Central banks must be increasingly aware that critics of monetary policy are getting some traction in their arguments, that not only have monetary policies failed in their objectives, but they are creating counterproductive economic distortions as well. Chief among these is the transfer of wealth that comes with monetary debasement.
“The Fed, I think, is willing to sacrifice the dollar to keep propping up the bond market. Even if we launch QE4, it may not have the effect on the bond market that prior round of quantitative easing had. They may lose control of the long end of the bond market… I think the dollar is going to tank... In order for the Fed to keep the air from coming out of this bubble (in bonds), they will have to sacrifice the dollar.”
Where does that leave hard assets like gold?
Is A Wholesale US Treasury Bond DUMP Coming?
Price controls were last tried in the 1970s, and everyone swore, never again…
In This Exclusive Interview, London Analyst Alasdair Macleod Issues A Dire Warning: If Trump Fails to Learn THIS, He Will Lead America Into A Repeat of the Great Depression…
A decision to own gold and silver is a conscious choice to trade paper currency (i.e. a liability of a central bank) for something that’s real:
The numbers are pretty startling.
“We are facing a terrible crisis… In terms of the Fed (getting control) and the long term solvency issues, these are death knells for the dollar. Unless those are addressed, you are going to see massive selling of the dollar, a debasement of the dollar and high inflation that will lead you into hyperinflation…”
Please read this carefully because if you do not understand it, you will not understand “why” mathematically we are about to go through Financial and Economic Disaster:
From Scandinavia to Amsterdam to India and elsewhere, the trend of going “cashless” is gaining traction.
According to Federal Reserve data, the average lifespan of a $100 bill has fallen by more than 30% over the last several years:
“How on earth are we going to resolve $120 trillion on balance sheet and off balance sheet liabilities before we consider state and local debt and underfunded pensions? My suspicion is we get out of this in one of two kinds of defaults.
I think we will have a series of unofficial defaults where we devalue the net present value of the obligations, which is a different way of saying we devalue the currency, gradually like we did in the 1970’s. I think that will have the same impact on gold and silver prices…”
This is an important lesson in hyperinflation:
It’s beginning to look like the Indian Government’s latest attempt to suppress the amount of physical gold demanded by the Indian population is going to backfire – badly.
As this effort fails, the rebound in the price of gold and silver will likely create its own “shock and awe”:
Greg Mannarino warns the financial sector is about to take a MAJOR hit:
Last weekend, the Washington Post reported a new, McCarthy-type black list of “fake” political news sites. The mainstream reporting of the the current economic news is now so pathetic and biased that there will no doubt soon be a similar list of “fake” economic news sites.
If you think a cashless society is not coming, just keep telling yourself that every time you use debit, credit or your phone for a purchase.
A fistful of bolivars buys… well, next to nothing. A sad state of affairs in Venezuela.
But is America next?
Peter Schiff Warns QE4 Is Coming…
We’re heading for hyperinflation.
The END GAME is Everybody has ZERO Purchasing Power Currency…
The world is sitting at the edge of a massive deflationary cliff.