Category: Deviant Investor

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Deviant Investor: Ready for Barter & Trade

http://deviantinvestor.com/9083/ready-for-barter-trade/

Guest Post from Clint Siegner, Money Metals Exchange

Let’s start with this fact; fiat (paper) currencies die – often spectacularly. That is why precious metals may someday be needed for barter and trade. Anyone who thinks it is silly to worry about such a thing is putting blind faith in Federal Reserve Notes.

MD: Fiat is a derogatory term, usually used by gold bugs who think precious metals are “sound” money. It is a slur against “real” money created by traders and used in a Medium of Exchange (MOE) process. The slur is valid for “improper” MOE processes (the only ones which currently exist in the wild … or anywhere for that matter) but it is totally invalid when referring to a “proper” MOE process as described here at Money Delusions. This opening comment is an overt admission that precious metals are not money …. but rather are something that must be resorted to when money fails.

The U.S. dollar is having a great run, no question. It will soon be 50 years since Nixon closed the gold window, thereby converting the dollar to a purely fiat currency. Five decades is longer than most purely fiat currencies survive.

MD: This is so silly. It implies that the dollar was not a fiat currency before it was proven to be (i.e. the myth that was there all along that it was backed by precious metals was exposed). The dollar has been fiat currency since its inception … and there’s nothing wrong with that. It is improper MOE processes that don’t survive. Try a proper one and it “will” survive.

Humans carry a normalcy bias. That helps explain why so many assume the unbacked Federal Reserve Note, which has served so long as our currency, will continue to serve in the future.

MD: Humans are traders. They know money for what it is … i.e. an in-process promise to complete a trade over time and space. Some create it themselves (e.g. when you buy a car with 60 monthly payments). Most just use it as the most common object in every simple barter exchange.

If you test that assumption, it quickly gets hard to defend.

MD: Nonsense. The so-called “backed” coins were removed from circulation at the beginning of 1965. Before that they contained 90% silver. After that they were just worthless tokens. If the “backing” had anything to do with their use as money, the new worthless tokens would not have traded for anything. The same is true when they took the myth “Silver Certificate” off the paper currency and replaced it with the true “Federal Reserve Note”. Nothing changed as far as traders were concerned.

Point to the exponential growth in U.S. debt, the unrestrained government spending throughout both Republican and Democratic administrations, and the extraordinary monetary policies of the Fed (particularly in the past decade) and reasonable people should acknowledge that the reign of “king dollar” is unlikely to last forever.

MD: The US debt has been exponentially increasing from the very beginning. It is the nature of any exponential curve, that in its early existence it looks flat. That’s because it early rate of increase is swamped by the scaling needed to accommodate the later rates driven by the exponent. Our money has exhibited about a 4% inflation rate for all time. It is what has funded our government. All taxes have been absorbed in paying tribute to the money changers who instituted that government.

Most people don’t know the first thing about the dark history of fiat currencies around the world. Governments use them to borrow and print without limits. Suffer no delusions – fiat currencies were invented for precisely that purpose. The gold in the treasury has never been sufficient for the wars, social programs, and graft which are the hallmarks of a growing government.

MD: Most people don’t care. People using money are traders. With a proper MOE process, so-called investors (and also savers) would use money to hold their wealth until they were ready to dispose of it. With an objective of a 2% annual leak, and a realized 4% annual leak, this doesn’t work. But for most trades (which are hand to mouth) it’s undetectable. You just instituted an increase in “minimum wage” every now and then to make people think they are keeping up.

America is no exception. Nixon slammed the gold window shut because nations – France in particular – saw the U.S. spending beyond its means and devaluing the dollar. So, our trading partners began swapping dollars for bullion. In order to stop the hemorrhaging of U.S. gold reserves, Nixon reneged on the commitment to redeem Federal Reserve Notes in gold.

MD: Actually France called the USA bluff. When Nixon “slammed the gold window” he removed the myth that the dollar was worth 1/35th an ounce of gold. In the real world it was trading for about 1/70th an ounce of gold. The French decided their would rather have their debts repaid at the rate they were incurred rather than the fraudulent rate the USA government was claiming. If a proper MOE process had been in place, and the money was in units of HULs (Hours of Unskilled Labor), this would not have happened. It is prima-facie evidence that gold is not money and can’t be used to back money. There’s only one ounce of it per human on earth … now about $2,000 … chump change.

Honest money in the form of gold, or currency redeemable in gold, imposes restraints that no expansionist government can abide – ours included.

The chart showing the growth of our national debt since Nixon broke the last remaining tie between the dollar and gold is hard to refute.

170801A

MD: These charts never show inflation from 1913 to 1970 … or from 1787 to 1913. The same rate of inflation is there, but just as this curve looks flat on the left, it would look flat if plotted all the way back to 1787. If the plot was honest it would have a log scale on the vertical and would appear as a straight line. Nothing happened in 1970.

Whether or not the federal government can be trusted to make good on its commitments over time is a serious question.

MD: There is no question at all. It will continue to inflate at 4%. That’s how it is funded. That’s how it will always be funded. Institute a “proper” MOE process and that funding becomes impossible. This is because a proper process “guarantees” zero inflation. Governments everywhere would have to resort to taxes for their funding and existence … and that means the banks would no longer get “tribute” (i.e. interest) from them. The governments and banks as we know them would cease to exist … and that would be a good thing.

It would be silly not to prepare for a collapse in confidence, and, by extension, a collapse in the dollar. And nobody should wait. Currency crises through history catch most people by surprise, then it is too late to prepare.

MD: No preparation is feasible. Look at Weimar Germany, Zimbabwe,  and now Venezuela for what happens … whether you prepare or not. It would be better to institute a proper and competitive MOE process and let it be the governments and banks problem, and not the trader’s problem.

Governments are like the Ernest Hemingway character:

“How did you go bankrupt?”
“Two ways. Gradually, then suddenly.”

History is full of nations and currencies rolling slowly downhill for a while, then plummeting over the cliff.

You can show naysayers a picture of the recent hyperinflation in Venezuela:

MD: And it looks real dramatic. It’s like plotting an explosion after a pile of rags has been smoldering from spontaneous combustion for a long time.

Venezuelans who entered 2016 with all of their savings in bolivars probably didn’t know it, but they were in serious trouble. Within weeks they would be searching for scarce food with nothing to exchange but devalued banknotes – slips of paper which merchants suddenly loathed.

