Low E

347
Fri, Jan 4, 2013 - 11:42am

As a middle-aged American male, I'm told by my television that I should be concerned about "Low T"...Big Pharma slang for low testosterone. So far, so good on that one (as MrsF will attest ). A much bigger problem right now is "Low E"...Turd slang for low enthusiasm.

Maybe tomorrow I'll write a post that discusses the MOPE and crap of yesterday. That The Fed can/will end QE as soon as later this year is so nonsensical that it doesn't deserve logical refutation.

Maybe tomorrow I'll write a post that discusses the latest BLSBS, replete with buried statistics and mentions of participation rates and seasonal adjustments.

Maybe tomorrow I'll write a post that includes a bunch of charts with lines drawn all over them, showing where price might stop and reverse.

For now, I only want to write about the one thing that bothered me the entire time I was on vacation...the CFTC.

You see, here's the problem: I'd like to have hope. I see things. I talk to people. I read a lot. And I think. All of this leads me to the conclusions I espouse here. Namely, that the end of The Great Keynesian Experiment is upon us and we all need to prepare accordingly. The politicians are all corrupt. The U.S., and the world for that matter, is ruled in favor of the very few, particularly the international bankers. The global economic system is about to collapse and morph into something completely different from what we've all known our entire lifetimes.

But, I'd like to have hope. Hope that I'm wrong. Hope that I simply have an overactive imagination. Hope that I am just channeling Russell Crowe playing John Nash, seeing clearly nothing but make-believe conspiracies and foolishly connecting the dots.

But the problem is...the CFTC. There the illusion and hope unravels.

You'll surely ask me how I know and I'll say "I don't". So, don't bother. I have no proof. Only faith and trust which could also be misplaced. But I am entirely confident that the CFTC has been given, all wrapped up in a neat little package, everything they need to prove, beyond a shadow of a doubt, that the metals markets are wholly and entirely manipulated for the gain of a few bullion banks. Instead of acting promptly, to restore order and confidence in "free and fair markets", they dawdle. They stall. They issue no statements. They conclude no investigations. And, most importantly, they allow the crime to continue as if nothing has changed. Only now they are accomplices, to the point of being co-conspirators.

And this is the problem. Hope is gone. Not that the CFTC was some hoped-for, last bastion of integrity. That's not it at all. They are, instead, the proverbial "straw that broke my back". Because now that I know that the CFTC is negligent and corrupt and only serving to protect and defend their TBTF overlords, my hope is gone. And, again, I'm not talking about hope for a resolution to the metals manipulation, I'm talking about hope that the entire western political and economic system really isn't as corrupt and narcissistic as it seems. For it's impossible not to reach the following conclusion:

  1. The CFTC is protecting a major TBTF, Fed primary dealer by refusing to acknowledge the manipulation.
  2. If this one, government bureaucracy is in the back-pocket of the banks, all of the rest likely are, too.
  3. And if all of the agencies are in the back-pocket of the banks, then the politicians are, too, because most of the bureaucrats are political appointees.
  4. And if all of the politicians are in the the back-pocket of the banks, then the entire political system is a sham. There are no elections. It's all just an illusion designed to mollify the masses.
  5. And if that's the case, what kind of world do we really live in?

So, you can see my problem here. I suffer from "Low E". Why bother to write about all of the day-to-day stuff? Why mark up all my silly charts? Once hope is gone, soldiering on can get pretty challenging. Perhaps I can draw renewed inspiration from the idea of "awakening the masses". Logic suggests that only by operating within the matrix can you reach those still contained therein. But I don't know. I really don't. Inevitably, the first question is: Why try at all?

Let me work on that for a while and I'll get back to you soon. Maybe tomorrow.

TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  347 Comments

thisismynewname
Jan 4, 2013 - 5:57pm

Still fuming here

Do you think the MOPE on CNBC is targeting those with Phys in hopes of making them sell this weekend, just before the big ramp up? I think I'm predicting a 20% move up next week based on the severe MOPE on CNBC after the market close today.

I did buy some lottery tickets yesterday that are only a penny off where I bought them. Maybe it's just wishful thinking on my part.

Bugzy
Jan 4, 2013 - 6:00pm

Responsibility

I am truly amazed!

That anyone would put their hard earned savings down on the grounds of Turd enthusiasm.

What really amazes me is how these imbeciles managed to accrue any savings in the first place.

I am all in. Turd had/has/will not have anything to do with my "response able" choice. To blame a single entity for a financial decision suggests pathetic laziness and lack of respect for self.

Perhaps you belong in a more collective environment. Please leave this space for free thinking, independent minded folk. I mean it, you are probably in the wrong place. Please take care.

Bugzy.

Patrancus
Jan 4, 2013 - 6:02pm

Heard something today that the Tax cheating elite

are now busy crafting a plan for the Trillion dollar Platinum ponzi scheme? these people who have controlled the world since the Roman empire are truly mad with insanity.

