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Russell Napier Declares November 16, 2014 The Day Money Dies
From Russell Napier of ERIC
It is with regret and sadness we announce the death of money on November 16th 2014 in Brisbane, Australia
‘A mark, a yen, a buck, or a pound
A buck or a pound
A buck or a pound
Is all that makes the world go 'round;
That clinking, clanking sound
Can make the world go 'round.’
“Money” from Cabaret by Kander & Ebb
In the musical Cabaret, Sally Bowles and the Emcee sing about money from the perspective of those witnessing its collapse in value in real terms in the great German hyperinflation of 1923.
Less than a decade later, and a continent away, a young lawyer from Youngstown, Ohio noted on July 25th 1932 how money’s value could also fall in nominal terms:
"A considerable traffic has grown up in Youngstown in purchase and sale at a discount of Pass-Books on the Dollar Bank, City Trust and Home Savings Banks. Prices vary from 60% to 70% cash. All of these banks are now open but are not paying out funds."
The Great Depression - A Diary: Benjamin Roth (first published 2009)
In Youngstown the bank deposit, an asset previously referred to as "money", had fallen by up to 40% relative to the value of cash. The G20 announcement in Brisbane on November 16th will formalize a "bail in" for large-scale depositors raising the spectre that their deposits are, as many were in 1932, worth less than banknotes. It will be very clear that the value of bank deposits can fall in nominal terms.
On Sunday in Brisbane the G20 will announce that bank deposits are just part of commercial banks’ capital structure, and also that they are far from the most senior portion of that structure. With deposits then subjected to a decline in nominal value following a bank failure, it is self-evident that a bank deposit is no longer money in the way a banknote is. If a banknote cannot be subjected to a decline in nominal value, we need to ask whether banknotes can act as a superior store of value than bank deposits? If that is the case, will some investors prefer banknotes to bank deposits as a form of savings? Such a change in preference is known as a "bank run."
Each country will introduce its own legislation to effect the ‘ bail-in’ agreed by the G20 this coming weekend. The consultation document from the UK’s Treasury lists the following bank creditors who will rank ABOVE depositors in a ‘failing’ financial institution:
- Liabilities representing protected deposits (in the UK the government guarantee protects 100% of deposits up to the value of GBP85,000)
- any liability, so far as it is secured
- Liabilities that the bank has by virtue of holding client assets
- Liabilities arising with an original maturity of less than 7 days owed by the banks to a credit institution or investment firm
- Liabilities arising from participation in designated settlement systems
- Liabilities owed to central counterparties recognized by the European Securities and Markets Authorities… on OTC derivatives, central counterparties and trade depositaries
- Liabilities owed to an employee or former employee in relation to salary or other remuneration, except variable remuneration
- Liabilities owed to an employee or former employee in relation to rights under a pension scheme, except rights to discretionary benefits
- Liabilities owed to creditors arising from the provision to the bank of goods or service (other than financial services) that are critical to the daily functioning of its operations
The above list makes it clear that deposits larger than GBP85,000 will rank ahead of the bond holders of banks, but they will rank above little else. Importantly, both borrowings of the banks of less than 7 days maturity from other financial institutions and sums owed by banks in their role as counterparties to OTC derivatives will rank above large deposits.
Large deposits at banks are no longer money, as this legislation will formally push them down through the capital structure to a position of material capital risk in any "failing" institution. In our last financial crisis, deposits were de facto guaranteed by the state, but from November 16th holders of large-scale deposits will be, both de facto and de jure, just another creditor squabbling over their share of the assets of a failed bank.
Interestingly, HM Treasury uses the word ‘failing’ rather than "failed" in its consultation document and investors could find their large deposits frozen for a prolonged period in any "failing" institution while the courts unpick the capital structure and decide exactly where any losses should fall.
If we have another Lehman Brothers collapse, large-scale depositors could find themselves in the courts for years before final adjudication on the scale of their losses could be established. During this period would this illiquid asset, formerly called a deposit and now subject to an unknown capital loss, be considered money? Clearly it would not, as its illiquidity and likely decline in nominal value would make it unacceptable as a medium of exchange.
From November 16th 2014 the large-scale deposit at a commercial bank is, at best, a lesser form of money, and to many it will cease to be money at all as its nominal value can fall and it could cease to be accepted as a medium of exchange.
