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The Monetized New Millennium
Courtesy of the StealthFlation Blog
I'm certain that the Pompom waving Stock Market fanatics and official Federal Reserve cheer-leading squad will have a hard time accepting this, but fortunately, despite their fantasy football gymnastics, facts remain facts. As such, I will categorically point out that even with its substantial sell off, Gold remains by far the best performing asset class of the Monetized New Millennium. That veritable fact is as startling, as it is significant.
Most of the excitable equity equestrians will undoubtedly brush off this striking statement as insignificant, and simply discard it as the typical cherry picking of particular price data during periods of exceptional performance. Well, ok, but that entirely misses the most critical and crucial point here. Namely, that the dubiously debt driven asset-bubble based economy ushered in by the Monetized New Millennium shows no signs of relenting.
QE or no QE, ZIRP lumbers on. They can talk about it all they want, but until they actually let interest rates normalize it's just talk, simply more hot air spewing from the blathering bogus balloon blowers. The Fed can keep reflating the captured capital markets via zero cost funds to their preferred multinational banking institutions, they can keep encouraging the selling of naked digital shorts to contain the Gold market, and they can massage all the economic data they want. However, what they are utterly unable to conjure up out of thin air is legitimate, productive and sustainable economic growth at the ground level for the average American.
It really is quite simple. It's all a matter of confidence going forward.
As soon as it becomes self evident that this monetized, synthetically engineered, juiced market economy can not reach escape velocity, unable to establish genuine sustainable economic growth for all of its citizens, the confidence in the misguided monetization paradigm which the financial authorities have unwittingly embraced will be shattered. At that point, even though the Fed will have lost all credibility, as the economy inevitably drowns in excess liquidity, they will nevertheless double down and once again try to re-monetize. Let's face it, that's all they really know how to do, well, besides looking the other way as Wall Street's invisible bought off sheriff.
Clearly, the renewed called-for further monetary accommodation will invariably fail once more, and simply exacerbate the real structural economic problems we all know we have. An economy addicted to and utterly dependent upon cheap debt monetization that invariably brings with it diminishing returns is not a viable regimen, but rather, a lethal injection for the run down patient.
Having lost all faith in the monetary authorities, America will lose confidence in its ability to grow, and the dollar will start to slide as it becomes clear for all to see that the most indebted nation on the face of the earth, without real and sustainable growth, will be unable to pay down its debts in stable valued dollars. At which point, both foreign and domestic creditors will demand higher interest to finance American treasury obligations.
This is the tipping point where gold will simply explode, as our misguided monetary authorities finally face the music and pay the piper, forced to further debase the currency in order to pay off the monumental national debt in devalued dollars. This is the crucial and absolute truth the designated financial cheerleaders conveniently ignore and don't want you to even think about. Yet, this is precisely why Gold remains the best performing asset class of the Monetized New Millennium. To paraphrase the infamous words of Al Pacino; "It's just getting warmed up here"
The country simply can not sustain higher interest rates, it can only appear to grow via this ongoing monetization abomination. That Jerry-rigged jig is nearly up, and sure signs of its having jeopardized our sustainable future growth are already popping up in many crucial economic data points.
New Monetized Millennium Facts Jack:
- U.S. real median family income has declined to the level of twenty years ago.
- Labor participation rate has dropped to a 36 year low.
- Total U.S. household debt, currently over $10 trillion, nearly tripled during the new millennium.
- U.S. debt to GDP ratio up over 100% since we entered the new monetized millennium.
- Anemic to flat-line average Real GDP growth throughout the new monetized millennium.
- As for the new millennium inflation results, take a peak at the chart below, it will blow your mind.
Reflated nominal equity prices have certainly been a windfall for the minority of Americans that actually own a stock portfolio, but in the end, they do little for the country as a whole, and the shortsighted Fed policy effort may well have greatly harmed our Nation. In terms of genuine and sustainable economic growth that lifts U.S. boats of all shapes and sizes, the Fed's fantasy free funds will end up flooding the ship of state.
The financial sector now accounts for over 30% of all corporate profits. In my view, as mass counterfeiters, we are simply ignobly living off the vestiges of a world reserve currency which was so honorably achieved by a once monumentally productive America. Today, the West prints and parties while the rest of the world works and weeps, that is not a sign of exceptionalism, it's a sign of weakness and an empire in decadent decline.
So when the next eternally eager equity beaver tells you that gold is nothing but a barbarous relic from monetary ages gone by, you can tell them this; "As the best performing asset class bar none, Gold officially welcomes you to the Monetized New Millennium".
