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Thomas Luongo



Articles by Thomas Luongo

The Digital Yuan, Proof of Guns, and the Expiration of Money

27 days ago

One of the things that converted me to the Austrian way of thinking about the economy was the concept of money with an expiration date.  Early articles at Lewrockwell.com and Mises.org covering hyperinflations of various forms and kinds horrified me when banknotes and government scrip reached the point of forcing people to spend money versus having it lose its ‘legal tender’ status.
Money that ‘expired’ like points on your credit card was simply a horrifying idea.
Martin Armstrong makes the point all the time that the main reason why the U.S. dollar is the world’s reserve currency is because it is the only modern government-issued currency that hasn’t been defaulted on in over two hundred years.
In fact, it was the consolidation

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Evading the Dollar Trap

March 24, 2021

This report from RT from last week is the kind of thing that feels like a press release from Russia.  It’s to let everyone know that whatever happens next the Russians are prepared for it.
The key to understanding what’s happening here is the following:
Within the Eurasian Union, consisting of former Soviet republics Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, trade using foreign currencies such as the US dollar and Euro has dropped to around a quarter of transactions.
With Russia coming forward internally, capable now of building and supporting a commercial airplane industry, their relationships across central Asia and transacting in local currencies becomes a ‘rising tide lifts all boats’ situation with Russia as the

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It’s the Debt, Stupid

March 19, 2021

Nearly thirty years ago Bill Clinton won the presidency with four simple words which summed up the failures of Bush the Elder’s administration…
“It’s the economy, stupid.”
In January, Joe Biden took office in the wake of a ‘pandemic’ which devastated the global economy.  And to the best of my ability to parse, Biden believes COVID-19 more dangerous to America than the damage to its economy our response created.
It’s hard to parse anything Biden says because on the best of days he’s mostly incoherent.
But the divide along partisan lines engendered by COVID-19 are deep. It emboldens him and the Democrats to extend the narrative that COVID is more dangerous than a broken economy for as long as possible, using it to exercise

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The Greening of the Grid Froze Texas

February 26, 2021

Polar winds scream out of Canada in seeming revenge for Joe Biden canceling the Keystone XL pipeline.
Texas’ power grid collapsed as temperatures more likely in Sioux Falls than San Antonio roared in plunging more than 4 million people into darkness and without heat.
How can this have possibly happened in a place whose entire cultural identity revolves around producing energy?
Simple.
Texas’ deregulated energy market went green over the past decade. In the past ten years, according to the EIA, Texas retired more than 5,000 MW of coal-supplied power while spinning up more than that in windmills.
Wind produces the marginal, or last, megawatt in Texas, in this case the last 17%. Nuclear provides the first megawatt, less than 10%.

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Did Salvini Fold or Go Undercover by Supporting Draghi?

February 10, 2021

Matteo Salvini just stabbed the populists in the throat. Or did he? The Italian firebrand and face of the Italian populist right did the unthinkable over the weekend, by very conditionally supporting former ECB President Mario Draghi’s attempt to form a government.
Salvini, as the head of the Center Right coalition and Lega, is in political limbo. He’s embroiled in a nonsensical lawsuit in Sicily which is nothing more than political theatre meant to dog him and de-legitimize him.
He’s been out of power since September 2019 when he broke the government formed between Lega and Five Star Movement(M5S). M5S leader Luigi Di Maio then betrayed the party’s populists by making a deal with their personal devil, the Democrats to stay in

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All Hail the Conquering Central Bankers – Or Else

February 8, 2021

If you are unclear what’s happening, frankly, you aren’t paying attention. The central banks, at the urging of the World Economic Forum, have come from behind the shadows to assert their will over the world.
In order to create the imprimatur of depth and sincerity Fungal President Joe Biden tapped former FOMC Chair Janet Yellen as his Treasury Secretary.
It doesn’t matter that Yellen was the architect of the worst recovery in history or that her incessant dithering on ending QE and raising rates. She’s a woman. Right?
The only good thing about Yellen at Treasury is that Steve “Mr. Goldman” Mnuchin is gone. All Mnuchin did at Treasury was ensure the outsourcing of monetary policy to Blackrock through the loan programs of the CARES

