COMMENT: I admit I have been a gold bug and I bought into Bitcoin. I have been following Socrates since you began forecasting Bitcoin. I want to say that it has convinced me that these fundamental forecasts are just like fake news. When Socrates said gold would decline and then Bitcoin would rise, that made no sense but it was right. All they talk about is how hyperinflation will take place when the dollar loses its reserve status. Socrates is a real gift to us all. I think it is time to take it public to fight these Silicon Valley terrorists trying to change our future.
FK
ANSWER: Socrates just calls the shots as they unfold without bias or predetermined philosophy. I think what you have noticed between gold and bitcoin is interesting. Buffett sold his bank shares and first moved to gold shares. Warren Buffett’s Berkshire Hathaway bought a stake in Barrick Gold in the second quarter. The total stake in Barrick Gold was worth about $564 million. Then Buffett sold 9 million shares of ABX trimming the position 44% from Q2. Buffett also sold off Wells Fargo (WFC), JPMorgan Chase (JPM), PNC Financial Services, and M&T Bank, according to reporting by Yahoo Finance. The company also dropped its entire position in Costco.
Buffett, along with Bloomberg, is one of ABC News’ the “Super Rich Friends” and forget about his buying into gold and then selling it out. More importantly, he has been liquidating the bank stocks. This is what I have been warning that BigTech is moving in to replace banks. Don’t forget that Gates resigned from Berkshire to try to hide his influence from investment decisions behind Buffett. It has been Bill Gates calling for 10 more weeks of back in April lockdown! Bill Gates resigned both from Microsoft and Warren Buffet’s boards. It has been Bill Gates pushing to eliminate paper money and move digitally.
This is a coordinated effort with the World Economic Forum taking the visible lead. This is how all MANIPULATIONS take place. One person is upfront and gets all the press like Soros and the British pound. But there is a group with all the same positions. When the Long-Term Capital Management Crisis hit in 1998, it turned into a global liquidity crisis BECAUSE they all had the same position – Russian bonds. This is Klaus Schwab up front but all of BigTech is right behind him. Schwab has been cultivating heads of states to sell his Stakeholder Economics. He is an elitist and destroying the world economy to rebuild it from scratch in his mind is perfectly fine just hand out a guaranteed basic income as they are doing in the UK and in Canada to stay home.
QUESTION: Hi AE….think I finally get your message about money supply vs inflation. But aren’t we just dealing with a difference of semantics? If the gov’t prints endless amounts of currency, that HAS to. at some point, impact prices etc. which in turn, eventually leads to a collapse in confidence. (Savers can’t afford to buy anything.) What am I missing here?
HS
ANSWER: It’s a question of what comes first – the chicken or the egg. First, we have the collapse in tangible assets and people will then hoard their money and spend less fearing the future. The revenue declines for governments which then forces the government to create more which use to be debasement before paper money, and today we have debt which can be posted as collateral to even trade which is now also money that pays interest as it first began during the American Civil War.
The classic definition of hyperinflation is taken from the 1956 work by Phillip Cagan who wrote The Monetary Dynamics of Hyperinflation. Cagan defined a hyperinflationary episode as beginning in the month that the monthly inflation rate exceeds 50%, and ends when it drops below 50% per month. This is the standard definition.
The general population keeps the bulk of their wealth in non-monetary assets primarily real estate which made the 2007-2009 financial crisis far more serious than a stock market crash. The higher middle-class population outside the USA view monetary amounts, not in terms of the local currency but more so in dollars taking an international perspective. Only Americans tend to be myopic and see the world all in dollars. That’s why you constantly see these people yell the dollar will crash without ever looking outside the USA even once.
The international view of assets in dollars is also a direct result of not just the fact that the USA is the largest core economy, but the dollar is the reserve currency of the world BECAUSE there are also no restrictions on issuing debt in dollars in foreign countries imposed by the USA, and the fact that the US dollar has never been canceled. You can still spend a $5 bill from 1861.
