Category Archives: Gold

The Debut of The Mint Money Supply Digest

5/3/2013 Portland, Oregon – Pop in your mints…

Today at The Mint we are launching The Mint Money Supply Digest.  Longsuffering readers of The Mint will recall that we launched a now defunct service known as the “72 Hour Call” which was an attempt to predict the future direction of a specific trade three days out.  After roughly 63 attempts, of which we were batting .524 (correct 52.4% of the time) we decided that the short term call was a fool’s game best left to high frequency traders and those with insider information.

However, the 72 Hour Call exercise was not in vain, rather, what it revealed was that while our Key Indicators (listed below), when taken together, revealed no reliable and/or actionable data with regards to short term trades.  Over time, however, the Key Indicators have proven extremely helpful in projecting longer term trends which tend to underpin the S&P 500 in particular and US equity indices in general.

Before we go further, we must give credit to both Lee Adler at the Wall Street Examiner and Greg Guenther of the Daily Reckoning’s Rude Awakening for their brilliant coverage of the frequent gyrations in the financial markets.  If you need information which is actionable on a shorter time horizon, we highly recommend following their insights.

The intent of The Mint Money Supply Digest is to provide insight via the observation of changes in the trend of our Key Indicators as to the direction of one simple yet critically important trend.

The simple trend is that of the money supply in terms of US dollars.  The goal of the monetary stimulus every central bank on the planet has undertaken to some degree or another over the past three to four years has been to simply increase the money supply and hope for the best.

Graph of Normalized DJIA and Gold assets classes vs. M1, M2, and Federal Funds Rate measures
Graph of normalized DJIA and Gold assets classes vs. M1, M2, and Federal Funds Rate measures

The strategy is a recipe for disaster, as we have explored in depth both here at The Mint and in our eBook series “Why what we use as Money Matters.”  The goal of The Mint Money Supply Digest is to keep our readers informed as to the trend of the Money Supply in terms of US dollars in an effort to keep you ahead of the curve when the disasters (for there will be a series of them) occur.

The disasters will come in one of two flavors.  The first flavor, which we will call vanilla for the moment, takes the form of the increases in the money supply begin to take hold to the point where inflationary expectations by a majority of the actors in the world economy who use dollars or dollar proxies (currencies and debt instruments which are pegged, directly or indirectly, to the US dollar) in trade become embedded to the point where inflation in consumer prices sparks a level of demand in consumer goods which quickly outstrips supplies of such goods.  The vanilla disaster is a mouthful, and it is where the trend is gently heading today.

The second flavor, the disaster which is unlikely in the short term save the appearance of black swan type events, we will call the chocolate variety.  The chocolate variety of disaster is simple, it takes the form of an unmitigated collapse in the money supply similar to what the world experienced in 2007 (which most people realized was occurring in 2008).  Were this to occur, it is time to get all chips off of the table.  Fortunately, our Key Indicators should give us roughly three to four years of advance warning of a full blow chocolate disaster taking place (barring the unpredictable, or black swan event, as it were).

As you can see, while the chocolate disaster is to be feared above all, it will be easier to prepare for given the lead time in the data.  The vanilla disaster, which is currently underway to some extent, will be somewhat more difficult to pinpoint in terms of timing but will likely have a lead time of roughly two to three months in which to take action.

Our bias, then, at the outset of The Mint Money Supply Digest, is to be on the lookout for the vanilla disaster while gauging, via the trends in our Key Indicators, just how much chocolate is mixed into the swirl which is the combined disaster that is slowly unfolding in US dollar land.

As a logical offshoot of our analysis, we keep an eye on something we call the “Monetary Premium,” which is our term for what most people simply refer to as money.  In our worldview, money does not exist in the tangible way that most people assume it does.  Rather, the concept of money comes into being when people begin to attach the attributes of money to something which gives that something (usually one of our Key Indicators) a premium above and beyond what normal market conditions and that special “something’s” physical or ethereal composition might otherwise dictate.

This increase in relative value of that special “something” is what we refer to as the Monetary Premium, and it is important, for a big part of making money is accurately identifying not where the monetary premium is, such as the US dollar, but in where it is gravitating towards, such as gold, Bitcoins, or sea shells.

With the preamble out of the way, we hope to keep the Digests as simple and sweet as a cone on a hot summer’s day.

The Mint Money Supply Digest for May 3, 2013

Today the swirl of disasters continues to tend towards the vanilla variety.  Jobless claims continued their positive trend and the unemployment rate reported by the BLS came down a notch to 7.5%.  This is good news and bad news.  Good news in that more people have jobs, and bad news in that every tick down in Unemployment moves the world closer to the day where the Federal Reserve is likely to turn the switch on their monetary Mega maid, their Quantitative easing programs, from suck to blow.  That day is still far off, however.

Today’s jobs report, coupled with the ECB’s dovish meeting announcements yesterday (they are throwing in the towel, albeit in slow motion, on austerity) and the BOJ’s Turbo Kids monetary strategy for an aging population are all buoying the money supply to counteract the unmitigated, innavigable disaster that is the world economy.  An economy that is desperately trying to reset itself without the benefit of knowing who is really solvent.

