Socio-Economics History Blog

Socio-Economics & History Commentary

John Rubino: Elite Terrified of 1930’s Depression or Weimar Hyperinflation

  • John Rubino: Elite Terrified of 1930’s Depression or Weimar Hyperinflation
    by Greg Hunter’s USAWatchdog.com 
    Financial writer John Rubino says everywhere you look, debt is exponentially mounting. Nothing demonstrates the “imminent bankruptcy” problem better than the financial obligations of New York City. Rubino says, “They just announced that they have unfunded liabilities for retiree healthcare, just retiree healthcare and not the rest of their pensions, of $100 billion. That’s for a city, not a state or a country, and if you add their unfunded liabilities for their pensions, which is another $50 billion or so, and their official debt, which is $50 billion or so, you get $200 billion that New York City is on the hook for that they have not put money away for. If a private sector company had finances like that, they would be insolvent, and their accountants would force them to say that.”You can tell the same story for cities, states and countries around the world swimming in unrepayable debt. So, what will be done when bond defaults and financial failures begin? Will Trump let it go like the failed debt of Puerto Rico or have massive bailouts? Rubino says, “It’s possible that Trump will teach that lesson to the system, but I think the numbers are so big now the risk of a 1930’s style depression, or a Weimar Germany hyperinflation, is so great these guys are going to be terrified of anything that seems to be destabilizing. The pressure on whoever is in charge of the central bank or federal government is going to be to try to nip crises in the bud before they can really get going when you don’t know what is going to happen. For instance, New York City goes bankrupt, and that pulls down Chicago, and then that pulls down California. What does that mean? Nobody knows, and nobody wants to find out.”


    Rubino contends massive bailouts will explode in the next economic downturn, and they will have grave consequences for interest rates and the U.S. dollar. Rubino says, “They would say, hey, here’s $5 trillion to bail out states and localities across the country. People will see that and will worry about what that means for the value of the dollar. So, they sell dollars, and not just here, but all around the world. The dollar starts to fall, and interest rates start to go up. If the dollar is tanking, who wants to lend money to the federal government that is going to be paid back in a depreciating currency? So, our interest rates go up. That causes our interest costs to go through the roof and forces the government to borrow even more. . . . At some point, the whole thing blows up. There is a number out there when all this will happen. . . . So, the question is what is that number, and when do we hit it? . . . . The concept of fiat currencies will be called into question when all this happens. The dollar might lead this down or some other fiat currency might lead it down. . . .At some point, they will realize all the fiat currencies are basically in the same boat. . . . We can’t know the timing of this, but we can know what will do well when this happens, and that is gold and silver.”

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November 15, 2018 Posted by | Economics | , , , , , , , , , , , , | 1 Comment

THE FUTURE OF GOLD: As Economic Patterns Shift. Q&A with Lynette Zang and Eric Griffin

  • ITM Trading Streamed live 5 hours ago
    Link to Slides and Sources: https://www.itmtrading.com/blog/futur…
    Question 1. Niko: With all the current stock market volatility, I’m wondering if money market accounts are any safer of a position?
    Question 2. Nola S: How are collectible coins identified? Are these coins collectible: the $20 St. Gaudens, $10 Indian, $10 Liberty, & $1 Peace?
    Question 3. Kathleen D: explain the Exchange Stabilization Fund (ESF), it’s role in our economy as well as in relation to the Fed?
    Question 4. Richard W: If gold ownership is made illegal, what good is gold ownership as we probably won’t be able to find buyers?
    Question 5. Jason H: Let’s say I have 1oz of gold today given a spot price of $1,330 USD and I buy 380 loafs of bread @ $3.50 USD. Tomorrow comes and the entire world dumps fiat and goes back to gold & silver (or perhaps 100% PM backed fiat). Would this not result in a huge demand in gold thus increasing its value (or purchasing power) from say 380 loafs to 450?

