The Origin of Contagions lies in the Common Reserve Currency


The question of money supply and inflation has been erroneously been set in stone predominantly by the debasement of Spain and Britain during the period of Henry VIII. This was really a period where there were various countries and their currency completely relied on the exchange market in Amsterdam, which was based entirely upon their metal content. This period was far less judgmental insofar as we have today where currencies rise and fall purely on anticipation of political events. During the middle ages, this influence of anticipating future value based upon possible political decisions was not readily dominant and the coins of one nation were compared entirely on their metal content.

For example, because of the French at war with Britain, they created a wave of inflation that spread like a contagion to other nations, namely Spain and Italy, because money was commodity based using gold and silver. In this way, there was really a single currency base among nations and the problems of one would be exported to all others by their debasement.

 

We can see that wages more than doubled even in Spain as inflation became a contagion. To cover the cost of war, France began debasing their gold and silver coinage. There was clearly economic pressure for in 1305, the French Crown issued a restored monetary system. The gros now appears at 12d fine and the denier are also returned to a sound MONEY standard. These were now worth 300% greater than the debased coinage in circulation. The gros was now worth 10.5 deniers for with the end of the war, precious metals fell in value for a marc of silver collapsed back to 56s 8dt. Despite the end of the war, gold demand remained strong in all countries. By 1311, the coinage once again was debased as precious metals rose in value. A new gold coin was issued known as the angel d’or that was valued at 20 st. The silver to gold ration now jumped to 15:1. Silver begins to disappear being hoarded and gold becomes more commonly struck in France and England. Yet the volatility seems to have been incredible for the times. Gold prices crashed in value and the agnel d’or dropped from 20st to 15st. Silver collapsed falling 25% in value at this time, yet the silver to gold ratio remained at 15:1.

Silver began a three-year rally reaching a ratio of 12:1 in 1316. This rally coincided with the death of Philip IV, but his successor, Louis X (1314-1316), appears to have struck no silver gros whatsoever. The only coins struck in his name are the gold angel. The coinage reflects a surge in inflation as reflected in wages going into 1329. We see bullion prices rising again starting in 1322 whereby in October that year, there appears to be a significant debasement whereby the fineness collapses to about 47%. The debasement continued in 1323 and again into 1326.

The Capetian dynasty dies with the three sons of Philip IV, none of whom had produced a male heir and thereby the line passed to the Valois Dynasty. We come now to a Monetary Reform of 1330, with a major effort to restore sound MONEY once again. They did learn that one could not simply return the MONEY supply to a sound footing overnight. They tried to phase it in more gradually, for it has the tendency to lead to the new MONEY merely being hoarded. Nevertheless, this monetary reform under the new Valois Dynasty was short-lived, for, in 1337, there was the start of the Hundred Years War with England and the invasion of Edward III (1327-1377).

Their accounting books of Peruzzi Company, one the main Florence bankers, covering the period of 1335 to 1343 have survived to provide us with the detailed footnotes to the history of this period. For by 1330, the Peruzzi Company was the second largest banking house in Europe, just behind the Bardi, with 15 branches covering the Middle East all the way up to London. They were not just a super-rich merchant-banking firm they were one of the earliest truly international companies to emerge. Their capitalization stood at 100,000 gold florin in 1330 and they had a staff of about 100 people. The Peruzzi had made a fortune on taking English wool and turning it into fine cloth in Bruges, and selling luxury products to Avignon, London, Paris, and Naples to mention a few. They also dealt in spices, silk, drugs, and other luxury items from the East. They emerged as a great wholesaler supplying credit to the lesser merchants and creating a vast sales network. They became dealers in large quantities of commodities that even included grain from Italy. Yet with the defaults of Edward III, the Peruzzi collapsed in 1343 and were driven into bankruptcy by 1345.

Because of the French/English war, the French drove the price of silver up dramatically. In Florence, they utilized a two-tier monetary system with silver used as the domestic coinage for wages and gold for international transaction much as Bretton Woods after Roosevelt’s confiscation of gold in 1934 domestically. Because of the French debasement, the price of silver rose and this disrupted the economy in Florence. Companies could no longer pay wages in silver and businesses failed. As unemployment rose, the people, not understanding the real cause, stormed the palaces of the banks and burned them to the ground. The bankers were blamed for the action of kings.

Therefore, the precious metal monetary system was by NO MEANS a good stable system where money was tangible. It also allowed for contagions that people did not understand. If we are going to create a new monetary system, the “reserve” currency cannot be one of any single nation. It must be a basket at best for this is the ONLY way to prevent contagions. Currently, with the dollar as the reserve currency, because we still use Demand Economics, then the raising or lowering of interest rates sets in motions contagions that will either export inflation or deflation to other countries. We need to understand how contagions take place and their origin.

