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Doug Casey On Why Gold Could Go “Hyperbolic”

Remember the Golden Rule: “He who has the gold Rules!”

  • Doug Casey On Why Gold Could Go “Hyperbolic”
    by https://www.caseyresearch.com/
    …. Doug: Keeping dollars in banks is very dangerous. The whole world is like Cyprus a few years ago. You don’t actually own anything in a bank or broker anymore—your assets are the unsecured liability of an institution that’s likely bankrupt. This is especially true if you have more than $250,000 in any given account, which the FDIC insures. But it’s bankrupt too, with assets that cover like a half percent of their liabilities.

    The problem is systemic risk, and it’s worldwide. It’s like Joe Louis said: you can run but you can’t hide. The only place you can hide today is gold and silver. That, and cheap real estate, if you can find it.

    Justin: 
    Yeah, gold is doing quite well. Its price is up 12% since July.

    What do you attribute this to? Is it because investors are taking shelter? Is it due to the weak dollar? Or is it simply because we’re in the early innings of a new commodity bull market?

    Doug: 
    Well, I think all the indications are aligning at this point. It’s been a rough bear market. As a group, commodities are 50% below their 2011 highs. It’s been a deep bear market as well as a long bear market. As a result, commodities have never been cheaper relative to financial assets like stocks and bonds.


    It’s a great time to be in commodities. And gold is the foremost commodity. It’s historically been used as money. And it will continue to be used as money because none of these governments should, or do, trust each other. Or each other’s phony paper fiat currencies.

    There could be a buying panic in gold and it could go much higher. We’re in a new bull market for gold at this point, but nobody cares. Or even knows that’s true. The same is true for silver. Although, silver is primarily an industrial commodity. It’s the poor man’s gold for many reasons.

    Justin: How much higher could gold head?
    Doug: Well, these things usually move in a hyperbolic curve. They start out slowly. Then, they accelerate. Same type of thing we saw with cryptocurrencies.

    I think gold will do the same, although not to the same extent. My prediction by the end of this year is that gold will hit $2,000. In 2019, $3,000. In 2020, $4,000. By the time this bull market peaks, gold could reach $10,000. But I hate to say things like that…because it sounds so outrageous.

    But look at the number of dollars in existence ($3.635 trillion in the M-1 money). Divide that by the 260 million ounces of gold the U.S. Government is supposed to own, and you get a gold price of $13,982/ounce.

    Look at the number of dollars that are outside the U.S.—$10 trillion, $20 trillion, who knows?—and that liability is growing by $50 billion annually with the balance of trade deficit.

    At $1,300 per ounce, the U.S. gold holdings can’t even cover a year’s deficit. And consider the fact that at some point those dollars will need to be redeemed by something if they’re going to retain any value.

    The price of gold—if gold is going to be fixed to the dollar again, at least for the purpose of trading with foreigners, with foreign governments—is going to have to be much higher than it is today. Of course, I don’t think the dollar should exist, nor should the U.S. government even be in the money business; it just confuses the issue.

    Money is a medium of exchange and a store of value—it shouldn’t also be a political football, and a means for the State to finance itself. Gold itself should be used as money. Remember that the dollar—like the franc, the pound, the mark, and what-have-you—were just names for a specific quantity of gold.

    So a six-to-one shot from here is not at all unreasonable over the next several years. And that would mean very good things for gold stocks.

    read more.