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End the Great American Myth: We Want Secession, Not Revolution

December 24, 2020

I remember the 1970’s driving around New York City with my family during the holidays like they were yesterday.
Back then the talk in the front seat of the car between my parents was New York City’s bankruptcy. My dad, NYPD at the time, was as much a part of this as anyone since the Police pension fund helped bail out the city government back then.
The West Side Highway fell down and because of that I grew up with a fear of heights and, especially bridges. I really hated taking the back way (New Jersey) into Staten Island. The mere mention of the Outer Bridge crossing would nearly put me into a panic attack.
I remember thinking then, “If these people can’t pay the bills now, what’s it going to be in ten or twenty years?” Sure, I

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Hungary and Poland Create the Unbridgeable Gap of the Great Reset

November 30, 2020

There comes a point where negotiation becomes surrender. Those actively undermining you will always demand more than their right. Those behind the Great Reset have been creating no-win situations for voters for decades to this exact end.
Over the summer Hungary’s Viktor Orban and Poland’s Mariusz Moraweicki led the opposition to the EU’s budget and COVID-19 relief package standing firm that funds not be tied to any internal political decisions member EU states make.
Both of these countries have incurred the wrath of German Chancellor Angela Merkel over things they do she doesn’t like, invoking Article 7 against Poland over changes made to its Supreme Court, for example.
So, this is nothing new. Neither is the way the EU conducts

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US Color Revolution: The Not So Phantom Menace

November 11, 2020

“There is no civility, there is only politics…The Bureaucrats are in charge now…”— Senator Palpatine
The Black Revolution in the U.S. is proceeding according to script. We are into the 3rd act of it.
Act I was the Coronapocalypse setting the stage for vastly expanded government powers and the systemic undermining of the sitting President.
Act II was the summer of violence and fake polling data which created the illusion of a society at war with that same President for not addressing the needs of the people.
Underneath the headlines the forces arrayed against Trump were building the infrastructure to ensure that however the people voted on November 3rd, the outcome was pre-determined in their favor against him.
Act III is the

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Trump Rallies or Struggle Sessions – A Lesson for Libertarians

November 4, 2020

This election season hasn’t been about Trump versus Biden. It hasn’t been about capitalism versus socialism.
It’s not even about liberty versus authority.
As I said in my last article this election is about a simple choice, facing a chaotic future with courage or fear.
Regardless of who wins, my many libertarian friends and colleagues are correct that the ship of state cannot and will not be turned at this point in any meaningful way.
There are forces at work which will unleash hell on earth if Trump wins, which he should.
If the past four years have taught us anything it should have taught us that.
What’s on the ballot tomorrow is something much larger, however, because hundreds of millions of people in the U.S. and Europe are

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BidenGate – That’s Quite Enough of That

October 31, 2020

Everyone has a limit. Everyone.
And when pushed to that limit we all have a choice, push back or submit.
Tony Bobulinski reached his. And it has doomed the Democrats’ chances in this election cycle regardless of what happens on Tuesday.
In his widely-censored interview with Tucker Carlson Bobulinski’s ‘disgust circuit’ was on full display. I’ve talked about this in the past.
Normally the disgust circuit is triggered through the classic “Nuts and Sluts” shaming technique used on Republicans or anyone else the powers that be want removed from the public stage.
“Nuts and Sluts” is easy to understand. Simply accuse the person you want to destroy of being either crazy (the definition of which shifts with whatever is the political

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ObamaGate’s Endless Saga — None Dare Call It Obstruction

October 13, 2020

Back during the early days of the Democratic primaries I told you that the real story behind the scenes was a three-sided civil war for control of the DNC.
Not quite an equilateral triangle, the two major factions were the Clintons and the Obamas with the Soros-backed squad pushing them both farther and farther left, through the fake Progressivism of Bernie Sanders and Elizabeth Warren.
And with the ascension of Joe Biden as the candidate, triumphing over the inept Hillary-backed challenge from Mini Mike Bloomberg, it was clear that the Obamas won the internal battle.
Hillary eventually bent the knee and endorsed Biden along with everyone else.
After her failure to beat Trump in 2016 it became clear that Obama was the choice

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With Real Rates Rising, Is the Fed Preparing a Digital Dollar?

