“In reality, there is no such thing as an inflation of prices, relative to gold. There is such a thing as a depreciated paper currency.”

— Lysander Spooner




August 29th, 201

Now, some experts are calling for the elimination of CASH. Like gold, it's a "barbarous relic."  

   "A Financial Times editorial calls on authorities to consider phasing out the use of cash — by everyone, not just governments. This is what it has come down to. The government has run down the value of the dollar to less than 2% of what it was worth when our parents were born. Now it is itching to ban the use of banknotes and gets an endorsement from, of all broadsheets, the 'world business newspaper.' The FT refers to the banknotes as another ‘barbarous relic,’ which, it says, is the 'moniker Keynes gave to gold.'     BARBAROUS RELIC    

      Sorting through the excitement of the recent stock market correction brings commentaries from everywhere.  This one, from Professor Martin Feldstein, caught our eye.  'THE EQUITY-MARKET DOWNTURN IS THE INEVITABLE RESULT OF THE CENTRAL BANK'S POLICIES.  THE UNWINDING WILL LIKELY CONTINUE FOR MONTHS."

    Chris Martenson helps us make sense of the market plunge from another angle:  "Most of the gains in financial assets engineered by the central banks were false and destined to burst because they were based on bubble psychology, not actual returns.

           "Which bubbles you ask?  There are almost too many to track. But here are the main ones:

  • Corporate bond bubble
  • Corporate earnings bubble
  • Junk bond bubble
  • Sovereign debt bubble
  • Equity bubbles in various markets (US, China) and sectors (Tech, Biotech, Energy)
  • Real estate bubbles, especially in the commodity exporting countries
  • Central bank credibility bubble (perhaps the largest and most dangerous of them all)

        "What’s the one thing that binds all of these bubbles together?  Central bank money printing.

In contrast, here's a dumb remark from a famous left-wing economist:
"There’s a reasonable argument to be made that part of what ails the world economy right now is that governments aren’t deep enough in debt."

   Dr. Paul Krugman, a famous left-wing economist,  threw caution to the winds and came out for more government debt as a solution to the lethargic world economy.  

   Well, if it wasn't caution he threw into the wind it was certainly common sense.  It smacks of the loan shark saying "Hey there, friend!  In debt over your head?  At your wit's end? Here's a solution to your problem.  Take out another loan! "  

   Perhaps being a Nobel Laureate provides Dr. Krugman with insight we earth-bound beings can't fathom.  But the historical record is very clear on the danger of excessive debt - be it personal, business, or government.  

   David Stockman slices Krugman's dangerous recommendations to ribbons.  We recommend you download it for future reference, because he has loaded his response with useful hard numbers and plenty of helpful graphs.  Deifying the Public Debt

   And if you've been puzzling over the route the Fed's money took into the pockets of Wall Street's high rollers,,Stockman explains: 

   "In fact, the real point about the government debt market in today’s central bank rigged financial system is that it has become a venue for state sponsored thievery. That is to say, when the Fed pegs the front end of the curve at zero for 80 months running and then pours $3.5 trillion of fiat purchasing power into buying the rest of the treasury curve, including mortgage-backed agency securities, in order to boost bond prices and lower yields, it is creating a  virtually risk free arbitrage for Wall Street gamblers. And that serves no public purpose whatsoever, except to transfer massive windfall profits to the most adept gamblers among the 1%."

  Now, ask yourself:  "How the hell has the Fed's currency creation program done anything for the middle class?"

Exactly WHAT is a "dollar"?  

   "If one take a Federal Reserve note into the Treasury and asks for it to be redeemed, one will receive another Federal Reserve note or metal slugs denominated in dollars or parts thereof."       ~Seth Lipsky  
   Mr. Lipsky wrote that in a New York Sun editorial October 3,2013.  He was making the point that the Federal Reserve note is not a dollar.  It never was.  The note, by definition an IOU, was redeemable in lawful money until late 1963.  It could be redeemed at will in the real stuff.  A silver dollar, or four silver quarter dollars, or a couple of half-dollars...as one wished.  It's still evidence of debt and is still "legal tender" but can't be redeemed for money.  It trades only for  other such debt instruments or for goods and services. 

   How the American dollar sank into such disrepute is, we think, a fascinating story and worth some attention...particularly by the herd of candidate vying for nominations to the office of U.S. President.  Can any of the would-be office holders even DEFINE the noun "dollar"?   

“The whole world sucks, and everybody thinks it’s gravity.”
Fred Reed finds literature on a men's room wall.

   "Art is mostly fraud perpetrated by narcissistic academic quacks on a public easily gulled. They should be prosecuted. This is as true of literature as of painting and sculpture. If modern sculpture were placed in a junkyard, art critics couldn’t find it. Most of what we are told are great works are great works only because we are told that they are."  The Nonexistence of Art < "One person's treasure is another person's trash." 

