Your Home or Office Drone Proof?
As commentator Charles Hugh Smith points out (above, left) how do you
know if the drone approaching your property is carrying an Amazon
package or a bomb? Black Swan
$1,200 will buy a commercial grade drone capable of
carrying six pounds of freight, including explosives which can be
detonated at will by the operator of at he control transmitter.
The recent destruction of a key Saudi Arabian oil processing facility
is surely sparking the imagination of would-be mayhem makers all over
the globe. Surely the gun control advocates will add "drone
control" to their list of targets. (?)
Incidentally, the present furor over teenage VAPING comes
to mind. The objective of the vaping promoters was to create a
"safe" device that would deliver a dose of nicotine into the human
lungs without the damaging effect of smoke from burning tobacco.
It caught on - but lately is getting bad press because of reports
of some adverse medical effects. Now reports are trickling in
that many young people are switching from vaping to.......(wait for the
drum roll)....TOBACCO CIGARETTES!
Sir Thomas Gresham is credited with
creating the maxim "BAD MONEY
DRIVES OUT GOOD."
However, he didn't state it in bumper-sticker
shorthand. He laid out his thesis in the more ornate language of the
day: "When depreciated, mutilated, or
debased coinage (or currency) in
concurrent circulation with money of high value in terms of precious
metals, the good money automatically disappears." ~Sir Thos. Gresham (1519-79)
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of the U.S. witnessed a clear illustration of Gresham's Law in 1965
the mint made dimes, quarters, halves of nickel coated copper.
"Cupro-nickel" they called it and President Johnson took to the airways
to assure us that the new coins would circulate side by side with the
old 90 percent silver coins at exactly the same face vale.
Many Americans knew that was not true
and swept the silver coins from circulation as fast as they could
afford. A man in Sumter, SC ran a classified ad stating "Will pay
7 percent over spot value for pre-1965 silver coins."
Before 1965 circulating silver
coins had all but vanished from general circulation. It was
Gresham's law in action.
The bad money (the new copper-nickel tokens) chasing out the good money
(the common coins containing 90 percent pure silver).
Multiple red flags have been flying lately
indicating we may celebrate the 90th anniversary of the Great
Crash of October,1929, by seeing the economy shudder to a
slowdown sooner than later. We and the Missus have endured 11
recessions since we
married and have been battening the hatches for #12.
It’s not just government debt that's slowing the economy. In the
short run borrowing and spending from government keeps a depressionary
correction from settling in . And ousehold
debt is also at a record level. As Peter Schiff says,
“We’re not richer because of economic growth.” Mac
Slavo Reviews Schiff
The world is about whether or not the world is heading for
a recessionary period. Some say "the big one" - a fullblown
depression - awaits us. Many lean toward a recession of the
2008-9 variety heading this way. Ever the optimists President
Trump and his allies say the economy is performing swimmingly, knowing
that any talk of a slump prior to the 2020 election will not boost his
measure the economy in terms of dollars, how's it doing?
the dollar is not a reliable measuring tool. It has fallen
sharply in terms of the amount of precious metals it will buy. An
ounce of pure silver costs $18.58 today - far more costly than it was
only a few weeks ago. If it reaches $20.00 experts
say it could bounce much higher.
In terms of
gold the weakness of the dollar is even greater. One dollar today
is worth only 1,534th of a troy ounce. In days of yore, such as
just prior to the great stock market crash of 1929, one dollar would
buy 1/20th of a troy ounce of gold. (The official Mint price was
$20.67 until raised by the Roosevelt administration to $35.00 in 1934.)
euro the dollar is stronger.
A euro can be bought for a fraction
under $1.10! In the recent past it has taken as much as $1.14 to
buy one euro.
commentators speak of the "stronger dollar" it depends on how it is
measured. At the moment the U.S. dollar is quite strong
against other fiat currencies, but quite weak in the knees when
measured against precious metals. There is no possibility that
creating more dollars from thin air can improve its purchasing power
over precious metals, although its parity may waffle considerably when
measured against other fiat currencies.
