Sponsored by

An Inauspicious Anniversary

96

{Editor's Note: Today is the 105th "anniversary" of the creation of the US Federal Reserve System. Five years ago on the 100th anniversary, we had the honor of interviewing G. Edward Griffin, author of the seminal book "The Creature From Jekyll Island". The information discussed is even more relevant today than it was then, as the supposedly benevolent and altruistic Fed continues to raise the fed funds rate and contract its balance sheet. To that end, the holiday break would be an excellent time to re-listen to this terrific and tremendously-informative podcast.}

One hundred years ago today, The Federal Reserve System of The United States was born. To "celebrate" this unfortunate anniversary, I invited G. Edward Griffin, author of the book "The Creature from Jekyll Island", to spend some time in Turdville. In a webinar format, Mr. Griffin spoke candidly about his dislike of central banking and he took questions directly from listeners.

In this 50-minute conversation, Mr. Griffin addresses many topics near-and-dear to the hearts of Turdites everywhere, including:

  • Why was the Federal Reserve System created and whom do they serve?
  • Why does The Fed create money and will Quantitative Easing ever stop?
  • Can the process of monetary destruction and devaluation be halted and reversed?
  • Are we inevitably headed toward totalitarianism or is there still time to change direction?
  • What role might alternative currencies such as Bitcoin play in the future?

Many other topics are discussed, too, so please make the time to listen to this entire recording. You will not regret doing so.

Finally, at the end of the webinar, Ed and I ask you for a favor. His longtime assistant, Joan, is struggling with some health issues brought about by her exposure to radiation poisoning some years ago. To help with her struggle, please take the time to visit her website. She's an accomplished artist and, by supporting and purchasing her work, we can all help her in her fight against these diseases. If you're an art lover...or perhaps shopping for one this holiday season...please check out Joan's site and consider making a purchase. Use can use this link: https://pennypup.wix.com/joanhunterart

Thanks for listening!

TF

  96 Comments

dgstage
Dec 23, 2013 - 10:55am

Tomorrow

And it's a doozy. About an hour and a half. Yikes!

4 oz
Dec 23, 2013 - 10:56am

Thanks for the compliment

Check your "account". Merry Christmas!

dgstage
Dec 23, 2013 - 11:08am

Jim Willie Podcast

Turd

Thanks for the update, looking forward to it. Merry Christmas.

4 oz TF
Dec 23, 2013 - 11:35am

Thank you---You ROCK!

Thank you---You ROCK!

treefrog
Dec 23, 2013 - 11:51am

BREAKING NEWS!


financial crisis averted!!

new fed chair, janet yellen, announces discoveries of vast deposits of ink and paper in remote valley in wyoming.

new high speed presses ordered from china (on credit).

statement from yellen: "overdrawn? what do you mean, overdrawn? i still have plenty of checks in my checkbook!"

ivars
Dec 23, 2013 - 12:13pm

@Nick Elway -silver ETFs

Its clear that gold is money - at least since USA bimetallism was stopped and finally with ending of silver coin in the world; and moving China off silver standard. However, it is possible that silver may be monetized one day again- that is some threat to international bankers they definitely have in the back of their minds. If there is need for gold and its not available- e.g for China- they may decide to stockpile silver with threat of monetization.

It is interesting to note that difference. Of course gold price suppression by selling physical is task Nr One, silver price usually follows without any need to employ extra physical selling. 

But if it does not, that is ,if GSR starts to go down rapidly, it makes sense then to sell from silver stocks into market. 

I agree with that explanation. As long as gold for sale is available, there is no need to sell silver, better keep powder dry. 

Clarki Stomias
Dec 23, 2013 - 12:38pm

MSM Declares Gold Dead

https://blogs.marketwatch.com/thetell/2013/12/23/golds-safe-haven-role-is-over-societe-generale/

The ol' "it's going down, just because" argument. Contrarian bullish indicator...

ancientmoney ivars
Dec 23, 2013 - 12:41pm

@ivars and Nick elway re: silver ETFs . . .

There is something big brewing in silver.

As prices have dropped over the last 18-24 months, gold ETFs have bled gold, as shareholders sold their shares. The phyzz backing those shares was taken by the banks (All APs are large banks), and sent to meet demand.

Some of that demand is from China, which appears to have made a deal with U.S. Treasury; send us gold, and we won't sell your USTs en masse. Gold was likely crashed for that very reason--to get ETF holders to sell, freeing up phyzz.

Silver has been price-pummelled even worse than gold. Normally, ETF shareholders would sell shares in silver ETFs even faster than gold ETF shareholders--silver is always seen as more volatile and silver owners more fickle.

