Alasdair Macleod On Why a Hyperinflationary Currency Crisis is Dead Ahead

silver precipiceGoing 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...]

Created Currencies… are NOT GOLD! (Financial Prepping 101)

hyperinflationPaper 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...]

Antal Fekete on Why QE Will Not Cause Hyperinflation

binford xlIn 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...]

Alasdair MacLeod: Dollar CRISIS this Winter, CONFISCATION of Gold & Silver?

dollarFor 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...]

Quantitative Easing Worked For The Weimar Republic For A Little While Too

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. 
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Alasdair Macleod: No Tapering- US in a Massive Debt Trap Heading Towards Hyperinflation!

Jim SinclairThe 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 risingIt 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...]

David Morgan on Hyperinflation, the Dollar, & How Syria Will Affect Gold & Silver

gold morgan oilIn 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...]

World Bank Whistleblower: Permanent Gold Backwardation Will Result in a Massive World Depression!

economic collapseSmart 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...]

Trying To Stay Sane In An Insane World – At World’s End

hyperinflationWe 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.
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First Signs of Hyperinflation Have Arrived!

debtwb2The 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 riseWhy 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.
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When the World’s Most Popular Religion Falls, Hyperinflation Will Arrive!

jump into fireThe 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.
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Inflationary Deflation: Gold & The End-Game

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.

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Three Key Economic & Resource Reality Opportunities for Investors

silver dollarReal 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.
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We’re Going into the Greatest Depression – Gerald Celente

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...]

Ben Bernanke’s Real Message for Gold Investors, Translated by John Williams

Source: Banzai7

Source: Banzai7

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...]