Another good read. Makes you think.
And don't forget my free app. Download it to your android phone or tablet:
https://apps.appypie.com/media/appfile/97679f467564.apk
CYA: SE:
In watching the Corporate media depict the U.S. dollar, and even its (bubble) equity markets as “safe havens”; it became clear that this was an opportune time to define the term “safe haven”. This is best accomplished by first showing what are not safe havens: the dubious dollar, along with the U.S.'s fraudulent and ridiculously overvalued equity markets.
Note the redundancy of the term. The word “haven” is defined as a sanctuary, and place of protection, by itself. Thus a “safe haven” directly implies ultimate safety: the safest-of-safe places for our wealth.
Let’s begin by looking at the Corporate media’s first suggestion of a safe haven: the Mighty Dollar. Here we start with the dollar’s past. Since the Federal Reserve was put in charge of “protecting the dollar” (just over 100 years ago); it is officially documented that the dollar has lost over 98% of its value. In a single (long) lifetime; this “safe haven” would/will and has lost nearly all of its value. But those were the “good, old days” for the Mighty Dollar.
In the more-recent past; in the 44 years since Paul Volcker assassinated the gold standard (and thus the U.S. dollar lost all of its gold backing) it has lost more than ¾ of its value. But those were still the Good, Old Days, when we compare that with the dollar’s present and its future. Here we begin with a chart which is now burned into the minds of readers:
Note the flat part of the chart. This symbolizes all the decades the Mighty Dollar was going-to-zero at the rate of merely once in a lifetime. Then B.S. Bernanke got busy with the “Helicopter Drop” that he promised the world back when he was nothing but a lowly and obscure university professor, his “quantitative easing”: conjuring worthless paper, by the trillions, out of thin air.
While the endemic currency-manipulation of the banking cartel has been able to prevent a second collapse-to-zero for the dollar (so far); that was before the world became firmly aligned behind a transition to a new reserve currency: China’s renminbi. What is the value of a currency after most of the world stops using it? What is the value of Monopoly “money”?
The U.S. dollar has not remotely resembled a safe haven for an entire century, as even the (partial) gold standard in place for much of that time couldn’t preserve its value, once the Federal Reserve started “protecting” it. It began going-to-zero twice as fast once (Fed-head) Volcker abolished the gold standard. And then (Fed-head) B.S. Bernanke quintupled the size of the monetary base.
This automatically causes a drop in value (price) commensurate with the size of the increase in supply. Thus the quintupling of the supply automatically reduced the (real) value of the Weakling Dollar by an additional 80%, and only the banksters’ extreme/relentless currency manipulation has prevented the dollar from collapsing to something resembling that true value.
Indeed, (along with the law of supply and demand) it is the banksters themselves who are our authority for the proposition that an increase in supply automatically causes a decrease in price/value. In “The Great Gold Debate”; the infamous Jeffrey Christian pointed out that the banksters used to regularly spread rumors that central banks were about to “dump” some of their gold onto the market, because even the suggestion of an increase of supply would cause the price of gold to fall.
However, this massive currency-fraud which has propped-up the dollar to (at least) five times its actual value cannot survive the change-over from dollar to renminbi as the new “world currency”. Having just quintupled the supply of the dollar; we are in the process of seeing demand fall by a similarly enormous quantum.
Massive increase in supply + massive decrease in demand = worthless dollar.
The arithmetic is simple enough that it is probably within the capacity of even an economist. Furthermore, we are seeing a similar shift from West to East in terms of the world’s financial/monetary/economic institutions.
The (Western) World Bank is being replaced by the (China-led) AIIB. The (Western) “SWIFT” system for global, electronic commerce is being replaced by the (China-led) CIPS payment system. And as China becomes, more and more obviously, the global focal point for the world economy; it is China’s equity markets (not those of the U.S./Europe) which will predominate. All this reduces demand for the dollar still further.
Far from being “a safe haven”, the dollar is simply financial suicide, as this debauched/obsolete currency must collapse-to-zero in the near future, likely dragging the other, worthless Western currencies down with it. The U.S. dollar will soon meet the same fate as every other paper, “fiat currency” which has been created over the past, thousand years: oblivion.
Ironically, it is the creator of the first paper, fiat currency – China – which has also made it clear it plans to formally back the renminbi with gold. No one understands any invention better than its creator. All paper, fiat currencies are an inherent fraud, which is why none have ever managed to survive.
While the portrayal of the U.S. dollar as a safe haven is preposterous, attempting to characterize U.S. equity markets as “a safe haven”, as they sit at all-time bubble-highs is simply pathetic. We begin with the fact that by definition equities are a “speculative” investment – the literal opposite of a safe haven.
