Socio-Economics History Blog

Socio-Economics & History Commentary

The Day Of Reckoning Is Coming & This Time There Is No Solution: Rick Rule

February 25, 2017 Posted by | Economics | , , , , , , , , , , , , , , , , , , , | Leave a comment

Jim Willie: The Gold Standard Is Emerging!

Remember the Golden Rule: "He who has the gold Rules!"

Remember the Golden Rule: “He who has the gold Rules!”

  • Jim Willie: The Gold Standard Is Emerging!
    by http://www.silverdoctors.com/
    Summary
    The Chinese Are Putting in Place a Link Between Oil and Gold.   The Petro-Dollar has almost completely vanished. The Gold Standard is Emerging…

    By Hat Trick Letter Editor Jim Willie, GoldenJackass:
    The Gold Trade Note is gradually coming into view, its form within structured contracts is taking shape as components. the Petro-Dollar has almost completely vanished. The Petro-Yuan is essentially here in its infancy, in rudimentary form. the leap to the Gold Trade Note will be easy, once the pieces are aligned and in place. This new note for usage in secure trade settlement is in the inception process. It will be structured within existing trading vehicles and platforms.

    The Russians and Chinese appear to be forming the basis for the payment vehicle within the oil trade. Consider it as a formal reflection of the Iran-India gold for oil trade.

    Bilateral Oil for RMB Sale + Shanghai Gold Exchange = Gold Trade Note

    This triangle is precisely what China and Russia are doing now.
    Russian oil & gas is being sold for Chinese Yuan, and then Yuan is traded for Gold at the Shanghai Gold Exchange. The trade is not complex at all. Oil for RMB for Gold, creating a transaction payment in gold terms. The part unclear is posted margin to confirm and seal the transaction. The immediate implication is that the Chinese RMB will have a quasi-gold link. The original model used might have been the Iranian oil sales to India, with payment completed using Turkish gold. Such gold for oil trade appears to have been commonly executed from 2006 to 2010, and likely beyond that date.


    The Jackass has been expecting that the Gold Trade Note would be structured in a clever way, using swap contracts in major global commerce. It might be taking form in the triangle cited as the working template. Oil is the biggest commercial trade item. Soon comes the RMB-based contract for crude oil, traded in Shanghai. It will surely cause big waves, a major disruptive event.

    NEW SCHEISS DOLLAR & GOLD TRADE STANDARD
    In time, expect an eventual refusal by Eastern producing nations to accept USTreasury Bills in payment for trade. The United States Govt cannot continue on numerous glaring fronts of gross negligence and major violations. These violations have prompted the BRICS & Alliance nations to hasten their development of diverse non-USD platforms toward the goal of displacing the USDollar while at the same time to take steps toward the return of the Gold Standard.


    The New Scheiss Dollar will arrive in order to assure continued import supply to the USEconomy. It will be given a 30% devaluation out of the gate, then many more devaluations of similar variety. The New Dollar will fail all foreign and Eastern scrutiny. The USGovt will be forced to react to USTBill rejection at the ports.

    The US must accommodate with the New Scheiss Dollar in order to assure import supply, and to alleviate the many stalemates to come. The United States finds itself on the slippery slope that leads to the Third World, a Jackass forecast that has been presented since Lehman fell (better described as killed by JPM and GSax). The only apparent alternative is for the United States Govt to lease a large amount of gold bullion (like 10,000 tons) from China in order to properly launch a gold-backed currency. Doing so would open the gates for a generation of commercial colonization, but actual progress in returning capitalism to the United States.


    Any new currency, even with gold backing, would be subjected to a series of devaluations due to the enormous trade deficit. The result would be heavy powerful painful price inflation from the import front. The effect would be to reverse a generation of exported inflation by the United States. The entire USEconomy would go into a downward spiral with higher prices, supply shortages, and social disorder.

    However, the rising prices would come from the currency crisis, and not so much from the hyper monetary inflation. That flood of $trillions has been effectively firewalled off. During the crisis that comes, the gold price will find its true proper value between $5000 and $10,000 per ounce.

    Then later, it goes higher, as it seeks equilibrium in a new world where gold serves as the global arbiter in trade and banking and currencies.

    read more.

