Owning Some Cash Gold is a ‘No Brainer’…
Silver just CONFIRMED gold’s breakout that the PM markets are ready to move alot higher.
It’s not about what happened in Europe, but what’s ABOUT to happen in the United States…
“This is going to be a huge crisis. Alan Greenspan was on CNBC saying this is the worst thing he has seen in his career. He’s not talking about what has already happened. He’s talking about what is ABOUT to happen. He understands how screwed up the economy is because he helped screw it up. . . . One of these days, you are going to see gold moving up at $100 clips routinely when people really perceive the dangers in the fiat world and come to grips with how much money these central banks are going to PRINT…”
The 2008 crisis saw the Fed use some of its tools, but not all of them.
The Fed’s most powerful tools, gold revaluation and money printing, were never employed in that crisis.
QE4, if used to fund government infrastructure spending, can be inflationary, but if the next crisis is severe, only gold revaluation will work to end it.
Many of us are now predicting another round of QE, quite possibly before the leaves are finished falling off the trees this fall around the country.
The one thing the Fed really is frightened of is contracting bank credit. And this idea of collateral liquidation leading to more selling of collateral by the banks to cover loans is sort of self-feeding into nasty collapse if you like in asset prices.
Now that’s not going to happen because they are going to print money to insure it doesn’t happen.
We are very very close to that sort of tipping point and I think that people who have an understanding of this are not going to hang around and wait for the Fed to print money. They are going to go quite quickly against the dollar…
Anybody who doesn’t own physical silver or gold could miss out. I think there’s a big change coming.
The more blatant the Fed becomes with its market interventions, the stronger the stench of desperation becomes…
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.
“January was just loaded with big events…the door was opened to a number of different channels working simultaneously for bringing about what I call the global paradigm shift and that’s basically the retirement of the dollar and the re-installation of the gold standard both in trade and in banking.
Sooner or later we’re going to see a massive flow of major banking systems dumping Treasury bonds because they don’t use them anymore – they don’t want them anymore. And that’s when we’ll see QE4 come into play.”
In this week’s Metals & Markets, The Doc & Eric Dubin break down the ECB’s massive €60 billion a month QE announcement Thursday, and discuss whats next for the global markets and gold & silver in particular:
- Gold & silver’s strong January continues with silver $4 off its lows and gold nearly $200 off its December lows
- Cartel setting metals up for a Classic Gold & Silver raid on next week’s options expiry and January FOMC statement!
- Why Fed will soon begin backpedaling on rate hikes, may announce QE4 by Q4!
- Cartel raid likely won’t last- Why gold is likely to rise by 20% at a minimum in 2015- and COULD DOUBLE!
The SD Weekly Metals & Markets With The Doc & Eric Dubin is below:
In this MUST WATCH Bloomberg interview, Peter Schiff warns that China is poised to follow in the footsteps of the Swiss National Bank, and ditch the dollar peg- resulting in the Yuan soaring and a collapse of the dollar.
Schiff warns the fallout will be a 10 on the economic Richter scale, and will occur prior to the end of 2015, when the Fed announces QE4- “which will be bigger than QE1, 2, & 3 COMBINED”
Schiff’s full MUST WATCH interview is below:
In the wake of the European melt-down in progress thanks to the botched Russian bank heist in Cyprus, the Fed will likely not to be able to afford the luxury of spewing any more MOPE propaganda about QE Fexit in today’s FOMC release (almost an afterthought with the events of the week thus far), but as is tradition here at SD, ahead of Bernanke’s public appearance-
PUNT THE BERNANK!
Legendary gold trader Jim Sinclair sent an alert to email subscribers this morning stating that the reason gold was massively shorted by the banksters at $1800 down to the lows near $1530 was the fact that inside info was intentionally leaked to them by governments wishing to suppress the gold (& silver) price that quantitative easing would be shifting to depositor haircut bail-ins.
Sinclair states that as is plainly seen by the rapidly spiraling out of control Cypriot bail-in, the reason why gold has been so heavily shorted in the paper market is NOT valid, and shorts in the paper market must cover.
