Germany retreats into the Middle Ages as its economy declines
“when social and political circumstances change too rapidly for people to keep up, the result tends to be collective manias, social panics, and pseudo-religious revivalist millenarianism.”
What’s gone wrong with Germany?The country faces unrest, economic woe and a hard right on the rise. The mood is dire — and there are worried comparisons to the Weimar years
The coalition has been plagued by unforced errors, typified by a hugely unpopular attempt to force homeowners to install heat pumps instead of gas or oil boilers. It has been riddled with public infighting and has presided over the worst economic performance in the G7
“Rust Belt on the Rhine.”
Confronted by a toxic cocktail of high energy costs, worker shortages and reams of red tape, many of Germany’s biggest companies — from giants like Volkswagen and Siemens to a host of lesser-known, smaller ones — are experiencing a rude awakening and scrambling for greener pastures in North America and Asia. https://www.politico.eu/article/rust-belt-on-the-rhine-the-deindustrialization-of-germany/
Utilities are struggling to upgrade transmission networks to support the surging requirement for electricity to power data centers. CBRE says data center construction completion timelines have been extended by 24 to 72 months due to power supply delays.
“This is our biggest challenge over the next 3-4 years, and a limiting factor on how fast we can continue to grow,” Digital Bridge CEO Marc Ganzi told Bloomberg Markets. “If you’re not building data centers adjacent to low-cost renewable power, you’re not going to have a fruitful conversation with the hyperscalers and cloud players. It’s an absolute must if we want to continue to do repeat business with our customers.”
“We can’t rely on just the grid anymore,” said Ganzi. “We’ve got to be able to take things into our own hands, protect our supply chain, and deliver for our customers.”
On the road to Central Bank Digital Currency (CBDC’s) by metallionnaire
CBDCs – A Cautionary TaleFor those of us that study sound money, much of the following may be familiar territory but for most people, it is a strange new world to which they have never given much thought. Please feel free to distribute this short essay, if you feel it is worthy, to any friends or family members in the hopes it opens their eyes and minds to see what might be coming.
Banks and militaries have always utilized the leading-edge technologies available at any given time. This may not be so surprising when one considers that these two institutions are charged with protecting the nation’s realm and riches – arguably the two most important assets that protect a nation’s sovereignty.
In the following discussion, we will examine how evolving technology has changed the way in which we interact with banks and the profound impact this is having on the way we live. My initial working title for this essay was “From Sovereignty to Servitude” – I think it succinctly describes the path that we are on.
The day-to-day operations of banking remained more or less stable for the first sixty years of the twentieth century. Depositors were issued a pass book for each bank account they held with the bank and these provided physical proof of their current account status. A one-line ledger-entry was recorded in handwriting by a bank teller for each deposit, withdrawal or interest payment in chronological order in the book. The bank kept a corresponding paper ledger for each account holder and every deposit and withdrawal was recorded by the bank teller on the customer’s account ledger page at the time that a transaction occurred. Whenever a passbook or a bank’s ledger page was filled a new one was issued and this record-keeping was strictly maintained and verified on a daily basis. Tellers were not permitted to leave the bank at night until their ledgers balanced and stories abounded of midnight sessions trying to find an errant entry until the omission was discovered and the books balanced. The only tools available to resolve any imbalance was a hand-cranked adding machine and the teller’s own mathematical and deductive skills and, when absolutely necessary, the involvement of an account supervisor or bank manager. It was a tedious, labor intensive system and required banks to seek employees who were attentive, dedicated, mathematically skilled and clear headed.
The technological limitations at the time placed significant constraints on the banks’ ability to manage anything more complex than a single ledger-entry for each deposit and withdrawal, plus a single-line entry for an annual or semi-annual calculation of interest accrued. Even this was a challenging exercise from the bank’s perspective. To calculate interest, an account manager would studiously survey each client’s ledger pages, seek the line where the amount held on balance was the minimum for the period in consideration and then perform a simple arithmetic calculation, based on the bank’s current interest rate policy and, then, enter a one-line ledger-entry indicating the interest that had accrued. Whenever a customer came to make a subsequent transaction, the interest would be penned in, as a one-line ledger-entry in their pass book.
