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Monthly Archives: August 2015

The Smartest Guy in the Room


I listen to, or read articles from, a lot of economic gurus, precious metal gurus, etc.  Most of them are well-known because they are well-known.  We listen to them and believe them because they speak as “authorities”.  As “authorities,” they talk to other authorities and are aware of things you and I don’t have time to discover on our own.

But much of their “authority” is based on their style and celebrity rather than their actual knowledge.

Here’s an interview by Greg Hunter of a man named Craig Hemke.  I’d never before heard of Craig Hemke.  He has no celebrity.  He’s not a well-known guru.  He has no authority.  He lives in Kansas (there are no gurus in Kansas).  I’m pretty sure he writes under the pseudonym of “Turd Ferguson”.  He didn’t even put on a sports coat when he was interviewed.   How could anyone who goes by the name of “Turd” have much to say of any importance?

Well, despite his lack of celebrity and sports coats, what Mr. Hemke has is intellectual brilliance, great factual knowledge and an almost incredible capacity to communicate without vanity or arrogance.  He strikes me as the “smartest guy in the room”.  He’s worth listening to because he really knows what he’s talking about.  He’s not just parroting whatever he’s heard from others.  He gets it.  He really understands what he’s talking about.

He doesn’t just tell us–he explains that:

  1. We no longer have markets; we have the “illusion of markets”.
  2. Central banks are desperate to maintain the “illusion of normalcy” and do so by programming computers to not simply make money on the markets, but to also sustain the “illusion of normalcy”.
  3. Trading on COMEX is a losers’ game that’s actually rigged to rob customers..
  4. Iran and Saudi Arabia are threatening to go to war against each other.  Both would profit from such a war since it would shut down Middle East oil supplies and thereby raise the price of crude oil. How can you stop a war where both sides will profit?

I hadn’t previously heard even one of those arguments.  Every one of those arguments strike me as valid and insightful.  I think I can learn from this man.  I have no higher form of praise.

Craig Hemke runs a website called TFMetalsReport.com.  I’ll be going there for the first time just as soon as I post this article. I don’t know what I’ll think about him tomorrow, next week or next month.  But for now, he strikes me as the smartest guy in the room.

video    00:41:38

 

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Failed QE Caused Market Falls?


The "Black Hole" of QE [courtesy Google Images]

The “Black Hole” of QE
[courtesy Google Images]

Last Thursday (Aug. 20th, A.D. 2015), the Dow Jones Industrial Average fell 358 points.  The New York Times wrote “China Woes Send Stocks Into Tailspin” in an attempt to blame the fall in US markets on the previous fall in the Chinese stock markets and recent devaluation of the Chinese yuan:

 

“Stock markets around the world plummeted on Thursday, signaling that investors have not gotten over the shock of China’s devaluation last week and remain nervous about the health of the global economy.

“The selling began in Asia . . . . moved to Europe . . . and ended with a rush for the exits in the United States.

 “The Dow Jones industrial average tumbled 358.04 points, or 2.1 percent, to close at 16,990.69.

“. . . the S&P 500 declined 43.88 points, or 2.1 percent, to 2,035.73, its lowest level in six months . . . .

“The biggest source of uneasiness right now appears to be China’s economy. Many analysts assumed that China’s recent devaluation was in part motivated by a desire to stimulate China’s economy. . . .

“But the devaluation stoked suspicions . . . that China’s economy might be weaker than its official figures suggested.”

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An Idea Whose Time Has Come


We Need More than a Wall.   We Need Government to Stop Providing Incentives. [courtesy Google Images]

We Need More than a Wall.
We Need Government to Stop Providing Incentives.
[courtesy Google Images]

The Washington Examiner recently published “Immigration revolt goes global: Americans not alone in opposing cultural upheaval”.  According to that article,

 

“In signs of a world revolt against immigration, a remarkable survey . . . finds that an average of half polled believe there are too many immigrants in their countries and nearly as many believe the newcomers are changing culture for the worse.

“The United States isn’t even at the top of those with a negative view, according to the Ipsos global poll . . . . In fact, the U.S. is in the middle of the average, with 49 percent believing there are too many immigrants.

“Turkey is first, at 92 percent, followed by Italy, Russia, South Africa, Belgium, India, France, England, Saudi Arabia, Israel, Argentina, Hungary, and then the U.S. (13th).”

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Posted by on August 19, 2015 in 2016 Election, Illegal Aliens, Trump

 

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“Butterfly” McClinton


Ah don’ know nuthin’ ’bout wipin’ servers, Miz Scarlet.

video   00:01:45

 
4 Comments

Posted by on August 19, 2015 in 2016 Election, Hillary for President, Humor, Video

 

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‘Tis an Illiquidity that Blows No Good


Uh-Oh!  We're Out of Liquidity! [courtesy Google Images]

Uh-Oh! We’re Out of Market Liquidity!
[courtesy Google Images]

Financial and economic news increasingly report on the term “liquidity” and its antonyms “low liquidity” and “illiquidity”.

For example, Business Insider (“This week’s gold crash reminds us of a much scarier risk in the markets”) warned that on Monday, July 20th,

 

“. . . gold crashed by more than 3% in just a matter of seconds. . . . [E]xperts are still trying to come to a consensus over the cause of the stunning move. . . . But all of these theories are more or less tied to one theme . . .: low liquidity. . . .

“Current concerns in the financial markets center around the absence of liquidity and the effect it might have on future market prices,” Janus’ Bill Gross said in June.  “In 2008/2009, markets experienced not only a Minsky moment but a liquidity implosion . . . .

“Liquidity is a concept that is universal in the markets. And sometimes it will just vanish without warning. . . .”

Low liquidity is bad almost any way you look at it.”

 

OK, OK, OK—the concept of “liquidity” is “universal” and, like a magician’s assistant, it can mysteriously vanish or appear at any moment.  “Low liquidity” is universally bad and therefore an “ill” liquidity—or, for short, “illiquidity”.

We get that.

And we sure don’t want another “liquidity implosion”—do we?

No.

In fact, we’re all united in our adamant opposition to “low liquidity”—but what th’ heck is it that we’re all opposed to?

What, exactly, do the terms “liquidity” and “illiquidity” mean?

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All’s Fair in Love and Currency War


The Fog of (Currency) War [courtesy Google Images]

The Fog of (Currency) War
[courtesy Google Images]

On Monday, The Washington Times reported (“People’s Bank of China decides to devalue its currency”) that,

 

“In a potentially major move for trade and relations with the U.S., China’s central bank has decided to devalue its currency in a bid to shore up its sluggish economy.”

Most economists agree that increased inflation can “shore up” a nation’s sluggish economy.  But modern inflation on the international level is relative to other currencies much like a teeter-totter.  When one currency goes up, the other currency must go down.

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The Brooklyn Chapter of “Elect Donald Trump” Reacts to Megyn Kelly


It makes me laugh.  It makes me wince.  It’s gone viral.

If dese sistas be for Trump, who can be against him?

video   00:03:59

 

 
4 Comments

Posted by on August 11, 2015 in 2016 Election, Blacks, Humor, Trump, Video

 

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