News, Rumors and Opinions Wednesday Morning 10-26-2022
.RV Excerpts and Rumors from the Restored Republic via a GCR: Update as of Wed. 26 Oct. 2022
Compiled Wed. 26 Oct. 12:01 am EST by Judy Byington
Global Currency Reset:
“The Quantum Financial System went Live on Thurs. 20 Oct.”… Dr. Charlie Ward
On that same Thurs. 20 Oct. Dubai 1 funding was released. …a High Up Contact
The next day on Fri. 21 Oct. the BRICs Portal was turned on, allowing the Chinese Historic Bonds to be paid out in full. …Ward and a High Up Contact
The day after on Sat. 22 Oct. some Tier 3 Bond people began to be paid out, which appeared to be continuing as of Wed. 26 Oct. …Various sources
RV Excerpts and Rumors from the Restored Republic via a GCR: Update as of Wed. 26 Oct. 2022
Compiled Wed. 26 Oct. 12:01 am EST by Judy Byington
Global Currency Reset:
“The Quantum Financial System went Live on Thurs. 20 Oct.”… Dr. Charlie Ward
On that same Thurs. 20 Oct. Dubai 1 funding was released. …a High Up Contact
The next day on Fri. 21 Oct. the BRICs Portal was turned on, allowing the Chinese Historic Bonds to be paid out in full. …Ward and a High Up Contact
The day after on Sat. 22 Oct. some Tier 3 Bond people began to be paid out, which appeared to be continuing as of Wed. 26 Oct. …Various sources
By Thurs. 27 Oct Dubai 1 would be fully paid out and funding from Dubai 2 would be released – (making it a “go” for Tier 4B (Us, the Internet Group) to set exchange and redemption appointments). …a High Up Contact
Bruce: On Sun. 23 Oct. certain classes of Bonds started to be processed including the Golden Dragon Bonds. The Yellow Dragon Bonds were paying out Mon. 24 Oct. The German Bonds would pay out on Wed. 26 Oct. There were bonds being processed out of Reno, Texas and Geneva. Their goal was to finish Bonds processing by Thanksgiving. Bond Holders expected to have access to their monies by Thurs. 27 Oct. High up sources were saying we in Tier4B should be notified to set appointments before noon on Wed. 26 Oct. and could set exchange/ redemption appointments on Wed. or Thurs. 27 Oct.
Opinion of a Source on Tues. 25 Oct:
According to my contacts, it will get really confusing and scary for most, so just hold the line, don’t panic, have food, water and some cash on hand and check on all the people you care about and your neighbors.
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Tues. 25 Oct. 2022 The Big Call, Bruce: Thebigcall.net 667-770-1866 pin123456#
On Sun. 23 Oct. certain classes of Bonds started to be processed – the Golden Dragon Bonds. The Yellow Dragon Bonds were paying out yesterday Mon. 24 Oct. The German Bonds would pay out on Wed. 26 Oct. There were bonds being processed out of Reno, Texas and Geneva. Their goal was to finish the Bonds processing by Thanksgiving.
Bond Holders expected to have access to their monies by Thurs. 27 Oct.
$24 sextillion was being processed today and tomorrow Wed. 26 Oct.
High up sources were saying we in Tier4B should be notified to set appointments before noon tomorrow Wed. 26 Oct. and could set our exchange/ redemption appointments on Wed. or Thurs. 27 Oct.
In Iraq certain transactions were taking place and the Dinar Rates were moving up. Iraqi citizens were able to exchange their Dinar even here in the US.
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Global Financial Crisis:
Fed Quietly Sends Record $11 Billion To Switzerland As Dollar Funding Shockwave Crushes Central Banks. “Markets stop panicking when central banks start panicking.” https://www.zerohedge.com/markets/fed-quietly-sends-record-11-billion-switzerland-dollar-funding-shockwave-crushes-central
BlackRock, (owned by the Cabal) the world’s largest asset manager: The financial group is running out of customers and its share price has plummeted a massive 16%. With BlackRock’s problems, hundreds of large corporations are now facing major challenges.
Egyptian Central Bank announces plan to move currency away from US dollar: https://thecradle.co/Article/News/17291
Read full post here: https://dinarchronicles.com/2022/10/26/restored-republic-via-a-gcr-update-as-of-october-26-2022/
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Courtesy of Dinar Guru
Mnt Goat I have told you...that the QFS [Quantum Financial System] has the new IQD rate within it as well as many other currency rates. The IQD is at about a $4.80+ rate USD. This rate applies to exchanges outside of Iraq...So, what is the good news then about this? It does tell us that the QFS now allows the IQD to be reinstated at the new rate but that this still has to be approved but can now be accomplished and is a reality…finally! It also tells us we are extremely close!
Nader From The Mid East The voting of the prime minister Sudani, it's not a bad thing...the world is watching...besides Maliki, nobody in Iraq is pro Iranian. Iran is Iran. Iraq is Iraq...After all Sudani is not gonna be bad. He's not pro Iranian. He works for a crook, yeah which is Maliki yes...Sudani is not a bad guy. He's just worked or still working maybe for a crook, which is Maliki. I think he's gonna work for the Iraqi people a lot.
