Oct 262014

by Keith Weiner


Most of my writing about the gold standard is about how it works, and how the paper dollar standard doesn’t. A casual conversation I had with someone recently underscored that there is an even stronger argument.

Our opponents, those who support central banking and irredeemable paper money, have to make two cases. One is to defend the theory and practice of central banking, that central bankers are wise and honest and that their debt-based paper money works. They have to argue that the dollar does everything you want money to do, such as hold its value, enable proper accounting, encourage savings, support a stable economy, etc. Well, they can go through the motions and fool the ignorant.

The other is that they have to defend the use of force against innocent people.

Central planners constantly run into the problem that people are not willing cogs. We don’t want to be jammed into the machine where directed. The central planners never have our best interest at heart. Quite the contrary, they seek to sacrifice our property, liberty, goals, and well-being. Supposedly it serves some sort of public good, though it’s never the good of any particular member of the public.

Anyways, no one ever goes along voluntarily. Central planners have to pass laws, in order to do whatever good to us that they feel needs doing. Safely backed by the law, they need not worry about our petty little concerns. They can force the unwilling to obey, under threat of loss of property, liberty, and ultimately life.

If you don’t agree with this, think about what will happen if you refuse to pay your taxes. It may take a few years, but sooner or later, armed agents of the government will come to arrest you. If you don’t want to be arrested, they will force you into handcuffs. If you are able to fight that off, at some point they will shoot you dead.

In the case of irredeemable paper money, there are several ways that the government forces people to use it. One is the capital gains tax on gold. Another is the legal tender law. There are others.

The economic arguments for irredeemable paper and central banking are fallacious and often frivolous. We can and should confront every falsehood, every logical error, every misrepresentation of the gold standard and its defenders. We must also make the affirmative case for the benefits of the unadulterated gold standard.

However, we have one more weapon. It demands to be used, when the context is appropriate. Our adversaries are confessing to the very failures of their system. If paper scrip were truly superior to gold, people wouldn’t need to be forced to use it. When a bully can’t prevail in an argument using reason, he becomes violent. Our monetary opponents are bullies. They resort to force, which is their moral failing.

This is their Achilles heel, and it’s even more important than their economic errors.

At best, central bank advocates are Machiavellians, seeking to use people as a means to their own ends. At worst, they are little Hitlers and Stalins, rationalizing their actions with the tired cliché “you have to break a few eggs to make an omelet.”

We need to strip their veneer of respectability. Many people will get that, even if they don’t understand monetary economics.


You are cordially invited to The Gold Standard: Both Good and Necessary, in New York on Nov 1. There hasn’t been a real recovery from the crisis of 2008, and there won’t be until we return to the use of gold as money. At this event, you will hear Andy Bernstein present the moral case for capitalism, and Keith Weiner present the case for the gold standard as the monetary system of capitalism.

Oct 262014

Courtesy of the StealthFlation Blog

Oct 262014

Submitted by Martin Armstrong via Armstrong Economics blog,


We have a very serious problem with Hillary. I was asked years ago to review Hillary’s Commodity Trading to explain what went on. Effectively, they did trades and simply put winners in her account and the losers in her lawyer’s. This way she gets money that is laundered through the markets – something that would get her 25 years today.

People forget, but Hillary was really President – not Bill. Just 4 days after taking office, Hillary was given the authority to start a task force for healthcare reform. The problem was, her vision was unbelievable. The costs upon business were oppressive so much so that not even the Democrats could support her. When asked how was a small business mom and pop going to pay for healthcare she said if they could not afford it they should not be in business. From that moment on, my respect for her collapsed. She revealed herself as a real Marxist.

Now, that she can taste the power of Washington, and I dare say she will not be a yes person as Obama and Bush seem to be, therein lies the real danger. Giving her the power of dictator, which is the power of executive orders, I think I have to leave the USA just to be safe.

Hillary has stated when she ran the White House before regarding her idea of healthcare, “We can’t afford to have that money go to the private sector. The money has to go to the federal government because the federal government will spend that money better than the private sector will spend it.” When has that ever happened?

Hillary believes in government at the expense of the people. I do not say this lightly, because here she goes again. She just appeared at a Boston rally for Democrat gubernatorial candidate Martha Coakley on Friday. She was off the hook and amazingly told the crowd gathered at the Park Plaza Hotel not to listen to anybody who says that “businesses create jobs.”

“Don’t let anybody tell you it’s corporations and businesses create jobs,” Clinton said.

“You know that old theory, ‘trickle-down economics,’” she continued. “That has been tried, that has failed. It has failed rather spectacularly.”

“You know, one of the things my husband says when people say ‘Well, what did you bring to Washington,’ he said, ‘Well, I brought arithmetic,’” Hillary said.