Russian Summit Lining Up with ECM


QUESTION:

Hello Martin,

Hope this finds you well.

Long time follower of your site. Though I don’t always agree with your conclusions, I value your site as a great source of ideas that challenge my conceptions of how things work. Keep up the good work.

Having just read the story on the front page of the NY times about the upcoming Trump-Putin summit, I was curious as to wether you think there is any connection between the just confirmed summit on July 16 and the July 12th ECM turning point.

I know that a few of the previous turning points coincided with key events in Russia’s intervention in the Syrian Civil war. I remember you stating on your blog at the time that the alignment of key events in that conflict with the ECM suggested an important connection. Given events on the ground in Syria currently pointing to a conclusion in that conflict (with Russia, Iran and Syrian as the victors and the USA, KSA and Israel as losers), I wonder if you would care to speculate what July 12 ECM might bring with regards to that conflict.

Best regards,

JM

REPLY: This turning point is not the big one insofar as politics is concerned. However, events seem to gravitate around these points in time. This is war is building, but it is not really between Trump and Putin personally. The bureaucracy in the USA seems to want war. Perhaps as a diversion for economic problems with social programs. But the greater risk is a religious war between Iran and Saudi Arabia and we are seeing a rise in Shiites in Iraq. Taking Saddam Hussein out was really stupid. Both he and Qaddafi helped to keep the religious factions in check. With both gone, this is building into a religious confrontation. You even have the leadership in Turkey that is desperate to reestablish the Ottoman Empire also as a diversion for economic chaos at home.

What is interesting is that the quarterly arrays are lining up with the ECM for the first quarter turning point. It definitely looks very interesting for the remainder of this ECM wave.

Should Mental Tests be Required for Politicians?


Sheila Jackson Lee is a politician of the Democrat Party. She is currently the U.S. Representative for Texas’s 18th congressional district, serving since 1995. The district includes most of central Houston. There are no qualifications to be a politician and the degree of incompetence seems to be more of a disease in government over the past 20 years which is getting worse by the year. There are no words to even explain the type of statements coming from some of them. Lee confuses Japan with Korea and then said Nix bombed the Germans at Pearl Harbor? This is getting completely insane.

Diane Feinstein said that post-traumatic stress disorder, or PTSD, “is a new phenomenon as a product of the Iraq War” and therefore veterans perhaps should be tested to have a gun in any new legislation. Here is what she actually said without taking it out of context.

Feinstein, March 7: If I understand this, this adds an exemption of retired military. As I understand our bill, no issue has arose in this regard during the 10 years the expired ban was in effect and what we did in the other bill was exempt possession by the United States or a department or agency of the United States. So that included active military.

The problem with expanding this is that, you know, with the advent of PTSD, which I think is a new phenomenon as a product of the Iraq War, it’s not clear how the seller or transferrer of a firearm covered by this bill would verify that an individual was a member, or a veteran, and that there was no impairment of that individual with respect to having a weapon like this.

So, you know, I would be happy to sit down with you again and see if we could work something out but I think we have to– if you’re going to do this — find a way that veterans who are incapacitated for one reason or another mentally don’t have access to this kind of weapon.

Perhaps it is time that we require a mental examination to hold public office

White House Trade and Manufacturing Policy Director Peter Navarro Discusses U.S. -vs- China Trade Confrontation…


Last month the White House presented a 36-page outline of the U.S. position toward trade with China (full pdf below).  White House National Trade Council and Office of Trade and Manufacturing Policy Director Peter Navarro delivers a presentation to discuss that report.  Very well worth watching:

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Report below:

https://www.scribd.com/embeds/382162398/content?start_page=1&view_mode=&access_key=key-gEdfSI4PozPzxh25Eaz0

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Victor Davis Hanson 2018 – The New Dark Age Mind


Published on May 28, 2018

Victor Davis Hanson 2018 – The New Dark Age Mind

WHY INDEPENDENCE MATTERS


Published on Jul 4, 2018

Happy Fourth of July! Now what the heck are we celebrating?

Unfortunately Every Investigative Trail Comes Back to the Dead End of FISA Abuse…


Way back when CTH first began the deep dive into the systems and processes that were deployed in the 2015/2016 election cycle we eventually came to the conclusion that everything of substance, within the larger intelligence abuses, revolved around DOJ and FBI abuses of the FISA process.

As an outcome of multiple research deep-dives we then focused on a specific foundational block of that usurpation, the fraudulent application presented to the FISA Court by officials within the FBI and DOJ-NSD (National Security Division).  The October 21st, 2016, application to the FISA Court for surveillance authority upon U.S. person Carter Page; and by extension the Donald Trump campaign.

