tag:blogger.com,1999:blog-3381985327954951465.comments2023-09-23T08:36:08.569-05:00The View From Our Whitehouse - Monetary System Reform WatchdogLarry Whitehttp://www.blogger.com/profile/02134971615760319862noreply@blogger.comBlogger387125tag:blogger.com,1999:blog-3381985327954951465.post-58561684094501704072021-07-17T17:52:38.546-05:002021-07-17T17:52:38.546-05:00Thank you for the comments!Thank you for the comments!Larry Whitehttps://www.blogger.com/profile/02134971615760319862noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-64760471727697770452021-07-17T13:48:42.063-05:002021-07-17T13:48:42.063-05:00Russell Napier: «We Are Entering a Time of Financi...Russell Napier: «We Are Entering a Time of Financial Repression»<br /><br />Market strategist Russell Napier talks about why he sees structurally rising inflation coming, why central banks are impotent – and what that means for investors.<br /><br />And central banks will have no say in the management of broad money growth?<br /><br />No, they won’t. This is exactly what happened after World War II. Central banks were impotent during that time. The supply of money was dictated by governments controlling the commercial banking system. I strongly believe that we’re going back to that system. The government can never tell you that, because the whole point of financial repression is to steal money from savers slowly. But this is a fantastic thing for politicians: It isn’t fiscal spending, it isn’t higher taxation, it’s a contingent liability on the government's balance sheet but not an actual liability. It creates politically directed growth, and it creates inflation. For politicians, it’s the magic money tree.<br /><br />And your case is that politicians won’t let it go again?<br /><br />Exactly. Let me give you an example: In the UK, usually the longest term fixed mortgage you could normally get was five years. Boris Johnson has now created a 25 year fixed mortgage for first-time buyers, offered by banks, guaranteed by the government. Nobody can pretend that this has anything to do with Covid, and in fact when Johnson announced it, his stated aim was to give young people access onto the housing ladder. This is a good example of how the magic money tree was discovered for Purpose A, i.e. Covid, and is being used for Purpose B, furthering social justice.<br /><br />Don’t you see a possibility that politicians will return to being fiscally responsible?<br /><br />Of course it’s possible that politicians, having discovered the easy route to re-election, decide not to use it. I’m betting against it. The introduction of the income tax in the UK was an emergency measure in 1798. It’s still in effect today. Many emergency measures, such as Regulation Q introduced by the US government to control deposit rates in the 1930s, lasted for decades.<br /><br />Seeing how Republicans in Congress are trying to block Joe Biden’s infrastructure plans: Perhaps there will be a push towards austerity again?<br /><br />The Republicans were in charge during most of Covid. They came up with the Payment Protection Programme, which was exactly using the banking system for this purpose. History shows that when Republicans are in power, they have endorsed fiscal largesse, price controls, credit controls. Just think of Richard Nixon. Of course it’s possible that some sort of rectitude descends on politicians. But I think it’s unlikely. Politicians will push credit for green investments. There will no doubt be other political problems for which more cheap bank credit is seen as the answer.<br /><br />The bond market today clearly does not reflect your inflation call. Why?<br /><br />https://themarket.ch/interview/russell-napier-we-are-entering-a-time-of-financial-repression-ld.4628tomhttps://www.blogger.com/profile/09886995566115512797noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-54862380964720627202020-12-22T07:58:52.944-06:002020-12-22T07:58:52.944-06:00Hi Larry, very good response. You just stepped up...Hi Larry, very good response. You just stepped up in my blog reading list. Thank you.johnbmachttps://www.blogger.com/profile/07927822587744319407noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-14463892652355150472020-12-22T07:53:36.373-06:002020-12-22T07:53:36.373-06:00Thanks for your comment! I am aware of the ongoing...Thanks for your comment! I am aware of the ongoing efforts to keep President Trump in office. If the next few weeks produce that result, I will report on that although I don't think it would impact our present monetary system any time soon. I would