Back from the Corn, Congress None the Wiser

7/27/2011 Portland, Oregon – Pop in your mints…

We are back from the corn fields and rest assured that despite the flooding on the Missouri, the corn and soy harvests look promising. 

Much to our surprise, the US Congress has not yet resolved its debt cieling standoff.  We have nothing to add other than this is either insanity in action or a blatant attempt to force money out of Treasuries and spark hyperinflation.  Given June’s negative CPI reading (which no thinking person should take seriously), we are beginning to think the latter is true.

We offer today’s Key Indicators for your perusal and enjoyment.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for July 27, 2011

Copper Price per Lb: $4.41
Oil Price per Barrel:  $97.23

Corn Price per Bushel:  $6.91  
10 Yr US Treasury Bond:  2.98%

FED Target Rate:  0.06%  JAPAN HERE WE COME!

Gold Price Per Ounce:  $1,614 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.2%
Inflation Rate (CPI):  -0.2%!!!  PULL OUT THE HELICOPTERS!!!
Dow Jones Industrial Average:  12,302  TO THE MOON!!!
M1 Monetary Base:  $1,944,400,000,000
RED ALERT!!!
M2 Monetary Base:  $9,092,700,000,000 YIKES!!!!!!!

 

*See the MINT Perceived target Rate Chart.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.

Waiting on Armageddon in the Bond Markets, A Freaky Chart form the BIS

7/18/2011 Portland, Oregon – Pop in your mints…

We are taking the week off here at The Mint.  As the world observes the pitched battle between default and inflation, we will be roaming the cornfields of Northeastern Nebraska waiting to attend a cousin’s wedding.

To default or not to default, that is the question.  The financial world is on the edge of its seats waiting for the answer.  What will congress do?

Regular Mint readers know that once QE started, the US essentially defaulted.  Everything that is happening now is a mere attempt to avoid openly admitting it.

There has been a startling graph from Bank of International Settlements that has been circling the internet and is worth a look.  You may want to ask the children to leave the room, it is downright scary.

"AAA" Government dominates the market and it is beginning to smell funny!

Do you now understand why what happens in Greece, Ireland, Portugal, Spain, Italy and the US in the coming weeks is of the utmost importance for the bond markets?  In a very short period of time, sovereign debt issues have become predominant.  The scary part of the chart is that any sane person can tell you that there simply ain’t that much AAA rated paper out there, no matter who issues it or who rates is.

With what is sure to be an action packed week as the financial world braces for the next of its many brushes with Armageddon.  Not matter what happens, the only clear winner promises to be the volatility index (which you can conveniently trade as VIX).  If there truly is the threat of a default, try TBT, the Ultrashort US Treasuries EFT.

Better yet, head down to your local coin shop, load up on physical Gold and Silver, and come roam the cornfields with us, worry free!

Stay Fresh,

David Mint

Email: davidminteconomics@gmail.com

P.S. If you enjoy or at least tolerate The Mint, please share us using the buttons at the top of this post. If you feel that you can’t go another day and risk missing The Mint, please register by clicking here. Thank you!

Key Indicators for July 18, 2011

Copper Price per Lb: $4.39
Oil Price per Barrel: $97.12
Corn Price per Bushel: $7.01
10 Yr US Treasury Bond: 2.91%
FED Target Rate: 0.06% JAPAN HERE WE COME!
Gold Price Per Ounce: $1,594 PERMANENT UNCERTAINTY
MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.2%
Inflation Rate (CPI): 0.2%
Dow Jones Industrial Average: 12,479 TO THE MOON!!!
M1 Monetary Base: $2,027,500,000,000 RED ALERT!!!
M2 Monetary Base: $9,265,600,000,000 YIKES!!!!!!!

*See the MINT Perceived target Rate Chart. This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy. This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.

Watch “Ron Paul asks Ben Bernake – Is Gold Money? July 13, 2011” on YouTube

Ron Paul asks Ben Bernanke at the end of the clip, point blank, “is gold money?” His answer is amazing:

By the way, the right answer is YES!

Bernanke fires up the Helicopters and Precious Metals Blast off!

