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On Europe, Inflation, And Gold.

Tyler Durden's picture




 

Via GoldMoney.com,

In this video Philipp Bagus, Assistant professor of Economics at Madrid’s Universidad Rey Juan Carlos and author of The Tragedy of the Euro, and Alasdair Macleod of the GoldMoney Foundation talk about the eurozone facing the problem that is characterised in the “tragedy of the commons” analogy. Bagus explains this phenomenon by way of an example of overfished and over-exploited oceans due to a lack of property rights on oceans. In Europe, governments run larger deficits than their “competitors” in order to externalise the costs to all users of the currency. Knowing these incentives, the Stability and Growth Pact was put in place as per the early 1990s Maastricht Treaty, capping budget deficits at 3% of GDP and the debt to GDP level at 60%. However there was no enforcement of these rules which is why there have already been more than 80 infringements to this stability pact without any repercussions.

They talk about possible solutions to the euro crisis. Bagus points out that there are basically three different ways to go about it. Firstly, governments could make drastic cuts in public spending and privatise public assets in order to balance their budgets. However, there will be – and is – strong political resistance to such proposals. Secondly, the eurozone could disintegrate, driven by a reluctance of German citizens to pay for other countries’ expenditures. And lastly, central banks and governments could decide to print their way out of the crisis, leading to high inflation.

Bagus says that as long as the incentive for running deficits exists there won’t be an increase in countries’ savings rates. Macleod points out that there is great institutional resistance to breaking up the euro. Bagus explains that the official opinion towards the euro is positive in Germany; however the sentiment on the streets looks quite different. But as long as there is no political party devoted to this issue this mood is not likely to gain traction at least as long as inflation remains moderate.

Amid the ongoing expansion of the money supply and persistent deficits, Bagus can’t see the dollar gaining in value over the medium to long term. He also says that ECB policies are a lot more pragmatic than the ones undertaken by the US Federal Reserve. Talking about sound money, Bagus explains different ways to go about its introduction. One way would be to back all the money in existence by gold, adjusting the price of gold accordingly. Another would be to take away legal tender laws and have competing currencies. However this would require the governments to impose dramatic reforms, which is partly why they will oppose such measures.

 

This interview was recorded on November 15 2011 in Madrid.

 

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Mon, 12/26/2011 - 19:33 | 2012366 youLilQuantFuker
youLilQuantFuker's picture

Day after Monday racks up 1/2 Trillion Fiatcons in retail sales.

Sell zee gold bitches. It's back on!

Mon, 12/26/2011 - 19:40 | 2012376 FranSix
FranSix's picture

To save theand the best capitalized banks, you would need to offer something like €3500/oz.  That the ECB would purchase bullion off holders for this price would probably recapitalize the central bank, and thus prop up the banking sector.

One thing people don't really anticipate is the onset of the monetary crisis.  You have long term bonds looking as if they will sell off brutally, while rates for short term paper are so low, they are sometimes popping into the negative.

 

Mon, 12/26/2011 - 23:00 | 2012600 QQQBall
QQQBall's picture

So what happens when you print enough money to pay 3,500 EU per ozzie? right, you now have to nut up to 5,000 EU per ozzie

Tue, 12/27/2011 - 07:10 | 2012961 Seer
Seer's picture

Kind of all suggests that things have been pretty cheap and that that'll no longer be the case.  Scarcity (in all except digitial digits), bitchez!

Mon, 12/26/2011 - 19:42 | 2012377 jomama
jomama's picture

well shit, i guess the not-so-merry-go-round is still operable?

never doubt profit potential.

Mon, 12/26/2011 - 19:44 | 2012381 youLilQuantFuker
youLilQuantFuker's picture

Hey errbody it's handi-hacker!

I'm going to hack a security company website, get some old customer list of mostly anonymous customers, steal their credit card info, then broadcast my dirty deeds to Tyler.

Tee hee hee.

Wait and see ee ee.

It's going to be awesome!

Mon, 12/26/2011 - 19:54 | 2012396 youLilQuantFuker
youLilQuantFuker's picture

-1000 handi-hacker!

This guy just hacked my zerohedge account. Not cool. Go piss off!

Mon, 12/26/2011 - 21:18 | 2012484 GetZeeGold
GetZeeGold's picture

 

You might want to stop using the word "password"......for your password.

 

You're welcome.

 

 

Mon, 12/26/2011 - 19:45 | 2012382 TRN
TRN's picture

Is the Economics Profession in need for "redesign"?

Mon, 12/26/2011 - 20:14 | 2012410 Pumpkin
Pumpkin's picture

Who's gold?

Tue, 12/27/2011 - 07:14 | 2012967 Seer
Seer's picture

Who's on Second?

Mon, 12/26/2011 - 20:22 | 2012417 DosZap
DosZap's picture

You see, because gold is a commodity, you will be compensated at the commodity price of return + a fair profit, of course.".

No, GOLD  is the only true money,period.

And fair price plus a return?,will be MY determination of what that is THIS time.

It's not the 30's anymore, the people now know we are ruled by whores, liars and thieves.

The people will decide if they want to receive PARER for real money, and at what Fair value IS, and when  it is settled that Globally we have gotten our shit together, and not until.

They can issue confiscation, turn in edicts till hell freezes over before I would give them an ounce for their Anathema of a currency.

 

We will not be FOOLED,nor FEAR them this time.

F'em and F'emFhds.

Mon, 12/26/2011 - 23:38 | 2012640 disabledvet
disabledvet's picture

"here's your draft notice. you may have all the "gold and whatever" you want. what we want...is YOU."

Mon, 12/26/2011 - 20:42 | 2012440 AndrewCostello
AndrewCostello's picture

The 100 Year Plan is coming to a close.  2012 will mark the year the elite crash the economy and introduce their "new" currency.  2013 will be the anniversary of the plan and the massacres will begin.

 

They will rob you and then kill you, just like they planned all along.

Read:

http://www.amazon.com/Simple-Wealth-Mr-Andrew-Costello/dp/1463523017/ref

Tue, 12/27/2011 - 07:18 | 2012971 Seer
Seer's picture

Other than that, things are looking good, right?

If you look at your "currency" you'll see that it's owned by someone else and that it's really your contract for debt.  Why people will feel bad about having this "stolen" seems a bit oxymoronic.

It's the System.  Don't like it? then quit working in/for it and quit buying shit from it.

Mon, 12/26/2011 - 21:13 | 2012478 Newager23
Newager23's picture

I know I'm talking to the choir, but the vast majority of people and the vast majority of economists are blind to the fact that the debt bubble has to burst. Today Japan and the USA are both borrowing more money than they are receiving in taxes. That cannot continue much longer.

We are now living in a roll-over world of debt, and the financial system is over leveraged. The only question is when does it melt down. In this type of senario, it is prudent to own precious metals. They might go down in value in the near term, but surely they will hold more value than stocks and bonds and real estate after the crash.

