Yesterday, Zero Hedge and several other websites posted articles about JP Morgan instituting “capital controls” by preventing international business wires and limiting cash transactions. As it turns out, this information was misleading; as apparently, such restrictions only relate to JPM’s lowest-tier business account. In other words, the information was not true.
At the Miles Franklin Blog and Newsletter, David Schectman, Bill Holter, and I scour the internet for TRUTH each and every day. Occasionally a story is false or misleading; but from my experience, 99% of what’s posted is true. That is, if you utilized reputable sources – which is exactly what we do. Actually, the unregulated internet is the most powerful source of truth ever invented; while conversely, the heavily regulated business world – particularly Wall Street – is the most virulent source of corruption known to man.
In this particular case, JP Morgan appears to be in the right; but that said, such behavior, by both they and their “partners in crime” in government, would be entirely consistent with their modus operandi of the past decade. The fact remains that capital controls have already been instituted in the United States – let alone, the entire world; including, among others, the new FATCA and FBAR regulations. Trust me, they will only expand in the coming years; and when they do, JP Morgan will undoubtedly be at the forefront of their enforcement.
Which brings me to today’s topic; that is, the value of information, and how to determine if it’s real. And what better way to start, than with the most important “lesson” I can impart to those seeking TRUTH? That is, to seek out the handful of “good, smart people” that are not only intelligent – with good communication skills – but have your best interest at heart. Those who have read David, Bill, and myself for the past decade know we are the “good guys”; and hopefully, we have been able to help you separate the few other grains of “wheat” from the myriad “chaff” that seeks to deceive and separate you from your money. Barack Obama may be right when he says to “stop focusing on the bloggers”; however, only partially so, as while BAD bloggers must be avoided like the plague, GOOD ones just may save your life!
If you listen to the MSM – such as Reuters, Bloomberg, Yahoo, and CNBC – you will be force fed lies, propaganda, and spin that could permanently disable your ability to make good decisions. In fact, they often blatantly contradict themselves; and particularly, this relates to their brain-dead commentary on Precious Metals.
To wit, here are two of Reuter’s articles from this morning – published as “top stories” on Yahoo! Finance within an hour of each other. First, they report “Easy Fed outlook, China growth send shares to five-year high, dollar to eight-month lows.” In other words, admitting the Fed will NOT taper any time soon; while citing “strong” Chinese GDP as the “reason” stock futures were modestly higher. No need to report that the Chinese GDP number was EXACTLY in line with expectations, recent export data was abysmal, or the Chinese government recently admitted its GDP data is unreliable. Not to mention, the myriad other factors involved in daily equity movements; including, gosh forbid, government intervention. Subsequently, just one hour later, Reuters reported “China’s third-quarter GDP growth fastest this year, but outlook dim.” Call me a (25-year) Wall Street novice, but last time I looked, markets were supposed to react to future expectations, NOT past results. Anyone reading such drivel – from a supposedly “reputable” source like Reuters – would come away clueless; and good luck finding TRUTHFUL commentary – like this – dispelling it.
The MSM preys on stupidity in many ways; often, because some who we believe to be “good guys” actually aren’t. Moreover, “bad guys” sometimes speak truth, whilst “good guys” espouse lies. Thus, the key is figuring who are the good guys are and what is the TRUTH; and when it comes to financial markets, there’s no better way to “get it” than understanding the basic tenets of economics. In other words, growth can NEVER be achieved through MONEY PRINTING – and NEVER, EVER will. Fiat currency is the oldest Ponzi scheme on the planet, with 599 failures against ZERO successes. It lures to politicians and bankers are unquestioned, as is the financial damage it creates – in ALL cases, destroying savings via inflation. Gold and silver are far older than fiat currency – by several millennia; but have an untarnished record of wealth preservation, despite every effort, legal and illegal, to discredit them. In fact, fighting the fiat Cartel’s current incarnation, I often feel like Indiana Jones in The Holy Grail.
The MSM will do anything to prevent us from learning the truth; such as, AMAZINGLY, trying to convince us that Janet Yellen – she who averred the Fed should ignore inflation control in lieu of employment stimulation – is somehow “hawkish.” Every decision she has ever made promoted unfettered MONEY PRINTING; which Peter Schiff decidedly proves in this amazing piece. However, much of the press still characterizes her otherwise, despite not a shred of evidence supporting their preposterous thesis.
The same can be said for their views of the “hawkish” Larry Summers; or for that matter, all supposed FOMC hawks; NONE of whom have track records materially different from Yellen. By the way, such “dovishness” is no different the world round; as essentially ALL Central banks have been printing money with a reckless abandon not seen in history. The “final currency war” has begun – as indeed, the Ponzi scheme is breaking down; and subsequently, won’t end until the purchasing power of ALL fiat currencies disappear – which is to say, ALL currencies.
Moreover, the MSM will never tell you the “flip side” of their economic cheerleading arguments; instead, choosing a “perma-meme” of imminent recovery. The won’t tell you, for instance, that both U.S. and global economic indicators are rapidly decelerating; the government “shutdown” was a sham; or the PIIGS are worse off than at any time in the past decade. They certainly won’t expose Obamacare for the economy-killer it is; or heaven forbid, expound on the details of yesterday’s “historic” Congressional deal. Regarding the latter, I wrote yesterday of how it was unclear exactly what had been agreed upon regarding the supposed “debt ceiling.” As it turns out, all that was executed was a repeat of May’s “can kicking”; in which the debt ceiling was not raised, but temporarily eliminated. That is, until February 7th, when it supposedly “must” be raised.
As for Precious Metals – as I watch yet another relentless Cartel capping at the six-week long “lines in the sand” of $1,320/oz. and $22/oz., respectively; the MSM will NEVER tell you PHYSICAL gold premiums are exploding; that top Central bankers admit gold’s importance; or per the below email from a Miles Franklin Blog reader, that the entire Eastern Hemisphere is well aware of Precious Metals’ utility, power and history…
I teach Chinese students here in New Zealand. Each morning I like to ask them what they did, or what’s in the news. Yesterday, one rebellious one – he likes to think he is anyway – an 18 year old recently-graduated school kid, said Obama postponed the American crash. The others looked on, quietly sheepish. I probed him a little, and he said with an evil glint in the eye, “China is waiting.” “Waiting for what?” I asked. “Waiting to buy America.” And he laughed. The others continued the same sheepish look. Then, I took out three silver coins and said, “Hey, I am ready too.” Then all the class laughed. Every one of these kids knows what is going on. They are shy to talk about it with me as I am a Westerner but once they realized ‘I was one of them’ the floodgates opened. Once of them said that the longer America postpones the inevitable the more time we have to prepare ourselves to take advantage of it. I could not believe it. These 18-20 year olds are smarter than the people they have here teaching them economics (this is a business school). I kid you not.
Only you can discern what should and should not be trusted on the internet; or, for that matter, any media source. The world is only growing more complex; and now that free markets are a thing of the past, deciphering the truth in financial reporting is more difficult than ever. Once again, I implore you to start with the basics; that is, the primary tenets of economics and the “good, smart people” that report on them. Amidst a sea of MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA, the truth lies; and here at the Miles Franklin Blog, we report on it each and every day – for FREE!