Preserving one's wealth, consequently,
is a challenge.
data indicate that wealthier Americans have cut back
on their consumerism and spending,
which could be a signal that a recession is right around the
corner. A popular theory is the economy can't keep
forward unless consumers support it by spending more money on things
they may not need. Since consumers are said to provide 70 percent
of the Gross Domestic Product, we are all caught between a rock and a
hard place. Putting the brakes on spending in order to trim our
heavy debt loads becomes downright unpatriotic. On the other
hand, if we all - rich and poor - cut back on spending we could
cause the economy to lapse into a recessionary tailspin.
What to do?
Ninety years ago Wall
Street was flashing
signs of trouble. Everybody had piled into the stock market "on
margin" and were certain they'd soon be rolling in wealth. One
could buy stocks with just a little down and the hope their shares
would rise to the rafters in value and they could sell at a handsome
profit. Bootblacks and taxi drivers were swapping stock tips in
the street. It was a heady time, but the Roaring Twenties were
about to come to a screeching halt in late October, 1929.
Next month marks
the 90th anniversary of the
great Wall Street crash. History may not repeat itself, of
course, and the present financial system is now different than it was
in 1929. But there's an eerie feeling of apprehension afoot in
the global economy and much uncertainty about where it's leading.
caution flag is certainly
waving and the alleged cutback in consumer spending by the well-to-do
may be a cue for the rest of us to rein in our outlays. The
old adage "Live within your means" will cushion economic
Democratic promises of the 1932
campaign were not kept.
honest look at the Democrat political campaign of 1932 clearly shows
Democrats may have deliberately misled the voters. Here are the
first three planks of the
Democratic Party platform of 1932:
immediate and drastic reduction of governmental expenditures by
abolishing useless commissions and offices, consolidating departments
and bureaus and eliminating extravgance, to accomplish a saving of not
less than 25 percent of the cost of Federal government.
Maintenance of the national credit by a Federal budget annually
sound currency to be maintained at all hazards."
Upon taking office in 1933 President
Roosevelt threw the campaign promises overboard and steered the Ship of
State sharply to the political left. To this day there is a general
impression that the New Deal was the best thing that ever happened to
the USA. Whereas the people were once responsible for the government
under which they lived we saw the government assume responsibility for
the people. The world's largest welfare state was born.
is no dumbell when it comes to understanding the whims of people with
President Trump has caught a whiff of economic recession in the
air and is tweeting his head off about it, assuring everyone within
earshot that the present economy is in pretty good shape, thank you,
and privately hoping that a recession will not hit until after the
November, 2020, elections.
He understands perfectly well that consumer activity accounts for about
70 perent of the Gross Domestic Product (GDP) and that consumer
willingness to take on debt accounts for large measure of the
Michael Lebowitz and Jack Scott have tried to untangle general
understanding of the signals that portend recessions, but the general
public is most likely to take its cue from the daily media
"We can follow all the economic data and trends diligently, but consumption accounts for over 70% of U.S.
economic growth. Therefore, recessions ultimately tend to be the
effect of changes in consumer behavior.
If the narrative du jour is enough to trouble even a small percentage
of consumers, the likelihood of a recession increases. The
evidence of such a change will eventually turn up in sentiment surveys,
and when it does, the problem has already taken root. This is not a
dire warning of recession but rather offers consideration of a
legitimate second-order effect that potentially threatens this
record-long economic expansion.
"While the media focuses on the inversion narrative, alerting the
public to recession warnings and driving consumers to re-think their
planned purchases, we care more about when the yield curve will
steepen. The steepening curve caused by aggressive Fed action
after a curve inversion is the tried and true recession warning.
For more, please read Yesterday’s
Perfect Recession Warning May Be Failing
& Jack Scott
Bottom line: The more talk you hear of lowering interest
rates, cutting payroll taxes, capital gains taxes, the more sure you
can be political leaders are trying to keep recession at
bay. They understand perfectly that when consumers feel more
dollars will come into their pockets the more willing they will be to
spend it. It's when they sense that money is in short supply they
tend to lay out less of it. When that happens the recession bells