Exchanges Are Bleeding Silver; There's Not Enough For Everyone | Andy Schectman
Liberty and Finance: 10-26-2022
The LBMA and COMEX silver inventories are at or near all-time lows. Andy Schectman, CEO & president of Miles Franklin, explains how on the exchanges there are many more claims for silver than there are the actual physical bars immediately available.
But investors are requesting physical delivery, bleeding inventories on the major exchanges. On the retail level, supply is being drained as well, and there is no end in sight.
Currency Wars and How They Work
Currency Wars and How They Work
Why Global Currency Wars Aren't as Dangerous as They Sound
By Kimberly Amadeo Updated on July 19, 2022 Reviewed by Robert C. Kelly
A currency war is when a country's central bank uses expansionary monetary policies to deliberately lower the value of its national currency. This strategy is also called competitive devaluation.
In 2010, Brazil's Finance Minister Guido Mantega coined the phrase "currency war." He was describing the competition between China, Japan, and the United States where each seemed to want the lowest currency value. His country's currency was suffering from a record-high monetary value, which was hurting its economic growth.
Currency Wars and How They Work
Why Global Currency Wars Aren't as Dangerous as They Sound
By Kimberly Amadeo Updated on July 19, 2022 Reviewed by Robert C. Kelly
A currency war is when a country's central bank uses expansionary monetary policies to deliberately lower the value of its national currency. This strategy is also called competitive devaluation.
In 2010, Brazil's Finance Minister Guido Mantega coined the phrase "currency war." He was describing the competition between China, Japan, and the United States where each seemed to want the lowest currency value. His country's currency was suffering from a record-high monetary value, which was hurting its economic growth.
Purpose
Countries engage in currency wars to gain a comparative advantage in international trade. When they devalue their currencies, they make their exports less expensive in foreign markets. Businesses export more, become more profitable, and create new jobs. As a result, the country benefits from stronger economic growth.
Currency wars also encourage investment in the nation's assets. The stock market becomes less expensive for foreign investors. Foreign direct investment increases as the country's businesses become relatively cheaper. Foreign companies may also buy up natural resources.
How It Works
Exchange rates determine the value of a currency when exchanged between countries. A country in a currency war deliberately lowers its currency value. Countries with fixed exchange rates typically just make an announcement. Other countries fix their rates to the U.S. dollar because it's the global reserve currency.
However, most countries are on a flexible exchange rate. They must increase the money supply to lower their currency's value. When supply is more than demand, the value of the currency drops.
A central bank has many tools to increase the money supply by expanding credit. It does this by lowering interest rates for intra-bank loans, which affect loans to consumers. Central banks can also add credit to the reserves of the nation's banks. This is the concept behind open market operations and quantitative easing.
A country's government can also influence the currency's value with expansionary fiscal policy. It does this by spending more or cutting taxes. However, expansionary fiscal policies are mostly used for political reasons, not to engage in a currency war.
The U.S.' Currency War
The United States doesn't deliberately force its currency, the dollar, to devalue. Its use of expansionary fiscal and monetary policy has the same effect.
For example, federal deficit spending increases the debt. That exerts downward pressure on the dollar by making it less attractive to hold. Between 2008 and 2014, the Federal Reserve kept the federal fund rate near zero, which increased credit and the money supply. It also created downward pressure on the dollar.
But the dollar has retained its value despite these expansionary policies. It has a unique role as the world's reserve currency. Investors tend to buy it during uncertain economic times as a safe haven. As an example, the drastic oil price drop between 2014 and 2016 caused a mini-recession. Investors flocked to the dollar, which caused the dollar value to increase by 25%.
China's Currency War
To continue reading, please go to the original article here:
https://www.thebalancemoney.com/what-is-a-currency-war-3306262
Peter Schiff and Greg Mannarino Tuesday 10-25-2022
Peter Schiff: When The Sucker's Rally Ends, The Dollar Will Crash
By Tyler Durdan” 10-25-2022
The world loves dollars. Whenever there is a problem, people flock to the dollar as a safe haven. But the US has problems of its own. In a podcast, Peter Schiff said America’s problems will eventually catch up to the dollar and at that point, the greenback will crash.
Peter said there are two possible ways the US can default — the honest way or the dishonest way.
But either is a disaster if you own US Treasuries. The honest way is just to admit that we can’t pay and we default. We restructure the debt and we tell our creditors, ‘You are not going to get your money.’
But I don’t think politicians have the integrity to do that. They’re going to take the coward’s way out. They’re going to print. They’re going to inflate the debt away.
Peter Schiff: When The Sucker's Rally Ends, The Dollar Will Crash
By Tyler Durdan” 10-25-2022
The world loves dollars. Whenever there is a problem, people flock to the dollar as a safe haven. But the US has problems of its own. In a podcast, Peter Schiff said America’s problems will eventually catch up to the dollar and at that point, the greenback will crash.
Peter said there are two possible ways the US can default — the honest way or the dishonest way.
