Jim Willie of GoldenJackass.com says powerful forces around the globe are working to do away with trading in U.S. dollars because of massive money printing by the Fed.
Dr. Willie says, “The world makes a reaction, and what they have done is create, slowly but surely, a U.S. dollar alternative for trade.” Dr. Willie’s sources say precious metals will be used to back a new currency and predicts, “The gold price will be $7,500 to $8,000, and silver will be between $150 and $250 per ounce.” This will be a disaster for U.S. Treasuries, and Jim Willie says, “All these Treasury Bonds will be sent back to the United States where they can choke U.S. bankers . . . they cannot refuse them.” Dr. Willie predicts “the economy will implode,” and he says, “I don’t believe we’re going to see garden variety powerful inflation. I believe, instead, we’re going to get large widespread cut-off of supply chains” as foreigners simply stop accepting the dollar. As far as dollar assets inside the U.S., expect widespread confiscation. Dr. Willie contends, “When the losses from the debt write-downs come, I see tremendous national wealth lost because private accounts are really just bank assets.” Join Greg Hunter as he goes One-on-One with Jim Willie. [Read more...]
Jim Willie: US Economy Will Implode As Dollar Collapses!
.1% Return for the Risk of a 40% Haircut?
Submitted by Bill Holter:
What is now in play is that if you have money in the bank and are getting a whopping .1% interest…it compensates you for what? It compensates you for NOTHING that’s what! It doesn’t compensate you for the real world inflation that we are told everyday by the statisticians that doesn’t exist…nor does it compensate you for the other risk. The “other risk” (that did not exist but now apparently does) being that your bank might go under and balances over the insured limits are not covered. It’s simple “risk versus return”. If risk goes up (which it now has) so must return. And this is the problem.
The world cannot have a zero interest rate policy AND a banking system where very real risk exists.
Gold IS money. It is not an investment, it is not currently used as a currency (but can and surely will be used as one). “Gold pays no interest” has always been the knock, but…neither do bank accounts nor does currency. What has now been introduced publicly is (and has) always been present…namely that Gold can neither be debased, NOR can it default!
[Read more...]
Alasdair Macleod: Money Supply Accelerating
The monthly figures for the US dollar components of Austrian, or True Money Supply, for February are now in.
The path of least resistance is simply to continue to issue more and more money (so long as it has any purchasing power). The alternative, permitting the collapse of the banking system, businesses and even government itself, is unpalatable. Meanwhile, the dollar has a brief window of zero interest rates before the effect of excessive increases in money quantities on prices graduates from inflating asset values to inflating prices for food, energy and other consumables.
Survivor of Mexican Peso Devaluation: Read the Writing on the Wall, Extricate Yourselves From Your US Dollar Positions!
In light of the recent events in Cyprus, where the banks will reportedly remain closed at least through March 26th and the likelihood that Cyprus will exit the Eurozone, re-institute the Cypriot pound and devalue the currency is growing by the minute, we thought it apropos to republish LRS’ first hand account and experiences recognizing, surviving, and even profiting from the devaluation of the Mexican Peso in the late 1970′s.
For those unfamiliar with the account of the 1976 Mexican Peso devaluation (and anyone who has not experienced a currency devaluation first-hand), this is an ABSOLUTE MUST READ as while the Cypriots may be the first, they will undoubtedly not be the last to devalue their currency before the global financial debt crisis is over.
LRS, who successfully saw the Peso devaluation coming and side-stepped loss of wealth by converting his funds into US dollars, states that Americans must:
Read the writing on the wall, and extricate yourselves from your US dollar positions. Physical gold and silver bullion and coins will be the ultimate protection and wealth preservation assets during the coming devaluation of the US dollar.
My experience with the peso devaluation makes it necessary for me to move my investments away from paper into physical gold and silver. It is going to be a very tough time for the US and I anticipate the Mexican devaluation will pale in comparison to our dollar devaluation.
LRS’ full first-hand account of the Mexican Peso devaluation is below:
[Read more...]
Keiser Report With Jim Rickards: Financial Pearl-Harbor
In this episode of the Keiser Report, Max Keiser and Stacy Herbert ask why China fears currency war. They also look at Johnson & Johnson’s big loss on Venezuela’s currency devaluation and what this means in a currency war world where major devaluations can happen at any moment. In the second half of the show, Max Keiser talks to Jim Rickards, author of Currency Wars, about which nations are winning the war. [Read more...]
Jim Rogers: We’re Wiping Out The Savings Class Globally, To Terrible Consequence
Jim Rogers decries the growing uncertainty and recklessness of global central planners as the world enters unchartered financial markets:
For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency. This has never happened before. How it’s going to work out, I don’t know. It just depends on which one goes down the most and first, and they take turns. When one says a currency is going down, the question is against what? because they are all trying to debase themselves. It’s a peculiar time in world history.
Jim Rogers’ full interview with Chris Martenson’s Peak Prosperity is below: [Read more...]
Jim Grant: The Monetary Revolution is Devouring It’s Children!
The biggest critic of the Fed this side of Ron Paul was on CNBC today discussing global Central Bank currency devaluation.
Grant states that Western Central bankers are attempting to out print the Bernank himself:
Central Banks the world over are going from ease to hyper-ease, and people we thought were extremely radical in their monetary predilections like Bernanke are about to be out-flanked by others still more radical! So the monetary revolution is devouring it’s children!