While the analysis by academics has focused on classifying hyperinflation, they seem to lack any understanding of the real causes of all hyperinflations attributing them to have been caused by government budget deficits financed by currency creation. Peter Bernholz analyzed 29 hyperinflations (following Cagan’s definition) and concluded that at least 25 of them took place because of money creation.
These academics have also wrongly assumed that the necessary condition for hyperinflation is the use of paper money. They obviously lack any understanding of the monetary system pre-1700 when coins were gold or silver coins. The idea that hyperinflations in history are confined to paper money has seriously harmed the entire understanding of the mechanism behind hyperinflation. They see to have ZERO understanding of the history of coinage which provides a definitive historical record.
They will typically point to the French hyperinflation of 1789–1796 and claim that it took place after the introduction of a non-convertible paper currency, the assignat. They have for more than 100 years looked at this idea that money has to be commodity-based. They never apply that theory as to how Germany, Japan, and China have all risen to the top without gold and Russia, rich in gold, has languished economically.
Perhaps it simply takes a trader to see how hyperinflation even begins well in advance. Hoover explained how capital acted in 1931 rushing from one currency to the next as nation after nation defaulted, but any professional trader who was on a dealing desk in 2010 when Greece turned to the IMF for help saw exactly the same patterns. When they drew first blood with the collapse of Greece, they turned and asked: Who is next? They started selling Portugal, Spain, Italy and were even moving against France. That is how a REAL financial contagion operates.
Historically, it is NOT that people lose confidence in the money because the government is simply creating more! It is the collapse in the CONFIDENCE in the economy first (absent war), and then this migrates to the CONFIDENCE in government collapsing. This has historically led to hoarding when the money is just coins or converting to other currencies (capital flight) which has been paper (i.e. Germany & France). It is the sequence that then leads to forcing the government to enter a death spiral where they create money to try to maintain their existence. The government will typically then collapse.
This is the same problem with the myth about interest rates. The claim is that rising interest rates are BEARISH. All they remember is the tail-end. The rates rise and the market declines. When you look at it objectively, markets rally with rising interest rates. Just look at this entire rally.
The ECB cut rates to negative in 2014. When we look at the Dax in Price and in dollars, the peak was March 2015. The lower interest rates have completely FAILED to “stimulate” the economy as has been the great expansion of the money supply.
This absurdity that simply increasing the money supply will cause inflation is the typical sales pitch for the last 50 years. If gold truly rallied to keep pace with inflation, then since 1980, it should be trading at the $12,000+ level. OBVIOUSLY, there is something else going on. This is where it takes a global perspective to understand when the breakout will come and precisely when will the CONFIDENCE shift from hoarding cash to spending it because it will be worth even less next month.
QUESTION: Why are bankers never prosecuted? The New York courts are not trustworthy. Can you explain why this is allowed to go one all the time?
SK
ANSWER: It is very simple and the shareholders are the ones who are being defrauded. The banks can routinely engage in fraud all they want. The individuals are NEVER prosecuted because the government knows they will not get huge fines from an individual. The bank is fined and pays vast amounts of money, but the bankers themselves are never prosecuted. It is raw corruption. The very same bankers go on to commit the very next crime. They get bonuses for the money they make, and if caught, they keep the bonus and the shareholders pay the fine.
I personally would NEVER recommend a bank stock for that reason. The bonuses were paid out even during the 2007-2009 crisis. The S&P 500 Financial Index just retest the 2007 high compared to the rest of the market. The corruption between the courts, the government, and the banks is starting to wear very thin.
QUESTION #1: If China is held liable for the virus damage then why could we not void all the bonds they hold as a payment for their damage to our economy? That would free up some debt and be a stimulus as well it would seem to me. The CCP is working every day to bring down the USA and this release of a virus that has crushed our economy. Yes, this is part of a global cabal for sure. MTB
ANSWER#1: If the US, Europe, or Canada ever did that, they will forfeit their credit standing and nobody else will ever trust them again.
QUESTION #2: Why are you pro-Republican and anti-Democrat?