The vanilla disaster is still winning.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for May 3, 2013

Copper Price per Lb: $3.28
Oil Price per Barrel:  $95.68
Corn Price per Bushel:  $6.99
10 Yr US Treasury Bond:  1.73%
Mt Gox Bitcoin price in US:  $91.78
Gold Price Per Ounce:  $1,468 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.5%
Inflation Rate (CPI):  -0.2%
Dow Jones Industrial Average:  14,987
M1 Monetary Base:  $2,565,500,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,571,400,000,000

Silver bullion storage options in Singapore now available at

The following is a brief public service announcement from The Mint.  Our affiliate,, is now offering silver bullion purchase and storage services in Singapore.  This is great news for a variety of reasons.

First, silver has taken a significant drop in price over the past month.  While there is rarely a bad entry point into the precious metals market given that the fundamental debasement of every currency on the planet is ongoing, the past month has offered a unique opportunity to stock up at the lowest prices of the year.

Second, Singapore is one of the safest countries on the planet in terms of banking sector fundamentals, and the country’s competitive advantage is its friendliness to foreign investment and intolerance of corruption.  What better place to store your precious metals.

Third, Singapore is outside of the reach of bankrupt western democracies, which makes it unlikely that gold or silver stored there would be confiscated.

You can even make gold and silver purchases and sales on the go using‘s convenient iPhone and Android apps.

BullionVault gives you all of the benefits of owning precious metals with the comfort knowing that the security experts at Brinks Global Services are keeping it safe and accessible when you need it.

What could be better?


On Rumors that Zimbabwe will officially adopt the Bitcoin

4/16/2013 Portland, Oregon – Pop in your mints…

Much has occurred since our last correspondence.  First, tragically, another act of terrorism has rocked the land of the free.  Our thoughts and prayers go out to all affected.  Once again, we are reminded of Robert Kennedy’s speech on the menace of violence.  For those who have never heard it, it is well worth a listen.

Source IMF via the Money Game.
Source IMF via the MoneyGame

Well before the twin blasts interrupted a peaceful Boston afternoon, two of our key indicators and our investment of choice here at The Mint, silver, took an unprecedented bath.

No, the data below on both the Bitcoin and Gold price are not typos.  As a Goldman Report put it:  “There are weeks when decades happen” or something to that effect, with regards to the action in the gold markets.

Essentially, 500 tonnes of gold were sold in the most recent selloff.  Where it will come from or whether or not it will actually be delivered, nobody knows.  It is certainly fodder for those who claim these markets are manipulated.  Even so, there is no divine law as to what the price of things in US dollars should be.  As such, those involved in the trade must accept their random fate, no matter how unjust it feels.

The Bitcoin somehow found its footing around $65 USD after crashing down to the canvas from $260.

However, the amazing, or perhaps not so amazing, if you have read our most recent eBook, part of the story is that it is still trading around $65 USD.  This is an amazing commentary on the state of national currencies.  How long can the central bank issued national currencies compete when a lifeless logarithm is doing their job better than they ever could?

Bitcoins: What they are and how to use them
Bitcoins: What they are and how to use them

We, along with the rest of the Bitcoin community, have been developing some innovative ideas about how to make Bitcoins more accessible to the general public.  If you have $150,000 and care to help us launch the initiative more quickly (as an investor, naturally, this is not a charitable endeavor, at least, that is not the intention!) please email us for more information.  You could significantly reduce our launch time in what will soon be a highly lucrative and competitive market:  Building the Bitcoin infrastructure.

Perhaps our seed capital will come from none other than Zimbabwe.  Those who have followed currency matters will recall that just five years ago Zimbabwe gave the world a rare glimpse of hyperinflation and one trillion dollar bill.  In the now infamous words of Gideon Gono, Governor of the Reserve Bank of Zimbabwe:

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

In a page that has since been removed from CNN’s ireport {SEE UPDATE BELOW}, we saw a rumor that Zimbabwe was poised to adopt the Bitcoin as its official currency.  Perhaps Mr. Gono got a hold of our book?

{UPDATE 4/17/2013: The page has been updated and can be seen here.  It now appears that Zimbabwe rumor is now official, though unverified by CNN.}

Meanwhile, as Bitcoin, Gold, Silver, and Oil crash, the monetary measures continue to spiral out of control.  There are some big naked shorts out there, and Mr. Bernanke may, for a finale as Fed Chairman, borrow a page from Mr. Gono’s playbook circa 2009 in an attempt to cover them.  Given the IMF’s global growth forecast, we deem it a virtual certainty.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for April 16, 2013

Copper Price per Lb: $3.44
Oil Price per Barrel:  $88.97
Corn Price per Bushel:  $6.63
10 Yr US Treasury Bond:  1.72%
Mt Gox Bitcoin price in US:  $68.00
Gold Price Per Ounce:  $1,374 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  -0.2%
Dow Jones Industrial Average:  14,757
M1 Monetary Base:  $2,655,000,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,636,100,000,000

Jobs, Gold, and Bitcoins

4/5/2013 Portland, Oregon – Pop in your mints…

Today’s BLS jobs report was seen as an unmitigated disaster.  This should give the Federal Reserve the cover they need to turn Japanese with regards to their QE program (the BOJ came out with a QE program that is roughly 30%! of GDP over a year, by way of comparison, the FED has pumped out 15% of GDP in 5 years).

