« | Main | Weekly Geopolitical News and Analysis20120430: Chaos on multiple fronts as controlled implosion of financial cabal continues »

04/27/2012

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c647c53ef016304d80849970d

Listed below are links to weblogs that reference RE: who is Drake ? :

Comments

Dan Rosenak

Cobra's Open Letter to Drake, David Wilcock, Benjamin Fulford, Bill Brockbrader and Kerry Cassidy:

http://2012portal.blogspot.ca/2012_05_01_archive.html

Lets Unify and Save Humanity~!!!

Jason Thunderbeing

I have checked out drake for now he has our trust and support unless he shows us otherwise.i have empowered and quietly been aiding you all white dragons truth bringers like Ben.i have ran into a problem myself and that is these monsters in my country of Canada.We have a big problem out here.i am calling a spiritual war counsel to free my country of this decades old evil.you are from here ben,Canadains might need some help and support too.we have found police government military gangs even some i have worked with in the past.what happens here in out country Ben could be a domino effect worldwide.the police don't seem to be able to arrest these guys and what i know now i understand they fear threats of torture and murder,but i do not and many others whom they do not know about do not fear such things.so we are prepared to take them on out here.I have recently gotten allot of intel on the missing native women out here and the children in foster care and when who and where they get abuducted and abused.I have names locations where they dump the bodies and locations where they do their crimes to Gods children.We have aided you in the past,now we need aid from your side.i will be watch,i will be waiting.i pray you guys don't let our country down,for i do not forget nor my allies.

a

RE: ドレイクとは一体誰なのでしょうか?

彼は信用できる人なのでしょうか?
彼はデイビッド・ウィルコックによって紹介されましたが、それ以降、何の音沙汰もありません。

こんにちは。私の最も重要な情報源たちは、ドレイクとはアメリカの軍関係者であり、彼が話をする機会は制限されていると述べています。それからこういった種のグッド・ニュースすべてについて言えることですが、最終的にはあなたが自分自身の目で確認したことだけを信じるようにしましょう。しかしながら、あくどい連中は皆揃って退却中であることを示す兆候が、今やそこかしこに見られます。

Full of it

Dude, you keep going on and on about any minute now the banksters aré going down. Saw a vid of you on YouTube screaming like a madman at rotscum and what.... nothing happens. Goldman Scum still rule tge world. I'm starting to think you're mad. Post a complete and FREE explanation of what's happened the last 2 years and let's compare notes. WTF.

vikingterrst

I see the Drake u r speaking about. It seems he is milita.u should know Mr. Ben, u shouldn't trust anyone, espically nice people, in most cases. As it seems to me, if u r in Japan, with this awful amount of radiation, y wouldn't u evacuate, n on top of that, if u r in this dragon society, y would u charge people to become a member of a blog. "You need to pay Ur bill???". U seem like u r trying to take over the entire money game, and if u give everybody a 100 grand, don't you think more murders would occur, from hostage situations. I don't think u understand how crazy people can get in this country. Leo zagami supposely tryed killing u. Dude, what kind of car do you drive? I don't trust u behind the wheel on the road. I would be able to kick that Asian dudes ass, the president of the martial arts world. Make me the fuckin president. No disrespect, u have no evidence to procedure to Ur listeners, I don't even know if this is even Ur personal blog, n if an assassin, ninja, threatens u, with a dart, how do I know u aren't a forced spokes person, for this ish. Chemtrails, is also a important question. What if is your Asian commin. Taking over control to destroy whites, n don't get me wrong, u sound like an intelligent person, these ate questions, I was wondering, while taking a crap. Please Mr. Ben, don't take this to any disrespect, its just my ideas dealing with it over a smart phone, and its an internal struggle

Kekokeko5529

RE: ドレークは、誰ですか?
彼は、信用できる人ですか?

彼は、david wilcockによって我々に紹介されました
そして、そのdavidがなくなった直後に、どんなコミュニケーションもない

こんにちは、
ドレークが米軍である、そして、彼が話してもよいもので制限されると、私自身の主要な関係者は、私に話します。 すべてのこの種類の感じよい知らせと同様に、あなたがそれを見る時だけ、それを信じてください。 しかし、たくさんが、悪者が完全な隠れ家にいることを示すために現在向こうにわかるためにあります。

nazaed

Mr. fulford do you happen to know what is a "nonseinaholder"? cuz i dont..:)

a

EMERGENCY ALERT, EVERYONE GO TO THE YOUTUBE SMASH240, HE’S FILMING DEMONS FROM HIS BACKYARD! THAT’S WHAT HE SAYS THEY ARE, OR IS IT PROJECT BLUEBEAM, THEY ARE FAKE PLANES AND HELICOPTERS

Troy Caldwell

Here is Economist Jim Grant arguing for the gold standard and taking the Fed to task at a Fed meeting. Interesting. It is part of John Mauldin's newsletter.

This message was sent to troy.c.md.sd@tx.rr.com.
You subscribed at www.johnmauldin.com.