This handwritten, single ledger-entry system applied to citizens and businesses, alike, and represented the entire relationship most people had with their bank. Certainly, the banks were also involved in arranging mortgages and loans but we will overlook that aspect for this discussion. For most clients, the only two forms of transactions were in the form of cash or checks. When a customer withdrew cash, the bank recorded the date and the amount and that was it. The client could take that cash and use it to make multiple purchases in the community over an extended number of days. None of these transactions were recorded or known to the banks or to any other institutions, either private or public. Over the course of a week, for example, the customer might make ten, fifteen, twenty or more purchases of gasoline, groceries, rent, sundries, entertainment, medicines, etc., and all of that would be anonymous and undocumented aside from the participants to the transaction. In this system, a single ledger-entry at the bank encompassed multiple transactions in the community. In the same manner, businesses acquired cash or checks for their multiple transactions over the course of each business day and their deposit book would record the specific checks received and the aggregate totals for their cash sales. Again, one bank ledger-entry represented multiple transactions by the business owner. The banks had little or no idea who their account holders were transacting with or for what or for how much money.
It wasn’t a case that banks were not interested in acquiring more information but, rather, that the system in use was the optimum system they could maintain, given the technology of the time and the financial costs of maintaining the ledgers required.
Fast forward to the late 1960s and the first commercially-capable computers began to augment the ability for banks to maintain more comprehensive records. For the first time, the processing power became available to maintain a separate ledger entry for every transaction and banks quickly moved to capitalize on this ability – enter the personal credit card! Credit cards were issued to creditworthy customers with strict monthly limits but these extended the right to customers to self –authorize small debt obligations, on demand, to make purchases. This was a great advancement for the banking industry. It was sold as a convenience to clients but also enabled the banks, for the first time ever, to track every transaction.
Other banking features were introduced that included daily interest on premium savings accounts, rewards programs, and a slew of other incentive programs, all made possible by the efficiency of the new technologies available. Banking was invading the private transactional space of its clients in ways never before dreamed possible.As computing power evolved, debit cards and other “conveniences” were offered to clients to make purchases seamless and spontaneous. All the while, the banks were developing more detailed information on client’s transactions and financial status. Special “rewards-based” credit cards were issued that incentivized the use of credit and debit card transactions over cash payments as these had the dual advantage to the bank of providing more information about buying behavior and they also maximized the fees and interest the banks collected. Every transaction became a source of revenue for the banks in ways that never existed when cash was king.
By the 1980s, the use of cash for transactions began to decline rapidly in favor of the convenience of debit and credit cards. Technology now made it quite easy for banks to maintain ledger entries for each and every transaction for each customer and every business client. Monthly statements even provided clients with breakdowns by transaction type to provide an overview of where expenditures (or receipts in the case of vendors) were being allocated. This appeared to be for the benefit of clients but you can be assured the banks were using this information to develop marketing models and projections of various kinds. The banks could now maintain a database on every client indicating where they were spending their money, what they were buying, what times of day and days of the week they were active, and much more. This information enabled banks and business to build models on purchasing behavior and use that information to target advertising that was specific to particular clients. Cash became optional and many people ventured out on a daily basis with only their bank cards as a means of payment. The days of anonymous transactions were a thing of the past for most people.
The continual march toward greater computing power in the banking industry led to the development of sophisticated transactional databases that went far beyond a listing of purchases and sales. Banks were no longer content to just keep tabs on transactions. They began to develop pattern-recognition software that had predictive capabilities. Governments and banks, alike, had a special interest in developing client-based matrices that could provide information on what clients were doing, where they were traveling, who they were interacting with, what diseases they might be treating, what they are likely to do next Tuesday at 7pm. A symbiosis of banking and government interests began to emerge and this accelerated dramatically in the aftermath of 911.