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November 14, 2018 Posted by | Economics | , , , , , , , , , | Leave a comment

China to Adopt Gold Standard? | Alasdair MacLeod

  • SilverDoctors Published on Nov 12, 2018
    The coming credit crisis will be the catalyst for China to adopt gold into their monetary system, says Alasdair MacLeod of Gold Money. The coming credit crisis will hurt China’s economy the worst, MacLeod says. He proposes that China should issue a perpetual bond. The coupon on that bond would be payable in Yuan or gold at the users choice. If this were to happen, it would undermine the Dollar and send gold higher. Why does MacLeod believe China is headed toward a gold standard? He gives many reasons including: China has been acquiring gold, is the largest gold miner in the world, doesn’t allow gold to leave, and has the biggest physical gold delivery market.

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November 14, 2018 Posted by | Economics | , , | Leave a comment

SWIFT’s Iran Ban Will ‘Expedite Global De-Dollarization’ – Max Keiser

  • SWIFT’s Iran Ban Will ‘Expedite Global De-Dollarization’ – Max Keiser
    by https://www.rt.com/
    The blacklisting of Iran from international financial messaging system SWIFT serves as a warning to Washington’s enemies, but will hasten the demise of the dollar, stockbroker-turned broadcaster Max Keiser told RT.

    SWIFT, a system that facilitates cross-border payments between 11,000 financial institutions in more than 200 countries worldwide cut several Iranian banks, including the country’s central bank, off from its services on Monday. The move came as a result of US pressure and was described by US Treasury Secretary Steven Mnuchin as “the right decision to protect the integrity of the international financial system.”

    Max Keiser told RT that in pushing a hard line on Iran, the US will only force other countries to come up with alternatives, and stockpile gold to lessen their dependence on the almighty US dollar.


    read more.

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November 13, 2018 Posted by | Economics, GeoPolitics | , , , , , | Leave a comment

‘Issue of Sovereignty’: Macron Wants EU to Be Less Dependent on Dollar

  • ‘Issue of Sovereignty’: Macron Wants EU to Be Less Dependent on Dollar
    by https://sputniknews.com/
    In an exclusive interview with CNN, French President Emmanuel Macron admitted that the European nations have so far failed to provide a viable alternative to the US dollar, and are excessively dependent on the American currency.

    French President Emmanuel Macron told CNN’s Fareed Zakaria that currently Europe didn’t have ‘a clear alternative’ to the dollar because “de-facto there is an international extraterritoriality of the dollar due to its strength”.

    “Until now, we fail to make the euro as strong as the dollar. We made a great job during the past years but it’s not yet sufficient,” he said, when asked whether the EU will come up with a response to the US withdrawal from the Iran nuclear deal in terms of currency.

    read more.

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November 13, 2018 Posted by | Economics, GeoPolitics | , , , , | Leave a comment

Italy Budget Crisis: Rome DISMISSES Brussels Ultimatum And Warns EU ‘Expect SAME Plans’

  • Italy Budget Crisis: Rome DISMISSES Brussels Ultimatum And Warns EU ‘Expect SAME Plans’
    by HARVEY GAVIN, https://www.express.co.uk/
    ITALY says it will defy an ultimatum by Brussels and refuse to back down over its controversial budget proposals as an Italian politician likened scare tactics used by the EU to ‘Project Fear’ in the Brexit referendum.

    European Union bosses have threatened to sanction the Mediterranean country unless it falls into line and follows the bloc’s fiscal rules in an unprecedented move which could see Rome slapped with a fine of £3billon (€3.4billion). But Italy’s populist government remains defiant and has rejected demands to submit a revised budget by Tuesday. Guglielmo Picchi, a politician in the right-wing League party, told the Sunday Times: “On Tuesday they will expect a letter from us – the letter from us will say it’s still the same budget.”

    The ruling coalition in Rome – made up of the League and populist 5-Star Movement – is planning on increasing borrowing to help fund its costly election promises, including a lowering of the retirement age and an increase in welfare.

    read more.

