RFK On the Mindless Menace of Violence

Last night we had the pleasure of viewing “Bobby,” a movie which recounts imagined events which occured and persons who were at the Ambassador Hotel the fateful night of June 5, 1968 when Senator Robert F. Kennedy was assassinated at a campaign rally there.

The film was directed by Emilio Estevez and had a cast which was loaded with stars a diverse group of stars including Harry Belafonte, Heather Graham, Helen Hunt, Anthony Hopkins, Demi Moore, Lindsay Lohan, Christian Slater, Elijah Wood, and Estevez himself.

Despite the star-studded cast, it was Senator Kennedy himself who stole the show.  While the entire story revolved around Kennedy, no actor was chosen to play him.  Instead, Estevez included original footage and voice recoordings of Kennedy himself, essentially letting Senator Kennedy star in the film.

Estevez pulled this effect off in spectacular fashion as the presence of Kennedy in the film overwhelms the formidable supporting cast.  In retrospect, the film would have been severly hanicapped had an actor attempted to potray Kennedy.

At the end of the film, a montage of photos is run while the audio of a speech which Senator Kennedy gave at the City Club of Cleveland on the day after Martin Luther King, Jr. was assasinated, April 5, 1968.  It is titled “On the Mindless Menace of Violence,” and it is powerful.  You may read it below or listen to it by clicking here.

On the Mindless Menace of Violence

“This is a time of shame and sorrow. It is not a day for politics. I have saved this one opportunity, my only event of today, to speak briefly to you about the mindless menace of violence in America which again stains our land and every one of our lives.

It is not the concern of any one race. The victims of the violence are black and white, rich and poor, young and old, famous and unknown. They are, most important of all, human beings whom other human beings loved and needed. No one – no matter where he lives or what he does – can be certain who will suffer from some senseless act of bloodshed. And yet it goes on and on and on in this country of ours.

Why? What has violence ever accomplished? What has it ever created? No martyr’s cause has ever been stilled by an assassin’s bullet.

No wrongs have ever been righted by riots and civil disorders. A sniper is only a coward, not a hero; and an uncontrolled, uncontrollable mob is only the voice of madness, not the voice of reason.

Whenever any American’s life is taken by another American unnecessarily – whether it is done in the name of the law or in the defiance of the law, by one man or a gang, in cold blood or in passion, in an attack of violence or in response to violence – whenever we tear at the fabric of the life which another man has painfully and clumsily woven for himself and his children, the whole nation is degraded.

“Among free men,” said Abraham Lincoln, “there can be no successful appeal from the ballot to the bullet; and those who take such appeal are sure to lose their cause and pay the costs.”

Yet we seemingly tolerate a rising level of violence that ignores our common humanity and our claims to civilization alike. We calmly accept newspaper reports of civilian slaughter in far-off lands. We glorify killing on movie and television screens and call it entertainment. We make it easy for men of all shades of sanity to acquire whatever weapons and ammunition they desire.

Too often we honor swagger and bluster and wielders of force; too often we excuse those who are willing to build their own lives on the shattered dreams of others. Some Americans who preach non-violence abroad fail to practice it here at home. Some who accuse others of inciting riots have by their own conduct invited them.

Some look for scapegoats, others look for conspiracies, but this much is clear: violence breeds violence, repression brings retaliation, and only a cleansing of our whole society can remove this sickness from our soul.

For there is another kind of violence, slower but just as deadly destructive as the shot or the bomb in the night. This is the violence of institutions; indifference and inaction and slow decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. This is the slow destruction of a child by hunger, and schools without books and homes without heat in the winter.

This is the breaking of a man’s spirit by denying him the chance to stand as a father and as a man among other men. And this too afflicts us all.

I have not come here to propose a set of specific remedies nor is there a single set. For a broad and adequate outline we know what must be done. When you teach a man to hate and fear his brother, when you teach that he is a lesser man because of his color or his beliefs or the policies he pursues, when you teach that those who differ from you threaten your freedom or your job or your family, then you also learn to confront others not as fellow citizens but as enemies, to be met not with cooperation but with conquest; to be subjugated and mastered.

We learn, at the last, to look at our brothers as aliens, men with whom we share a city, but not a community; men bound to us in common dwelling, but not in common effort. We learn to share only a common fear, only a common desire to retreat from each other, only a common impulse to meet disagreement with force. For all this, there are no final answers.

Yet we know what we must do. It is to achieve true justice among our fellow citizens. The question is not what programs we should seek to enact. The question is whether we can find in our own midst and in our own hearts that leadership of humane purpose that will recognize the terrible truths of our existence.

We must admit the vanity of our false distinctions among men and learn to find our own advancement in the search for the advancement of others. We must admit in ourselves that our own children’s future cannot be built on the misfortunes of others. We must recognize that this short life can neither be ennobled or enriched by hatred or revenge.

Our lives on this planet are too short and the work to be done too great to let this spirit flourish any longer in our land. Of course we cannot vanquish it with a program, nor with a resolution.

But we can perhaps remember, if only for a time, that those who live with us are our brothers, that they share with us the same short moment of life; that they seek, as do we, nothing but the chance to live out their lives in purpose and in happiness, winning what satisfaction and fulfillment they can.

Surely, this bond of common faith, this bond of common goal, can begin to teach us something. Surely, we can learn, at least, to look at those around us as fellow men, and surely we can begin to work a little harder to bind up the wounds among us and to become in our own hearts brothers and countrymen once again.”

We wish each and every one of you a safe and prosperous new year.

THE LORD IS SALVATION: Proto-Isaiah

We have been tasked with the privilege of teaching chapters 1-39 of the old testament book of Isaiah, which is commonly known as Proto-Isaiah.

Isaiah recorded prophesies for over 60 years and saw four Kings of Judah ascend to the throne throughout his ministry.  Proto-Isaiah is generally thought to have been written in Isaiah’s lifetime by Isaiah himself.

