USA's Day Of Reckoning Looms - "We've Had 2 Warnings, The 3rd Strike Is Game Over"

Tyler Durden's picture

History shows that once or twice in a generation a global crisis comes along that radically devastates people’s way of life. A fundamental shift so big and drastic and overwhelming that it destroys their standard of living and impacts every area of their lives. We are about to experience one of those events...

As Mike Maloney outlines in his brand new episode of the Hidden Secrets of Money, that next major event is deflation. And the culprit will be a relatively obscure monetary term that will impact virtually every area of your life: money velocity.

You may not know exactly what money velocity means, but we will all soon experience it firsthand. In fact, money velocity will be the culprit of not just deflation, but the resulting inflation—and maybe hyperinflation—that will immediately follow. [Mike refers to it as “currency” velocity, a more accurate term, since true “money” is gold and silver.]

The good news is, there is a way to protect yourself and even profit from these upcoming crises. History shows that on the opposite side of every crisis, there is an equal opportunity...

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HedgeAccordingly's picture

Tick tick tick tock the mouse ran up the clock. IMF knows it too

stacking12321's picture

great video series, and props to mr maloney and for putting the info out there for the public in an easily digestible way.

here's the first one of the series, hidden secrets of money ep 1, it's a must watch:


Squid-puppets a-go-go's picture

Mike Maloney's work is superb, but one issue id like his thoughts on: what are the differences between paper currency hyperinflation and the age of digital money. So far the elite have been unable to generate the inflation they desire to worm out of legacy debts - when employers arent raising wages and the small businesses that could raise prices are all taken over by global franchise monsters fighting robot manufacturing deflation, HOW DOES that extra cash/credit get into peoples hands to fuel the expected hyperinflation

As Tyler used to express it, the transmission mechanism is broken

lance-a-lot's picture
lance-a-lot (not verified) Squid-puppets a-go-go Oct 6, 2016 8:25 PM

"once or twice in a generation a global crisis comes along that radically devastates people’s way of life"

THIS is the exception to the rule where they do it every day:

Manthong's picture

I am so grateful that the interventionist central planners decided to knock the premiums off of the AGE’s, ASE’s and bag of junk I ordered.


fbazzrea's picture

one possible way since much of the physical dollars are overseas, is foreign purchasing of American real assets while the dollar is still rising in capital flight to avoid home currency devaluations. Americans receiving those dollars in exchange for homes, businesses and real estate holdings will more likely spend them in a deflationary environment to capitalize on the improved capital gains, which will drive prices higher. i don't know... it's late and i'm no economist, but i can see a path for institutional and affluent foreign nationals swapping dollars for some good ol' USA.

another way... when we have to start exporting all our ag products and technologies to start driving down current account deficits, dollars will return. of course, these are long-term cycles and nothing happens overnight, but as in nature, economies fill voids. dollar holders will find a way for their dollars to return home where they originated. dust to dust full circle sort of thing. (:

maybe somebody smart will respond to your question. good night

BennyBoy's picture


More crappy ZH click bait. Keep them clicks comin for more ad views. 

Except I use uBlock Origins to block all the ad crap.

I bet close to 50% of viewers here use an ad blocker. Its growing at 30% a year.

Need MOAR click bait!

yovatti's picture

Maloney is just another jackass trying to sell something to gullible ZH readers.


OregonGrown's picture



But i guess that is what makes a market!  



MANvsMACHINE's picture

yovatti is a jackass just trying to make a fool of himself on Zero Hedge. Also, yovatti is a huge success.

Urban Redneck's picture

I don't have 30 minutes for Mike Maloney right now, but if he is going to use argue that the definition of the velocity of money is incorrect, and argue anything other than that the actual velocity of money is increasing and far greater than what the FED cites, then, as yovatti says- Mike is full of shit, since the Federal Reserve system alone clears aggregate transactions larger than the US GDP every week. (For the textbook-economics-challenged that would imply a velocity over 52, instead of under 3.

The velocity of money, as officially defined, does not measure "turnover" of money, and has nothing to do with the quantity theory of money. The velocity of money, as officially calculated measures the "efficiency" of the money supply in generating GDP. Which is why when when a FED asshat starts speaking out his ass about how printing money grows the economy, and yet said asshat cannot explain why the measured velocity of money is falling, said asshat should never have received a high school diploma since he obviously never studied logic or reason, much less a graduate or post graduate degree in economics.

