Archive | May, 2013

Turn off the programming

15 May

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A correspondent recently wrote that he was tired of watching mainstream media news programming.

Here was my reply:

My solution, a couple of years ago, was just to stop watching the news. It’s all just government propaganda, anyway, delivered by journalists terrified of losing their lobby correspondent passes, BBC sinecures, and other ‘government beat’ reporting privileges.

Most of their stories – except perhaps sex and sport, which provide us proles with relieving circuses – are just government press releases anyway. The government-licensed media franchises suck them in like manna from heaven and treat them as holy gospel (e.g. The plight of the ‘rebels’ in Syria, as written by a Foreign Office policy wonk).

All genuine news comes from the Internet now anyway (e.g. the horror of the Al Qaeda/MI6/CIA Western-government-supplied ‘rebels’ in Syria releasing Sarin gas on civilians and being appalling cannibals). That’s why the self-appointed ‘authorities’ (who failed to receive their ‘authority’ either from me, you, or God) want to wrap the Internet in chains.

The only other supposedly non-government news-reporting sector is business and finance, but that’s a joke, as 95% of financial firms are government-sponsored enterprises run by government-privileged (e.g. FSA-approved) semi-civil ‘servants’, dependent on government-provided fiat money, fiat money insurance, and unstated guarantees of bail-outs.

Do yourself a favour. Just stop watching ‘the news’. Every time in the future you might then occasionally re-watch it, it becomes extremely obvious how manipulated it is, and how the obvious answer to virtually every ‘problem’ it discusses, is that the government should get booted out of whichever area the ‘problem’ is in (e.g. the NHS, various fomented wars around the world, the state of the roads).

It becomes blindingly obvious that private enterprise, the free market, and free competition should be employed instead, which is why you constantly hear about failures of the NHS to supply health sevices, but never hear stories about semi-free supermarkets failing to deliver food services. (I’m sure the British government would like to have created an NFS, a National Food Service, after its second world war, extended upon its rationing scheme. Even now it is constantly interfering in food services to make them worse (e.g. their war against fat). But the horror of an NFS is just too appalling to contemplate – even for the idiots of Whitehall – with endless queues, miserably bad food, and deaths through malnutrition. So even parliament’s clowns are too reticent to do it in the open. Though expect fat rationing and ‘luxury food’ taxes, anytime soon.)

Alas, never hold your breath waiting for any ‘news’ reporter to ask the dreaded question, “Why doesn’t the government just stop making a continual hash of this and simply get out of the way?”

No licensed mainstream journalist is ever going near that particular elephant in the global media garden, because it’s called ‘news programming’ for a reason. The two main programs are that ‘government is always good and always necessary’ and that ‘we need more government’. However, it’s a mark of high intelligence that these two constant messages are making you so tense. Your mind is obviously rejecting the implants. Avoid the propaganda programming entirely. Do yourself a mental favour.

Turn it off.

As the Oracle said in ‘The Matrix’, you’ll start feeling better straightaway.

Catherine Austin Fitts on precious metals, digital currencies and globalised central planning

11 May

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A couple of days ago, for GoldMoney, I had the great pleasure to speak to Catherine Austin Fitts, the author and publisher of the popular Solari report. We talk about gold, quantitative easing, Bitcoin, and much more. Here is the interview:

Episode 122: Andy Duncan has the pleasure of interviewing Catherine Austin Fitts, known for her much-read Solari report. With a wealth of experience on Wall Street and time in Washington politics, Catherine’s insights are extremely valuable and much lauded.

Catherine discusses the background to how Solari Investment Advisory Services begun and her work and research on the corruption that can be found within some aspects of government and the finance industry — with a focus on the mortgage market.

The US economy is reviewed and then Catherine shares her view on gold and silver as money before moving into a fascinating discussion about Bitcoin, digital currencies and the future of currencies. She also discusses the recent market activity in precious metals.

Catherine speculates on the motives of the central planners and how the financial system is evolving, and speculates on whether gold will play a new role in our future monetary system.

Lastly Catherine offers some great advice about what one can do to protect and safeguard their future.

This podcast was recorded on 9 May 2013.

