Easter Friday Links: AUD High

DE Again,

And just for something a little different

Latest posts by __ADAM__ (see all)


  1. Easter reading suggestions – there is a commonality here. Democracy and the (Financial) Elites.


    This is a follow on from QB Partners previous report and makes for very interesting reading. Long report, so a few excerpts to entice.

    “We have come to understand that politicians executing the most critical policies are making it up as they go
    – that there really is no there, there. This is a frightening proposition for most people because it is most comfortable to be told tomorrow will greatly resemble today, even if that may not be true. We want to be lied to. We want someone else to fix the fundamental problems we know intuitively cannot go away without hardship. (To be frank,we’re not sure this is such a bad thing, all in. A big screen TV, food on the table and a modicum of dignity and whatmore can we ask for?)

    Our leaders have a tough job. Our social contract with them is that we will let them boost their egos and exert their power in return for allowing us not to sweat the small stuff. We have come to see elections as sporting events. Even if the other team wins we know there will be another game or season. We watch as spectators, trying to recruit others to our team. Understanding policy is a secondary issue, for us and therefore for our elected officials. To generalize unfairly, being a politician in a republic today is no different from anytime in the past — it is a job given to overachieving egomaniacs with intellects that reflect their constituents’.”

    “But politicians appoint policy makers who, with career government operatives with true expertise and genuine interest in the greater good, have no excuse. We presume these bright men and women suffer from one or more of the following conditions: 1) their personal neediness to be accepted trumps their ability to express what they may know to be true; 2) if it has not happened before then they are wired to believe it must not exist; 3) they ascended to their positions precisely because they suffer from one or both of the first two conditions.”

    “We think the will and power of politicians and policymakers are vastly inferior to natural market incentives, which is where the real power lies. The dollar will remain supreme until it and the entire global monetary system fails, and there is nothing Ben Bernanke or anyone else can do about it.”

    “… make us optimistic that at some point a new way of measuring currency will come swiftly. We do not think international trade will stop for an extended period and we think the period of dysfunction will be relatively brief. There will be one new benchmark currency to take the dollar’s place and it will become obvious to all what it must be.

    The Default Currency – Paper with Gold Backing”

    “The fair value of gold would have to be the price at which its aggregate value would back all outstanding baseless currency — in effect, the price at which debt-based currency would be transformed into asset-backed currency”

    “As per the Bretton Woods Monetary Agreement that lasted from 1945 to 1973 (the last global fixed exchange rate system), the method used to calculate the exchange rate of paper money to gold was to divide the US Monetary Base by official US gold holdings. If this precedent were to be re-established today, current conditions imply a US dollar devaluation to almost $10,000 / gold ounce. Such devaluation would imply that US dollars would again be fully backed by Treasury assets.”

    The ultimate guarantee of of continued US dominance, the military and US role in Libya (which has estimated reserves of foreign exchange and gold of some 69,510,000,000)

    “…Libya would be a more attractive target than, say, Sudan, from a “balance sheet” perspective. Economically speaking, whoever “buys” Libya is paying less than the cash on its balance sheet. Perhaps more to the point, comparing Libya and Sudan purely in terms of capital-on-hand indicates the magnitude of difference in obtainable spoils. Libya could not be passed up or left alone to fall into anarchy because, frankly,too much wealth was there for the taking.”

    And finally, Noam Chomsky – yes, he’s still going strong.