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We no longer have a sound eco­nom­ic finan­cial sys­tem — It has long been replaced by a dys­func­tion­al Ponzi Scheme.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