StealthFlation – Defined


By Bruno de Landevoisin


STEALTHFLATION:  An intractable economic condition that inevitably arises as excessively issued fiat currency compulsively pursues non-productive wealth assets in a grossly over-leveraged economy which has been artificially reflated by Central Banking authorities in a misguided attempt to synthetically engineer economic growth via extreme monetization (ie: Counterfeit Quantitative Easing & Interest Rate Suppression).

This ill-advised monetary regime effectively prevents the real economy on the ground from realizing the healthy normalization of free market forces crucial to genuine capital formation, authentically derived from bonafide industrious productivity which generates actually earned savings, the very life blood essential to creating legitimate and sustainable growth.

Under the imposition of StealthFlation, asset prices are deliberately inflated in an irrational attempt to elicit a vapid wealth effect, while the generative velocity of money is extinguished. Worse still, the seeds of hyperinflation are sown, as the compromised overtly financialized economy becomes increasingly dependent upon the interminable entirely destructive monetization largess.

Also known as; wishful thinking, and robbing Peter to pay Paul.

Qe Cartoon 2

This entirely synthesized approach to capital formation brings about the following disastrous conditions:

1) Engenders stealth dormant velocity of money, concealing embedded inflationary risks to the economy.
2) Produces highly unstable and recurring capital market asset bubbles.
3) Drives superfluous misallocation of true investment capital, disregarding and disadvantaging the crucial SME sector.
4) Generates excessive capital market volatility and unpredictability, disrupting deliberate business development and planning.
5) Delivers lethargic overall economic activity with limited and unsustainable growth.
6) Encourages deleterious off-shoring of the manufacturing base.
7) Facilitates fantastic fiscal deficit spending sprees.
8) Decreases median incomes and new job creation.
9) Spawns extreme income inequality and social discontentment.
10) Eviscerates the essence of money by compromising the means of exchange and its crucial role as a conduit for savings.

Visualizing the Vanishing Velocity of Money Vortex 


The inflationary risks are deliberately concealed and remain latent due to the synthetic suppression of determinant free capital market forces.  However, the grossly excessive supply of money has definitively been created, and it will debase the currency via inflation, it’s just a function of time. Continue reading

R.I.P. – ALI

By Bruno de Landevoisin

One of the first who openly told the Neocon Warmongers to get lost…………………at great cost to himself I might add.

“My conscience won’t let me go shoot my brother, or some darker people, or some poor hungry people in the mud for big powerful America. And shoot them for what? They never called me nigger, they never lynched me, they didn’t put no dogs on me, they didn’t rob me of my nationality, rape and kill my mother and father.

Shoot them for what? How can I shoot them poor people? Just take me to jail.  Why should they ask me to put on a uniform and go 10,000 miles from home and drop bombs and bullets on brown people in Vietnam while so-called Negro people in Louisville are treated like dogs and denied simple human rights.

This is the day when such evils must come to an end. I have been warned that to take such a stand would cost me millions of dollars. But I have said it once and I will say it again. The real enemy of my people is here.

I will not disgrace my religion, my people or myself by becoming a tool to enslave those who are fighting for their own justice, freedom and equality. If I thought the war was going to bring freedom and equality to 22 million of my people they wouldn’t have to draft me, I’d join tomorrow.

I have nothing to lose by standing up for my beliefs. So I’ll go to jail, so what? We’ve been in jail for 400 years.”

Gold’s Timeless Truth

By Bruno de Landevoisin

One should never be too concerned about the gold price measured by a suspect faltering monetary regime.  The value placed on the timeless hard asset class in terms of a fiat currency solely backed by the good faith and credit of bankrupt Governments, whose Central Banks are counterfeiting paper money, is only viable so long as the presiding monetary authorities legitimately maintain their credibility and supremacy.

The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well.  (The Daily Reckoning)

The inevitable failure of the western world’s fiat based financial system will leave gold as the only veritable monetary store of value still standing.  Once the capital and economic breakdown befalls, the trust between the nations tied to the previous monetary order will have been irrevocably shattered.  Gold then emerges as the essential and only time-honored common denominator between the sovereign States, which no longer value each others’ previously accepted paper obligations.  Having been entirely discredited, failed fiat currencies, that had hitherto readily facilitated the exchange of goods and services between nations, are simply discarded like worthless paper soiled with spilled ink, promptly tossed into the trash bin of history.  Same as it ever was……..

