2015: How A Pork Bellies Trader And Milton Friedman Created “The Greatest Trading Casino In World History”

“I held in my hand the Holy Grail for the Chicago Mercantile Exchange. The most influential economic mind of the twentieth century provided the CME with the intellectual foundation upon which to build its financial superstructure.” Nixon’s estimable free-market advisors who gathered at the Camp David weekend were to an astonishing degree clueless as to the consequences of their recommendation to close the gold window and float the dollar. In their wildest imaginations, they did not foresee that this would unhinge the monetary and financial nervous system of capitalism. They had no premonition at all that it would pave the way for a forty-year storm of financialization and a debt-besotted symbiosis between central bankers possessed by delusions of grandeur and private gamblers intoxicated with visions of delirious wealth. In fact, when Nixon announced on August 15, 1971, that the dollar was no longer convertible to gold at $35 per […] Read More

“Cornering The Earth” – How The Rothschilds “Controlled At Least One Third Of Global Wealth” Over 100 Years Ago

One week ago we presented the prophetic work of Alfred Owen Crozier who in 1912 penned “U.S. Money vs Corporation Currency” in which, together with 30 illustrations that captured Wall Street precisely as it would turn out some 103 later year, he explained why the the “Aldrich Plan” proposal, infamously crafted in secrecy by a small group of bankers and their bought politicians on Jekyll Island to establish a National Reserve Association, a money printing-predecessor to the Federal Reserve, would lead to untold pain, suffering ans war. The Aldrich Plan was defeated only to bring the Federal Reserve Act of 1913, and the most deadly 30-year period of warfare in human history. And while we urge everyone to read the Crozier’s book for its profound insight, and its painful reminder that even in the “New Normal” there is absolutely nothing new, as everything that has happened was foretold over […] Read More

Why One Big Bank Is “Worried That The Market Is Stretched And Could Correct Rapidly”

Aside from a relentless barrage of deteriorating geopolitical updates almost on a daily basis, which have led even the “very serious thinkers” to pull up comparisons to the days just before World War I, it has been smooth sailing for global capital “markets” which merely continue to follow the path of least central bank balance sheet resistance. It is this relentless melt up which has seen what was once a market and is has for the past 5 years become a policy vehicle to boost confidence (for whom, it is unclear: the vast majority of the population no longer cares what rigged stocks do, as for the trickle down wealth effect, 5 years of deteriorating real incomes for the middle class have promptly put an end to that fable) alongside a slow-motion LBO of the entire S&P 500, as companies repurchase trillions of their shares using ultra-cheap credit, bask […] Read More

2014: Why Tuition Keeps Rising (Spoiler Alert: Government Intervention)

Submitted by Omid Malekan, Imagine for a moment that you are the owner of a popular restaurant located on a street with many restaurants. You do your best to provide the best experience to your customers while staying ahead of the competition by keeping your prices down. You try to avoid spending too much on labor, and do as much of the work yourself as you can, often putting in long hours. Although there is a good wholesale market nearby, you drive an extra hour to another market just to get your ingredients a little cheaper. One day a wealthy patron who is a big fan of your cooking announces a new idea. Because he wants as many people as possible to enjoy your food, he is going to pick up the tab for most of your customers. You can just go on doing what you always do, but […] Read More

The Modern Investor’s Manifesto

Submitted by Tim Price via Sovereign Man blog, “The stock market is filled with people who know the price of everything, but the value of nothing.” – Philip Fisher. A personal perspective on some of the challenges facing today’s investor: 1. The Communist experiment of the planned economy did not work. 2. Not only did it not work, it impoverished millions. 3. Western central banks, their client governments, and agents in the economics “profession” seem unaware of this fact, or wilfully disregard it. 4. People respond to incentives. Everything else is detail. 5. Adam Smith’s invisible hand does work, if left well alone by the dead arm of bureaucracy. 6. In the aftermath of the breakdown of Bretton Woods, ‘developed’ governments have amassed unpayable mountains of debts. 7. A culture of entitlement has made these debt mountains higher. 8. These debts will never be repaid, except in devalued money. […] Read More

Spying Is Meant to Crush Citizens’ Dissent, Not Catch Terrorists

Preface: NSA Lied When It Said It Doesn’t Record Content Last week, Washington Post reporter Barton Gellman –  who has reviewed many of the documents leaked by Ed Snowden – told PBS’ Frontline: Who’s e-mailing whom? Who’s texting whom? Who’s doing Skype calls with whom? They’re collecting a lot of information, a lot of content of phone calls. They’re actually recording the voices— not for all of our calls, but for a lot of U.S. telephone calls. Background. Okay, now you’re ready for the main story … Spying Is Meant to Crush Citizens’ Dissent, Not Catch Terrorists While many Americans understand why the NSA is conducting mass surveillance of U.S. citizens, some are still confused about what’s really going on.In his new book, No Place to Hide, Glenn Greenwald writes: The perception that invasive surveillance is confined only to a marginalised and deserving group of those “doing wrong” – […] Read More

2014: The Decline Of Small Business And The Middle Class

Submitted by Charles Hugh-Smith of OfTwoMinds blog, The only way to not just survive but thrive as an entrepreneurial enterprise is to destroy fixed costs and labor overhead. It is not coincidental that the middle class and small business are both in decline. Entrepreneurial enterprise and small businesses have long been stepping stones to middle-class incomes and generational wealth, i.e. wealth that is passed down to future generations rather than consumed. As the headwinds to entrepreneurial enterprise and small business rise, the pathway to middle-class prosperity narrows. The Washington Post published a study that found U.S. businesses are being destroyed faster than they’re being created. While not exactly a surprise, it was sobering evidence that small enterprise is in structural decline: The decline of small businesses also hurts employment. Successful small businesses expand and hire employees. As small businesses close, jobs vanish en masse. I have addressed this systemic decline many times, […] Read More