Fortunately, the developed world’s commercial banks are flush with central bank reserves and these are instantly convertible into the banknotes which they may need to meet demand from depositors. While the huge level of reserves on the balance sheet is a buffer, the funding of fractional reserve banks is still very negatively impacted by a shift from deposits to bank notes. With deflationary forces gathering momentum, this further impediment to the extension of commercial bank credit would be another factor preventing central bank monetary largesse translating into growth and inflation.
As the world’s smartest lawyer Charlie Munger is fond of saying, "Show me the incentive and I will show you the outcome." Some simple mathematics reveals that the November 16th announcement will create a very major incentive for investors to change deposits into banknotes.
Consider that the standard pallet measures 1 metre by 1.2 metres and will take 84 piles of Euro 500 banknotes. The UK’s Health and Safety Executive recommends that the height of a pallet should not exceed the widest side of its base. A 1.2 metre high pile of banknotes contains 11,000 notes and thus each pallet can safely hold 84 piles of 11,000 banknotes. A pallet of safely stacked 924,000 Euro 500 banknotes is therefore worth Euro462m.
There is a small warehouse for rent near Newry, at the foot of the Mourne Mountains in Northern Ireland. Given its dimensions (16.5m x 9.0m x 5.6m) one could stack 468 pallets of 500 Euro notes representing Euro 216bn. At the current bank deposit rate of minus 50bp per annum, the cost of carry to have Euro 216bn on deposit with a commercial bank would be Euro 1,081m. The annual cost of the warehousing space is around Euro 7,000!
Now clearly this warehouse will need significant private security, but in Northern Ireland there is an over supply of such security due to a structural change in market conditions, and prices are reasonable. Anyway, just how much security could you afford if you charged clients 20bp to hold their Euro 216bn, and generated an annual fee of Euro432 million, with an annual saving to your clients of about Euro 648 million?
This represents both a yield improvement and a significant improvement in capital risk compared to bank deposits, as bank notes cannot be "bailed in." There is therefore an annual profit of around Euro432 million for the manager with a warehouse and friends in low places. Anyone for the "Mourne Or Newry Enhanced Yield Banknote Actively Guarded Security", or MONEY BAGS for short?
As ever, there is a first-mover advantage. There are only about 600 million 500 Euro notes available, though sizeable arbitrage profits still exist on warehouses full of 200 Euro notes. As the function of such warehouses is focused on the role of money as a store of value, a role no longer fulfilled by the large-scale deposit, one should expect a premium to develop, and potentially a secondary market in note-filled, well-protected warehouses. For warehouses full of German Euro notes --- those are the ones with a serial number beginning in X --- a particularly high premium may arise due to risks of a future Euro break-up.
Irish legend tells of an X at the end of the rainbow marking the position of a pot of gold. In our post- Brisbane world, investors may be content to find just a bundle of paper marked with an X.
Oh, Mary, this London's a wonderful sight
With people here working by day and by night.
They don't sow potatoes nor barley nor wheat,
But there's gangs of them diggin' for gold in the street
At least when I asked them, that's what I was told,
So I just took a hand at this diggin' for gold,
But for all that I've found there, I might as well be
In the place where the dark Mourne sweeps down to
the sea.’
Percy French 1854-1920
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Martin Armstrong has it in oct 2015
Nickels butchez or is it knuckles bitches, now I'm confused.
money won't die! it can't die!
Currency is dying!
NO!
AMMO YOU MOOK!
So far the sheep have shown an amazing level of passivity to these kinds of provocations. You would think Cyprus would have started bank runs all over southern Europe, but no. Everyone perfectly happy to remain seated on the railroad tracks.
I say nothing happens. No bank runs, no preference for "bank notes" over "bank deposits." The sun will rise in the East, the day will pass without a single memorable event and everyone will go to bed utterly unaware of anything having changed at all. Then it will happen the next day, and the next, and the next and the next.
this is not a news. We all knew that.
Bitcoin is the rebirth of money.
Sunday the 16th your money will be safe as long as you watch football
as long as you're not taking the Oakland Raiders & the points.
So the thought process is:
The bank cannot be trusted so I'll shift my bank promise from a deposit to a note, but still keep my stored life hours and labor wholly inside the banking system?
Makes perfect sense. Sheep exist to be sheared and the FED is the self-appointed shepherd.
So "excess deposits" rank behind OTC derivatives...I can't imagine THAT being a problem </sarc>
No such thing as depostis any longer... And it's gone...
https://www.youtube.com/watch?v=_nVk25ZvTkU
Jim Rickards also announced the death of money.
http://www.planbeconomics.com/2014/06/jim-rickards-on-death-of-money.html
Is that the most-plugged blog on ZH?
