Category Archives: Spain

Catalunya Employs Classic Democracy as Oregon Taxes Weed

11/9/2014 Portland, Oregon – Pop in your mints…

For those among our readership who do not follow Spanish Politics, Catalunya, the region of Spain most easily recognized by its leading city, Barcelona, held a vote on two matters of the utmost importance to the Catalans. The questions were posed in the following manner:

1) Do you want Catalunya to be a State?

2) Do you want that State be Independent?

The vote today in Catalunya, of which 80.72% voted “yea” on both questions, was not sanctioned or recognized by the Spanish government in Madrid, other than to say it was nothing more than propaganda.

According to The Guardian, roughly 2 million of the 5.4 million persons who were eligible to vote cast a ballot today, a roughly 37% turnout, which means that today, roughly 32.3% of those living in Catalunya took the time to submit a symbolic ballot in favor of their Independence from Spain. For a quick comparison of this figure, 68.9% of eligible voters cast a ballot in Spain’s last General Election in November of 2011.

L'Estelada Blava
L’Estelada Blava

While voter turnout today in Catalunya may not seem impressive on the surface, it takes on more meaning when one considers that, as it was unsanctioned by the Spanish Government, over 40,000 volunteers took it upon themselves to receive and count the ballots.

The Catalans have employed what we call Classic, or Grass-roots, Democracy in an effort to allow their citizens to determine in a civilized manner the most basic of questions with regards to self governance: Shall we, as a region, be Independent?

Admittedly, Catalunya is in a unique position to do so. Most regions, for which Independence is more a romantic idea than a practical one (the most recent example being Scotland’s referendum to break ties with the UK), have much to lose and little to gain by declaring Independence. Catalunya, on the other hand, is essentially self-sufficient and for them, remaining part of Spain has little upside.

For a time, the argument could be made that Spain provided Catalunya access to markets that it otherwise could not have sold into. Today, this is a non-issue, as the EU trade agreements would continue to cover an Independent Catalan State.

The Spanish Government has a big problem. While Spanish officials are swiftly and publicly denouncing the Catalans for holding what, in their mind, had already been declared an “illegal” vote, the Catalans have cleverly and very publicly made a mockery of what passes today as “Democracy” in the Sovereign States of the world who embrace this model of governance.

For what is Democracy if not the people’s right to self determination? Yet modern democracy for most boils down to questions of which hand picked candidate will occupy an embedded power structures, and whether or not to increase the existing tax and regulatory burdens imposed by this power structure.

With today’s actions, the Catalans struck at the heart of the existing system. Our guess is that one day, they and many other regions in similar situations will enjoy sovereign status as peers to their former oppressors in the EU.

Throwing off the EU’s chains, however, would be a matter settled by arms, as the French, American, and every other successful revolution against the clutches of Empire have shown. It is not the nature of Empire to negotiate or put to vote matters of self-determination.

Oregon Taxes Weed

In our local elections, our fellow Oregonians chose to decriminalize marijuana. Joining them were the people of Washington, DC, making a total of four jurisdictions in the US that have changed the innocuous plant from a huge drain on tax revenue to a potential source of revenue with the stroke of a pen.

Weed: It got your parents kicked out of school, now it can pay for yours.

Which way did The Mint vote on the issue? We didn’t. You can read our reasons for abstaining from voting on State and Federal Matters in the links below:

Ballot Burning, Our Breaking Point, and Why the Next Gold Rush Just Began (notice the reference to Catalunya’s Independence preparations)

Three Reasons Why We’ve Stopped Voting, The Trail of Tears

The Silent Majority, Why No One Will Win the 2012 Presidential Election

As the Catalans have seen in the case of the Spanish, government, once it exceeds a certain size, ceases to serve the people who created it and becomes at best parasitic and at worst, antagonistic and violent as it increasingly resorts to the use of force in an effort to advance a failed system.

Can Catalunya peacefully remove the yoke?

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Key Indicators for November 9, 2014

Copper Price per Lb: $3.07
Oil Price per Barrel (WTI):  $79.02

Corn Price per Bushel:  $3.67
10 Yr US Treasury Bond:  2.31%
Bitcoin price in US: $361.80
FED Target Rate:  0.09%
Gold Price Per Ounce:  $1,179

MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  5.8%
Inflation Rate (CPI):  0.1%
Dow Jones Industrial Average:  17,574
M1 Monetary Base:  $2,939,700,000,000

M2 Monetary Base:  $11,485,000,000,000

Why the IMF has no clue how to deal with the Spaniards and Italians

10/15/2013 Portland, Oregon – Pop in your mints…

As the world continues to bite its collective nails while it waits for the US Government to decide whether to punt the ball down the road another stretch or capitulate on its debt in what we have dubbed “The Ultimate Stimulus Measure,” the IMF is busy scolding the US Government and proposing hack solutions which completely miss the point.

Just try to tax usThe world that the IMF operates in exists only in theory, it is like the perfectly closed system where energy is a constant which is the the basis of many physics theories.  On one hand, the assumption of a closed system is the only way to test a hypothesis.  On the other, to assume that the closed system is a given in real world situations is folly in the physics profession.

While the physics professor recognizes the limitations of his theory in practice and makes the requisite adjustments, these limitations are all too often lost on the IMF and others in the economics profession.  The situation of the latter is dangerous, as for some bizarre reason their theories influence wide-ranging policy decisions which affect the lives of billions based on its closed system fantasy.

