Tag Archives: payment

Pavlov and the Federal Reserve

[courtesy Google Images]

[courtesy Google Images]

The Gains & Pains newsletter recently published a brief article on Quantitative Easing (QE).  In broad strokes, the article explained that although QE had failed to cause a positive change in the Japanese, US and EU economies, China was nevertheless trying to use QE to save the Chinese economy from its current recession and/or depression.

The following text is from that article and is sometimes verbatim and sometimes paraphrased by me:


“It wasn’t until late 2014 when the Japanese economy truly became completely and utterly broken.  That’s when the Bank of Japan decided to increase its already far-too-big QE program, not because doing so would benefit the country, but because it would bring economists’ forecast in line with governor Kuroda’s intended inflation numbers.

“The Central Banks were forcing reality to match Central Bankers’ theories and forecasts.  If reality didn’t react as intended, it wasn’t because the theories were misguided . . . it was because Central Bankers simply hadn’t yet printed enough new fiat yen.”

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Posted by on November 5, 2015 in Federal Reserve, Fiat Currency, Slavery & bondage


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Logical Consequences

Pick Your Premises; Pick Your Destiny [courtesy Google Images]

Pick Your Premises;
Pick Your Destiny
[courtesy Google Images]

Beliefs matter.  Profoundly.

Whenever you embrace a particular belief, it becomes a premise in your life.  Based on that premise, your logic will compel you to act in one way or another.

For example, depending on whether you believe in God or believe there is no god, your conduct in life will be profoundly different. Based on the fundamental premise of belief, an atheist has a completely different set of logical goals, values, inhibitions and even compulsions as compared to a Christian.  Actions which atheists find logically compelling can be anathema for Christians.

As another example, consider negative interest rates.  That concept seems absurd to most, but to those who understand and embrace the premise of debt-based monetary system, negative interest rates are a reasonable, rational and even necessary concept.  The logic of the first premise (debt-based money) compels the consequence of negative interest rates.

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“Grandmaster Putin’s Golden Trap”?

Grandmaster? [courtesy Google Images]

[courtesy Google Images]

Dmitry Kalinichenko recently wrote a brilliant article entitled “Grandmaster Putin’s Golden Trap”.  That article was originally written in Russian and later translated into English by Kristina Rus.

The translation is generally easy to read, but there are some portions of that English translation that may not have clearly expressed Mr. Kalinichenko’s original ideas.

The article began with,


“Very few people understand what [Russia’s President Vladimir] Putin is doing at the moment. And almost no one understands what he will do in the future.  No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.”

Say whut?!

Surely, Russia is not selling its petroleum products only for physical gold.  Surely, Russia is accepting other fiat currencies (such as euros, yuan and dollars) as “payment” for its crude oil.  From his second line, Mr. Kalinichenko’s arguments seem false or even silly.

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