On this MUST WATCH interview of Sprott’s Ask the Expert, The Dollar Vigilante’s Jeff Berwick discusses Japan’s plans to double the Yen’s money supply in the next two years- a plan Berwick describes as “textbook hyperinflation“, and how the Fed will OUTPRINT the Japanese, meaning nothing but inflation and hyperinflation is on the horizon for the US.
With half of the US population dependent on the US gov’t, Berwick states the coming collapse of the dollar will be unlike anything the world has ever seen as the US gov’t hyperinflates the dollar to unimaginable levels.
Full interview is below:
For some reason(s), the companies that mine precious metals have been strangely silent on the topic of gold and silver manipulation.
To many of us, the lack of interest displayed by mining executives on a topic that literally affects their companies’ bottom lines – and perhaps even their ability to remain in business – is both bizarre and frustrating in the extreme.
Why won’t the miners fight back against gold and silver manipulation?
Is a looming war coincident with a depressed gold price and a stock market peak an example of — staring into the great abyss?
It is better to leave the Wall Street party early than to crowd the exit doors with about 500 million others who overstayed their welcome at the Wall Street “stocks always go up” extravaganza.
The “high-frequency-traders” can levitate the S&P and suppress gold prices for only so long. Eventually the prices for bonds, stocks and gold will be reset in accordance with the realities of massive “money printing,” exponentially increasing debt, generational-low interest rates, huge deficits, & Asian purchases of physical (not paper) gold.
Market peaks, market crashes, political crises, wars, deficits, debts, and cycles of confidence and despair seem to be inevitable in our current financial structure.
Are you prepared?
There are at least two storm clouds massing on the horizon (we ignore the worsening geopolitical outlook altogether).
One is the ‘health’ of the bond markets. Bloomberg’s Mark Gilbert points out that Germany has just issued €4 billion of two year notes that pay no interest whatsoever until they mature in 2016.
The second is the explicitly declining health of the euro zone economy, which is threatening to slide into recession (again), and to which zero interest rates in Germany broadly allude.
The reality, which is not a hallucination, is that years of Zero Interest Rate Policy everywhere, and trillions of dollars, pounds, euros and yen pumped into a moribund banking system, have created a ‘Potemkin village’ market offering the illusion of stability.
There is a stark choice when it comes to investment aesthetics. Those favoring value and deep value investments are, we believe, more likely to end up wearing diamonds.
Those favoring growth and momentum investments are, we believe, more likely to end up wearing the Emperor’s new clothes.
We do not intend to end up as fashion victims as and when the storm finally hits.
The current trading action in gold and silver – although seems quite bearish – is really a non-event.
1) gold and silver bottomed in last June 2013
2) June 1st this year: gold is up almost 3%, silver is up just over 3%; GDX is up almost 20%
Sure doesn’t feel like the precious metals sector has had positive returns this year, does it?
However, while the market trades sideways, SMART MONEY IS ACCUMULATING THE METALS & MINING SHARES.
The problem isn’t that Americans are stupid, but that they are ignorant, then they defend their assumptions with tooth and nail.
As children we are trained, told what and how to do things. We do not even ask why. If we do ask too many questions, we get slapped down because our parents-teachers may not know why.
We are not taught anything near the truth about American history in terms of the American power structure.
And if events pull back the curtain, the news media quickly shoves a fluff story in our face to redirect our attention the other way. I recall using that tactic with my kids when they got into something.
If you want to reach your relatives and friends, educating them about the economy and world may be the best way.
Appealing to greed with tales of $50 silver may get interest, but fear of loss will balance the scale and bring them back to their norm. Education about the true state of our economy only has to overcome ignorance to be effective. The conclusion to prepare will logically follow.
A wise man once said, “if one blind person guides another, they will both fall into a ditch.”
America is in trouble and the seas are getting worse.
The Eastern Bloc of countries realizes they’re at war with Western ones, not a shooting war, but a financial one. This is an unconventional war, and an unconventional war requires unconventional tactics.
The “slings and arrows” flying through the air aren’t bullets and bombs, but rather economic sanctions, currency swap agreements, and boycotts. Whether you realize it or not, this war has been red hot for some time, and will soon come to a head. There’s actually more to gain or lose here, than most people can wrap their heads around, and the results of this conflict will change the world forever.
In partnership with Russia and others, China is stacking so much gold, at such an amazing speed, that the world has never seen its like before.
There is definitely a multi-leveled strategy here, to be the center of gravity for gold-trading/pricing/storing: not just for Asia, but for the world.
The Chinese government is doing all this to fortify its position, by building the “2nd Great Wall” for its own protection: the “Great Wall of Gold”.
The world monetary system is even more tightly wound. Each day that goes by whistling past the reality guarantees that. Panic leads to selling by everyone - all at once.
When the next crash arrives, the dollar’s demise will play center stage.
Like World War II, the decisions made today have the power to change our way of life forever. It’s already happening.
Because of so many poor decisions made today by US politicians and central bankers, the rest of the world is rapidly starting to drop the dollar as the preferred reserve currency and adopt alternatives.
This is no longer theory or conjecture. It’s happening. And the implications will last through the next century.
If you thought that the earthquake that struck northern California on Sunday was something, just wait until you see what is coming in the years ahead. As you will read about below, we live at a time when earthquake activity is dramatically increasing. This is especially true of the “Ring of Fire” which runs roughly along the outer perimeter of the Pacific Ocean. Approximately 81 percent of all big earthquakes occur along the Ring of Fire, and the entire west coast of the United States falls within the danger zone. Over the past few years, we have seen huge earthquake after huge earthquake strike various areas along the Ring of Fire, but up until now the California coastline has mostly been spared.
However, there are indications that this may be about to change in a big way.
We haven’t seen complete breakdowns in junk bond prices or treasury yields yet, but the dominoes are set up and the first one is starting to wobble.
Given the stunning Indian and geopolitical price drivers now in play in Iraq, Syria, and the Ukraine, I think gold could charge beyond $1325, and on towards the $1347 and $1390 area highs.
Silver, which is perhaps better referred to as “gold on steroids”, looks even better.
Silver and gold prices continue to deteriorate as the speculators continue to buy up shorts and the commercials were able to wrest all higher priced longs from them in short covering, depressive episodes which, repeated in nature, have convinced the speculators prices are going much further South, and soon.
The important thing for the powers that be to do now is to reinforce the negative thinking on the part of speculators and anyone with interest in physical metal as they want it all for their one world currency backing, and they want it at low prices.
When prices do go below $17 we are going to begin to see foreign governments coughing up physical into the market as they will embrace all things paper and the promise of far greater returns on investment and protection from inflation for their people while watching the DOW eclipse 18,000, then 19,000 then…20,000.
If you believe Martin Armstrong, we will see DOW in the high 20,000s maybe even break 30,000.
All will seem well in the world of paper until merely days before the planned economic collapse of the world’s derivatives and bonds, and lastly all currencies.