The severe monetary, commercial and geopolitical dislocations which invariably ensue, unalterably follows the disintegration of the previous global means of exchange, in this case the Dollar.  This is precisely the moment Gold takes center stage.  When the dust finally settles, the only remaining store of value still trusted and acceptable as a means of fair trade is gold.  It has consistently been so for well over 2,000 years of civilization’s monetary history, which is about determinative a probability as they come.

In time, a new monetary system is eventually reestablished between the decimated distrusting parties, forced to the negotiating table so as to resolve the ongoing global financial cataclysm.  During that conspicuously uncertain period,  the new monetary order can only be based on a universally recognized real money currency, and that my dear friends has always been gold.  At the end of the day, the honest and genuine hard asset class is quite simply in a class of its own, unequivocally valued by all concerned parties, particularly at critically perilous junctures in time…..

It’s really quite simple, it’s not about the new Stock Market highs, nor the Dollar and U.S. Treasury safe haven.  It’s all about tomorrow’s confidence in our Monetary System. Are you confident in the malignant malfunctioning monetization?  At the end of the day, the only relevant question still remaining, is not if, but when our cocksure menacing monetary mad men will entirely lose their grip on their perverted paper

Money is stored labor. Labor is part of life.  When you debase money, you devalue life itself.

Oh, and for those that incessantly dismiss gold as a barbaric relic, please be advised that the metal remains the best performing asset class of the New Millennium, by a country mile.  Be sure to let me know when that changes……

Moreover, Gold serves as crucial financial insurance, whether you have paid $45 per month or $65 per month for the crucial insurance coverage becomes entirely irrelevant when an instantaneous incendiary inferno burns down your home.

To quote the timeless Bobby Dylan:  “Come in she said, I’ll give you shelter from the storm”

The Best Insurance Policy Ever Written………Bar None (pardon the pun)

By Bruno de Landevoisin

Stop getting your rocks off making fun of the gold bugs.  Get the hard asset now while it’s undervalued my friends.  Hold your nose, dive in and simply consider it heavily discounted long term insurance, as you would any required insurance policy.   After all, wouldn’t you buy the best long standing health insurance policy ever written, if it were offered at the same low price it was over 5 years ago?

If that doesn’t convince you “sophisticated” cock-sure modern investors to hold a nominal percentage of your financial assets in precious metals, strictly for wealth preservation purposes, perhaps the simple facts below will resoundly resonate with you sharp shooters.

What is it that you don’t understand about the New Monetized Millennium? 

  • The best performing asset class of this millennium is gold, by a country mile………
  • 2000-2016 Gold up 500%        vs.      2000-2016 S&P up 5%
  • Near zero% interest rates / ZIRP / QE / NIRP, as far as the eye can see…..

You can be the first to call me when any of that fundamentally changes.  In the mean time, bug off!

The vast majority of investors today generally invests in the standard asset classes, namely stocks & bonds, which the established financial industry presents to them as the most desirable and constructive financial instrument to hold, so as to increase savings.   Stock brokers, registered investment advisers, asset managers and the like, actively offer these issued contractual obligations to the typical, garden variety, middle class investor who inherently trust their advisers to manage their financial wealth in a responsible manner.   Counting on them to fashion balanced portfolios with assets which will both protect and increase their investment holdings over time.   On this basis, it’s fair to say that the entrenched financial industry distribution channels rely almost exclusively on stocks and bonds, derivatives there of, such as ETFs, as well as mutual funds representing a selective combination of these standard asset classes.

Furthermore, these very same financial advisers repeatedly and ardently recommend a balanced approach to investing, incessantly touting the crucial importance of diversified holdings in one’s portfolio.   There in lies the rub.  How can anything be considered truly diversified if it is made up of the very same general investment classes.  Wouldn’t the term diversification suggest a collection of uncorrelated asset classes?

A legitimately balanced portfolio, in the true sense of the word, should not only hold a variety of staple equity and credit financial instruments, but also, to actually be diversified, should certainly include other entirely uncorrelated asset classes.  The bottom line, how can these qualified asset management advisers relentlessly advocate for balanced diversification, and yet not remotely offer it? Continue reading