Thursday, March 23, 2017

The Paper Empire

Clearly, followers of these annals by now realize that the egregious imbalances of our times stem from the strength, depth and usage value of the US Dollar. That currency's country is hollowed out in terms of much more than just factories which supply cheap labor. One wonders if North Americas much needed new infrastructure (from electricity grid systems, to bridges and roads as well as clean water) could actually be built or maintained by the present generation of burger flippers and Walmart online grocery consumer concierges. It is sad to watch our dying middle class affect such pompous bourgeois.

We have our dollar, and we have our military, but at what cost? Both have grown to the full spectrum dominance position required of a global empire. But as a country, the generations our dollar has born are seen around the world as lacking virtue, industriousness, skills and competence.

For the vision of North America to regain its former role of "producer extraordinaire" its national currency must be on par with other nations in terms of competitive labor costs. So the dollar must weaken, it would appear. Will a Bretton Woods type accord take place to effect a return to systemic balance among the worlds sovereign nations? Though it is much needed for the little people, especially that "middle class" that used to define prosperity by its proportion to the other classes, I do not think so, not anytime soon.

In our paper Empire, having elected the "master of hype" as our leader, there is little sign that the dominant class (not in size, but in power and wealth) is willing to forego the status quo for "the greater good". What the little people do not understand is that it is not who they elect that matters - it is who those in power choose for them to elect that matters. The supposed choice is inconsequential, as all viable candidates are vetted by the dominant class as being acceptable to their agenda before being placed on the ticket.

In this Paper Empire, there is only one type of revolution "fitting to the fight" and I am at risk to mention it, so please bear with me.

But do the little people understand at least the concept of fight fire with fire? They would need a true leader, rising up from within, to represent them and their plan for a self-governed sovereign. They would need wise counsel, to prevent the exploitation of their position (very important) and they would need to take action, much like their forefathers did more than 240 years ago.

But these times do not call for a conventional uprising. The police state is far too well manned and equipped for such a vulgar move. The revolutionaries of today would simply pick a time and date and collectively agree to stop paying all debts until said international monetary reform is enacted.

Is this likely to happen? My friends, the most likely consortium of debt serfs to conceive of and actuate such a plan just voted for Donald Trump as their leader. And he has completely obfuscated all realization of Wall Streets dominant role in the dollar system with that tired populist notion of "We're being screwed by foreigners."

After all, this mighty dollar can withstand protectionism and the misdirection of debt servitude outward upon imaginary foreign exploiters just as well as it has withstood all else. And that belligerent national attitude is just the recipe for confrontations to continue in a nation where many do tire of foreign adventures (which only serve to recycle wealth through the military industrial and surveillance complex).

Yes, Roacheforeque thinks it is more likely that North America's "middle class" is unable to make their own bed properly and thus will have it made for them by those imaginary enemies they have been taught to perceive. And this is only possible mind you, through the age old wisdom (the enemy of my enemy is my friend) which has found its form in the alliance between China and Russia.

It is not the virtue of their leaders, Xi and Putin, which impresses Roacheforque. For neither would seem (nor be) so virtuous in word, demeanor and in action, had they not the benefit of a common aggressor. And such is the way of this world, and thus the way of humanity.

The pendulum of life swings in reaction to imbalances and injustices among the mighty in wealth and power, regardless of how we give it to them, and in what amount.

To understand one's place in all of this, is a blessing.

Thursday, March 16, 2017

Our Derived World is Primary

Our paper and digital money reigns supreme over the physical monetary metals. Our propaganda, fake news and false veneers hold sway over a "truth" that no one can actually determine. And our "sentiments" - thoughts about the future - move markets above and beyond the fundamentals of the "here and now".

And yet we wonder why the FED would hike rates into a calamitous economic present and future outlook, as Yellen feeds chamber echoes back into the "stunned reaction" - which had the exact opposite effect of its desired outcome (yes, even artificial markets eventually respond to counter intuitive output with counter intuitive reactions).

What no one is talking about - the elephant in the room - is the interest rate derivative complex managed by the true corporate owners of the FED, the $145 TRILLION in "systemic" interest rate derivative positions held by the top 5 primary dealers, the Too Big To Fail banks who legally own the Federal Reserve System, including the NY FED.

