dollar collapse panic

Where are consumer prices headed and how this might affect precious metals?
This looks like the beginning of a severe deflationary cycle.
It is going to get worse before it gets better.

The central banks will try to correct this deflationary spiral with further reduce interest rate reductions, massive new doses of QE, moving even deeper into negative territory, a strategy that has proven to be a complete failure.
This does not bode well for any asset class.
Excess cash will not be loaned out, thus cramming more capital into the bank balance sheets, doing nothing for the global economies except stockpiling fuel for a burst of hyperinflation.

nuclear bomb

A reset in the financial system seems inevitable.
As fiat currencies are devalued confidence in the value of paper assets evaporates and the prices for gold and silver increase substantially.
If central banks and politicians choose hyperinflation, all bets are off regarding how high gold and silver will climb, and how crazy our Twilight Zone world will become. 

dollar

A financial system based on paper assets, extreme leverage and debt require economic expansion to be sustainable.  Thus, the majority of investors do not realize they have sunk their wealth into a CAPITAL SINK.  A sink that will only drain in one direction–DOWN.
An individual needs to understand why most paper assets will be in severe trouble in the future and why its also important to move into physical assets.  I believe gold and silver are two of the most safest physical assets to own going forward.

launch rocket vertical

Every day that passes by without a serious correction in the stock market marks another day that the entire stock market becomes increasingly dislocated from the underlying fundamentals.
It’s beginning to feel like the early stages of a Weimar-style blow-off.
Get ready for QE4.

The global debt glut, plus the related money printing efforts by the world’s central banks to try to stimulate further credit growth at all costs, leads us to conclude that a major currency crisis — actually, multiple major currency crises — are practically inevitable at this point.
To understand better the anatomy of a currency collapse, we talk this week with Philip Haslam, author of the book When Money Destroys Nations. Haslam is an authority on monetary history, and more recently, has spent much time in Zimbabwe collecting dozens of accounts of the experiences real people had as the currency there failed. 
This week, Haslam and Chris Martenson discuss the process by which a hyperinflationary currency collapse occurs:

return king

 The NDB is the gigantic Trojan Horse. The Jackass has been boldly stating that the NDB is for converting USTreasurys, EuroBonds, UKGilts, and JGBonds into Gold bullion and will form the BRICS Gold Central Bank. The conversion process will send the Gold price toward $10,000 per ounce.

The Gold Standard will arrive from the trade ramps, not the FOREX window. Then later, the global banking systems will discard the USTreasurys held in reserve.
The event will trigger QE4, and collapse the Western central bank franchise system.
Then comes the New Scheiss Dollar on a contrived platter.
Gold will win, just a question of when, how, and the depth of global economic destruction.
When the Gold & Silver markets are finally released from COMEX & LBMA shutdown, and given room to run by the Shanghai market mechanisms, the supply line will not be prepared:

down fall plunge

This is an economic collapse update from SGTreport.
On Wednesday, March 18, 2015 the U.S. Dollar experienced an unprecedented ‘flash crash’ shortly after the market close, losing nearly 5% of its value in a matter of moments.
When a currency falls 5% in a single day it’s a noteworthy event, but when the world’s reserve currency plummets nearly 5% in an algo-induced flash crash it’s downright frightening.
Is it a harbinger of very bad things to come?

Bernanke

To the Austrians inflation is an increase in the quantity of money and credit.  Inflation is not defined as rising prices; this is the long-run result of inflation in the quantity of money and bank credit.
Common jargon confuses the effect for the cause.

It seems our modern Central bankers believe something quite different entirely…

Are we on the verge of an unprecedented global currency crisis?
The U.S. dollar continues to surge against almost every other major global currency.  The U.S. dollar index has now risen an astounding 23 percent in just the last eight months, the fastest pace the U.S. dollar has risen since 1981. 
Do you remember what happened the last time the U.S. dollar went on a great run like this?
As you can see from the chart below, it was in mid-2008, and what followed was the worst financial crisis since the Great Depression…

dollar

The repercussions of Russia on a gold-exchange standard would be immense.   Above all, it would mean the first major schism in the world’s monetary order. China would quite likely follow suit.
It could mean the threat of a severe inflation in the United States should rafts of unwanted dollars make their way back across the Atlantic — the Fed’s ultimate nightmare.

bankster Assassinations

A final End Game has begun.  The current stage is the global rejection of the USDollar, the once respected revered and resilient currency which has in recent years fallen on its own Third World sword. QE is a Third World monetary policy, plainly stated. What remains is the loss of the most prestigious of the nation’s calling card, the USD as global reserve currency.
USDOLLAR HOISTED ON ITS OWN PETARD
The reaction of global USDollar rejection in response to Quantitative Easing, otherwise known as hyper monetary inflation, will go down in US history, even world history, as the greatest self-inflicted gunshot wound the head and chest in two thousand years.

Donbass 14De-dollarization is not only happening, but is close to reaching “escape velocity”.
Obama and Poroshenko can plan fresh hostilities and the breaking of Minsk 2.0 all they want, but time is not on their side.
From economic collapse in Ukraine, to hyperinflation, to the risk of a brand new uprising developing by restless locals, the newest banker puppet regime in Ukraine is in danger of losing control after just one year in power.

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. 

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.