Archive | April, 2012

Ron Paul Demolishes CNBC for an Hour

30 Apr

This show is unbelievable. At least 6 different people offer the most complex questions they can throw at the aging-yet-energetic congressman, Ron Paul. Calling his views “extreme”, bringing on multiple economists, and implying that he has no chance of victory are just a few of the games they played with him. But Congressman Paul rose far above the fray.

No one can watch this video and deny his competence and commend him for such excellent answers. Furthermore, Paul is extremely patient, dignified, and nuanced in all his assessments and responses. This appearance is flawless as it gets.

And yet, one gets the sense that, in spite of his ability to comprehensively speak to all types of issues, these people will simply continue obfuscate and misrepresent such ideas in the future.

But man, what an incredible performance from Ron Paul. Go Ron!


Money Printing and The Sex Tourist Industry

28 Apr

Further Abuse of American Fiat

I highly recommend reading this fascinating account from John Keatley, an American photographer who went to the Philippines to do an exposé on the sex-tourist industry, which is also highly recommended.

Ironically, he ran into a politician from New Mexico, who was frequenting the Red Light District of Angeles. Not only was this politician aware of John’s presence, but encouraged him to take pictures of him and email them to him. After the story broke, Keatley was interviewed about it as well as the politician.

In this blog, we often uncover and discuss the injustices that come America’s abuse of its economic superiority, most notably trade manipulation through money-printing. But the whole spectrum of our abuse is much broader. This is just one more example of it. Ever since World War 2, which my financial readers know was the economic peak of America, GI’s, tourists, and businessmen have frequented Angeles, and other developing nations for cheap sex.

Why does this happen? Simply because our currency, though much of it is not earned but printed from nothing, is still highly valuable, causing other countries contort their entire legislative system to accommodate American lust.

If this is how we want to utilize our “prosperity”, we deserve a depression.


Brazil’s President Nails It

21 Apr

Start the link at 17:35 to get the good stuff.

President Dilma Rousseff of Brazil recently came to Washington to meet with President Obama to discuss a variety of issues, most of which dealt in the economic realm. While they met with the press, President Rouseff unleashed a scathing attack on the expansionist monetary policies of the U.S.

Her most poignant criticism focused on the way in which the U.S. spending programs drive U.S. monetary expansion (i.e. inflation) that gives the U.S. an unfair trade advantage especially against developing nations, including Brazil.

Note this moment: 18:20. Her translator mistakenly said “[The US expansionist monetary policies] lead to a depreciation of emerging currencies.” At this point she corrects him and he says, “Rather…a depreciation of  developed currencies.” What that means is simple: when we print more dollars, our dollars are worth less. Thus, our exports are cheaper for other countries to buy. Thus, our products sell and other countries who cannot depreciate their currency as much as we can, simply are stuck with having equal goods which artificially become more expensive to purchase.

Few politicians know economics as well as she.

This is exactly the point we’ve been talking about for the two months we’ve run this site. Because America owns a major (some might say THE major) world currency, we can print out our own money to buy from other countries. Think of all the massive programs like SNAP where America hands out free money to the masses to buy essential goods at places like grocery stores. Those are the fiscal policies that enable so much monetary expansion. Inflation not only kills the middle and working classes, it viciously attacks smaller countries by causing massive trade disadvantages.

President Rousseff is a courageous woman who clearly has done her homework. She is absolutely right to criticize Obama in this way. It is no disrespect to speak the truth like she is doing.


Condensed Crash Course

18 Apr

One of the reasons young people are having attention deficit issues is that there are few people worth paying attention to any more. Chris Martenson is one of the people you need to pay attention to. And it isn’t hard to. This condensed version of the much longer 3+ hour version “Crash Course” (also equally worth your time) is an excellent way to get to know what Chris has to offer.

Why should you listen to Chris?

In short, because he has a very holistic view of the world. I don’t agree with everything he says, but there is very little he ignores when he says what he does, and that’s important. One of the main priorities I have in this blog is to incorporate what God says into as much of what I think about economics as I can. Chris has helped me to do that.

A Suggestion for CNBC

16 Apr

There are rarely clear options for those who seek truth in financial markets today. On one side of the fence, you have people like Dennis Gartman, who come out on every other side of gold depending on the month, care nothing about fundamental analysis, and like to come on TV to brag about every trade that they (allegedly) made like they just won big at a casino, only they can never tell you when the next one will be. And then you have the Melissa Lees of the world who rehearse and prepare just well enough every day in order to know how to address questions to the Gartmans of the world and repudiate or ignore others who actually do fundamental analysis.

ImageDon’t get me wrong, both of these people seem to have plenty of experience and a fair amount of data in their preparation, but they have no curiosity.Truth as a concept is lost on them. CNBC gives you other options, like the hyperactive Jim Cramer and the reactionary Rick Santelli, but what kind of personal responsibility do they take for their speech? How much real research can you do before you host your daily show?

These people are supposed to be real experts, but I see no reason to trust them. Give every person who regularly appears on CNBC a hypothetical $10,000, tell them to invest it in any assets they choose, and make a Fox-Box in the upper left hand corner that shows the total return of that portfolio every time they host their show. Then you have transparency.

Will it happen? I don’t think so. This kind of exposure would be so detrimental to the idea of a free exchange of equally unaccountable ideas, it would probably make many segments of programming untenable. It would have been like making a camera crew follow Barry Bonds or Lance Armstrong around whenever they spoke with their “trainers”, “doctors”, and other unseemly associates. America believes the lie and idolizes the liars far too often for the person who wants to know what’s really going on. But one day the charade will end.


Where Should You and Your Metal Go?

14 Apr

Hint: different places.

One of the most difficult tasks is figuring out where to store your tangible assets, like gold or silver. Another one is figuring out where to best utilize your primary means of production: you!

Throw in some technical analysis of Apple and you should have plenty to think about.

Brother John has put together a great video discussing the silver market, Apple, metal storage, and Asia.

Highly recommended.

A Redirection for Preppers

12 Apr

I believe it is prudent to store up commodities in a variety of forms in lieu of a highly problematic future, in America and elsewhere. Yet it is no help to ever panic about it. If a person knows Who is most important, preparation for the future is moderated by trust in the final outcome of whatever events a person anticipates. You don’t save yourself; God saves you.

The following is my own (likely mistaken) translation of a warning Jesus makes to this effect in chapter six of Matthew’s gospel. I hope it encourages you to trust God more.

No one is able to serve two masters. For he will hate one and love the other, or hold firmly to one and despise the other; you are not able to serve God and money. Therefore I say this to you, do not be anxious for your life, what to eat [or drink], nor what to put on your body: is not life more than food and the body more than clothes?

Look at the birds of heaven that neither sow, nor reap, nor gather it together into storehouses; yet your Father in heaven feeds them. Are you not more important than they? But who from your worrying is able to add to his life one cubit? And why are you worrying about clothing? Learn from how the lilies of the field grow: they neither toil nor spin, but I am telling you that in no way was Solomon in all his glory adorned like one of them. But if God thus clothes the grass of the land which exists today and tomorrow is thrown into the furnace, will he not much more clothe you, ones of little faith?

Therefore do not worry saying “What to eat?” or “What to drink?” or “What to wear?”. For all these things the nations are seeking after. For your father in heaven knows that you need all these things. But seek primarily the kingdom of God and the righteousness of him, and all these things will be added to you. Therefore, do not worry about today, for today will worry for itself; sufficient is the day for its own evil.