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February 18, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , | Leave a comment

2017: The Year of TRUTH BOMBS — Bill Holter

February 7, 2017 Posted by | Economics | , , , , , , , , , , , , , , , , , , , | Leave a comment

Jim Rickards: The Fed’s “Nuclear Option”: $4,900 Gold, $100 Silver, $200 Oil

Remember the Golden Rule: "He who has the gold Rules!"

Remember the Golden Rule: “He who has the gold Rules!”

  • The Fed’s “Nuclear Option”: $4,900 Gold, $100 Silver, $200 Oil
    by Chris Campbell, Jan 17, 2017, https://lfb.org/
    “The final weapon in the Fed’s arsenal,” Jim Rickards, author of The Road to Ruin: The Global Elites’ Secret Plan For the Next Financial Crisis, wrote this week, “is the financial equivalent of nuclear war.”

    The Fed’s “nuclear option,” Rickards warns, is… wait for it… gold.

    We bring this up today because this nuclear option could have a yuge (sometimes spelled “yooge”) impact on the price of not only the midas metal (see below), but of silver ($100) and oil ($200), too. And we want you to have plenty of time to ready yourself.
    ….
    7 Federal Reserve Tools and Why They’re All Flawed
    Jim Rickards
    In recent decades, the Fed has engaged in a series of policy interventions and market manipulations that have paradoxically left it more powerful even as those interventions left a trail of crashes, collapses and calamities.

    The following is a survey of seven Federal Reserve tools in the Fed toolkit to stimulate the economy if recession or deflation gains the upper hand and why their toolkit is flawed.

    Helicopter Money
    The image of the Fed printing paper money, and dumping it from helicopters to consumers waiting below who scoop it up and start spending is a popular, but not very informative way to describe helicopter money. In reality, helicopter money is the coordination of fiscal policy and monetary policy in a way designed to provide stimulus to a weak economy and to fight deflation.

    The Nuclear Option — Gold
    The final weapon in the Fed’s arsenal is the financial equivalent of nuclear war. The Fed could instantly create inflation and achieve nominal if not real growth by massively devaluing the dollar when measured as a unit of gold.

    This was last done in 1933–34 and was highly successful. Stocks rallied and commodity prices boomed in the middle of the Great Depression (1929–1940). This boom was not sustained because the Fed and Treasury prematurely tightened monetary policy and fiscal policy in 1937, which put the U.S. economy back into a severe technical recession from 1937–1938.

    The Fed could use this nuclear option by coordinating with the Treasury to make a two-way market in gold using printed money. This would work exactly like quantitative easing, except the Fed would buy or sell gold instead of Treasury bonds.

    The Fed would set an arbitrarily high fixed price for gold such as $5,000 per ounce. The Fed would make that price stick by offering to buy gold from any seller at $4,900 per ounce and selling gold to the market at $5,100 per ounce. This amounts to a 4% band or spread around the target price, a classic pegging technique.

    Gold could be removed from or added to the U.S. hoard at West Point, NY, and money would be created by or destroyed by the Fed in order to make the target price stick.

    If, for example, the price of gold was $1,300 per ounce before the operation, the effect would be to devalue the dollar from 1/1,300th of an ounce of gold to 1/5000th of an ounce of gold, a 75% devaluation of the dollar. This devaluation would not take place in isolation.

    A 75% dollar devaluation in gold would signal devaluation in all other goods and services and result in $100 per ounce silver, $200 per barrel oil, etc.

    This is obviously an extreme measure and would only be used in the face of strong persistent deflation. Yet, the fact that that technique exists and has been used in the past is one reason to conclude that deflation will not in fact persist beyond certain limits because the Fed and Treasury have the ability to stop it as they did in 1933.

    read more.

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January 19, 2017 Posted by | Economics, History | , , , , , , , , , | 1 Comment

Trump Takes The Final Currency War Thermonuclear, Puts Gold Cartel On Notice!

  • Trump Takes The Final Currency War Thermonuclear, Puts Gold Cartel On Notice!
    by , https://www.milesfranklin.com/
    It’s the rare day I wake up to see news so powerfully Precious Metal bullish – regarding its short and long-term implications – I can barely contain myself.  The last such event was the BrExit – which set into motion the inevitable collapse of the European Union and Euro currency as we know it.  Which, seven months later, appears more certain than ever – and perhaps, if this year’s Dutch, French, German, Italian, and Catalonian elections and legislative actions trend in the direction I anticipate, imminent.  Which I assure you, last night’s news will only hasten further.


