Category Archives: Events

World Events

We’d like our gold now, Chavez Calling JP Morgan’s bluff? Bank Stocks Tanking, as Palestine flares up on cue

8/18/2011 Portland, Oregon – Pop in your mints…

It is 66 degrees on a mid-August afternoon in Portland.  As a banker friend of ours put it, “we hope you are enjoying the mild winter.”  The truth is, were it not August, we would be quite enjoying the weather.  Unfortunately people have certain expectations about the weather, hence the widespread belief that man can control and reverse trends like global warming or cooling.  August in the Northern Hemisphere should be hot.

But its not.

If people are upset at the weather, then they must be seething at what is occurring in the financial markets.  The relative calm in the financial markets has vanished like free beer at a NASCAR event.  A 400+ drop in the Dow today and an even more significant drop in the price of oil and financial stocks, coupled with a rise in gold, silver, and Treasury Bills? (yes, you read it right) on the surface are evidence of a classic “flight to safety.”

But what is going on?  Why such a massive flight to safety on what would otherwise be a calm August day, so fit for reflection and the pondering of life as one knows it?  We don’t know exactly why all of this occurred today but suffice it to say, none of it should come as a surprise.

For instance, it should come as no surprise that banks are completely broke and at this point, worse than worthless, as they are destroying real wealth.  The modern bank is built on the assumption that the currency regime and the demand for debt denominated in that currency will increase infinitely.  Demand for debt in US Dollars began to wane about four years ago and as far as we can tell is not coming back anytime soon, at least not in the quantities (nor at the margins) necessary for the modern megabanks to exist on their current scale.

Hence, the banks are toast.  Short them if you can after the next round of short covering passes.

The FED unwittingly made matters worse for the banks a couple of weeks ago when they announced that short rates would be near 0% for at least two years.  The FED has given up, and they have done it in the worst possible way.  Rather than standing ready to bail water out of the waterlogged currency ship, they have turned the spigot on full blast and walked away.

The FED will probably not be around in two years.

In yet another twisted irony that is a by-product of the current insane “debt is money” currency system, these low short rates, which in theory should be a boon to banks, will drown the banks with large deposits that they cannot lend except at razor thin margins to sub-prime borrowers such as the US Government.

Yes, society’s aversion to debt has fundamentally changed the banking business from one which primarily benefits from usury to one that must redefine itself as a trusted custodian of assets.  This change seems to be happening overnight, and the banks are completely unprepared.

Case in point, it appears that Hugo Chavez, Venezuela’s democratically elected dictator has been moved to repatriate his country’s roughly 211 tons of gold held by foreign banks.  He has already issued a demand to the Bank of England and rumor has it He will soon issue a demand to JP Morgan, which reportedly holds 10.6 tons of Venezuela’s gold.

Show Me The People's Money!

The problem is, JP Morgan only has 10.6 tons of gold in custody on liabilities of roughly 100 times that amount.  This would not be a huge problem except for the fact that thanks to the internet the entire world now knows this.  Leave it to Chavez to strike at the heart of US imperialism.  Things should begin to get interesting.

JP Morgan’s short position in physical Silver is even more frightening.   If JP Morgan’s skills as a custodian is any indication, it appears that the modern banks are unable to provide this service.  Protect your assets accordingly.

And speaking of frightening, almost as if on cue, violence in Palestine began to escalate again after attacks on Israeli civilians, the deadliest in two years, led Israel to retaliate by launching an airstrike against Gaza earlier today.

Our instinct tells us that a major event is unfolding in Palestine ahead of the UN’s statehood vote and it just may coincide with the collapse of the Western Currencies.

Coincidence?  Most certainly.  And a very sad coincidence indeed.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for August 18, 2011

Copper Price per Lb: $3.95
Oil Price per Barrel:  $81.83

Corn Price per Bushel:  $6.99  
10 Yr US Treasury Bond:  2.08%

FED Target Rate:  0.09%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,825 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.5%!!!   UP 0.7% IN ONE MONTH, 8.4% ANNUALLY AT THIS PACE!!!
Dow Jones Industrial Average:  10,991  TO THE MOON!!!