7/13/2011 Portland, Oregon – Pop in your mints…

Today Bernanke went before the US Congress and gently laid down the gauntlet.  If Congress fails to raise the debt ceiling soon (by August 2nd, we are told), it could have catastrophic effects on the economy

Given that nearly the entire banking system on the planet depends upon the US Treasury being Grade A debt, Mr. Bernanke may again be credited with the understatement of the year!

We pity Mr. Bernanke.  He is like a pilot flying an Airbus aircraft that is stalling at extremely high altitute.  We don’t know much about aircraft but we understand that Airbus aircraft, with their European design slant, do not give a pilot much freedom to override the plane’s automated systems.  It assumes that all of the necessary corrective actions can be pre-programmed and, if the plane begins to stall, the computers take over to attempt to correct the problem.

Actual Airbus pilots are free to dispute the merits of our oversimplification.  We just needed a metaphor.

Back to Bernanke, with the autopilot mechanism failing, the pilot does not know what to do.  If the US Congress had dutifully raised the debt ceiling as it had 94 times in the past, as the Airbus autopilot manual said it would, Bernanke’s reaction to the most recent US jobs report would have been to simply propose a third round of quantitative easing (read: money printing or counterfeiting of currency).

On the Airbus, he would get on the intercom and say “please fasten your seatbelts until we pass through this patch of rough air.”

However, the failure of the US Congress to reach a deal to raise the debt ceiling has thrown a wrench in his plans.  What is his plan now?  Think helicopters, Zimbabwe, Gideon Gono.

Mr. Bernanke is going on a safari!

Yes, fellow taxpayer, with each day that passes, it is becoming clearer to the majority that Mr. Bernanke is unwittingly following in the footsteps of none other than Gideon Gono.  Some may recall that Mr. Gono, the Governor of the Reserve Bank of Zimbabwe, was forced to “do extraordinary things that aren’t in the textbooks,” meaning that he oversaw the printing of large amounts of his country’s currency which produced an amazing modern example of hyperinflation.  

In an interview with Newsweek in early 2009, Gono offered an explanation for his actions and predicted that the US would do the same, as it has:

“I’ve been condemned by traditional economists who said that printing money is responsible for inflation. Out of the necessity to exist, to ensure my people survive, I had to find myself printing money. I found myself doing extraordinary things that aren’t in the textbooks. Then the IMF asked the U.S. to please print money. I began to see the whole world now in a mode of practicing what they have been saying I should not. I decided that God had been on my side and had come to vindicate me.”

The hyperinflation in Zimbabwe led to shortages of real goods and destroyed the economy.  Why would Mr. Bernanke’s experiment end any differently?

Meanwhile, over in the Eurozone, the Airbus is in rapid descent and everybody on the plane is offering ideas as to what went wrong and how to fix it.  Its auto-pilot has not been programmed to deal with the failures the plane is experiencing and as the pilots and passengers engage in a heated debate, none are able to grab the controls much less safely land the aircraft.

 it will not be long before impact and the smarter passengers are starting to grab for the parachutes made of Gold and Silver.  Gold closed up almost 1% to a record of $1,583 and Silver gained nearly 6% on the day.

Back in the US, whether or not Congress passes legislation to raise the debt ceiling is irrelevant.  The US Treasury will borrow and the FED will print even without Congressional approval.  That is what makes modern Government fun, if you don’t like a rule, just ignore it and claim that you were exercising “Leadership.”

All of the countries in the Eurozone will soon surrender their sovereignty to Germany and the IMF in exchange for the “privilege” of using Euro as currency.  The ideological divide that is being exposed in the US may eventually lead to civil war.

But these events may be small compared to what is occurring in the Middle East.  Iran opened its own international Crude Oil exchange today which is akin to declaring war on the western governments and banking interests.

And keep your eyes on Palestine.  The UN vote on Palestinian statehood in September is eerily similar to the vote 62 years ago when the UN accepted Israel as an independent state.  Our guess is that this vote will spark events there that will capture the attention of the whole world.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

P.S. 

P.S.  If you enjoy or at least tolerate The Mint, please share us using the buttons at the bottom of this post.  If you feel that you can’t go another day and risk missing The Mint, please register by clicking here.  Thank you!