Suddenly, making an anonymous purchase or storing cash became a suspicious activity. Anyone who sought privacy in their financial matters was suspect. Information technology in the twenty-first century was now pervasive and powerful enough to monitor all communications, all transactions, all movements, all internet searches and more. The idea that people could make anonymous purchases without any tracking information was now seen as contrary to the interests of the nation and deemed to be a potential threat. While cash has always been available, access to cash in larger quantities are recorded and often restricted or even prohibited. ALL cash transactions are viewed suspiciously. None of this surveillance state would have been possible without the technology platforms that support it.
As we creep toward the first-quarter mark of this new century, a new reality is confronting us. Once again, the technology has advanced and the computing power to maintain very complex database ledgers is at hand. Coupled with the institutionalized paranoia that now pervades every crevice of government, there is a move afoot to enlarge the behavioral matrix attached to our transaction records. To do this, cash and all cash-equivalents must be banned. Only digital forms of money can be tolerated if “threats” are to be eliminated – for it is in those dark alleys of cash transactions where the terrorists and truth-deniers are presumed to reign!
The new system being proposed is innocuously labelled as a Central Bank Digital Currency (CBDC’s). This new form of digital money would be sanctioned by governments but issued by central banks and be proposed as a solution to the economic imbalances that have emerged in our society. It would be sold as a benefit but it is the singularly most dangerous control mechanism ever devised, enabled only by the vast technological structures that have evolved over the past half-century.
Put as simply as possible a Central Bank digital currency system would merge three separate database capabilities into one massive integrated transactional/behavioral matrix that would double as the most advanced social control mechanism ever imagined. The existing systems used for tracking transactions would form the basis of the records-keeping of transactions. An additional matrix, specific to each person, would track their compliance with regulations, their political leanings, religious beliefs, travel itineraries, social acquaintances, purchasing tendencies and other personal attributes that would calculate an ongoing “social score” that could be used to limit or redirect the ability to transact, A third matrix would reward or impose compliance to a host of specific governmental programs and initiatives.
As we know, governments are actively promoting the purchase of electric vehicles. With a CBDC system they could input variables into the database that would automatically generate a 20% reward applied to any “monies” directed toward such a purchase. Conversely, the purchase of meat over a specified “recommended limit” might shrink your purchasing power by 50%. Hoarding might be denied at the checkout wicket with hard limits imposed on any items the government may want to control. Fossil fuels purchases, for example, might be severely curtailed. Money would become elastic, time-sensitive, and extinguishable, based on your past behavior or institutionally-imposed incentives. Your “money” would become a variable quantity based on a litany of issues and variables, over which you would have no control.
CBDCs enable banks and governments to incentivize, limit or redirect behavior at their whim. They would gain total control over your spending habits and lifestyle. Anonymity would evaporate entirely and any deviation from the directives of the overlords who control the system might deny you access to the basics of life despite an apparent cash balance that appears in your account. Digital fines or penalties for non-compliance could make it impossible to access your account or to reduce your account to zero, with no recourse, at the whim of an agent who decides that your actions are no longer acceptable. Once this Pandora’s Box is opened, all sorts of preferential or punitive treatment is possible and fair play or logic are not to be assumed. Some people might be given extra buying power for favorable actions on their part. Welfare, reparations or other special treatment might be granted surreptitiously, without public consensus. Conversely, money could be denied or extracted from your account for reasons that might defy logic or any semblance of fair play – remember the Canadian Truckers? Expiry dates could be imposed on some (or all) of your money making it necessary for you to spend it or lose it. All sorts of limitations could be placed on ones’ accounts and these could be uniquely imposed on one person or group of people at the will of the banks or governments that coordinate the system.
The bankers are certain to make every effort to allay our fears and make it appear that CBDCs are a very beneficial system at the outset but, once installed, there will be no escape from the system. Converting digital money to hard assets might prove to be impossible after the barn door is closed. Governments might say that they will guarantee our rights will be protected but look around and ask yourself if there is any evidence that any governments honor their word on anything!