    Moreover, it’s equally rare to see so many of my predictions borne out in real time; let alone, as today’s events were catalyzed by none other than Donald Trump himself, the most anti-establishment politician ever elected to a major Western political office.  To that end, I have written more of Donald Trump than any single person in my five-and-a-half years at Miles Franklin – who last night, confirmed why back in September I predicted a Trump victory would be the political, economic, and monetary equivalent of a “BrExit times ten.”  To the point that, at one of his rallies mere weeks before the election, he actually utilized that very term.

    In fact, in the past week alone, I vehemently espoused my views of why his Presidency, as initially opined in “BrExit times ten,” would be the best imaginable scenario for Precious Metal investors.   First, I taped the “Death of Trump-Flation” Audioblog on Wednesday – discussing my belief that few of his campaign promises were politically and economically viable; and fewer still, a net positive for America in the first place.  Which in reality, was a “sequel” of the “turning on Trump” Audioblog I taped in November, mere days after the election.  When, in the afterglow of having successfully avoided the election of the Wicked Witch of the West(ern Hemisphere) as President, I focused on the economic reality of what a Trump Presidency actually meant.

    Thus, when Trump “shocked the world” last night by claiming the dollar is “too strong”; and to boot, slamming the Republicans’ “border adjustment tax” proposal, in lieu of the hard-coated import tariffs he favors, he for all intents and purposes took the aforementioned “final currency war” thermonuclear; in the process, putting the gold Cartel on notice that his policies will unquestionably yield a dramatic surge in physical Precious Metal demand – particularly, here in America, where even the most die-hard, Keynesian-brainwashed investors will be forced to realize the dollar’s purchasing power is about  to be significantly devalued.  Not that it hasn’t already, of course.  However, in the past, such inflation occurred in a more “frog in a boiling pot” fashion, as markets were manipulated to deflect attention from the Fed’s dollar-destroying policies, whilst the “strong dollar policy” and other anti-gold propaganda was relentlessly spewed by the cast of Atlas Shrugged cartoon characters running the government, Central banks, and major financial institutions to keep investors away from the “barbarous relic” that is gold.

    Well, care of the “loose cannon” himself, the gold Cartel – and the entire world political, financial, and monetary order – has been “put on notice” that the U.S. no longer intends to even pretend it has a “strong dollar policy”; and to the contrary, may well devolve into the same, overt currency depreciation policies made famous by the Japanese; Europeans; Chinese; and heck, every Central bank.  This, at a time when the global “war on cash” is exploding; and the inexorable Bitcoin emergence is making a clear statement that the world’s populace no longer believes “money” is what it once was.  In other words, as I wrote last week, the death throes of “money” are becoming eminently visible – making it more and more likely that the inevitable “run” from worthless fiat; and into “priceless” Precious Metals”; is rapidly approaching – like a runaway train, careening down an icy hill with no breaks.

    read more.
9 Jan 1988 cover, The Economist: Get Ready for a World Currency by 2018! The Rise of the Phoenix world currency from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. "Phoenix" is of course an occult metaphor. Out of the destruction, the ashes of the old world order, the Luciferian New World Order will rise like a Phoenix!

9 Jan 1988 cover, The Economist: Get Ready for a World Currency by 2018! The Rise of the Phoenix world currency from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. “Phoenix” is of course an occult metaphor. Out of the destruction, the ashes of the old world order, the Luciferian New World Order will rise like a Phoenix!

http://www.newdawnmagazine.com/Article/A_Global_Central_Bank_Global_Currency_World_Government.html

Click on image for article.

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January 18, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , | Leave a comment

Rick Rule: US Will Devalue Debt and Devalue Dollar. Banks Not Going Broke, They Are Broke!

  • Rick Rule: US Will Devalue Debt and Devalue Dollar. Banks Not Going Broke, They Are Broke!
    by Greg Hunter’s USAWatchdog.com
    Rick Rule is an expert on investing in all sorts of natural resources, and that includes gold and silver. He thinks it won’t take a “catastrophic event” to move prices higher in precious metals.  Rule explains, “You remember the decade of the 1970’s?  The shocks to the financial system were severe but survivable.  The gold price went from $35 per ounce to $850 per ounce.. . . As you can see, I am not a young guy.  I was a finance major, and the way I learned accounting, it’s not like the banks are going to go broke, the banks are broke. . . . It isn’t a question of ongoing bank solvency.  It’s a question of real bank solvency and how long people will believe in the system. . . . If the major players had to face a liquidity squeeze, even the level of magnitude they faced in 2008, I suspect the fiscal tools available are constrained enough now that they would be unsuccessful in containing a broad liquidity base contagion.”