Key Indicators for July 13, 2011

Copper Price per Lb: $4.35
Oil Price per Barrel:  $97.83

Corn Price per Bushel:  $7.26  
10 Yr US Treasury Bond:  2.89%
FED Target Rate:  0.07%  JAPAN HERE WE COME!

Gold Price Per Ounce:  $1,582 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.2%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  12,492  TO THE MOON!!!
M1 Monetary Base:  $2,020,000,000,000 RED ALERT!!!
M2 Monetary Base:  $9,112,300,000,000 YIKES!!!!!!!

*See the MINT Perceived target Rate Chart.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.

Italians to join Europe’s needy, the parable of the Chiropractor

7/11/2011 Portland, Oregon – Pop in your mints…

Investors woke up today and wasted little time in marking down Italian sovereign debt, along with Spanish and Portuguese debt issues.  Why?  The story of the Italians is eerily similar to that of the Greeks, the Portuguese, and the Spanish.  Their government spends more than it takes in.

At this point, all readers of The Mint know that it is impossible for any Government to produce value.  Yet somehow, in our upside down, insane monetary system, it has become acceptable for the western governments to run a reasonable deficit to help pay for their role as the Robin Hood in the current welfare state model.  The European Union even went so far as to attempt to define what constitutes a reasonable deficit as 3% of a nation’s GDP per year.

Now if the government takes in 25% of national income in the form of taxes, which is not an unheard of (if anything it is a low estimate) and then borrows an additional 3% (which has proved an elusive target), then 28% of the welfare state’s economy is devoted to income “redistribution.”

While the term “income redistribution” does not fly well with most voters, the Government’s “investment” decisions are cleverly disguised as Social Security, Health Care, Defense, and Education.  Most will recognize that these are important investments, which leads us to the logical question:

Why leave these investment decisions up to the Government?

This question is rarely asked, and most seem content to let the Government continue in their collective role as Robin Hood.  It should come as no surprise, then, that a great deal of time and what would otherwise be productive energy goes into influencing Robin Hood’s decisions as to whom the poor are at the moment.  Bill Bonner at The Daily Reckoning calls this outsized effect of Government in the economy a “Zombie Takeover.

With the Zombies creatively destroying a minimum of 28% of GDP in a modern welfare state, perhaps it is a testament to the resilience and productivity of the citizenry that any real progress can be made under such circumstances.

Fortunately (or unfortunately for those in the zombie class) the insanity is coming to an end.  As the government’s destruction of wealth accelerates, even elected officials will have to admit that the bad decisions that all of this accumulated debt represents do not go away just because one denies that they exist.

In fact, attempts to solve the problem of too much debt by creating more currency are futile, as each unit of currency creates a unit of debt which must be dealt with at a later date.  This is the glory of modern monetary theory.  It binds the world together in slavery.  It is also its Achilles heel, which is now exposed, waiting to be stricken.

How and when will this finally occur?  It will be like the man with back pain who finally goes to visit the chiropractor.  The gradual spinal realignment that he had hoped to achieve by doing simple stretching exercises (austerity) is not taking place, in fact, his back problems have gotten worse.  Once in the exam room, he will be laid down swiftly on the chiropractor’s table.

Then chiropractor will move into place, interest rates will rise, and a series of pops will go off in the patient’s spine.  Naturally, the popping sounds are the troubled EU nations defaulting on their sovereign debt in unison, which is what is about to occur.

Will the patient then get up and go on his way, sore but better off for the treatment?  Or perhaps the better question is; do zombies even use chiropractors?

Meanwhile in the US, the political theater that is the debt ceiling negotiations may be the catalyst that sends the US Treasury market into a much deserved tailspin.  We have speculated about this almost incessantly and still cannot believe that it may happen.

But while the EU goes to the chiropractor, the US may prefer to rely on the prescription drugs of fiscal and monetary stimulus for as long as they appear to work in a futile attempt to reassure the zombies that all is well.

The US will simply destroy the value of the currency, completely and irreversibly.  Why else would they pick a fight with Iran at this point?

That makes each dollar that one holds like holding an M80 firecracker with a lit fuse.

How long will you hang on?

