Socio-Economics History Blog

Socio-Economics & History Commentary

Ron Paul: ‘We Are On The Verge Of Something Like What Happened In ’89 When The Soviet System Just Collapsed’

  • Ron Paul: ‘We Are On The Verge Of Something Like What Happened In ’89 When The Soviet System Just Collapsed’
    by The godfather of the Tea Party movement and perhaps the most prominent right-leaning libertarian in America, Ron Paul, believes the economic boom the United States experienced under President Trump could be a “bit of an illusion.” Mr. Paul sees inequality, inflation, and debt as real threats that could potentially cause a turmoil.

    In a recent interview with the Washington Examiner, Paul said, “We’re on the verge of something like what happened in ’89 when the Soviet system just collapsed. I’m just hoping our system comes apart as gracefully as the Soviet system. We have ownership of these countries, but it’s not quite like the Soviets did. I think our stature in the world and our empire will end, and that’s when, hopefully, the doors will be open.”

    The crumbling of America’s “overseas empire,” as Mr. Paul calls it, could be a chance for the libertarian movement to captivate the country’s imagination by 2020. The fact that the system is coming apart could be a big opening for the libertarians, Paul claims. However, it is not just Trump administration’s foreign policy that could play a part in this. Paul considers the entire U.S. economy to be a bubble and an illusion built on governmental, corporate, and personal debt.

    The former politician and host of the popular Ron Paul Liberty Report podcast has been a vocal critic of the NSA’s surveillance program, the USA PATRIOT Act, the War on Drugs, and the government’s fiscal policies as a whole. Interestingly, the topic of one of Mr. Paul’s recent podcasts was bitcoin.

    “The government, for its own reasons, monopolized the creation of money. Money originated in the marketplace. Let people sort it out,” he says.

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December 30, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , | Leave a comment

Part 4 – The Transition to a New Financial System Has Begun – 2008 Was Just a Warning

  • ITM Trading Streamed live 7 hours ago
    Slides and Links:…
    The explosion in the speculative derivative market in 2008 killed the fiat money system and central banks know it. Governments and central bankers know that when the next financial crisis becomes obvious to the public, all confidence in the current system and those that the run it, will be lost. Therefore a “trustless” system is required.

    In 2009 Bitcoin was introduced as a decentralized alternative to fiat money. Promoted as being “outside” the current system and as good as gold, many that promoted physical gold and silver (the public enemy of central banks and governments) began to promote crypto currencies.

    In 2017 Bitcoin rose over 2,200% and Wall Street began to legitimize crypto currencies and create a new market. Adoption of the new money standard is underway. But the biggest risk are the $1.7 Quadrillion derivative bets, many of which are legacy derivatives. There is no market for these bets.

    If blockchain technology is truly transparent and tamper proof, how can shifting garbage from one financial system into the new system help? To fully embrace a new financial system, the old one MUST reset. That’s why governments, central banks and the 1% have been accumulating gold. Their preference for you is cyber, they can see and control that. But for themselves? Physical gold, the proven flight to safety asset.

    Previous Parts
    Part 1:…
    Part 2:…
    Part 3:…


December 29, 2017 Posted by | Economics | , , , , , , , , , , , , , , , , , | Leave a comment

The Central Banks Position Themselves To Transition The World Into Their New System

  • X22Report Published on Dec 27, 2017
    Consumer confidence declines while the spread between current future expectations is the widest in history. MasterCard reported that the retail season is off to a great start and it beat all records. But looking at the data it barely is above 2016 and if you go back in time it is well below the previous years. People using debt is not a good indicator on how the retail industry is really doing. Most of the products will be returned and the debt for most retailers is coming due in 2018.The Government report shows the market is overvalued. The central banks begin to position themselves to transition the world into their cryptocoin.


December 28, 2017 Posted by | Economics | , , , , , , , , , , | Leave a comment

The Petro-Yuan Bombshell and Its Relation to the New US Security Doctrine

  • The Petro-Yuan Bombshell and Its Relation to the New US Security Doctrine
    by Pepe Escobar,
    “Russia and China … have concluded that pumping the US military budget by buying US bonds … is an unsustainable proposition …”

    The new 55-page “America First” National Security Strategy (NSS), drafted over the course of 2017, defines Russia and China as “revisionist” powers, “rivals,” and for all practical purposes strategic competitors of the United States.