To get your own GoldMoney account, with the Euro Vigilante as your referring affiliate, click on the picture below to visit the GoldMoney.com website, then click on their ‘Free Sign Up’ button, once you’re on their home page…

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G20: Global Finance in Transition conference takes place in Istanbul

8 May

Hosts of the event

Interesting news emerges from within the bowels of the G20 organisation, the nascent world-government-in-waiting:

“On May 7-8, 2013, Istanbul (Turkey) will host the Global Finance in Transition conference. The event is organized by the Central Bank of the Republic of Turkey jointly with the Reinventing Bretton Woods Committee and the Russian Ministry of Finance.

Representatives of G20 finance ministries and central banks, international organizations, research institutions and businesses will take part in the conference. Head of Turkey’s Central Bank Erdem Basci, Deputy Minister of Finance of Russia Sergei Storchak and Executive Director for the Reinventing Bretton Woods Committee Marc Uzan will give the opening remarks at the conference.

Five panel discussions are planned as part of the event. They will cover the international financial architecture, in particular, changes in the flow of global investments, local bond markets and growth in emerging economies, incentives and determinants of investment and other issues. In addition it is expected that new instruments and incentives for making the global financial system safer will be suggested during the forum.”

It’s strange, of course, why the complete re-architecturing of the global financial system has been entirely missed by the mainstream media, despite being right in front of them. Alas, they have more important stories to cover, such as retiring soccer managers,  boys with pet cheetahs, and Britney Spears finding dieting tough.

Well, I suppose such frothy bubbles keeps us proles happy, but investigative journalism certainly is a lot less challenging these days than it once aspired to be.

If we see any more emerge from this apparent non-story, we’ll be sure to let you know.

Sibileau: Governments will be forced to resort directly to basic asset confiscation

7 May

Poppy

Stop all the clocks, cut off the telephone, prevent the dog from barking with a juicy bone, silence the pianos, and let the aeroplanes circle moaning overhead. Then read this article by Martin Sibileau:

(Here’s the PDF version.)

Yes, it is an exceedingly technical article, and I would point-blank refuse to sit a 2-hour examination paper based upon it. However, if you wrap a wet towel around you’re head long enough the article makes sense, particularly its last paragraph, and especially its last line:

“Over almost a century, we have witnessed the slow and progressive destruction of the best global mechanism available to cooperate in the creation and allocation of resources. This process began with the loss of the ability to address flow imbalances (i.e. savings, trade). After the World Wars, it became clear that we had also lost the ability to address stock imbalances, and by 1971 we ensured that any price flexibility left to reset the system in the face of an adjustment would be wiped out too. This occurred in two steps: First at a global level, with the irredeemability of gold: The world could no longer devalue. Second, at a local and inter-temporal level, with zero interest rates: Countries can no longer produce consumption adjustments. From this moment, adjustments can only make way through a growing series of global systemic risk events with increasingly relevant consequences. Swaps, as a tool, will no longer be able to face the upcoming challenges. When this fact finally sets in, governments will be forced to resort directly to basic asset confiscation.

As they say in cheap novels, you have been warned.

Ben Bernanke is the Mao of Central Banking

6 May

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Another great Max Keiser show, as he details the continuing failures of the western world’s central banking central planners. Look out for the great shot of a truck backing up, to metaphorically fill itself up with gold.

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the Great Leap Forward in central banks’ central planning which has driven the Housewives of China to buy 300 tons of gold, an act of disloyalty to the central bank revolution. Max notices that Mrs. Wang has displaced Mrs Watanabe as the most important buyer in global financial markets. In the second half, Max talks to Alasdair MacLeod of Goldmoney.com about everything to do with the physical and paper gold markets – from open interest to naked short selling by bullion banks.

Book review: The Market for Liberty, by Linda Tannehill & Morris Tannehill

5 May

The Market for Liberty

In the comic book legend of Superman, an occasional ingredient in the story is the caped one’s ice cave, the Fortress of Solitude, usually located somewhere up near the North Pole. In the movie series, Christopher Reeve created this via a dense Kryptonian crystal, possibly a sun-stone sent to Earth with the escaping infant child by Superman’s father, Jar-El, as played by Marlon Brando.

This super-concentrated nano-crystal contained all the knowledge and memories of the Kryptonian race, to enable Superman to reach his full potential.

