Manipulations & Exaggerations
QUESTION: Why do you say the banks do short-term manipulations but not constant manipulations?
ANSWER: Because it is absurd. There is no profit in perpetual manipulation. Every single manipulation they have every done in the metals has been to the upside because they know it is easier to get people to buy. This is all a CONSPIRACY theory claiming they continually suppress the metals which gives them PERFECT cover for such an allegation cannot be proven in court. Exaggerate what they do and you hide the truth about reality. You will NEVER prove in a court of law in any country perpetual suppression of a market. Keep those allegations up and they can do the short-term plays and get away with it because people exaggerate what they are doing.
The LIBOR scandal is another one. There was no “manipulation” to keep rates at some specific level. It was a manipulation to clip people all the time moving up and down. People were short the ruble futures in 1998. They then claimed the settlement was based upon cash, which the banks rigged. So if you were short against the banks, at settlement you lost money despite being up heaps. They rigged the cash price to prevent a loss on the futures.
Quantitative Easing & the Illogical Conclusion
The ECB does not reveal in detail its QE and most people have no idea that its asset-backed securities (ABS) and covered-bond purchases are actually carried out by private asset managers: ING Investment Management, Deutsche Asset & Wealth Management International, State Street Global Advisors, and Amundi. These asset managers intervene into markets on orders by the ECB.
Those strategies contrast with the Federal Reserve. It has become conventional wisdom that when all else fails to make economies grow, create new money and buy government bonds. Of course, the “all else” never includes deregulation and lowering taxes. These people do not comprehend that FATCA becomes global by 2017 and the private costs have exceeded $200 billion. Moreover, there are now more people employed in compliance than in generating actual business. Government has succeeded in Byzantinianizing the private sector, which can only mean lower economic growth.
So this formula dubbed quantitative easing, or QE, is simply a punishment side of stimulation for it is coupled with lowering interest rates that wipe out savings. Most economists think QE helped keep the U.S. and the other countries that used it, such as Japan and the U.K., from collapsing into a catastrophic dark depression. Nobody bothers to look at over-taxation when in fact Keynes himself said that deficits were OK part-time for a depression and cutting taxes would be appropriate for recession.
If we follow the logic here, QE is supposed to “stimulate” the economy by reinventing inflation. But does this only create cost-push inflation or asset/currency-inflation rather than demand-inflation that marks economic growth? The first two forms of inflation reduce the living standard as net disposable income shrinks. Demand inflation requires confidence as people invest expecting to make more in a boom, not punishment. This type of stimulus will widen the gap the socialists talk about between rich and poor for it will only create asset inflation. So it is hard to follow the logic that QE alone, while hunting money for taxation, will have any stimulus impact other than eroding the economic base.
Then the central banks have the bonds, which they could never sell again, and as debt rises, the central banks go belly up. Honestly, this is what we deserve for electing lawyers who think they can just write a law and make the impossible happen.
The WEC Princeton Nov 7th & 8th
Mathematics & Dark Age
We tend to judge far too much by our own times. What cannot be overlooked was the lack of mathematics following the dark age. When numbers were Roman numerals, bookkeeping and any calculation was not supportive of international accounting. Interesting enough was where pornography enabled the video streaming it was gambling that gave birth to mathematics. Vices often inspire innovation.
It was the publication in 1202 of “Liber Abaci” (Book of Abacus) by Leonardo Pisano or Bonacci (1l70-l240AD) of Pisa known to most as Fibonacci. When Fibonacci published his Liber Abaci that introduced Hindu-Arabic numerals, this method that allowed calculations was not taught in schools and was unknown in Christian circles except among a very small group of intellectuals who had access to translations of the Arab mathematician al-Khwarizmi (780-850 AD).
Fibonacci’s Liber Abaci introduced vital concepts that enable banking to emerge. The first seven chapters dealt with notation introducing the idea of a place value whereas the position of a figure determines where it is a unit such as 10, 100, 1000 and so on. He also introduced the use of numerals in arithmetical calculations. These techniques were ground-breaking for a culture that lost its identity with the fall of Rome. Fibonacci then illustrates practical problems how to calculate profit margin, moneychanging, barter, conversion of weights and measures, partnerships, and last but not least interest. He even introduced some geometry and algebra. This work was so earth-shattering, it became the topic of discussion and caught the attention of Holy Roman Emperor Frederick II (1215-1250)(King of Sicily 1198-1250).
Fibonacci solved the problems submitted to him as a test where the third problem x3+2×2+10x=20 (modern notation), he solved using the Babylonian method based upon sexagesimal fractions (base 60), which when translated into modern decimals is 1.3688081075. Fibonacci is strangely best known for his sequence derived from a pair of multiplying rabbits (1, I, 2, 3, 5, 8, 13, 21, 34, 55 .•. ) where the progression follows what has become known as the “golden ratio” 1.6180 that was discovered by the University of Glascow mathematician Robert Simson in 1753.
The Arabs and the Jews were always highly educated and were not victims of superstition of the times. Thus, the knowledge of mathematics was highly restricted to these groups back then. Jews were not just moneylenders, but they had also been captains of ships where Christians were ignorant of mathematics. Therefore, Fibonacci opened the door for capitalism by first creating a knowledge base of mathematics introducing the decimal system to Europe. Finally, the secrets of mathematics were starting to resurface from the Dark Ages.
If we did go into a Dark Age, knowledge seems to evaporate. The question remains, what knowledge will evaporate this time if we go back that far?
Red Light Traffic Cameras & Money
You
were not entitled to a lawyer and you had to conduct your own defense.
The evidence used against Raleigh was the signed and sworn confession of
his friend Henry Brooke under threat of death by the King. Raleigh
requested that Cobham should appear in court to allow Raleigh to
confront his accuser; “[Let] my accuser come face to face,
and be deposed. Were the case but for a small copyhold, you would have
witnesses or good proof to lead the jury to a verdict; and I am here for
my life!”Raleigh was denied his right to confrontation and was summarily convicted. King James spared his life, yet he remained imprisoned in the Tower until 1616 where he wrote his famous first volume of The Historie of the World published 1614.
Because of this famous trial of Sir Walter Raleigh, the American Revolution included within the Sixth Amendment expressly state: “in all criminal prosecutions, the accused shall enjoy the right…to be confronted with the witnesses against him.” Unlike Europe, in American you cannot get a speeding ticket from a camera because you must have the right to confront your accuser.
After a 5 year pilot program which began in 2009 and operated in about two dozen New Jersey municipalities, came to an end on in December 2014, cities were crying they wanted the money. Towns big and small have raked in millions of dollars in fines since the program began. Some busy intersections have produced more than 20,000 citations in a single year. But all they could do is fine you, no points on your license. WHY? Because you do not have the right of confrontation so it would be unconstitutional thanks to Sir Walter Raleigh. The red light cameras have caused more accidents when people abruptly stop on yellow lights unexpectedly. They have done nothing for safety, only raised money for broke municipalities. You can even tune into cameras to see traffic.
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