September 21, 2015

The rich get richer

Posted in Irish Independent · 79 comments ·
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It’s always odd to pass places you used to work. Nostalgia plays tricks on you. I am walking down the shaded side of Boston’s Newbury Street in the height of a wonderfully hot late September afternoon. Just across the road is the restaurant where I spent a summer washing dishes. There was a long Indian summer that year too. The heat in the kitchen must’ve been in the mid-90s.

 
Anthony Bourdain, the great American chef, wrote in Kitchen Confidential about the intense camaraderie which binds kitchen workers, all the way from the dishwashers and kitchen porters on the bottom, to the side chef, sous chef and – of course – the showrunner himself, the head chef.

 
Bourdain is spot on. Sure, you might hang out with the waiters and waitresses after a late shift, but your real mates are the creatures of the sweaty cauldron when the restaurant is slammed and everything is one side order away from chaos.

 
And what creatures! The kitchen is the last refuge of all sorts. No one asks too many questions, you proffer what you want and hold back what you need, initially, at least. With the exception of the Americans, everyone in our mid-1980s kitchen was illegal, so that kept us all a bit edgy. My comrades were Colombians, Argentinians and Nicaraguans.

 
We communicated in the international language of the free kick, the flick-on or the dodgy off-side. Our pantheon wasn’t Babe Ruth, the Red Sox and Fenway. It was Pele, Valderrama and the Aztec Stadium.

 
This was the summer of Diego Maradona and the ‘hand of God’. It was an America before David Beckham, Robbie Keane and the LA Galaxy – America before soccer.

 
Deep in the kitchen beneath the earth, we were bonded together by a love of football, reggae and a heightened fear of the Internal Revenue Service.

 
We also understood that the only way was up. Even from there, it felt that America was the land of opportunity.

 
That was the promise. We believed that if you worked hard, you could get on in a way that you couldn’t get on in your home country.

 
For us Irish students, we were only playing at the American Dream; for the others, it was real. They saw the guy on the hill with the big house and said to themselves: “One day, I can be him.”

 
Upward social mobility, or at least the promise of upward social mobility, is what keeps most western societies going forward. This has always been the case.

 
People get out of bed in the morning because they expect today will be better than yesterday. We invest enormously in our children to give them the chance to do the best they can. Real life seems to be a constant striving for self-improvement for all. It’s like a conveyor belt.

 
This is what social mobility is all about and upward social mobility demands a bit of room on the hill for everyone. There has to be a chance.

 
But what happens if that social conveyor belt stops? What happens when the concentration of wealth at the top becomes so extreme that there is very little left to go around? What happens when policies all over the world explicitly work to make rich people richer?

 
This is exactly what has happened all over the West in the past 10 years. The recessions provided a once-in-a-generation opportunity for rich people to become even wealthier.

 
Right now in Ireland, the spoils of society are going almost exclusively to the very rich.

 

Last year, the 100 people on the Irish Rich List earned €12 billion. Just to put that in context, it is twice as much as the entire growth in Irish GDP last year.

 
We are not talking here about the mythical 1 per cent. If it were the 1 per cent, we would be talking about a significant cohort of between 46,000 and 48,000 people. Here we are talking about 100 individuals. This is off the scales.

 
But now you know what happened, the question is why did it happen? It happened as the direct consequence of policy.

 
During the recession the value of all sorts of assets all over the world collapsed. This caused a ‘liquidity trap’ where normal economic policy didn’t work.

 
The rate of interest fell to zero but nothing happened because the people had too much existing debt and they didn’t want to borrow any more and the banks had too much bad debt and they didn’t want to lend. So the normal way of getting out of recession, which is to cut interest rates, was ineffective.

 
The economy was stuck. The authorities, from the US to the ECB, printed money and gave it to the banks to lend out as they saw fit. This is called quantitative easing.

 
This free money drove up asset prices, particularly stocks. And in the main who owns stocks? Why, rich people, of course.

 
So people who depended on assets for their income began to do very well. However, the vast majority who depend on wages for the income, saw their income go the other way because of (1) taxes and (2) competitive pressures in manufacturing from China and (3) deflation associated with austerity.

 
Simultaneously, a massive fire sale was going on for real assets where the value had collapsed in the recession. However, only people who either had cash or could borrow could take part in this fire sale. And who has the cash? The already wealthy do.

 
In addition, because the banks were nervous about to whom they should give this newly minted money, they gave it to people who already had cash and other assets. So the already wealthy were given the means to buy yet more. And as they bought the prices started to rise, expanding their wealth yet further.

 
Finally, in Ireland Nama has been offloading huge parcels of property as quickly as it can and mainly to massive funds that are owned by very wealthy individuals.

 
And as prices recover, these people are making fortunes which will be realised when they sell. And guess who these foreigners will sell to? They will sell to Irish people at much higher prices.

 
We have seen a massive transfer of wealth in the recession from the middle to the very rich. This has ensured a significant wealth divide – the sort of inequality not seen in this country for over 100 years.

 
The problem with wealth inequality as opposed to income inequality – which is not bad in Ireland – is that it leaves so many people in the middle behind. And when people feel left behind or locked out, they tend to react extremely.

 
So it’s in everyone’s interest – even the very rich – that this should not go unchecked indefinitely.

 


  1. Subscribe – got up to kill a mosquito.

  2. McCawber

    The Central Banks are the hitmen of the rich.
    Park gold for the moment.
    What are the instruments by which these hitmen operate and where do they get there ammunition from.
    1. The ammunition comes from both the politician and the citizen.
    The politician may not want to balance the books but the citizen certainly can and thus breed a culture of McCawberism which will ultimately lead to future generations of politicians being more responsible – that is however a long game.
    2. The hitmen need to have some of their weapons removed – level the playing field.
    Spread betting, CFDs, all sorts of leveraging should be eliminated from the financial system – I appreciate a certain amount of leveraging is required but not what we have at the moment.
    Add shorting and longing to the above, by no means complete, list.
    In short, curtail the abuse in the financial system.
    Make the financial system do what it is supposed to do, finance the world economy and it’s citizens.
    3. Re-define or maybe even define clearly the role of a Central Bank.
    ie Rein them in.
    4. No more QE.
    5. Reduce Target inflation – Would be an interesting debate just on it’s own.
    6. Block any further development of Bitcoin – It’s the next generation weaponry for the hitmen.

    To do the above you have to get enough politicians on board to, at least, make it an issue for discussion. This is the toughest part of the whole deal.
    Then it’s on to the G20 and then a global acceptance that all Central Banks must behave according to a set of agreed rules (I’ve no idea what they should be btw).

    If you get that far then Gold’s role can be debated.

  3. Colm MacDonncha

    History has shown that massive social inequality eventually leads to Kafka’s theory of ‘War not necessarily being the destruction of Human Life,rather the destruction of the products of Human Labour’?
    I have no idea what weaponry will be used to fight the Third World War, but the Fourth World War will be fought with sticks and clubs…

  4. Mike Lucey

    “So it’s in everyone’s interest – even the very rich – that this should not go unchecked indefinitely”

    Well the very rich and their facilitators have not the common sense to get things back to sustainability. When have they ever done so in the past? So David we can only count on ourselves, the 99.08%!

    Other than a revolution how can this be achieved? insistence on Direct Democracy could be a good first step. At least it would give the possibility of self determination to the thinking sheeple.

  5. zapit

    Before QE the money system was already designed such that wealth consolidation is inevitable and very easy: banks create almost all the money in an economy, and they create it out of interest-bearing debt. Here is an excellent presentation on this by Ben Dyson (co-author of Modernising Money and co-founder of Positive Money)
    ttps://m.youtube.com/watch?v=JBZWw1DG8zU

      • michaelcoughlan

        Hi,

        This is an excellent link. It comes with a caveat though. To call the cash in your pocket or the deposits in your bank account money is a misnomer. They are in fact currency. The two became distinct when Nixon took America off the gold standard in 1971/72.