    So, we would see bankruptcies and failures, and the Fed would have to let things go. Rule contends, “I don’t think they would have any other choice but to let them go.  My suspicion is we are going to skate through this without a catastrophic situation.  I could be right and I could be wrong, but I think in terms of the gold price, it doesn’t matter.  If the system is tested, tested and not wrecked, it will be extraordinary for the gold price.  What people fail to recognize is the simple arithmetic that you and I owe each other, and other countries, $20 trillion.  That’s $20 trillion in liabilities.  That’s 20 with twelve zeros.  People don’t focus on it because it’s almost an incomprehensible number.  Beyond that, we owe each other in the context of promises in excess of $100 trillion.  That number doesn’t come from a cranky old guy at Sprott.  It comes from the Congressional Budget Office.  How on earth are we going to resolve $120 trillion on balance sheet and off balance sheet liabilities before we consider state and local debt and underfunded pensions?  My suspicion is we get out of this in one of two kinds of defaults.  A formal default where . . . they say to 64 year old Rick Rule that we made you promises on Social Security, Medicare and Medicaid, but we lied.  We say to holders of U.S. debt where we gave a full faith and credit promise that we lied.  Those are official defaults.  That requires telling the truth, and I think that is unlikely.  I think we will have a series of unofficial defaults where we devalue the net present value of the obligations, which is a different way of saying we devalue the . . . currency, gradually like we did in the 1970’s.  I think that will have the same impact on gold and silver prices.”

    On the best thing President-elect Trump can do for America, Rule contends, “If Mr. Trump can roll back restrictive regulation in the United States, we are our own greatest enemy. If he can make the United States great again in the sense he keeps us from competing with ourselves, then we will see a spectacular economic boom in this country.”

end

January 12, 2017 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

Our Standard Of Living Is Coming To An End, Expect A 30-50% Drop: Bill Holter

January 3, 2017 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Yuan Dumps, Bitcoin Jumps As China Researchers Suggest “One-Off Devaluation” & Capital Controls

bitcoin-usdcny-20170101

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January 3, 2017 Posted by | Economics | , , | Leave a comment

2017 Predictions on Trump, Gold, Silver, Housing, Stocks, Bonds & Antarctica: Clif High

  • 2017 Predictions on Trump, Gold, Silver, Housing, Stocks, Bonds & Antarctica: Clif High 
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)
    Internet data mining expert Clif High says forget about the rumors and predictions of Donald Trump being blocked from taking office. High says Trump will be sworn in as the 45th President and explains, “I don’t have any data that says, hard stop, Trump is assassinated.  I don’t have that . . . . I am willing to back my data with real money, an ounce of silver, and I have an ounce of silver, and I would be willing to bet the inauguration part goes through smoothly given the emotional data sets we have now.”

    High, who calls what he does “Predictive Linguistics,” mines the internet and collects billions of data points to produce forecasts of the future.  On the financial markets, High simply says, “We’re screwed. . . . The equity markets in our data sets are highly manipulated.  So, if you ask will there be a crash?  I say there already is a crash.  Everybody that is not part of the financial system at the top end is currently living in a depression, and the media does not acknowledge this.”

    On the U.S. dollar and its purchasing power, High predicts, “The purchasing power is going to be eroded away fairly quickly. I suspect the erosion (of the U.S. dollar) is going to start in March or so. . . . The turning point for the Trump euphoria will hit at the end of February and carry on through March and April.  There will probably be people that will define this as a crash. . . . In our data sets, around March and April, the erosion of the dollar continues . . . The Fed, in a laggardly way, starts to chase interest rates. . . . We may jump to 9% or 10% interest rates as quickly as March or April.”

    On Real Estate prices, High’s data tells him the entire market will eventually “fall by 90%.” High explains, “The language is about the high end crashing first, and then, it meets the middle tier, and then they crash to meet the lower tier.  So, it’s not going to be the high end coming down and then stabilizing.  We are seeing a generalized property price crash that is really just going to coincide with the inability of the banks to circulate enough money and create enough debt to blow the balloon up again.  Real estate will drop for what I am calling a credit freeze for lack of a better word.”