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November 13, 2018 Posted by | Economics, GeoPolitics | , , , , , | Leave a comment

The Fall Of The US Dollar: Is The Return To A Gold Standard Inevitable?

  • Cambridge House International Inc. Published on Nov 2, 2018
    Is the return to a gold standard inevitable? Grant Williams, Senior Advisor at Vulpes Investment Mgmt, breaks down the history of the gold standard and the impact it will have on the future of world currency. This is a must-watch if you are reviewing your current investment portfolio.

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November 12, 2018 Posted by | Economics, GeoPolitics | , , , , , , , | Leave a comment

Italy Signals It Won’t Budge on Budget Plans in Clash With EU

  • Italy Signals It Won’t Budge on Budget Plans in Clash With EU
    by , https://www.bloomberg.com/ , 9 Nov 2018
    * Deputy Premier Di Maio says government will stick to promises
    * Populists pressured by European Commission, internal tension

    Italy signaled it would not bow to pressure from the European Union to water down its budget for next year, with Deputy Prime Minister Luigi Di Maio dismissing the prospect of sanctions as unlikely.

    Speaking to the Foreign Press Association in Rome, Di Maio of the anti-establishment Five Star Movement said he was open to dialogue but made no hint of concessions. The populist government is preparing to reply to the European Commission by next Tuesday’s deadline.

    Two Points of View
    European Commission and Italy’s government don’t agree on budget forecasts .

    “We have made commitments and we will stick to these commitments to be a credible country,” said Di Maio, adding that a citizen’s income for the poor and a lower retirement age would not be delayed. After skepticism from Brussels, he said the government is confident about a 2.4 percent deficit target for next year because of a pickup in economic growth and cuts to wasteful spending.

    read more.

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November 10, 2018 Posted by | Economics, GeoPolitics | , , , , , | Leave a comment

Is Donald Trump Moving Us Toward A Gold Standard?

https://www.newsweek.com/trump-jackson-slave-native-american-568346

Trump has already honored Jackson by hanging his portrait in the Oval Office just days after moving into the White House. But Trump and those around him have invoked the example of the man who served as president between 1829 and 1837 since before he even moved into the house Jackson once called home. Source: Newsweek

  • “The Bank War was the name given to the campaign begun by President Andrew Jackson in 1833 to destroy the Second Bank of the United States.”
    – History Channel

  • Is Donald Trump Moving Us Toward A Gold Standard?
    by , http://jaytaylormedia.com/, 9 July 2018
    A few weeks back, an article by Hugo Salinas Price crossed my desk, discussing “Triffin’s Dilemma,” which I found of theoretical interest. But given time constraints I read it quickly and then put it on the back burner. But the concept of theoretical suddenly changed to extremely important when my friend David Jensen called me to suggest that there is a method to Donald Trump’s seemingly mad economic and geopolitical policies including tariffs and the reversal of the Iranian nuclear deal that Obama orchestrated. Moreover, David is convinced that Triffin’s Dilemma not only explains Trump’s political success and the reasons for his policies but that we may be nearing a massive tectonic shift in global markets as a result.

    Trump became President because he appealed to the forgotten middle class, most of who live in what elite snobs of both political parties refer to as “flyover country.” They happen to be mostly white and, whether Republican or Democrat, more conservative. Many of them used to vote Democrat but because Democrats have learned to rely on immigrants and a growing number of Marxist-indoctrinated college youths, they have largely forgotten about the interests of middle class white Midwesterners. That is a very large group of people hurt very badly by a massive loss of wealth-creating jobs in manufacturing and mining. The standard of living has plunged since the early to mid 1970s primarily for people in the Midwest. The question is, why?