Hoarding does happen, but it is background noise in the current environment, where credit and other money substitutes, up to an including rehypothecated derivatives with bankrupt counter-parties do serve as money substitutes every day and dwarf the actual money supply, thereby capping any economic impact of hoarding actual money.

And excess reserves that banks will loan for low FICO 7-year NINJA car loans, are not hoarded money.

Squid-puppets a-go-go's picture

Velocity of 52?

Maybe you missed the point of maloneys presentation with the circle jerk of economic participants when the helicopter drop happens. Sure you can have one bank hand over a $1Trillion derivative piece of paper to another bank: thats not an economic transaction - no goods were produced nor exchanged, all that is happenning is a reshuffling of promises and potential obligations

The velocity remains under 3

Urban Redneck's picture

You obviously didn't read my post very carefully.

By the way WTF is an "economic transaction"?

Economics is a study of human behaviors.

But since you apparently think velocity has something to do with turnover or even actual transactions...

The formula for velocity is GDP divided by a measure of the Money Supply, there are no transactions involved.

jeff montanye's picture

"since the Federal Reserve system alone clears aggregate transactions larger than the US GDP every week. (For the textbook-economics-challenged that would imply a velocity over 52, instead of under 3."


"The formula for velocity is GDP divided by a measure of the Money Supply, there are no transactions involved."

this may have confused some people, me included.

Urban Redneck's picture

Sorry, the formula is an aggregate dollar amount divided by an aggregate dollar amount, so the notion of transactions is a psychological inference (and mass delusion of crowds), not part of the actual equation.

If the velocity of money actually had to do with turnover then the reported velocity of < three would imply that the entire "travel" of the average dollar in the US economy over an entire year could be summarized as follows: 1) you received some manufacturing wages from your employer, 2) all your wages were used to cover rent and other expenses, and 2.5) then your landlord used some of your rent to pay his bills, and then that dollar sits idle for the rest of the year...

Since the federal reserve settles and clears over one quadrillion US dollars of interbank transactions per year (and that doesn't even include inclearing (intrabank transactions by individual banks), i.e. if you bank at JPM and your local grocery store banks at JPM, then JPM self clears & settles the transaction when you buy groceries, and the FED isn't involved - money is turning over and changing hands much faster than 3 times per year, in fact more often than once per week.

So going back to the components of the velocity definition- money supply and GDP... If the "average" dollar changed hands 52 times per year, and yet the sum total of contributions to GDP was only 3 dollars, what does that 3 dollars actually represent? Very few transactions are perfectly efficient in generating GDP, so the 3 dollars doesn't even represent 3 transactions, it represents nickle and dime slices of many transactions.

If one wants to accurately measure the efficacy of the money supply in creating GDP (which is supposed to be the FED's primary job) then one would ideally also look at total interbank and intrabank clearing and settlement instead of just the components of the "velocity of money", but "velocity" is a good yardstick for non-quantitative assessment of the Fed's performance in doing its job, and right now the Fed is literally failing, yet they want to print moar...

One side note about the "hoarding" fetishists mentioned in a previous post, there's only about a trillion dollars in US banknotes in circulation, and about 90% of them are overseas, everything else is required or excess reserves at US banks, who do not hoard. So Apple has more US dollars than the entire US bank of mattress population is even capable of hoarding in the current environment.

The Saint's picture
The Saint (not verified) HedgeAccordingly Oct 6, 2016 6:08 PM

California Deamin'.


Pipsqweek's picture

Hickory dickory dock 3 mice ran up Hillarys cock

The cock struck one

And 2 got away with minor Syphillis and other undisclosed injuries

tarabel's picture



But they all had to contribute a million plus before the iron gates would open again.

MontgomeryScott's picture


The 'Iron Maiden' (AKA Hillary Rodham) is NOW making her moves. Her body swollen with the blood of saints and the souls of Men, she sees her place as the QUEEN, and her time as NOW.


