Category Archives: Financial

Ellen Brown ~ Fixing The Economy With State Owned Banks [Video]

Ellen Hodgson Brown explains the rationale behind state owned banks.

Due to the collapsing credit bubble which in turned popped the housing bubble, leading to recession, and perhaps, economic depression, there is not enough money and credit to keep the economy running. Three possible solutions are that the federal government issue debt-free money directly, that communities create alternate or community complementary currencies, or that a state create its own state owned bank, similar to the Bank of North Dakota.

For example, a state owned bank in Michigan could provide credit to the state itself for infrastructure projects, help provide the capital for local banks, so they could in turn provide low interest loans to home owners, small and medium sized businesses, and students. In addition, a state owned bank could be used to help fund state expenses during tough times by providing loans. Continue reading

Simon Black ~ Historical Figures’ Salaries In Gold: Leonardo Da Vinci

Region VII, Chile ~ Among the masterpieces of the Italian Renaissance, Leonardo da Vinci’s “La Scapigliata” stands out distinctly from the rest.

The unfinished painting is of a common woman with disheveled hair. It’s remarkable particularly for depicting not the exceptional, but the real.

Part of da Vinci’s genius was the way he was able to capture life—genuine, unaffected reality, often intense detail. His notebooks reflect the same.

Leonardo, in fact, passed on to posterity great details of his finances. We know, for example, that around the time he painted La Scapigliata in the early 1500s, the great master was living in Milan and earning a salary directly from the king.

Leonardo’s journals state that in a ten-month period, he was paid a total of 240 scudi and 200 florins from the king.

The Italian gold scodo at the time was 3.42 grams of gold, and the florin was 3.54 grams. As of today’s gold price, that adds up to an annualized salary of $72,153.24.

Bear in mind, this was Leonardo’s ‘take home pay’ as there was no income tax, meaning his gross salary in today’s world would be just over $100,000 to account for income tax and FICA.

If we were to extend this analogy even further, given that Leonardo was on the government payroll back then as an artist/engineer, we can look up the US government employee pay scale today.

Da Vinci was an accomplished professional to say the least. His age, experience, and job title in the early 1500s would make him the equivalent of a GS-13 rank today (based on current US government pay scale). Continue reading

Greg Hunter Interviews Egon von Greyerz ~ Disorderly Reset Coming-Dollar Goes to Zero [Video]

Wealth preservation expert Egon von Greyerz is not bullish on the U.S. dollar.  Greyerz explains, “More and more countries are trying to go away from the dollar, and I think the days of the dollar are counted. 

I think the dollar is going to start falling rapidly in coming months and years.  Of course, it already has fallen dramatically in the last few decades, but that will now accelerate.  It will go down to its intrinsic value which is zero, which most currencies do over their lifetime.  Of course, we have the movements in Russia and China with alternative currencies for commodities like oil, etc.  There will be a very disorderly reset with currencies falling.  They can’t all fall at the same time, but they will fall dramatically, and gold will, of course, reflect that.

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G E Christenson ~ A Tale Of Two Cities

“A reset seems inevitable and possibly imminent.  As they say, the market always does what it is supposed to, but not when we expect it.” – G E Christenson

This is a work of fiction with a few similarities to the reality we all know and trust, or … the reality that we think we know.

City A in a Paper World

GaryChristensonA financial genius had a plan!  He and his offspring implemented the plan over several hundred years.

Charter a bank.

The government authorizes this bank to create and print paper money, backed by gold or silver. (It took surprisingly little in bribes to convince the government leaders that this Bank was a wonderful idea.)

The Bank accepts gold, silver and other valuables as deposits into its vaults, and then lends paper money, backed by those gold and silver deposits, to governments, businesses, politicians, and individuals.

The debtors borrow paper money but are required to repay in gold.

The Bank owners pay themselves huge salaries, become trusted confidents of government leaders, and pillars of the society. Wealth is transferred to the banker class.

The Bank owners also “encourage” politicians to create wars and other costly programs, and to borrow from the Bank to pay for their adventures and excess spending. (Surprisingly little money is required in payoffs from the Bank to the politicians.)

Debts increase, governments buy votes with promises, and the Bank becomes increasingly important in global affairs.

The Bank also agrees to store gold from many other countries for “safe keeping.” The gold is never audited.  A few people wonder why it is never audited.

So many debts are incurred by governments, businesses, and individuals that the money is transformed into paper, not gold, nor is it redeemable in gold. Of course, it is still “as good as gold.” Continue reading

Pam Martens ~ Wall Street Journal: Wealth Inequality Is Your Own Dumb Fault

“The Clinton administration repealed the Glass-Steagall Act in 1999, allowing trillions of savers deposits to be concentrated in a handful of the largest Wall Street banks – which pay miniscule interest to the depositors while reaping outsized gains in risky market speculations. If the bets payoff, the banks keep the winnings and pay obscene salaries and bonuses to their executives and traders. If the bets fail spectacularly, the taxpayers bail out the bank.” – P Martens

Yesterday the Wall Street Journal gave prominence to the following headline on page one of its newspaper with the story jumping to page A2: “Bad Market Timing Fueled Wealth Gap.” Through the use of the word “fueled” in that headline, the reader is conditioned to believe that market timing is a significant cause of wealth inequality in the United States – a completely bogus idea for which there exists mountains of research to the contrary.

The online version of the article includes a video interview with the author, Josh Zumbrun, and this caption appears under the video: “Millions of Americans bought high and sold low, which caused them to unknowingly widen economic inequality. WSJ’s Josh Zumbrun explains on MoneyBeat with Paul Vigna.”

