Category Archives: ebooks

What is Truth?

3/15/2013 Portland, Oregon – Pop in your mints…

Our latest E-book in the “Why what we use as Money Matters” series: What is Truth?  On the Nature of Empire, has now shipped and will soon arrive on digital shelves across the Internet.

What is Truth?  On the Nature of EmpireIn the twenty first century, it has become clear to most that there is no divine right or imperative for the existence of an Empire on the earth. As such, an ever-increasing number of peoples have thrown off the yoke of Empire in favor of what has become known as a democratic model of collective governance. Yet simply changing the rules of governance has not put an end to the core ideals of Empire, and governments today that are elected democratically have largely retained the hallmarks of Imperial rule, namely the tendencies toward a central monopoly on the use of force and the right to demand tribute. How can this be?

The purpose of this volume is to gain an understanding of the true nature of Empire and, to convince the reader that Empire, and by extension large scale government, is not only unnecessary, but a great hindrance to human progress. This volume also explores why the Imperial model virtually ensures that the worst elements of humanity will rise to power, where they will ultimately impose their will on their fellow humans by violence. For the violent outcomes that Empires invariably produce are not exceptions to the rule, nor are they merely the norm.

They are literally guaranteed by design.

Once we have grasped the true nature of Empire, we will then will explore the only known antidote to Empire and the only possible means for mankind to rid itself of the lethal effects of Empire on the earth. And it is probably like anything you have imagined.

It is now available and can be enjoyed on SmashwordsAmazon’s Kindle, and Google Books.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for March 15, 2013

Copper Price per Lb: $3.51
Oil Price per Barrel: $93.21
Corn Price per Bushel: $7.16
10 Yr US Treasury Bond: 2.01%
FED Target Rate: 0.14% ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce: $1,596 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*: 0.25%
Unemployment Rate: 7.7%
Inflation Rate (CPI): 0.7%
Dow Jones Industrial Average: 14,481
M1 Monetary Base: $2,466,100,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base: $10,499,300,000,000

What is Truth? On the Nature of Empire

3/12/2013 Portland, Oregon – Pop in your mints…

The following is an excerpt from our upcoming ebook release, “What is Truth?  On the Nature of Empire” which is volume IV in our series “Why what we use as Money Matters.”

As we researched the book, we were joined unexpectedly by James Tissot by way of his astonishing artwork.  His depiction of Joseph and His Brothers approaching Pharaoh adorns the cover, and his great works, such as this one entitled:  “Ce que voyait Notre-Seigneur sur la Croix” or “What Our Lord Saw from the Cross” in English have moved and inspired us as we have toiled on this volume.  We pray that they will move and inspire you as well.

 "Ce que voyait Notre-Seigneur sur la Croix" (What Our Lord Saw from the Cross) - by James Tissot

“Ce que voyait Notre-Seigneur sur la Croix” (What Our Lord Saw from the Cross) – by James Tissot

What is Truth? On the Nature of Empire

As men and women go about their daily occupations, it is relatively common to stop and form an opinion on the benefits or detriments to society of a particular action taken by the government.  While it is easy to form an opinion and then take sides of an issue, perhaps the most important question that can be asked is not, “What should the government do?”  but rather, “Why is the government doing anything?”

The reason that the second question is rarely, if ever asked is that the concept of Empire, or a large scale government which is seen as the ultimately authority, has been part of the human experience for so long that it’s existence or utility are rarely, if ever, questioned.  We pray that this volume has caused you to give it some thought.

The ignoble goal of all Imperial activities has been to establish and maintain primacy in the affairs of men and women throughout the entire known world.  This demand for primacy and allegiance takes the form of the Empire claiming a monopoly on the use of force, which is invariably followed by demands for tribute.  Ultimately, the head of Empire will make an appeal to divine right and declare him or herself a deity.  As the Empire begins to fade out of existence, it tends to become more violent and intolerant, not conscious of the fact that its subjects are devoting a great deal of time and energy to escaping its grasp.

Those who remain are left to either perish at the hands of the Empire or at the hands of those who see no alternative save the use of the force of arms to overthrow the Imperial leadership, which has been necessarily populated by the members of society who are best able to suppress their conscience in blind pursuit of the Imperial imperative.

Such is the nature of Empire, and it is lethal to human progress.  The existance of Empire on the earth ensures that all who inhabit it will take the side of Cain, who in the Biblical account related in Genesis chapter 4 lead his younger brother Abel to a field where he murdered him, or Abel, the innocent.  Cain’s murderous act is born out of the mistaken belief that the removal of others from the earth will secure one’s place before God and man.  It is an idea that is the driving force behind Imperial action, and it is death.