Since 2008 all attempts at European Federation or Confederation, and Lisbon Treaty, have failed, and ECB can not legally pay for bank insurance or government bailouts.
Draghi and EU leaders have not been able to wrangle a legal framework from tissue and cloth, the law did not 'fall' on their side, and probably nerver would.
This will be the first legal backward step, and re-definition/re-certification of a non-Federated EU. Now each will be alone.
This will define the law so that no future ECB or EU or political votes for bail-out or bail-in (e.g. Cyprus) will occur going forward.
Each EU country and bank are on their own, as it was originally agreed when the EU was first formed. Not strength in numbers, but survival of the fittest.
No Federation.
No EU FED.
Each will fall individually without any EU savior going forward.
Next will be significant reductions in depositor insurance in EU and possibly all G20 countries, and US.
Ran across this article this morning....
All ATM machines for all banks in Thailand will be offline on 11/14/2014... Things that make you go hmm...
http://www.thaivisa.com/forum/topic/776136-all-atms-to-temporarily-close...
Actually bank notes can be bailed in, and it's much simpler: just press print.
When do I have to stop using the line, "it's like money in the bank?"
Yesterday
None of this is news. The only difference between now and the 1930s is deposit insurance. Large depositors know this. That is why they use short term gov bonds. Yes, still paper, but at least a single bank isn't your counterparty.
Is anybody stupid enough to think they have your money in a safe somewhere?
The typical man on the sofa is seldom aware of the dangers that he is not wired to be aware of.
Typical man on the sofa is at the internet watching this
Man that is large. That's got to be over the UK's 85k limit, fo sho.
The typical man also doesn't have much more than $0 in savings, let alone $100k.
Sad, isn't it. Did you see the article here where millenials have a -2% savings rate? WTF!
Latest mouse trap to be promoted by the enablers:
Check the photographs, and you'll notice that they give this fucking thing a gold-colored finish, like your 'golden' credit card. Bankers have a very glib sense of humor. They might at least offer a solid 14K bracelet.
Dog collars. woof woof.
The name is another inside joke.
1. Phonetically: /’e-n?-m?/ = ENEMY
2. NM = GNOME (as in Swiss Gnome)
3. And KNOW ME (tracking, monitoring and profiling the cardholder)
There's more...
Bitcoin is the same Ponzi garbage, except worse because the banksters will atack it.
My thoughts exactly. It's like filling your car with cash and thinking you're safe driving around Detroit every night. The concept of Bitcoin is right on, but there are too many chinks in the armor. To paraphrase Ann Barnhardt: If you can't take it, and put it in a pile on the ground, and stand on top of it and defend it with an AK, then you don't really have control over it, do you? The more I thought about that, the more I realized precious metals are the only reliable wealth holder. (Aside from truckloads of toilet paper).
Chinks?
Dats ray's cyst.
Edit: Rectum?
Edit: Damn near killed 'em.
Silverer, I love Ann B. My wife dressed like her for Halloween. Button shirt, tie, big front back combed hair, neon pink toy assault rifle. Only ONE person recognized the outfit and he quoted your quote. We were struck by how many sheep there truly are in the world while we nursed our hang overs the next morning.
I love Ann B. also. I pray that God Almighty gives her protection and guidance...even if she is a Roman Catholic.
She is a woman of great honor. She is very real.
BTW...I heard a Radio Ad for something to day. I usually do not pay attention to ads which I do not like and pay attention to the commercial advertisements of music...in other words...the music..."Buy my album"
In this ad, for what I do not know, this boy was talking about "Happy Money"
Then his father interjected, and I quote, "Money is not happy. It is something which is got by the sweat of one's brow, by hard work, or by the OCCASIONAL PONZI SCHEME..."
The ad was aired on a Tijuana, Baja California Norte, Mexico Radio Station, 91-X, which plays "Alternative Music" for a San Diego County, California audience.
I did not even identify who the ad was played for as I was too busy laughing my ass off in shock.
But I think that it is rather apparent at this point. That ad was a glimmer of hope.
Chinks in the armor.
Is that just another way of saying Chinese hackers?
I met a very influential, and wealth business man in Baltimore.
He told me; “It’s over”.
He probably came to that decision after reading your posts on ZH
Really no offense, but that was funny on more than one channel.
What's over?
This family has thousands of people working for them in America.
He (the family) has business, and investments in Europe and South America as well. Not sure about Asia and Africa.
Anyway, it was a very brief meeting. I want for him to consider something in South America, a crisis/business hedge while attracting additional ‘Asia’ investors; as well as Americans.
