A Simple Guide to the Most Important Subject You Never Learned In School, What Our Money Is, Its History, and an Analysis of a Failing System.

Critical Mass Default

Critical Mass-Definition #1. An amount of material (such as plutonium) that is large enough to allow a nuclear reaction to occur.Definition #2: The size, number, or amount of something that is needed to cause a particular result.The mainstream financial press has once again failed to properly inform and educate the public. This time by not pro...
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China's Crash In Context

This is a follow-up to a post I made a few months ago, US Strength in the Upcoming Monetary Shift.  In that previous post, I challenged the notion that the United States would be entering future negotiations for a new monetary system from a position of weakness.  It outlined some of the weaknesses of other world powers and some of the strengths of the United States.  It was not to say that the US would sit at the head of the table, though I certainly don’t rule that out, only that it would not be absent, left in a pile of...
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Guest — Rodster

China Will Not Save The World

"the question is whether the Chinese Government would be willing to give up control of the monetary system, and be restricted by a... Read More
Thursday, 16 July 2015 05:49
Guest — Joe


China probably has tons more gold than they officially report but I don't think they could back the Yuan with it even if they want... Read More
Monday, 10 August 2015 11:23
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Why Governments Love Pensions

While growing up, my parents, like most parents, tried to give me as much information about different career paths as they could to help guide me in my life choices.  I remember my mother telling me about how the benefits, particularly retirement, were often better for most government jobs though the pay usually lacked.  She would say: “If you want to go into the military, go in as an officer.  Stay in for 20 years and you will secure a great retirement in your early 40’s.” At the time, I wasn’t all that concerned about retirement, but I listened and remembered...
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Aurum. Gold for the 21st Century

The problem of using precious metals for small denomination coinage has been an issue for centuries. This brought the United States to an awkward quad metallic system using gold, silver, copper, and nickel in its coinage.  It is hard to believe today, considering we have copper coated zinc tokens, but the value of a cent was so great at one point that the amount of copper necessary in a penny would have made it too large and cumbersome to be practical.  Because of this the US mint experimented with a small plug of silver in a penny but it was not cost...
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A First Step Toward Sound Money

Here at Debtcrash we have dedicated much of our content to determining how the government and banking interests might deal with the failing debt based monetary system here, here, here, and here.  This is for good reason since they will likely determine the path taken.  I have tried to make it clear that these are not the directions I would like to take our monetary system, so now I would like to offer a first step of what I would consider the right direction.  It is only a first small step since changing over 100 years of monetary inertia cannot be...
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Guest — Dale

Blockchain tech

Those coins could be publicly tracked via Bitcoin blockchain.
Tuesday, 14 July 2015 16:58

Good Idea

Good idea! I hope they correct the bitcoin block-chain size issues to make color coins more practical.
Tuesday, 14 July 2015 17:23
Guest — PeterB

Value per ounce of gold and si...

The value of the metal would be what? Gold equals $20,000.00 and sliver equals $1000.00? Is that the plan?
Friday, 14 August 2015 08:16
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The Case For Owning Bitcoin from a Crypto-Currency Skeptic

So why am I, a self proclaimed bitcoin skeptic, putting up a post on why bitcoin has a place in a modern portfolio?  No I have not changed my mind on bitcoin.  There is still significant evidence that it was created by those who do not have economic freedom in mind.  That said researching and writing my last piece on the commonly held belief among financial commentators and advisers that the correct allocation to precious metals is 0% forced me to take a second look at bitcoin.  An absolute claim like, you should not own ANY precious metals, rubbed me the wrong...
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Guest — MikeWismer

Bitcoin for Everyday Usage

Many articles about Bitcoin (yours included) focus on Bitcoin as a possible investment, while ignoring its usefulness as a currenc... Read More
Monday, 06 July 2015 13:12


First, thank you for your comment. I think you make a valid point, but I don’t want to get caught up on the semantics of what asse... Read More
Monday, 06 July 2015 14:00
Guest — MikeWismer


I agree that a discussion over what constitutes money, etc is pointless. Whether we agree or not is immaterial - I can store my e... Read More
Monday, 06 July 2015 15:39
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0%? Really? Zero?