    The NSS stops short of defining Russia and China as enemies, allowing for an “attempt to build a great partnership with those and other countries.” Still, Beijing qualified it as “reckless” and “irrational.” The Kremlin noted its “imperialist character” and “disregard for a multipolar world.” Iran, predictably, is described by the NSS as “the world’s most significant state sponsor of terrorism.”

    Russia, China and Iran happen to be the three key movers and shakers in the ongoing geopolitical and geo-economic process of Eurasia integration.

    The NSS can certainly be regarded as a response to what happened at the BRICS summit in Xiamen last September. Then, Russian President Vladimir Putin insisted on “the BRIC countries’ concerns over the unfairness of the global financial and economic architecture which does not give due regard to the growing weight of the emerging economies,” and stressed the need to “overcome the excessive domination of a limited number of reserve currencies.”

    That was a clear reference to the US dollar, which accounts for nearly two-thirds of total reserve currency around the world and remains the benchmark determining the price of energy and strategic raw materials.

    And that brings us to the unnamed secret at the heart of the NSS; the Russia-China “threat” to the US dollar.   

    The CIPS/SWIFT face-off
    The website of the China Foreign Exchange Trade System (CFETS) recently announcedthe establishment of a yuan-ruble payment system, hinting that similar systems regarding other currencies participating in the New Silk Roads, a.k.a. Belt and Road Initiative (BRI) will also be in place in the near future.   

    Crucially, this is not about reducing currency risk; after all Russia and China have increasingly traded bilaterally in their own currencies since the 2014 US-imposed sanctions on Russia. This is about the implementation of a huge, new alternative reserve currency zone, bypassing the US dollar.   

    The decision follows the establishment by Beijing, in October 2015, of the China International Payments System (CIPS). CIPS has a cooperation agreement with the private, Belgium-based SWIFT international bank clearing system, through which virtually every global transaction must transit. 

    What matters, in this case, is that Beijing – as well as Moscow – clearly read the writing on the wall when, in 2012, Washington applied pressure on SWIFT; blocked international clearing for every Iranian bank; and froze $100 billion in Iranian assets overseas as well as Tehran’s potential to export oil. In the event that Washington might decide to slap sanctions on China, bank clearing though CIPS works as a de facto sanctions-evading mechanism.

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December 27, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , | 1 Comment

More Truth Bombs On The Way Which Will Bring About A Credit Crisis: Bill Holter

December 26, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

Jim Willie: Launch of Petro-Yuan

    December 22nd:  topics covered include the Petro-Yuan launch out of Shanghai with vast implications like completion of the RMB-Oil-Gold triangle and foundation for the Gold Trade Note used in crude oil market, the gradual displacement of the Petro-Dollar and the phased end to the Dollar global reserve currency status, implications toward pressures to launch the New Scheiss Dollar currency to guarantee uninterrupted supply chains to the USEconomy, the vast influence of Russia & China in the geopolitical events like Syria and Saudi Arabia and Iran in neutralizing (even surpassing) the US power game, the financial sector outlook for the new year 2018 with many non-USD platforms finally coming into place which will force significant changes, some comments on the EU disintegration with focal points in Italy (broken banking system) and Germany (objection to sanctions), and the attacks on humanity with respect to health regarding obesity/ diabetes as well as risks from laced vaccines and chemtrails and GMO foods.


December 23, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , | Leave a comment

David Stockman: Thundering Collision Coming in Bond Market. Gold Only Safe Asset Left

  • Greg Hunter Published on Dec 19, 2017
    Former Reagan White House Budget Director David Stockman says, “The central banks realize they cannot keep printing money at these crazy rates, and by that I mean the bond buying. Now, they are going to begin to normalize and shrink their balance sheet. . . . By the fall (of 2018), they (the Federal Reserve) will be shrinking their balance sheet by $600 billion a year. What that means in plain simple English is that they (the Fed) are dumping $600 billion a year of existing bonds into the market just as Uncle Sam will be attempting to borrow $1.25 trillion more. Now, if you don’t think that is a financial collision waiting to happen, then I am not sure what would be. We are heading for a thundering collision in the bond market that will drive yields upward far more than the market is expecting. The stock market operates on the illusion of permanently low interest rates. When interest rates start to rise, everything is going to come apart because cheap debt has been priced in forever, and we are heading for far more expensive debt. . . . Bond prices are going to collapse when yields begin to rise. . . . Stock prices are going to collapse bigtime when the underlying predicate of cheap debt, massive stock buy backs and M&A deals and everything else supporting the market today finally reverses. So, we are going to have deflation in the canyons of Wall Street, and that will not be a happy day.” Stockman also likes gold and silver and says those are only “safe investments left.”