Hey Malcome Jr how about a 1 trillion dollar silver coin.

https://www.huffingtonpost.com/2013/01/04/trillion-dollar-coin-petition_...

https://pragcap.com/lets-end-this-debt-ceiling-debate-with-a-1-oz-1t-coin

SIlverbee
Jan 4, 2013 - 6:04pm

Zerohedge down

Seems like DOS.

gdog
Jan 4, 2013 - 6:05pm

Turd, I've come to the same conclusion.

I had exactly the same realization. I'm not bummed about it though, it's just more if the same BS in my opinion. The CFTC just confirms what we already know in our hearts but prayed was not really true. Remember when you found out about Santa, the Tooth Fairy, the Easter Bunny? I was tough but we got through it, this too shall pass. The game the EE's playing, manipulation on every level is becoming increasingly more apparent to the populace. It's a double edged sword though that solves a short term problem but has longer term consequences. Karma has a way my friends and I'm certain that the A-holes who are knowingly and willfully engaging in evil activities will reap what they've sewn. They'll get theirs in the end with or with out law enforcement's help.

Regarding Silver, I'm not touching it until I see it bottom or see a move that confirms a break in the current trend e.g. the regression trend (red and blue lines). Two points I'm watching very as potential bottoms are $28.25 & $26.25. We'll see how long it takes to hit those levels or if they actually do. You can bet I've got some fiat at the ready when they do to add to my stack. Granted I'm a novice trader so my view might be worth squadoosh. Just so you know. ;) After Silver bottoms I expect the next bull run. The archs don't offer any resistance so I think the next bull run will be a doosy. I've taken the liberty to share my saucer drawing which is a bit different than most I've seen. It's how I'm viewing silver right now until the next manipulation trend emerges. It may be a good laugh for experienced traders, so hope you enjoy it.

Given the apparent manipulation I no longer leave my money in the market over night. Additionally I'm unwinding my paper portfolio on a consistent basis and adding to my real money bank account with "First Boating Accident Bank" (not a member of the FDIC). This will continue until my confidence in the markets is restored. And if not, at least I'll have something tangible to show and I'll be able to focus on other endeavors.

If you're trading, be careful. I have a sick feeling that a flash crash taking down the entire paper market could happen at any moment. I watch every tick when my fiat is in play. I even take my laptop when I get coffee. Just sayin...

Be well Turdites!

S Roche
Jan 4, 2013 - 6:07pm

Meanwhile, in Japan

Shinzo Abe is determined to devalue the Yen and create inflation in Japan, the target is 2%. Kyle Bass reckons he will blow the place up in the process. Anyhoo, The Japan Post Bank (in 2011 the largest personal savings holder in the world) has started selling a gold related product https://www.yomiuri.co.jp/dy/business/T130104003115.htm ... Maybe some of them will dig a little deeper and buy physical. Can't hurt.

surfeitndearth
Jan 4, 2013 - 6:07pm

Turd

First, a big heart felt Thank You.

The presence of Belonging... engenders Meaning – which begets Hope.

You have provided a wonderful venue, in which those 'elements' materialize and provide much doubt-slaying comfort to some of us red pill-ers. And for that I and many Turdites are grateful, as is evidenced by the many supportive comments above.

As I've mentioned before, "Go with those who will go with you."

You have your family and friends. You have us, the hive-mind. After a period of detachment and reflection, perhaps you'll enlist your Mastermind – NN-L, Santa et al. to help you to clarify where your heart really wants to go with all this. Then, I hope – Go, we Will!

"During times of universal deceit, telling the truth becomes a revolutionary act." - George Orwell

In the meantime, be well.


Jan 4, 2013 - 6:12pm

How About This Soon to Be Ass Whipping

One does not mislead a federal judge. If one does, and gets caught, it is quite bad. Rule 11 of the Federal Rules of Civil Procedure is well known to every single lawyer. Look at what happened here, when the big bank's hired-gun, best-of-the-best lawyers mislead a federal judge, about a controlling case that absolutely eviscerated the ENTIRETY of the defense arguments.

This quote is from the above case, in which a homeowner is suing the bank for lying about a loan mod and the bank is trying to throw out the lawsuit. Only problem, is that the bank's argument was specifically rejected ENTIRELY by a CONTROLLING case right on point, of which the lawyers CERTAINLY were aware, and yet, the bank's lawyers advanced the same losing argument ANYWAY and failed to bring that controlling case to the Court's attention.