A Gold Standard?
By John Mauldin | April 28, 2012

A Piece Of My Mind, by Jim Grant
A Gold Standard?
Carlsbad, Tulsa, Chicago, and Atlanta

There are times, my friends Michael Lewitt and Dr. Lacy Hunt agreed today at lunch, when the study of economics is best informed by a sound knowledge of history. Indeed, Michael's son wants to follow his father into the finance world, and Michael is starting him off in history. I have spent hours listening to Lacy stroll through economic history, detailing the path of economic thought from Fisher to Kindleberger to Minsky. The last few days have been one of those times when I realized how much I don't know and how much more there is to learn. Not only Lacy and Michael are here in Florida, but a long list of bright minds to learn from. James Rickards, who has recently written the tour de force book Currency Wars, Harry Dent, Doug Casey, Porter Stansberry, Greg Weldon, and John Williams of Shadow Stats, with whom I look forward to meeting (do I have questions for him!). And so many more.

And it is because I simply have to stop, listen and learn (and visit with friends) that this week I will kind of take the weekend off and instead send you one of the more remarkable essays I have read in a long time. It is a speech by Jim Grant to the New York Federal Reserve. The always erudite Grant takes us back in time to the very beginnings of the Federal Reserve, to show us how far we have strayed from the original intent. I really think you should read this. I have perused it several times and intend to read it yet again – and then some more.

Grant argued for a return to the gold standard in the very halls of fiat money! It seems the New York Fed is asking some of its critics to come and speak. I have read some of the speeches, but this is the best so far for several reasons, not the least of which is that it contains some very funny lines. If you find yourself invited to the lion's den, Grant seems to think it is best to make fun of their teeth! You really do have to admire his courage. I think I would be a little concerned that I might be on the menu!

I will make a few comments at the end of his speech and then note some upcoming speaking events in Atlanta and Philadelphia. But let's jump straight away into today's main event.

A Piece Of My Mind

By Jim Grant

My friends and neighbors, I thank you for this opportunity. You know, we are friends and neighbors. Grant's makes its offices on Wall Street, overlooking Broadway, a 10-minute stroll from your imposing headquarters. For a spectacular vantage point on the next ticker-tape parade up Broadway, please drop by. We'll have the windows washed.

You say you would like to hear my complaints, and, on the one hand, I do have a few, while on the other, I can't help but feel slightly hypocritical in dressing you down. What passes for sound doctrine in 21st-century central banking—so-called financial repression, interest-rate manipulation, stock-price levitation and money printing under the frosted-glass term "quantitative easing"—presents us at Grant's with a nearly endless supply of good copy. Our symbiotic relationship with the Fed resembles that of Fox News with the Obama administration, or—in an earlier era—that of the Chicago Tribune with the Purple Gang. Grant's needs the Fed even if the Fed doesn't need Grant's.

In the not quite 100 years since the founding of your institution, America has exchanged central banking for a kind of central planning and the gold standard for what I will call the Ph.D. standard. I regret the changes and will propose reforms, or, I suppose, re-reforms, as my program is very much in accord with that of the founders of this institution. Have you ever read the Federal Reserve Act? The authorizing legislation projected a body "to provide for the establishment of the Federal Reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper and to establish a more effective supervision of banking in the United States, and for other purposes." By now can we identify the operative phrase? Of course: "for other purposes."

You are lucky, if I may say so, that I'm the one who's standing here and not the ghost of Sen. Carter Glass. One hesitates to speak for the dead, but I am reasonably sure that the Virginia Democrat, who regarded himself as the father of the Fed, would skewer you. He had an abhorrence of paper money and government debt. He didn't like Wall Street, either, and I'm going to guess that he wouldn't much care for the Fed raising up stock prices under the theory of the "portfolio balance channel."

It enflamed him that during congressional debate over the Federal Reserve Act, Elihu Root, Republican senator from New York, impugned the anticipated Federal Reserve notes as "fiat" currency. Fiat, indeed! Glass snorted. The nation was on the gold standard. It would remain on the gold standard, Glass had no reason to doubt. The projected notes of the Federal Reserve would—of course—be convertible into gold on demand at the fixed statutory rate of $20.67 per ounce. But more stood behind the notes than gold. They would be collateralized, as well, by sound commercial assets, by the issuing member bank and—a point to which I will return— by the so-called double liability of the issuing bank's stockholders.

If Glass had the stronger argument, Root had the clearer vision. One can think of the original Federal Reserve note as a kind of derivative. It derived its value chiefly from gold, into which it was lawfully exchangeable. Now that the Federal Reserve note is exchangeable into nothing except small change, it is a derivative without an underlier. Or, at a stretch, one might say it is a derivative that secures its value from the wisdom of Congress and the foresight and judgment of the monetary scholars at the Federal Reserve. Either way, we would seem to be in dangerous, uncharted waters.