Bitcoins, gold, and silver jumped.  The management of what the world calls currencies is heading for the exits, and from the looks of things, so are many Dollar, Yen, and Euro holders.

Don’t bother to turn off the light or lock the doors, just get the heck out.  A four alarm fire coupled with an earthquake is on the verge of breaking out in the currency markets.  The monetary premium is looking for something to affix itself to, and it will trample many an asset class in search of it.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for April 5, 2013

Copper Price per Lb: $3.38
Oil Price per Barrel:  $92.70
Corn Price per Bushel:  $6.29
10 Yr US Treasury Bond:  1.69%
Mt Gox Bitcoin price in US:  $142.88
Gold Price Per Ounce:  $1,582 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  0.7%
Dow Jones Industrial Average:  14,565
M1 Monetary Base:  $2,534,800,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,501,300,000,000


Pacioli’s Gift or Bernanke’s Curse? is Now Available! and thoughts on today’s flight to safety

3/28/2013 Portland, Oregon – Pop in your mints…

At long last, the much anticipated fifth volume in our “Why what we use as Money Matters” series is available in on Amazon’s Kindle and over at Smash for your immediate reading pleasure.

Pacioli's Gift or Bernanke's Curse?
Pacioli’s Gift or Bernanke’s Curse?

The volume has a hero, Luca Pacioli, the Franciscan Monk who not only taught mathematics to Leonardo Da Vinci but dissimenated to Western Civilization nothing short of an economic super power.

It also has a villian, Central Banking, born of the super powers of dual-entry accounting, it uses this super power against humanity and has become dual-entry accounting’s arch nemesis.

How will it end?  At this point, you’ll have to shell out $0.99 and a couple hours of your time to find out.  However, by doing so, you may end up changing the world for the better.  Not a bad return on investment!

We pray you will enjoy it.

Today, Bitcoins traded near $100 USD, silver and gold continued to mysteriously get crushed, and US stocks, perhaps more mysteriously, continued to defy gravity.  What does it mean?

The events in Cyprus have once again caused a sort of flight to safety.  Unfotunately, the flight to safety is a very crowded trade, and is causing the US Dollar to suffer from an unwelcome bout of strength, or potential deflation.

Bernanke and the Fed will never stand for it.  US Dollar strength cannot be tolerated, and will be swiftly dealth with.  As it is dealt with in the coming weeks, Bitcoins, gold, and silver will seem like a steal at today’s prices.

Then there is the matter of the brewing war in Persia, but speculation on that scenario must wait, for the Passover is at hand.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for March 28, 2013

Copper Price per Lb: $3.40
Oil Price per Barrel:  $97.23
Corn Price per Bushel:  $6.95
10 Yr US Treasury Bond:  1.85%
Gold Price Per Ounce:  $1,597 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:  14,579
M1 Monetary Base:  $2,425,500,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,547,600,000,000

The Presumption of a Monetary Constant

3/26/2013 Portland, Oregon – Pop in your mints…

Today, we offer a second course on the menu of our upcoming eBook release, Pacioli’s Gift vs. Bernanke’s Curse, it is a chapter on the importance of a monetary constant when employing the methods of dual entry accounting.  Enjoy!

The Presumption of a Monetary Constant

Luca Pacioli was first and foremost a mathematician.  He understood that mathematics relies upon certain constants to remain, well, constant in order for the calculations that depended upon them to be meaningful.  Whether or not Pacioli was conscious of the fact, implicit in his presentation of the methods of dual entry accounting is the assumption that the money in which he was directing merchants to keep their accounts on the basis of was sound money.  The use of the monetary unit as a unit of account implies that he understood that money was to the economic world what constants were to mathematical calculations.

Also implicit in his assumption was that the monetary units which were to be used as units of account on the accounting ledger contained a constant weight of silver or gold which existed in the natural world.  Silver and gold that had been hewn out of the ground and struck into coinage of a set weight and metallic alloy by the men at the old Zecca, the Mint of Venice in the Rialto district which preceded its famous successor was completed in 1545.  This was an important assumption, as dual entry accounting only works when the accounts balance.  By design, it implies that physical goods are in existence or are reasonably expected to come into existence and become available for exchange.

When Pacioli penned Summa, the Venetian Zecca was one of the largest and most reputable mints in the world.  This reputation was born in no small part of a scandal at the Zecca which consummated with the Doges, who ruled Venice at the time issuing a decree on the 11th of November, 1457 against then noted variations in the weight and purity of the gold and silver coins that the Mint at Venice.  As a result of this renewed commitment to monetary purity, the coins which circulated in Pacioli’s time and locale, the Silver Ducat, Soldo, Lira Sequin, and Gold Ducat, served as the standard of trade in the world known to Pacioli.

Given that the Venetian merchants could count on this sound monetary standard on which to base their accounts and, by extension, their choice of activities, their use of dual entry accounting not only benefited their own interests, but had the side effect of benefiting all who circulated and traded the Venetian coinage, whether or not they had mastered the art of dual entry accounting.