        I have been trying to lobby the forum to consider this idea in my more recent posts. For an item to function as a monetary asset it must be able to act as a store of value. Fiat currency doesn’t do this. Value only increases though legitimate wealth creating value added entrepreneurial activity. Dicking around with the currency supply when the real wealth creating economy is going through a normal short recession to “smooth out the curve” divorces the data from what’s really happening in the value added part of the economy.

        More perversely value can be acquired without having to do anything at all if you have no moral compunction about sending a marine division to a foreign country to occupy it and steal all the gold reserves from the country’s national bank vaults. This activity too divorces the data from whether wealth is or isn’t being created or “acquired”

        Michael.

        • zapit

          It’s true fiat “money” has no inherent value (unless you count the fact you need it to pay your taxes). But nevertheless it seems people do perceive it to have value, and it gets used in trades. Therefore banks controlling it’s supply is significant.

          I’m not an economist or financier, so I’d like to check: would I be naive to suggest that overt money creation (debt free) would be ok as long as it is in step with potential economic growth? And with banks only being able to lend what they have on deposit?

          • Pretty close, zapit. It is mathematically proven that it is not a requirement of a sound expanding economy to have an expanding money supply. The challenge is in having a money that is difficult to expand. That is why mankind gravitated to gold and silver rather than other substances as money.

            They are hard to increase as there is considerable time and investment required to do so.

            “And with banks only being able to lend what they have on deposit?” Agreed here. It is called banning the fractional reserve banking model which is fraudulent in design and operation but legalized. It is also the essence of capitalism. Investment in enterprise comes as a result of using profits saved.

  6. Wills

    Distillation of ideas tour de force right there!

    Very bleak outlook too, and unfortunately the reality of it!

    NAMA was a real sickener rubbing it in who is boss, running things and nothing you can do about it kinda attitude stamped all over its skullduggerous inception. And you now when the system has been hijacked by moneyed elites the banking system, policy and the media etc the jig is up for free enterprise in a general sense. Basically the free market system has been locked down like never before by whomever.

    Interestingly when one goes back even 30 years ago the futurists predicted the arrival of prosperity for all, abundant leisure time etc. And here we all circe 2015 and what do we have but people rushing to make a living, little leisure time and the opposite to the way things should’ve evolved.

    Very unsettling indeed.

  7. http://www.zerohedge.com/news/2015-09-20/going-back-what-works-gold-money-again-thanks-utah

    Re-paste of the link posted by Clare Leonard on previous thread. Thanks Clare
    A Practical use of an existing coin deposited and then used as electronic payment using a debit card system. It works.

  8. irishminx

    David, realistically, hasn’t this been the Elites policy for a century or two?!?

    Wipe out the middle class…………. that is their agenda, it’s no longer a hidden agenda.

  9. DB4545

    It’s in everyone’s interest that this can’t go on unchecked David and it can be summed up with a quaint little Spanish phrase.

    Plata O Plomo.

    This translates as silver or lead. Lead is what the poor use to get Silver or Gold. It’s a phrase used by the Latin American drug cartels meaning accept the bribe we’re offering you or accept the consequences. That’s how corruption has become endemic in the region. Unfortunately the targets of the offer fail to realise that they’ve usually only delayed the lead by accepting the silver. The result is societies with extremes of wealth and extremes of violence. The violence first swept through Columbia and has now moved on to Mexico and is encroaching on the US.

    When the poor but ambitious see few legitimate options they take alternative routes. We’re seeing an echo of that with the refugee crisis as the middle classes of the middle east have decided they’d like a slice of the EU pie. When Iran was toppled the middle classes made their wealth portable with Heroin devastating every major city in Europe with consequences to this day. It’ll be interesting to see how this new wave will convert their wealth. The next wave will be the real poor who won’t be slow to notice that the EU borders are meaningless. The poor have smartphones and laptops and tablets and are well able to google the shiny life that they think awaits them.

    Unless the rich start sharing a few crumbs of their wealth with silver the poor may decide to take it with lead.

  10. The commentary is inconsistent and in some regards inaccurate.

    You talk of the banks “giving ” free money. you talk of the QE as if it was free money. You talk of the central banks as if it were free money. Incorrect and totally misleading. It is loaned at interest.

    All this money is issued as a debt to be repaid. Central banks issue money from thin air to commercial banks. This is piled up and used as reserves.(In some cases the central bank money is at negative interest rates and the banks sit on the reserves doing nothing except earning the interest paid by the central banks for taking the loan. They have risk free income and need do nothing else to profit) Then using the fractional reserves operation the commercial banks lend multiples of of the reserves (10-30 times ) which are also conjured out of thin air. This money is lent to corporations, governments and individuals for various purposes.

    Recently, because there is so much money issued as debt the economy is saturated with it and interest rates are driven lower because of less and less demand for the debt. Why? It is called a debt trap. So much is borrowed that no more can be afforded. Economists call it a liquidity trap!!??

    Most of the new debt, that is borrowed, is now used to replace older debt that was at higher interest rates thus forestalling default by maintaining some liquidity. Still solvent but broke. Home owners have done it 2, 3 or four times to increase the mortgage to use the extra funds to pay off the credit card , buy a new car and go on vacation. Spending tomorrows income to enjoy today. The pigeons are coming home to roost.

    The way to not have debt is to remove the debt based money system we use. Adopt a money system that is stable and not easily enlarged. Adopt a system hard to debase the money.

    Many times in past history is recorded the results of the free money as described by David. It always results in inflation. It always results in poverty of the masses. It is always the result of abandonment of sound money. In the distant past it was done by debasement of the coin by filing, clipping or substitution of precious metal with base metals and, in the last 500 years, using paper to infinity.

    Corporations have used the cheap interest on the debt to buy back company shares thus creating a phony demand and driving up the stock prices (one way the cheap money have entered the stock market) . The balance sheet is impaired further with the extra debt but the stock prices are higher and the CEO earns a 6 or 7 figure performance bonus.

    This raises all stocks as large funds buy in on the up trends. Most of the shares of these funds are where the middle class are invested and so the middle class have gained wealth in this boom. Many are contentedly sitting there and seeing retirement assets grow and think the world is OK. Temporarily it is. Wait for the next drop, already started, to wipe most of them out.

    In the meantime few explain why there is this debt trap. Few explain it is an inherent part of the system, few explain how to change what is happening.

    Few point a finger at the central bankers themselves or the people who originated this arrangement and why. The solution is simple if difficult to achieve. Remove the central bankers from the money control they have. Return to sound money. All else is solved by that.

    You stop short of providing a solution, David. How do you propose to have it “not go unchecked indefinitely”?

    • McCawber

      Key Question or answer more like.
      If you remove the CBs, who or what do you replace them with.
      How was the Gold Standard maintained or protected or monitored or controlled. I don’t even know which word or if any of those words describe what I’m trying to ask.
      A vacuum is precursor to chaos. So remove the CBs and??????? WHAT

      • It depends on whether the system has already crashed or not.
        If not, there can be an orderly transition from debt based credit money to asset based money.
        The new money can be issued directly by the government, from treasury. All money issued by the central bank will be redeemed by the new treasury bills, one for one. As far as the government is concerned it can wipe out the national debt in this way. No national debt is the result. Therefore there will be no interest to pay on the national debt. Therefore the budget will run a surplus and so income taxes can be reduced or eliminated totally. (income taxes appeared ast the same time as the fiat Ponzi notes)

        This move requires having a national currency which is the first step to regaining national sovereignty. So, for Ireland, the EURO must be dumped. (do not tell me there is a law against this or you acknowledge that indeed there is NO national sovereignty remaining)

        Then we still have the problem of a government being able to produce money ad nauseam, like QE to infinity.

        The concurrent thing to do is repeal the legal tender laws and introduce direct competition to the currency. Then the people will be able to use any currency they wish in order to settle a transaction or trade. If the government debases the national currency then the people have the option to use any thing else in settlement. This will be an incentive to government to not debase the national currency.