M1 Monetary Base:  $2,033,000,000,000 RED ALERT!!!
M2 Monetary Base:  $9,478,200,000,000 YIKES!!!!!!!

Watch “London Street Battles: Video of mad clashes, riots out of control” on YouTube

The Seeds of Revolution: Those on the Far Left and Far Right have had Enough! Can they come Together to Change the World?

In the past two weeks we have had two well delivered speeches brought to our attention here at The Mint.  One speech was delivered in Spain at the IU de Extremadura in 1999 by Julio Anguita Gonzáles, the coordinador general de Izquierda Unida at the time of this speech.

Don Julio is a communist.  In this speech, which is billed on youtube as “El Gran Discurso Antisistema” (The great anti-establishment speech), he makes compelling arguments against the establishment and the inequality which it creates and fights to maintain amongst its members.  You can see it below or by clicking here:

 

What is amazing about his speech is that he makes some of the same arguments that Tom Woods, who is perhaps the eloquent Libertarian thinker speaking today.  Mr. Woods’ recent speech on Nullification is quickly becoming an anti-establishment sensation.  You can see his speech below or by clicking here:

 

As Mr. Woods alludes to at the end of his speech, could it be that the anti-establishment thinkers of the far left and far right are closer together ideologically than they are to their mainstream liberal and conservative counterparts?

Economy to suffer Rolling Blackouts, A Flare up in Palestine, Does the FED have an Expiration Date?

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

Summer has arrived in Portland.  We had hoped that it would arrive months ago but as with 41% of our predictions here at The Mint, we were early, which is a polite way to say that we were wrong.

In the financial markets, it continues to rain.  The authorities have done everything in their power to stop the effects of the rain, hoping to simply ride it out.  They are now exhausted and the ominous prospect of rising flood waters to accompany the constant drizzle adds to their misery.

The storm began innocently enough and that was the problem.  Despite the dark clouds forming on the horizon, most people thought that they simply needed to stay indoors for a while, maybe move the patio furniture inside, and wait it out.

As it turns out, loading up the wagon and moving to higher ground is the only thing that can save them.  In a practical sense, this means paying off debts and moving assets into precious metals or anything else real.  It means cutting ties with any and all counter-parties because the probability of default is increasing and can strike without warning.

This financial storm did not necessarily require the divine insight afforded Noah in his day but to adequately prepare for it one needed to at least have in mind the possibility that this storm was no ordinary storm.

Yes, fellow taxpayer, the world economy is not in a recession or a depression (unless you are trying to describe a certain level of misery and not an economic phenomenon).  The economy is in the process of being completely retooled.  Bill Bonner at the Daily Reckoning calls it the “Great Correction.”  We do not have a name for it here at The Mint but Mr. Bonner’s term seems a bit mild to us.

Now that the FED’s firepower and credibility are completely expended, the economy is set to experience something akin to random “rolling blackouts.”  As the cash and credit that flowed steadily downstream for the past 50 plus years begins to dry up, a wall of water in the form of stimulus and monetary accommodation is barreling down the canyon and is literally destroying everything in its path and is PERMANENTLY changing the river’s channel.

Beyond the wall of water is a dry riverbed.  This has been confirmed as the FED’s credibility is shot.  Even if they could continue sending what water is left down the canyon it wouldn’t even come close to filling the new channel or be capable of forming anything that resembles the river that once was.

It is difficult to imagine a more desperate state of affairs.  This is one of the miracles of central planning, that it always and in every sense is a failure for everyone.  In some rare cases the planners benefit but for the most part, in the long run, even they are poorer for their efforts.

So what awaits the economy are unpredictable rolling blackouts as the lack of water causes random and unexpected defaults and quasi-defaults to occur until all participants learn to not trust each other.  Oddly enough, only then will something resembling organic growth begin anew.

An interesting idea was brought to our attention yesterday.  The idea is that the FED’s charter as America’s Central Bank is set to end on December 21, 2012, which nicely coincides with the final date on the Mayan Calendar.  We then further investigated and saw that someone with the Youtube user name “Man of Truth” predicted that the FED would be bankrupt in December of 2012 back in 2009.