Yellen. Simply Doing As Directed

Our friends at the BIS will tell you that this notional $145 Trillion is a balanced risk operation that cancels out to some inconsequential fraction of that amount. And yet 5 years ago (the predominant length of term for forwards and swaps) everyone you knew was saying that the FED can NEVER raise rates, and that in fact they are likely to follow suit with Europe into negative territory.

I would posit that 5 to 6 years ago, certain larger players took substantial positions against sequential 25 basis point hikes 5 years forward. And the FEDs primary dealers now stand to make massive profits on the FEDs actions today. I won't speculate on the size of these profits, because they will be taken in a world where "rule of law" is negotiable and many dollars change hands "off book". But rational thinkers can easily conclude that the seductive power of such guaranteed profits have a far greater impact upon the policy decisions of a wholly owned subsidiary than some indeterminate mandate.

It is astonishing that no one seems to grasp the huge conflict of interest between the FEDs primary dealers and its interest rate policy. Even more astonishing, many still do not even understand what the central banks truly are and who they serve, though this is gradually changing as the dollar system's Deep State structure fractures.

The point at hand is that the global financial and monetary system's derived world is the primary mover of our real world. It creates our future "reality" as an outcome of the derivative futures of true market makers like the NY FED, ESF, the Federal Reserve and it's Bailout Queens, JPM, Citi, B of A and Goldman.

This inexplicable and counter-intuitive world dominates us because we gradually came to accept the primacy of wealth by decree, of speculation over productive work, of easy money over sound money, of debt over equity and the age old lure of something for nothing. In short, our future does not affect the outcomes of speculation. Rather, speculation itself shapes our future.

Some of us do hope (in vain, yet hope we must) for a return to the free market reality of times "more sound" than those we exist through today. We do this, even though it is likely that Capitalism will be extinguished in the coming systemic "blame game" and replaced by a world you are guaranteed to loathe even more than this one, if you can make it to the other side intact.

Not everything in this world rests on a speculative profit of one type or another, but so much more does than most realize in this derivative world that so few understand, and thus have come to accept.

Thursday, February 23, 2017

Exploitationism

One must read and correlate much information these days to separate the wheat from the chaff. One must wade through thickets of contempt from people whose conviction with their chosen "format" is unshakable.

Certain mainstream news formats are very intoxicating. First you are shown the "far away" horrors of a world "you are above". You are then shown the anti-social behavior much closer to home that we can all find mutually disgusting. Then you are given the comfort of a human interest story that we can all feel charitable toward. It is a psychological format that is designed to make you feel good about your place in this world, and (by the way) go out and buy the products you see advertised during the program.This format works best with a pseudo intellectual audience, mostly academic, liberal, progressive leaning. You see it on all the best channels and "news hours".

Then you have the conservative, right wing formats like FOX news, which pander to the "angry white male" audience and the broader demographic that has been coalescing into what is now being called the "alt right". But as each format and its content appeals to each audience type, the power of confirmation bias is extremely effective.

I was talking to an extended family member yesterday about the demonization of Russia and Putin. I was told that I "need to get off that damn computer and read the paper every once in a while and listen to FOX News". I could not even establish the simple and irrefutable fact that Putin is not a "dictator". This erroneous conclusion had been so firmly planted that it could not be shaken, nor argued against. When I tried to reason through the argument with a simple analogy: "Imagine if Russia were to advance upon Alaska and oust Sarah Palin in a hostile military takeover, installing a puppet regime sympathetic to Russia's financial interests, doing so in the name of Washingtonian aggression against a sovereign State." But the analogy fell upon completely deaf ears. "We want Russia to stop bombing the Ukraine" he retorted.

"What the fuck are we doing over there? Who elected us the world's police force and whose ideology were we elected to protect? Do you really believe we are are in the Ukraine and the Middle East and the South China Sea to bring freedom and democracy to a downtrodden people who desperately thirst for Americanism?"

The answer, if the question could have been fathomed, and a response articulated, would have been "Yes".

It is a shame that Capitalism often takes the blame as the underlying cause for this condition of the world today. Capitalism, as correctly defined and practiced, contains an innate "natural selection" mechanism which the human ecosystem no longer contains. We could take a valuable lesson from the natural world outside our artificial one and apply it to our understanding of private capital systems.