Incredibly, people like Robert Precter and many other deflationists think that gold has peaked. I think most of us here at ZH disagree. We have a $50 trillion bond market that is bursting at the seems, and the run to precious metals will be one of the only safe havens. I can't imagine gold staying under $2,000, when the bond markets melt down.

Does anyone really believe Japan and the USA, and Europe being able to pay their govt bond debts? I surely don't. This meltdown probably won't happen in 2012, but it will eventually come. This is why we should all be buying the gold and silver dips, such as the one that is now occurring.

It's not just govt bond debt that is a big problem. Consumers in the USA have a 100% debt ratio to income, as do corporations. This is new to our economic system. Two decades ago, the debt levels were not where near this high. 

And then you have the financial system. Which is perhaps the ugliest duckling. Today financial institutions are borrowing huge sums of money to finance short term operations and investments. The reliance on short term debt in huge valutations into the trillions of dollars in a new phenomenon. Without naming names, our financial titans literally cannot exist without huge dependence on liquid markets for short term debt. These are companies that do not have any cash reserves and instead have mountians of debt that they continuously roll over. It is a game of chance that they are playing with the entire financial system.

We turn on bloomberg and think that everything is fine, but it is an illusion. The truth is that we are in a countdown. A countdown to the mother of all crisis. The countdown to the meltdown of both the bond markets and the derivative markets. We can deny this countdown is in existence and go about our lives in ignorant bliss, but it is real nonetheless.

From this backdrop of reality, there is only a few ways to protect yourself, and physical gold is probably the best, with silver second.

www.goldsilverdata (for those who invest in gold and silver mining stocks). 

Tue, 12/27/2011 - 07:22 | 2012979 Seer
Seer's picture

Ultimately we'll face the music that, well, the music has stopped.  No more growth.  REAL shit will take on valuations that more approximate, well, reality!  Stuff that ain't REAL, like financials, fiat currencies etc. will find no chair.

Mon, 12/26/2011 - 21:15 | 2012482 RobotTrader
RobotTrader's picture

Gold under $1,600 again

 

No bids.

Mon, 12/26/2011 - 21:20 | 2012486 bob_dabolina
bob_dabolina's picture

No bids? 

Gold is limit down?

Mon, 12/26/2011 - 21:21 | 2012487 tmosley
tmosley's picture

*bid just below $1600

"Hurr nuh bids durr!"

Mon, 12/26/2011 - 21:33 | 2012505 RobotTrader
RobotTrader's picture

As Tyler would say:

 

"Bidless" at $1,600

Mon, 12/26/2011 - 21:46 | 2012510 akak
akak's picture

As EVERYONE on ZeroHedge would say:

"Clueless" @ RobotLemming

 

Get the fuck out of here already, you idiotic and mindless troll.

Tue, 12/27/2011 - 02:33 | 2012775 Ted K
Ted K's picture

@akak

So, what EXACT price above 1650 did you purchase anyway????

Tue, 12/27/2011 - 03:35 | 2012791 akak
akak's picture

Pardon me, you must have me confused with somebody else --- I don't believe that I have ever claimed to have bought gold at ANY price. 

But if I ever had, your point would be, what exactly?

Tue, 12/27/2011 - 04:50 | 2012837 Alpha Monkey
Alpha Monkey's picture

Dollar cost averaging, it still works.  Think longer term than a couple months.

Mon, 12/26/2011 - 21:42 | 2012522 nmewn
nmewn's picture

lol...there ya go, speaking in fiat again.

Mon, 12/26/2011 - 21:54 | 2012508 akak
akak's picture

Gold under $1,600 again

No bids.

RobotLemming's IQ under 16 again.

And he continues to drool, with no bib.

 

Funny, one might think that RobotLemming would be positive towards gold, as everyone knows how easily infants and the simple-minded are attracted to shiny objects.  But that, of course, presupposes that the entity under discussion is a human, and not just another caged, masturbation-addicted, poo-throwing monkey.

Note to self: Remember to call up the LA zoo and request that they look into the chronic abuse of the internet connection in their Ape House.

Tue, 12/27/2011 - 07:24 | 2012981 Seer
Seer's picture

USD over-bought, is that what you're saying?  I'm confused whether or not you're saying that PM holders should look to jump in at the top of the USD.

Tue, 12/27/2011 - 08:41 | 2013121 Seer
Seer's picture

Here's more "headlines" for ya:

S&P Index in 2011 Moves Least Since 1970

http://www.bloomberg.com/news/2011-12-27/s-p-volatility-at-double-averag...

The S&P 500 rose 3.7 percent last week, sending the measure to a gain of 0.6 percent for the year. The last time it moved less on an annual basis was in 1970, when it fell 0.1 percent. Within the gauge, companies least tied to economic growth, such as Biogen Idec Inc. (BIIB) and Hershey Co. (HSY), increased an average 15.7 percent including dividends, returning 8.2 times more than the index after adjusting for historical price swings. That’s the biggest gap since at least 1989.

---

Consider that for a moment, that the best bet was in stuff that wasn't associated with "economic growth."

And, lest you jump up and down about the indicated equities (who held these, who made this correct call?), gold also has "increased" 15% for the year ([from 1/4/2011 to current] ref: http://www.usagold.com/reference/prices/2011.html).

 

Mon, 12/26/2011 - 21:22 | 2012490 Schmuck Raker
Schmuck Raker's picture

OT

Private Actions Are Not Precluded Under Martin Act, Panel Decides

New York Law Journal

12-21-2011

This may be an important court decision affecting investors. But, I confess I'm not the one to say for sure. (The fact it has not been more widely disseminated by now may prove it's irrelevance.)

I thought posting it on ZH (having found it through a link at TBP) would give it an audience more sophisticated than I to review it, and hopefully comment.

"...rooted in an action initiated by a financial guarantee company that accused J.P. Morgan of mismanaging the portfolio of a company whose obligations were guaranteed by Assured Guaranty. Assured asserted claims for breach of fiduciary duty, gross negligence and breach of contract."

The link is here: New York Law Journal

Mon, 12/26/2011 - 21:30 | 2012501 ThrivingAdmistC...
ThrivingAdmistCollapse's picture

The Eurozone is going to break apart, causing a global economic collapse.

Mon, 12/26/2011 - 21:40 | 2012517 SgtShaftoe
SgtShaftoe's picture

I think they'll print, I think the US will print.  Why destroy the entrenched crony capitalists incentive structure while there's still money to be made.  The regulatory structure is essentially completely captured, by fixing the problem, they'll end their control of the money machine.  It's like the soviet union, the rule of law will get more broken before it finally collapses. I just don't know yet how bad that collapse will be.  If it's really bad, having hard assets and other stuff may not be enough.

ZH should do a post about the soviet collapse, something like this: http://freedomofoceania.blogspot.com/2011/12/lessons-learned-financial-c...

Mon, 12/26/2011 - 22:11 | 2012544 Hansel
Hansel's picture

If you're referring to fiat dollars as money, then won't there always be money to be 'made'?  Isn't that the point of fiat?