    On Gold and Silver and Bitcoin, High says they will start moving up at the beginning of the New Year, and Obama will see the beginnings of a market crash before he leaves office. High contends, “Our data sets show that there is a lot of upward pressure on Gold and Silver and Bitcoin as the currencies go into a crisis mode. That basically is already happening.”

    High’s data is pointing to Silver and Gold prices starting to takeoff in early 2017. High says data is showing a possible “$600 per ounce price for Silver” at some point.  High says before that happens, he sees “$125 per ounce” price for Silver on up to “$345 per ounce.”  High’s data also repeatedly says the “gold price per ounce will eventually be equal to the Dow.”

    read more.

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January 2, 2017 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , | 1 Comment

With China Facing Currency, Liquidity Crises, Ex-PBOC Official Urges Use Of “Nuclear Option”

china_fx_pressure_in_jan2017

  • With China Facing Currency, Liquidity Crises, Ex-PBOC Official Urges Use Of “Nuclear Option” 
    by Tyler Durden, http://www.zerohedge.com
    With the PBOC fighting tooth and nail to slow outbound capital flight, which according to Goldman has reached $1.1 trillion since August 2015, and which these days mostly means keeping the Yuan from depreciating to new all time lows below 7 Yuan to the Dollar, the Chinese central bank may have its work cut out for it in the immediate future. The reason is that, as Bloomberg reminds us, the first day of 2017 is when an annual $50,000 quota to convert the yuan into foreign exchange resets, stoking concern there will be a rush to sell the local currency.

    With tax payments and a regulatory assessment also tightening liquidity in the money market toward year-end, manifesting itself in soaring unsecured funding rates such as the overnight repo hitting 33% as noted yesterday, paralyzing both the overnight…
    ….
    Ultimately, trying to keep a lid on the Yuan is a game China will lose, and some are already preemptively admitting defeat. Among them is Yu Yongding, a former academic member of the PBOC’s monetary policy committee, who overnight urged his former PBOC colleagues to engage the “nuclear option” – a sharp, one off devaluation similar to what China did in August of 2015. 

    In emailed comments to Bloomberg, Yongding said that China has a window from now to President-elect Donald Trump’s inauguration to halt FX intervention and let yuan depreciate to its equilibrium level.

    Will the PBOC stun everyone and unveil a surprise devaluation in the next three weeks? We don’t know, but according to bitcoin, which has soared by 20% in just the past week, someone does appear to “know” something, and if they are right, a devaluation is precisely what the Chinese central bank has in store.

    read more.

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December 29, 2016 Posted by | Economics | , , , | Leave a comment

Jim Willie on The American Freedom Radio – The Ochelli Effect

December 27, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Jim Willie on The American Freedom Radio – The Ochelli Effect

Jim Willie: 2017 Economic Outlook

http://www.amazon.com/The-Manufacturing-President-Insertion-Barack/dp/1478260645

Click on image to goto Amazon.

  • Published on Dec 26, 2016
    WWW.TRUNEWS.COM

    12/26/16: Jim Willie, 2017 Economic Outlook
    Will the legacy of Barack Hussein Obama be a world left in chaos? Today on TRUNEWS, Pastor Rick Wiles interviews economist Jim Willie regarding what his sources have shared about the economic outlook of 2017. Pastor Rick will also hear Jim Willie’s opinions on the real background of the Obama family, the derivatives disaster unfolding on Western banks, and the developments toward a global cashless society. Source:

    https://www.spreaker.com/user/trunews…
http://www.infowars.com/bombshell-barack-obama-conclusively-outed-as-cia-creation/

Click on image for article.

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December 27, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Jim Willie: 2017 Economic Outlook

Jim Rickards: The Great Currency Shock

December 13, 2016 Posted by | Economics | , , , , , , , , , , , , , , , , , , | Comments Off on Jim Rickards: The Great Currency Shock

Jim Willie: FedRes to Sabotage Trump Administration?

December 9, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , | Comments Off on Jim Willie: FedRes to Sabotage Trump Administration?

We Need A Reset & A Debt Jubilee, The Economic Outcome Will Be Devasting: Jeff Nielson

November 24, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on We Need A Reset & A Debt Jubilee, The Economic Outcome Will Be Devasting: Jeff Nielson