When Snyder at Alhambra trots out chart after chart (as does more and more of his contemporaries of late) to espouse the idea that banks are not taking advantage of profit arbitrage opportunities, and this thing is "broken" and that thing is "not working" as it has in the past ... this merely confirms what these annals have posited for years now - that free markets no longer exist. This is why the markets have more or less been abandoned by all but the top-end algo's of the high speed trade game.

But I digress. Exploitationism is a powerful tool of the corporatist global power structure. It has replaced Capitalism as the chosen modus operandi of the international monetary and financial system. Such is the nature of human systems. The strong naturally exploit the weak. And we use propaganda to make them not only like it, but to crave it. Such irony ...

What hope lies in this understanding? Ask yourself what our modern Exploitationists truly hate. What is their kryptonite? What is the substance which, through the ages, has placed the common man on equal footing with their exploitationist masters, epoch after epoch through time?

Then, when you arrive at the correct answer - go get you some.

Thursday, February 16, 2017

Perceptual Balance: Herd Gone MAD

The world is literally losing it's collective mind. And the primary reason for the insanity of the herd is the polarity of propaganda, mixed with a sprinkling of reality. Truly the Lions are embattled now as small dogs go wild and hungry from want of scraps ...

The number of formerly assumed-to-be-rational "little people" who have bought into the complete demonization of Russia is beyond shocking. One might conclude that these people have no conscience whatsoever, and fully embrace the American Exceptionalism Manifest Destiny Doctrine that marks them as hopelessly entrenched into the mindset of US "might-makes-right" hegemony - as an END by ANY means.

And yet these are the very same people who righteously defend the politically correct, progressive party-line of a transgender, multi-ethnic, one-world community Love-In ... showered with all the Freedom and Democracy BULLSHIT which the progressively decadent use as a shield against their obvious duplicity in the position of "for everybody but those evil, pedophile Russians".

The irony of this mass-induced paradox of oxymoronic ideology cannot be more perplexing than anything ever before witnessed, as we scratch our heads in awe. Some of the deluded were supposed intelligent and sensitive people who should be able to think rationally when presented with a choice between reality and fantasy.

And sadly, while the idea of a mass-induced psychosis would be an apt enough explanation for the phenomena, Rocheforque finds it far less likely than the proliferation of sheer and utter ignorance, which is continuously well informed by baseless propaganda, designed to create a race of pompous and useful idiots.

Is it possible that people who eagerly call for the destruction of the Russian people and their "evil" leader have never once actually viewed and listened to a speech given by Vladimir Putin on topics that relate to US - Russia relations? Is it possible that they are completely unaware of the Wall Street-backed financial coup in the privatization and destruction of Russia in the 1990's ... led by the very same people who peddle the lunacy above? Can it be possible that they do not understand that their acquiescence empowered Summers and Soros and the Clintons and others in these, and similar Coups?

Can it be that they applaud the merciless, deadly bombings, drone strikes and chemical assaults upon women, children and whole communities which they blindly do not see in innocent factions that oppose their horrid masters, and which would cause them to spontaneously soil their undergarments if even a fraction of that terror was to come within a thousand miles of their doorsteps?

Can it be possible that they have never seen, read nor heard the truth about the Ukraine and Crimea? It seems so, and yet they take the side of their masters like beaten yet faithful dogs, so thankful for the ASS CRUMBS that fall to the floor. Like poorly fed hounds, they growl and bark at any opponent the master points a finger at. Do they recognize that said opponent is a deliberate distraction from the fact that they are indeed no more than a pack of wild dogs, being treated as such - which is the REAL issue at hand, not the enemy of their masters ...

It is disgusting to watch from the monitors in the library wing of Roacheforque manor. Even the best single malts from the cellars do little to appease the dis-calm.

There are some who take the position that while Trump is far from the ideal leader to correct the failing ways of a dying empire, there can certainly be a balance struck between truth and pure neocolonialist propaganda designed to enrage the debt-slaves of their one-world plantation, which rational thought and consideration can somehow temper.