All of this is scary stuff and it is not the product of a wild imagination or some conspiracy theory. Various institutions have already made public announcements of their plans to introduce CBDCs at some point. Some countries have already announced CBDC trial runs in the near future. The concept is being soft-pedaled as a means of convenience and a way for governments to issue welfare payments, incentive checks and rebates in an orderly and efficient manner but it is the proverbial wolf in sheep’s clothing. Once the system is widely adopted, we will all be corralled into a digital prison that exceeds any horror stories we can conjure.
Individual resistance might be futile but there is still the opportunity to GOTS – at least in part. This acronym was postulated by the late Jim Sinclair and was his call to ‘Get Out Of The System’ as much as possible, while you still can. Storing wealth in tangible assets that can be kept outside the banking system may be a lifeline to future survival. GOTS is a major challenge for all of us urban dwellers but it is sage advice to follow, in any small way that you can!
Sound money and hard assets will give you sovereignty over your life. CBDCs will inevitably lead to servitude.
Once CBDCs become pervasive, I see barter as the only path back to monetary sovereignty. I will post some thoughts on strategies to Build Back Barter, in the near future.
The AI response to this lengthy essay:
As outlined in your detailed discussion, the evolution of technology in the banking sector reflects a significant shift from traditional ledger systems to the highly interconnected and data-driven systems we have today. Your concern about the potential ramifications of Central Bank Digital Currencies (CBDCs) on individual privacy and financial autonomy is valid.
Here’s a summarized breakdown of the key points:
1 Traditional Banking (Pre-1960s):
2 Introduction of Computers and Credit Cards (Late 1960s):
3 Shift from Cash to Digital Transactions (1980s):
4 Advancements in Technology and Surveillance (Post-2000s):
5 Central Bank Digital Currencies (CBDCs) and Concerns (21st Century):
Your suggestion of “Getting Out Of The System” (GOTS) by storing wealth in tangible assets aligns with concerns about the potential risks associated with CBDCs. The idea of barter as a path back to monetary sovereignty in a world dominated by digital currencies is an interesting perspective.
In conclusion, your analysis provides a thought-provoking exploration of the historical and technological developments in the banking sector, culminating in concerns about the implications of CBDCs on individual financial autonomy and privacy.
Larry Taunton’s deep dive into the danger of the World Economic Forum.
I have long held the view that Klaus Schwab’s WEF represents a clear and present danger to global society. Taunton does us a favor by attending their meetings in Davos and giving us a birds-eye view into ‘pure evil.’
I can’t entirely agree with Taunton’s opinions, but his 38-minute video is a must-see for all freedom-seeking individuals.
“Even with the significant recent auctions, this is the calm before the storm.
Treasury net coupon issuance is scheduled to pickup 50% in 2Q to roughly 500bln, a flow so big that it can’t be front run”
“Another spicy Treasury auction, this time in the 20Yr”:
“Dealers were saddled with 21% of the auction, *double from Nov.*”https://twitter.com/jameslavish/status/1760414787274731622
Science and research in America:
NIH research: https://www.researchallofus.org/
NIH research paper published in Nature:
Genomic data in the All of Us Research ProgramThe All of Us Research Program Genomics Investigators
“Here we describe the programme’s genomics data release of 245,388 clinical-grade genome sequences. This resource is unique in its diversity as 77% of participants are from communities that are historically under-represented in biomedical research and 46% are individuals from under-represented racial and ethnic minorities. All of Us identified more than 1 billion genetic variants, including more than 275 million previously unreported genetic variants, more than 3.9 million of which had coding consequences.”
Berkeley geneticist Michael Eisen immediately demands that the paper be taken down:
“This paper from @AllofUsResearch needs to be retracted by @nature immediately.
1440 media ran a story today about an important advancement in gene editing:
New advanced CRISPR tool edits strands of short-lived RNA instead of DNA, allowing gene editing without the risk of causing permanent errors in a cell’s genetic code (More) | CRISPR 101 (More)
Advances in therapeutics seem almost daily now:FDA Approves 1st T-Cell Therapy For MelanomaThe therapy was granted accelerated approval for its use in treating patients with metastatic and unremovable melanoma.