Cain leadeth Abel to Death by James Tissot
Cain leadeth Abel to Death by James Tissot

Fortunately, there is a better way.  The better way lies neither in violently or peacefully resisting the Empire, it lies in the doctrine of non-resistance, which paradoxically is the best way to ensure one’s safety and security regardless of the state of Imperial degeneration that one finds themselves surrounded by.

However, the path of non-resistance is not without risk.  Many of history’s most noted adherents are noted because they perished while clinging to this principle.  It is not for the faint of heart, yet it is attainable.

The power to do this is found in the person of Jesus Christ, who replied to the Imperial lament, voiced by Pontius Pilate, an instrument of the Roman Empire, “What is truth?”

Jesus’ response, which is not recorded in the Biblical account but made clear by His subsequent actions, echoes through 2000 years of Imperial rule to guide our actions today:

“God Forgives”

In His reply, we find the power to embrace the doctrine of non-resistance, which is the only hope that mankind has to live in peace both here and now, regardless of the proximity of Imperial rule to his or her daily activities, and in eternity.  For to forgive is to live in eternal peace with God himself.

Stay tuned in to The Mint for the upcoming ebook release!

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for March 12, 2013

Copper Price per Lb: $3.54
Oil Price per Barrel:  $92.63
Corn Price per Bushel:  $7.41
10 Yr US Treasury Bond:  2.02%
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,593 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.7%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  14,450
M1 Monetary Base:  $2,481,500,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,377,900,000,000

On the Nature of Empire

3/8/2013 Portland, Oregon – Pop in your mints…

In today’s Mint we submit to you, fellow taxpayer, an excerpt of our upcoming E-book release:  On the Nature of Empire.  Enjoy!

Empire:  An Introduction

empire -/’empī(ə)r/- noun -1. An extensive group of states or countries under a single supreme authority or oligarchy.

Derived from the Latin imperium, the word Empire has come to embody the concept of dominance on a grand scale.  From the time of the original Akkadian, Mayan, and Egyptian Empires to the more recent Greek, Roman, and British versions, the ignoble goal of all Imperial activities has been to establish and maintain primacy in the affairs of men and women throughout the entire known world.

Proof of this is found in the nearly invariable behavior of the heads of Empire, known as emperors and empresses, who come to embody the ultimate conceit of the imperial mindset by attempting to establish themselves as a deity.  The conceit is always fatal, for this ridiculous presumption has the nasty side-affect of destroying any shred of legitimacy that the head of Empire may have previously established.  However, whether or not the emperor publically manifests a claim to deity by demanding reverence reserved for the truly divine or, at the opposite end of the spectrum of possible outcomes, they make a demand for reverence that goes largely unchallenged, those who have reigned in the emperor’s chair have invariably come to assume that they had, at their disposal, the divine right to liquidate any and all threats to their claim to the ultimate power over their fellow mortals.

In the twenty first century, it has become clear to most that there is no divine right or imperative for the existence of an Empire on the earth.  As such, an ever increasing number of peoples have thrown off the yoke of Empire in favor of a what has become known as a democratic model of collective governance.  Yet simply changing the rules of governance has not put an end to the core ideals of Empire, and the hallmarks of Imperial rule, namely the tendencies towards a central monopoly on the use of force and the right to demand tribute, have been largely retained by governments today that are elected democratically.  How can this be?

The concept of Empire is a construction of men, and is largely a result of a tolerance by the many of what is nothing more than antisocial behavior by a few.  As we have stated above, an Empire, at its base, is a monopoly on the use of force which evolves into a monopoly on the right to demand tribute.  Living under Imperial rule is not man’s natural state, and it will eventually come into conflict with mankind’s natural disposition for autonomy, commonly known as freedom or the right to self determination.

Why do the many tolerate the antisocial behavior by a few that ultimately leads to Imperial rule?  The answer is that Empires do not appear overnight.  They emerge over relatively long time horizons and, until they approach their blow off phase, may appear to have many benefits.  However, these benefits always come at a great human cost, a cost that is almost always obscured from those who receive them.

It should come as no surprise, then, that there is no historical evidence of an Empire spontaneously arising by mutual consent.  On the contrary, Empires are created and expanded by subjugating a territory and the peoples that inhabit it via either the threat or actual use of military force.  Once subjugated, the Empire attempts to consolidate its control of the territory by exacting tribute from its subject.  From ancient times up to today, an Empire’s demand for tribute ultimately manifests itself in taking control over the food supply.