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February 19, 2018 Posted by | Economics | , , , , , , , , | Leave a comment

Charles Hugh Smith: All Currencies Will See Catastrophic Devaluation Against Hard Asset. Financial Markets Definitely Destabilizing

  • Charles Hugh Smith: All Currencies Will See Catastrophic Devaluation Against Hard Asset. Financial Markets Definitely Destabilizing
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)
    Financial writer and book author Charles Hugh Smith has been watching the extreme movements in financial markets closely. Is he nervous?  Smith says, “Oh yeah, it’s definitely destabilizing.  In other words, it’s becoming not just more volatile, the whole underlying structure of our economy is destabilizing.  What I mean by that is it’s becoming more brittle or fragile.  That is fundamentally why we are seeing these wild swings.  People are swinging between . . . keeping the money machine like it is for another nine years, and the other side of the coin says wait a minute, we have already had a weak expansion for nine years.  It’s almost the longest expansion in U.S. history.  A normal business cycle doesn’t run in one direction forever. . . .If you don’t allow your economy to have a business cycle recession, then you are simply making it more fragile by encouraging really marginal and risky investments, and that’s where we are now.”


    One very big problem is a dramatic loss in buying power of the U.S. dollar, but it’s not just the dollar. According to Smith, “All these currencies, there is nothing backing the currencies except the government’s force.  That’s the yen, the euro, the dollar and the Chinese yuan.  They are all going to have a catastrophic drop against real assets because they are all based on too much leverage, too much debt, too much money being pumped into the financial system that ends up in unproductive speculation.  You can’t grow your debt at six times the rate of your economy.  In other words, if you are creating $6, $8 or $10 of debt to eke out $1 of low productivity growth, you are dooming your currency, and all currencies are doing the same thing.  All the currencies are going to take a big drop at some point . . . relative to real stuff.  Real stuff is commodities we need:  water, grains, food, oil, natural gas and, of course, precious metals.  Everybody knows they have been money for 5,000 years, and I personally feel there is a role for crypto currencies.”

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February 19, 2018 Posted by | Economics | , , , , , , , , , , , , , , , , | Leave a comment

The Petro Dollar Is Dead, Dollar Devaluation, Pensions Lost, World Currency — James Rickards

http://www.globalresearch.ca/the-financial-new-world-order-towards-a-global-currency-and-world-government

Click on image for article.

http://americanfreepress.net/?p=1263

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February 16, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , | Leave a comment

John Williams: US Deficit Is Beyond Control. Fed Triggered Stock Sell-Off – Dollar Next

  • John Williams: US Deficit Is Beyond Control. Fed Triggered Stock Sell-Off – Dollar Next
    by Greg Hunter’s USAWatchdog.com 
    In his latest report, economist John Williams asks the question, “Did the Fed trigger the stock sell-off?” Williams answer, “It sure looks that way.  With all the heave selling, the bond yields were rising and investors didn’t like that.  Risings bond yields means someone is selling bonds.  The Fed was not selling bonds, they were not rolling over the bonds they normally wood. . . . There was a big drop in the amount of bonds the Fed was holding in the last week by about $10 billion.  That was the biggest weekly decline since August of 2012. . . . It was enough to put some upside pressure on the interest rates . . . and that was a trigger (for the stock market sell-off).  Normally, you don’t crash from an all-time high, not that it crashed, but you did have pretty heavy selling.  You didn’t see much movement in the dollar.  You didn’t see much movement in gold, and when this market really goes, I think you are going to see the dollar selling off very rapidly and gold being a flight to safe haven.”


    Williams goes on to say, “The Fed caused this latest round of selling because they are reducing their balance sheet. I would say the Fed is in a real awkward position here because the economy is not doing what they are advertising, at least what you are seeing in the headline data.  I think you are going to see a rapid slowdown in the next couple of months.  Then you are going to see the markets say what’s the Fed doing here?  The Fed will have to go back to quantitative easing (QE or money printing).  When you see that again, that should be a heavy sell signal for the dollar.  It will be a flight from the dollar that will spike oil prices and give us an inflation problem.  This will tend to spike gold prices.  As foreign investors flee from the dollar, they will also be fleeing from the stock market and the U.S. bond market.  You will see stock selling and bond selling and then higher yields, and the Fed will be coming in and start buying the bonds again.  I think that is where we are heading.”

    read more.