The above chart is based on “official” data from the Venezuelan central bank. The reality is even worse.

MD: Read “When Money Dies” by Adam Ferguson. Ponzi schemes have existed forever … even before Ponzi. You don’t have to tolerate. For darn sure you don’t have to “constitutionalize” them as we have done in the USA. And you won’t improve things at all by strangling traders with the nonsense that precious metals are money.

Grocers can’t keep enough food on the shelves because suppliers don’t want bolivars. Instead, much of the food is bought and sold in black and grey markets where people offer something more compelling in exchange.

Once lost, it is extraordinarily hard to restore confidence.

MD: Read the history. Weimar Germany was well on its way to forgetting about how it had been screwed by its elite within a year of the collapse. And it started all over again. Stupidity is pretty hard to eradicate. Replacing stupid with stupid (in this case declaring precious metal to money by edict) just moves the problem around.

The Venezuelan government, and their bolivar, are struggling to maintain any sort of legitimacy. Total collapse is all but assured.

Granted, the USA is not Venezuela. Our dollar is the world’s reserve currency and the U.S. is much larger and wealthier than that South American nation. But much of the difference boils down to scale and timing. Venezuela is simply ahead of the U.S. on the same road to national bankruptcy.

MD: The USA “is” Venezuela. The USA covertly caused this collapse of Venezuela. It was precipitated by Venezuela taking over the oil companies. The ultimate result was predictable. What they should have done is just charged them higher rates for their leases.

Absent a course correction, there is little reason to think we won’t arrive at the same destination – hyperinflation and disorder.

It is possible America can make reforms before it is too late. But even those who are optimistic about President Trump enacting change for the better, must admit it is very unlikely that he will ever get Congress to cooperate. And it is that august body which is responsible for spending and debt.

MD: The proper reform is found in instituted a “proper” MOE process to compete with the government process (i.e. dollar) we now use. It will drive the dollar out of existence. The government isn’t going to take the removal of their cash cow lightly. The solution is in education. The people need to be taught about a proper MOE process and its attributes: Zero inflation; zero interest to responsible traders; unrestrained media supply; removal of all monetary controls (and manipulation). The real problem is getting this knowledge into general circulation. This will neuter government and bank efforts to make it illegal. Nonsense from articles like this one is not helpful.

Federal debt and entitlement obligations have kept growing, regardless of which party is in control.

If the U.S. returns to honest money and limited government BEFORE a crisis, it may be the first nation in history to do so. Anybody who doesn’t like those odds would be wise to hold some gold and silver for a handful of good reasons. Having something to barter with is certainly one of them.

MD: “Returns to honest money”? When did it ever have anything different than the money we have now. Answer: Never. It’s just time to institute a “proper” MOE process. It has nothing to do with honest. It has to do with transparency and plain old common sense.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

Thanks to Money Metals Exchange

Gary Christenson

The Deviant Investor

MD: No thanks from Money Delusions. You don’t fight nonsense with nonsense.

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Deviant Investor: Debt Ceiling Delusions and Dollar Difficulties

Debt Ceiling Delusions and Dollar Difficulties

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Read:  Harvey, Irma, Gold and Bad Options

MD: Notice that  Deviant Investor represents himself as a “non-traditional perspective”. And then he rejects us in moderation for being “unorthodox”. Go figure.

Here at MD we have no illusion about what money is. We see all governments as just traders. And we see all governments for the irresponsible traders that they are … they never deliver on their money creating trading promises … they just roll them over … and that’s just plain counterfeiting.

Now let’s point out where the Deviant Investor just plain “doesn’t get it”!

 

Guest Post from Clint Siegner, Money Metals Exchange

Those who paid any attention to the financial press last week saw the following narrative; President Donald Trump betrayed Republicans by cutting a deal with Democrats Nancy Pelosi and Charles Schumer. They agreed to punt on the borrowing cap until December and spend $15 billion for hurricane relief.

MD: So what? The borrowing cap is an illusion. It does not exist in practicality. Every time they pretend it does, it results in a paid holiday for government workers … and them moves right on up.

Americans are supposed to conclude that Trump is flip-flopping, and that Republicans aren’t responsible. Dig just a little, and you’ll find only one of those things is true.

Trump is flip-flopping, no question about that. The president campaigned on promises to honor the borrowing limit. This tweet from 2013 is what candidate Trump had to say on the matter: “I cannot believe the Republicans are extending the debt ceiling — I am a Republican & I am embarrassed!”

MD: Man is this guy deluded! He’s recognizing Republicans (presumably in contrast to Democrats), admitting to be one, and is embarrassed by what Trump is and does? Surely he jests!

But any implication that Republican leaders in Congress actually oppose more borrowing is patently false. Republicans in Congress overwhelmingly supported the deal. It was passed in the House with a vote of 316 to 90. The Senate voted 80 to 17.

MD: Leaving me with “Trump is Flip Flopping” is the truthful statement?

Some who voted in opposition likely only did so for the sake of appearances. Others thought the president and Democrats did not go far enough. GOP leaders Paul Ryan and Mitch McConnell wanted a deal to suspend the borrowing cap for much longer than the 3 months they got.

Make no mistake – lots of Republicans share the commitment to unlimited borrowing with the President and Democrats.

MD: I agree. They should have unlimited “money creation” privileges as should all traders (within principled reason … you shouldn’t be able to create money to build a General Motors from scratch). But, as with all irresponsible traders, they should have an interest load commensurate with their propensity to default. In their case, that is 100%. Therefore, they effectively cannot create money (the borrowing metaphor is a fiction). Institute a proper MOE process in competition with theirs, and the debt ceiling no longer moves in any direction but down … until they prove themselves to be responsible traders … which of course they never will do.

At least the currency markets seem to have gotten it right. Last week’s decline in the dollar may be a recognition the debt ceiling – the final pretense of borrowing restraint – will soon be going away. The sooner investors at large arrive at this conclusion, the better it will likely be for owners of hard assets.

MD: With a proper MOE process (i.e. real money) there is no such thing as a “currency market”. The “real” money (best denominated in HULs … Hours of Unskilled Labor” never declines or increases. In a proper MOE process, money is every bit as hard as gold (but easier to trade with). Gold isn’t money at all … and never has been. It’s just a clumsy and expensive and inefficient stand-in for real money … it’s just stuff like cement blocks are stuff.

