The Global Monetary System Is Crumbling! Gold And Silver Protection From Economic Cancer And Desperation Of QE2!
- A global monetary crisis is on the horizon. It is difficult to prognosticate a schedule. I doubt it is 1-2 years away. It could happen any time, even before the year ends. Jim Willie, once again, gives us critical and insightful analysis.
Gold and Silver Protection From Economic Cancer and Desperation of QE2
History is being made. The American public has never been no nervous, perhaps fearful of something dreadful and imminent. The global monetary system is crumbling. The typical stimulus has failed to jumpstart the USEconomy. The 20 months of near 0% short-term official interest rate has failed to revive the moribund US housing market. The phony FASB accounting rules has failed to accomplish anything except a stay of execution for the big US banks, which do not lend much. In fact, the US banks are largely dead entities showing enough life for to receive USGovt largesse aid. Witness the failure of the US financial sector. Witness the climax chapter of failure for the Fascist Business Model.
…. talk of an Exit Strategy in the last several months was summarily dismissed as nonsense, propaganda, and wishful thinking by the Jackass here on a consistent irrefutable basis. The US Federal Reserve is ready to embark on the second round of Quantitative Easing. The monetization of US$-based bonds of many types will be done on a second initiative, on cue. Here is the irony, the stupidity, the insanity, the recklessness, the tragedy. What failed, they will do again, maybe even bigger! At risk is global confidence and trust, hardly a zero cost item.
The urgency of the QE2 Launch will be made quite clear by the Hologram Leaders occupying positions of power, after they digest the latest housing data. The July existing housing sales fell by 27.2% in a single month. The July new home sales fell by 12.4% in concert. Few analysts operating with USGovt service badges anticipated that the empty-headed home buyer credit of $8000 would rob forward sales and leave an autumn vacuum in home demand. It did. Check out the silver price, which touched $19 today on Wednesday. And at $1240, the gold price is poised to make new highs any day. My near-term targets are $23.5 for silver and $1300 for gold.
The QE2 is pure cancer within the monetary body. Foreign creditors are walking away, making distance from the USTreasurys, and especially the USAgency Mortgage Bonds. The USFed and USDept Treasury are therefore being isolated. Their USTreasury auctions are often disguised failures, but with the benefit of a falling US stock market, the bond demand has risen. The cancer of QE2 cannot be emphasized enough. My forecast a few months ago was for NO Exit Strategy implemented. The USFed balance sheet will NOT be reduced. Interest rates will NOT be permitted higher. My forecast was for an embarrassing About-Face in policy, and a hasty desperate announcement and implementation of a powerful new round of Quantitative Easing. We are seeing it unfold, exactly as forecasted. In fact, my call is for ZIRP and QE, the cancerous twins of Zero Interest Rate Policy and its Printing Pre$$ twin, to become permanent residents of the White House and USFed, an incredible pox, blemish, and badge of shame to the nation. The twins scream rot and ruin.
GOLD & SILVER DIVERGE FROM COMMODITIES
The impact from the cancer and desperation of QE2, the next undermine of the USDollar (and other major currencies), can be seen in the price of Gold. Better yet, watch the price of silver, whose price movement has actually been leading gold upward. This week, for the first time in perhaps a decade, silver defied the industrial metals and economically dependent energy sector. Silver is money. Both copper and crude oil fell in price, but silver rose strongly. By the day’s end, gold was pulled up by silver. And this happened on a week that features options expiration, which usually sees a strong naked short pounce by JPMorgan, of course to make America strong and liberty exportable.
… the gold price has risen from direct demand in response to monetary system risk and lost confidence in that monetary system. The global revolt against the USDollar continues quietly. The government bonds are gradually being considered trash backed by yet more bad paper dispensed by government approved printing houses. My analysis has long pointed to the advantages of silver over gold. Gold fights the political wars, but silver rides in on a shiny white glowing horse to win most gains. The supply factors favor silver. The demand factors favor silver. The shortage is acute for silver.
