TFMR Podcast #10 - Jim Quinn of The Burning Platform

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Late Thursday, I had a conversation with Jim Quinn of http://www.theburningplatform.com/ As you may know, I've become a big fan of Jim's work and it was a real treat to get to visit with him.

I think what I like best about Jim is that he's just a regular guy. He's not a "former Wall St analyst" or an "independent trader". He's just a guy that was so alarmed at what he saw happening in the U.S. that he feared for his kids' future. He started writing articles in 2008 and they were soon picked up by several, independent websites. Not long after that, it was off to the races. He now manages his own site called The Burning Platform and he is frequently a "guest poster" at Zero Hedge.

I heartily encourage you to become a regular visitor to his site.

p.s. I was having some extraordinarily strange, technical difficulties while recording this podcast. Unfortunately, the recording was interrupted and I lost the last 15 minutes or so. I promise to try to circle back around to Jim soon so that we can elaborate on this initial discussion.


241 Comments

Be Prepared's picture

First-a-licious!

This is the Firstiest Firstness!

SS121's picture

Could it happen

me 1 ?

DOH!

lordbyroniv's picture

TURD

TURD !!!

Be Prepared's picture

Capital Controls come to Italy

Capital Controls come to Italy

  • The passing of an extraordinary edict making cash transactions of more than Euro 1,000 illegal (not subject to reporting – just plain illegal). Following Prodi’s own desire, the existing regime has indicated that this level will be progressively reduced to a limit as low as Euro 300. Hence cash is maybe for the first time in history no longer legal tender (over Euro 1,000, for now);
  • A requirement that credit card companies report all transactions carried out by Italians, in Italy and abroad to the fiscal authorities;
  • Delays and refusals by banks in allowing customers to withdraw cash balances of as little as Euro 10,000;
  • Finance Police has placed cameras at the physical borders with Switzerland (see below) to register all license plates. In addition, currency-sniffing dogs have been deployed at the border ( http://www.cdt.ch/ticino-e-regioni/cronaca/56250/fiscovelox-riapparsi-no... ). <Article>

___________________________________________________________________________________

This is NO longer a discussion about what may come..... I can't imagine Italians thought that this would ever happen to them. If they hadn't prepared or expected this.... it's too late now!

Turd Ferguson's picture

My goodness gracious

MODERATOR

Truly awful...and it's only just beginning.

ReachWest's picture

Yikes

@ BePrepared - Great and scary find. (A vision of the future!!?) Looks like the link is an Italian site - wish I could read Italian.

Looking forward to listening to the Podcast, Turd. Thank-you. Scheduled for tomorrow AM.

I've been somewhat absent (although lurking) from Turdville for the past few weeks (holidays and the need to take a break from all the "dark noise" surrounding the financial world). 

For a bit of amusement - here's another Turdville focused cartoon I put together. Enjoy.

ipreferPHYS's picture

...And what would we do if this were to happen to us???

What good is having cash, or even physical for that matter if it is illegal use it.   A country-wide black currency market would have to be formed and accepted by the public.  So it will be interesting to see the outcome of these controls and what the Italians will allow themselves to do.  Sounds to me like the smart Italians who prepared accordingly and diversified into other safe-haven assets (like land, housing, debt-free) are the ones who will be in the best shape.

Shill's picture

WOW! BP, just wow.Where are

WOW! BP, just wow.

Where are we at on the Central Swiss bankers wife swapping francs for dollars the day before the devaluation?

Turd thank you for the Pod Cast

kliguy38's picture

Shill

i hope you are not alleging an impropriety in the CB family...his wife is just an astute trader

TheSilverJournal.com's picture

Falling Prices is a Normal Economy

Falling prices is the normal state of an economy. Gold supply grows at only about 1.5% / year. So in a normal economy, prices fall as technological gains improve productivity, allowing the amount of goods to increase faster than the money supply. To simplify, with a little more gold chasing an even greater amount of goods, prices fall.

TheSilverJournal.com

Hang10-Hawaii's picture

Cash, capital controls, and strategies....

