Blanchard Chairman: 4 Reasons Gold Will Remain Firm and Strengthen!
- The policies taken by the industrialized world are greatly undermining their own currencies. Debt level is rising and expected to rise for the next few years. Debt to GDP ratio is heading well above 100% for the G20. Although Asia is in much better shape than the west, China seems to be overheating and the Chinese government are stepping on the economic brakes massively. Easy money has been fueling property and stock market asset bubbles in China. China by itself is incapable of pulling the world out of economic depression. The debasement of fiat currencies will be apparent this year when gold rockets higher against all currencies. Blanchard chairman opines:
In a release put out by Blanchard yesterday, Chairman and CEO, Donald Doyle, points out four signs that the gold price is going to improve:The first reason he says, is “Central bank demand for gold is likely to continue to grow, with Russia and Venezuela adding to their reserves.”
The second sign is that interest rates in the largest global markets remain near zero. Which he says makes “ownership of non-yielding gold favorable and prudent, as it is a currency that cannot be debased by governments or central banks. “Continuing low rates and currency risk that is prevalent in the market should lead to gold remaining firm in all currencies,” he adds.
The third factor he mentions is that China continues to explore severing its links with the U.S. dollar. This he says, should make the yuan appreciate in the medium- and long-term. “With China’s vast dollar holdings, there should be continuing investment and central bank diversification into gold,” he adds.
The final point Doyle makes is about Europe, “There are legitimate concerns with the European monetary union, and the outlook for sovereign debt markets internationally is uncertain,” he says.
He is not, however, the only gold expert to think along these lines. Jeff Nichols, reiterated the position he outlined on the Mineweb Gold Weekly Podcast, last week when he spoke to Moneyweb CEO Alec Hogg on Tuesday saying, “All the major industrial nation currencies are reflecting problems in the western economies – problems that are being addressed by easy money and low interest rates that ultimately are going to be reflected in higher inflation and depreciating purchasing power for all these currencies. The question really is not which one is stronger or weaker, but how long it is going to take for them all to be reflected in the rising gold prices.”
He adds, “I don’t think we will ever see gold below $1000 again. I think the things that are happening now in the world of gold are changing the future in ways that we might not have guessed a few years ago. “The world of gold is expanding demographically in terms of the number of systems, the types of systems. We have more people with access to gold than ever before, in part thanks to the introduction of new investment vehicles. Exchange-traded funds (ETFs) are one example but if you go from country to country there are vehicles and products that are designed for local markets. In India for example we have little coins that are distributed through the postal service.”
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Bob Chapman: Sovereign Debt Default, Dollar Devaluation, Economic Depression and War!
- In this interview, Bob Chapman of International Forecaster, warns about :
- The coming sovereign debt crisis. As many as 19 countries including the United States are bankrupt.
- There will be an international debt settlement meeting between countries like the Louvres, Plaza and Smithsonian meetings in the past. Countries will resolve their debts with one another. Creditor countries will likely have to take a 66% haircut.
- Countries will then devalue/revalue their currencies against one another. America is likely to devalue the USD by 66%.
- Gold and silver are the only investment asset you should be in. Abandon paper assets like stocks, treasuries…
- Real estate market will not recover for at least 8 years. Southern California is going to become an ‘absolute zoo!’
- Silver is greatly undervalued because of massive manipulation by the gold/silver cartel banksters.
- The Illuminati will most probably lead the country to war to distract the public from the real problems and causes.
- and many more issues…
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Europe’s Banks Brace For UK Debt Crisis!
- Just a matter of time before the PTB trigger their sovereign debt default collapse plan. Things are just being setup ‘properly’ to make sure that the collapse will do the damage they intended. The Telegraph reports:
UniCredit has alerted investors in a client note that Britain is at serious risk of a bond market and sterling debacle and faces even more intractable budget woes than Greece.
The Italian-German group, Europe’s second largest bank, said Britain’s tax structure will make it hard to raise fresh revenue quickly enough to restore confidence in UK public finances.
“I am becoming convinced that Great Britain is the next country that is going to be pummelled by investors,” said Kornelius Purps, Unicredit ‘s fixed income director and a leading analyst in Germany.
Mr Purps said the UK had been cushioned at first by low debt levels but the pace of deterioration has been so extreme that the country can no longer count on market tolerance. “Britain’s AAA-rating is highly at risk. The budget deficit is huge at 13pc of GDP and investors are not happy. The outgoing government is inactive due to the election. There will have to be absolute cuts in public salaries or pay, but nobody is talking about that,” he told The Daily Telegraph.
“Sterling is going to fall further over coming months. I am not expecting a crash of the gilts market but we may see a further rise in spreads of 30 to 50 basis points.” Yields on 10-year gilts have already crept up to 4.14pc, compared to 3.94pc for Italian bonds, 3.48pc for French bonds, and 3.19pc for German Bunds, though part of this reflects worries about higher inflation in Britain.
