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While the Nation Fragments Socially, the Financial Aristocracy Rules Unimpeded

March 18, 2019

America's aristocracy is not formalized, and that's the secret of its success.

If there is one central irony in American history, it is this: the citizenry that broke free of the chains of British Monarchy, the citizenry that reckoned everyone was equal before the law, the citizenry that vowed never to be ruled by an aristocracy that controlled the government and finance as a means of self-enrichment, is now so distracted by social fragmentation that the citizenry is blind to their servitude to a new and formidably informal financial aristocracy.

From this juncture, ironies abound: the so-called Socialist demands for Medicare for All, "free" college for all and Universal Basic Income (UBI) are encouraged (or perhaps orchestrated) by the financial aristocracy, which rakes in tens of billions of dollars in profits from its banking, healthcare, national defense and higher education cartels: throwing more trillions down the rat holes of Medicare and higher education will only further enrich and empower the financial elites.

As for Universal Basic Income (UBI), the financial aristocracy is cheering loudly for UBI, which would enable debt-serfs to keep servicing their debts. (Is anyone so naive to think that UBI won't have a clause which enables the deduction of debt payments from the monthly "free money"? Does anyone think the financial aristocracy is going to give $1,000 a month to debt-serfs and then let them default on their debt? Get real!)

The demands for social justice, i.e. that everyone be allowed to be treated the same before the law and enjoy the same rights as other citizens, is a core tenet of American culture. Long before the Constitution was even ratified, the calls to end slavery were becoming louder. Long before women won the the right to vote, the calls to treat women equally before the law were gaining ground.

In the long sweep of U.S. history, the rights of gays to marry and other contemporary social justice issues are of a piece with all previous drives to eliminate disparities between the way individuals are treated before the law. This is of course as it should be: this was a core value of the revolutionaries, as limited as it was in that era, and this drive is largely what makes America America.

Equally important was the cultural drive to never be ruled by a neofeudal aristocracy or let an aristocracy form in America. Yet this is precisely what has come to pass: we are ruled by an informal but oh-so neofeudal aristocracy.

As social justice controversies fragment the increasingly economically precarious populace, a financial aristocracy has arisen that rules the nation behind the screens of "meritocracy" and "equal rights." No one is more in favor of equal rights and the abolition of social privilege that the members of the financial aristocracy, who have no need for social privilege since they control the real source of power in America: proximity to credit and newly issued money.

(Look at the liberal leanings of the Silicon Valley, L.A., Boston and NYC elites. They all love whatever distracts everyone from scrutinizing their power, and love recruiting fresh talent to slave away for their private empires.)

With this wealth, the financial aristocracy buys political influence for piddling sums and scoops up most of the low-risk productive assets of the private sector.

The core structure of the financial aristocracy is the state-cartel, the cartels that are funded and enforced by the central state: higher education, healthcare, national defense, banking, mortgages, student loans, etc.

For the financial aristocracy, the federal government is their personal enrichment machine, collecting trillions in taxes and borrowing additional trillions which are funneled through the state-cartels.

The number of seats in the American aristocracy is extremely limited, and so the top 5% are willing to go to extreme lengths to get in the first class lifeboat as the Titanic takes on water. This manifests in all sorts of ways, including the elite college admissions scandal.

While social justice proponents focus on divisive distractions, the financial aristocracy is tightening its control of the nation's economy and political order. As everyday life, civil liberties and economic security all become increasingly precarious for the bottom 90%, the divisive focus on social privilege becomes a useful distraction for the financial aristocracy, which also controls the mainstream media.

America's aristocracy is chuckling with great amusement as society is torn to pieces by media-circus sideshows. America's aristocracy doesn't need any titles or overt class distinctions as the aristocracy of old had; this would only call attention to their dominance. The ideal arrangement is a society shredded by social-media-driven fabricated divisions and a profound apathy to the actual structures of power, wealth and control.

America's aristocracy is not formalized, and that's the secret of its success.The power and control are exercised behind the formal machinery of governance and finance, and this structure protects the aristocracy from scrutiny.