Sinclair states that this week’s events in Cyprus ensure that QE to infinity has its foundation solidly set in cement.
Sinclair’s full MUST READ alert is below:
By Bill Holter:
Ben Bernanke testified last week about the Fed’s “exit strategy”. As I’ve written before, there is none, there can’t be one, and there never will be one! Every time in the past when the Fed let up (even just a little) on the accelerator the markets (and economy) would begin a hissy fit. Now, the Fed is even funding the European banking system as reported by Zerohedge .
The typical articles over the last many years have featured a particular theme. In the last few months, the central theme in Jackass articles has been the isolation and demise of the USDollar, how it is happening, why it must happen, and its importance in the restoration of the global financial structure. But this week, a sudden urge has come to address an overwhelming list of critical gritty questions. They crop up with clients, colleagues, and friends.
More than a crisis, it is more accurately described as a collapse of a corrupt inequitable monetary system, and a desperate defense by the major Western bankers to preserve their power over nations and their governments, alongside a vile vicious violent attempt by the United States to maintain its privilege as owner of the vast USDollar counterfeit machinery, as controller of vast banking pillars of paper columns, and as commander of a vast military.
THE UNITED STATES IS PREPARING TO FALL INTO THE THIRD WORLD.
The next time you hear propaganda from Fed officials or the financial MSM that the Fed will end QE by the end of 2013, please recall this startling statistic: thus far in 2013, the Fed has increased its Treasury bond holdings by $51.1 billion, while the official US debt has increased by only $47.2 billion over the same period.
This confirms with startling clarity that the Federal Reserve is the ONLY remaining purchaser of US debt in size, and that the Fed must not only take up all of the newly issued US debt, but it must also absorb the maturing treasury bonds coming due.
QE is going to INFINITY…AND BEYOND… and will continue until one of three events occur:
1. Gold revaluation (the final deflation-fighting tool in Bernanke’s toolbox)
2. Dollar devaluation (essentially #1 just announced in dollar terms) such as Venezuela announced Friday
3. Hyperinflation of the dollar & complete systemic collapse.
In his latest market update, Greg Mannarino states that silver is at the edge of a massive breakout, and that the metal remains the most undervalued asset in the history of the world- but not for long.
Mannarino states that we are standing at the precipice of a major upwards move in silver, and that the Fed will soon step in and increase the rate of quantitative easing and expand the scope of QE4, unleashing a flood of new counterfeited currency into the economy.
Mannarino examines the cup and handle on silver’s weekly chart, and believes silver will run to $38 nearly immediately once silver’s current consolidation near $31.80 is able to take out $32 to the upside.
Silver- at the edge of a massive upside breakout? Mannarino’s full update is below:
Jim Sinclair has sent an email alert to subscribers tonight regarding the Treasury bond bubble. While many in the precious metals community believe that the T bond bubble will spectacularly bust and collapse in the near future due to the US’ unsustainable debt, Sinclair states that the Treasury bond market cannot collapse as long as the Fed continues purchasing US debt via QE to infinity.
Sinclair states that quantitative easing will continue to increase in size by the Fed to meet the size of US bond offerings, and that US interest rates will not rise substantially unless the Fed ceases its QE program.
Essentially Sinclair is stating that interest rates will continue to manipulated at an artificially low level by uneconomic buying of T-bonds by the Federal reserve governor typing on a keyboard, and that the pace of QE will keep pace with the pace of the US budget defecit/ funding gap, until which point the US dollar faces a collapse in the confidence of the currency itself.
Sinclair’s full alert is below:
The lovely Lauren Lyster, formerly of Capital Account and now the new host of Yahoo’s Daily Ticker, interviewed SD’s favorite Fed-basher Jim Grant regarding the Fed’s latest FOMC statement.
Grant stated that if creating credit was able to successfully reactivate business activity the world would have been richer many generations ago, that the Fed’s actions are counter-productive, that QE funds injected into the economy is money in search of mischief, and that Bernanke’s manipulation of interest rates will fail spectacular with major fireworks as the price of interest rates find their own free market valuation.
As always, Jim Grant’s interview is a MUST WATCH!!