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Economy

2017: The Year When the World Economy Starts Coming Apart

Some people would argue that 2016 was the year that the world economy started to come apart, with the passage of Brexit and the election of Donald Trump. Whether or not the “coming apart” process started in 2016, in my opinion we are going to see many more steps in this direction in 2017. Let me explain a few of the things I see. [1] Many economies have collapsed in the past. The world economy is very close to the turning point where collapse starts in earnest.  

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Ethnic Diversity and the Economy

This article will examine the link between ethnic diversity and economic success at the national, local, and group level. As will be seen, though not definitive, evidence at each level of aggregation suggests that ethnic diversity has a negative impact on economic prosperity. Before turning to the empirical evidence, let’s take a moment to see why, theoretically, ethnic diversity might be good, or bad, for the economy.

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The Real Obama Legacy, Part 2: The Economy

See also Part 1 Shortly after his inauguration in 2009, President Obama invited Republican leaders in Congress to the White House to discuss their proposals for stimulating the economy. In this gesture of goodwill he failed to mention that House Democrats had already drafted and passed a stimulus bill without consulting them. Every GOP idea had been left out.

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Nothing grows Forever

One serious predicament we face is that the current leaders in the halls of monetary and political power do not appear to understand the dimensions of our situation. The mind-boggling part about it is that the situation is easy to understand. Our collective predicament is simply this: Nothing can grow forever. Sooner or later, everything must cease growing, or it will exhaust its environs and thereby destroy itself.  The Fed is busy doing everything in its considerable power to get credit (that is, debt) growing again so that we can get back to what it considers to be “normal.” But the …

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“Fiat Money Quantity” & $11,000 Gold

It is time to revisit the Fiat Money Quantity (FMQ), which totals US dollar money deposited in the banking system, the commercial banks’ money on deposit at the Fed and physical cash. Besides alerting us to how the expansion of fiat money is progressing, an objective of this exercise is to give some guidance on the price relationship with gold. It is particularly appropriate at a time when banking analysts have turned generally bearish, believing that the rally in gold is now over. The idea behind FMQ is to define the quantity of fiat money, which can then be compared …

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Amerika’s Planned Economy Will Fail

President Woodrow Wilson was pivotal in the birth of The Amerikan Nation. One of the first all-in Progressives to gain power in the United States, Wilson wanted more and more aspects of life to be centrally controlled by the state under the excuse of ideological “good.” One particularly nefarious aspect of his power lust was his desire to grab the joystick and play the economy like a cheesy, old Atari game. He passed the Federal Reserve Act of 1913 and started the USSA down the road to serfdom and a planned economy.

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Hispanic Immigration and the Demographic Decline of America

Facts about Hispanic immigration to America are often obscured by statistics about “immigrants”. Such numbers are misleading, as not all American immigrants are Hispanic. To remedy this problem, the current post will look at various aspects of the Hispanic American population which are cause for concern. As will be seen, Hispanic Americans are, in many measurable respect, more problematic than White non-Hispanic Americans. Because of this, increasing the proportion of our population which is Hispanic via immigration will damage America in many predictable ways. Moreover, contrary to common mythology, a multitude of studies have shown that Hispanics do not assimilate to …

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Robin Hood in Reverse: Buffett, Gates, Zuckerberg, Brin Steal From the Poor

Electricity Prices Set to Skyrocket Thanks to Rich Green Cronies We see it happening in Germany, Canada, South Australia, Spain, and wherever else it has been tried. Rapid politically-driven construction of big wind and big solar projects drives up the cost of retail electrical power, hurting the poor and benefiting the well-connected green-crony rich. It’s not the demand for more electricity that’s driving construction [of giant wind farms], but rather the government’s preferential tax treatment and counterintuitive energy mandates… Warren Buffett has admitted as much. In 2014 he explained: “I will do anything that is basically covered by the law …

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WARNING: The Coming Collapse Of U.S Net Worth Will Wipe Out Millions Of Americans