I read your comment, and was inspired to post this video (from a band whose prescient predictions are now coming to pass, and who decided upon a name that includes the words 'Maiden' and 'Iron'). I hope that it isn't too 'radical' for your tastes.

CRAZY, ain't it?


Kidbuck's picture

I've been reading this flavor of doom for 50 years. Drag out the reckoning for 20 more years and I'll be happy.

BarkingCat's picture

I gave you a green one, but the doom has been going on during those 50 years,

You expect the side of the cliff to fall off.

Instead we have a very slowlandslide going on.

Step back and look at it from a distance and you can see it.

How much was a gallon of milk 50 years ago?

How much is it today?

..... and you better use organic for pricing today's milk because 50 years ago our food was not leaded with the shit that it contains today,.

thesonandheir's picture

Mike best be voting for the Donald or I'll have to have words with him.

Troy Ounce's picture


I look forward to global destruction and building something new and exiting on its ashes.

Can't wait.

Hungman's picture

The ones bringing it all down already have plans on building what they want over the ashes.

Billy the Poet's picture

How silly of them not to have noticed all the eyes gleaming on the perimeter of the forest.

ToSoft4Truth's picture

One gold coin will buy a Skyscraper. 

Billy the Poet's picture

There aren't any skyscrapers down in my haunts.

webmatex's picture

One gold coin will buy a lake and boat!

HedgeJunkie's picture

First you must survive the fire.

We Are The Priests's picture

You may want to watch these videos, because the fiat currency that George Soros is paying you to troll the truth ain't worth the paper its printed on.

MontgomeryScott's picture


I get so tired of seeing this newly-recruited troll army paid for by Soros on the ZH website (and so many others) that I just want to (intention redacted due to DHS/NSA threats of incarceration without trial).

17 weeks. SEVENTEEN FUCKING WEEKS (and one day). He got a ZH account set up on JUNE the fucking FOURTH, 2016. TWENTY SIXTEEN!

He's a 'tasty pelagic fish', according to the profile.

A 'Gefeltafish' from 'the home country', most likely. Maybe a 'FINFISHER' troll (in case you didn't catch the memo that wasn't supposed to be released).

When it all comes down to accounts, one of the greater sins is misleading those who are innocent in order to cause their own deaths due to blind ignorance of the facts.

Did you know that in Spanish,  the word 'Dorado' means 'Golden one'? THIS one wishes that those who should and are looking in to buying GOLD as a hedge against what is obviously coming should decide NOT TO. HE wants the GOLD (and YOU don't get any, because you listened to 'DORADO' and DIDN'T BUY when you SHOULD HAVE).

See how that works?


I've never minced words here on ZH, and I'm not about to now.

FUCK YOU and GO TO HELL, 'Dorado'.

(Sorry, 'Priests', you can't deal lightly with those such as the one you are replying to.)

Hey, I think I'll go buy some more PHYSICAL (BOTH Gold and Silver).


(I wonder if he works for the East? You never know.)

HedgeJunkie's picture

I never minced words and now I look like a newbie.

Chipped ham's picture

Good rhyme though not original. That's why I down voted you. 


wisehiney's picture

This hurricane may cost more than WWII.

$296 billion.

BigJim's picture

"may" don't butter no parsnips.

Billy the Poet's picture

Parsnips are better picked after first frost and not in May.

wisehiney's picture

During WWII folks did not have any bananas so they ate parsnip sandwiches.

Escrava Isaura's picture

$296 billion in dollars or IN gold?


tarabel's picture



Neither, actually. But I do grasp your larger point.

Berspankme's picture

Janet can HP that in 5 minutes

homiegot's picture

Hurricanes are job creators. 

Hope Copy's picture

Hurricane clean up takes money.. liquidity..  and where is that going to come from?  The stock market or he Fed.. or the Fed buys stocks and moniterizes.. all nice and dandy until one goes on Albia and wants to buy a few  containers of Chinese shoes and the dealer says ..' you pay in Yuan Renminbi or gold'..

We Are The Priests's picture

Overall, this is an excellent series; very well produced and written. It makes a great teaching tool for those who are ignorant about money and currency and has proven to be a great place people can start educating themselves about the ways of the Fed (episode 4), the government, the markets, and, most importantly, how to prepare for the coming shift in paradigm in which, hopefully, we return to sound money and free market enterprise.