As you prepare to mark the Fed's centenary, may I urge you to reflect on just how far you have wandered from the intentions of the founders? The institution they envisioned would operate passively, through the discount window. It would not create credit but rather liquefy the existing stock of credit by turning good-quality commercial bills into cash— temporarily. This it would do according to the demands of the seasons and the cycle. The Fed would respond to the community, not try to anticipate or lead it. It would not override the price mechanism— as today's Fed seems to do at every available opportunity—but yield to it.

My favorite exposition of the sound, original doctrines is a book entitled, "The Theory and Practice of Central Banking," by H. Parker Willis, first secretary of the Federal Reserve Board and Glass's right-hand man in the House of Representatives.

Writing in the mid-1930s, Willis pointed out that the Fed fell into sin almost immediately after it opened for business in 1914. In 1917, after the United States entered the Great War, the Fed set about monetizing the Treasury's debt and suppressing the Treasury's borrowing costs. In the 1920s, after the recovery from the short but ugly depression of 1920-21, the Fed started to implement open-market operations to sterilize gold flows and steer a desired macroeconomic course.

"Central banks," wrote Willis, glaring at the innovators, "...will do wisely to lay aside their inexpert ventures in half-baked monetary theory, meretricious statistical measures of trade, and hasty grinding of the axes of speculative interests with their suggestion that by doing so they are achieving some sort of vague 'stabilization' that will, in the long run, be for the greater good."

Willis, who died in 1937, perhaps of a broken heart, would be no happier with you today than Glass would be—or I am. The search for "some sort of vague stabilization" in the 1930s has become a Federal Reserve obsession at the millennium.

Ladies and gentlemen, such stability as might be imposed on a dynamic capitalist economy is the kind that eventually comes around to bite the stabilizer.

"Price stability" is a case in point. It is your mandate, or half of your mandate, I realize, but it does grievous harm, as defined. For reasons you never exactly spell out, you pledge to resist "deflation." You won't put up with it, you keep on saying—something about Japan's lost decade or the Great Depression. But you never say what deflation really is. Let me attempt a definition. Deflation is a derangement of debt, a symptom of which is falling prices. In a credit crisis, when inventories become unfinanceable, merchandise is thrown on the market and prices fall. That's deflation.

What deflation is not is a drop in prices caused by a technology-enhanced decline in the costs of production. That's called progress. Between 1875 and 1896, according to Milton Friedman and Anna Schwartz, the American price level subsided at the average rate of 1.7% a year. And why not? As technology was advancing, costs were tumbling. Long before Joseph Schumpeter coined the phrase "creative destruction," the American economist David A. Wells, writing in 1889, was explaining the consequences of disruptive innovation.

"In the last analysis," Wells proposes, "it will appear that there is no such thing as fixed capital; there is nothing useful that is very old except the precious metals, and life consists in the conversion of forces. The only capital which is of permanent value is immaterial—the experience of generations and the development of science."

Much the same sentiments, and much the same circumstances, apply today, but with a difference. Digital technology and a globalized labor force have brought down production costs. But, the central bankers declare, prices must not fall. On the contrary, they must rise by 2% a year. To engineer this up-creep, the Bernankes, the Kings, the Draghis—and yes, sadly, even the Dudleys—of the world monetize assets and push down interest rates. They do this to conquer deflation.

But note, please, that the suppression of interest rates and the conjuring of liquidity set in motion waves of speculative lending and borrowing. This artificially induced activity serves to lift the prices of a favored class of asset—houses, for instance, or Mitt Romney's portfolio of leveraged companies. And when the central bank-financed bubble bursts, credit contracts, leveraged businesses teeter, inventories are liquidated and prices weaken. In short, a process is set in motion resembling a real deflation, which then calls forth a new bout of monetary intervention. By trying to forestall an imagined deflation, the Federal Reserve comes perilously close to instigating the real thing.

The economist Hyman Minsky laid down the paradox that stability is itself destabilizing. I say that the pledge of a stable funds rate through the fourth quarter of 2014 is hugely destabilizing. Interest rates are prices. They convey information, or ought to. But the only information conveyed in a manipulated yield curve is what the Fed wants. Opportunists don't have to be told twice how to respond. They buy oil or gold or foreign exchange, not incidentally pushing the price of a gallon of gasoline at the pump to $4 and beyond. Another set of opportunists borrow short and lend long in the credit markets. Not especially caring about the risk of inflation over the long run, this speculative cohort will fund mortgages, junk bonds, Treasurys, what-have-you at zero percent in the short run. The opportunists, a.k.a. the 1 percent, will do fine. But what about the uncomprehending others?

I commend to the Federal Reserve Bank of New York Financial History Book Club (if it doesn't exist, please organize it at once) a volume by the British scholar and central banker, Charles Goodhart. Its title is "The New York Money Market and the Finance of Trade, 1900-1913." In the pre-Fed days with which the history deals, the call money rate dove and soared. There was no stability—and a good thing, Goodhart reasons. In a society predisposed to speculate, as America was and is, he writes, unpredictable spikes in borrowing rates kept the players more or less honest. "On the basis of its record," he writes of the Second Federal Reserve District before there was a Federal Reserve, "the financial system as constituted in the years 1900-1913 must be considered successful to an extent rarely equaled in the United States." And that not withstanding the Panic of 1907.