But Roacheforque sees that this is not so. The perception of the herd cannot be balanced. Clearly they have gone mad, by design, and the designers now must face that outcome. They have created a world unlike any other, and they may well die in piles of shit within it, from the monster they have created.

Monday, February 6, 2017

Political Balance

There was a point made long ago about fiat currency, our modern digital and paper money: Fiat currency, being debt-based, represents a "claim in the system" vs. "payment in full". Needless to say, for a "claim in the system" to have value, it must be thought to have future value to complete a purchase (trading the currency for something one want's or needs). But if the currency cannot complete the trade, it's function is lost and thus, so is its value.

Today, years of "strong dollar policy" have created an epic imbalance of dollar denominated "claims in the system" which hundreds of trillions in fiat denominated derivatives (in part) attempt to keep in balance. This status quo position has afforded the United States an exorbitant privilege which extends beyond purely financial or economic advantage. As we have discussed before in these annals, the international usage demand of dollars has not only kept the dollar strong, but has allowed it enormous political influence around the world - and that political influence is a direct reflection of the political will of the dollar's issuing authority.

For those new to these writings (welcome) notice I have made the distinction between "issuing nation" and "issuing authority" because in our world of privately owned central banks, a nation's "political class" has less to do with monetary policy than in times past, and even less to do with the people which that political class was once presumed to serve. That said, global fascism still presumes some degree of partnership between government and corporation. But as government becomes more "privatized" (individuals serving their own self interests as opposed to serving the interests of their constituency) the distinction becomes blurred. So to avoid confusion I will continue to use the more commonly accepted terms like "Washington" or the "United States" or "US" or "America" (and their equivalents) when describing the various Corporatist issuing authorities going forward.

The distinction above is more of a premise than a point. The point here is balance, and the lesson learned is that without monetary balance there can be no political balance.Witness the continuing changes in our world's socio-economic / political landscape. Needless to say, these are anything but balanced.

Sovereign nations, acting in their own self interests, have begun the process of rebuking the political will of the United States, including its dollar-funded military and ideological operations in their countries. The best way to do this is to refuse to accept dollars for oil. Most of Washington's Middle East initiative and much of it's other foreign policy intervention has been a reaction to countries opposing the political will of dollar primacy. Just look at any nation refusing to sell its oil or natural gas (and a few other strategic items) in dollars. There you will find the list of past interventions. These interventions were designed primarily to preserve America's self interests and maintain it's prime currency advantage - most often under the guise of "spreading freedom and democracy" so as to preserve the public opinion illusion which mainstream propaganda sources were able to maintain.

But with "alternative" (a.k.a. "real") news sources, this strategy has faltered. Calling reality "fake news", while typically bold and arrogant, was not effective, domestically. Then abroad, we have nations greatly reducing their usage and storing of dollars - in large part, again, as a repudiation of U.S. political will being imposed on their economies, and (more importantly) upon their political class.

So ... the issuing authorities of the current system's flagship currency needed to respond. When one looks at recent events in this context, it becomes clearer as to how the "America First" policy was both contrived and then later perceived.

The world hired Trump to say, in effect that: "America no longer wishes to rule the world. We are back to minding our own business and cleaning up our own house. No more expansionism, we are focused on Making America Great Again!" But do not make the mistake of taking this implied policy statement at face value. At best, it is an effort to redirect, diffuse and reduce tensions already in place, which will in essence prolong the demise of "dollar usage value".

The system's appointment with the massive iceberg that lies dead ahead is an unstoppable and foregone conclusion. Trump's election represents a reaction to that appointment, in the way of "hard over" with engines in full reverse.
In today’s world, the claims that wait to be settled are so huge that the (role) that gold is currently playing while being under the influence of .. strong dollar policy prevents it from functioning to settle these claims. In other words, at strong dollar prices, there is not enough gold in the world to settle claims – claims continue to build.

At some point, the claims will overwhelm the economy. At some point, the world will realize that their claim doesn’t really mean anything. At that point, they will do whatever they can to redeem their claim .. In the absence of the strong dollar, gold can find its rightful "role" as functioning to settle the surplus claims in the system.
- Ender
At one time it was thought that the Euro could fulfill the role of a "politically neutral currency". But the Euro members are not enough to preserve neutrality. While their politics are indeed a "sideshow", the perception around the world is unbalanced. Still, it was a step in the right direction.