October 7, 2020

It pays today to never underestimate the venality of the people who think they run the world. It also pays to listen to them when they say the most outrageous things.
At virtual Jackson Hole this year FOMC Chair Jerome Powell redefined inflation for the third time in my lifetime. By removing the Phillips Curve from the landscape Powell will now guide monetary policy by the desire to create inflation expectations, a kind of first derivative of inflation under the mostly irrelevant Quantity Theory of Money (QTM).
I talked about Powell’s dilemma and why he had to make this change in a post right after that speech. And I outlined what the Austrian criticism of the QTM was — a myopic focus on the supply of money rather than the

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Do Debates Even Matter in This Election?

October 2, 2020

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Last night’s debate was universally panned as many things not suitable for virgin ears. Honestly, I don’t disagree.
I had no plans on watching it because they are almost always uninteresting, low-information theater. Last night was no exception.
Both camps are doing their best to put the best spin on it they can but a couple of observations I think are salient:
Biden was as good as he was ever going to be
Trump was as bad as he could possibly have been
Chris Wallace was there to make sure Biden stayed on script
The format and questions were all softballs for Biden
In that context here’s the big question for partisans (of which I’m one), “Do these debates even matter?” And my cynical answer is, “No. They don’t.”
But the more nuanced one is that yes,

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With Ginsburg’s Death Cue the Last Stand of American Marxists

September 25, 2020

For all of the bad things that have happened in 2020 don’t for a second believe that 2021 won’t be infinitely worse. It has been clear to me for months that the fight for the White House is one for the ages.
While every election is ‘the most important one ever’ in the minds of the politicos who see the other side for what it is, an existential threat to their power, this election is, I feel, finally one worth that moniker. But, that said, nearly every election truly is one where voters are presented a Hobson’s Choice where there is no real difference between the standard bearers of both major parties.
And the animating principle of these people is the accumulation of raw power, nothing more. Power, as a concept in modern

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Pelosi’s Choice: Steal the Election or Be Destroyed

September 16, 2020

I’ve learned a few things about politics by watching my goats over the years. Herd queens have to be beaten to step aside. They won’t give up status willingly.
I saw this first hand when a vicious challenge ended with a broken horn, humiliation and blood. House Speaker Nancy Pelosi is a tough old goat who is clearly making her last stand, facing the toughest fight of her political career.
Congress is at a crossroads over a stimulus package before the election. Pelosi has run out of good choices to force the Republicans into another bad deal, which is her trademark move.
Internal squabbling and strategic missteps has her charting a most dangerous path.
The House returns to session today facing an impasse over another stimulus bill

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A False Flag Is Biden’s Only Chance to Win

September 7, 2020

The Black Revolution is in full swing in the U.S. Over the next sixty days we will be treated to the greatest political show on Earth as the Democrats and their handlers in The Davos Crowd pursue the biggest lie since Climate Change.
The events of 2020 are lining up for a climax to this story that ends with only one outcome, a contested election which fuels a coup attempt after the election results come in on November 3rd.
And because of this now obvious plan, setting up a false flag around the election is the most likely means to produce election results close enough to support this course of action.
I’m not the only one thinking in these terms at this point. Joaquin Flores, writing for Fort Russ, mused similarly last week. As

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Did Trump’s Federalism Just Win Him the Election?

September 2, 2020

For months we’ve been told that President Trump has trailed Democrat Joe Biden in the opinion polls. His odds of winning were vanishingly small.
From the moment the George Floyd protests turned into violent riots Trump refused the call of conservative pundits like Mike Cernovich and Ann Coulter to invoke the Insurrection Act of 1878 in Minneapolis.
They were wrong to jump the gun. Trump was being goaded into acting like a dictator which the Democrats would have pounced on him for. It was too early in the cycle.
He had to, politically, take a punch in the mouth and allow things to get out of hand. There was no good decision for him back in May.
The people were still fighting with the shock of the Coronapocalypse, stimulus checks