Such is the case with the recommendations made in its October 2013 World Economic and Financial Survey which is eerily titled “Taxing Times.”

Taxing Times IMF 10-2013

In the report, the IMF makes two data driven observations:  That the national debt load in certain Euro zone countries is excessive and that there is a certain level of net family wealth in these countries.

Fair enough, however, what happens next is disturbing, for it reveals both the closed system fallacy as well as the arrogance of those at the IMF.  The IMF takes the above two data points and arrives at the following conclusion:

A one time, 10% tax on net family wealth in certain heavily indebted countries would make the national debt loads once again “manageable.”

If you have yet to laugh, cry, or hurl at what we have just described, you may stop reading as you are unlikely to get what follows and reading it will be a waste of time you can otherwise spend watching CNBC or the teletubbies.  Please carry on.

If you are still with us, allow us to heap it on by adding that the IMF believes that this one time family wealth tax would help as it would simply reduce the national debt, specifically in Italy and Spain, who, true to form, have managed to avoid full-scale bailouts suffered by the Irish, Greeks, Portuguese, and Cypriots to this point and gamed the ECB into issuing bonds on their behalf.

This last point should give you, fellow taxpayer, all the information you need to understand why, as ludicrous as a family wealth tax sounds, it becomes even more ludicrous when one thinks that it can be imposed on Spaniard and Italians, who are hands down the world champions in tax avoidance.

The governments of Italy and Spain have managed to have the ECB foot the bill for their respective bailouts to this point.  However, the only reason they need a bailout in the first place is because their citizens are experts in tax avoidance (it is a genetic adaptation acquired during Roman times which has grown stronger and more agile over time, that is all you need to know.)

Now, the IMF, in its infinite wisdom, glances at the problem and a dim light bulb goes on!  If you just tax 10% of each family’s wealth, you can reduce the national debt to an acceptable level!  “Voila,” says Lagarde!  “C’est comment son fait!”

“The genius of the tax,” she continues “is that it is one time only, so it won’t have any effect on investment or savings preferences!  Its perfect, I tell you, perfect!!!!”

This is why she’s paid 300,000 pounds a year, of course, to put two and two together.  At this moment, Christina Lagarde has now transformed into Cruella DeVille, the villainess of Disney fame (a transformation that requires only a slight wardrobe adjustment and a little imagination.)

As word of the IMF’s latest ploy spreads, the few Spaniards who have not opened a Bitcoin wallet called up their grandchildren and asked them to do it for them.

(Wondering what a Bitcoin is?  Check out our reasonably priced e book on the subject here)

By the time any sort of 10% one time wealth tax hits the Spanish and Italian Peoples, there won’t be a peseta or lira, er, Euro to be found from the Pyrenees and Alps to the Mediterranean coast, where avoiding the looting hands of emperors has been a national pastime for over 2000 years.

Stay tuned and Trust Jesus!

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for October 15, 2013

Copper Price per Lb: $3.28
Oil Price per Barrel:  $101.38
Corn Price per Bushel:  $4.37
10 Yr US Treasury Bond:  2.70%
Mt Gox Bitcoin price in US:  $152.89
FED Target Rate:  0.09%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,277
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.3%
Inflation Rate (CPI):  0.1%
Dow Jones Industrial Average:  15,236
M1 Monetary Base:  $2,689,400,000,000
M2 Monetary Base:  $10,790,700,000,000

Columbus dons Barça gear at Nike’s request

image

Sergio Garcia climbs a tree to hit one-handed second shot

Nice shot Sergio:

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 Zerohedge.com, 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

Email: davidminteconomics@gmail.com

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%
FED Target Rate: 0.15% ON AUTOPILOT, THE FED IS DEAD!
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

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

3/18/2013 Portland, Oregon – Pop in your mints…

The following is an essay written by a dear friend of ours, Tom Baker, in February of 2002.  Tom and his wife have lived in the region of Catalunya for a number of years.  His observations regarding the currency transition which was about to take place in Spain from pesetas to the full adoption of the Euro may prove timely if and when a similar event takes place in your locale.  Enjoy!

Adios pesetas

A major milestone has come to Europe with the introduction of the common currency known as euros.  Actually the Economic Union of 12 countries (Trivia question–can you name the 12 countries? answer below) has been on the euro standard for the last 2 years, with exchange rates fixed permanently between the currencies of the member countries.  Everyone was really using euros, but they just looked different in each country.

Now in the last month, the last major hurdle has been addressed with the withdrawal of all local currencies from circulation, and their replacement with euro coins and bills.  Think of the problems involved in changing the currency of 12 countries (approximately the size of the US) with 12 different monetary systems simultaneously.

Prices for goods have been posted in both pesetas and euros in the larger stores for the last year to accustom people to thinking in euros.  It isn’t easy-we have gotten used to valuing items in pesetas, and even though the euro is close to a dollar in value, that hasn’t helped much.  So it must be worse for those that have lived with pesetas all their lives.

Spanish FlagThe schedule is for 2 months of dual circulation, with only euros after that.  Now for some details of the tactics used.  Most cash registers are electronic and have been reprogrammed to handle both currencies.  Banks had kits of euro coins available in December for their customers so people could start getting used to the feel and appearance, but they could not be used until Jan 1.