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February 15, 2018 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Good Guys Are Preparing America For A Major Economic Transition: Bix Weir

February 12, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

Craig Hemke: Gold & Silver Rebound on Sinking Dollar

  • Craig Hemke: Gold & Silver Rebound on Sinking Dollar
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)
    Financial writer and precious metals expert Craig Hemke contends there is no mystery why the dollar is going down in value. Hemke explains, “You’ve got the Fed wanting a lower dollar.You’ve got the President of the United States wanting a lower dollar and, lo and behold, the dollar is going down.  It was a year ago, about this time, when the predominate story was “king dollar.”  The dollar was going to soar and all this kind of jazz.  Last year (2017), it looked like it was breaking out, and it got to 103 (on the USDX).  Instead, it fell by 10% and, so far this year, it’s already down about 3%, and here we are just in early February.  It’s not straight down.  It’s probably not going to plunge in 2018 as fast as it rose in 2014, but anyone can take a look at a chart and see it’s going down.  This has significant implications for this year and going into next year.  If it was disinflation on the way up, it will be inflation on the way down.”Hemke thinks commodities are undervalued and cheap relative to stocks, which just had the biggest one day sell-off in years. Hemke contends, “$15 trillion worth of QE has been applied, $15 trillion worth of currency created in the last 8 years. . . . So, there are trillions and trillions of dollars that are sloshing around the planet, and when they all head in one direction, you get things like Bitcoin.  If all of this money starts to head into commodities due to a falling dollar and recognition of inflation, commodities are going up, as is crude, as is silver.  I think it would be wise of people to position themselves ahead of it. . . . The commodities sector will rebound on the sinking dollar.”

    Hemke says the dollar is not just facing technical forces of devaluation, but it also faces some political risk. The dollar is basically a confidence game, and if people lose confidence in the U.S., the dollar can take a sharp beating.  Hemke says, “This is something we are going to be talking about all year.  I call it the three major themes for 2018. . . . Political risk. . . . Geopolitical risk . . . and de-dollarization.  You can see how these pieces fit together. . . . This could get more disorderly than it was in 2008. . . . The point of this forecast is not to sit here and say gold is going back to $1,900 (per ounce) by this time next year and then going to $5,000.  What I am trying to say is people need to recognize an opportunity when it presents itself.    We have had to sit and put up with this garbage for the last five years with prices getting continually pounded, rallying and then getting beaten back.  Now, you can see on the chart, and not just gold, it’s silver, it’s crude oil, it’s copper and all these other commodities . . . There is an opportunity here for people who want to take advantage of it.”
http://www.wnd.com/2008/03/59405/

Click on image for article.

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February 5, 2018 Posted by | Economics | , , , , , , , , , , , , , , , | Leave a comment

Gold Price Could Smash $10,000 on Crashing Dollar & Other Factors – Jim Rickards

© Reuters

  • Gold Price Could Smash $10,000 on Crashing Dollar & Other Factors – Jim Rickards
    by https://www.rt.com/
    A weak US dollar, a possible war between the US and North Korea or the impeachment of Donald Trump could result in one of the longest-ever rallies for gold, according to precious metals expert Jim Rickards.

    This is gold’s breakout year. We are in the third bull market of my lifetime – and we have a very long way to run,” Rickards said in an interview to Kitco News. The reasons for the forecast gold rally are a possible plunge in the dollar, a US war with North Korea, a trade war with China and President Trump’s impeachment, he said.

    These events could push gold prices to $10,000, Rickards said. Gold prices have slumped in recent days after reaching more than a year high of $1,370 last week. On Monday, the commodity was trading at $1,347. However, a surge may be accompanied by a rise in commodities prices.

    “All gold does is it preserves your purchasing power. But, if gold is $5,000, then oil is probably $400, and everything is double or triple, you’re not really ahead of the game,”
     Rickards said.


    The last week’s increase was linked to a statement by US Treasury Secretary Steven Mnuchin, who said on two consecutive days that the US administration favors a weak dollar in trade. The dollar sank to a three-year low on his remarks.

