November Dispatch - The Dollar Vigilante

November

Dispatch

1 www.DollarVigilante.com

Contents

The Memory Hole

Redmond Weissenberger

3

Vigilante’s View

Jeff Berwick

4

Economic Review & Outlook

Ed Bugos

16

TDV Groups: Lisbon

Luis Fernando Mises

25

In Closing…

Don Lavoie

33


The Memory Hole

Redmond Weissenberger

As the USSA is falls

further into parody,

it’s difficult to find a

silver lining. The sun

hasn’t exploded.

Locusts have yet to

announce the

apocalypse. Bernie

didn’t win.

The past few weeks

have shown us,

however, the there is

light at the end of the

worst tunnel ever.

As the Harvey

Weinsteins, Kevin Spaceys, and Al Frankens fall, the industries around them fall as well. Though the actions

of these men are atrocious, ever more appalling are the communities and industries that protected them.

Hollywood and politics share a lot of flaws, and the one that is most hurtful to the rest of us is the mainstream

media that continually fails in its lack of coverage or investigation. As more men and women have come

forward with their stories of abuse, the sanctimonious MSM pats itself on the back for “breaking” the stories

and holding the victims’ hands as they share. Truth is, the same MSM knew of these stories all along and

were complicit in their secrecy.

So what’s the positive here?

Well, it has given us hope that despite the failings of the MSM and the atrocities of these bodies (politic and

celebrity), institutions, no matter how powerful, can and will fall. This is the rise of the people, the awakening

of the masses. The burning has begun. Houses are in flames. The once invincible are wounded.

Only good can come from the ashes and rubble.


Vigilante’s View

Jeff Berwick

It’s another edition of the TDV newsletter… and another all-time high for bitcoin.

Bitcoin has been on a massive uptrend for nearly three straight years.

At the beginning of 2015, nearly two years ago, bitcoin traded near $250. It closed out 2015 near $450… and

then ended 2016 at $850.

And we all know what happened in 2017 so far!

Bitcoin hit an all-time high of $8,341 on November 21st for a nearly 900% gain year-to-date. And, that’s not

including Bitcoin Cash, or Bitcoin Gold for that matter (which has spiked higher recently), which would put

gains over 1,000% for the year.

Interestingly, bitcoin surpassed $1,000 on the very first trading day of 2017.

The rise of bitcoin has been breathtaking to watch. Here are the number of days it took to surpass each

thousand dollar level:

$0 - $1000: 1789 days

$1000- $2000: 1271 days

$2000- $3000: 23 days

$3000- $4000: 62 days

$4000- $5000: 61 days


$5000- $6000: 8 days

$6000- $7000: 13 days

$7000- $8000: 14 days

It took 3,060 days, or more than eight years, to surpass $2,000. It then took 181 days, or just six months, to

rise from $2,000 to over $8,000.

As one might expect, public interest in bitcoin has increased right along with its price increase this year. The

amount of tweets on Twitter regarding bitcoin have risen along with the price.

The question on everyone’s minds is, where do we go from here?

THE FUTURE OF BITCOIN AND CRYPTOCURRENCIES

I’ve never had an investment that is up over 200,000% (since recommending it at $3 in 2011) and still have

so much potential upside.

This is the insane thing about bitcoin and cryptocurrencies in general. If bitcoin, or another crypto (more

below) becomes used as currency by a large amount of the population of the world, the value of bitcoin could

rise to the neighborhood of $1 million USD per bitcoin in today’s dollars.


That said, there is a LONG way to go before that happens. And, as I have quite publicly stated recently, it looks more and more like bitcoin, or Bitcoin Core, or Segwit Bitcoin, will not become a widely used currency.

We can go into the reasons why that appears to be the case, but the main players of Bitcoin Core seem to be

happy, or at least comfortable, with bitcoin having high transaction costs.

Funnily, many Bitcoin Core people will say that those behind Bitcoin Cash are the “Chinese Miners”... yet,

who profits most from high transaction costs? The miners, of course.

In any case, unless something dramatic changes with bitcoin it will not be a widely used currency. It can

barely be used as a currency now, with transaction fees often being in the double digits in dollar terms and

speeds regularly an hour or more.

That just won’t work for day-to-day transactions.

Supporters of Bitcoin Core seem to be positioning bitcoin as being “digital gold”. In other words, it has value

but is hard to transact.

This is a very, very questionable approach. Bitcoin has had a hard enough time convincing your average

person, or people like Peter Schiff, that it can have value. But, if it can’t be used easily for transactions, then

really what is the value? Bitcoin doesn’t have value just because it is named “bitcoin”.

This is where things will get very, very interesting in my opinion.

Bitcoin Core supporters keep telling us that everything will be fine with the “lightning network”. Maybe it will, maybe it won’t. Only time will tell… but the longer it takes to make bitcoin faster and cheaper to transact

the more it will reduce the value of bitcoin, in my opinion.

And, the longer it takes, the more competing cryptocurrencies can catch up to bitcoin.

WHICH CRYPTO WILL BECOME LIKE CASH?

If bitcoin will never become usable as a transactional currency… then which cryptocurrency will?

I have taken a lot of flack for throwing my support behind Bitcoin Cash. Some questioned, “Why Bitcoin

Cash? And why not Litecoin or Dash?”

That is a very valid question.

The main reason is that Bitcoin Cash was bitcoin only four months ago. And, anyone who held bitcoin on

August 1st already holds Bitcoin Cash. This is a MASSIVE advantage to Bitcoin Cash. It already has a massive

user base who is very familiar with bitcoin. The only difference is Bitcoin Cash is a lot cheaper to use.

And, if Bitcoin Cash has more mining power than bitcoin for an extended period of time, it could just end up

being “bitcoin” in the end and Bitcoin Segwit could just implode (more on how to position yourself for that

below).


Now, if that were to happen, it would be incredibly destructive to the bitcoin “brand” as hundreds of

thousands of people who thought they held “bitcoin” could find it with little value and then learn that it just

“switched to Bitcoin Cash”... those people would not only be furious… but would swear off cryptocurrencies

for years if not decades.

Nobody said this is an easy or fair game. It is the free market and, like I have said, the battle is on… that’s one

of the reasons you subscribe to TDV. Hardly anyone else out there knows what is going on.

By the way, if you want to see which cryptos are most profitable to mine, go to

https://www.coinwarz.com/cryptocurrency. As you can see, at the moment, Bitcoin Cash is 12% more

profitable to mine than bitcoin.

Why have I not publicly supported other potential cryptocurrencies that could become “digital cash” instead

of Bitcoin Cash?

Well, Bitcoin Cash, as I said, has the advantage in many ways right now. But, that doesn’t necessarily

guarantee that it will win out.

What are some of the other cryptos that could end up taking the “cash” title?

To me there are two main competitors. Dash and Litecoin.