But either is a disaster if you own US Treasuries. The honest way is just to admit that we can’t pay and we default. We restructure the debt and we tell our creditors, ‘You are not going to get your money.’
But I don’t think politicians have the integrity to do that. They’re going to take the coward’s way out. They’re going to print. They’re going to inflate the debt away.
That’s the only way out of this problem — monetize that debt and repudiate it through inflation, which is why it’s crazy for anyone to believe that the Fed is going succeed in reducing inflation back down to 2%. It can’t succeed.”
This is why Peter calls this a sucker’s rally. And when it ends, the dollar will crash.
https://www.zerohedge.com/markets/peter-schiff-when-suckers-rally-ends-dollar-will-crash
Is It Over? The 10 Year Yield CRATERS! Dollar NOSEDIVES... Stocks Rally Across The Board.
Greg Mannarino: 10-25-2022
Dollar Decline vs. Dollar Collapse
Dollar Decline vs. Dollar Collapse
Why a dollar decline is inevitable, and a collapse is unimaginable
By Kimberly Amadeo Updated on May 18, 2022
The U.S. dollar declines when the dollar's value is lower compared to other currencies in the foreign exchange market. This manifests itself as a decline in the dollar index. Generally, this means a foreign currency, such as the euro, can buy an increasingly large amount of dollars.
A declining dollar can also mean a fall in the value of U.S. Treasurys, which drives up Treasury yields and interest rates. Treasury note yields are the main driver of mortgage rates. It can mean that foreign central banks and sovereign wealth funds are holding fewer dollars, too. This lowers the demand for dollars.
Dollar Decline vs. Dollar Collapse
Why a dollar decline is inevitable, and a collapse is unimaginable
By Kimberly Amadeo Updated on May 18, 2022
The U.S. dollar declines when the dollar's value is lower compared to other currencies in the foreign exchange market. This manifests itself as a decline in the dollar index. Generally, this means a foreign currency, such as the euro, can buy an increasingly large amount of dollars.
A declining dollar can also mean a fall in the value of U.S. Treasurys, which drives up Treasury yields and interest rates. Treasury note yields are the main driver of mortgage rates. It can mean that foreign central banks and sovereign wealth funds are holding fewer dollars, too. This lowers the demand for dollars.
Economic Effects of a Declining Dollar
A weaker dollar buys less in foreign goods. This increases the price of imports, contributing to inflation. As the dollar weakens, investors in the benchmark 10-year Treasury and other bonds sell their dollar-denominated holdings.
Contracts for oil and other commodities are usually denominated in dollars. As a result, historically, there has been an inverse relationship between the value of the dollar and commodities prices. Essentially, as the value of the dollar falls, the dollar-denominated prices of these commodities must rise to reflect their unchanged intrinsic value.
On the plus side, a weakening dollar helps U.S. exporters. Their goods will seem cheaper to international buyers. This boosts the United States’ economic growth, which attracts foreign investors to U.S. stocks. However, if enough investors leave the dollar for other currencies, this could cause a dollar collapse. This is largely a theoretical consideration. The probability of this development is extremely low, as discussed in the closing section of this piece.
Potential Causes of Dollar Decline
In 2010, the Foreign Account Tax Compliance Act required foreign banks and other financial institutions to disclose information regarding income and assets held by U.S. customers.1 Its goal is to root out wealthy U.S. taxpayers who are hiding money offshore on purpose.
Another aim of the law is to stop foreign banks from using tax evasion as a profitable line of business. Many people were worried that foreign banks would drop U.S. customers, to avoid compliance with the law, thereby pushing those banks away from dollar-denominated assets, which might lead to a decline in the dollar's value.
On October 16, 2013, China allowed British investors to pour $13.1 billion into its tightly restricted capital markets. This made London the first trading hub for the yuan outside of Asia. This is one way China is trying to encourage central banks to increase their holdings of the Chinese yuan. It is the biggest potential threat to the value of the dollar. China would like the yuan to replace the dollar as the world's reserve currency. Were that to happen, the dollar would lose value.
Since then, China has been devaluing the yuan against the dollar. It is doing so because its leaders are worried China's economy is growing too slowly. The devaluation objective is largely accomplished via the continual purchase of U.S. dollars by the Chinese central bank. Clearly, China’s actions have a significant impact on the value of the dollar.
Recent Declines in the Dollar's Value
To continue reading, please go to the original article here:
https://www.thebalancemoney.com/dollar-decline-or-dollar-collapse-3306090
More News, Rumors and Opinions Tuesday PM 10-25-2022
Note From Dinar Recaps:
To our newest readers,
If you are new to the Dinar and Currency investment and wish to educate yourself further please go to Dinarrecaps .com . At the top of our blog page click on the categories button and go to The Dinar Recaps Archives or Post RV Categories for all our past posts on history of past RV’s, Exchange tips, Security and other valuable information.
We hope all of our dreams come true very soon.