UNITED STATES DISTRICT COURT, FOR THE NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION CHARLES THUL, CYNTHIA THUL vs. ONEWEST BANK, FBS, d/b/a INDYMAC MORTGAGE SERVICES, Case No. 12 C 6380. Judge MATTHEW F. KENNELLY https://en.wikipedia.org/wiki/Matthew_F._Kennelly
(January 2, 2013)
“For the reasons stated above, the Court denies defendant’s motion to dismiss [docket no. 29]. The Court also directs each of the attorneys who submitted the motion to dismiss and supporting briefs, John Beisner, Jessica Miller, and Andrew Fuchs of the law firm of Skadden, Arps, Slate, Meagher & Flom, LLP, to show cause in writing, by no later than January 10, 2013, why they should not be sanctioned in one or more of the following ways: (a) payment of plaintiffs’ reasonable attorney’s fees and expenses caused by advancing arguments contrary to the Seventh Circuit’s Wigod decision without bringing that case to the Court’s attention; (b) revocation of the pro hac vice status of Mr. Beisner and Ms. Miller; (c) a written and/or oral reprimand; (d) any other sanction that may be appropriate. The ruling date of January 3, 2013 is vacated. The case is set for a status hearing in open court on January 17, 2013 at 9:30 a.m. Mr. Beisner, Ms. Miller, and Mr. Fuchs are all directed to appear in person.”
This is a BIG deal for those dumbass lawyers. I LOATHE scumbag lawyers who do that. Especially the blue blood, big firm lawyers with Ivy League pedigrees. Eventually, scumbags get their comeuppance. This case is especially timely, because it shows that eventually, the truth will come out. So, Turd, hang in there my friend.
tpbeta
Jan 4, 2013 - 6:24pm

Chin up, Turd

I hope you don't stop. I also hope you examine why your predictions have been less good of late, and see how you can improve them. That's not a criticism. It's what all of us should do all the time.


Jan 4, 2013 - 6:32pm

Turd of Turds

I am sorry to hear that Lack of E has you in its grip, but cannot fault you for it, 'tis often the same with me.

But please, do not doubt your impact, relevance and accomplishment in your work here over the last two years. Speaking only for myself, I have been helped tremendously by your words, and by the community you created, nurtured and continue to support. As mentioned above, and as Orwell said -- telling the truth in a time of universal deceit is a revolutionary act. This site, and places like ZH and a handful of others remind me of Samizdat -- dissenting thinkers in the USSR/Eastern Block who wrote anti-gov essays that were then hand-typed, mimeographed or stenciled in secret, after work/at night by friends and supporters. Besides keeping a glimmer of hope alive in the segment of the populace that chose to think, it also became a conduit/foundation for political opposition and rebulding of institutions, when the conditions made it possible. Did they CAUSE the erstwhile fearsome Communist regimes to collapse? OF course not. But they sure helped, if only in projecting a possible alternative.

______________________________________________________________________

Some random bullish observations:

- Silver is trading sideways, after a spike and a dive at the same fiatsco price that it was at... 2 WHOLE weeks ago.

- Trolls and 'despondent PM holders' are out in numbers, along with plenty of more measured, but bearish sentiment on metals.

- "When it becomes serious, you have to lie," Juncker reportedly said during a meeting in Brussels just before Easter [2011]

Well, given the circumstances, I'd say that today has been a pretty good indication that things ARE indeed serious. A smokescreen THIS big, this comprehensive is trying hard to cover something all too large.

It's all in our best interests, how else would it be:

"If you are pre-indicating possible decisions, you are fuelling speculation on the financial markets, throwing into misery mainly ordinary people whom we are trying to safeguard from this." - also from Jean-Claude Juncker, above

The lying is a necessary, essential part of the process. And it needs, by definition, to continue to escalate. [recycled post]

- For a full-on, longer response to MOPE that we should all be feeling, check out this one.

"Don't buy. Sell. Get out of PMs. We are all fools for listening to charlatans who are misguided/deluded at best, and probably trying to rip us off. The fiat system will survive, as it always has throughout history. Paper money in hand is a great rainy-day option, but we really all should be rushing to the ironclad safety of bank deposit and that old ultimate safe investment - Treasury bonds. There is no manipulation of the metals, let alone the global financial markets. Even if there were such a thing, those behind it are surely too powerful to stand against -- hang your head, stay on your knees and pray for mercy. The global economy will work its way through this rough patch, like it always has. There are no constraints of resources, capital, capable workforce or anything else standing in the way -- prosperity will soon be here again. We simply have not given central banks and our outstanding civil servants in government leadership -- not to mention the stalwart pillars of finance and industry -- enough time. We've been faithless, nay, downright antagonistic toward our benefactors and rightful guardians."

- Pining has joined the fray and exposed us to more of his brilliant artwork (though he refuses to call it that). For a retrospective on a few of his earlier gems, look here for a sample (there are many more hidden like Easter eggs throughout the site)

In short, all of this has the potential for an epic 'Turd's Third Bottom". Thank you for all you do. A very happy, peaceful and successful New Year to you and your family.

daveyboy
Jan 4, 2013 - 6:51pm

Hey all, does anyone have the

Hey all, does anyone have the latest silver figures for 2012 or perhaps they have not been created yet? I am probably not being realistic with timing there of course.

ag1969
Jan 4, 2013 - 6:55pm

Jan 4, 2013 - 6:57pm

California Turdites: Note these New Foreclosure Laws

Excellent summary, from the California Dept of Corporations, Press Release of December 31, 2012, here. Tell a friend.