Mon, 12/26/2011 - 23:31 | 2012630 SgtShaftoe
SgtShaftoe's picture

Until the currency regime changes. By making money, I mean extracting value from currency, exchanging for tangible things. At some point the differential between cost of value extraction from currency ponzis, risk, and the value of money (exchanded for goods) extracted is a not worthwhile enterprise. That's when the bankers make their leerjet flight for their castle in Croatia, or take control of the government, promise change, institute a new currency and get "elected" supreme emperor, chancellor, etc.

The king is dead, long live the king!!

Mon, 12/26/2011 - 23:48 | 2012654 disabledvet
disabledvet's picture

you need the rule of law...that's all "Robot Lemming" (haha, that's pretty good!) is saying. Money without contracts being enforced is indeed "Sovietski." Ration cards, "papers" just for travel, you name it...the sky's the limit. I mean you already need a passport to go to Canada. How about "to go to work" then? Gives new meaning to the term "State Department" that's for sure! Private property? Ha! Thing of the past. Value for what the farmer does? Don't look at MF Global and what they did...look at Congress and how they never asked for the names of the people who did it! Those farmers ("and their pathetic savings ha ha !" will never see a dime of that money. Wall Street should be the last one's laughing. Your property is NOT secure Wall Street. Or should i say "SECURED ONLY BY A CONTRACT." Those folks only THINK they have money. Trust me...the various "State's of Emergency" have already been signed by the President. He's gotta run for re-election people! Get with the program!

Tue, 12/27/2011 - 00:45 | 2012705 covert
covert's picture

gold is the only true currecny.

http://covert.mypressonline.com

 

Mon, 12/26/2011 - 22:25 | 2012562 RobotTrader
RobotTrader's picture

$1,594

 

Gettin' ugly.

Mon, 12/26/2011 - 22:47 | 2012588 High Plains Drifter
High Plains Drifter's picture

what goes around comes around robo. just remember that,,,.

Mon, 12/26/2011 - 23:31 | 2012616 akak
akak's picture

RobotLemming: 1594 mindlessly pro-status-quo posts and counting.

Gettin' (and has always been) truly ugly.

 

Tell us, RobotLemming, what does it feel like to be a servile and spineless conformist?

Mon, 12/26/2011 - 23:33 | 2012627 Atomizer
Atomizer's picture

Gettin' ugly.

Do us a favor, find the nearest bridge.. Jump!

Lobotomy 4 the Masses - Crack Baby

Mon, 12/26/2011 - 23:37 | 2012637 akak
akak's picture

The nearest railroad track or high-rise building would do nicely as well --- better, in fact.

Mon, 12/26/2011 - 22:36 | 2012571 suckerfishzilla
suckerfishzilla's picture

Empirically Platinum and Palladium are much more rare than Gold.  The actual Au/Ag ratio remains a mystery (my guesstimate is between 9 and 11).  What is driving the demand for Gold?  What is driving the demand in the Silver market?  I'm rebuking further Gold purchases.  Buy White metal. 

Mon, 12/26/2011 - 23:23 | 2012620 akak
akak's picture

Empirically, lutetium, thulium, polonium and praseodymium are even more rare than either platinum or palladium --- so what?

Rarity, by itself, is almost meaningless in the determination of value --- one must consider demand as well.

Mon, 12/26/2011 - 23:53 | 2012660 disabledvet
disabledvet's picture

right. INDUSTRIAL DEMAND. That's BILLIONS. So Alan Greenspan and Bloomberg news celebrates "financial repression"? Welcome to RESOURCE repression. "Round up all the people"...it's time to go to war. that solves the problem of price in ALL commodities...does it not? And since Wall Street is stealing anyways...

Tue, 12/27/2011 - 07:31 | 2012991 Seer
Seer's picture

Don't assume that industry demand will always be there.  If people have no money to spend then industry is hardly going to be having high demands for all those metals...

Tue, 12/27/2011 - 01:14 | 2012728 suckerfishzilla
suckerfishzilla's picture

I did pose the question "what is driving the demand for Gold"  I would rephrase it by saying who or what is driving the demand for Gold?  At the retail level many investors are banking on Gold backing the next banker operation.  The point I am trying to convey is that you would be hard pressed to find anyone here who is a fan of what the central banks and investment bankers have done so far.  Why would you aid and abet their next phase of financial tyranny by acquiring Gold?  Winding down your gold purchases and buying other precious is resistance to their future plans...maybe...I think.

Tue, 12/27/2011 - 07:41 | 2013005 Seer
Seer's picture

"Why would you aid and abet their next phase of financial tyranny by acquiring Gold?"

This is worth picking apart...

"Tyranny" is "control."  It's control by concentration of some power.  I'd think, then, that allowing them to get their hands on less of what gives them power would be a meaningful strategy.  But, really, they've ruled us with PAPER, it's obvious that it's not getting any easier for them, that it's unwinding.

Lastly, that rats would cling to life preservers doesn't make life preservers a bad thing.  Part of their strategy is in tricking us to believe that it's the wrong thing (think about all their hired liars/propagandists): as I've been saying, humans are deceptive animals, that's nature!

People need to stop trying to outguess all of this and just go with their gut instincts: instincts are more likely to approximate true fundamentals.

Wed, 12/28/2011 - 02:44 | 2015439 suckerfishzilla
suckerfishzilla's picture

Chemicals in the lanthanide series of the periodic table are as abundant as Silver is and the lanthanide series makes such wonderful jewelry that doesn't oxidize either now.  Polonium is radioactive and besides the bank doesn't want me to put hazardous materials in my safe deposit box.  The demand for Gold is being propped up by sovereign nations like China Russia India and down the list.  The world is awash in a precious metal with few world applications.  I've asked the goldbugs here before why would you help the bankers in their next phase of financial fraud and misfeasance by continuing to acquire Gold?  Goldbugs are part of the demand curve.  Which market has the best fundamentals right now Gold or Silver?  Gold investors are banking on a political outcome eventually with their Gold investments.  Silver's fundamentals meanwhile are screaming out at you.  dang 

Mon, 12/26/2011 - 23:37 | 2012638 SgtShaftoe
SgtShaftoe's picture

Jeff Christian said he's more bullish on the other silver metals in the short- mid term(1-2 years), but silver / gold more so longer term, but a lot of people don't hold Jeff in very high regard.

Tue, 12/27/2011 - 07:40 | 2013004 GetZeeGold
GetZeeGold's picture

 

Word is Jon Corzine.....has stopped his payments all together.

Mon, 12/26/2011 - 22:41 | 2012580 cherry picker
cherry picker's picture

I don't know why they keep on referring to printed currency no one lent to cover deficits, etc as debt.

All it is is legal counterfeiting.  There is no one to atone to on the other side of the printing press.

Unfortunately the laws of supply and demand do not ignore legal counterfeit.  It is just deemed worthless after a while..

Mon, 12/26/2011 - 22:46 | 2012583 High Plains Drifter
High Plains Drifter's picture

http://www.latimes.com/news/nationworld/nation/la-na-terror-checkpoints-20111220,0,3213641.story

 

boy don't you just love that TSA job title?  behavior detection officer .......?????     wtf?????