My reading of history accords with Goodhart's, though not with that of the Fed's front office. If Chairman Bernanke were in the room, I would respectfully ask him why this persistent harking back to the Great Depression? It is one cyclical episode, but there are many others. I myself draw more instruction from the depression of 1920-21, a slump as ugly and steep in its way as that of 1929-33, but with the simple and interesting difference that it ended. Top to bottom, spring 1920 to summer 1921, nominal GDP fell by 23.9%, wholesale prices by 40.8% and the CPI by 8.3%. Unemployment, as it was inexactly measured, topped out at about 14% from a pre-bust low of as little as 2%. And how did the administration of Warren G. Harding meet this macroeconomic calamity? Why, it balanced the budget, the president declaring in 1921, as the economy seemed to be falling apart, "There is not a menace in the world today like that of growing public indebtedness and mounting public expenditures." And the fledgling Fed, face to face with its first big slump, what did it do? Why, it tightened, pushing up short rates in mid-depression to as high as 8.13% from a business cycle peak of 6%. It was the one and only time in the history of this institution that money rates at the trough of a cycle were higher than rates at the peak, according to Allan Meltzer.

But then something wonderful happened: Markets cleared, and a vibrant recovery began. There were plenty of bankruptcies and no few brickbats launched in the direction of the governor of the New York Fed, Benjamin Strong, for the deflation that cut an especially wide and devastating swath through the American farm economy. But in 1922, the first full year of recovery, the Fed's index of industrial production leapt by 27.3%. By 1923, the unemployment rate was back to 3.2%. The 1920s began to roar.

And do you know that the biggest nationally chartered bank to fail during this deflationary collapse was the First National Bank of Cleburne, Texas, with not quite $2.8 million of deposits? Even the forerunner to today's Citigroup remained solvent (though for Citi, even then it was a close-run thing, on account of an oversize exposure to deflating Cuban sugar values). No TARP, no starving the savers with zero-percent interest rates, no QE, no jimmying up the stock market, no federal "stimulus" of any kind. Yet—I repeat—the depression ended. To those today who demand ever more intervention to cure what ails us, I ask: Why did the depression of 1920-21 ever end? Given the policies with which the authorities treated it, why are we still not ensnared?

If you object to using the template of 1920-21 as a guide to 21st-century policy because, well, 1920 was a long time ago, I reply that 1929 was a long time ago, too. And if you persist in objecting because the lessons to be derived from the Harding depression are unthinkably at odds with the lessons so familiarly mined from the Hoover and Roosevelt depression, I reply that Harding's approach worked. The price mechanism is truer and enterprise hardier than the promoters of radical 21st-century intervention seem prepared to acknowledge.

In notable contrast to the Harding method, today's policies seem not to be working. We legislate and regulate and intervene, but still the patient languishes. It's a worldwide failure of the institutions of money and credit. I see in the papers that Banca Monte dei Paschi di Siena is in the toils of a debt crisis. For the first time in over 500 years, the foundation that controls this ancient Italian institution may be forced to sell shares. We've all heard of hundred-year floods. We seem to be in a kind of 500-year debt flood.

Many now call for more regulation—more such institutions as the Treasury's brand-new Office of Financial Research, for instance. In the March 8 Financial Times, the columnist Gillian Tett appealed for more resources for the overwhelmed regulators. Inundated with information, she lamented, they can't keep up with the institutions they are supposed to be safeguarding. To me, the trouble is not that the regulators are ignorant. It's rather that the owners and managers are unaccountable.

Once upon a time—specifically, between the National Banking Act of 1863 and the Banking Act of 1935—the impairment or bankruptcy of a nationally chartered bank triggered a capital call. Not on the taxpayers, but on the stockholders. It was their bank, after all. Individual accountability in banking was the rule in the advanced economies. Hartley Withers, the editor of The Economist in the early 20th century, shook his head at the micromanagement of American banks by the Office of the Comptroller of the Currency—25% of their deposits had to be kept in cash, i.e., gold or money lawfully convertible into gold. The rules held. Yet New York had panics, London had none. Adjured Withers: "Good banking is produced not by good laws but by good bankers."

Well said, Withers! And what makes a good banker is more than skill. It is also the fear of God, or, more specifically, accountability for the solvency of the institution that he or she owns or manages. To stay out of trouble, the general partners of Brown Brothers Harriman, Wall Street's oldest surviving general partnership, need no regulatory pep talk. Each partner is liable for the debts of the firm to the full extent of his or her net worth. My colleague Paul Isaac, who is with me today—he doubles as my food and beverage taster— has an intriguing suggestion for instilling the credit culture more deeply in our semi-socialized banking institutions.