On July 11, 2012, Governor Edmund G. Brown Jr. signed into law foreclosure reform legislation known as the California Foreclosure Reduction Act (“Foreclosure Reduction Act,” AB 268 (Ch. 86, Stats. 2012) and SB 900 (Ch. 87, Stats. 2012)). The Foreclosure Reduction Act reforms California’s non-judicial foreclosure process so that borrowers have greater protection from wrongful foreclosures, and a meaningful opportunity to be considered for, and obtain, a loan modification or other alternative to foreclosure. Residential lenders and servicers licensed and regulated by the Department of Corporations under the California Residential Mortgage Lending Act (“CRMLA”) and the California Finance Lenders Law (“CFLL”), will be impacted by the new law. The Foreclosure Reduction Act will be effective January 1, 2013. However, many provisions in the Foreclosure Reduction Act will sunset in five years, while other provisions will become operative in five years, on January 1, 2018. Additionally, many provisions only apply to mortgage servicers that have foreclosed on more than 175 homes during the preceding year. Most provisions apply solely to first lien mortgages or deeds of trust secured by owner-occupied property. This Release provides a summary of key provisions in the Foreclosure Reduction Act that apply to mortgage servicers above and below the 175 threshold. This Release also summarizes key provisions that will become operative on January 1, 2018, which will apply to all mortgage servicers, regardless of foreclosure volume. Additionally, this Release provides a summary of the key elements of other foreclosure laws enacted in 2012. CRMLA and CFLL licensees will be responsible for maintaining evidence of compliance with all of the new requirements. Such evidence includes, but not be limited to, phone conversation logs, copies of correspondence, notices, declarations, and operations manuals that establish a mortgage servicer’s policies and procedures. A licensee’s books and records should establish that required correspondence and notices occur within the time periods set forth in the law.

There is a distinction between services who do more than 175 foreclosures per year. The laws are different in some ways, like the appeal process for a denial of a loan mod.

The beauty of this scheme, is that per Civil Code §2924.19, "A borrower may be awarded reasonable attorney’s fees and costs."

You know what that means? That's right.

There is going to be a whole new area of law, where lawyers sue the absolute shi- out of banks that foreclose, for violating these new laws, AND, the banks get to pay for all the lawyers' fees. Hooray!!!! Double win here. Consumers who got screwed by banks, typically during "dual tracking," whereby a home borrower worked to do all the stuff to get a loan mod, then was promised that no foreclosure would take place, but--oops--sorry, foreclosure anyway, can now lawyer up and get serious money for the banks' illegal conduct. AND, the lawyers now have an incentive to go after the banks, because upon a victory, the bank pays the consumer, AND pays the lawyers' HUGE fees.

Damn I like this already.

Hey JPM, BOA, Wells Fargo, DB, happy new year! I am going to sue the shi- out of you!! Hooray!!

Here is the section that gets me excited:

Damages (Civil Code §2924.19) Prior to a trustee’s sale, a borrower may bring an injunctive action against a mortgage servicer for a material violation of Civil Code Sections 2923.5 (borrower outreach and declaration of contact or due diligence), 2924.17 (review of foreclosure documents), or 2924.18 (dual track prohibition). After a trustee’s deed upon sale has been recorded, a mortgage servicer may be liable to a borrower for actual damages for material violation of the above-mentioned Civil Code sections. Furthermore, a mortgage servicer may be liable for the greater of treble damages or $50,000 if the material violation was intentional, reckless or resulted in willful misconduct.
Colonel Angus
Jan 4, 2013 - 7:02pm

OK, just occurred to me...

.....our little friend TIMMAY is about to leave office. If we catch him, is he forced to give us his pot of gold?

(My guess is this guy is such an idiot that he would have a pot of FRNs rather than the gold.)

babaganoush2307
Jan 4, 2013 - 7:03pm

Extremely interesting stuff that...

...I accidently posted up on the last thread. Has anyone ever heard of this? Such a fascinating idea! I have read multiple articles on this already, the biggest opposition that I see is the people saying that it is still a paper currency. But what if you had this paper currency backed by gold or silver? Not only would everything improve (from the logical sound of it) but the government would constantly be getting their share of the tax. I gotta think about and research this one some more as it greatly intrigues me on how it worked out so well! Possible solution? Hard to imagine in reality but still a possibility in the cards! Please read, enjoy and share your comments!

The Wörgl Experiment: Austria (1932-1933)

Submitted by blietaer on March 27, 2010 – 7:34 am

In 1932, in the midst of the Great Depression, the small town of Wörgl in Austria successfully experimented with its own local currency (in the form of a stamp scrip). Based on the thinking of Silvio Gesell, an early 20th-century economist, and designed to stimulate the local economy, the new currency helped put the population back to work, and inspired many other communities to want to follow its example, until the experiment was abruptly terminated by Austria’s Central Bank in 1933. The following is the story of the “miracle of Wörgl” as told in The Future of Money (pp. 153-155).