Luca_Pacioli_Gemaelde by Jacopo de' Barbari circa 1496
Summa de Arithmetica, Geometrica, Proportioni et Proportionale – Pacioli’s great gift to Western Civilization

For those who had mastered the art of dual entry accounting in this environment, the ability to properly recognize and record their transactions and to make sense of the results gave them a sort of super power.  This super power, the ability to recognize the value of transactions over longer time horizons and therefore direct investments over longer time horizons, was further refined by Pacioli, who employed the use of Arabic numerals and proposed a system of mercantile accounting that could apply uniformly to all trades and nations.

However, dual entry accounting, as mankind is now coming to understand, is a two-edged sword.  For dual entry accounting to work in favor of those who practice and/or rely upon it, the unit of account must hold a stable value.  The assumption of the relatively stable value of the monetary unit in relationship to the natural world is essential for interpreting the primary output of dual entry accounting, the profit or loss signal.  The stable unit of account is also essential when evaluating the worth and employment of items that are represented by entries to the balance sheet, upon which the profit or loss signal ultimately depends.

In short, the stability of the monetary unit of account was essential if dual entry was to be relied upon for sound decision-making.

For the Venetians, this requirement was met by virtue of their relatively stable monetary unit.  As such, the Venetian Mercantile class rose to dominate the Western world.  Indeed, with few notable exceptions, dual entry accounting has rendered an invaluable service to mankind and has allowed human progress to follow a generally upward trajectory in terms of material well-being ever since Pacioli made his bequeath to mankind.

As a stable currency enables the super powers of dual entry accounting to operate, an unstable currency, of which there are numerous examples in the largest economies in the world today, circa 2013, is its kryptonite.  A currency that does not have a relatively stable value over long time horizons, specifically the time horizons required for large-scale investments of capital to be planned with the precision required for them to be successful, serves to render the gift of Pacioli powerless.

In doing so, an unstable currency threatens to take mankind from the comfort of their large screen televisions, sofas, and smart phones, and throw them back into the dark ages, from which the world that Pacioli lived in had recently emerged.

In the irony of ironies, mankind has unwittingly made use of Pacioli’s gift to create the largest system of unstable currency that the world has ever known, the one that has operated for the past 100 years.  This disastrous invention is known as central banking, and it has quickly turned the world’s economy into an unmitigated catastrophe waiting to happen.

Stay tuned for the release and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for March 26, 2013

Copper Price per Lb: $3.45
Oil Price per Barrel:  $96.17
Corn Price per Bushel:  $7.30
10 Yr US Treasury Bond:  1.91%
Gold Price Per Ounce:  $1,600 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:  14,560
M1 Monetary Base:  $2,368,600,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,521,800,000,000

I’m Latin, I can’t Keep Calm! Adios Euros

3/21/2013 Portland, Oregon – Pop in your mints…

On Monday, we shared with you our friend Tom’s first hand experience and general impressions with the Spain’s currency conversion from pesetas to the Euro.

Adios Pesetas: A look back at adoption of the Euro in Spain

The conversion to the Euro, for most practical purposes was a long, drawn out process which took two years to implement, starting with the final exchange rate peg to the Euro and culminating with the coin and bill conversion which Tom so eloquently described.

Adios Euros!
Adios Euros!

Today, thanks to the prospect of forced bail ins, the term for a levy or tax (depending upon your preferred term for asset confiscation) such as the one proposed in Cyprus which would bail out the government and/or banks, there is a run on banks throughout Iberia.

The reason is that the preference for the bail in solutions are now popping out of central banker’s mouths like pop corn.  Even Ben Bernanke, slave master of the US currency, has uttered that it would be a possibility.

However, this is the twenty-first century, and bank runs aren’t what they used to be.  For one thing, banks now have instant access to all of the digital currency they could possibly want.  It is a simple ledger entry for the bank to replace the customer’s deposit with a Central Bank liability.

However, there is still the matter of cold, hard currency.  As the Spaniards begin to withdraw currency en masse, the bank branches are bound to run out of Euros.  Thanks to technology, holding Euros, either in physical or digital form, is no longer an absolute necessity and, at this point, it is extremely undesirable.

According to a report at, Spaniards are getting a crash course on Bitcoin adoption:  Spain Bitcoin run has started

As the monetary authorities are just now beginning to understand the practical implications o

Bienvenido real money!
Bienvenido real money!

f forced bail ins, the peoples of the world are not content to stand pat while their leaders sqauble over how much to confiscate from whom.  Thanks to digital solutions like the Bitcoin, Spaniards and people the world over are making a run on banks from the comfort of their own homes on their smart phones.  The Euro, which took two years to implement, may be largely replaced in commerce in a matter of weeks.

Even so, the Bitcoin has its limits, as wealth held digitally has a flight risk of its own.  Silver and other hard currencies do not have this problem, and the first stages of the next leg up in Silver and Gold is commencing in lockstep with the Bitcoin app downloads in Iberia.  Either way, it is a unanimous democratic process whose end result will be the Euro being voted off the continent.

While the monetary authorities prepare their familiar mantra, “Keep Calm and Carry on,” the response in Iberia is ringing back “I’m Latin, I can’t Keep Calm!”

