Lord Love a Duck (Bob Moriarty)

http://www.321gold.com/editorials/moriarty/moriarty011418.html

I am too much like Bob to disagree with much he says. I am not sure how BitCOIN works, but I do see that it allows money to be transferred without government (or banking) oversight, which means it is ideal for drug dealers, gamblers, tax cheats and terrorists, and those people will pay a premium in order to allow the fence to transport their (stolen, illegal, seditious) goods into real dollars. The US Federal Reserve is also a “fence” that washes bad corporate and mortgage bonds with good taxpayer owned Treasury Bonds, (the QE program – and the associated liquidity – which all the major central bankers are doing is the reason stock markets are going up in sync and the reason behind the rumor that the global economy is improving.)

The dollar (as are all currencies) is engaged in competitive devaluing, to bring jobs back to America. (That is our dollar policy anyway.) Once the demographic which elected Trump, the sixtyish crowd, (late Boomer, early Millennial) who were galvanized by the mandated Medical Care program they could not afford, once that group finds that a comfortable semi-retirement is no longer possible, (and that pension funds have cut benefits, and government guarantees are pennies on the dollar – see below) they will go back to work at the factory doing one of those recycled jobs from China, for ten dollars an hour, just to MAKE ENDS MEET. They will backtrack a bit on their populist fury.

This is no coincidence, and the Fed is raising interest rates to keep money flowing into the US bond market, but so far it has only juiced stocks, The natural course of things at this point is lower interest rates, much lower. The Fed is fighting itself to keep the dollar from nose diving and to keep stock market profits, and capital gains taxes rolling into the very thin coffers of government, made thinner yet by the tax cuts. Next year when the tax cuts are in place there is less incentive to protect tax revenue, that may be when Atlas Shrugs.

Stories of the Great Depression told by my mother, remind me that life is not fair, and the politics of resentment is not a reasonable solution. An anecdote about their neighbor who worked for the railroad and never missed a days work (and stole pies from my grandmother’s porch) . My grandparents were REPUBLICANS, my grandmother let hobos stay in the basement, and washed their clothes and fed them. They in turn marked the rock by the railroad tracks pointing the way to our house.

The sheer size of government today will overwhelm out resources, in the 30’s there was no SSN, Medicare, or DOD. There was no war (yet) and they called it the Department of War, and once we went to war full time they changed the name to the Department of Defense. My grandparents were able to save their home with an FHA loan. Their bank account was confiscated, ninety cents on the dollar. My mother served in the role of indentured servant, working at odd jobs and bringing the money home. She also played mother to three younger sisters.

Like Bob I feel I am perhaps too old to make these calls,  and if history is no guide, you should acquire all the debt you are allowed. You should eschew traditional forms of wealth like gold and silver and buy digitally stored shares of a new coinage which is ephemeral but promises meteoric profits, and has the promise anyway of bringing about an entirely egalitarian monetary system.  Bitcoin is populist anger at the deep state monetary system run by Central Bankers for the benefit of the 1%, (and their proto-nationalist, racist, ethnic and class conscious means of repression). It may cost you to play this game of storm the Bastille, and if any revolution could ever do what it promised how did we get here?

 

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