The bottom line is that we require genuine productive growth to maintain a stable dollar and pay back our monumental national debt. The Federal Reserve's monetization abomination modus operandi evidently has diminishing returns, and eventually will blow up a debased fiat currency..................same as it ever was.
You show me sustainable growth through monetization and I'll take my bat & ball and go home. Until then, you're blowing hot air up my backside.
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The motto of the campaign to go for profit is not to negotiate with our setting of moral conduct.
History shows no other.
There are times people is cheering up about the economy, but it's a great time for hypocrites.
Productivity is no guarantee for a successfully spent life.
Productivity under the guise of making profit but is, a guarantee, that there will be, the better it works, a mass of betrayed people.
Usually to spot the most in the weakening of a phase of high productivity. When that piece of truth is not to oversee.
High productivity equals the chance for high profits and, a lot of people that are paying for, usually not enthusiastically.
The millennium begins to realize just that.
To start the game again there is need of a new batch of people, empty with the facts of the outcome of such enterprises.
Or do you think the market to sell lies still has terrain to go north.
Capitalism is a body and as a body it has a lifespan.
At least we will all be able to dress well for the demise of the empire.
LOL!
There's unlimited space between 1% and the zero lower bound. .001, .0001, it goes on forever and we'll simply grow into it as a store of wealth. For means of exchange, we'll use bitcoin once it dishoards.
Proza(c).
“The man who never has money enough to pay his debts has too much of something else."
Every now and then a very notable and important event occurs, sometimes it slips by without even being noticed. For months the major world currencies have traded in a narrow range as if held in limbo by some great force. This has allowed people to think we were on sound footing as central banks across the world continued to print and pump out money chasing the "ever elusive growth" that always appears to be just around the corner. Recently some currencies have made multi-year highs or lows depending on the match-up .
Because of weak demand for goods and most of this money flowing into intangible investments inflation has not been a major problem, but the seeds for its future growth have been planted everywhere. John Maynard Keynes said By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Weakness in the value of the Yen, Pound, and Euro must not go unnoticed. More on why this may be a signal that currency trading is about to get very wild in the article below. Please note, this may also be sending a signal that the whole system is unstable and the stock market is about to drop like a stone.
http://brucewilds.blogspot.com/2014/09/caution-alert-currencies-may-get-wild.html
I fear we are past the point of no return. Too many barnacles and the ship is shrinking. One fact that doesn't get much air time on ZH is that the fed is only trying to give the pepo and politicians what they want. Sumpin for nuttin. An evil bunch for sure. This stuff has been hitting me little by little and in big doses since 2008. It's depressing to live through the decline of a once great nation. Don't want to go through life aka sour puss. Any ideas on how to "think positive" and "sieze the day", live fully while rome burns. MY ROME.....otherwise must find some motivation to get up. A new day, a new crime by Obama, and I have ZH here to assure me there is no opposition. Not your recipe for happiness, aye.
the fed is only trying to give the people and politicians what they want…
Our monetary system is a threat to everything the people hold dear. Americans are alarmed at their loss of jobs, at their lack of opportunity, at the threat of perpetual war, of open borders and wealth redistribtuion, of the deficit, taxes, student loans, the cost of food and fuel and health care and an education.
The money-changers, instead of giving the people what they want, i.e., a stable medium of exchange and property rights, have destroyed the purchasing power of the dollar, and thus property, through inflation. In the process they have reduced the standard of living for 90% of Americans. They have stolen peoples savings through ZIRP compounded by inflation, they have distorted the returns on investments by inflating the money supply, they have deliberately manipulated the housing market and through fraud destroyed the home equity of millions of homeowners resulting in foreclosures for others.
The bankers, by accommodating massive deficit spending for the Government, further eroded the dollar while transferring the difference from the people who earned the money to the Government and the banks. Now, the richest nation on Earth is insolvent with a debt that is unsustainable and an economy in chaos – all the result of the Fed’s monopolistic debt-monetizing monetary system.
Worst of all, the Fed has destroyed the sovereignty of not just the U.S. but entire nations and their peoples to enrich the bankers through perpetual war as they force all peoples down an international road to world socialism via wealth redistribution and the purposeful destruction of their economies. At the end of the road is a World Government that the bankers will control through their power and wealth.
