Inflation – The Most Unjust of Taxes

The Romans were masters of debasing currency, or coinage as it was back then

Clipped Roman Silver coins – Debasement alive and well long, long ago

Most people, myself included, have been slyly brought up to never think about inflation as a form of direct government taxation. But that is exactly what it is. Make no mistake about that.

You see long ago (in days of olde, when Knights were bold), it became clear that once you start taxing people above the forties rate, at about 45% and above people start to squeal. The Kings, monarchs, princes, and Dukes needed revenues to fund their maniac wars. It became clear that you just can’t keep notching up the rate of taxation – much to the botheration of the ruling classes, as they would just revolt – and that was pretty boring situation to deal with.

I didn’t take long for them to realise that all they had to do what debase the currency. A technical term for removing some of the money from the money itself. Technically it’s called stealing. If you tried this they would throw you in jail.

Back in the day a wedge would be cut out of the coins that were actually made of gold, silver and mixes thereof. If the lord of the manor needed more money he would just legally” debase the coin (currency of the day).

Back then it was bleedin’ obvious that someone had hacked a chunk out of the gold coin. The more sly rulers would actually replace the metals with others.

Today, however the control lords have reached the ultimate form of debasement Nirvana. This is why it cannot last. We are all totally blind to the debasement. There are two ways that are overlords manage this debasement:

  • Money Printing (so-called Quantitative Easing)
  • Fractional Reserve Banking

so to conclude – Inflation is used and manipulated by Government to it’s own ends for at least half a millennium and that is a hard drug to give up.

We no longer have a sound economic financial system – It has long been replaced by a dysfunctional Ponzi Scheme.

Make ready your plans.

© Copyright MMXIII RagingGoldenBull.com

Video – “Stop Thief!” – I am Being Robbed Blind!

Just made a Screencast of yesterdays Post called “Stop Thief! I’m being Robbed Blind!” – check-it out here:

 

Enjoy! As usual let’s us know what you think and give us your feedback.

P.S.
This video is also posted on http://www.youtube.com/RagingGoldenBull

© Copyright MMXIII RagingGoldenBull.com

“Stop Thief!” – I am Being Robbed Blind!

We are surrounded by the Thievery Coporation - arm yourself with knowledge, a plan and take action now!

The Master Thief – But just who is it?

Most of humankind are being fleeced everyday and for the most part they are not even aware of it. Let me elaborate if I may. In fact this has gone on for so long (longer than anyone alive can remember), and so consistently that people now think that this is normal. However, I am here to tell you – this is anything but.

Question: What was the price of an ounce of Gold in USD on May 1st 1933?

Answer: 20.67 USD/Ounce

Ok, so another question – just to make the point.

Question: What was the price of an ounce of Gold in USD on May 1st 2013?

Answer: 1,400 USD/Ounce (approx.)

So what’s the deal here?

The point is easier to understand if we invert the numbers and take the reciprocal (i.e.divide 1/[gold-price]). Refer to the following table:

Gold Price-Change Overview (1933 – 2013)

Gold Price-Change Overview (1933 – 2013)

Now it’s a bit clearer to see what is going on. In 1933 one US Dollar would buy you 1/20th on an ounce of pure gold.

But if you try that today, you are only going to get 1/1400 on ounce of Gold.

Struth, I have been robbed! And you have been unless you took the time to buy a little Gold and/or Silver.

Back in 1933 the US Dollar was really pretty valuable (compared to today at least!).

So just how do you think this grand theft took place? Have a ponder and I will cover more next time. Till then, “Keep Stackin’ ” …

© Copyright MMXIII RagingGoldenBull.com

Take Action – NOW!

This may be your last chance to get in on the Gold market. The prices are
coming down, and although they could drop as low as 1,000 USD/Oz it is most
unlikely.

Check out the one year chart here:

Gold gets hammered

Gold Char 1 year to date

If you are already in it could be seen as depressing – but on the other
hand it is a great opportunity to stock up. So don’t delay, Buy Today!
Here we see Gold at almost a 30% discount from it’s peak. When it comes
back it will blast through the 1,800 barrier of old.