        The assets backing this currency will be the assets of the nation. This includes the financial and human capital, the infrastructure and overall accumulated wealth.

        Finally there needs to be an acceptable method of settlement for international trade. Mostly it used to be adjusted periodically by transfer of gold. It could be again.
        For commerce there is the Real Bills Doctrine operated in the past very successfully. This involves the seller extending credit to the buyer for 91 days. This involves a bill of exchange and a bill of credit. If cash is required during the 91 day period then the seller goes to the bank lodges the credit note with the bank and the bank issues cash to the seller backed by the security. The total cash issued is discounted to the full amount which is the charge of the bank for the service. In the manufacturing process there are several stages. It may start with mining ore, smelting, processing, manufacturing parts, assembly, general distribution, wholesale to the retail customer who pays cash.
        The cash then circulates back through the stages to redeem all the bills of credit. It is a self liquidating system and requires little actual money.
        See Real bills doctrine –Antal Fekete

        http://www.professorfekete.com/

        In the meantime silver can be introduced as money in the manner as proposed by Hugo Salinas Price.

        http://www.gold-eagle.com/article/how-introduce-one-ounce-silver-libertad-coin-circulation-mexico

    • DB4545

      Tony Brogan

      You’ve made many convincing arguments about the money supply its debasement etc and the reasons why people should hold physical gold or silver. However that option is a luxury that is only available in relatively affluent societies.Do you really think you could physically secure whatever assets you hold if you were living in third world conditions?

      A few examples should suffice.Roving gangs of a particular social group operating in rural areas of this State had no moral difficulty forcing elderly people sit on cooker stoves and then threaten to switch the cooker on if they didn’t reveal the location of valuables. Do you think you’d be able to withstand that level of intimidation? I spoke to a young man who was brought up in a poor part of Cape Town. He witnessed another man being shot dead in front of him. The reason? The victim refused a request for a cigarette. The offended party simply pulled out a gun and shot him dead and then walked away with the cigarettes. The wealthy in South Africa now have to live in areas like Sandton which is effectively a heavily armed city State within Johannesburg. That’s what happens when the first world turns into the third world.

      In third world Countries or societies undergoing major social upheaval life becomes very cheap very fast. Do you think the people of Hungary are over reacting? People in fear don’t always have the luxury of behaving rationally. Societies are no different. If thousands of people arrived on our borders in the morning rioting to enter our State how would you expect our security services to act? How long do you think you’d be holding on to your Gold in those circumstances?

      • I’ll agree with some of this – Tony is dead right that David should address the nature of money and share his thoughts on it – after all it’s one of the most basic and important instruments in economics and the way that money is created/managed these days is nothing short of criminal.

        I don’t know why David hasn’t responded with a considered article up to now but he should. His wider readership in the Independent and or Sunday Business Post would really respond to such an examination of money in my opinion, especially with David’s ability to make his articiles so concise and accessible.

        Unfortunately, Tony’s other bugbear – gold, is nothing short of farcical and does him a great disservice. I don’t care how many tonnes of gold China has and it’s never going to be relevant to my life, or anyone else;s – ever. You are right DB in saying that gold is next to useless in a crisis – personally I’m going robbing and murdering if society ever breaks down and gold won’t save my neighbour.

        I don’t agree with your other references to Hungary etc, in terms of their justification for treating refugees like bags of shit – there is NO justification for that. They ARE most definitely over-reacting. I lived in Hungary for 5 years – there’s a lot of ignorant, xenophobic, racist arseholes there. Hungary has a history of being on the losing side, being losers and they like nothing better than seeing someone else in the losing role. The whole country is basically neurotic and I wouldn’t live there now for love nor money although I enjoyed my stint. Plan to visit again next summer haha.

      • When the rule of law evaporates anything can be stolen and anyone killed.

    • McCawber

      From a personal point of view a successful currency is all about trust.
      If I proffer a Euro to buy a bar of chocolate in a shop and the shopkeeper gives me that bar (priced at a Euro) then it means that he trusts that when he goes to the manufacturer that the manufacturer will accept that Euro from the shopkeeper and give him another bar + change (the shopkeeper’s profit).
      So what creates that trust and just as important what destroys that trust.
      Low inflation in aspect of commerce.
      Bubbles are indication that the controllers are not doing their job.
      Why do the controllers allow bubbles. how easy is it to stop bubbles. I suspect it is an ongoing battle.

  11. DB4545

    Hi Adam

    I agree with treating people decently and fairly and if you’ve seen any of my comments I have zero tolerance for racism and other base comments. There are plenty of those people here too as they exist in every society. But be under no illusion Adam when people feel that their identity is under threat the reaction can be extreme even if that fear isn’t always grounded in reality.Fear can push people to extremes.If they’re throwing missiles at your border police what will they do in your major cities?

    I looked at the crowd scenes from those
    videos and if you check yourself you’ll note the age and gender profile. Refugees looking for a place of safety don’t normally attack people who are in a position to help them. Look at the part of the world you’re in.Haitians are not rowing to every other Island in the caribbean despite their poverty because they know that it would be a waste of their time in terms of welfare or other aid on neighbouring Islands.

    Syrians are not rowing towards saudi arabia for the same reason.Europe is attractive for specific reasons and we both know that Adam.Europe has a history of peace for a couple of generations and and then it has a nasty habit of descending into barbarity.I saw the prelude to that in Yugoslavia. Europe is a continent of tribes and nation states. It might be nice if it were otherwise but to ignore that reality is to invite disaster.Again.

    • “Haitians are not rowing to every other Island in the caribbean despite their poverty”.

      ABSOLUTELY WRONG. Haitians are always arriving in other islands here in the Caribbean looking for a better life.

      I lived in Dominica for 5 years and it was a particular phenomenon there – the main reason being that French patois is spoken in both Haiti and Dominica so there is not much of a language barrier (although English is the main language in Dominica, not patois).

      These people know full well in advance of travelling that there is no welfare system in a country like Dominica – they just want to work and feed their families. So there goes the welfare immigrants argument straight out the window.

      As soon as they arrive in Dominica on the shores of small fishing villages (eg. Loubiere, Pointe Michel, Soufriere, Scotts Head, Vieille Case etc.) they head straight for the interior where they know (through communication from relatives who have already made the trip) that they will be employed as labourers on farms that are quite remote and where police and immigration don’t venture much.

      Their wages are an absolute pittance but the situation in Haiti is so bad, that even Dominica imports Haitians – meanwhile Dominicans are trying to emigrate to anywhere else in the world to improve their own meagre income. There’s always someone worse off that yourself.

      The Haitians live in wooden sheds or shacks out on the farms in Dominica – you don’t see them much, although sometimes I’d pick them up on the road when they are moving from one place to another – and no I’ve never been mugged or robbed by one – very gentle and unassuming people on the whole.

      We had one Haitian guy living in a shed in the back garden of a house we were taking care of (belonged to a relatively well off Dominican who was overseas) – closer to the main town (Roseau) – we never saw him. He was on a farm all day and came back under cover of darkness and straight into the shed to sleep, then back to the farm in the early hours.

      Not many get deported mind you, every one knows what is going on and they are filling a niche in the local economy. In summary, there’s tonnes of Haitians in Dominica, not to mention in neighbouring Martinique and Guadeloupe. I even meet the odd one here in Antigua although they stick out like a sore thumb. We get immigrants from Jamaica, Guyana and the Dominican Replublic here in Antigua – in droves.

      Just because it’s not on the news doesn’t mean it’s not happening.

      • Oh here’s a couple of facts which I completely overlooked as I has become so accustomed to them – I mentioned the ‘relatively well off Dominican who was overseas’ (we were looking after his house back in 2006) – what was his name? – Mr Nassief – from a Syrian family that has been in Dominica for 100 years.