Neither should you.  Here at The Mint, we have taken the step of accepting Bitcoins in exchange for silver coins to deal with this contingency.  We ship worldwide and guarantee your satisfaction.  If you are interested, please email us at the address below for a quote as we have yet to fully automate this process.

Adios Euros!  Bienvenido real money.

Stay Fresh!

David Mint


Key Indicators for March 21, 2013

Copper Price per Lb: $3.47
Oil Price per Barrel: $93.15
Corn Price per Bushel: $7.32
10 Yr US Treasury Bond: 1.94%
Gold Price Per Ounce: $1,614 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: 14,512
M1 Monetary Base: $2,466,100,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base: $10,499,300,000,000

Tekoa Da Silva: A Bigger Boom Now Baked In The Cake – Gold and Silver Commentary

3/11/2013 Portland, Oregon – Pop in your mints…

With the precious metals seemingly trapped in a state of suspended animation, it is nice to come across analysis that digs into the fundamentals of the precious metals, both at the retail level as well as at the source, the miners.  For a time, we have seen a steady supply of silver at around $30.  The recent push under $30 has almost immediately raised the issue of supply shortages of the white metal.

Supply, of lack thereof, is the most compelling reason to hold silver.  With this in mind, we were fortunate to come across this fine analysis piece by Tekoa Da Silva which we present here for your perusal and enjoyment.  In this video presentation, Da Silva exhibits obvious enthusiasm for the prospects, if you will, for the gold and silver markets based on his conversations with the Perth Mint, who say all of their retail clients are holding their metals in the face of this down draft, and an adviser for the BMO group, who is again seeing a dearth of supply on the horizon as marginal mining projects are shelved.

It all adds up to a continuation of the bull market in the precious metals, as their production is inextricably linked, and demand for them at the retail level is just now increasing.

The much awaited spring rally may be just around the corner.  Enjoy!

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for March 11, 2013

Copper Price per Lb: $3.51
Oil Price per Barrel:  $92.04
Corn Price per Bushel:  $7.34
10 Yr US Treasury Bond:  2.06%
Gold Price Per Ounce:  $1,582 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:  14,447
M1 Monetary Base:  $2,481,500,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,377,900,000,000

On Debt Jubilees and the Fed’s Inflationary Crazy Train

2/21/2013 Portland, Oregon – Pop in your mints…

It has been an exciting couple of days in the financial markets.  We almost can’t bear to watch.  From what little we can tell, the out-sized effects of short-term funds, which are jittery in nature, are determined to drive anyone who is taking a long view on the market mad.

Most of what passes as equity investing today is done with short-term funding provided by the Federal Reserve.  No matter how much propaganda the Fed puts out promising to maintain their QE programs in full force or keep the pedal to the metal on ZIRP, it is an inescapable fact that funds at many of the Primary Dealers are short-term and can be pulled by the Fed on a whim.

Lately, between the sequester threat and the Federal Reserve meeting notes which can only be described as anti-inflationary propaganda, the short-term funds have been taking flight.  How long this will last is anyone’s guess, but it is and always has been the Fed’s prerogative.  Whatever market participants anticipate that they will do with the regards to the money supply flashes through the equity markets, as equities are essentially on the margin of visible economic activity.

Today we wish to bring two things to the attention of our fellow taxpayers, unfortunately both of them are somewhat ominous.  They are nothing new, mind you, but as the warning signals of the next crisis and its probable outcome begin to appear on the horizon, we thought it best to keep interested readers informed.

First, Lee Adler over at the Wall Street Examiner, who performs a great service to the economic world by slicing through the economic propaganda to analyze the true data, shared this piece which is worthy of reading.  It explains how the mountains of customer deposits are piling up at Commercial banks.  If, and more probably when these deposits begin to be deployed in the real world, asset bubbles and inflation will begin to pop up in the US economy like lava flowing down the side of a volcano.

His article can be read here:

Bloomberg Reports Biggest Story of All Backwards As Fed Blows Dangerous Deposit Bubble

If Mr. Adler is correct, the Fed’s inflationary crazy train may be about to leave the station.

We are compelled to warn you that the next quote, from a piece by Jeff Neilson at, may be enough to make your blood boil if you are not one of the privileged classes (in other words, most of us) that he believes will likely benefit from the upcoming “Debt Jubilee,”

So what will our 21st century Debt Jubilee look like? With History’s most-corrupt governments, expect the most-corrupt “solution.” The debts of our governments, the Big Banks, and the wealthiest Oligarchs will be totally erased. We will be told they are doing this to “save us” from drowning in their (reckless/fraudulent) debts.

However, the Little People will face a somewhat different future. Their debts will be maintained at 100-cents-on-the-dollar. The bankers, politicians and Oligarchs (via their Corporate Media) will tell us that this is necessary to “protect the integrity of the System” (their System).

Think this level of perversity/injustice is impossible? We already have precedent. After the Wall Street banks had caused (created?) the Crash of ’08 (with their reckless fraud/gambling); and after they took their $15+ trillion from the U.S. government in assorted hand-outs, 0% loans, tax-breaks, and “loss guarantees” (i.e. more hand-outs); the Wall Street banksters kept their massive bonuses.

We were told this was because of “the sanctity of contracts.”