@ipreferPHYS

I think at this point the situation in Italy will be VERY instructive if we watch it carefully.  Many here in Turdville and elsewhere have been predicting some form of currency controls here in the good 'ol USSA at some point, and it looks like it's more likely every day.  What's interesting, is that now the discussion goes from being hypothetical/academic to very real.   Instead of "what if" it happens, it's "what's next" now that it's happened.

Unfortunately, I don't speak/read Italian, but for those who can, it would be interesting to get a front row seat to the Italian blogosphere and see what creative adaptations emerge to dealing with these controls.  Might provide some insights into strategies we could all discuss in one of the forums.  Additionally, it will be interesting to see if the Italian population resists this, and to what degree.  Even more interesting will be the authorities' response.

For me personally, this dramatically increases my sense of urgency to reconsider what I'd do if currency limitations are imposed. 

One thing that began nagging me when I saw "BePrepared's" post above is - WHY?  What's the objective of this policy?  The first thing that came to mind for me is that they are trying to head off a bank run.  My mental picture of a bank run is that when people panic and run on the banks, they aren't going to be looking for a cashier's check or to take their digital bits and bytes home and stuff them under the mattress - they're going to want a wad of fiat to spend on things that protect against a currency collapse.  If you pre-empt the legal uses of a big stack of fiat, people might be less inclined to bum-rush the banks with all the violence that would ensue.  Instead, they are locked into the digital money matrix, where things appear to operate normally - for a while.  Another option, and a potentially related one is the possibility of an overnight devaluation (not so likely for Italy to do it by itself as a member of the EU).  It would be much easier to for the government to devalue all of your digital money in a bank than re-issue a bunch of paper fiat. 

I'll have to give much more thought to the possible reasons for the new rule(s), and the implications, as no epiphany has arrived for me on this one.  Some of you major egg-heads (meant in a good way) out there can probably offer some really compelling thoughts.  I'd be very interested in additional perspectives on the motivation for the cash limits (que bono?), and the implications.

Either way, Orwell would be very proud of "Big Brother"

Be Prepared's picture

Article Translated by Google Magic

COMO - "The fiscovelox of Ponte Chiasso border crossing points and Brogeda reappeared, this confirms that the relationship between Italy and Switzerland, also under the government of Mario Monti, remain problematic." It indicates that in a statement on the League of Ticino, which returns to point the finger at Berne, which would prove not to know "to relate properly with Italian counterparts." The blockade of the border rebates, therefore, must be maintained in 2012.

On the Italian front, the Finance Police confirms that "In our area, we use all the means allowed by Italian law, in compliance with the regulations and without any danger for the breach of privacy." Mark Pelliccia, Colonel in charge of the Provincial Command of GdF Como, notes that all systems of assessment designed to identify possible tax violations, are routinely used, including fiscovelox. In this regard, since it was introduced, never reached guidance or directives to block or restrict their use.

"It was not set up any garrison fixed - adds - not least in areas such as to indicate that attention can be pointed to a particular territory or foreign country, and there were demands for tighter controls in recent weeks." No risk - therefore - a violation of the privacy of a private citizen, or some form of espionage, the Italian side. What matters to the Guardia di Finanza, he insists, is the Italian taxpayer. To prevent the flight of capital abroad, the yellow flames using a range of means known and very flexible: it starts with the control face to face by the financier, also authorized to make investigations into the vehicle. To this we may add inspection antivaluta with the dog, or a control of a patrol retrovalico. Finally, precisely, the monitoring carried out with fiscovelox vans equipped with a mobile system and computerization of data collection, aimed at further development of controls, starting with car number plates. A system, in fact, that it was not, however, never been deleted.

_________________________________________________________________________

​They point blank admit that it is to prevent the flight of capital out of the country of Italy.  I am sure if you look closely... those vans look eerily similar to vans that a certain Janet "The Report on Your Neighbor" Napolitano has ordered up for her new world order guard, the TSA.  

​I hate to be so pessimistic, but we should all be looking for a van coming to a neighborhood near you.

California Lawyer's picture

Cash Controls

Cash controls operate to stifle black market transactions. This is important for austerity measures. If the govt cannot track each transaction, they cannot tax it, and thus, any austerity measures will lose effectiveness.

Also, the govt is likely trying to influence consumer behavior. Here, in California, it is rare for large purchases to occur with cash. Electronic transactions are the norm. So, maybe the Italians are trying to get their consumers to do what we in the USA already do?