The big change-over day (Jan 1) was of course very quiet, the major change being that most cash machines only dispensed euro bills.  Then the tactic to force the change-over was that customers could pay in either currency, but always received their change in euros.  So all the stores were sucking pesetas out of circulation.

It was a bit chaotic in the first week, with small merchants having to do the conversions on calculators.  Lots of mistakes were made, lots of people were confused, but the pesetas were disappearing briskly.  A few operations had problems with machines that accept coins, especially the toll roads.  So they decided to shut down the automatic coin machines until the conversion period is over, giving them time to convert them to euros.  If you want to pay cash, you have to give it to a human operator, otherwise use a credit card for automatic payment.EU-flag

The use of credit cards in general was encouraged to reduce the demand for change initially.  There were some shortages of coins, especially when the big traditional sales kicked in on Jan 8.  Now after a month of usage, the euros are seeming more natural and the prices are starting to make sense.  Pesetas have disappeared-all transactions are in euros now.

[A cartoon that I saw showed a bank robber at the counter, and the cashier asked if the transaction would be in pesetas or euros].

In our house, and I’m sure in most others, there was a sweep to collect all the pesetas and get them spent.  Then you find another coat pocket with a handful of coins, plus an envelope with French francs, another with Italian lira, etc.  There are cans with slots in all the banks for those last few stray pesetas to help children around the world.  We’re going to haul our francs to France for one last meal there before the pumpkin-hour.  The lira we sent with friends that are visiting Italy.

If you are holding on to European currency, send it to me immediately :-).  No, just kidding, but you do need to change it.  Bills you should be able to change at major banks until March 1 when all local currencies will disappear; after that you will have to change the money at the state bank in the country of the currency.  They predict that at least a third of the currencies will never be turned in.  That is pure gravy for the governments.

A side effect of the change-over is its effect on black money.  Spain and other areas of Europe have a sizeable underground economy, with all transactions in cash, not reported to the government for tax purposes.  Now some people are stuck with bundles of currency that will soon be unusable.  So the sales of luxury items skyrocketed in December, especially expensive cars.

Also there seemed to be a lot of money being poured into new construction, and housing prices have risen dramatically in the last year.  We will see if they subside in the coming year.  The government has promised to look into suspicious purchases of luxury items.  There were reports of Germans hauling carloads of marks into Switzerland.

On your next trip to Europe, you will find things much easier, with only one currency to carry unless you visit England, Switzerland, Denmark, Sweden, or Norway.  I wonder how much this will affect tourism into these countries?

The last thought is the number of colloquial sayings that will disappear from the language.  “No vale ni un peseta” = “It’s not worth even a peseta”.  The common words used for money were duros (5 pesetas, or like a nickel), and pelas (1 peseta).  These will disappear.

Euro coins:

1, 2, 5 Cents, Centims, Centimos-Copper colored
10, 20, 50  Cents-Gold colored
1, 2 Euros-Gold outer band, silver inner section

The “front” side of each coin is unique to each country, while the “back” side is common to all.

Euro Bills: 5, 10, 20, 50, 100, 200, 500

Euro countries:  Spain, Portugal, Ireland, France, Germany, Austria, Italy, Greece, Holland, Luxemburg, Belgium, Finland

We wish to thank Tom for allowing us to share his essay with you, our fellow taxpayers.  It is both an interesting, first hand look at a significant event in the history of world currencies as well as an instructive guide as to how one may prepare and what to expect should the monetary authorities in your locale choose to swap their existing national currencies for some flavor of supranational currency, such as the Euro.

At the time the Euro was adopted, it appeared to have a number of benefits for the adherents despite the minor inconveniences and sometimes painful price adjustments (we are told that the typical café, which before the Euro went for 100 pelas (see above) was immediately repriced up to a round 1 Euro (roughly 162 pesetas), an instant 62% increase) that were experienced in its adoption.

Now, some eleven years later, five of the countries on the above list have experienced significant economic distress, while others teeter on the fine line between growth and solvency.

It is important to note, however, that the countries that are now in distress experienced substantial economic booms related to the Euro adoption.  Their governments were allowed to borrow at rates which were aided by the strength of their European neighbor’s finances and, as Tom pointed out, the Central Banks made a windfall profit on the quasi confiscation of nearly 1/3 of the currency in circulation.

Was it worth it?  In terms of currency history, 11 years is a bit too soon to make a call, but either way, we have a feeling that a similar sort of currency “consolidation” awaits many in the not too distant future.  It will not be some sort of conspiracy, as many believe, but simply an attempt by the desperate governments of the world to shore up their ailing finances.

It will ultimately fail, but that time may be farther off than it seems.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for March 18, 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:  14,496
M1 Monetary Base:  $2,466,100,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,499,300,000,000

86! The incomparable Lionel Messi breaks the scoring record

Watch the master at work netting 86 big ones.  Amazing:

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

Email: davidminteconomics@gmail.com

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%

FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!