We can't turn limited liability corporations into general partnerships. Nor could we easily reinstate the so-called double liability law on bank stockholders. But what we could and should do, Paul urges, is to claw back that portion of the compensation paid out by a failed bank in excess of 10 times the average wage in manufacturing for the seven full calendar years before the ruined bank hit the wall. Such a clawback would not be subject to averaging or offset one year to the next. And it would be payable in cash.

The idea, Paul explains, is twofold. First, to remove the government from the business of determining what is, or is not, risky—really, the government doesn't know. Second, to increase the personal risk of failure for senior management, but stopping short of the sword of Damocles of unlimited personal liability. If bankers are venal, why not harness that venality in the public interest? For the better part of 100 years, and especially in the past five, we have socialized the risks of high finance. All too often, the bankers who take risks don't themselves bear them. By all means, let the capitalists keep the upside. But let them bear their full share of the downside.

In March 2009, the Financial Times published a letter to the editor concerning the then novel subject of QE. "I can now understand the term 'quantitative easing,' wrote Gerald B. Hill of Stourbridge, West Midlands, "but . . . realize I can no longer understand the meaning of the word 'money.'"

There isn't time, in these brief remarks, to persuade you of the necessity of a return to the classical gold standard. I would need another 10 minutes, at least. But I anticipate some skepticism. Very well then, consider this fact: On March 27, 1973, not quite 39 years ago, the forerunner to today's G-20 solemnly agreed that the special drawing right, a.k.a. SDR, "will become the principal reserve asset and the role of gold and reserve currencies will be reduced." That was the establishment— i.e., you—talking. If a worldwide accord on the efficacy of the SDR is possible, all things are possible, including a return to the least imperfect international monetary standard that has ever worked.

Notice, I do not say the perfect monetary system or best monetary system ever dreamt up by a theoretical economist. The classical gold standard, 1879-1914, "with all its anomalies and exceptions . . . 'worked.'" The quoted words I draw from a book entitled, "The Rules of the Game: Reform and Evolution in the International Monetary System," by Kenneth W. Dam, a law professor and former provost of the University of Chicago. Dam's was a grudging admiration, a little like that of the New York Fed's own Arthur Bloomfield, whose 1959 monograph, "Monetary Policy under the International Gold Standard," was published by yourselves. No, Bloomfield points out, as does Dam, the classical gold standard was not quite automatic. But it was synchronous, it was self-correcting and it did deliver both national solvency and, over the long run, uncanny price stability. The banks were solvent, too, even the central banks, which, as Bloomfield noted, monetized no government debt.

The visible hallmark of the classical gold standard was, of course, gold—to every currency holder was given the option of exchanging metal for paper, or paper for metal, at a fixed, statutory rate. Exchange rates were fixed, and I mean fixed. "It is quite remarkable," Dam writes, "that from 1879 to 1914, in a period considerably longer than from 1945 to the demise of Bretton Woods in 1971, there were no changes of parities between the United States, Britain, France, Germany—not to speak of a number of smaller European countries." The fruits of this fixedness were many and sweet. Among them, again to quote Dam, "a flow of private foreign investment on a scale the world had never seen, and, relative to other economic aggregates, was never to see again."

Incidentally, the source of my purchased copy of "Rules of the Game" was the library of the Federal Reserve Bank of Atlanta. Apparently, President Lockhart isn't preparing, as I am—as, may I suggest, as you should be—for the coming of classical gold standard, Part II. By way of preparation, I commend to you a new book by my friend Lew Lehrman, "The True Gold Standard: A Monetary Reform Plan without Official Reserve Currencies: How We Get from Here to There."

It's a little rich, my extolling gold to an institution that sits on 216 million troy ounces of the stuff. Valued at $42.222 per ounce, the hoard in your basement is worth $9.1 billion. Incidentally, the official price was quoted in SDRs, $35 to the ounce—now there's a quixotic choice for you. In 2008, when your in-house publication, "The Key to the Gold Vault," was published, the market value was $194 billion. Today, the market value is $359 billion, which is encouraging only if you personally happen to be long gold bullion. Otherwise, it strikes me as a pretty severe condemnation of modern central banking.

And what would I do if, following the inauguration of Ron Paul, I were sitting in the chairman's office? I would do what I could to begin the normalization of interest rates. I would invite the Wall Street Journal's Jon Hilsenrath to lunch to let him know that the Fed is now well over its deflation phobia and has put aside its Atlas complex. "It's capitalism for us, Jon," I would say. Next I would call President Dudley. "Bill," I would say, pleasantly, "we're not exactly leading from the front in the regulatory drive to reduce the ratio of assets to equity at the big American financial institutions. Do you have to be leveraged 89:1?" Finally, I would redirect the efforts of the brainiacs at the Federal Reserve Board research division. "Ladies and gentlemen," I would say, "enough with 'Bayesian Analysis of Stochastic Volatility Models with Levy Jumps: Application to Risk Analysis.' How much better it would please me if you wrote to the subject, 'Command and Control No More: A Gold Standard for the 21st Century.'" Finally, my pièce de résistance, I would commission, staff and ceremonially open the Fed's first Office of Unintended Consequences.