While back in 2009 the Man of Truth may have sounded like a lunatic, circa 2011 his prediction seems not only possible but highly likely.  While the December 2012 date is arbitrary, all of this taken together with the fact that many people believe the Mayan Prophecy may be enough to disrupt life as we know it for an extended period of time.

Courtesy of http://bizarrocomics.com/

While we at the Mint do not personally believe in the Mayan Prophecy or the FED for that matter, we have a feeling that enough people do believe to warrant being prepared for an extended period of random rolling economic blackouts which will probably begin early in 2012, making the best time to prepare for them, well, now.

How to prepare?  First and foremost, accept Jesus Christ as your personal savior.  Then, not matter what happens, you have absolutely nothing to fear, not even death.

Second, financially act as if a flash flood is coming down the canyon and get whatever you think you may need to ride out the blackout period close at hand because the probability of obtaining it later is diminishing with each passing day.

Third, help others to do likewise.  In the process of helping others, you will literally be laying the foundation for the bright future that awaits you.

Piece of cake, right?

Meanwhile, the security situation in Palestine the Middle East continue to deteriorate.  Will it be enough to distract the West from its own perilous situation?

Stay Fresh!

David Mint

Email:  davidminteconomics@gmail.com

P.S.  Please check out our latest 72 Hour Call at www.davidmint.com

Key Indicators for Wednesday, June 7th, 2011

Copper Price per Lb: $4.15
Oil Price per Barrel:  $99.67
10 Yr US Treasury Bond:  3.01%
FED Target Rate:  0.10% FED IN DESPERATION MODE!!!!
Gold Price Per Ounce:  $1,545
MINT Perceived Target Rate*:  2.25% INFLATION HERE WE COME!!!!
Unemployment Rate:  9.1% ITS NOT WORKING
Inflation Rate (CPI):  0.4%
Dow Jones Industrial Average:  12,071
M1 Monetary Base:  $1,949,300,000,000 THE CRACK-UP BOOM BEGINS!!!!
M2 Monetary Base:  $8,985,800,000,000 MORE FUEL FOR THE CRACK-UP BOOM!!!!

*See FED Perceived Economic Effect Rate Chart at bottom of blog.  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.

World record truck jump – “Team Hot Wheels – Yellow Driver Behind The Scenes”

Incredible.

Oprah Shares Invaluable Wisdom in Show Finale

Oprah Winfrey’s final show aired yesterday and the featured guest was Oprah herself. For 25 years, Oprah has captivated audiences a delved into life in ways that few thought possible and even fewer thought advisable.

In Oprah’s words, she “uncovered shame” and at times brought taboo subjects and controversial people on stage with her not to be judged, but to be seen, heard, and understood. In the process she did for television talk shows what Michael Jordan did for the sport of basketball. She raised it to a whole new level.

Oprah’s gift, what has made her personally and her show by extension an undisputed success is her ability to deeply connect to her guests and her audience. She has a genuine caring about her that has given herself, her guests, and perhaps society as a whole permission to bring things once thought unmentionable into the national spotlight.

Once things are brought into the light, the healing can begin.

During the finale, Oprah shared, in her classic warm and engaging style, wisdom that has helped her accomplish the impossible. The following is a brief paraphrase of some of the morsels she offered:

1. Follow your calling. There is something that each one of us was called to do. Find it and do it. Your calling is different than your occupation. If they are one in the same, as they are for Oprah, consider yourself extremely blessed.

2. There is a deep need inside of every person to be validated. Validate people. Look at them. Listen to them. Hear them. Accept them.

3. Listen to God.

4. You are worthy of being happy. There is a difference between thinking that you deserve to be happy and knowing that you are worthy of being happy. You are worthy because you are alive.

5. Nobody but you is responsible for your life. Do not live life as a victim.

A more complete list with direct quotes can be found at The Atlantic.

For those viewers who want to remain in contact, she graciously encouraged viewers to email her personally at oprah@oprah.com  with the promise of a personal response.

While the era of exploring and sharing life with Oprah on weekday afternoons has come to a close, it is certain that Oprah will continue to break new ground via both her website www.oprah.com and magazine “O”.

In the end Oprah, like the Gambler in the famous Kenny Rogers song, let each of us an ace that we can keep.

Watch “President Obama on Death of Osama bin Laden” on YouTube