So he said, "No thanks. It's over..."
The best way I can describe my point was to be hedged in different nations. Have some physical presence in South America.
He told that his brother is already there, in Brazil. I said I didn’t think Brazil—I am Brazilian by the way—was the best place.
He didn’t go into details but he said it’s over.
Keep in mind this gentleman is about 60 years old. He gets the pulse of things because he’s global, and he’s big. This family is big. I heard they were involved with TV stations, as well.
Anyway, he knows that’s over. And I think he said that to me, because he thought I would grasp it….
And I told him that, it’s almost over.
It's over. Clean up on Aisle 2.
http://www.forbes.com/sites/eamonnfingleton/2014/11/12/obama-in-china-taking-candy-from-a-baby/?partner=yahootix
Ok, that's interesting. I think I understand your point. It's hard on here sometimes decoding stuff bc of contextual type stuff etc...
He may be right. I certainly feel that way. But i often wonder if that isnt more a reflection of our time spent on earth and our perception of what is to come. I'm only 43 but I feel I'm an aged 43. No telling my perception of things by the time I'm 60 (if I make it).
or does he get the pulse of things because he is a 60 yr old stoned on oxy?
"Say Winfred, may i have anothr pill please...
Did he say that after he came in your mouth.
No, because I was dealing with a gentleman.
I am afraid I can’t say the same about you.
Some here have not figured out that you are a lady.
They thought that they were insulting you and calling you gay. That is an emasculating insult to any real man. It is a verbal castration.
At times we can be classless dicks.
Of course, at times, you women can be bitches. (Not this time however. That was a class response.)
I will hope that forgiveness of ignorance is in your heart.
But you can be assured that I will call you out if you behave as a bitch.
I am certan of that as I expect that you will call me out for being a dick.
Cornfedbloodstool wrote...
Did he say that after he came in your mouth.
So you beat up on ladies?
(I have previously given FlakFRAU a beatdown as she was pretending to be a man and, as such, she deserved a man's beatdown.)
Are you a fucking fag? Your username suggests that you have been a Wide Receiver.
Go and suckle upon your own penis as I doubt any other fag will let you suckle upon their or, much more, will suckle upon yours.
Remember the rules of Fight Club.
Wealth? Baltimore? Maryland? Huh?
Music of string quartet is enjoying on promenade deck of Titanic,... until celloist is submerge and violinist is full mouth of salt water. Then is too late for finding of seat in life boat.
"This represents both a yield improvement and a significant improvement in capital risk compared to bank deposits, as bank notes cannot be "bailed in."
I disagree, when your warehoused banknotes one Monday cease being the correct color your banknotes have been effectively bailed in.. Your 500 note may be exchanged for a 50 if your lucky. There is no safety, there is no port in this storm except tangible assets, energy, food, allies/tribe.
Paper pushers beware there will be a period coming where paper will not save you prepare for that paradigm and you may make it to the next where paper representing hard assets reappears. That is all
Perhaps Mr. Napier is hoping people really will take out billions in banknotes, so that the CB's do exactly that - cancel them.
Why people are not piling into gold is beyond me.
Calm yourself understands the issue clearly. "Scrip" change can happen anytime anywhere. AND, as 75% of American scrip is held overseas, it is in fact probable that a scrip change will occur. HArd assets are a refuge from scrip change. If you do not know what a scrip change is, you do n ot understand anything about financial peril.
http://en.wikipedia.org/wiki/Scrip
You nailed it, Boris. I think it's my Violin Concerto in E Major I hear playing. The second movement is apropos as a dirge.
The 2Cellos are playing Smooth Criminal.
https://www.youtube.com/watch?v=Mx0xCI1jaUM
or maybe Thunderstruck:
https://www.youtube.com/watch?v=uT3SBzmDxGk
Too Fab, and moore Too Fab
Boris, is the band playing Handel's "Water Music"?
I live in australia , If say polar bear long enough i am sure I will come across one !
False logic repeated on Money debasement , it is social system rebasing fools !
Boris old boy! No longer to being a stranger!
The prevailing thought is that "It's not happening, unless it is happening to me".
The bank runs will start when it is too late to get out. People are stoopid and even worse when it comes to finance. Of course, since few people have much in the bank, they don't pay attention anyway.
Right, that is the key. Hard to bail-in much from a population that is mostly broke. So who is the real target? The minority sheeple that do have savings > $100k but are too normalcy biased to see the train coming down the tracks at them? I dunno... I'm waiting for the grab on 401ks/IRAs... that's where the real $ is at.