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January 30, 2018 Posted by | Economics | , , , | Leave a comment

Peter Schiff: In The Impending Collapse “Everything That Can Go Wrong, Will”

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January 18, 2018 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

Paul Craig Roberts: Markets Fall When Dollar Falls. Looming Catastrophe Hanging Over Our Heads

  • Paul Craig Roberts: Markets Fall When Dollar Falls. Looming Catastrophe Hanging Over Our Heads
    by Greg Hunter’s USAWatchdog.com
    Former Assistant Treasury Secretary in the Reagan Administration, Dr. Paul Craig Roberts, says the record highs you see in the stock markets are based on “phony profits” that come from global central banks “propping up” the financial system. Roberts says, “Any of these central banks are really only there for a handful of big banks. That’s all they are concerned with. All the Federal Reserve has been concerned with for the last decade is the welfare of a handful of mega banks. Of course, the banks are too large. They should have never been allowed to get that large. When you have a bank too big to fail, then your policy has failed. You’ve allowed too much concentration. Where is anti-trust? Where is the Sherman Act? Everything that was legislated in the past to prevent the kind of looming catastrophe that is hanging over our heads, this looming catastrophe is produced by central banks. They are perpetuating it because they don’t know how to get out of it.”


    The International Monetary Fund (IMF) has just warned on the profitability of nine huge global banks. Some say they equal nine possible Lehman Brothers, which was the financial institution that started the 2008 meltdown. Is the IMF terrified of the slightest correction in the markets? Dr. Roberts says, “I think so, yes, because it’s not based on reality. It’s based on massive liquidity. So, it’s full of all kinds of dangers.”

    The biggest danger to Dr. Roberts, who has a PhD in economics, is the U.S. dollar. Dr. Roberts contends, “It seems to me that the only thing that would cause the Federal Reserve to stop the liquidity would be if the U.S. dollar fell under attack. If for some reason people said, hey, we don’t want the dollar anymore, and they started moving out of dollars into other currencies or into something else, if they cease to hold assets in dollars, if that happened, the Fed would have to try to raise interest rates to support the dollar. Then you could see that everything could come apart. If the interest rates would go up, there would be all kinds of derivatives that would not be sustainable. The stock market would collapse. It would be a mess. It would be an utter mess. That’s what the IMF is worried about. It’s a messy situation. How do you get out of it?”

    How does Dr. Roberts say people should protect themselves? Dr. Roberts says, “I would not be in debt.”

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October 19, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , | Comments Off on Paul Craig Roberts: Markets Fall When Dollar Falls. Looming Catastrophe Hanging Over Our Heads

Buried In The Fed’s Report It Reveals The Truth About The Economy: Charles Hugh Smith

October 10, 2017 Posted by | Economics | , , , , , , , , , , , , | Comments Off on Buried In The Fed’s Report It Reveals The Truth About The Economy: Charles Hugh Smith

SDR: The New Global Currency

9 Jan 1988 cover, The Economist: Get Ready for a World Currency by 2018! The Rise of the Phoenix world currency from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. “Phoenix” is of course an occult metaphor. Out of the destruction, the ashes of the old world order, the Luciferian New World Order will rise like a Phoenix!

  • SDR: The New Global Currency
    by Chris at www.CapitalistExploits.at, via http://www.zerohedge.com/
    Bollocks!
    Hi there,

    I’ve been hearing a lot from private bankers lately (they’re always trying to flog you product), though the topic being discussed amongst themselves is that of the SDR going mainstream, and they’ve been asking my opinion. We don’t have to look far to understand why.

    End of the US Dollar Rally says HSBC’s Bloom, Cuts Forecasts for USD

    Global Players Circumventing the Dollar
    Fuelling this narrative has been talk about those sneaky Chinese and their moves to disintermediate the dollar through the development of gold contracts and oil traded in yuan.

