Arizona legal tender bill SB1096 attempts to account for details of implementation which Governor Jan Brewer said was the main reason for her veto despite enthusiastic support of her constituency in 2013.
Feb 05 2014
Despite silence and zero denials from the conventional media outlets, our post Media Gets It Wrong — Debt Ceiling Suspended (Permanently), Not Raised, appears to have got it right and offers a cautionary observation on prospects for the value of the Federal Reserve’s dollar in the months and years ahead.
Despite a big to-do about the impending Congressional battle over raising or refusing to raise the debt levels in one way or another (ceiling began in 1917), the newly enacted law of the land in the U.S. remains unmentioned in mainstream media, with annual theater proceeding just as it has for hundreds of years.
On October 20, 2013, U.S. law changed to transfer final spending authority from the legislative to the executive branch. The little-noticed yet epic transfer of power was enacted as part of the Continuing Appropriations Act passed on October 17, 2013.
Jan 18 2014
Following up on promises made in his State of the Union address of January 2014, President Barack Obama earlier this month rolled out his signature new program to uplift struggling communities, with the announcement of his first five Promise Zones. But is this “new” program anything more than a repackaging of ideas and initiatives hatched in the 1970s and 1980s that have yet to succeed? Is it possible to force real economic growth by aiming taxpayer-funded resources at specific locales?
On January 9, Obama announced the first five of 20 Promise Zones to be launched in 2014: Philadelphia, Los Angeles, Southeastern Kentucky, and the Choctaw Nation of Oklahoma. According to a White House fact sheet:
Jul 29 2013
With the United States in the midst of the peak driving and vacation season, gasoline prices yet again are rising. According to a recent study by the AAA, prices are 17 cents higher per gallon than a year ago and are projected to rise further by Labor Day. Though U.S. inventories are high, and a strong dollar lurks, the key factors driving up prices are the expectation of recovery and at the same time, a shortage of renewable credits that allow refiners to supply non-ethanol blended gasoline to the domestic market. Goldman Sachs expands a bit on this federal "food to fuel" mandate:
Jul 10 2013
In a 2011 interview, hedge fund principle, Kyle Bass spoke of "when [he] asked a senior member of the administration last week, 'how are we going to grow exports if we wont allow nominal wage deflation?'"
The response was: "We're just going to kill the dollar."
"Oh, okay, more you mean," Bass retorted.
The Federal Reserve Bank hasn't disappointed.
"After such a notable correction in the past 9 months, the precious metal once again becomes a very attractive global asset if monetary policy in the largest economy of the world spins out of control," remarks Jones Trading.
Even if policy is not perceived as "out of control," surely it snaps of the 100bp tightening Fed-Chairman Ben Strong pulled in early 1928, only to back-pedal afterward, admitting his error, and reversing course with a new rule, by September of that year:
Jul 03 2013
On accounts both surveillance and labor.
In 1973, then-U.S. President Richard Nixon said citizens would be okay with the National Security Agency (NSA) doing CIA work, spying on American telecom “to control [the freedom of assembly and speech of] people protesting the Vietnam War.” There’ve been upgrades post 1984, but post telephony, Internet surveillance was “legalized” three years after broad adoption by 1999.
Jun 03 2013
As we have noted many times in the past, the early 1970s marked a great dividing line for world gold markets and the gold standard. The Wikileaks cache of diplomatic correspondence from the period allows us to witness the extensive involvement of governments, international organizations and central banks in the gold market—involvement that continues to this day.
Viewed through the Wikileaks time capsule, although they shudder at the thought of mere individuals using gold, these large institutions use the precious metal for transactions continually, as a matter of course.
On August 15, 1971, Richard Nixon unilaterally took the United States off the gold standard, ending convertibility of the U.S. dollar into gold. His action sent the international markets scrambling to establish new grounds for a global monetary system. Key to the discussions was the role of gold. In November 1973, the United Kingdom signaled its desire to keep gold out of central bank settlements:
May 26 2013
The People’s Bank of China (PBOC), China’s central bank, holds a vast amount of foreign currency in reserve. At the end of 2012, China’s hoard stood at $3.3 trillion and rising, a 700% increase since 2004 and enough to purchase the gold reserves of every central bank on Earth twice over. China’s reserves are far and away the largest of any central bank.
Most of China’s foreign exchange reserve comes from the country’s huge trade surplus. Global demand for Chinese goods provides a stream of foreign currency into manufacturers and suppliers. Businesses in turn deposit the dollars, euros, pounds or yen in exchange for Chinese yuan, and the foreign notes end up at the People’s Bank of China. China also accumulated foreign currency to maintain the yuan at an artificially low rate of exchange. A low exchange rate keeps the price of Chinese exports low and reinforces trade surpluses. Through 2010, China pegged the renminbi to the dollar. Since then, valuation is tightly controlled within a small range.
Mar 29 2013
Ever since President Richard Nixon unceremoniously withdrew the U.S. from the Bretton Woods international monetary agreement in 1971, effectively ending the Gold Exchange Standard, many experts, economists and conspiracy theorists have speculated on the role that Western governments and central banks have played in suppressing the price of gold. According to Dutch economist Jaco Schipper, the memoirs of Dr. Jelle Zijlstra offer further evidence of a gold price suppression scheme carried out by Western central banks.
Jan 28 2013
When the word is spoken, the United States of America comes to mind. Yet America titles an entire hemisphere, divided into both north and south, which is promptly forgotten by the legacy media. Not only are the lesser-debt-riddled western countries richer, they are many times more exciting. Then outgoing Chinese president Hu Jintao originally called “the present U.S. dollar-dominated currency system a product of the past,”and the “dictatorship” of the dollar swipe came from Venezuela’s Hugo Chavez.
Despite varying cultures and geographic locations, nations of all stripes are encouraging one another to move away from trade in dollars. Southern American nations in particular, just like families globally, have sought independence from the silent tax of the ubiquitous dollar, a tax which is currently set to increase alongside the rate of increasing supply.