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 Catalan Independence Movement – A Memory and a brief analysis

A quick note to share a smattering of links and thoughts related to the Catalan Independence movement and the latest wave of anti-austerity protests in the Club Med region:

Courting disaster in Spain via creditwritedowns.com

The eleconomista.es article referenced, which should be cause for alarm:  Militares advierten a Mas de las consecuencias de promover la “fractura de España” (The Military warns (Artur) Mas (Catalunya’s regional president) of the consequences of promoting the “break up of Spain”)

and this on broader unrest in Greece and Madrid from Reuters via Yahoo!:  Anti-cuts protests erupt on streets of Athens and Madrid

The people of the Mediterranean states are no fools, they realize that they have been made the scapegoats and guarantors for years of mismanagement by their parasitic central governments and banking sectors.  In a reasonable world, where the government respected its citizens, a region like Catalunya would have the right to shrug off the debts of the central government and make a go of providing basic services on its own.

Flag of Catalunya
The Catalans deserve better

Something, that most Catalans will point out, it is capable of doing very well.

However, when it comes to sovereign debt, it appears that there is no escape for the capable.  Rather, the noose is generally tightened as the central government becomes increasingly desperate for revenue.

All reasonable dialogue is thrown out the window, and the central government makes a nationalist appeal and orders subservience at the point of a gun, as evidenced by the statement issued by the Spanish Military Association to Artur Mas.

The statement comes in response to protests calling for Catalan independence that included one in five Catalans (1.5 Million of 7.5 Million).  

We must note, however, that the Catalans are an unusually peaceful people, and the chances of widespread violence are nil.

We were attending grad school in Barcelona when the tragic Madrid train bombing occurred on March 12, 2004.  Apalled by the violence, we participated in a protest of similar size.

It was beautiful.

We took the Metro to Passeig de Gracia and slowly streamed down Barcelona’s grandest boulevard.  As we came together with the main march, it was apparent that this was a large event which was hell-bent on rejecting the violence with an overwhelming show of peace.

No al terrorisme, No a la Guerra by Kippeboy via wikimedia commons
No al terrorisme, No a la Guerra by Kippeboy via wikimedia commons

As we marched down the Paseo, from time to time the procession of millions would stop, clap our hands, slap our legs, and then hold our hands, palms out, in front of us in silence in a grand gesture that shouted through the silence:

Enough

Adin Ballou would have been proud.

Enough of terrorism, enough of war.  This message came to the world in stark contrast to the regular reaction of an eye for an eye that had been pursued up to this point with predictable results.

We pray that this latest round of protests in our beloved Catalunya and Spain end in a similar fashion, with a firm and peaceful rejection of austerity, and a show of solidarity and goodwill towards men.

A Happy Ending to the Euro 2012 and the Futility of European Elections

For the few who missed it, Spain handily defeated Italy yesterday, proving Moody’s wrong once again and making us 1-0 on Euro cup calls here at The Mint.  The Spanish national team, which has won each Euro and World Cup since 2008, will now go down as one of the greatest national teams of all time.

Spain downs Italy as The Mint goes 1-0 on its Euro 2012 prediction

The continent will now turn its weary eyes to the Olympic games, while those who can afford it prepare for their constitutionally guaranteed summer vacation (no kidding, the EU high court has held it as such).

Unfortunately for footballers and vacationers alike, Europe is operating in a perpetual crisis mode, and it is possible that vacationers will return to a Europe that is quite different than the one they left just 30 days before.  One in which their options are limited and their ATM card doesn’t work.

Yes, what started as a minor Hellenic financial problem has predictibly mushroomed into a political crisis at the highest level of the EU.  Voters, fed up with the bailout/austerity approach to banker welfare, increasingly exercise what is left of their sovereign right to vote out relative conservatives and/or moderates and vote in technocrats and/or populists as their fearless leaders.

Here is another prediction, for what its worth, the populists take Germany in the fall of 2013, Europe’s version of Mega Maid will have turned all the way from suck to blow.   The path of austerity that they are currently on will be but a faint memory as the ECB and policy makers move from bailing out the bankers to bailing out any and every political ally.

{Editor’s note:  A populist, for our purposes, is a socialist who no longer masquerades as a conservative or moderate, they are out of the closet, as it were.}

Yet for all the drama and human suffering that is unfolding, we can’t help but think that this is all simply a high priced publicity stunt to get the doomed Euro currency some air time.

For many of the European peoples, the Euro currency has served as nothing more than an unwanted crash course in math and an agent of larceny on the grandest of scales.  The average Jacque, Giorgos, Jorge, or Giovanni would have been better off in the long run had the Euro never been dreamed up.

Rising Populism in Europe to test the ECB’s commitment to elasticity

However, the continued use of the Euro is an extremely high priority to for a select few with addreses on Wall Street, in The City, and anywhere in Germany.  As such, the current tack for the doomed Euroship is for it to be spoken of in the same context as climate change or terrorism, which invariably involves an increasingly illogical and alarmist rhetoric.

The question of whether or not something should be done is glossed over in favor of handing supreme power to a body who demands that something be done.  The only rhetoric that is allowed beyond fear mongering is a discussion of what the supreme power should do.

And so it is with the Euro.

There will be a number of elections over the coming months in the Eurozone, and not one of them will matter.  The tone in Europe is turning decidedly populist, as George Friedman eloquently describes in his recent Geopolitcal Weekly report via Stratfor:

The Futility of European Elections

The only question that remains is whether or not the ECB will accomodate the populist agenda with an accomodative monetary policy.

Our guess is that they will, for populism has never been bound by fiscal restraint.