I wrote an OpEd for the Wall Street Journal on Clinton’s Balanced Budget. It was smoke and mirrors. Long-term interest rates were sharply higher than short-term. Clinton shifted the national debt to save interest expenditures. He also inherited a up-cycle in the economy that always produces more taxes.

Yet she sees no problem with the math of perpetually borrowing. Perhaps she would get to the point of being unable to sell debt and just confiscate all wealth since government knows better. Their job on keeping Ebola out is just fantastic so far? Just a few people popping up here and there. Maybe everyone from New York should get a free weekend to visit Washington.

Oct 262014

Among the 34 OECD countries, the US performed below average in mathematics and is ranked 27th, according to The Program For International Student Assessment (PISA).


While the U.S. spends more per student than most countries, this does not translate into better performance (e.g. the Slovak Republic, which spends around $53k per student, performs at the same level as the US, which spends over $115k per student).

PISA adds that students in the US have particular weaknesses in performing mathematics tasks with higher cognitive demands, such as taking real-world situations, translating them into mathematical terms, and interpreting mathematical aspects in real-world problems. But there is good news – a silver lining they offer – “a successful implementation of the Common Core Standards would yield significant performance gains.”

 However, they may have to rethink that after looking at the following…



Source: The Burning Platform

Oct 262014

Following the sad death of its first Ebola case, Mali’s President has said he will not close his nation’s border with Guinea, because “the incident showed it was impossible to completely seal his country.”


Mali’s neighbors, on the other hand, are shutting borders, as Mauritania tries not to become Africa’s 7th Ebola-infected country. This brings, according to The WHO, the number of cases of Ebola to 10,141 with 4,922 dead (so far).


Americans should not worry though, for the 2nd week in a row, President Obama devoted his address to the subject of Ebola, explaining “basic facts” of how difficult it is to catch (despite the need to enforce mandatory quarantine for healthcare workers) and in ‘USA USA USA’-esque language, explains how “Americans can beat” the deadly virus.

*  *  *

As Reuters reports, the death of Mali’s first Ebola case will not prompt its to close its borders…

Mali will not close its border with neighbouring Guinea after a two-year-old girl infected with Ebola was brought across the frontier by her grandmother and died in Mali this week, President Ibrahim Boubacar Keita said on Saturday.


The girl travelled hundreds of kilometres through Mali – including a stop in the capital Bamako – on public transport, potentially exposing many people to the virus, before she died in the western town of Kayes on Friday.


Malian authorities have isolated 43 people, including 10 health care workers who had contact with the child in the town of Kayes, where she was taken for treatment, the W.H.O. said.


Keita said that the incident showed it was impossible to completely seal his country off from Ebola in neighbouring Guinea but said he remained calm as the girl’s journey and potential contacts had already been traced.


“Guinea is Mali’s neighbour. We have a shared border that we did not close and we will not close,” he told France’s RFI radio station.

But Mauritania closed its border with Mali... (via Xinhua)

Mauritania has closed its border with Mali, where an Ebola death was confirmed in the border area this week, a local health official told Xinhua on Saturday.


“The authorities of Nouakchott gave instruction to conduct the closing of the all terrestrial points of passage situated on the border,” said Dr Limam Deddeh, physician chief of the border city of Kobonni.


The border closure, which came after the first confirmed Ebola death in Mali, was meant to prevent the spread of the Ebola virus to the local population, said the doctor.

But Americans should not worry… President Obama (and his new Czar) are “focused” on the fight against Ebola and for the 2nd week in a row, makes his weekly address about the deadly virus (which is not very contagious and nothing to be alarme about – aside from the need to mandatorily quarantine any healthcare worker entering the US)

Having explained the “basic facts” of how difficult it is to catch (despite the need to enforce mandatory quarantine for healthcare workers), dismissing Rep. Peter King’s warnings

Rep. Peter King believes Ebola may be more of a threat than doctors are telling the public.


In an interview with Long Island News Radio last week, the New York Republican expressed his concern that the virus has mutated and become airborne, according to BuzzFeed.


You know my attitude was it’s important not to create a panic and it’s important not to overreact and the doctors were absolutely certain that this can not be transmitted and it was not airborne and yet we find out the people who have contracted it were wearing all protective gear,” King said.


King used the two nurses who were stricken with Ebola after caring for Thomas Eric Duncan, the first patient diagnosed with the virus in the U.S., as a prime example of how doctors could be wrong about the way the virus is spread.


“Listen, I don’t blame doctors or the medical profession for not being up to date on the latest mutation,” King said.


“I mean, they should try to be and they should work at it but less I think they should be less definite when they make these pronouncements. That there is absolutely nothing to worry about, this can’t be transmitted airborne, that there’s nothing to worry about.”


His bottom line: Take the Center for Disease Control and Prevention’s warnings about Ebola — that it is only transmitted through bodily fluids — with a grain of salt.

…and in ‘USA USA USA’-esque language, Obama explains how “Americans can beat” the deadly virus.