 

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

Thanks to Clint Siegner

 

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Deviant Investor: War on Cash Backfires

War on Cash Backfires

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Guest Post from Clint Siegner, Money Metals Exchange

Indian Prime Minister Narendra Modi launched a surprise attack on cash in late 2016. He gave Indians a few days to convert the two largest denomination bills then circulating to bank deposits, after which point any undeposited notes would become worthless. The move was intensely controversial. Transactions completed using cash represented the vast majority of economic activity in the country.  [Editor: See note below!]

MD: When looking at individual transactions, cash represents the majority of economic activity in any country. When you’re talking about “real” money, “all” transactions are in cash. And all cash transactions are totally anonymous. This is different than saying “money creation” is anonymous. With “real” money, “all” money creation is transparent. This means anyone can see who is creating the money and under what terms and how they are performing on delivering on those terms. And they can see this is real time.

In order to sell the program Modi employed a familiar strategy. He vilified the users of cash as tax cheats and criminals. He promised the measure would punish black marketeers, boost the Indian economy, and increase tax revenues. The latter may be true – forcing transactions onto the grid is good for nosy bureaucrats trying to impose taxes and controls.

But it now appears Modi’s claims about the amount of criminal activity tied to cash and promises of economic growth were nonsense.

 

The official argument was that cash is an indispensable tool for black marketeers. The reform would catch many of these “criminals” with piles of cash they would be unwilling to declare and deposit. That argument fell apart last week when the Indian central bank reported that 99% of the outlawed bills were converted to deposits. Turns out very few “criminals” were punished.

MD: So, did they reverse the policy?

Meanwhile the Indian economy is paying the price. Growth has slowed significantly and some estimate as many as 5 million jobs have been destroyed by the demonetization of cash. More and more Indians are angry.

MD: Why would that be? What transactions that were being done in large denominations quit being done altogether?

They didn’t enjoy the upside promised by Modi. Instead, they suffered massive economic disruption and loss of privacy. Perhaps India’s experience will provide an object lesson elsewhere in the world where bankers and the political elite are waging a similar war on cash.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

Thanks to Clint Siegner, Money Metals Exchange

Note: Voltaire understood the process over two centuries ago. He said, “Paper money eventually returns to its intrinsic value – zero.” (Voltaire, 1694-1778)

MD: And that is correct. It’s only money when the promised delivery is in process. On delivery, the money is returned and destroyed.  And during the delivery process, the money itself never has intrinsic value. It doesn’t need it … just like 1965 when we proved that coins didn’t need silver content to be useful to traders. So what?

Unbacked debt based fiat currencies (dollars, euros, pounds and most others) that possess no intrinsic value are devalued by central bankers and governments.

MD: This is nonsense. When you know what money is, you know “all” money is “fiat” … and that is no issue at all. Governments counterfeit money. They don’t create it with a trading promise on which they intend to deliver. And counterfeit money is obviously not real money and is not tolerated at all in a proper MOE process.

And with “real” money there is no such thing as a central bank. There is no need for one. And with “real” money, the value of the money itself never changes. That is guaranteed by the process itself … a process that maintains perpetual perfect balance between supply and demand for the money itself.

With “real” money, the ideal unit of measure is the HUL (Hour of Unskilled Labor). This unit (like the ounce … and unlike the ounce of gold) has never changed over all time. It has always traded for the same size hole in the ground.

They do it because it benefits the political and financial elite and appears beneficial in the short-term. History shows the supposed benefits of devaluation are nonsense, but they keep trying…..

MD: And they couldn’t keep trying with a “proper” MOE process and “real” money. The process would exclude them from the playing field with its natural negative feedback system … i.e. mitigating defaults immediately with interest collections of like amount.

Fiat paper money and political power do not mix well. The people — not the political or financial elite — pay the price.

MD: Counterfeiting and political power are a “natural” mix. And it is correct: counterfeiting results in inflation … and that hurts responsible traders. The problem is not in the “fiat”ness of the money … it’s in the counterfeiting by the governments.

It has happened before and will happen again. Gold and silver are good alternatives to devaluations by governments and central bankers.

MD: Gold and silver are only good for a very short time when counterfeiting finally results in a reset. In the normal operation of a “real” MOE process, gold and silver play no role whatever. They are just clumsy inefficient stand-ins for real money. They can’t compete with real money except at reset time … which never occurs with a “proper” MOE process … because counterfeiting is not tolerated by a proper MOE process. With our current process (and all historical MOE processes), counterfeiting is not only tolerated, it is required. Governments need the inflation to sustain themselves and the money changers, that institute those governments for their protection, need the fictional “time value of money” to demand tribute and run their farming operation (i.e. business cycle).

Gary Christenson

The Deviant Investor

MD: Gary Christenson and the Deviant Investor need to “get a clue” … but they won’t because they’re in the gold selling business.

 

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Deviant Investor: Gold: New 2017 High

Gold: New 2017 High

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Guest Post from Stefan Gleason, Originally Published on Money Metals Exchange

Gold’s naysayers and doubters came out in full force earlier this summer as sentiment reached its nadir. The mid-year pullback in prices did, too.

There can be no doubt about it now – gold has broken out of its summer doldrums. On Monday, the yellow metal finally broke through the longstanding $1,300/oz resistance zone to make a new high for the year at $1,316.

MD: Can you imagine how boring this would all be if we had “real” money? “There can be no doubt about it now — real money has broken out of it summer doldrums of 1.000 HULs. On Monday, the ideal media finally broke through the longstanding 1.000 HULs resistance zone to make a new high for the year … and the decade … and the century  … at 1.000 HULS.

Assuming the breakout holds, the next upside target is $1,375/oz, the high point for 2016.

MD: “Assuming the breakout holds, the next upside target is 1.000 HULs, the high point for the millennium.

There are plenty of bullish factors behind gold’s recent upside momentum to continue pushing prices higher in the days and weeks ahead. The gold mining stocks are starting to show relative strength again. And the U.S. Dollar Index appears to have begun another new down leg this week, falling Monday to a two-and-a-half-year low.

MD: Now really. How can these twerps think gold is money?