Throughout all further inquiries this central component remains at the center of the issue.  Unlawful surveillance is the originating principal behind Operation Crossfire Hurricane; it is also the originating issue within the Peter Strzok “insurance policy”; additionally, it is the originating aspect to the Clinton/Steele dossier; etc. etc. the list is long.  Chase any of the corrupt threads back to their source of origin and you eventually come back to the surveillance authority within the FISA processes.

As an outcome of those concentric circles CTH continued to say: stay focused on the FISA fraud, and by extension the FISA application, and by extension the dossier.  Every outbound surveillance ripple can be traced back to the use of FBI and NSA databases to conduct unlawful surveillance of political opposition.  Not a scintilla of discovery within the past two years modifies that reality.

Why is that important?  Here’s where things get FUBAR.   FISA is a process, and when used appropriately, within all guidelines, is essentially a surveillance tool.  However, it is a tool that is entirely subject to the honor of the user.  If the user is corrupt, or holds corrupt intent, the tool easily becomes a weapon.  That’s what happened in 2015, 2016 and likely long before that.  The weaponization is so easy to initiate that NSA Director Admiral Mike Rogers admitted the intelligence community could not adequately prevent it.  So Rogers went about eliminating massive aspects to it, completely.

NSA and FBI database surveillance and monitoring is like HAL 9000.  The only way to ensure it does not become weaponized is to deconstruct it; remove some of the functions that are available to users.  The elimination of FISA-702(17) “About Queries”, was one such deconstruction.  Removing the (17) “about” search option entirely was the only way to stop human beings from using the tool.  However, that said, it only takes another presidential election, and a new NSA director, and the system can be reactivated once again.

The movement of the U.S. Cyber Command, literally into another combatant command, essentially merging NSA into a functional branch of the U.S. military, is clear evidence that people like Admiral Mike Rogers took action, in hindsight, knowing the Obama administration weaponized data collection, a function of government, for political benefit. Now, in hindsight, the action they took in May of this year all begins to make sense.

I don’t know House Intelligence Committee Chairman Devin Nunes, and I hold no insight into his thinking; however, looking at what actions were taken in the 2017 FISA re-authorization legislation it looks to me like he has structured this reality into the program.  How?  By timing the next FISA reauthorization to coincide with the 2020 Presidential Election.

Right now all of the administrators, the key-holders, of the Intelligence Apparatus database are honorable and generally safe; meaning they are trustworthy.  ODNI Dan Coats, through his action specifically related to the FISA process, has exemplified this.  Former NSA Director Admiral Mike Rogers definitely showcased his trustworthiness on these intensely precarious issues.  Mike Pompeo and now Gina Haspel also appear solid on this issue.  We must, ‘trust’…. but demand verification and transparency.

However, all it takes is one Presidential election and the switch can easily be flipped back toward weaponizing those systems.  All it takes is political operative like John Brennan, James Clapper, James Comey and Eric Holder to reappear and reconstitute the system to allow weaponized political abuse/targeting.  Really, and scarily, it is that simple.

So long as the current process of data collection remains a part of the intelligence gathering operations within the institutions of government – every vote you make for the office of the President will ultimately be a vote for who you, as an individual, trust to have ownership of your most sensitive information.  So long as we accept this level of surveillance gathering, every election decision from now until the end of time is ultimately an election with a consequence that the victor could weaponize that information to enhance ideological power.

All of that said, this backdrop lies at the heart of the testimony recently given by Deputy Attorney General Rod Rosenstein.   I could write 10,000 words on this specific segment, but it is not my intention to drag everyone through hours of nuance [Jeff, from Marketswork has a strong play-by-play] just watch the last two minutes:

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Let me cut to the chase.  Rod Rosenstein told congress the physical content of the FISA renewal application he signed does not align with the briefing explanation, from DOJ officials, that accompanied the signing.

…We sit down with a team of attorneys from the Department of Justice. All of whom review that and provide a briefing for us for what’s in it. And I’ve reviewed that one in some detail, and I can tell you the information about that doesn’t match with my understanding of the one that I signed, but I think it’s appropriate to let the Inspector General complete that investigation. These are serious allegations. I don’t do the investigation — I’m not the affiant. I’m reviewing the finished product, sir.

I’m not a Rosenstein apologist, and I’m not trying to convince you of his motives or intents. My personal opinion of Rosenstein (just to frame reference), is that he’s a coward. He’s kicking a MASSIVE problem over to Inspector General Michael Horowitz because he is afraid of it.  Rosenstein doesn’t want to be ‘that guy‘ who confronts deep state corruption of this scale…. so he insufferably shirks that responsibility over to the IG.  In my opinion, that makes him a coward; then again, it could be more accurate to say it makes him a bureaucrat – he is.