NOT THIS TIME! Physical silver is acting much less volatile than gold, even as the price of silver in the paper-controlled markets has dropped further than gold's price. Silver appears as though it is in strong hands, and is staying put.

Another factor is that SLV has JPM as its custodian. This is not a coincidence. JPM maintains a concentrated net short position on COMEX, but as custodian, controls the physical silver within SLV.

The SLV prospectus allows that the custodian (JPM) can take the physical silver from SLV, and its only obligation is to pay for it, in currency. No requirement to replace the phyzz, no users fees, no penalties.

So, in essence, JPM can claim ownership to 100% of SLV's silver any time it chooses. The prospectus spells this out.

realitybiter
Dec 23, 2013 - 12:44pm

debt is the currency of slaves

Issued by slave masters.....aka...the banks and their co-op, the fed. If you are dependent on debt, meaning you can't live otherwise, you are enslaved.

I hate to say this, but anyone who views gold or silver as equivalent to a stock, is naive.

Metals are not businesses, they do not create profit by producing anything. They are simply the purest form of unadulterated money. Listen to the slave master. Gold is money...JP Morgan.

Judging PMs by looking at their price trend is like jumping on a trampoline and concluding, while at the apex of your jump, "gee, I guess their is no gravity."

Between THE DECADE of 1997 through 2007 you could have swapped the DIA for gold and you would still be ahead, today. You could have picked any of the nearly 4 thousand days to have made this switch. Or if you were real smart you could have done it all in the Spring of 2000, when the monthly RSI of the nasdaq was WAY into overbought territory (has only happened three times int the last 15 years: NOW, 2007, 2000).....and gold was severely oversold....now and 2000....

This could not be more obvious, if you just look at the data in the context of large timeframes. I was at the epicenter of the madness of the nasdaq in 2000. I remember a day nearly three years later, whe the nasdaq fell 50 pts to around 1000 (down 80% from the euphoric high), and we chuckled, gee another 20 days like this and it will be at zero....and that was the bottom....this year has been absolutely brutal for anyone owning mining stocks. During the ides of April, we saw the hui drop 60 pts from 320 to 260 in a week..another 4 weeks and it is zero! Since then we have been in a process of bottoming. Unfortunately, this will not be confirmed until prices are north of 300. it aint easy.

Oh, and don't forget that equities are now at record margin debt. This is never ever coincident with "buy zones" Quite the contrary. And when you sell stock what will you buy? bonds? Are interest rates at levels which can drop steeply? Real estate? Beat the rush go ugly early.

HappyNow dgstage
Dec 23, 2013 - 12:51pm

What Happens When You Have to Admit the Gold’s Not There

well dgstage "they" certainly threw a mountain of silver in Sprott's face after he claimed there was a silver shortage.

Hope Sprott's track record improves.

To turn the headline around, has Sprott had to admit the Silver IS There?

No worries TPTB will dodge the gold answer just like he has dodged the silver answer.

ancientmoney
Dec 23, 2013 - 12:57pm

Maund sees silver rising out of this "{healthy" correction . . .

on medium-to-long term basis. Short term, still could test $18 again. Back in October he thought the same thing--but the manipulations defeated it (I say that--not him). Silver is still in a 14-year long bull trend. https://www.silverseek.com/article/silver-market-update-12793

treefrog
Dec 23, 2013 - 1:05pm
ivars
Dec 23, 2013 - 1:26pm

@ancientmoney- its kind of vice versa

Yes, that is the same we have been saying with Nick- if SLV in under JPM control, it won't flood it in the markets before its needed to SUPPRESS silver price. As long as gold does it for both- and so far it does as GSR is comfortably above 60 - no need to touch SLV reserves. As soon as GSR with dropping gold price will move under some comfortable level - 60 may be?- SLV will be also puking silver as GLD is puking gold.

One thing I care to mention..which seems to be turned 180% every time- China as big lender to the USG does not hold any power over it- its the opposite, USG does. China only makes statements to please domestic public but in fact China will be the last lender to the USG even if they both were preparing to fight each other. 

USA and UK was in the same situation with Germany prior to WWII- they were lending Hitler more money- because they or their banks had already lent a lot. 

So it is not China that dictates gold prices or demand. Its the USG in agreement with bankers who tells China how much it can buy as they sell trying to suppress gold prices. How much it can buy without raising prices. These volumes are agreed. Naturally China insists on more but.. they have been adding treasuries as late as now.