Michael Howell CrossBorder Capital and author of “Capital Wars” on the coming storm in March and monetary hedges “the party will continue but stay near the exit door”
The Democratic National Committee will host the 2024 Democratic National Convention at Chicago’s United Center from August 19 to 22.
The Dems say that Illinois, along with neighboring Wisconsin, Michigan, and Minnesota, form the “blue wall… crucial to the 2020 victory of President Biden and Vice President Harris.”
What are the odds that the Biden-Harris team will even make it through the week? Based on national polls, I think the odds are far less than 50:50. I believe the names Michelle Obama and Gavin Newsom will be 1-2 or 2-1 by the time the convention closes. I’ll make a friendly bet on it.
The Life Ahead
It is a beautiful, deeply meaningful movie about life featuring the iconic Sophia Loren in her late 80s.
it’s on Netflix. I recommend it.
The Fani Willis Testimony in the Georgia hearing is a law school case study in itself.
I watched some of it live and caught the highlights on various news channels. Mesmerizing.
Whether you believe her or not, and there are extreme views on both sides, I was struck that here, finally in America, is a worthy Trump debate opponent. I’m sure she’d be equally emphatic in her response for every unflattering and demeaning nickname he’d call her.
I could see a ‘Ready to Rumble’ Netflix series introduced by ring announcer Michael Buffer. But not just entertainment, as I see it, at stake would be democracy.
A warning to outspoken Americans like Vivek Ramaswamy.
As long as Ramaswamy is sucking up to Trump, he’ll be ok. But if and when Trump took presidential power in the US, he would demand flattery from Ramawamy and the entire Congress, legal system, and military. That’s the way it is in dictatorships.
A special Valentine’s Day card.
I may have mentioned this before, but Pat has given me a special Valentine’s Day card for many years. It’s special because, for many years, it has been the same card. I joke that it took me a few years before realizing that. Today, Pat told me how many years it’s been since she first put the card on the breakfast table. Would you believe it was 1976! Forty-eight years! We were married in 1969 and started dating in 1963 when Pat was still in high school. I returned home for Christmas and was invited to a party. My close friend had taken her to that party, but I made sure I was the person taking her home. We dated every day until I returned to uni. I knew that Christmas we’d be together for a very long time. Some things last — like that Valentine’s card!
The Democratic-led U.S. Senate on Tuesday passed a long-sought $95.34 billion military aid package for Ukraine, Israel and Taiwan, although it faced an uncertain path ahead in the Republican-controlled House of Representatives.
Meanwhile in America
Poorest Region of America – What It Really Looks Like
Jackson, Mississippi Is The Worst Place I’ve Ever Seen
Kensington Ave Philadelphia
‘Stop the Steal’ should have been ‘Stop the Lies.”
No matter how much proof. No matter how many failed attempts in court. No matter how many debunked ies. Trump and his team knew the truth.
The ‘Fake’ candidate.
We better wake up…“Xi Jinping…has instructed the Communist Party to recruit ethnic-Chinese nationals of other countries in a quest to build international support and stymie political enemies.”
Canada Sam Cooper….Canadian Senator met with leaders affiliated to PRC espionage arm days before filing challenge to Foreign Interference CommissionOn February 3rd Senator Yuen Pau Woo met with community leaders reportedly subject to Chinese Overseas Affairs Officehttps://www.thebureau.news/p/canadian-senator-met-with-leaders
WATCH: American Executives Give Chinese President Standing Ovation In San Francisco
Xi dined with more than 300 American business executives.
Xi is the largest supplier of fentanyl to the world
The Drug Enforcement Agency estimates 90% of fentanyl comes from Chinese companies that not only operate legally inside China but are also subsidized and paid for by the Chinese communist Party
Congrats to Canadian golfer Nick Taylor.
