Tag Archives: political instability

Fascinating Interview with Biographer of Blythe Masters (in English)

17 May

This interview presents the raw perspective of a journalist, Pierre Jovanovic, who spent several years researching the career of Blythe Masters. His comments are extremely insightful for everyone who wants to understand who she is and what she has done. Unfortunately, his book is only available in French. This interview is the only means I know of to access the core of what he addresses in his book.

For those of us who are familiar with Masters, much of what he has to say is merely confirmation of we know. What’s interesting is how seriously this man, who is more of a journalist than an economist, reacts to Masters’ effect on the global landscape.

I am deeply grateful for this opportunity to finally hear his thoughts. I encourage you to check out his website that says more about the book: http://jovanovic.com/angeQDM.htm. Thankfully, non-French speakers can use translation features in their browser (available at least in Chrome) to understand the page. Hopefully the book comes out in English too.


Jamie Dimon’s Obfuscation = JP Morgan’s Guilt?

13 May

I want to draw your attention to one of the most important things Jamie Dimon said to David Gregory in their recent conversation of JPM’s $2 billion proprietary trading loss:

GREGORY: The immediate question, the SEC is looking into this: Did the bank break any laws? Did it violate any accounting rules or SEC rules?

DIMON: So we’ve had audit, legal, risk, compliance, some of our best people looking at all of that. We know we were sloppy. We know we were stupid. We know there was bad judgment. We don’t know if any of that is true yet. Of course regulators should look at something like this, that’s their jobs. So we are totally open to regulators and they will come to their own conclusions. But we intend to fix it and learn from it and be a better company when it’s done.

The question Gregory asked was extremely simple: did you break any laws, accounting rules, or SEC rules? The answer Dimon gave was essentially this: “We’ve looked into it and I know the answer, but I’m not going to say right now what it is.”

Think about all the different things he could have said. Think about why he might have said this. This is bad, folks.

When baseball players are asked to testify before Congress about steroid usage, they obfuscate like this. When cyclists are asked to testify about blood doping, they obfuscate like this. When Jon Corzine responds to questions about MF Global, he obfuscated like this. Why? Because the level of cover-up is so massive that drawing any attention to the truth is overwhelmingly frightening for them. What you see from Mr. Dimon is a high level of fear about what this problem means for him, his bank, America, and the world.


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.

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.


Peter Schiff Pigeonholed More than Ever

28 Mar

No one is a more outspoken and passionate critic of the actions of the Federal Reserve than Peter Schiff. Having accurately called the housing bubble of 07-08, Schiff has said repeatedly that the next bubble will be the bond market. The reasoning isn’t complicated, because the primary solution to the housing crisis was government and central banks confederating together to buy up toxic assets from the real estate bubble.

So what’s the problem when he mentions it on CNBC? Why are these people so reticent to engage in a discussion of the issues he brings up?

As you will notice in this video, Schiff clearly articulates the dilemma that the Federal Reserve has put itself into. On the one hand, it has lowered interest rates significantly in order to prop up the highly leveraged banking system of the United States against the massive losses it stands to take when/if just a few important components of its portfolio fails. On the other hand, the lowering of interest rates creates massive inflation which make it extremely difficult for every non-banking sector of the economy to create, manufacture, and distribute products for a profit.

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The Effect of Unsustainable US Debt, Silver, and Repatriation

24 Mar

Brothjohnf does an excellent summary of the present market, what’s going wrong with our deficit spending, and how you can prepare to deal with it. His commentary is invaluable to us.

What are your options?

19 Mar

In my own investigation of economic collapse preparation, I have come across many suggestions. While I am no expert, I think the discussion of options is well worth the time, and may be more useful than a discussion of specific things to do.

The largest question, for all people in first world countries, is: how do you expect your countrymen to react to a time when the financial and political infrastructure of your country has a drastic breakdown, collapse, and renewal?

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