Grant states that the Fed is at war on the price mechanism: The Fed will not acknowledge that it is suppressing prices, that what it is doing is a species of price controls. Interest rates are prices, and the Fed is manipulating them at the level, & they’re manipulating them on the yield curve!
Regarding the future of QE, Grant states that: The Fed’s hand will be forced by circumstances. The Fed seems to think that it is in control of events, when in fact events will be in control of the Fed.
Jim Grant’s full MUST WATCH interview is below: [Read more...]
Devaluations…Get Used to Them!
Submitted by SD reader BH
Venezuela devalued their currency the Bolivar by nearly 50% on Friday and it now looks like Egypt will be next. The Venezuelan devaluation is merely a small chapter in the current global currency war.
The story in the Financial Times is headlined “Venezuelan devaluation sparks panic“. I read the article and was surprised at the content because when I read the headline I was fooled. OF COURSE the Venezuelans are in a panic, they just lost nearly 50% of their purchasing power over one evening!! The “panic” that I thought would have been written about was “who’s next?”. [Read more...]
Coin Show Ghost Town: Precious Metals & Worldwide Currency Free Fall Update
Our friend Sean from the SGTReport.com has released a local coin show update titled Coin Show Ghost Town. The next time CNBC attempts to claim that gold or silver are in a bubble, please remember that less than 1% of American’s assets are held in gold or silver- while the percentage was nearly 26% at the top of the last precious metals bull market in the early 19080′s.
Coin show ghost town in the US. As the Banksters debase currencies worldwide, the sheeple people slumber, blindly grasping their fiat dollars as the FED “monetizes” the debt and spends this and future generations of Americans into economic oblivion. Last week, Venezuela devalued its currency by 46% overnight, while Argentina tries to implement price controls to prevent hyperinflation as social chaos erupts. By the time the average American sheeple wakes up to the realities we face, the empty coin shows will be long gone – and it will be too late to prepare.
Got PHYSICAL? [Read more...]
Deepcaster: Investment-Critical Baseline Realities in a World of Currency Devaluation
Submitted by Deepcaster:
“Money printing creates illusory wealth and buys time, but if it was truly the answer to a deleveraging cycle, Zimbabwe would be a member of the G10.“
The recent Equities Rally and Glimmers of Economic Recovery are Artificial because they have been bolstered up on a Tide of Central Bank created liquidity (via QE etc.).
They have not been generated in the healthy sustainable way by savings and Investment. Therefore, it is highly likely they are Transitory.
Given the Daunting Challenges facing the U.S., Eurozone, China, Japan, and other economies, and the understandable Investor uncertainty about how these challenges will be met, it is essential to review Key Baseline realities Critical to Profitable Investing.
As repeated Doses of QE become less effective, the Central Banks, specifically The Fed and BOJ, resort to a related Baseline Reality: Money-Printing-to-a-greater Degree than other Central Banks, i.e., to Currency Devaluation.
Are Gold & Silver in a Bull Market- Or is Government Devaluation Simply Going Exponential?
Gold and silver are NOT going up in value. An ounce or gold or an ounce of silver is still the same ounce. It is the imaginary “value” of the fiat you hold that is being debased and is relentlessly dropping. It is a subtle, but necessary change in “belief” one must always recognize, [and there are many who do, just not enough]. Instead of 250 or 900 units of fiat, it now takes 1650 units of fiat to purchase the SAME ounce of gold, and 30 units of fiat, instead of 5 or 20 units to purchase the same ounce of silver.
Make no mistake about it, it is the central bankers that are leading governments around by the nose, and by proxy, governments leading
people around by the nose, and that “nose” is inhaling “lines” of fiat. Unless cured, all addictions end badly, and the only “cure” central bankers have for ever-increasing fiat is, ever-increasing it more. [Read more...]
James Turk: ‘Everyone Should Have a Precious Metals Portfolio’ As US Races Towards Hyperinflation
GoldMoney Chairman James Turk outlines the reasons why “everyone should have a precious metals portfolio.“ James outlines the stark fiscal facts about government debt problems across the developed world, and why central banks’ determination to devalue the currencies they issue is causing a bull market in precious metals. He demonstrates why gold remains undervalued, despite the great gains seen in its price over the last 11 years, and a means of assessing whether or not the yellow metal is fairly valued or not.
James argues that we are living in “fiat currency bubble”, similar though many magnitudes greater than the recent housing bubbles seen in America, Ireland, Spain and other countries, or the “Tech bubble” in NASDAQ stocks in the late 1990s. The USA is racing towards hyperinflation, courtesy of the Federal Reserve’s monetisation of US government deficits.
Full interview below:
Cost for Saving System in 2008 Will Be Complete Debasement of US Dollar By 2014
Submitted by Deepcaster:
“With an inevitable day of reckoning, the U.S. financial and banking systems came literally to the brink of collapse in September 2008. To prevent the unthinkable, the Federal Reserve and the U.S. government created, spent, loaned, guaranteed, and gave away whatever money was necessary, and otherwise bailed out or acquired a number of failing large corporations…
“Those actions forestalled a systemic collapse, but they did not resolve the fundamental underlying difficulties. Contrary to official GDP reporting, there has been no subsequent economic recovery.
“The ultimate costs for saving the system in 2008 and beyond, comes down to inflation, which will be reflected eventually in the complete debasement of the U.S. dollar. Accordingly, actions taken during the crisis-containment of 2008, and later, brought the outside timing for the hyperinflation forecast of 2018, into 2014.
“…the U.S. dollar, as we know it, is not likely to survive until the next congressional election in 2014. [Read more...]
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