This would be true even if U.S. markets were presently at something resembling “normal” valuations. But with these markets at extreme, bubble-highs, they are nothing but a ticking time-bomb – about to go off. Just ask Warren Buffett.
Why is the 83-year-old Buffett sitting on top of a hoard of well in excess of 60 billion soon-to-be-worthless dollars (the largest hoard of currency he has ever amassed)? Because Buffett the Vampire-layer (confidant of the bankers) knows that these bubble-markets will implode down to something resembling rational levels before either his paper becomes worthless, or he goes to his final resting place.
We haven’t even gotten to “bail-ins”. This is the plan now codified across the Western world to indemnify Big Banks whenever they bankrupt themselves through their own greed and reckless leverage, by stealing whatever paper assets they command the lackey-politicians to sign over to them. This makes the previous “equation” even simpler. Paper = suicide.
This brings us to real safe havens: the safest-of-safe places for our wealth: gold and silver. For thousands of years; precious metals have been the one, true “safe haven” for our species. This is because for thousands of years they have perfectly preserved (i.e. protected) the wealth of their holders, while the Mighty Dollar has only managed to (temporarily) maintain a tiny fraction of its value – and for little more than a century.
Why have gold and silver been our best safe havens, virtually throughout recorded human history? Because they are both real assets and “good money” (rather than mere currency). As a matter of elementary logic; any hard asset will be a superior safe haven to mere paper instruments – which not only carry “counterparty risk”, but whose value is highly dependent upon the mere confidence of the “players” in these markets.
This is why the Corporate media blares its “don’t worry, be happy” drum-beat 24/7. This is why the U.S. government publishes several “confidence” statistics, and reports them on an equal basis with hard economic data. As with any “con” (i.e. confidence game); the fraud can only continue as long as the Chumps retain confidence in the system.
Gold and silver do not derive their value from the confidence of Chumps. This is because not only are they valuable assets due to their tremendous aesthetic appeal, and valuable assets because of their tremendous number of uses in industrial applications; they are our best (only?) “money”.
Indeed, it is because gold has been so useful as money that we have almost completely refused to use it industrially, hoarding virtually all of it as either money or jewelry. Even there, in agrarian societies (like most of India) the gold (and silver) jewelry is their money. Lacking access to banks; these people wear their savings around their throats or other body parts in the form of gold/silver jewelry.
In our 21st century economy, where any “barter system” is utterly impossible; good money is arguably as important and useful in any crisis scenario as food and water – because when your food/water runs out, you will (very probably) require good money to buy more. Such crisis scenarios are the entire reason why we need (genuine) safe havens, and why prudent individuals put a portion of their wealth into them, proportionate to the potential severity of the crisis.
Today, as prudent individuals attempt to “plan for a crisis”, the first thought that comes to mind is “which crisis?” The fascist government of the United States has been overthrowing regimes and fomenting wars at a much more-rapid rate than normal, for even this extremely belligerent nation. Our economies are all obviously/hopelessly insolvent. Meanwhile, most other asset-classes are also at “bubble” levels; ready to crash.
Western real estate markets are almost all at extreme, bubble levels – meaning literal “bubbles”, not the mindless use of the term which is regularly spewed from the lips of media drones. Not only are the prices of Western real estate propped up with insane amounts of debt (i.e. leverage); the equally-insane prices themselves are not remotely sustainable.
Long-term real estate prices can only be supported (as a simple matter of arithmetic) by the level of real incomes of the members of that society. Every time that real estate valuations soar high above income levels, those valuations must come crashing down. Empirically, every time that real estate valuations have soared high above income levels, those valuations have come crashing down. Real estate (at least Western real estate) is simply another ticking bomb.
It is for all of these reasons that sane individuals would be gravitating toward gold and silver, even if they didn’t have a multi-thousand year track record as our best “safe havens”. They beat any/all other asset classes even on the simple basis of lesser-of-evils.
Thanks to the marauding bankers, however (and their relentless price-suppression of gold and silver); we have a further, strong imperative for funneling all the wealth we wish to protect into gold and silver. While many other asset-classes are at/near bubble-highs; gold and silver have been suppressed to tiny fractions of their real value – even versus other classes of hard assets.
As the world transitions inexorably to a China-led economy, with a gold-backed reserve currency; we can expect gold and silver to be appropriately revalued. Indeed; in our ridiculously inflated world it would require a dramatic, upward revision of the price of gold to make “backing” even China’s currency mathematically possible.