I do love Monero for its extreme privacy, but I think Dash and Litecoin have the advantage over Monero as

far as the general public are concerned right now.


https://www.coinwarz.com/cryptocurrency

Subscribers know that I recommended Dash at near $3 in January, 2016. It is currently just above $500.

Subscribers may also know that I have never recommended Litecoin. Years ago, Litecoin marketed itself as

being “silver to bitcoin’s gold”. It was said to have about 10x the supply of bitcoin, the same way that there is

much more silver in the world than gold.

To me, the concept was stupid. Gimmicky.

But, interestingly, the total supply of Litecoin is 53 million and it currently trades at $70 and a market cap of

$3.8 billion.

Bitcoin currently has a total supply of 16.6 million coins… meaning that the old ratio of 10:1 is now down to

around 3:1.

And, Litecoin has seemed to make real strides in the last year to become the “digital cash” that bitcoin was

supposed to be.


And, I just really like what I am seeing from Litecoin founder, Charlie Lee (follow him on Twitter here).

So, years after saying I didn’t like Litecoin and having not mentioned it barely at all in the years since… I am

now suggesting TDV subscribers take a small position in it as it may benefit greatly from this ongoing “digital

cash” battle.

In fact, here is how I would position.

PORTFOLIO STRATEGY

If you own bitcoin but don’t own any Bitcoin Cash, I’d sell enough bitcoin to have the same amount of Bitcoin

Cash coins as you do bitcoin.

So, if you have 10 bitcoin, sell enough of it to buy 10 Bitcoin Cash.

In this way, you are protected no matter who wins… and, interestingly, both may win in their own way. If that

happens, great.

And, if bitcoin destroys Bitcoin Cash, or vice versa, then you will not end up losing anything (you won’t gain

anything either… but that’s a lot better than losing everything if you get caught with the wrong coin).

If you wish to hedge and be even more diversified, I’d pick up some Litecoin and Dash as well. Perhaps 5%

each of your bitcoin holdings.

So, in this case, if you diversified from bitcoin into Bitcoin Cash, Dash and Litecoin you’d end up with

approximately 80% bitcoin, 10% Bitcoin Cash, 5% Dash and 5% Litecoin.

Why not more into the alternatives?


https://twitter.com/SatoshiLite

It is still very unclear how things are going to play out. And, Wall Street has jumped in with both feet now

into bitcoin. That alone could see bitcoin rise well above $10,000 in the next few months.

And, don’t forget, Jamie Dimon said that, to paraphrase, “bitcoin could hit $100,000 before it implodes.”

That’s an interesting number. Could he be signaling that is their intention is to buy it up to $100,000 and get

all their clients in before selling all their bitcoin at that level?

Well, if so, here is an interesting chart posted to the BitcoinTalk.org in October 2014 when bitcoin was

trading under $400.

It predicted that bitcoin would hit $10,000 on November 22, 2017.

On November 22, 2017, bitcoin was at $8,250 and Bitcoin Cash was at $1,400 and Bitcoin Gold was at $250

for a combined total of $9,900!

Not bad for accuracy!

It goes on to predict that bitcoin will hit $100,000 on July 16, 2021.

We’ll just have to wait and see!


https://bitcointalk.org/index.php?topic=831547.msg9293359#msg9293359

“Buy bitcoin” has now surpassed “Buy gold” in Google searches by a wide margin.

And, bitcoin has really begun to enter into the mainstream lexicon.

Here’s a scene from Mr. Robot which perfectly explains how governments are dealing with bitcoin.


https://www.youtube.com/watch?v=ONHLZ1dnKLI



And, bitcoin will be featured in one of the most popular shows on television in the USSA at the end of this

month.

The CME Group has announced that they will begin trading bitcoin futures by the end of the year.

And, Square’s Cash app, one of the most popular apps for payments, has begun allowing users to buy and sell

bitcoin directly in the app. However, there is currently no way of sending or receiving BTC to/from other

users. Cash ranks steadily #1 in the Finance category of both the US iOS/Play app stores. Square Inc. stock is

up 14% since the announcement.

EOS… EOS IS GONNA ROCK YA

After a string of absolutely stellar cryptocurrency picks going back as far as bitcoin at $3 in 2011 I was a bit

frazzled that my initial recommendation of EOS at $1.39 on July 15th fell as low as $0.49 in October!

But, I had a lot of confidence in my recommendation and in the October Dispatch I reiterated EOS as a buy

and recommended averaging down at $0.50.


https://bravenewcoin.com/news/cme-bitcoin-futures-announcement-captures-institutional-investor-attention/?utm_source=BNC+Newsletter&utm_campaign=8dc54abf53-BNC+Weekly+News+Highlights+-+27th++Oct+2017&utm_medium=email&utm_term=0_83439a8472-8dc54abf53-240524745

EOS hit $2 in the last few days making all the bad memories go away… especially for those who did average

down at $0.50.

It has risen 300% in the last month so it may see a reasonable pullback here… perhaps as low as $1.50. If so,

and if you haven’t bought yet, that would be a good time to do so.

TAKING SOME CRYPTO PROFITS

Since the beginning of 2017, bitcoin has risen nearly 1,000%. Ethereum has risen nearly 4,000%. And Dash

has risen over 4,000%.

These are all, of course, TDV recommendations from even lower levels.

So, if you had bought any of these cryptocurrencies prior to 2017 you have seen ridiculous returns.

Should you take some profits?

It all depends on your personal needs. But, if you had bought many of these cryptos prior to 2017 and have

stacked up absolutely stunning profits then it does make sense to at least take some profit here.

Not to mention, there will have to be a large pullback in all these cryptos at some point… the only question is

when.

I recently did an interview with Collin Kettell of Palisade Radio on this very topic. You can see it here.


https://www.youtube.com/watch?v=6t1moZButrw

Collin will be speaking at our upcoming TDV Internationalization & Investment Summit on February 19th.

Before I get into what we discussed, take a look at the comments section on Youtube. Three years ago when I

did a video saying to buy bitcoin the comments section was riddled with gold bugs all calling me an idiot.

Now, look today what happens. I even mention taking a small part of your profits and putting it into gold and

gold stocks and people are outraged at my stupidity!

If you listen to the collective consciousness, bitcoin will never go down again and gold will never go up again.

That is really all I need to know that the opposite will likely soon happen… at least to an extent.

So, if you’ve made massive profits over the last year consider taking some profits and putting them into

precious metals and, particularly, into the gold stocks TDV’s Senior Analyst, Ed Bugos, recommends in the

TDV Premium newsletter.

I think we will see a massive rebound in the precious metals in the coming 1-2 years and many of these gold

stocks will go up 1,000%+. Wouldn’t it be nice to take some of the profit from a 1,000% rise in bitcoin and

cycle it into some gold stocks that may return 1,000% over the next two years?

