hyperinflation

This weekend we have three hot spots to cover.
The first is the crisis in Greece where it seems that the Greeks have a payment of 1.6 billion euros that it must pay by the middle of March.  However the Euro boys do not want to pony over more money.
The second hot spot is the Ukraine where they are experiencing hyperinflation to no endFood has disappeared from shelves.  The country has about 2.5 weeks of liquid reserves left before they run out.
The third hot stop is Turkey.  We witnessed today, the complete collapse of the Turkish lira:

hyperinflation

Today good news came that there is a ceasefire in Eastern Ukraine and also it seems that Germany has blinked with respect to Greece. However late in the day, the Eurocrats threw cold water that they are close to a deal. This deal still has a long way to go and we will know for sure on Monday.
Meanwhile Ukraine has descended into currency collapse as the Ukrainian UAH fell to 26.5 UAH per dollar as Ukraine enters hyperinflation. 

dollar

The forecast for fast acceleration of events into the January month has occurred on schedule.  Normally a very big event occurs every several weeks, or every few months.  In just the last three weeks, ten have taken place of significance.
The pace has quickened in an alarming fashion. The Great Quickening has commenced.
Something big, ugly, and nasty this way comes.
The disruptive events and pace of systemic breakdown are surely going to continue.  The year will go down in history as extremely messy, extremely chaotic, and extremely important in the demise of the USDollar.
Check the 7-year cycle for an amazing sequence that goes back to the 1973 Arab Oil Embargo, the 1980 Gold & Silver Hunt Brothers peak, the 1987 Black Monday, the 1994 Irrational Exuberance with ensuing Asian Meltdown, the 2001 Inside 9/11 Job, and the 2008 Lehman failure.
The Year 2015 will be known for the USDollar demise with full fireworks.
With the acceleration of events in progress and in view, the pressures will grow against the entire King Dollar Court, the corrupt fortresses in Wall Street and London Centre, the crime syndicate hive.
The USDollar will not survive the year.

Swiss 10-year historyThe Swiss 10-year yield was as high as 37 basis points on Friday January 2.  It has been nonstop free-fall since then, currently to -26 basis points.
The Swiss situation is truly amazing. One has to go out to 20 years to see a positive number for yield—if one can call 21 basis points much of a yield.
It’s not only pathological, but terminal.  This is the end.

What can explain this epic collapse?  Why is the entire Swiss bond market drowning?
There are several harbingers of financial and monetary collapse. The first is when the interest interest rate on the long bond goes to zero.  A falling rate destroys capital, and that lower rates mean a higher burden of debt. If the long bond rate is zero then the net present value of all debt (which is effectively perpetual) is infinite.
Debtors cannot carry an infinite burden. Any monetary system that depends on debtors servicing their debt must collapse when the rate goes to zero.

I think the franc has reached the end. With negative rates out to 15 years, and a scant 33 basis points on the 30-year, it is all over but the shouting.
I would not be surprised if the process of collapse of the franc began next week, nor if it lingered all year.  This kind of event is not susceptible to a precise prediction of when.
What is clear is that, once the process begins in earnest, it will be explosive, highly non-linear, and over quickly (I would guess a matter weeks).

The long-anticipated collapse of the euro is here.   When European Central Bank president Mario Draghi unveiled an open-ended quantitative easing program worth at least 60 billion euros a month on Thursday, stocks soared but the euro plummeted like a rock.  It hit an 11 year low of $1.13, and many analysts believe that it is going much, much lower than thisThe speed at which the euro has been falling in recent months has been absolutely stunning.  Less than a year ago it was hovering near $1.40.  But since that time the crippling economic problems in southern Europe have gone from bad to worse, and no amount of money printing is going to avert the financial nightmare that is slowly unfolding right before our eyes. 

gold

Anyone who has been paying attention to the global economy the past years can agree with me our central bankers have conducted miserable monetary policy and have taken the insufficient measures to fight crises.
All major economies have embarked in printing unprecedented quantities of money, but the only thing they bought was time. Quantitative easing on such a scale is like kicking the can determined to reach the end of the road. The future looks anything but sanguine.

Where is this going?  Are our leaders truly going to allow the international monetary system to implode?
Is there no plan B? And we are supposed to believe gold isn’t of any significance in economics?

Supermario Draghi

You may have heard the news, the European Central Bank have started up the printing press. They are soon to print upwards of €60 Billion a month. The crowds of economic pundits have collectively cheered. Ireland stands to enjoy significant near term benefits, but at what cost?
They speak of lower government borrowing costs for new debt, by lowering funding costs and thus the hurdle that projects must meet to become viable.  They believe our exchange rate will fall and our goods will be come cheaper abroad. US products and services will be flying off the shelves, etc. Well, it is absolute nonsense. 
Yes there will be short term benefits.  Any time you give a liquidity jolt you temporarily relieve pressure.  But the longer term risks are far far greater, now that the act of QE has been taken.  Essentially the technocrats have short circuited the capitalist system which continuously prices risk based on perceived repayment risks and cost of funds.  This is a road to ruin as returns become obscured by official and politically motivated credit flows.