Yes, the Jon Corzine world! People's savings locked up in financial instruments, all dancing on manipulated paper. This is going to be brutal when it goes down.
That's part of the plan - tell people their cities have gone bankrupt, and then use that as an excuse to seize pension funds.
Detroit is the model.
exactly; I closed those fuckers down, paid the 10 percent plus income tax and put it to good use. 403b and sepira.
trust me on this, it was an emense struggle to get the money out. fidelity was the worse. they refused. so had to transefer it to ameritrade, then withdraw it out. now in gold physical coins!
adding currently as price has dropped and gold cost averaging in play...
Deleted (duplicate)
I don't know..... I mean with the bulk of the population living pay-check to pay-check, I suppose there is a defacto bank-run every pay-day. And nothing much happens.
The 1%-ers and the those with some moderate savings should be sweating but they are few in number and probably have hedged their savings in one form or another anyway. I mean you'd be stupid not to at this point when every investment/deposit/asset can be devalued due to corruption and/or fiscal ass-fuckery.
Remember of Cyprus Bail-in circa 2012. Money on bank ledger for deposit is not equal bank note in wallet. One day is difference to make. Please to introduce Bank of Boris Mattress.
Cyprus was not so much a template, but a template for a template, it appears.
Boris you are on a roll today
Please to introduce Bank of Boris Mattress.
Boris - please to send new account kit and deposit slips.
Hold out for the toaster...
I was hoping for a spiderman towel. I missed out the first time.
I'm holding out for the dishwasher.
She looks good in black.
dupe... stupid 'puter.
deposit sheets
blanket accounts...
I trust Bank of Boris Mattress more than the ponzi we have right now.
Is anybody else noticing how we all learned not to put our money under the mattress because inflation will steal it. Just about the time we learn the lesson, TPTB change the rules so that the mattress is the safe place for deposits.
It's like, the TPTB are going to get their pound of flesh out of you, every year, whether you like it or not. They can just change the rules. The only hope for a sustained peaceful and proseprous society is an educated populous that concerns itself with the soundess of its laws. I'm not going to hold my breath.
You can't always get what you want, but most the time, you get what you deserve. Voters that take no responsibility in the system they demand serves them pretty much deserve to be shat on by a tyrannical government. Oh well. Same as it ever was.
Actually, what we need now is some good, old fashioned plain Jane banks. The kind where depositors assets are the main assets and managed with limited leverage. Not quite so amazingly profitable for the bankers, but a lot safer for the depositors.
In fact, what we should do is start a new National Bank and let the Post Office run it as a simple bank....solve 2 problems at once.
Thats the whole problem with most people. They think they put "their" money in the bank, so its safe from, you know, thieves. They think the bank is keeping their money safe.....they choose not to put it into the stawk market because that is too risky. Meanwhile, the bank takes the money you have chosen not to put into the stawk market, and THEY put it in the stawk market. They get all the reward, with none of the risk. If they default, oh well, dear taxpayer to the rescue. Meanwhile they pay a paltry .01% interest on your savings account. They get all the money they earn on YOUR MONEY, and you get NONE. And if the whole system blows up, you still lose everything you saved---all your labor goes poof!
And lots of it.......
This is a 7.62x51 NATO M118 Long Range 175gr. Sierra Matchking OTM Ammo. This round was specially designed for long range sniping by the U.S Army and manufactured in the Lake City Ammunition Plant. The round utilizes the Sierra 175gr. MatchKing bullet along with other high grade components to create an excellent long distance shooting round for competition as well as combat use. These rounds are brass cased, boxer primed, and non-corrosive. These rounds are packaged in the original loose pack 500rd. cases. Velocity: 2580 fps.
500 rounds for $639.00 ($1.28/ppr)
vs.
Bank deposits
Synchrony Bank
Type: Savings
Minimum to earn APY $0
0.95% APY
Rates as of 11/12/2014
FDIC Insured
$1,200 as a bank creditor weighs absolutely nothing, zero, 0.00 grams, nada, ziltch.
vs.
Bank notes
Three highly effective security features from the older design have been retained and updated in the new $100 note. Several additional features have been added to protect the integrity of the new $100 note.
$1,200 (12 $100 bills) weighs 12 grams
I will go with gold, ammo, and some bank notes (but not just US). By the way, Russian Rubles are on sale!
If Rubles are On Sale and we BTFD, when can we expect them to be officially backed by Carbon-Fuels and Gold, and both of these secured by "packaged Plutonium?"