I recently got into a disagreement with a colleague of mine.  He believes that the proper allocation to gold (or other precious metals) is zero, and as you might know, I feel gold and or silver are an essential part of every portfolio.  I'm sure this conversation is not unique and I wanted to address the articles and information found on the web that attempts to support the claim that you should not own any precious metals. I will address this piece by David Marotta specifically since it encompassed several points I found in other sources.  The primary focus of this article is that gold does...
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Another gold Bashing Article N...

Another gold bashing article. http://www.forbes.com/sites/trangho/2015/07/04/the-loathsome-truth-about-gold-and-why-it-should-cra... Read More
Saturday, 04 July 2015 13:56
Guest — Technocrat

Gold Is Not The Solution

I think this guy sums up the problems with gold best:http://johntreed.com/golddisadvantages.htmlI would also like to add that gold... Read More
Sunday, 09 August 2015 14:54


Technocrat, You make some good points, and I agree with much of it, and that is why most of my PM portfolio is in silver. You get... Read More
Sunday, 09 August 2015 15:29
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Never Let a Good Crisis Go to Waste

Untitled_20150526-000211_1.png“Never let a good Crisis go to waste when it’s an opportunity to do things you had never considered or you didn't think were possible.” – Rahm Emanuel, Chicago Mayor, former Congressman and the Obama Administration Chief of Staff If Rahm is willing to admit such things in public, how much of a stretch is it that he would not try to prevent a looming crisis, or even willfully cause one, if it allowed the opportunity to implement policies he has always believed in, but thought were impossible.  Mr. Emanuel is not unique in his thoughts surrounding crisis, he was just the...
Recent Comments
Guest — Professorlocknload
Create a crisis, offer a solution,,,as old as Machiavelli
Monday, 25 May 2015 23:09
Guest — Pater Tenebrarum
I completely agree with this observation. One thing "they" may be failing to take into consideration is that such plans could go h... Read More
Friday, 29 May 2015 23:03
Guest — coletrain
I have enjoyed reading this whole blog start to finish over the past few days. Thank you for your views/analysis.
Tuesday, 02 June 2015 14:57
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E Dollar Vs Negative Rates

If you are unfamiliar with the E dollar concept, please read this post before reading on.   In my last piece I went over how negative rates exacerbate bubbles. In this post I wanted to cover the likely outcomes resulting from implementing the E-dollar vs. negative rates.  They are both solutions that have been raised in the financial mainstream to the monetary problem we are now facing. Specifically, an unsustainable debt resulting from a feature of our debt based monetary system to grow debt generally faster than the underlying economy.  For the latest (1/31/16) moves central banks are making toward the Crypto-E Dollar Click here. In a negative rate environment there would...
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ECB Preemptively Backstops Assets

b2ap3_thumbnail_Depositphotos_9724083_xs.jpgThis morning the ECB has essentially decided they are going to increase QE as a preemptive move due to a historically period of low liquidity. "(We are aware) of seasonal patterns in fixed-income market activity with the traditional holiday period from mid-July to August characterized by notably lower market liquidity," An ECB official said. Adjusting the amount of money being created to buy assets due to the fear of a lack of buyers, lower market liquidity, smacks of desperation.    Central banks have gone from being data dependent, to implicitly market driven, to giving equity and bond holders an explicit guarantee that...
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Ban on Cash, Negative Rates, and Super Bubbles

a1sx2_Original1_Untitled_20150517-124147_1.png  Recently there has been has been a rising chorus to do away with cash, here, here, and here.  You will hear several reasons why this is necessary, but there really is only one.  The banking interests want to be able to implement significant negative interest rates and participants in the economy being able to opt out of negative rates by removing cash from the banking system makes this very difficult. So how did we get here?  Over the past 70 plus years we have been living in a credit created bubble that has supported the economy, but as Von Mises said: "There is no...
Recent Comments
Guest — Sergio
You have missed one form of negative interest rate tools and that is to tax savings. The Australian govt is proposing this tactic ... Read More
Thursday, 28 May 2015 21:44
Guest — Bob

principal and interest

So, how does one determine a payment towards principle and interest on a loan of negative interest rate? Normal scenario monthly p... Read More
Saturday, 08 August 2015 09:46