Plus, if the cryptocurrencies have a serious 50%+ pullback, you’ll sleep a little better at night knowing you’ve

taken some profits.

GOLDMONEY.COM NOW ACCEPTS BITCOIN

Peter Schiff is an advisor to Goldmoney.com and hates bitcoin. Nevertheless, this month, Goldmoney.com

announced that they now accept bitcoin deposits which can be converted into precious metals ownership in

their vaults across the world.


https://www.youtube.com/watch?v=6t1moZButrw

http://tdvinvestmentsummit.com/

http://www.goldmoney.com/?gmrefcode=TDV

I’ve personally sent a few bitcoin over to the them as part of my above strategy and the process works very

quickly and well. The only downside is you cannot withdraw bitcoin from your account once you’ve sold your

precious metals. If they ever offer this service it will be an excellent and easy service to trade in and out of

bitcoin for precious metals.

CONCLUSION

What a year. With just a little over a month left we’ll see if the cryptocurrencies can hang on to these massive

gains or even improve on them. Certainly, the great majority of people now seem to believe that they can

never go down again and will only go higher. But, the great majority of people are idiots… so let’s see what

happens.

There should be a lot of very, very happy TDV subscribers attending the upcoming TDV Internationalization

& Investment Summit on February 19th, 2018. Unlike prior years, the TDV Summit will be the day after

Anarchapulco/Cryptopulco this year.

We decided to do that because Anarchapulco is February 15-17th and Cryptopulco is February 18th. So, for

those who don’t care as much about the freedom conference and are mostly interested in investing and

cryptocurrencies you can attend Cryptopulco on February 18th and then the TDV Summit on February 19th.

I really recommend coming for the whole week though. There is nothing like it, sitting on the beach in

paradise in one of the freest places in North America without about 1,000 of the brightest people all intent on

changing the world and ridding it of violence, extortion and money counterfeiting operations… aka.

Governments and central banks.

Given the year the cryptocurrencies have had I have begun speculating how many private jets will be flying in

for this year’s event!

You really won’t want to miss it… and it is a great time to meet all the people involved at TDV including

myself, Ed Bugos, Luis Fernando Mises, Juan Galt and many more including David Morgan, Bix Weir, Collin

Kettel and many of the companies we’ve featured in the newsletter will also be there including the team from

Ed’s picks, Cascadero Copper and Mexican Gold, Michael Cobb’s teak plantation crew and many more. It’s a

great place to meet, once a year, and plan to take over the world… and leave everyone alone.

As always, thank you for subscribing!

Jeff Berwick




http://anarchapulco.com/

http://cryptopulco.com/

Economic Review & Outlook

Ed Bugos, TDV Senior Analyst

The Bull is a large, and typically also a male, animal. It could be a

bovine-like creature, like the bull in the pic on the left. It could also refer

to a whale, dog, shark, or elephant. Whatever it is, it is BIG.

I was thinking about the subject lately as I feel a little bit like this guy

(and Jamie Dimon!) on our big short against the tech and financial

bubble via the US listed Proshares Ultrashort ETF (QID:NYSE).

Ouch! I keep underestimating the bull running up Wall Street. It is the

most wicked thing, i.e., totally detached from anything fundamental.

And I’m no stranger to this fight, having traded, rode, and shorted a few bull markets in my time, including

the most historic one that ended in 1999. This one has yet to break some of those records, but it is second,

and as you saw in the early pages of this newsletter, it has broken quite a few records already.

But what do people mean when they use metaphors like this? I’m speaking of the great bull market cycles on

Wall Street, you know, the ones interrupted by ferocious bear markets on occasion, remember those?

It has been almost a decade since the last one tore into the fabric of the system, down to its core even.

Since our hedging and trading strategy is presently aimed at taking down this bull, and has so far failed, it might be worthwhile to reflect on the characteristics that the Wall Street variety shares with those in nature,

in hopes of gaining an insight into its longevity and our strategy in fighting it (instead of riding it).

A Fitting Metaphor

In nature, we find the term referring to something large, fearsome, and usually male. When testosterone

levels are high, they can be unpredictable, aggressive, and single-minded - irrational for all intents. They are

known to stampede at their enemies, and will chase you down, like a “bully” would, if he smelt fear on you.

The bull in the photo can probably run a long time, even with several spears draping off its bull neck.

By definition, they are stubborn, stupid animals; driven to extremes by hormonal excess and imbalance.

Bull riding is itself tricky. It’s never easy. Many people look at these things in hindsight and think they can

capture an entire bull leg. In real time, they get bucked, like the amateurs at the local bar on rodeo night.

It’s easy to get bucked. Many got bucked off the bitcoin train a lot lower, and never got back in.


I got bucked off the stock bull in 2014, and began fighting it too early in 2015, and even though I canceled this

trade appropriately as the Trump rally got underway, I couldn’t help but take this animal on again by the

second quarter of this year. It seemed so tired and old this summer, full of spears like the one in the picture

on the previous page. And yet, I think, maybe that’s when it is most dangerous, when adrenaline is pumping

through its veins in reaction to the pain combined with a high dose of testosterone. It is perhaps at its most

dangerous when it is near the end, desparate... a blind rage driving it to slaughter everything.

The bull market has gone into a straight up trajectory. It is tired though. It is close to the end.

We will win this contest.

The Sentiment Trap

One of the strange things about the

Wall Street bull market is that

sentiment is extremely bullish - in the

context of history - and yet just about

everyone thinks it is the most hated

bull market in history. Did you get

that? They are all long and hate being

long! Should be easy for a decent sized

bear to shake them out.

Another odd thing is that so many of

the most bullish bulls were actually

bearish for the first half of the bull

market. I saw a lot of them just start to

turn bullish in 2013-14. Many were

bearish right up to Trump!

By then the financial markets had

already lost their connection with

reality and the fundamentals, again,

and combined with a new incoming generation of newbs, the inflated bullish crowd was basically raised on

momentum and cheap money. Value investing is a long lost art, mostly its own undoing anyway. But this bull,

raised on Fed notes, has murdered many a bear. It is one of history’s strongest in price but weakest in

fundamentals. The reason for that is obvious to most gold bugs - it’s just about all inflated… papered over.

The Second Biggest Bull on Record

The present bull market, which began after the 2008 crisis, is the second oldest on record without more than

a 20% bear market having killed it, yet. The oldest and biggest lived 12 years between 1987 and 2000.

At 8.5 years and a nearly 300% gain, the current bull is the second largest as well.


There have been 26 such Wall Street bull markets in the last 100 years ranging from 24 to 4494 days,

averaging 2259 days (6.2 years) and 300% gains, or a median of approximately 659 days (less than 2 years)

averaging 100% gains. Naturally there is a direct relationship between age and size of the ultimate gain.