Never before have we been more in need of a (genuine) safe haven for our wealth. Thanks to the current price-suppression; gold and silver have never been “safer”, meaning we have never before been able to transfer our wealth into gold and silver at such advantageous rates. Meanwhile, the financial bombs keep ticking…
And don't forget my free app. Download it to your android phone or tablet:
https://apps.appypie.com/media/appfile/97679f467564.apk
CYA: SE:
In watching the Corporate media depict the U.S. dollar, and even its (bubble) equity markets as “safe havens”; it became clear that this was an opportune time to define the term “safe haven”. This is best accomplished by first showing what are not safe havens: the dubious dollar, along with the U.S.'s fraudulent and ridiculously overvalued equity markets.
Note the redundancy of the term. The word “haven” is defined as a sanctuary, and place of protection, by itself. Thus a “safe haven” directly implies ultimate safety: the safest-of-safe places for our wealth.
Let’s begin by looking at the Corporate media’s first suggestion of a safe haven: the Mighty Dollar. Here we start with the dollar’s past. Since the Federal Reserve was put in charge of “protecting the dollar” (just over 100 years ago); it is officially documented that the dollar has lost over 98% of its value. In a single (long) lifetime; this “safe haven” would/will and has lost nearly all of its value. But those were the “good, old days” for the Mighty Dollar.
In the more-recent past; in the 44 years since Paul Volcker assassinated the gold standard (and thus the U.S. dollar lost all of its gold backing) it has lost more than ¾ of its value. But those were still the Good, Old Days, when we compare that with the dollar’s present and its future. Here we begin with a chart which is now burned into the minds of readers:
Note the flat part of the chart. This symbolizes all the decades the Mighty Dollar was going-to-zero at the rate of merely once in a lifetime. Then B.S. Bernanke got busy with the “Helicopter Drop” that he promised the world back when he was nothing but a lowly and obscure university professor, his “quantitative easing”: conjuring worthless paper, by the trillions, out of thin air.
While the endemic currency-manipulation of the banking cartel has been able to prevent a second collapse-to-zero for the dollar (so far); that was before the world became firmly aligned behind a transition to a new reserve currency: China’s renminbi. What is the value of a currency after most of the world stops using it? What is the value of Monopoly “money”?
The U.S. dollar has not remotely resembled a safe haven for an entire century, as even the (partial) gold standard in place for much of that time couldn’t preserve its value, once the Federal Reserve started “protecting” it. It began going-to-zero twice as fast once (Fed-head) Volcker abolished the gold standard. And then (Fed-head) B.S. Bernanke quintupled the size of the monetary base.
This automatically causes a drop in value (price) commensurate with the size of the increase in supply. Thus the quintupling of the supply automatically reduced the (real) value of the Weakling Dollar by an additional 80%, and only the banksters’ extreme/relentless currency manipulation has prevented the dollar from collapsing to something resembling that true value.
Indeed, (along with the law of supply and demand) it is the banksters themselves who are our authority for the proposition that an increase in supply automatically causes a decrease in price/value. In “The Great Gold Debate”; the infamous Jeffrey Christian pointed out that the banksters used to regularly spread rumors that central banks were about to “dump” some of their gold onto the market, because even the suggestion of an increase of supply would cause the price of gold to fall.
However, this massive currency-fraud which has propped-up the dollar to (at least) five times its actual value cannot survive the change-over from dollar to renminbi as the new “world currency”. Having just quintupled the supply of the dollar; we are in the process of seeing demand fall by a similarly enormous quantum.
Massive increase in supply + massive decrease in demand = worthless dollar.
The arithmetic is simple enough that it is probably within the capacity of even an economist. Furthermore, we are seeing a similar shift from West to East in terms of the world’s financial/monetary/economic institutions.
The (Western) World Bank is being replaced by the (China-led) AIIB. The (Western) “SWIFT” system for global, electronic commerce is being replaced by the (China-led) CIPS payment system. And as China becomes, more and more obviously, the global focal point for the world economy; it is China’s equity markets (not those of the U.S./Europe) which will predominate. All this reduces demand for the dollar still further.
Far from being “a safe haven”, the dollar is simply financial suicide, as this debauched/obsolete currency must collapse-to-zero in the near future, likely dragging the other, worthless Western currencies down with it. The U.S. dollar will soon meet the same fate as every other paper, “fiat currency” which has been created over the past, thousand years: oblivion.
Ironically, it is the creator of the first paper, fiat currency – China – which has also made it clear it plans to formally back the renminbi with gold. No one understands any invention better than its creator. All paper, fiat currencies are an inherent fraud, which is why none have ever managed to survive.
While the portrayal of the U.S. dollar as a safe haven is preposterous, attempting to characterize U.S. equity markets as “a safe haven”, as they sit at all-time bubble-highs is simply pathetic. We begin with the fact that by definition equities are a “speculative” investment – the literal opposite of a safe haven.
