Rothbard argues fractional reserve banking is fraudulent and destabilizes the economy by causing boom and bust cycles due to the mismatch between depositors’ perceptions and banks’ actual reserves.
In Rothbard’s view, fractional reserve banking leads to distorted interest rates, causing businesses to borrow more than they otherwise would, resulting in unsustainable booms as previously unprofitable projects become viable.
Rothbard advocates for a 100% reserve system for checking accounts, where banks charge fees for holding money rather than lending it out, preventing bank runs and allowing banks to act as credit intermediaries.
Mises favored free banking with normal contract enforcement, believing market forces would lead to high reserve ratios through competition, as banks would strive to maintain reserves to avoid bankruptcy.
Both Rothbard and Mises argue that fractional reserve banking leads to inefficient allocation of resources, causing inefficient investment and production compared to a 100% reserve system.
Mises acknowledged that fractional reserve banking allows for economizing on gold resources by simulating gold services without using as much physical gold, but still believed it would lead to unsustainable booms and crashes.
Mises posited that even with 100% reserve banking, the influx of new gold could trigger a boom and bust cycle by lowering interest rates and subsequently raising wages and prices.
According to Mises, fractional reserve banking, even with high reserve ratios, can lead to unsustainable economic growth and crashes as newly issued fiduciary media distort interest rates and wages before permeating the economy.
Governments and big tech are colluding to control narratives, censor information, and suppress dissent, with even Harvard epidemiologists and Nobel laureates being silenced for questioning official COVID-19 narratives.
The UN and Google have partnered to suppress dissenting views by only showing consensus search results, declaring “we own the science” in 2023 and labeling disagreement with their climate agenda as misinformation.
Central Bank Digital Currencies (CBDCs) are being developed to create a permission-based society, controlling spending on items like net zero and covid health plans, while tracking individual carbon footprints.
The Patriot Act and surveillance state are used to justify restrictions on free speech and individual rights, with government and tech companies monitoring and censoring as a form of tyranny and control.
The “97% consensus” claim in climate science is based on flawed methodology, with studies showing that any data would produce a hockey stick graph, yet it’s still cited by media and politicians as “99% consensus“.
Climate agenda is being used to justify CBDCs and permission-based societies, with government and tech companies working together to impose “carbon communism” and totalitarian control.
Naval Harari of the World Economic Forum, advisor to Klaus Schwab, discusses using psychotropic drugs and video games to control people when AI takes over their jobs.
Mastercard and Visa have partnered with the United Nations for a CO2 monitoring card that cuts off spending when limits are exceeded, currently voluntary but potentially mandatory in the future.
Mimetic theory posits that humans acquire desires through unconscious imitation of others, challenging the notion of innate individual desires and highlighting our fundamentally social nature.
The discovery of mirror neurons in the 1990s provides neurological evidence for Girard’s theory, demonstrating that our brains are wired for imitation and empathy.
Role models and influencers, including celebrities and social media personalities, serve as powerful mediators of desire, shaping cultural norms and behaviors through their imitation-worthy status.
Mimesis is the primary mechanism for transmitting cultural information across time and space, with those at the top of cultural hierarchies wielding significant influence over societal values and trends.
Mimetic rivalry and scandal arise when desires are blocked, leading to phenomena like crab mentality and tall poppy syndrome, where individuals attempt to hinder others’ success out of envy or spite.
The single victim mechanism or scapegoating is a process where collective violence is directed towards a single individual, blamed for problems caused by mimetic contagion, temporarily restoring social order.
In Girard’s theory, Satan represents the reciprocal process of victimization, embodying both the first law of disorder (rivalry) and the first law of order (scapegoating).
Imitating Christ, rather than participating in mimetic violence, offers a path to transcend destructive social patterns by standing apart from mob mentality and choosing to love one’s neighbor.
BRICS nations, led by China and Russia, have been aggressively accumulating gold over the past decade, accounting for 80-90% of central bank gold purchases in the last 2 years, preparing for a potential monetary system reset.
An alternate currency system to replace the US dollar is being developed by BRICS nations, potentially to be announced at the upcoming BRICS Summit, challenging the dollar’s status as the world’s reserve currency.
The US dollar’s fiat system, which began in 1971 after the removal of gold backing, may be nearing its end, as reserve currencies historically last 60-100 years on average.
The US is heading for economic collapse with soaring inflation, decreasing dollar utility, and a dysfunctional financial system, regardless of election outcomes, according to Bob Moriarty.
The Fourth Turning, a crisis phase predicted by William Strauss to start around 2005 and last 20-25 years, could lead to either totalitarianism or new freedoms.
Russia and China are positioned to establish a long-lasting reign as global superpowers in the new monetary system, based on their significant gold accumulation and economic strategies.
Today on the Jay Martin Show, retired army colonel Douglas Macgregor offers a critical analysis of U.S. foreign policy, highlighting the influence of wealthy donors and oligarchs in shaping national decisions. He argues that America’s involvement in conflicts like Ukraine and the Middle East is driven not by public interest but by the financial incentives of a few powerful figures.
Macgregor emphasizes that American democracy is compromised by this donor control, and that wars in Ukraine and the Middle East serve the interests of corporate elites rather than the American public.