Ian Stannard, currency strategist at BNP Paribas, said markets are fretting over how the UK will cover its deficit following the pause in quantitative easing by the Bank of England. The Bank has absorbed £200bn of debt, more than total Treasury issuance over the last year. “The UK may have difficulty in attracting extra investors to fill the gap. We think they will have to do more QE as recovery falters,” he said.
BNP Paribas expects sterling to drop to $1.31 against the dollar this year and reach parity against the euro despite troubles in Club Med. “We’re very bearish on the UK,” he said.
….
UniCredit said Greece is better placed than the UK in coming months even if deficits look comparable. “The polls point to a minority government in the UK, while Greece’s government can count on a majority to push austerity measures through parliament. Secondly, the British tax system offers less leverage for a rise in revenue,” he said.
…..
Still, while it is arguable whether a hung Parliament in Britain will lead to policy drift, analysts said Greece was in trouble already. The country was brought to a standstill on Thursday by the second general strike in weeks. Police clashed with rioters , again reducing Athens to a fog of tear gas. Observers said that did not augur well for a nation that has hardly begun its three-year ordeal of draconian cuts.
- See also:
Max Kaiser Details The Banking Cartels Financial Criminality in Pillaging Europe!
Riots in Athens as Thousands Protest Against Cutbacks!
Bill Fleckenstein: Greece And UK Are Suffering A Dire Funding Problem That Is Headed For US Shores!
Fitch Warns Britain and Questions Greek Rescue as Sovereign Risks Grow!
Bob Chapman: The Albatross of Sovereign Debt!
Marc Faber: Forget US Stocks, Buy Gold Every Month ‘Forever’!
Bob Chapman: The World is Heading Towards Many Years of Economic Darkness!
Bill Gross: Markets Will Soon Discover How Sovereign Nations Can Go Bust Just Like Companies!
Greece Now, U.K. Next as Scots Ready for Pound Plunge !
Ron Paul: The US Government’s Debt Can Never Be Repaid!
Bob Chapman: Illuminati Banksters’ Final Moves To Bankrupt The World And Push For World Government!
Dennis Gartman: The Euro Is ‘Doomed’ !
Concerns Grow Over China’s Sale of US Bonds!
Doomsday Is Here For The State Of Illinois!
Ron Paul: Chaos in The Streets and Poverty Coming To the USA!
Charlie Munger: Basically, It’s Over! A Parable About How One Nation Came To Financial Ruin!
On the Brink of a Bond Market Apocalypse!
Ron Paul: We Are On The Brink Of A Financial Cataclysmic Event ! We Will Have A Currency Crisis!
GEAB N°42 : Towards a Global Systemic Crisis of the World Economy!
Britain At Risk Of Worse Deficit Crisis Than Greece!
Charles Ortel: Risks of U.S. Default Are Very Real !
Bill Gross: Avoid UK Debts … It is “Resting On A Bed Of Nitroglycerine”!
Europe’s Exposure To ‘PIGS’ Problem!
Niall Ferguson: A Greek Crisis Is Coming To America!
Think the PIGS Are in Trouble? These 7 U.S. States Could Be Heading for Something Worse!
Spanish Intelligence Probing Debt “Attacks”!
Fears Rise of Euro Government Default !
Greece ‘Dress Rehearsal’ For U.S.!
20 Reasons Global Debt Time Bomb Explodes Soon!
John Mauldin: Greeks Bearing Gifts!
Niall Ferguson: Others Will Follow Greek Debt Tragedy!
Funds Flee Greece as Germany Warns of “Fatal” Eurozone Crisis!
S&P Threatens Japan Downgrade!
Bill Gross: Avoid UK Debts … It is “Resting On A Bed Of Nitroglycerine”!
The Global Debt Bomb!
Godfrey Bloom: End of National Sovereignty & The Beginning of Global Servitude !
Greece Debt Default Could Take Eurozone Down With It !
More and More American States on Budget Brink!
Is The Euro Headed For A Breakup? ECB Prepares Legal Ground For Euro Rupture As Greek Crisis Escalates!
GEAB N°41: The Decade 2010 – 2020, Towards A Knockout Victory By Gold Over The Dollar!
GEAB N°40: Growing Sovereign Debt Default Risk Will Drive Central Banks Toward Gold!
Global Systemic Crisis: In pursuit of the Impossible Economic Recovery !
GEAB: China’s Great Escape from the Dollar Trap !
Eurozone Faces Meltdown Under Sovereign Debt Crisis 2010 !
Marc Faber: We Are Doomed!
Dollar Crisis Looms if US Doesn’t Curb Debt !
Marc Faber: The Next Thing You Need To Worry About Is The PIIGS! Eurozone Sovereign Debt Default Crisis!
A Global Fiasco Is Brewing In Japan!
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Societal and economics observer and commentator with an endtimes, future history perspective. Follow me at Twitter: socioecohistory