This would be true even if U.S. markets were presently at something resembling “normal” valuations. But with these markets at extreme, bubble-highs, they are nothing but a ticking time-bomb – about to go off. Just ask Warren Buffett.
Why is the 83-year-old Buffett sitting on top of a hoard of well in excess of 60 billion soon-to-be-worthless dollars (the largest hoard of currency he has ever amassed)? Because Buffett the Vampire-layer (confidant of the bankers) knows that these bubble-markets will implode down to something resembling rational levels before either his paper becomes worthless, or he goes to his final resting place.
We haven’t even gotten to “bail-ins”. This is the plan now codified across the Western world to indemnify Big Banks whenever they bankrupt themselves through their own greed and reckless leverage, by stealing whatever paper assets they command the lackey-politicians to sign over to them. This makes the previous “equation” even simpler. Paper = suicide.
This brings us to real safe havens: the safest-of-safe places for our wealth: gold and silver. For thousands of years; precious metals have been the one, true “safe haven” for our species. This is because for thousands of years they have perfectly preserved (i.e. protected) the wealth of their holders, while the Mighty Dollar has only managed to (temporarily) maintain a tiny fraction of its value – and for little more than a century.
Why have gold and silver been our best safe havens, virtually throughout recorded human history? Because they are both real assets and “good money” (rather than mere currency). As a matter of elementary logic; any hard asset will be a superior safe haven to mere paper instruments – which not only carry “counterparty risk”, but whose value is highly dependent upon the mere confidence of the “players” in these markets.
This is why the Corporate media blares its “don’t worry, be happy” drum-beat 24/7. This is why the U.S. government publishes several “confidence” statistics, and reports them on an equal basis with hard economic data. As with any “con” (i.e. confidence game); the fraud can only continue as long as the Chumps retain confidence in the system.
Gold and silver do not derive their value from the confidence of Chumps. This is because not only are they valuable assets due to their tremendous aesthetic appeal, and valuable assets because of their tremendous number of uses in industrial applications; they are our best (only?) “money”.
Indeed, it is because gold has been so useful as money that we have almost completely refused to use it industrially, hoarding virtually all of it as either money or jewelry. Even there, in agrarian societies (like most of India) the gold (and silver) jewelry is their money. Lacking access to banks; these people wear their savings around their throats or other body parts in the form of gold/silver jewelry.
In our 21st century economy, where any “barter system” is utterly impossible; good money is arguably as important and useful in any crisis scenario as food and water – because when your food/water runs out, you will (very probably) require good money to buy more. Such crisis scenarios are the entire reason why we need (genuine) safe havens, and why prudent individuals put a portion of their wealth into them, proportionate to the potential severity of the crisis.
Today, as prudent individuals attempt to “plan for a crisis”, the first thought that comes to mind is “which crisis?” The fascist government of the United States has been overthrowing regimes and fomenting wars at a much more-rapid rate than normal, for even this extremely belligerent nation. Our economies are all obviously/hopelessly insolvent. Meanwhile, most other asset-classes are also at “bubble” levels; ready to crash.
Western real estate markets are almost all at extreme, bubble levels – meaning literal “bubbles”, not the mindless use of the term which is regularly spewed from the lips of media drones. Not only are the prices of Western real estate propped up with insane amounts of debt (i.e. leverage); the equally-insane prices themselves are not remotely sustainable.
Long-term real estate prices can only be supported (as a simple matter of arithmetic) by the level of real incomes of the members of that society. Every time that real estate valuations soar high above income levels, those valuations must come crashing down. Empirically, every time that real estate valuations have soared high above income levels, those valuations have come crashing down. Real estate (at least Western real estate) is simply another ticking bomb.
It is for all of these reasons that sane individuals would be gravitating toward gold and silver, even if they didn’t have a multi-thousand year track record as our best “safe havens”. They beat any/all other asset classes even on the simple basis of lesser-of-evils.
Thanks to the marauding bankers, however (and their relentless price-suppression of gold and silver); we have a further, strong imperative for funneling all the wealth we wish to protect into gold and silver. While many other asset-classes are at/near bubble-highs; gold and silver have been suppressed to tiny fractions of their real value – even versus other classes of hard assets.
As the world transitions inexorably to a China-led economy, with a gold-backed reserve currency; we can expect gold and silver to be appropriately revalued. Indeed; in our ridiculously inflated world it would require a dramatic, upward revision of the price of gold to make “backing” even China’s currency mathematically possible.
Never before have we been more in need of a (genuine) safe haven for our wealth. Thanks to the current price-suppression; gold and silver have never been “safer”, meaning we have never before been able to transfer our wealth into gold and silver at such advantageous rates. Meanwhile, the financial bombs keep ticking…
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