Then after this massive give-away; various U.S. governments began unilaterally hacking-and-slashing the wages, pensions, and benefits of their own workers – which had been freely/fairly negotiated in their own contracts. The reason? After giving $trillions to the bankers; the workers were told the government “couldn’t afford” to honor their contracts.

The sanctity of contracts is important, as all that men and women ultimately have in this world is their word.  Unfortunately for most of us, we may soon find out just how much the government’s word is worth.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for February 21, 2013

Copper Price per Lb: $3.55
Oil Price per Barrel:  $93.03
Corn Price per Bushel:  $6.90
10 Yr US Treasury Bond:  1.98%
Gold Price Per Ounce:  $1,577 THE GOLD RUSH IS ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.9%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  13,881
M1 Monetary Base:  $2,384,300,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,419,300,000,000

The currency war to end all currency wars

1/28/2013 Portland, Oregon – Pop in your mints…

With Japan’s recent aggressive devaluation of the Yen, the financial news has again taken up the phrase “currency war” to describe any lack of coordination in the steady devaluation of fiat currencies across the globe.

In a recent piece over at the Financial Times, Niall Ferguson identifies the Bank of England as the current winner in the stealth currency war that is currently being waged.  While the Bank of England may be the winner, the losers are not other nations, as the term war would suggest, but rather the savings of those who are unfortunate to count bank accounts or debt instruments denominated in national currencies among their assets.

Who, then, are the winners in what we have dubbed the currency war to end all currency wars?  In a simplified sense, those who hold the Dow Jones Industrial stock index (not the individual stocks, which are, in the final analysis, a crap shoot) and those who own gold.

In an attempt to illustrate this point while at the same time saving 1,000 words, should the old adage hold true, we have created the following graph, which plots a normalization (which brings the sheer magnitude of the numbers down to a workable scale) of the M1 and M2 monetary measures against both the Dow Jones Industrial Average and gold prices, all averaged on a monthly basis since April of 1968.

Graph of Normalized DJIA and Gold assets classes vs. M1, M2, and Federal Funds Rate measures
Graph of normalized DJIA and Gold assets classes vs. M1, M2, and Federal Funds Rate measures

Those with a keen eye will notice that the only data point that has been on a downward trend since the US Dollar was officially released from the shackles of the gold standard on August 15, 1971 has been the Federal Funds Rate, which in theory should have an inverse relationship with all of the other data points.

We will leave you with three observations from our graphic exercise:

1.  The most volatile of the two asset data sets has been that of the Dow Jones Industrial Average.  However, despite its volatility, its overall trend tends to follow that of the M2, or expanded, money supply measure.

2.  The more stable of the two asset data sets has been gold, which has generally lagged growth in the M1, or base money supply to which it was tied to pre 1971.  Beginning in the year 2000, gold again began to follow the M1 trend.

3.  The light blue line, which tracks the Federal Funds Rate, has been on a downtrend.  The upticks in the Federal Funds Rate, in theory, should have lead to downward ticks in the M1 and M2   As you can see from the graph, this is not the case.

The conclusion of this brief analysis is the following:  Holding Stock Indices such as the Dow Jones should give some measure of protection against inflation over the long term, perhaps even superior to gold.  However, since 2000, gold has held steady as an inflation hedge and generally will have less liquidity risk than stocks.

Finally, and perhaps most importantly, is that upwards changes in the Federal Funds rate, even those as dramatic as were experienced during the Volcker years, have little or no effect on the near term trajectory of the M1 and M2 monetary measures and have never caused these monetary measures to trend downwards, ever.  At most, these movements may serve to temporarily arrest the upwards slope of the growth of the M1 and M2 monetary measures.

What does it mean?  While the Federal Funds Rate may serve to weakly toggle the rise in the M1 and M2 measures, the Quantitative easing programs, which began in 2008 and are now a permanent piece of monetary policy, have had a much greater direct impact on both the monetary measures and the asset classes which have been included above.

Given the current state of affairs, the QE program must be watched closely as it will have an outsized immediate impact on asset prices.

In the long run, it is clear that the Federal Reserve has set monetary policy on autopilot and programmed a course straight through the stratosphere and into the far reaches of outer space.  There is no plan for the US Dollar to return to earth.  The M1 and M2 monetary measures will not come down, no matter what happens to QE and the Federal Funds Rate.

It is time to organize investments in the real world accordingly.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for January 28 2013

Copper Price per Lb: $3.64
Oil Price per Barrel:  $96.52
Corn Price per Bushel:  $7.29
10 Yr US Treasury Bond:  1.97%
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:  13,881
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, just enter coupon code: MA65L

Thank you for your support!

Of Money and Metals by David MInt


What is Money? A quest to answer the question of the ages

Be the first to download our latest e-book, free until February 7, 2013:

What is Money?  A quest to answer the question of the ages

It is the first in our ‘Why what we use as Money Matters” series and is available now at, coupon code: PG74U

What is Money?  By David Mint

Jim Willie on the Petro-Dollar Sunset via

An article on the emergence of new trading and commerce platforms in the Orient and middle east:

Open Debauchery of the Money Supply

12/21/2012 Portland, Oregon – Pop in your mints…

As the world carries on we offer a glimpse of what is to come.  Two playful headlines that have appeared in the past two days which is essentially an advertisement that inflation has taken hold and will not soon go away:

U.S. Mint testing new metals to make coins cheaper

This article confirms what metals watchers have known for some time now, that the US Mint will have to change the content of pennies and nickels, at a minimum.  The Nickel inflation hedge we’ve mentioned before is about to go into effect.  You can read the gory details in the US Mint’s 2012 Biennial Report to Congress on the matter.