Mon, 12/26/2011 - 22:53 | 2012596 cherry picker
cherry picker's picture

I never thought I would see the day when this would occur in America.

We all heard stories of TSA personnel with behavioral problems and now they are given aithourity to stop and search anyone based on what?

I am going to talk to my children about settling somewhere else and hope they agree to come along.

I don't like where this is headed.

Mon, 12/26/2011 - 23:09 | 2012608 High Plains Drifter
High Plains Drifter's picture

yep, you know where its headed. and its all bad. and nobody does a damn thing about it. they just put up with it, this is why i stay away from it as much as i can. but the day will come when they are in your face all day long , wherever you are and then. well then the line will be crossed......as chumba says...........i will not obey.........

Mon, 12/26/2011 - 23:46 | 2012650 cherry picker
cherry picker's picture

There are two issues I see.

When I was young, I tasted freedom. I lived it.  There was also a much higher level of personal responsibility.  You hurt yourself or if something happened, there was no one to sue to make you rich.

If you did wrong, you would ultimately pay the piper, but wrong was a much simpler thing to define in those days, like theft, assault, rape and murder.

Now, kids are stuffed into preschool learning a dogma only the technocrats can understand and fed this until their release date anywhere between the ages of 18 or 24.

If one chooses to live on his or her own devices at fifteen or sixteen, you need permission from big brother.  I was working full time at fifteen.  When I was thirty, I was ahead of most who did the degree thing.

The youth of today do not know what freedom is as compared to a generation past.

Materialism means nothing.  What good is it if your mom and dad are so busy paying for the $400,000 home, two vehicles and such when they forget your name, never mind loving you.

I think there was more love and compassion in those days, even if life was rougher.

Maybe it is just me, but that is my take on it.

Mon, 12/26/2011 - 23:52 | 2012657 gwar5
gwar5's picture

+++

 

Tue, 12/27/2011 - 00:44 | 2012704 High Plains Drifter
High Plains Drifter's picture

ron paul said one time, that the amerikans do not understand real freedom and real liberty. many of the young people that support ron paul have no real idea what he is all about. if , and only if, he ever got into office, his presidency would be a cruel and awful wakeup call for them as they will suddenly find out that nobody will be there to pick them up when they fall or hold their dicks when they take a piss. ron paul will say to them. good luck to you guys and girls....he will say..oh , you have terrible student loan debt. well sorry but you have to go pay that off. nobody held a gun to your head and made you sign those papers. etc etc.........a paul presidency will be a cold turkey experience for us all..............but that is a good thing.......no?  maybe ron paul is a man born at the wrong time.........living in the past , in a america that may have existed at one time but has been gone now for a long time .......lost somewhere in the sands of time , down a road, littered with the remnants of collatoral damages caused by numerous illegal and immoral and unjustified wars............oh if washington and jefferson could come back to life just for a while and take a look around at what has happened. i wonder if they would be surprised........i doubt it.......

Tue, 12/27/2011 - 01:00 | 2012717 cherry picker
cherry picker's picture

There are things that are available that government makes possible which are necessary and humane.  Old women without husbands or children are not left out in the streets to die alone.  That is a good thing.

I do not think Ron Paul wants or desires a trip into that past.  I believe he wants to instill the personal responibility and direction that free people have always enjoyed, unless they abused that right by doing something ugly.

I agree with his foreighn policy.  The current no nation on its own can afford to maintain for long without robbing from others.

The government should live within its means and honor obligations.  We need police, firemen, doctors and nurses, roads.  Nothing wrong with that and I really don't think anyone objects to paying taxes for this either.  When I was young, Doctors made housecalls, I don't know how my father paid, but we had no insurance.  The Docotr who stopped in at our home had one of the nicest homes in town so I don't think he was hurting that much.  :)

As in all things, there is a balance to be achieved.  Today the pendelum has shifted so far, I do not know if we can achieve balance before it shifts way over to the other side.

 

Tue, 12/27/2011 - 01:25 | 2012734 High Plains Drifter
High Plains Drifter's picture

i submit there is no time left now.   our candlestick is being extinguished..........we can change all of this but do we have the will to do it?   we are fat and lazy and spoiled. we are blind and cannot see and deaf and cannot hear. our young do not know right from wrong. ron paul is making a mistake with this frontal attack these days.  he should have left washington years ago and ran for governor of texas. that way, we could start the ron paul revolution here on home turf. he fights a well entrenched enemy who know him because he has been swimming in the sewer known as inside the beltway for a long time now. he knows full well what he is up against. so why bother with it. it is lost. retreat and regroup. a tactical withdrawal and an attack on the state level would suffice at this late hour. but , he would not listen........oh well...sometimes attacks on a well entrenched enemy must be made in clever and concealed ways.  they are not omnipotent. they have weaknesses. they go about roaring like lions..........but sometimes those who yell the loudest are the weakest , in the end................

 

now i must meditate. good day sir...........

http://www.youtube.com/watch?v=OYIxQsBVsWk&feature=related

 

 

 

 

Tue, 12/27/2011 - 08:54 | 2013153 Seer
Seer's picture

"You hurt yourself or if something happened, there was no one to sue to make you rich."

And there was a LOT less entities out there that could cause as much damage as there are today.

"When I was thirty, I was ahead of most who did the degree thing."

What does "ahead" mean?  Not to be mean or anything, but this is pretty subjective isn't it?  Further, comparing oneself to others isn't really a healthy thing: you'll ALWAYS be "inferior" or "superior," creates problems with one's complex.

I'd suggest that people talk less and do more, do what is intrinsically right (it's pretty much been proven that people KNOW what is Right and what is Wrong, and that no govt or religion is necessary to instill this understanding).

Tue, 12/27/2011 - 10:22 | 2013379 cherry picker
cherry picker's picture

You know what "ahead" means to me.  It means I was able to look after a family of four on my own without relying on big bro.  To me that is charity, something I give but would rather not recieve.

They assume that in this world you can't "make" it without complying to their demands of staying unproductive for the first twenty years of life because we need to "learn".

I learned enough by the time I was fifteen to realize I wanted to do it my way, not someone elses.  That is freedom.

Tue, 12/27/2011 - 07:44 | 2013012 Seer
Seer's picture

Damn hippies!  It's ALL traceable back to them!  If they'd only listened to authority...

Mon, 12/26/2011 - 22:46 | 2012584 Robslob
Robslob's picture

Only because you cannot afford a single Troy Ounce Rototraitor.

Or is it becuse you were "ALL IN" at Dow 12,700?

Mon, 12/26/2011 - 22:47 | 2012585 Atomizer
Atomizer's picture

With winter approaching, the softly spoken words of new Public Works programs will echo in less than two months. Unemployed workers will grip shovel ready enthusiasm, by clearing a snow path for deficit ridden cities. Another golden moment of opportunity will present itself.

