Fiat’s Failings, Gold And Blockchains

By Alasdair Macleod – Re-Blogged From GoldMoney

The world stands on the edge of a cyclical downturn, exacerbated by trade tariffs initiated by America. We know what will happen: the major central banks will attempt to inflate their way out of the consequences. And those of us with an elementary grasp of economics should know why the policy will fail.

In addition to the monetary and debt inflation since the Lehman crisis, it is highly likely the major international currencies will suffer a catastrophic loss of purchasing power from a new round of monetary expansion, calling for a replacement of today’s fiat currency system with something more stable. The ultimate solution, unlikely to be adopted, is to reinstate gold as circulating money, and how gold works as money is outlined in this article.

Instead, central banks will struggle for fiat-based solutions, which are bound to face a similar fate with or without the blockchain technology being actively considered. The Asian and BRICS blocs have an opportunity to do something with gold. But will they take it?

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America’s Trade Policy Will End Up Destroying The Dollar

America’s tariffs against China are already showing signs of undermining the global economy and will create a funding crisis for the Federal Government when it leads to foreigners no longer buying US Treasury debt and selling down their existing dollar holdings. A subversive attempt by America to divert global portfolio investment from China by destabilising Hong Kong will force China into a Plan B to fund its infrastructure plans, which could involve actively selling down her dollar reserves and hastening the introduction of a new crypto-based trade settlement currency.

The US budget deficit will then be financed entirely by monetary inflation. Furthermore, the turn of the credit cycle, made more destructive by trade tariffs, is driving the global and US economy into a slump, further accelerating all indebted governments’ dependency on inflationary financing. The end result is America’s trade policies have been instrumental in hastening the end of the dollar as the world’s reserve currency, ultimately leading to its destruction.

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Tesla Factory Store Uses Diesel Generators to Recharge Slow-moving Model 3 Inventory

By – Re-Blogged From TTAC

Let’s say you manage one of the soon-to-be-closed Tesla factory-owned stores and, for whatever reason, you have dozens of brand new Model 3 EVs sitting unsold on your lot. What are you going to do if one of them has a discharged battery? As car dealers learned a long time ago in the gasoline era, batteries won’t keep a charge forever and cars sitting for a long time sometimes need a boost to their batteries.

That’s true whether it’s a conventional 12 volt lead-acid battery for an ICE-powered vehicle’s electrical system or it’s the lithium-ion battery pack that powers a EV. That’s why car dealerships for conventional vehicles have battery tenders, heavy duty chargers that can be wheeled around the lot to whichever car might have a dead starter battery.

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Making Italy Great Again

By Peter Schiff – Re-Blogged From Euro Pacific Capital

This week, market watchers around the world are justifiably fixated with the high-stakes, high-drama political developments unfolding in Italy. While a political crisis in the world’s 9th largest economy (International Monetary Fund figures, 4/17/18) would normally not be enough to cause an international meltdown, given how thin the global economic ice has become as a result of ever-increasing debt loads, even small disruptions can create systemic problems. But from my perspective, what makes the Italian drama so interesting is that it parallels so precisely developments in the United States. It’s amazing that more Americans do not realize, that when looking at Italy, they are looking at a fun house mirror reflection of the United States.

Italy is currently dealing with the results of an election in which populist political forces scored a big victory over the establishment, which they had judged to be both corrupt and ineffective. In other words, the Italians replayed the 2016 Presidential election in the U.S. The big difference is that here the anti-immigrant tendencies of the right and the economic populism of the left were united in one person: Donald Trump. In Italy, those positions are represented by two separate parties that normally would be rivals. But politics can make very strange bedfellows, and the absurdity of the current economic reality has made them partners.

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Italy Looms on the Eurozone’s Horizon

By Adriano Bosoni – Re-Blogged From Stratfor

The skies may not be clear, but these days Europe’s leaders are more relaxed than they were when the year began under foreboding clouds. Economic growth is gaining momentum and unemployment is slowly going down. More important, voters in France rejected candidates opposed to the European Union, and moderate forces will remain in power after September’s general elections in Germany. But while things are relatively calm in the eurozone’s two main economies, the next big challenge for the currency area will come from its third-largest member, Italy. The country has to hold general elections by May, and the vote will take place amid discontent with the status quo, which in many cases includes skepticism about the euro. Given the size of the Italian economy and the depth of its problems, the country’s politics could have consequences far beyond Italy’s borders.

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Brexit’s Potential to Fracture the U.K.

Re-Blogged From http://www.Stratfor.com

Analysis

Splitting from the European Union will inevitably strain the United Kingdom’s territorial integrity. Those pushing for Scotland and Northern Ireland to secede from the United Kingdom are using Brexit to justify their agendas. Brexit will also open a debate between the central government in London and the country’s devolved governments about who will control the powers that will be repatriated from Brussels. With authority over policy areas such as agriculture, fisheries, industry and the environment returning to the United Kingdom after Brexit, the administrations of Wales, Scotland and Northern Ireland will push London to transfer many of those attributions to them.

Brexit's Potential to Fracture the U.K.

The independence movement in Scotland stands to gain momentum from the Brexit. (JEFF J. MITCHELL/Getty Images)

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12 Financial Experts for 2017

By Daisy Luther – Re-Blogged From Freedom Outpost

What lies ahead for the economy this year? Will the economy finally collapse as predicted by many or will the early positive signs in stock markets around the world continue and the global economy will flourish?

I’ve taken a lot of heat for being “gloomy” and for “fear-mongering” lately when I’ve said that President-Elect Trump is inheriting a mess of epic proportions and that we may still be in for a rough financial ride. While I do think that Trump is a far better choice than Hillary Clinton ever could have been, when a situation has been declining as long as ours has, it would take an absolute miracle to turn it around without some pain.

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