bankers

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Sympathy For The Devil?

Trouble in paradise for the bankers
Friday, May 5, 2017, 3:32 PM

We're at the point where those at the apex of power are becoming increasingly desperate to maintain their unfair advantage.

And as the economic pie refuses to grow due to the twin overload of too much debt and declining net energy, these apex predators will turn on each other -- first to maintain their spoils, and then simply to survive. » Read more

Podcast

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Bill Black: Why The Banksters Are Winning

Without effective prosecution, the banks are untouchable
Sunday, November 1, 2015, 2:42 PM

Bill Black, expert on Wall Street control fraud, returns to discuss the gross abuses of power rampant in our financial, political and judicial systems. In his estimation, regulation and enforcement of financial crimes have been completely gutted and de-fanged -- intentionally by corrupt politicians, and unintentionally by inept ones. All while the Justice Department turns a blind eye. » Read more

Blog

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2014 Year in Review: Part 2

Will 2015 be the year it all comes tumbling down?
Friday, December 19, 2014, 12:27 PM

This year has been all about risk—existential risk. Some of it seemed to dissipate and some lingers.  Market valuations remain risky—regression to the mean could easily provide a 50% haircut and more if we observe regression through the mean. This has not come to pass, but the risk is very real.

Those who seek risk in markets will eventually find it. » Read more

Blog

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2014 Year in Review

The year we piled up risks like a global game of Tetris
Friday, December 19, 2014, 12:27 PM

I have not seen a year in which so many risks—some truly existential—piled up so quickly. Each risk has its own, often unknown, probability of morphing into a destructive force. Groping for a metaphor—I love metaphors and similes—I feel like we’re in the final throes of a geopolitical Game of Tetris as financial and political authorities race to place the pieces correctly. But the acceleration is palpable. The proximate trigger for pain and ultimately a collapse can be small, as anyone who’s ever stepped barefoot on a Lego knows. » Read more

Podcast

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Dan Ariely: Why Humans Are Hard-Wired To Create Asset Bubbles

Our evolutionary programming often works against us
Saturday, February 15, 2014, 1:25 PM

Renown behavioral economist Dan Ariely explain why humans are biologically wired to make irrational decisions when money is involved. It's a case of our evolutionary wiring interfering with the decisions we face in a modern world very different from the one our ancestors adapted to.

In this podcast, Chris and Dan explore the human cognitive triggers that have led us to our third major bubble in 15 years (tech stocks, housing, credit) and why our natural programming often works against our best interests. In certain cases, like the banking sector, bad decision-making has become so ingrained in our institutions that Ariely thinks the "clean slate" approach is our best option should we have the courage to deploy it: » Read more

Blog

Bankers Own the World

And are ultimately destroying it
Tuesday, July 23, 2013, 1:41 PM

Today, some of the most celebrated individuals and institutions are ensconced within the financial industry; in banks, hedge funds, and private equity firms. Which is odd because none of these firms or individuals actually make anything, which society might point to as additive to our living standards. Instead, these financial magicians harvest value from the rest of society that has to work hard to produce real things of real value. » Read more

Blog

Getting Our Story Straight is a Matter of Life & Death (Literally)

Good narratives lead to good decision-making
Sunday, May 12, 2013, 11:52 PM

The stories we tell ourselves have great influence over our destiny. These narratives shape our belief system and thus, in turn, the decisions we make.

Find yourself making poor choices? That's likely due to a fallacy in one or more of the beliefs you hold.

Psychology and social science has re-discovered this key learning: We can improve our odds of success in life by improving the stories we tell ourselves. » Read more

Daily Digest

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Daily Digest 5/7 - France's Budget Gap Widens, Australia Faces Decade Of Debt

Wednesday, May 8, 2013, 10:03 AM
  • Unemployment haunts Social Security recipients
  • Spanish Banks Refinanced, Restructured $272.4 Billion in Loans
  • Australia faces decade of debt, economists warn
  • France's budget gap widens in March
  • L.A. city employees urge leaders to go after uncollected fees, taxes to balance $7.7B budget
  • Copper theft epidemic has lawmakers looking for answers
  • Wall Street sees Fed buying $1.25 trillion of assets in stimulus: Reuters poll
  • India's cheap food plans to prove costly for government
  • French Industrial Output Drops as Hollande Aims to Revive Growth
  • Wichita school district counts record number of homeless children
  • Greenspan-Era Faith in Fed Seen With Bernanke: Chart of the Day
  • Many Americans say they can't retire until their 70s or 80s
  • Bankers Warn Fed of Farm, Student Loan Bubbles Echoing Subprime
  • Australian Central Bank Cuts Key Rate to Historic Low
  • New red light camera law could raise cost of appeals
  • Moody’s Says Cities View ‘Strategic Default’ as Less Taboo
Insider

Protecting Your Wealth from Deflation

And from a broken system run for the benefit of the banks
Monday, April 15, 2013, 5:18 PM

Executive Summary

  • The current gold slam has *nothing* to do with the fundamentals for precious metals, which are very favorable right now
  • How bad would deflation be?
  • Evidence that deflation is arriving
  • Why our current monetary system has become so compromised by the banks
  • How to best protect your wealth from both deflation and the banks

If you have not yet read Part I: This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks, available free to all readers, please click here to read it first.

About Those Wealth Transfers

The biggest news of the recent past is the flow of gold from West to East. 

(Source)

With China importing 835 tonnes of gold in 2012 that we know about (and they may well be doing more under the table for official purposes) and also standing as the number one producer of gold, with ~360 tonnes of domestic production, none of which is exported, China is consuming at least 44% of total yearly world gold production.

Connect that with India importing between 200 and 300 tons per quarter (2011 imports were 967 tonnes, and 2012 was 864 tonnes), and this represents another 33% of total world mine output.  Add in Russia buying more official gold, and you suddenly find that a commanding proportion of the newly mined gold in the world is headed East, where it used to stay largely in the West.

To be clear, I view gold as money and therefore wealth itself.  Everything else that can be manufactured out of thin air is merely a claim on wealth.  In these terms, the West is slowly but steadily bleeding control of wealth to the East, something I thought our leaders were both aware of and focused on.

Knowing the lower prices will only exacerbate this West-to-East flow, I therefore thought that the bullion banks and central banks would not have dared push that dynamic any further.   But apparently no, obviously I was wrong, which pains me on several levels.

Add to this the various things going on in the world today, and I honestly thought we were in the most gold-favorable landscape of my life.

Consider:

  • Negative real interest rates (powerfully gold- and commodity-friendly throughout history)
  • North Korea threatening nuclear and conventional war
  • Open confiscation of wealth in Europe from bank accounts
  • Japan doubling their monetary base in a brazenly desperate bid to stoke inflation by attacking Japanese trust in their own currency
  • Extremely unfavorable bond yields up and down the yield ladder
  • Continued European stress and discord with the possibility of a Eurozone disintegration

Taken together, this level of system, sovereign, and institutional uncertainty is about as gold-friendly a situation one could concoct... » Read more