Your Dinar Recaps Team
Note From Dinar Recaps:
To our newest readers,
If you are new to the Dinar and Currency investment and wish to educate yourself further please go to Dinarrecaps .com . At the top of our blog page click on the categories button and go to The Dinar Recaps Archives or Post RV Categories for all our past posts on history of past RV’s, Exchange tips, Security and other valuable information.
We hope all of our dreams come true very soon.
Your Dinar Recaps Team
KTFA:
Samson: Central Bank : There are no intentions to change the exchange rate
24th October, 2022
The Central Bank of Iraq reiterated Monday, that there are no intentions to change the exchange rate.
An official source in the Central Bank told the Iraqi News Agency (INA), that "there are no intentions to change the exchange rate."
The source called on citizens and all stakeholders to preserve the value of their money and to stay away from what is rumored in the media. LINK
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DoTalktome: Think I have to call ca ca on this 1.
Kuwait had a full-page article saying they would not add value to their currency.
They did it the very next day.
I think it is a ploy to throw off speculators.
Not saying they will do it tomorrow!
But expectations are alive.
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Courtesy of Dinar Guru
Walkingstick [via Frank26] These banks [CBI satellite banks] are in position. Their job is to pick up the remaining 3-zeros that the CBI has not been able to retrieve. It's brilliant...not all of these banks have opened but they are opening. Walkingstick's friend has already opened theirs. They are now in position to welcome Iraqi citizens that may have 3-zero notes that they took with them when they fled...They'll be trading them in for the international rate because they're outside of Iraq. Basically they're investors like you...
MilitiaMan Article: "Deputy: An upcoming parliamentary hosting of the Governor of the Central Bank and the Minister of Finance regarding the reduction of the exchange rate" The CBI Governor and the Finance Minister hosted a meeting on the exchange rate change. The call to get 50 signatures for reduce the exchange rate back to an official rate have been collected. The exchange rate change is on the table within days apparently... It is the Governments job to issue currency and it is the CBIs job to issue an exchange rate with the approval of the Finance Ministry... The amount of data out today on this matter is awesome...imo.
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TNT:
Tishwash: All eyes are on Thursday for the official announcement of the Sudanese government
The independent representative, Hussein Arab, confirmed, on Tuesday, that the official announcement on the new cabinet will be next Thursday, indicating that the independent representatives will not have any representation in the next Sudanese government.
Arabs said in a statement to Al-Maalouma, "The government of Prime Minister-designate Muhammad Shiaa Al-Sudani is almost completely completed, and that Thursday will be the date for the official announcement of the formation of the new government."
He added, "The Sudanese government should have representation for most of the provinces, because all provinces have many administrative and professional competencies in all joints."
Arab stressed that "the independent representatives will not have any representation in the Sudanese government, but they will support the Sudanese and his government if it proceeds according to its declared programme."
A member of the Al-Fateh Alliance, Salam Hussein, had confirmed in a previous statement, that what was available to the Prime Minister-designate, Muhammad Shiaa Al-Sudani, was not available to anyone before him in the process of forming a government. link
Iraqi Dinar update for 10/24/22 - Can we see to rate increases by the end of 2023
Pimpy’s investment Chat: The other side of things: 10-25-2022
Breaking: Dreaded Death Cross Just Happened (This Is Serious)
George Gammon: 10-25-2022
This is a huge, HUGE red flag.
Bix Weir and Greg Mannarino Tuesday 10-25-2022
ALERT! Not Only Are Silver Markets Rigged but ALL MARKETS! Thanks to Greenspan & Friends!
(Bix Weir) 10-25-2022
All markets have been 100% controlled by computers and derivatives run out of the Exchange Stabilization Fund since the 1970's!
Alan Greenspan was the best financial computer programmer for the entire 50 years since we abandoned the pseudo Gold Standard in 1971.
Since then NOTHING has been freely traded!
THAT'S ALL ABOUT TO CHANGE!
ALERT! Not Only Are Silver Markets Rigged but ALL MARKETS! Thanks to Greenspan & Friends!
(Bix Weir) 10-25-2022
All markets have been 100% controlled by computers and derivatives run out of the Exchange Stabilization Fund since the 1970's!
Alan Greenspan was the best financial computer programmer for the entire 50 years since we abandoned the pseudo Gold Standard in 1971.
Since then NOTHING has been freely traded!
THAT'S ALL ABOUT TO CHANGE!
Yellen: US Treasury "Buy-Backs?" Things May Be WORSE Than We Think... IMPORTANT UPDATES.