    Triffin’s Dilemma provides the answer and David’s call made me aware of that. The article by Hugo is titled  Donald Trump’s “Madness,” which you can read here: http://www.plata.com.mx/enUS/More/353?idioma=2. Hugo explains Triffin’s Dilemma as follows: “If the dollar – such as it is – (or any currency) is going to be the basis of the world’s monetary system, and therefore required by all Central Banks (CBs) as Reserves, there is only one way that these CBs can obtain those Reserves: their countries are forced to undersell all US producers, in order to be able to sell more to the US, than they buy from the US. The difference between the dollars they get from sales, is more, than the dollars they spend to buy from the US. That difference – known as the US Trade Deficit – flows to the CBs of the world and swells their Reserves.”

    read more.

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November 10, 2018 Posted by | Economics | , , , , | 1 Comment

Is This Beginning Of The End Of The Central Bank Currency System

  • X22Report Published on Nov 9, 2018
    UK retail apocalypse deepens, US retail follows, the retail industry is imploding. UMich sentiment is declining, people are starting to realize that the economy is not what it seems. The Federal Reserve is on track to raise the rates come this Dec, in 2019 they will be raising multiple times. Saudi Arabia is now thinking about getting rid of OPEC. Is this beginning of the end of the petrodollar.

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November 10, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , | Leave a comment

Argentina Signs $8.7 Billion Swap Agreement With Beijing To Shore Up Sagging Peso

  • Argentina Signs $8.7 Billion Swap Agreement With Beijing To Shore Up Sagging Peso
    by Tyler Durden, https://www.zerohedge.com/
    Embattled Argentinian President Mauricio Macri has been scrambling to shore up his country’s struggling currency since the IMF’s executive board finally approved a record – and expanded – $57 billion bailout loan with the explicit condition that the country’s central bank refrain from using that money to support the Argentine peso.

    But as Argentina’s battered economy has continued to deteriorate, the peso’s value has eroded dramatically as the central banks pushed , cementing its status as one of the worst-performing currencies of 2018, as traders ignored a series of frantic rate hikes that brought the overnight interest rate in the country to a staggering 60% (which appears somewhat more appealing next to the country’s annualized inflation rate of 40%).

    read more.

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November 9, 2018 Posted by | Economics | , , , | Leave a comment

Dumping the Dollar: Iran & South Korea Agree Cross-Currency Trade

  • Why is South Korea agreeing to this? They are well aware of the consequences from America. Considering that South Korea is a staunch US ally (and vassal state), it is astonishing. Something major is up, not sure what is it. We will have to wait for events to unfold. I can only speculate: US hegemony, dollar hegemony is over, global currency reset, return to gold standard?
  • Dumping the Dollar: Iran & South Korea Agree Cross-Currency Trade
    by https://www.rt.com/
    South Korea and Iran have agreed to switch to national currencies in trade exchanges as the sides aim to strengthen relations despite the US sanctions on Tehran. The agreement is of great importance to both countries, Yonhap News Agency reported, explaining that the deal indicated Korea’s concerns about relations with Iran.

    The countries also agreed to make payments and settle their financial and banking accounts using the South Korean national currency, the won. That will allow South Korean and Iranian companies to continue their extensive exchanges in various fields.

    The volume of bilateral trade surpassed the $12-billion benchmark last year, according to Iran’s ambassador to Seoul Saeid Badamchi Shabestari, who told Press TV that the Iranian and Korean economies complement one another.

    The fact that Tehran-Seoul relations had been founded on “reality” would keep the countries determined to deepen the ties in the face of America’s “hostile and illegal unilateral actions,” the ambassador said.

    Earlier, South Korean Ambassador to Tehran Ryu Jeong-hyun said that despite many European companies leaving Iran under the pressure of US sanctions, South Korean firms understand the significance of the Iranian market and have chosen to stay.

    read more.

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November 9, 2018 Posted by | Economics | , , , , , | Leave a comment

France Leads EU Drive to DEFY Trump Sanctions on Iran in Bid to Boost Euro

Macron said he wanted to rule like a Roman god ‘Jupiter’, above the political fray.
Photograph by Nadav Kander for TIME
President Emmanuel Macron in the Élysée Palace on Nov. 7.