Yes in our world of positive rates, and what should be a logical world, we don’t have to worry about negative rates. You can cal... Read More
Saturday, 08 August 2015 11:12
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The Reason Economists Can Feel Safe Discussing Bans on Cash

Post-Pic.pngWhy do economists currently feel as if it is acceptable to discuss banning the use of cash?  There is the obvious answer that since their go to solution to periodic faltering of the debt based monetary system of lowering interest rates has hit an end point at the zero lower bound, they feel it is necessary to implement negative rates. Yes they certainly see a necessity, which is interesting, considering they would never admit that changing the monetary rules is an indication of failure of their theories. Yet there was a time when going cashless would have been seen for what...
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Guest — Flicker
I’m still trying to understand all of this. Is this all just a coincidence? Was it just random chance that a religion, a major ... Read More
Sunday, 17 May 2015 19:08
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1 Comment

What is a Conspiracy Theory?

In our society the term Conspiracy Theory brings out strong negative reaction in most.  Visions of nutcases dance across most peoples mind, and several years ago I had the same reaction.  That was until, feeling that there was something off in the economy, I started to do my own research.  What I found was there were countless undisputed examples throughout American history that if brought up before and even for years after the fact would have been considered what we now call conspiracy theories. Here are a few examples that stuck out to me: Prior to the United States entering World...
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Guest — Flicker
I used to think conspiracy theorists had weak and superstitious minds. And now I R one. At the same time, some nearly four decad... Read More
Monday, 18 May 2015 21:10
Guest — Stew
You're known in the conspiracy world as a "RELITARD"
Monday, 25 May 2015 14:25
Guest — Stew
Monday, 25 May 2015 14:25
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Alan Greenspan, Angel or Demon

Alan Greenspan is a man derided as the nemesis of Austrian economics and free market capitalism for good reason.  The long standing chairman of the Federal Reserve implemented policies that exacerbated the boom and bust cycle of recent decades.  For those paying attention this could end in nothing but failure of the financial system as we know it.  To the casual observer he and his apparent strategy was the enemy of sound money, but looking at all of the information available, there are major inconsistencies in this thought process.  This post is the second in my challenge series.  I will challenge...
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Oil Price Drop Root Cause Analysis

The crash in oil prices over the past year is yet another clear-cut example of misallocation of resources caused by low-interest rates imposed by central banks, but to determine the solution to these misallocations we must determine, not just the cause, but the root cause. As with tech companies in the ‘90’s, and housing in the 2000’s, oil exploration and production deserves investment.  It is the markets job to take in all available information and signals to determine the level of that investment.  When rates are artificially held too low these signals are distorted and the market cannot properly allocate capital. ...
Recent Comments
Guest — Thomas
Do you think industries like the oil industry... are allowed... or encouraged to rise and bust?.... If so I can imagine the people... Read More
Sunday, 19 April 2015 15:05
Guest — debtcrash
Booms and busts are just a feature of a debt based monetary system. The monetary powers can incentivize debt and subsequent money ... Read More
Sunday, 19 April 2015 15:27
Guest — Van der Elst Hendrik
So, reading all this, zero interest we got already. But it doesn't work - debt keeps going up like hell. Leaves us to massive defa... Read More
Thursday, 23 April 2015 11:18
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Economist Buiter Proposes a Cashless Society