The remaining chapters (40-55 and 56-66) are thought to have been added on to the original Isaiah text at a later date.  In reading Isaiah, it is clear that this is the case.

We could not find a summary of themes which did justice to the complexity and rythym which characterize Isaiah’s writings.  As such, we offer the following outline of Isaiah which we compiled as we poured over it earlier this month.

Please let us know what you think and if possible, join us at GSM in Beaverton for the 2012 series of Bible classes, which this year will focus on the old testatment.

Without further ado, we present to you Proto-Isaiah:

Introduction

Chapters 1-5 – Judah on trial
 

The Prophet

Chapter 6 – The world ends – the call of Isaiah

 

Act I

Chapters 7-8 – Jerusalem attacked by Assyria – God tells King Ahaz of Judah to stand firm

Chapter 9:1-7 – Prophecy about the coming Messiah

 

Act II

Chapters 9:8-10 – The destruction of Israel (Samaria) by Assyria, Assyria’s destruction

Chapter 11:1-10 – Prophecy about the coming Messiah

Chapter 11:11-16 – A remnant will return

Chapter 12 – PRAISE

 

Act III

Chapters 13 – 17:3 – The destruction of Babylon, Assyria, Philistia, Moab, and Damascus

Chapter 17:4-11 – Israel is judged

Chapters 17:12 – 23 – Cush, Egypt, Babylon, Dumah, Arabia, Jerusalem, Shebna, Tyre, and the whole earth are judged and destroyed

Chapter 24 – APOCOLYPSE, the judgment of the entire earth

Chapters 25-27 – SALVATION

 

Act IV

Chapter 28:1-22 – Drunk with the Law, man is unprepared to deal with death

Chapter 28:23-29 – The supremacy of the Lord’s natural law

Chapter 29 – Jerusalem: God’s mercy on those bound by the law, the unjust are vanquished and the righteous are rewarded

Chapter 30:1-17 – Condemnation of seeking help from Egypt

Chapter 30:18- 31 – Mercy, victory, and help come from God alone

Chapters 32-33 – The Lord Arises, the Righteous Kingdom Comes, peace for the righteous and terror for the unjust

Chapter 34 – APOCOLYPSE

Chapter 35 – The Holy Way

 

Act V

Chapter 36 – Assyria threatens Jerusalem

Chapter 37:1-7 – Hezekiah Inquires of Isaiah

Chapter 37-8-13 – Sennacherib’s threatening letter

Chapter 37:14-35 – Hezekiah Prays, the Lord confirms Isaiah’s word

Chapter 37:36-38 – Victory is the Lord’s

 

Act VI

Chapter 38 – Hezekiah’s illness and recovery

Chapter 39 – Hezekiah opens the door to Babylonian captivity

Bolivia: único país de América del Sur sin McDonald’s >> Indias >> Blogs Internacional EL PAÍS

An interesting article about the demise of McDonalds in Bolivia.

Bolivian food is unique, amazing, cheap, and delicious.  Overpriced hamburgers that taste like masking tape are no match for it.

Even in urban centers where fast food is thought to solve the problem of time, McDonalds found that in Bolivia, there is always time to eat.

The death knell for the multinational giant, however, came directly from its status as a multinational giant.  In a country where anti globalization is an almost accidental art form, Ronald finally met his match.

Bolivia remains the only country in South America without a McDonalds, for the richness of their food is without equal on earth.

Read more at El Pais (in spanish):

http://blogs.elpais.com/indias/2011/12/bolivia-unico-pais-de-america-del-sur-sin-mc-donalds.html

COMEX: The March to Irrelevance

A very thorough explanation of the emerging irrelevance of the COMEX due to the permanent beach of trust highlighted in the MF Global fiasco.

Essentially the claim is that JP Morgan, in its rush to seize collateral, stole the precious metals held in COMEX vaults which rightfully belong to MF Global clients.

This is what is generally referred to as theft.  However, the banking elites, who reserve the right to steal for themselves, prefer to call it “rehypothetication,” which simply means that something is pledged as collateral a second time.  In this case, MF Global pledged the same collateral to their clients and JP Morgan.

When push came to shove, guess who MF Global and the CME Group (the owner of the soon to be defunct COMEX) threw under the bus?

It is becoming painfully obvious that the degree of fraud and theft required to keep the bankrupt financial system running is reaching a crescendo. What will December 31 bring?

Readers are advised to convert their paper assets to something tangible before their account becomes the victim of another bankrupt Wall Street firm’s margin call.

Click the link below to see the gory details rehashed at goldseek.com:

http://news.goldseek.com/GoldenJackass/1324501200.php

Precious Metals, Bitter MF Global Investors – Barrons.com

This was bound to happen. MF Global is the first of what will be many CME metals warehouse defaults.  The MF Global clients will take a 28% haircut placing their faith in the CME’s oversight mechanisms, according to Barrons:

http://online.barrons.com/article/SB50001424052748703856804577098740322633760.html?mod=googlenews_wsj?mod=googlenews_barrons

Barrons also reiterates that the CME still has not committed to back stopping the lost MF Global funds. Why any honest and informed person would continue to trade and store precious metals with the CME is beyond our limited comprehension.

Whether the missing MF Global client monies are eventually located, placed by the CME, replaced by Corzine and his accomplices, or not all, irreperable damage has been done to investor confidence as far as commodities go.

Equities won’t be far behind.

A rebuttal: Ciencias y Cosas: Islandia triplica su crecimiento gracias al FMI y no por encarcelar políticos y banqueros

After our last post regarding Iceland tripling its GDP growth after changing its constitution and throwing corrupt bankers and politicians in prison, we received the IMF’S counter-rumor that it was due to their intervention that Iceland is prospering while Europe continues on the brink of monetary collaspse.