        Now, tomorrow I am buying a second hand car here in Antigua – from a young entrepreneur – Mr Shahood – where’s he from originally? Syria. He’s been here 8 years and hasn’t left Antigua since the day he arrived (that’s hard you can get cabin fever if you don’t leave every now and then but he’s waiting on the paperwork for his Antiguan passport to come through). Mr Shahood speaks like a local, likes Antigua, has local friends, loves the girls etc. Plans to visit Homs next year if things quieten down.

        Both Mr Nassief in Dominica and Mr Shahood in Antigua have successfully integrated into Caribbean life. Mr. Nassief’s parents were born in the Caribbean, never mind him and they’ve built a good set of diverse businesses through hard work. Mr. Shahood on the other hand is a hustler, buying and selling cars on the street but always moving forwards and upwards.

        Neither of them give a flying fuck about Islamic fundamentalism and are no threat to anyone who doesn’t threaten them.

        Anyone who thinks that humans are fundamentally different from one corner of the globe to another is a fuckwit and should get out and mingle more. Good night.

        • DB4545

          Adam Byrne

          Well that’s where local knowledge is important and if I’m wrong in relation to Haiti I’ll defer to your expert knowledge of the region. However the circumstances you describe are not going to cause problems with the local population. Landless farm labourers arriving in those numbers and remaining invisible to the local population are not going to cause social disorder. Millions of people hitting the streets of major European cities absolutely will Adam.

          In relation to Syrians I have absolutely no doubt of the trading skills and business prowess of Syrians. I’ve just finished reading an account of the constant exodus of the Armenians, Greek Orthodox and Jewish communities from Aleppo since the fall of the Ottomans and the rise of the Ba’ath Party in Syria. The people of Syria and Lebanon have been traders since Phoenician times. They are well represented in financial communities worldwide.

          There is no fundamental difference between people. There is and always will be a constant battle between groups competing for scarce resources. The middle classes in any society have sharp elbows and are well able to articulate their views. Do you think they’re going to conveniently hand over their privileges to middle classes of the middle East? That’s without even factoring in the next wave of the poor. What would you do if you were living in dire circumstances in this region or Africa and you thought you had a fair shot at getting in to the EU based on the success of this wave of refugees?

          We could argue forever about potential causation. That’s a non issue. The issue is the danger of a possible catalyst for major disorder in the EU. This would apply to ANY group arriving in these numbers and in these circumstances. The facts regarding numbers are not being correctly reported. When I hear German protesters shouting “Resistance” in German cities alarm bells start ringing. And that’s without even factoring in the views of other major regional interests. If we haven’t got a coherent unified response to unarmed refugees what defence would the EU offer to an armed aggressor? Mother Angela has screwed up badly on this issue and we’re only at the start of it.

    • coldblow

      DB

      The start of this video, mainly in Swedish, is in English and well worth a look.

      https://www.youtube.com/watch?v=sMvogQmRuKI

      This is a Swedish Kurd, an economist called Timo Sasmandaji, who is critical of the Swedish immigration policy because it is not rational but is closer to a kind of secular religion. Among other points he says that immigrants have a very small chance of getting work and that of all those politicians who are most enthusiastic about the policy (practically all of them, from Left to Right) practically none of them live alongside the immigrants. This seems to be the case all over Western Europe and Scandinavia. I don’t know so much about the Med. Sweden is clearly the most far gone in the delusion.

      Later on a articulate and very puzzled young Arab talks about the housing shortage. ‘Didn’t they make any plans for this?’

      • DB4545

        coldblow

        Thanks for the link coldblow. Scary when a society that has imposed a PC culture on its Citizens not only wants to avoid causing offence but wants to wilfully ignore reality. An old pal lives in Stockholm (he moved there 28 years ago)and he doesn’t recognise the Country he moved to. Why would anyone want to collaborate in the genocide of their own culture?

        • coldblow

          I gave the video a ‘like’ but I thought hard about it first, not least because I don’t want to run the risk of some zealot tracking this down some time in the future and claiming that I am a ‘racist.’ I looked up Democracy Sweden to make sure that it was not a front for extremism. I learnt that they had for a while been banned from advertising in some national newspapers but that probably reflects more on the papers. It has a similar proportion of immigrant support as the other parties.

          Timo Sasmandaji, the Kurdish economist, makes some good points, including the fact that questioning the immigration policy is unthinkable for no better reason than that nobody in a respectable position does. If nobody else does it, the thinking goes, then the policy must be right. Yet these same respectable people (99% according to Sasmandaji) somehow never end up sharing housing or schools with the immigrants, who also find it very hard to get jobs. This is a big part of the problem everywhere. He claims that PC is a kind of substitute religion in a very secular society but, while its supporters sincerely *believe* in it they still don’t put it into practice.

          This is how you get universal support in England for comprehensive education, which has proved itself to be a disaster, but the politicians and liberal preachers won’t send their own children to the local comp. Michael Gove, the Education Minister, is a committed believer in comprehensivization but last year chose to send his daughter to Greycoats School, whose school uniform retailer is in Chelsea, which is a comprehensive in the same way that 10 Downing St is an inner city terraced house. He didn’t send her to the local comprehensive, one of the new ‘academies’ he has lavished so much praise on. Tony Blair sent his children to a faith school, which is a useful loophole if you want to appear pious and still get an excellent education.

          You can bet that our Irish liberal, multiculti preachers are no different.

          I visited Sweden a few times in my early twenties as a friend of mine from university was studying there. While it looked like a cleaner, neater version of England there was something very different about the place, and it wasn’t just how pretty the girls were. After a day he asked me, ‘Have you noticed it yet?’ I said I hadn’t. When he asked me the same question the following day I knew what he meant. Yet I always liked the country and found the people very likeable in their own odd way and it pains me to see it misgoverned by an intolerant dogma which few can, or choose to, or feel able to challenge.

          • DB4545

            coldblow

            It is truly bizarre. Scandinavia is by tradition Lutheran and the PC zealots are a perversion of the Lutheran and Protestant traditions of questioning, protest,doubt and challenge. This PC dogma is being imposed in a top down manner from Academia.

            It seems as if Western Universities are using largely unquestioned and untested trust in “science” and academic institutions as the basis for the legitimacy of political correctness. People used to have an unquestioning view of religion and look where that took us.They now attack any challenge to the PC dogma in an almost identical manner to the way religion attacked so called heretics in the past. The powerful and wealthy will always legitimise and claim legitimacy from groups that serve their interests like religion. An identical process has taken place with Academia.

            Trying to control the use of language and communication is just ridiculous and if taken seriously is beyond stupid. I can make up any amount of rules about how my dog should bark. My dog will continue to bark with my neighbour’s dog as he sees fit and if he meets him on the street he’ll negotiate how he interacts with him. Why do these assholes think they can impose the rules of language and communication in a top down way on human beings?

          • coldblow

            DB

            I agree with that.

            It is one of the greatest unsolved mysteries of our age where this strange new creed came from and how.

            Well, actually it clearly came out of America. Desmond Fennell in one of his books described the bizarre and labyrinthine rules governing how you could advertize for accommodation in Seattle. This was perhaps twenty years ago and is unlikely to have got better since. Nick Cohen, a leftist writer for the Observer (who I don’t agree with on most things) gave in his book ‘What’s Left?’ some hilarious examples of academy-speak. I don’t think it started with the invention of the word ‘paradigm’ but it got a lot worse after.

            And it is definitely top-down as you say. They have worked out by now that if they say it often enough, loud enough, the message will sink in. There have been some positive spin-offs, most notably the near-elimination of open, casual racialist speech, but at what a cost! Taken as a whole it doesn’t make sense, and like the EU they are making up the rules apace now. kicking (as it were) the can further down the street.

            Some people need things to make sense (like me) while others are happy to go with the flow. Question is, where exactly is the flow flowing? Some of this stuff can be rectified easily enough but other bits are possibly irreversible.

            As the Kurdish economist said, a man who talks common sense, Sweden isn’t the kind of country that will collapse. Instead it will just keep getting worse and worse, and that could go on for a long time. Like everyone, I don’t really care where people come from but non-sense is so depressing.