And in many ways, The Market for Liberty, by Linda and Morris Tannehill,  originally published in 1970 and now re-published by Laissez Faire Books, is a similar kind of nano-crystal sun-stone, containing virtually all the light required to form a complete global society free from the parasitical and metastasizing carcinoma virus of peace-destroying, wealth-destroying, and liberty-destroying government.

To provide a solid roadway into freedom I would normally recommend that a bolstering literary canon should include Ludwig von Mises, Murray Rothbard, Bruce Benson, Ayn Rand, George Orwell, and Hans-Hermann Hoppe. If, however, you want the whole freedom rush in one hit, this book could provide that super-dense Cuban cigar.

Take a look at this typical quote from the book.

“All that is required for the defeat of evil is that good men stop their unwitting support of it.”

If that seems a little simplistic, some firm meat backs it up.

“The majority of people firmly believe that we must have a government to protect us from domestic and foreign aggression. But government is a coercive monopoly which must demand sacrifices from its citizens. It is a repository of power without external check and cannot be permanently restrained. It attracts the worst kind of men to its ranks, shackles progress, forces its citizens to act against their own judgment, and causes recurring internal and external strife by its coercive existence.”

The first part of the book, labelled The Great Conflict, consists of a kind of Rothbardian-Randian soup, all compressed into a handy travelling cube, with plenty of motivational herbal notes along the way, such as this one.

“The free-market way of doing things is always superior to the only method government can use — coercion, as freedom is always superior to slavery.”

This first part is the best section of the book, flowing along beautifully like a wild canyon ride. After this poetry, we then towel ourselves down for some serious prose by progressing into part II, labelled A Laissez-Faire Society. Here, the authors dissect the Benson-Hoppe areas of competitive security production. We begin with straightforward fare.

“The belief that society couldn’t be defended without a government also assumes that government does, indeed, protect the society over which it rules. But when it is realized that government really has nothing except what it takes by force from its citizens, it becomes obvious that the government can’t possibly protect the people, because it doesn’t have the resources to do so.”

However, virtually every question a devil’s advocate minarchist could think of is tackled by the Tannehills in their quest to prove the unnecessity of the state. However, as others have noted before me, the ‘Randian’ nature of the book does lead to what I would consider a slip-up on the ‘intellectual property’ front. This perhaps marks the book’s first slight Achilles Heel.

Another distraction might appear to those already initiated with the Bensonian and Hoppeian ideas proclaimed – the justifications on how a truly free society will solve its security problems  start to become relentless. In wave after wave the book prescribes how the free market will solve the problems the state claims to solve now, mostly related to justice, peace, and security (all three of which the modern state lamentably and quite clearly fails to solve). However, although this forensic detail provides great ammunition for those who might occasionally find themselves trapped inside otherwise intractable arguments with minarchists – when perhaps they could be relaxing with a glass of pinot noir instead – we actually lack any real detailed clarity on how a free society will work once we take our freedom back from the state.

Could you predict from the outset how undirected biological evolution would progress in a complex free environment in the light of continual and unpredictable environmental change? Farmers try to tame, control, and direct evolution to satisfy their own personal needs, just as tax farmers do the same with society. But the minute a farming whip hand gets removed, nature and society quickly re-assert themselves into axiomatically-ordered chaos.

If evolution holds a combined nature of spontaneous chaotic unprediction based upon an axiomatic scientific framework of nucleic acid replication, then why would societal freedom be any different? The purpose of Austrian economics lies in mapping the axiomatic nucleic acid of society. Alas, how any isolated society will evolve once free of criminal restriction will never resolve itself entirely from the entrepreneurial fog of speculation.

Yes, some entrepreneurs such as Doug Casey achieve greater fog-guessing success than others, perhaps because they hear the helical chimes of crystalline nucleic acid patterns better than the rest of us, though none of these entrepreneurs ever sail in clear blue waters without the need for a fog horn, even when pressed by troublesome podcast hosts to ‘tell us what might happen next?’

That’s the beauty of both freedom and evolution, an intimate pair of development strands twisted together as related, spontaneous, and complex-chaotic processes. Both perform optimally to produce the greatest order when free to go whichever way they perform best given the changing and tangled environment in which they exist from moment to moment. Yes, the underlying frameworks of Austrian economics and nucleic acid replication ultimately provide ever-evolving order in both systems, but mapping out the future too closely can harm the reputation of both successful entrepreneurs and successful evolutionary scientists.