Either way, this is an ominously bad development for Italians. This story bears close monitoring.

dnlward's picture

Prepare the masses

http://www.cnbc.com/id/45899109

I expect to see a lot more of these type articles.  It is in everyone's best interest, for as many people as possible, to think about the future.

Shill's picture

I hate to be so pessimistic,

I hate to be so pessimistic, but we should all be looking for a van coming to a neighborhood near you.

The path of the righteous man is beset on all sides by the inequities of the selfish, and the tyranny of evil men. Blessed is he who in the name of charity and good will, shepherds the weak through the valley of darkness, for he is truly his brother's keeper, and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger, those who attempt to poison and destroy my brothers. And you will know my name is the Lord, when I lay my vengeance upon thee..

Time will come when we see who of those among us are men and those among us who are cowards. I stand with my two lovely daughters holding my 2 month old Grandson in my hands all the while focusing my eyes at my lovely wife of 21 years. My world right in front of me 4 individuals that I claim are mine by nature as this is my jungle, and I am the Lion in these walls. Fuck with it, I dare you.

I have seen the use of fear in all that is being done, I spit. 72 years of service in my family protecting these United States that is not something that is going to be Jack booted away very easily, even if it means my demise.

Drifter's picture

Capitol Controls

are already being implemented quietly in the USA

The $600 transaction reporting requirement for businesses that was scrapped was just one.

Paypal & Amazon now have to report anyone with certain levels of sales.

How many recall the OSHA? requirement that ammunition be reclassified as an explosive from 2? years ago? That fell  very quickly but was telling as to intent. Intent to make ammo very expensive & hard to get in its multiple onerous new rules.

Backdoor attempts at capitol controls & other controls by unelected functionaries are ongoing, multitudinous & nefarious in intent.

At this point in time those running this freak show are still afraid of us. Woe unto us all if they lose their fear.   

turdy's picture

It seems that we are lucky to

It seems that we are lucky to get to study the prequel in Europe before we have to deal with it here. I assume that the tactics used in Europe will be the complete set of known tools and techniques. Really a lucky heads up for those of us living in the U.S. and other countries on a time line that lags Europe.

Be Prepared's picture

Italian Government New Rules

Zerohedge is the site that came out with the article and I posted just the relevant portion and linked back to them for the full article. I wasn't satisfied with just getting that information because it's an important topic to all of us as it indicates how things may unfold here in the U.S.  I was able to confirm their article through, of all sites, bloomberg.

  • Deputy Finance Minister, Vittorio Grilli, instituted this new rule on Dec. 4th (about a month ago) restricting the cash limit to 1,000€.
  • Based upon a press conference on Dec. 5th, he lays out that the Italian government will be moving to set this limit, in progressive steps, to 500-euro and 300-euro respectively saying citizens need "time to adapt to new rules."
  • The government is clear that they want their citizens using credit cards so they can track and tax each transaction.
  • The Italian Finance Ministry installed Vans at the border that will assist them in detecting any mass physical exodus of money out of the country into Switzerland.

Some Analysis

The Italian Government is forcing its people, in effect, to register all the generational wealth that each family has within the banking system so that it can be tracked and taxed. The Banking Cartel doesn't want anything outside of their computer system. Let's not forget.... it's never good to waste a crisis. Most Italian's have never had a credit card and, now, the government wants them to do all of their business electronically on just such a card. It's a great way to digitize every citizen in Italy and move them to a purely electronic monetary system. The Subterfuge and Overt Manuevers of Italian Government seem to suit their objectives very well without serving the people's best interest. The only way the Banking Cartel can drain Italy dry is if they can get a fee for every swipe of a card, sound familiar, and then get a second piece of that same transaction through tax.

The installed Technocrat Italian PM will do everything possible to pull every red Euro cent from his people and the only way he can do that is to line them up and force feed them into the Banking Cartel's Electronic Business Model.  I can only hope the Italians are smart enough to continue to use whatever flexibility they have remaining in the system to move their funds to PMs or into a pure cash position out of the country.  If I was an Italian, why would I want to lose my life savings to pay some banker a debt that was created out of thin air and wants an interest payment that is obscene at best.

