I Was Asked About J.P. Morgan’s Blockchain-Based “JPM Coin.” I Ruthlessly Expand it to Other Payment Systems | Wolf Street
— Read on wolfstreet.com/2019/02/16/j-p-morgan-blockchain-based-jpm-coin-and-other-payment-systems/
A new twist on an older idea for payments and transfers.
Who Bought the Gigantic $1.5 Trillion of New US Government Debt Issued over the Past 12 Months? | Wolf Street
— Read on wolfstreet.com/2019/01/31/who-bought-the-gigantic-1-5-trillion-of-new-us-government-debt-over-the-past-12-months/
This is the issue that will eventually bring this country to its knees. This is more money than people can fathom, let alone the interest we pay on it. Politicians are still spending more money than we take in, and this will end badly.
The only way out for all of these countries with massive debt like ours will either be a default or the globalist banking cabal creating a global currency and forgiving all debt. Either way this ends badly, especially for the most vulnerable. JohnBarleycorn
QUESTION: Hello Sir, I am French and have been reading you for many years (I already read you while you published papers while you were very unfairly imprisoned). I signed up for Socrates on 6th January and must thank you warmly for opening my eyes to the real state of the global economy and its cycles. Unfortunately, I live in France and taxes weigh heavily on us. Unemployment is preponderant. I do not think our President E.Macron knows exactly what he is doing by reforming our economy in his own way… My question please: You explained that the next crisis would be a debt crisis and that banks and the economy would be severely heckled. So, I really think about quickly withdrawing my assets (about 50,000 euros) from the bank and I wonder if converting them into foreign currency and keeping them in a safe in my house would not be a good idea … If the euro is devalued or disappears as I fear, would not it be smart to convert them as soon as possible into Swiss francs? Indeed, their economy seems stable and it is really a country apart, bordering on France. (Of course, I also thought about owning dollars and yen (although the yen inspires me less confidence) Thanking you for everything you do for us, Sincerely, F.C ANSWER: Dollars are probably the best because the USA does not cancel currency as they do in Europe. Dollars from 1860s are still legal tender today. You might want to open an account in the USA, which ironically is not part of the tax reporting schemes. Therefore, you can have an account in the USA with no problem for probably the next 3 years. Governments are becoming like a black hole. They are sucking up all the money to sustain their existence. Keeping cash at home in a safe is good. Keep in mind that you will never be able to travel with even $10,000. That is why I say opening an account may be best. The cash problem is still unfolding as the governments try to eliminate paper money. I doubt Trump would allow that to happen in the States. But once Trump is gone, it really does not matter if the next president is a career politician from either party. They will look at eliminating cash to increase taxation. That is when it will be keen to have tangible assets (equity mostly). Precious metals may have the same problem as cash insofar as if you attempt to travel with it. That is the whole problem going forward. They are closing in on the movability of money.
— Read on www.armstrongeconomics.com/world-news/taxes/governments-are-sucking-in-assets-like-a-black-hole/
The traditional argument for fiduciary media and ultimately unbacked fiat money was based on the costs of production. The real resources otherwise used for gold mining and minting could, under a fiat standard, be used for other productive purposes and thus enrich society as a whole.
— Read on mises.org/wire/euro-shows-fiat-money-system-more-expensive-we-thought
Conventional wisdom says that savings is the amount of money left after monetary income was used for consumer outlays, implying that saving is synonymous with money. Hence, for a given consumer outlays an increase in money income implies more saving and thus more funding for investment.
— Read on mises.org/wire/why-we-need-savings-produce-what-we-need
Saving is the good investment
QUESTION: RE: ….& Coming Barter System. So, are you suggesting that we may see a shift to Silver by private individuals as the only way to sidestep Government stupidity, or will it be even worse, like trading whiskey for toilet paper?? TWE ANSWER: Assuming government attempts to follow the IMF’s advice and create cryptocurrencies to replace paper money, then the only alternative will be the barter system. To make this clear, the likelihood of the USA following this route is a last resort. It will NOT be the first, but the last. We will see this in Europe before we will ever see it in the USA. This cannot be a question that is answered based upon OPINION, for we all have one. The only rational way to approach that question is to look at history and see how people responded to similar but not identical positions. What comes to mind in Japan. Each new emperor devalued the money issued his own coins worth 10x that of the coins of the previous emperor. People resorted to bags of rice and they used the coins of China. Everyone refused to use Japanese coins. The result was that Japan LOST the right to issue coins at all for 600 years. Moving to a cryptocurrency to stop the underground economy from using paper money will simply switch it to foreign currency (dollars in Europe) or something commodity based. In federal prisons, when they banned smoking back in 2004, packs of mackerel industry became the prison currency. Everyone operated an internal economy. They used cigarettes as their currency of choice to purchase anything from food and home-brewed prison hooch. They also used books of stamps. Prisoners could ship books of stamps out and they could resell them at a discount. Mackerel became the small change at about $1 a pack. There are fully developed economies within prisons. Someone skilled at drawing would make cards for holidays, while others were good at a trades tailoring to fix your clothing. Others would take a scarf and turn it into a warm knitted hat. Once you eliminate the freedom that paper money provides, the government may believe it will get 100% of every tax it ever dreamed of but the underground economy will flip to barter. As far as silver is concerned, I would prefer silver coins that are recognizable to the average person. Offering bars of silver would be at a discount, for it will require knowledge and testing.
— Read on www.armstrongeconomics.com/markets-by-sector/precious-metals/silver/why-silver-barter-becomes-the-alternative-to-cryptocurrency/
[Excerpted from chapter 13 of Guido Hülsmann’s The Ethics of Money Production (2008).]
— Read on mises.org/library/morality-fiat-money