——————————————————————————————————————-

One of the best-known applications of the stamp scrip idea was applied in the small town of Wörgl in Austria in 1932 and 1933. When Michael Unterguggenberger (1884-1936) was elected mayor of Wörgl, the city had 500 jobless people and another 1,000 in the immediate vicinity. Furthermore, 200 families were absolutely penniless. The mayor-with-the-long-name (as Professor Irving Fisher from Yale would call him) was familiar with SilvioGesell‘s work and decided to put it to the test.

Michael Unterguggenberge

He had a long list of projects he wanted to accomplish (re-paving the streets, making the water distribution system available for the entire town, planting trees along the streets and other needed repairs.) Many people were willing and able to do all of those things, but he had only 40,000 Austrian schillings in the bank, a pittance compared to what needed to be done.

Instead of spending the 40,000 schillings on starting the first of his long list of projects, he decided to put the money on deposit with a local savings bank as a guarantee for issuing Wörgl’s own 40,000 schilling’s worth of stamp scrip. He then used the stamp scrip to pay for his first project. Because a stamp needed to be applied each month (at 1% of face value), everybody who was paid with the stamp scrip made sure he or she was spending it quickly, automatically providing work for others. When peoople had run out of ideas of what to spend their stamp scrip on, they even decided to pay their taxes, early.

Wörgl was the first town in Austria which effectively managed to redress the extreme levels of unemployment. They not only re-paved the streets and rebuilt the water system and all of the other projects on Mayor Unterguggenberger’s long list, they even built new houses, a ski jump and a bridge with a plaque proudly reminding us that ‘This bridge was built with our own Free Money’ (see photographs). Six villages in the neighborhood copied the system, one of which built the municipal swimming pool with the proceeds. Even the French Prime Minister, Édouard Dalladier, made a special visit to see first hand the “miracle of Wörgl.”

It is essential to understand that the majority of this additional employment was not due directly to the mayor’s projects as would be the case, for example, in Roosevelt’s contract work programmes described below. The bulk of the work was provided by the circulation of the stamp scrip after the first people contracted by the mayor spent it. In fact, every one of the schillings in stamp scrip created between 12 and 14 times more employment than the normal schillings circulating in parallel. The anti-hoarding device proved extremely effective as a spontaneous work-generating device.

Wörgl’s demonstration was so successful that it was replicated, first in the neighboring city of Kirchbichl in January of 1933. In June of that year, Unterguggenberger addressed a meeting with representatives of 170 other towns and villages. Soon afterwards 200 townships in Austria wanted to copy it. It was at that point that the central bank panicked and decided to assert its monopoly rights. The people sued the central bank, but lost the case in November 1933. The case went to the Austrian Supreme Court, but was lost again. After that it became a criminal offence in Austria to issue “emergency currency.”

… does it sound familiar? Only a central authority saviour can help people who are not allowed to help themselves locally. Ans as all economists will point out, when there is enough demand, supply always manifests in some way. Even if you have to import it. During the Anschluss of 1938, a large percentage of the population of Austria welcomed Adolf Hitler as their economic and political saviour. The rest is well known history.

https://www.lietaer.com/2010/03/the-worgl-experiment/


Jan 4, 2013 - 7:06pm

Colonel

Obviously I am not getting much done today, spent it all here on tfmr . . .

Anyhow, I heard Beavis is leaving office. Is there anything official?

Secondly, as part of a hypothetical discussion only, what would happen if regular folks became outraged enough, such that some random citizen, just happened to travel to Timmy's house, and kill him? Would TPTB enact martial law, over seeing one of their own get killed? Or would it be hushed up? Or, would it be covered up?

Same kind of thought experiment for Bernanke, and any number of the other banksters.

Since it is a cabal, would they know the killing was from outside, or would they start cannibalizing their own and look to consolidate power?

Any thoughts?

babaganoush2307
Jan 4, 2013 - 7:12pm

More on my current topic obsession, very interesting points

Worgl Experiment with Local Currencies

The Wörgl experiment that was conducted from July 1932 to November 1933 is a classic example of the potential efficacy of local currencies. Wörgl is a small town in Austria with 4000 inhabitants that introduced a local script during the Great Depression. By 1932 unemployment in Wörgl had risen to 30%. The local government had amassed debts of 1.3 million Austrian Shillings against cash reserves of 40,000 AS. Local construction and civic maintenance had come to a standstill. On the initiative of the town's mayor, Michael Unterguggenberger, the local government printed 32,000 in labor certificates which carried a negative 1% monthly interest rate and could be converted into schillings at 98% of face value. An equivalent amount in schillings was deposited in the local bank as cover for the certificates in case of mass redemption and earned interest for the government. The certificates circulated so rapidly, that only 12,000 were ever actually put into circulation. According to reports by the mayor and economists of the day who studied the experiment, the script was readily accepted by local merchants and the local population. It utilized the script to carry out 100,000 AS in public works projects involving construction and repair of roads, bridges, tanks, drainage systems, factories and buildings. The script was also accepted as legal tender for payment of local taxes. In the one year that the currency was in circulation, it circulated 13 times faster than the official shilling and served as a catalyst to the local economy. The heavy arrears in local tax collection declined dramatically. Local government revenue rose from 2,400 AS in 1931 to 20,400 in 1932. Unemployment was eliminated, while it remained very high throughout the rest of the country. No increase in prices was observed. Based on the dramatic success of the Wörgl experiment, several other communities introduced similar scripts.

