The Victory Report talks to Jim Willie regarding zero percent interest rates, interest rate swaps, derivatives, the deep trigger, US dollar, and Fort Knox and COMEX gold and silver in this excellent interview.

As always, Willie is a MUST LISTEN!

Part 1: Nerve Gas at Fort Knox

 

Part 2: He Knew too much

  1. Peter Schiff – World is Headed Off the Edge of the Fiscal Cliff

    June 8, 2012

    “People jumped on the fact that Ben Bernanke didn’t come out and say we’re doing QE3 right away, as a reason to sell gold.  But if you believed that QE3 was coming before he spoke yesterday, he said nothing during that testimony that would alter what you believe.”

    “What Ben Bernanke said is he will do QE3 if he thinks the economy needs it.  He was asked if he would take QE3 off the table, and he said, ‘No.’  What would make Bernenke think QE3 is needed?  It would be a weakening of the economy.  More unemployment, weaker GDP growth, well that’s coming.

    Nothing has changed at all.  It’s still full speed ahead towards the edge of the real fiscal cliff….

    “I think the risk to the US financial system is imposed by Washington.  It’s a problem of our own making.  

    In fact I think the European problem is actually more of our salvation.  As a result of people being worried about Europe, the dollar is being propped up, Treasuries are being propped up, and that’s benefitting our economy.

    To the extent that Europe deals with its problems so that the euro is no longer a concern, then America’s problems are going to way much more heavily on our country.  Right now we don’t have to deal with them.”


    When asked what the eventual impact of QE3 will be, Schiff responded, “It’s going to make the situation worse, but in the short-term it buys time.  It postpones some rather dire consequences to a later date.  

    It is the wrong policy for the country, but the Fed has relied on it like a crutch every time the economy looks like it’s going to stumble.  It’s propped it up with QE, but it’s exacerbating the problems.  This means it needs a bigger and bigger crutch to hobble along each time the Fed intervenes.

    I could see the Dow heading back down to 11,000.  I don’t think there is significant downside risk because at that point you are going to be looking at QE coming to the rescue.  But it’s not going to help the overall economy, it’s actually going to interfere with the recovery in the overall economy.  And it’s going to lay the foundation for QE4.” 


  2. Schiff is right on this. Near were I live there is a company who buys forclosers and fixes them to sell. The homes are in low income neighbor hoods. Since there is a lot less buyers in the market do to the bad economy. They are starting to buy them to rent and in a lot of cases the try to keep the same family that was foreclose on there. It’s a new market and investors see the need, and have an interested party at hand. It’s a win win it reduces cost and time for bolt parties.

  3. S&P says U.S. to avoid “fiscal cliff,” risks remain

    By Daniel Bases | Reuters – 6 hrs ago

    NEW YORK (Reuters) – Standard & Poor’s said on Friday it expects U.S. lawmakers to set aside their differences to prevent a combination of tax hikes and spending cuts from hurting the economy in early 2013.

    The rating agency affirmed the AA-plus rating of the world’s biggest economy but cautioned that its outlook remains negative.

    The affirmation of the rating restarts the six- to 24-month period in which the agency could again cut the U.S. rating.

    “One thing we do expect Republicans and Democrats to agree on — given an unemployment rate of about 8 percent and continued risks to the U.S. economic recovery — is avoiding sudden fiscal adjustment,” the agency said in a statement.

    The United States lost its top-tier AAA credit rating from Standard & Poor’s last August in the wake of a bruising fight in Congress over lifting the government’s debt limit.

    “We expect that a sudden fiscal adjustment could occur if all current tax and spending provisions, set to either expire or take effect near the end of 2012, go forward in accordance with current law,” S&P said on Friday.

    Bush-era tax cuts are to expire on December 31, deep, automatic spending cuts roll out on January 1, 2013, and U.S. borrowing authority must be raised early in the year to avoid the risk of default.

    The slate of measures to be faced by a lame duck session of Congress has been dubbed the “fiscal cliff.”

    A stalemate over how to deal with that combination would likely push the U.S. economy into recession in the first half of next year, the Congressional Budget Office warned last month.

    While investors have recently focused on downgrades among European sovereigns – including a significant three-notch downgrade of Spain by Fitch Ratings on Thursday – the fragile U.S. economy has loomed in the background.

    With recent disappointing jobs data and concerns about policy paralysis as the presidential election swings into full gear, the health of the U.S. economy remains uncertain.

    This week Janet Yellen, the Federal Reserve’s second-highest official, laid out the case for the U.S. central bank to provide more support to a fragile economy as financial turmoil in Europe mounts.

    S&P said the U.S. economy still faces “significant” risks, adding that “we believe the risk of returning to recession in the U.S. is about 20 percent.”

    In affirming the rating, S&P cited the resilience of the economy, its monetary credibility and the dollar’s status as the world’s key reserve currency.

    But the country faces “primarily political and fiscal” credit risks, S&P said.

    The United States is rated AAA by Fitch Ratings and Aaa by Moody’s Investors Service. Both agencies have negative outlooks on the ratings, which means they could act within 12 to 18 months.

    Earlier this week Fitch said it would cut its sovereign credit rating for the United States next year if Washington cannot come to grips with its deficits and create a “credible” fiscal consolidation plan.

    http://news.yahoo.com/p-says-u-avoid-fiscal-cliff-risks-remain-061930109–sector.html

  4. THanks for posting the Schiff video 427, I enjoyed it thoroughly as it reminds Congress is not only inept and deaf when it comes to solutions that the market will figure out on its own through spontaneous order but Congress is Cancer. It invades a host and hides in crevices and organs that lay vulnerable until one day it spreads to the spine and brain and causes the whole system to fail.

  5. Finally someone not worried about Europe but the good Ol USA. T Bonds nobody is buying them EXCEPT the FED, Debt, Debt, Debt, then crash. They are killing us from the inside and the Fed themselfs are not Americans. Corruption is Over Throwing America.

    Jim Willie knows what he’s talking about, he even is talking about my favorite subject. The Derivatives Market. Interest Rates and Control. Thumbs Up

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