Another bullish factor is geopolitics. Gold gained a few more dollars in early trading Tuesday morning in Asia after North Korea launched a missile over Japan. Japanese Prime Minister Shinzo Abe said, “Their outrageous act of firing a missile over our country is an unprecedented, serious and grave threat and greatly damages regional peace and security.”

MD: Real money is “never” affected by geopolitics … or any other kind of politics for that matter.

On any ordinary news day, this dangerous provocation from North Korea would be the top story on all the cable news channels. Hawks would be calling on the U.S. to retaliate, and doves would be warning of the potential for millions of deaths in the event war breaks out in the densely populated region.

For now, though, the unprecedented flooding caused by Hurricane Harvey is the Trump administration’s top priority. Early estimates are that the storm has caused $40 billion in damage. Water levels are still rising in Houston, and surrounding areas extending to Louisiana, so the scale of the catastrophic losses stemming from 11 trillion gallons of water will continue to grow in the days ahead.

MD: Real money is never affected by weather calamities … or earth shaking calamities … or run away fires. In fact, that’s when it really shines. Traders will create money (i.e. make trading promises spanning time and space) immediately and begin repairs and rebuilding. They will be unconstrained in creating this money. And they can make promises spanning 5 or 10 years with periodic payments to prove performance and maintain the negative feedback loop. Responsible traders will enjoy zero interest load. And all traders will enjoy zero inflation. Life is good.

Several major oil refineries have been shut down by the storm. However, crude oil production is little affected. Oil inventories are expected to build even as gasoline prices rise (gasoline futures jumped 3% on Monday).

MD: You really have to wonder about this reporting. They reported that the refineries would be shut down for as much as a month. And they reported they’re tapping the strategic oil reserve for crude oil. Now what in the world is that crude oil supposed to do without refineries?

The disaster is bringing Americans from disparate backgrounds and worldviews together, united in a common purpose to help provide relief to those in need. Perhaps Congress will set aside some of its partisan acrimony when it goes back into session next week. Unfortunately for taxpayers, though, outbreaks of bipartisanship are usually associated with emergencies that cause both sides to agree on even more spending.

MD: Somebody (this writer) needs to ask themselves “what is the purpose of congress?”

The political pressure to make sure federal agencies are equipped to handle Harvey relief efforts (which will be ongoing for months) figures to be overwhelming. Conservatives who had aimed to force concessions in an upcoming budget fight may conclude that they now have no leverage to do so.

MD: With real money, the agencies couldn’t do this. They couldn’t create the money to do it because they are deadbeats. They never return the money they create. But with real money the agencies wouldn’t be needed to do this in the first place.

President Donald Trump so far hasn’t backed off his vow to pursue border wall funding even if Congress refuses and a government shutdown occurs. But a government shutdown in the aftermath of a major natural disaster could be a political disaster for whoever gets blamed for it.

MD: The only thing bad about a government shutdown is that we continue to pay the government workers for overtly doing nothing rather than covertly doing nothing. A permanent government shutdown would be oh-so-refreshing.

With so many risks hitting investors this week, it’s no surprise that the gold market is benefiting from safe-haven inflows.

MD: Now reconcile that with your “gold is money” meme!

Silver is benefiting as well. Although the silver market has not yet hit a new high for the year, prices advanced nearly 2.5% Monday to close above the 200-day moving average.

If silver can now start showing leadership, that would be bullish for the entire precious metals complex. The gold:silver ratio currently stands at about 75:1. Gold is still trading at a high price historically relative to silver.

The ratio can move rapidly to the downside when silver prices are surging. That was the case from late 2010 to early 2011, when the ratio dropped from the high 60s to the low 30s. An even bigger move could be in store for those who buy silver now, while the gold:silver ratio is still in the 70s.

MD: I can just picture this writer sitting on the beach and giving us a play by play of the waves coming in. I wonder if he would even move to claiming the waves are money.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

 

Thanks to:  Stefan Gleason, Originally Published on Money Metals Exchange

 

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Deviant Investor: What Could Upset Markets?

What Could Upset Markets?

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Guest Post from Clint Siegner, Money Metals Exchange

Investors have been well-trained in complacency. They have spent the past few years watching markets shrug off momentous geopolitical events – each more quickly than the last. Brexit’s impact faded within days. Trump’s election faded within hours.

MD: Notice how this is focused on “markets?” It’s never focused on traders (like you and me) … it’s focused on the gamblers and the gamers. Geopolitical events have almost no impact on real traders (those actually promising things and delivering). They just impact the highly leveraged gamers … who call themselves capitalists.

Stocks traded at all-time highs this summer and volatility made all-time lows. That is the set-up as we head into the fall…

MD: Stocks are about large collectives. If we had a proper MOE process we would still have stocks. A trader like you and me cannot make a promise to create an automobile company and create money to deliver on that promise. However, as all these companies start very small, a proper MOE process does allow the seed to be planted and grow. The gaming of our corrupt (so-called capitalist) system makes it difficult for small companies to compete with corporations.

Almost nobody seems nervous. In this age of central planning and highly artificial markets, it is hard to tell when this period of strange market serenity will end. But vigilant investors should have a few ideas. The next few months are going to challenge the status quo.

MD: The central planning and artificial markets are enabled by our “improper” MOE process. They are enabled by the nonsense they call capitalism. Capitalism is easily defined as “two years with a large dose of elite privilege”.

President Trump Is Under Siege

MD: And should be. He is just one of “them.” He has still not mentioned WTC7. But he is not being called on it. He is “not” under siege in reality.

It has been clear from the beginning of his term that President Donald Trump has very few supporters in Washington DC.

MD: Nonsense. This is all provably theater … like the Harlem Globe Trotters and the Washington Generals.

Democrats and progressives naturally oppose him. Deep staters have been working hard to undermine the administration. And you don’t need enemies when you have “friends” like John McCain, Mitch McConnell and Paul Ryan in the Republican led Congress.

MD: But one thing you can say about all the combatants you enumerate: NONE have mentioned WTC7.

Turmoil in Trump’s administration escalated last week. The president disbanded two separate business councils following the defection of high profile CEOs who disagreed with Trump’s response to events in Charlottesville, Virginia.

MD: And look at Erdogen in Turkey. This kind of turmoil enables these actors to reinvent themselves on a whole different stage. It’s all false flags. Israel is the master of this deception.