What the people really want is their country back. The good news is, they will take it back by demanding to keep the fruits of their labor. They will do that by dethroning "the international banking elite and their control over the money supply"... if Putin doesn't beat them to it.
that sums it up very well, thank you.
sounds as if henry cabot lodge sr. was the nostradamus of the the 1913 federal reserve act..
john danforths statement hit the nail on the head, congress people knew they voted in a legacy of bankruptcy for future americans, while defrauding americans in order to get re-elected, some things just don't change.
i'm not a computer person but i wish i could make these 6 timely quotes, 2-3 from 1913 when presumably they were debating the federal reserve act, and 2-3 from 1932, where some economist figure is where were at now concerning relative to financial assestments, appear on a thousand more politically orientated sites that allow comments.
IMO is the printing started when the dollar went completely fiat (I suppose some would say it was when banking went fractional, but we'd have to go a little too far back). What does it matter if the printed dollars end up on the balance sheet of foreign banks rather than the Fed?
Since the gold window closed the SP500 had about 2000% gains in dollar terms, since the gold window closed gold had about 2000% gains in dollar terms ... huh, how about that?
"We need to pay back our national debt."
That will never happen. They are hyperinflating the debt away until there is a global reset for everyone.
If you're gonna quote off the article, please don't cut a sentence in half and include a period while doing so.
Capiche?
That's kinda the entire point Buba..................
This.
My only comment is: gold (and silver) are a storehouse of value, if (a monstrous "if" at that), and only if, you hold the gold in your hand. Not in an asian "safety deposit box", or the local bank "safety deposit box", or an ETF, or COMEX paper gold, but in your fucking hand.... period. No ifs, ands, or buts. You don't hold it, you don't own it. Also, it should be protected by S&W, Kimber, Colt, or Mossberg protection services. (P.S. With Benchmade as your closest bodyguard)
<--- http://www.youtube.com/watch?v=CirrRY_6aaU&t=14s
<--- tacky
<<Means so much more when I see!>>
That was well written. In these times of PM despair(while I watch the Dow partys) it is helpful to read the facts again.
Thanks Bruno
the money system is a blatant failure requiring
extraordinary judicial, political, financial and monetary
actions to prop it up. the question is whether the
judicial, political, legal and social fabrics will
all be destroyed to avoid this simple recognizable
and obvious fact, or not? the bankers have voted, they
say sure, burn it all down. when will the people
seek their referendum or even be apprised of the
circumstance?
The parasites pile on until something shakes them off or the Host Dies
"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it". — Congressman Louis T. McFadden in 1932 (Rep. Pa)
"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen.
There is not a man within the sound of my voice who does not know that this nation is run by the
International bankers — Congressman Louis T. McFadden (Rep. Pa)
"Some people think the Federal Reserve Banks are the United States government's institutions.
They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers" — Congressional Record 12595-12603 — Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932
"I have never seen more Senators express discontent with their jobs....I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected." — John Danforth (R-Mo)
"These 12 corporations together cover the whole country and monopolize and use for private
gain every dollar of the public currency..." — Mr. Crozier of Cincinnati, before Senate Banking and Currency Committee - 1913
"The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the
currency... I do not like to think that any law can be passed that will make it possible to submerge the gold standard in a flood of irredeemable paper currency." — Henry Cabot Lodge Sr., 1913
.
http://www.jesus-is-savior.com/Evils%20in%20Government/Federal%20Reserve...
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Alex McMurray "Jesus Always Gets His Man" 7-27-2013 Live at Fantasy
http://www.youtube.com/watch?v=u1kUpwoq6fM
All form of .gov are an imposition of a jurisdiction between the flesh and blood living soul, and the creator. Just say NO.
The designers and executioners of the 'system' have been tuning the deception of 'freedom' for centuries, whilst the entire time constructing a fractional reserve fiat prison farm, where YOU are the cow. Whether for milk or beef is still to play out.
When we accept, the vampires feed for free, on our blood, sweat and soul. Stimulating reading/viewing here:
Your LEGAL name, and the story of who 'owns' you (until you withdraw consent):
http://kateofgaia.wordpress.com/
http://nonamesheremate.wordpress.com/
By The 'Consent of the Governed' - Steve Bates film
https://www.youtube.com/watch?v=IMjPbbM5fPU&feature=youtu.be
Facts and Lies of the US 'democratic constitutional republic'
http://worldtruth.tv/40-outrageous-facts-most-people-dont-know/
Century of Enslavement: The History of The Federal Reserve
https://www.youtube.com/watch?v=5IJeemTQ7Vk
the truth will always bear out, just in
time of absolute necessity. otherwise,
man is on the token of dream time.