          • coldblow

            Just to add that if you listen to how they talk on the radio or the television it’s the people who are coming out with the conventional wisdom du jour (much of it unthinkable a handful of years ago and which would have shocked them as much as anyone else), it’s those people who are so relaxed and confident in front of the microcphone. And when they have finished they are warmly thanked for being so generous with their time.

            I listened to a debate on German radio yeasterday evening and it is clear that, the way they are thinking at the moment (assuming they mean what they say, which I wouldn’t be too sure about with the Germans) they are working on receiving large inflows of immigrants over the next few years. The man who was filling the seat of whoever was supposed to be challenging this confined his doubts to whether they would be able to process the applications quickly enough. I felt he wanted to expand his doubts a little more, but if he did, he certainly wasn’t going to risk saying it. He did say, however, that last weekend in Munich alone 12k new migrants arrived, I think he said each day.

            You can also be sure that they will want the rest of Europe to pull its weight. One of the panel, a female Green politician, bewailed the lack of European solidarity (we know all about that in Greece, Ireland and elsewhere) although someone pointed out that they had left the Italians and the Greeks cope all by themselves over the past few years. There have been so many fundamental questions raised over the past three weeks that it should keep historians in work for decades.

            They cannot possibly know what they are doing. I think people rely on the Germans to show good sense even if they themselves can’t, but that has changed.

          • DB4545

            coldblow

            The wheel turns coldblow but the PC brigade would probably re-invent Peig Sayers as a gaelic speaking black lesbian dwarf living ecologically on high welfare sustainably harvested seaweed on the Great Blasket islands with Caitlyn Jenner.And kids still wouldn’t pick up the book again the day after doing leaving cert Irish.

            It reminds me of the stupidity of Robinson Crusoe written by Daniel Defoe and published in 1719. The 18th century mindset thought that a large black man was going to somehow naturally accept being a white man’s servant on a remote tropical Island. The 21st century mindset fully understands that Robinson Crusoe is very likely to end up with a cap in his white ass if he tried that shit on one of the brothers today. We don’t need some asshole who’s read too many books for his or her own good to explain it to us. If I ran through the South Bronx or Dorset St. shouting the N-word I’m sure I’d be paying a visit to hospital shortly afterwards. I could complete a PhD in gender studies or feminist ideology but I’m still going to prefer to look at Portia de Rossi than listen to anything Germaine Greer has to say at the end of it. I can use the phrase “drunken paddy bastard” as much as I want but if certain individuals of specific National groups want to use it to abuse me they may be feel some discomfort for a while afterwards.

            People have enough common sense to negotiate their own way through life without interference by intelligent idiots.Why does anyone need some idiot with a tweed jacket and university tenure to explain reality to him? Human beings have being negotiating boundaries and relationships with each other long before some bored witless asshole in Harvard or Yale or Cambridge decided that they had some special insight or authority on the subject.

  12. CorkPlasticPaddy

    Couldn’t agree more with you, Adam!!
    We have plenty of fuckwits running the country back here in Ireland and we have even more fuckwits who keep on voting for them time after time after time! It makes me cringe to see those people who keep on going out and voting for the same idiots time after time, it’s just plain stupidity! Maybe after the General Election next year things might start to change, but somehow I doubt that this will happen unless the Irish electorate goes through a complete change of tune. It’s like the old adage of ‘Turkey’s voting for Christmas, if you want my humble opinion!

    • Hoggie

      @CorkPlasticPaddy
      Unfortunately the fuckwits do not learn anything. According to the latest RedC poll over 70% of voters are sticking with the usual gombeens FG/FF/SF/Lab. The next Government will be the same as the current one and the one before that, and the one before that………………………etc.

    • McCawber

      The amalgamation of Cork city and County Councils is the obvious way to go and yet look what happens they are taking the state to court to prevent it happening.
      Rhetorically – Whose money are they spending to finance this?

  13. “The typical buyer was a poor farmer in south India, for whom gold was an ancient currency and collateral to borrow against in bad times”

    http://www.economist.com/blogs/economist-explains/2013/11/economist-explains-11

  14. Clare Leonard

    Look at the distribution of wealth in 1929 and today –
    they are almost identical and capitalism cannot function
    unless you have a reasonable distribution of wealth.
    I say almost identical as the concentration of wealth today
    is greater than 1929.
    Expect the collapse to also be proportionally greater than 1929.
    Brace yourself, it cannot be avoided.
    The rich can only get richer when we (the people) allow them
    the monopoly to print so called money (fiat currency).
    We get paid for our work in their printed monopoly ponzi paper
    currency.
    Our savings and pension plans are nothing more than our stored
    labour . The Central Bank system the ECB and the Federal Reserve
    steal the purchasing power of our stored labour by mass producing their monopoly ponzi money.
    Most pension plans are worthless as a result.
    The Central Banking system is the corrupt curse of modern
    society. They are nothing more than the enforcers of bankers fraud.
    Do you wish to stop the robbery of your hard labour ??,
    all you have to do is remove their monopoly and establish
    a system similar to Utah.
    It really is that simple.
    Utah has little or no unemployment and they certainly do not ship 1 out of every 6 of their people to another country.
    http://www.zerohedge.com/news/2015-09-20/going-back-what-works-gold-money-again-thanks-utah

    Any volunteers??? .
    I bet you just like being mugged and robbed of your hard work.
    Happy elections !!!!! more of the same—————– .
    If you want equality you know what YOU must do..

  15. SLICKMICK

    Only Irish grads travel thousands of miles to clean dishes and toilets (illegally). You won’t find Brits, Frogs, Krauts, Canadians doing that type of work. IRELAND NEEDS TO PRODUCE FAR MORE GRADS. LOL. Third level staff need to retain their cushy numbers. Most school leavers wouldn’t touch a restaurant job in a billion years.
    Who wants to be treated like crap ?

  16. McCawber

    Maybe returning to the Gold standard isn’t such a good idea after all.
    Alchemy is possible after all.
    http://phys.org/news/2015-09-golden-silver-nanoparticle-gold.html

    • They will never be able to produce gold as cheaply as paper and digital money.
      If this a problem for gold as money then one has to agree that the current system is ludicrous. Our money created by others and loaned to us to use at a monthly charge and compounded. What kind of stupidity is this. Moronic I would venture. Totally incomprehensible to a sane logical person.

      There is nothing so persuasive as the big lie. It is inconceivable to most people that the money system could be so distorted and corrupted. Nobody can believe we have been suckered so long. Nobody can believe that such a gigantic Ponzi scheme can exist in the plain light of day.

      Nobody wants to believe that they have been had on such a scale.

      Well believe it. Now do something about it as Clare suggests. First thing is to spread the message to your family and friends. Only by the ballot box and using public pressure will anything change. So educate yourself and then all around you.

      The central bankers must go and there system destroyed. Either they destroy you or you them. It is not really a choice then is it. Either liberty or death is the real choice.

