banking
by
Adam Taggart
by
Adam Taggart
by
Adam Taggart
In this week's Off the Cuff podcast, Chris and John Rubino discuss:
- Senseless Markets
- Today, they only serve as a "liquidity gage"
- Negative Data Everywhere
- Economic growth is moribund despite the historic stimulus
- Setting The Market Free
- 100% in our best interest, but will be fought the entire way
- Eventually Fundamentals Will Win Out
- You can bend the laws of nature for a time, but you can't break free of them
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
Off the Cuff: Eventually Fundamentals Win Out
PREVIEW by Adam TaggartIn this week's Off the Cuff podcast, Chris and John Rubino discuss:
- Senseless Markets
- Today, they only serve as a "liquidity gage"
- Negative Data Everywhere
- Economic growth is moribund despite the historic stimulus
- Setting The Market Free
- 100% in our best interest, but will be fought the entire way
- Eventually Fundamentals Will Win Out
- You can bend the laws of nature for a time, but you can't break free of them
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
by
JHK
by
Chris Martenson
Executive Summary
- The current gold slam has *nothing* to do with the fundamentals for precious metals, which are very favorable right now
- How bad would deflation be?
- Evidence that deflation is arriving
- Why our current monetary system has become so compromised by the banks
- How to best protect your wealth from both deflation and the banks
If you have not yet read Part I: This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks, available free to all readers, please click here to read it first.
About Those Wealth Transfers
The biggest news of the recent past is the flow of gold from West to East.
(Source)
With China importing 835 tonnes of gold in 2012 – that we know about (and they may well be doing more under the table for official purposes) – and also standing as the number one producer of gold, with ~360 tonnes of domestic production, none of which is exported, China is consuming at least 44% of total yearly world gold production.
Connect that with India importing between 200 and 300 tons per quarter (2011 imports were 967 tonnes, and 2012 was 864 tonnes), and this represents another 33% of total world mine output. Add in Russia buying more official gold, and you suddenly find that a commanding proportion of the newly mined gold in the world is headed East, where it used to stay largely in the West.
To be clear, I view gold as money and therefore wealth itself. Everything else that can be manufactured out of thin air is merely a claim on wealth. In these terms, the West is slowly but steadily bleeding control of wealth to the East, something I thought our leaders were both aware of and focused on.
Knowing the lower prices will only exacerbate this West-to-East flow, I therefore thought that the bullion banks and central banks would not have dared push that dynamic any further. But apparently – no, obviously – I was wrong, which pains me on several levels.
Add to this the various things going on in the world today, and I honestly thought we were in the most gold-favorable landscape of my life.
Consider:
- Negative real interest rates (powerfully gold- and commodity-friendly throughout history)
- North Korea threatening nuclear and conventional war
- Open confiscation of wealth in Europe from bank accounts
- Japan doubling their monetary base in a brazenly desperate bid to stoke inflation by attacking Japanese trust in their own currency
- Extremely unfavorable bond yields up and down the yield ladder
- Continued European stress and discord with the possibility of a Eurozone disintegration
Taken together, this level of system, sovereign, and institutional uncertainty is about as gold-friendly a situation one could concoct…
Protecting Your Wealth from Deflation
PREVIEW by Chris MartensonExecutive Summary
- The current gold slam has *nothing* to do with the fundamentals for precious metals, which are very favorable right now
- How bad would deflation be?
- Evidence that deflation is arriving
- Why our current monetary system has become so compromised by the banks
- How to best protect your wealth from both deflation and the banks
If you have not yet read Part I: This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks, available free to all readers, please click here to read it first.
About Those Wealth Transfers
The biggest news of the recent past is the flow of gold from West to East.
(Source)
With China importing 835 tonnes of gold in 2012 – that we know about (and they may well be doing more under the table for official purposes) – and also standing as the number one producer of gold, with ~360 tonnes of domestic production, none of which is exported, China is consuming at least 44% of total yearly world gold production.
Connect that with India importing between 200 and 300 tons per quarter (2011 imports were 967 tonnes, and 2012 was 864 tonnes), and this represents another 33% of total world mine output. Add in Russia buying more official gold, and you suddenly find that a commanding proportion of the newly mined gold in the world is headed East, where it used to stay largely in the West.
To be clear, I view gold as money and therefore wealth itself. Everything else that can be manufactured out of thin air is merely a claim on wealth. In these terms, the West is slowly but steadily bleeding control of wealth to the East, something I thought our leaders were both aware of and focused on.
Knowing the lower prices will only exacerbate this West-to-East flow, I therefore thought that the bullion banks and central banks would not have dared push that dynamic any further. But apparently – no, obviously – I was wrong, which pains me on several levels.
Add to this the various things going on in the world today, and I honestly thought we were in the most gold-favorable landscape of my life.
Consider:
- Negative real interest rates (powerfully gold- and commodity-friendly throughout history)
- North Korea threatening nuclear and conventional war
- Open confiscation of wealth in Europe from bank accounts
- Japan doubling their monetary base in a brazenly desperate bid to stoke inflation by attacking Japanese trust in their own currency
- Extremely unfavorable bond yields up and down the yield ladder
- Continued European stress and discord with the possibility of a Eurozone disintegration
Taken together, this level of system, sovereign, and institutional uncertainty is about as gold-friendly a situation one could concoct…
by
Adam Taggart
It’s characteristic of the time that we’re living in that there simply is no sense of consequence. And that’s exactly what you get when you have a Federal Reserve that’s out of control and a public that is filled with technological narcissistic visions of Santa Claus delivering rescue remedies on demand. And so there’s no general sense that when you do things, bad things can happen.
James Howard Kunstler is concerned. Sure, he still has the same issues with the West's highly energy-consuming suburban lifestyle that he famously brought to light in his books, The Long Emergency, the World Made by Hand series, and Too Much Magic. But beyond our decaying fundamentals, he's distressed by society's unwillingness to be honest with itself about the issue's it's facing.
James Howard Kunstler: The Dangers of the Age of Delusion
by Adam TaggartIt’s characteristic of the time that we’re living in that there simply is no sense of consequence. And that’s exactly what you get when you have a Federal Reserve that’s out of control and a public that is filled with technological narcissistic visions of Santa Claus delivering rescue remedies on demand. And so there’s no general sense that when you do things, bad things can happen.
James Howard Kunstler is concerned. Sure, he still has the same issues with the West's highly energy-consuming suburban lifestyle that he famously brought to light in his books, The Long Emergency, the World Made by Hand series, and Too Much Magic. But beyond our decaying fundamentals, he's distressed by society's unwillingness to be honest with itself about the issue's it's facing.
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