    All of this appears to be painting a particularly nasty picture for the greenback, and the bears, as we can see, are all in and betting on black. This is the backdrop to the discussions those private bankers are having around the SDR. After all, if one hegemonic currency is to go away, it surely can’t do so without another replacing it.

    Enter the SDR.
    Let’s briefly define what an SDR exactly is so we know what we’re talking about. Think of it as an ETF of international currencies which adjusts its weighting according to the prominence of currencies in terms of international trade and FX reserves. It’s currently made up of the following five currencies: USD 41.73%, EUR 30.93%, RMB 10.92%, JPY 8.33%, and GBP 8.09%.

    It is the brainchild of the IMF, an organisation that should be taken outside and shot. No trial, no last meal, and no flowers, please. The ideas coming out of this creature pretty much guarantees they should be avoided like a bubonic rat.

    And speaking of the IMF, we have the head, one Christine “I’m a wretched old goat” Lagarde riding the coattails of the crypto currency boom.

    read more.
http://www.globalresearch.ca/the-financial-new-world-order-towards-a-global-currency-and-world-government

Click on image for article.

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October 10, 2017 Posted by | Economics, GeoPolitics | , , , , , , | Comments Off on SDR: The New Global Currency

The Economic Reset Has Been Planned By The Central Banks & Is Happening Right Now: Lynette Zang

  • Lynette Zang: The US Dollar is Finished BUT They Will Suppress Gold Until Otherwise
    by http://www.silverdoctors.com/
    “Otherwise” is when the central banks make their move. Lynette says the central bankers are letting everybody get comfortable with crypto, but what happens after that is terrible news for anybody who is not prepared for it…

    Lynette Zang interviewed on X22 Report:
    The conversation starts off with a discussion of the stock market in general. Just the tiniest decline of a few percent would cause complete insolvency by in many of the large banks, Lynette says.

    The conversation then shifts to what Lynette calls “the primary currency metal”, gold. Central banks hold gold, and Lynette points out what would happen if and when the central banks reset their currencies to gold.

    The discussion then turns to cryptocurrency and the role it will play in the central bank plan to reset the economy. For now, the central banks are getting everybody comfortable in the crypto piece, but there will come a time when the central banks take over crypto, Lynette says. Other topics include:

    * Central banking
    * Economic collapse
    * The bond and real estate markets
    * Oil-for-Gold move away from the US dollar
    * U.S. entitlement spending

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September 28, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , | Comments Off on The Economic Reset Has Been Planned By The Central Banks & Is Happening Right Now: Lynette Zang

Gregory Mannarino: Fed Going to Kill Dollar – Will Be Forced To Print Money

  • Gregory Mannarino: Fed Going to Kill Dollar – Will Be Forced To Print Money
    by Greg Hunter’s USAWatchdog.com  (Early Sunday Release)
    Trader/analyst Gregory Mannarino says Fed Head Janet Yellen “lied” when she spoke last week about the “mystery” of not hitting the Fed’s inflation targets. Mannarino explains, “It’s no mystery.  You have to choke or laugh or barf when you hear her say something like that, and no one checks her on that.  It’s an absolute lie, an incredible lie . . . the economy is dead in the water.  It’s Economics 101.  That’s why she can’t create inflation.  It’s no mystery.  The cash isn’t moving.  The cash is not moving because the economy is going nowhere.  She can perpetuate the lie because she has managed to inflate the stock market.  The average person looks at the stock market and says the stock market is going up.  So, that means our economy is doing well.  It’s an incredible thing, but it’s just not the truth.  This is how they can twist people’s minds.  By keeping the market elevated, it is an illusion.  The illusion becomes real to the uninformed.”