However, focus on the substance, not the insufferable parseltongue.  First, the public information about the FISA application is: the Nunes memo; the Schiff memo; and the Grassley memo. All direct sourced from the actual application.  Second, all members of the House and Senate intelligence committee have been allowed access to the “full and unredacted” FISA application since April 6th, 2018.  So there is no way for Rosenstein to hide behind the customary opaque nature of this specific FISA issue to congress. In short, he can’t lie about it.

Deputy AG Rosenstein is essentially saying he was mislead by “a team of attorneys from the Department of Justice.”  That’s a fanciful way of saying the DOJ-NSD briefing officials lied to him about the content of the reauthorization application.

OK, so in response we might initially say: ‘well if they lied to you, then prosecute them damnit’…. and our voices would be righteous.   However, the weasels have an out that President Obama helped create….

Remember the Susan Rice, James Comey, James Clapper and Loretta Lynch meeting in the Oval Office that Rice wrote down in her inauguration day memo-to-self?   Remember the “by the book” instructions.

Well, it would be “by the book” for the DOJ-NSD officials to lie to the Deputy AG about a counterintelligence operation, if the Deputy AG was within linear authority to the subject or target of the counterintelligence operation.  They are allowed to lie to him.

Setting aside the inherent malicious motive of the usurping officials within the DOJ-NSD during this entire aspect of their “insurance policy” deployment; the DOJ-NSD was investigating Trump; Rosenstein was an appointee of the Trump administration…. under this construct, and accepting this is a counterintelligence operation of the U.S. government unto itself; and accepting that President Trump could ask Rosenstein at any time about the underlying nature of the investigation; the DOJ-NSD lying to Rosenstein is reconciled/allowed  under the “by the book” permissions.

Yes. Anger. Me too.   But that doesn’t change the dynamic.

The 2015/2016 FISA abuse, search-engine surveillance and the underlying sketchy FISA application against Carter Page, is the lynchpin to the entire unlawful enterprise.  In the bigger picture, what happened is also dangerous as heck.  That’s the reason why Chairman Devin Nunes and Chairman Goodlatte keep chasing the story behind it.

However, even when chasing the story behind the FISA issues – what you discover is the FISA process itself is based on opaque fraud that is almost impossible to hold accountable.

The FISA surveillance system inside the intelligence apparatus is unaccountable by construct and design.  The users, and in these examples the ‘abusers’, of the surveillance system are essentially protected by the scale, scope and structure of the process.

The institutional nature of the system, the “by-the-book” per se’, is why Rosenstein now kicks the FISA can to IG Horowitz.   The “by-the-book” also protects the corruption contained within it. The system is, in essence, set up to protect itself. The only way to eliminate the protections is to eliminate the underlying process and stop collecting information.  That’s almost impossible to see happening.

As a consequence, there will likely be some prosecutions; but they will not be for the institutionally corrupt behavior we can clearly see.  Those who engaged in leaking stories to the media will be prosecuted for the leaking.  Beyond that aspect there is not likely to be any technical way to prosecute those who can hide behind the system.

Think of it another way….. I don’t mean to raise blood pressure, but taking new information and applying it to historic reference leads to this:

Many of those DOJ-NSD officials who participated in the Rosenstein briefing, or assembled the underlying briefing material, left after the time-period in question (June 2017).  Additionally, almost all of the FBI officials left, retired, resigned after this time-period.  There was also massive exit of all of corrupt support officials from inside the DOJ-NSD and FBI when the Page/Strzok text messages surfaced (December 2017) and the evidence of the political operation became public.

However, as all of these *inside* officials left the DOJ and FBI, another entire set of *outside* DOJ and FBI officials replaced them; and the originating counterintelligence operation was rebranded and handed over to Robert Mueller.

The inside government usurpation operation became an outside government usurpation operation, essentially using contract agents hired by the inside group prior to exit.  The remaining fragments of the ‘insurance policy‘ are in the hands of Robert Mueller’s team.

President Trump and First Lady Melania Celebrate July 4th – White House Independence Day Speech (video)…


President Donald J Trump, First Lady Melania Trump, Vice President Mike Pence and Second Lady Karen Pence host an independence day picnic at the White House for administration officials and military families.

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President Donald Trump Independence Day Message…


Earlier today President Donald Trump tweeted a video message to celebrate the Fourth of July, our Independence Day.

Senator Rand Paul Independence Day Message…


Senator Rand Paul from Kentucky delivers a message to celebrate the Fourth of July, Independence Day.

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Reflecting on liberty through Senator Rand Paul’s last year (2017 through 2018):

♦ Shot at while practicing for a congressional baseball game.
♦ Attacked in his front yard while mowing his lawn; hospitalized.
♦ Family threatened by mad man with an axe; recently arrested.