PM Monti point blank says “What we need is a revolution in Italians’ thinking and that takes time,” Monti told reporters on Dec. 5. “This is meant to be a first step.”  Push the People into insolvent banks so that they can be forced to pay fees on their own money and then pay taxes, which won't benefit their country, but merely pay interest on a debt that should have already had a serious hair-cut to allow Italy to recover economically.  The Italian government needs to value to their people above the banks and above their Euro Master.... and come up with another way for the people to pay their fair share into supporting governmental services... without forcing their people into banks through Capital Controls.

I hope this additional information is helpful.... 

_______________________________________________________________

‘Culture of Cash’

“The culture of cash is strongly ingrained in Italians, even those that don’t evade,” Deputy Finance Minister Vittorio Grilli said at a Dec. 5 press conference in Rome. The government initially wanted to set a 300-euro or 500-euro cash limit but decided against it, Grilli said, reasoning that citizens needed time to adapt to new rules.

Italian banks, which charge businesses up to 2 percent for credit-card transactions, could end up being the main beneficiaries of the new rules, according to Rome-based consumer group Adusbef. “Unless banks cut fees on credit cards and current accounts, they’ll just make more money from the new law,” said Mauro Novelli, the general secretary of the organization, which represents banking and insurance customers.

Consumer advocates say the new law also discriminates against older Italians, many of whom don’t use credit cards. As many as 7.5 million Italians have never had a bank account, according to Adusbef. “The law cannot force old people to use plastic or open bank accounts,” Novelli said.

Bank Fees

The government is negotiating with the banks to get them to cut fees on credit cards and lower costs for bank accounts to encourage the move away from cash, Grilli said Dec. 5.

Banks are willing to consider zero-cost current accounts for low-income retirees and discuss credit-card costs “in light of the government’s new measures,” Giuseppe Mussari, head of Rome-based ABI, said Dec. 11. However, lenders won’t “give away” services that carry a cost for them, he said.

Italy’s tradition of saving won’t be at risk from the new measures, said Nicola Borri, an economics professor at Rome’s LUISS University. “Italians mainly use debit or credit cards with stringent limits,” he said. “Financial instruments that allow you to pile up debt are very limited in this country.”

Politicians have seized on the cash issue as a way to build support among a public reluctant to change. “There’s a real danger of crossing over into a fiscal police state,” former Prime Minister Silvio Berlusconi said at a political convention on Nov. 27 in Verona, about two weeks after the debt crisis toppled his government.<Rest of the Article>

Be Prepared's picture

@Shill - I am with you man.....

The path of the righteous man is beset on all sides by the inequities of the selfish, and the tyranny of evil men. Blessed is he who in the name of charity and good will, shepherds the weak through the valley of darkness, for he is truly his brother's keeper, and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger, those who attempt to poison and destroy my brothers. And you will know my name is the Lord, when I lay my vengeance upon thee..

This is "us".... if they try to break down the door!

ReachWest's picture

Italian Mess

@ BePrepared: Great reporting and analysis. Mega H/T yes

What this says to me is that things are drawing to a head. As BePrepared is right - they want all commerce inside their computer system. The whole economy is one gigantic credit algorithm.

Obtain your Gold and Silver now - because it sure seems like the opportunity to do so without the approval of "the system" is coming to a rapid close in Italy.

What a mess.

kliguy38's picture

Just one lil problem Shill

FIRST you need to know who is at the top of this food chain.....hehehehe....and that AINT gonna happen my friend. You may know a few of the third tier....and a few of the 2nd tier......but VERY few know or have knowingly seen the first tier.......Lindsey Williams dealt ONLY with the third tier....hehehhehe....

zilverreiger's picture

US people have 385B $ tax debt to IRS

haha greece at the atlantic

ClinkinKY's picture

Diamond Prices 'To Jump 20%', Outperform Gold...

...is the headline at Drudge and the following is a short excerpt  from the article:http://minnesota.cbslocal.com/2012/01/05/jeweler-expect-significant-price-increases-for-diamonds/

"Why the price of diamonds could outperform gold — and a fashion trend that could save you money.

Diamonds may be a girl’s best friend, but new price hikes show they could become a man’s worst nightmare."