Iggy Pop - The Passenger

Mon, 12/26/2011 - 22:47 | 2012586 Catullus
Catullus's picture

Phillip Bagus!!! Finally! I'm so glad ZH finally found him.

His talk at the Mises Forum in Vienna in September was key.

The other perspective he brought was regulatory harmonization within the EU. This was to separate the political from the economic reason for European political union.

Mon, 12/26/2011 - 23:33 | 2012631 akak
akak's picture

"Fill up, bag us" --- almost sounds like the perfect name for a bankster!

Mon, 12/26/2011 - 23:23 | 2012623 walküre
walküre's picture

Brent trading at 92 Cents a barrel .. only down 99.15% since before Christmas.

http://markets.ftd.de/commodities/factsheet_overview.html?ID_NOTATION=4062566

Obviously a glitch at ftd.de but what the heck.. funny shit!

Mon, 12/26/2011 - 23:48 | 2012653 gwar5
gwar5's picture

Would that be Alisdair Macleod, of the clan Macleod, doing the interviewing?  He's great. Recently wrote some timely and pointed articles on the current state of bankster and economic affairs. Glad to see he's doing more interviews on GM.

 

Kyles Bass bumper sticker: "God bless our military... especially our snipers"



 

 

Mon, 12/26/2011 - 23:51 | 2012656 ongoing
ongoing's picture

euro is a union,it is not a goverment.is it has so stronger power to act the problem?

communicate,communicate,and still communicate ,so much country to discuss,do you expert they will have made a agreement?

Tue, 12/27/2011 - 09:49 | 2013295 Seer
Seer's picture

"euro is a union"

Huh?

Isn't "Euro" a common currency adopted by the European Union?  My understanding that, techincally, the European Union could exist without the "Euro."

Mon, 12/26/2011 - 23:53 | 2012659 XtraBullish
XtraBullish's picture

Bye Bye Gold...going to $1,300-1,350. The "Currency Debasement Trade" is now to go SERIOUSLY LONG ES/H2 for record highs on the U.S. stock market averages! Be long or be wrong. Stocks for the Long Term is the new mantra for 2012. 

Mon, 12/26/2011 - 23:58 | 2012664 xela2200
xela2200's picture

Does anybody know when the Pacific-Asian Gold Exchange (PAGE) is going to open?

 

http://goldsilverreview.blogspot.com/2011/09/page-pacific-asia-gold-exchange.html

Tue, 12/27/2011 - 00:04 | 2012668 High Plains Drifter
High Plains Drifter's picture

http://www.shreveporttimes.com/article/20111226/OPINION03/112260313/Ron-Paul-simply-can-t-allowed-win-Iowa

 

 

ron paul cannot win iowa...........he must be stopped.............

 

Tue, 12/27/2011 - 00:15 | 2012680 akak
akak's picture

Wow --- fucking WOW!

The sheer maniacal level of hysteria and denial apparent in all these pro-status-quo fearmongers and warmongers is simply astounding --- and utterly nauseating.

Tue, 12/27/2011 - 00:33 | 2012699 High Plains Drifter
High Plains Drifter's picture

the realization that this guy might actually win iowa is starting to sink in, in so many ways, in so many places..........

 

ron paul has gone from a novelty to an annoyance (at least to some)

 

the never ending quest to get the "right person" in the office of president and to extend this never ending silly game known as the left right paradigm , never ends it seems   no matter what is really and truely going on in this country some useful idiots never seem to really get it. it is truely amazing to watch.   those who know watch this with utter amazement.  what are they thinking?  that this silly game known as left , right, liberal , conservative,  a game that has been prepared for them by someone else of course, will always continue on and on into the future , even though the fiat regime is dying and our country is dying and the world financial system teeters on collapse, yet some yoyo writes such rubbish as is in the above link.  what is he smoking?  what planet does he live on ?   where does he come from?  where do these people come from ?  are they flesh of my flesh and bone of my bone?  it is truely embarrassing.......in the days of the troubles many shall get in the way........

Tue, 12/27/2011 - 00:50 | 2012710 cherry picker
cherry picker's picture

The worst part about the selling all this bullshit and fear is the echo effect.

The parrots are lining up to relish in the tiny little dirty details which may never have happened.

Even if Ron Paul may not have been a saint, no one truly is, that does not mean he is not a good man with honest intentions today.   Can people not see that what we have been doing the last few decades and promoting still is not working, will never work and accomodate a planet of 7 billion human beings with desires, hopes, dreams and feelings.

High Plains Drifter, too me it is no longer embarassing.  There are those who will seek and see the obvious, and those who won't or can't.  There must be a reason for this, otherwise it would not be.

Is it a call to arms or an opportunity to illustrate another way?

That is the challenge, isn't it?

Tue, 12/27/2011 - 01:13 | 2012727 High Plains Drifter
High Plains Drifter's picture

the people you describe will be the opponents in the coming amerikan civil war...........we are severly outnumbered. but that's ok. i wouldn't have it any other way....

 

as the birds sang long ago........turn turn turn , there is a season.....

http://www.youtube.com/watch?v=fHvf20Y6eoM

 

 

'

Tue, 12/27/2011 - 09:41 | 2013271 tmosley
tmosley's picture

The comment sections on all of these hit peices are quite heartening.  It appears that critical mass has been breached.  Ron Paul has greater than 10% support now, which means that the masses will start listening to his ideas and finding them to be surprisingly sound, and much clearer and to the point than the jibber jabber coming from the other candidates.

Tue, 12/27/2011 - 01:40 | 2012743 Atomizer
Atomizer's picture

High Cliff Drifter.. Good boy, pats you on head. What would this world be without lemmings like yourself?

Electronic Behavior Control System

Tue, 12/27/2011 - 10:55 | 2013442 TheFourthStooge-ing
TheFourthStooge-ing's picture

High Plains Drifter spotted another piece of CONMedia offal:

http://www.shreveporttimes.com/article/20111226/OPINION03/112260313/Ron-Paul-simply-can-t-allowed-win-Iowa

ron paul cannot win iowa...........he must be stopped.............

If you scroll to the bottom of the page, you'll see that the Shreveport Times is another third-rate fish wrapper in the Gannett empire.

[for those who are unfamiliar with the term, CONMedia = Corporate Owned News Media]

 

Tue, 12/27/2011 - 00:21 | 2012686 San Diego Gold Bug
San Diego Gold Bug's picture

Rehypotheticate this Fed bitches!!    Bite this Benny b.

Tue, 12/27/2011 - 10:03 | 2012713 cranky-old-geezer
cranky-old-geezer's picture

 

 

The Founders declared gold and silver as money in America.

That does NOT include a government issued paper currency.

Nor does it preclude a paper currency that is redeemable in a fixed amount of gold stated on the currency.

In other words, paper claim checks for gold and silver would be a suitable substitute for physical gold and silver under the constitution.

And it doesn't have to be government-issued paper claim checks.  It could be anyone's paper claim checks ...assuming they were money-good of course.

Only gold and silver are money according to the constitution.  