The bulls born after 1971 have been longer and bigger, just as those born after 1933 were longer and bigger

than those before it, and then again in 1913 the same could be said of the before/after years.

The odds are less than 1 in 26, historically speaking, that it should last but a day longer. This has been true for

over a month. So given my experience on this cycle, there is one more characteristic feature I may ascribe - it is defiant as all hell. Shorting a big bull like this is not going to leave us unscathed, even if rich.

But first, like with many good trades or investments, there is the sweat and steadfast action.

What A Load of Bull!

What this graph does not show you is that the same thing happens every year. I report on it frequently in my

earnings assessments. The estimates always start rosy a year out or so and then they come down and down

over the year until the earnings announcement, which is then reported as beating expectations.

More like beating lowered expectations. It’s a game that analysts play to please their corporate clients.

With most S&P 500 companies having reported for the third quarter in the US, the earnings season is

winding down with the markets looking forward to GDP reports (expect lower revisions) and Fed policy.


Since the end of 2008, S&P 500 operating earnings are up 176%, and the S&P 500 index is up 225%, trading

off a record high and around 2597 in dollar terms at the time of writing. The price to sales ratio is off the

charts, a historical record, and the price-earnings ratio is second only to the 1999 extreme at about 22 times

trailing earnings. The 1930 high was higher but only after earnings fell more than share prices.

The year over year growth rate in third quarter S&P earnings is an impressive 17-20 percent but that can be

largely explained by an easy comparison - i.e., the year ago quarter was essentially a bottom in an earnings

recession that started in 2015, which was probably not priced into share values appropriately at the time.

More important, since 2011, share prices have exceeded the pace of earnings growth. The S&P 500 is up

100% while earnings have only grown 25%. This is known as a multiple expansion, and it is wholly due to the

effect of suppressing interest rates (by printing money and adding liquidity to the credit markets).

Importantly, valuation is an interest rate phenomenon, share prices are supposed to rise faster if interest

rates are falling. Anyone who has ever practiced financial modeling knows the effect of a drop in interest rates

on the present value of long term future cash flow projections. Money printing is just the means.

It has its own effects on the price of shares since this price is in dollar terms, but what I’m saying is that when

interest rates rise, PE ratios should fall, and vice versa; and so when interest rates start rising as we expect

there will be constant pressure on equity multiples for many years to come, especially as price inflation gains

traction. But I am pointing this out to emphasize how much of the move in share prices can be attributed to

the 120% increase in total US money supply and its effect in suppressing interest rates.

How much of it is all real given the $7 trillion in new money created post 2008? You be the judge.

Any way you slice it, the earnings growth has not been there to justify current valuations. The current year

over year growth rate of 17-20% is an anomaly -from an easy comparison. The 10 year average is 3%. The post

2011 average is less. Analysts currently expect 2018 S&P 500 earnings to come in just 15% higher than this

year’s estimates of $133 (as reported earnings) or $144 (operating earnings). At PE ratios of 24 and 22 times

those respective trailing figures for 2017 the market looks to be ahead of itself again. But worse, it is

absolutely not expecting a recession resulting from the central bank’s attempt to exit its inflation policy.

The upshot of it is that earnings have not been great, neither in quality (i.e., mostly just monetary gains) nor

in quantity (nominal growth). After the initial recovery from 2008-11 they really slowed down, and even

recessed in 2015 and 2016. It is among the worst earnings growth periods and longest artificial booms in

history. And all just to paper over the 2008 crisis. They still haven’t been able to exit from that policy!

Liquidity Machinations - the Potemkin Economy

Bank credit growth continued to hobble at an annualized rate of 3.6% in October, up from a 2.9% rates in

August and September, but at half of both the long term and the 2013-16 average levels of 7-8 percent.

My broad money supply metric has continued to grow an average of $50 billion monthly (+5.0% yoy to the

end of October) while my narrower money metric (excluding savings deposits) is up 9.9% year over year -

both of these growth rates are up from their lows of 3-4 percent year over year just a month or two ago.


In October US demand deposits grew by $40 billion and total savings deposits by about $30 billion through

to the first week of November, based on Federal Reserve data. The Fed has been cheating on its promise of

reducing its balance sheet by offsetting maturing Treasuries with a liquidation of reverse repos, through

which they are effectively short Treasuries. So they are covering their shorts at a time when the US

government is forced to roll over its debt, thereby alleviating some of the pressure you can expect on the rate

of interest if they follow through with their balance sheet reduction. At this point it looks like a no go.

The upturn in y-o-y money growth has essentially come from the central bank’s monetary machinations, and

some from the banks. But the liquidity sucking bull market in stocks and real estates needs way more!

In any case, the same factors that are undermining my stock shorts are giving the gold and silver markets

another boost, and the USd another scare. That is, the Fed keeps kicking the can down the road, unable to

take the bull by the horns and abandon an emergency era policy that is propping up false markets and has

destroyed the market’s price discovery mechanisms so that there is hardly a noticeable connection between

price and fundamentals anymore, almost anywhere. The entire economy has become a Potemkin economy.

Yellen’s Resignation, Replaced by Richie Rich

Janet Yellen published a resignation letter, which will be effective on Feb 3rd. She will not stay on as a voting

member or director even though she holds an unexpired term for many more years. Yellen’s replacement will

be Jerome Powell, who the Washington Post wrote would be the richest chairman of the institution since the

1940’s. Powell, Trump’s appointment, is an investment banker and was brought into the fold by Obama, but

is Republican. Big difference, I know. All just goes to show that Trump, who was a huge critic of the Fed

during his election campaign, is nothing but an insider, supporting the status quo.

All hardly even newsworthy. The guy is just another hack. But we’ll call him Richie Rich, for fun.

The news that caught my attention was Yellen’s claim as part of her resignation, touting her record as

chairman presiding over a recovery that has produced a stronger and more resilient financial system, one not

so susceptible to the booms and busts of history any longer. Man, would that make my analysis off.

Well, let’s check in on exactly what she said,

"As I prepare to leave the Board, I am gratified that the financial system is much stronger than a

decade ago, better able to withstand future bouts of instability and continue supporting the

economic aspirations of American families and businesses..."— Janet Yellen

Hmmm. Before you ask for my resignation as an analyst, let’s check in with a few other sources.

“Don't be allured by the Trump mirage of 3-4% growth and the magical benefits of tax cuts and

deregulation… The U.S. and indeed the global economy is walking a fine line due to increasing

leverage and the potential for too high (or too low) interest rates to wreak havoc on an increasingly

stressed financial system."” — Bill Gross


https://www.federalreserve.gov/releases/H6/current/

That was Bill Gross, you remember, former manager of the biggest buyer of government debt in the world

next to the Fed itself. His criticism eventually alienated him, and he was ousted. Uh oh. Doesn’t bode well for

me does it. He said that on the 8th year anniversary date of the boom last March, along with this:

“‘Our highly levered financial system is like a truckload of nitroglycerin on a bumpy road,’ Gross

wrote. ‘One mistake can set off a credit implosion where holders of stocks, high yield bonds, and yes,

subprime mortgages all rush to the bank to claim its one and only dollar in the vault,’ he added.”

