- 2011 looks like the year when the global economic, financial and monetary crisis will come about! This is an engineered calamity. The Illuminists want a Luciferian New World Order, World Government, Supra-National Global Central Bank (likely to be the IMF) and One World Currency. They know that the USD has just about run its course. They will take it down to collapse America and remake it into their New World Order, the Mystery Babylon Whore of Revelation 17.
- A global currency crisis is a certainty. With it, all major currencies: USD, EUD, JPY, UKP… will collapse. After which, the Illuminist will use this crisis to introduce their pre-planned One World Currency solution. Those countries which refuse to accept this new currency and financial hegemony will have their asses kicked ie: War! My advice to all is the same: Got GOLD yet??
- Egon Von Greyerz in his own lucid way is painting the hyper-inflation (ie currency crisis/debasement) that is coming!
Hyperinflation will drive gold to unthinkable heights
We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments. Thus most of these assets are also worth-less.
So the world financial system is a house of cards where each instrument’s false value is artificially supported by another instrument’s false value. The fuse of the world financial market time bomb has been lit. There is no longer a question of IF it will happen but only WHEN and HOW. The world lives in blissful ignorance of this. Stockmarkets remain strong and investors worldwide have piled into government bonds in a perceived flight to safety. Due to a century of money creation (and in particular since the 1970s) by governments and by the fractal banking system, investors believe that stocks, bonds and property can only go up. Understanding risk and sound investment principles has not been necessary in these casino markets with guaranteed payouts for anyone who plays the game. Maximum leverage and derivatives have in the last 10-15 years driven markets to unfathomable risk levels, with massive rewards for the participants.
In the meantime central banks are cranking up the printing presses but as Bernanke recently said quantitative easing is an “inappropriate” description of what should be called “securities purchases”! Who is he kidding? What the Fed is buying has nothing to do with “securities”. There is no security whatsoever in the rubbish the Fed is purchasing. They are buying worthless pieces of paper with worthless pieces of paper. This is the Ponzi scheme of all Ponzi schemes.
Let us be very clear, this financial Shangri-La is now coming to an end. The financial system is broke, many western sovereign states are bankrupt and governments will continue to apply the only remedy they know which is issuing debt that will never ever be repaid with normal money. So why does the world still believe that the financial system is sound?
- Firstly, because this is what totally clueless governments are telling everyone and this is what investors want to hear.
- Secondly, whether governments apply austerity like in parts of Europe or money printing as in the US, investors want to believe that any action by government is good, however inept.
- Thirdly, market participants are in a state of false security due to shortsightedness and limited understanding of history.
- Fourthly, as long as they can benefit from inflated and false asset values, the market participants will continue to manipulate markets.
- Fifthly, there has been a very skilful campaign by the US to divert the attention from their bankrupt economy and banks `to small European countries like Greece, Ireland or Portugal. These nations, albeit in real trouble, have problems which are miniscule compared to the combined difficulties of the US Federal Government, states, cities and municipalities.
Euro zone members can’t print money. Many EU countries are downgraded by US rating agencies which don’t dare to touch the US rating. The AAA rating of the US is an absolute sham and totally politically motivated. True to form, rating agencies will only downgrade debt once it has become worthless but never before.
The result of massive money printing is a collapsing currency, leading to escalating prices and eventually hyperinflation. This is in simple terms how every hyperinflationary period in history has happened. If in addition, there are world shortages of food, energy and other commodities, this will accelerate the process. There are currently a number of indicators all pointing to escalating money printing and an imminent start of a hyperinflationary era. Here are some of them:
1. Fiscal Gap widening at alarming rates in many major economies.
2. Commodity prices at all-time highs.
3. Long term interest rates rising.
4. Most Currencies falling.
5. Precious Metals at all-time highs against most currencies.
Tax receipts are collapsing and government expenditure soaring in many major economies including virtually all southern European countries as well as in the UK. James Turk has produced on his fgmr.com site two excellent graphs for the USA and the UK showing the extreme severity of these two countries’ deficits.