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

P.S.  If you enjoy or at least tolerate The Mint, please share us using the buttons at the bottom of this post.  If you feel that you can’t go another day and risk missing The Mint, please register by clicking here.  Thank you!

Key Indicators for July 11, 2011

Copper Price per Lb: $4.32
Oil Price per Barrel:  $94.99

Corn Price per Bushel:  $6.81
10 Yr US Treasury Bond:  2.92%

FED Target Rate:  0.07% JAPAN HERE WE COME!

Gold Price Per Ounce:  $1,554 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.2%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  12,506 TO THE MOON!!!
M1 Monetary Base:  $2,020,000,000,000 RED ALERT!!!
M2 Monetary Base:  $9,112,300,000,000 YIKES!!!!!!!

*See the MINT Perceived target Rate Chart.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.

Lavender Festival Helvetia

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If purple is your color, you simply can’t resist the scent of lavender, or you just want to have some good, clean fun on a perfect summer weekend, the Oregon Lavender Festival at the Helvetia Lavender Farm is right up your alley.

The event at the Helvetia Lavender Farm is part of the larger Oregon Lavender Festival which takes place at lavender farms all over the region.

Located at 12814 NW Bishop Road in Hillsboro, the Helvetia Lavender Farm is a combination lavender and Christmas tree farm which sits on rolling hills offering a spectacular setting for the fields of purple.  The farm boasts over 60 varieties of lavender and is run by Don and Nancy Miller.  Each year, the Miller family turns their farm into a celebration of all things purple for one weekend in July.

Naturally, the main attraction of the festival is the lavender, and a great deal of time is spent roaming the fields and gathering bunches to take home.  Beyond the purple star of the show, the festival features live music on the lawn, tea service in the pavilion, arts, crafts and games for kids, and Helvetia Tavern’s famous hamburgers.

With a line-up like this, the Oregon Lavender Festival Helvetia Lavender Farm has something for everyone.

Perhaps the most remarkable part of the festival, however, is that the proceeds from the event go to support Good Samaritan Ministries, which, headquartered in Beaverton, has ministries in over 37 countries.  The proceeds from the Lavender farm help to support widows and orphans in the Ukraine and Uganda.

Fields full of fragrant lavender, a full slate of events, and all to support a great cause.  What better way to spend a summer day in the Willamette valley?

To get to the Helvetia Lavender Farm from the Portland Metro area, take Highway 26 West to Helvetia Rd. (Exit 61), turn right on to Helvetia Road, go north 4 miles to Bishop Road, about one mile past the Helvetia Tavern, turn right on Bishop Road, then take the 2nd driveway to the right and follow the signs for parking.

Rasta Farmer

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Lavender Festival Helvetia

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Don’t be Fooled! June Unemployment Numbers cooked to keep interest rates and wages down

7/8/2011 Portland, Oregon – Pop in your mints…

Sound the alarms!  The today the BLS took the pulse of the labor market today and market observers jumped back, aghast that the patient, the US labor market, should be so weak.  According to the charts, he was well on his way to recovery.  After being in a coma for the past three years, it appeared that he would be back to his old self and dancing in the halls in a matter of months.

Now, the prognosis has taken a turn, albeit a small one, for the worse.

Here at the Mint, we take numbers with a grain of salt.  We have nothing against numbers; on the contrary, we are rather fond of them.  They give one the ability to appear to make sense of extremely complex phenomena.  They make mankind appear intelligent, cunning, even clairvoyant at times.

It should come as no surprise, then, that mankind, specifically those bent on “improving the world,” should place so much faith in them.  To understand and interpret numbers and then act on the data gives man a power rush that is exhilarating.

It is a fatal conceit.

It is illogical, perhaps insane, to think that something as complex as creation and the countless phenomena that occur every nanosecond can be adequately expressed (much less understood) in numbers.

On a small scale, such as a family farm, a small town, or even a remote island, numbers can prove very useful.  They can provide accurate, timely information about productivity and relative scarcity.  In these instances, numbers can be invaluable.

Begin to aggregate theses numbers and try to use them to understand phenomena on a large scale and they become not only devoid of meaning but dangerous.

