What we have been through over the last 6 months in precious metals has been entirely a “Wag the Dog” production made to herd the sheeple back in line. The Fed is actively trying to get people to “spend” their money. Spend it on “stuff”, spend it on stocks, spend it on real estate…SPEND IT on anything…except Gold or it’s little sister Silver. They absolutely must get velocity turning higher because they cannot create new money as fast as it’s going into hiding and being destroyed. The problem as I mentioned is that once velocity actually does turn upward, they may (will) have a situation where a “run” OUT of the Dollar begins which cannot be stopped. This is hyperinflation. [Read more...]
The global financial system is crumbling right before our very eyes because criminal bankers have imposed a fraudulent, rubbish fractional reserve banking and monetary system upon us that is the world’s largest criminal cartel of thievery and immorality. Understand that with the world’s currency race to the bottom, if you leave your money in the form of fiat currency, bankers will turn thousands of paper millionaires into paupers in a few years. [Read more...]
Jim Willie of GoldenJackass.com says powerful forces around the globe are working to do away with trading in U.S. dollars because of massive money printing by the Fed.
Dr. Willie says, “The world makes a reaction, and what they have done is create, slowly but surely, a U.S. dollar alternative for trade.” Dr. Willie’s sources say precious metals will be used to back a new currency and predicts, “The gold price will be $7,500 to $8,000, and silver will be between $150 and $250 per ounce.” This will be a disaster for U.S. Treasuries, and Jim Willie says, “All these Treasury Bonds will be sent back to the United States where they can choke U.S. bankers . . . they cannot refuse them.” Dr. Willie predicts “the economy will implode,” and he says, “I don’t believe we’re going to see garden variety powerful inflation. I believe, instead, we’re going to get large widespread cut-off of supply chains” as foreigners simply stop accepting the dollar. As far as dollar assets inside the U.S., expect widespread confiscation. Dr. Willie contends, “When the losses from the debt write-downs come, I see tremendous national wealth lost because private accounts are really just bank assets.” Join Greg Hunter as he goes One-on-One with Jim Willie. [Read more...]
For those unable to attend the Initiative on Global Markets conference in March, legendary fund manager Kyle Bass gave a shocking and eye-opening 48 minute presentation on Japanese debt, and how the ¥ will be the first currency to crash and burn in the rapidly escalating global currency war:
The Japanese interest expenditure is nearly ¥11 Trillion. To put that in perspective, their tax revenues are ¥43 Trillion. Japan is spending 1/4 of their tax revenue on interest alone today, with interest rates at zero (5 year bonds are at 17 basis points).
This is the zone of insolvency! There is no looking back! If Abe and Kuroda really achieve some sort of inflationary outcome, and the swaps move, they’re finished. Every 100 basis point move in cost of capital costs Japan ¥11 Trillion. A 200 basis point move has their debt service exceeding central government tax revenue! Those wishing for inflation do not know what they wish for!
Bass’ full MUST, MUST WATCH presentation on Japanese & global debt markets is below: [Read more...]
As the chart produced by Reinhart & Rogoft in the following brief Bloomberg clip demonstrates, after remaining constant for approximately 150 years, consumer prices have risen nearly 30 FOLD since the Fed was created in 1913.
The chart that should dissolve the Fed: 1775-2013: Hock Stick Inflation: [Read more...]
Economist John Williams says don’t be fooled by the new highs on the Dow. Williams contends, “The economy is still in serious trouble. The banking system is still in serious trouble. The budget deficit is exploding out of control.” Williams thinks the ongoing banking crisis in Cyprus has global implications. Williams says, “You have a precedence set in Cyprus that they can seize the funds. They will not guarantee all deposits. If that’s the case, you may have a much worse crisis than you had back in 2008.” Williams adds, “The big problem is the government is insolvent in the long term.” Williams says the U.S. dollar could start selling off in May because of a deadlock in Congress on the budget. Williams predicts, “The global markets are looking for the U.S. to address its long term sovereign solvency issues. That’s not going to happen. . . . In response, it’s going to be off to the races with a dollar sell-off. That could be the trigger for the early stages of hyperinflation.” Join Greg Hunter as he goes One-on-One with John Williams. [Read more...]
Submitted by Bill Holter:
Australia recently announced a deal struck with China where they will trade and settle in local currencies WITHOUT the use of Dollars. This “type” of deal is now becoming more common as the writing on wall for all to see is that no one wants to be “stuck” with Dollars. This poses a problem, a big problem for the U.S. as demand for Dollars is falling of a cliff at the same time supply (by necessity) has exploded. This situation of course was evidenced last year as the Fed was “forced” to buy nearly 70% of Treasury issuance…because there were no other buyers. In a sense this is becoming a self sustaining negative feedback circle where the Fed must purchase a larger percentage of issuance …because investors (trading blocs) see the over supply and reduce purchases further.