The crux of this thesis is built in the first three paragraphs of the article as follows:

“Millions of Americans inadvertently made a classic investment mistake that contributed to today’s widening economic inequality: They bought high and sold low.

“Late in the stock-market booms of the 1990s and 2000s, more U.S. families clambered into stocks as indexes surged. Then, once markets tumbled, many households sold and took losses.

“Those that held on during the most recent collapses reaped the benefits as stocks nearly tripled between 2009 and today.”

Only much later in the article does the author offer up this bit of clarification:

“Wealth inequality in the U.S. has many causes, some of which precede the recent booms and busts, and the new research doesn’t quantify exactly how much the stock-market timing contributed to it.”

“Doesn’t quantify exactly how much”? But your front page headline said market timing “fueled” the wealth gap. The Wall Street Journal couldn’t possibly be engaging in propaganda could it? Continue reading

Alasdair Macleod ~ Swiss Gold & Breaking The Cartel [Audio]

In the second half of our new interview with GoldMoney’s Alasdair Macleod we discuss the November 30th Swiss gold referendum and what it might mean for the Bankster’s central banking Ponzi scheme. We also discuss Majestic Silver CEO Keith Neumeyer’s move to withhold physical silver sales – and his idea to form an OPEC-like mining cartel to break the back of the paper silver manipulation. Thanks for tuning in.

Alasdair’s sites:
http://www.goldmoney.com/
http://www.financeandeconomics.org/

Bix Weir ~ Deutsche Bank Derivative Problems Leaking Everywhere

This weekend I sent an email blast after learning that one of the head structuring banksters for the largest derivative holder in the world, Deutsche Bank, had committed suicide. Yesterday I had an interview with Paul Sandhu where we touched upon what was going on in the back rooms of this mega-Bad Guy Bank.

Today we learn that the CFO for Deutsche Bank is heading for the hills too!!

Deutsche Bank Preparing to Replace Financial Chief http://dealbook.nytimes.com/2014/10/28/deutsche-bank-preparing-to-replace-financial-chief/

“The German lender Deutsche Bank is preparing to replace its chief financial officer, Stefan Krause, with a Goldman Sachs Group partner, Marcus Schenck, in a shakeup ahead of its third-quarter results announcement on Wednesday, according to people briefed on the discussions.”

“Deutsche Bank is also expected to announce management changes intended to deal with other problems that have been a major distraction for Anshu Jain, the co-chief executive, as he tried to defend the bank’s position among global investment banks.”

“The lender said last week that it had set aside another 894 million euros, or about $1.13 billion, in legal costs in the third quarter to cover lawsuits and regulatory inquiries into a variety of legacy issues.”

END

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Charles Hugh Smith ~ We Don’t Have One Problem. We Have Three Interlocking Sets Of Problems

“The additional sets of problems added as “solutions” only guarantee that the third and final crash of asset bubbles just ahead will be far more devastating than the crashes of 2000 and 2009.” – C H Smith

CharlesHughSmithThe conventional view tacitly assumes the global economy is dealing with one problem: recovering from the Global Financial Meltdown of 2008-09. Stimulating a “recovery” has been the focus of central banks and states everywhere.

Short-sighted political expediency is a hallmark of the modern state’s reaction to crisis, but political expediency isn’t the only flaw in the central banks/states’ obsessive focus on “recovery;” it’s not even the primary flaw.

The real flaw is the central banks/states don’t even recognize that we face three interlocking sets of problems, not one. Each set of problems is layered on top of the previous layer, and each sets reinforces the other two. In other words, the entire problem set is more than just the sum of the three problem sets.

  1. Financialization of the economy. As the post-industrial funk of the 1970s dragged on, the neoliberal ideology of liberalizing credit markets and eliminating the regulatory wall between investment banking and commercial/mortgage banking was presented as the fundamental fix to post-industrial stagnation: free up credit, leverage and speculation, and the results would be an expansion of asset prices and growth.

The first wave of financialization in the 1980s did indeed boost asset valuations and growth, but it did so by eroding the productive economy and the middle class that arose from gains in productivity. Financialization substitutes finance for productive investments, such that financial games such as originating subprime home mortgages become far more profitable than non-financial capital investments. Continue reading

Greg Hunter Interviews Andy Hoffman ~ Global Economy Has Collapsed [Video]

Financial analyst Andy Hoffman says the real global economy is in deep trouble, which is much to the chagrin of the Fed. Hoffman explains, “Recall last April, they started smashing gold and started with the ‘taper’ talk. The Fed figured by about this time, they’d be ready to start hiking rates. The fact is the global economy has collapsed. Our real economy has collapsed. Forget the fake PMI numbers or their ridiculous employment numbers. The economy of the world is getting worse and worse and worse.

No matter how hard they try to say yes, there is a recovery and we are tapering. Interest rates keep falling and falling. There are plunging rates despite all their talk of recovery and tapering.” Hoffman, who also has deep Wall Street experience, points to the recent sell-off in the stock market and the Fed’s reaction. Hoffman contends, “The Dow Jones propaganda average fell a whopping 9% from its all-time highs. The Fed absolutely freaked out. Within minutes, they had the Plunge Protection Team (PPT) running it back up, and no less than six Fed Governors in the space of three days came out and called for extension of QE and extension of zero-percent-interest-rates (ZERP). That’s how terrified they are, and remember, next week is when QE is supposed to end.” Continue reading