LM
ANSWER #2: I understand it may come off that way, but I do not believe this is what you would remotely call a standard Republican v Democrat election. Don’t forget, when Trump was first elected, even the career Republicans were against him. Remember Lyndsey Grahm smashing his phone and John McCain saying he did not want Trump at his funeral. I have dealt with Washington for a long time. When Reagan was elected, he was just a state governor with no Federal experience. They told me back then that they were not happy but they would train him. Traditionally, they DO NOT like outsiders. It has ALWAYS been that way.
I do not see this as a normal election. I think Biden is mentally not all there. They want someone who is NOT hands-on like Trump. The bureaucrats want to run the government and the president just gets in the way. I see Biden as the same a Bush, Jr. who had no clue what Cheney was doing. You do not see him running around giving speeches even like Obama. Biden is a place-holder. My fear is that this Great Reset is a real agenda and they are trying to take over the United States. Why do you think all the Tech companies are blocking anything negative about Biden? They have been promised a piece of the action when the digital currency is introduced. The Democrats have already put in legislation to create the digital dollar. Perhaps you have no problem getting a Digital Passport to be able to travel anywhere. They will be coming. This will be just like the Nazis – Papers Please! Social Media tycoons have censored Trump 65 times – Biden ZERO!
I know many of these people. They have done everything they could possibly do to discredit me because we were the largest institutional adviser in the world. They are scared to death of that. Our computer writes over 1,000 reports every day on every instrument around the globe. Nobody covers the world like this and nobody correlates the world which allows us to see a tsunami coming which is not domestic in origin.
I am independent. I am not a fan of career politicians regardless of their party. I have worked on both sides of the aisle. I have seen politics close up.
COMMENT #3: Sir,
It’s interesting. My practice had a board meeting. There were 14 people gathered around a group of desks arranged in a circle. Of the 14 only 4 were wearing masks. The younger partners.
When dealing with patients, I take my mask off and allow my patients to do so as well. I tell them that they know the risks via the TV and to do what they want. Interestingly, the at-risk really old and immune compromised keep their masks on. Only 3 patients and family kept theirs on. The rest are relieved to take them off. The 3 were Biden supporters. I asked.
You ever have a moment in your life where you did something because you were caught up in the moment, like-minded people around you? Reinforced by the echo chamber of the message repeatedly playing. Later you think, damn that was stupid. These were typical events when you were young and dumb. I think people are caught up in the moment and can’t see beyond. As my First Sergeant use to say, “The masses are asses. “
A lot of people can’t think for themselves nor evaluate data well or both. I’m not an expert but at least I question and try. And it’s not just individuals but groups as well. What’s the difference between Australians and Americans? They were caught but we weren’t. I think this translates to the difference between national character as well.
Keep up the good work
DK
REPLY #3: You are correct. I see people driving alone even with masks on. Even the box I bought of masks states plainly these masks “do not eliminate exposure to the risk of any disease or infection.” Yet if you do not have one, they tackle you in Australia, the third time without one you go to prison in France, and you will get beaten in many other parts of the world without one. It really has become insane.
QUESTION #4: Yesterday where you talking about a big reset in the economy, on the first hand here in Europe there Europe states are redoing all present dept to perpetual bonds. It sounds very nice but there are a few things bothering me. What will the consequences be for central banks, pensions funds, and others sitting with those bonds? If they have a return rate of 0% or lower are the value in the practice zero or negative. Unless it’s possible to force the state to redeem those in the future. Overtime will they have no value at all because inflation will destroy them. If Europe and the world will go over to a two monetary system with digital currencies, are they going to have a two monetary system?
If it should work over the whole world could it be a problem to run this currency on their own servers, or will they be forced to use the new blockchain infrastructure being built now? If they move swift and smart should it be possible to do it to a new global currency? It will be very hard for other states to stop it if it’s backed up of states, and if they are first and are grown big will block a lot of other actors. Are there other realistic ways to destroy money or debt? If I recall right has Argentina been doing default. How many years did it take for the country to come into world society again? What were the consequences for ordinary people? You have both poor middle-class and rich without doing a definition of what you need to earn or own to be in each group.
