None of the problems that caused the last financial crisis have been fixed. In fact, they have all gotten worse. The total amount of debt in the world has grown by more than 40 percent since 2007, the too big to fail banks have gotten 37 percent larger, and the colossal derivatives bubble has spiraled so far out of control that the only thing left to do is to watch the spectacular crash landing that is inevitably coming.
Unfortunately, most people do not know the information that I am about to share with you in this article. Most people just assume that the politicians and the central banks have fixed the issues that caused the last great financial crisis. But the truth is that we are in far worse shape than we were back then. When this financial bubble finally bursts, the devastation that we will witness is likely to be absolutely catastrophic. Continue reading
The bells are tolling on the American economy. Every day, another expert is warning us of the imminent demise of our way of life. If you’re paying attention, you can see it coming, like some huge storm system, bearing down on you. You don’t stand there and wait for it to hit you. You don’t have to be a passive victim of the economy. It’s time to sit down and take a long hard look at where your money is going. Lots of financial experts give tips about reducing your discretionary spending but what about those fixed expenses? You can free up some large sums of money by reducing your monthly output.
Most of us have a set of fixed expenses. Some of these are vital, some are not, and what is vital for me might not be important for you.
What fixed payments come out of your bank account every month? Continue reading
Up until the late 1960s, it was considered prudent for everyone to have some savings. By forgoing consumption, savings gave the ability to consume more at a later date through the accumulation of interest income.
This result is similar to what one hopes to achieve with an investment, but savings and investments should not be confused. A person uses money to make an investment, whereas saving is the process of accumulating money itself. Thus, you put your money at risk when making an investment, which hopefully will become a wealth-creating asset. In contrast, savings are meant to be riskless.
In the past, savings would typically be accumulated in a disciplined way on a regular monthly basis. An individual would take a savings book along with some cash directly to the bank, which would record the deposit. Alternatively, the bank acting under standing instructions would transfer a previously specified amount of cash from a customer’s current account to his/her savings account. Continue reading
Questions continue to mount over why a rash of suspicious deaths among executives in the financial services industry are occurring now when the worst of the crisis, layoffs, bankruptcies and bailouts occurred over five years ago – or at least Federal officials keep assuring us that the worst is over.
The underlying concern is that we still cannot get a clear assessment of global financial risks because of what we can’t see: the interconnectedness of global banking; offshore banking; off balance sheet vehicles; and regulatory arbitrage where U.S. financial institutions move high risk operations to foreign locales with light-touch regulators.
It now emerges that there are significant financial ties between JPMorgan Chase, which experienced three suspicious deaths of employees in their 30s in January and February of this year, and two Swiss insurers where a suspicious executive death occurred in August of 2013 and another this past January, the week before a JPMorgan executive was found dead on a 9th level rooftop of the bank’s European headquarters in London. Continue reading
A U.S. investment-management firm has filed a lawsuit against the five banks that set the London benchmark gold price, alleging that the banks conspired to manipulate the price of gold for their own gain.
Documents seen by The Wall Street Journal show that AIS Capital Management, based in Connecticut, filed a class-action complaint late Monday against Barclays PLC, Deutsche Bank, HSBC Holdings PLC, Bank of Nova Scotia and Société Générale SA in the U.S. district court for the Southern District of New York. Continue reading
Government spending is out of control and, while most say they want spending cuts, people oppose cuts that impact them. Among those who get government money, there’s practically an unspoken, unbreakable pact to keep the money coming. But when I say that the national debt cannot be paid off, it’s not a political forecast; it’s a statement on the flawed nature of the dollar.
Astute observers call the dollar a fiat currency. Fiat means force. It’s true that we’re forced to use the dollar (e.g. by taxes on gold) but the dollar is also irredeemable. There’s no way to cash it in. The dollar is credit that is never repaid. Today’s dollar is a dishonored promise. Continue reading
The digital “Bitcoin” has bit the dust at Mt. Gox Bitcoin Exchange; over $400 million US has evaporated, or perhaps moved into someone’s pocket. The news is all over the Internet these days.
“Digital money” is accepted world-wide. There exists only a remnant of fiat paper money which is increasingly and deliberately made more difficult to use and transport physically. The reason being, that digital transactions leave a trail of information which governments use to control the behavior of their subjects (we can hardly call them “citizens” any longer) whereas citizens using paper money in their dealings leave no trail.
A bank in Mexico, of which I have personal knowledge, receives millions in dollar bills every week in thousands of individual money-exchange transactions. This presents a problem for the bank. Why? Because not one bank in the US will accept these dollar bills (mostly twenties) for credit to the Mexican bank’s account. Continue reading
Circumstances are at such a point that one no longer needs a justifiable reason for being long physical gold and/or silver. Does it matter that the 50 day moving average is going to cross the 200 day moving average, now being bandied about as though there were a degree of magic associated with the event? Does it matter anymore that China remains a record buyer of physical gold for over a year? Did it ever matter that coin sales to the public have been setting records for well over a year?