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After Kenosha

August 28, 2020

It would always come to this. At some point there would be a reckoning for BLM and Antifa.
The shootings in Kenosha, WI are a dividing line for America.
This is the moment where normal people finally said, “Enough. There will be consequences. “
This is a war between radicalized lunatics bathed in unquenchable envy and self-pity and those who refuse to act like victims.
But they are victims.
All of us are. On both sides of the divide.
We are victims of a vicious program to divide and conquer the U.S. through a culture war designed to dehumanize each other.
We fight among ourselves over scraps while the people who manipulated events to this point walk away laughing at the destruction.
They want the violence. They love it. They

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Biden’s Speech: Use Covid To Destroy Everything, Blame Trump

August 25, 2020

I was asked for comments by Sputnik News the other day about Democratic Nominee Joe Biden’s assertion he would lock down the entire country if the scientists told him to.
As you can imagine I didn’t hold back.
The idea that the scientists who have been the most vocal in advising President Trump and the other world leaders, would give Biden the honest answer about how to deal with COVID-19 at this point is beyond laughable.
I’m sorry but the official arbiters of “Science!” have done nothing but lie, delay, obfuscate and oversell the threat of this virus. And their miscommunication, intentional, well-meaning, or just incompetent, has cost humanity hundreds of billions if not trillions in accumulated wealth and time.
Those things

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With Kamala Pick, Dems Cede Election to Trump

August 17, 2020

We haven’t even reached the DNC convention in Milwaukee next week and the election season is already over. Former Vice President and (presumptive) Democratic Party Nominee Joe Biden picked Senator Kamala Harris as his running mate.
She is the first non-white woman to be so ‘honored.’
But that’s not a pick designed to win an election, that’s a white flag of surrender.
Harris ran one of the worst primary campaigns in recent memory, trying desperately to be the ‘black’ Hillary Clinton. She crashed out in spectacular fashion. If there is a better example of being tone-deaf to what voters want in a woman candidate, I really can’t think of one.
What does Harris bring to the ticket? She’s a former prosecutor of black men from

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The DNC Convention Is the Election

August 8, 2020

For nearly a year it has been my primary thesis that the DNC nominating convention would determine the fate of the presidential election here in the states. These four days may, in fact, be more dramatic than any Democratic convention since 1860 when incumbent James Buchanan was tossed aside to ensure a lawyer with railroad ties from Illinois, Stephen Douglas, squared off against Republican Abraham Lincoln.
Lincoln was also a railroad lawyer from Illinois. Just sayin’.
The convention is less than two weeks away and serious questions about the Democrats’ strategy should be plain to see for anyone who pays even cursory attention to presidential politics.
How can they possibly run Joe Biden?
It’s not that Biden hasn’t been a good

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The Big Lie: the EU Is Fixed, the Dollar is Dying, and COVID Will Kill You

July 31, 2020

Dyin’ ain’t much of a livin’, boy– The Outlaw Josey Wales
The Davos Crowd is desperate. That much has been clear to me for months.
From the moment they tied COVID-19 to the breaking of the oil markets back in March they have worked like no other time in history to convince us the world we knew was gone.
The latest iteration of this big lie is the all-out assault on the U.S. dollar. Now for months a few analysts like me have been steadfast in reminding everyone that no matter how much money the U.S. prints in the short run, it is only doing so because of the extreme levels of latent and active dollar demand in the world.
So, there is narrative and there is reality. And reality is that today there is huge demand for the U.S. dollar

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What’s Changed To Cause the Gold and Silver Breakout?

July 28, 2020

Gold and silver had bang up weeks. Gold closed yesterday afternoon on a cash basis above $1900, at $1901.95 just $18 shy of the all-time high set in September 2011 at $1920.
Silver, which has famously lagged behind gold for two years now, finally broke through the post-Brexit vote high of $21.13 (again cash basis) on Monday and never looked back, exploding above $23 to close this week at $22.77 an ounce.
The weekly prints weren’t even completed yet when I start seeing the calls in my inbox saying they are incredibly overbought. It’s an easy position to take into a breakout because of indicators like 200 day moving averages and Bollinger bands, because these this indicators are all about mean reversion strategies.
And, yes,