On Friday, Americans learned Steve Bannon, Trump’s Chief Strategist, was kicked out of the White House. That will cost Trump some support from his core constituency, who favored Bannon.

MD: As 15,000 newly minted morons (i.e. those disgusted with what they think are Trump’s opponents) show up to support him in Arizona. It’s “all” theater!

The president is already taking flack from supporters such as Ann Coulter. Bannon’s ouster leaves the President with an inner circle which is completely dominated by Wall Street insiders (with a history of supporting Democrats – such as Gary Cohn, Steve Mnuchin, and Dina Powell) and Pentagon brass.

MD: And Ann Coulter is a religious nutcase … who is occasionally right about things. I will guarantee you … she doesn’t know what money is.

Should a good portion of Trump’s voters stop backing the president, he’ll be in real trouble. And markets will start pricing that in.

MD: Oh really? He’s in there for four years. He can do enormous damage to us and benefit them  (i.e. rearrange things for the occupiers of our country). Look at George W. Bush. A third grader would have made a better top administrator … and he got two terms. What’s surprising is his dad only got one term. They really don’t like the disruption caused when they change their current “Meadowlark Lemon”.

Conflict with North Korea Possible, Even Likely

MD: Right. If that’s what they choose. They got it in Afghanistan, and poppies were their only interest there. If they can take out Qaddafi and Hussein (who they put in), they can take out Kim.

North Korean dictator Kim Jong-un ramped up the rhetoric again late last week in response to planned military drills conducted by South Korea and the U.S. Should the North Koreans test fire another missile, the U.S. may well respond with force.

MD: What’s theater without a crescendo occasionally? You have to create the emotion to hold the audience.

The generals advising the President appear to be succeeding in the effort to persuade him to get more aggressive. Steve Bannon’s departure signals that Trump has heard enough counsel for a less interventionist foreign policy.

The former Chief Strategist was one of few voices for restraint in the White House.

Bannon’s views with regards to North Korea in particular seem to be part of what put him at odds with the president. In an interview with the American Prospect, released just days before his ouster, Bannon said;

“There’s no military solution here; they got us. Until somebody solves the part of the equation that shows me that 10 million people in Seoul don’t die in the first 30 minutes from conventional weapons, I don’t know what you’re talking about.”

MD: Bannon may not have been on the full inside track yet. We will find that “Kim” is one of “them” too … or can be taken out with ease.

In recent days, fears over a confrontation with North Korea have seeped into the markets. If actual warfare breaks out, investors can expect a much bigger reaction.

MD: There has not been a single war in my lifetime that was a “real” fight among people. They were all just theater with “them” moving “us” (the pawns … the cannon fodder) about the board. In the end, it was “them”, not “us” who won the spoils … regardless of the side you’re looking at. And we’ve been at war with someone my entire 70+ year life … and actually all the way back to Knox who got his standing army within six months of the formation of this ridiculous union.

Republican Leaders Angle for Debt Ceiling Increase

MD: Governments (all of them) are sustained totally by counterfeiting. They make trading promises … and then roll them over when they don’t deliver. That’s default. Not mitigated immediately by interest collections, that’s counterfeiting … that results in inflation.

The money changers collect tribute on that debt (which is just money created by a deadbeat trader … not loans from money changers) … and all that tribute (they call it interest) comes from taxes. They have to keep track of the counterfeiting number so they can tell us what our tribute needs to be. Otherwise, if you’re just counterfeiting, why keep track of how much counterfeiting you’ve done?

The Republican leadership in Washington DC wants to increase the borrowing limit, quietly and without fanfare. However, they may not be able to betray rank and file Republican voters and get away with it this time.

MD: Dreamer. They always get their minimum wage increases. They always get their debt ceiling increases. They always get their wars. They even always get their government shutdowns rolled back and no government worker loses anything … ever … unless they blow the whistle … then they lose everything.

Conservatives in Congress look ready to revolt, leaving leadership in the awkward position of having to seek compromise with Democrats.

MD: Oh please. Someone introduce this moron to Abe Saperstein!

The problem is that Democrats are looking for any chance to thwart Trump and Republicans.

It’s unlikely we’ll see a fight over the debt ceiling which is big enough, and protracted enough, to have significant implications for markets. Past battles over the debt ceiling have been for show. In the end, Congress has never missed an opportunity to hike the borrowing limit – big government Republicans and big government Democrats always find common ground.

MD: The fact that they can just continually increase the debt ceiling is proof, that tactic (which somehow got by “them”) has been neutered. Iterative secession. This thing is broken beyond repair.

However, the polarization in Washington DC is unprecedented. It might even lead to a genuine stalemate this time around.

MD: “Unprecedented” is a grossly overused word. When it comes to Washington DC nothing is unprecedented. Over the nearly 300 years time they’ve been fleecing us, they have tried everything … several times over.

Wildcard: Russia Hacking Story May Implode on Democrats & Fake News Media

 

Democratic leadership and their friends in media bet the farm on convincing Americans that Trump colluded with Vladamir Putin to subvert last Fall’s presidential election. They have been telling the world that Putin stole damaging, confidential party emails and coordinated with the Trump campaign to release them at the most opportune time – just before the people voted in November.

MD: The theme continues. Does Siegner really believe there are different forces competing here. I’ll cease comments on this fake competition for the rest of the article. Siegner is clueless about the tactic it seems.

Wikileaks founder Julian Assange says he can demonstrate unequivocally that the Russians are not the source of the leaked information. Last week, Republican Congressman Dana Rohrabacher met with Assange to discuss the matter and agreed to share the details with President Trump.

Investors should get ready for some significant developments to be announced soon.

MD: They’re already ready … those really inside elites  anyway Remember, they’re driving this bus. They’re chomping at the bit for the windfall they are about to create.

It will be bad news for the Democrat Party and its legacy media allies if their Russia narrative falls apart. Particularly if it turns out whistle blowers from inside the Democratic National Committee were the source of the embarrassing leaks. Party leaders do not want Americans to turn their focus to scandals such as the DNC’s effort to undermine Bernie Sanders or CNN feeding debate questions to Hillary Clinton.

If, as some on the right have speculated, the murder of Seth Rich is related to the leaks it could turn the political left upside down. That would shake Wall Street as well as Washington DC.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

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Deviant Investor: Total Eclipse of Sense

The Deviant Investor

A Non-Traditional Perspective

MD: Hmmm. “A Non-Traditional Perspective” … this from the guy who will not let my posts pass his moderation … because they are “unorthodox”. Go figure.