As the Financial Circus continues today, pushing down the precious metals prices, millions of Americans are going to get wiped out when the collapse of U.S. net worth begins in earnest.  Anyone with a tad bit of common sense realizes these financial markets today are totally disconnected from reality. With 90% of the U.S. media now in control by six large mega-corporations, Americans have no idea just how bad the U.S. financial system has become.  News stories today that would have caused a stock market crash and a spike in the precious metals years ago… no longer are a realistic …

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Huge Victory For Gold And Silver Markets As Judge Orders Manipulation Lawsuit Against Gold-Fixing Banks To Proceed

In a long-awaited decision, a US Federal Judge today ruled that investors may pursue antitrust and manipulation claims against ScotiaBank and HSBC Holdings, clearing the way for silver manipulation price-fixing litigation and potentially opening up the spigot for countless similar such lawsuits. Back in April, precious metal traders felt vindicated when Deutsche Bank agreed to settle a July 2014 lawsuit alleging precious metal manipulation by a consortium of banks. As a reminder, In July 2014 we reported that a group of silver bullion banks including Deutsche Bank, Bank of Nova Scotia and HSBC (later UBS was also added to the …

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MUST SEE CHARTS: The U.S. Govt. Financial Disaster vs. Gold & Silver

The financial disaster taking place at the U.S. Government costs one heck of a lot of gold and silver.  I doubt many precious metals investors understand the tremendous amount of gold and silver it takes to service the U.S. debt or supplement the massive budget deficits. I was actually quite surprised by the results when I compared the calculations.  In 2015, the U.S. Federal Government paid $402 billion just to service the interest on its debt.  This figure can be found at TreasuryDirect.gov.  According to the Federal Reserve Q1 2016 Statistical Release, the U.S. Federal Government spent a total of …

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Everything You Need To Know About Gold In 50 Stunning Slides

Pater Tenebrarum via Acting-Man.com, A Companion Update to this Year’s “In Gold We Trust” Report Our good friends Ronnie Stoeferle and Mark Valek of Incrementum AG have just published a new chart book, which recaps and updates charts originally shown in this year’s 10th anniversary edition of the “In Gold We Trust” report and provides an overview of recent developments relevant to the gold market. The chart book can be downloaded in PDF form via the link at the end of this post.

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Extensive Immigration Study Finds Impact On “Aggregate Wealth Of Natives Is, At Best, A Wash”

Immigration has been and will continue to be a hot button topic in the 2016 presidential campaign.  Trump has called for a wall along the U.S. southern border with Mexico and a halt to all immigration from certain “countries of concern to national security.”  Meanwhile, Hillary has called for more relaxed immigration policies that would grant illegal immigrants a path to citizenship and a surge in Syrian refugees. But, no matter where you stand politically on immigration, a group of the nation’s “smartest” professors from the most elite schools in the country recently came together to publish a 500-page study …

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The (160 to 1) Gold-Silver Ratio Every Investor Needs To Know About

According to my new research, there is a very important Gold-Silver ratio that every precious metals investor needs to know about.  While most precious metals investors are familiar with the Gold-Silver price ratio of 68/1 (presently) as well as the Silver-Gold production ratio of nearly 9/1 (2015), they have no idea about an even more important ratio that I will explain below. Before I get into this important Gold-Silver ratio, let’s quickly examine some of the historic ratios listed above.

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Robots Inherit the Farm

The focus of automation in farming has shifted from assisting humans to replacing them More The average age of Japanese farmers is 67. Across all developed countries, the average age of growers is 60. Robotics and automation technologies are just now reaching the stage where agricultural robots can replace human farmers for many or most crop growing tasks.

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This One Chart Should Drive Investors Into Buying Gold & Silver

The U.S. financial system is in serious trouble and this one chart confirms it.  Investors who understand the negative consequences of this chart would be buying physical gold and silver hand over fist.  Unfortunately, Americans have been put to sleep by the Mainstream media as they continue to report that “business as usual forever and everything will be okay.” However, the opposite is the case as the U.S. economy and the financial system continue to disintegrate under the forces of massive debt, zero interest rates and a collapsing energy industry.  This is not a situation that will continue for many …

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