 

Spain downs Portugal 4-2 on penalties, Euro 2012 prediction intact, Faith and Courage in the face of hegemony and collapse

6/27/2012 Portland, Oregon – Pop in your mints…

We are emotionally drained here after Spain’s victory over neighboring Portugal in the Euro 2012 semifinal which took place in the Ukraine.  From what we could tell, soveriegn credit quality was not mentioned nor did it have an impact on the match.  As such, the correlation between a country’s sovereign credit quality and Euro cup performance is still being tested.

Spain downs Portugal! Euro 2012 prediction intact

If Germany downs Italy tomorrow, the hypothesis will hold, at least as far as the semifinals are concerned.  We are predicting that Spain will disprove the hypothesis in the final and take the cup home.

Yet the Euro 2012, as are the Olympic games, which commence in just one tender month, are large scale distractions from the disease that ails the world and is threatening to rip it apart.  Yes, fellow taxpayer, the insane “debt is currency” monetary experiment of the past 40 to 100 years is beginning to disintegrate.

Someday the historians will write about our times and lament:  “They used debt as money, and corn as fuel,” or something to that effect.

While modern life is full of such contradictions, there are few with the potential to wreak such havok as the one where debt is forced into the role as money, which is akin to water being forced into service as oil.

But what is so bad about debt based currency?  Doesn’t the ability to create money at will buffer everyone from suffering another depression?

On the contrary, the fickle nature of electronically created debts masquerading as money is economic suicide.  This demands an explanation that we will not unduely withhold, for it about to burst out of us.

Capitalism is man’s only productive reaction to his Anarchic surroundings.  It is inevitable that man would choose an increasingly free and capitalistic society as he gains a deeper understanding of natural law and his rightly understood self interests.

The expansion of the capitalistic system relies upon the division of labor in which men (we include women as we use the term “men” to define all of mankind) increasingly abandon self reliance and begin to trust their fellow men to provide them with life’s essentials.

This process is good, for it inspires and encourages widespread effeciencies in all spheres as man’s natural tendency to economize is rewarded as his actions align with what we refer to as the demands of anarchy and the natural economic law of supply and demand.

While this process is good, it is dependant upon capitalistic principles to operate in all spheres without exception.  Any part of the system which succombs to hegemony (what we refer to as ‘Might makes right“) by one party causes all of those who mistakenly rely upon that part of the system to become vulnerable to its collapse.

The hegemonic parts of the system are prone to collapse because their existence is no longer owed to willing participation, but the use of force.

At the risk of oversimplifying a complicated issue, the more an organization encourages willing participation, the more it must adapt to the wants and needs of its clients.  The process of adaptation makes the organization extremely strong and stable.  It becomes a rock.

A hegemonic system, where organizations rely upon force to maintain thier positions, has already failed, for the organizations cease to adapt in a vain attempt to force others to adapt to them.  The organizations in turn become weak and prone to collapse.

The largest hegemonic system operating today is the world’s monetary system, and it is on the verge of collapse.  This debt based monetary system is especially dangerous because it has the effect of stimulating economic interdependence in much the same way that a healthy capitalistic system would while at the same time rendering useless or destroying the capital upon which a healthy capitalistic system relies upon to operate.

While the more perceptive members of society see it coming, the inevitable collapse causes the interdepence on which all rely to suddenly cease to operate.  The result is chaos and suffering for the unprepared.

While there are many ways to prepare for this, there is only one way to start.  It requires large amounts of humility, faith, and courage.

For now is the time to walk humbly with God and others.  It is time to step, on the right with faith, which is provided by God, and the left with courage, which comes from within.

Faith…courage…faith…courage…faith…courage as we work together to pick up the pieces of the failed experiment to build something new, something reliable, something that will last.

For walking humbly in faith and courage is to live in the Kingdom of God.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for June 27, 2012

Copper Price per Lb: $3.36
Oil Price per Barrel:  $80.42

Corn Price per Bushel:  $6.42
10 Yr US Treasury Bond:  1.62%
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,585 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  8.2%
Inflation Rate (CPI):  -0.3%
Dow Jones Industrial Average:  12,627

M1 Monetary Base:  $2,192,300,000,000
M2 Monetary Base:  $9,933,900,000,000

Spain, Debt and Sovereignty via Stratfor

The EU’s direct Spanish bank bailout, while ostensibly averting the latest in a string of events which threaten to blow the Euro to smithereens, has now raised the question of moral hazard for German politicians.

The path forward, as we have discussed in this space before, leads to the elimination of national sovereignty for the countries unfortunate enough to have adopted the Euro.

George Friedman discusses the scenarios which may unfold as the Eurozone inches closer to implementing their ultimate solution to the continent’s debt crisis: The Eurobond

Read the full essay here:

Spain, Debt and Sovereignty

Spain, Inc., the latest proof of Anarchy in action, an Impromptu Manifesto

6/11/2012 Portland, Oregon – Pop in your mints…

When we attended graduate school in Spain, we were the first North American student in our course.  It was late 2003 and the Eurozone was full of optimism.  This optimism lead some of the professors to use a portion of their class time taunt the US model as failed and the European model as the obvious way forward.

As proof of European supremacy, our Finance professor often made a point of mentioning to us that the yields on the Spanish 10yr bond were almost the equivalent to the yields on the US 10yr bond.

What a difference nine years and 500 basis points make.