He also discusses how media manipulation and government corruption further perpetuate this system, leading to unnecessary military interventions.
Finally, Macgregor touches on the geopolitical implications of these conflicts, suggesting that the U.S. is courting major wars while ignoring its own domestic issues, and warns of the possible financial collapse looming on the horizon.
BRICS countries are developing a new common currency called the “Unit“, backed by 40% gold and 60% basket of currencies, challenging the US dollar’s dominance in global trade.
Central banks are buying gold at record levels while reducing dollar reserves, with global dollar reserves falling to 57%, the lowest in 25 years.
Over 30 prospective nations are expected to join BRICS discussions, including Turkey and Thailand, representing 75% of world population and 50% of global GDP.
The “Unit” will be used for inter-nation transactions, not replacing local currencies, with strict penalties for non-compliance and continuous auditing visible on the blockchain.
Gold used to mint unit settlement tokens will be held within the jurisdiction of possessing countries, as advised by the BIS, making gold a tier one asset backing the new system.
For BRICS’ mBridge and Unit currencies to fully roll out, gold needs to be revalued to $150,000 per ounce to provide necessary liquidity.
Revaluing US gold holdings could neutralize global desire to move away from the dollar if tied to gold, potentially offsetting indebted countries’ balance sheets.
The US faces massive fiscal irresponsibility with 7% annual money creation, losing half of purchasing power since 2010 and accumulating trillion-dollar debt every 90 days.
Former President Trump warns that losing dollar’s reserve currency status is equivalent to losing a war, proposing 100% tariffs on countries not honoring the dollar.
If the US dollar is devalued and gold revalued, it could lead to a dumping of dollars and treasuries, potentially causing the implosion of overleveraged financial markets.
Inflation is stubbornly high at 7.5% vs. 2.6% CPI, with key costs like taxes, gasoline, food, health insurance, and housing increasing much more than wages over the past 5 years.
The US faces a $35 trillion on-balance-sheet debt and $100 trillion off-balance-sheet liabilities for entitlements, with the deficit growing by $3-4 trillion annually.
The next 10 years will likely see lower investment returns, higher cost of capital, persistent inflation, and a social war between those who believe their work is rewarded and those who believe society owes them a living.
Warren Buffett has trimmed positions in Apple and financial services companies due to concerns over inflation, credit quality issues, and the transition to a 10-year period of higher volatility.
Gold and silver serve as insurance against financial disruptions, with prices increasing during times of inflation and debt.
Tier one mining assets are the most underrated and important for investing, being large, long-lived, high-margin deposits that can overcome operating mistakes and provide exploration upside.
The uranium market is transitioning from a spot market to a long-term contract market, benefiting 10-12 junior uranium companies with economic deposits.
The money made in natural resources is concentrated in a very few companies and projects that are large, long-lived, and high-margin, capable of amortizing mistakes and providing exploration upside.
The BRICS Summit is expected to drive gold and silver prices higher, with China’s BRICS Pay system potentially enabling cross-border gold payments.
As the US national debt approaches $35 trillion, analysts question whether US Treasury bonds can still provide stability, leading to gold being viewed as the ultimate safe haven asset.
Bank of America’s commodity strategist predicts gold could reach $3,000 by year-end due to concerns over US funding needs and their impact on the US Treasury Market.
Despite higher volatility, silver is matching gold’s year-to-date gains of +30%, driven by growing solar demand and increasing ETF holdings.
China’s People’s Bank is making it cheaper for select entities to pledge government bonds and central bank bills to buy stocks, aiming to liquefy markets and reduce financial risks.
Liberty has gained a significant head start over authoritarianism in recent years, thanks to the internet and support from influential figures like Elon Musk.
Authoritarianism is often the default state for humanity, with natural advantages in money, resource seizure, and institutional control, while liberty remains an unstable equilibrium.
The costs of preparing for authoritarianism (e.g., leaving the country, adjusting investments) increase with success and embeddedness, making it challenging for the elite to leave early.
During authoritarian times, people protected themselves by adjusting stock portfolios, stockpiling food, packing emergency bags, and leaving the country.
Liberty possesses natural advantages over authoritarianism, including the fact that humans are not inherently slaves, and slavery is an unstable equilibrium waiting for the right push to collapse.
Momentum Structural Analysis (MSA) suggests that stock market crashes are often preceded by breaks in momentum structures, not price, indicating the US market is currently the biggest stock market bubble globally.
Recent headline-driven price action with new highs by just a few points signals weak momentum and unsustainable growth, potentially leading to a sudden 5-10% drop if daily momentum breaks.
Despite recent strength, banks’ technical momentum is weak, with MSA warning of a possible 30-35% drop in a month if momentum breaks, mirroring the March 2023 banking sector decline.
The upcoming US election could trigger social unrest and violence, acting as a catalyst for stock market shifts and precious metals performance, according to a University of Virginia Department of Politics poll.
A stock market break may prompt portfolio managers to shift funds into gold and silver, historically rising during major stock market downturns, while also triggering monetary policy easing and increased money supply.
Cut through the clutter and mainstream media noise. Get free, concise dispatches on vital news, videos and opinions. Delivered to Your email inbox daily. You’ll never miss a critical story, guaranteed.