The fact that they cite Paul Krugman should tell the reader all they need to know.  Krugman celebrated the fact that Iceland was implementing capital controls ala Castro’s Cuba.

Socialism can appear to function for a very long time on a small scale, but over time it leaves everyone poor and bitter.  The IMF by definition is the largest sponsor of socialism in the world.

Nonetheless, we present the IMF apologists version here so you can decide for yourself.  Again, in Spanish: http://cienciasycosas.blogspotr.com/2011/12/islandia-triplica-su-crecimiento.html?m=1

ISLANDIA TRIPLICARA SU CRECIMIENTO EN 2012 TRAS ENCARCELAR A POLITICOS Y BANQUEROS | DESPERTARES – La revolución pacífica

The story Europe desperately wants to keep quiet.  A great piece on how Iceland triples its GDP growth by throwing their corrupt bankers and politicians in jail.  In spanish:

http://teatrevesadespertar.wordpress.com/2011/12/07/islandia-triplicara-su-crecimiento-en-2012-tras-encarcelar-a-politicos-y-banqueros/

MF Global Hearings move to the Senate: Bombs dropping left and right amongst the deaf

12/13/2011 Portland, Oregon – Pop in your mints…

Today the Agricultural committee of the US Senate played host to what has become the political and financial spectacle of the year:  The Hearings on the MF Global collapse.  We have equated these hearings to professional wrestling.  While high in entertainment value, the spectators are left to wonder how much of it is real and how much of the action is staged.

 

Today, Jon Corzine, MF Global’s former CEO, the ultimate insider who has become the poster boy for the corporate and political corruption that seems to rule the day, was joined by Bradley Abelow, former President and COO of MF Global and Henri Steenkamp, who is still acting as the firm’s CFO.

 You can watch the sad spectacle on C-SPAN at the following link: http://www.c-span.org/Events/Senate-Looks-into-MF-Global-Bankruptcy/10737426222/

 

Jon Corzine takes a quick thumb to the eye at MF Global’s Wrestlmania

It appears that the addition of two more members of MF Global’s senior management team was intended to give the illusion that there may be more information forthcoming at this hearing than at the earlier hearing held by the House Agricultural Committee.  That illusion was quickly dispelled as soon as each of them opened their mouths.

 In summary, they are very, very sorry.  They are aware that this situation has undermined confidence in the markets.  They do not know where the $1.2 billion of missing client funds are.  They are pretty sure that the funds went missing from their treasury group, where the funds are held.

 Strangely, the Patriot Act of 2001, in addition to steamrolling the US Constitution, included provisions which required every banking institution in the US to “know their customer,” which in practice means that no transfer from US accounts could have taken place without the authorities being able to quickly track who the money went to.  This provision, which on its face would make theft and money laundering in US Financial institutions impossible, makes “not knowing” who the money went to an untenable defense.

Nonetheless, Corzine and his cohorts stated again and again that they have no idea where it went.

The only revelation, apart from the names of a few MF Global employees who were offered as sacrificial lambs before the inquisition style questioning, was that the CFO of North American division was apparently on vacation when the funds went missing. 

 

They never mentioned whether or not this individual had returned.

 

Corzine went as far to say that nothing he said, such as “I don’t care where you get the money, we have to make this margin call,” for example, “should have been construed” as permission to transfer client funds into MF Global operating accounts and then out to counterparties.  He is obviously slipping towards a plea and hoping to do time with his Goldman buddies at a posh jail in Manhattan.

 

By the end of the morning, nothing that was said, either by a member of the Senate or former MF Global executive, served to instill any measure of confidence.

 

The afternoon, however, looked promising.  The regulators who were on the case and had their noses close to the ground were set to testify.  CME Group Executive Chairman Terrence Duffy, MF Global Trustee James Giddens and CFTC Commissioner Jill Sommers sat down before the committee and took the obligatory oath.

 

Mr. Giddens lead off, restating the obvious.  He is in charge of ensuring that MF Global assets are liquidated and that the proceeds distributed to the creditors based on the criteria laid out in the US Bankruptcy code.  He would later state that efforts to recover assets abroad had been blocked by sovereign governments (those across the Atlantic), who are likely protecting their banks from what would be a devastating clawback of funds.

 

Then, just as we thought that the afternoon would be a snoozefest, Mr. Duffy of the CME Group dropped a bombshell.  In his opening remarks, he stated that he was “in the room” when a CME employee was on the phone with an MF Global employee who stated that Mr. Corzine had direct knowledge that client funds were missing (or in industry parlance, “loaned out”) well before the weekend of October 31st.

 

This directly contradicted Mr. Corzine’s testimony under oath in which he stated that he had “no knowledge” of the missing client funds until that fateful weekend.

 

Et tu, Brute?

 

The diversion only lasted for a moment.  The committee then proceeded to flagellate Mr. Duffy and the CME Group for defending the idea that their exchanges can properly self regulate themselves.

 

Mrs. Sommers of the CFTC was then flagellated by the committee for the failure of the government agency to regulate entities such as the CME Group and MF Global which are supposed to, if we understand correctly, self regulate themselves.

 

As today’s chapter of the spectacle came to a close, there were more questions than answers.  Like the old WWF, no scores were permanently settled and we will have to tune in Friday to see how the next stage in this drama unfolds.  It promises to be exciting, as the committee includes none other than Ron Paul (R-TX), the one man in Congress who may actually understand what happened.

 

The Witness list for Friday can be found here.

 

For those who have not been following, the MF Global situation is extremely important because a number of things that investors have been able to count on have been called into question.  A brief list of these now invalid assumptions:

 

          Client funds are properly segregated from a brokerage company’s operating funds.

          Exchanges such as the CME Group will backstop (make whole) clients in the event that one of their approved brokerage firms goes bankrupt.

          Exchanges will halt trading in the event of a bankruptcy until any missing client funds can be accounted for and that trades from customers of the bankrupt brokerage can be executed.