Greg Mannarino: 10-25-2022
News, Rumors and Opinions Tuesday AM 10-25-2022
.RV Excerpts and Rumors from the Restored Republic via a GCR: Update as of Tues. 25 Oct. 2022
Compiled Tues. 25 Oct. 12:01 am EST by Judy Byington
Global Currency Reset:
The Quantum Financial System is Live! BRICS, the US Note and other World Currencies were now Gold/Asset-Backed! …Charlie Ward
On Thurs. 27 Oct funding from Dubai 2 would be released, making it a “go” for Tier 4B (Us, the Internet Group) to set exchange and redemption appointments. …A High Up Contact
On Thurs. 20 Oct. The Quantum Financial System went Live, the Green Light was given for release of QFS liquidity, and release of funding from Dubai 1 began. …A High Up Contact
On Fri. 21 Oct. the BRICS Portal (of the four Quantum Financial System Portals) was turned on, allowing the Chinese Historic Bonds to be paid out in full. …Charlie Ward
RV Excerpts and Rumors from the Restored Republic via a GCR: Update as of Tues. 25 Oct. 2022
Compiled Tues. 25 Oct. 12:01 am EST by Judy Byington
Global Currency Reset:
The Quantum Financial System is Live! BRICS, the US Note and other World Currencies were now Gold/Asset-Backed! …Charlie Ward
On Thurs. 27 Oct funding from Dubai 2 would be released, making it a “go” for Tier 4B (Us, the Internet Group) to set exchange and redemption appointments. …A High Up Contact
On Thurs. 20 Oct. The Quantum Financial System went Live, the Green Light was given for release of QFS liquidity, and release of funding from Dubai 1 began. …A High Up Contact
On Fri. 21 Oct. the BRICS Portal (of the four Quantum Financial System Portals) was turned on, allowing the Chinese Historic Bonds to be paid out in full. …Charlie Ward
On Sat. 22 Oct. some Tier 3 Bonds began to go liquid.
Right now the new gold/ asset-backed USTN was in the banks and available to be distributed. …Charlie Ward
Restored Republic:
As of Sun. 23 Oct. 2022 Chinese President Xi, with help from the White Hat Military, has taken down the Chinese Communist Party and arrested it’s leaders. This was necessary in order for China to be a part of the Global Currency Reset.
Remember, Remember the 5th of November! V for Vendetta! The Epic Prophecy is Happening! London is Falling! Dark to Light This is the Great Awakening: https://greatawakening.world
The Quantum Financial System is Live! BRICS, the US Note and Other World Currencies Were Now Gold/Asset-Backed! …Charlie Ward https://beforeitsnews.com/alternative/2022/10/charlie-ward-official-spokesperson-for-the-qfs-makes-stunning-statements-on-stage-quantum-financial-system-goes-live-us-gold-backed-currency-update-deepstate-and-cabal-now-only-has-pape-3782458.html
Sun. 23 Oct. 2022: US Dollar Has Been Backed with Gold, Economic Collapse Averted, US and Australian Debt Paid off | EU | Before It’s News (beforeitsnews.com)
Read full post here: https://dinarchronicles.com/2022/10/25/restored-republic-via-a-gcr-update-as-of-october-25-2022/
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Courtesy of Dinar Guru
RVAlready I think the CBI, UN, and IMF have the finish line in sight, and they are in a dead run to get the RV accomplished. ...I think the CBI is ready to release the RV, once the cabinet is released.
Pimpy Understand the central bank is its own entity. It's separate than Iraqi government and they're the ones that actually determine what the exchange rate is going to be. If for some strange reason the governor of the Iraqi Central Bank feels it's necessary for a higher exchange rate than what they have they'll make the change. But they are going to have to justify it and it might be against all normal reasons why an exchange rate changes...
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AND SO IT BEGINS! "The Inflation Propaganda Extravaganza." SCREAM LOUDLY! it Helps.
Greg Mannarino: 10-24-2022
The Dollar Is Doomed - Saudi Arabia Wants To Join BRICS
Sean Foo: 10-25-2022
Saudi Arabia has expressed interest to join BRICS, this might be the start of the end for the Petrodollar system. According to South African President Ramaphosa, MBS is keen to join this economic bloc.
If this becomes a reality, the US dollar will be knocked off the reserve currency pedestal and there will be chaos for the US economy. Here's what you just know!
Inflation Dictionary Your Guide to the Jargon
.Inflation Dictionary Your Guide to the Jargon
Here's what experts mean when talking about ‘CPI’ and 'soft landing'
By Diccon Hyatt and Medora Lee Updated on June 10, 2022
Fact checked by Julianne Slovak
Higher and higher inflation may seem relentless, but what exactly is driving it and what can be done? Government officials and the media are abuzz with talk of things like core inflation, supply chain problems, and interest rate hikes, but these terms can be opaque, to say the least.
As prices rise faster than they have since 1981, here’s how to translate the jargon.
Inflation Dictionary Your Guide to the Jargon
Here's what experts mean when talking about ‘CPI’ and 'soft landing'
By Diccon Hyatt and Medora Lee Updated on June 10, 2022
Fact checked by Julianne Slovak
Higher and higher inflation may seem relentless, but what exactly is driving it and what can be done? Government officials and the media are abuzz with talk of things like core inflation, supply chain problems, and interest rate hikes, but these terms can be opaque, to say the least.
As prices rise faster than they have since 1981, here’s how to translate the jargon.
Inflation
Inflation is a sustained increase in the average price level of goods and services. While prices of individual products—gasoline or steak, for example—can go up or down, that doesn’t necessarily mean there’s inflation, because inflation is a broad increase in prices.