Will it matter to know that the manipulation of gold has now been acknowledged by the totally incompetent main stream media? Is it not a foregone conclusion that nothing will come of any “investigation” by the bought-and-paid-for agencies responsible for ensuring such “events” do not happen? Does it matter that the “suicides” of several bankers over the past few weeks have all been immediately determined as “non-suspicious” by police on the scene?
The answer to all the above should be an obvious No! Continue reading
The Federal Reserve should be willing to let inflation temporarily run above its target level so as to more quickly bring the economy back to health, a top Fed official said on Friday, even as a second policymaker signaled the very idea left him cold.
The debate, between Chicago Fed President Charles Evans and Philadelphia Fed President Charles Plosser, underscored a fundamental disagreement over the central bank’s optimal approach to policy under new Fed Chair Janet Yellen.
To Evans, one of the Fed’s most dovish policymakers, allowing inflation to run above the Fed’s 2-percent target would be a small price to pay for bringing the U.S. economy back to full employment quickly, and could even signal the Fed’s commitment to making good on its goals.
To Plosser, an ardent policy hawk, letting inflation rise above the target would call into question the Fed’s commitment to its goals, undermining its policy effectiveness. Continue reading
- The billionaire banker fraternity where cross-dressing new members make jokes about Hillary Clinton and drunkenly mock the financial crisis
- Kappa Beta Phi was founded in 1929 and has remained secret for more than eight decades
- One reporter managed to sneak into their January 2012 induction for new members
- Witnessed them dressed in drag, telling jokes in bad taste and mocking Main Street and the bailout
Lavish: This is the ballroom of the St.. Regis Hotel in Manhattan – where Kappa Beta Phi met in January 2012 and were infiltrated by reporter Kevin Roose
A journalist who gate-crashed a secret fraternity of billionaire bankers has laid bare the booze fueled, cross dressing antics of its members as they openly mocked the 99 percent and made light of the enormous government bailouts of 2009. Continue reading
- The lucky unnamed couple in their 40s stumbled on the historic find on their property last spring
- The gold coins dating from 1847 to 1894 were stashed in eight cans along a trail the couple had walked for years
- The once in a lifetime hoard is likely the most valuable ever found in the United States
The coins were store chronologically, with the 1840s and 1850s pieces going into one canister until it was filed, then new coins going into the next one and the next one after that. The dates and the method indicated that whoever put them there was using the ground as their personal bank
A Northern California couple out walking their dog in February 2013 on their Gold Country property stumbled across a modern-day bonanza: $10 million in rare, mint-condition gold coins buried in the shadow of an old tree.
Nearly all of the 1,427 coins, dating from 1847 to 1894, are in uncirculated, mint condition, said David Hall, co-founder of Professional Coin Grading Service of Santa Ana, which recently authenticated them.
Although the face value of the gold pieces only adds up to about $27,000, some of them are so rare that coin experts say they could fetch nearly $1 million apiece. Continue reading
Did you know that the U.S. state that produces the most vegetables is going through the worst drought it has ever experienced and that the size of the total U.S. cattle herd is now the smallest that it has been since 1951? Just the other day, a CBS News article boldly declared that “food prices soar as incomes stand still”, but the truth is that this is only just the beginning. If the drought that has been devastating farmers and ranchers out west continues, we are going to see prices for meat, fruits and vegetables soar into the stratosphere. Already, the federal government has declared portions of 11 states to be “disaster areas”, and California farmers are going to leave half a million acres sitting idle this year because of the extremely dry conditions.
Sadly, experts are telling us that things are probably going to get worse before they get better (if they ever do). As you will read about below, one expert recently told National Geographic that throughout history it has been quite common for that region of North America to experience severe droughts that last for decades. In fact, one drought actually lasted for about 200 years. So there is the possibility that the drought that has begun in the state of California may not end during your entire lifetime. Continue reading
I have said it many times: central banks will be the major drivers of gold bullion prices going forward. Countries like China and Russia will need more of the yellow metal, because they simply don’t have enough in their reserves compared to the United States, France, Germany, or Italy (the four central banks with the biggest gold bullion reserves).
A news story that ran last week in the Shanghai Daily said the People’s Bank of China is expected to announce it has more than doubled its gold bullion reserves—from 1,054 tons to 2,710 tons. The article explained that China’s central bank bought about the same amount of gold in 2013 that it did during the years from 2009 through to 2011 combined! (Source: Shanghai Daily, January 17, 2014.) Continue reading