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Mises Shakes the World?

One of the ideologies that is NOT promoted is that of the Mises Institute. There is a virtual blackout on the Institute in the mainstream press. Not that it matters. The Internet has created a whole new world. But the way the elite deals with free-market thinking is still by ignoring it.

Radicale prediker roept op Wilders te onthoofden

Een Austalische radicale prediker roept Nederlandse moslimradicalen op om politicus Geert Wilders te onthoofden. Volgens de Nederlandse krant De Telegraaf deed de Australische haatprediker Feiz Muhammad de oproep tijdens een toespraak op een afgeschermde website van jihadisten.

De PVV-leider wordt een duivel genoemd en een vuile politicus. “We zien de duivelse vuiligheid van mensen als die vuile Nederlandse politicus. Eenieder die onze leer bespot, lacht om de islam en die verlaagt, moet de dood in, onthoofd hem, hak zijn hoofd eraf”, zegt de prediker.

Part 2, Part 3

The Decline of the P/E Ratio

Consider that while P/E ratios dropped during the inflationary 1970s, they also fell during the deflationary 1930s. The one common thread tying those two eras of falling P/E ratios: unpredictable economic performance.

“We’re looking at a more volatile U.S. economy than we experienced in the last 30 years,” said Doug Cliggott, U.S. equity strategist at Credit Suisse in Boston. “The pressure on multiples may be with us for quite some time.”

As nationalism rises, will the European Union fall?

If these obstacles to a stable union weren’t sobering enough, in July, the E.U.’s rotating presidency fell to Belgium - a country whose Dutch-speaking Flemish citizens and French-speaking Walloons are so divided that, long after elections in June, a workable governing coalition has yet to emerge. It speaks volumes that the country now guiding the European project suffers exactly the kind of nationalist antagonism that the E.U. was created to eliminate.

The Dangers of Germany’s Dependence on China

The country is pursuing a dual strategy. On the one hand, China gains access to state-of-the-art technology through joint ventures. On the other, it is developing the technology of the future: electric cars. Chinese companies are already world leaders in battery technology, which could give the newcomer a decisive competitive edge over established European and Japanese carmakers.

This form of cooperation has been dubbed the “concubine economy.” Just as the Chinese emperors once selected their concubines, China’s current leadership selects foreign companies and grants them the right to produce goods locally in cooperation with a domestic partner.

The People’s Republic compels the German carmakers to enter into these joint ventures. By imposing high import duties, the government prevents the Germans from simply exporting German-made cars to China. Any company interested in selling large numbers of its products is required to build factories in China with a Chinese partner, thereby giving the country access to their technology.

How sugar-rush economics has left the West with a headache

The Western world’s central bankers are in a hole. Jackson Hole. The picturesque Wyoming resort has, over the years, become home to an annual wonkfest of elite policymakers and economists.

The Obama/Bernanke stimulus looks increasingly like a “sugar rush” – it felt good at the time, but provided no long-term economic nourishment. Now that rush is fading, the US is left with an almighty economic headache, but no sustainable recovery.

Gold and Silver Charts with a Forecast and a Comparisons

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The Elites Have Lost The Right to Rule

First, who is Ben Bernanke?

You can really see into his head from reading this speech.  He is an academic who thinks he is smarter than everyone else which is why he is in the position he is in.  He thinks the key to monetary policy is to trick people into doing things that will hurt them in the end.  He believes the mal-investments he intends to push people and institutions into equals economic growth.  What surprises me so much about the investment community and the American public in general is that so many fail to understand that we live in a top down centralized economic system much more similar to China in more ways than people want to admit.  We look at how the government steers the economy in China and sneer.  How are we so different right now?

As far as the speech itself, it confirms something I mentioned several weeks ago.  Banana Ben absolutely wants to do a massive QE2 program. The only thing holding him back is gold is near an all time high.  What he wants is gold much lower and stocks much lower to give him cover.  Gold has not cooperated so he is in a bind.  He cannot print a massive amount of money with gold here and stocks at 1055 because what happens if gold soars and stocks sell-off in the days that follow such an announcement?  What if the response in the treasury market is not as desired?  He is scared to do it here and he is right to be scared because such a reaction would be the end of the Fed right then and there. The Fed will be gone anyway within a few years in my opinion but it’s going to fight hard to survive and if you want to make money in this market you need to understand that.  The most powerful institution in the world is fighting for its survival.  Never forget that.

So what is he going to do?  I believe that the Fed and government are doing a lot more than people think to manipulate all markets behind the scenes.  After all, they have publicly announced their manipulation in many other ways so does it make any sense whatsoever to assume they aren’t doing a plethora of other things behind the scenes?  Of course not. I think that with the Fed in a bind they will accelerate and become ever more aggressive in behind the scenes games.  This will make markets even more volatile and extraordinarily challenging.  This is financial war make no mistake about it. The only way in my opinion to survive this is to buy all dips in precious metals, agriculture and oil.  It is in these three areas that I expect to see the most price inflation as money eventually figures out the end game.  The end game is more and more people will eventually wake up to the fact that the markets are a hologram put in front of you by the magicians at the Fed.  That what constitutes real wealth in the years ahead will be owning food, energy and a means of exchange that will be accepted should a black market economy arise as it has in virtually all nations at one time or another throughout history.

In the end, the elites will be overthrown and a power vacuum will form.  The transition period will be extremely difficult as the elites will fight their demise to the end.  For you see, they care nothing for you they care about their power and control.  Nevertheless, rulers have always only ruled by the will (or apathy) of the people and when the people become overly taxed and abused they always rebel.  The main thing to think about is what kind of society do we want to rebuild from the ashes.  I am of the view that it must be a return to the Constitution and an elimination of central banking power and secrecy.  Let’s not fall for a demagogue or be pushed into a war when things are at their worst.