I have warned that once one state taxes something, the idea spreads like a contagion. Illinois and California wanted to tax movies or anything you stream. Now, Georgia is looking at the same thing. This is all part of the economic decline. The states are broke. Their pensions are consuming everything. It is no longer about servicing the people, it is all about exploiting the people to fund themselves. There is no rationale behind this. It is all about needing more to cover this year’s budget. What about next year? They basically simply say they will deal with that when it comes.

With every new tax, they simply reduce disposable net income, which in turn lowers living standards. This process is not sustainable. A child with a simple calculator can easily figure out that everything will come crashing down. We have politicians who are career people and have rarely ever been on the side of people. It is beyond comprehension, for the bottom line is always the same.

NO POLITICIAN WILL VOTE AGAINST THEIR SELF

The two major myths that I get asked about all the time are the Rothschilds and whether pricing oil in yuan or euro will cause the dollar to collapse. I think I know something about the Rothschilds. I was even offered an investor back in the 1980s who wanted to buy into the company, and it was one of the Rothschilds. Nevertheless, it seems as though these legends live on for centuries and no one bothers to review the evidence.

The Bible of the Rothschild conspiracy comes from “The Creature from Jekyll Island.” This popular book is probably the most distorted review of history I have ever encountered. It contains a quote that is often attributed to Mayer Rothschild, and I dare to find anyone who can come up with this quote that preexisted the publication of this book. I believe it was just made up. The quote claims that Mayer Rothschild once said:

“Let me issue and control a nation’s money and I care not who writes the laws.”

The reason why this quote is fake is rather clear. The US did not begin to issue paper money until 1861, nearly 50 years after his death. It wasn’t until 1921 when the Bank of England gained a legal monopoly on the issue of banknotes in England and Wales. The entire authority to issue banknotes started with the Bank Charter Act of 1844 when the ability of other banks to issue notes was restricted. The first banknotes were originally hand-written and were merely like checks. It was not until 1725 when cashiers had to sign each note and make them payable to someone. Actually, printed banknotes at the Bank of England began in 1855, which was about 40 years after Mayer was dead.

The quote was made up to justify this idea that the Federal Reserve was evil and owned by bankers who could create money at will. The entire problem was completely distorted, for the ability to create an elastic money supply during a recession and the Fed would be able to buy corporate paper which was redeemed upon expiration. It was World War I when Congress instructed the Fed to buy government debt to fund the war and never restore the structure to what it once was.

Hence, this fake quote by Mayer predates a central bank creating money, and it appears the person selected was dead so there could be no challenge. It has been used to convince everyone that central banks are evil and they are merely the puppets of the Rothschild family who control the world. The Rothschilds lost their power as did the Medici. They have been replaced by Goldman Sachs, which is affectionately called “Government Sachs” among professional dealers and traders.

All these claims that the “petrodollar” is going to collapse are a total joke. Oil is less than 10% of world trade. These people are living in the ’70s. Hey, cut the hair and get rid of the bell bottoms. It’s 40+ years later! There is not even an attempt to offer a true honest analysis of the subject. Just look at the figures. The oil and gas drilling sector make up between 4.6% and 6.5% of the global economy.  The FX market DAILY trading volume is about $5.3 trillion,which dwarfs the equities and futures markets no less oil and gold. Just look at the numbers.

ANSWER: Hyperinflation comes when two primary requirements are met:

• (1) there is a complete collapse in the confidence of the government;
• (2) the government can no longer borrow and can only create money to survive

What we will first see before ever reaching that point in the United States is the significant impact of STAGFLATION. Rising taxes increase the cost of doing business and cause prices to rise. However, they rise only because of rising costs and not demand. Therefore, you have rising prices defined as inflation, but without the economic growth or demand. Thus, what unfolds is called stagflation and this instigates civil unrest for the standard of living declines with the net disposable income.

We are entering a period of STAGFLATION where economic growth has been declining. Central banks will be jumping for joy just to return to a 3% real GDP growth rate. Annual growth rates have been in a bear market since the 1950s. The bigger the government becomes, the more it must extract from the economy to sustain itself.

The entire project of creating the Euro was a means to allow Northern Europe to effectively takeover Southern Europe and impose its philosophy in a totally one-sided arrangement. I have stated plenty of times that all the debts of member states should have been consolidated into the central Euro debt and thereafter each state would be on its own as is the case in the United States. But from the outset, this was like pretending to be one family, but you do not really want to associate with your drunken brother-in-law who is always asking for money. Oh yes, you have to pretend to be nice at funerals and weddings. But that is where family ends. The European Union is no different.

The crisis brewing here is monumental and it will tear the European Union apart at the seams. There is this crisis that because the Euro was NEVERdesigned properly to begin with, Brussels is trying to enforce its demands upon every member state to maintain austerity regardless of the consequences domestically in each member state.  When Southern European states joined the Euro, they had to convert all past debts from their local currency to the Euro. What happened was not only their national debts DOUBLED in real terms, but ALL PRIVATE debts also DOUBLED. Suddenly, banks that had lent Italian lira were now demanding to be paid in Euro which doubled in real value. Nonperforming loans skyrocketed and every politicians blamed the bankers for their own misguided creation of the Euro.

Noe the crisis in philosophy is rising to the surface. The new Italian government wants to provide €1.5 billion to compensate savers for bank failures. Brussels is insisting that violates their bail-in rules and cannot be done. In the mean time, the new government intends to clean house in the Central Bank and remove all former officials stating that they has FAILED to properly supervise the entire banking crisis.

Both Vice President Matteo Salvini and Vice Regent Luigi DiMaio have made it clear that they will not comply with those EU rules and leave the people bankrupt because of the failed banks. The EU has lost all direction and no longer sees itself as a body for the people, but to merely rule the people. They have lost sight of the purpose of government in this desperate attempt to save the Euro. At the EU Commission, there has to come a day when reality crashes down upon them. This is not the way democratic governments are supposed to function.

The majority of the terms of the central bankers in Italy expire in May. We will be holding the World Economic Conference in Rome May 3rd & 4th so we will have a front row seat for the May Crisis engulfing Europe. We will be issuing a special report on the Europe Crisis and how to survive it for attendees.