Again, basic economic thought process not within the mental caverns of US economists. The desperate action to launch QE2 will be quite evident in the coming weeks. It will even become a national priority. The bankers and politicians will rush to destroy whatever credibility remains in the USDollar, or any fiat paper currency. The challenge to banking leaders will be to conceal their desperation and panic. They have had no options or alternatives for almost two years, now painfully evident. The impact of the launch will be extremely damaging to the prestige of the USFed in general and Chairman Bernanke in particular. He has not understood much of any events, surely has proffered a string of errant views and obtuse forecasts. Witness the discredit of the central bank franchise system. Fiat paper money is dissolving before our eyes. Notice the assaults on sovereign debt in Europe, a trend which will hit the US shores, all in time. Economists do not expect it, since the American bankers possess the Printing Pre$$. They will be blindsided by Gold, which pulls the carpet from under the US$-based foundation inside its very structure. The Gold bull market will outlast the USTreasury Bond bubble run. The key word to be heard in the next few months will be CONFIDENCE, as in the absence of it when viewing the US financial helm.
IMMINENT GOLD & SILVER PRICE MOVES
Gold & Silver are entering the most favorable season of the year, autumn. Big gains should be expected. Signals are omnipresent for substantial price gains. Shortages exist and are profound. Demand is on the strong rise on a global basis. Lost confidence and faith in the fiat paper system is slowly vanishing. It would be nice to see the investment community add to positions and put on new positions before the breakout, not afterwards, and be more successful. The return of the USEconomic recession and the simultaneous QE2 Launch will mark a major turning point for gold & silver. Fear is on the rise. The precious metals offer an alternative to conventional nutball strategies, a successful one. Check out the track record for gold, the best asset in the 1990 decade.
…QE2 will be more cancerous than QE1, as full dependence upon monetary inflation will come. The official interest rate cannot be reduced. QE2 will produce three major effects, all ruinous. All debt is subject to coverage by new money, all to be eligible. Next comes hyper-inflation, as confidence in all things paper evaporates and a great tipping point is breached. The arrival of QE2 will produce three major effects. A) The reliance upon new money growth to monetize rapidly growing debt in the US financial system will undermine all things US$-related. The continued artificial support of the USTreasury Bonds will transfer risk to the USDollar. B) Whatever respect and prestige in the USFed will vanish quickly. The bravado of helicopter drops will seen hollow, amateurish, and invite mockery in the open among respected brain trust. C) The smartest people in the room will begin to declare that the current global monetary system is irreparably broken, and that past and future response, even if amplified, will be doomed to fail. We are on the doorstep of hyper-inflation. ….
- This is a no brainer. Yes, most western governments and Japan will default. The path they will take is massive Quantitative Easing ie. printing/electronically creating money out of thin air. This is stealth default but it is still default! Bond holders will be paid with worthless fiat currencies. Got gold yet?
- Practically all these countries debt to GDP ratios are way above 100%. Do not be deceived by their official debt figures which excludes off-balance sheet items, unfunded liabilities, bailouts, GSE liabilities…etc. They have taken Enron ‘accounting’ to another ‘magnificent’ level !
Morgan Stanley Says Government Defaults Inevitable
Investors face defaults on government bonds given the burden of aging populations and the difficulty of increasing tax revenue, according to a Morgan Stanley executive director.
“Governments will impose a loss on some of their stakeholders,” Arnaud Mares in the firm’s London office wrote in a research report today. “The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take.” The sovereign-debt crisis is global “and it is not over,” he wrote.
Rather than miss principal and interest payments, governments may choose a “soft” default in which they pay back debts with devalued currencies resulting from faster inflation or force creditors to take lower returns, Mares said in an interview.
Borrowing costs for so-called peripheral euro-region nations from Greece to Ireland surged today, resuming their ascent on concern that governments won’t be able to cut their budget deficits. Standard & Poor’s lowered Ireland’s credit rating yesterday on the rising cost of supporting nationalized banks.
Population trends may be a better predictor of the ability to meet obligations rather than debt as a percentage of gross domestic product, which doesn’t reflect governments’ available revenue and is “backward-looking,” Mares wrote.
“Outright sovereign default in large advanced economies remains an extremely unlikely outcome, in our view,” the report said. “But current yields and break-even inflation rates provide very little protection against the credible threat of financial oppression in any form it might take.”
Mares, who didn’t identify which nations may default, once worked at the U.K.’s Debt Management Office and is a former senior vice-president at credit-rating company Moody’s Investors Service.
- I have warned repeatedly about the dangers of vaccines, especially the swine flu vaccine. I do not know enough to say that all vaccines are bad. But I have come to the conclusion that I will not be missing anything by foregoing all inoculations. There is a multi decades agenda to use vaccines to cause sickness and even deaths for population control. This is especially the case in third world countries. The people who own Big Pharma and governments are Illuminist snakes.