Debts to sovereigns that can not use force to collect are the same as normal debts - the bigger it is, the more its creditors, not debtors problem. Same with China-USG. It is Chinas problem and it will NEVER sell UST in a manner that could cause their price drop- as long as USD is kept under control. 

There is no DEMAND in these gold markets that can not be or is not politically controlled. Look at India- it did not take much from the USG and bankers to stop demand from India to almost 0 ; instead they got a save face via phony diplomatic row. 

Then Thailand become a route to smuggle gold into India both legally and illegally..What is happening in Thailand now? The Thai government was unable/unwilling to control gold trade- so the government will fall. Or do what is required.

This all of course applies to current situation may change if either USG chooses to devaluate US bonds or USD too much, or China feels it can win a war with the USA. None of these will happen within next 3 years. 

SRSrocco
Dec 23, 2013 - 1:39pm

SILVER PRICE TO HEAD HIGHER IN 2014

I believe the downside in the price of silver is limited due to the production cost issue in which I explain below:

Silver Price To Head Higher As Cost of Production Forms A Base

Furthermore, I have a report coming out in the beginning of the year that is probably one of the most important ones I have ever written.

steve

silver2013
Dec 23, 2013 - 1:41pm

Is russia and china still

Is russia and china still buying tbills?

waxybilldupp
Dec 23, 2013 - 2:53pm

Anyone noticed the 10-year today? ...

Knocking on the 2.94 door. Hmmmm?

wax off

silver2013
Dec 23, 2013 - 2:57pm

Yeah...im keeping an eye on

Yeah...im keeping an eye on it too. Im wondering what the feds are going to do.

waxybilldupp silver2013
Dec 23, 2013 - 3:24pm

10-year price action ...

Suggests the Russians and Chinese aren't buying any as stocking stuffers.

wax off

ancientmoney
Dec 23, 2013 - 4:27pm

Adam Hamilton bullish on silver . . .

"Silver surging 50% next year isn’t even a stretch, and a full-on doubling in 2014 is more in line with past precedent out of similar despair-laden lows. So all investors and speculators should deploy some capital in silver and elite silver stocks today to ride these coming gains. It’s never easy buying low when a sector is deeply out of favor, but that’s when prices are cheapest which ultimately leads to the biggest wins."

https://www.silverdoctors.com/silver-launchpad-2/

Jeanne d'Arc
Dec 23, 2013 - 4:42pm

Our bet

TF,

I hate to ask, but will you be honouring our bet from December last year? I think it is fair to say that I win and you lose.

https://screwtapefiles.blogspot.com/2013/12/calling-my-bet-with-turd.html

A very merry Christmas to all your readers.

JdA

Jeanne d'Arc
Dec 23, 2013 - 4:47pm

I was wondering when you'd get around to showing up

Yes, I owe $100 to your favorite charity.

Btw...now that everyone knows that my full name is Craig Hemke, are you ready to share your true identity, too?

Jeanne d'Arc TF
Dec 23, 2013 - 4:56pm

Tardiness

Come, come, TF - I'm eight days early..! Surely you couldn't have been waiting on me that long? ;-)

Actually the terms of the bet were that you get to donate to your charity, which was Food for the Poor. Sorry to ask, but grateful if you could provide proof of donation to the adjudicators (Purple Haze for your side and Louis Cypher for mine).

You'll see from my post that I'm offering the same bet again this year. I take the S&P, you take gold. Only this time I'm offering two gold coins as stake. You game?

Thanks for the kind offer, but I'll keep my identity secret if you don't mind. There are some real lunatics out there on the silverogosphere, you know...

JdA

TF
Dec 23, 2013 - 4:59pm

Food For The Poor?

Wow, Jean! We share a favorite charity. No problem at all.

Jeanne d'Arc
Dec 23, 2013 - 5:04pm

Jean, old girl...

I'm not making any two coin bets but, if you want to go double-or-nothing on the charity $100, that's fine. Just me know.

Jeanne d'Arc TF
Dec 23, 2013 - 5:13pm

2014 bet

TF,

Well, double-or-nothing won't quite work, given that you've apparently already paid out on this year's bet (so the 'nothing' isn't an option).

But more than happy to go for $200 for 2014. I'll take the S&P, you'll take gold. The best return (even if negative) for the calendar year wins. I'll nominate GM Jenkins as my adjudicator. You can stick with Purple Haze or choose someone else. I'll stick with Oxfam as my charity for this year.

Merry Christmas!

JdA

why do I even bother
Dec 23, 2013 - 6:14pm

My Parting Shot for 2013

Seasons Greetings to all of you cool (written from the bowels of Deepest, Darkest China.....)