I came upon this article yesterday from Bloomberg: http://www.bloomberg.com/news/articles/2015-04-10/citi-economist-says-it-might-be-time-to-abolish-cash The suggestion to eliminate cash is shocking enough, but to explicitly state the reason is to implement negative rates is jaw dropping.  Said another way, this is a banker pushing a policy to have you pay the institution he works for to speculate with your money.  They state he is an economist which for many of the readers of that article probably conveys he is some impartial academic making an objective policy suggestion, when he is nothing but shill for the banking industry and specifically for the bank HE works for.  The...
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Precious Metal Purchase Program

Welcome to the Debtcrash Precious Metals Purchase Program.   The normally suggested method for purchasing precious metals is to dollar cost average.  Dollar cost averaging is just another way of saying you are investing a fixed dollar amount each month into an investment.  While this is a mindless way of investing, and that takes the pressure off the investor, it does not take advantage of price dips as aggressively as some investors would like. An alternative to dollar cost averaging is to attempt to 'buy the dips', or subjectively become more aggressive when the price appears to offer a good deal.  This...
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Guest — Edward
This is a great program and will help me manage my future investments. The Tutorial is excellent and very easy to follow. Thank ... Read More
Thursday, 23 April 2015 11:35
I am sure the govt will be glad this is on folks computers when they come knocking. Suggest you keep it on a discreet lap top that... Read More
Wednesday, 06 May 2015 20:37
Guest — Capt Debtcrash
While I doubt the govt will go after individuals it is a valid concern. I'd suggest putting the program on a thumb drive and or ma... Read More
Friday, 08 May 2015 19:16
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Look Forward to Precious Metals Not Back

There is no standard belief among those who question our debt-based monetary system that is more consistent than the necessity to hold precious metals in one's portfolio for protection.  I am not unique, I believe hard assets, particularly gold and silver, are essential in today’s investing environment. The reasons often given for holding precious metals normally take a look back at history to prove the point.  They will show how no fiat currency throughout history has survived.  There are stories of how gold protected people during the Wiemar hyperinflation, such as when a German bellhop bought the hotel he worked at...
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Guest — Don Ameche
Hello.I found your site via a link on ZeroHedge.I wonder about confiscation. It seems to me that there is every reason for the pow... Read More
Wednesday, 08 April 2015 16:33
I agree confiscation is a possibility. I believe that can be mitigated by PM's only being a part of your portfolio. Some diversifi... Read More
Wednesday, 08 April 2015 19:32
Yes diversification amongst assets is key. But confiscation seems to be lurking amongst different asset classes all at the same ti... Read More
Thursday, 09 April 2015 16:59
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Recent Trends Toward the E Dollar

    This post is a quick overview of the E-Dollar with some updates from when I wrote my first post that are making my prediction that it could be implemented more and more likely. I stumbled across the E-Dollar in the following Business Insider article: http://www.businessinsider.com/electronic-currency-2013-11 The article is interesting, and frightening, but please skim over it to understand the rest of the post.  Reading this article was an epiphanic moment for me, not in the sense that I thought that the E Dollar was the proper solution to our monetary ills, but that it was the perfect solution for...
Recent Comments
Guest — Flicker
I used to think conspiracy theorists had weak and superstitious minds. And now I R one. And at the same time, some nearly four d... Read More
Tuesday, 19 May 2015 02:12
Guest — MikeWismer


I'm having a hard time wrapping my head around the concept. This is simply a form of inflation that is out in the open instead of... Read More
Monday, 06 July 2015 20:39

E Dollar

Mike, The E dollar would allow a gradual total credit market debt haircut, banning cash, and allow the implementation of negative ... Read More
Tuesday, 07 July 2015 05:59
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US Strength in the Upcoming Monetary Shift

There is one thing that the current Austrian economic minded Libertarian community seems to pride themselves on and that is challenging the mainstream narrative.  I count myself among them.   I would like to turn some of that skepticism back on some of the standard trains of thought that are often touted as self evident by many among us in a series of posts. The first accepted ‘fact’ I would like to question is that during the next world monetary overhaul the United States will be doing so from a position of weakness.  Here is a quote from Mike Maloney when answering...
Recent Comments
Guest — jim
Triffin dilemma. Sdr's transformed into Bancor. This was already talked about so long ago. It was asked for in 2008 by the Chinese... Read More
Wednesday, 01 April 2015 14:58
Guest — B.Strong
Jim...you're on the money. The 2008 report reintroduced by the Chinese and later weighting the options 2010 are on the missing imp... Read More
Thursday, 02 April 2015 13:36
Guest — genomir
USA's economy is leveraged by credit as the PRC's but don't forget that PRC is the biggest net importer of gold and the biggest bu... Read More
Friday, 22 May 2015 03:20
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Bitcoin an E-Dollar Beta Test?