The speed at which prices increase is called the inflation rate, and that accelerated to 8.6% in May from 8.3% in April, according to the latest reading of one widely used measurement, the Consumer Price Index (see definition below).1 In other words, overall, prices in May were 8.6% higher than they were in May 2021. For context, the inflation rate has stayed around or below 3% most years since the early 1990s, and the last time it was this high was all the way back in 1981.
Because prices are rising so much faster than usual, the big question is how long it will last and what can and should be done about it.
Inflation happens when “too much money chases too few goods,” according to an old saying in economics. There’s broad debate over exactly what is causing the current inflation trend.
But some economists argue the pandemic’s shutdowns and labor shortages have caused difficulties in production and transportation that have given us the “too few goods” part of the equation, while government stimulus measures to combat the pandemic’s economic downturn have provided the “too much money” element.
To that point, the government, via the Federal Reserve, has pulled back its support to curtail the “too much money” factor, raising the cost of borrowing by increasing its benchmark interest rate. But raising the rate (see below) risks higher unemployment and hitting the brakes on economic growth, so it’s not always an easy choice. Making matters worse is the war in Ukraine, which sent the price of oil and other commodities higher amid sanctions against Russia and other supply disruptions in the region.
CPI and PCE
The Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) price index are both government measures of consumer prices. The change in them, more often than not measured year-over-year, is inflation when it’s going up, and deflation when it’s going down.
With each index, there is a “headline” inflation rate as well as a “core” inflation rate (see definition below) that strips out prices from the volatile food and energy sectors.2 The details of how they measure price changes and what they measure are different, and explain why CPI tends to reflect more inflation than PCE.3
CPI, released by the Bureau of Labor Statistics, measures how much urban consumers pay for a basket of goods and services based on household surveys. The basket is static, measuring the price changes of the same basket each month, and only accounts for out-of-pocket expenses, so items that are not directly paid for—like Medicare or Medicaid—aren’t counted.
In contrast, the Bureau of Economic Analysis’s PCE index reflects the prices of goods and services businesses are selling. It includes those items not directly paid for by consumers, like medical care paid for by employer-provided insurance, and accounts for changing consumer choices, making the basket more variable. For example, if bread gets too expensive and people stop buying it, the weighting of bread drops in the calculation.
To continue reading, please go to the original article here:
https://www.thebalancemoney.com/inflation-dictionary-your-guide-to-the-jargon-5206432
Who Said There Needed To Be an Alternative?
Who Said There Needed To Be an Alternative?
Notes From the Field By Simon Black October 24, 2022
In the early 6th century BC, roughly 2,600 years ago during the Zhou Dynasty of ancient China, a young scholar named Li Er was hired to work as a government scribe in the imperial capital of Chengzhou. Though Li had no formal schooling, he quickly became renowned for his keen intellect. And in time he began to attract a large number of disciples and students who wanted to learn from him. According to one legend, even a young Confucius came to seek his wisdom.
The more time Li spent in government, though, the more disillusioned he became with the entire institution. He witnessed corruption, financial waste, and abuse of power first hand, and he could see that his kingdom was in decline.
Who Said There Needed To Be an Alternative?
Notes From the Field By Simon Black October 24, 2022
In the early 6th century BC, roughly 2,600 years ago during the Zhou Dynasty of ancient China, a young scholar named Li Er was hired to work as a government scribe in the imperial capital of Chengzhou. Though Li had no formal schooling, he quickly became renowned for his keen intellect. And in time he began to attract a large number of disciples and students who wanted to learn from him. According to one legend, even a young Confucius came to seek his wisdom.
The more time Li spent in government, though, the more disillusioned he became with the entire institution. He witnessed corruption, financial waste, and abuse of power first hand, and he could see that his kingdom was in decline.
So after several decades of devoting himself to government bureaucracy, Li finally decided that he’d had enough, and he set out for a quiet retirement in the countryside, far away from the moral decay and madness of the imperial city.
Li was quite a famous teacher and philosopher at that point. And on his way outside of the main city gate, a guard named Yinxi recognized him, and was saddened to learn that Li was leaving the city forever.
The guard asked Li to please write down his wisdom, so that the whole world could learn of his philosophy.
Li agreed, and kept his promise; the text he wrote is called Tao Te Ching, and Li himself became known to history as Laozi (commonly written as Lao-Tzu), or ‘Old Master’.
Tao Te Ching is a really important work in that it was one of the first ancient texts in human history to argue in favor of limited government and personal freedom.
Li (or whoever wrote Tao Te Ching) obviously didn’t care for government; he writes, for example, that “regulations increase the poverty of the people”, and “the more display there is of legislation, the more thieves and robbers there are.”
It reminds me of the sign that Ron Paul used to keep on his desk while he was a Congressman: “Don’t steal. The government doesn’t like competition.”
It’s quite ironic that, to this day, Laozi is still revered as an intellectual giant in China. And yet if he were alive today, he would most likely have been arrested long ago and living out his days in a concentration camp.
Chinese President Xi Jinping clearly has no regard for the Tao’s ideas.
This past weekend Xi formally secured his third term as the General Secretary of the Chinese Communist Party, cementing his autocratic power for at least the next 5 years.