          Once a brokerage firm declares bankruptcy, all assets must be handed immediately over to a trustee who from that moment on has a fiduciary duty to sell the bankrupt firms assets to the highest bidder to satisfy as many creditors as possible.

          Regulatory agencies such as the CFTC have controls and monitoring in place which will prevent clients from suffering losses if a brokerage firm misappropriates their funds.

          Sarbanes Oxley has effectively eliminated corporate fraud.

          The commodity exchanges, such as the CME Group, can effectively self regulate.

          Theft is illegal.

 

Every day which passes in which there is not a full recovery of the client funds held by MF Global adds to the list of questions.  And every day that passes serves to call further into question the ability of all brokerage houses, exchanges, and government regulators to make good on their promises.

 

The MF Global situation is not simply about the bankruptcy of a large brokerage, it is about whether or not the rule of law can be trusted to operate in the financial markets of the United States of America.

 

For all of the bankruptcies and bank seizures that have occurred in the wake of the 2008 financial crisis, in most cases there has been confidence that the framework of the markets could be trusted, and that the myriad of regulatory entities which are supposed to make Capitalism safe for all have everyting under control.

 

After MF Global, one has to question whether any asset, paper or physical, entrusted to a financial institution is safe.

 

In related news, Mr. Giddens (the MF Global Trustee above) announced today that JP Morgan would be probed in the MF Global investigation.

 

This can only serve to further disrupt futures markets.  Is the end of the current system nigh?

 

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for December 13, 2011

Copper Price per Lb: $3.43
Oil Price per Barrel:  $100.02

Corn Price per Bushel:  $5.88  
10 Yr US Treasury Bond:  1.96%

FED Target Rate:  0.07%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,632 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  8.6%
Inflation Rate (CPI):  -0.1%
Dow Jones Industrial Average:  11,995  

M1 Monetary Base:  $2,255,500,000,000 RED ALERT!!!  THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base:  $9,623,700,000,000 YIKES UP $1 Trillion in one year!!!!!!!

O Christmas Tree!

Its that time of year, chestnuts roasting on an open fire, Jack Frost nipping at your nose.  Time to deck the halls, stir the eggnog, and trim the tree.  The Christmas season is a special time of year where time honored traditions surround us.

One of those traditions is conveniently located down the road in Helvetia:  The Helvetia Christmas Tree Farm’s Enchanted Evening.

Like its summertime counterpart, The Oregon Lavender Festival, the Enchanted Evening takes place at the farm of Don and Nancy Miller located at 12814 NW Bishop Road in Hillsboro.

The Enchanted Evening is a wonderful family event which rings in the season with joy, singing, and hobby trains.  The festive atmosphere makes it easy for one to focus on finding what is often the first and most important component of the holiday decor:  The Tree.

Its that time of year, chestnuts roasting on an open fire, Jack Frost nipping at your nose.  Time to deck the halls, stir the eggnog, and trim the tree.  The Christmas season is a special time of year where time honored traditions surround us.

One of those traditions is conveniently located down the road in Helvetia:  The Helvetia Christmas Tree Farm’s Enchanted Evening.

Like its summertime counterpart, The Oregon Lavender Festival, the Enchanted Evening takes place at the farm of Don and Nancy Miller located at 12814 NW Bishop Road in Hillsboro.

The Enchanted Evening is a wonderful family event which rings in the season with joy, singing, and hobby trains.  The festive atmosphere makes it easy for one to focus on finding what is often the first and most important component of the holiday decor:  The Tree.

As many can attest, a well chosen tree can turn the holiday season from just another year among many into a Christmas to remember.

With fields full of Nobles and Grands the Helvetia Christmas Tree Farm is bound to have a tree that will look great in your living room.  If cutting the tree is not up your alley, the staff will provide as much assistance as necessary.

Once your tree is shaken, baled, and firmly tied to the roof of the car, you can warm up with some hot cocoa and take a stroll through the gift shop, where all of the proceeds go to benefit children in Africa and the Ukraine.

The Helvetia Christmas Tree Farm’s Enchanted Evening, a local tradition with an international impact.

The benefits of Decentralized power, Rumblings of QE3, the clock is ticking on the currency regime

