Friday, September 9, 2011

Forgiveness, the FED, Bank of England, Bank of Japan, and ECB to coordinate actions, will they formally peg exchange rates?

9/9/2011 Portland, Oregon - Pop in your mints…
Much ink is being spilled today in anticipation of what may or may not happen as the 10th anniversary of the events that occurred on September 11, 2001.  Here at The Mint, we take the somewhat radical view of the Amish in response to tragic loss.  We must forgive.  An important part of forgiveness is to avoid making or observing a memorial to the offense.  Memorializing an event is to keep it present before us.
As the US Empire is now conducting at least three extremely expensive military adventures which have their origins in the events that occurred that fateful day, forgiveness is probably not on many people’s minds this weekend.  Meanwhile, millions of dollars are being spent to memorialize it.
We must forgive.  It is our opportunity to choose the tree of life over the tree of the knowledge of good and evil.  To repair the fateful error made in Eden.
Under the cover of this memorial, we sense that an extraordinary event will occur which will impact the fortunes of many in the US, England, Japan, and Europe and others outside their borders with exposure to their respective currencies.
The Event which we refer to is the coordinated debauchery of their currencies. 

For the past four years, the FED, BoE, BoJ, and ECB have been engaged in a desperate attempt to debauch (devalue) their currencies.  They have had the predictably mediocre to poor results that one would expect from efforts made by this rare hybrid of an agency which combines the laziness of the banking class with the incompetence of the governing class.

The goal seems simple enough.  Print money to pay existing debts and encourage people to spend and to take on new debt.  So simple, that each of these Central Banks is currently running at their own pace down this calamitous path with little regard to how the outside world is reacting.
Guess what?  The outside world is not reacting as expected.

What they did not take into account, at least until now, was that there is quite a bit of money to be made from the fact that they are all running at different paces down the same path.  The nature of international finance is such that one Central Bank’s unbridled effort to debauch its currency leads to an opportunity to profit by borrowing in that nation’s currency and purchasing one of the other three currencies, which undermines the debauchery of the currency that is being purchased. 

This is commonly known as the carry trade, and these large Central Banks have taken all of the guess work out of it for the past four years.
Stark, as most thinking persons, cannot stomach the debauchery in his midst
We suspect that these four Central Banks see the immediate need to eliminate interest rate spreads amongst their currencies which will force those who ply the carry trade to purchase currencies outside of this group.

In effect, this ultimate coordination of interest rate policies will cause these four currencies to “peg” to each other, which should assure that the debauchery of their respective currencies will continue unchecked and likely accelerate.

According to Bloomberg, there is speculation that this type of coordination, a de facto currency peg to the dollar, could begin this weekend at the G-7 Meeting.

Will another stealth disaster befall the US this weekend?  If these Central Banks somehow coordinate their collective debauchery of the currency, the economic devastation of millions will march on.

Perhaps this is why Juergen Stark has suddenly stepped down from the ECB.  It will be more than any caring Bundesbank official can stomach.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


P.S.  For more ideas and commentary please check out The Mint at

Key Indicators for September 9, 2011

Gold Price Per Ounce:  $1,856 PERMANENT UNCERTAINTY

Tuesday, September 6, 2011

The Swiss throw in the towel, Decide to Enter the Fiat Currency Battle Royal

9/6/2011 Portland, Oregon - Pop in your mints…
We spent the weekend attacking sections of our yard that had, until now, remained a wilderness reserve due to our inner laziness.  Trees, shrubs, ivy that had been allowed to grow unchecked all fell victim to our saw and lopper (which must be the best tool ever invented).  The yard now appears more barren, if not civilized, than before.

Like everything, it came at a price.  Our back may never be the same and working in such close company with the pines seems to have triggered a latent allergy which nearly floored us for the balance of the weekend.

Fighting nature is not a long term strategy, but it has provided a strange sort of satisfaction in the near term.

This is the same sort of satisfaction that the Swiss National Bank must be feeling after they arbitrarily decided to cap the Franc:Euro exchange rate at 1.2:1, effectively throwing their lot in with the doomed Euro.  From the Wall Street Journal:
The SNB said Tuesday that it would "no longer tolerate" the euro falling below the minimum rate. In a statement, it said it will enforce the limit with "the utmost determination and is prepared to buy foreign currency in unlimited quantities."

Their abstention from joining the Euro in the first place was a testament to this.  Their capitulation today simply gives more credence to the extraordinary pressures that the competitive devaluation of all fiat currencies is placing on those Central Banks which for one reason or another have chosen not to compete.

The Swiss currency has been under siege ever since its neighbors embarked on the Euro currency experiment.  Being the ingenious people that they are, the Swiss, with their mountain bunker airbases and underground buildings, were able to hold out for a long time.

What finally sent them over the edge?  We are not certain but we can only imagine that, as the Franc soared unwittingly towards parity with the Euro, the intelligent Swiss flocked across the border to purchase whatever they could from their unwitting neighbors who are all unequally yoked to the Euro’s fate.

In other words, why shop in Geneva when your Francs go further in France?

Having seen enough, the SNB is has now crossed the ropes and is entering the Battle Royal of fiat currency devaluation.  Who will be standing at the end?

Fiat Currency Battle for Devaluation
This is a trick question, as our equally intelligent fellow tax-payers will quickly point out. There are no winners when something with no value is widely recognized as such.  Only mayhem, yelling, pile drivers, body slams, blood, and drama.

Most investors are now waking up and realizing that it is time to hold currency reserves (household savings) in Gold, Silver, Pork loins, anything but fiat currencies.

Get out of the arena and avoid the ensuing traffic jam.  This sort of mayhem is better enjoyed from the comfort of one’s home and the quicker one gets there the better!

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


P.S.  For more ideas and commentary please check out The Mint at

Key Indicators for September 6, 2011

Gold Price Per Ounce:  $1,880 PERMANENT UNCERTAINTY
While this type of action should come as no surprise to our readers, it is significant because the Swiss have traditionally been a sort of neutral safe haven on a number of fronts, not the least of which being money and banking.