The Global Forest Fire Is Here

It drives you absolutely mad to see a whole world living a lie. How can anyone believe that the fake world the Fed and their fellow central bankers have created has anything to do with reality. We have fake money, fake markets, fake companies, fake banks, fake interest rates, fake income, fake pensions, fake social security, fake wealth, fake bail outs, fake buildings, fake holidays, fake cars etc which create false lives for most of us especially in the West. All these fake material values have also created false moral and ethical values.

IT IS ALL AN ILLUSION 

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Will Corona Virus Lead To A Gold Standard?

By Alasdair Macleod – Re-Blogged From Gold Eagle

Even before the coronavirus sprang upon an unprepared China the credit cycle was already tipping the world into recession. The coronavirus makes an existing situation immeasurably worse, shutting down China and disrupting global supply chains to the point where large swathes of global production simply cease.

The crisis is likely to be a wake-up call for complacent investors, who are content to buy benchmark bonds issued by bankrupt governments at wildly excessive prices. A recession turned by the coronavirus into a fathomless slump will lead to a synchronised explosion of debt issuance for which there are no genuine buyers and can only be monetised.

The adjustment to reality will be catastrophic for government finances, and their currencies. This article explains why the collapse in overpriced financial assets and fiat currencies is likely to be rapid, perhaps giving ordinary people in some jurisdictions an early prospect of a return to gold and silver as circulating money.

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Some Chinese Electric Cars Are ‘Simply Worthless’: Industry Body

By Dave Yin – Re-Blogged From CaixinGlobal

It’s “inevitable” that China’s electric cars have little resale value and some are inherently worth little, according to one of China’s top auto industry bodies.

In its latest weekly update on China’s ailing auto market, the China Passenger Car Association (CPCA) listed several reasons why value retention is “too low” for new-energy vehicles (NEVs), including fully electric, fuel-cell and hybrid cars.

Photo: VCG

Photo: VCG

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A Look At Futures Contracts

Mark J Lundeen – Re-Blogged From Gold Eagle

Every bull market advance eventually sees its last all-time high. No one rings a bell when it happens, but from that point on things begin to change for the worse for the bulls.

The Dow Jones’ BEV chart below begins at the -54% bear-market bottom of the 2007-09 credit crisis. We don’t see a -54% BEV value as I began this series on the March 09, 2009 bear-market bottom. So instead we see a 0.00%, as the first data point of all BEV series begins at zero percent.

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What Causes Loss Of Purchasing Power

By Keith Weiner – Re-Blogged From Gold Eagle

We have written much about the notion of inflation. We don’t want to rehash our many previous points, but to look at the idea of purchasing power from a new angle. Purchasing power is assumed to be intrinsic to the currency. We have said that the problem with the word inflation is that it treats two different phenomena as if they are the same. One is the presumed effect of rising quantity of dollars. The other is the effect of rising regulatory and tax burdens.

Let’s use milk as an example. Suppose milk was $1 per gallon. Many would say that a dollar is worth one gallon of milk. Or, alternatively, a dollar’s purchasing power is one gallon of milk. Suppose that later, the price of milk goes up to $2. Then, people say that the dollar’s purchasing power falls by 50%, to half a gallon of milk. Regardless of what you call it, everyone would agree that the dollar buys less than it did.

Until now. Let us explain.

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James Kunstler: The Coming Collapse of Universities

Summary: James Howard Kunstler looks at the coming collapse of the university system in America. It’s good news. I know of nobody who better describes the decay of American society, aided by his powerful writing. See my note afterwards which provides details supporting his vision.

Lesson One: Revolution - dreamstime_50435521

ID 50435521 © Idiltoffolo | Dreamstime.

Coercion Meets Its Match

By James Howard Kunstler at his website. Posted with his generous permission.