You, sir, are a near-genius!
Wow HH, just wow
Well done HH.
There should be a gold medal for prepping.
.... And not a single bitcoin ?????
Whule ammo is important, food in the form of dried goods (beans, rice, oats) is more important unless you want to rely on the government to eat or become a theiving marauder to feed yourself. Though I would hope most people hear aware of the impending colapse would have the presence of mind to plan ahead & store at least 30-90 days worth of food, a year or two would be a better idea though. And for those who will say it will go bad before you can eat it, NO it will not. Stored properly dried grains & beans will last 15-30 years depending on temperature & type of grain (higher oil content won't last very long, but white rice, whole oats & lentile.beans will keep for at least 15-20 years).
Banknotes?? Gold?? Um, I don't think so. Certainly not right away.
The money will continue to move into sovereign debt, the stock markets, real estate, and high-end collectibles, just as it has been for the past five years. This will just accelerate the process a little more. Emphasis on "little" as anyone with an eight+ figure portfolio undoubtedly foresaw this happening years ago.
Gold and banknotes simply don't have the capacity to hold the hundreds of trillions of dollars that are out there right now.
A lot of capital needs to get destroyed first, before gold and banknotes become viable again.
There you go with that logic again.
"Gold and banknotes simply don't have the capacity to hold the hundreds of trillions of dollars that are out there right now."
We've got all the wood, cement, nails, etc... but god damn we don't have enough inches to build a house.
Currency is measured in gold, not the other way around. Gold "price" not enough to fit all the world's capital? raise the "price"!
How about gold @ $50,000 an ounce?
Shhhhhhh...
I like it on sale. How about $20 per ounce?
Thank you for slamming the price. Thank you for the bargain.
then every indian willl be a millinaire !
Buckaroo,
Then I suggest you wait until all the confetti is repudiated. Idjit
Hey, hey, hey, hey-now. Don't be mean; we don't have to be mean, cuz, remember, no matter where you go, there you are.
"Gold and banknotes simply don't have the capacity to hold the hundreds of trillions of dollars that are out there right now."
No , but bitcoin does.
There are fewer bit coins per person on Earth than there are ounces of gold. We know what it costs to create a new ounce of gold. Creating a new bit coin gets cheaper all the time as new technology is brought to bear (e.g. use of FPGA's, ASIC's, and graphics processors). But ultimately there are fewer bit coins than ounces of gold ... the algorithm says so ... and there are too few ounces of gold to back the "in-process-trades" value of the medium of exchange. You can split both into fractions to have more, but that of course is deflationary which is every bit as bad as inflation.
Creating new bitcoins is actually getting more expensive because the competition in mining is so hot.
Your argument regarding the inflation / deflation debate does not wash for me. The gold standard was inflationary at around 2% per annum with the increase in gold supply. The same is true for bitcoin , it tracks the same production curve as a gold mine. During the gold standard the US saw the highest living standards and strongest economic growth in it's history. The same could happen with bitcoin on a global scale.
Some simple mathmatics reveals if you can't turn bank deposits into bank notes, you for darn sure can't turn them into gold, silver, oil, or pork bellies ... i.e commodities.
Kirk is freeing his "Free Enterprise" currency from the Central Scrutinizers, by moving the bulk to his private bank: the "Bank of Serta, Sealy and Posturepedic".
No junk fees, no snitching, no games. Full access 24/7/365.
Except for those 5-10 glorious minutes, once per month, with Lt. Uhura.
+1 for the Zappa reference.
Money has not been generated by law. In its origin it is a social, and not a state institution. Sanction by the authority of the state is a notion alien to it. Menger Carl - On the origins of money - 1892
THE PERFECT STORM (see p. 59 onwards)
The economy is a surplus energy equation, not a monetary one, and growth in output (and in the global population) since the Industrial Revolution has resulted from the harnessing of ever-greater quantities of energy. But the critical relationship between energy production and the energy cost of extraction is now deteriorating so rapidly that the economy as we have known it for more than two centuries is beginning to unravel. http://ftalphaville.ft.com/files/2013/01/Perfect-Storm-LR.pdf
Money is not dying.... cheaply extractable energy is what is dying... and money is nothing more than a representation of the return we get on energy extraction.
http://ftalphaville.ft.com/files/2013/01/Perfect-Storm-LR.pdf
That's a nice review; all you really need to look at, though, is the diagram of page 78.
And the time factor? To paraphrase: real soon!
I've got ninety thousand pounds in my pyjamas.
I've got forty thousand French francs in my fridge.