I read that Gold no longer has monetary value, and I stand in awe of those Upon High who have made this decision. 5,000 years of economic history, the cultural traditions of several billion lesser folk in Asia and the Arab world, and all those Central Bankers (especially the Bundesbank in Germany, who foolishly covet their meagre 300 tons) have been proven wrong, because somebody important decided they like it that way, and you guys just need to accept that. Blame China, maybe, or the Tea Party.

As we enter another long, dark night for Gold, ask yourself this - did Nixon take the USA off the Gold standard because Gold had failed in its role as an arbiter of monetary value, or because fiat currency couldn't keep up? Are zero interest rates, 47 million people on Food Stamps, $75+ billion monthly Asset purchases or a collapsing Savings Rate the things that made America a great economy or rebuilt Europe after WW2?

Timescales. In the greater scheme of things, our lives are fleeting moments, but even within our brief lifetimes - times past and yet to come - we know that what we see around us today is an aberration, and that one day we will have these bar-stewards swinging from lampposts.

And so, as Tiny Turd observed, "God bless us, every one!"yes

VideoQuote: "God Bless Us, Everyone"
Plunjer
Dec 23, 2013 - 6:21pm

Turd, way to be a good sport

I see Eric Original (EO) is still harboring ill feelings. I always respected EO's contributions until her switch flipped. Never quit understood what that was all about. If I had to guess I'd say that she's dealing with some mental health issues .

Mr. Fix
Dec 23, 2013 - 6:48pm

On topic, and Merry Christmas everyone!


On The 100th Anniversary Of The Federal Reserve Here Are 100 Reasons To Shut It Down Forever

Submitted by Tyler Durden on 12/23/2013 - 14:59

December 23rd, 1913 is a date which will live in infamy. That was the day when the Federal Reserve Act was pushed through Congress. Many members of Congress were absent that day, and the general public was distracted with holiday preparations. Now we have reached the 100th anniversary of the Federal Reserve, and most Americans still don't know what it actually is or how it functions. But understanding the Federal Reserve is absolutely critical, because the Fed is at the very heart of our economic problems. Since the Federal Reserve was created, there have been 18 recessions or depressions, the value of the U.S. dollar has declined by 98 percent, and the U.S. national debt has gotten more than 5000 times larger. This insidious debt-based financial system has literally made debt slaves out of all of us, and it is systematically destroying the bright future that our children and our grandchildren were supposed to have. The truth is that we do not have to have a Federal Reserve. The greatest period of economic growth in U.S. history was when we did not have a central bank. If we are ever going to turn this nation around economically, we are going to have to get rid of this debt-based financial system that is centered around the Federal Reserve. On the path that we are on now, there is no hope.

silver2013
Dec 23, 2013 - 7:06pm

SLOW MONTH FOR TF METAL?

Not much action on the pm's sites even with a bad take down and all the taper talk. oh well. i guess x-mass is almost here and new years is just around the corner maybe things will pick up after Jan 2014. the beginning of the 2014 currency reset.


Dec 23, 2013 - 7:07pm

And then some...

It's almost as if Friday's massive GLD addition was a misprint. All of it came back out today...and then some.

Officially, it goes down as a pukejob of 8.40 metric tonnes. This puts the "inventory" at a new low for 2013...just 805.72 metric tonnes.

This is down 544.20 metric tonnes YTD or 40.31% and just 5.73 mts away from breaking the 800 level. 

Again....and just for fun....at the price lows in June, the GLD showed an inventory of 969.50 mts. In the six months since, price is basically FLAT but the GLD has barfed up a total of 163.78 mts or 16.9% or another full 1/6 of "inventory".

Become a gold member and subscribe to Turd's Vault

Contribute

Donate  Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

The TFMR Silver Round
Key Economic Events Week of 1/14

1/15 8:30 am ET Producer Price Index
1/15 8:30 am ET Empire State Mfg. Index
1/16 8:30 am ET Retail Sales
1/16 8:30 am ET Import Price Index
1/17 8:30 am ET Housing Starts
1/17 8:30 am ET Philly Fed
1/18 9:15 am ET Capacity Utilization and Ind. Prod.

Key Economic Events Week of 1/7

1/7 10:00 ET ISM Services Index
1/7 10:00 ET Factory Orders
1/9 2:00 ET December FOMC minutes 
1/10 Speeches from CGP, Goons Bullard and Evans
1/11 8:30 ET CPI

Key Economic Events Week of 12/31

1/2 9:45 am ET Markit Manu PMI
1/3 10:00 am ET ISM Manu Index
1/4 8:30 am ET BLSBS
1/4 9:45 am ET Markit Serv PMI

randomness