…. to continue reading click here!
- You cannot solve a debt problem with more debts(bailouts)! All it does is postponed the day of reckoning. Nothing has been resolved. Debts have not been paid down. In fact, debts have accumulated because the mechanism is to re-finance the debts and not to pay it down. Europe undoubtedly will face a crisis in 2011. The denials by the Spanish and Portuguese politicians are nonsense. They know it is coming.
- The financial MSM is hyping up the problems of Europe and keeping mostly quiet on the even more grotesque situation of America. America will be the final detonation in this global debt bomb that will trigger a global economic, financial and monetary crisis!
European debt markets ‘face second credit crisis’
European debt markets could be hit by a second credit crisis within months as fears grow over the huge volume of new bonds that must be sold by governments and banks in 2011.
Banks alone must refinance about €400bn (£343bn) of debt in the first half of the year, but add in the more than €500bn European governments must replace over the same period, as well as further hundreds of billions of euros of mortgage-backed debt maturing and there is the potential for chaos in the credit markets. “What we are looking at here clearly has the potential to become a second credit crunch. However, this time it would be much worse than before,” said Celestino Amore, founder of IlliquidX, which specialises in trading hard-to-price debt.
“Governments have been able to slow down the process, but the problems did not go away. There remains trillions of dollars of debt that must be refinanced or sold.” Mr Amore predicts a rush to sell assets, much like that which kicked off the first credit crunch in the summer of 2007. However, many fund managers and other large institutional investors are looking to reduce their exposure to bonds, leading to warnings that there will not be enough demand to buy all the debt banks and governments will need to sell.
Last week the Centre for Economic and Business Research said a new eurozone crisis was its top prediction for 2011, pointing out that Spain and Italy alone must refinance more than €400m of bonds in the spring.
Several banks are already understood to have created what one debt market banker described as “get ugly early strategies” in the hope they will be able to help their clients sell their bonds. “I think you’re going to see everyone rush to sell bonds very early in January, because no one wants to take the chance of missing whatever funding window is available,” said the banker.
The chief executive of one major UK retail bank told The Sunday Telegraph that he thought things could get “sticky” in the first half and that his bank was accelerating its issuance plans. The European Central Bank warned in its latest financial stability review published last month of a risk of “increasing competition for funding”. In particular, the ECB gave warning of the continued uncertain macroeconomic outlook and market concerns over the financial position of some peripheral eurozone countries.
The Bank of England has also issued similar warnings and last month said that UK and European banks remained vulnerable to “strains in funding markets”. “This reflects their continued dependence on short-term domestic and foreign currency wholesale funding and the challenge of refinancing or replacing substantial amounts of term loans and public sector support by the end of 2012,” said the Bank in its latest financial stability report.
Credit Suisse analysts have pointed out that the funding position of European banks deteriorated in the second half of last year, putting more pressure on banks to sell even more bonds in the first half of 2011 if their funding is not to get “more stretched”.
Credit Suisse added that funding was likely to be increasingly expensive for most banks, presenting problems in particular for large retail banks that were unable quickly to change the pricing of their products to reflect their higher funding costs.
- This just came out in the Russian news site: The Voice of Russia, needs confirmation. It does not surprise me that Iran is ditching the USD. For India to do so takes quite a bit of gumption. Behind the scenes many countries are preparing for a non USD world. Non would like to publicly ditch the USD as it means retaliation by the Anglo-American western hegemony.
- No smoke without fire, I suppose. This is yet another sign the USD is going the way of the DoDo bird ! The collapse of the petrodollar system means the end of the US treasury market and also the end of the USD as world reserve currency.
India to drop US buck in Iran oil dealing
India may drop the US dollar as payment for oil from Iran. The replacement would be the Japanese yen and the Emirates dirham. According to London’s Asharq Al-Awsat, the switch could help India avoid American retaliation for dealing with the Iranians. Iran is under international sanctions for refusing to come clean on the nature of its nuclear energy programme. The United States has unilaterally imposed some extra sanctions.