Radical Marijuana's picture

Yes, I agree that the Mike Maloney series of videos are worthwhile watching, &

I have added their links to my collection of Excellent Videos on Money Systems.

I also agree that the best particular episode was #4:

The Biggest Scam In The History Of Mankind

However, as someone who has made his living selling gold and silver to those who wanted to buy that, Maloney is willing and able to already repeat his silly assertion that "wealth is never destroyed, it is merely transferred" before getting even 30 seconds into the 30 minute video.

On the contrary, the primary REALITIES regarding the series of industrial revolutions, which have been "paid" for with "money" made out of nothing as debts, is that those have actually been strip-mining the natural resources of the planet at about an exponential rate, such that what has REALLY been happening is DESTRUCTION OF WEALTH AT ABOUT AN EXPONENTIAL RATE, WHICH WAS PUBLICLY PRESENTED IN ABSURDLY BACKWARD WAYS THROUGH FUNDAMENTALLY FRAUDULENT FINANCIAL ACCOUNTING SYSTEMS.

I have previously commented upon Mike Maloney's material under several earlier Zero Hedge articles, as well as recorded those remarks about a couple dozen times under my thread:

Some Monetary System Articles.


Maloney presents the view that education is important, however, my view is that the only thing that becoming more educated actually does is that THE MORE ONE LEARNS, THE WORSE IT GETS. Of course, Mike Maloney does not feel that way, because of how he has been able to become personally successful by building a business that sells gold and silver to those who are able and willing to buy that. Therefore, everything Maloney thinks and does has been based upon doing that, and his ways of thinking have developed around being able to do that more successfully. However, such kinds of social success are nothing more than expressions of operating within the established systems, in ways which only engage in superficially correct analysis of those systems, which then enables superficial "solutions" to problems which are actually many orders of magnitude worse than Maloney admits and addresses. After all, he is presenting "solutions" which still operate within the established systems, that enable various people to buy gold and silver in ways that are working within those already established political economy systems.

One of the characteristics of the kinds of superficial analyses which are commonly presented on Zero Hedge, and which are illustrated by Mike Maloney, are the excessive psychologizing of political economy problems, in ways which tend to deliberately ignore how political economy developed inside human ecology, which in turn was inside the larger contexts of environmental ecologies. Longer term schedules of reinforcement, due to environmental factors, were the natural selection pressures which developed the human systems, inside of which it appears to most people as if the psychological factors are the most important, which are beliefs that tend to operate without engaging in deeper analysis regarding how and why those psychological manifestations were driven to develop their existing frequencies.

About the 19:15 mark, Rick Rule stated: "Too bad, so sad, times are tough, we lied."

Of course, that was another gross understatement of the underlying situation, which related to the overall ways that it is barely possible to exaggerate the degree to which natural selection pressures have driven the development of artificial selection systems to become based on the maximum possible enforced frauds, which are struggling to continue to become exponentially more fraudulent.

Although human beings and civilization operate as general energy systems, as entropic pumps of environmental energy flows, it is barely possible to exaggerate the degree to which doing so has actually resulted in civilization developing to become operated according to the principles and methods of organized crime. MONEY IS MEASUREMENT BACKED BY MURDER, because that is merely the more and more sophisticated symbolic development of the basic was that human being killed to live, by eating other living organisms, as well as developed ways to resolve conflicts with each other over who would be able to do that through the history of successful warfare based upon being able to back up deceits with destruction, which eventually became the political economy in which public governments enforced frauds by private banks, where the actual ways that the combined money/murder systems really worked were that the debt controls were backed by the death controls.

People like Mike Maloney only superficially look back into human history, in order to attempt to project the possible, probable, futures. However, they tend to not want to look more deeply into human history, and especially not back towards natural selection pressure systems. Therefore, those kinds of superficial analysis manage to assert baloney such as that "wealth is never destroyed, it is merely transferred," when the actual history of Germany after the Wiemar hyper-inflation was mass murders.