Today, he won the 2024 WM Phoenix Open at TPC Scottsdale in Arizona after making clutch putt after clutch putt to win in a two-hole playoff.
I missed most of today as I was focused on the Super Bowl and some other really interesting developments happening in my life. But when Nick was down 3 with four holes to go, I thought he had the chance, and he made it happen.
Congrats to KC and Patrick Mahomes.
How can anybody bet against him? He just sealed the deal as one of the NFL’s all-time greats.
Terrific entertainment and a really good half-time show as well.
Getting my mind off the market and politics tonight has been a pleasure.
How many games suspended will Toronto Leafs Rielly get?
I may have been a Leaf fan for over 70 years, even at the worst of times. But I question this attachment after the incident last evening when Toronto’s Morgan Rielly went berserk after the opponent slapped the puck into an empty net with 5 seconds remaining in the game. He mugged the player with a devastating cross-check to the head. I am even more amazed that the Toronto coach and team captain said this criminal action was “appropriate.”
For anybody who lacks critical thinking ability, I will say that grandstanding is (a) not illegal in hockey and (b) a common practice after team icons Matthews and Marner score a meaningless goal. Would the Leaf coach, captain, and brain-dead fan base think it would be “appropriate” for a Ranger or Bruin thug to smash his stick into the head of Matthews or Marner because they were grandstanding after a goal?
For those who argue that hockey culture says that some things are just not done while others are, I say that whenever a player deliberately swings his stick against the head of another player, it’s no longer hockey. It’s a criminal act.
Our AI bet was predicted at 6 games #softBET
The Tucker Carlson interview of Putin has upset Western MSM.
I do not like the majority of Tucker Carlson’s opinions, but I accept his role as a journalist because, like us, I know every journalist has biases. He happens to favor Russia’s takeover of Ukraine and possibly the expansion of a Russian empire. I’ll listen to his views as objectively as my filters allow as long as the conversation remains civil.
“To EV or not to EV”, that is the question.
New York’s offshore wind industry faces a financial reckoning
The developers behind the offshore wind farms that are crucial to New York’s ambitious clean energy targets have taken a staggering series of financial losses in the last three months that add up to nearly $2 billion.
Similar debacles have unfolded up and down the northeast coast, in states such as Connecticut, Massachusetts and Rhode Island. Projects totaling more than a quarter of President Joe Biden’s 2030 goal for 30 gigawatts of offshore wind electricity have been canceled or are at risk of canceling power purchase agreements with states; two New Jersey projects were scrapped altogether.
Biden needs to be ‘scrapped’. His WEF-based policies in favor of ‘sustainable’ energy vs. fossil fuels ignores the costs. Cost-effective alternative solutions are possible but only when initiated by the private sector.
RIP Country Music Icon Toby Keith.
Life is short. Wow. This 62-year-old iconic recording artist last performed at a sold-out Las Vegas concert on December 14 with late-stage stomach cancer.
Mortgage lenders can no longer check US government official records to verify citizenship/legal status. They are on their own.
Deep fake world now:“The AI-faked passports and driver’s licenses show that the establishment’s antiquated identity system just can’t keep up with technology.Neither can its currency, its political system, its propaganda outlets, or even its military. Cryptocurrency, social media, cheap drones, and above all the internet itself…they’re collectively ending the old order” (Balaji)
“New: inside the underground site where “neural networks” churn out fake IDs– I tested, made two IDs in minutes– used one to successfully bypass the identity verification check on a cryptocurrency exchange– massive implications for crime, cybersecurity”
For those closely following the MAGA movement, this interview is essential viewing:
In the wake of the distressing events of January 6, I found this discussion with the Republican Speaker of the Arizona House of Representatives particularly startling. It delves into the attempts by Trump and Giuliani to unlawfully influence him in altering the results of the 2020 federal election.
US strikes 85 Iran militia-linked targets in Syria and Iraq. News about an hour old. US launches retaliatory strikes on Iranian-linked militia targets in Iraq and Syria | CNN Politics
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