      • McCawber

        Tony before you can persuade anyone to your way of thinking you have to understand their way of thinking because that is what you have to change.
        You have to understand that most people don’t like change. Inertia is the enemy. The FED may even be a victim of inertia. They seem to be afraid to do anything for fear it will tip the whole system into chaos.
        From what you are saying they are damn right.
        Trust is the issue. The FED has to figure out a way to restore trust. Your answer is Gold.
        Let’s assume you are right.
        We are at A now, Gold is at Z.
        There are a lot of things that need to be done to restore the gold standard.
        I’ve said this before and I’ll repeat it.
        From a non financial individual’s point of view, if you don’t remove/fix all the things that are wrong with the financial system, returning to the Gold standard will be a waste of time.
        The number one precursor for me would be to start with spread betting on Gold, longing or shorting Gold etc etc etc.
        What you have to accept is that most people don’t know diddly squat about what CBs do. They trust that they know what they are doing and leave them to it and they are not interested either if we’re being honest.
        It’s not “The Big Lie”, it’s just another lie hidden among all the other lies and that’s why nobody sees it. Spread betting is a Big Lie, it’s gambling but the financial world will never call it that, why do the CBs allow people to gamble electronically on the price of gold (That doesn’t exist). Let them gamble (unleveraged) on a gold mining company’s stock and take the risks that go with that kind of investment.
        There is no quick easy wave a wand restore the Gold Standard fix.
        What is required, as a first step is, that the CBs accept that it is their responsibility to remove blatant gambling from the financial system and restore the financial system to what it is supposed to be doing.
        The global financial system is an online computer gambling system/game.
        That’s what the CBs need to tackle first.
        A little point to people and the financial system.
        There are hundreds of channels on the Sky platform.
        There are two main financial channels – CNBC and Bloomberg. You only need to lie to 2% of the population, the rest aren’t interested.
        The good news is if you can figure out how to communicate to those two % then…………
        Perhaps an orchestrated email campaign to those TV stations at various times might be something to consider
        I would certainly be on board for something like that.
        But the message can’t be a lecture, it has to be carefully constructed and subtle initially.
        you want to hide the message before you reveal it – ie the BIG TRUTH.
        You have to build momentum to overcome inertia.
        Apologies to all – I don’t like overly long posts and this one went on a little.

        • Sometimes I think you do not read what is said. the questions asked are already explained prior.

          Now you put the central bank fox in trust of the of the money henhouse.

          The problem is the CB to begin with so they will not clean up their own house. Get rid of them.

          • McCawber

            As I pointed out to you, 98% of the population or more don’t know what is going on and in their ignorance, they are quite blissful.
            The one thing that would make them sit up and take notice is if you fired the CBs, just like that.
            Therefore you first constrain the CBs to do your dirty work (ie clean up the mess they are in large part to blame for) and then you fire them.
            If you fire them at the start of the process, the very thing you sre (or should be) trying to prevent will happen and we will have meltdown.
            There is an analogy. I want to turn the poacher CBs into the gamekeepers.
            Your way of doing it will 100% guarantee a crash and make me a poor man along with all the other non rich.
            Why would I agree with that?
            The rich will survive and they’ll still be rich, maybe a little bruised but no more. They probably have their Gold stashed away already.
            My way might work if :-
            1. It’s done properly and
            2. We still have enough time.
            In any event it will at least be an attempt to unwind in an orderly fashion the damage done to the real commercial world, including you and me, resulting from screwball financial instruments like spreads etc.

        • The legislation that created the central banks gives then autonomy to do as they wish. They were given the nations’ wealth as custodian but will not allow an audit. There is suspicion that this wealth is spent and gone.

          Repealing the legislation is the only way to bring them, central bankers, under control. That means the need for a central bank is eliminated. We had a thriving economy before them, without them and will again without them. They are not reformable.

          • McCawber

            Change the legislation would appear to be the obvious solution.
            The politicians “invented” CBs to do their dirty work so they are not going to disband them.
            That’s just a fact of life and it’s not being defeatist.
            That means you have to find work arounds.
            There is dirty work to be done.
            All elements of gambling, in the gaming sense, need to be removed form the financial system but it needs to be done gradually.
            Change the law to empower/direct the CBs to manage the removal of gaming from the financial system starting with Gold and Silver but then gradually expanding into other areas of finance.
            Legislation is going to required whichever way you go with this.
            Even if you disband the CBs, the mess still has to be cleaned up.

  17. Maintain your buying power in the long term by saving silver in hand

    From lemetropolecafe.com

    Derek lays out the silver scenario extremely well…
    Silver

    Hi, Bill—
    The PM price managers are now in a really awkward pickle regarding silver. When faced with allowing the price of silver to rise, they’re damned if they do and damned if they don’t. Here’s why…

    We already know that silver shortages are developing around the globe. THEY know this too, of course. If they allow the price to rise in any significant way, they know they’ll simply add to an already intense silver buying frenzy, thus exacerbating the very shortage they have themselves created. Any real excitement in silver has got to be immediately squashed. Hence today’s smackdown as silver was nearing its next major resistance point of about $15.50. I felt almost certain this would happen today and sure enough it did. One problem they face, among others, is that millions of PM investors around the world have learned how to play the game. That is, instead of running for cover and fearing the all-powerful OZ, folks have simply learned to buy with both hands when these regular price whackings occur. They’ve figured out that the cabal is merely offering them the gift of a lifetime by creating these absurdly low silver prices, prices that, in most cases, are well below the few primary silver producers’ cost of production.

    Retail buyers now know this charade well, and every time these price smashings take place, retail buyers step up and load the truck. This, of course, makes the shortages even worse. On the other hand, if the criminals allow the price of silver to RISE to any meaningful extent, ironically the same phenomenon takes place (more intense buying) but now has the doubly damaging result (in the view of the cabal) of drawing exponentially more silver buyers into the market—the criminals’ worst nightmare. As I said, they’re damned if they do and damned if they don’t.

    But the crooks’ predicament is even worse than this. As we’re ALREADY SEEING, if they smash the silver price any further, silver dealers simply raise the premiums to offset their quite fixed cost of replacement. As mentioned the other day, APMEX, for example, is now charging a whopping $5+ premium on Silver Eagles, the number one go-to silver investment for many stackers. But even the premiums on bullion coins are rising. As dealers and primary producers alike have already told us, there is barely any investment silver available even at the $15 per ounce level. So it’s a no-brainer that there won’t be nearly a sufficient supply at prices BELOW $15. Silver investors are now in the process of learning that the “price” of silver quoted on sites like Kitco is really just a bogus posting. Why? Because there’s not a single ounce of investment grade silver available for anywhere near these artificial prices. You could say that silver premiums are now offsetting criminal price suppression.

    Thus, the psychopaths have boxed themselves in. For if they try to smash the silver price down further, they gain no additional benefit while proving to the world that the so-called COMEX silver price is meaningless and that silver cannot sell indefinitely at (or, in many cases, even below) its cost of production. Therefore, any lowering of the silver price is completely wasted effort, except to further fleece the idiots who were dumb enough to play the highly rigged casino by going long over at the CRIMEX.

    In short, buyers of physical silver at current price levels have NOTHING LEFT TO FEAR from lower COMEX prices. They know for sure now that dealers aren’t going to sell their silver at a loss and so they can know with absolute certainty that prices at silver dealers will not be dropping significantly from today’s levels. In a way, the criminals who control the silver market have painted themselves into a corner, and now millions of silver buyers around the planet can buy with certainty, knowing that any price declines will be quite temporary and in fact meaningless at the dealer level.

    In other words, silver buyers know that they’re buying at the bottom. And even if there are a couple of dollars to the downside, there remain perhaps hundreds of dollars to the upside (in a true hyperinflation the upside would be essentially unlimited). Where else on earth does one find this kind of spectacular risk/reward ratio!? This is a situation that comes around only rarely in the commodity markets. And even if the rumors about JP Morgan Chase buying several hundred million ounces of silver are true, it won’t do them much good when the day comes that they’re asked (ordered?) to sell some of their hoard into the marketplace to quell a buying frenzy. Even if they have, say, 350 million ounces, that’s about ONE lousy ounce for every man, woman, and child in the U.S.! And of course that completely ignores the rest of the earth’s investing population, at least several hundred million of whom will ABSOLUTELY become interested at some point soon in protecting their wealth from the fiat currency race to the bottom by purchasing hard assets, the most desired of which are gold and silver.

    I’ve said many times that silver, not gold, is really the Achilles heel of the PM cabal. And the end game is nearing, I think. They cannot hold back the tide forever. Something must give. I doubt it will be the resolve of silver investors, who have already endured investment hell over the past four years and have become, no doubt, the strongest hands in the silver market. Whether it be a few weeks or a few months, the silver cabal’s Waterloo fast approaches, and I predict that when the worldwide silverfest begins, almost all forms of physical silver will disappear from dealers’ shelves in a matter of hours—and it may be several years before the market reaches anything near equilibrium again.

