Slowly, the status of the dollar as reserve currency is slipping away, threatening hyperinflation.
The recent rise in interest rates, in response to the threat of Fed tapering, foreshadows the unavoidable demise for the dollar. Not only did the rise in rates have an immediate effect on the housing recovery, it also indirectly exposed the system to another vulnerability, that is, the Fed is not only the lender of last resort but will be the lender to the spender of last resort – the US Treasury.
That all fiat currencies end the same is no secret.
Reserve currencies are not immune. Slowly, the status of the dollar as reserve currency is slipping away.
Rumblings of a re-arranging of trade status are approaching a feverish pitch.
Slowly, the status of the dollar as reserve currency is slipping away, threatening hyperinflation.
All hyper-inflations hinged on the budget deficit point of no return.
We are going to hit the monetization inflection point at some point soon – if we haven’t already. The likely trigger could be indirect; it could even be something small.
A bank failure or crisis in China (happening now) or a smaller conflict will be enough to push confidence over the edge.
It looks like the U.S. Treasury is learning a few tricks from the Reserve Bank of Zimbabwe as it ramps up its printing press. In just a few years, the U.S. Department of Treasury Bureau of Engraving & Printing has substantially increased the printing of its largest valued Federal Reserve Note — the $100 bill.
The United States is heading for a hyperinflationary collapse. This will not be an economic event, but rather a loss of faith in the Dollar — a statement repeated by Jim Sinclair.
The world will wake up abruptly one day to the forgotten monetary religion of Gold & Silver. [Read more...]
The United States has ushered in hyper monetary inflation with the series of Quantitative Easing programs, as in QE1, QE2, Operation Twist, and QE3. My belief is no longer than hyper inflation is inevitable, since already part of current policy now. Hyper-inflation is already here!
As a result of the hostile monetary war, the USDollar and its USTBond vehicle are facing not simply opposition, but broad-based earnest organized initiatives to avoid them. The goal is to replace them in workarounds. A reset is apparently near. The pressures to install a more fair, more just, and more enduring system is enormous, and will not cease. The demand is to bring back the Gold Standard, the equitable arbiter, the true enforcer.
The demand for Gold is inelastic. As price rises, so does demand. It is called Gold Fever.
Something big is near, as the tremors are being felt in every global corner, and every global market. [Read more...]
Every single fiat currency in history backed by nothing has collapsed due to hyperinflation that destroyed these currencies and made them worthless.
Historical monetary facts tell me there is a 100% chance of US dollar collapse, and that this complete collapse that will forever restructure the wealth of families, will likely happen within the next 5 years. In fact, when you look at facts, the absurdity is not to believe that the US dollar will not collapse, but it is in fact, absurd to believe it will not collapse and will not collapse soon.
Going from 1960 to the month before the Lehman crisis in 2008, the average exponential growth rate of global fiat currency was around about 5.9%, year in/year out. It followed that track very closely. Then of course we had TARP and all of the rest of it. And then we had QE. And guess what? The level of fiat-money quantity is now over 60% above that long-term trend line. Now, if we stand back unemotionally and look at that chart, we would say that this is monetary hyperinflation.
Here we have this situation now where the Central Bank, the Fed, is having to produce money to finance the government deficit. It’s having to produce money to keep interest rates down so that the banks don’t have balance-sheet problems. And if it slows down in that production of money, and even if it doesn’t increase the rate of the production of that money, then our world is going to come to a rather nasty halt.
It looks like not only are we in a debt trap, but we are in a hyperinflationary trap. [Read more...]
Paper currencies seem normal. They seem natural. We are told they are necessary. Paper currencies with no intrinsic value are used everywhere – we pretend they are valuable. If we don’t look closely, or remember the world of 60 years ago, they seem like a good idea.
Monopoly money. Euros. Dollars. What is the essential difference? Paper, with no intrinsic value, is accepted only because we have confidence in the issuer of the currency and/or because we have no other choice. Monopoly money can buy hotels on Park Place. Unbacked paper dollars can buy hotels in Manhattan. The hundreds of unbacked paper currencies that have become worthless during the last century can buy NOTHING.
Holding unbacked paper money is like holding an explosive device with a long burning fuse. Eventually that paper money will explode into worthlessness – it may survive for some time – but history shows clearly that paper money eventually declines to its intrinsic value – near zero. [Read more...]
In the Keiser Report, Max Keiser and Stacy Herbert, discuss the good news for the economy as compensation payments for fraud trickles into the local economy and then they introduce the concept of the People’s Price Fix and a Keiser’s Hierarchy of Price Fixing. In the second half, Max interviews Professor Antal E. Fekete of FeketeResearch.com about Fed induced hyper-deflation and why the American Austrians were wrong to predict that quantitative easing would cause inflation. [Read more...]
For most of his 40 years in the finance industry, Alasdair MacLeod has been de-mystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man.
Alasdair believes one of the major consequences of unsound monetary policies will come in the form of a currency crisis as soon as this winter.
