dollar

Black swans have taken flight.  World war is imminent as one new geopolitical flash point develops each week. Slowly, the underlying struggles are fomented by the greatest monetary intervention the world has ever seen.
The template for each crisis can be traced back to the storm created by the first ever grand scale, all encompassing and floating currency standards.

Cameron Diaz

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: 

storm

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.

China gold

There will be a defining geopolitical event next month when India, Pakistan, Iran and Mongolia become full members of the Shanghai Cooperation Organisation (SCO). This will increase the population of SCO members to an estimated 3.05 billion. We should care about this because it is the intention of the SCO to do away with the US dollar for trade settlement.

The existing dollar-centric system is not in the favor of most of the new powers of the world…and they are rapidly moving to reduce their dependence on the dollar.
If $12+ trillion is no longer needed as reserves for international settlement – where does that money go?  Well, a relatively small reduction in dollar trade replaced by Yuan, Ruble, Real, etc. (say 5%-10% over 2014) would free up $600 B to $1.2 T to move where dollars are still readily accepted…the US of A.    Typically, these dollars would be levered up (say conservatively 5x’s)…and voila, $3 trillion to $6 trillion of purchasing power is introduced to America in 2014.  Things like stocks, bonds, and Real Estate would be very positively pushed higher and higher (rents, insurance, etc. would also be unwelcomingly pushed higher as wages remain flat due to structural unemployment issues.
But let’s say in 2015 the pace of BRICS non-dollar trade continues expanding and international settlement in non-dollars grows by 10% to 20%…and 10% to 20% of dollars are no longer needed as reserves to buy oil, wheat, finance trade, etc.   This is about $1.2 trillion to $2.4 trillion formerly held reserves cleared to go looking for their home…the US$1.2 trillion to $2.4 trillion levered again very conservatively @ 5x’s is $6 trillion to $12 trillion in “hot” money looking for assets.  With just a fraction of all the inflation the US exported over the ’71-present period coming home…this creates what amounts to a hyperinflationary-monetary dollar overdose in America.
Once these things start, they create a momentum of their own and eventually a likely counter by the administration to freeze out these dollars and the likely panic this ensues both domestically and internationally.

dollarAll commodities and near-commodities are priced internationally in dollars, and the dollar is used for over 80% of cross-border trade settlements. Consequently the dollar is the base currency for all countries’ foreign reserves, giving it its reserve status.
However, there are now challenges to the dollar’s hegemony, with Russia, China as well as the other members, dialog-partners and associates of the Shanghai Cooperation Organisation (SCO), taking deliberate steps towards doing away with the dollar entirely for pan-Asian trade.
Recent developments setting up a rival to the IMF by the BRICS nations is part of this challenge.
If you follow the geopolitics, you might reasonably conclude that the dollar’s dominance has peaked and is now declining.
The SCO appears to believe there can be a transition away from the dollar, an idea that could turn out to be dangerously wrong at a time of great but generally unrecognised currency fragility.
At the heart of the issue there is a worrying lack of distinction between the dollar’s reserve function and its function as the monetary standard from when it replaced gold in 1971.
To fully appreciate the importance of the dollar as the standard for all other currencies, we must review the monetary history behind how and why the dollar replaced gold, and the implications for today.

BubbleA major event just happened in the financial markets that we have not seen since the financial crisis of 2008.  If you rely on the mainstream media for your news, you probably didn’t even hear about it.
Just prior to the last stock market crash, a massive amount of money was pulled out of junk bonds.
Now it is happening again

In fact, as you will read about below, the market for high yield bonds just experienced “a 6-sigma event”. 

launch rocket verticalThe precious metals are lynch pins.  They are nagging and persistent counter-parties to money printing gone wild.
The US currently has a Debt to GDP well north of 100%.  That’s always a part of each hyperinflation.
Real (GAAP-derived) accounting puts ($6 Trillion) deficits at least five times tax revenue in the U.S.
Most modern hyperinflations started with only 2x deficit revenue.
Jobs, energy use, and real inflation are major (misery) indicators that we are in massive decline.
The only variable left to ignite is money velocity.
When prices begin to fly, the point of no return will be long since passed.

dollar collapse panicOne day out of the blue, the Global Financial System will collapse plunging the world’s economies into a depression for which there is no recovery.
The reason for this sudden collapse will be due to a factor that most analysts fail to recognize or understand.
While the mainstream media and alternative analyst community focus on the typical economic indicators, monetary system, derivatives and debt markets… the real problem for the world financial system will be the rapid change in the “PERCEPTIONS” of assets by investors and the public.   The coming abrupt change in market perceptions of paper assets will force investors to move into physical assets such as gold and silver to protect wealth as best they can.
This event will likely occur rather quickly — virtually overnight.