The SDR has a chance to present itself to the world as an international settlement currency that is politically and even monetarily neutral (i.e. relative exchange rate impacts are fairly factored into it's value). But in a world of irrational and imbalanced claims in the system and a gradually failing FX market, the SDR remains nothing more than a supranational claim in the system.

Real things owned, like land and fine art, represent title to "payment in full" in a civilized world. But you will not find much in the way of title to such things on the "balance" sheets of the world's central banks. Still you will find shares of operating companies and claims of many sorts on our modern CB balance sheets, there has been a great deal of growth in such claims upon the future.

There is only one asset they hold which represents "payment in full" in a universally accepted way. No other CB holding represents the capability or liquidity to settle or balance claims in the system. As the currencies begin their transition that asset must also change, as there is not enough of it at it's current "average world currency price" to settle dollar claims.

Even if every single ounce of it was sucked up out of private hands and transferred to CB balance sheets, the world's supply is far too little. It doesn't matter whether gold or claims upon the system are "repriced" - the action and outcome are one and the same - to achieve balance.

Tuesday, January 31, 2017

A Flower By Any Other Name

It's been a long while since I've read anything from JC Collins, but his recent post on the Hedge is definitely worth a read. Yes, I do think that the FED needs to be - and will be - eventually integrated into a multi-polar monetary role. The FED has acted as the global central bank under the dollar system for many decades, using the dollar (its product) as a global reserve asset.

It should come as no surprise, given events of at least the last decade or so, that this is a far from perfect arrangement. But we should understand that as the dollar system is a debt based system, the FED was doomed to fail eventually as debt grows exponentially toward the inevitable end of the system's timeline.

Then as we peruse Collin's post about the incremental return to gold backed currencies we see that he truly "gets it" though not in the strict "Freegold-speak" sense that has come to be understood among those "Evil, gold hoarding" acolytes of Another. As Collins refers to gold and "other domestic resources" as the sovereign backing for SDR allocation, he struggles a bit to define GDP as part of the composition. But in essence he is describing the transition from a "debt based" to an "equity based" system of the type that Eurasian infrastructure, monetary constructs, trade deals and monetary alignment (including China's inclusion in the SDR) have already begun to typify.

Just as present FX market valuation methodology includes sovereign variables in the calculation of relative strength, a similar valuation methodology validates SDR composition and value. It is the same, but different, and will overshadow FX internationally as all currencies become "more domesticated" and the SDR becomes the international accounting standard.

Again, the transition from a debt based to an equity based IMFS will weigh heavily upon gold as a measure of currency composition integrity when the currencies themselves, all backed by debt today (in essence all virtually backed by the dollar) transition.

It is hoped by the BIS system - and the bond holders of its primary dealers - that the IMF (in cooperation with newly forming peer institutions in the East) will be able to make this transition without WWIII and without a catastrophic derivative failure (i.e. the "bigger debt collapse than 2008" which everyone is predicting).

It is the hope of the families that all counter parties can see the inevitable superiority of a peaceful and somewhat uneventful transition, as gold has been flowing to where it needs to reside for some time now and we believe that most of it today rests in close enough ratios to optimal to at least begin moving in the direction of transition.

Yes, Trump is a part of this, at least the part that the little people can relate to and peaceably (we hope) absorb. The ultra-progressives will fume and rant but it is not thought that they will blow anything up before they can come to their senses, and the hard right fanatics will be placated by the perception of what is being sold to them as 'Make America Great Again". Trump will help America in this regard, though not exactly as his minions perceive, but they can be held in check nonetheless.

Change comes when the status quo becomes predictably untenable for the primary benefactors of the IMFS and many things do come into the consideration of "wealth protection and growth" that escape the eye of the commoner.

Clearly we had already arrived at this point, and the intent is clear. A return to Free markets is indeed the outcome that many will appreciate over a system where market values are controlled by a US Dollar-centric debt derivative pricing grid for interest rates, commodities, FX and equities. A controlled devaluation (a.k.a. currency inflation against the equity backed SDR and it's constituent "resources") is the only viable approach to this transition.