Let’s not mince words: Xi is dangerous. He has taken China backwards in so many ways, including and especially with respect to personal freedom.
His desire to control the day-to-day activities of people’s lives is so extreme, for example, that he even imposed strict limitations on how much time young people were allowed to play video games.
Personally I’m not opposed to kids having limits on screen time. But last time I checked, Xi Jinping isn’t everyone’s dad.
Yet that barely scratches the surface of Xi’s fetish for absolute power. COVID is another great example; Xi’s love of COVID lockdowns is rivaled only by Anthony Fauci. And the resulting economic destruction his policies have caused makes Joe Biden and Nancy Pelosi look like a couple of amateurs.
But Xi doesn’t seem to care. He acts as if the sole purpose of the Chinese economy is to support the party, not the other way around.
Xi routinely harasses private businesses and forces them to submit to the state. He has ousted corporate leaders, stolen their assets, and put many in prison.
China’s tech sector has suffered an economic and intellectual drain as a result. And under his leadership, foreign investors are even less trusting of China than they were before.
Under Xi’s predecessor, Hu Juntao, Chinese wages and GDP doubled. China became a major world power. China and Taiwan held historic talks, and trade increased significantly between the two countries.
Xi doesn’t seem to have interest in peace and prosperity. And perhaps to underscore the supremacy of his new direction for China, Xi had his predecessor physically removed from the room during this weekend’s Party Congress in Beijing.
Xi is often compared to Hitler across Internet chat rooms, usually due to the internment and murder of China’s Uyghur minority.
To be frank, however, the parallels between Xi and Hitler go far beyond the Uyghur genocide.
After Hitler rose to power, he also cared very little about the German economy. He wanted it to be healthy, of course. But he viewed the economy as an extension of the state.
Hitler’s top priority was in developing a strong military. And he believed that, as long as the military was strong, that the German economy would be strong as well simply because foreign nations would not oppose him.
This seems to be Xi’s approach. He’s investing heavily in China’s military and weapons technology, and he demands that private industry subordinate itself to these ends.
This all leads me back to a key theme: the US dollar.
I’ve long argued that the US dollar’s dominance as the global reserve currency is coming to an end. This is inevitable; no currency and no superpower has held the top spot forever.
Yet this view is very difficult for people to digest. It’s hard to accept that there’s a shelf life for America’s global dominance. And often people assume that the US will continue to reign supreme simply because “there is no alternative”.
And that’s true.
No one trusts China. Very few people (outside of China) want the renminbi as the world’s reserve currency.
And to be fair, China has a mountain of its own problems. Its demographic challenges (due to decades of the One Child Policy) are unfixable in my opinion.
Plus China also has serious defects in its financial system, debt levels, and more. Not to mention its currency is plagued by capital controls.
This doesn’t seem like an obvious alternative to take over the global financial system.
But who ever said there needed to be an alternative?
The US dollar was formalized as the dominant reserve currency at the Bretton Woods conference in 1944. Dozens of representatives from multiple sovereign nations literally gathered in a room and agreed that the dollar would be king.
No one is going to be doing that any time soon with China or its currency, the renminbi.
But that doesn’t mean the dollar is going to keep its status forever.
Losing its reserve status doesn’t require a replica of the US dollar in a different country. No one is going to flip a switch and suddenly cause all global trade to go through the Chinese financial system.
Losing reserve status means gradually losing market share.
It means, for example, that European aircraft manufacturer Airbus will start selling its jets in euros, instead of dollars (especially to European airlines).
It means some sovereign nations whose currencies are currently pegged to the US dollar abandon their pegs and allow their currencies to float freely.
It means foreign institutions gradually cut their holdings of US government debt.
And yes, it also means that some Chinese companies will conduct cross-border trade in their own currency. In fact this is already happening. And it’s accelerating.
It’s true few people trust Xi. Nobody trusted Hitler either. And yet Nazi Germany did booming trade with the rest of the world, and much of it was denominated in his reichsmark. In fact there was an entire trade bloc in Europe with the reichsmark as its unofficial reserve currency.
None of these trends will cause the US dollar to disappear, and certainly not overnight. But they do constitute a gradual chipping-away of the dollar’s dominance.
And that has major long-term implications for the US economy.
To your freedom and prosperity,
Simon Black, Founder Sovereign Research & Advisory
https://www.sovereignman.com/trends/who-said-there-needed-to-be-an-alternative-143846/
Hugh Hendry, Bill Holter, Andy Schectman and Greg Mannarino 10-24-2022
We’re Entering Worst Economic Time in World History; Fed Is Paving Path of Destruction: Hugh Hendry
Stansberry Research: 10-24-2022
Hugh Hendry, financier and founding partner of hedge fund Eclectica Asset Management, speaks with Daniela Cambone at the 2022 Stansberry Conference and Alliance Meeting.
He argues that there are three forms of money and money will get hit the hardest. Inflation is asset price inflation. They are tumbling, "we are seeing monetary destruction."