Having said all that, if you are a reluctant minarchist and you need some help, persuasion, and plausible ideas, to come to over the light side, this may just be the ideal book to bring you over a possible Stockholm-syndrome chasm of a vestigial emotional connection to a gang of bandits called government which has preyed upon your life’s energy output from birth.

Think Matrix. Think red pill.

The metaphorical call to man the barricade then comes in part III, labelled How Do We Get There?, which says what you might expect about privatisation, taking ownership of your life, and rejecting government wherever you can. One interesting trumpet note here leads the Tannehill charge, going beyond Rand or even Murray Rothbard, which is a call for the U.S. dollar’s replacement by something private people can transact safely and securely. Although they detail the importance of gold and silver as money, they believe it may take a while for these precious metals to fill any void left by the dollar’s ultimate and probably sudden collapse. I was particularly struck by the end of this line, first written and published 43 years ago.

‘…if it comes as a result of people deserting the dollar for a truly valuable medium of exchange than if the dollar collapses from hyper-inflation, leaving them no money commodity at all.’

Shades of Bitcoin anyone? It truly is a remarkable book, decades ahead of its time, and still highly useful today.

Once you’ve swallowed the Tannehill pill, prepare to throw away your Union Jack cufflinks, your Swedish flag backpack, and your Tricolour underwear. See why this book helped convert Doug Casey to the reality of true freedom. At least, that’s what it says on Wikipedia, and as that wonderful Internet source of information drew its inspiration directly from the ideas of Hayekian spontaneous order, who are we to argue?

You may also learn to feel the aspiration – no matter how long it takes to arrive – of a totally voluntary society, whether this society discovers itself on Earth, which I personally consider unlikely, or whether it first materializes out there on the upcoming frontier of space.

This may be a territory, an island, an asteroid, a moon, or a planet of super men and super women who have risen above the tax farming propaganda of criminal gang states via the inspiration of books like The Market For Liberty.

Perhaps we should therefore call this first free place Krypton? Or as our Bitcoin-supporting friends might spell it, Crypton. Though I would be happy for it to be called ‘Virgin Gulch’ or ‘Red Bull Field’, or named after whichever other private organisation first founds this magical place to reboot human progress after the disastrous 10,000 year experiment of the state.

After all, who am I to predict which company of free men and women will get there first and what they’ll call it? Though it would be really good if this first free city were named ‘Euro Vigilante Haven’.

That really would be quite a place.

Everything is in a bubble and it’s going to be pricked

4 May

Eagle Above

Another excellent CBC documentary from Canada, detailing how the  shibbolethic technocrat disciples of Keynes are sleepwalking the western world into Doug Casey’s greater depression, one round of quantitative easing at a time.

At the end of the documentary, Neil Macdonald states that it’s impossible to know whether this will end in a recovery or a reckoning. He’s playing with his audience of course, because Mr Macdonald knows there will be a reckoning, just as all Austrians know there will be a reckoning.

The central bankers are trying to keep the stagnating western economic balloon floating through the air. They are preventing the downward adjustment of prices that want to fall under the compelling force of free market gravity by pumping in gargantuan amounts of uplifting fiat currency helium:

  1. If the Basel Cabal stops pumping in the helium – as they briefly experimented with in Cyprus – this western economic balloon will implode and its basket underneath will plummet towards the Earth in a hyperdeflation to end all hyperdeflations.
  2. If the Basel Cabal keeps pumping in the helium, the balloon will swell to a point where its seams will rip apart and explode, in a global hyperinflation to end all hyperinflations. In this explosive case, nobody at all knows where the basket underneath will land. (The relatively small and isolated Weimar hyperinflation gave us Hitler. What will a hyperinflation across the entire western world give us?)

And the longer the Basel Cabal keep trying to push away this malinvestment-correcting monetary implosive/explosive event, the worse the crack-up boom will be and the longer it will last when its chaotic trigger is finally pulled by some Cyprus-style event.

As one of the documentary’s speakers says, everything is in a bubble and this bubble is going to be pricked by some random black swan event.

Just make sure you’re positioned appropriately, perhaps by using TEV’s services, when this random black swan eventually pricks the Basel Cabal’s fiat currency bubble:

CBCNational: The world’s central banks have printed unimaginable amounts of money in recent years. Neil Macdonald explores what this means for the global economy and for your financial well-being.