Next, we see that, strangely it seems, demand for $100 bills has begun to pick up.

Cash is King:  Printing of $100 Bills Soars

It appears that the dollar debasement is hitting main street.  To keep tabs on the matter, we refer you to the M2 money supply which we present below in our Key Statistics.

The debauchery of the US currency is now hitting the street, which may mean its days are numbered.  Once the moronic Fiscal Cliff and the upcoming Debt ceiling redux in March 2013 are resolved, the party will begin in earnest.

We reckon that over the next few months there will be a narrow window to get precious metals at what, in retrospect, will be a bargain price.  We look for the price to rise in fits and starts from early January through March, then take off through May.  Part of this is seasonal, and part of it is the debauchery related above.  However, it is the debauchery which will punctuate the upcoming move.

We would like to take this opportunity to send you all a big hug and wish you and yours a Merry Christmas and a Happy Holiday Season from us here at the Mint!

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for December 21 2012

Copper Price per Lb: $3.55
Oil Price per Barrel:  $88.66
Corn Price per Bushel:  $7.02
10 Yr US Treasury Bond:  1.75%
Gold Price Per Ounce:  $1,657 THE GOLD RUSH IS ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.7%
Inflation Rate (CPI):  0.1%
Dow Jones Industrial Average:  13,190
M1 Monetary Base:  $2,374,000,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,428,000,000,000

Perpetuation of the Trillion dollar coin solution to US Debt

As our site name implies, we have more than a passing interest in monetary theory.  As such, ideas for new types of coin and currency are of special interest.  When the value of the coins proposed contains an insane amount of seigniorage, we are compelled to call it out.


The Fiscal Cliff melodrama playing out in the halls of US Federal Government’s Capital has given rise to the above mentioned monetary insanity.

As the so called, moronic “Fiscal Cliff” false alarm approaches, it becomes more common for those of a Socialist/Statist leaning philosophy to search for easy solutions to what amounts to enabling catastrophic policy failures, out of control spending, and unsustainable debt pacts.

This is not surprising, as Socialism and economics are incompatible philosophies. Anyone who claims otherwise either mistakenly applies small system theory to large scale systems or is a shill. From one of these insane theorists comes the idea of the US Treasury coining a trillion dollar platinum coin to deposit at the FED, who would then cancel the Treasury’s debts.

This will not happen, first and foremost, because the insane monetary system relies on debt as its lifeblood, as such, any debt cancellation by the underlying foundation of US Treasury debt is out of the question.

Second, it must be recognized that coining a trillion dollar coin, theoretically equal to 1/60 of global GDP, that anyone other than the FED would accept at face value, is impossible, it simply flies in the face of reason.  The FED has been paying 100 cents on the dollar for the MBS toilet paper that banks have sold to them for years now, as such, any concept of value left the halls of the Federal Reserve years ago.

The third reason is that the US debt at the FED has already been largely canceled via the FED’s various QE operations over the past several years. For the reasoning as to why the official US Debt held by the FED hasn’t been lowered to better reflect its true drag on GDP, we refer fellow taxpayers back to reason one.

We will present more data to back this claim in the coming week. In the meantime, if someone offers you a trillion dollar coin, be sure to check the spot price of platinum before making a more reasonable counter-offer. In any event, you are better off holding the platinum, as someday it will be worth are least a trillion Federal Reserve notes, the shills at the FED and Treasury have assured it.

Ballot burning, our breaking point, and why the next Gold Rush just began

11/9/2012 Portland, Oregon – Pop in your mints…

The 2012 US Presidential election is over, and the only thing that remains to be seen is whether or not the No vote will maintain its absolute majority.  At last count it was 50.2% and will go down to the wire.

For our part, we finally got around to burning our mail-in ballot last night.  For those who will lament that we did not perform our civic duty, we report that we did give it a cursory check to make sure there were not City or County measures which required our input.

If you are joining us late in the game, we presented our personal reasons for not voting a few weeks ago.  To be fair, we have never been much for voting, mostly attributable to our inner laziness.  However, this time was different.  We made a conscious decision not to participate.  We decided not to to meddle in the affairs of others.  We took the position that the largest sphere of influence which we could, in good conscious, cast our vote over others was at the County level.

Our County generally fulfills its commitments and is solvent.  As such, it meets our criteria for an operating Socialist system.  The State and Federal level do not.  We did not reach this conclusion through logical contemplation, rather, we had a minor breaking point with regards to the political systems at the higher levels as we read to our son about the Trail of Tears, which moved us to tears and, as a consequence, this form of peaceful resistance.

The rest, including what you, fellow taxpayer, are reading, is a slow digestion and reflection upon our weeping over the Trail of Tears.

