The world’s most popular faith-based religion one is a false one and it is a fractional-reserve based fiat currency.
When the first fiat currency falls, whether it is the yen, the pound sterling, the Euro, or the USD, hyperinflation will arrive like a screaming banshee from hell.
The world’s most popular faith-based religion one is a false one and it is a fractional-reserve based fiat currency.
Excessive monetary stimulus and low interest rates create financial bubbles. This is the biggest debt bubble in history. It is a potent deflationary force and central banks are forced into deploying increasingly aggressive (offsetting) inflationary forces. The avoidance of a typical deflationary resolution to this economic long (Kondratieff) wave is pushing the existing monetary system beyond the point of no return. The purchasing power of the developed world’s currencies will have to bear the brunt of the “adjustment”. Preparations for this by the BRICS nations, led by China, are advancing rapidly. The end game is an inflationary/currency crisis, dislocation across credit and derivative markets, and the transition to a new monetary system. A new “basket” currency is likely to replace the dollar as the world’s reserve currency. The “Inflationary Deflation” paradox refers to the coming rise in the price of almost everything in conventional money and simultaneous fall in terms of gold.
Meanwhile, the historic separation between the physical and “paper” gold markets have moved to a more advanced stage. Backwardation in both the futures and lending markets is occurring with simultaneous drawdowns in the vaults, laying the ground for the next phase in the bull market.
Real unemployment is increasing in the U.S.A., and has now risen to a record 23.4%!
This is significant not only because of the devastating impact on the poor souls who cannot find work, (and reflects indeed the increasing impoverishment of the USA’s middle class) but also because it means that the U.S. Consumer – 70% of the U.S. Economy – is not going to be able to generate or sustain an economic recovery.
The U.S. is already Threshold Hyperinflationary with Real CPI at 9% (generated by ongoing Massive Central Banks’ QE) and Real GDP a Negative -1.98%. These increasing CPI numbers signal an Opportunity for those who Invest with an eye to the coming Hyperinflation and a Threat to those who do not.
Top trends forecaster Gerald Celente says NSA leaker Edward Snowden is a non-event. Celente charges, “What did Snowden say that we didn’t write about over a year ago.”
Celente says the real stories are the imploding economy and coming war. Another crash is coming, and Celente predicts, “It will be worse than the panic of ’08. It will be deeper. It will be more painful because they will not be able to pull off the stimulus game again.” Celente goes on to say, “We are going into the Greatest Depression, but they will try to boost it in some way, and that’s when gold and silver prices will skyrocket.” Celente also predicts war in the Middle East is a lock. Celente says, “When all else fails, they will take us to war. We are seeing war drums beating louder and louder throughout the Middle East as the Middle East is collapsing.” As far as a real recovery is concerned, Celente boldly states, “The business of America has become war, and as long as business is war, there is not going to be any recovery.” Join Greg Hunter as he goes One-on-One with Gerald Celente. [Read more...]
Don’t fall for propaganda from the Federal Reserve about tapering quantitative easing, says ShadowStats editor John Williams in this interview with The Gold Report.
His corrected economic indicators show the U.S. is nowhere near a recovery and the Fed will have to increase rather than decrease bond buying to prop up the banks and push off inevitable dollar debasement. That could be very bad for savers, but good for gold. [Read more...]
This is no time to be complacent. Massive economic problems are erupting all over the globe, but most people seem to believe that everything is going to be just fine. In fact, a whole bunch of recent polls and surveys show that the American people are starting to feel much better about how the U.S. economy is performing. Unfortunately, the false prosperity that we are currently enjoying is not going to last much longer. Just look at what is happening in Europe. The eurozone is now in the midst of the longest recession that it has ever experienced. Just look at what is happening over in Asia. Economic growth in India is the lowest that it has been in a decade and the Japanese financial system is beginning to spin wildly out of control. One of the only places on the entire planet where serious economic problems have not already erupted is in the United States, and that is only because we have “kicked the can down the road” by recklessly printing money and by borrowing money at an unprecedented rate. Unfortunately, the “sugar high” produced by those foolish measures is starting to wear off. We are going to experience a massive amount of economic pain along with the rest of the world – it is just a matter of time.
What happened back in 2008 was just a preview.
What is coming next is going to absolutely shock the world. [Read more...]
The financial system of the third largest economy on the planet is starting to come apart at the seams, and the ripple effects are going to be felt all over the globe. Nobody knew exactly when the Japanese financial system was going to begin to implode, but pretty much everyone knew that a day of reckoning for Japan was coming eventually. After all, the Japanese economy has been in a slump for over a decade, Japan has a debt to GDP ratio of well over 200 percent and they are spending about 50 percent of all tax revenue on debt service. In a desperate attempt to revitalize the economy and reduce the debt burden, the Bank of Japan decided a few months ago to start pumping massive amounts of money into the economy. At first, it seemed to be working. Economic activity perked up and the Japanese stock market went on a tremendous run. Unfortunately, there is also a very significant downside to pumping your economy full of money. Investors start demanding higher returns on their money and interest rates go up. But the Japanese government cannot afford higher interest rates. Without super low interest rates, Japanese government finances would totally collapse. In addition, higher interest rates in the private sector would make it much more difficult for the Japanese economy to expand. In essence, pretty much the last thing that Japan needs right now is significantly higher interest rates, but that is exactly what the policies of the Bank of Japan are going to produce.
Are we witnessing the beginning of a colossal financial meltdown by the third largest economy on the planet? The Bank of Japan is starting to lose control, and if Japan goes down hard the crisis could spread to Europe and North America very rapidly. [Read more...]