just expect things to continue as they have under President Trump. He has not indicated any desire to alter the present US dollar based system, at least so far. But I try to keep an open mind to all possibilities.Larry Whitehttps://www.blogger.com/profile/02134971615760319862noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-14213470549295133112020-12-22T07:39:47.559-06:002020-12-22T07:39:47.559-06:00Hi Larry, I really enjoy your blog. I really thi...Hi Larry, I really enjoy your blog. I really think you can glean more from independent writers that have no set agenda than any mainstream government/wallstreet mouthpiece. I'm just a little surprised you have followed them down the path towards a Biden Presidency. I'm pretty sure that will never happen. We're in for a very interesting few weeks that nobody alive has ever seen anything like it.johnbmachttps://www.blogger.com/profile/07927822587744319407noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-87671240889096925122020-09-19T14:12:41.745-05:002020-09-19T14:12:41.745-05:00Wealth inequality explained here. Banks vs Sheeple...Wealth inequality explained here. Banks vs Sheeples. <br />Wall St. is the big Banks that got Glass Steagel killed so they could do these pumps and dumps on the IPO's without any SEC supervision, and FED money.. <br /><br />https://www.zerohedge.com/markets/brilliant-brain-dead-risk-timing-manic-markets<br />Anonymoushttps://www.blogger.com/profile/00149534750945021214noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-15200385714830417272020-09-19T12:38:27.701-05:002020-09-19T12:38:27.701-05:00Thank you for your thoughts. Regarding your commen...Thank you for your thoughts. Regarding your comment on the Fed contributing to wealth inequality, I raised that same question in this recent blog article:<br /><br />https://lonestarwhitehouse.blogspot.com/2020/08/is-us-currently-conducting-mmt-lite.html<br /><br />Larry Whitehttps://www.blogger.com/profile/02134971615760319862noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-38757450268194679482020-09-19T12:31:53.562-05:002020-09-19T12:31:53.562-05:00We Americans need to severely limit the activities...We Americans need to severely limit the activities of the U.S. Federal Reserve. Next to plague and famine and war, no single entity has done more to undermine the health of the U.S. economy and the financial system of same. Note how the current academic Wizard, Powell, has only ventured into the corporate bond market in 2020 through his legally questionable buying vehicles through Blackstone VERY MODEST AMOUNTS OF COMPROMISED BONDS. It has been smoke and mirrors as in the story of the Wizard of Oz. But what the Fed has done in manipulating interest rates and the financial markets since 1987 has done nothing to benefit the average American trying to make ends meet with flat to declining personal incomes after taxes. Wealth inequality?! Take a bow, all Fed Governors since and including Greenspan. Abolish the Fed and start over.SageOwexfordhttps://www.blogger.com/profile/09978722834585137419noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-67583508981208394482020-09-19T08:49:41.085-05:002020-09-19T08:49:41.085-05:00Thanks for the comment. It is great when comments ...Thanks for the comment. It is great when comments include links that people can search to explore for more information. Always appreciate that. Since the comments section does not create "live" links, I will paste the three links in the comments above below into separate lines so people can more easily copy and paste them to look at them:<br /><br />https://jessescrossroadscafe.blogspot.com/2010/03/browns-bottom-is-enormous-issue-in-uk.html<br /><br />http://www.321gold.com/editorials/guest/nagasundaram091020.pdf<br /><br />https://www.voimagold.com/insight/how-the-fed-controlled-the-price-of-gold-from-1982-until-1995<br /><br /><br />Larry Whitehttps://www.blogger.com/profile/02134971615760319862noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-17674019969067740392020-09-19T08:14:57.542-05:002020-09-19T08:14:57.542-05:00Greenspan's views! BEFORE he had to change the...Greenspan's views! BEFORE he had to change them to pick up his pay check as head of the money printing machine, along with a couple of fresh articles.<br /><br />REMEMBER India is where, "Gold IS a store of value & currency, and used daily, is still in the hands of the people", as the Banksters have not been able to demonetize it, confiscate it, or diminish it, as the people KNOW better. Here in the USA the only one that got it decades ago was Kyle Bass, who had the Texas gold vault depository built. Canada's well known smart guy is Eric Sprott! Now late comers that have famously come to see the light, Warren Buffett bought a large chunk of Barrick stock.