Tag - Fiat

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Tuesday, November 17 2015

The Delirium of Milliards

With the coming market crash (what we’ve witnessed recently is just a preview of what’s yet to come), we shall see significant deflation. The central banks, particularly the U.S. Federal Reserve, have for years promised that if deflation rears its ugly head, as it did following the 1929 crash, they will not hesitate to print money unceasingly until the problem is solved. Money creation will be possible at a rate never before seen in history. In 1922-1923 Germany, it was necessary to physically print bank notes and distribute them. Today, all that’s necessary is to type credits into a computer. Billions can be created overnight.

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Friday, October 2 2015

The illusion of liquidity

Central banks are flooding markets with money, but at what cost?

Yet the more money that central banks add to the money markets and the longer they delay in withdrawing their support, the greater the distortion to normal market functioning and the larger the risk.

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Saturday, August 29 2015

The Financial Times Calls for Ending Cash, Calls it a “Barbarous Relic”

When you start to see increased propaganda about banning cash, you know the status quo is very scared and things are getting very serious. You’ve been warned.

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Wednesday, June 24 2015

Gold in the Age of Soaring Debt

More surprising is that if gold backed total global debt 100 percent, it would be valued at $33,900 per ounce.

Such massive debt levels can be reached only in a fiat currency system, where money is easy, virtually limitless and unsecured by anything tangible.

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Sunday, June 21 2015

All The World's Investable Assets In Context

"We decided to do a little research to find out the size of different investable asset classes globally, to try to get some color on the money flows in this extraordinary period. The data is from various dates from 2013 to 2014, but the differences don’t matter much.

  • Over-the-Counter derivatives, notional amounts: $692 trillion at year-end 2014, per the BIS. For comparison, this figure was $72 trillion in 1998.
  • Global real estate: $180 trillion, according to global real-estate services provider Savills.
  • Global debt market, both securities and other forms of debt: $161 trillion at year-end 2014, per the Institute for International Finance’s Capital Markets Monitor. According to the Bank of International Settlements (BIS), debt securities make up $95 trillion of this total.
  • Global equities: $64 trillion, per the World Federation of Exchanges.
  • Global M1 money supply: $24 trillion at year-end 2013, per the World Bank.
  • Gold: $6.8 trillion at year-end 2013, according to the Thompson Reuters GFMS Gold Survey."

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Friday, June 19 2015

IMF's Vinals says central banks may have to be "market makers"

Central banks may need to become "market makers of last resort" if there is not enough liquidity during volatile sell-offs, a senior International Monetary Fund official said on Thursday.

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Wednesday, May 20 2015

A Cashless Society?

Calls by various mainstream economists to ban cash transactions seem to be getting ever more louder.

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Sunday, May 17 2015

The Coming Crash of All Crashes - but in Debt

We face a frightening collapse in the VELOCITY of money and all this talk of eliminating cash is in part due to the rising hoarding of cash by households both in the USA and Europe. This is a major problem for the central banks have also lost control to be able to stimulate anything.The loss of traditional stimulus ability by the central banks is now threatening the nationalization of banks be it directly, or indirectly. We face a cliff that government refuses to acknowledge and their solution will be to grab more power – never reform.

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Leading German Keynesian Economist Calls For Cash Ban

Coins and bills are obsolete and only reduce the influence of central banks. This position represents the economy Peter Bofinger. The federal government should stand up for the abolition of cash…

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Friday, May 15 2015

The trouble with cash

Monetary policy has now become like a pressure cooker with a defective safety-valve. Central bankers realise it and investors are slowly beginning to as well. Add into this mix a faltering global economy, a fact that is becoming impossible to ignore, and a dash-for-cash becomes a serious potential risk to both monetary policy and the banking system.

There is an obvious alternative to cash, and that is to buy physical gold. This does not constitute a run on the banking system, because a buyer of gold uses electronic money that transfers to the seller. The problem with physical gold is a separate issue: it challenges the raison d'être of the banking system and of government currencies as well.

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Thursday, May 14 2015

How to end boom and bust: make cash illegal

Forcing everyone to spend only by electronic means from an account held at a government-run bank would give the authorities far better tools to deal with recessions and economic booms,

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Thursday, May 7 2015

France to restrict movement of cash, gold and crypto-currencies

The French authorities have been taking drastic measures to strengthen the control of cash payments. Measures will also be taken in relation to gold sales and the movement of any tangible goods,

In France, many already believe that the French authorities are waging a war against their own people in the form of financial repression. One is left to wonder whether other countries from the eurozone decide to follow the example of Paris. It is still unclear whether other euro countries to follow the example of Paris and take measures to restrict the free, private use of their money.

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Wednesday, May 6 2015

Hold precious metals as banks try to criminalize the use of cash in their latest act of financial repression

Governments and banks around the world are making it more difficult to save and transact with cash in their latest attempt to financially suppress their citizens. Their goal is to force you to deposit cash and charge you interest as well as having total control over the money on deposit.

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Monday, May 4 2015

Australia First to Introduce a Compulsory Tax on Money Itself

The new compulsory control is provided in the 2015 Australian budget, so that everyone who has any savings must pay taxes on their savings. The measure is expected to serve as a global test balloon for Europe and North America, who will watch for the outcome in Australia.

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FRB Bail-ins: You don’t own your money

The account balance on your bank account is known as a demand deposit. Under our Fractional Reserve Banking (FRB) system, your deposits are used by the banks to leverage lending. What most people think of as their account balance is actually something very different. Many people mistakenly believe that their account balance shows how much they own. This is not so. Instead, it shows what the bank owes you. You merely hold a claim on cash. Knowing this will help you understand that bank deposits are actually loans.

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Wednesday, April 29 2015

Negative interest rates put world on course for biggest mass default in history

Here’s an astonishing statistic; more than 30pc of all government debt in the eurozone – around €2 trillion of securities in total – is trading on a negative interest rate.

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Friday, April 24 2015

Largest Bank In America Joins War On Cash

The new policy restricts borrowers from using cash to make payments on credit cards, mortgages, equity lines, and auto loans.

Chase even goes as far as to prohibit the storage of cash in its safe deposit boxes. In a letter to its customers dated April 1, 2015 pertaining to its "Updated Safe Deposit Box Lease Agreement," one of the highlighted items reads: "You agree not to store any cash or coins other than those found to have a collectible value." Whether or not this pertains to gold and silver coins with no numismatic value is not explained.

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Friday, April 10 2015

Dollar Imperialism

“The dollar is our currency, but it’s your problem.” This is what US Treasury Secretary John Connally said to his counterparts in the Rome G-10 meeting in November, 1971, shortly after the Nixon administration ended the dollar’s convertibility into gold and shifted the international monetary system into a global floating exchange rate regime. The world has been suffering from this “problem” ever since the US obtained the “exorbitant privilege” of issuing the world’s reserve and trade currency under the Bretton Woods system after WWII.

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Wednesday, April 8 2015

Spelling Out The Big Reset

As economies age, debt builds up. Advanced economies – those with the highest borrowing ratings by the reputable agencies they developed – have it clogging up inside all their arteries. The Big Reset will finally become inevitable, as has been acknowledged by the IMF head Largarde, mentioning the year 2020. But what must an Armageddon debt reset necessarily involve?

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Wednesday, March 18 2015

US Dollar Reverses

Forex gone wild....

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