Circa 2012, Spain dominates the financial headlines as the latest casualty of the European debt crisis.  Apparently Spain now is in need of a bailout.  The bailout strategy which will be employed by Spain, Inc. is a hybrid of the prior bailouts accepted by their counterparts, Greece, Inc. and Ireland, Inc.

Greece, Inc. required a bailout because its government was broke.  Ireland, Inc. was slightly more ingenious in that it made a good faith effort to backstop its banks, only to find that it was now the entity which required a backstop.  Spain, Inc, theoretically learning from both experiences, forced its banks to accept the backstop directly so that the Spanish government could save face and be spared the humiliation of the Irish scenario.

Unfortunately, the markets have seen through the charade and are now putting pressure on all bonds, bank or sovereign, which hail from the Iberian Peninsula.

What a difference nine years and 500 basis points make!

Spain’s strategy has failed before it was even implemented for lack of collateral and credibility, both of which are in desperately short supply amongst the EU leadership.

How did once proud Europe end up in this situation?  They decided to force a debt based currency integration by integrating only the currency part of the equation and leaving the debt and fiscal matters to chance.

As if choosing to use a debt based currency weren’t bad enough, choosing only to implement the currency is like handing the nations foolish enough to engage in such a gamble the revolver in a game of Russian roulette where the revolver is fully loaded.

Now, the revolver is being passed and it is Spain’s turn.  Once Spain slumps to the floor, it is Italy’s turn, the Belgium, France, etc. until the European Currency Union, doomed from its outset, breathes its last.

At some point in the process, possibly as Spain pulls the trigger, USA, Inc. will be forced to step in with the “ultimate” backstop, the final hope of the failed, insane “debt is money” currency regime.  As the US throws its sovereign credit rating in front of the runaway freight train of Europe’s soveriegns, it will quickly find itself in the very situation that it is trying to save the European Sovereigns from.

For in this debt crisis, the unwritten rule of quality holds.  When one adds wine to sewage, one gets sewage.  When one adds sewage to wine, one gets sewage.  The sovereign vats have long since been polluted.  It might make sense to check one’s portfolio and remove as much sewage as possible.

Beyond that, we will present two unsolicited yet practical bits of advice.  First, US Bonds will ultimately slide as USA, Inc. wades across the pond to aid Europe.  The Euro currency will rally as the run on European banks by the citizens and the wholesale dumping of any bond denominated in the currency begins.  Quite simply, demand for the Euro will exceed supply in the short term.

Plan accordingly.

We submit to you that the Spain, Inc. debacle is further evidence of one of The Mint’s central themes, that Anarchy is man’s reality, it is an ultimate given, it simply is, and all understanding of the current political and social structures is greatly facilitated by one’s acceptance of this fact.

In fact, one’s ability to act and react to the unfolding changes in the current political and social structures depends upon accepting and embracing Anarchy as the basis for reality and learning to operate in the Truly Capitalistic system which organically emerges as men learn anew that mutual trust and cooperation are in their rightly understood self interests, and that he who is to lead must truly become the servant of all.

To truly embrace this fact, we must understand the nature of mankind.  Man, left to his own devices, is completely devoid of the ability to do the right thing.  He doesn’t have it in him.  He is lazy, self-serving, and completely evil.  He needs God and his fellow man to be able to do anything productive, altruistic, or what may be considered remotely good.  A full defense of this statement is a subject for another day (although the evidence is all around us), we mention it here only to underscore the necessity of a framework which presupposes this fact within which mankind can use this weakness to avoid both self and mutual destruction.

The only reliable framework which has emerged out of natural Anarchy which not only addresses the problem of human nature, but also turn man’s weaknesses into strengths is what we call True Capitalism.  Ironically, by allowing market forces to work with as little hindrance as possible, mankind can insulate itself from descending into chaos and catastrophe.

In fact, to fight the workings of True Capitalism is, by default, to submit oneself to chaos and misery.  Yet every nation on the planet is devoted to some degree in the fight against True capitalism.  Why?  Because the nation state sells itself as the most perfect expression of man’s good intentions, which we presuppose do not exist.  In other words, the dream of the nation state is built on a false pretense that is usually attributed to socialism: That man is inherently good and wants to do good to others.

Given their presuppositions, is it clear that the nation state and a truly capitalistic society are, in fact, the antithesis of one another.  Where a nation state regulates by edict,  truly capitalistic society regulates by example.  Where a nation state is rigid, where  truly capitalistic society is pliable.  Hence, where  truly capitalistic society will bend but not break, the nation state is repeatedly smashed to pieces when faced with change.

For the more a nation state tries to force men to do good, the more mankind’s character flaws will overtake these good intentions until the nation state becomes an expression of mankind’s evil nature.

The truly capitalistic society allows each mans evil nature to be corrected by allowing him to experience the consequences of his inherently poor behavior, paradoxically and naturally improving the behavior and norms of all.

Moving to a less philosophical level, how can we be sure that Anarchy is the basis of man’s current existence?  The evidence can be found in that the institutions which supposedly offer the best option to Anarchy, the nation states if the world, are beginning to succumb to the punishments they have built up in their losing fight against natural law.