Joseph and His Brethren Welcomed by Pharaoh, watercolor by James Tissot 1836-1902
Painting “Joseph and His Brethren Welcomed by Pharaoh”, watercolor by James Tissot 1836-1902

One of the more poignant historical examples of this can be found in the Biblical book of Genesis, where Joseph advises the emperor of Egypt at the time, Pharaoh, to store up the Egyptian grain production for a time in anticipation of a seven year famine.  The Pharaoh then sold the grain back to the Egyptians and foreigners during the famine.  While the story generally has a happy ending, it is a stark example of the Imperial prerogative to confiscate property via taxation.

Given this example, it is no surprise that the first known system of taxation was in Ancient Egypt around 3000 BCE – 2800 BCE.

Paradoxically, the subjects of Empire, who could just as easily eat from the foodstuffs they produce and store up their own rainy day funds, find themselves rendering their harvests to the representatives of the Empire, in the case of the Pharaohs, a full 20% of their production, only to be forced to beg them back at a future date when the need arises.  The Paradox is furthered in that the Empire, in attempting to maintain primacy via various forms of taxation, ultimately ensures its demise, as the inherent waste in the Imperial model overwhelm its ability to extract further tribute from its subjects.

The mechanism of taxation itself causes the Empire to weaken, as it indirectly encourages sub optimum activity and in the worst case, inactivity and waste by those who receive the benefits of the proceeds of the taxes.

Long before the Empire becomes aware of its weakened state, the subjects themselves are often the first to realize that the Emperor is wearing no clothes, to borrow Mr. Andersen’s metaphor.  Those with the means and the initiative will move to escape the withering grasp of the Empire.  Those who do not leave are often left to perish in a futile effort to either defend the Empire or oppose it through the same force of arms by which the Empire came to their lands.  For an Empire must ultimately demand allegiance from its subjects, and an intolerance for dissention will tend to increase in direct proportion to the level of weakness of the Empire.

As such, for an Empire to perpetuate itself, it must rely entirely on the force of arms when necessary and coercive propaganda at all times in an ultimately futile attempt to assure it retains the primitive right to meddle in the affairs of others.  In the final blow off phase, which is marked by civil wars such as the one currently playing out in Syria, the Empire will resort almost exclusively to the use of arms to squash dissention.

Yet the maintenance of Empire, like the air travel industry, is in every case a losing proposition.  It is an utter and complete waste of time and money.  To maintain an Empire requires an ever increasing amount of human and intellectual capital which are depleted in ever increasing quantities as the Empire slides into history’s dustbin, where it will simply attach itself to the long list of Empires that were.

The concept of Empire has always been lethal to human existence and prosperity.  However, for some reason it is romanticized in the human psyche.  The purpose of this volume is to gain an understanding of the true nature of Empire and, to convince the reader that not only is Empire, and by extension large scale government, unnecessary, but it is a hindrance to human progress and virtually ensures that the worst elements of humanity will rise to power, where they will ultimately impose their will on the rest of us by violence.  For the violent outcomes the Empires invariably produce are not exceptions to the rule, nor are they merely the norm.

They are literally guaranteed.

Finally, we address Pontius Pilate’s infamous inquiry, to Jesus of Nazareth before His public trial:

“What is truth?”

It is a question that has been left to humanity for two millennia, and it is time that it be answered, for in the answer lies our common fate.

Intrigued?  Stay tuned to The Mint for the book’s release.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for March 8, 2013

Copper Price per Lb: $3.51
Oil Price per Barrel:  $91.95
Corn Price per Bushel:  $7.25
10 Yr US Treasury Bond:  2.06%
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,585 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.7%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  14,397
M1 Monetary Base:  $2,481,500,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,377,900,000,000

Budgeting Healthy Habits: How to get the Dough you Knead has arrived

2/28/2013 Portland, Oregon – Pop in your mints…

Our latest E-book offering:  Budgeting Healthy Habits: How to get the Dough you Knead, has shipped and will soon arrive on digital shelves across the Internet.

More than a book on personal finance and budgeting, it is a collection of our personal finance tips told through a bakery metaphor.  It is now available and can be enjoyed with a coffee and danish on Smashwords, Amazon’s Kindle, and Google Books.

