Armstrong Economics Blog/Regulation
Re-Posted Jul 16, 2019 by Martin Armstrong
QUESTION: Marty, You are wrong. The US Treasury can create the money as the Constitution says it can. Article I, Section 8, Clause 5. The Congress shall have the Power to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.
To coin is used as a verb. At the time the Constitution was written, to coin money meant to create or to make money. Today’s Dictionary defines to coin as a verb meaning to make or to invent.
Why did you fail to mention this in your Blog today?
TD
ANSWER: Yes, you are correct. I suppose I was referring to the 99.99% of the money supply rather than the coins put into circulation by the US Treasury. President Nixon only closed the gold window in 1971. He did not demonetize “gold” as money under the Constitution. Yes, technically the US Treasury can coin money, but it coins today’s coins. The Fed does not do that. The coinage it creates is minimal in comparison to the overall scheme of things. Since 1913, the printing of currency has been delegated to the Federal Reserve. Prior to 1913, the Treasury issued the paper currency which was backed by coins.
This was the last issue of paper currency issued by the United States Treasury in 1913, the year that the Federal Reserve Act was passed.
Note that in 1934, the Fed actually issued $10,000 bills
Dr. Jordan B. Peterson On The Impact Of the Radical Left
Suspect Nation: FBI and ICE Sweep DMV Photo Databases Unauthorized
Armed Activist Hurling Molotov Cocktails at ICE Facility Shot Killed by Police…
July 13, 2019
This is an example of what happens when politicians and far-left activists push a false narrative that ICE facilities are comparable to concentration camps.
An obviously unstable man armed with a rifle attempts to blow up an ICE detention facility in Tacoma Washington following protests hours earlier.
WASHINGTON – An armed man was fatally shot early Saturday during a confrontation with police after he hurled incendiary devices at a Washington state immigration detention center, Tacoma police said.
The shooting occurred about 4 a.m. local time outside the US Immigration and Customs Enforcement’s Northwest Detention Center, where the gunman attempted to set the building and parked cars on fire, according to police spokeswoman Loretta Cool.
Authorities did not immediately identify the gunman, saying in the statement the “medical examiner will release the identity of the victim when it is appropriate.”
The assault on the privately-run immigrant detention facility came amid protests over ICE plans to begin the previously postponed raids across the country on Sunday. The goal is the arrest of thousands of migrant families who already have court orders to be removed, according to US officials.
A peaceful rally against the raids at the Tacoma detention center had ended about six hours before the shooting, Cool said. […]
Police said the man set a vehicle ablaze in the center’s parking lot and attempted to ignite a propane tank with a flare to set the building on fire. Officers called out to the man and shots were fired, according to a police statement. It’s not known whether the man fired on the officers, Cool said.
The gunman died at the scene; four officers involved in the shooting were placed on administrative leave per department policy. The incident is under investigation. (more)
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This death is directly attributable to the dangerous incitement by politicians and immigration activists. However, watch the media run cover for those who advocated for exactly this type of Antifa resistance violence.
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Thailand the New Safe Haven?
Armstrong Economics Blog/Southeast Asia
Re-Posted Jul 9, 2019 by Martin Armstrong
The dollar decline against the Thai Baht is starting to impact both a trading perspective as well as economic. Thailand’s central bank is worried about the decline in the greenback against baht. They fear that the U.S. keeps a watchful eye out for signs of unfair currency policies. Indeed, the bureaucrats are clueless with respect to currency trends and prefer to chalk it up to the political manipulation rather than free market movement. Bank of Thailand officials intensified verbal intervention trying to create resistance in the baht as Senior Director Don Nakornthab announcing he was “worried” last week about the monetary authority and how they were thinking about how the dollar can be supported. He also came out and spoke of a possible interest-rate cut.
The baht has climbed 8.3% against the dollar in the past year and has been the best performer globally, It’s viewed as a safe haven given Thailand’s history of current-account surpluses and near-record foreign reserves. However, Thailand has also become a destination for many people seeking shelter from the West. Those seeking to retire have found a safe place to hide and the capital inflows have been rather strong. Thailand has also been regarded as a safe-haven from many within Asia as well, and that includes Japanese.
Trump’s Federal Reserve nominee Judy Shelton & Gold
Armstrong Economics Blog/Economics
Re-Posted Jul 8, 2019 by Martin Armstrong
QUESTION: Hello
Where do you guys see as the next World economic conference in 2020?. Will there be another one in Asia? or Europe?
Also, I wanted to try to give this question to Marty, although I never had the luck to get his response… more than once. “Trump just announced to nominate Judy Shelton as the next candidate for the Fed chairmanship. Judy has been promoting to peg the dollar to gold and going back to Gold standard once again, What do you think about this?. Is it possible for the Fed to go back to Gold standard?. I thought we’ve much more issues when we had Gold standard, why are they keep pushing for this agenda?.”
Thank you.
CK
ANSWER: We have not yet decided where to hold the next overseas WEC. Given the seriousness of things developing in Europe, we may hold it in Germany. This is still in question.
President Trump’s Federal Reserve nominee Judy Shelton has long been a proponent of free trade and once advocated for an open border with Mexico back in 2000. Shelton would not be the first free trader to get a top job from Trump. Larry Kudlow, the president’s top economic adviser, is a longtime friend of Shelton and has been a “free trader” who initially criticized Trump’s calls for tariffs. Trump explained to him that free trade will never exist without using tariffs as a negotiating strategy. Indeed, Trump offered to drop all tariffs with Europe if they would do the same — France refused. Trump’s prior Fed nominee, Stephen Moore, also fits this pattern of free trade. I have known Steve over the years and he backed out because of the onslaught of personal threats and attacks against him and his family by the left. Herman Cain also dropped out of consideration for similar reasons.
Last year, Shelton called for a “new Bretton Woods conference,” akin to the 1944 meeting that established the post-war economic order, perhaps to be held at Mar-a-Lago, where a return to the gold standard could be considered. “We make America great again by making America’s money great again,” she wrote in the journal of the Cato Institute. This nostalgia with a return to the gold standard is really insane. The very reason Bretton Woods collapsed was that you cannot fix or peg the dollar to gold while you continue to create dollars without restraint. You would think a third grader would figure that out, but those in power seem to understand less about reality for they spend too much time talking among themselves.
Yet the idea that every US dollar should be backed by a small amount of actual gold may seem to be a popular idea and enthusiasm for a return to the gold standard has become more prominent since Trump’s most recent nominees to fill the vacant Federal Reserve governorship have endorsed a return. The problem with this idea is that the entire socialistic agenda has to come to an end. You cannot run deficits perpetually and we can not continue to accumulate debt with no intention of ever paying anything off.
The only way to return to a gold standard is to abandon the entire political agenda currently. When the left is advocating the Modern Monetary Theory of endless creation of money, the gold standard represents the extreme in the opposite direction. We die by hyperinflation on the one side or deflation on the opposite. Both will lead to the destruction of Western Civilization as we know it.
I fully agree that we will be forced into a new Bretton Woods meeting probably 2021/2022. But make no mistake about it, a serious political reform will be required.
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Centinel2012 