Let me thank you once more for the honor that your invitation does me. Concerning little Grant's and the big Fed, I will quote in parting the opening sentences of an editorial that appeared in a provincial Irish newspaper in the fateful year 1914. It read: "We give this solemn warning to Kaiser Wilhelm: The Skibbereen Eagle has its eye on you."

A Gold Standard?

The Casey Research Conference I am speaking at this weekend is a hotbed of gold bugs who, like Jim Grant, argue forcefully for a return to the gold standard. And given the chaos and insistent inflation over time that the Federal Reserve and fiat currency have produced, it is hard to argue that the current system is one that should be encouraged. And I don't!

But neither do I have a starry-eyed yearning for the chaos of the gold-standard period. There was a reason that hard-money men like Glass helped formed the Federal Reserve. But the Federal Reserve did not do all that well in the aftermath of 1929, and I think we shall look back in 20 years and not be all that pleased with our own current version.

I think I tend to agree more with Irving Fisher, arguably the greatest economist of the last century, who, writing in the late '30s, after observing the Great Depression and the actions of the Federal Reserve, noted that the best and only way to deal with a credit bubble was to prevent it from happening. Once they develop, there is no easy, painless way back. "Good banking is produced not by good laws but by good bankers."

Carlsbad, Tulsa, Chicago, and Atlanta

Tonight I am in Fort Lauderdale with many old friends at the Casey Research Summit. David Galland runs a first-class conference with an A-list group of speakers and wonderful attendees, many of whom have been coming for years. Tonight I had the pleasure of slipping off with David and his business partner Olivier Garret, Doug Casey, Rick Rule, and Porter Stansberry. Porter made a very interesting prediction about $40 oil today, and there was a lively conversation about Peak Oil. I finish this letter basking in the aftermath of friendship, great conversation, and good food. I must admit that the travel does sometimes get a little hard, but days like today are a great pleasure and worth the effort.

Tuesday night I was in DC and had dinner with Jonathan Golub, chief US market strategist at UBS. Jonathan can tell some great stories and has a very deep knowledge of the markets. We were on a panel together the next morning at the IMCA conference, along with Dave Kelly (chief market strategist at JP Morgan), who exudes a natural, good-natured Irish charm to accompany with his uber-bullish views.

I will be in Atlanta May 23rd, speaking at a luncheon hosted by my good friend Cliff Draughn of Excelsia, along with Steve Blumenthal of CMG. You can learn more by dropping a note to .(JavaScript must be enabled to view this email address). I will post more in later letters, but seating will be limited so I suggest you send that note soon.

I will also be with Steve in Philadelphia on June 4-5 for his CMG Advisor Forum. More on that to come.

I get home Sunday evening in order to get ready for my own annual conference, this year in Carlsbad, California and, as always, co-hosted by my long-standing partners Altegris Investments. I think this is our 9th annual Strategic Investment Conference (where has the time gone?). When we started doing the conferences, my intention was to create a conference that I would want to attend. Each year I walk away wondering how we can possibly have a better conference the next year, but each year we seem to do so. We went to a new venue this year to hold a larger group, but even so had to turn away hundreds of people. Next year we are going to an even larger facility, as both Jon Sundt (founder and CEO of Altegris) and I hate having to limit attendance.

This conference is shaping up to be our best ever. Which is saying a lot. Dr. Niall Ferguson, Marc Faber, Mohamed El-Erian, David Rosenberg, Dr. Lacy Hunt, David McWilliams, Dr. Woody Brock, Jeff Gundlach, David Harding, Jon Sundt, Barry Habib, and your humble analyst, plus a few other special guests here and there. And the best part is the attendees. So many friends who have been coming for so many years, from all over the world. It will be lots of fun.

Then I leave early the next morning to get to Tulsa to watch my daughter Abbi graduate from college (ORU), and then on Sunday it's up to Chicago to speak at the International CFA conference on Monday morning. Some whirlwind meetings for Bloomberg, and then I am home for a few weeks! Hopefully in time to see the Mavericks play Oklahoma City in the first round of the NBA playoffs. Somehow it seems wrong saying "Oklahoma City" and "NBA playoffs" in the same breath, but they have had a great year and so far seem to have our number. But it is time for our "old men" to step it up.

And speaking of time, it is time to hit the send button. It is late and I have to get up to listen to Jim Rickards and Harry Dent speak and then moderate their debate on inflation vs. deflation. I will be a good moderator, as when I am asked whether I believe in inflation or deflation, I simply answer "Yes." The rest of the answer is just niggling details.

Your wondering if this letter means I don't get invited to Jackson Hole again analyst,

John Mauldin
John@FrontlineThoughts.com

Copyright 2012 John Mauldin. All Rights Reserved.