My creation of this website and blog at least partially resulted from his (and other goldbugs and Mises Monks) defensive maneuvers.

Let’s see what pearls of wisdom his non-traditional perspective brings us. We certainly won’t expect to be disappointed when he links his wisdom to an event that is mathematically predictable over the whole span of time we have had the math … and into the foreseeable future.

Total Eclipse of Sense

The eclipse of the sun occurs today. The silver moon covers the golden sun, plunging a small portion of the United States into darkness for a few minutes. Perhaps it is time to do a sanity check.

Investors Business Daily: “U.S. Has 3.5 Million More Registered Voters Than Live Adults”

We blame the Russians but the election fraudsters are us.

Blame the Russians!

Zero Hedge: “Only in California…”

“According to a statement from Western United Dairymen CEO, Anja Raudabaugh, California’s Air Resources Board wants to regulate animal methane emissions even though it admits there is no known method for achieving the type of reduction sought by SB 1383.”

(Legislation to regulate cow and sheep flatulence – how charming!)

MD: We need to regulate those people’s exhaling. After all, it is CO2 … that deadly greenhouse gas. It can be done by inhibiting their inhaling. Enter SB 1383A stage left.

A new proposal: SB-219 blasts a deeper hole into common sense regarding the use of pronouns, gender choice, gender identity, bathrooms, transgender and more. What will be considered “normal” in five years on the left coast?

MD: Hopefully it will be sovereignty. But that’s much too much to even dream for.

Now in California! Perhaps coming to your state soon?

MD: If we’re talking about secession, I sure hope so.

Thanks to the Federal Reserve policies, commercial fractional reserve banking and U.S. government spending, prices have risen for decades.

MD: Fractional reserve banking hasn’t cause that. That’s just enabled the money changers to leverage their self given privilege by 10x … making them become capitalists in just two years and allowing them to then take “their” money off the table … and in 30 years, multiply what they let ride by 12,000 times. No … the price changes caused by the unbalance between supply and demand for the money itself comes straight from the government … their continual rollovers which are defaults not met by interest collections of like amount. It’s called counterfeiting. All the taxes go to the money changers in the form of tribute (interest) they demand … for doing absolutely nothing! But then, they instituted the government didn’t they. What should we expect?

However we are assured there is almost no consumer price inflation.

MD: There can’t be if you’re going to have COLA’s in your pension formulas. That’s suicide when you can’t stop the counterfeiting. The only thing you can resort to is the “thumb on the scale” trick .. and that’s exactly what they’re doing. Based on my SS check year over year, inflation has been 0.27%. Based on the cost of my rib eye steaks, it’s been about 27%.

One of the mandates of the Fed is “stable prices.” Hmmmm!

MD: And of course we here at MD know that  a “proper” MOE process employees cares nothing about prices, employment, balance of trade, or anything else. It has no monetary policy. It has no reserves. It functions just like the over-speed governor on your lawnmower … through negative feedback correction (mitigated defaults immediately with interest collections of like amount). It is totally objective and can’t be manipulated at all.

Socialism:

Global warming: Do you think the politicians would have supported the global warming story if they could not tax greenhouse gases? The worry in the 1970s was global cooling. That story died because there is no way to tax the global cooling story or make a profit from it.

MD: No. That’s also why marijuana will soon become the national flower.

 

****************************************

 

The reality that is worth understanding:

Time for a sanity check. Gold or paper? Results or promises? Face reality or blame Russia?

Gary Christenson

MD: Actually, a pretty good effort this time by the clueless Gary Christenson.

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Deviant Investor: Debt, Dollars, DOW, War, Silver and Shirts

MD: The Deviant Investor is a gold salesman. He will do whatever it takes to make a market for his gold. It is easy to find the delusions in his articles. In fact, he “knows” the truth … he just has too big a stake in the delusion to admit it. He won’t pass my comments through his moderation. That was one of my principal motivations for creating this site. It gives me a chance of mitigating the blocks “all” the Mises Monks throw up against me. If you’re dealing in the truth, you don’t have to block anything. The truth always prevails.

Let’s see what kind of delusions … and propaganda … this article contains. It’s always fun.

Debt, Dollars, DOW, War, Silver and Shirts

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Yes, they are connected.

Dollars are created as debt. More dollars in circulation = more debt.

MD: He gets it right. Notice, he hasn’t said dollars are money. They obviously “are” money … but from an “improper” MOE process. They obviously do represent “in-process promises to complete trades over time and space”. And all of them created by government promises are counterfeit … and indistinguishable from all others in circulation. That’s why we have inflation … 4% per year compounding.

More debt means consumption is “pulled forward” from the future so consumption can occur now. This usually ends badly.

MD: Fallacy number 1: A trading promise spanning time and space says nothing about consumption. If I create money to build a house and engage a contractor, I cannot consume that house until the contractor completes it. The contract can be written so I give him a certain amount of money when the contract is agreed to; a certain amount along the way; a certain amount when he delivers the house; a certain amount sometime after that when I confirm he has met the terms of the contract in his delivery … none of which assumes consumption. And it hardly ever ends badly.

But he says consumption “can” occur now. That too does not end badly. Most people buy a house that already exists. They move in and make monthly payments. It is far and away the minority that default on this trading promise spanning time.

Commercial banks and central banks have created trillions of new dollars. Each new dollar devalues every other dollar currently in circulation, in savings, and in pension accounts. Prices rise!

MD: No bank of any kind has “ever” created money. In “all” case, it is a trader who creates the money. The banks have just reserved for themselves the privilege of certifying that money … and the privilege of collecting tribute on that certification … to the tune of 10x the amount of their “so-called” stake in the creation … which after two years is provably zero.

Wars are costly, kill people and produce little. Governments like wars because they create demand for production of war materials.

MD: Governments do not profit from production of war materials … only the money changers do. Governments are instituted by the money changers … not by the people. They “protect” the money changers privileges … first by laws … then by force. They also use this force to expand the money changers privileges … by empire-building wars. The money changers retain hold on the reins at all times All but two of the central banks in the world are controlled by a single family … the Rothschields.