12/12/2011 Portland, Oregon – Pop in your mints…
There is something strangely satisfying about sitting around a large indoor fire just feet away from the Christmas tree with family.  In those moments, one can partake of all that is right with the world.  It occurred to us that we all strive for these moments yet at times they can seem elusive.  Eternity is placed in our hearts, and time on earth seems to be in short supply.
As such, we must use it wisely.
We have been extolling the benefits of what we have been calling True Capitalism.  True Capitalism is what we here at The Mint humbly offer as the solution to what currently ails the world.  There is one byproduct of True Capitalism, a radical respect of life and property, which is often overlooked and is perhaps “central” to the advantage that it has over every other conceivable construct of society:
True Capitalism works to decentralize power.
In other words, it naturally evens the playing field by removing unfair advantages realized by some at the expense of others.
But isn’t that what Government is supposed to do?  Of course it is!  However, governments circa 2011 are in the middle of an unprecedented power grab.  This centralization of power, they say, is necessary in order to homogenize life as we know it and to help everything run smoothly.
Even if this were possible, there is a fundamental problem created by the centralization of power which is without resolution.  In layman’s terms, it makes for an easy target.
When we see the word target, your mind may conjure up images of vulnerability of a military attack.  However, what we have in mind is much more dangerous.  An army of lobbyists.
Herein lies the weakness of centralized power.  However good its intentions, it will constantly be under attack and subsequent influence of groups who desire this centralized power for their own benefit.  Repelling these attacks is expensive.  Succumbing to them, as is more often the case, will bankrupt a nation.
Governing is not cheap, and there are no economies of scale in it.  Rather, the larger it is, the less efficient it becomes.  Does this sound familiar?  This is what we have now thanks to the Might Makes Right ideology by which we are ruled.
Enter True Capitalism.
In a Truly Capitalistic system, the cost of the nation state drops to zero, for the nation state as we know it would cease to exist.  Does this mean that there will be not be a need for governance?  No, on the contrary, the roles which we now attribute to government will be carried out by any number of organizations.  Governance, in general, would increase, yet it would cost less!
How is this possible?  Voluntary governmental bodies are generally more responsive and efficient, in large part because the cost of governance falls directly to those individuals who desire to pay for it.
Governance has value, and its value can and is be properly set on an open market.  The phenomenon of corporations and persons choosing to reside in low tax venues represents a conscious choice of where and by whom one prefers to be governed by those individuals.
In the west, the value of the brand of government provided in the US and Europe is dropping along with its bond prices.  The fact that nations issue bonds is proof of two things:  That their service oriented businesses are failing and that they will be increasingly reliant upon their ability to forcefully relieve their citizens of their assets (commonly known as taxation) to continue operations.
In other words, they will rely on their Might, the use of force, to justify their “right” to govern.
This untenable “Might Makes Right” system that can only operate as long as people believe that the aggressor has absolute power over them.  This is why countries have flags and dictatorships have the image of the dictator plastered everywhere.  This is why people are being forced into the current banking system, taught to rely upon it, and subsequently shut out of it.
This is a reason why Modern Central Banking and the Corporations that have sprung up around the Central Banks are man’s greatest disaster.
Once the currency and banking systems of Europe and America are completely broken down, people’s blind faith in the currency and its issuer will be destroyed.  The currency regime will then quickly disintegrate
The Federal Reserve will likely allude to QE3 to the tune of $1 trillion dollars today in a desperate attempt to keep the currency regime afloat.
The clock is ticking on these failed monetary experiments.
Do you know where your money is?
Stay tuned and Trust Jesus.
Stay Fresh!

Key Indicators for December 12, 2011
Gold Price Per Ounce:  $1,665 PERMANENT UNCERTAINTY

M1 Monetary Base:  $2,255,500,000,000 RED ALERT!!!  THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base:  $9,623,700,000,000 YIKES UP $1 Trillion in one year!!!!!!!

EU Treaty Exposes English and French Differences

12/9/2011 Portland, Oregon – Pop in your mints…

As many are aware, the EU ramrod “save the currency” treaty was quickly accepted by the countries who are all in on the Euro, while those who saw that drinking the Euro koolaid was likely to kill them, namely England, rejected the treaty.

For us, this exposed the fundamental differences in the English and those on the continent.

One of these differences being that the French tend to think of children as innocents who become corrupted as they age (which is why they are more apt to tolerate the immoral shenanigans of their governing class more than the Brits or Americans do), the English understand that children, as much as adults, are capable of both good and evil at any age.  They hope for the best and, at their best, prepare for the worst.

This is why the French could not believe the premise of the Lord of the Flies.  Why were these children portrayed as being aggressive to eachother?

While this observation is neither here nor there, we leave you with the French and English leaders as they interacted at the EU summit.

 

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for December 9, 2011

Copper Price per Lb: $3.57
Oil Price per Barrel:  $99.41

Corn Price per Bushel:  $5.85
10 Yr US Treasury Bond:  2.05%
FED Target Rate:  0.07%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,711 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  8.6%
Inflation Rate (CPI):  -0.1%
Dow Jones Industrial Average:  12,184

M1 Monetary Base:  $2,255,500,000,000 RED ALERT!!!  THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base:  $9,623,700,000,000 YIKES UP $1 Trillion in one year!!!!!!!

John Corzine Testifies to a Congressional Panel on MF Global Collapse

12/8/2011 Portland, Oregon – Pop in your mints…

Today the world witnessed one of the most surreal spectacles that we can imagine.  John Corzine, former CEO of MF Global, the Primary Dealer which went bankrupt on October 31st and is now missing $1.2 billion of client funds, was called on to testify by a group of men in the US Congress who are trying to understand what went wrong and how they can prevent it from occuring again.

You can see the agonizing hearing in all of its glory by clicking the link below.  Our humble observations:

1.  Neither Mr. Corzine or Congress said anything that should give any measure of confidence to participants in the global financial markets.

2.  Mr. Corzine is sorry this happened.

3.  One of the members of the panel stated the obvious “we got to find that money.”  Understatement of the year.

4.  Mr. Corzine is so confident that the client funds will be recovered that he mumbled, after being pressed by a member of the panel, that he and the other executives would personally reimburse clients in the event that it wasn’t (NOT!)

5.  Questions about the Federal Reserve’s ability to properly vet firms who are qualified to be Primary Dealers.

We didn’t know whether to laugh or cry.  Mr. Corzine looked like a large elf from the camera angle and the members of congress, in most cases, sounded less than up to the task of understanding what happened, much less being able to craft legislation which would prevent a similar event in the future.

It was like watching political professional wrestling.  The entertainment value was fairly high, excitement filled the room, but it left you wondering if what you saw was real or simply scripted and well acted by all involved.

All in all, it was a synopsis of the level corruption and ignorance that grace the halls of power in America circa 2011.

See the entire sorry spectacle courtesy of C-Span:  http://www.c-span.org/Events/Fmr-Senator-Corzine-to-Testify-in-MF-Global-Investigation/10737426111-1/

Perhaps now the Farmer and the Cowman will befriend each other, grab their pitchforks, and storm capital hill until their $1.2 billion is returned.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for December 8, 2011

Copper Price per Lb: $3.49
Oil Price per Barrel:  $98.57

Corn Price per Bushel:  $5.90  
10 Yr US Treasury Bond:  1.97%

FED Target Rate:  0.08%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,706 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  8.6%
Inflation Rate (CPI):  -0.1%
Dow Jones Industrial Average:  11,998  

M1 Monetary Base:  $2,255,500,000,000 RED ALERT!!!  THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base:  $9,623,700,000,000 YIKES UP $1 Trillion in one year!!!!!!!