As an added bonus for visiting our page here at The Mint, you can download a sample budget spreadsheet in Excel format to help you to implement some of the tips here:

SAMPLE BUDGET

Dough: An introduction

dough -/dō/- noun -1. A thick, malleable mixture of flour and liquid, used for baking into bread or pastry. 2. Money: “lots of dough”.

Dough.  Unless you work in a bakery or pizza parlor, you probably can’t get enough of it.  As we began to elaborate this current volume, which, at its base, is a presentation of our unconventional budget tips, we knew that it would be necessary to employ a metaphor to keep fellow bakers, who have any number of demands upon their time beyond budgeting, or seeking out metaphors, for that matter, engaged long enough to revolutionize their approach to money, which in turn will give them time to knead dough, ponder metaphors, compose run on sentences, or indulge any number of whims which may be germinating in the dark recesses of their minds at this very moment.

Budgeting Healthy Habits: How to get the Dough you Knead

Budgeting Healthy Habits: How to get the Dough you Knead

Most of the human race spends the better part of their waking moments either doing something or wondering what they should be doing.  Human action is an ultimate given, and, as the band Rush reminds us in their early 80′s smash, Freewill,

“If you choose not to decide, you still have made a choice.”

The choices available to most of us are limited to the amount of dough that we have available or lack at any given moment.  This goal of this volume is to equip you, fellow baker, to dominate your dough situation and bake the loaves, pastries, or crusts in the style and quantities necessary to satiate your desires.  If we are fortunate, this volume will convince you that the key to happiness is in helping others, however, this is a hypothesis that must be proved by personal experience, and is not the central theme.

The central theme is dough, more precisely, how to manage your dough.  If you have been searching for information on budgeting and personal finance for any amount of time, we don’t have to tell you that there is an exhaustive amount of material available, and finding good advice that fits your situation, is can be as rare as finding a butcher, baker, and candlestick maker together these days.

With this in mind, we present these healthy habits as morsels on a platter.  You may choose to scarf them down in one sitting, which will undoubtedly shock your organism into convulsions, or you can take them in, one at a time, savoring each one while giving your organism adequate time to digest it, maintaining the nutrients and eliminating the waste through the proper channels.

The organism we speak of is your personal or family economy, which in this volume we refer to as the bakery, for all of us are cooking up one thing or another.  We recommend that you treat your bakery with the utmost of care.  This volume is designed to give you the tools to do just that.  If properly used in just the right proportions, these tips will help to ensure that everything you cook up will come out just right.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for February 28, 2013

Copper Price per Lb: $3.53
Oil Price per Barrel:  $91.83
Corn Price per Bushel:  $7.19
10 Yr US Treasury Bond:  1.89%
FED Target Rate:  0.14%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,580 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.9%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  14,054
M1 Monetary Base:  $2,421,800,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,412,400,000,000

Budgeting Healthy Habits: How to get the Dough you Knead

2/20/2013 Portland, Oregon – Pop in your mints…

The following is the introduction of our soon to be released ebook on budgeting:  Budgeting Healthy Habits:  How to get the Dough you Knead.  It will be available on Kindle later in the week.  Stay Fresh and enjoy!

Dough: An introduction

dough -/dō/- noun -1. A thick, malleable mixture of flour and liquid, used for baking into bread or pastry. 2. Money: “lots of dough”.

Budgeting Healthy Habits:  How to get the Dough you Knead
Budgeting Healthy Habits: How to get the Dough you Knead

Dough.  Unless you work in a bakery or pizza parlor, you probably can’t get enough of it.  As we began to elaborate this current volume, which, at its base, is a presentation of our unconventional budget tips, we knew that it would be necessary to employ a metaphor to keep fellow taxpayers, who have any number of demands upon their time beyond budgeting, or seeking out metaphors, for that matter, engaged long enough to revolutionize their approach to money, which in turn will give them time to knead dough, ponder metaphors, compose run on sentences, or indulge any number of whims which may be germinating in the dark recesses of their minds at this very moment.

Most of the human race spends the better part of their waking moments either doing something or wondering what they should be doing.  Human action is an ultimate given, and, as the band Rush reminds us in their early 80’s smash Freewill, “If you choose not to decide, you still have made a choice.”

The choices available to most of us are limited to the amount of dough that we have available or lack at any given moment.  This goal of this volume is to equip you, fellow taxpayer, to dominate your dough situation and bake the loafs, pastries, or crusts in the style and quantities necessary to satiate your desires.  If we are fortunate, this volume will convince you that the key to happiness is in helping others, however, this is a hypothesis that must be proved by personal experience, and is not the central theme.