I have another issue as well. Regarding trading between the Western and Asia. Are we not shooting our self in the foot there? You have been traveling a lot in Asia I have been there some as well. I’m always impressed by how hard people are working and educate them self. A high educated people are in today’s world hardcore as I see it. There should we look at our own schools and education system, is it possible to compete with it? I know it’s a good chance Asia and China will take over. It’s not that strange they got the people and people are well educated that’s not stoppable, we have to adapt. If we do not handle our cards well here will we need to sell cheap sun cars to the Chinese when they are doing a holiday?
We have a third issue as well. No matter what they think is good or bad. Chinese Japanese cultures are very old. Actually much older than the Roman imperial and it has lasted for a much longer time. Those cultures and their way of solving problems over centuries must have some benefit other ways should they not survive for so long time. As I understand it is just Xi Ping the last emperor in a long row, even if it’s under the “communist” flag, Chinese is not communist now if it not suit there political purposes. You have been there and I’m sure you have seen a lot of sides of the country. Both countries imperials and companies has it up and downs. Regards BK
ANSWER #4: The central banks holding the debt will simply become part of their capitalization. I have been in meetings with Central Bankers and pointed out the problem with pension funds already even at 1%. I have explained that they will have to provide some yield in return at least 3% by our calculations in exchange for making them perpetual. They will not default outright like Argentina. Politically that would be disastrous internationally. Keep in mind, even these perpetual bonds will eventually be traded just like the British Consols.
As far as China is concerned, there seems to be just this desperate need to have an enemy. They get to blame the COVID mess on China, despite the fact that it has been the reaction in the West that is the crisis – not China. I explained from the outset this was a natural virus and not a biological weapon for the kill ratio was too low. It may have been created in a lab, but it was still in the category of a natural virus rather than a weapon. That rules out any deliberate attack by China.
Your third question needs to be corrected. The first unified Chinese coinage began only about 240BC. Prior to that, there were the Waring State issues like knives. The Roman Imperial did not begin until 27BC, which is correct. However, the Roman Republic began with bronze coinage much earlier. Their first silver coinage appeared in 280BC which was comparable to the Greek weight system – a didrachm.
That issue aside, the primary difference is that Western culture thinks in a straight line. Asian culture understands everything is a cycle. That is a major difference.
COMMENT: The IMF & a new Bretton Woods? When are you going to admit that everything they are doing is because of you and your models? Fes-up!
HC
REPLY: I understand that it appears they have been following our models from the January 18, 2020 turning point to the Sovereign Debt Crisis and looking into Perpetual Bonds, to the Monetary Crisis Cycles where I have warned they would move to a new style of Bretton Woods. That said, if they were really following our model, they would see the end is near and there are far better solutions.
COMMENT: The IMF & a new Bretton Woods? When are you going to admit that everything they are doing is because of you and your models? Fes-up!
HC
REPLY: I understand that it appears they have been following our models from the January 18, 2020 turning point to the Sovereign Debt Crisis and looking into Perpetual Bonds, to the Monetary Crisis Cycles where I have warned they would move to a new style of Bretton Woods. That said, if they were really following our model, they would see the end is near and there are far better solutions.Video Player00:2104:53
You must listen carefully. She is speaking about the sovereign debt crisis (debt relief with the private sector), the same words as Schwab (equality), climate change, and increasing the money to the IMF. Michigan Republican Congressman Bill Huizenga sent this Video on how the Democrats have Denied him any right to Speak Out on the Floor to object to what the Democrats were trying to hand $3 trillion to the IMF for this globalist agenda.
This is all the same social agenda because the system is collapsing and to retain power, they have used this virus as the excuse to seize control and to try to prevent a civil uprising. Right now, the polls around the world generally show 72% of the people believe the governments are trying to protect them. New Zealand election showed she won but the politics is also different. People do not get to vote for the individual, only the party. When elections come due in late 2021 into 2022, we will see the attitudes swing to probably only a favorable poll in the 40% range.