In spite of the tangible benefits of the program, it met with stiff opposition from the regional socialist party and from the Austrian central bank, which opposed the local currency as an infringement on its powers over the currency. As a result the program was suspended, unemployment rose and the local economy soon degenerated to the level of other communities in the country.

Characteristics & Benefits

The Wörgl experiment dramatically illustrates some of the common characteristics and major benefits of local currencies.

  1. Local currencies tend to circulate much more rapidly than national currencies. The same amount of currency in circulation is employed more times and results in far greater overall economic activity. It produces greater benefit per unit. The higher velocity of money is a result of the negative interest rate which encourages people to spend the money more quickly.
  2. Local currencies enable the community to more fully utilize its existing productive resources, especially unemployed labor, which has a catalystic effect on the rest of the local economy. They are based on the premise that the community is not fully utilizing its productive capacities, because of a lack of local purchasing power. The alternative currency is utilized to increase demand, resulting in a greater exploitation of productive resources. So long as the local economy is functioning at less than full capacity, the introduction of local currency need not be inflationary, even when it results in a significant increase in total money supply and total economic activity.
  3. Since local currencies are only accepted within the community, their usage encourages the purchase of locally-produced and locally-available goods and services. Thus, for any given level of economic activity, more of the benefit accrues to the local community and less drains out to other parts of the country or the world. For instance, construction work undertaken with local currencies employs local labor and utilizes as far as possible local materials. The enhanced local effect becomes an incentive for the local population to accept and utilize the scripts.
  4. Some forms of complementary currency can promote fuller utilization of resources over a much wider geographic area and help abridge the barriers imposed by distance. The Fureai kippu system in Japan issues credits in exchange for assistance to senior citizens. Family members living far from their parents can earn credits by offering assistance to the elderly in their local community. The credits can then be transferred to their parents and redeemed by them for local assistance. Airline frequent flyer miles are a form of complementary currency that promotes customer-loyalty in exchange for free travel. The airlines offer most of the coupons for seats on less heavily sold flights where some seats normally go empty, thus providing a benefit to customers at relatively low cost to the airline.
  5. While most of these currencies are restricted to a small geographic area or a country, through the Internet electronic forms of complementary currency can be used to stimulate transactions on a global basis. In China, Tencent's Q-coins are a virtual form of currency that has gained wide circulation. Q-coins can be purchased for Renimbi and used to purchase virtual products and services such as ringtones and on-line video game time. They are also obtainable through on-line exchange for goods and services at about twice the Renimbi price, by which additional 'money' is being directly created. Though virtual currencies are not 'local' in the tradition sense, they do cater to the specific needs of a particular community, a virtual community. Once in circulation, they add to the total effective purchasing power of the on-line population as in the case of local currencies.

Society utilizes only a small portion of its resources and opportunities. Almost everyone has underutilized knowledge, skills and time that can be engaged productively. Most manufacturers and services have underutilized machinery or capacity. Complementary currencies are a creative means to enhance this untapped social potential.

Modern local currencies

Today there are over 2500 different local currency systems operating in countries throughout the world. One of the most prominent is LETS, Local Exchange Trading System, a trading network supported by its own internal currency. Originally started in Vancouver, Canada, there are presently more than 30 LETS systems operating in Canada and over 400 in the United Kingdom. Australia, France, New Zealand and Switzerland have similar systems. Time dollars, Ithaca hours and PEN exchange are among the most successful systems in the USA.

pourty
Jan 4, 2013 - 7:17pm

Take heart, Turd

You were instrumental in pushing the red pill on me, as we're several others.

And the sheep are cracking. My dad actually admitted to me on the phone the other day that he doesn't trust the media and no longer thinks the prez is a US citizen. Doesn't sound like much, I know, but this s a huge leap for a guy who watches CNN nearly 24/7. He seems to be coming around, it's only taken me 2 years to get him this far.