Back to your dough.  If you have been searching for information on budgeting and personal finance for any amount of time, we don’t have to tell you that there is an exhaustive amount of material.  Finding good advice, or good advice which fits your situation, can be as difficult as finding a needle in a haystack.  With this in mind, we present these healthy habits as morsels on a platter.  You can choose to scarf them down in one sitting, which will undoubtedly shock your organism into convulsions, or you can take them in, one at a time, savoring each one while giving your organism adequate time to digest it, maintaining the nutrients and eliminating the waste through the proper channels.

The organism we speak of is your personal or family economy, which we recommend you treat with the utmost care.

Stay tuned to The Mint for the release later this week and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for February 20, 2013

Copper Price per Lb: $3.57
Oil Price per Barrel:  $94.46
Corn Price per Bushel:  $7.00
10 Yr US Treasury Bond:  2.02%
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,564 THE GOLD RUSH IS ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.9%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  13,928
M1 Monetary Base:  $2,496,300,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,399,700,000,000

Anarchy is an Ultimate Given

2/7/2013 Portland, Oregon – Pop in your mints…

We are taking a brief break from Old Jules and our “To Build up the Land” series to present the introduction to our soon to be released e-book, the latest volume in the Why what we use as Money Matters series.  Enjoy!

Anarchy is an Ultimate Given

An∙ar∙chy – noun – ‘anərkē

The definition of anarchy, according to the Merriam-webster Dictionary:

1.a:  absence of government

  b:  a state of lawlessness or political disorder due to the absence of governmental authority

  c:  a utopian society of individuals who enjoy complete freedom without government

2.a:  absence or denial of any authority or established order

  b:  absence of order

Disarming the State is as simple as changing and then using one's mind
Disarming the State is as simple as changing and then using one’s mind

Anarchy.  The word strikes fear in the hearts general public, who have been trained to conjure images from fraternity house shenanigans to rioting and looting on the streets of important cities at its mention.  For most civilized persons, with these mental images close at hand, anarchy is something to be avoided at all costs.  How can civilized society carry on with the threat of bombs and looting effectively slamming the brakes on human progress?

In this volume, we seek to free the concept of anarchy from these negative connotations.  For anarchy, far from being the greater evil in the choice amongst evils when it comes to man’s state in this world, is really not a choice at all.  Rather, anarchy is something that every human being and animal on the planet is born into.  It is the basic state of man in this world.  It is an ultimate given.

As an ultimate given, it is futile, nay, self-destructive for men and women to live their lives fretting about falling from a state of order into one of anarchy.  The line of thinking is debilitating and counterproductive to what must be mankind’s highest and most urgent calling in the physical realm:  How best to respond to the state of anarchy in which they live.

For it is not anarchy itself that causes disorder and the other maladies which the mere mention of the word bring to mind, but mankind’s failed responses to this ultimate given under which they labor and cause others to labor on their behalf.  The only thing more dangerous than confusing anarchy for the disorder which arises from the collapse of a failed response to it, is to spend ones life’s toils aiding another person’s failed response to his or her inherently anarchic surroundings.

Further, this volume seeks to give the reader a sufficient level of awareness to step back, if even for a moment, to evaluate the response to anarchy under which they are currently laboring and make a sober evaluation as to whether they are truly laboring in alignment with their own best interests.

Too many lives have been wasted laboring under a mistaken fear and avoidance of anarchy, and we hope this volume will steer the reader away from this fate.  It may not change the way you think or what you do at all, and that is good.  For to personally validate ones own course in life with a firmer grasp of the facts has caused harm to no one.  In fact, it should cause one to carry on with a renewed sense of pride and purpose.  We only encourage you, then, to offer others the chance to give their own lives a sober evaluation, and respect their decision to change once they truly understand the wonderful anarchy into which we are all born.