Losing even blind faith in the Euro and USD, remembering Pearl Harbor

12/7/2011 Portland, Oregon – Pop in your mints…

Today we continue to watch the relative calm in both the stock and bond markets with our jaw hanging just inches from the floor.  In our estimation, the calm, or homeostasis, is perhaps the only thing that is completely inexplicable under the current state of affairs.

Just what is that state of affairs, you ask?  A few off the top of our head:

          Downgrades or the threat of downgrades to nearly every sovereign bond on the planet

          A resulting dearth of quality assets to be used as collateral in the financial system

          A debt based economy collectively attempting to live within its means

          The resulting collapse of the debt based economy

          An imminent war in Persia

But these are simply large events that are leading to a great number of small decisions which are in turn causing more unforeseen large scale events, etc.  The result being that, much to the chagrin of the financial authorities, a majority of the world is embracing frugality.

A quick recap for those are joining us for the first time, the powers that be, the current currency regime, rely on an ever expanding amount of debt in order to continue to function.  It is a system that is based on trust and blind faith, for it offers nothing of lasting value.

In the short term, the system, if functioning properly, allows a great deal of power to be centralized.  It also encourages, albeit indirectly, nearly every sort of vice and shuns virtue.  The system tends to reward bad behavior and to promote into leadership those who are least likely to possess a moral compass.

The system is no longer functioning as designed.  The reach of the currency regime is shrinking and will continue to shrink until the only ones who maintain faith in it are the most morally decrepit individuals and institutions on the planet.  They will continue to trade their increasingly worthless paper until they realize that they are simply shuffling paper amongst themselves, long after they have completely lost any semblance of control that they had on the situation.

Much of this paper shuffling is running through the stock and bond markets, and seemingly these markets are calm.  However, the illusion of stability is being maintained at the cost of trillions of new dollars and Euros being created which are rapidly losing value against anything tangible.

In the United States, the dollar will begin to significantly deteriorate sometime in March, according to our crude calculations.  The Euro, whose handlers have been late to start the game of shameless currency debasement, is more likely to implode with the European banking system as they gag on the sewage of assets that are on their balance sheets.

The great irony of the current currency regime is that a currency which has attempted to maintain its value will become extinct, shunned for one whose value is plummeting.

The Euro and US Dollar are showing the world the two paths that a currency regime can follow to destruction.  It will be interesting to see which car ceases to operate first, the motor that runs out of gas or the one that has its gas tank overflow and goes up in flames.

Either way the economy, which is the motor of the vehicle in the metaphor we have just jumped to, is currently being retooled to run on another type of combustible, one that will last much longer than the current blend of currency gasoline which is nothing more than flammable vapors.  If the currency, and the assets which back it have real value, the economic motor will be allowed to run at a more even pace.

Gold and Silver, ready or not, here we come.  Until then, the economy is sputtering and running on fumes.

Pearl Harbor

We cannot let today pass without a few brief words about Pearl Harbor.  Like 9/11, Pearl Harbor served as a national wake-up call.  Both served as the justifications for the largest military actions and suppressions of freedom (which seem to go hand in hand) that America has known. 

The explosion of the USS Shaw during the attack on Pearl Harbor, courtesy of the US National Archives

As this day that lives in infamy passes, we pause to honor those who perished in these events and the subsequent military actions which occurred as a result of these events.  May they rest in peace, and may mankind learn to avoid the suffering and sacrifices they had to endure at all costs.

War is not necessary and must be undertaken only after every other attempt to engage and deter an aggressor has been exhausted.  It is an act of desperation, not a form of economic stimulus, and it troubles us that the widespread loss of life and property has been referred to as the force which lifted the US out of the great depression.

Those who hold to such a theory are not only following an indefensible logic, they are hurling the ultimate insult to men and women who have fought to defend Freedom throughout history.  For any “stimulus” which has been observed is not the result of the decision of a politician to go to war, rather, it is a result their tireless efforts and indomitable spirits which lifted this and many other countries from the ashes of war.

We pray that more of these heroic efforts and indomitable spirits will not be squandered in Persia.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for December 7, 2011

Copper Price per Lb: $3.53
Oil Price per Barrel:  $100.51

Corn Price per Bushel:  $5.82  
10 Yr US Treasury Bond:  2.12%

FED Target Rate:  0.08%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,742PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  8.6%
Inflation Rate (CPI):  -0.1%
Dow Jones Industrial Average:  12,020  

M1 Monetary Base:  $2,155,200,000,000 RED ALERT!!!  THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base:  $9,627,300,000,000YIKES UP $1 Trillion in one year!!!!

How can men live together in organized society?

We have been reading The Source, by James A. Michener.  Like many of Michener’s works, it is a fictional account which is loaded with facts, history, and at times profound insight.

The following is one of the latter.

It is revealed as one of the characters in the book is attempting to resolve a conflict that is troubling him.  It has to do with a knotted old olive tree and the fresh shoots that continue to grow from it, even though the tree itself appears dead.

He realizes that the olive tree represents Judaism, and the fresh shoots the ways in which it has reinvented itself over more than five millenia.

The character, a Christian Archeologist, is running his thoughts by his Jewish colleague.  The following excerpt from Michener’s narrative is the colleague’s response:

“My thought is that in those critical years (100 – 800 CE) Judaism went back to the basic religious precepts by which men can live together in a society, whereas Christianity rushed forward to a magnificent personal religion which never in ten thousand years will teach men how to live together.  You Christians will have beauty, passionate intercourse with God, magnificent buildings, frenzied worship, and exaltation of the spirit.  But you will never have that close organization of society, family life, and the little community that is possible under Judaism.  Let me ask you this:  Could a group of rabbis, founding their decisions on Torah and Talmud, possibly come up with an invention like the Inquisition, an essentially anti-social concept?”