Why does this happen?  Simply because the farther removed that the decision maker reviewing the number is from the processes on the ground, both in space and time, the less able he or she is to react in a coherent manner.  This, in a nutshell, is why Socialism, Communism, and any other form of Centralized planning or “world improvement” does not work on a large scale.

With this in mind, we will interpret today’s BLS unemployment numbers for you.  Economic observers have been trained to understand that 9.2% unemployment is bad for the economy.  Why it is bad, few stop to wonder, but that is a rant for another day.

It is simply understood to be bad, and since the economy needs to be “good,” the world improvers must do something.  What will they do?  First, they will use this as an excuse for the FED to keep the short term rates insanely low for a longer period of time.  This will not create employment but will create hyperinflation.

Second, the US Congress will raise the debt ceiling and resort to the Bush era style of stimulus, they type where every taxpayer gets a check in the mail from the Treasury.

Third, and most importantly, this announcement is a desperate attempt to keep domestic inflation in check.  Inflation, and then hyperinflation, will begin once wages increase.  The rise in unemployment sends the subliminal message to the working classes that they cannot demand raises because they are just “lucky to have a job.”

Are you really lucky to have a job?  The not so subliminal truth is that YOU ARE IRREPLACEABLE AND ARE WORTH MUCH MORE THAN YOU ARE CURRENTLY MAKING!

Lives and economies were never meant to be measured in numbers.  Numbers used to make large scale policies generally do more harm than good.  Numbers produced by a central authority often are done so either with the intent to deceive or are so untimely and incompetently compiled that they become deceptive as they do not accurately reflect present circumstances.

“Fear not, therefore; you are of more value than many sparrows!”

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

P.S.  If you enjoy or at least tolerate The Mint, please share us using the Facebook, Twitter, or other sharing options at the bottom of this post.  Thanks!

Key Indicators for July 8, 2011

Copper Price per Lb: $4.36
Oil Price per Barrel:  $96.20

Corn Price per Bushel:  $6.72
10 Yr US Treasury Bond:  3.02%
FED Target Rate:  0.07% JAPAN HERE WE COME!

Gold Price Per Ounce:  $1,544 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.2%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  12,657 TO THE MOON!!!
M1 Monetary Base:  $2,020,000,000,000 RED ALERT!!!
M2 Monetary Base:  $9,112,300,000,000 YIKES!!!!!!!

*See the MINT Perceived target Rate Chart.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.

Huddled Masses of European Capital Fly to US Shores

7/6/2011 Portland, Oregon – Pop in your mints…

The crisis in the Eurozone is getting too big to ignore.  The gig is up, the Greek Government is in default, and Portugal and a host of private lenders, amongst them the ECB itself, are on their way there as well.  So certain is this fact that Moody’s even went on record and took the small step of downgrading Portugal’s debt.

Naturally, the Europeans  can’t believe it.  Don’t they pay good money for these ratings?

Whatever Moody’s reasons for stating the obvious, the news is having the effect of sending money fleeing across the Atlantic to US Markets any which way it can.  Commodities, Stocks, Bonds, even Real Estate are being bid up today as the European Bond Market collectively exhales capital.

For the moment, inflation on this side of the pond is only moderately accelerating as much of the cash is trapped on the Ellis Island of the US Banking system at the FED member banks.

Send me your tired, wadded up Euro capital looking for a home!

But as any banker knows, if you can’t lend the money then excess cash begins to crush your balance sheet.  This is why it is probable that the US will participate in a Eurozone bailout.  Even the threat of US intervention should get this newly immigrated capital looking for a new home shortly after arriving.

The trillion dollar question is now begging to be answered, will the US avoid default and keep the mushroom shaped debt sponge intact or will the current stalemate in Congress finally put the squeeze on the debt sponge and unleash the 500 year inflationary flood onto American shores from which there is but on escape (buy gold, silver, or anything real)?

We may know the answer sooner than we think!

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

P.S.  For more ideas and commentary please check out The Mint at www.davidmint.com

Key Indicators for July 6, 2011

Copper Price per Lb: $4.30
Oil Price per Barrel:  $97.21

Corn Price per Bushel:  $6.47
10 Yr US Treasury Bond:  3.10%
FED Target Rate:  0.08% JAPAN HERE WE COME!