So by all means demand Medicare for All and UBI: the aristocracy is heavily promoting these expansions of its wealth and power. Just as the Roman elites favored distributing free bread to the disenfranchised masses and the staging of Netflix binge TV watching--oops, I mean circuses-- so too does America's aristocracy favor UBI, Medicare for All and a fragmented society in thrall to disunity.
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Capricorn Daily Horoscope
by Tarot.com Astrologers

3.19.19: Underestimating your own abilities is a colossal waste of time. You’ve overcome challenges far more daunting in the past. Some of them make this obstacle look like child’s play -- and it is if you face it head on. Loved ones have faith in your success because they know what you can do when you are motivated by a sense of duty. Rally your self-confidence, and keep in mind that a little swagger could help your cause. Singer Gina Carey said, “A strong person looks a challenge in the eye and gives it a wink.”

https://kingworldnews.com/james-turk...ttern-in-gold/

James Turk – Check Out This Spectacular Multi-Year Accumulation Pattern In Gold
March 18, 2019
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As investors continue to await the outcome of this week’s Fed Meeting, today James Turk told King World News that people should instead be focused on the spectacular multi-year accumulation pattern in the gold market.

Is The Attack On Precious Metals Over?
March 18 (King World News) – James Turk: “The big question gold and silver bulls are facing at the moment, Eric, is whether the latest ferocious attack on the precious metals is over, or is there more ahead as month-end option expiry approaches. As one would expect, arguments can be made both ways.
First, I use the word “ferocious” purposefully. How else can the recent 15% increase in Comex open interest be described?…

BONUS INTERVIEW:

To listen to

Doug Casey’s just-released KWN interview discussing his prediction of financial and economic chaos and a panic into gold CLICK HERE OR BELOW:

https://kingworldnews.com/wp-content...y-I-942018.jpgSponsored

From its low of $1,282 on March 5th, gold rose $10 an ounce while open interest going into Friday rocketed 70k contracts. So to counteract an onslaught of new buying, in 8 trading days someone sold an amount of paper-gold that takes global mining production 25 days to produce the actual (physical) gold.

That selling frenzy was an obvious attempt by the central planners to keep the price of gold under $1,300. But there is good news. It looks like the shorts got nervous as gold kept rising, despite the selling. So as nearly 13k shorts covered and exited the market on Friday, gold rose. Importantly, gold is now back above $1,300, which has been a visible battle line for weeks.
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CAUTION: FOMC Meeting This Week

But we need to keep two things in mind. The FOMC is meeting this week, and central planners are always out in force to keep gold under control during and usually immediately after these meetings. So if the Fed makes some hawkish pronouncement about interest rates and/or relies on their favorite ‘old chestnut’ – that a strong dollar is in the national interests – gold might come under pressure, aided and abetted by their bullion bank accomplices and some selling by weak hands.

The central planners might use the announcement as an opportunity to push gold lower during this month’s option expiry. Gold under $1,300 would be welcome news for bargain hunters, but the central planners and their favored bullion banks would just see it as another opportunity to fleece option buyers yet again.
Nevertheless, I am sanguine about the metal’s prospects here. Gold remains in a multi-year base in which physical metal is being steadily accumulated. I’ve updated my weekly chart of the London spot gold price from the last time we spoke.

Massive Multi-Year Accumulation Pattern In Gold

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Gold Becoming Even More Undervalued
So little has changed visibly, but there is an important invisible change taking place. Every day the dollar’s purchasing power is being eroded by inflation and debased by ever-growing weaknesses in the banking system, particularly in Europe. So every day that gold remains in this huge base, it becomes more undervalued.

It is an important observation, and provides the key rationale for continuing to accumulate physical metal. The soaring palladium price in recent weeks has been clearly demonstrating what an insatiable demand for physical metal can do, and will eventually do for gold and silver – just like it has done countless times before throughout gold’s 5,000 year monetary history. Just like the sun sets and then rises again, markets move from undervaluation to overvaluation. But in contrast to the sun’s repetitive cycle, we don’t know when undervalued markets will begin rising.

The Strategy
So the strategy here, Eric, is one that we have discussed before. Continue accumulating the undervalued asset because with physical gold and silver you are buying good value and saving money to prepare for that inevitable rainy day when we get another financial crisis.”

***KWN has now released the powerful KWN audio interview with Gerald Celente and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***Also just released: Greyerz – Have The Ides of March Been Delayed? CLICK HERE TO READ.

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2019 by King World News. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.

Asset Bubbles and the Economy Are Now One

After this latest round of a deflationary recession/depression consummates, global central banks and governments will engage in an epoch battle to re-inflate asset prices such as never before contemplated. Indeed, they are laying the framework for that assault right now.

Global central banks took interest rates to the zero percent range a decade ago and, for the most part, they remain there today. These confetti pushers printed $15 trillion dollars in order to push rates into history's basement. Such an enterprise in counterfeiting has never been attempted before outside of a banana republic.