He asks, when has the Fed last done anything worth celebrating? The inflation we have is a "political problem, on the cusp of a deflationary catastrophe to the likes of which we've never seen."
Hendry concludes by arguing, "we are being condemned to the errors of the early 2010s."
We’re Entering Worst Economic Time in World History; Fed Is Paving Path of Destruction: Hugh Hendry
Stansberry Research: 10-24-2022
Hugh Hendry, financier and founding partner of hedge fund Eclectica Asset Management, speaks with Daniela Cambone at the 2022 Stansberry Conference and Alliance Meeting.
He argues that there are three forms of money and money will get hit the hardest. Inflation is asset price inflation. They are tumbling, "we are seeing monetary destruction."
He asks, when has the Fed last done anything worth celebrating? The inflation we have is a "political problem, on the cusp of a deflationary catastrophe to the likes of which we've never seen."
Hendry concludes by arguing, "we are being condemned to the errors of the early 2010s."
LIVESTREAM: SILVER CRISIS AHEAD WITH BILL HOTLER & ANDY SCHECTMAN & Jean-Claude@BeyondMystic
10-24-2022
SILVER CRISIS AHEAD WITH BILL HOTLER & ANDY SCHECTMAN
HISTORIC BOND MARKET SELL-OFF... Is It OVER YET? THIS IS WHAT'S NEXT FOR THE MARKET...
Greg Mannarino: 10-24-2022
What if Deutsche Bank Derivatives Bubble Suddenly Implodes into a Financial Black Hole?
What if Deutsche Bank Derivatives Bubble suddenly Implodes into a Financial Black Hole
The Nomad Economist: 10-22-2022
Deutsche Bank is to Germany is what Wells Fargo is to the US .it just does not stop at one scandal, there is another and another and another.
Today, Deutsche Bank was convicted of derivatives transactions in Italy. An Italian court convicted 13 former bankers from Deutsche Bank, Nomura, and Monte dei Paschi di Siena on Friday over derivative transactions that prosecutors say helped MPS the world’s oldest bank conceal huge losses.
The verdict also ordered the seizure of 64 million euros, about $70.5 million, from Deutsche Bank and 88 million euros from Nomura as part of the sentence. Monte dei Paschi reached a settlement of 10.6 million euros with the court in 2016.
What if Deutsche Bank Derivatives Bubble suddenly Implodes into a Financial Black Hole
The Nomad Economist: 10-22-2022
Deutsche Bank is to Germany is what Wells Fargo is to the US .it just does not stop at one scandal, there is another and another and another.
Today, Deutsche Bank was convicted of derivatives transactions in Italy. An Italian court convicted 13 former bankers from Deutsche Bank, Nomura, and Monte dei Paschi di Siena on Friday over derivative transactions that prosecutors say helped MPS the world’s oldest bank conceal huge losses.
The verdict also ordered the seizure of 64 million euros, about $70.5 million, from Deutsche Bank and 88 million euros from Nomura as part of the sentence. Monte dei Paschi reached a settlement of 10.6 million euros with the court in 2016.
The case centers on two controversial derivatives deals, known as Alexandria and Santorini, that Nomura and Deutsche Bank arranged for Monte dei Paschi in 2009. Prosecutors said the deals helped Monte Dei Paschi, which was founded in 1472 and is Italy’s fourth-biggest lender, hide more than 2 billion euros of losses it racked up after the costly acquisition of a smaller rival in 2008.
Monte dei Paschi’s managers were accused of colluding with Deutsche Bank and Nomura bankers to hide losses at the Italian lender by using complex derivatives trades, dubbed Santorini, and Alexandria, that led to a misrepresentation of its finances between 2008 and 2012.
Deutsche bank should be allowed to collapse; they're a failed venture, it's not in the capitalist system to save failed businesses and the consequences for the common man from paying those bailouts have been catastrophic.
Europe's biggest investment bank Deutsche Bank is technically bankrupt.And of course for everyone who knows Deutsche bank is the bank for derivatives trading. We are talking about derivatives contracts in the value range of quadrillions of dollars — not millions, not billions, not trillions of quadrillions.
And derivatives contracts are at the very core outright gambling. Deutsche Bank is in big trouble. If its bankruptcy becomes true, it will be the end of the financial system as we know it. And as the big banks are highly leveraged, and they are interdependent. If one major bank fails, a lot of others are going to fall like dominoes.
Deutsche Bank could not collapse without causing a domino effect and taking with it the whole financial system. it's also a harbinger of a bigger problem with European banks in general and the Italian bank in particular, which are loaded with trillions of euros in non-performing bank loans .
They haven't been able to shed since the crisis of 2008 and subsequent eurozone double-dip recession of 2011. The European banks and insurers have lost dramatic amounts of ground with only one still ranking in the top 20 globally by market value .compared with six before the financial crisis.
Deutsche Bank president Carl von Rohr said before yesterday at Bloomberg's Future of Finance conference in Frankfurt: while challenges abound from an erratic trade war to Brexit to unrest in Hong Kong and Chile they pale in comparison with the headwinds for banks from low and negative rates he said.