<br />http://www.321gold.com/editorials/guest/nagasundaram091020.pdf<br />---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------<br />Federal Reserve vs Gold price. For those youngsters that are not aware of history.<br />Human nature. Wall street sell side PROPAGANDA, "managing expectations', seen every day, <br />"they beat or did not beat "estimates", which are massaged and managed by all the corporate CFO, CEO's. <br />https://www.voimagold.com/insight/how-the-fed-controlled-the-price-of-gold-from-1982-until-1995 <br /><br />Believe I am an idiot, so the THREE, B. of A. analysts going public with $3,000 price are also morons. <br /><br />For the benefit of all, here are Greenspan's famous quotes on Gold before he had to convert to be the head money printer. Imagine Bernanke, Yellen or Jay Powell saying this today!!<br />1. “The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. <br />2. Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.”<br />3. “Gold still represents the ultimate form of payment in the world. Fiat money in extremis is accepted by nobody. Gold is always accepted.”“Deficit spending is simply a scheme for the 'hidden' confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.”<br />4. “An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense... that gold and economic freedom are inseparable.”<br />Anonymoushttps://www.blogger.com/profile/00149534750945021214noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-68502388613827487402020-09-19T00:50:30.857-05:002020-09-19T00:50:30.857-05:00AIG and Rothschild as far as I remember.
They resi...AIG and Rothschild as far as I remember.<br />They resigned from the LBMA in 2004 which must have been the quid pro quo.Desormaishttps://www.blogger.com/profile/10065584021394728770noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-55233361585710967382020-09-17T06:54:18.402-05:002020-09-17T06:54:18.402-05:00Thanks for the comment and the link adding more in...Thanks for the comment and the link adding more information related to the UK gold sale. Always appreciate contributions like this from readers.Larry Whitehttps://www.blogger.com/profile/02134971615760319862noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-27331971758627127212020-09-17T00:45:20.171-05:002020-09-17T00:45:20.171-05:00"We looked into the abyss if the gold price r..."We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K."<br />https://jessescrossroadscafe.blogspot.com/2010/03/browns-bottom-is-enormous-issue-in-uk.html<br />Desormaishttps://www.blogger.com/profile/10065584021394728770noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-16984177874271515992020-08-27T08:12:45.339-05:002020-08-27T08:12:45.339-05:00Thank you for your comment. When you say "CBD...Thank you for your comment. When you say "CBDC introduction", I am assuming your are talking about the launch of a multi year study of CBDC's the Fed announced such as described in this recent Forbes article? <br /><br />https://www.forbes.com/sites/jasonbrett/2020/08/13/federal-reserve-reveals-research-plans-for-digital-dollar/#3614f6185946<br /><br />As I understand this news, it just means they will be studying the issue for some time with no decision made yet on how to deploy a CBDC in the US or even if they will deploy one. If you have a link to something that indicates there are plans to launch an actual CBDC in the US in January 2021, please send us the link so I can alert readers to it here. I have not seen anything from the Fed indicating that so far. Larry Whitehttps://www.blogger.com/profile/02134971615760319862noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-85099829050486772592020-08-27T07:34:35.273-05:002020-08-27T07:34:35.273-05:00CBDC introduction for USA is set to 1-1-2021. I ca...CBDC introduction for USA is set to 1-1-2021. I can't imagine Europe will be left behind for a day. So, not much time left for many of us to prepare!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-18961274458090032602020-08-13T05:20:58.619-05:002020-08-13T05:20:58.619-05:00Endless money printing endless warsEndless money printing endless warsJameshttps://www.blogger.com/profile/09780601128896000573noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-33361568793814552792020-08-13T00:01:10.764-05:002020-08-13T00:01:10.764-05:00Super article, thanks for sharing useful informati...