  • France Leads EU Drive to DEFY Trump Sanctions on Iran in Bid to Boost Euro
    by CARLY READ, https://www.express.co.uk/
    FRANCE will lead a drive by Brussels to defy US sanctions against Iran in a bid to boost the euro, it has been revealed.

    French Economy and Finance Minister Bruno Le Maire has vowed to drive the EU to flout Washington’s new wave of sanctions on the Middle East nation’s energy, banking and shipping sectors due to come into effect next week in an attempt to strengthen the euro.

    Mr La Maire argued the bloc had “economic sovereignty” from Donald Trump’s wrath because of the so-called Special Purpose Mechanism (SPV), a ruling aimed to keep trade flowing even if sanctions hit Tehran.

    The Finance Minister insisted the SPV was “the financial instrument of Europe’s independence”, adding it should “allow us to trade in any product, with any country, so long as it is in line with international law and Europe’s commitments”.

    read more.
http://www.express.co.uk/news/world/858987/Emmanuel-Macron-Paris-France-Sorbonne-EU-speech-Angela-Merkel

Click on image for article.

https://www.express.co.uk/news/world/968888/angela-merkel-emmanuel-macron-eu-united-states-of-europe

Click on image for article.

https://www.bloomberg.com/news/articles/2018-02-22/not-content-with-france-macron-has-a-plan-to-take-on-all-europe

Click on image for article.

http://www.breitbart.com/london/2017/12/18/merkelmacron-agree-eurozone-budget-finance-ministry-plans/

Click on image for article.

https://www.ft.com/content/e512bcb8-b3d7-11e7-a398-73d59db9e399?mhq5j=e5

Click on image for article.

https://www.armstrongeconomics.com/international-news/europes-current-economy/macrons-call-to-federalize-europe/

Click on image for article.

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November 9, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

World’s Largest Asset Manager Warns: The Dollar’s Days As Global Reserve Currency Are Numbered

  • World’s Largest Asset Manager Warns: The Dollar’s Days As Global Reserve Currency Are Numbered
    by Tyler Durden, https://www.zerohedge.com/
    Have BlackRock CEO Larry Fink and Russian President Vladimir Putin been comparing notes?

    In comments that sound eerily similar to a warning issued by Putin, who warned during a speech last monththat the US risked undermining the dollar’s reserve currency status with its sanctions regime, the CEO of the world’s largest asset-management firm said Tuesday during a panel discussion at the New Economic Forum in Singapore that the US dollar’s status as the world’s dominant currency wouldn’t last forever.

    And instead of citing external factors like China’s expanding economic clout and influence, or an insurgent Russia, Fink pointed to the widening US budget deficit as the biggest risk to the dollar’s status as the global hegemon. And while it might not happen tomorrow, or next year, over time, as US interest rates rise and the federal government strains under its tremendous debt burden, the creditors who were once eager to buy up Treasury bonds will gradually disappear.

    read more.

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November 9, 2018 Posted by | Economics | , , , , | Leave a comment

LIVING THROUGH A COMPLETE COLLAPSE: Boots on the Ground with Fernando “FerFAL” Aguirre

  • ITM Trading Published on Nov 8, 2018
    In this video Lynette Zang Interviews Fernando “FerFAL” Aguirre; a father, husband and survivalist that has lived through the Argentine socio-economic collapse of 2001, and the consequences such collapse had in the years that followed. He’s the author of numerous articles found on line and is recognized among the survival and preparedness community for his personal experience and no-nonsense approach to survivalism. He’s also the publisher and owner of “Surviving in Argentina”, a blog he keep up with updated articles, posts as well as reports of the situation in Argentina.

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November 9, 2018 Posted by | Economics | , , , , , , , , , | Leave a comment