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More Fallout From Iran/China Deal

July 25, 2020

The carnage for following President Trump’s lead on ending the JCPOA continues for India.
From SputnikNews last week comes this note about the Farzad-B oil and gas field and Iran.
Close on the heels of breaking the Chabahar-Zahedan rail project agreement, Iran appears set to deny India’s state-run ONGC Videsh Limited (OVL), exploration and production rights for the key Farzad B gas field.
The granting  of rights to OVL was already delayed with New Delhi moving slowly on the issue, but came to a complete standstill after the 2018 imposition of US sanctions on Tehran.
Now that threat looks to be a reality.
Turkish news agency Anadolu Agency quoted India’s External Affairs Ministry (EAM) as saying on Thursday Tehran would develop

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Is Trump Using Nordstream 2 To Exit NATO?

July 17, 2020

The one thing I never thought I’d say is that Donald Trump is consistent, and yet on the subject of the Nordstream 2 pipeline he has been.
No single project has caused more wailing and gnashing of teeth than Nordstream 2. And since Nordstream 2 is simply the substitute for South Stream, which was supposed to come across the Black Sea into Bulgaria and then feed eastern Europe, this U.S. opposition to another Russian pipeline spans multiple administrations.
So, this is policy that goes far beyond simple 2020 electoral politics, Trump trying to look tough on the Russians, or his misguided Energy Dominance policy.
With Trump rescinding the sanctions exemption for Nordstream 2 he now has declared open war against Europe, specifically

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Russia’s Political Stability Ensured While the West Sinks

July 7, 2020

Despite what American and European commentators may think, there really is a deep desire among people to vote for their own sovereignty. And that impulse was on full display last week with the announcement of the results of Russia’s public vote to approve the changes to its constitution.
The final tally put the vote at 78% in favor with a 65% voter turnout for the referendum. These are the most sweeping changes to Russia’s constitution since it was ratified back in 1993, which vested the President with immense power.
And while the final package of reforms differed in one important aspect from the original one – allowing for a president to serve more than two ‘consecutive’ terms – the over-arching theme of the changes was to

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Maxwell Didn’t Kill Herself by Getting Arrested

July 6, 2020

Ghislaine Maxwell was caught in New Hampshire. Jeffrey Epstein’s partner-in-crime is now in U.S. custody in the darkest of all places, the Southern District of New York (SDNY).
The first thing on everyone’s mind should be, “Which faction actually has her and how long will she survive?”
I can’t answer those questions but it doesn’t hurt to run out a few scenarios, all of which, at this point, are pure speculation. When Epstein was arrested the same questions hung in the air.
Was this the Deep State getting a hold of him to shut him up? Was this Donald Trump trying to tie up a ‘loose end?’ Or was Trump and new Attorney General William Barr putting operational tempo on their opponents forcing Epstein into a potentially explosive

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John Bolton – Traitor to Common Decency

July 2, 2020

There are few men in modern American history more venal than Former National Security Adviser John Bolton. Calling Bolton a relic of the Cold War in his outlook on foreign policy is a kindness.
Bolton is a dangerous and pathetic creature whose entire life is an example of how incomplete men with a talent for violence can rise in a late-stage cesspit of political corruption.
He is simply someone who has never been in a fight in his life who lusts for the power to kill, main and destroy anyone who dares challenge him. A pathology he’s had the dubious distinction of being able to act out in the real world on more than one occasion.
This will, hopefully, be the last article I write about his cretin because once his last fifteen

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Black Is the New Black in Color Revolutions

June 23, 2020

The U.S. is in a Civil War. It began four years ago after Donald Trump’s election and has finally boiled over into open warfare here in 2020.
From the moment the protests against the killing of George Floyd were hijacked into looting and rioting I worried about this turning into something far greater, something with a far higher purpose.
Within a couple of days it was obvious the U.S. was now the subject of a color revolution of the same type and build up that occurred in places like Ukraine, Georgia, Egypt, Serbia and others.
And it’s pretty clear the color for our revolution isn’t orange or brown or violet, it’s black.
The questions I have are why this is happening now? The obvious answer is the full court press to deny Trump a

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