Here is the net result of central banks pursuing quantitative easing and zero-interest rates: a massive increase in global risks resulting from the carry trades the money expansion and cheap rates fueled.
The central banks’ “solution” has blown another global bubble of risk that now threatens to destabilize not just the carry trades but the economies and credit systems that have become intertwined with the carry trade.

In effect, the failure to address the structural problems revealed in the Global Financial Meltdown of 2008-2009 have been transferred to the larger foreign-exchange (FX) market, which is connected to virtually everything in the global economy.

jim willie

The “switching of sides” in the currency war is going red hot, and it’s no longer simply happening on the outer reaches of the Western alliance, but within core countries which the 3rd Wheel Dollar always thought it could count on: like Canada, like Germany, like the U.K.   Country after country is beginning to understand that this is a key moment in history…
And they don’t want to be left standing on the wrong side!
The World’s unwanted, bullying 3rd Wheel Dollar is being permanently relegated to the “friend zone” or worse, and so is the the U.S.’s leadership by extension!
The U.S. petrodollar, once tolerated, due to its violence and power, is now a sagging, bloated, bankrupt shadow of its former self, and the rest of the neighborhood is now teaming up to take on this bully.

collapse

The parallels between the false prosperity of 2007 and the false prosperity of 2014 are rather striking.
If we go back and look at the numbers in the fall of 2007, we find that the Dow set an all-time high in October, margin debt on Wall Street had spiked to record levels, the unemployment rate was below 5 percent and Americans were getting ready to spend a record amount of money that Christmas season.

But then the very next year the worst economic crisis since the Great Depression shook the entire planet and everyone wondered why most people never saw it coming.  Well, now a similar pattern is unfolding right before our eyes.
Once this false bubble of hope runs out, all of our lives are going to dramatically change.

srsrocco

The amount of leverage in the U.S. Dollar fiat currency system reached an all time high in 2013.  Even though the growth in total U.S. currency more than doubled since the collapse of the Housing and Investment banking system in 2008, the majority of the increase was from just one bill in particular.
U.S. Department of Engraving and Printing issued more $100 Federal Reserve Notes in 2013, than in any year prior.
The total face value of the $100 bills printed in 2013 were $443 billion, the cost was just a mere $580 million… basically one-tenth of a percent of the cost of the face value.
If we extrapolate this further, at the current price of gold (including Friday’s HUGE MOVE UP) of $1,170 an ounce, it would take twelve $100 bills to purchase an ounce of gold…. with a little change left over.
However, if we compare the costs below, we can see owning PHYSICAL GOLD is a much better and safer deal when the Fiat Monetary FAN finally hits the COW EXCREMENT:

Russia

BRICS Rising
There can be no doubt that an alliance, called the BRICS, is positioning itself to be the new anti-globalist, anti-Western central banking force in the world.
In fact, there are well-respected voices within the Kremlin, who’ve now called upon the leaders of the East to step up the game-plan of the BRICS, and turn it from a mere trade and economic union, to an overtly, D.C.-blocking, anti-dollar alliance.

Rest assured that with each passing day, every new brain-dead sanction that D.C. and Brussels hurl at Russia, is actually just another fresh log on the fire, incinerating their own power.
The West is descending into tyranny and poverty, while the East is making strides toward financial and economic liberality, and at “double time”.
It’s self evident that these preparations are being enacted, in order to live as best they can, in a post-dollar world.

12

Most people that discuss the “economic collapse” focus on what is coming in the future.  And without a doubt, we are on the verge of some incredibly hard times.  But what often gets neglected is the immense permanent damage that has been done to the U.S. economy by the long-term economic collapse that we are already experiencing.
But because unprecedented levels of government debt and reckless money printing by the Federal Reserve have bought us a very short window of relative stability, most Americans don’t seem too concerned about our long-term problems.
They seem to have faith that our “leaders” will be able to find a way to muddle through whatever challenges are ahead.  Hopefully the following 12 charts below will be a wake up call.
The last major wave of the economic collapse did a colossal amount of damage to our economic foundations, and now the next major wave of the economic collapse is rapidly approaching.

images

Less than 3 weeks after the S&P downgraded US debt in 2011, after gold’s initial spike to $1900, the Government’s renewed war on gold began.  The reason for this is that, in the face of trillions being printed by the Fed and trillion dollar deficits being incurred by the Government, gold was about to take out $2,000.
This was a milestone that would have likely triggered a flood of capital into both physical gold in this country and into the futures. A move like this would have destroyed the credibility of the U.S. dollar as the world’s reserve currency. It further would reflect the actual truth regarding the collapsing economic/financial condition of the United States.
To keep this from turning into an event that would hinder Wall Street and the Government elitists from completely looting the wealth from our system, they had to implement a massive program of market intervention in order to take down the price of gold and eliminate the signal it was sending to the world that the U.S. is in a state of slow collapse.
Your only defense against the poisonous cesspool swirling beneath the carefully crafted facade of lies and disinformation – short of just leaving the country – is to move as much of you liquid wealth as you can into physical gold and silver. Because when the U.S. Government’s war on gold is finally forced into capitulation, the collapse of our system will be unlike the collapse of any other superpower power nation in history.