Greece, Ireland, Portugal, Italy, and now Spain, Inc. are now succumbing to the inevitable.  The member of club med which turns from the failure of the Euro currency to go it alone and embrace the much feared “Anarchy,” as it were, paradoxically stands to be richly rewarded by the flocks of tourists who can suddenly afford a European vacation without the Euro.

We conclude with a brief manifesto for your perusal and enjoyment.  What does the future hold?

Out of Anarchy, a Truly Capitalistic System will ORGANICALLY emerge, and with it a new dawn for humanity, built on mutual interest and almost endless capital formation which will engender a spontaneous and dynamic social order, a society without borders that would enjoy freedom and prosperity that we cannot even imagine under current conditions.

Believe.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for June 11, 2012

Copper Price per Lb: $3.35
Oil Price per Barrel:  $81.49

Corn Price per Bushel:  $5.92
10 Yr US Treasury Bond:  1.60%
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,596 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  8.2%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  12,411

M1 Monetary Base:  $2,306,000,000,000
M2 Monetary Base:  $9,790,100,000,000

Anarchy: Atheism with regards to government – Part III – The Test

6/4/2012 Portland, Oregon – Pop in your mints…

A colleague from our grad school days in Barcelona recently contacted us from Madrid with an exciting project he and a partner are developing.  As such, we are unwittingly trying our hand at the emergent Natural Cosmetics Market.

While Spain and Europe in general appear to be falling apart at the seams, his company is experiencing a boom.  As with most smaller enterprises, all it lacks is some well guided investment to transform this mini-boom into a supersonic boom.  “El Empujon”, we call it.  The big push to get them over the hump, to open new markets, scale production, and create countless jobs in the value chain.

It is just this sort of thing that Governments in the West espouse in word but make nearly impossible in deed.

While the products are all natural, they may be subject to FDA approvals.  Then, once the governmental hurdles are cleared, we face a fiercely competitive market where access to the final consumer is tightly controlled by what amounts to a monopoly or at best, an oligarchy, in the cosmetics world.  Then there are patents, customs, and any number of mines in the field which must be avoided or diffused to successfully bring the products to market.

How shall The Mint attack this Goliath?  We are working on a strategy, which we call, the “Heart of the Beast.”  The details of which, for obvious reasons, we shall keep a well guarded secret for the moment.

More on this to come.

In our last correspondence, we presented a hypothesis for dealing with government.  Now, we must move the hypothesis down a level.  How, then would one test the hypothesis by embracing anarchy, or atheism with regards to government, in a place like Oregon?

Oregon is a State which places a relatively large amount of faith in its political system and, by extension, the power of the government to solve social problems. 

The approach seems to work for most.  The territory is home to an abundance of natural resources and a great number of people who are willing to go along with the government’s program.  In these conditions, the idea and mechanisms of government are tolerated and to an extent championed, for it is possible to live in Oregon and enjoy a relatively high standard of living despite the waste inherent in governmental activities.

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

However, one can only wonder as to what may be possible here in the great Northwest were the government not to hyper regulate every industry or confiscate 9% of the wages earned by those who labor in its borders (on top of the roughly 21% that the Federal government lays claim to).

Is the average citizen better off living on 70% of his wages?  Or, put another way, does the average citizen derive enough benefit from being “governed” that he or she would value it at roughly one third of his or her income?

There are burning questions, fellow taxpayer, that every citizen would do well to ask themselves from time to time.  If the mechanism of government were to go away, or be reduced to the spheres where it paradoxically does add value to the economy (note that, were this the case, it would technically cease to be government and become yet another capitalistic enterprise operating in the anarchic surroundings), would it not hold that everyone, including those who work in the unproductive areas of government, would be better off on a relative basis?

The answer, of course, is yes, unless one finds themselves in a position which relies upon the government being able to confiscate a certain amount of resources or the privileges which the mechanism of government may grant them.

However, even this minority would be better off once they adjusted to the reality of life without the idea of government.

What about the Disaster aid, Police and Fire Departments?  Aren’t they at least necessary?

Of course they are!  And for that very reason, private organizations would quickly spring up to fill these vital roles.  In fact, they already exist.  They are commonly known as Security and Insurance companies.  In Anarcho-Capitalist theory, the array of companies which would arise are called “Private Defense Agencies.”  Anyone skeptical about what would arise in a purely anarchic system to replace functions currently delegated to the Nation State is encouraged to study this theory.

For in some ways, the Nation State is simply an over diversified and poorly run Private Defense Agency.

As with any failing capitalistic entity, when a Nation State has gone from being a servant of the people to active enslavement, its lack of popularity invariably shows up in its deteriorating financial condition.  This fact alone is proof that Anarchy is the context in which the Nation States of the world today act and operate.  On this basis alone it is proper to constantly question the relevancy of the State with regards to its utility against viable alternatives.

Yet despite the failure and bankruptcy of nearly all of the Nation States that have existed and the presence of well developed theories which offer alternatives to these failures, the mechanism of the Nation State remains in place and retains for itself a monopolistic power over defense, welfare, as well as the right to generally meddle in all of the affairs of its subjects at whim.

When living within geographical boundaries of a failing Nation State, it is wise to be prepared to live as if it did not exist, which means that functions vital for one’s existence must be secured by the individual or a cooperative independant of the failing Nation State, for it has been observed throughout history that the authorities of a failing Nation State have a tendency to pillag…we mean, relieve their subjec…we mean, citizens, of their means of sustenance by the most expedient means available.