Patrancus
Jan 4, 2013 - 7:18pm

Revelation's post revealing

Probably a good idea to to run silent and deep, keep making the best unassuming life that you can manage, complete you and yours' preparations for financial cataclysm which is nearly upon the world. I pray for Peace among God's people and continue to hope for the Creators redemption of as many of his creation that can be counted to the mansion world.

rolexw
Jan 4, 2013 - 7:22pm

its a hammer! :)

Ha ha! I can picture it all now. Jamie gets up out of bed at 6 this morning and checks the charts. He's sayin' to himself', "Ahhhh . . .silver in the low 29s and plunging hard, its gunna be a GREAT day and an even better weekend!". Fixes a nice breakfast and a warm cup of cocoa, it was all the way down to 22 this morning. Takes the long scenic route into work while planning what to do tonite to celebrate. Then . . . it all falls apart. Upon arrival at the office his secretary rushes over with this desperate panicky look and tells him that he'd better go check the TFMetalsReport ASAP. OMG Noooooooooooooooo! Turd is quitting and a full 50% of the turdites are selling their stacks for scrap at whatever the market will pay. Oh No! after dumping his hot coffee into the keyboard is a mad panic, hes running half-whacked out-of-his-mind down to the trading floor yelling "COVER COVER COVER" before its too late. (Think of this scene from "Trading Places" : https://www.youtube.com/watch?v=S8H2FIf1oH4 )

The result is a monster hammer on the daily chart. Manipulations be damned, y'all gotta say that this formation almost ALWAYS marks the end of a big PM downtrend! GLTA.

Patrancus
Jan 4, 2013 - 7:25pm

State Bank

Mother Jones published an artical in regard the ND State Bank, marvolous stuff.

https://www.motherjones.com/mojo/2009/03/how-nation’s-only-state-owned-bank-became-envy-wall-street

Colonel Angus
Jan 4, 2013 - 7:28pm

So if someone took out Timmay or the Bernank...

...I would think that Feinstein would try to outlaw guns, even if these two were poisoned or stabbed or whatever. I don't advise that people be violent, and I barely condone it, but I would understand if people got fed up and tried to take them out.

I think we'd see some form of martial law. There would be concern for Obama and Pelosi, even for Boehner. And they would come and ask us nicely for our guns and ammo. We would all have to inform them of the gun-eating (and PM-eating) lakes and rivers around us.

Please don't kill Timmay. It would make things worse for the rest of us for a while. In the long run, they would just put a philosophical clone in his place. We wouldn't see Jim Grant in the position for sure.

Green Lantern
Jan 4, 2013 - 7:32pm

@CL

You are one of my favorite posters.

I have a very active imagination and have plenty of scenarios' that would easily be made into a

blockbuster movie. However, I do not think it's productive to play out hypothetical

assassinations in a public space.

Different subject: Recently this space has become a space filled with alot of anger, fear,

and despondency. And that's fine in some ways because it keeps

things real. However, psychological prepping should be your first priority. A clear mind

and contentment should be your first priority in any situation. If you forget the blessing

which is life itself , then you can never hope to have freedom.

Might be a good time to read some biographies of freedom fighters Ghandi, Martin Luther

King etc... The doctor in WW2 (forgot his name) whose entire family was killed but decided

he would not live the rest of his life with hatred.

The entire point of the Matrix movies is that you rise above the Matrix, see it for what it is,

and gain enlightenment despite the control mechanisms which never disappear.

" Do Not Try To Bend the Spoon. That's impossible. Only try to realize the truth that there is

No Spoon Then you'll see that it is not the spoon that bends. It is only yourself. "

there is no spoon original english
Patrancus
Jan 4, 2013 - 7:34pm

Civilized Nation

Lone Watie

What else is there to know.

Kryptonite for Bankers
Jan 4, 2013 - 7:46pm

The Wörgl Experiment: Austria (1932-1933)

This is a terrible idea. Like a savings account with negative interest rates. If you don't spend fast enough, your money disappears. Are you some kind of closet statist? Why on earth would you advocate for theft? What if honest working people want to (gasp!) SAVE their hard earned money? People are constantly trying to reinvent the wheel, usually in order to swindle others. Why not use Gold and Silver, measured in weight not currency, to transact and save? Why do we need personal credit? Why do we need any leverage in the system? Why not bypass banks altogether and use self liquidating real bills for commercial credit? Cui Bono?

Bugzy
Jan 4, 2013 - 7:49pm

Lantern

Are you referring to Victor Frankle? WW11

Keep shaking my head at a previous comment about Turd losing folk money. One only has to ask two questions.

1) How long has Turd been an investor?

2) Does he posses incredible financial wealth?

He is a likeable fellow, he has facilitated an incredible community here, he constantly defers to the expert for trading, he plays with technical analysis in the hope of predicting moves.

How can any rational being blame this man for their own choices?

Bugzy.

Colonel Angus
Jan 4, 2013 - 7:53pm

Worgl and red money

Seems like there could be some kind of a link there...

wonderer Chevy Thunder
Jan 4, 2013 - 7:54pm

to Chevy Thunder

It is astounding that you presume those of us enjoying this forum are "mind-numbed robots" following TFMR like lemmings.

What an insult to our collective intelligence, and what hubris you have in your assumptions about us all.