This IMF statement now is again part of a coordinated effort to overthrow Trump. The IMF is looking at $3 trillion if they come to the aid of this globalist agenda and help to remove Trump. Then they will target Russia and China. The IMF has also been supporting a digital currency and, behind the curtain, they have been pushing for a one-world currency which should be their SDR replacing the US dollar.
I find it curious how there seems to be always some conspiracy theory weaved that somehow I am in league with these people, a fraud somehow despite the fact it was HSBC that had to pay all the money back and how the banks are continuously in money laundering schemes to just theft. The latest in a long list of frauds is another $2 trillion. I understand the government controls Wikipedia. Larry Sanger, the co-founder of Wikipedia, published a blog postthis month declaring that the online encyclopedia’s “neutral point of view” policy is “dead” due to the wholesale assault by the left-wing bias of the site. He pointed out how the article on President Donald Trump contrasted its extensive coverage of presidential scandals with the largely scandal-free article on former President Barack Obama.
Back on May 14, 2020, Sanger published a blog piece titled “Wikipedia Is Badly Biased” and started by declaring Wikipedia’s “Neutral Point of View” policy dead. With all the hype about Russia trying to influence the election in 2016 to defeat their star candidate, Hillary, what is emerging is pretend fact-checking and constant attacks on anything that disagrees with their extreme left-wing agenda. This is threatening the very future of the nation and our children.
Wikipedia protects its “editors” and refuses to reveal even who they are. They have become simply another piece of propaganda. They will never publish the truth. Wikipedia is no better than YouTube, Twitter, or Facebook.
Wikipedia protects its “editors” and refuses to reveal even who they are. They have become simply another piece of propaganda. They will never publish the truth. Wikipedia is no better than YouTube, Twitter, or Facebook.
Many people have written in to ask about precious metals, what to buy, and where to store them. A number of people ask about storing at the Perth Mint or some designated metal storage facility. There are many different places for storage. However, I would not store anything with any government facility whatsoever. Even when gold was confiscated in 1934, they seized all gold on deposit at any bank. This is what gives me great pause of even storing gold in a bank safe deposit box or at any designated metal facility.
I know that many gold bugs keep spinning stories desperately against me and are trying very hard to prevent anyone from reading our sites. They are acting no different than YouTube or Twitter. That simply means that they cannot argue facts, so kill the messenger.
I have been warning that there is no RULE OF LAW. The government will do whatever it wants and there is no law that will ever protect you. You must remember, that they will do whatever they need to do to survive. I suggest watching “The Report” by Amazon. That exposes how the CIA was torturing people against international law and lying to Congress to cover it all up. Nobody was ever prosecuted and the guys doing the torture got $80 million for doing so.
We all know that the bankers are protected in New York. NEVER has a banker gone to prison for anything they have done. Because they were illegally trading in our accounts parking even $500 million losses in my account over the weekend and claiming it was an error and backing it out on Monday, exposed how corrupt things were in New York. Then because I threatened to sue the bank, they flipped it and claims trading losses were mine and admitted their people conspired with me to hide the losses. When it came out that the accounts were mine and not accounts of clients, their story fell apart. Nevertheless, they seized our company, through me in civil contempt for 7 years on a statute that said 18 months maximum, and when my clients supported me against the bank they put a lifetime gag order on me to prevent me from helping my clients against the bank. The bank pleas guilty and HSBC returns all funds, no fine, and no bankers ever went to jail. The same with the CIA.
They can torture you, kill you, or steal all your money. Nobody will ever be charged nor will they ever go to prison. This is the reality of the world we live in. Here is a message from a member of Parliament in Britain. We are looking at the repeal of all rights in Britain, Australia, Canada is moving with internment camps as is New Zealand. They desperately want to do the same in the United States if they can get rid of Trump. Welcome to the “New Norm” it is just out in the open.
When it comes down to store your metals, I would not leave it in any government facility or designated metal storage. They will know where to find it.