The Jewish colleague continues:

“…Judaism can be understood, it seems to me, only if it is seen as the fundamental philosophy directed to the greatest of all problems: how can men live together in an organized society?”

The Christian Archeologist responds:

“I would have thought that the real religious problem is always ‘How can man come to know God?'”

To which the Jewish colleague replies:

“There’s the difference between us.  There’s the difference between Old Testament and New.  The Christian discovers the spirit of God, and the reality is so blinding that you go right out, build a cathedral and kill a million people.  The Jew avoids this intimacy and lives year after year in his ghetto, in a grubby little synagogue, working out the principles whereby men can live together.”

“The tremendously personal religion that evolved around the figure of Christ was all the He and Paul had envisaged.  It was brilliant, penetrating and a path to personal salvation.  It was able to construct soaring cathedrals and even more vaulted processes of thought.  Bit it was totally incapable of teaching men to live together.”

It has always troubled us that such a sharp distinction exists between Judaism and Christianity (and for that matter, Islam).  As a Christian, it is obvious to us that Christ came to show that once and for all, the God of the Old Testament, the one and only God, forgives.

History has shown that the blind pursuit of Christianity, Islam, of any other religion which is not firmly based in the precepts of how men can and must live together, bearing with one another, as the Jewish faith relentlessly strives to do, can lead to disastrous results for society.

It is fascinating that the Jews, for all that they have suffered, still strive towards helping all of mankind learn to live together.

It is even more fascinating that, with a few noteworthy exceptions, the Jews have been largely unable to form the society for which their religion continuously strives.

The problem of living together in society can only be solved if two things occur.  First, man must learn to truly and permanently forgive, as God has forgiven us.  Second, he must abandon the Might makes Right ideology and adopt True Capitalism, a radical respect for both the life and property of others, as the basis of his relations with others.

It would not be perfect, but it would be a large step in the right direction.

Believe.

Watch “Italy’s Welfare Minister Elsa Fornero In Tears Over Austerity Sacrifices” on YouTube

Elsa Fornero breaks down a she announces Italy’s proposed austerity measures. Nobody in the government likes to see austerity, nobody.

Revolution Fire Continues to Rage, What’s wrong with Anarchy?

For your weekend enjoyment we offer another classic Mint in its original form.  Enjoy and have a great weekend!

2/24/2011 Portland, Oregon – Pop in your mints…

Today we can hardly believe our eyes.  What appeared to be a simple revolution in a remote land, Tunisia, has begun a chain of events that may touch every person on the planet before it is through.  We will call it the “Fire” of revolution, at it seems to be catching everywhere.  The grievances of a generation are beginning to be aired in public forums from Tripoli to Madison, Wisconsin.  As you are aware, we are of the opinion that the spark for this fire began it what may appear to be a very far away place.  Washington, D.C.  
 
While many conspiracy theorists have their own, well, theories, we believe that this is collateral damage from the Federal Reserve’s misguided attempt to leave no debt unpaid by simply printing the money up to pay them.  It is simple enough to do in their ivory towers, but the consequences in the real world, in the form of trade and production imbalances, which are sometimes referred to as “Malinvestments,” are absolutely and totally destructive to balance in society.
 
The consequences of printing money are generally felt in two forms.
 
The most obvious form is what is being seen in Greece and now Wisconsin.  In these cases the government made promises to workers, retirees, and other constituents that they cannot honor.  The governments appear to be doing the honest thing and are effectively defaulting on these promises.  However, they are attempting to default at exactly the wrong moment, as the increased money supply begins to pinch workers in the developed world.  In both cases, many public workers are simply being asked to give up privileges such as the ability to take a long holiday at the beach.  In both cases, we are seeing sometimes violent evidence of just how hard it is for the government to default on its promises.
 
The less obvious and more damaging form of consequences are what we are seeing in Tunisia, Egypt, Yemen, Algeria, Bahrain and Libya.  In these cases, the governments are not technically defaulting on promises, rather, they are seen as the scapegoats for rapidly rising food costs which threaten to drive many to the point of starvation.  These rising food costs are the indirect result of the governments in the developed world attempting to give their public employees holidays at the beach.  Naturally, with the stakes higher in the developing world, a sense of desperation has set in and the pace of and violence involved in the uprisings is markedly higher.
 
Today we will go one step further at the risk letting the FED off the hook for sparking these revolutions with their insane monetary policy.  That step is to postulate that the cause of the flood of money and credit which has lead to higher food prices stems from people’s unwavering faith in their leaders and/or elected governments.  This unwavering faith, which stems from people’s need to feel secure, generates an inertia towards demands for a nanny state, in which the government is expected to take care of every legitimate and some illegitimate needs presented to them by the people. 
 
This arrangement appears to work very well as long as the government and/or leader appear to have the means to provide for these needs.  This arrangement is also the very reason that the government and/or leader will never have the means to provide for these needs indefinitely.  You see, this arrangement generally discourages productive activity and encourages unproductive activity (commonly known as freeloading and currently justified by vague appeals to any myriad of “rights”) which eventually leads to the shortages and imbalances that are at the root of the revolutionary fires that are currently raging.
 
Is Anarchy the Answer?
Central Banks like the FED are simply the enablers of this dangerous “Social Contract” that is being defaulted upon globally before our very eyes.  Their motivation for enabling is that the arrangement is extremely profitable for their member banks.  When stripped of its veil of legitimacy, the arrangement more resembles a drug cartel than a productive banking system.
 
So if the desire for government is truly the root of the problem, as we have speculated, then would not anarchy be the solution?  No!  You say!  Anarchy is chaos and destruction!  But is it really?  In the strict sense of the word, Anarchy simply means the absence of government.  In the absence of government, people would quickly understand that they would need to protect and provide for themselves.  This understanding would be quickly followed by the realization that in order to do this they will need to deepen their productive cooperation with their fellow man or woman.
 