It can be said many ways. Freegold is just one of them.

Monday, January 30, 2017

Titanic Ideological Distractions (TIDs)

Having taken an objective look at mainstream (ABC) news yesterday, I came away with two TIDbits.

1) The ideology between the mainstream media and the Trump administration is genuinely divided.
2) "Religious vetting" needs to be looked at more carefully by ideological progressives.

To the first point, we know that "mainstream media" (as currently defined, media sources that reach the largest number of people, presumably having the greatest impact) is owned and controlled by powerful interests which are driving such things as political correctness, open borders, free trade, the Soros cartel of NGO's and the party line rhetoric of "spreading democracy" whenever regime change is in order.

The so called progressive ideology behind years of mainstream media propaganda is clearly at odds with the forces behind the growing populist movement. And this populist movement is powered by much more than a disorganized gaggle of middle class reactionary conservatives. There is power behind the movement of the sort that would never get behind the populist uprising against Wall Street, and without that power Trump would not have gotten elected, nor would his ("their") cabinet choices ever been appointed.

I do not know which power elites back Trump, or whether certain former progressive elites defected to a more conservative position, but the divide seems genuine. The left-leaning ABC even orchestrated a clearly scripted interview yesterday with House Rep. Seth Moulton, who is obviously reading his "response" from a teleprompter.

This is not just Moulton "reading his pre-interview notes", this is a presentation with two actors playing their parts. It may not be the first time a supposed live interview was scripted, but it does show the lengths at which the progressive camp will substitute news with theatrics. I do not believe we are witnessing "fake opposition for ratings" a la Jerry Springer. I believe we are witnessing real ideological opposition from increasingly "evenly matched" opponents. And that is noteworthy.

Since the topic of the Moulton presentation was Trump's "Muslim ban", let's move to the second point, which is the expected outrage against "religious freedom" in Trump's immigration order. I have seen many self-righteous progressives  respond negatively to Trump's assault on Muslims, so let us examine the religious freedom of Sharia law, as taken from the Muslim religion. Though I have written about this before, it bears repeating that Muslim states in 2013 rejected a UN ban on violence against women as violating Islamic law:
How can it continue to be maintained that Islam is peaceful and “good for women?” Not only does the Koran sanction discrimination and bigotry against women, as well as wife-beating, but Islamic or sharia law also includes the right to marry females of any age and to have sex with girls as young as nine years old. Women are considered worth one-half of men, if that, and female sexuality is viewed as so perilous that women in fundamentalist areas and families must wear oppressive clothing. Moreover, around 140 million women and girls worldwide have their genitals hacked off or otherwise mutilated, the bulk of which female genital mutilation is justified in the name of Islam.
I would hope that my female Facebook friends who consider Donald Trump an anti-Muslim misogynist will reconsider their position on religious vetting, considering that Sharia law is taken from the Quran. These are the same type of fundamentalists responsible for the Charlie Hebdo massacre, resulting from animations of Allah thought to be heretical - how's that for religious tolerance?

Yet these same ideologues rush to the conclusion that Vladimir Putin is now set to decriminalize domestic violence. I would be cautious to jump to any conclusions here until the actual  language of the law is reviewed. True, there will no doubt be some reaction to a world where one legally separated parent can list the other on a national abuse registry, for any reason, with the click of a mouse. But that reaction cannot be a slap across the cheek. Nor can it be the simple acceptance of a clearly unjust and unreasonable sentence of communal humiliation for life. There is an obvious middle ground. But no reasonable person should approve violence as an acceptable means of social conduct, including those practicing strict Sharia law at barbaric extremes (which no amount of "religious freedom" can justify).

It is always interesting to view and clarify the opposing rhetoric of social ideologies, and the measures their proponents will take to make their cases. But in the end, these are distractions which are meant to hold our attention long enough to consider buying Plavix or Lunesta.

You seldom hear real news via mainstream outlets, like the powers behind the Trump movement pivoting toward Russia to break their alignment with China. It would certainly sell a lot of Big Pharma product, but it's as "off limits" to both ideologies as the "Occupy Wall Street" movement.

These are our daily TIDbits, growing like weeds among the Flower of Understanding.