<br />Super article, thanks for sharing useful information… <br /><br /><a href="https://admin.finnotes.org/publications/the-motley-fool-s-rule-breakers-rule-makers" rel="nofollow">the motley fool's rule breakers</a><br />Jim Finnoteshttps://www.blogger.com/profile/08527560636383238487noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-9400502284152654722020-08-01T09:58:49.054-05:002020-08-01T09:58:49.054-05:00She's a smart girlShe's a smart girlDoug Thompsonhttps://www.blogger.com/profile/17400186026920563087noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-60363561013443637432020-06-20T14:10:01.066-05:002020-06-20T14:10:01.066-05:00Interesting. ThanksInteresting. ThanksDoug Thompsonhttps://www.blogger.com/profile/17400186026920563087noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-32086585804079355952020-06-06T12:57:46.345-05:002020-06-06T12:57:46.345-05:00Go back to debt-free money. Inflation can also be ...Go back to debt-free money. Inflation can also be controlled by "retiring" currency issued for expenditures like building bridges and other big infrastructure projects. When the build is complete, the bills that went into circulation to finance the construction are "retired" by the bank and withdrawn from the money supply. Most tax is to pay national/state/local debts off, with debt-free money there would be no such debts and all that tax is avoided. Less money is created over all, but it is more fluid and well-distributed in the economy.Stephanhttps://www.blogger.com/profile/04707653275989610474noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-4148833717145346052020-06-01T17:39:21.601-05:002020-06-01T17:39:21.601-05:00Thank you for your comments. No doubt that the sta...Thank you for your comments. No doubt that the stability of the US dollar is under stress and more people seem to be realizing the threat. Ray Dalio just released articles on it which I just featured on the blog.<br />Larry Whitehttps://www.blogger.com/profile/02134971615760319862noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-83125470076280220822020-06-01T17:33:31.843-05:002020-06-01T17:33:31.843-05:00Great mathematical exercise, but the gist of the m...Great mathematical exercise, but the gist of the matter is that our standard of living is headed much lower with all of this Fed printed money coming into the global market, collapsing the Dollar sooner than later, and a hyper-inflationary Depression, the Greatest of All Time, landing on our doorstep making a loaf of bread require a wheelbarrow of rotting, stinking, sinking Greenbacks a la Wiemar Germany after WWI. Case Closed.SageOwexfordhttps://www.blogger.com/profile/09978722834585137419noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-59193622944574549402020-04-23T04:41:35.653-05:002020-04-23T04:41:35.653-05:00Unbelievable Blog! I should need to thank for the ...Unbelievable Blog! I should need to thank for the undertakings you have made in creating this post. I am believing a comparable best work from you later on moreover. I expected to thank you for this destinations! Thankful for sharing. Amazing destinations!Excellent and nice post. It will beneficial for everyone. Thanks for sharing such a wonderful post.It is extremely helpful for me.<br /><a href="https://www.themoviefashion.com/" rel="nofollow">themoviefashion</a>Kaylee Brysonhttps://www.blogger.com/profile/00733172042576345385noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-39763067228413322762020-04-21T21:46:02.619-05:002020-04-21T21:46:02.619-05:00As much as anyone thinks they have prepared for th...As much as anyone thinks they have prepared for the worst case scenario, no one can be fully prepared. As you have seen this week, people are protesting stay at home orders after just 3-4 weeks. There is always some supply you haven't planned to have enough of, whether that is cash, gold, toilet paper, masks, gasoline, disinfectant, ammo, or something else we haven't thought of for the next crisis. Doug Thompsonhttps://www.blogger.com/profile/17400186026920563087noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-85356879979579454362020-04-15T15:19:16.889-05:002020-04-15T15:19:16.889-05:00IMF reports that world will see its greatest econo...IMF reports that world will see its greatest economic downturn since great depression, over 3%. 2008 recession was only 0.1%.<br /><br />We have a long way to go before anyone can predict whether the IMF will gain more control or not. My guess is they will.Doug Thompsonhttps://www.blogger.com/profile/17400186026920563087noreply@blogger.com