    Finally, I predicted in “Midas” many years ago that the day will come when a silver contract won’t be worth anything near 5,000 ounces. I believe the facts above will guarantee that this change comes about, since the eventual price of silver will likely be many, many multiples of its present levels. I suppose time will tell…

    Anyhow, that’s my story and—for today, at least—I’m stickin’ to it. :)

    Kind regards as always.
    Derek

  18. *Interesting Snippets

    Dear Bill,
    There are two interesting snippets which I’ve picked up in the last few days which I thought might interest you. I was in touch with Alasdair Macleod of GoldMoney and he’s recently been speaking to his contacts at the refineries in Switzerland and they confirmed that demand from China is still very strong but sourcing is still an issue. Interestingly they are now seeing good amounts being shipped to Switzerland from the US for conversion into Kilobars destined for the Eastern markets. I was also listening to a recent interview with Dave Kranzler who maintained that the US shortage of retail silver is due to US silver being diverted to India and China to meet demand in these markets.

    If these accounts are true then London is effectively sold out of both gold and silver and the US (COMEX?) is now keeping the show on the road on its own.
    Best regards
    TW

    *Rocket Rich…

  19. *Mark O’Byrne…

    Keynes Would Be “Buying Gold Hand Over Fist” Today

    What Keynes would think of today’s “Neo-Keynesians”
    Unlike his acolytes, he understood the value of gold and the dangers of currency debasement
    Keynes did not desire “a world where currencies are backed by nothing more than a governmental promise to pay while the printing presses whirled unchecked”
    Keynes would have been puzzled that his theories are associated with aggressive currency debasement and a rabid hostility to gold”
    With “today’s economic vista of near-zero interest rates and quantitative easing, it is clear that he would be buying gold hand over fist …”

  20. Bo Polny checked in with us…
    September 22, 2015

    The US Dollar, Treasuries and Stock Market

    MELTDOWN in November 2015!

    Dear Bill,

    The GOOD and the BAD for Gold and Silver.

    The BAD news as you know, both Gold and Silver are down today with Gold down $8 at $1125 and Silver down $0.40 at $14.80 as I write.

    On Monday, September 14, 2015, based on our analysis, we bought Gold on the rumor of a rate increase. On Friday, September 18, 2015, based on our analysis, we sold the news into profits and furthermore we put on ‘paper’ short positions, expecting one file drop in the price on Gold and Silver into a specific date before the end of this month, September 2015.

    Therefore, the GOOD news is:

    This next and final September date and cycle low is expected to be the final entry point for years to come!

    This September entry point is expected to be the time point refer to by many as the point to ‘Backup the truck, unload all paper and buy every last ounce of Physical Gold and Silver one can afford’!

    This September time point is expected to be the last take down on Gold and Silver before the inevitable and long-awaited short squeeze finally begins in October. For those expecting new lows for Gold, that’s not going to happen; and those waiting for $1000 or lower Gold, are about to miss the boat completely and will be stuck chasing higher prices.

    Remember our email of last week of September 17, 2015 sent out just after the FOMC announcement of NO RATE CHARGE, we stated…

    ‘Unfortunately based on short term cycle analysis, one final price reversal is still in the cards BEFORE the excitement is expected to begin. Therefore, expect this rally to fail next week and back down we go again!’

    Well, today we are experiencing the ‘back down we go again’

  21. 21 September 2015

    Gold Daily and Silver Weekly Charts – IMF: ‘Gold Only Financial Asset With No Counterparty Liability’

    http://3.bp.blogspot.com/-8Ppo4Rk3bfo/VgCJdoh8T5I/AAAAAAABDg8/38mFzQqL7fY/s1600/Screen-Shot-2015-09-18-at-7.52.17-pm.png

    “The IMF has put Monetary gold right at the top of the global reserve assets list – above SDRs. The IMF writes, ‘…The gold bullion component of monetary gold is the only case of a financial asset with no counterpart liability.’”

  22. “The former Tanzanian President Julius Nyerere, who was angered that debt-ridden African states were forced to hand over their sovereignty to the IMF (and World Bank), once asked: ‘Who elected the IMF to be the ministry of finance for every country in the world?‘ And now the Chinese have openly asked for a ‘new world wide central bank‘.

    http://jessescrossroadscafe.blogspot.ca/2015/09/notes-from-currency-war-that-few.html

  23. coldblow

    You need go no further than many of the comments on this thread, and elsewhere on the blog, to conclude that this lamentable state of affairs where a privileged few are licensed to loot the nation’s wealth, can only be explained by psychology (or psychiatry). It forms part of a familiar pattern (or one that should be familiar) in which all kinds of weird and exotic beliefs which defy reason or common sense become conventional wisdom simply because others believe them. There is ultimately no safety in numbers.

  24. DB4545

    coldblow

    It was never any different coldblow. Christ and Caesar have worked hand in glove to claim legitimacy and authority for their actions for as long as people have bowed to the authority of institutions. That’s a central defining feature of social control.People fought each other in this State less than a 100 years ago because they no longer accepted that the UK was a legitimate authority to organise their society. They then handed over their hard won freedom to a religious authority which was just as undemocratic. The people in the North have just found out that they’re governed by a bunch of thieves as well. It doesn’t really matter if NAMA or Ansbacher is the vehicle used for the theft. It’s still theft.

    It doesn’t really matter what or where that institution is located. That’s why institutions have to be dismantled on a regular basis. The only safety is in constant creative destruction. I think David has done the people of this State some service AGAIN with his recent program. It really is time for people to heed the information and act on it. Until people accept that THEY are their only legitimate authority and they are under no legal or moral obligation to kneel down to a President Queen or Pope we won’t get anywhere as a society.

    The only ultimate safety is recognising that YOU are your own leader.

    • “Christ and Caesar have worked hand in glove to claim legitimacy and authority for their actions for as long as people have bowed to the authority of institutions”

      It is a bit difficult to blame Christ for all the corruption and deprivations of organized religion that occurred afterwards. No inquisition. I do not see him advocating either Pope or priest in any readings from the gospels. No edifices or glorious gold clad buildings either. He did not even like the money changers in the temple and opposed usury!! (just keeping the commentary within the economic realm :) )

      • DB4545

        Tony Brogan

        We’re probably both off on a tangent here Tony but the reference I believe is from James Joyce. The Christ and Caesar he appeared to reference was Religion and the State colluding against the individual to control society in favour of both their vested interests. I feel some corporations and some academic institutions have colluded in the same way for the same age old reasons.

        One party gets sheckels and the other gets legitimacy. It’s similar to the relationship between prostitutes and clients one can’t exist without the other. I hasten to add that I hold the people who provide such services in the highest moral regard as they provide a vital and undervalued public service.The same can’t be said about some of our academic and corporate institutions.

        • The collusion is enabled by the central bank money . Forwarded to the preferred, used as a deposit anf them multiplied an hundred fold with fraction reserve banking. Major beneficiaries of the money fund foundations where the brightest and best are offered scolorships and then jobs. BUT they must repeat what they are taught. The government, corporate agenda.

          Perfect melding of the two results in pure fascism. That is what we are governed by. Call it crony capitalism, nepotism or any other ism. All the corruption starts with the control of the money system. It distorts the markets, creates imbalances, malinvestment, lack of moral behavior, lack of regulatory enforcement, In general amoral behavior degenerating to pure evil and corruption.

          No society can withstand this and will disintegrate.

          Not to mention the wars and lies and deceit used to advocate the “democracies ” spread of the electoral “good news” transported with the bombs and tanks and armies. All funded. Creation of liberation fighters morphing into terrorists and back again. All this evil funded.

          Resulting in havoc and destruction and millions of refugees. They now flood into Europe , reminiscent of the Germanic tribes flooding into Europe c 450 AD and adding to the final fall of the Roman Empire.

          Alaric said his terms were to take all valuables of the Romans. The Romans who were still living in denial, were aghast.”But we would be left with nothing”!!

          Alaric. “yes you will. Your lives!”

          This is coming to Western Society if we do not wake up.