Paper isn't money.  Paper is merely a claim check for money that can be tendered in place of money and it accomplishes the same thing. 

This is how paper currencies started.  Paper claim checks on a specific amount of gold or silver held by the issuer of the claim check, stated on the claim check.

A check you write today is the same principle.  Your check is not money.  It is a claim check on a specific amount of your money on deposit at the bank, stated on the check.

 

Tue, 12/27/2011 - 01:17 | 2012722 brokenclock
brokenclock's picture

This will be the final push on gold to get all the suckers in. Then it will collapse.  There is no other game for them to rip you off. So this will be it. Doesn't matter what all the reasons are that gold should rip to the moon.  The game is rigged and they will crush whatever market segment that has the most sheep.

 

Equities will rip, gold will collapse, because the wrong trade is the right trade.  Tight stops, put and call protection is the only way for position trades. Otherwise stay away. "SIZE PLAYER ON YOUR HEAD"

 

Tue, 12/27/2011 - 01:33 | 2012738 akak
akak's picture

The game is rigged and they will crush whatever market segment that has the most sheep.

The vast, overwhelming majority of sheep are in paper assets (sic) and most definitely NOT in gold, as they implicitly trust their "leaders" to "do what is best for them" --- whereas the holders of gold, who realize that government is NOT their savior, NOR their friend, will sadly and probably always be in the small minority of those who are "awake" and can see where current financial and political trends are heading.  The majority will NEVER "be in gold", as that is not in the interests of the powers-that-be, and so the sheep will blindly follow the sociopaths who masquerade as their benefactors and protectors.

 

Tue, 12/27/2011 - 01:53 | 2012752 brokenclock
brokenclock's picture

Negative paper assest is not an assest. The Sheep have no paper assests. Most Amercian's are in paper debt, House up-side down, credit card debt and have no real asset vaule.

Therfore the only assest worth anything is PM.  That's the next target.

Tue, 12/27/2011 - 02:07 | 2012757 akak
akak's picture

Actually, the trillions of dollars held in tens of millions of IRAs and 401k plans would be a vastly more lucrative, and much more likely, target of the sociopaths who masquerade as our leaders.

Tue, 12/27/2011 - 02:08 | 2012760 brokenclock
brokenclock's picture

lmao, that was funny. like your thinking. They can't do that without cutting off there own heads. I wouldn't put it passed a real sociopath... but, I just don't think they will do that.

 

 

Tue, 12/27/2011 - 02:17 | 2012769 akak
akak's picture

One would think so, but it has in fact already happened a number of times in different countries in just the last 20 years, notably in Argentina during their currency crises and economic collapse in 2001-2002, as well as partially in Hungary just last year.  Before gold confiscation is EVER discussed or implemented, you can fully expect to see such measures taken against retirement savings in this country as well.

Tue, 12/27/2011 - 02:34 | 2012776 brokenclock
brokenclock's picture

Keep in mind for earlier ZH posts that over 40 % of American's have less the 1,000.00 in real savings. The real money in 401k funds is Corporate contributions and under Union control. Those will be the last to be touched or anarchy comes to life.

 

Even in the most dire straight households gold chains, watches, teeth and rings are there true net positive asset. Gold is an abundant asset amongst the sheep. They will kill all sheep assest value before they crash and burn themselves. 

Tue, 12/27/2011 - 02:52 | 2012781 Vic Vinegar
Vic Vinegar's picture

Gold is an abundant asset amongst the sheep. They will kill all sheep assest value before they crash and burn themselves. 

A) Who are the sheep?

B) Who are "they"?

C) What is an assest?  

LOL 2 U

http://www.youtube.com/watch?v=u1ShTYMMjQ0

Tue, 12/27/2011 - 03:58 | 2012797 akak
akak's picture

A) Those who are willingly fleeced

B) Those who are not "us"

C) I don't know exactly what it is, but I can sure tell you WHO it is

Tue, 12/27/2011 - 02:17 | 2012765 Vic Vinegar
Vic Vinegar's picture

 

Riddle me this: Why don’t we recognize Family Ties dvd’s as money instead of gold?  I could get on this site and hate on the 'sheep' for not being in Family Ties videos, right?

Aside from being a pretty sweet show, it’s also a medium of exchange that the Rothschild clan doesn’t have more of than you or me. Can't say the same about gold.

http://www.youtube.com/watch?v=4WHIRFqWx8I

 

Tue, 12/27/2011 - 03:41 | 2012793 akak
akak's picture

The fact that world central banks do not hoard Family Ties videos might be one hint.

The fact that there is zero history of anyone using Family Ties videos as a means of exchange, or a store of value, or a unit of account might be another.

The fact that Family Ties videos are arbitrarily and essentially infinitely reproducible might be yet another.

Any other questions that anyone with a passing knowledge of monetary or economic history might be able to help you with?

Tue, 12/27/2011 - 07:54 | 2013028 Seer
Seer's picture

So, you're also implying that South Park videos are also not going to be currency?  And Beanie Babbies? </sarc>

Tue, 12/27/2011 - 11:12 | 2013484 TheFourthStooge-ing
TheFourthStooge-ing's picture

South Park videos are more of a long term investment.

 

Tue, 12/27/2011 - 03:44 | 2012795 AnAnonymous
AnAnonymous's picture

Made me laugh.

Really, back to home.

A thought provoking professor? Holy cow, no. He is just one US citizen propagandist working in pair with his propandist fellows.

Most of European countries are closer to insolvency than anything else.

As examplified by the Greek crisis (a country with smaller superficy compared with others), as they are borderline insolvency, no country alone, no combo of countries can claim to be able to bail out another country.

Cause: they are near insolvency or insolvent.

But the differences between european countries is how to play and expose the insolvency of other countries. Some countries are in a much better position to push other countries under the train. That is the difference and it does not correspond with fundamentals but rather with the inclusion within the world wide web of US world order propaganda.

Germans are not in great shape, certainly not. But they are well seen by their german cousins living in the US. So they benefit from adequate propaganda to cover their own situation and expose others' situations.

Fundamentals do not matter. What matters is the perception in US citizenism.

This professor is certainly not thought provocative. He is your typical US citizen professor playing the part of the staged opposition, telling nothing real but a version adequate to frame the problem in a way US citizens wish to in order to select the solutions US citizens want.

Tue, 12/27/2011 - 03:56 | 2012802 akak
akak's picture

You DO realize that you sound like a complete moron and a hate-filled idiot with all your nonsensical blathering about "US citizenism", don't you?  Your posts are uniformly devoid of meaning or insight, and are nothing more than blind collectivist rants against Americans, tarring all of them with the same insanely broad brush. 

You are contemptible.

Tue, 12/27/2011 - 04:06 | 2012809 AnAnonymous
AnAnonymous's picture

Soundinglike a completemoron and a hate filled idiot among a crowd of US citizens does tell nothing but favourable things.

US citizenism (which US citizens living in the US of A call improperly Americanism) is first and above all (by US citizens'words) a state of mind.

