From Greg Hunter, USA Watchdog:
Money manager Peter Schiff, who wrote a book three years ago called “The Real Crash,” thinks the next calamity is well on its way.
Schiff says, “I think the next crash is going to be a dollar crash rather than a stock market crash. Certainly it is going to be an economic crash for the average American, and their cost of living goes skyrocketing.”
So, is the next crash going to be worse than the last meltdown? Schiff says, “It’s going to be much, much worse. If you understand what caused the 2008 financial crisis, it was the easy monetary policies of Alan Greenspan. . . . The monetary policies of Bernanke and Yellen dwarf what Alan Greenspan did. That was child’s play compared to what these guys have done. We have had zero percent interest rates for six years. We have had three rounds of quantitative easing (QE or money printing) and “Operation Twist.”
What I believe we will see is what we have always seen as a final result of fiat currencies, a collapse of confidence. Call it what you want, a deflationary collapse, or hyperinflation, the end result will be “confidence” in the U.S. dollar will collapse.
A break in the confidence of fiat currency will end with many currencies being replaced, this is a major part of your coming “re-set”.
Ask yourself this, in a financial collapse, “what will be safe”? Will your bank, broker or insurance company be safe, or even still solvent? Will our over indebted government be safe?
Will the pieces of paper or digital credits issued by this “safe” government and held by your “safe” institution …really be safe?
Steve St. Angelo (SRSroccor) joins me to cover the very latest in the gold and silver markets. As we note, Bloomberg’s mockingbird journalist Nicholas Larkin recently wrote that if China could obtain 10,000 TONS of gold, it would justify a re-pricing of gold to $64,000 ounce. However, Larkin argues that China has well under 2,000 tons by referencing the nation’s last official report from 2009.
Steve and I discuss how it’s far more likely that China already has 10,000 Tons of gold NOW!
So… what happens to the gold price once China officially updates its six year old “official” number… huh Bloomberg?!
History shows that hyperinflation is a process. The engine will keep sputtering along, breaking from time to time, and they’ll try and patch it up again.
But at some point the debtors will decide that enough is enough.
Interest rates will rise, confidence will fall, and the system will finally burn.
- Silver Has Been in Backwardation Since January– No One Wants the Counter-Party Risk!
- The writing is on the wall for Greece- Bail-in appears inevitable!
- When Greece is bailed-in, Will Contagion Rip Across the Banking Systems of France, Italy and Spain?
- Turk Explains Why Fiat Currency is Coming to a Conclusion
- Governments Will Come Back to Gold Either Willingly, or Kicking and Screaming!
- When the Big Black Swan hits, Will Americans Finally Wake Up to the Encroachment of Fascism?
- Why it is Prudent to Protect Your Wealth With THINGS…Not Promises!
- Turk Explains Why Buying Gold Today at $1200 is Better Than Buying Gold at $35 in 1971!The SD Weekly Metals & Markets With The Doc, Eric Dubin, & James Turk is below:
“Global debt is $200 trillion, and it’s grown from the last crisis in 2008. Something has to happen to take care of that debt. Either it’s going to be repudiated or it’s going to be inflated away, or it’s going to be paid with taxation. . . . We are headed over Niagara Falls…
Savings can become worthless, and that’s what I tell people. Don’t save money that is going to devalue. This inflation that is going on that is presently debt that is like a cloud that is up there. When it begins to liquidate, it’s going to be pouring down. People will be rushing around trying to buy things. The money is going to be worthless because in a liquidation, what can you buy with all this water (fiat money) that is coming down. As long as it is up there in credit, it’s okay. It’s up there in the cloud, but if it begins to liquidate, watch out.”
The US economy is on death watch when measured in REAL accounting data like plummeting GDP and the downward revisions in the BLS reports., according to Alasdair Macleod, the Director of Research for Gold Money.
In fact, according to John Williams from shadowstats, as the ranks of the unemployed in the United States reaches 23%, the economy is now beginning to suffer the effects of inflation, and Williams says, we are on track to hit hyperinflation of the Dollar in 2016.
The problems that caused that 2008 economic crisis have not been addressed or fixed and loose monetary policy continues unabated.
With the average age of a minimum age worker in the United States 36 years old, and with 93 million Americans out of the workforce altogether, hyperinflation of the Dollar is the death knell for the Republic and for all we once held dear.
Alasdair Macleod points out that once confidence in a currency is lost, that currency is doomed.
At that point, panic ensues, and we are now headed in that direction. Alasdair says, “There will be people in the west panicking because they haven’t got any physical silver or gold.” And by the time the panic is palpable, it will be too late.
Pablo Picasso’s “Les Femme d’ Alger” sold at Christie’s in New York last night for $179 million – the highest price ever paid at auction for a painting.
It smashed the record previously held by Francis Bacon’s “Three Studies of Lucian Freud” which sold for $142 million in 2013.
The painting appreciated nearly $150 million in less than 20 years.
Hyperinflation appears to be taking hold in the art investment market.
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.
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.
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.
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:
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:
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?
At what stage will we see massive rise in CPI – even in real terms versus whether instead we will experience a currency collapse caused by widespread derivatives?
Reserve currency or no, hyperinflation is a process. And we are fully entrenched in that process…
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…
“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.