Well of course it would become a man's worst nightmare. If you throw all your diamonds on the bed and roll around naked in them, you're going to cut the shit out of yourself in places that hurt to even think about. Me, I'll stick to rolling around in my PMswink

Bullets Beans Bullion's picture

Gold Bottom Targets Trend to

Gold Bottom Targets Trend to $4000

 
bullion-bars-gold-bars-300x225.jpg

There has been so much talk about gold and so little understanding of the reality behind the move in the price of the yellow metal over the last 90 plus days that I think it’s necessary to separate the wheat from the chaff. I want to discuss what gold has done, where it’s at now, and then end with where it’s going from here and postulate why it’s going to do what it will do.

Right now you need to understand that gold is beginning the twelfth year of major bull market; perhaps the most unprecedented bull market in our lifetime.

Excalibur's picture

Italy

The gangster mafia want everything in cash, the bankster mafia want it all in the bank.  Should be good for gold - and diamonds too. The hard assets of concentrated wealth are always where the money goes.

RaRaRasputin's picture

For those who are interested

Casey Research interviewed Neil Howe co-author of the Fourth Turning in 2009 and this is the report that came from the interview:

http://www.caseyresearch.com/pdfs/1255444078-0909TheFourthTurning.pdf

RaRa

MainMan's picture

Super Credit Card

If some countries are being directed to common systems of credit and debit, would it not be easy for the 'powers that be' to bring in identity cards that 'control' every aspect our lives.   The SUPER CARD could indicate our worth, finance, occupation, permissions, limitations, location etc. etc.   I am sure there must be movies or people that will have seen or read about such a control feature.  

On a practical side...how would one pay or obtain 'credits' without the state knowing the source of that credit or money or PM in some cases.  The government/banks already parcel out food stamps, rent money, health cards etc etc

I can see a future situation where life will depend on having a kind of  SUPER CARD and it would be difficult (for most, nearly all) sheeple to live a 'normal' existence.  To me, it looks like the banking/government is evolving into a combined..I don't know what to call it...force that controls everything: money,  food, travel etc.

In the Italian question now,  how would a person pay the debit with PM?   And if he/she did,  the 'powers' would want to know about and tax that PM for sure?

 Just my humble opinions and questions.

Smiddywesson's picture

The snake in Eden

Falling prices is the normal state of an economy. Gold supply grows at only about 1.5% / year. So in a normal economy, prices fall as technological gains improve productivity, allowing the amount of goods to increase faster than the money supply. To simplify, with a little more gold chasing an even greater amount of goods, prices fall.

TheSilverJournal.com

And if you follow that thought to its logical conclusion, life would become a Garden of Eden through sound money because improvements in productivity would make goods ever easier to obtain with less effort.  

We can't have that, so the primary job of central bankers is to keep prices high through the erosion of our money so that we continue to serve as debt slaves.  They are truly the snakes in Eden.

Orange's picture

Italian Tax

When governments constantly find new ways to tax people to an extreme, the people move from being honest to generally accepting that it is right to avoid taxes. Lower the taxes to reasonable levels and people will pay.

Italian tax authorities to raid summer resorts in crackdown

http://www.telegraph.co.uk/finance/financialcrisis/8998470/Italian-tax-authorities-to-raid-summer-resorts-in-crackdown.html

Smiddywesson's picture

Italy

They are buying time by heading off a bank run in Italy.  What happens next?

When Money Dies, by Niel Furgusen, detailed how the capital controls in Wiemar Germany drove everybody into stocks.  They wouldn't let people trade into other currencies.  I would expect the same to happen in Italy.  People want a way to protect their wealth, and if they can't get it to put under a mattress, or convert it into some other form of a currency, they will drive it into the equity markets.  For anyone willing to ride that wave, I recommend caution.  Italy is just stalling.  There's going to be a global devaluation, and I believe stocks are going to get ruthlessly hit by insiders in the know looking to pick up bargains just before that devaluation happens, because if you cut the value of your currency in half, stocks have to double in price to tread water.

With the exception of measures intended to prevent bank runs, you are unlikely to see the same sort of currency controls here because when the USD fails, it's all over.  There won't be any other fiat currencies to flee to.  This net is going to be thrown over the whole globe, and the only way to squeeze through it is PMs.

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