The consequence is simple: broad brushing is not inherently insane (contrary to broad brushing used by US citizens like people living in the same place, or share a similar skin etc)

The broad brush telling that Christians believe in one god is not insane. It is a valid generality.

General statements made about US citizens are valid too.

And as usual, nothing but personal attacks.

In these two posts of mine, no personal attacks. I made observations and derive conclusions based on US citizenism knowledge.

But this US citizen, trapped in US citizenism, can not counter any point made in the post and has to use personal attacks to try to dominate (domination matters a lot to US citizens as their system depends on who holds power, it has no other existence that the one given by people in power)

This links directly with the remarks made latter: US citizens at start bamboozled people but now the lies are overused. Only violence will do.

Tue, 12/27/2011 - 04:35 | 2012823 akak
akak's picture

You are a hateful troll with NOTHING meaningful to say here.

There is NO such thing as "Americanism", something which only a European leftist collectivist could even spout. I almost certainly have FAR more loathing for the US federal government, and the simpleton sheep who believe in it, than do you, somebody who evidently does not have to live directly subject to it.  So put that in your collectivist pipe and smoke it!

Your comments, in their sweeping, broad-brush banal generalities, say nothing, except about you and your lack of even rudimentary reasoning capability, and clearly demonstrate your hate-filled desire to damn over 300,000,000 people based on the actions of a relatively (or very) small number of them.  From such collectivist ethnic generalities and nationalism-based hate were the furnaces of Auschwitz built.

Tue, 12/27/2011 - 12:21 | 2013735 AnAnonymous
AnAnonymous's picture

US citizens and their denial power.

Now, there is nothing like Americanism?

Americanism is a concept crafted by US citizens of US of A.

One quote among many to see how popular Americanism is among US citizens of US of A.

Al Capone:

This American system of ours ... call it Americanism, call it capitalism, call it what you like, gives to each and every one of us a great opportunity if we only seize it with both hands and make the most of it.

I suppose it makes Al Capone a European leftist collectivist.

This is the most biting issue for US citizens right now: they are into denying the most obvious fact, the clearest evidence about themselves.

Here's one who denied Americanism.

Tue, 12/27/2011 - 08:26 | 2013096 Seer
Seer's picture

"The broad brush telling that Christians believe in one god is not insane. It is a valid generality."

I don't know whether it's the fact that your primary language isn't English (and that is no disrespect- it's not my wife's either, in which case I don't dismiss out of any such case), or whether you're just ignorant.

Broad brushing has to do with a generalization, not a FACT.  Christians' beliefs ARE about believing in "one god," it's not a "generality."  This isn't an opinion!

As someone who resides in the U.S. I can emphatically state that you are in FACT broad brushing folks who reside here.  I could, as, sadly, many here knee jerk and do, paint ALL Europeans as "collectivists" or whatever...

I've been to many countries.  I've been subjected to many cultures and ideologies.  I'm not myopic.  And, I don't hold ANY culture or ideology up above any other, as I feel that diversity exists for a reason (diversity is a hedge against monopoly, and a violation of nature [fail]).  I am anti-empire: and, as stated elsewhere, ALL nations achieved their wealth through national theft of one sort or another: England, France, Belgium, Sweden, Spain, U.S., Canada and on and on...  Again, there's a pot and a kettle here somewhere...

Tue, 12/27/2011 - 12:26 | 2013752 AnAnonymous
AnAnonymous's picture

What is that all about?

Generalities are not supposed to be facts? Since when?

General statements are what they are, general statements.

Broad brushing loses most of the big picture while generality are only done at a general level.

No broad brushing in my comments. Only valid generalities about US citizens.

But hey, US citizens are US citizens. Their duplicitous nature leads them to deny everything, just one who denied the very existence of Americanism.

US citizens deny everything indicting them as the root of the current state of the world.

As that everything is much, much, much, well, it creates quite an activity and opportunity for propagandists.

Tue, 12/27/2011 - 07:58 | 2013035 Seer
Seer's picture

The ONLY reason the US is still afloat is because it controls the fiat industry, it has the MASTER printing press, it can create more of nothing of "value" than anyone else.  Somewhere in here there's a pot and a kettle...

Tue, 12/27/2011 - 03:57 | 2012804 AnAnonymous
AnAnonymous's picture

US citizens are pure laughters, keeping selling lies since their inception.

At first, they bamboozled people. But now, as US citizens failed to renew their propaganda, the only efficient way to force the US citizens'lies down the throat of other men is violence.

So here is the same propaganda as usual:US citizens has been running a unique experiment that is going to lead to unique conclusions.

But the only way they reach those unique conclusions is they write off all history previously theirs because well, a look at it showed that the unique US citizens conclusions are not that unique.

So again, with the scam that bankers do not want gold.

Bankers will certainly not oppose gold whenthe time for gold has come.

The world is still abundant and fiat is much adequate as one can monetize any new input flow at ease.

This is the control of money supply. Adding to the pool.

In a contracting environment (as shown by history), the control of themoney supply is done by hoarding, by withdrawing from the pool.

Hard currencies like gold, silver are perfect for that.

Banks will adopt gold in due times.

Whatever, the mattering point is that the control over the money supply is done both ways: by adding or withdrawing from the circulated pool.

Gold certainly does not remove power of controlling the money supply. So why would bankers be scared by it?

Bankers simply want to use the best tools for the current moment.

Tue, 12/27/2011 - 04:02 | 2012808 akak
akak's picture

Well, your spelling (if not your grammar) is not sufficiently bad for alcohol to be the obvious fuel behind your funny little rants.  I'm guessing ..... crack?

Tue, 12/27/2011 - 04:09 | 2012812 AnAnonymous
AnAnonymous's picture

Spelling, good luck with that.

Grammar: english has no official grammar. Only consensualized grammar.

Once again, when pointing to US citizenism consequences, US citizens can not but try to divert on other topics.

US citizens are simply unable to discuss US citizenism. US citizenism is a state of mind that deprives human beings from introspection.

Tue, 12/27/2011 - 04:36 | 2012821 akak
akak's picture

You are insane AND filled with blind, sweeping hate.

Is that a typical trait of AnAnonymouscitizenism?

Tue, 12/27/2011 - 08:04 | 2013046 Seer
Seer's picture

OK, you're a pissed off European, I get it.  But... enough with painting with a broad brush!

As was the case in the history of all nations, the power elite stole in order to create their "wealth."  The average person was just pulled along in the stream: yeah, that's no real defence ("just following orders" and all), but to categorically state that ALL US citizens are incapable of something as pertains to thought, well, I'd have to ask about your ability to think.

Tue, 12/27/2011 - 12:32 | 2013777 AnAnonymous
AnAnonymous's picture

Made me laugh.

They are on character it becomes grotesque.

Just as I stated US citizens can not criticize themselves, one US citizen comes to tell that you need to be a non US citizen to criticize US citizens.

Funny.

Once again, US citizenism (americanism, the american spirit) is first and above all a state of mind.