The book is now available on Kindle and will be available on Smashwords in early May.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for February 7, 2013

Copper Price per Lb: $3.73
Oil Price per Barrel:  $96.11
Corn Price per Bushel:  $7.11
10 Yr US Treasury Bond:  1.95%
FED Target Rate:  0.13%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,671 THE GOLD RUSH IS ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.9%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  13,944
M1 Monetary Base:  $2,522,600,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,334,600,000,000

The Repo man goes Basel on funding markets

1/25/2013 Portland, Oregon – Pop in your mints…

We have been remiss in our regular correspondence to you, fellow taxpayer, and we pray you will forgive us.  We have completed and published the first two volumes in our series, called “Why what we use as Money Matters.”  It is our humble attempt to explain, well, why what we use as money matters.  The volumes are currently available on Amazon’s Kindle as wells as in various eBook formats on Smashwords and can be accessed at the following links:

What is Money? – Volume I – Free until February 7, 2013 at Smashwords

What is Money? By David Mint

Of Money and Metals -Volume 2 – Free until January 31, 2013 at Smashwords

Of Money and Metals by David MInt

Our objective in writing the series is to convince humanity of two truths:

1.  That if the activities of the earth are to be in balance with the available resources, money must be something natural, in other words, not debt or a sort of promise or idea.

2.  That Anarchy is an ultimate given, and that Capitalism is the best response to this given.

The governments of the world, as we have known them, are disintegrating, but this will be addressed in our upcoming volumes in the series.

We would be honored if you would give them a read and keep watch for the upcoming volumes, for these ideas are exceedingly important.

Back to finance

While the Fiscal cliff and subsequent fallout have taken a toll on the average working American to the count of 2% right where it counts, there is a something altogether wonderful and dreadful knocking at the door:

Inflation

The wave of inflation that has been on the horizon ever since Federal Reserve monetary policy gave us new acronyms such as ZIRP and QE, appears to be breaking and will soon wash ashore.  Now that it is breaking, the only thing that stands between it and the average working American is some flavor of collective default by the nation’s banks.  Thanks to the programs which are represented by the above mentioned acronyms, this is highly unlikely.

At this point, then, the only entities whose default could cause such a chain reaction are the Federal Reserve, US Treasury, or possibly the ECB.  However, here at The Mint we believe that the tidal waves of cash that have been unleashed may even make the default of one of these institutions manageable.

The Federal Reserve has succeeded in the sense that they have flooded the system with so much cash and have repeatedly stated in no uncertain terms that they will backstop the Treasury and MBS market until the US Dollar’s last dying breath.  While for a time, maturing debt obligations were mopping up the liquidity that the FED was pumping in, most consumers have now moved to extend maturities via refinancing or, on the conservative end, have closed out both cash and debt positions by paying off mortgages with savings which had been “ZIRPed” into dormance as an income producing asset.  This collective action has put the economy in a sort of warped reset where the fiat currency debt monster can run amok for the foreseeable future, with the attendant fatal real world consequences.

Oddly enough, as the FED begins to claim victory over the financial crises which its own policies have made possible, the double whammy of the Basel accords and Dodd-Frank regulatory regimens may eventually eliminate many of the financial institutions which today are household names.

The Repo man cometh

In what is perhaps an unintended consequence, the afore mentioned regulations have given what is known as a REPO contract its walking papers.  In our oversimplified understanding of the matter, for simplicity is a virtue here at The Mint, the REPO arrangement, which is a glorified demand deposit, has allowed banks to hold their client’s funds on their balance sheet as Tier I capital.

In 2017, these arrangements will be forced to be properly classified as demand deposits, and many of the wiser financial institutions, who already have a long way to go to reach the Basel Tier I requirements, are already steering their clients away from these arrangements.

How much capital will this pull out of the banking system?  Nobody knows.  But what is for sure is that unwinding these REPO positions will leave some institutions exposed and unprepared.  They will probably become aware of their exposure via the classic individual financial panic mechanism:

The margin call.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for January 25 2013

Copper Price per Lb: $3.64
Oil Price per Barrel:  $95.88
Corn Price per Bushel:  $7.21
10 Yr US Treasury Bond:  1.95%
FED Target Rate:  0.15%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,659 THE GOLD RUSH IS ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.8%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  13,896
M1 Monetary Base:  $2,397,900,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,501,100,000,000

Of Money and Metals: The Operation of a Free Money Supply Explained

We’ve been at it again!  Be the first to download our newest e-book,  now available on Smashwords and Amazon’s Kindle:

Of Money and Metals: The Operation of a Free Money Supply Explained

Of Money and Metals: The Operation of a Free Money Supply Explained is Volume II in the “Why what we use as Money Matters” series. Of Money and Metals presents the fallacies of the current day practice of circulating debt in the place of money and explains the urgent need for and the operation of a free money supply. This volume also explores the phenomenon of Bitcoins and digital currencies.

It is available to our dear readers for free until January 31, 2013 at smashwords.com, just enter coupon code: MA65L

Thank you for your support!

Of Money and Metals by David MInt