This process sent the total market cap of equities in the U.S. to 150% of GDP in the fall of last year, which was an all-time record high. Today, this most-accurate metric of equity valuations stands about 80 percentage points higher than its long-term average prior to the NASDAQ bubble of 2000. In other words, because of the unwarranted bounce in stocks at the start of this year, equity valuations have traded back to an extremely dangerous level once again.

The current bubbles in stocks, bonds and real estate began to concern the Fed a few years back. The FOMC ended QE in October 2014 and began raising rates in December of 2015. This process of first ending QE, then raising rates 9 times, then selling $500 billion of its assets; was an honest attempt to roll back the massive and unprecedented stimulus programs deployed during the Great Recession. In fact, the new Fed Head, Jerome Powell, avowed on October 3rd of last year that his Quantitative Tightening (QT) program would remain on autopilot and that he intended to raise interest rates by another 100 basis points over the course of the next 1-2 years.

However, the cumulative effects of ending QE, draining half trillion dollars of liquidity from the economy, and raising the Funds Rate by 225 basis points eventually hit asset prices hard only a few days after his now infamous pledges. The major averages plunged by 20% and small cap stocks cratered by nearly 30% by Christmas. It was at that point the Fed reached an epiphany. Mr. Powell and the rest of his merry band of money printers realized that asset prices and the economy had become one in the same. Whatever economic growth was experienced by the economy was completely beholden to the asset bubbles central banks created.

After all, the watershed change from hawkish to dovish was not due to the Fed's two mandates comprised of stable prices and full employment. The December data on Consumer Inflation increased by 1.9% year over year and the January Non-farm payroll report showed a net 304k jobs were created. Therefore, it was the collapse in stock prices and the seizing up of the high-yield bond market that cowered the Fed into mush. So now, in reality, the Fed has only one true mandate and that is a to ensure there exists a perpetual bull market in junk bonds and equities.

The sad truth is that central bankers are a group of flawed humans who have the hubris to believe they can play God with economies. Need more proof? Remember when former Fed Chair Janet Yellen promised that QT would be "like watching paint dry" and that there would not be another financial crisis in our lifetimes. Then, 16 months later the global economy began to crumble along with equity prices. Proving once again that central bankers aren't even demi gods-much less gods--they are just foolish and feckless individuals that have given themselves way too much power.

Therefore, the Fed is unaware what turning dovish at this juncture really means. With an effective overnight lending rate of 2.4%, Powell wasn't even able to get the Fed Funds Rate at half the level it was at the peak of the last cycle. And, most importantly, leaving the balance sheet at a level of $3.5-$4 trillion when it ends Quantitative Tightening will mean the Fed has permanently monetized around $3 trillion worth of government debt and mortgage bonds.

The salient danger in stopping its normalization process at such levels is tantamount to admitting that asset prices and the economy are one in the same. And, the Fed is now powerless to stop their ascent without engendering an absolute and complete economic collapse. Also, the markets will soon be put on notice that real interest rates will become progressively more negative over time and that nominal rates are stuck near zero percent. Being a slave to the markets also denotes that there will never be a good time to normalize monetary policy and this condition will only grow worse over time.

As this current deflationary cycle intensifies, expect central banks to go full throttle back into QE and global interest rates to fall even further into the cellar of history. We should also expect massive fiscal stimulus programs worldwide that will add significantly to the global leverage ratio. For example, we already see China's government force a record 4.64 trillion yuan ($685 billion) in the month of January alone into their economy! Hence, not long after this complete capitulation on the part of governments to go full-throttle with inflation, look for asset prices to grow further detached from the underlying economy and for the wealth gap to surge from its already crippling level.

In the end, it will be a brutal battle with global stagflation that eventually craters GDP, which has been artificially constructed using the printing press. The plunging faith in the fiat currency regime that underwrites a record $250 trillion of global debt will be the result.

Michael Pento is the President and Founder of Pento Portfolio Strategies, produces the weekly podcast called, "The Mid-week Reality Check" and Author of the book "The Coming Bond Market Collapse."

All information and opinions expressed are based upon information considered reliable although, since many factors are constantly changing and beyond the presenters control, they should not be relied upon as such.

Investments involve risk and unless otherwise stated are not
guaranteed
. Past performance cannot be used as an indicator of future results.



Information presented is for educational purposes only. Moreover, no viewer or listener should assume that any information or discussion presented, serve as the receipt of or substitute for, personalized advice from Pento Portfolio Strategies, LLC or from any other investment professional and is not included as an offer of solicitation for the sale or purchase of any specific securities, investments or investment strategies.

