Archive for February, 2016

Solutions for Today & Tomorrow

To propose a solution, one must first identify the problem, which has become increasingly difficult to do because the media and the rest of the establishment intentionally ignore, mislead, and misinform the public. One option is to simply do the opposite of what these self-interested buffoons say. However, since some may want more detail, let’s start with the root of the problem, along with some founding principles for a successful solution.


The root causes of our problems are no different from the problems that have brought down all great societies – debt, taxes, and the career politician, or in a word, GOVERNMENT. Govt self-interest ultimately results in govt outgrowing their means to fund themselves, and an inattentive public fails to keep them in check. The result is increased debt and taxes to fill the void created by govt excesses and irresponsibility.

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Proof Central Bankers are Clueless

As discussed yesterday in “The War on Cash”, the Bank of Japan has followed the ECB down the black hole of negative interest rates. Now, if I told you that your bank was going to charge you to keep your money in the bank, what would you do? Based on Japan’s retail sales, the Japanese people have provided the answer, as they are buying personal safes at an unprecedented rate.

Central Bankers around the world have misdiagnosed the public’s response to their Zero Interest Rate Policy (ZIRP), that is turning into a Negative Interest Rate Policy (NIRP), because they thought people would pull their money out of the bank and spend it, even though their own banks have chosen not to lend their free money. I hope it is getting clearer why they want to go to electronic money.

My prediction for Japan and Europe is a big spike in home break-ins, as thieves are much smarter than Central Bankers. Sadly, there will also be more murders by criminals in these countries, because they are the only ones in these gun-free zones that possess a gun.

The FBI is Lying – What a Surprise

Denninger has documented the FBI lies, repeatedly, regarding Apple’s lack of cooperation in iPhone-gate. Anyone that understands the FBI’s involvement in the so-called terrorist attacks, and many other frauds throughout their history, should not be surprised. However, a majority believe the propaganda, at least that is what the polls tell us we should think.

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Conspiracies and Propaganda

Making informed decisions about political candidates, business strategies, or one’s own personal economic situation is challenging under any circumstance. It becomes even more difficult in our highly political economy, where our so-called Representatives and public servants, along with their surrogates in the media, will say and do anything to protect their self-interest. Beyond the normal convoluted political rhetoric, there are well-intentioned analysts and economists that are also feeding us erroneous information based on flawed economic theories and models, primarily because they rely on a US-centric view of the world, and data that lacks the historic depth for accurate back-testing. The world is way more complicated and inter-connected to rely on simple, one-dimensional, if this, than that explanations.

To make matters worse, one has to deal with the insidious propagandists that use a wide range of techniques to misinform and brainwash the unwashed, such as subversion, conspiracies, and false flags. The purpose of all of these strategies is to focus the light away from those responsible, and to erode the foundation on which we base our decisions.

We have been living through the results of flawed economic models and theories for at least 15 years, and if you live in Japan, it has been over 20 years. The “well-educated” theoreticians, that have been directing our economy from their ivory towers, still don’t understand that you cannot solve a debt problem by adding more debt. To help their bankster banks and overly indebted govt’s, central bankers reduced interest rates to near zero, and kept them there for over seven years. Instead of fanning the flames of inflation, which is a flawed, repressive strategy on its own, this Zero Interest Rate Policy (ZIRP) has sucked the oxygen out of the economy and punished savers. Yet, how many govt and Wall Street representatives have come on TV to tell you things are better than before the financial crisis in 2008? For example, when talking about the economy in his SOTU speech, Obama said, “Anyone claiming that America’s economy is in decline is peddling fiction”. The charts above, and the 21 New Numbers That Show That The Global Economy Is Absolutely Imploding paint a picture of reality that is a bit different.

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The War on Cash – Why?

Below are a just a few articles that should be read carefully. They highlight the coming war on cash, that we have been discussing for years.

– Why The Keynesian Market Wreckers Are Now Coming For Your Ben Franklins 

This Is The Real Reason For The War On Cash

War on Cash: Larry Summers Wants to “Kill the $100 Bill”

The stated purpose of govt and their trial balloon flyers is to thwart crime, corruption, and terrorism, but the real goal is to force all economic transactions through bank accounts where they can be tracked, service charged, taxed, and confiscated without your consent. Larry Summers, the academic cheerleader for rescinding Glass-Steagall, is also pushing for negative interest rates, which Europe and Japan have already implemented. It makes perfect sense that he would want to prevent people from avoiding the tax on their bank accounts.

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Most people over 50 remember the classic Phil Donahue interviews with Milton Friedman in the late 70’s. Since our one-sided media, who only represents the political establishment, no longer permits an open discussion on Capitalism anymore, young people might want to revisit this interview and Armstrong’s comments below to remember why our Founders favored freedom (capitalism) over Socialism and other forms of centrally-planned govt’s.

Most of the wealth earned by the 1% is from INVESTMENT, not wages. So why are the 99% oppressed? Largely taxes. For example, Social Security is a simple tax. That money is not invested in your future. The government robs from Social Security and stuffs it with government debt, which they then move toward negative interest rates. This deprives the average person from earning anything on those funds that were supposed to be for retirement.

When I worked to try to turn Social Security into a wealth fund investment, bringing the money into the free market and allocating it to fund managers (I exempted myself), the Dow was 1,000 (today it’s 16,392). Social Security today would be a real fund and the bulk of the people would have MADE MONEY in the same manner as the 1%. It was government and its greed that has suppressed the people, not the 1% because they invested. A FREE MARKET should be where everyone can invest their own money, for surely government is incapable of keeping their fingers out of everyone’s pocket.

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