Gold Price Per Ounce:  $1,529 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  12,626 TO THE MOON!!!
M1 Monetary Base:  $1,954,300,000,000 RED ALERT!!!
M2 Monetary Base:  $9,098,400,000,000 YIKES!!!

*See the MINT Perceived target Rate Chart.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.


The Trophy Wife

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Spotted today at NW 9th and Couch. For the moment I am in awe. An urban art masterpiece!

Art on the Harlow Block – The Woodpecker

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Next up as one strolls Glisan in the Fire Engine red color which dominates this motif is the woodpecker. While each piece on the block shares a common color theme and for the most part size, the subject matter of each is unique enough that we may be witnessing the work of not one but several urban artists working in concert with one another.

What do you think? Please comment below!

What is so Complex about a Default? The Greek Bailout Highlights The Shortcomings of Debt as Money

7/5/2011 Portland, Oregon – Pop in your mints…

Another day, another Euro.  It appears that it is still all systems go for the Greek bailout.  Athens will get another shot of hot money in mid July and the charade will keep going on.

In the old communist days, the joke went “we pretend to work and they pretend to pay us.”  In the current socialized monetary system, the joke goes “we pretend to cut back and they pretend we will pay them back.”

As our astute fellow taxpayers are already aware, the Greeks have no intention of changing their ways.  Parliamentary promises and austerity measures are of little value when 90% of the population is against them.  It is doubtful that the money lenders in Germany and France will step out of their high rises to come repossess the Parthenon.

No, they will leave that to foreign militaries as they march on Palestine.

But we are getting ahead of ourselves.  Our topic of the day is why the Euro/IMF and now, reluctantly, the private sector are “thrashing” (which must be somewhat harsher than mere hashing) out an aid plan for Greece tomorrow in France.  From Reuters:

International banks and insurers will meet on Wednesday to thrash out a plan for the private sector to contribute to Greece’s bailout effort as fears grow that the proposal will be derailed.

The Institute of International Finance (IIF) lobby group said it will chair the meeting of private-sector creditors.

It needs to resolve how a deal can get past credit rating agencies without it being termed a default, and how accountants will deal with it.

A lot of work remains to be done and Wednesday’s meeting will not be decisive, several sources said.

“It’s a process. The new French finance minister said today it will take weeks, over the summer. It’s complex. It can’t be settled overnight,” a French private sector source involved in the talks said.

He said there was unlikely to be a single “one-size-fits-all solution” but rather several options, given the number of different bondholders and stakeholders involved.

“The issue is so complex that we need more time,” a German banking industry source added.

Of course, the issue is not complex.  The Greeks have promised more than they can deliver.  Anyone can do this for a time but if too much time passes, actions (overspending) speak louder than words (austerity measures).

Besides, for a socialist tax collecting entity such as the Greek government, austerity measures starve its customer base of revenue, lowering its own tax revenues, which in turn demand’s more austerity, etc.

For a generally unproductive country that has made the mistake of outsourcing its money printing operations like Greece, austerity is collective suicide.  Even credit ratings agencies and accountants can no longer ignore this dubious state of affairs.

Greece, Where the Euro pays tourist prices

Yet paradoxically, the international bankers seem intent on forcing the Greeks, against their collective will, to starve themselves.  Why?  Even in the parallel universe of our current monetary system this course of action makes absolutely no sense.

And that is precisely why it must be done.  Somehow, the banking cartel must put on the charade of solvency.  Most people, accountants and ratings agencies amongst them, have a vague understanding that saving money is equal to solvency.

How right they would be, if silver and gold were still money.  In the current insane “debt is money” socialist monetary system, savings remove the lifeblood of the currency regime.

Don’t be deceived by the Euro and IMF’s words, Greece is a lost cause.  It has problems that not even Christine Lagarde and her $550K pay package cannot solve.

But that won’t stop them from trying!  As the explanations become more and more ludicrous across the Atlantic and Mediterranean, keep your eye on The Mint’s Key Indicators, which are still pointing at raging inflation with no end in sight in dollar land.

The only protection for savings is anything real that is not a dollar (or a promise to pay a dollar in the future, such as dollar denominated bonds).  How is that for investing made simple?  So many options!

