Dave Kranzler breaks down “the only events that matter as 99.5% of Americans are about to be thrust into the third world. There is, however, an exception to suffering the fate of the poverty-stricken masses. It is something we can all prepare for if we heed Dave’s advice…

By Dave Kranzler of Investment Research Dynamics

“Paper Money Eventually Returns To Its Intrinsic Value – Zero” – Voltaire

Set aside all other financial, economic and political concerns continuously shoved in our collective faces by the mainstream media.  It’s a distraction – to a large degree intentional.

These are the ONLY events that matter right now:    this, “China Begins To Reset The World’s Currency System,” and this,   “Venezuela Is About to Ditch the Dollar in Major Blow to US: Here’s Why It Matters.”

Once the dollar is no longer regarded or used as the reserve currency, third-world poverty will engulf everyone in this country below the upper half percent wealth stratum…except those who possess a fair amount of physical bullion.  I just bought more gold and silver coins from a friend yesterday who had an uncontrollable urge to get their house painted and needed to sell some to me to fund it.  It won’t matter what the house looks like in a couple years but they would never take my word on that.

The level of assumed entitlement in this country by the middle class is absurd…

All the money and all the banks in Christendom cannot control credit…Money is gold and nothing else – JP Morgan’s 1912 Congressional testimony on “the justification of Wall Street”

Trump has suggested permanently removing the Treasury debt-ceiling. The Treasury debt-ceiling is the last remaining barrier to the ability of the Fed and the Government to create an infinite amount of fiat currency.  Debt that is issued behaves exactly like printed currency until that debt is repaid.  The non-repayment and continued issuance of the amount of debt outstanding is the critical point to understanding this concept.  Since the early 1970’s, the Treasury debt outstanding has grown continuously.

Printed Treasury certificates created in this manner behave no differently than printed currency. This is a reality that economists completely ignore.  Most analysts who think they understand monetary economics look upon this concept with disdain. The continuous issuance of an increasing amount of credit of any type is no different that outright currency printing (until the amount of outstanding credit is paid off, which it never has been since the demise of Bretton Woods in 1971).

Removing the debt-ceiling gives the U.S. Government, in conjunction with the Fed, the power to print an unlimited amount of Treasury notes. Historically, a large portion of these notes have been funded with recycled petro-dollars. The “QE” implemented by the Fed funded $2.5 trillion of the Treasury issuance.  I don’t know where the funding for the next round will come from unless the Fed prints a lot more money.  I suspect it will. The price of gold (and silver) spiked-up on Friday in correlation with the announcement of Trump’s proposal.  That’s your warning shot

 

  1. Near 100% of Americans have homes mortgaged near or above 100%. Along with nothing in the bank. Car is rented and food and all necessities get piled onto their credit card debt. average 401K has like 12K in it and that’s in this bubble dollars so it will loose 2/3 value when corrected and of that the government will get 1/3 in taxes from whats left over. leaving the average 401K holder with under $4K dollars.

    This has all been done by design. The people will demand the Government take over everything and give them a Communist society. They do not know that the the same people that did this to our country are the same Bolsheviks that have controlled the past communist state. And these Jews murdered 60 million Russians in the process.

    And the US citizens are begging for this. Jewish Bolshevism.

    • 100% correct and timely.  Many in my country are in a fog but at least critical thinking is not yet taboo.  And Bolsheviks obviously left a big crater in society, though tribalists are not swayed in their subterfuge

  2. I’ll pick up the IP Morgan quote. Gold is money, nothing else. That was the first version i read. Then someone floated gold is money, everything else is credit. Now I get my third version of same quote. “All the money and all the banks in Christendom cannot control credit…Money is gold and nothing else – JP Morgan’s 1912 Congressional testimony on “the justification of Wall Street””.
    Okay, credit that’s for religious nuts, we’ll show you how that works. That’s what he was saying. 1912, five minutes before the FED was born. This quote should be understood as deception, he was mocking the goldstandard, not cheerleading for believers or goldbugs.
    I copy pasted some history lessons of mine from internet for you. Thank you. People who shared their knowledge.

    The circumstances that created the climate in the US for the adoption of a central bank came ironically from internecine war on Wall Street that spread economic devastation across the nation during 1907-08, the direct result of one huge money trust trying to cannibalize its competition.

    J P Morgan and the Panic of 1907
    The Rockefeller interests of “Amalgamated Copper” had a plan to destroy the Heinze combine, which owned the Union Copper Co. By manipulating the stock market, the Rockefeller faction drove down Heinze stock in Union Copper from 60 to 10. The rumor was then spread that not only Heinze Copper but also the Heinze banks were folding under Rockefeller pressure. J P Morgan joined the Rockefeller enclave to announce that he thought the Knickerbocker Trust Co would be the first Heinze bank to fail. Panicked depositors stormed the tellers’ cages of the Knickerbocker Bank to withdraw their money. Within a few days the bank was forced to close its doors, making Morgan’s prediction self-fulfilling. Similar fear spread to other Heinze banks and then to the whole banking world. The crash of 1907 was on.

    The Panic of 1907 was a credit crunch that spread from New York to the whole country, closing banks and businesses. It was the major impetus for the formation of the Federal Reserve System. While the nation had considered central banking systems in the past, it was the severity of the Panic of 1907 that inspired congressional action leading to establishment of the Fed.

    Millions of people were sold out penniless and rendered homeless by bank foreclosures, and their savings wiped out by bank failures. The destitute and the hungry fended for themselves as best they could, which was not very well. Circulating money was hoarded by any who happened to still have some, so before long a viable medium of exchange became practically non-existent. Many business concerns began printing private IOUs and exchanging these for raw materials as well as giving them to their workers for wages. These “tokens” passed around as a temporary medium of exchange.

    At this critical juncture, J P Morgan and his assembled team working out of his library offered to salvage the last operating Heinze bank (Trust Co of America) on condition of a fire sale of the valuable Tennessee Coal and Iron Co in Birmingham to add to the monopolistic US Steel Co, which he had earlier purchased from Andrew Carnegie.

    This arrangement violated existing antitrust laws but in the prevailing climate of depression crisis, the proposed transaction was quickly approved in Washington. Morgan was also intrigued by the paper IOUs that various business houses were allowing to be circulated as a medium of exchange. He persuaded Congress to let him put out $200 million in such “tokens” issued by one of the Morgan financial entities, claiming that this flow of Morgan “certificates” would revive the stalled economy. As these new forms of Morgan “money” began circulating, the public regained its confidence and hoarded money began to circulate again as well. Morgan circulated $200 million in “certificates” created out of nothing more than his own “corporate credit” with formal government approval. The business press was full of praise on how a selfless Morgan risked his own money to save finance capitalism. It was in fact a superb device to make millions with no risk.

    On November 22, 1910, a handful of powerful people met at the J P Morgan estate on Jekyll’s Island, Georgia. This secret meeting included Aldrich; A P Andrews, professional economist and assistant secretary of the Treasury; Frank Vanderlip, president of the National Bank of New York City, which later became Citibank; Harry P Davidson, senior partner of the J P Morgan Co, which after several mergers is now JP Morgan/Chase; Charles D Norton, president of Morgan’s First National Bank of New York; Paul Warburg, partner of the investment banking house of Kuhn, Loeb Co in New York; and Benjamin Strong of the J P Morgan Co central office in New York, who later became the first president of the New York Fed and dominated the new central bank for the first two decades. After nine days, they produced a draft bill for Congress that was later submitted as the “Aldrich Plan”. Conspiracy theorists have made much of this infamous secret meeting.

    From its beginning, the dominant guiding principle of the Fed was financial rather than economic, though its charter directed it to “accommodate the needs of commerce and industry”. Fed policymakers concentrated on preventing inflation to calm investor fear, not on lowering unemployment or restoring falling farm prices. Fed officials spoke of “liquidation of labor” as part of sound central-banking principle, which harbors a bias toward preserving the health of the financial sector over the real economy. In order to restore the former, it was necessary to punish the latter.

  3. Lot’s of fear porn here.

    At the end of this I see the mob finally understanding that socialism is one of the greatest evils. They’ll work, treasure real wealth and make the West great again. Of course in a couple of generations they’ll be clamoring for it again.

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