This is a long term game. This is not trading, or a quick buck. This is
preservation of wealth and building a future. You should be thinking five
to ten years into the future from here.

What will you be doing and how well will you be living in 2018?

Think about that for a while and then “Take Action!”.

© Copyright MMXIII RagingGoldenBull.com

Interesting Times …

The Chinese have an ancient curse which states:

“May You Live in Interesting Times”

Well guess what? That’s exactly what you are doing right now, but maybe
you just haven’t noticed it. Or maybe you just accept it now as normal.

Let me explain. We are living in the most unusual (read interesting) set
of financial circumstances that this world have ever seen.

Maybe you have been so exposed to it and so familiar with it that you now
accept it as normal. We no longer have a sound financial system. It has
been replaced with the biggest Ponzi Scheme of all time. What is
considered normal or acceptable has shifted, slowly but surely with the
passage of time.

Central Bankers are to be blamed for all of these woes (ok TBTF banks
too). But continually manipulating the supply of money in their respective
systems, they have diluted all our precious money. so much so, that we are
nearing the point of collapse, where it is just not credible anymore.

Take some precautions and make sure that you have at least 5 percent of
your net worth in some form of material asset: Gold, Silver, farmland,
land, or something. Of all Gold is probably the easiest to handle. That’s
why we recommend gold. It’s REAL MONEY!

So to recap. Don’t loose the faith and keep stackin’ …

© Copyright MMXIII RagingGoldenBull.com

No Way Out for the Federal Reserve

No Way out for the Federal Reserve

No Way out for the Federal Reserve

There is no way-out of here for the Federal Reserve now.

After so much talk of taper (“Taper-Talk”) the Fed finally didn’t follow-through. Why not? Because they cannot. That should be clear to anyone. There is not surprise here.

This is just talk. Schmoozing…Jive-talk…Rhetoric..Lies?

This is the clearest sign yet that Bernanke’s policies have failed. The rollback decision. He knows what’s coming and does not want to be around when it hits – and thus he is resigning (read – “get the hell out of Dodge!”) at end of year.

It is very, very, very simple to understand:

  • Interest rates MUST stay low
  • If not the amount of boring of US Government will bankrupt USA (it is already technically bankrupt)
  • So print money, buy bonds, keep rates low

There is a HUGE problem with this approach – They will either want to stop or be made to stop sometime:

  • They will be made to stop by other countries abandoning “incredible” US dollar (quite simply no longer sound money)
  • They will want to stop to try to restore credibility to the USD currency (not possible when printing 85 Billion USD per month – 1 Trillion USD per year)

When they stop (or the printing press is taken off them) the interest rates will rise.

The house of cards will fall.

© Copyright MMXIII RagingGoldenBull.com

Quote – Ayn Rand on Destroyers, Money and Gold

Author, Playwright, novelist, amatuer philosopher, and essayist

Ayn Rand

“Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. This kills all objective standards and delivers men into the arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a check drawn by legal looters upon an account which is not theirs: Watch for the day when it bounces, marked “account overdrawn.” “

  • Ayn Rand (Alisa Zinov’yevna Rosenbaum)

More Golden Money Quotes

© Copyright MMXIII RagingGoldenBull.com

Quote – JP Morgan on Gold

JP Morgan - Showing uus all that tings don't really change...

JP Morgan himself. Any relation to Cap’n Morgan?

“Gold is Money. Everything Else is Credit”

  • JP Morgan (New York Banker, December 18 and 19 1912)

So there you have it. Straight from the horses mouth.

And what is really interesting here is how this quote came about. This was not some simple quip on the street, or over a glass of wine too many after dinner impressing friends. No Siree!

This my little chums, was delivered straight from the horses mouth to congress when he was being cross-examined by a “special committee” for bank fixing which was going on back then! Or, in their words Appointed for the Purpose of Investigating an Alleged Money Trust in”Wall Street.”