The E-Dollar is a new form of currency, albeit a questionable one, that could solve the unsustainable debts of the current monetary system.  It fits the mold of past currency overhauls, namely it increases the power of both the banks and the government.  This post is the result of new information that has been brought to my attention about bitcoin and not a re-explanation of the E dollar.  If you would like more information on the E dollar please read my first post History and Introduction. In that first post I explained why bitcoin has been permitted by the government  when they have...
Recent Comments
Guest — John Roberts
Exactly:Bitcoin is allowed to exist, because it is a government invention designed to replace currency and the black market, and g... Read More
Wednesday, 01 April 2015 09:43
Guest — moe
Bitcoin is allowed to exist because they have no way of taking it down. It is decentralised.
Friday, 01 May 2015 02:14
Guest — Bill
Bitcoin was first talked about in the 90's by the cypherpunks a group of hackers that could see that the information revolution an... Read More
Saturday, 16 May 2015 23:17
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Financial Repression Can't Work This Time

Financial Repression after WW2Financial Repression is defined by Lexicon.com as measures sometimes used by governments to boost their coffers and/or reduce debt. These measures include the deliberate attempt to hold down interest rates to below inflation, representing a tax on savers and a transfer of benefits from lenders to borrowers.   Obviously this is an insidious way of reducing a nations debt load and is simply a shift in the debt load from the public to private sector.  Like the use of military force its use should certainly be done with great discretion if at all.    The use of military force often uses...
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I Bought What?!

There are several nations that charge investors for the privilege of loaning money to them. Denmark yields are negative past a year, German yields are negative out to the 5 year bond, Switzerland bond yields are negative past 7 years, and even Austria sports negative yields on short term debt. Now why would any investment entity allow a borrower to take their money, tie it up for several years eliminating the ability to use it, finally ending up with less than they started? Any rational investor would keep the cash and maintain the flexibility to use it if an opportunity...
Recent Comments
Guest — thomas
You have just destroyed my life with your 'inconvenient' truth. I need to get out of here fast so i can find the closest hill...go... Read More
Monday, 09 March 2015 11:50
Guest — Mike
Wow, and I've been considering selling the stock holdings in my IRA and just sitting on 'safe cash'......well, F*** me harder........ Read More
Monday, 09 March 2015 19:33
Sovereign bonds can afford to offer slightly negative yields because the cost of selling and investing in something else, perhaps ... Read More
Wednesday, 11 March 2015 19:46
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Debt Taken On By Fools

NEVER A ZERO SUM GAME   It is often touted that total debt carried by a government or total debt in general does not matter because debt is one person’s liability and another's asset thus a zero sum game.  This is plugged most loudly by Paul Krugman in an attempt to explain why the enormous debts of nations such as the United States and Japan do not matter.  Nothing could be further from the truth.    For example consider a productive farmer and an adjacent town full of people.  The townspeople accept the farmers’ food but do not repay the...
Recent Comments
Guest — Hunt4Steve
I've been telling my family for years the stock market only provides them with paper assets that "tell" them they have so much val... Read More
Thursday, 26 February 2015 13:07
@Hunt4Steve. I'm going to be making another post you may want to show to you family in a few days. Thanks for the reply.
Thursday, 26 February 2015 13:41
Guest — Debt Crash
Here's the new post http://www.debtcrash.report/entry/i-bought-what
Sunday, 08 March 2015 07:31
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