Share Your Thoughts on This Article

Send to a Friend | Print Article | View as PDF | Permissions/Reprints | Previous Article
Thoughts From the Frontline is a free weekly economic e-letter by best-selling author and renowned financial expert, John Mauldin. You can learn more and get your free subscription by visiting www.JohnMauldin.com.

Please write to johnmauldin@2000wave.com to inform us of any reproductions, including when and where copy will be reproduced. You must keep the letter intact, from introduction to disclaimers. If you would like to quote brief portions only, please reference www.JohnMauldin.com.

To subscribe to John Mauldin's e-letter, please click here:
http://www.frontlinethoughts.com/subscribe

To change your email address, please click here:
http://www.frontlinethoughts.com/change-address

If you would ALSO like changes applied to the Mauldin Circle e-letter, please include your old and new email address along with a note requesting the change for both e-letters and send your request to wave@frontlinethoughts.com.

To unsubscribe, please refer to the bottom of the email.

Thoughts From the Frontline and JohnMauldin.com is not an offering for any investment. It represents only the opinions of John Mauldin and those that he interviews. Any views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest and is not in any way a testimony of, or associated with, Mauldin's other firms. John Mauldin is President of Business Marketing Group. He also is the President of Millennium Wave Advisors, LLC (MWA) which is an investment advisory firm registered with multiple states, President and registered representative of Millennium Wave Securities, LLC, (MWS) member FINRA, SIPC. MWS is also a Commodity Pool Operator (CPO) and a Commodity Trading Advisor (CTA) registered with the CFTC, as well as an Introducing Broker (IB) and NFA Member. Millennium Wave Investments is a dba of MWA LLC and MWS LLC. This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document. Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each article. Mauldin companies may have a marketing relationship with products and services mentioned in this letter for a fee.

Note: Joining the Mauldin Circle is not an offering for any investment. It represents only the opinions of John Mauldin and Millennium Wave Investments. It is intended solely for investors who have registered with Millennium Wave Investments and its partners at www.MauldinCircle.com or directly related websites. The Mauldin Circle may send out material that is provided on a confidential basis, and subscribers to the Mauldin Circle are not to send this letter to anyone other than their professional investment counselors. Investors should discuss any investment with their personal investment counsel. John Mauldin is the President of Millennium Wave Advisors, LLC (MWA), which is an investment advisory firm registered with multiple states. John Mauldin is a registered representative of Millennium Wave Securities, LLC, (MWS), an FINRA registered broker-dealer. MWS is also a Commodity Pool Operator (CPO) and a Commodity Trading Advisor (CTA) registered with the CFTC, as well as an Introducing Broker (IB). Millennium Wave Investments is a dba of MWA LLC and MWS LLC. Millennium Wave Investments cooperates in the consulting on and marketing of private and non-private investment offerings with other independent firms such as Altegris Investments; Capital Management Group; Absolute Return Partners, LLP; Fynn Capital; Nicola Wealth Management; and Plexus Asset Management. Investment offerings recommended by Mauldin may pay a portion of their fees to these independent firms, who will share 1/3 of those fees with MWS and thus with Mauldin. Any views expressed herein are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest with any CTA, fund, or program mentioned here or elsewhere. Before seeking any advisor's services or making an investment in a fund, investors must read and examine thoroughly the respective disclosure document or offering memorandum. Since these firms and Mauldin receive fees from the funds they recommend/market, they only recommend/market products with which they have been able to negotiate fee arrangements.

PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS, INCLUDING HEDGE FUNDS, YOU SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS: OFTEN ENGAGE IN LEVERAGING AND OTHER SPECULATIVE INVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS, CAN BE ILLIQUID, ARE NOT REQUIRED TO PROVIDE PERIODIC PRICING OR VALUATION INFORMATION TO INVESTORS, MAY INVOLVE COMPLEX TAX STRUCTURES AND DELAYS IN DISTRIBUTING IMPORTANT TAX INFORMATION, ARE NOT SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER. Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop.

All material presented herein is believed to be reliable but we cannot attest to its accuracy. Opinions expressed in these reports may change without prior notice. John Mauldin and/or the staffs may or may not have investments in any funds cited above as well as economic interest. John Mauldin can be reached at 800-829-7273.

EASY UNSUBSCRIBE click here:
http://www.frontlinethoughts.com/unsubscribe
Or send an email to wave@frontlinethoughts.com
This email was sent to
You subscribed at www.johnmauldin.com
Thoughts From The Frontline | 3204 Beverly Drive | Dallas, Texas 75205

kevin blundell

Timing is everything. While I await the day of mass arrests, I am sure that it is coming. My biggest concern is that there are many in the US and else where who will panic and will see the arrests as an attack on them, their beliefs, etc., when the arrests are to be a good thing in the end. I have researched the net and spoken to a few hardliners, bible thumpers and the like, who don't think that Drake and his followers are being honest with the public. The see it as more of the same from the cabal, more manipulation that will ultimately give them more control. It is hard to argue with them as there is definitely a lack of hard evidence to suggest otherwise. But, I must follow my heart on this one and my heart is telling me that Drake is one of the good guys. I hope that the chaos that is likely to happen will not harm to many, but I know that some harm is going to be done, for the better good, in the end. Meditate on peace and love everyone.

