Archive | April, 2013

New $100 dollar bill just released!

26 Apr

According to the St. Louis Fed, the U.S. adjusted monetary base has just exceeded 3.0 trillion for the first time. That happened on April 17th:

St Louis Fed US Money Supply

Please see below the appropriately and newly designed $100 Bill:

New Ben Bernanke 100 dollar bill

The Pope of Fraud, Ben Bernanke

26 Apr

Max Keiser and Stacy Herbert examine the recent gold crash in their usual immutable style. After the break, they speak to Andrew Maguire who discusses what he calls a ‘gold default’ in the bullion bank arena, led by many banks now starting to return cash instead of gold bullion, when clients ask for their gold.

Published on Apr 25, 2013: In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the season for CRASH as algos reading Twitter cause a hack crash in New York; ghost traders in the shadow banking system cause gold ‘slaughters’ in the precious metals markets and Joe Weisenthal seeks smoke signals from the Pope of Fraud, Ben Bernanke. In the second half of the show Max talks to Andrew Maguire about precious metals markets, manipulation and failures to deliver.

The Gold Chimpanzees

24 Apr


So, it appears bullion banks have been conspiring to take down the futures price of gold to try to profit from the ensuing over-leveraged multi-stopped panic.

But this is absolutely fine with me, on several different levels.

First, I would definitely be fine with this in an entirely private world, if private speculators directing bullion-market banks tried to do this to extract economic profits.

If they got it right, they would make a fortune by exploiting the market’s incorrect Hayekian knowledge that gold was more highly valued than market reality (the only true reality) actually judged it to be.

If they got their massive shorting bets wrong – along with the associated price manipulation shenanigans – then they would be bankrupted (or at least lose extremely heavily) and the imperfect Hayekian knowledge of the market would show us that gold was actually undervalued according to the fickle instantaneous subjective collective desires of eight billion free people.

However, alas, we fail to live inside a private market.

We live instead inside one in which the chaos of delusional force-initiating mafiosi government constantly tries to interfere with market realities, for instance by telling these bullion bank shysters to keep any profits they may make on shorting gold and by promising to print infinite amounts of paper scrip to back up any fiat losses they might make.

Heads you win, tails you fail to lose is a bet I would like to be on the inside track of, if I ever suffered an ethics bypass on robbing my fellow human beings.

So, am I huffing and puffing with indignity as I watch the manipulations of the paper gold market play with what actually may be real volatility in gold’s relentless rise against fiat paper scrip?

Of course not.

I’m just buying more physical unleveraged gold, thankful that the western central banks are willing enough and stupid enough to keep selling me hard cold real tangible assets in return for their elastic paper monkey bubble notes.

The problem of retaining my gold when these self-same chimpoid government monkeys try to steal it back from me in the future, to fund future violent stupidities, I will leave to another post.

In the meantime, back up your truck. Enjoy the cheap gold while it lasts. And fill that truck up.

The unintended consequence of the central planning government bureaucrat clots giving us all all of this gold at knockdown prices will show itself soon enough, fear ye not.

The trick is to be on the right side of the George Carlin joke, when it eventually materialises, to leave homogenised egg all down their bamboozled condescending faces.

You have to remember that these clowns are the same chubby fools you were with at school who spent too much time reading mathematics books, too much time feeling sorry for themselves, and not enough time working out how to chat up the opposite sex.

They’ve spent their lives trying to get revenge on you for kissing all the people they wanted to kiss, but they still failed to learn the only lesson that matters.

And that is, that in the end, the truth will out. And the truth is, that these people, these central bankers, these masturbationary fools, these chubby sad incompetents, are all losers.

And that you are a winner.

And as you’re a winner, help them keep losing to prove me right.

Buy gold. Keep it physical. Keep it unleveraged.

And make sure you keep it safe enough to stop it being stolen back from you in the future.

You are fighting the good fight.

And together, in the glorious pioneering spirit of 1776, we shall win.

The Great Fiction: Property, Economy, Society, and the Politics of Decline

22 Apr

Professor Hoppe describes his latest book, available at Laissez Faire Books.

We will review this book, soon.

Those assuming the review will be positive, will most likely win any bets on the matter.

Book Review: Totally Incorrect, by Doug Casey

20 Apr

Doug Casey Totally Incorrect

The problem with reading academic Austrians, such as Mises and Rothbard, was once related by Ludwig von Mises himself, to his intended wife Margit von Mises before she accepted his proposal for marriage.

You must understand, he said, that although I am an expert on money, I will never have any.

And so it goes for most academic Austrians.

Mostly achieving extra income through book sales, where a mega-seller means anything over 10,000 units, a few manage to combine academia with other outside interests to magnify their usual professorial salaries. However, even if you love their work, most will squirm and shirk when confronted by three important investment questions; “when will the next government-induced bubble arrive?”, “what should I invest in when it does?”, and the culminating sixty-four trillion dollar challenge, “at what point should I exit from that bubble to gain the greatest financial advantage?”

So if you want Austrian investment advice, you should avoid seeking enlightenment from academics and follow one of the major Austrian-influenced über-gurus instead, most of whom can be counted on the fingers of a three-fingered man named Slim, who’s often out of town.