Sounds a little less sanguine than what Yellen wrote!

But Bill got kicked out of the business for it, even though he’s one guy that ‘should’ know.

Let’s check in with the mean. A recent survey of hedge fund managers responded that the unwinding of

central bank interest rate suppressions present the main risk ahead,

“After unprecedented and sometimes coordinated efforts by monetary authorities to shore up

financial systems and the global economy over the past decade, many see a messy unwinding as the

top risk. Such concerns found some validation in recent weeks with policy makers in Europe and the

U.K. flip flopping on discussions around tightening policy.”

The ECB and BOE aren’t the only ones, Yellen herself has flip flopped “on discussions around tightening

policy” for many years, even before starting it in 2015. The entire second half 2016 rally in stocks happened

because of the postponement of the planned tightenings. Maybe she’s just got foggy glasses.

Note, one of the respondents from the survey above noted,

“‘Consequences could be very painful,’ said Remi Olu-Pitan, who manages a multi asset fund at

Schroder Investment Management Ltd. in London. ‘We have had a liquidity-fueled bull market. If

that is taken away, there is a pressure point.’”

We are now in the longest period of central bank accommodation in US history, and extremes by many

measures elsewhere, like Europe, where government yields have turned negative. How can Yellen claim

success with this emergency policy still in practically full effect everywhere around the world, and bankers all

unanimously afraid to reverse out of it? If the financial system is so strong why haven’t we normalized

interest rates or the balance sheet years ago?? Don’t you think it’s a bit hasty to assess the economy before the

policy is withdrawn? Maybe it won’t go so smooth given that markets have become so reliant on it.

The central bank may talk about changing the guidelines and regulations and this or that, or that it is

confident that its policies helped the economy. But the truth is that it has simply printed more money than

ever, and this time it did it directly (usually the commercial banks print it up in the US). Over 60% of the total

supply of dollars (or equivalent, i.e., demand deposits) has come into existence after the 2008 crisis.

That’s how they did it. That’s how the pushed rates to zero and kept them there for a whole decade. That’s

how they inflated the S&P 500 by 300%. That’s how they expanded GDP and profits, which by the way have

grown slower in this cycle than any other in many decades. That is, they papered over the problems.


But they literally destroyed the free market price mechanism in doing so.

The market has no way of balancing the right amount of investment against consumption because the policy

has encouraged both at the expense of actual savings and the growth in private and public debt.

As I have said earlier, there is no connection between the fundamentals and the equity and debt markets

anymore. Their valuation has become completely reliant on central bank policies. Almost everyone gets it now. Only, very few understand what it means. Any student of economics can tell you, the cheap money

policy is an intervention into the market system, and when the central bank comes to the rescue, it is really

just trying to discourage the liquidation of unsound investments and/or kick the can down the road.

Austrian economists have long known that the waste and malinvestment occurs DURING one of these central

bank or fractional reserve bank induced investment bubbles, and that the bust is really just the market trying

to get back to prices and balances that are sustainable. It is so easy to forget this when you are reading

mainstream news. The boom is in fact the waste period. The bust is the corrective period.

For almost ten years the Fed has thus discouraged a cleansing that the economy desparately required post

2008. Its policy amounted to subsidizing the baddest players in the previous boom. Now it is a zombie

market. Hedge fund legend Julian Robertson just recently pointed out that,

“Central banks including the Federal Reserve should get the blame for the high market valuations

through their programs to keep rates low and make sure investors did not have other alternatives to

get returns.”

And other fund managers have noted a devastating unwind of historic low volatility that has been brought

about by the Fed’s policy,

“A reversal of recent low volatility in markets, paired with a rethink by global investors on the

attractiveness of stocks, could have "devastating" effects, according to Gina Sanchez, CEO of

Chantico Global.”

Boaz Weinstein notes there is no value in high yield bonds, but lots of risk (another imbalance),

“Saba Capital's Boaz Weinstein said the high yield debt market is overvalued and as a result he is

betting against the bonds of retailers and hospitals. Let's unpack high yield … the reward isn't there"

given the risk, Weinstein said at the Delivering Alpha Conference in New York on Tuesday, noting

that smaller retail investors own more junk bonds than they ever have before.”

What’s more, many pros worry that Trump’s trade policy will offset its minor tax cuts too,

“...now, the so-called smart money — institutional investors and the high-net-worth set — is starting

to question whether Trump’s protectionist agenda, which Wall Street was willing to overlook early

on in the Trump rally, could outweigh the benefits of some of the President’s business-friendly

positions on deregulation. In a recent letter to clients, hedge fund managers at Carlson Capital,

which oversees $9.9 billion in assets, warned of a “global depression and a major equity market

decline” if Trump implements a proposed tariff plan, Bloomberg reported. “It is still unclear whether


it will happen but at the very least we expect that U.S. trade policy will put downward pressure on

global growth,” they write.”

Contrary to Janet Yellen’s wet dreams, only a blind old fool would fail to realize that it was her own

manipulation of money supply and interest rates that created this state of affairs, which has become reliant

on the continuation of the policy. Of course, I don’t think she’s blind. Just another faithful little hobbit.

Has the financial system strengthened? If you look at the returns in dollar terms - in stock and real estate and

bond prices - the answer would be an emphatic yes. Congratulations Yellen! But in reality, the true state of

affairs is unknown. We know only that it is not as rosy as the Fed makes out. We know if interest rates are

artificially low that there is likely to be many enterprises and investments that would be less economic if not

outright uneconomic at more realistic rates. We know that money printing has replaced savings. And we

know that probably a lot of investments, especially risky ones, are being made under a false sense of security,

in a frothy speculative market with very little connection to actual earnings or value.

Yellen is taking credit prematurely. Shouldn’t we wait until the Fed’s balance sheet has been unwound or

interest rates are normalized before claiming success in the Fed’s policies? Absolutely unequivocally.

But that’s what she thinks about you and the sheep that comprise most of the voting population. She thinks

you’re stupid. She thinks she has fixed the system and set it on a new path. And expects you zombies to eat it all up. And yet, she won’t stay on after February 3rd. Who would want that job, right. You know what I’m

talking about, Janet. I know you’re not blind. We hope you enjoy your retirement reflecting on your legacy.

Coming Tax Cuts Offer Thin Olive Branch, At Best

Marketwatch says, "The Senate’s program looks far more attractive in the short term — the JCT’s score

shows every bracket getting a cut, with the average tax rate falling to 19.1% from 20.7%."