For the record, we do not buy into conspiracy theories (although trading on them can be very profitable) nor are we cynical enough to say, along with Emma Goldman, “If voting changed anything, it would be illegal.”  What we do know is that we can no longer endorse the killing and robbing of people with whom we have no quarrel and who pose us no existential threat.

In a sense, we are peacefully surrendering our “right” to participate.  Were the government to suddenly stop taxing our wages, income, gasoline purchases, telecommunications, and capital gains, we may go as far as to relinquish the “right” to Social security, roads, and such.  On this point, however, we will not hold our breath.  Nor will we actively avoid taxes or reject monetary benefits which come to us.  This is a broader question which we will not delve deeper into today.

Speaking of taxes, the election seems to have ignited what may be the blow off phase in the precious metals markets.  Please read on…

The new Gold Rush, The triple Fiscal Cliff, and logical consequences

The market selloff continues today, as the logical consequence of the expectation of higher taxes manifests itself.  While we believed that higher taxes were coming, no matter who was elected, it is nonetheless fascinating to watch what is unfolding in the equity markets.

For a bit of background, the Federal Reserve, ECB, Bank of Japan, England, and all entities in the Central Banking industry are putting the throttle down and printing money at a breathtaking pace.  This has been enough to keep equity prices “afloat” with relatively minor nominal price drops.

However, the drop in value, commonly known as purchasing power, has truly been staggering over the past several years.  If you track such things, look at your grocery or utility bills for proof.  You are probably either paying more, getting less, or some combination of these double whammies.

The election results appear to have triggered a decoupling of the commodity and equity markets for the foreseeable future.  Meanwhile, while bonds are rallying as those who hold large unrecognized gains in equity positions choose to recognize them before December 31, when the clock strikes midnight and any gains left on the table will be taxed out of existence {Editor’s note: this is figurative language and speculation, of course}.

This is the logical consequence of the fiscal cliff.  When the election was called for Obama and control of the Senate and House looked to remain the same, equity holders saw the writing on the wall.  The stalemate at the Federal level will remain in place and the probability of the US plummeting off of the dreaded Fiscal Cliff (which, we remind you, is purely a government construction) greatly increased.

While some window dressing will no doubt be presented as the solution, those holding large equity positions will be seen as “new meat for the grinder” and likely will be the next lamb sacrificed on the alter of fiscal irresponsibility.

But it is not just the US looking over a fiscal cliff.  The anticipation of the US Presidential outcome distracted attention from the dire situation in Greece, where in 8 short days, the government will be out of funds and the once vaunted “Troika” now stands by, unwilling to throw more money at them.

Then there are the Spaniards.  Having lived three years in Barcelona, we have a special affinity for the Spanish in general and specifically for the Catalans.  While the Greeks may be coerced into having more conditions shoved down their throat, the Spanish situation is a bit more complex.

The Spaniards are smart, and the Catalans are even smarter.  Catalunya knows that they are indispensible to Spain.  They have also spent the past 30+ years building systems to ensure that they can operate perfectly well without the Spanish Feds in Madrid.

Those in Madrid know this, and are holding the threat of Catalan secession as their Ace in the hole which, at this point, has allowed them to extract concessions from the ECB, all the while avoiding surrendering what is left of their Sovereignty to Brussels as the Greeks, Irish, Portuguese, and Italians have.

Will the can which has been kicked down the road in Europe finally get kicked off the Euro Cliff?  Even if it doesn’t, the Spanish firecracker inside of the can will go off at some point and blow up the proverbial can, at which point all bets are off.

With the two largest, debt based financial currencies in the world facing unprecedented uncertainty and the prospect of higher taxes on the horizon, one has to question the wisdom of holding anything but physical gold and silver in place of financial assets.

This, along with the ongoing tension in the Middle East and that crazy Mayan prophecy, is why we believe that the final blow off in the gold and silver markets is at hand.  There is still time to get in and these quasi currencies have plenty of room to run.  While the physical production fundamentals are less compelling than they were 10 years ago (a 440% rise in price will tend to encourage production), the financial backdrop has never been more favourable, and its about to get even better.

Just remember, buy and hold the physical metals, as ETFs and futures will likely not catch all of the upside of this monumental move.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for November 9, 2012

Copper Price per Lb: $3.46

Oil Price per Barrel:  $85.14

Corn Price per Bushel:  $7.45

10 Yr US Treasury Bond:  1.63%


Gold Price Per Ounce:  $1,730 THE GOLD RUSH IS ON!

MINT Perceived Target Rate*:  0.25%

Unemployment Rate:  7.9%

Inflation Rate (CPI):  0.6%

Dow Jones Industrial Average:  12,862

M1 Monetary Base:  $2,394,100,000,000

M2 Monetary Base:  $10,168,900,000,000

The last four years have been good for silver

The Obama Presidency, despite the Change rhetoric, was simply a backdrop for the larger debt crises which will continue to unfold over the next four years, regardless of who assumes the role of the scapegoat when the polls close tonight.

As such, the following chart, courtesy of the money game, is instructive in that silver investors can rest assured that the next for years will be even better as the underlying trends, which began circa 2000 CE, are about to accelerate.


Is the trend your friend? We sure hope so. If not, visit your local coin shop and get to know him soon.