    Mannarino says rates are going higher, and that will be bad for house prices. Mannarino explains, “If Yellen is successful and the yield curve starts to normalize, because right now it’s flat, that would put pressure on housing, and cash would come out of housing.  You would lose the wealth effect.  You can get a selloff in bonds, a selloff in the stock market, and this could turn into something very, very ugly, which it’s going to do one way or the other.  Again, if Janet Yellen is successful, the cost of money or the cost of cash will rise.  What does that mean?  That means the dollar, theoretically, should get stronger.  Multinational companies’ earnings are going to suffer.  That will put more pressure on the stock market. . . . It’s kind of unusual that the Fed is choosing right now to normalize their balance sheet.  The Fed is talking about getting rid of those mortgage-backed securities right now at the top of a housing market bubble.  They know it’s a bubble, and they re-inflated that bubble on purpose.”

    read more.

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September 25, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , | Comments Off on Gregory Mannarino: Fed Going to Kill Dollar – Will Be Forced To Print Money

China Dollar Dump Means Hyperinflation – Chris Martenson

  • China Dollar Dump Means Hyperinflation – Chris Martenson
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)
    Resource analyst and futurist Chris Martenson says everyone should be taking notice of our “dangerous markets.” At the center of the danger zone is the declining U.S. dollar.  Martenson explains, “We are talking about a steady erosion of the dollar as a reserve currency.  I think that is most likely.  The only thing that could make that really go fast is some kind of war.  The United States and China, we got to keep our eye on this because Trump has been threatening a trade war with China.  China responded and said if you do that, we may dump the dollar. . . . So, there is all this trade and financial back and forth and maybe even actual war at some point. . . . China has the ability to really impact the dollar in a big way on the world stage.  We better hope it does not come to that because a slow erosion we can adjust to; a quick erosion is going to really roil the markets and maybe blow a few of them up.”

    Martenson contends the U.S. could see hyperinflation in a short time if China “dumps the dollar.” Martenson explains, “The way that works is let’s say they want to unload $500 billion on some Tuesday morning.  Who is going to buy that $500 billion?  Who is on the other side of that trade?  Well, if there are not enough people bidding for those dollars, the price has to fall until you find enough people to absorb those, and the dollar would fall in value against all other sorts of other things such as other currencies, oil, gold, silver and all those things. . . . We would be looking for a paired event.  What we would be looking for is interest rates starting to rise on Treasuries and the dollar starting to fall in value in value against a variety of things.  Once we see those two things, we know we have a financial war or a monetary war. . . . That’s what blows up the derivatives market.  That’s what makes difficulties for traders.  That’s what makes the high frequency computers say I don’t like this and bolt and instantly evaporate from the markets.”

    read more.

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September 18, 2017 Posted by | Economics | , , , , , , , , , , , , , , | Comments Off on China Dollar Dump Means Hyperinflation – Chris Martenson

Dollar Decline, the Rise of China’s Gold Yuan + 5 Levels of Preparedness | Jerry Robinson

  • CRITICAL PREPARATIONS for Rise of Gold-Backed Chinese Yuan and Fall of US Dollar
    by http://www.silverdoctors.com/
    Jerry Robinson shares critical areas of preparedness that all Americans should engage in right now as the world ditches the US dollar. Sure, there may be plenty of toilet paper available, but from the most basic preps to financial readiness, Jerry has it covered…

    Jerry Robinson interviewed on Reluctant Preppers
    The subject of much resistance, even in the alternative media, the upcoming global embracing of the Chinese yuan-traded oil contract, convertible to gold on the Chinese gold exchanges, will have serious implications for people holding and using the US dollar.

    As Western and Eastern United States find out, some the hard way, that the only real time to prepare is before disaster strikes, the coming dollar collapse will have deep and lasting effects on everybody. It will be a financial disaster like no other.

    In this robust interview, Jerry and Dunagun discuss what actions every person should take right now to prepare for the inevitable. It may seem like there is still time, until all of the sudden there isn’t.

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September 13, 2017 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , | Comments Off on Dollar Decline, the Rise of China’s Gold Yuan + 5 Levels of Preparedness | Jerry Robinson