However, the "distributional analysis of the new version of the Senate tax cut plan" drawn up by the Joint

Committee on Taxation, "shows a pretty ugly result over the longer term" with the average tax rate rising by

0.25% - 1.5% for incomes under $50k in 10 years when certain tax cuts expire.

Basically, the net effect looks like the idea was to reform taxes, concentrate them in the hands of local

governments, and postpone some pain. The highlights of the planned changes include a cut in the corporate

tax rate down to 20% from over 30% presently and fewer tax brackets offset by the elimination of state and

local deductions. They can’t figure out if they want to start the alleged cut in 2018 or 2019, but after all is said

and done, as to be expected, it really looks negligible, especially for anyone not incorporated. Arguably the

biggest gains will go to corporations. And as an anarcho capitalist, I would like to tell you this is great news,

but closer scrutiny reveals that it really is not. The code is still very complicated, the cuts negligible overall,

and as I have so often harped on deaf ears (not you dear reader), none of it is sustainable without spending

cuts. This is still much more of a dance between the donald and the deep state than a draining of the swamp

or doing what is required to make America great again.


https://www.marketwatch.com/story/this-brutal-chart-shows-what-happens-when-the-senate-tax-cuts-sunset-2017-11-16

Up 2 Bat Next...

Updates on our gold stock holdings will be out shortly, including an update on Mexican Gold’s par excellente

drill results, and Cascadero’s brightening prospects. This will be followed by my portfolio review, which is

very late I’m sorry but almost there, as are a few other special reports in the line up.


TDV Groups: Portugal

Luis Fernando Mises

Luis: Hello dear subscribers from the Dollar

Vigilante. My name is Luis Fernando Mises. Today I

am interviewing our friend Carlos. He is in Portugal.

My friend Jeff Berwick that we all know and like went

to a Steemit conference in Lisbon, and he was sharing

with me that this is a great person to interview

because the wonderful country he lives in, and he had

a lot of great insights about it. So Carlos, thank you so

much for this opportunity today.

Carlos: I thank you for this interview.

Luis: Thank you. Carlos, tell us a little bit first about

yourself. How did you get connected with the whole

Steemit and Bitcoin community?

Carlos: Thank you. Yes. Actually, I learned about

Steemit from Jeff when he interviewed Ned and

another partner that I don’t remember his name. But

I learned about it, and I created an account on

Steemit last year. I tried posting there something in

Portuguese. It doesn’t work very well until now. The

Portuguese for me is very, very––the numbers are

very insignificant so later on I went on and posted something in English. It works better in this way.

Then I learned that the Steem Fest will be here in Portugal, and so I am 40 km south from there, so I figured I

should go there––even more when I am preparing a nice show for this decentralized application, so I must go

there to make some friends, and also to meet Jeff of course, who I am following on YouTube for almost 2

years now I guess––after I started to learn about Bitcoin and I found him on the site. And I also like what it says about anarchy and that kind of subject. So yeah. That is how I met Steemit.

Luis: That is exciting to hear, and this is a wonderful platform that will help us in the libertarian/anarchist

camp not to get banned and not to get censored and to be able to get the word out. So it has so many

wonderful benefits.

Carlos: Exactly. And also can pay us. When we go to Facebook and publish something, Facebook makes

money with us, and we don’t see a cent, so it is very interesting idea that we can get money from the Steemit


platform, because I hear that a lot of artists are here in Lisbon, and there are people who take photos and

publish their own content. It is interesting to note that we can make some money from our work without

being slaves of the system.

Luis: Absolutely. The other guys on Facebook, they are using us like a milking cow. They’re making money

off of us, and on this one, everybody is able to capitalize on it.

Carlos: Yes. We are the products on Facebook.

Luis: That’s right. That is exactly right. We are what they are selling, and we give ourselves for free. That is

so funny.

Carlos: Yes.

Luis: Lisbon––Portugal––as

far as the conference got in,

any highlights that you want

to share about it? Anything

that you really liked about

that?

Carlos: Yes. I can share one

surprise for me. This is a

surprise. I know there about 4

or 5 Portuguese on there in a

group of 300 people, and I

found one Portuguese guy

called Pedro. I think is an

interesting guy for you to

interview, maybe in the next

program, the next newsletter. Because the guy is developing Dsound.audio, projects, and he presented his

product there, and I used Portuguese. Because I follow him on Steemit.com in Portuguese. Then I talked to

him, and the guy was Portuguese. Sometimes it was Lisbon, sometimes far north. So it is interesting to

discover like that a Portuguese guy involved in the development something new just asked people post some

podcasts or audio or music, like YouTube, but only for alternative.

There is an excellent design of the product. I think the product is very good. There are good opportunities to

grow and make the product a success because it is beyond Steemit. So it is very interesting for me, because I

am only living 40 km from Lisbon in the South in Setubal, which is a beautiful place that I also like to share.

Yes. For me, that is the main surprise - to know that the Portuguese guy is doing a very interesting project at

Steemit from the same country.

Luis: That is absolutely interesting, and I thank you for sharing that with us. As far as––I’m kind of curious.

A lot of times people that read this section of the newsletter are interested in maybe going to different places,

going abroad, or maybe sometimes even retiring. So what are some benefits that easy to retiring in Portugal

versus other places in Europe?


Carlos: For people living here, it is awful because they actually––the beaches get full with tourists right now,

so for us it is awful. For those who came here and it also already happened for 30 or 40 years in the past, and

a lot of people came from the UK to Algarve in the south of Portugal. So the South, the properties are almost

all foreign citizens who own it, so the south––because we have the best water that comes from the

Mediterranean Sea, which is not so cold like here where I live. They are warmer, so they already go there.

They came to visit and when they retire, they spend their retirement there. So that has already happened.

When I leave, it is getting also

very popular in Lisbon. I don’t

know if you know, but Madonna

is here trying to buy a home in

Lisbon. That is very popular in

the news here in Portugal

because of that. She brings her

kids here and she is trying to

find a home here to pass her

retirement. And it is also very

interesting because we have a

national Park here and we have

the river––Sado River––Tróia,

which is a peninsula for rich

people of course––not for

everybody––with a lot of big

coast and the sea coast also. So

it is a paradise, and we live here,

and sometimes we do not get the highest value to that, to this paradise.

Luis: Right. That is understandable. When you mentioned the thing about Madonna, that took me to 2

places at the same time. I am like, okay. Why would I want to live where she lives? But secondly, if she

chooses that place, that means it is a great choice.

Carlos: Yes. Yes.

Luis: So that is very interesting that she would want to be in a place that is beautiful aesthetically and

peaceful. And you know, you mentioned that there are already a lot of people living there and

retiring––expats from other places. So that in itself is pretty cool because a lot of subscribers want to have

that expat community available. So being that that is already there, that is a great advantage. So what is the

cost of living for normal people? I’m not saying for Madonna and all.