You see back then there was a strong suspicion that the bankers were colluding (Noh say it aint so! Gasp, shock, horror. Not like LIBOR or something?!), and this was called the “Money Trust”. This was before the Federal Reserve, but about the time of the Jekyll Island stuff (see here).

For those interested, I have a transcription of said JP Morgans Testimony right here before the “Bank and Currency Committee of the House of Representatives”. I invite you to notice that Jamey Dimon is much more smug these days (did you know that he is a bubble? So he is not just making the bubbles, he actually is a bubble himself ;.).

Another little bit of bunk – Mr Morgan was almost 75 years young when the Titanic sank. He had his own private suite and promenade deck on the Titanic. He was supposed to join her for her maiden voyage but cancelled last minute, sparing him the fate of many of his other millionaires buddies.

So there you go geezer – “Plus ça change, …” and all that… Things have not changed one bit…

More Golden Money Quotes

© Copyright RagingGoldenBull.com

Top Job Going at the Federal Reserve

Want a Top Federal Reserve System Job?

Top Federal Reserve System Job

Fancy a cushty job at the Federal Reserve? Nice and easy like their monetary policy? The rumor mill is busy suggesting that Ben Bernanke will do a runner at the end of the year – just before contract renewal in January 2014.

Go on! give it a try – you might just get it! I mean, how hard is it to print money, because that is the only “tool” in the Federal Reserve arsenal of tools.

Give it a try because you might just get it 😉

© Copyright MMXIII RagingGoldenBull.com

The Most Over/Under-Valued Housing Markets In The World

This is very interesting (and serious):

OECD compare the prices

OECD compare the prices

House prices – with respect to both levels and changes – differ widely across OECD countries. As a simple measure of relative rich or cheapness, the OECD calculates if the price-to-rent ratio (a measure of the profitability of owning a house) and the price-to-income ratio (a measure of affordability) are above their long-term averages, house prices are said to be overvalued, and vice-versa. There are clearly some nations that are extremely over-valued and others that are cheap but as SocGen’s Albert Edwards notes, it is the UK that stands out as authorities have gone out of their way to prop up house prices – still extremely over-valued (20-30%) – despite being at the epicenter of the global credit bust. Summing up the central bankers anthem, Edwards exclaims: “what makes me genuinely really angry is that burdening our children with more debt to buy ridiculously expensive houses is seen as a solution to the problem of excessively expensive housing.”

Screwed (ie SELL!):

  • UK
  • Spain

Not-Screwed (ie BUY!):

  • Portugal
  • Switzerland

So quite simply sell any properties that you have in the screwed group and buy them back in the not-screwed group. Voila! These countries break down into Five Categories:

Where houses appear broadly correctly valued. This category includes the Unites States, where prices have started rising again after a substantial correction; Italy, where prices are falling rapidly; Austria, where prices are rising; and Iceland, Korea and Luxembourg where prices are roughly flat.

Where houses appear undervalued and prices are still falling. This category includes European countries hit hard by the crisis – Greece, Ireland, Portugal, Slovenia, Slovakia and the Czech Republic – but also Japan.

Where houses appear undervalued but prices are rising. This category includes only Germany and Switzerland, two European countries where strong growth in household disposable income and favourable financing conditions have boosted prices (despite macro-prudential measures in Switzerland).

Where houses appear overvalued but prices are falling. This category is the largest as it includes many European countries where the post-crisis housing market correction is still ongoing, most notably Spain, but also the United Kingdom, Belgium, Denmark, Finland, the Netherlands and one non-European country, Australia. While price corrections in these countries are necessary, they are also concerning as they weaken households’ financial health and potentially fragilize banking sectors.

Where houses appear overvalued but prices are still rising. This is the case in Canada, Norway, New Zealand and, to a lesser extent, Sweden. Economies in this category are most vulnerable to the risk of a price correction – especially if borrowing costs were to rise or income growth were to slow.

Get the full scoop:

The Most Over/Under-Valued Housing Markets In The World

Happy House Hunting …

© Copyright MMXIII RagingGoldenBull.com