Like the fabled spring zephyr came news that the Golden Golem of Greatness, (a.k.a. President Trump) signed an executive order that would withhold federal funding from colleges and universities that do not demonstrate support for free speech. It has been an amazement to behold the appalling, hypocritical suppression of the first amendment on campuses across the nation, with their ignoble speech codes, asinine safe spaces, sinister kangaroo courts, and racist anti-whiteness crusades.

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Are Stocks Overvalued?

By Keith Weiner – Re-Blogged From Silver Phoenix

We could also have entitled this essay How to Measure Your Own Capital Destruction. But this headline would not have set expectations correctly. As always, when looking at the phenomenon of a credit-fueled boom, the destruction does not occur when prices crash. It occurs while they’re rising. But people don’t realize it, then, because rising prices are a lot of fun. They don’t realize their losses until the crash. So we want to look at stocks when they’re high, before people realize what’s happened to them.

How do you value a stock? The classic methodology, proposed by Benjamin Graham and Warren Buffet, is to discount future free cash flows. Let’s leave aside the problem of how to predict future revenues much less cash flows in our crazy resonant system with positive feedback. For purposes of this discussion, we will just assume that a stock generates a known and constant cash flow of, say, $1 per year, in perpetuity.

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You Can’t Eat Gold

By Keith Weiner -Re-Blogged From Gold Eagle

“You can’t eat gold.” The enemies of gold often unleash this little zinger, as if it dismisses the idea of owning gold and indeed the whole gold standard. It is a fact, you cannot eat gold. However, it dismisses nothing.

This gives us an idea. Let’s tie three facts together. One, you can’t eat gold. Two, gold is in backwardation in Switzerland. And three, speculation is a bet on the price action.

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Silver To Gold Ratio

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

Silver prices move farther and faster than gold prices, both up and down. When long term rallies begin silver often lags gold as in early 2018. The current gold to silver ratio at eighty to one is high. Fifty-nine to one has been the average for 40 years. Prior to 1913 the average was about 15 to one.

An eighty to one gold to silver ratio shows prices for gold and silver are too low. At silver price peaks the ratio will drop to thirty or even fifteen to one.

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Inflation Is Not Under Control

By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

Let’s continue on our topic of capital consumption. It’s an important area of study, as our system of central bank socialism imposes many incentives to consume and destroy capital. As capital is the leverage that increases the productivity of human effort, it is vital that we understand what’s happening. We do not work harder today, than they worked 200 years ago, or in the ancient world. Yet we produce so much more, that obesity is a disease more of the poor than the rich. Destruction of capital will cause us to produce less, and that will mean reverting to a lower quality of life.

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This Concept Called ‘VALUE’!

By Don Swenson – Re-Blogged From Kingdomecon

The Millennial generation (those in the 19-34 age bracket) desire to change our monetary system so that a decentralized system emerges. Cryptocurrencies are their attempt for inventing this decentralized marketplace. I fully agree with the general ‘intentions’ of these millennials. But do these folks understand what they are proposing? I, personally, don’t think so. What we need to understand is this inner concept called ‘Value’ and why this concept is key to all money proxies. Let’s think on this concept for a few minutes!

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Are We Becoming a Nation of George Costanzas?

By Barry Brownstein – Re-Blogged From The Foundation for Economic Education

George Costanza, a fictional character in Seinfeld, might be the most miserable, complaining “victim” in television history.

George is a pro at shirking responsibility, making excuses, and blaming other people. He is an amateur at adding value in the workplace. 

It has been almost 25 years since NBC first broadcast an episode of Seinfeld titled “The Revenge.” George rashly tells off his boss and quits his job. Later that day, he sits in Jerry’s apartment lamenting over his future job prospects. Jerry gently probes George about his interests. “I like sports,” George replies, and muses of being a general manager or an announcer. When Jerry points out that he has no qualifications for those jobs, George retorts, “Well, that’s really not fair.”

A Distorted View of Fairness

Starting at the top of any profession isn’t an option, but George doesn’t understand that. He schemes how to get ahead and lacks all initiative to do actual work.

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