Carlos: Yes. The cost of living is very low. Our wages are low also, so the cost cannot be very high. People

here, their wages are less than €1000––a one with three zeroes, right? I’m not very good with numbers in

English, so I guess it is 1000. People who get €2000 here in wages, they are rich people, so of course when

someone came from the UK or the rest of Europe and makes a home here, they’re living like kings because

everything is so cheap. So you can get a dinner for 2 for €20 and something, and you eat a lot, and you eat


good food––good Mediterranean food. So for people that like food and seafood and other good meals, they

are in paradise also.

And weather is good. It is not like the UK where you always get the clouds. Here we have sun almost all

year––9 months at least there is sun here, and now it is getting colder. The last month, it is very hot in

Portugal in October, so it is not normal. This is something that we need to fix. So the country is good for––of

course that people get money from here, they cannot do a very good life here. Sometimes they have to go out

to make a living and then they return to make their retirement here. We have a great history of immigration.

We got French and Swiss, and when people go to retirement, they come back to make their own homes here.

Then they get to have an opportunity to make a good life with the money earned outside.

Luis: Yeah. That usually happens in a lot of places that we have interviews, like Mexico, Panama, Costa

Rica––all of those places. They are very common, and that is actually quite beneficial for us being in the

States with the United States and income, because we are looking for places that are a little cheaper, more

affordable, and just peaceful and aesthetically nice site, clean places.

Carlos: Even security––the security

point––we are a very safe country. Of

course there are problems

sometimes, but it is not like it is news

in Europe. Actually we have more

news from terrorism or fake news or

whatever from France and other

countries than Portugal, so that

point, it is that you, people like

Portugal because they do not get

afraid of getting robbed in the street.

For example, some people came from

Brazil. They all speak Portuguese,

only different way of speaking, but

they all speak Portuguese. They like

to come to Portugal because they are

afraid of being robbed there. The crime levels in Brazil are kind of huge I guess. I’ve never been there, but

that is what some Brazilians told me personally. So it is not like that here. People are feeling safe on the

street.

Luis: That is a great, wonderful upside. That is what we are looking for. You know, when we try to go to other

countries, we are used to the ability of being––like feeling safe here in the States. That is a huge thing, so

going to a country, that is a huge peace of mind. Now what is kind of like the cost of rent for like an apartment

or a house? Do you have an average, maybe like a normal 2- or 3-bedroom house?

Carlos: Yeah, in Lisbon, it’s a bit more. I do not live in Lisbon. I do not really like to go there because the

traffic is much more complicated than here. Here I feel that I live in the fields, but I don’t. It is a city. It is the

capital of the region––a district, as we call it here. So here we have had 3 bedrooms, we can get something for

€500 or €600 a month. That would be nice location in the city. Of course, with more money, with €1000, you

can get a very, very beautiful place in the big beautiful zones of the city with carvings around and view for the


river and for the sea. So you

have more money, you get a

better view of course. And if you want to live––not in

apartment, that you want to

live in a house, you can get it for €2000 a month, or you can

buy it maybe it is more

profitable.

Normally, houses, we don’t

rent so much houses. Condos,

yes, but houses, normally

people buy them. For a few

marks and other companies in

the industry of houses, they

preferred to sell because they

actually get more money from

it. The rental industry is not very strong here. It is a cultural thing. People normally buy their own homes as

they start to work like a slave in the financial––it is what people tell us to do, buy a home. It is not very

common people only rent it, but in these days, it is actually a growing tendency.

Luis: Okay. That is pretty interesting to hear. So, your entire country touches water, so surely there are a lot

of people on the beaches. Surely there is enough to go around?

Carlos: Yes. Yes.

Luis: How is that?

Carlos: The Atlantic Coast, the water is a little bit colder, so people normally do not enjoy it so much. So

because you get the end of the Mediterranean Sea, the water is very nice. It is very warm, so even people from

Portugal, they tend to go there in the summer. So in summer, the country is almost living in the South near

the water with a lot of tourists there. Actually the tourists come and live here, they tell me they prefer to live

there in the winter because everything is calm and they live in peace there. And then in the summer, other

tourists come to visit, and the Portuguese community comes there also from the north of the country, so it becomes a big mess with a lot of cars and a lot of confusion. But in the winter, or even in the spring and

autumn, it is better for living there.

Luis: Yeah? What places would you recommend? Because I know Lagos, Portimão, Albufeira––

Carlos: Yes.

Luis: ––and even closer to Spain towards Altura, or Tavira––all of you those, which are your favorites?

Carlos: I would like to try all of them. This year I was in Lagos and in Portimão also a little bit. They are all

fine. They are all nice. I like to change and don’t go every time to the same region. Actually, I was born in the


north of the country, so when I

was a kid and I was going on

vacation with my parents, I

usually go to the North. To

Chaves is where I went. It is a

very beautiful place that

doesn’t have the sea, only a

river and a lot of history. But I

lived in Portugal when I was 3

years old, so I made my life

here. So I have the beaches

here. Not only do I go to the

beaches here in Tróia, which is

a peninsula. So this is very

nice, very beautiful, and

recently because I get more

money, I get well paid, so I

normally go to Algarves also.

But I like to pass 5, 15 days or so, because I like to do things, and vacations for me kind of get messed up

without anything to do. It gets me a little frustration or stress because I need to keep my mind occupied in

doing stuff, and when I go more than 15 days, I get a little bit paranoid without anything to do.

Luis: That is kind of normal. But I mean, the North is just as beautiful as well. There is a lot of green stuff.

And on the other side of Chaves, we have Parque Natural de Montesinho.

Carlos: Yes it is. It is also very beautiful.

Luis: Indeed.

Carlos: In there, which is––we had some snow in the winter. People can do the snow activities there, but

only for one month or 2 because it is not like the Swiss. The Swiss are not like the Spanish mountains, so it is

only 2000 km high, but it is very beautiful, the view, and the gifts you can do there without going to a foreign

country.

Luis: Yes. That is super exciting to hear. What about––a lot of libertarians always make fun of the roads here

in the United States. What are the roads like there? Is it easy to rent a car and go places?

Carlos: Yes. The roads are very good because we build them with a European company managing, and we

are trying to pay right now. The public debt is so high, but the roads are very good. For the past 20 years,

we’ve had a highway to Algarves, and actually we have a lot of high-speed roads. They are in good condition

because we pay with taxes, so that kind of infrastructure is good––even the fiber optic. We have the biggest

fiber optic network in Europe, so we have a very good Internet, very good infrastructure. So water and

energy, it is good. So it is not like going to Africa or something, right? Yes. The roads are very good. We have

to pay for them. We have a higher cost of toll. Tolling, I think that is the word in English. But you have to pay.

