- It pays to listen to the wise old man of investing: Richard Russell. Gold is going to at least US$10,000/oz IMO. Helicopter Ben Bernanke will not stop creating massive amounts of funny money via QE. If QE 2.0 doesn’t work it will be an even bigger QE 3.0: US$5T? $10T? The smart money is fleeing fiat currencies into hard assets: commodities and precious metals. KingworldNews.com :
Richard Russell – Wild Speculation in Gold Lies Ahead
“I learned from George Schaefer that big bull markets almost always end with a speculative explosion. …. Today I am taking the same stand regarding the gold bull market. The gold bull market will not end with a fizzle and a whimper. It will end with intense speculation and widespread interest from the funds and the public. We haven’t seen that kind of activity yet, but I’m convinced that a period of wild speculation in gold lies somewhere ahead.”
“This is why I continue to beg my subscribers to load up with gold. As I see it, we are nearing a period of intense speculation that will be beyond anything seen before by the last three generations of Americans. Ironically, more money (will be) made in the final explosion in gold than was made during the first two phases combined.”
“Great bull market are seen maybe once or twice in a lifetime. The current “stealth” gold bull market has sneaked up on most Americans. The very phrase, “gold bull market” is sneered at by most analysts today. In fact, most of the comments on gold today come in the form of warnings; “Gold is too high.” “Gold is in a bubble.” “Gold will sink back below 1000.” “Gold is a fool’s play.”
“Nonsense. Gold is moving ever-closer to it’s climactic speculative third phase. The negative comments about gold will only serve to make the gold bull market that much stronger. In this business, there is nothing more powerful than a primary bull market that has been denigrated, spat at, and held back for years.”
- The FedRes is going bonkers. Helicopter Ben Bernanke is talking about stimulating inflation. His idea of economic growth is stimulating inflation. This is BS madness. How can America grow when everyone is max out in debts? How can there be growth when real U6 unemployment is closer to 22%. How can there be growth when 41.x million Americans are on food stamps? His solution is to stimulate inflation?
- This is economic nonsense of the ruling elite. The basic tenet is an economy grows because of spending. As long as they can get consumers to borrow and spend again, the economy will grow. Yeah right. 30+ years of borrowing and spending for many unnecessary crap led to excesses throughout the world. In particular excess production capacities. America needs to work its way out of debts, build savings and thus investments. There is no easy way out of this collapse.
- By embarking on QE 2.0 soon (3 November) Bernanke will create uncontrollable inflation –>hyperinflation and thus the destruction of the USD. Does anyone really believe that QE will work? Thus, his real intention is to destroy the USD and hyperinflate away all the debts and losses of Illuminist banksters.
- Massive QE will result in an all out financial war against the world. It will cause huge volatility in the forex market, interest rates and capital markets. It will inflate asset prices and then collapse prices when the money is withdrawn. What better way to destroy this current world order and lay the foundation for their New World Luciferian Order?
Another Perfect Storm Brewing for Markets and the Economy
A few major factors/events have conspired recently to meet up at a singular point in time.
1. Either QE2 disappointment or death of USD
It’s been a textbook case of “bad news is good news” in the past few weeks, entirely driven by QE2 expectations. The expectations are so high that inflation is finally being priced in (see 30-yr bonds, commodities, and gold), and Bernanke would have to do it even if he had a change of religion tonight, or else. The only question is when and how much. While I don’t know the answer, I’m sure it lies somewhere between a dog and a fire hydrant. If QE2 is not big enough to cause another 10% drop in the dollar index, it’ll snap back 10% along with equities/gold/commodities crashing through a significant correction. If it is big enough to meet the markets’ insane expectations, it will most likely kick the currency war into full speed and start the sequence that leads to the dollar’s death as the international reserve currency.
Of course, theoretically it’s possible to stand a pencil on its point. I just don’t think it’s financially wise to bet on it. Funny thing is, despite the overwhelming cry for QE2 and the markets’ seeming enthusiasm, few expect it to produce meaningful real growth. In other words, the Sept rally in equities has been driven by depreciating dollar and expectation of inflation, not necessarily growth. This is truly a nightmare scenario.
2. Currency war
In the race to the bottom of competitive currency devaluation, Japan has been elbowed to the back and Fed has been the hands-down winner, so far. But all major players are close to the edge, even the usually quiet and conformal (well in terms of economic/monetary policy) Brazil. QE2, even if not big enough to kill the dollar by itself, may be the brilliant spark of inspiration in the powder keg. The ensuing currency war, trade war, and all kinds of political circus will surely be comical, to future generations who don’t have to live through it.
- The western world is nowhere near recovery. Only Asia and the BRIC countries can be said to be doing alright. However, this coming financial collapse will not just be limited to the western world. The entire world will go down with the west.
- Nothing has been resolved since 2008 collapse. The can has been kicked down the road but we still have to pay the piper. All the global banks are essentially bankrupt. To rescue their buddies, the privately owned Illuminist central banking cartel will indulge in massive QE 2.0. This will inflate away all their debts and losses. All major currencies: USD, Euro, UKP, JPY… will be destroyed in this coming monetary holocaust. The rest of the world’s fiat currencies will suffer the same fate. They are all funny ‘Monopoly’ money backed by nothing! Got Gold yet?
‘We’re at risk of financial collapse': Ken Clarke’s warning for Western economies
The West is in ‘grave danger of financial collapse’, Kenneth Clarke warned last night. We face ‘quite the most dramatic’ spending cuts in ‘living memory’, the former chancellor added as the Coalition prepares to unveil plans to rein in the unprecedented budget deficit left by Labour. ‘I actually am one of those who believes, with a grave danger of financial collapse, we’re not out of the woods in the Western world yet,’ he said in the extraordinary address. ‘There is an extremely serious financial crisis.’
His remarks appeared to contradict the Prime Minister, who insisted days ago that the Coalition’s early decisions have put Britain ‘out of the danger zone’. Mr Clarke said the UK had ‘rescued ourselves at the moment’, but added: ‘If we fail to deliver with the [cuts] programme we’re going to set out, we’ll be back there all too soon.’ Speaking ahead of next week’s comprehensive spending review, which will see most Government departments’ budgets cut by 25 per cent over four years, the Justice Secretary said: ‘These are difficult circumstances.’ In unscripted remarks to a conference of prison governors, Mr Clarke said the review would be ‘quite the most dramatic in living memory’.
But Mr Clarke insisted: ‘There’s no one alive who remembers a crisis of this kind. It is not the usual public spending squeeze.’ Blaming the last government for the financial crisis, he added that he had never ‘hidden my disapproval of a state that spends the equivalent of half of the GDP’. ‘The current levels of spending are simply unsustainable and it would be irresponsible for the Government not to get to grips with it,’ he added.