Got Currency?

My milk’s better than your milk… My milk’s better than yours…

I don’t know if you caught the recent interview on UK Television where Max Keiser suggested that stealth inflation comes in the form of smaller cups with the same “grande” name and a quarter pound of horse meat blended into your half pound of ground round. In the interview Max said that Milk was being watered down and the host of the show questioned Max on that comment.

Truth be told, milk isn’t watered down. It’s supplemented.  Just like governments are supplemented by central bank policy as commercial banks snuggle into Lassie and enjoy their primary dealer status and load up on a serving of warm milk while the taxpayer foots the bill for Lassie’s dog food. But my milk and your milk are different than Lassie’s milk.  We’ll call our milk the “Got Milk” milk. You know the milk that only makes its way to grocery store shelves via “the co-op” also known as Dean’s Foods, Land O’Lakes, Nestle and Dannon.

Does your milk get a boost from bovine growth hormone (http://www.evasays.com/2009/06/20/land-o-lakes-or-land-o-fakes/)?  Does this result in any farmer that isn’t in the co-op or some poor Amish fellow in Pennsylvania who tries to sell you milk from his farm is heading to the big house for a few years to think it over if he chooses not to stand by and watch their entire business destroyed?  How ’bout this raw milk cheese producer video below? Don’t miss the part where the sheriff hits the video camera operator and where they videotape all the community supporter’s license plates.

More stories on the dangers that the selling raw milk pose to your freedom:  http://www.freerepublic.com/focus/f-news/2986005/posts

Take the case of Cadbury’s famous Dairy Milk.  Technically, it’s not milk… it’s milk chocolate.  According to Wikipedia, in the Fall of 2012 Cadbury’s downsized Dairy Milk candy bars began appearing on British shelves.  The bar sharnk from 49 grams to 45 grams while it’s shape was remoulded.  Dave would suggest that the remoulding was not to make the bar look smaller, but most likely the opposite.  The 400 gram  blocks shrank down to 360 grams.

You could describe that as a 10% reduction in size on the large bar, or if you don’t like falling for the oldest banker trick in the world, it would require an 11.11 percent increase to get your original size bar back.  If you don’t know how an 10% decrease can become an 11.11% decrease, then I would suggest you don’t engage in a trade with anybody until you contact Dave for a class in Trading 101. Throw in a deflationary, negative interest rate, Chicago Plan environment with 2% – 3% negative rates and you approaching a 15% increase in your profit margins if you’re Cadbury.

In a previous “Honey I shrunk the candy bar” fiasco in Australia, Cadbury reformulated their cocoa butter with palm oil in conjunction with a weight reduction from 250 grams to 200 grams.  When there was a consumer outcry, Cadbury responded by saying that the wholesale cost per gram should be the same but retailers may not have adjusted their prices.  Sounds like a plan to charge retailers as an “accessory to stealth inflation” if you ask Dave.  This is the same strategery of blaming the messenger that was being put forth yesterday by CNN in their “blame your tribe” solution to congressional emasculation (http://www.cnn.com/2013/02/06/politics/congress-redistrict-fault/index.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fcnn_allpolitics+%28RSS%3A+Politics%29).

http://en.wikipedia.org/wiki/Cadbury_DMilk

Whether it’s watered-down,  hormoned-up, grounded-in or simply repackaged in a smaller container (http://www.dailymail.co.uk/news/article-2131927/Our-shrinking-foods-How-manufacturers-making-everyday-products-smaller-keeping-prices-same.html#axzz2KJPneXyZ), the less is more solution to earnings season seems to be reaching its tipping point.  I couldn’t help but think about the contrast between two recent interviews and it really caught my attention when Max Keiser mentioned the concept of “negative sum game.”  The idea that you have to prepay to play the negative sum game is essentially the same idea as Dave’s “prebit” concept (http://tradewithdave.com/?s=prebit).

In the Max Keiser interview with John Butler of Amphora Capital, John Butler says the folowing:

“It’s clear that other countries are responding to Japan’s unilateral attempt to weaken its currency and to grab market share, as it were for the global export market.”

In a Wall Street Journal interview with Jim Rickards this past week, Jim says, and I quote, that the export market share premise is “nonsense.”

“The way you promote exports, by the way, is not with a cheap currency. That’s nonsense. The way you promote exports is with technology, innovation, education, low corporate taxes, good labor management relations. It’s exactly the kind of thing we see coming out of Germany and gradually the rest of Europe. So, I would expect the ECB to remain strong.” Jim continues by saying “Again, the way you promote exports is with making good products. Making things people want to buy. People don’t mind paying a few extra bucks for an Iphone or a Samsung phone because they are very good products. So, I think some of these countries coming up the technology chain, good natural resource bases, strong currencies, they are doing things right.”  Jim Rickards

 

Jim Rickards WSJ podcast: http://blogs.wsj.com/economics/2013/02/07/podcast-james-rickards-on-currency-wars/

More from the WSJ:  http://online.wsj.com/article/SB10001424127887324761004578283684195892250.html

Wall Street Journal Rickards interview: http://live.wsj.com/video/why-no-one-will-win-the-currency-war/92B92B2A-7885-4817-B45A-317A96A157EA.html#!92B92B2A-7885-4817-B45A-317A96A157EA

 

Max Keiser interview with John Butler of Amphora Capital: ($ Wars discussion beginning at the 18:30 mark)

 

When you consider what we learned from the “War on Drugs” and the “War on Terror” does it make you think twice about what the true agenda is behind the “War on Currency”?

What the currency war is really about is the elimination, or at least the stealth supplementation, of paper money with an alternative electronic, high velocity global currency where vostro = nostro.  The new “open” model will be a triple entry accounting model where the past = the present = the future in a zero or lower bounded Chicago plan to steal your pension  (http://tradewithdave.com/?s=%22triple+entry+accounting%22+).

If you listen to Jim Rickards he says as much in nearly every interview he gives. He will finish the interview by mentioning at the end “paper money.”  His emphasis is not on “fiat” as a concept, but paper as the enemy in the war.  Is it possible that from a privacy and freedom standpoint that the anonymity of  paper just may be your best friend?

What Max is saying about the currency wars being “a firing squad in a circle”, be careful that you don’t end up firing on your friend.  The objective, if you ask Dave, is to kill paper currency as we know it because it is uncontrollable, untraceable and essentially private.

Here’s Max original interview on the Got Watered Down Milk? thesis:

Got Lasagna?:  http://www.bbc.co.uk/news/uk-21375594

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