What is the most expedient means possible?  If the Nation State controls the money supply, they simply print money and acquire resources, which is more the rule than the exception circa 2012.

Once a Nation State has begun to relieve their citizens of their wealth in this way, it is possible that those who understand what is going on will convince all to resist by way of armed conflict.  However, this is rarely effective, for it tends to replace one form of tyranny with another.  These methods rely upon might to make right, which most thinking persons are keenly aware is a losing proposition.

Persons and Nation States, especially those that are desperate and have resorted to robbery, rarely give up their arms willingly or peacefully, so it is up to the individual to peacefully disarm it.  This is best done by using a tactic that is not coincidentally very effective against the school yard bully.

Avoidance.

How can one do this?  For practical purposes, we have compiled a brief list of steps which one could take to avoid and thereby peacefully resist a Nation State which has failed:

1.  Money, trade what you want to:  Conduct trade in a currency other than the one used to pay the tax.  For it is proper to give to Caesar what is Caesar’s.  While it may be inconvenient at first to trade using alternative currencies, one may find that it is often not obligatory to use Caesar’s money.

2.  Rely on Common sense:  Ignore laws and excessive regulations and respect the free will of those you work with.  If someone is willing to work for you for less than minimum wage, allow them to work, do not deprive them of a job to comply with an arbitrary wage set by a bureaucrat.  Make no conscious distinction between contract workers and employees, for both are freely performing work.

3.  An important caveat to this is to not brag about flouting unreasonable laws and regulations.  Assume that if you are breaking a legitimate labor law, for example, both you and the employee will know of it and have dealt with it long before the government will deal with it.  It is the false hope that government is regulating untenable working conditions that gives rise to untenable working conditions in the first place.

4.  Come out of Babylon:  If you live in a place where the microscope of government regulation is unavoidable, move until you can freely live a safe distance from it.

5.  Cross borders:  If language is not a barrier and your trade or profession is not location specific, there should be no resistance from either government to crossing national borders in search of better opportunities, for all stand to benefit from this.

6.  Sell what consumers want, not what the government allows you to sell.  The greatest test of a product (food included) is public opinion.  Government approval of products, like labor laws tend to give the population a false sense of security.

As we have stated above, if the Nation State’s intentions are pure and in harmony with Natural Law, there should be no resistance from them to an individual who chooses to take these steps.

If, on the other hand, the bankrupt Nation State begins to pass and enforce laws against these actions, restricting freedom and by default, trade, in a vain effort to pillage its subjects to pay the politicians’ debts, it then shows itself to be predatory.

Anyone who has attempted to take any the steps above has likely encountered some sort of resistance to taking these actions.  What may come as a surprise is that the resistance may not have come directly from the government itself, for the government of a failing Nation State, or any Nation State for that matter, does not have the resources to enforce all of the rules that they put on the books.

Rather, resistance, more often than not, comes from well meaning but misguided fellow citizens who are unwittingly trained by the government’s education system to deter these brave souls on the questionable moral basis of simply obeying the rules, no matter how unreasonable they may be.

What these well intentioned citizens fail to realize is that the rules make slaves of everyone.

Is it possible to live in a Nation State as if it did not exist?  It is as simple as changing and then using one’s mind.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

 

Key Indicators for June 4, 2012

Copper Price per Lb: $3.34

Oil Price per Barrel:  $84.16

Corn Price per Bushel:  $5.68

10 Yr US Treasury Bond:  1.72%

FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,618

MINT Perceived Target Rate*:  0.25% AWAY WE GO!

Unemployment Rate:  8.2%

Inflation Rate (CPI):  0.0%

Dow Jones Industrial Average: 12,101

M1 Monetary Base:  $2,232,800,000,000

M2 Monetary Base:  $9,820,900,000,000

They told me a year had passed

We invite you to enjoy a bit of poetry about our time in Barcelona and Spain this Friday afternoon.  Have a great weekend and stay fresh!

They told me a year had passed

By David Mint

 

I sat on the terrace in Les Planes,

Staring blankly at the wooded hills

Beyond the train station

Pondering all that had occurred

 

I’d arrived in the dead of winter,

Without expectations,

Without plans,

completely unprepared

 

I’d resisted the change,

Defiant,

Trapped in my ways,

Until the day that I was broken

 

At the point of death,

I sat waiting at Sant Pau,

And soiled myself,

Shortly after I’d been called

L'hospital de Sant Pau

As I lay in the dungeon,

Of the modernist gem,

Life dripped back into my veins,

Yet only to a point

 

I arose,

A changed man,

A blank page,

Humbled

 

I was free to travel,

Learn,

Serve,

And to love

 

Free to explore,

 Llançà, Huesca

Contra Corriente, El Lokal, L’Estudi,

Les Heures, Ligonde

 

Yet it is the people,

The love,

The Spirit which we share,

That remains

 

I met my true love,

Now this dream will never end,

We march forward and do not look back

Two becoming one,

 

I sat on the terrace in Les Planes,

Staring blankly at the wooded hills

They told me a year had passed,

And I did not believe them

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

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

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

Watch “Farage: What gives you the right to dictate to the Greek and Italian people?” on YouTube

Nigel Farage of Ireland, calling the loss of sovereignty in Europe for what it is. Will Spain be the next country to have a puppet government thrust upon it?