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

P.S.  For more ideas and commentary please check out The Mint at www.davidmint.com

Key Indicators for July 5, 2011

Copper Price per Lb: $4.30
Oil Price per Barrel:  $96.83 A FAILURE TO INFLATE, WILL TREND LOWER

Corn Price per Bushel:  $6.80 MONETARY POLICY IS NOT WORKING
10 Yr US Treasury Bond:  3.14% WITH THE FED OUT, THE SKY’S THE LIMIT
FED Target Rate:  0.07% JAPAN HERE WE COME!

Gold Price Per Ounce:  $1,516 BENEFITING FROM PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  12,570 WINDOW DRESSING FOR 401K PORTFOLIOS
M1 Monetary Base:  $1,954,300,000,000 RED ALERT!!!
M2 Monetary Base:  $9,098,400,000,000 YIKES!!!

*See the MINT Perceived target Rate Chart.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.

72 Hour Call for July 5, 2011 (Adieu to the 72 Hour Call for now)

Today’s Call:  NO CALL, taking a break as we revert to the mean. 

Rationale:  The 72 Hour Call is being mothballed for the moment.  It has been a great experiment and has led us to one inescapable conclusion:  There are no sure things in the day to day gyrations of the markets.  One is best off calling long trends and picking logical entry and exit points for trades, adjusting them as the data relevant to the long trends change.  Please continue to watch our Key Indicators at the end of each Mint.  Thank you for following and drop us a note if time permits!

Result of Call for June 29, 2011:  Euro to fall vs US DollarWas $1.4311:1€., Currently $1.45336:1€.  Good Call.

Calls to Date:  Good Calls: 33, Bad Calls: 30, Batting .524

 

Key Indicators for Tuesday, July 5, 2011

Copper Price per Lb: $4.30
Oil Price per Barrel:  $96.83 A FAILURE TO INFLATE, WILL TREND LOWER

Corn Price per Bushel:  $6.80   MONETARY POLICY IS NOT WORKING
10 Yr US Treasury Bond:  3.14% WITH THE FED OUT, THE SKY’S THE LIMIT
FED Target Rate:  0.07%  JAPAN HERE WE COME!

Gold Price Per Ounce:  $1,516 BENEFITING FROM PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  12,570  WINDOW DRESSING FOR 401K PORTFOLIOS
M1 Monetary Base:  $1,954,300,000,000 RED ALERT!!!
M2 Monetary Base:  $9,098,400,000,000 YIKES!!!

*See the MINT Perceived target Rate Chart.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.

Signs of Life on the Harlow Block

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More Urban Art at the Harlow Block. A silouette of Sir Tophamhat of Thomas the Tank Engine fame, perhaps? A plume of angry smoke? Only the artist knows for sure!

Happy Fourth of July from The Mint

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72 Hour Call for July 1, 2011

Today’s Call: NO CALL, taking a break as we revert to the mean.

Rationale: As you can see, our calls are reverting to the mean.  It has occurred to us that many of our bad calls end up panning out after the 72 hour time period.  We are going to start a new service based on our findings during this experiment which will give position entry and exit recommendations.  Thank you for watching this space and stay tuned!

Result of Call for June 28, 2011: September Wheat to rise.  Was $6.71-6, Currently $6.12-2.  Bad Call.

Calls to Date: Good Calls: 32, Bad Calls: 30, Batting .516

Key Indicators for Friday, July 1, 2011

Copper Price per Lb: $4.29
Oil Price per Barrel:  $96.90 A FAILURE TO INFLATE, WILL TREND LOWER

Corn Price per Bushel:  $6.40 MONETARY POLICY IS NOT WORKING
10 Yr US Treasury Bond:  3.15% WITH THE FED OUT, THE SKY’S THE LIMIT
FED Target Rate:  0.07% JAPAN HERE WE COME!

Gold Price Per Ounce:  $1,510 BENEFITING FROM PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  12,571
M1 Monetary Base:  $1,954,300,000,000 RED ALERT!!!
M2 Monetary Base:  $9,098,400,000,000 YIKES!!!

*See the MINT Perceived target Rate Chart.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.