China gold

China does not have enough gold to have a seat at the table right now.   Think of it as a game of Texas Hold’em. What do want in a poker game? You want a big pile of chips. Gold is going to be your chips. It doesn’t mean that you automatically have a gold standard, but the gold that you have will kind of give you your voice at the table.
So here’s the problem: If you took the lid off and ended the gold price manipulation and let gold find its level, China would be left in the dust.  It wouldn’t have enough gold relative to the other countries, and because their economy’s growing faster and because the price of gold would be skyrocketing, they could never acquire it fast enough. They could never catch up. All the other countries would be on the bus. The Chinese would be off the bus.”
So, when you have this reset, and when everyone sits down around the table, China’s the second largest economy in the world. They have to be on the bus.
So the global effort is to keep the lid on the price through manipulation, which is very obvious. I tell people, if I were running the manipulation, I’d be embarrassed because it’s so obvious at this point.
So the price is being suppressed until China gets the gold that they need. Once China gets the right amount of gold, then you can take the cap off.    

empire revolt
Play

In the wake of the Swiss National Bank shocking the market this week de-pegging the CHF from the Euro, the Golden Jackass Jim Willie joined us over the weekend for an Exclusive Interview discussing: 

  • Willie explains why the Swiss are dumping the Euro in favor of GOLD, and that multi-hundred billion trading losses will result in MASSIVE DERIVATIVE LOSSES & CONTAGION!
  • Swiss actions have brought a HUGE ACCELERATION of end game events-We’re looking at the potential END of the EURO!
  • Swiss have front run the Global Currency Reset & GOLD REVALUATION!
  • $2 TRILLION IN SUB-PRIME OIL BONDS ARE ABOUT TO EXPLODE!  Contagion will be bigger than sub-prime housing crash!
  • Dollar Death-Spike: Fed has LOST CONTROL of the dollar!
  • Coming European bank failures will result in a STAMPEDE INTO GOLD!
  • 2015 Will be a repeat of Lehman- Several Western banks will go down, This is GAME OVER!
  • When Putin flips his switch, the DOLLAR IS DEAD, and Gold Will DOUBLE!
  • GREXIT will blow up the EU!

One of Jim Willie’s Most Dynamic & STUNNING Interviews EVER is below: 

panic

When they woke Thursday morning, the banks had been closed on the east coast for 2 hours.
Electronic payment systems worked in select areas only: government services, food, and energy distribution.

In 24 hours those remaining systems were overwhelmed with volume and confusion.  Forty-eight hours later a Federal state of emergency had been issued.  All broadcasts were official.  The media now fully blackened. Hospitals closed. Panic had taken over.
The story was that it was an accident. Fear spread and as soon as markets opened they broke again. The President called in all the bankers – the Fed. To spread the liquidity, reserve ratios were removed.
And they printed. Operation Extreme liquidity was implemented. Debt cancellation commenced. The banks were nationalized, but it was too late.
Prices soared, people panicked…

images

2015: The Year when Economic Reality hits like a ton of bricks- lost control of the oil price, evidence of broken USDollar structure and dismantled Petro-Dollar linkage, with enormous imminent damage to the oil industry’s subprime shale bonds with an estimated volume of $2 trillion (far bigger than the mortgage subprime bonds).
As Eastern nations under the BRICS movement follow the non-USD trade model, and adopt the Gold Trade Note model, the global banking systems will no longer require USTreasury Bonds in their reserves structure… they will diversify out of them, causing the USGovt to launch a new Scheiss Dollar (devalued heavily) in order to guarantee import supply flow, while amplifying the QE volume as the dumped USTBonds are soaked up… the result will be shortage, inflation, & chaos.
The Gold Standard will return through the trade doors, and not the currency doors…
This is Game Over for the USDollar as the End Game is obvious in systemic breakdown.

binford xl

In a taxation regime, the banks are one powerful interest group among many. In a money printing regime in a debt money system, the banks rule supreme.
To question money-printing as the one-size-fits-all solution to every economic problem is to question the power structure of the status quo.

Parabolic_Rise_in_2015

Paper has begun its collapse; it started with the Russian Ruble and will end with the US dollar.   As paper collapses, Gold will rise and then go Parabolic!
All the world currencies are falling to Gold as Gold continues to expose the TRUTH of what is TRULY going on in the world of fiat paper vs. Gold!
The TRUTH is printing money leads to hyperinflation and much much higher prices in both Gold, and especially Silver as their respective ratio gets reset. 
The TRUTH will set Gold & Silver free with a Parabolic rise in 2015!