ムシ


小沢無罪・・。


こんな、おじさんだれも待ってません。


大丈夫なんです。


もう創めてますからね。

Scott

So far Drake has been very compelling and extreamly intelligent on a wide rainge of subjects. His entire message is based on a series of events to hapen this year. If it does not hapen he and his message are finished so it's hard to see how he could be profiting in any way from a scam. There has been some evadince he has provided like the documents many of the states have saint to the Hague as a notice of sovereignty from the corporate United States. The fact that CEOs and major bankers are fleeing in droves is more than apparent.

But recently he said something that astonished me. David wilcock reported on an event that entailed the destruction and or forceful evacuation of several underground facilities by extraterrestrial forces. The astonishing thing Drake said was that if we wanted to anyone could go to one of these locations and investigate for ourselves. He said that they are unguarded and compleatly abandoned.

Now that seems to be something worth looking into. Who wants to explore a vast underground facility and risk possibly being arrested by the government? Any takers?

SickOfThisShit

I would love to believe the bad guys are in "full retreat" - but almost weekly now, Obama signs some executive order getting us closer and closer to shackles. This is extreme, and something needs to happen N-O-W. Where are your ninjas, Ben? I have been reading your stuff for 3 years now, and -

Atom Seven

Due to success of the 21st of April meeting, the second international presentation meeting for governments and space institutes are being planed for the 6th of September 2012 at the Keshe Foundation centre in Belgium.

In the 21st meeting we have galvanised to bring governments of a continent, which the Foundation can do the most positive changes has already started.

By nature of our work, we will not release any information about these meetings and the same has been asked of the ambassadors and officials whom attended the 21st meeting.

Please keep the information flow to your governments, as your work brings the change and not us talking to governments, this we have seen to work as we inform the governors of the nations and at the same time they know that their public knows about what is going on with the technology.

This technology as of the 21st of April shall not be shelved, but all efforts will be made to control it.

Through our release of information and informing directly the governments about the capabilities of this technology we have brought about two international peace talks forward, which we know about and as has been in the news as of late.


Important notice
Through presidential decree signed into law by His Excellency president Obama early this week, with this decree now the technologies developed by Keshe Foundation and similar to it for space technology and their use by other Governments has become a criminal offence.

Which, this means that scientists from this week cannot release their technology to public or any governments any more unless is beneficial for use in war and in benefit of western arm manufactures nations.

We do not accept such castration of science and we ask the United state of America's government for clear clarification of this decree by the White House.

Is this law to silence the Keshe Foundation and other research organisations or can American bring pressure that only their technology can be accepted throughout the world.

This act of the presidential decree is against international scientific freedom for development, research and information sharing and this is a gagging order of scientific organisations like ours.


Please inform your press.

M T Keshe http://www.keshefoundation.com

Melba

Good morning Ben,
I have been watching your videos since last year, I watched the David Wilcock video, I am wandered when do the Cabal people will be put in jail or hang them, they were doing the same thing with babies, babies were sacrified, they are killing millions of people right now with this synthetic virus created by them and the chemtrails. Please let me know. thanks

vikingterrst

I know of a Drake as a powerful musician in the states, friends of kanye west, lil' Wayne as well. Highly gang-related people. Bloods. I'm sure the xabalist bought the entire NFL etc., its enormous, becuse they r famous n would be a mystry to the public if something happened to these slave artist that soul is owned by the blood suckers.

Da Raw Journalist

STOP COMPLANINIG & BEING A PUSH OVER
HOLD THESE DOMESTIC TERRORIST POLITICIANS ACCOUNTABLE ,
WHY ARE ALLOWING THIS 2 HAPPEN..
PEOPLE WAITING 4 THIS DRAKE DUDE , WHY ARENT WE DOING THIS OUR SELFS ... BEN FULFORD , DAVID WILCOCK ARE READY GIVE US THE REMEDY ,EXPOSED WHATS GOING ON IN THE FED , IRS , IMF , FINANCIAL TERRORIST
SO LETS STOP BEING LAZY ASS COMPANING BITCHES & EXERCISE UR RITE & MAKE CITIZENS ARREST , STOP WAITING ON THE WHITE DRAGON FAMILY ...IT LIKE RON PAUL ,U KNOW HE IS NOT GETTING ELECTED BECAUSE AMERICAN'S WILL ALLOW VOTER'S FRAUD 2 CONTINUE 2 ALLOW THIS 2 HAPPEN , SO RON PAUL IS JUST INFORMING PEOPLE 2 WAKE UP

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.