I've got lots of lovely lire.
Now the Deutschmark's getting dearer,
And my dollar bills would buy the Brooklyn Bridge.
There is nothing quite as wonderful as money.
There is nothing quite as beautiful as cash.
Some people say it's folly,
But I'd rather have the lolly.
With money you can make a splash.
You can keep your Marxist ways,
For it's only just a phase,
For it's money, money, money makes the world go 'round.
Money, money, money, money, money, money, money, money, moneeeeey!
Die Pythons +1
He will update that after he finishes eating all that "there is no market manipulation ever" crow. The guy is an absurd asshat with no track record and no understanding of what he is looking at. But his biggest problem has always been an inability to admit he is wrong. That is how he lost all his client's money using his idiotic trading program and ended up in prison.
Switzerland’s regulator found “serious misconduct” by UBS AG (UBSN) employees in precious metals trading, particularly with silver, as part of its review of the bank’s foreign-exchange business.
Electronic chats played a “key” role in the improper conduct in foreign exchange and precious metals trading, the Swiss Financial Market Supervisory Authority, or Finma, said in a statement today. It found front running, when traders profit from advance knowledge about a transaction expected to influence prices, over client orders for silver.
http://www.bloomberg.com/news/2014-11-12/finma-s-ubs-foreign-exchange-se...
He wound up in prison because that's exactly where the Feds wanted him during the run up to 2008. They tried to kill him in there a few times, and almost succeeded once.
That tells me he is worth my attention.
I can't understand the hate that Armstrong gets from a good chunk of ZH. Have you forgotten which side you are on?
He says gold isn't being manipulated lower. But we can see with our own eyes a deliberate propaganda campaign from the government and central banks. When you see massive sell orders in the middle of the night which are desgned to take out the bid stack, what else could you conclude? No rational seller would do that. Martin Armstrong denies that, and has never tried to explain it.
The government and central banks have a massive incentive for gold not to be money. Because they cannot control it the way they control paper. He denies that too.
Martin Armstrong and Mike Ruppert became differrent men after they each survived their own near death by government moment.
Dan Norcini is a very savvy trader.
Consider this post he put up a few days ago about whether gold is being manipulated or not.
http://traderdannorcini.blogspot.com/2014/11/paul-craig-roberts-and-spre...
Spot on BB. The only problem is that he was beaten and tortured and most likely had to sign a deal with the devil to all of a sudden get released. He had discovered their cycle driven manipulation and was put away for that. His info has shifted and just like FOFOA, is now most likely putting out disinfo mixed into his analysis.
First I have heard of FOFOA putting out disinfo, link or proofs??
QV, no one person can be 100%.
Only way I can sleep at night is construct a picture from the overlap and consensus among smart guys, which includes Armstrong. I'm sure you do the same thing. But also other guys like Bass, Rickards, Schiff, Jim Grant, etc. They're all smart and independent thinkers, which is key, because the old rules don't apply. The greatest certainty is where these guys all overlap.
Decent strategy. Are you a meteorologist by chance?
That is what they do in their forecast modeling.
Fuck you Marty.
Go suck some Bankster dick...
haha Marty has been on point the last few years still everyone hates him. The gold crowd which i am a part of hate him just like he says. I guess they dont like him because he says gold is not going to go up in the immediate future. He has been spot on about the dollar, everyone has said its going to crash now now now, but he said no the dollar will go up and it has. He said gold will decline because anything that goes up for 12 years in a row will eventually be due for a pullback and it has. He said the stock market will go up possibly to 20000 yet everyone else is calling for a crash every day. He has been calling for possibilities of war to start in 2014 and we have entered a period of a new cold war. He still calls out the bankers and the gov't but people still hate him. He has said repeatedly that everything crashes on the outside and will eventually crumble into the core which is the US.... and so far that is exactly what looks to be taking place.
He is hated because he is now nothing but a political tool pretending to be otherwise.
That is exactly why he is hated. He sold out. This douchebag TripleA can't seem to figure that out.
Fuck all his calls and the horse he rode in on.
explain
right on ... he makes 12 predictions and afterwards picks the one its fits the picture...thats ole Marty for you... whatever
What do you think that weather forecasters, meteorologists, do with their data?
They run that data through numerous algorithms to determine the most likely outcome. Then they forecast that...with an 85% accuracy.
How would you suggest forecasting multi variable events? The WAG method?
You are in NO PLACE to criticize unless you can bring a better method to the table.
It is either ignorance of methodolgy or outright dishonesty in promoting propaganda and spin.