QUESTION: Do you see the Fed moving to digital currency and perpetual bonds simultaneously with other nations? I think it would be harder to pull off here, but then again, they may have no choice. I guess they have a lot of reasons to get rid of Trump, but there’s more on the side of rejecting it, at least for now.
Interesting that a few analysts, websites, newsletters… have been calling for a Fed move to digital, as soon as November 5th or January 2021. Seems optimistic. However, I haven’t heard anyone mention bond default through the transition to perpetual.
E
ANSWER: No. First of all, the US debt market is the only game in town. Europe has destroyed its bond market as has Japan. That is why they are trying to get rid of Trump to further their globalist agenda. However, the conservative Democrats will also reject it as well. Our political report will be up for sale on Monday which is not just 2020, but the next 12 years, The arrays are shocking when we run them on politics. There is an increasing risk that the Democratic Party will split just as the Republicans did in 1912 when Teddy Roosevelt started his Progressive Party. The Democrats face the same crisis – conservative (middle of the road) v extreme socialist left.
There are a host of problems. They cannot move to digital so easily because over 60% of paper dollars are outside USA used globally as the alternative. Today, the Treasury and Board of Governors staffs estimate that about 60% of all U.S. banknotes in circulation, or around $500 billion and growing, is held outside the United States. U.S. banknotes are the #1 hedge against the currencies in Europe and Asia because the USA has never canceled its currency so a $100 bill from 1934 is still valid which is not the case for any nation in Europe. The US printed $1,000, $5,000, and $10,000 notes in 1934 which are still legal tender.
It is not so easy for the USA to move digital and at best, it would have to be a two-tier system without canceling the paper money.
QUESTION: Interest on savings instruments (i.e. CD) for 1 yr terms is non-existent at <= 1.0%. Why would interest rates increase in a digital currency system/world?
IS
ANSWER: The only reason rates would rise is by simultaneously converting the debt to perpetual. They have to end Keynesian Economics. They cannot raise rates as long as they have to buy the debt as in Europe. Therefore, we see most countries preparing for the real BIG BANG which is the default on dent by converting outstanding debt to perpetual, then they no longer need to artificially suppress interest rates they cannot raise if the debt is still issued.
I tend to get called in because they know I will say the truth. I do not take funds from any group and we pride ourselves on independence. It is a club because unless you have been called in by one government you will not get into others. Very interesting criteria. Nevertheless, I believe you will see this simultaneously. A digital currency swap will allow then the perfect excuse to change the debt structure and then they do not have to outright default.
Big Bang began in 2015.75 within about one year of them moving to negative interest rates in 2014. The next crack is due 2021 and the big break post-2024. We are now entering the next phase and we are running out of time. That is what these lockdowns are really about. They know civil unrest will rise when the public realizes that the old financial systems are collapsing.Categories:Bonds
QUESTION: Marty, you mentioned several times now, that the ECB MUST convert to a digital Euro. I have done speeches about that based on a paper from the IMF (Christine Lagarde) last year, in which they too discuss how to do it. But I have a serious question regarding timing.
I live in Germany and I would say that WE (the country) are not ready for such a move yet. Let alone many people. I have people in my family who still don’t have smartphones (just plain mobile).
I am completely with you that this move is coming (I am also part of a crypto community but as a critical member (I am the party spoiler there)).
But how can they move to a digital Euro to prevent bank runs, when I can’t see the infrastructure in place to do so.
Especially in such a short amount of time rg. the date you mentioned. They can eliminate cash withdrawals, yes, but paying with my smartphone reguires technology .. ?
Thanks a lot,
A
ANSWER: We are talking about bureaucrats. They only think in concepts much like Klaus Schwab’s Great Reset. The practical application of what they are doing is not there. They lack even the infrastructure, as in California, to force all cars to be electric. They do not have the power grid to support that.