Further, governments are sustained by inflation. “All” taxes collected go directly to the money changers in the form of tribute. Neither governments nor money changers can function without inflation. They need their cherished (1+i)^n to give them a value greater than the 1.00000 a proper MOE process guarantees. They call it the “time value of money”. And they get away with it.

More production means a higher GDP (even if the concept means little). Politicians point to higher GDP and claim it is good. More production creates employment. Everyone wins, unless the bomb fell on you. Unless the drone targeted you. Unless you live on a fixed income and prices continue to rise. Unless you are a soldier and were injured or killed.

MD: GDP is unmeasurable … as is inflation. A “proper” MOE process cares nothing about GDP … and it “guarantees” zero inflation of the exchange media itself … it doesn’t have to measure it.  It cares nothing about employment. It cares nothing about prices but the zero inflation guarantee assures any price changes are strictly associated with the supply/demand balance of the object of the exchange … not the supply/demand of the money itself … which is always perfect at 1.0000.

As dollars are devalued, prices rise for most goods and services. Yes, televisions are less expensive, but have you checked the price of beer, medical care, cigarettes, cars, Whisky, college tuition, food, and 101 other items we need?

MD: Irrelevant to a proper MOE process. Further, a proper MOE media would ideally be in units of HULs (Hours of Unskilled Labor). The value of a HUL has never changed. Today it trades for the same size hole in the ground as it ever did or ever will. And we have all been HULs at one point in our lives, so we can all identify with them and hold them in perpetual perspective. This certainly isn’t true of an ounce of anything.

As dollars are devalued, the price of silver rises. Each dollar buys a smaller piece of silver. Wars burn many dollars, many ounces of silver, and consume other commodities, which rise in price. Demand for silver increases, dollars buy less, and supply increases slowly, if at all. Prices for silver rise because of supply, demand, and devaluation.

MD: Which is a straw man red herring argument when it comes to a “proper” MOE process … and “real” money.

The DOW is higher because each dollar buys less. Central bank “printing” of many extra dollars supports the DOW. Wall Street hype helps also. Regardless of the hype, a good crash occurs every decade or so, and after the crash the stock market rises again. Most people buy high, watch it crash, and sell low. How many people will take profits near the top in this market? BUY SILVER!

MD: When you take measurements with a rubber band … that constantly stretches like our inflating money … or constantly contracts like gold and its foolish copier Bitcoin, you add a degree of freedom that just makes life difficult for traders. But we have always seen this variable added … because it enables the “controllers” to take their pound of flesh from the traders. DI wants that pound of flesh … and so do the money changers. But then again, DI is just a money changer. It just needs to stir the pot.

As prices rise, shirts cost more.

MD: Ok. For what follows, DI is going to describe what to it is “rocket science”. To we here at MD, we know it is just the obvious result of “improper” MOE process practices … and thus irrelevant to a “proper” MOE process. Read it and smirk. Scan down to my next comment if you don’t need a dose of this levity.

Debt, dollars, DOW, war, silver, and shirts are connected. They rise and will continue to rise, two steps higher and one lower, as long as we use debt based fiat dollars.

Examples:

Money supply and debt increase. Look at official national debt since 1913. Can you think of a single reason why it will reverse a century-long exponential trend (debt doubles every 8 to 9 years) and turn lower?

Wars will continue and prices will rise. The helmet for an F-35 will cost $400,000. The price for a World War II P-51 aircraft was $52,000.

Silver prices have increased for 90 years and will continue to increase.

The price for shirts is higher, much higher. Dollar devaluation increases prices.

This dress shirt is currently available from Nordstrom for $175.00

Debt, dollars, DOW, war, silver, and shirts are connected.

MD: Ok, I’ll break back in here. One thing I failed to note was another obvious attribute that a “proper” MOE process cares nothing about … that being the “money supply” … and that being the associated manipulation they call “monetary policy”. Everyone here already knows that nonsense for what it is … irrelevant nonsense. “All” money in circulation (created by traders … not supplied) represents “in-process trading promises”. It doesn’t exist before the trading promise is made nor after delivery is achieved as promised … unless there is defaulting and counterfeiting not mitigated immediately by interest collections of like amount. The “unless” results in INFLATION … and that’s what little Gary is describing. It need not exist. But if he has his way we will have DEFLATION (with his gold-is-money by edict nonsense). And that will strangle trade. You’re not going to part with any of your money today when tomorrow it will trade for much more stuff. Zero is obviously the only right value for inflation … and gold can never deliver that value, let alone perpetually guarantee it.

Option One:

Reduce Federal government expenditures, declare peace, balance the budget, let it crash … and DREAM ON!

MD: Institute a “competitive and proper MOE process” in competition with the current money changer instituted “improper” process … and watch money changers and governments wilt. No dreaming and no legislation required. The process is totally transparent so no regulation is required. The process is totally decentralized and can have any number of participants … just like Mutual Casualty Insurance Companies. The most competitive ones giving the best service to traders prevail.

Option Two:

More of the same. More debt, dollars in circulation, continuing wars, and higher silver prices. Shirts will cost $500 instead of $1.00 in 1934 and $175.00 today.

Option Two – so what?

Taxes increase as dollar devaluation continues. Can you afford higher taxes? Will your income rise enough to meet your increased expenses and higher taxes? Will Social Security and your pension pay you in mini-dollars, or micro-dollars? Can you live on pension payments denominated in micro-dollars?

MD: Did you ever stop to think that 3/4ths of the fruits of your labor already go to taxes … and that of the 1/4th that remains, most goes to money changer tribute and insurance companies.

You retain almost none of the fruits of your labor … right now! It goes like this: You start with things like 8% sales tax; then add federal tax … then state tax … then taxes and fees on things like gasoline and your phone and your beer and the lottery (if you’re stupid enough to play it) and everything else you touch. It is not a difficult exercise at all to see that you pay 50% in these “sort of” overt taxes.

But then look at every product and service you buy. The entity producing it is paying over 50% too … and they’re passing that on to you. So of the 50% you have left after paying your taxes, you’re buying products that have 50% taxes in their price. That takes you to 75% (i.e. 3/4ths).

And remember that 100% of these taxes go to the money changers in the form of tribute (they call it interest). “All” the services you think these taxes are buying are actually coming from INFLATION (a designed in leak which the money changers feign targeted at 2% and deliver at 4%).