December 22, 2017 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

The Bankers Manifesto Revealed, The Plan Is As Plain As Day: Jeff Nielson

Click on image for article.

December 21, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | 1 Comment

The Transition Begins, The World Economic Structure Is About To Change

  • X22Report Published on Dec 19, 2017
    The central banking system is trying to convince the world that the UK will not do as well as the EU when they leave. During the holiday season Toys R Us will be closing somewhere around 200 stores. We are seeing the same thing we saw in the markets back in 1997 & 2007 and in 2017,this will not end well. Saudi Arabia propped itself up by spending money they never had, now its coming to an end. The end of the petro-dollar is getting closer, the petro-yuan finished its testing and will most likely go live during Christmas. Trump now is pushing the strategy of trade.


December 20, 2017 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Historic Bond Bubble Means Fastest Rate Rise Ever – Martin Armstrong

  • Greg Hunter Published on Dec 16, 2017
    Is renowned financial expert Martin Armstrong worried about central banks continually buying bonds to suppress interest rates? Armstrong says, “Yes, absolutely. We are in the biggest bond bubble in history, not a stock bubble, but a bubble. . . . The scary thing in Europe is the ECB (European Central Bank) has been basically supporting the governments. It is subsidizing all the governments in the Eurozone. We are looking at almost 10 years of quantitative easing with that, and it hasn’t helped the economy. If the ECB backs off, who’s going to buy the debt?” How does this end? Armstrong says, “Our computers are showing that interest rates are going to go up faster than anybody has ever seen in history. . . . You are looking at a doubling of interest rates very, very rapidly. . . . Gold and equities are the place to be.”


December 20, 2017 Posted by | Economics | , , , , , , , , | Leave a comment

There Are Cracks In The Global Economy & It Will Only End One Way: Claudio Grass

December 18, 2017 Posted by | Economics | , , , , , , , , , , | Leave a comment

Is A Petro-Dollar Versus Petro-Yuan Showdown Coming On Monday?

  • Is A Petro-Dollar Versus Petro-Yuan Showdown Coming On Monday?
    China made its move finishing the testing of the oil-for-yuan futures contracts, and on Monday, President Trump goes on the offensive… from Zero Hedge – Trump Set To Accuse China Of “Economic Aggression” On Monday: 

    Just a few short days after Chinese regulators gave the greenlight to petro-yuan futures trading, signaling an escalation in the war against dollar hegemony, President Trump is reportedly set to accuse China of “economic aggression” in efforts to “undermine international order” during his national security strategy speech on Monday.

    The last week has more intriguing than usual in the world of Sino-US relations – not only did China push ahead with its plans for a yuan/gold-backed oil futures contract, directly threatening the great military-servicing global petrodollar recycling scheme; but Washington appeared to do an about-face in its rhetoric towards North Korea, as Secretary of State Tillerson indicated that the US would be willing to hold talks with North Korea without any preconditions.

    Both actions could be seen as tilting towards China (obviously with the oil trading and more what China had hoped for on North Korea), appear to have prompted Trump to go on the offensive, as The FT reports, Donald Trump will accuse China of engaging in “economic aggression” when he unveils his national security strategy on Monday, in a strong sign that he has become frustrated at his inability to use his bond with China’s President Xi Jinping to convince Beijing to address his trade concerns.

    Several people familiar with the national security strategy – a formal document produced by every US president since Ronald Reagan – said Mr Trump would propose a much tougher stance on China than previous administrations.

    “The national security strategy is likely to define China as a competitor in every realm. Not just a competitor but a threat, and therefore, in the view of many in this administration, an adversary,” said one person.