Which is it Arius?
>> Marty has been on point the last few years
Yeah, it's eerie, almost like he's on the PTB team. He knows exactly what they are going to do before they do it. He seemed to assume these amazing powers just before he got out of the slammer. I'm sure it's odd cooincidence, but it has all the indicators of a turn coat.
haha like he says,he doesnt spout his opion too often where everyone else is going out on a hunch. His computer has been making predictions for the last 20 + years. everyone knows he believes in cycles, so his ecomic preditions arent his opions.
Apache Gunship Visits Gun Range - Salt Lake City, Utah.
It's the new militarized air police ready to splatter you all across the desert with 30mm for being free human beings.
https://www.youtube.com/watch?v=DI7pPVJTeSY
Wow. Hmmm, interesting. If it were me though, I'd use the old trick of "You attract more flies with honey than vinegar" that JC advised.
IOW... Smile 'n wave, boys. Smile 'n wave. And gesture to have them join you for a beer and burgers.
Notice also that the Populace uses this tactic in Green Revolutions: Kids and women give flowers to soldiers, because it works. Recall also how Ghandi effectively "overthrew" the British Rule, by leveraging Jesus's advice. Just a suggestion.
https://duckduckgo.com/l/?kh=-1&uddg=https%3A%2F%2Fen.wikipedia.org%2Fwi...
Read this Kirk, Turtledove's classic short story of Ghandi and the Germans... "We" effectively face Nazi's, Ghandi tactics will earn a shallow grave right quick
Kirk - You got it. Jesus was da man. Even if you dont believe the spiritual aspect he sure got it right a out checking out to a degree, pursuing knowledge when the opportunity to gain monetarily fell and going black market.
I was an athiest for many years. Strangely, it was the study of particle physics that led me to believe in what he was saying about creation and recreation as true.
But modern Christianity kind of sucks. They don't ever discuss the deeper things Christ or Paul was talking about which was a very interesting and turning out to be precise view.
"Love your neighbor as yourself" was the sum of all his teaching. Compare to Einstein "The only life worth living is on behalf of others."
I tried this as an experiment as at first I didn't believe it. Doing it evolved me, made friends and increased wealth (over the long-term) and increased my quality of life.
The saying "Seek God and you'll find him." proved true and I didnt want it to be so when I tried it.
divine law immutable
Solid post. Thanks for that.
For me, it was a simple question much earlier in the book.
"Am I my brothers keeper?"
Pretty much boils it right down.
I know what my answer is.
For me I had a Blind Faith until I studied Light and Light Speed travel. (What is actually humorous is that it is kind of a serindipitous pun...) The Mathematics of Probability iced it...crystalized it.
Besides just how many electrons are there? (Answer...ONE. But a quantum physicist will understand that. As instructed...I had to abandon "Common Sense".)
Thank you Roger Penrose.
You know, I was at an airshow a looong time ago, and they had all the nifty toys out.
Saw a couple guys looking over them really closely, and then overheard the conversation. They were looking for weak points, and they weren't muslims.
That whole officer friendly approach can backfire on you really fast.
Sorry Russell, as much i wish your statement were to be true, MONEY ain't going nowhere.
Martin who?
Sunday Nov 16 will be my 70th birthday.
All kinds of bad stuff seems to happen on that day over the years.
http://goldtradercommentsaugust2010.blogspot.com/
Sure, when in reality it died quite some time ago...
Hey, look at the bright side. Admitting you have a problem is the first step people....
We have a problem. We have shitloads of problems.
That which cannot be sustained, won't be. Period. Hell of a run though.
Same as it ever was...
Happy Hunting.
and "hunting" it most certainly will be...
We do not have any problems whatsoever as all Boundary Conditions have been blown out.
One infers from the statement that we have a problem is that there may be solutions.
Actually most Math problems have no solution.
So actually we are facing a predicament. Predicaments have outcomes whereas problems may, or may not, have solutions.
Example...Falling from the edge of a cliff without a parachute is not a problem. It is a predicament and, generally, with an adverse outcome. There is no solution.
Real question should be "will most prefer gold?"
Gold has been (relatively) stable, the dollar and other paper not so much. If gold is 'managed lower' in price it will be scoped up by third world nobodies and the gold derivatives market will die.
Then gold will look pretty good.
Don't rely solely on PM's, trade value can be a lot of things......
Cash as saving money? What a laughable idea.
Gold and BTC beaches :P
BTC up $64 in past 24 hours, up 25% in 3 days.
It will be a Bank Sprint.