end badly

Recent evidence points increasingly towards global economic contraction.
Parts of the Eurozone are in great difficulty, and only last weekend S&P the rating agency warned that Greece will default on its debts “at some point in the next fifteen months”.   Japan is collapsing under the wealth-destruction of Abenomics. China is juggling with a debt bubble that threatens to implode. The US tells us through government statistics that their outlook is promising, but the reality is very different with one-third of employable adults not working; furthermore the GDP deflator is significantly greater than officially admitted. And the UK is financially over-geared and over-dependent on a failing Eurozone.
It seems likely that a change in trend for the gold price in western capital markets will be a component part of a wider reset for all financial markets, because it will signal a change in perceptions of risk for bonds and currencies.
With a growing realisation that the great welfare economies are all sliding into a slump, the moment for this reset has moved an important step closer.

big reset

In this MUST LISTEN interview with Finance & Liberty’s Elijah Johnson, Hat Trick Letter editor Jim Willie explains why gold & silver futures prices were smashed over the past 2 weeks, advising that the Economic ENDGAME HAS ARRIVED, and systemic failure is DEAD AHEAD. 
Willie breaks down the logical conclusion to the rejection of the US dollar, and discusses how the soon to arrive Gold Trade Standard will impact the global banking system
The Golden Jackass is at his finest in this 60 minute power packed interview warning that The Economic ENDGAME Has Arrived!

gold volcano eruption

The next great financial crash may not not begin in the United States.
Many are convinced that a financial crisis that begins in Europe or in Japan (or both) will end up spreading across the globe and take down the U.S. too. 
Time will tell, but  signs are emerging that financial trouble is already starting to erupt in both Germany and Japan

economic dollar collapse

Iceland’s currency collapse is not an isolated event.  The purchasing power of a fiat currency varies constantly, even to the point of losing it altogether. The truth of the matter is the utility of a fiat currency is entirely dependent on the subjective opinions of individuals expressed through markets, and has nothing to do with a mechanical quantity relationship.
In this respect, merely the potential for unlimited currency issuance or a change in perceptions of the issuer’s financial stability, as Iceland discovered, can be enough to destabilize it.

Head of VTB Bank Andrei Kostin (RIA Novosti/Sergey Subbotin)

In an interview published Tuesday in Russia’s Izvestia newspaper, the head of Russia’s #2 bank stated that he envisions the country being able to completely switch to the ruble in international settlements with two to three years.

gold eagle

Nothing is ‘normal’ when gold and silver aren’t circulating as money.  The central authorities need to manage the fiat and keep going the illusion of it having exchange value forever.  By managing the fiat price lower, as occurred on Friday, the supposition is that people will be ‘scared’ out of their gold/silver and exchange it for fiat to prevent further fiat ‘losses’.
Of course, such action will backfire as more and more hoard the metal at fire sale fiat prices, never to exchange it for fiat again.

The financial crisis of 2008 hasn’t ended - nor did it start from the overt reasons given.  Every second that gold and silver coins, as well as their attendant bills, do not circulate is a ‘financial crisis.’   How this manifests itself going forward is hard to predict.
It will likely involve global famine and the complete breakdown of payment systems.   If the central authorities, as well as the man on the street, continues to believe and accept the ideology of fiat as being money, civilisation will collapse a lot more quickly than would have been the case.  This is guaranteed.

economic dollar collapse

Putin kicked out the Rothschild bankers from his country.  Putin interrupted the USGovt heroin trade supply routes out of Afghanistan. Like Abraham Lincoln 150 years ago, the elite banker chambers wish to remove Putin and to suppress Russia, but the sprawling nation has joined at the hip with China.  Thus Russia cannot be isolated any more than a bear can be bear hugged.  The nation spans 12 time zones and is a top supplier of numerous important commodities. The Russia & China bond is growing and will result in a marriage, the consummation being a baby called the Gold Trade Standard.
The King Dollar is being displaced, kicked off its throne.  Its squire the Petro-Dollar is undergoing demise.  The Ukraine War is the USDollar Waterloo event.
The Saudi rejection of the USD in exclusive oil payments will be the crash heard around the world.
The marriage between the Saudis and Chinese is a process well along, with each month featuring yet another high level conference. The Saudis will make the announcement in the coming weeks or months, as a genuflection before the Chinese, with a hat tip to the Russians. Soon the crude oil price will be set by the Russia-China tag team, priced in YuanWhen the Gold Trade Standard is entrenched, the diversification away from USTreasurys in the global banking system will become a torrent. Bank system practices will follow trade payment practices. When installed, it will cause prosperity in the East and havoc in the West.
The Crash Heard Round the World is coming.  The USDollar will be rejected, and replaced by the Gold Trade Standard.