In general, almost everyone that operates INSIDE the currently established Globalized Neolithic Civilization is able and willing to deliberately ignore and divorce the environment from the economy. Moreover, those who are the best available professional hypocrites, who adapt to be personally successful within those systems based upon enforced frauds, tend to be able to maintain attitudes of willful blindness towards both that those are becoming exponentially more fraudulent, along with the overall environmental implications of that exponentially increasing fraudulence, and thoroughly developed dishonesties towards everything that is REALLY happening.

As usually the case with other kinds of superficially correct analyses presented on Zero Hedge, I agreed with what Maloney has actually presented, but I do NOT agree with what he has NOT said. In the terms of the comment above from We Are The Priests that I am replying to, which raised the issues about: "how to prepare for the coming shift in paradigm in which, hopefully, we return to sound money and free market enterprise," people like Maloney remain light years away from going through sufficient paradigm shifts. They do not appear to have the slightest clue what it would mean to reconcile political science with the series of profound paradigm shifts and intellectual scientific revolutions in mathematical physics, which have enabled technologies to develop such that it was possible for the previous systems of paper "money" frauds, backed by gunpowder weapons, to become globalized electronic "money" frauds, backed by the threat of force from atomic weapons.

Similarly, I continue to expect that people like We Are The Priests will continue to deliberately ignore the ways in which the currently existing combined money/murder systems, which have become State Religions, whereby the debt controls, through the monetary systems, are backed up by the death controls, through the national security systems, are being done in ways which are based upon being able to enforce frauds, which have become absurdly backwards, and which are automatically becoming exponentially more absurdly backwards.

"Sound money" can NOT actually exist without some "sound murder" to back that up, which is why "sound money" was so extremely difficult to actually maintain, but rather, the monetary systems tended to become criminally insane manifestations of the runaway triumphs of excessively successful applications of the methods of organized crime, which have made and maintained the currently existing monetary and taxation systems, whereby public governments enforce frauds by private banks.

Similarly, "free markets" can NOT actually exist outside of the ultimate "free market" which is the de facto "free market in murder" which was developed through the actual history of warfare. In general, the vast majority of people are happier to continue to think about "economics" in ways which deliberately ignores "ecology." The actually already existing political economy has become almost totally based upon enforcing frauds, despite that those are becoming exponentially more fraudulent. Anyone who is personally successful within those systems based upon enforced frauds (such as Mike Maloney, et alia), are functioning as professional liars and immaculate hypocrites.

In particular, the only ways that backing money up with gold and silver changes that money is measurement backed by murder is that then becomes money is the measurement of gold and murder backed by murder. Furthermore, the possession of gold and silver is no longer in the same ball park as the magnitude of globalized electronic "money" frauds, backed by the threat of mass murders done through the power of atomic weapons.

Gold and silver tend to manifest the principle of the conservation of matter, as a law of nature, more clearly than other material things. However, the principle of the conservation of matter has been proven to be a special case of the principle of the conservation of energy, as demonstrated by the fact that atomic bombs go boom. It is nostalgic nonsense to think that the possession of gold and silver will be enough to be sufficiently prepared for globalized electronic frauds, backed by atomic bombs, that spin out of control, as those kinds of enforced frauds become exponentially more fraudulent.

Of course, I do NOT expect people like We Are The Priests, nor Mike Maloney, to admit and address the degree to which they tend to be looking backwards, and thus, end up proposing absurdly bogus "solutions" to the problems manifesting through political economy based upon enforcing frauds, inside which systems almost everyone believes that they have become personally successful by adapting to develop attitudes which deliberately ignore the principle of the conservation of energy, as well as misunderstand the concept of entropy.

The REAL history of civilization has been based upon operating its murder systems most successfully by backing up deceits with destruction, which gradually morphed to become successful finance based upon enforcing frauds. People like Mike Maloney present superficially correct analysis of that, within which context people like We Are The Priests are similarly able to propose and promote changes in the political economy which continue to deliberately ignore the overall environmental ecology.

Indeed, I REPEAT, from my point of view, the only thing that actually happens when one becomes more "educated" is that the more one learns, the worse it gets, because the main thing one learns is that civilization is almost totally based upon enforcing frauds, and while those are becoming exponentially more fraudulent, the most socially successful people continue to be the best available professional hypocrites, such as how Mike Maloney could become personally successful by "educating" people to believe that they should buy gold and silver through his business.