Finland Suspends Swine Flu Shots After Vaccine Linked With Neurological Disorder
Cases of narcolepsy in children jumped 300 per cent following H1N1 vaccination campaign
Finland’s National Institute for Health and Welfare (THL) has suspended the use of the H1N1 vaccine over fears that the shot is linked with a 300 per cent increase in cases of the neurological disorder narcolepsy among children and young people over the last six months.
The news is sure to discourage more parents from vaccinating their children in the coming months, with the swine flu shot now being combined with the regular seasonal flu jab. A recent Rasmussen poll found that 52 per cent of Americans were concerned about the safety of vaccines as we approach the start of school and college terms, where many children and teenagers will be “required” to take shots before they can attend.
Narcolepsy is a neurological disorder that can be triggered by a virus. “A patient suffering from narcolepsy may suddenly fall asleep, for example, while, speaking or eating without prior warning. Their muscles may also suddenly weaken, causing them to suddenly collapse. There is no known cure for the disease,” reports Finnish news website YLE.
“The National Institute for Health and Welfare (THL) decided on Tuesday to recommend that vaccinations against swine flu with the Pandemix vaccine should be suspended until it is established whether or not the vaccine is the cause of the surge in cases of narcolepsy among children and young people,” reports Finland’s largest newspaper Helsingin Sanomat.
Narcolepsy is a very rare disorder, but 15 new cases of the disease have emerged in young people and children since December in Finland. “There is a clear time correlation between the cases and the swine flu vaccinations,” reports Helsingin Sanomat. An unusually large number of cases of narcolepsy have also emerged in Sweden in the aftermath of the H1N1 vaccination program.
Pekka Puska, director-general of THL, said that the suspension would remain in place until the potential link between the vaccine and cases of narcolepsy could be properly investigated. According to Kari Lankinen, head physician of the Finnish Medicines Agency, doctors were complicit in hiding the link between the swine flu shot and narcolepsy and did so to advance their careers.
“Lankinen suspects that the reason for the silence was the doctors’ concern about their own professional goals – such as getting their articles published in international medical journals. The doctors who made the observations in recent months now work with the National Institute for Health and Welfare (THL),” reports YLE.fi.
In total, around 750 Finns have experienced harmful side effects as a result of taking the H1N1 shot, according to the Helsinki Times. The news of yet more side-effects in the aftermath of the swine flu vaccination campaign should send another warning signal to parents across the world who are planning on having their child inoculated with seasonal flu vaccines this fall.
As we reported earlier this year, Chair of the Council of Europe’s Sub-committee on Health Wolfgang Wodarg’s investigation into the 2009 swine flu outbreak found that the pandemic was a fake hoax manufactured by pharmaceutical companies in league with the WHO to make vast profits while endangering public health.
Wodarg said that governments were “threatened” by special interest groups within the pharmaceutical industry as well as the WHO to buy the vaccines and inject their populations without any reasonable scientific reason for doing so, and yet in countries like Germany and France only around 6 per cent took the vaccine despite enough being available to cover 90 per cent of the population.
Wodarg said there was “no other explanation” for what happened than the fact that the WHO worked in cahoots with the pharmaceutical industry to manufacture the panic in order to generate vast profits, agreeing with host Alex Jones that the entire farce was a hoax.
He also explained how health authorities were “already waiting for something to happen” before the pandemic started and then exploited the virus for their own purposes.
Professor Ulrich Keil, director of the World Health Organization’s Collaborating Centre for Epidemiology, also slammed the swine flu epidemic as an overblown “angst campaign”, devised in conjunction with major drug companies to boost profits for vaccine manufacturers.
As Natural News’ Mike Adams reported, several members of the Emergency Committee expert panel that advised the World Health Organization (WHO) during the swine flu scare were receiving financial support from pharmaceutical manufacturers either during or prior to the epidemic. Both H1N1 and seasonal flu shots have been linked with a number of different side-effects across the globe, including Guillain-Barre Syndrome as well as dystonia, a paralyzing neurological disorder. The seasonal flu vaccine has also been linked with convulsions and fits in under-5’s.
Many batches of the swine flu vaccine included squalene and mercury amongst their ingredients, two substances that have been directly connected with the explosion of autism amongst children as well as other diseases. Individuals within government and the military were privileged to receive additive free shots that did not include these substances. German Chancellor Angela Merkel and government ministers, as well as German soldiers, were amongst those who received access to the so-called “friendly” version of the vaccine.
In order to head off legal claims for side-effects caused by the swine flu vaccination program, the U.S. government provided vaccine makers with blanket legal immunity before the shots began to be dispersed.