Time For A New Gold Standard For Asia

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

Over half the world’s population, living in the Eurasian land mass, understands that gold is money. The leaders of the Asian nations also know that this is true as well. The leaders of the security and economic alliance of the Shanghai Cooperation Organisation, which now incorporates most of these peoples, also know that to become independent of Western hegemony and to forge their own way, they must abandon Western financial systems and markets, replacing them with a new monetary order, serving their own needs. This is demonstrated in the establishment of parallel multinational financial institutions, duplicating and replacing dollar-centric development banks and settlement organisations.

Continue reading

When the Black Market Becomes the Real Market

By Jeff Thomas – Re-Blogged From International Man

For many years, I’ve described black markets not as the evil danger to economies that governments profess them to be, but as predictable and sensible reactions to the overregulation of official markets.

Black markets appear whenever an official market has become overregulated or otherwise unworkable due to governmental interference. They then thrive in direct proportion to the failure of official markets to function freely. They are, in fact, both a barometer and a checks-and-balances system for official markets.

Back in 2008, I commented on the growth of the black market in Zimbabwe, as that country slid from inflation to hyperinflation. At that time, the people resorted to the use of other currencies (most notably the US dollar) as black market currency. The government, desperate to force their people into the dying Zim dollar, made it illegal to use the US dollar, but this hardly made a dent in the use of what was clearly a more stable currency. The ban on the US dollar only succeeded in driving it underground. Commerce did not grind to a halt, and money did not cease to change hands. The only real change was that the Zimbabwean government was taken out of the monetary loop.

Continue reading

Checklist For Market Tops

By Bob Hoye – Re-Blogged From http://www.Silver-Phoenix500.com

Signs Of The Times

“Celine Dion Drops the Price on Her Jupiter Island Estate by $27 million”

– L.A. Times, May 28.

“Hard Times Hit Billionaire’s Row with Luxury Condo Foreclosure”

– New York Post, May 30.

“Pending Home Sales Crash Most In 3 Years”

– Zero Hedge, May 31.

“Debt Pile-Up in US Car Market Sparks Subprime Fear”

– Financial Times, May 30.

“Per Capita Taxes Have More Than Doubled Since JFK”

– CNS News, May 31.

“Rents Are Deflating in the Hottest Cities”

– Business Insider, June 4.

Continue reading

PetroDollar System In Trouble As Saudi Arabia Continues To Liquidate Foreign Exchange Reserves

By SRSrocco – Re-Blogged From http://www.Silver-Phoenix500.com

The U.S. PetroDollar system is in serious trouble as the Middle East’s largest oil producer continues to suffer as the low oil price devastates its financial bottom line.  Saudi Arabia, the key player in the PetroDollar system, continues to liquidate its foreign exchange reserves as the current price of oil is not covering the cost to produce oil as well as finance its national budget.

The PetroDollar system was started in the early 1970’s, after Nixon dropped the Gold-Dollar peg, by exchanging Saudi Oil for U.S. Dollars.  The agreement was for the Saudi’s only to take U.S. Dollars for their oil and reinvest the surpluses in U.S. Treasuries.  Thus, this allowed the U.S. Empire to continue for another 46 years, as it ran up its ENERGY CREDIT CARD. 

Continue reading

China’s Belt And Road To Nowhere

By Michael Pento – Re-Blogged From http://www.Gold-Eagle.com

Moody’s Investors Service downgraded China’s credit rating recently to A1 from Aa3. The rational being that it expects the financial strength of the economy to erode, as GDP growth slows and debt levels continue to pile up. What is Beijing’s response to the slowing economy and intractable debt accumulation that was just underscored by Moody’s: issue a mountain of new debt in order to pave over 60 countries around the globe?

China’s One Belt One Road (OBOR) Initiative seeks to answer the age-old question of what a maniacal communist country does when they have exhausted the building of unproductive assets at home. The answer: China hits the road and attempts to rebuild the ancient trade routes once called the Silk Road; but in a much bigger way. With 52 million new homes built over the last few years that have a 10% occupancy rate, China has truly become masters of the “road to nowhere.”

Continue reading

OPEC Proving Cartels Always Fail

By Andrew Hoffman – Re-Blogged From Miles Franklin

In Wednesday’s “historic market manipulation setting the stage for catastrophe,” my principal inference was that, per the time old adage, crime never pays.  Perhaps in the short-term; but the longer a scam is perpetrated, the more vulnerable it becomes to its inevitable demise.  Kind of like Fargo, when the initial plan to ransom Jerry’s wife morphed into a heinous killing spree, resulting in essentially all participating parties dying; as crime, like market manipulation, has significant unintended consequences, which must inevitably be addressed.

Such as, the fact that the historic money printing perpetrated on the world’s 99% by the “1%” bankers has resulted in an unprecedented debt edifice that, to paraphrase JP Morgan yesterday, can NEVER be repaid.  Not to mention, the equally unprecedented oversupply, of everything from commodities, to factories, to government itself – which can only be “repaid” by vast retrenchment, via the historic Depression that shortly, will envelop the entire world.  And oh yeah, the “dotcom valuations in a Great Depression Era” said “historic market manipulations” have created – which must eventually reverse; likely, violently so.  Perhaps one of the increasingly likely “black swan” events will be, as Jim Rickards puts it, the “snowflake that starts the avalanche.”  Or perhaps, history’s largest asset bubbles – and conversely, Precious Metals “anti-bubbles” – will simply collapse under their own sheer weight.

Continue reading

Business Cycles Are Credit Cycles

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

This article gets to the heart of why central banks’ monetary policy will never succeed. The fundamental error is to regard economic cycles as originating in the private sector, when they are the consequence of fluctuations in credit. It draws on the author’s submission of evidence to the UK Parliament Treasury Committee’s enquiry into the failure of monetary policy in the wake of the 2008 crisis.

Summary

  • It is incorrectly assumed that business cycles arise out of free markets. Instead, they are the consequence of the expansion and contraction of unsound money and credit.
  • Monetary inflation transfers wealth from savers and those on fixed incomes to the banking sector’s favoured customers. It has become a major cause of increasing disparities between the wealthy and the poor.

Continue reading