That’s what “all” government lives off of … inflation. They make trading promises (create money) just like you and I. But they never deliver. They just roll them over. That is counterfeiting. And all money, defaults or counterfeits, that is not reclaimed by “legitimate interest collections” … not by money changer tribute … causes inflation by the operative relation: INFLATION = DEFAULT – INTEREST.

DI cannot dispute anything I have just presented … so they don’t even try. My comments don’t even make it through their moderation.

CONCLUSIONS:

 

  • Debt, dollars, DOW, war, silver, and shirts are connected.
  • Prices for food, housing, transportation, clothing and most other items will increase. Believe the “low” consumer price inflation myth at your own peril.
  • The future may look like the 1930s – where debt killed. Or, more likely, it will look like the 1970s – continual price increases, stagflation, weak economy, rapidly rising gold and silver prices, and increased global stress.
  • My bet is 1970s inflation and worse. Do you own due diligence but remember dollars will be devalued further and higher prices are inevitable.

  • Do you own enough silver?

MD: If you own any gold and silver and you’re not a jeweler or dentist or electronics manufacturer, you are a fool. And “I” admit to being a fool. I drank the coolade and bought quite a bit of the stuff before I realized the truth. I can’t sell it because it’s doesn’t even trade for the dollars I gave up for it … let alone the dollars I need to cover the inflation. Luckily, I also bought land in a low tax, low services county in Texas, which gives me a sustainable retirement.

What I really hope we achieve is “iterative secession”. But it’s not going to happen in my lifetime … and it’s not going to happen with people like Gary Christenson spreading confusion and delusion like this.

Gary Christenson

The Deviant Investor

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Defiant Investor: Hatch: Those opposing debt don’t deserve to be here.

MD: Most “debt” is an “in process promise to complete a trade over time and space”. And “all” debt” represents an in-process trading promise of some kind. It may be in the form of a note … or it may be in the form of money created by a trader. Nobody in the whole world opposes debt … i.e. making trading promises. “All” people on Earth make trading promises and are in the process of delivering on them … all the time.

With that in mind, let’s see what the predictably confused Defiant Investor has to say on the subject.

Sen. Hatch: Those Opposing Debt ‘Don’t Deserve to be Here’

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Guest Post from Clint Siegner, Money Metals Exchange

Republican leaders in Congress, with the urging of Treasury Secretary Steve Mnuchin, are anxious to raise the federal borrowing limit from $19.8 trillion – no strings attached.

MD: Remember, governments “never” deliver on their trading promises. They just roll them over … and “all” rollovers are defaults … and guaranteed defaults are counterfeiting. So they’re asking to raise the “counterfeiting limit” here. There have never been any restrictions on government counterfeiting … none!

The only hitch is those pesky conservative voters who were promised restraint by party leaders. GOP establishment hopes to quietly pass a “clean” bill to raise the debt ceiling – a direct betrayal of that voter base – don’t currently enjoy enough support from other Republican members who still consider themselves accountable. So, a deal with the Democrats beckons.

Republicans technically have the power to finally honor the limit on borrowing by reducing spending. After all, Republicans control both Congress and the White House.

MD: But just like the Harlem Globe Trotters and the Washington Generals work for the same company, so do the Republicans and Democrats. It’s all theater.

The last thing most Republican voters want is for McConnell and Ryan to start cutting deals with Nancy Pelosi and Chuck Schumer for a debt ceiling hike and MORE spending. But that may be exactly how this batch of sausage gets made. Watch for a coalition of big government Republicans and Democrats to leave future generations holding the bag – yet again.

Sen. Orrin Hatch (R-UT) says any politician who opposes more debt “doesn’t deserve to be here.”

MD: As I have illustrated, no person on Earth opposes debt. All are indebted in some way to someone or something. But “more” debt? That’s another matter altogether. We exceeded the “more debt” limit before I was born … i.e more than 70 years ago. With a proper MOE process, governments would have no debts. They would be precluded from having them (as any trader is precluded from creating money) by their propensity to default on their trading promises … such propensity being 100%.

GOP Senator Orrin Hatch is scornful of anyone in his party trying to impose spending restraint. He had this to say: “Some conservatives think they can get some programs cut. Well, that’s not gonna happen… We have to pay our bills and anybody who doesn’t want to do that doesn’t deserve to be here.”

MD: But people who take on bills they have no hope of paying? … they deserve to be there? In my opinion “there” doesn’t even deserve to be. Iterative secession is the only solution.

Hatch and his friends in leadership – on both sides of the aisle – share a bizarre philosophy when it comes fiscal responsibility. They insist that the best way to meet obligations is to embrace perpetual deficit spending and simply borrow without limit to cover it.

MD: If they didn’t share that philosophy, they wouldn’t be in leadership. It’s required by the money changers who institute governments in the first place. It’s their whole con.

As far as they’re concerned, any elected officials with an opposing view don’t even belong in Washington DC.

Given that Congress has raised the borrowing cap 72 times since 1962, and that neither party has ever held the line, we can certainly agree that believers in fiscal restraint are marginalized on Capitol Hill. Representatives who bluff about fiscal responsibility, but eagerly fold at the first opportunity, fit right in, of course.

There are some hoping to see a real fight, and perhaps even a victory in the coming months.

It can’t be ruled out, but leadership is anxious to avoid any fuss and will reach across the aisle rather than consider the fiscally responsible course.

MD: Reach across the aisle? Remember the Globe Trotters?

Nevertheless, conflict over raising the debt ceiling could add to the headwinds for the Federal Reserve Note. And, in the long run, borrowing without restraint will further devalue the greenback. Perhaps more investors will be reminded of that fact in the coming weeks and buy some gold.

MD: “could add to the headwinds”? The operative relation: INFLATION = DEFAULT – INTEREST. DEFAULT in this case is certain. INTEREST in this case is way below what it needs to be to reclaim these DEFAULTs (i.e. this counterfeiting). Thus INFLATION is certain … but since it can’t be measured, lying about it is also certain.

Buy gold? I favor buying raw unimproved land in a low tax, low services county. And have lots of friends who want to come and live on it with you and help you defend it when the inevitable reset comes.

What I really favor is iterative secession … at least to the county level in my case.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

MD: We only hear this “buy gold” nonsense from people in the business of selling gold. If they believe in gold so much, why are they selling?