Hint: most Europeans today are US citizens, they display the characteristics of the state of mind called unproperly called Americanism.

Tue, 12/27/2011 - 04:38 | 2012829 madbomber
madbomber's picture

 

SLEEPIN IN MY NIKES -

http://www.youtube.com/watch?v=O1sjTKbNois

 

 

Tue, 12/27/2011 - 05:34 | 2012871 kookaburra
kookaburra's picture

A spanish documental about the recession, with an austrian point of view http://vimeo.com/34169396 (yet to come) with Philipp Bagus, Huerta de Soto, Juan Rallo, etc....

Tue, 12/27/2011 - 05:42 | 2012880 tim73
tim73's picture

Many Americans seem to arrogantly think, modern history started in 1776 and FED was the first central bank. Wrong, modern history started way earlier and the first central bank was Sveriges Riksbank, Bank of Sweden 1668. Then others followed, BOE 1694 and Bank of France 1800. I do not see French, Swedes or even British wanting the return of free banking era.

Americans do not even want to learn from their own history. 19th century WITHOUT any stabilizing central bank in USA was filled with bank runs: Panic of 1819, 1837, 1857, 1873, 1884, 1890, 1893, 1896. 1890-1910 was especially volatile and that is why FED was established 1913 to bring stabilizing force into banking industry.

Then there is the truly free banking era in USA 1837–1862: "During the free banking era, the banks were short-lived compared to today's commercial banks, with an average lifespan of five years. About half of the banks failed, and about a third of which went out of business because they could not redeem their notes" - wiki.


Tue, 12/27/2011 - 06:55 | 2012944 css1971
css1971's picture

Great. So today, instead of a bunch of small regional banks being taken out we have the entire world! Much better. Huge improvement.

I agree though I don't see free banking ever come back. The stable/regulated alternative to what we have is Full  Reserve banking.

Tue, 12/27/2011 - 07:01 | 2012952 tim73
tim73's picture

Full reserve banking is also called under-the-pillow banking. Money would just sit there, earning nothing. Forget about money for startups and for new investments because of full reserve banking. No risks, no gains.

Tue, 12/27/2011 - 08:10 | 2013059 Seer
Seer's picture

"Money would just sit there, earning nothing."

The ENTIRE problem with our economic system is that it's predicated on this notion of money magically creating MORE Money.  It's ALL an illusion, it's forced growth, extraction from the future and it's now starting to buckle under the realities of the physical world.

There's a pretty good reason why many religions frowned upon usury.  Somewhere along the line we missed the warnings.

Tue, 12/27/2011 - 08:14 | 2013069 Seer
Seer's picture

Here's a harbinger of things to come:

Petroplus shares fall 40% after $1bn credit freeze

http://www.bbc.co.uk/news/business-16337794

As I've been saying, economies of scale in REVERSE is going to be painful.  Margins being squeezed.  Pushing on stings ("consumers" unable to consume- broke).  The pedals will be pushed harder but the speedometer will continue to decline.  At some point people will have no other option than to get out (of the System) and walk.

Tue, 12/27/2011 - 09:30 | 2013233 split4to1
split4to1's picture

i agree with this but when looking at the euro versus usd we can still see that technically there are some further issues in the short term http://www.traddr.com/profiles/blogs/forex4you-technical-analysis-27-dec-2011

Tue, 12/27/2011 - 11:56 | 2013636 pineyard
pineyard's picture

Thanks for the INFO !

And then : MERRY CHRISTMAS & HAPPY NEW  YEAR to everyone

.. especially to the GUYS behind this Web-site :

I ENJOY it immensely .. and want to say thank You to those who use their Energy and Time to make it possible !

THANKS !

Tue, 12/27/2011 - 20:58 | 2015106 theyenguy
theyenguy's picture

The three might as well be talking to the wind, as the Sovereign Lord God, has plans to let the European sovereign debt crisis fester and to utterly destroy the fiat money system. There will be no free market money system as desired by Murray Rothbard and other Libertarians.

Murry Rothbard reported that the fiat monetary system began on August 15, 1971, when the US government suspended the convertibility of the US dollar to gold.

The death of fiat money, that is, the death of fiat currencies, began in August 2011, as the US Dollar, $USD, began to rise from 73.50. This was immediately after investors sold out of stocks in July 2011, when they became aware that a debt union had formed in the Euro zone. Then in August, they sold heavily again, when Angela Merkel and Nicolas Sarkozy called for a true European economic government, and when Herman van Rompuy called for a sovereignty union.

Bible prophecy found in Daniel and Revelation provides insight into current world events. As fiat money suffers debt deflation, nations loose their sovereign authority, and debt sovereignty, and have to look to a credible sovereign to provide seigniorage, that is moneyness. In the Euro zone, fate is passing the baton of sovereignty from sovereign state to the EU ECB and IMF Troika, as technocratic government is being installed in profligate Italy and Greece, and as seigniorage aid is provided to Greece. The Beast Regime of Neoauthoritarianism is rising up out of the Mediterranean Sea. This monster of statism has seven heads, symbolic of its occupation in mankind’s seven institutions and ten horns symbolic of its rule in the world’s ten regions, Revelation 13:1-4.

Soon out of sovereign armageddon, that is a credit bust and financial system breakdown, Revelation 13:3-4, leaders will meet in summits to announce regional framework agreements, cede sovereignty to a Federal Europe, establish a fiscal union, provide a committee for fiscal sovereignty, announce austerity measures, institute structural reforms, and impose debt servitude, in order to provide for regional security and stability.

The Sovereign Lord God, Psalms 2:4-5, is operating through the first horseman of the apocalypse, Revelation, 6:1-2, to effect a EU wide political, economic and military coup d etat which will result in the death of all forms of economic life. The economic capital of credit and carry trade investing is being replaced with the political capital of diktat. Investment capital is being replaced by technocratic governments which enforce strict fiscal rule demanding even more austerity measures in Ireland and Spain, fiscal tightening to eliminate welfare in Argentina, mandates to eliminate state worker patronage systems in Greece, and structural reforms turning back of national wage contracts throughout Europe.

Those living in the EU are no longer citizens of sovereign nations, but rather residents living in a region of global governance, as called for the 1974 Clarion Call of the Club of Rome for regional global governance. Totalitarian collectivism is Europe’s future. Libertarianism’s Freedom and Free Enterprise are mirages on the Neoauthoritarian Desert of the Real. Choice is an epitaph on the tombstone of a prior bygone age of Neoliberalism.

As credit instruments break down, not by any human action, but rather by fate, the curtains will open, and The Sovereign, Revelation 13:5-10, and his banking partner, The Seignior, Revelation 13:11-18, will step onto the world’s stage. In a credit exhausted and currency devalued world, the people will come to place their faith in the word will and way of these two; they will give their full allegiance to their diktat, Revelation 13:3-4.

The statue of the progression of human governments, Daniel 2:31-44, reveals that God has purposed for the destruction of fiat currencies to establish an eternal kingdom which will be ruled by His Son, Revelation 2:26-27,

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