Take me, for instance. I am an old woman, doing my best to get along on a minimum income. I do not play the markets, mostly because I have enough old-fashioned horse sense not to play in a rigged game.

TF doesn't give financial advice, but does offer his take on the shenanigans of the day - and lots of us love this, but we do not, as you so idiotically assume, base our investment decisions on anything he says.

We read everyone's analysis, all over the web, but we don't follow "gurus", as you seem to assume.

We listen to opinions, evaluate these based on our own understanding of what is going on in the market these days, and think long and hard about the history we have lived through or studied.

Chevy Thunder, in your pathetic effort to insult, deride, and undermine Turd, you have failed. All you managed to do is to insult our intelligence, wisdom, and understanding.

Your assumptions are making an ass out of you, in my 70 year old humble opinion.

ag1969
Jan 4, 2013 - 7:56pm

Well this is timely

Date: January 4, 2013 Reporting From: Buenos Aires, Argentina
Humbly I will ask you to please excuse the 48+ hour hiatus since we last spoke. I ate some tainted beef Tuesday evening that caused some of the worst food poisoning I've ever had in my life. It wasn't pretty.

Being sick is a funny thing... it really makes one appreciate being healthy. When we're feeling great, we take our health for granted. Few people wake up in the morning and think, "Weeeee, I'm not ill today!"

Yet it can all come crashing down so quickly. And the moment it's taken away by some tiny microscopic organism, we'd suddenly give anything to go back to that blissful state of good health.

Moreover, as human beings grow older, our health starts gradually slipping away. Eventually we start to forget what it's like to wake up without aches and pains. It just becomes a normal part of life.

And then, after decades of aging and little pains creeping in, people often get hit with a deluge of health problems all at once. It's part of life.

Freedom works in the same way. Most folks take freedom for granted.
And thusly, they don't think much about trading it away like some street market commodity.
Like health, freedom erodes gradually over time... then all at once.
We lose a freedom here, there, through a slow, measured deterioration of civil and economic liberty. Body scanners at the airport. Sexually assaulting passengers. Declarations of foreign accounts. Mandatory health insurance.
Then suddenly there's a bifurcation point when the deterioration goes nonlinear. It's like the old saying about going broke-- it happens gradually, then all at once. We lose our freedoms in the same way.

This is the familiar story of almost every once-great world power throughout history
, from the Romans to the Venetians to the post-Bourbon French. And the impetus is often the same-- dire economic problems, underpinned by unsustainable debt or inflation of the currency.
History shows us that when governments start to get into financial trouble, their only solution is to try to control and regulate everything. They impose capital controls, wage and price controls, exchange controls, border and travel controls, population controls. They destroy freedom in the name of preserving the status quo.

Nowhere today is there a more clear example than here in Argentina.

This nation, once one of the richest in the world, has gotten into financial trouble so many times it's hard to keep track. And in light of so much economic decline and capital flight, President Cristina Fernandez de Kirchner has imposed just about every control in the book.

She's already cut people off from being able to hold foreign currency. She's forcing companies with profits abroad to repatriate the funds back to Argentina. She's nationalized pensions. She's requiring steep taxes on overseas retail transactions. She wants every single purchase recorded and reported to the tax authorities.

She's practically taken over the media. She controls most of the utility companies. She's slapped export quotas on Argentine farmers and ranchers, forcing them to sell in domestic markets at an unprofitable price. She's also controlling the prices of another 300+ products.

She fired a former central banker for not bending to her policy wishes. She has already demanded that Argentine banks allocate a percentage of their deposits for loans to be made at negative real interest rates.

Basically, she's screwing everyone. Big time. Banks, businesses, workers, retirees, professionals, entrepreneurs, even government employees.

Again, we know how this movie ends. The more governments control, the more disastrous the results.

It's an important topic because we're seeing the same signs in Western Europe and the US.
This summer I saw harsh banking and border controls in Italy, financial transaction controls in Portugal and Spain, and all-out asset confiscation in Greece.
The US is starting to go down this road as well. Indebted past the point of no return where they must borrow money simply to pay interest on the money they've already borrowed, they're out of options.

Think about it: with the FATCA legislation that kicks off this year, they've already implemented de facto capital controls. They've authorized military detention of civilians on US soil. And still, hopelessly drowning in debt, their best idea right now is to mint a trillion dollar coin.

It's utterly absurd... and truly time to diversify overseas.

How long will it be before the world's largest economy becomes the world's largest financial prison
? And... even if it doesn't pan out this way, how will you be worse off for holding some savings in a strong, stable bank overseas? Will anyone really miss receiving (and paying tax on) 0.1% interest at an insolvent US bank?

Until tomorrow,

Simon Black

slacker
Jan 4, 2013 - 7:58pm

Endeavor to persevere...

Where is the TITS at now! Must be HUGE!!!

Turd, I am one of those crazy Architects and Engineers for 9-11 Truth.

I feel your pain... ENDEAVOR TO PERSEVERE!!!!

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