Alasdair discusses his views on how this crisis may unfold and how you can protect your wealth from its destructive impact. [Read more...]
There is a reason why every fiat currency in the history of the world has eventually failed. At some point, those issuing fiat currencies always find themselves giving in to the temptation to wildly print more money. Sometimes, the motivation for doing this is good. When an economy is really struggling, those that have been entrusted with the management of that economy can easily fall for the lie that things would be better if people just had “more money”. Today, the Federal Reserve finds itself faced with a scenario that is very similar to what the Weimar Republic was facing nearly 100 years ago. Like the Weimar Republic, the U.S. economy is also struggling and like the Weimar Republic, the U.S. government is absolutely drowning in debt. Unfortunately, the Federal Reserve has decided to adopt the same solution that the Weimar Republic chose. The Federal Reserve is recklessly printing money out of thin air, and in the short-term some positive things have come out of it. But quantitative easing worked for the Weimar Republic for a little while too. At first, more money caused economic activity to increase and unemployment was low. But all of that money printing destroyed faith in German currency and in the German financial system and ultimately Germany experienced an economic meltdown that the world is still talking about today.
The implications of the Fed not going ahead with tapering are bad for the dollar and won’t stop bond yields at the long end from rising. It shows that the whole US economy is in a massive debt trap that cannot be addressed for powerful reasons. The reality is the expansion of cash and deposits in the US banking system is tending towards hyperinflation and is proving impossible to stop. That is the message from this week’s FOMC meeting, and I expect it to gradually dawn on investors world-wide in the coming weeks. [Read more...]
In this interview David Morgan and Ellis Martin discuss the geopolitical implications of a new war in the Middle East with regard to Syria and the players both behind the scenes and in full view. Who really is calling the shots? And what effect does any of this have on the price of gold and silver? David also responds to a listener’s questions: How can a strong dollar co-exist with stronger precious metal prices? Is hyper-inflation going to be a reality anytime soon? When will the market really heat up and when will the best gains be had? [Read more...]
Smart Knowledge U’s JS Kim has released an interview with World Bank whistle-blower Karen Hudes discussing the criminality of the global banking cabal, the coming financial crisis, and gold backwardation. Hudes states to JS Kim:
“We have fired these Central Bankers. And there is going to be more and more accountability…A lot of these [bankers] understand that there will be a day of reckoning” for them because more and more of the world’s citizens are awakening to what bankers really are up to these days, and they are not happy with what they are discovering about the banking industry.
Hudes predicts that one day soon the citizens of the West will wake up and will dump their fiat paper currencies, and will flock to the sound money of gold and silver to store their wealth, and that if gold backwardation remains a permanent fixture, a world depression will result:
“Paper has no intrinsic value. It is only valuable if people agree that it has value. Fiat currencies are now under siege and we have a limited amount of time to set up alternative monies. If we have permanent gold backwardation, international trade will simply stop and we will have a world depression that will make what happened in the 1930s and 2008 look like nothing.”
World Bank whistle-blower Karen Hudes full interview with JS Kim is below: [Read more...]
We are witnessing the beginning stages of political collapse. The government and its leaders are being discredited on a daily basis. The mismanagement of fiscal policy, foreign policy and domestic policy, along with the revelations of the NSA conducting mass surveillance against all Americans has led critical thinking Americans to question the legitimacy of the politicians running the show on behalf of the bankers, corporations and arms dealers. The Gestapo like tactics used by the government in Boston was an early warning sign of what is to come. Government entitlement promises will vaporize, as they did in Detroit, with pension promises worth only ten cents on the dollar.
Total social and cultural collapse could resemble the chaotic civil war scenarios playing out in Libya and Syria. The best case scenario would be for a collapse similar to the Soviet Union’s relatively peaceful disintegration into impotent republics. I don’t believe we’ll be this fortunate.
The most powerful military empire in world history will not fade away.
It will go out in a blaze of glory with a currency collapse, hyper-inflation, and war on a grand scale. [Read more...]
The first signs of hyperinflation have arrived.
There was one hugely notable development in the gold and silver markets last week. Normally anytime, Ben Bernanke whispered even a hint or suggestion of QE tapering, the gold and silver markets would crash on such an announcement. However, this time, gold price behavior reacted intelligently to the insanity of Central Banking monetary policy and it ignored the propaganda of Central Bankers and continued to rise. Why is this development so significant? It is massively significant because it signals a further breakdown of confidence in the monetary system. Every other instance that Chairman Bernanke even hinted about tapering QE, it gave the Federal Reserve and their puppet bullion banks an opportunity to suppress the price of gold that they successfully relished. This time around, I don’t believe that their propaganda was any less effective than all the prior times Bernanke falsely warned about QE tapering. So what has changed? People no longer care what Bernanke and other bankers say about QE because their confidence in fiat currencies, as illustrated by the largest single day drop of the Indian rupee last week, is starting to finally, and justifiably crack. And the first sign of a loss of confidence in fiat currencies and a vote for the solid valuation of gold (and silver) money is the first sign of potential hyperinflation ahead.