Submitted by Bill Holter:
Imagine that 2 weeks ago you were a Cypriot and faced losing some or all of your bank balances, what would you have thought? I ask you this question because chances are…you are not a Cypriot and you haven’t had your life savings “locked up”…yet. You see, whether you know it or want to believe it, we will “all be Cypriots” sooner or later. Pooh pooh me, stick your head in the sand or send me nasty e-mails, MATHEMATICALLY the entire world WILL become Cyprus sooner or later. Mathematically we are on a crash course with a global debt/currency crisis of epic proportions. [Read more...]
At Cheviot’s 2011 Sound Money conference, Dominic Frisby of Frisby’s Bulls & Bears gave a MUST WATCH presentation titled Why Gold is the Currency of the Free.
In light of the recent events in Cyprus, we thought it apropos to republish Frisby’s full presentation below: [Read more...]
Money manager Peter Schiff says, “Cyprus is a wake-up call for everybody who has a bank deposit. . . . When you are depositor, you are in fact . . . lending your money to the bank.” Schiff predicts, “There’s no question . . . banks will fail. The question is will government do the right thing and allow depositors to lose money. Or, do the wrong thing and bailout depositors by printing a bunch of money which, in the long run, means deposits will lose even more value.” The FDIC has just $33 billion to insure more than $10.8 trillion in deposits. Schiff is not expecting bank runs anytime soon. “Don’t expect an immediate stampede on the banks because I don’t think most people are smart enough to realize what the danger is,” says Schiff. What’s the best way to protect yourself? Schiff says, “Why would you leave any extra money in a bank to get zero percent interest. . . . I think pull your money out, put it into some kind of investment. . . . anything other than a piece of paper that’s going to lose value.” Join Greg Hunter as he goes One-on-One with Peter Schiff. [Read more...]
In an interview with TheBlaze, Peter Schiff makes the case that Bernanke is attempting to re-inflate the housing bubble, and states the Fed won’t stop the monetary heroin until we die of an overdose, and that the reckless monetary counterfeiting will result in a total collapse of the US dollar!
i.e. QE TO INFINITY until the dollar collapses into hyperinflation!
Schiff’s full interview is below: [Read more...]
In this excellent documentary, VisionVictory examines the fall of the Fourth Reich- thanks to an empire built on unsustainable debt. [Read more...]
Survivor of Mexican Peso Devaluation: Read the Writing on the Wall, Extricate Yourselves From Your US Dollar Positions!
In light of the recent events in Cyprus, where the banks will reportedly remain closed at least through March 26th and the likelihood that Cyprus will exit the Eurozone, re-institute the Cypriot pound and devalue the currency is growing by the minute, we thought it apropos to republish LRS’ first hand account and experiences recognizing, surviving, and even profiting from the devaluation of the Mexican Peso in the late 1970′s.
For those unfamiliar with the account of the 1976 Mexican Peso devaluation (and anyone who has not experienced a currency devaluation first-hand), this is an ABSOLUTE MUST READ as while the Cypriots may be the first, they will undoubtedly not be the last to devalue their currency before the global financial debt crisis is over.
LRS, who successfully saw the Peso devaluation coming and side-stepped loss of wealth by converting his funds into US dollars, states that Americans must:
Read the writing on the wall, and extricate yourselves from your US dollar positions. Physical gold and silver bullion and coins will be the ultimate protection and wealth preservation assets during the coming devaluation of the US dollar.
My experience with the peso devaluation makes it necessary for me to move my investments away from paper into physical gold and silver. It is going to be a very tough time for the US and I anticipate the Mexican devaluation will pale in comparison to our dollar devaluation.
LRS’ full first-hand account of the Mexican Peso devaluation is below:
*Editor note: Willie’s prediction that a European triggered complete collapse is at our doorstep is looking extremely timely with Europe staring a banking crisis in the face in the wake of the Cypriot depositor haircut announcement.
The Golden Jackass Jim Willie sat down with The Doc this weekend for the second part of an extraordinary interview regarding gold, silver, and what Willie believes will soon be a massive European banking collapse.
Willie states that a global financial collapse is now at our doorstep, and that the endgame will be triggered by a small-medium sized bank failure in Europe.
Willie informs SD readers that the coming European bust will ignite a global Gold rush as the only remaining safe haven, will see an end to the reserve status of the USdollar, and will result in the arrival of the Gold Trade Finance platforms.
Willie also discusses The Fed’s futile attempts to re-inflate the housing bubble, and the series of climax events that will bring a breath-taking global financial collapse to our doorstep!
The Golden Jackass states that the coming collapse will devastate everyone in the West except those who are bold enough and brave enough to buy gold & silver NOW!
Not all prices rise at the same time, nor do they rise evenly. Furthermore, the equation of exchange cannot differentiate between price changes that emanate from demand for goods and those that emanate from changes in preference for money – two effects that can produce very different results.
These unknowns are effectively wrapped up in that catch-all, velocity of circulation. [Read more...]