       The master of curmudgeonry, Fred Reed, takes a look and sees a lot of overpriced trash.  We have no objection to folks of artistic bent creating whatever kind of "art" they wish - but it galls us to see our taxes pay for it.   

   Mr. Reed's complaint about art is chiefly aimed at art critics whose praise of an abstract splash of paint can make it absurdly expensive.  However, we admit to being out of step with things when it comes to "art appreciation."

   We're not fond of rackety rock 'n roll overridden with drum beating and squealing guitars, either.  The tunelessness of it may account for the fact one rarely hears anyone in the street whislting the popular songs of the day.  There's no discernable melody!

   Another artistic endeavor we dislike is the writing of artistic prose and calling it "poetry."  When read aloud, even by the author in appropriate solemn tones, today's poetry sounds for all the world like prose.  It may be "poetical" but it's mislabeled.  A well structured limerick is harder to write. 

Gold money has lasting power!  

   REUTERS REPORTS that Florida treasure hunters found a trove of $4.5 million worth of Spanish gold coins 300 years to the day after a fleet of ships sunk in a hurricane while en route from Havana to Spain, the salvage owner said on Wednesday.

   The 350 coins found on July 30 include nine rare pieces, known as royal eight escudos, which were being transported to the King of Spain, according to Brent Brisben. His company, 1715 Fleet - Queens Jewels, owns the rights to the wreckage.

    Only 20 such coins were known to exist prior to the recovery of the nine royals, Brisben said.

     "The gold looks like it fell into the water yesterday," said William Bartlett, 51, the diver who spotted the haul. Gold Find

     Gold has served as a store of wealth for several thousand years.   One of the reasons it does the job so well is that it doesn't deteriorate after exposure to the elements, including the salt water.  As the diver who found this trove say, "The gold looks like it fell into the water yesterday."   


"Bitcoin to the rescue in Greece."
Greece gets a euro bailout now and perhaps some bitcoin ATMs in October.

   ITEM: BTCGreece, which bills itself as the country's first bitcoin exchange, plans to eventually install 1,000 ATMs nationwide, in partnership with European bitcoin platform, Cubits.


Immigration: Sifting through the confusion.

   Pat Buchanan, prompted by Donald Trump's opinion on the matter, examines the contentious immigration issue. 

   "Germany, which took in 174,000 asylum seekers last year, is on schedule to take in 500,000 this year. Yet Germany is smaller than Montana.

    "How long can a geographically limited and crowded German nation, already experiencing ugly racial conflict, take in half a million Third World people every year without tearing itself apart and changing the character of the nation forever?

    "Do we think the riots and racial wars will stop if more come?"  The Issue of the Century.

    But the U.S. is so huge, compared to Germany.  Buchanan contends, however, that we-the-people have the right to choose how large the population of immigrants becomes and how rapidly we adopt them.  

This rhyme was posted here several months ago.
Nothing much has changed.
  Opinions from the left - opinions from the right. 
Mix them all together to create an awesome plight.
Is compromise the answer? Do cool heads still prevail?
NO. The texting masses just prefer to rant and rail.

ISIS is a threat - our economy drives us nuts.
And don't forget the possibility of sev'ral budget cuts.
Obama can't do anything. He's acting quite absurd.
Once again the world is hanging on Janet Yellen's every word. 

She cannot admit it. She mustn't say a thing.
But Quantitative Easing was like pushing on a string. 
She wants inflation higher. It will "make things come alive."
But the Fed is strangely failing no matter how they strive. 

We'd like to see sound money return to save the day
With long forgotten lessons returning into play. 
It's contrary to the experts. They tell us "take on debt!"
But the truth is just the opposite. Stay solvent and you're set.

Pay no attention to the windbags when they rise to speak.
No debt and some savings is what we all should seek.
Eliminate the confusion. Let reality break through.
Let's restore the Constitution. It's up to me and you.   ~JW

Centennial Monetary Commission Act

The Centennial Monetary Commission Act (CMCA) (H.R. 1176) would “establish a commission to examine the United States monetary policy, evaluate alternative monetary regimes, and recommend a course for monetary policy going forward.” This bill, originally introduced by Representative Kevin Brady (R–TX), and a companion bill introduced by Senator John Cornyn (R–TX), would provide a much needed public forum for experts to evaluate the Fed’s overall performance and mission. The commission’s recommendations would not bind Congress to make any particular changes, but it would provide Members of Congress with information they need to fulfil their constitutional responsibilities for monetary policy.   Centennial 

< It's unlikely anybody will pay attention to this obscure proposal, particularly now in the gossipy political atmosphere Americans seem to prefer.  The entertainment media know this and are bending over backwards to provide plenty.  

    Candidates don't want to talk about anything as mundane as Congressional responsibility for the substance and manufacture of money, and citizens complain they can't get their hands on enough of it but have no interest in discovering why the monies of the world buy less and less.  

    All the Centennial Monetary Commission Act does, basically, is create an official committee to look into the matter and provide Congress with detailed information with which to make decisions to make repairs to our struggling curreny system.