  25. Russia says thank you to the West for imposing sanctions as it has enabled a closer relationship with China.

    http://www.themoscowtimes.com/news/article/russia-china-alliance-could-launch-new-world-order/523711.html

  26. Deutsche bank is in major trouble with trillions of derivatives. Also fines for criminal activity in fiddling along with other banks the Libor interest rates.
    Huge ramifications for Europe are present.

    http://theeconomiccollapseblog.com/archives/there-are-indications-that-a-major-financial-event-in-germany-could-be-imminent

    • McCawber

      You see what I mean about the need to put an end to all this gaming nonsense.
      As most people posting here will be well aware, when you sign up to an online trading platform, you are immediately bombarded with bumpf on how to get into derivatives and such like. The magic word, leveraging, gets an airing too.
      Fools and their money etc…And before you say it I know, the taxpayer ultimately gets stung for it. 98%, at least, of us fools, don’t even suspect it.
      Ireland’s crash in a significant part came down to (or was made a lot worse) Quinn buying CFDs for Anglo share.
      He broke Buffet’s, professed, golden rule.
      If I don’t understand, I don’t buy it.

  27. http://campaign.r20.constantcontact.com/render?ca=8443573c-1d9b-4589-b443-a7c730c0656b&c=877a32b0-427b-11e3-ad08-d4ae52a45a09&ch=8905dbc0-427b-11e3-ad3c-d4ae52a45a09

    Take your pick of a selection of essays.

    Helicopter money is on its way. QE has not and cannot work. Soon will be direct distribution of money to government for infrastructure and or direct injection of money to your bank account.
    Then negative interest rates on all savings will encourage you to remove cash from all bank accounts.
    Then cash will abolished and all money will be electronic so that the only way you can use it is to pay debt or spend it.
    Then all economic activity will be controlled by central authorities.

    Then we all revert to Black Market trade and local currency.


    To review, the process of financial repression has three steps:
    Step 1: Governments get into trouble by borrowing too much.

    Step 2: Rather than pay this down honestly via cutting spending (unpopular) or by defaulting (even more unpopular), the government conspires with the central bank to slowly liquidate the stack of obligations by forcing negative real interest rates on everyone.

    Step 2(b): Hang on one second…it wouldn’t work if people could dodge the Financial Repression, so a ring fence has to be built out of capital controls. So explicit rate caps are placed on and across the whole spectrum of interest-bearing securities.

    Step 3: Sit back and wait for everyone with savings to contribute their purchasing power to those who issued the debts, be those public or private entities.
    Obviously, we have to add something to Step 2(b), which is to ‘eliminate cash.’
    The funny part of the above article comes later on in the same piece, when the BoE correctly identifies the main culprits for weak spending:

    Bank research has determined that slowing growth, ageing populations, weaker investment, rising inequality and a savings glut in emerging markets have all contributed to a generational decline in interest rates.

    I say ‘funny’ because their conclusion to the constellation of predicaments and past policy failures that we are now facing is that somehow punishing all the savers out there even more is the right policy response.”

  28. “”Within the structure of a central bank counter-party paper Ponzi, central banks are trapped into a future of negative interest rates and the end of capitalism.

    For capitalism to work there must be a return on capital and no amount of counterfeited money or easing can re-engineer the tragic collapse of a financial house of cards built on a pyramid of unpayable leverage or prevent gold from being independent money!”"

    http://www.goldcore.com/us/gold-blog/fed-central-banks-trapped-gold-foundation-of-exters-pyramid/

  29. Money
    Money is defined as any good that can be used in exchange for other goods and services and as payment of debt. It has to be a tangible asset to be a sound unit of measure to value other goods and services, to act as a stable unit of exchange and to provide a lasting store of value that can protect wealth.

    Counter-party money is someone else’s liability, it is the liability owed to the issuing central bank and it has no value apart from a legal stipulation that prevents real money from being used in competition.

    Gold
    Gold has natural physical wealth and real value. Gold does not have a national currency or a state boundary and serves people equally every place in the world. Gold, when used as independent money, prevents the central banks from their destructive false counter-party claim to exclusively control and centrally plan the nation’s’ economy. Gold cannot be printed into existence so it does not have the artificial risks that come from using the central bank’s Ponzi of counterparty paper finance. Gold is the peoples’ real wealth that protects them from corrupt government and financial institutions. Gold is the money that cannot go broke. For several thousands of years every country in the world has used gold or silver to guarantee the independence and value of their currencies.

    The gold held in the nation’s treasury belongs exclusively to its citizens. When used as the backing for their currency it has the physics of real wealth to properly fund their enterprise, it is a reliable physical unit of value to be used in the exchange of their goods and services, it has an indestructible lasting store of real value that safely protects their wealth for generations to come and ensures the stable progressive economic health of their nation.

    http://www.goldcore.com/uk/gold-blog/einstein-physics-gold-and-the-formula-to-end-economic-decay/

    http://www.thetibetansecretblogspot.com/

  30. mike flannelly

    As prices recover means – when firesale prices return to REAL VALUE based on real value to income or rent ratio. Buying at real value is not a major problem for Irish people.
    Profits made from selling previous firesales that returned to real value are just a measure of the upfront losses for customers inflicted by Irish Banks.

    If prices recover to levels above real value then this is NOT A RECOVERY but “A RETURN”.There is a lot of bankers,media and political pressure for A RETURN. I cant see Broke Irish Banks lending to Irish buyers for such profits though.
    Having said that, we do still have the very same bankers from 2007 making banking decisions.
    SCARY.

  31. redriversix

    The rich & powerful have been fuckin over every one else for years and will continue to do so .

    The destruction of the middle class , the criminalization of the working class & the unemployed.

    The feeding of bigotry & turning neighbour against neighbour through strategic defaulters or because you may be on welfare , a benefit you paid for through taxation.

    I can’t eat Gold or Silver & if I can afford to buy it then I don’t have the problems I thought I had so I don’t need it.!!

    What I need is shelter , food , security & ways to protect my family.

    Cash is king today..end of.
    Tomorrow it may be a Shotgun or a big fuckin stick ..but today it’s cash.

    Any talk of markets etc etc etc is wasted as the markets are so manipulated you’d think it was a Catholic schoolboy raised on fear & selfloathing.

    I travel all over Europe now , working & sleeping in my van to try & earn money and the stories we see in Ireland today are replayed in every Country I have been to , bank problems , social problems , health problems etc etc etc…

    Debt is the 21st Century version of slavery…and it has worked a treat…Most people do not want to know what the truth is or at least my perceptions of the truth….

    Maybe every generation thinks the next generation is gonna be the last generation because they are too soft , too ignorant , too interested in crap. .?

    Dunno….??

    Take care of your self , your family and if you can do that maybe you can help one other person.

    Stay away from Banks…They are like crack dealers standing outside universities preying on the vulnerable with images of the shiny shiny things you can buy if you just sign here…

    “Cmon dog. .just do it man…just do it”

    • michaelcoughlan

      Hi,

      Your style of writing is so superb with such jump off the page humanity I will send you in advance 100 Euros for the first copy of a book on your experiences past and present and what you are witnessing right now on your travels in Europe. I mean it. Start with a blog. Monetize the blog by linking to books which may be of interested to people who follow your blog.

      I mean what I am saying re the 100 euros. Chronicle the decay you are witnessing.

      Most sincerely,

      Michael.

    • coldblow

      “a Catholic schoolboy raised on fear and self-loathing”

      I was a Catholic schoolboy and I don’t loathe myself, but everyone else seems to!

    • McCawber

      In Utopia, money will not exist, there will be no need for it.
      Individuals will still be able to garden, cook their own food etc, if they still want to.
      In Utopia you will be able to design your own wine should you wish.
      It’s up to you and your imagination.

  32. [...] the Incompetent Incumbents. Their brand of Trickle Down Economics has given us the fastest growing wealth inequality in the western world. They have the societal vision of Goldman Sachs. And you can forget about the [...]

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