It is not free, but they are good and in good condition.


Luis: That is excellent. So let’s talk about the Internet because I forgot about that one for a moment. I mean,

gosh, just to think about that, what is your normal speed of fiber-optic over there for the country?

Carlos: Yes. Now most days, we normally have 100 MB up-and-down for 20 something Euros. Twenty-three

Euros a month and you can get those speeds right now. And actually you can buy 1 GB for download and 200

for upload, but you pay more like 50––a little more in Euros. Sometimes you also get the TV, which is

programming, but yeah. The Internet is good.

We have a lot of investments here in the last years from various sources, actually. And actually today it’s PT,

the owners of Portugal Communications from the people, the public services. And they invest a lot. Even in

the countryside, we have some service places where the fiber optics are getting there, and every year more

and more. So it is very good and solid. That is why we also attract web summits and other startups are getting

set up in Portugal in Lisbon because the technology infrastructure is very good.

Luis: Yeah. That is very exciting to hear. That is actually very exciting. Here in the States, we have a pretty

good Internet, but there are a lot of places that are very low quality.

Carlos: A lot of problems, right?

Luis: Yes. You know what I think is kind of interesting is that here––I mean, it is not a huge difference, but

over there you guys––I am paying the same $50 amount for the same Internet that you are getting, so you

guys are getting probably better quality at half the price, that is excellent.

Carlos: And also we have the connections for the United States. They are going from Lisbon and other places

in the South, so we are very well connected––not in the rest of Europe like Belgium or something where you


are super connected into the IT network, but we

connect to Brazil and the United States, so the

Internet speed is good for them because we are in the

middle of transition between Europe and the

Americas.

Luis: Yeah. That is super exciting. Friend, is there

anything that we are missing that you would like to

add?

Carlos: Well about the country, I think I want to talk

about crypto currencies. We are not so well

developed as the United States and Canada. People

do not use it as much, but we have dynamics or other

solutions that we can use in everyday life where they

accept Visa. So we also have some ICOs going on in Portugal––at least one in the north of the country that is

public. It is called Utrest. They are trying to replace Paypal, which is very interesting. I’m not involved in the

project, but I meet this CEO on Monday because there is another conference there called Boxspot. So I hope

to meet the guy––the Portuguese guy––in Lisbon. And I also am working with another ICO. I can’t talk too

much about it right now because it is not public yet, but if you allow me, I will give you 2 tips about it. Can I

do it?

Luis: Yes, of course.

Carlos: So we have a website. You can search for M-X-L dot P-T. That is the Portuguese. There is not any

information there, but people can subscribe to receive information when we go public. And I can get another

tip which is that the Portuguese in the 15th century, we discovered the routes for India and China and most of

the world, but this project is kind of related with that. I hope to make history again and make Portugal

develop a new bigger project to decentralize this type of service. I can get you more information later on

off-line and off the record.

Luis: Yeah. That would be great, and when we create a Facebook group for Portugal, you can even add there

for all of those who are interested in receiving this information.

Carlos: Of course. Maybe when you go public––maybe in 2 weeks or 3––I actually delayed it a few weeks

because of the SteemFest, because I went there almost one week. We will do our best sales on 18 December

this year, so it doesn’t go too much more time until that.

If you want to join the main TDV Group, please send me an email so I know you are a

subscriber.

If you want to join the main TDV subscribers’ only Facebook group click HERE. To see a list of all worldwide TDV Groups click HERE.

To join the Lisbon group click HERE. If you have any questions about the groups or if you’d like to start one in your area contact Luis Fernando

Mises at [email protected].


https://www.facebook.com/groups/dollarvigilante/

http://tdvgroups.com/

https://www.facebook.com/groups/TDVGroupsLisbon/

mailto:[email protected]

In Closing… Don Lavoie

The central interest of my research has always been the

issue of knowledge. I am convinced that across a wide range

of issues, contemporary thinking is fundamentally off-target

in its understanding of knowing. It misunderstands the

processes by which human beings acquire, invent, and

share knowledge, which its conceives as a static,

individualistic, and objective thing. It misses what one

might call the internal dependence of knowing on

inarticulate skills as well as the external dependence of

knowing on social processes.

My work in the field of comparative economic systems has

been focused on elaborating the knowledge issues in the

Critique of Centralized Economic Planning. I claim that

Marx properly saw the incompatibility of economic

planning and market institutions, but never understood the

way markets serve a vital knowledge-discovery and

communication function in complex economic systems.

Less extreme proponents of economic planning imagine the

possibility of controlling the market process, that is, getting

the benefits of markets without letting them work in their

own uncontrollable directions. Marx was right, effective markets and the active steering of the economic

process don’t mix. Once we concede the need for markets we need to abandon the aspiration for control over

the economy.

Donald Charles Lavoie was an Austrian school economist influenced by Friedrich Hayek, Hans-Georg

Gadamer, Michael Polanyi and Ludwig Lachmann.

Disclaimer: The Dollar Vigilante needs no disclaimer. Everything we say here is what we believe. Furthermore we need no disclaimer because we believe that all nation states, governments,

securities agencies or other legislative bodies are illegitimate and we do not recognize them nor believe we need their permission to say what we feel about any topic and frankly think it is hilarious

that people think a government body should be there to protect them.

However, because we know that all manner of Government agencies will come after us just for showing such disdain for them we are going to include a standard, cookie-cutter disclaimer below just

to keep them off our backs. Enjoy reading it, bureaucrats at the SEC.

Information contained in The Dollar Vigilante Emails or on The Dollar Vigilante website (www.dollarvigilante.com) is obtained from sources believed to be reliable, but its accuracy cannot be

guaranteed. The information contained in such publications is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. The opinions

expressed in such publications are those of the publisher and are subject to change without notice. The information in such publications may become outdated and there is no obligation to update

any such information.

Jeff Berwick, Ed Bugos and other analysts or employees of The Dollar Vigilante may from time to time have positions in the securities or commodities covered in these publications or web site. Any

Dollar Vigilante publication or web site and its content and images, as well as all copyright, trademark and other rights therein, are owned by The Dollar Vigilante (TDV). No portion of any TDV

publication or web site may be extracted or reproduced without permission of The Dollar Vigilante. Unauthorized use, reproduction or rebroadcast of any content of any TDV publication or web

site, including communicating investment recommendations in such publication or web site to non-subscribers in any manner, is prohibited and shall be considered an infringement and/or

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TDV reserves the right to cancel any subscription at any time, and if it does so it will promptly refund to the subscriber the amount of the subscription payment previously received relating to the

remaining subscription period. Cancellation of a subscription may result from any unauthorized use or reproduction or rebroadcast of any TDV publication or website, any infringement or

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November Dispatch - The Dollar Vigilante

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Transcript of November Dispatch - The Dollar Vigilante