When theft is no longer publicly sanctioned, suddenly the Golden Rule would become the law of the land, with its fruits of peace, freedom, and abundance following soon thereafter.
 
Until people realize that they need God more than they need a government, we will watch violent struggles to fill the vacuums of power currently being created.  Struggles that often give us such esteemed leaders such as Moammar Gadhafi in Libya, whose loyal tribesmen chose to ditch multimillion dollar aircraft in the desert rather than follow his orders to bomb the opposition, and Scott Walker in Wisconsin, who apparently has not mastered the use of caller ID or plain old fashioned voice recognition.
 
Stay Fresh!
 
 
 
P.S.  If you enjoy or at least tolerate The Mint please share us with your friends, family, and associates!
 
Key Indicators for Thursday, February 24th, 2011
 

If I Had a Trillion Dollars, A Ballad From Ben Bernanke to the Banks (With Apologies to the Bare Naked Ladies)

We send you into the first weekend of December with another Classic Mint.  This was written when Quantitative Easing was still relatively new, and the Federal Reserve was on the verge of printing another slew of money.  Enjoy and have a great weekend!
11/2/2010 Portland, Oregon – Pop in your mints…

Today and tomorrow the entire world, that is, the investment world, will be watching what the Federal Reserve and its poster boy, Ben Bernanke.  What will he do?  Most money managers and bond traders are operating under the assumption that he will proceed to create approximately $1 Trillion US dollars out of thin air through a process known as Quantitative Easing (QE), which is nothing more than indirectly confiscating at least $1 Trillion worth of goods and services from those who produce them in good faith and are compelled to accept US dollars in exchange for them.

You see, Mr. Bernanke and his cohorts are presented with an impossible dilemma.  If they do nothing, bondholders get absolutely annihilated in short order and the dollar continues as a viable currency.  If they proceed with the $1 Trillion QE game, the currency is the sacrificial lamb and the bondholders get a lifeline, but will get annihilated in the end anyway.  Essentially it is the choice of when to feel the pain of massive default on dollar denominate paper.

But what must Mr. Bernanke be thinking at this very hour with so much at stake?  The world presumably expects $1 Trillion dollars.  Logic would follow that, at a minimum, what he must provide to avoid “disruption” in the markets.  You see, the markets have long since baked in these $1 Trillion dollars and if they do not appear will adjust prices accordingly.  Guessing which prices will change and when is what keeps things interesting.
Our guess here at The Mint is that Mr. Bernanke is not thinking at all.  He has his orders; the markets will wait and see if he follows them.  What he is likely doing is strumming his guitar and warming up his academic tenor voice with a song that goes something like this:
“If I Had a Trillion Dollars”  a Ballad from Ben Bernanke to the Banks (with Apologies to the Bare Naked Ladies):
To the tune of “If I Had a Million Dollars“:
If I had a trillion dollars
(If I had a trillion dollars)
I’d buy the US a house
(I would buy the US a house)
If I had a trillion dollars
(If I had a trillion dollars)
I’d buy the US furniture for its house
(No interest or payments for a year)
And if I had a trillion dollars
(If I had a trillion dollars)
Well, I’d buy the US a Ford
(And get everyone’s clunker off the road)
If I had a trillion dollars I’d buy your bonds!
If I had a trillion dollars
I’d buy some junk paper from your books
If I had trillion dollars
They could help, it’d be less you’d have to cook
If I had trillion dollars
Maybe we could put like a little collateral in there somewhere
You know, we could just act like everything’s cool
Like show off the CUSIPs and stuff
Then there would still be liquidity available to us
As if we never bought subprime CDOs and other things
They have endless liquidity but they don’t have asset quality anymore
Thanks to me, of course,
Uh, yeah

If I had a trillion dollars
(If I had a trillion dollars)
I’d buy up asset backed securities
(But not with real money I’d be a fool!)
And if I had a trillion dollars
(If I had a trillion dollars)
Well, I’d buy up Synthetic CDOs
(Yep, like a Hybrid or non-performing SIV)
And if I had a trillion dollars
(If I had a trillion dollars)
Well, I’d buy up Lehman Brother’s remains
(Ooh, all them crazy Hudson Castle assets!)
And If I had a trillion dollars I’d buy your bonds!

If I had a trillion dollars
We wouldn’t have to tax the people more
If I had a trillion dollars
Now, we’d stick to the foreign creditors
If I had a trillion dollars

We wouldn’t have to eat our bad debts
But we would eat our bad debts
Of course we would, we’d just eat more
And pad our tier 1 ratios with new cash
That’s right, all the free cash… FED credit!
Mmmmmm, Mmmm-Hmmm

If I had a trillion dollars
(If I had a trillion dollars)

Well, I’d get us out of this mortgage mess
(But not the homeowners, I’m no fool!)
And if I had a trillion dollars
(If I had a trillion dollars)
Well, I’d buy financial reform
(Ala  Dodd-Frank and Obama)

If I had a trillion dollars
(If I had a trillion dollars)
Well, I’d make you solvent
(Haven’t you always wanted to be solvent?)

If I had a trillion dollars
I’d buy your bonds!

If I had a trillion dollars, If I had a trillion dollars
If I had a trillion dollars, If I had a trillion dollars
If I had a trillion dollars…

You’d be rich!

Seriously, to enjoy some real entertainment (and to get the tune in your head to sing along with Ben and the banks), check out the Bare Naked Ladies performing their 1996 hit “If I Had a Million Dollars” below.  As for tomorrow’s FED announcement, rest easy and wait along with the rest of the investment world to see if Ben & Co. really have the $1 Trillion dollars expected of them.  Of course they don’t really have it but at least it will be fun to see how they explain it this time, that is until those $1 trillion show up in commodity prices!


Stay Fresh!