    “This is not something that they just cooked up. Mar-a-Lago interrupted the campaign rhetoric, and Xi Jinping took a little gamble and came here and embraced Trump. Trump said ‘fine, do something on North Korea and on trade’, but that didn’t work out so well.”

    read more.


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

Sprott Money News Ask The Expert – December 2017 – Jim Willie

  • Sprott Money Published on Dec 15, 2017
    Acclaimed analyst Jim Willie joins us for a look ahead to 2018 while answering questions submitted by customers of Sprott Money.


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

China About to Knock Out Petrodollar by Trading Oil in Yuan

  • China About to Knock Out Petrodollar by Trading Oil in Yuan
    According to Bloomberg, which cited a statement from the exchange, 149 members of Shanghai International Energy Exchange traded 647,930 lots in the rehearsal with a total value of 268.2 billion yuan. The system met the listing requirements of crude futures after the exercise, it added.

    “This contract has the potential to greatly help China’s push for yuan internationalization,”
     said Yao Wei, chief China economist at Societe Generale in Paris. She added, however, “its success will hinge critically on the degree of freedom allowed for the capital flows related to the contract.”

    A former China division chief at the International Monetary Fund, Eswar Prasad said: “It is not unreasonable to envision a world in which the overwhelming share of commodity contracts, especially for oil, are no longer denominated just in dollars.”

    But “the yuan’s role in global finance will ultimately be determined by the degree of commitment of Xi Jinping’s government to economic and financial market reforms.”

    Since the 1970s, the global oil trade has almost entirely been conducted in US dollars. The largest energy consumer, China, is interested in having oil contracts in yuan. Beijing plans to introduce its own oil benchmark which will rival Brent or West Texas Intermediate. Analysts say Chinese authorities will need to first convince large oil producers and consumers to use the yuan and invest in the Shanghai benchmark.

    read more.


December 16, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , | Leave a comment

Gregory Mannarino: Bitcoin Futures Biggest Pump and Dump Ever

  • Gregory Mannarino: Bitcoin Futures Biggest Pump and Dump Ever
    by Greg Hunter’s 
    Analyst/trader Gregory Mannarino says the record high stock markets have some big money people worried, and you should be too. Mannarino says, “On a weekly basis, yet another fund manager is coming out to speak against stock market evaluations and against what the Federal Reserve is doing.  Stanley Drukenmiller, a multi-billionaire hedge fund manager, came out on CNBC, and they didn’t turn him off.  He said the Federal Reserve is the Darth Vader of the financial markets and has inflated asset bubbles all over the place.  They let him talk.  They didn’t cut him off.”

    Mannarino goes on to say, “The Fed has created bubbles. This is no secret, and the market is twisted, it is distorted.  There is no real true price discovery mechanism, and there will not be until these world central banks stop managing the markets.  They have created fakery and made it way worse than the top of the last bubble.  This does not mean that this stock market is not going to go higher.”

    On Bitcoin and the new futures markets for it, Mannarino says, “Right now, Wall Street with its hand on Bitcoin, means to me that it’s going to be gamed. (Bitcoin) It’s very thinly traded, it’s not widely held.  Very few people actually hold this, and the bulk of this is held by very few.  So, to game Bitcoin through the exchanges, someone out here with deep pockets, like a bank with unlimited fiat currency, could run the biggest pump and dump the world has ever seen with regard to Bitcoin.  They are going to play it using the futures market.  Wall Street is going to game this.  How do we know this?  Wall Street games everything.”

    On the Bond market, Mannarino contends, “The debt market or the bond market is in the largest bubble the world has ever seen. If you believe Bitcoin is in a bubble, the bond market bubble makes Bitcoin look like one grain of sand on the entire earth.  That’s how big the debt bubble is.  World central banks have gone to unbelievable lengths to prop all this up. . . .They are going to kill the dollar, and they have been killing it for years.  It has lost almost all of its purchasing power.”

    Mannarino says the “red warning flag” will come from both the stock and bond markets at the same time. Mannarino explains, “When we see a sell-off in the bond market that does not stop, and we see a simultaneous sell-off in the stock market, when these two assets start to sell off at the same time, there is the gong of gongs. . . . That’s going to be the moment when people need to run for the hills, if you can get out.”


December 15, 2017 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment