jones gold 2The central bank concept is the Matrix in embodiment, but the Eastern nations led by BRICS and G-20 have a key to unlock the USDollar prison. A quick look at the Australian banking system reveals four global banks who own outsized portions, their reach extending to the largest gold producer in Oz as well. Incest is best. The fast decline in Money Velocity is the most convincing proof of the failure of monetary policy. It does not provide stimulus, but rather capital destruction. The foreign dumping of USTreasury Bonds actually accelerated this past summer, amidst the Taper Talk trial balloon offered by the hapless desperate Bernanke Fed. His legacy will be one of disproving his own PhD Thesis, since liquidity in torrents does not repair insolvency, and no traction comes to soaked ground.
A grand game of shuffling gold bars has begun, actually accelerated in a final phase. The big bullion banks wish to obscure that they are almost bone dry of gold in inventory. The COMEX will shut down from no gold, rather than criminal prosecution in a land where crime rules and treason is the syndicate bylaw.
The climax event will be the return of the Gold Trade Standard, discarding the USTreasury Bonds, converting them to Gold bullion. The early adopters and those who follow the viable solution will be the winners. Those who cling to their USTBonds and their other paper securities in indentured servitude will be the losers.

 

By Jim Willie, GoldenJackass.com

China has imported two thirds of GLD inventory in the first seven months of this year. They use the Hong Kong route. In fact, the emerging giant is on course to import over 1000 tons in 2013, compared to 2750 tons in global annual mine output. China & India are taking the majority of gold and silver straight from output.
Take a whirlwind tour with graphics and photos. Absorb the images. They are profound, broad, and ugly.

CENTRAL BANKS AS MATRIX

No Plan B is on the table. The central bank is stuck in a destructive cycle with no viable workable exit strategy. They operate with no perceived risk reward, only desperation to delay the certain collapse, proved by the wrong-footed Taper Talk. They must continue the Zero Interest Rate Policy (ZIRP) forever and the Quantitative Easing (QE) to infinity. They preside over failure with a franchise model that causes great capital destruction in the climax phase. The current grand monetary experiment is untested, and is proving to be a glaring disaster. They have sold a moral hazard to the entire world like a passed goblet of hemlock. Rather than stimulus, the monetary policy produces killed and retired capital. The Keynesian path has led to the monetary corner, a wrecking zone from bad policy. They preside over collapse while sitting in their own thrones within the matrix.

 

A counter-culture comparison is due. The USFed and the Wall Street bankers have created an environment of alternative universe. The financial markets are rigged. The USDollar currency and USTBond are propped. The politicians are syndicate puppets, include the leader of the land straight out the Manchurian Candidate theme. The debts are covered by hyper monetary inflation. The USEconomy is stuck in quicksand, as it deteriorates, while the blaring music sings about recovery. The Fascist United States is the embodiment of the MATRIX, the multi-sequel hit movie series from the 1990s. Notice the similarity between the cold controlling deceptive alternative world Matrix architect and USFed Chairman Bernanke. The contrast is scary. No offense to Helmut Bakaitis, the Austrian actor and director who played the architect who fought the rogue Oracle and Neo and Morpheus and Keymaker. They symbolize the Gold community working toward freedom from the Matrix itself, doing battle against a corrupt controlled fiat currency Matrix centered upon the USDollar, defended by the USTBond software, preying upon the sleepy captive population. The rogue programs loose within the Matrix are from the giant workaround subroutine being fashioned by the East, the Dollar alternative for trade and thus bank reserves. The gold trade settlement will be the New Gold Trade Standard which renders the Matrix with obsolete software. It opens the door to freedom from the Matrix.

 

w1

 

AUSTRALIAN BANK INCEST

Big international banks own both the Australian big banks and the biggest Australian mining firms. They are in control for the financial adjustments and reset. The story is typical of the Western financial super-structures. In the West, Barclays is the banker’s bank that owns a significant portion of almost every important large Western bank. The integrated ownership of these banks reveals a vast incestuous network. The banking system in Australia is controlled by HSBC, JPMorgan, NAB, and Citigroup. The tree below displays the ownership of the largest banks in Australia. In parallel, Americans, British, and Europeans have no idea that Barclays owns a piece of almost every large Western bank. The same shareholder examination for National Australia Bank, JPMorgan, and Citicorp found that the these four companies not only control a vast array of mining and industrial companies, but also pull the strings as banks under a different name. Furthermore, the four financial firms which own Australia’s banks also have substantial holdings in Newcreat Mining Ltd, the largest gold producing company.

 

w2

 

MONEY VELOCITY FAILURE

Money velocity remains crippling low, at historic lows. The amplified monetary expansion has aided banks and redeemed bonds, but with no tangible benefit to the useconomy. Many are the channels for money flow, but most are blocked. As capital is killed or retired from the USFed monetary policy, the money velocity declines. It is proof of capital destruction in its wake. The Money Velocity is at historic lows, a point of extreme embarrassment to USFed Chairman Bernanke, who is on the way out with failure on his resume. Worse, the outcome of four years with extraordinary money growth has been a crippled USEconomy. Next on the global stage will be the USFed serving as the processing plant for the USTBonds returned to sender from a vast stream of foreign entities. The money flow has numerous textbook channels, of which at least five are important channels. They are 1) redeemed toxic bonds without price inflation effect, 2) business capital expansion for a massive typical effect which is not happening, 3) USGovt deficits and its moderate effect when infrastructure which is not happening, 4) Wall Street and financial account expansion for a tiny effect that offers psychological lift to consumers, and 5) Military spending for a profound deficit effect that harms twice with capital destruction in true nazi style. Be sure to know that fast reducing money velocity is the most reliable signal of deep recession and economic danger. The churn is gone to pay taxes in homage to the USGovt.

 

 w3

 

The nation seems to completely accept the notion of the USFed monetary policy being a radical stimulus that runs the risk of promoting extreme price inflation. The truth is the exact opposite. No stimulus is seen, when in fact the QE bond monetization will continue to kill capital and destroy business. The price inflation effects are all over the board, with material costs rising, service costs rising, but liquidation sales throughout the field of view in a suppressive cross current effect. The same incorrect stimulus propaganda has been spouted for months on end, actually over three years steadily like a propaganda loudspeaker. However, almost no economists comprehend the capital destruction and severely harmful effect from the USFed policy. The sequence is simple, from rising cost structure, poor pricing power, shrinking profits, ruined business segments and even entire businesses, then shut down of equipment and liquidated capital. The ongoing QE will ensure the USEconomy continues to deteriorate, with more acceleration coming. Those who expect a rise in business activity are way off, bordering on delusional. They are led by the system harlots. Those who expect the money velocity to rise are way off, bordering on clueless. They are led by morons and quacks.

 

2013 Gold Buffalo As Low As $51.99 Over Spot at SDBullion!

buffalo2

FOREIGNERS DUMPING USTREASURY BONDS

Foreigners sold more US$-based securities in June than after the Lehman Brothers bankruptcy. The USFed must lap up what is dumped. Big pressure is on primary dealers, which the USFed must relieve. The Taper Talk will reverse into an acceleration of official bond purchases. A global USDollar rejection is in full swing. The new threat is the seizure of the REPO market, the vast overnight credit window device. In June and July, the Jackass indicated that the USFed would eventually be forced to buy up all the foreign dumping of USTreasury Bonds. It happened. The TIC Report is compelling. Paul Mylchreest added a great point regarding the tighter capital requirements imposed by Basel III Rules. He said, “Leverage ratio regulations might preclude banks using REPO’s to accommodate sudden influx of Treasury [being dumped by foreigners.] Maybe they will use the Exchange Stabilization Fund if BRICS start swapping USTreasurys for Gold as you suggest.” So the big US banks, and London banks too, might not be able to withstand the huge flood of USTBonds returned to the sender from foreign sources due to stricter rules on stretched capital.

 

 w4

 

A recent Treasury Investment Capital (TIC) Report showed every single type of US$-based securities sold on a net basis, a rare occurrence. The big culprit Treasurys sold a record setting net $40.8 billion, the largest single month sale of USTBonds in history. The consolidated foreign sale in June 2013 was greater than either month when Lehman failed, September or October 2008. The conclusion is simple and staring the nation in the face. The USFed must accelerate the QE bond monetization program, not reduce it. The public statements and declared rationale will be interesting, if not a comedy in lies, and an exposure of failure. The bigger conclusion is that the USGovt debt default is within view, no longer over the horizon.

 

COMEX VACANT GOLD VAULT

The COMEX registered gold continues to plummet, down to 665k oz gold in a recent snapshot. Members must distrust JPMorguen deeply. They are either removing their eligible gold, or refusing to put it among the registered stock. Pressures for a default are rising every month without respite. Refer to the COMEX Registered Warehouse gold in their official vaults. By Registered is meant available to meet delivery, in full satisfaction of strict requirements for form, weight, and purity. The present level of 0.665 million ounces marked on September 10th means a 77 to 78% decline had occurred this year. Bear in mind that the declines occurred following the German Govt repatriation request. The plummet is a major wake-up call for a COMEX default, or whatever they call a forced cash redemption to bullion bank suppliers. They are being drained and lied to, holding a fistfull of gold certificates that are in the process of being forcibly redeemed at cash.

 

w5

 

Further investigation reveals JPMorguen taking gold from Scotia Mocatta under certain hidden threat, as well as from HSBC and other big banks. The drain has a pathway bound by coercion. A grand game of internal raids is underway that cannot be stopped. Pressure is brought to bear. Ramps are busy moving gold bullion around in trucks and tunnels. It is curious why Scotia Mocatta played this game of harikari. They cut a deal in Satan’s service.

 

CHINA GOLD IMPORT VIA HONG KONG

China imported an impressive 116.4 tons of gold in July. The exponential rise continues unabated in 2013. China is the Asian juggernaut on gold demand, and the primary engine for demand in the entire world. Their demand approaches half of global mining output. China imported through Hong Kong another robust load totaling 116.4 tons of physical gold in July of 2013. Their demand comes after the 517.92 tons of gold imports in the first six completed months of this year. In total, from January through July of this year, China imported a staggering  633.94 tons of physical gold. The trend continued in the next months. Put the figure into perspective. The global gold mine output in 2012 was on the order of 2750 tons. The SPDR Gold Trust (aka GLD Fund) had 919 tons at last count, but has been fast dwindling. Hence China alone has imported two thirds of GLD inventory in the first seven months of this year. In fact, July recorded their second largest gold import in a single month since the start of this bull market in 2001. The chart is courtesy of Sharelynx, often shown on the Hat Trick Letter with gratitude. The exponential growth is a steady trait.

 

w6

 

GOLD TRADE SETTLEMENT

Let the graphic below tell the story, worth at least 1000 words, a Jackass task done on Powerpoint with glee. The Black Hole of the USTreasury Bond implosion has a corresponding fountain in Gold pressures. Acting like Old Faithful in Yellowstone Park, the gold movement continues to apply upward visible pressure. In fact, the analogy is more complete. The entire expanse of Yellowstone region is a giant caldera that serving as remnant to an ancient volcanic eruption and explosion. The region has been well studied, as geologists conclude its surface level is rising an inch or two (a few centimeters) every year. The return of the Gold Trade Standard outside the bank purview governed by SWIFT rules and outside the FOREX temples filled with moneychangers will arrive like a massive gigantic impressive volcano. Nothing can stop it. It is driven by the Eastern Hemisphere seeking an alternative to the USDollar in trade and a diversification away from the USTreasury Bond in banking reserves. The nations which actively depart the USDollar Sphere will survive, the others to fall into the De-industrialized Third World. Many are the forces within the inner circle and along the periphery. The Gold Trade Standard, enforced largely by China & Russia, supplied by the BRICS Bank which will manage the conversion of USTBonds to Gold bullion, will manifest the Paradigm Shift. The Price of Gold will easily reach the $7000 per oz mark, then surpass it. The Price of Silver will easily reach the $200 per oz mark, then surpass it. Gold (rock) wins, and USDollar (paper) loses, with BRICS acting like scissors on USGovt sovereign toilet paper.

 w7
2oz Freedom Girl new proof

 

THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

From subscribers and readers:

At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.

 

“Jim Willie is a gift to our age who is the only clear voice sounding the alarm of the extreme financial crisis facing the Western nations. He has unique skills of unbiased analysis with synthesis of information from his valuable sources. Since 2007, he has made over 17 correct forecast calls, each at least a year ahead of time. If you read his work or listen to his interviews, you will see what has been happening, know what to expect, and know what to do.”

(Charles in New Mexico)

“I commend the Jackass for being the most accurate of all newsletter writers. Others called for the big move in Gold right away, but you understand that the enormous fraud in the system needs to play out before free market forces can begin to assert themselves. You seem to have the best sources and insights into the soap opera that is our global financial system. Most importantly, you have advised readers to be patient, stay safe, and avoid mining shares like the plague. Calling the top in the USTreasury Bond (10-yr yield at 1.4% yield) stands out as a recent fine accomplishment. The Jackass understands the markets, understands the fraud, and also has the sources to keep him the most up-to-date on the big geopolitical and financial events and scandals. Few or no other writers have all three of these resources.”

(Austin in California)

“A Paradigm change is occurring for sure. Your reports and analysis are historic documents, allowing future generations to have an accurate account of what and why things went wrong so badly. There is no other written account that strings things along on the timeline, as your writings do. I share them with a handful of incredibly influential people whose decisions are greatly impacted by having the information in the Jackass format. The system is coming apart on such a mega scale that it is difficult to wrap one’s head around where all this will end. But then, the universe strives for equilibrium and all will eventually balance out.”

(The Voice, a European gold trader source)

 

Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at  www.GoldenJackass.com. For personal questions about subscriptions, contact him at  JimWillieCB@aol.com

    • Yep.
      Enjoy Jim Willie a lot. He is much more effective &  easier to listen to than to read; Hasn’t really said anything different or new now for about half a year. 

    • @Ugly — I’d like to see a bank ownership tree for the banker’s Chinese campaign.   Given their massive investment in, what is it now, 24 ghost cities — into which the Chinese citizenry has allegedly poured their life savings, I am struck with the thought that when the Chinese Real Estate bubble does what ours did in the US, the Chinese people may be forced to cough up their gold holdings that the Chinese government has allowed and encouraged them to acquire and return these holdings back to the globalist banker cabal as a result of the economic crash and defaults that follow…   would it not be the diabolical conclusion that the Chinese were to be outfoxed by the bankers in the same way John Perkins described happened to the central American nations in his book, “Confessions of an Economic HitMan”
       
      As I see it, I think people seem to miss the point of QE, from the globalist point of view… the process is sold as a reliquification of the economy, but there is a darker side to this… as the Fed (international bankers) buy all these marked-to-just-shy-of-worthless “toxic” assets from the banks, these people end up holding the notes on all the property represented by these devalued holdings… at the rate of $85 billion + per month, they are taking eventual ownership of everything that is mortgaged in this country.  At some point in the future, they pull the plug and the dollar collapses and now no one has the ability to make the payments on these mortgages.  Presto.  The bankers foreclose on it all…  now, Thomas Jefferson’s fear that our children would wake up ejected from the land their ancestors fought and died for (paraphrase) comes true…  worse, the People are so suddenly impoverished and destroyed, that they will have no choice but to accept the hegelian resolution of the New World Order governance…
       
      Thoughts, anyone?

    • @Sovereign Economist 
       
      Actually, your estimate of the plot that is afoot seems sufficiently diabolical to be very close to the truth.
       
      Although I am not an economist, I have studied the subject a bit and believe that Jefferson was perfectly correct.  I also believe that the bankers have been the ones who have caused the booms and busts in our economy every so often, as Jefferson noted.  This bill of goods has then been sold to an unsuspecting public as “the business cycle”.  This is not the business cycle but an organized milking machine cycle that is designed specifically to remove wealth from the hands of those who have earned it and placed it into the hands of those who have not.  
       
      The Great Depression of the 1930s is illustrative.  First, we had the “roaring 20s” when credit was easy and everyone was borrowing from the banks to buy stocks, start or enlarge a business, and buy things that then became possible for them to own because credit and money were so easy to get.  Then, once the debt market was well saturated, this was reversed.  Credit was curtailed, money (gold at that time) was withdrawn from the economy and hoarded by the banks, particularly the big NY banks, and those who borrowed to buy stocks on margin were crushed when the economy collapsed.  It would not surprise me to discover that these same banks had a hand in the stock market collapse but I have no real data on that.  It does seem awfully convenient, however, and the banks were then able to scoop up millions of shares of good companies for pennies on the dollar.  Coincidence?  Somehow, I do not think so.
       
      Roosevelt’s calling in of the gold was not aimed at the American people because the people had very little gold.  I know that my grand parents did not.  They were simple working folks who were just trying to make a life for themselves and their two sons.  Silver was the money of the people, both as coins and as paper silver certificates.  These silver certificates were convertible into silver ON DEMAND, meaning that any citizen holding them could go to most any bank and even a lot of stores and exchange them for silver coins of equal face value.  But the banks were hoarding massive amounts of gold money and this left the economy unable to function.  Businesses went bust left, right, and center.  Farms and ranches failed because their owners could not borrow money to buy new equipment, seed, animals, etc.  This continued for several years with the bankers foreclosing on many of these properties, often at substantial discounts, or buying them from sheriff’s auctions due to unpaid property taxes.  Because there was so little money available, many people fell afoul of property tax liens.  Anyone who showed up at the local courthouse and paid the property taxes that were due got the property.  In many cases, property worth many thousands of dollars were acquired via this method for a few hundred dollars or even less.  These properties were then held by the banks for up to several years before the banks allowed credit and money to once again flow into the economy and into the hands of the people.  A lot of them were eager to restart their businesses, buy land for farming and ranching, hire people, buy machinery, etc.  The banks “just happened” to be holding vast amounts of property that they were willing to sell on good terms.  HUGE profits (billions of dollars) were made by selling these foreclosed and tax lien acquired properties.  As Jefferson warned in the early 1800s, “first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered“. 
       
      The fact that these “panics” (busts) follow routinely upon the heels of orgies of banking largess (booms) is neither an accident nor an unplanned event.  This is the whip-saw that the bankers use to plunder the countries in which they operate, gathering VAST amounts of wealth unto themselves while leaving millions impoverished.  Hanging literally IS too good for them, although it would represent an adequate beginning in our quest for a solution to this problem of banksterism (aka looting and pillaging).
       
      Yes, I could easily be wrong about all this but this explanation fits the data we have rather closely.  Until a better explanation comes along, I will stick with this.
       

    • Ed_B
      Take a look at the just released episode 4 of Mike Maloney’s Hidden Secrets of Money series. Seems to be explaining in graphical easy to understand form, just about everything you are trying to say.
       

       
       

    • @Sovereign Economist
      On those Chinese ghost cities, I like the one that looks like Old England and the one that looks like Paris, perhaps the Chinese built these for the Western cleptocrats to move into and pay the Chinese citizens good money or rent when they high tail it out of Dodge after having screwed the citizens of the UK and US? At the end of the day the US will bring down Capital Controls and tell the Chinese to go screw themselves if they think they will get anything in return for their US Treasury holdings. The biggest problem China has is Food imports, because a large portion of its food imports are US Agricultural surplus which is the only thing the US trade relationship is really beneficial towards China. If the US and China stop trading with each other then China will have to feed way more people than the US will, so I don’t believe paying the perceived debts to any Chinese creditors (other nations or private creditors) will be too high up on their priorities in the crisis that IS inevitably coming when the US does that same thing (dump or debase its own govt generated debt) … which it is doing anyway through monetary inflation I guess, just a slower ratcheting up of the middle finger, rather than a brisk bold birdy. The Chinese are Communist after all, so they could just give some people some free houses in a ghost city, no problem. At least Chinese ghost cities are habitable and maintained, Detroit is barely safe for the most street wise destitute ex felons, and there is not one ounce of copper pipe left in any abandoned building *<wipes tears from eyes>*
       
      Congressmen, Bankers and Bureaucrats are Weapons of Mass Destruction. They should be stashed away somewhere for their own safety in a padded facility where they can also not hurt anyone else. All this time looking in Iraq for WMD’s and all that time they were all sitting on Capitol Hill and on Wall Street.

    • @soveriegneconomist     Yeah, I’ve read Perkin’s book; great insight into some of what is really going on.  Interesting how four anti-U.S., Central and South American dictators all developed cancer at the same time; not like I haven’t read about a CIA developed weaponized cancer virus.

       
      Re: Chinese Banks Ownership Tree.  Best I can tell it’s vertically integrated to the two main Chinese state banks.  But I don’t think that matters much as the Rothchild Family, to some degree, controls all but three central banks on the globe. The holdouts being Cuba, N. Korea, and Iran.  No wonder we’ve been beating the Middle East war drums.  Just a few years ago the list included Afghanistan, Iraq, Sudan, and Libya. 
       
      With the global banking elite it’s not about money anymore.  They have plenty of that.  It’s about power.  An analogy would be they control the ocean and they’re taking the tide out.  Gov’ts may make policy that creates a wave, so it temporarily looks like the economic water is rising.  But the tide is going out and there’s not much we can do about it except individually prepare.
       
       

    • “Seems to be explaining in graphical easy to understand form, just about everything you are trying to say.”
       
      I am not TRYING to say it, I AM SAYING IT!  lol
       
      Thanks for the pointer, though.  I have seen the 1st episode of that but not the other 3.  I will do that soon.  :-)
       

  1. “The Money Velocity is at historic lows, a point of extreme embarrassment to USFed Chairman Bernanke, who is on the way out with failure on his resume.”
    Are you sure about that? Maybe he is about to hear, “Well done, thou good and faithful servant” from those who owned him. They have destroyed a good portion of the middle class and turned them into serfs with only the elite ruling class in control of their house, food and now even their Health or should I say Life or Death. I just have to look at those who put him in this position and then kept him there to draw my own conclusions. Now the Hatchet Job feminist will come in for the final Kill of Capitalism and liberty. So long America, even your once proud and fine military is now helpless and afraid to stop these enemies who came from within. The Trojan Horse delivered it’s package in 2008.

  2. Financial reset definitely in the making back to Gold standard. WTI and Brent oil tanking, Dow going down means Petro Dollar is not going to remain as World’s Reserve Currency. The dollar now a global risk.

    • You do understand, my good Ranger, that a return to the gold standard will be the very LAST thing that the paper-pushing fiat Ponzi schemers will actually do, right?  Only the threat of complete financial annihilation will push them to give up their wealth milking machine in favor of honest money… which is THE very last thing that such dishonest people would desire.  Giving up their license to steal would be excruciatingly painful for these cretin banksters.  Why, they just MIGHT have to go to work and EARN an honest living if that happens.  The horror!  The pain!  The shame amongst their fellow thieves!  <gasp, pant, wheeze…>  lol
       

  3. “Those who expect the money velocity to rise are way off, bordering on clueless.”     I agree with this statement, with that being said, how does heavy inflation start?     
    A large part of the policy is to keep money velocity low, and thus inflation under control.

    • Read the whole paragraph and what follows. Then it might make sense to you instead of lifting that comment out of context.

      “A global USDollar rejection is in full swing”.
       
      Maybe you need another board to spread your disinformation zman?

    • Hey BOP  we’re Hawaii bound, feet dry in Kauai Nov 1.  2 weeks in Princeville. If you get to the Garden Isle I’ll buy the first round.
      ping me a personal message on this channel and we can talk  I tuning up my IZ CDs to get in the mood
      Zman  
      Beats me when Inflation will start in earnest but I will bet 1 oz of silver that it will ramp to 20% per annum it hits.
      Inflation will move slowly until it can’t and then it’ll move really fast.
      CHina is experiencing a nasty bout of inflation flu with a 3% monthly increase just registered by their BLSBS monkeys.  CHina did a huge QE of about $11 trillion to shore up their shadow bankers when the Shibor rates bounced to something like 7 % and a temporary increase into the double digits.  China’s QE was equivalent to 200% of their GDP, whatever their GDP really is,  but the credit lock down that happened about 4 months ago was also Lehman-like. 
      I am pretty much done talking about inflation.  I’ll start talking when inflation hits in earnest or my meds stop working (again).  Our litmus for price increases is both the dollar signs spinning on the cans of soup or the minification of the same soup cans.
      All I see now is the product ads touting 
      NEW FLAVOR
       MORE NUTRITIOUS 
      NEW ECONOMY SIZED GREEN PACKAGING.
      SOYLENT GREEN IS PEOPLE  LOL
      I remember when prices were changing so fast around 1974-5 or so that the super market I shopping with changed prices so often that the stickers were stacked on top of each other.  I thought it really strange because all I had to do is peel down 4 layers to the first price.  It was only  maybe 25 cents difference but back then gas cost two bits a gallon.  Sheesh
      Now everything is electronic so you might not find out a price change until you get to the register.

    • Hey AGXIIK –  was over in Kauai awhile back. Great! I have heard they want to run over Hanalei(my puff da magic dragon spot) and make a Princevile out of it. Appreciate what you see or know on that. thanx

    • @AGXIIK
       
      “Beats me when Inflation will start in earnest but I will bet 1 oz of silver that it will ramp to 20% per annum it hits.”
       
      And when it does, we can be assured that the US Gov and Fed will be right there explaining to us how it is only actually 6% and that we really must do something about it.  They will, of course, propose the wrong things, making the situation even worse than it would have been with no activity on their parts whatsoever.
       
      “Inflation will move slowly until it can’t and then it’ll move really fast.”
       
      That sounds a lot like Hemingway’s quote on the subject:  
      “How did you go bankrupt?”   “Two ways. Gradually, then suddenly.” 
       
      “Now everything is electronic so you might not find out a price change until you get to the register.”
       
      Yep, yet another reason for us all to practice our “speed shopping” skills.  ;-)

    • @zman  — the ‘heavy’ inflation is likely to start in the following manner.  Most people seem to think of hyperinflation as the same as inflation, only on steroids.   But it’s more than that.  You can have low velocity of money, as we have here in the US now… and yet still have hyperinflation break out, inasmuch as hyperinflation isn’t so much a monetary phenomenon as it is a crisis of confidence in the currency itself.   We may very well have just seen a major change in the momentum toward this outcome.  Consider the damage that has been done to the worldwide confidence in the world’s reserve currency, the US Dollar in the last few weeks as a result of the US government’s insane debt ceiling/budget theatrical display.  To holders of US debt offshore, the disregard for their dollar holdings has to be nothing less than frightening.  As an example, while it was also a political shot across Washington’s bow, the Dagong cut the credit rating of the US and the Dollar took an immediate pounding on Forex here this past week. (and as a by-product, gold rose) That was a manifestation of a body blow to the worldwide confidence in the US dollar.  And it wasn’t the first tremor in the financial ground, nor, by any means, will it be the last.
       
      This is how I think you will see the eventual implosion of the dollar happen.  It will start offshore by people not brainwashed to a comatose ‘zombiestate’ by the US financial press.  The foreign dollar holders will start (continue) to dump the dollar and US Treasuries.  That continued downward pressure and selling of the dollar will push it’s valuation down and import prices will soar here in the US in what will become an increasing vicious circle. Bear in mind that the US Dollar broke below the important psychological 80 level (USDX) this week. (That’s significant in the worldview.)  Eventually, as the dollar continues to fall, that is what will alert the Sheeple that there is a problem as the price of our imports here in the US explode.  Note that, so far in this scenario, there need be no acceleration in the velocity of money.  As inflation takes hold at that point, the pressure builds and soon roars back with a vengeance, and as people, beaten down by the continued economic decline here in the US, have now become far more sensitive to the pricing of things, this is when you will see realization dawn on them of what is really happening to their purchasing power.  And I think that point is the tipping point.  And at that point, you’ll see the crisis in confidence that feeds on itself a la Weimar and Zimbabwe come full circle in the US…  This would not be so likely an outcome if the US Economy and the US dollar were able to be considered in isolation from the rest of the world, like a closed system.  But, now, we are all so interlinked and interlocked that the ripples in one corner of the world will occur as tidal waves in another corner…

  4. Jim Willie is very insightful and no matter how crazy you believe his thinking is, he’s pretty dame accurate. His articles are a must read for me and I generally go over them again and again. Just like his interviews. I urge people to go back to his old work to recap important facts generally missed due to our lack of insight until further instigation is performed as due-diligence. He’s quite a gem.

  5. I’ve enjoyed Willie for about two years. To me he’s like a fine wine—to be enjoyed sparingly over a few days.  Reading his entire monthly newsletter at one sitting is like drinking a full bottle of gin at once. 
    Both can give you brain damage. 
    I speak from personal experience on the gin.

  6. Dead whale and hottie Greenpeace Volunteer for sale.  Send picture of truck.
     
    Sovereign Economist
    I concur.  70% of all home mortgages are government backed.  All student loans are government backed.  Car loans are subprime and probably soon to be bailed out by government.  $40 billion a month of toxic DDD minus residential mortgages being bought by the Fed

    It won’t take long before the government owns such a large part of what was formerly the private sector lending world that pulling the trigger will be a cyber fat finger event that forecloses on every loan in creation. 

    “The government that is large enough to lend you any amount  of money you want is strong enough to foreclose on you any time it wants”

  7. Big Tom  I printed your request and will talk-talk with the locals to see what shakes.  Princeville has grown like a cancer, even has a huge Foodland.  The Hanalei valley is a fav spot.  I hope they never put condos on top of the Napali Coast walk

    • Thanks AGXIIK – condos on the Napali Coast walk? sheesh, have seen worse happen to beautiful places like that…..I know princeville, way out of my league though. I am use to getting by in sign language in 3rd world places if I don’t speak the language, and where if I want to dine I sometimes have to kill it first….. 

    • Mammoth  
      I’ll meet you half way
      Maui  
      First two weeks of December 2014. 
        We have a 2 week stayplace in Papakea.   The same offer stands for Bay of Pigs, buying you the first round.  Same for you 4 oz.  First meet up of the Silver Doctors irregulars.  BOP likes to hit Maui too.  Any takers?  We are set for the Maui time slot.  just sayin’

    • @AGXIIK , first 2 weeks of December in 2014?  I may just take you up on that offer.
      I wonder whether silver is more expensive, just like everything else in Hawaii is, than on the mainland.
      ——————————————————————————————————————-
      @Ranger , you are way too kind.  In my real incarnation, I probably have a lot less hair than your pet elephant.

    • Mammoth I just pinged start page to google bullion dealers  Cashe bullion has multiple locations and are selling silver for at least $4-5 over spot  Their spot price is $22.70 an ounce.  Hawaii   very high prices   not a good deal IMO

    • i stay maui. our local silver guy gets $3/spot for buffalos and 2.75/spot for 10oz ntr bars. cash across the counter. im waiting over 15 days for my order from provident they just shipped today. will be over 3 weeks before i receive. everything is 20% more out here. fuel surchage. i did get some 90% this week for spot. the hard part is digging holes to bury the hoard. to much blue rock

    • @4 oz   DAMN YOU!!!!   LOL!   What the hell? You work for the Hawaii Board of Tourism eh??? Now I gotta put Kauai back on my travel bucket list…   LOL!   That freaking video (and the rest of that series) makes me antsy to join y’all out there…  and here I was gonna do some more stackin’    BAH!

    • Make sure you have a least six bucks for a loaf of bread!”
       
      Yep.  And that’ll be the cheap pasty white stuff that when the entire loaf is squeezed, it becomes an indigestible lump about the size of an ice-cube.  GOOD bread will be more.  Much more.  Certain brands of good bread are already pushing $5 a loaf in price.  Or… I can just make my own for about a buck.  ;-)
       

  8. Big Tom  We got slotted into Princeville through our time share group. 
    I like Kapaa more.
    there’s an old school heavy lifters gym right next to the ABC store that take even takes haoli’s like me  I tan up quick so kind of blend in.

  9. dr willie is a favorite of mine.  I just love how he includes at least one choice insult in every piece.
     
    The USFed must lap up what is dumped.
     
    can’t you just see the little piggies with their snouts in the vomit?  now that’s pure poetry.

  10. What is really truly scary about the massive drain of the gold an I bet silver too is why? Just think about it and I have an had nothing but very bad thoughts of why? 1# There looting the USA of all its wealth that is actually worth something and when theres nothing left the nukes will come for the end closer of us. 2# There making you believe that china is buying all the gold, Its being laundard  through there but its really going to the new world bank for the new o,w.g. 3# The last one when the shit hits the fan the end game is here an America is officially declared bankrupt. They will say china has it all. Covering there ass since there never was much gold in fort knox anyway.

    • @Dang,  You have to admit that your scenario would not be too far outside the diabolical scope of the banker cabal… I keep saying that there will be every effort made to drain gold reserves from the West down to support at $0 (at zero) if necessary.   Think about it… the banker cartel causes the transfer of all the gold to the East and then, as a final FU on the Chinese, whacks the price all the way to zero…   of course, they can’t touch the value, but, no matter… no one seems to know the difference between price and value anyway so… either way, they succeed in their “fait ‘accompli.”

    • Something tells me that those who have ALL of the gold will be the ones setting the price and not the Ponzi scheming paper pushers.  And their price is likely to be WAY above what we have now.
       

    • @Ed_B  Eventually you are most likely correct that real (physical)  gold holders will call the shots pricewise.  But I think I have a really good idea why TPTB are pushing on gold so hard right now… aside from the short-gold/long-dollar arbitrage…  Consider for a moment, if you will,  a global reset is coming (Remember, apparently, at the government’s request, we are finding out,  Chase instituted capital controls effective Nov 17… this stuff always precedes a currency reset)  Let’s pull a number out of the hat and, for the sake of ease, let’s say the reset devalues today’s dollar to a third at $.33.  Well, at $1900 or $2000 gold, the devaluation would leave gold at around $6000.   Versus $12-$1300 suppressed gold price now…  That’s only $36-$3900 at the end of the reset… that’s a whole lot easier for them to stomach… especially considering they will have to go into the market to acquire that gold… (ain’t nuthin’ but nerve gas in Ft Knox anyway) Think of it this way, perhaps for every dollar they can push the gold price (paper or otherwise) down, they get a payoff of $3 when the poop shakes out in the end… And, if the Chase action is any indicator of timing, they may reach the reset date about the same time they run out of physical to lever off of…. the trigger would likely get pulled when the dollar and bonds are in sync with the program any time after that November 17th date.

    • @Sovereign Economist

      “Eventually you are most likely correct that real (physical)  gold holders will call the shots price-wise.”
       
      I don’t see any way that they wouldn’t.  The trick here is what amounts to “eventually”.  Like a lot of this info, none of us knows WHEN these things will happen.  We only know that many of them are inevitable because the trends are showing us that.  It is easy to underestimate TPTB and their ability to delay the consequences of their fiat paper Ponzi scheme, however.  A reasonable expiration date already seems to have passed, so their plans could be running on fumes as it is.
       
      I agree that a currency devaluation is not only likely but inevitable.  The only questions being when and how much.  FDR did this back in 1933-34 via resetting the price of gold from $20.67/oz. to $35/oz.  That was a huge dollar devaluation, yet it is rarely discussed in that way.  Something similar seems to be on the way.  Something else that seems to be on the way is the loss of World Reserve Currency status for the US dollar.  Never before have so many creditor nations worked so hard or so long to replace the dollar with their own national currencies or with gold.  This process is ongoing and seems to have only one inevitable conclusion.  My guess is that the USD will be replaced as the WRC by a basket of creditor nation currencies or by a single world trading currency that is based on them.  This will likely include agreements on the amounts of currencies that can be printed.  It may also include some convertibility with a physical commodity, such as gold and / or silver but perhaps others as well.  A commodity basket would allow countries that have specific commodities in large amount to participate in this kind of currency revival, rather than requiring them to have resources that they may not have or can’t easily get.  Anyway, the loss of WRC status would mean much lower demand for USD.  As we know, when demand drops for any reason, so does value and therefore price. It is possible that the USD could lose about 1/3 of its value from this effect alone, and additional value via the gold price reset.  Not that these will necessarily occur at the same time, though.  It is likely that TPTB will want to allow time for such moves to be digested by the people and the economy before taking the next step.  In any event, those who do not have real money, which is to say gold and silver, will see a substantial reduction in their living standard as times passes.
       
      I also agree that a lot of this is tied to the amount of gold in their hands and that this has been draining away very quickly, particularly over the past few years and even months.  While we cannot necessarily trust the published numbers for the amount of gold available, as Harvey Organ is always going on about, it seems pretty clear that: the supply is not infinite, that more is going out than is coming in, and that it will run out at some point.  That point is likely not more than 18 months off, by my reckoning, and perhaps as few as 6 months but this is all a WAG on my part.  ;-)
       
      Another unclear point is what will TPTB decide to do in order to redirect the blame for this economic fiasco… and it will be a fiasco, as living standards fall and prices rise significantly.  As others have said, starting a war somewhere is their typical response to problems of such magnitude.  Syria may well have been just such an attempt but that got scotched, thanks in large part to a true groundswell of anti-war sentiment in the US population.  This should give us all considerable hope that the political situation is not completely out of hand these days, although it does seem headed in that direction.  
       

  11. @Soveerign Economist
    at the rate of $85 billion + per month, they are taking eventual ownership of everything that is mortgaged in this country.
    Such a true statement and great comments from all. Even the Free Willy comment. I say free them both.
    When it gets to the point of the banks taking possession of all the mortgaged properties, perhaps a new Jefferson, Franklin, Washington and the likes will rise again to set the country straight. We’ll see. Having your property paid off in those times will probably be meaningless as well since the gov. will probably raise your property tax tax so high you can’t pay it and they’ll take your property anyway. Who knows. Just a thought. I have a feeling, w”we the people” will have more to say and show than is commonly believed.
    Keep the Whale pictures coming as I missed the first one. Keep the stacks high.

  12. @Sovereign Economist

    Well said regarding the beginning of high inflation with low money velocity. As for Zman: the guy is somewhat of an anomaly here, in that what you have succinctly explained to him, has already been covered by numerous articles and members before. I have come to the conclusion that he is either obtuse, or has ulterior motives–keep an eye on the similarity/redundancy of his posts.

    I do agree that inflation will ignite in the way you have described. I would just like to add to a few of your points: 

    “You can have low velocity of money, as we have here in the US now… and yet still have hyperinflation break out, inasmuch as hyperinflation isn’t so much a monetary phenomenon as it is a crisis of confidence in the currency itself.   We may very well have just seen a major change in the momentum toward this outcome.” 

    Money velocity still rockets upward in this context, but its due to an entirely different market response. Instead of it being demand-pull –the inflation the fed is desperately trying to stoke–people become reluctant to accept dollars for goods, and, in response, when holders of dollars become fearful of their depreciating currency’s future value, they quickly sell dollars to buy goods of real value, i.e. money velocity rapidly increases. As you say, the impetus here is a loss in confidence. This becomes a vicious cycle, and higher prices beget higher money velocity and so on. What many people do NOT seem to understand is that money velocity is largely contingent upon psychology. This is something that can be triggered literally overnight, and it’s also why historically, the fed is always too late in taking action. The late 1970′s to early 1980′s period depicts this well, when economic growth was rapidly slowing but money velocity was rapidly moving higher at the same time. What should really scare the hell out of people is the fact that once inflation starts, it will be extremely difficult for the fed to stop it. A Volcker type response would immediately be absolutely disastrous to the economy, in its current state. This type of realization, in and of itself, could precipitate a very huge shift in money velocity (psychology) once slightly higher inflation is triggered.
     

    • “The late 1970′s to early 1980′s period depicts this well, when economic growth was rapidly slowing but money velocity was rapidly moving higher at the same time.”
      This is not even close to today’s economic enviornment,  that is a terrible comparsion.
      You say it will be a “lack of confidence” in the US dollar, but what will be the alternative?     Will the money pour into the Euro?   Are you expecting the Euro to trade at 2.00?      The Euro is a mess.    What about the Yen?    It’s worse.
      How come everyone around the here bashes the US dollar, but they never mention the Euro, Pound, and Yen?     The other major currencies of the world are just as bad, or even worse.   It’s about being intellectually honest,  you can’t just pick on the dollar and ignore the rest of the world.
      Or do you think that the US, Euro zone, and Japan are all going to experience heavy inflation at the same time?   I think that doesn’t make much sense either.  

      From Trader Dan, “the investment community is convinced, absolutely, that there is no inflation, nor will there be any for the foreseeable future. Need proof of this-Commodity prices are relatively stable and have been for some time now. The sector has been slowly grinding lower the last two years now.”

      http://www.traderdannorcini.blogspot.com/

       


    • @zman “…You say it will be a “lack of confidence” in the US dollar, but what will be the alternative?   “…Euro, Yen…???”

      Z, I’d bet 95%+ percent of Americans barely know a Euro, a Yen, or any other foreign currency exists, let alone that they can actually trade them and even fewer know how to do so…”  In Weimar, Germany, in 1922-23 people had no idea about foreign exchange.  Same with Brazil in ’89-’93, Argentina in ’89- 90,..   to take 2 more examples….  You… me, the rest of the folks who participate in this forum dwell in the rarefied ‘air’ of the existence of these financial options.  The masses do not.  So, I’d turn your assertion around and pose a question back to you:  Name me even ONE hyperinflation where playing the Forex saved a significant percent of the people from total ruination.  Let me save you the google search… NONE!
      Take Hungary, where in July of 1946, the monthly hyperinflation rate was so high that prices doubled EVERY 15 HOURS!!!!  Zimbabwe every 28 hours!!! At this point, NO ONE is thinking of ANY esoteric foreign currencies or trading vehicles….  the ‘alternative’ is quite simply, “ANYTHING BUT!!!   AND NOW!!!!!!!!!!!!!!!!”  In Germany, workers had their wives take their paychecks, issued in the morning to the store by noon to use before the money was devalued again at 2PM….   By this time, the reaction is no longer rational — it’s visceral panic…
       
      Again, inflation is a monetary event.  And, assuming the conditions are even ripe for a hyperinflation here in the US, it would still take time — it won’t happen over night.  But gradually the erosion in confidence in the money occurs until irrationality takes over.  And, when it does, that’s the tipping point, and the issue now becomes so ‘localized’ that all rational thought goes away…
       
      Trader Dan’s comments say the ‘investment community’ is ‘CONVINCED’ there is no inflation… that doesn’t mean they are right.  There is a sort of “tidal” ebb and flow in market sentiment and it is influenced by many different things… some real, some perceptual…  The consensus Dan refers to is a herdlike perception.  Just like the perception that Gold is a horrible investment,   Certainly, if you listen to the media, all is fine… there’s no inflation and we’re in a recovery…  but, if you go to the grocery store, or your local hardware store, a different picture emerges…
       
      One other thought occurs to me in your comments about why we bash the dollar but never mention Euro, Pound, Yen etc….  remember that these currencies all sit on the seesaw of perception and the sum total of their index value is collective — ie, they all fight each other for the title of “The Best Horse In The Glue Factory” on any given day…. but, what most people forget is that they ALL compete against GOLD in the Forex…. what is it now?  Something like 240-250 Billion worth of gold is traded in the Forex (a $4 Trillion market?) every day???  (far more than even contemplated by Comex)  And, against gold, all those currencies you mentioned are weakening and losing value by the day…. despite the hammering we’ve seen in the paper prices of gold here in this country, gold still trades near it’s highs in other currencies — certainly out of proportion to the hammering we’ve seen of it’s paper price in dollar terms.   So, what we often think of as manipulation of gold around this forum may, perhaps more accurately, instead may be a manipulation to support the Dollar, with gold as the lever…. it seems that much of the gold shorting is correlative to buying the dollar in Forex to save it from collapsing….  granted, it is all a paper market manipulation, but it is interesting that, as the dollar is coming under increasing selling world-wide, the gold shorting has also picked up in intensity over the past 6 months or so (since the first huge smash in April) as the govco PPT agents have been engaged in a desperate, no-holds-barred life and death struggle to support the crashing dollar… (and it is in this trading space that China has inserted it’s vacuum hose) — and this is the epic struggle where paper meets physical that Andrew Maguire refers to in his KWN commentaries….  Just this week, the dollar fell below the 80 psychological support level and, rather significantly, I think, it is still below 80 over the weekend…. didn’t we have another gold smash recently???
       
      So… as the dollar loses ground in the international trading arena, you can bet your nads and marbles, that inflation will make up for that lost ground as it continues to wash up on our shores here in the US…  just remember…. our trade deficits here in the US are correlative to the value of that declining dollar…
       
       
       

  13. No inflation?…
    Supermarket prices = higher.
    Restaurant prices = higher.
    Housing prices = higher.
    Education prices = higher.
    Electricity prices = higher.
    Water prices = higher.
    Car prices = higher.
    Airfare prices = higher.
    Healthcare prices = higher.
    Gold prices = ‘lower’.
    Silver prices = ‘lower’.
    Well, there couldn’t be any inflation, ‘because Gold and Silver prices are going down’!  How well the propaganda works!…

  14. well son of a bitch. hit the wrong botton and an hour’s work vaporizes
    zman, you got lucky. rather than try to recreate my rant I will put it to you simply. You are a fool when it comes to this subject of inflation. since nothing we can say will change your mind, I fear for your future if you deceive yourself in the way suggested by your posts..
    Nothing is foolproof because fools are so ingenious. In your case, it will be your undoing. cheers and good luck

    I am done wasting my time reply to your posts, countering your arguments and attempting to get you to have some clarity.
    It’s like mud wresting with a pig. The pig enjoys it and all I get is an odor of sewage.

    • @AGXIIK    Heh heh, I guess I still see these kinds of exchanges as “teachable moments”   even if I do have to change gas mask filters every now and then… but what zman speaks of is a view shared by many, so he’s not alone…  I suspect there are more than a few people who find these posts but have never registered or participated in our discussions here… and if they are newbies to the issues we are all facing, information and knowledgewise, then reading z’s and our views may, at best, be confusing…  when I did the radio shows for 3 years, it was interesting to see how hard some of these concepts that are very obvious and clear to folks like you and me are to get across to people…  so I will take the time to respond to these things… as for dealing with the odor of sewage… heh heh, I lessened that burden A LOT, when I quit my cable TV connections and cancelled my MSM subscriptions some years back… so, I guess you could say my ‘immune’ system has a little reserve capacity to fight infection left…   :)
       
      That said, I DO get your sentiments… :)

  15. Roger that Sovereign.   Zman will not change. 
    Head meets brick wall.  Wall wins. 
    That’s not a Zen Koan but close.
    Better one
    What the sound of one head hitting (a wall?)  
    trying to convince zman of inflation essentials.
    And I had a huge post wired about my time in the inflation cauldron of the 1970s to try to convince zman that the 1970s and today have many similarities.

    Cancelled your cable?  Cancelled your MSM media?  Whoo wee.  Ann Barnhardt would love you.
    I’d might give that a thought but Duck Dynasty is on, and then Homeland and Boardwalk Empire.
    Cheers   You should have a radio show here on SD or maybe TND.

  16. I like to follow Revolution… so I download Wednesday night’s shows as torrentfiles the next day or so… takes about 5 – 10 minutes…. no madison avenue subliminals… just a good show… too bad it evidently fell in the ratings when all the new goo crap shows hit the fall lineup a few weeks ago… as for my inputs, it’s all internet for all the content… works just fine when you know who has the good information and who peddles the BS, either out of ignorance or out of their affiliations with the disinfo forces… you’d be absolutely astounded to know how many ‘information sources’ are actually hosted from within the govco-intel server realm… turns out they don’t just intake a la the NSA… they also have a pretty damned robust disinfo outflow presence in the alternative media world too… (gosh… what a surprise eh?)
     
    Funny thing, when I ended all those “moral decay toxins” cablefeed IV’s into the house around here, clarity exploded! Things got real simple real fast!!! My head cleared and I am now definitely better informed on the stuff that matters now… it’s amazing how much of your life you can reclaim when you stop consuming all that mind-dumbing splopsh*t on TV… it’s kinda like another flouride or GMO delivery vector yanno??? And, as I’ve iterated here on numerous occasions, the secret to good propaganda is that the BS payload is carefully wrapped in a sweet sugarpill of feelgood pablum and lord knows, TV delivers that in spades today… if I go to a friend’s house and they have the TV going, I will actually get visceral body sensations if I even look at it… psycho… maybe… but I’m convinced it’s a conditioning response to some degree…
     
    Yes, I was sorry to hear of the hour’s worth of work you lost… and now, knowing it was about the inflation of the 70′s I would love to have read it…  I learn a lot from you so, I regard that as a lost opportunity…  on my longer posts anymore, I do a word file and then paste it here when I’m done… it’s safer that way!  LOL!
     
    A radio show might a bit much again.  People who knew of the network keep urging me to do it though.  I used to enjoy the hell out of having Bob Chapman to myself for an hour once each week for three years on my Sovereign Economist show and letting the radio audience be the fly on the wall to our conversations… (many of our shows are still archived up on YouTube) I can’t tell you how much I learned… that man was just amazing.  Frankly, when he passed, it became really hard for me to keep my head in the network emotionally.  Over the three years, Bob became a dear and close friend and frankly, losing him hit me pretty hard.  Add to that, the 20 hours a week of programming and all that went with the workload was exhausting…  add to that, the NDAA had passed and I started getting some ominous hints ‘over the transom’ that first amendment protections might be trumped by a ‘lower power’ just as Bob had warned me would happen sooner or later.   That said, though I might be ok with being an occasional guest commentator somewhere once in awhile under the right circumstances…

    • SE and AGXIIK,    I am not saying that individuals don’t experience inflation, anyone living and paying bills knows that is true.  The reason why I quoted Trader Dan was to explain what “big money” thinks about inflation. Is Pepsi and Wal-Mart experiencing inflation?  Not really, big companies still are keeping costs down for now, this is what “big money” worries about.
      I was a big fan of Bob Chapman, and so was my father.  I really wish he was around to explain today’s economic world, he did it better than just about anyone.
      I DO think there is a risk of heavy inflation down the road, but it is very important to discuss the subject matter and not just say “hyperinflation is coming next year”, some here don’t like me questioning monetary policy results, I believe keeping a open mind in the process is key for investors.  We have all made wrong assumptions in the past, there is nothing wrong with examining our convictions.
       
       

  17. Sovereign Economist. I hear you  That you for being so instructive.
      Being from the old school—Howdy Doody TV time–the idiot box is still connected. I dissect and remove addictions one at a time.  Now its animal proteins that are not beneficial and rotating to a diet that is more healthful. Doc has given me some good direction on that score.
      Most of my time is spent either running my business or on the internet, drinking from the firehose of intel found here and there, trying to  clear my head of 55 years (I’m 61) of MOPE agitprop and disinfo resulting in well over half a century of dreck  depositions found between the ears. The Augean Stables were probably easier.  I’m also an auto didact so its kind of a lonely quest for quality info while using a bit of critical mind left to sort the dross from the good information. But a mental high colonic with a 20 mile hike in cyberspace is good for the soul.
    But I will confess, I do like the good hard edged acting on some of the late night shows.  Additionally  watching some of the cop shows shows how the pros and amateurs run their guns and handle fire fights.  Their tactics are instructive since we face the Press Gang Praetorians coming to towns near us. Those are instructional videos IMO  LOL  The police shows are designed to acclimatize the sheeple to the benign nature of the cops so that we won’t ‘be so surprised’ when MRAPs rolling into town, ordering us to Shelter/Swelter/Quiver in place.  ‘Stop what you are doing Citizen and huddle in your hovel’. 
     Our tiny ‘vil has a first rate armored vehicle.  The officer in charge told me how it can be operated and means to disable it as well.  Heh heh.   
    The nature shows are enjoyable too. More climate change propaganda larded into critter stories but furry creatures are a weakness of mine  While doing that I’m still on the computer while reading a cellulose information source. Multi tasking data input to gather as much as I can, the last 3 years have been a wide ride. Nothing in the organic world looks the same to me.  Everything has been turned upside down. Keeping posting and I’ll keep reading. Cheers

  18. zman
      Whatever the big corporations and banks are doing to curb their cost factors, it is almost invariably on the backs of employees. Lower benefits, lower or nonexistent raises, lay offs and part timing are four that come to mind.
     The health care costs are hitting small and large businesses (See IBM kicking out health care for their people). Employees have become little more than profit and loss center data points, with layoffs and part time employment  so common today that we are in peril of becoming a part time worker nation.  The individuals you speak of are the  99% of the folks in this country. The new health care system is not about health care. It’s about much higher taxes, regulatory fines and extrenous fees that will hit us like a ton a bricks in early 2014. And dont forget control by the uber government. That will impose costs we can scarcely imagine. I will leave the entire system once we get the expect bad news that our insurance carriers give us the boot.

    The 1% does not worry about inflation except as it might impact a boat, jet, mansion or cost of cavier. I am not being cavalier about this.  Big money people, the 1%, may be as much a part of the inflation paradigm because they bid up the price of commodities and common folks essentials, if by no other reason that they play checkers with workers and chess with the assets that drag prices upwards. 
    Example 
    Verizon just floated $49 billion in bonds to buy another phone company. The total price was OVER $100 billion.  Who pays for that acquisition?  The loan costs will probably be $2 billion a year.   It’s always inefficient when two large companies merge like this.  Costs are passed on to consumers.  Losses are covered by the  consumers  and to the shareholders to absorb the costs of the bad decisions. 
     Profits are highly taxed. We have the highest corporate tax in the world. Taxes are always, always always passed on the the consumer. Profits inure to the corporation.  Losses and taaxes are borne by the consumer.
     We pay more due to these higher taxes.  We also are forced to absorb more of the health costs of these mega corporations.
      Banks pass on higher costs in the form of fees, interest and impounds. Try to find anything low cost at a bank now.  I’ve fired 2 banks lately due to onerous, obnoxious fees that totalled $1,000 a year.  Profits inure to the banks. Losses are borne by the consumers and tax payers.  Who gets that $13 billion fine levied by the DOJ?  You and me? Nope.  The government pockets that piece of change.  There’s enough in that extraction from JPM to cover the government’s overhead for about 4 days  But what about inflation when we recognize that there is a due bill of about $200 trillion inposed on the people of this country over the next 25 years.  How will that affect prices.  Taxes always rotate into the pockets of the consumer, rextracting what little is remains and leaving nothing more than lint.
    What is the 2014 chained CPI calculation for increases in Social Security and Veterans benefits?????
    1.5%
    One freakin’ point 5 percent. What’s with that? Even the gummint says inflation is 2% But chained CPI is calculated to be 1.5% ’cause grandma can eat ALPO dog food.
    I call this HEDONIC EMBEGGARMENT.
    Death by government ‘generosity’ is still Democide.
    Inflation at the grass roots level may be only 8-10% but try eating a big bowl of Hedonic Soup. Cold water, rocks and some weeds from the garden
    Who eats that now?
    North Koreans eat stones to fill their stomachs and weeds for salad.
    The same happened in Nazi Germany and Stalin’s grand experiment in building the economic man.
    Inflation is transferred to the consumer before, during and after corporate decisions are made to curtail costs. Prices are always the deciding factor when considerations of these magnitude are made.  How much will the consumer bear? How much will the government do to protect Megacorp’s market share?  Can they offshore their marginal tax burden while jacking prices to the end consumer? Check, check and check.
     Notice that when prices rise, they rise almost instantly while the product quantity drops by ounces or pounds. When cost containment is effected, the prices are rarely dropped in conjunction with lowered cost expectations. 
    Milton Friedman, a man who knew something of economics and business said   “The social responsibility of business is to increase its profits’  
    He didn’t say the social responsibility is to its employees.  A Telling statement, that. 
    That statement does not include the well being of the average Joe or Jane.  The good paying wages are being destroyed by the focus on profits. I am not saying that businesses should sign a suicide pact with their employees or the government, thus killing profits.  That kills the business.
    But it is axiomatic that a business will terminate costs to save itself and mostly through head count.   Passing costs on to the end consumer is another means to retain and built profits. That’s where big business is presently managing inflation. The biggest profit retention had come and gone with laayoffs. The low hanging fruit of layoffs is pretty much over.  Inflation is in ‘NUDGE-Mode”   Nudge nudge nudge, bump bump bump.  Price increases will come in small increments each month.
    In my confessional post as a former banker we had bump rate programs. That 25-50 BPS increase had a very sustantial bearing on the bottom line.  We were one of the most profitable banks of our type in the nation.  And if a person was excess head count they were kicked to the curb with an email or phone call.  That helped the bottom line too.   I mentioned before that I was the 4th largest shareholder of this publically traded corporation.  These actions benefited me quite nicely but in hind sight it became reprehensible and was very hard on all concerned.
    All of this is part of the inflation equation.  Nothing in business and its costs factors can operate in isolation for even short while. Businesses must adapt and grow or fail.  I have been in the business world for 33 years, owned my own firm for 22 and have seen just about everything that can affect businesses.  If a corporation cannot pass on higher prices to their customers, that firm will eventually fail.  It takes no more than 2-3 quarters of bad earnings and a business will be in failure mode, even a large one. The market is very harsh on firms that are unprofitable.  If inflation is not yet stalking the land in earnest, it will soon enough.  The handle on inflation will just as easily be disclosed here as any other site.   Keep your options and thoughts open on this and BE SURE to prepare for it.  Front running inflation can be managed but we will all have to be on our toes to do so.
    Events move slowly until they start moving very fast.
     
     
     

    • AGXIIK, thanks for the response, I agree with most of what you stated.
      We will keep our eyes on how big business manages its costs down the road.

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