Rather than attempt to reduce a very complex system to a cartoonish "explanation" of events, we would be better served by seeking out the geopolitical linchpins that have proven key in every era and theater of operations. These include Energy, Transport routes, Military control of transport and geographical chokepoints, and The support or resistance of resident populaces
With a March 16th date set for Crimea's referendum (to confirm that the region, which has an ethnic Russian majority, is a part of Russia) and a few short days after Ukraine's Prime Minister Yatsenyuk is due to meet President Obama in the White House, Reuters reports that The United States will not recognize the annexation of Crimea by Russia if residents of the region vote to leave Ukraine. Obama has said a referendum on Crimea would violate international law and the Ukrainian constitution... but this raises 3 awkward (and apparently hypocritical) questions on the right to self-determination... and pins March 16th as a crucial inflection point between Russia and US.
What is it with this perennial fear the chief money printers have of falling prices? Not that we are likely to see it happen, but if it does, what of it? The problem is of course that when prices decline, the 'wrong' sectors of society actually benefit, while those whose bread is buttered by the inflation tax would no longer benefit at the expense of everybody else. But they never say that, do they? Has any central banker ever explained why he believes deflation to be a danger? No, we are just supposed to know/accept that it is. As Austrian economists have long explained, it is simply untrue that prices must rise for the economy to grow.
Some readers may remember the price of Coca Cola being just 5c back in the early 1950s (for a 6.5oz glass)... meaning the US dollar has lost 93.8% against Coca Cola over the past six decades. Now, we are taught from the time we are children that "a little inflation is good..." And when central bankers tell us they’re targeting an inflation rate of 2% to 3%, that certainly doesn’t seem so bad. 2% is practically just a rounding error. But bear in mind a few things...
Is the U.S. economy steamrolling toward another recession? Will 2014 turn out to be a major "turning point" when we look back on it? Before we get to the evidence, it is important to note that there are many economists that believe that the United States never actually got out of the last recession. In fact, that would fit with the daily reality of tens of millions of Americans that are deeply suffering in this harsh economic environment. But no matter whether we are in a "recession" at the moment or not, there are an increasing number of indications that we are rapidly plunging into another major economic slowdown. The following are the top 12 signs that the U.S. economy is heading toward another recession...
The pain we feel when balanced at the cliff’s edge is entirely of our own making and completely within our control to extinguish. All we need do is to abandon the certainty of belief that is presently stuck in our craw.
Though many may reckon the U.S. government (and its Deep State) are not so much incompetent as merely evil, we suggest incompetence sows the seeds of evil consequences. Why is our government so incompetent? Short answer: because incompetence has been fully institutionalized in every branch, every agency and every nook and cranny of the state.
While the mainstream media in the US are painting a picture of a tyrannical Putin invading and then folding, the Chinese and Russians have a different perspective. On one hand, the Chinese are essentially making the West out to be the belligerents, the Russians to be defending their interests, and the Chinese as the strong diplomats who are pushing for peace. And on the other hand, the Russian papers are highlighting the utter hypocrisy of US foreign policy – it’s OK for America to invade whatever country it likes, but not for Russia to defend its own interests.
With even Warren Buffett saying it's a bad idea, we can't wait to hear how President Obama will explain how his move to raise the minimum wage will create jobs and save the middle class....
Most people, even most people in the C-suite of money center banks (the prime candidates for disintermediation), still have no clue as to what the promises, prospects & risks of Bitcoin are. Well, as UltraCoin launches into beta, these become crystal clear!
Just six days after proudly proclaiming that it was unscathed by the Mt.Gox debacle, another Bitcoin bank - Flexcoin - has admitted that it will be forced to close after hackers stole 896 bitcoin, worth around $600,000, in an attack on Sunday. As The Guardian reports, the company shut its website and posted a statement on Tuesday morning detailing the loss..."as Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately."
The speculative excesses and political power of Wall Street pose a strategic threat to the Deep State, and as a result a showdown between the Deep State and the surface machinery of governance that has been captured by Wall Street is looming. Put another way: we've reached Peak Wall Street and it's all downhill from here. This crisis is simple to summarize: the paper claims on wealth so far exceed actual wealth that something's gotta give. Simply put, the vast majority of these claims will have to be zeroed out, i.e. these phantom-claim "assets" will be voided and declared worthless. This leads to the key question: who will the Deep State throw under the bus to preserve itself and the nation-state?
The Bitcoin phenomenon has now reached the mainstream media where it met with a reception that ranged from sceptical to outright hostile. The recent volatility in the price of bitcoins and the issues surrounding Bitcoin-exchange Mt. Gox have led to additional negative publicity. It is clear that on a conceptual level, Bitcoin has much more in common with a gold and silver as monetary assets than with state fiat money. The supply of gold, silver and Bitcoin, is not under the control of any issuing authority. It is money of no authority – and this is precisely why such assets were chosen as money for thousands of years. Gold, silver and Bitcoin do not require trust and faith in a powerful and privileged institution, such as a central bank bureaucracy. Under a gold standard you have to trust Mother Nature and the spontaneous market order that employs gold as money. Under Bitcoin you have to trust the algorithm and the spontaneous market order that employs bitcoins as money (if the public so chooses). Under the fiat money system you have to trust Ben Bernanke, Janet Yellen, and their hordes of economics PhDs and statisticians.
Why is the periphery crumbling? It's simple: the conditions that enabled rising national surpluses and the distribution of spoils is breaking down for three reasons:
- Energy is no longer cheap (compared to past prices)
- The low-hanging fruit of higher productivity has all been plucked
- The free-money flood of cheap, limitless credit is drying up
As regimes find surplus and credit are both contracting, their ability to placate every key group with spoils is also declining, and the conflicts between them can no longer be patched over with bribery or brutality. Instability starts on the periphery and moves into the core.