Reuters/Petar Kujundzic

The Russian and Chinese central banks have agreed on a draft currency swap agreement, which will allow them to increase trade in domestic currencies and cut the dependence on the US dollar in bilateral payments.
The draft document between the Central Bank of Russia and the People’s Bank of China on national currency swaps has been agreed by the parties,” and is at the stage of formal approval procedures, ITAR-TASS quotes the Russian regulator’s office on Thursday.
Currently, over 75 percent of payments in Russia-China trade settlements are made in US dollars.

When The Bank Espirito Santo catches a cold, watch the world sneeze.
If this evolving situation doesn’t highlight the tight inter-connectedness of the paper financial system, nothing else will.
This a direct hit and a potential trigger that could set of a daisy chain of events, ultimately calling into question the only market left large enough to back (unofficially) fiat or debt based currencies.
When the world of electronic finance catches the flu, the true nature is all systems fail.
Suddenly massive leverage would be suspended in a vacuum, (destroyed, incinerated, disintegrated) in a matter of seconds.
And the pursuit of the REAL safe haven will begin.
It is just a matter of time.

In this interview with Finance and Liberty’s Elijah Johnson, Fabian Calvo discusses the dollar’s death by a thousand cuts, and reveals China’s plans to collapse the US Dollar (we suspect Putin wouldn’t mind contributing in such a scenario as well). 
Calvo’s full interview on China’s plans to collapse the dollar is below: 

The Coming Bear CycleCycle analysis indicates the US Market Cycle is presently completing a 33+ year Bull Market Cycle and once complete, a Deflationary Bear Market Cycle will grip the US Markets in the year 2015 that will DEVASTATE the World.
Before a Deflationary Cycle grips the US Market and the World, FIRST expect an Inflationary Gold spike to $2000 catching everyone off guard and leaving all but the resolute Gold and Silver Bulls behind!
Unlike the previous recession that followed the collapse of 2008, there is no way out of this one.
The time to finalize preparations for what’s coming is NOW.  

It’s going to go from bad to worse to terrible and our World as we know it will change forever!
A $1300 Gold price is soon to be history as Gold Spikes into $2000 before year end as the third and final Gold cycle of 7-years in to 2020/21 and $10,000+ gets under way!  

silver precipiceEarlier in the year, we stated 2014 could be like 2013, price-wise, and that appears to be playing out.   However, as the idiom goes: appearances can be deceiving, and it is certainly true of the chart prices for gold and silver.  The natural forces of supply and demand would have PM prices much higher, if for no other reason than an inflation adjustment.   It is the ongoing exertion of unnatural forces that have been dictating prices for so long.
Apart from the paper market, there is no reason for anyone to change their habit of buying physical gold and silver.  The end game, [of manipulation and US/UK paper derivative dominance] is drawing closer and closer.  When will the PM stake finally be driven into the “heart” of the elite’s banking system is an unknown, and absolute unknown.  The breakdown has been gradual, but it will end with a speed that will take many by a shocking surprise. 

bitcoinDid Bitcoin hit an all time high on August 1st 2014 of $7328.00 with an average price per BTC of $4417.90 on extra heavy trading with 17,000 Bitcoin exchanging hands?
At around 5:00 in the afternoon, I received an alert on my phone from BTC Avg  triggered by Bitcoin passing its all time nominal high of $1280.00 on Bitcoinaverage.com.   I looked at my phone, and bitcoin had just traded at over $7300.00.   Bitcoinaverage.com confirmed that the average BTC price had jumped to $4300.00 across exchanges.
There was double the volume in a single trade for the whole day.   Somebody had exchanged over 17,000 bitcoins. 
A dark pool settlement occurs mostly outside of an exchange, or if provided by an exchange, is supposed to remain secret.
It looks as though somebody may have leaked just one of these kinds of transactions intentionally or by accident.
Could dark pools be trading BTC on dark wallets and dark exchanges, unnoticed by the greater trading community? 
Did a massive dark pool trade just inadvertently reveal the real price of bitcoin when you need to buy 17,000 of them?