Thanks for your prompt reply my Mentor, Mr. Bruce. I wish to be your Life Time Member/student.

Your best Proven method, “ Money Flow Strategy “, has opened a NEW window for me, window of

Success, window to find my goal., of course everyone has the same goal here, how to make money

For the better life. Before I was doing the same like most of the others in forex., 90+% failure. And NOW

I can see myself 5-10% successful persons in this field, in the near future. G-d willing. But presently, still

A lot to go. learning phase NEVER ends. May almighty G-d give you long healthy life, and of course more

Money( do you still need ? ), lol. Amen.

There is a saying, “ the more you have, the more you want “. take care

Are you also a CAPRICORN? I love reading horoscopes (just as a hobby and not as a believer of astrology)

This is so true of capricorns (atleast about who I am!)

How did you know that!!!!! YES I am Capricorn., though I DO NOT believe these thing.

VEEFX. sorry I thought you were asking me.

Dear friend AKA loveandpeace

Thank you very much for the kind words. Yes, you have good skills and yes we have much work to do over the rest of the year. When I come to Toronto in April and or May 2019, we will meet. I will talk to you soon on the telephone.

Best regards


Bruce

https://www.linkedin.com/pulse/bnnbl...-carrasco-cfp/

I was invited back on BNN to update them on my current market views, and to chat with the audience about how I'm positioning myself in this market. Below you will find the comments I submitted for discussion;
Market Comments

I continue to recommend that investors have some consideration in the precious metals sector, as a hedge for the negative consequences for the monetary experiment of the last ten years. I think central banks are also beginning to hedge for that possibility, considering the recent announcement that in 2018 they purchased more physical gold since Nixon unleashed the FIAT system. Since this experiment began, I have remained steadfast of the view that as we have never fixed a debt problem with more debt, the result would not be different this time. Therefore, in view of history, my mantra has been; the longer it takes, the bigger the fiscal mess, the higher the REAL cost.

Since my last appearance the markets have undergone a correction, as I expected, but have also had a great rebound. While I did take the opportunity of the correction to add a few more dividend payers at good value, I remain cautious of the ability of these markets to maintain these valuations. I attribute the rebound in the markets to the Treasury Secretary’s intervention through the PPT, and the fact that Trump was able to “influence” the FED to not only reverse its tightening policy, but to also begin to discuss re-starting QE. However, we all know that a recession is building with the ongoing slowdown of the global and US economies, and sooner or later that reality will catch up to these markets.

As a student of history, I am amazed at the current parallels to the 1930’s, and the lessons left behind to help us prepare for what might lurk ahead. From a historical vantage point, the current political dislocation, socialist populism, geopolitical shifts, social inequalities, are but symptoms of a dying currency reserve system in need of replacement. Throughout history, as in the 1930s, that process has always been achieved through the number one rule of power; he who holds the gold makes the rules. Those rules are used to transfer the purchasing power of the currency reserve from the old to the new, in the same way that it transferred from the Sterling to the Dollar in 1933. That occurrence is inevitable and has already been cast, but we do not know the exact timing. Luckily history offers hints as to how to prepare.

I continue to recommend caution and continue to stay positioned for rougher economic waters. Asset allocations stand at higher cash and fixed income levels of around 25%, precious metals at least 15%, and the remainder in good quality equity income securities in my preferred dividend paying sectors; pipelines, utilities, energy, and REITs.

https://www.linkedin.com/pulse/feds-...martino-booth/

In the decade between “60 Minutes” interviews, the central bank has sparked a recovery without inflation but not much else.
By Danielle DiMartino-Booth

March 12, 2019, 12:00 PM CDT

This article originally appeared in Bloomberg Opinions — 3.12.19
Friday marks the 10-year anniversary of the Federal Reserve Chairman Ben S. Bernanke’s groundbreaking “60 Minutes” interview. To listen to current Fed Chairman Jerome Powell on the same show a decade later, the central bank’s best laid plans since then would seem to have played out according to script with one glaring exception: the Fed’s balance sheet.


When “60 Minutes” reporter Scott Pelley asked Bernanke if the Fed was printing money, his reply was, “Well, effectively. And we need to do that, because our economy is very weak, and inflation is very low. When the economy begins to recover, that will be the time that we need to unwind those programs, raise interest rates, reduce the money supply, and make sure that we have a recovery that does not involve inflation.”