Submitted by Deepcaster:
“The Fed wants to kill all signs of inflation to hide the damage they’re doing to the middle class. First the Fed leaves food and energy out of the CPI, and then they get the Labor Department to lie about the figures. Their last trick — smash the price of gold and silver. What are they going to do when the bond market (fearful of inflation) collapses? You can’t fool all of the people all of the time.”
“I promise you, when the true forces of inflation finally break loose, the Fed won’t be able to disguise what they’ve wrought. When the true forces break out — it will be a national disgrace and an emergency. “Then you will know the truth, and the truth will set you free.” The rest of this year should be something to behold.” [Read more...]
Gold and USTBonds aint a market. Their so-called official trading arenas are empty rooms with USGovt and USFed devices filling the empty space, creating a phony price. The false Gold price has no real supply. The false Bond price has no real demand. The claimed price is not where Supply meets Demand to clear the table on the market. Neither Gold more the USTBonds are a real market.
A Paradigm Shift is underway. The United States and its fascist allies are not in control. They will not find a path to retain or regain control. They have no solutions. The most powerful element of the shift has been the movement of gold wealth from Western locations to Eastern locations.
The world reacts by searching for a USDollar alternative, since the removal of the Gold Standard has crippled the world and permitted widespread fraud. The new standard will usher in the new Gold Trade Standard.
The US account holders will be treated with stock shares in conversion for the dead banks, whose value will converge quickly to zero. Expect soon the result to be a climax with bank runs.The bank runs will coincide with bullion bank runs, the fast removal of gold held in inventory vaults at the bullion banks.
Is the coming financial collapse going to be inflationary or deflationary? Are we headed for rampant inflation or crippling deflation? This is a subject that is hotly debated by economists all over the country. Some insist that the wild money printing that the Federal Reserve is doing combined with out of control government spending will eventually result in hyperinflation. Others point to all of the deflationary factors in our economy and argue that we will experience tremendous deflation when the bubble economy that we are currently living in bursts. So what is the truth? Well, for the reasons listed below, I believe that we will see both.
Cash will not be king for long. In fact, eventually cash will be trash. The actions of the U.S. government and the Federal Reserve in response to the coming financial crisis will greatly upset much of the rest of the world and cause the death of the U.S. dollar.
The next major financial panic will cause a substantial deflationary wave first, and after that we will see unprecedented inflation as the central bankers and our politicians respond to the financial crisis. This will happen so quickly that many will get “financial whiplash” as they try to figure out what to do with their money. We are moving toward a time of extreme financial instability, and different strategies will be called for at different times.
So why will we see deflation first? The following are some of the major deflationary forces that are affecting our economy right now… [Read more...]
The tactic by the Fed and Central Banks is to inflate the stock markets while manipulating the price of gold and silver lower. This achieves two goals: 1) it reassures the public’s faith by pumping up stock prices while the economic indicators continue to deteriorate and 2) it elevates the dollar while it destroys market sentiment in the precious metals.
So far, the strategy has worked. Some of the toughest gold and silver bugs are becoming extremely frustrated and downright bearish. You can’t blame them as this is typical human psychology. Although, extremes and manipulations never last forever and at some point in time they reverse.
If we look at the next series of charts, we can see just how extreme the gold & silver markets have become. In typical inflation-hyperinflations, stock and commodity asset prices rise together. However, since the Fed announcement of Q3, only certain asset classes have risen — mainly stocks, real estate and to a lesser extent, bonds. [Read more...]
Jeff Nielson from Bullion Bulls Canada joins SGT to discuss the global flight out of paper gold and silver and into PHYSICAL bullion. We also talk about the new CBC documentary “The Monarchs of Money” – and how it attempts to elevate the Central Banksters to benevolent servants of the financial markets, even as it shares some truth. We wrap things up with a conversation about deflation VS inflation VS hyperinflation — Jeff says, without a single additional printed dollar, the US and all major countries on earth could find themselves in a state of hyperinflation the minute the Banksters unleash the TRILLIONS already printed. [Read more...]
Tangent Capital’s Jim Rickards was on CNBC’s Fast Money today, discussing gold in the wake of the recent smash to $1320.
Rickards called the smash a transition from weak hands at the COMEX to strong hands in China and Russia (& physical buyers across the world).
Rickards stated that the trend is up from here, although gold is likely to trade sideways for a majority of the year before climbing in Q4.
Rickards informed the CNBC shills that gold does well in periods of either inflation or deflation, and that The Fed will do everything they can. When they can’t win the battle against deflation, they devalue the currency against gold ’cause gold’s the only thing that can’t fight back.
The Currency Wars author states that If the Fed wins we’ll get inflation and gold will go up. If deflation prevails, we’ll wake up one morning and gold will be (revalued to) $4,000/oz.
Rickards’ MUST WATCH thoughts on gold are below: [Read more...]
The USFed stated publicly in early 2009 their desire to pursue an Exit Strategy. The Jackass on repeated occasions over three years ago refuted and contradicted their claimed path on monetary policy restoration to normalcy.
There is an Exit Strategy, but it is evident in the East. The Eastern nations are assembling a Eurasian Trade Zone and a BRICS central bank (aka Development Fund) with which they will exit the USDollar global reserve standard. In doing so, they will not require to fill their banking systems any longer with toxic USTBonds.
The end of the USDollar as global reserve is near, visible in tangible form. [Read more...]
“We’re just going to kill the dollar.”
This week, I had a series of very sobering discussions with my highly-placed source within the intelligence world. The information he provided hit me like a proverbial tons of bricks. It connects everything we are seeing play out across the world, from the economic problems in Europe to the U.S. DHS ammunition acquisition orders and even the “gun control” debate. If you’re like me, you’re looking for clarity, context and focus with regard to all of the events we’re constantly hearing about but seem to lack legitimate explanation. I believe this report will provide the context and clarity we are all seeking, but I must warn you that the picture is not pretty. [Read more...]