One of these inspirational gurus – a man who I’ve been lucky enough to get to know personally – is Doug Casey, Chairman of Casey Research, gun owner, polo player, cigar smoker, whisky drinker, and an all-round true American, which in this Hamiltonianesque age has become an unfortunately rare and endangered breed.

In the finest tradition of his writing, Doug Casey’s latest unmissable book, Totally Incorrect, isn’t merely politically incorrect, it is precisely and exactly the opposite of everything that the Gramscian leftists – with their Orwellian obsession on the power of language – want you to read.

Where Gramscians and their benighted ilk broadcast lies, propaganda, environmetalism, socialism, and fascism, Casey broadcasts nothing but the pure gold of truth, unalloyed with tungsten, though perhaps delivered inside a cold steel jacket spinning behind a diamond-tipped nosecone.

The book consists of a faithfully unedited collection of the best Conversations with Casey, gathered over the years and transcribed by his regular conversational partner, Louis James, the editor of International Speculator. Although it’s true that there is a little repetition when you read all of these penetrating conversations in one hit – as I did on a six-hour flight from Kuwait City to London – it is all the better to get the flavour of these conversations in the raw, as they happened.

Along the way, instead of being told by an Austrian professor about what’s going to happen, as we wanted to discover at the start of this review, you learn something far more lucrative and valuable instead. That is, how to answer such questions yourself, from inside the heart of your own mental, intellectual, and experiential resources.

So if, as defined in the book, the word education arose from ancient Rome with its meaning “to lead by drawing out”, this makes Totally Incorrect the most educational book I have read in quite some time.

And if learning about the guts of investment fails to raise your Millenium Falcon, the sheer entertainment power of a politically incorrect raconteur describing Fidel Castro in the flesh, the pain of a polo ball hitting your foot at a hundred and twenty miles per hour, or what it’s like to watch a car crash from inside a tumbling Ferrari, ensures that this collection of conversations is a great rollercoaster read in its own right.

Just to make his book ultra-perfect, perhaps the author might also have toted a pump action shotgun on the front cover, along with the whisky and the cigar. Although this might have broken the contemplative mood, it would certainly have been visually descriptive of many of the passages inside.

However, aside from that minor quibble, this book made my flight from Kuwait pass by in a flash. And when I got a sarcastic response from the passport-checking drone at the other end, at Heathrow, when I refused to thank her for checking my papers, or indeed when I refused to speak to her or to visibly acknowledge her existence at all, my inward smile over this tiny personal victory over the state really did make my day.

So thank you Doug for reminding me who is in control of my life and for encouraging me to dream of the day when all the passport checkers are made by the free market to go and do something useful instead.

The Great Gold vs Bitcoin Debate: Casey vs Matonis

12 Apr


Yesterday, following the Mt. Gox takedown, I acted as referee between Doug Casey, of Casey Research, and Jon Matonis, of Bitcoin Foundation, as they discussed the relative merits of two free market monies, gold and Bitcoin. It was a great contest.

Episode 121: Doug Casey of Casey Research debates e-money researcher and “crypto economist” Jon Matonis on the virtues – or otherwise – of Bitcoin, and how it compares to gold as a form of money.

Casey, a Bitcoin sceptic, notes that Bitcoin satisfies Aristotle’s definition of what constitutes “good” money in all but one important aspect: that it doesn’t have value in any kind of non-monetary sense, unrelated to its use as a medium of exchange. This is in contrast to precious metals, which have unique chemical properties and uses in an industrial context.

Matonis argues that this is unimportant set against Bitcoin’s strengths: notably the ease of transacting in them and its decentralised nature, meaning that there is no central point of attack for its enemies (whoever they may be). He also points out that – unlike gold – physical confiscation of Bitcoin, a la FDR in 1933, is for obvious reasons impossible.

This podcast was recorded on 11 April 2013.

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Gerard Casey: ‘No property is safe in the EU’

9 Apr

Gerard Casey GoldMoney

I spoke recently to the splendid Professor Gerard Casey about his philosophical notions of property, before moving this on to talk about money (as property), Cyprus, Iceland, Ireland, and other related issues…

Episode 120: The GoldMoney Foundation’s Andy Duncan talks to Professor Gerard Casey of University College Dublin (­/). They discuss the philosopher’s views on property and the implications of the recent levy on Cypriot bank deposits.

Professor Casey explains why there is a need for property and how the notion of property evolved historically. They go on to talk about how this relates to money and legal tender laws which are essentially the monopolisation of counterfeit.

Talking about Cyprus, Casey states that wealth confiscation can come in different guises — upfront via taxes or hidden via inflation. He points out the unintended consequences of the Troika’s strategy in Cyprus as the taxation of depositor’s bank accounts is leading to a flight from the banks which the confiscation was supposed to rescue from insolvency. It also reveals that no property is safe in the EU.

Finally they discuss the chances of a euro break up; Casey’s book on Murray Rothbard; and the appointment of the new pope.

This podcast was recorded on 23 March 2013.

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