If the primary goal was recovery without inflation, the Fed delivered. Since the onset of recovery in June 2009, the core personal consumption expenditures index, which measures the prices paid by consumers for goods and services net of food and energy prices that tend to be more volatile, has been above 2 percent in in just five months in 2018, four in 2012 and one in 2011.


Critics of the central bank suggest that the massive surge in financial assets over the past decade starkly illustrates the need for the Fed to incorporate inflation gauges that take into account price gains of real estate and securities. One such gauge, the Underlying Inflation Gauge (UIG) created at the Federal Reserve Bank of New York, has hovered around the 3 percent level since last February. In other words, the UIG has been running north of the Fed’s 2 percent inflation target since November 2016. The justification for raising interest rates thus depends on the gauge used to guide policy.
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As for Bernanke’s commitment to unwind unconventional monetary policy, it’s looking increasingly as if only a small portion of his promise can be fulfilled.

Since last meeting in January, Fed officials have been publicly unified in their intention to present a road map to end quantitative tightening (QT) at next week’s Federal Open Market Committee meeting. The 16 percent to 17 percent of GDP estimate Powell offered Congress as the terminal size of the balance sheet implies QT will end with the Fed holding about $3.5 trillion in securities, compared with the peak of about $4.52 trillion in January 2015. (The Fed held less than $1 trillion of balance sheet assets before the financial crisis.)

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Running monetary policy looser than need be for such a protracted period has benefited global asset prices. Even after the Fed began tapering its bond purchases, its central banking peers more than took up the slack. As of February, the collective balance-sheet assets of the Fed, European Central Bank, Bank of Japan and Bank of England stood at 36.3 percent of their countries’ total GDP, little changed over the past two years.
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When Pelley asked Bernanke about banks that had paid perks and bonuses after taking bailout money, Bernanke replied: “The era of this high living, this is over now. And that they need to be responsible and use the money constructively. I’d say that their job right now is to find a way to make loans to creditworthy borrowers, to get their banks back on the path of making good loans, safe loans, and to have a reasonable sense of humility based on, you know, what’s happened in the last 18 months.”


But at the National Association for Business Economics recent annual conference, University of California-Berkeley economics professor Gabriel Zucman presented his findings on the widening divide between the “haves” and “have nots” in the U.S. His conclusion: “Both surveys and tax data show that wealth inequality has increased dramatically since the 1980s, with a top 1 percent wealth share around 40 percent in 2016 vs. 25 – 30 percent in the 1980s.” Zucman also noted that increased wealth concentration has become a global phenomenon, albeit one that is trickier to monitor given the globalization and increased opacity of the financial system.


That is not to say the most powerful players in finance haven’t had to adapt to a post-crisis world. The inability to undertake risky lending under tightened regulation has pushed business to an increasing degree out of the conventional banking system into the shadow banking industry.

Private equity presides over more than $2.1 trillion in committed capital to be deployed outside the purview of regulators’ watchful eyes, according to research firm Preqin.


While, Powell acknowledged that risks had built up among highly leveraged companies, he said the scale is not “the kind of thing that we saw in the…subprime mortgage crisis. It doesn’t seem to be like that, generally. But at the same time, it could be an amplifier in a downturn.”


As for any notion that Fed policy has elevated asset prices and left behind those without the means to benefit, circumstances that have skewed both wealth and income inequality, Pelley asked, “Where are we headed in this country in terms of income disparity?” Echoing his predecessors, Powell replied, “Well, the Fed doesn’t have direct responsibility for these issues.” Except that the Fed does have direct responsibility. If the “wealth effect” used to justify a generation of quantitative easing hasn’t kicked in yet, trickling down to those who need it most, it’s past time the Fed acknowledged its failings and opened the door to a new policy framework.

This article originally appeared in Bloomberg Opinions — 3.12.19


Danielle DiMartino Booth, a former adviser to the president of the Dallas Fed, is the author of “Fed Up: An Insider’s Take on Why the Federal Reserve Is Bad for America,” and founder of Quill Intelligence.

COMMENTS FROM BENJAMIN: We are on the EDGE of a MAJOR Monetary Collapse. On March 31, 2019 in 11 days Gold will be a Tier One Asset and the BIS has authorized under Basel 111 that Gold can be held 100% as an asset on the Balance Sheets of the Largest Financial Organizations in the World. We could be seeing the END of the manipulation of the Price of GOLD on the COMEX which is effectively a paper market and not backed by the physical GOLD.