I was in meetings where they actually told me with a straight face that they had to take trading the Euro away from Britain. I asked if they were going to take it away from the USA, Japan, Hong Kong, Singapore, etc? They looked at me puzzled, and said no! Just Britain. I asked if they really wanted to control the Euro just convert it into the old Soviet Union ruble. No free market at all.
Then there was all the rage that in London the big banks all threatened that they would move their trading to Frankfurt if BREXIT took place. But again, neither Frankfurt nor Paris has the telecommunication capacity of London. They could not possibly set up shop in Europe. There is no infrastructure to match London.
The problem that is the hidden crisis is that they have DESTROYED their own bond market. The ECB cannot even allow its balance sheet to shrink as debt matures. The Federal Reserve was not rolling over the debt they bought back in the 2007-2009 crisis. As it matured, they cashed it in.
The ECB is trapped. It cannot shrink its balance sheet for there is no market for the debt. They have finally agreed to fund this Coronavirus destruction they organized by creating combined Euro Debt for the first time. That is because nation-states cannot raise the capital.
They lack the infrastructure on every front. That does not mean they will not try. They have run out of opinions. They are desperately trying to revive their debt market, but they have wiped it out with negative interest rates since 2014.
This is what I keep warning about. INFLATION has nothing to do with the money supply any longer. Those are an old idea from the time of Gresham’s Law in advising Queen Elizabeth not to debase the currency as her father did.
We must understand that the exchange value between the various currencies back then was the metal content. Therefore, inflation was a factor of the exchange rate rather than the money supply. The more the coinage was debased, the more people hoarded the old currency. Hence, Gresham’s Law became that bad money drives out good. As this process takes place, the money supply DECLINES because of hoarding. This forces the state to debase even more to create money to pay its expenses. Roosevelt confiscated gold in 1934 for the same reason – people were hoarding gold. The German hyperinflation was the result of the 1918 Communist Revolution which scared people and they converted their money to foreign currencies and hoarded precious metals. The greater the hoarding, the more the money supply shrank, which in turn forced the government to print more.
We find hoards of Roman coins during the 3rd century in particular after Valerian I (253-260AD) was captured by the Persians. That broke the confidence of the Roman people and other barbarian tribes in the north saw the weakness and began to invade.
The coinage collapsed in metal content in just 8,6 years. We find hoards of even the debased coinage because people lost confidence in the government. We see the very same patterns in human behavior over and over again.
This is a hoard of Arab gold dinars. We see always the same pattern of hoarding when there is a decline in the confidence of the government in power at that time.
The ECB can cut rates to try to stimulate and that failed. People are hoarding cash in Europe and that creates deflation. There is NO AMOUNT of money that can be created to offset the DEFLATION when people lack any confidence in the future. Then they are imposing this “New Norm” of lockdowns and destroying jobs and they actually expect to sell debt and keep interest rates at negative and somehow this will stimulate the economy they have worked so hard at destroying? The increase in the money supply of all these central banks is still less than 20% of the economic contraction globally.
QUESTION: Hi, Mr. Armstrong I noticed that the national news agency in my country had an article about a local digital currency in Maricá, Brazil. It is called Mumbuca. What I read about Mumbuca sounds good and all that, but I am curious if the news is just conditioning people to a new age of digital currency. Do you have any comments about Mumbuca? Thank you for your time and what you stand for. Best Regards AA
ANSWER: It is important to highlight that Mumbuca is a local digital currency whose name is a reference to the main river and to one of the native peoples of the city. A unit of Mumbuca is equivalent to R$ 1.00 (US$ 0.19). What is interesting is that this is a local city currency much like the Depression Scrip of the 1930s. This is really an experiment of guaranteed basic income. Increasingly, customers in the city don’t pay with cash but with this digital currency. They receive it as part of the town’s basic income program. They pay with a quick scan of a QR code, using their phones. So far, just over 42,000 inhabitants can pay local merchants with Mumbuca.
This is Brazil’s first big experiment with digital currency. Those without smartphones can pay using a card, which has a scannable barcode. They are way ahead of the game and, actually, it is being followed closely internationally.
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This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
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