting the stage for a new economic and social catastrophe — one that could rival the financial crisis and horrors of the 1930s,” he wrote in the book co-authored by Elizabeth Ames. Continue reading