Socio-Economics History Blog

Socio-Economics & History Commentary

Rick Rule: US Will Devalue Debt and Devalue Dollar. Banks Not Going Broke, They Are Broke!

  • Rick Rule: US Will Devalue Debt and Devalue Dollar. Banks Not Going Broke, They Are Broke!
    by Greg Hunter’s USAWatchdog.com
    Rick Rule is an expert on investing in all sorts of natural resources, and that includes gold and silver. He thinks it won’t take a “catastrophic event” to move prices higher in precious metals.  Rule explains, “You remember the decade of the 1970’s?  The shocks to the financial system were severe but survivable.  The gold price went from $35 per ounce to $850 per ounce.. . . As you can see, I am not a young guy.  I was a finance major, and the way I learned accounting, it’s not like the banks are going to go broke, the banks are broke. . . . It isn’t a question of ongoing bank solvency.  It’s a question of real bank solvency and how long people will believe in the system. . . . If the major players had to face a liquidity squeeze, even the level of magnitude they faced in 2008, I suspect the fiscal tools available are constrained enough now that they would be unsuccessful in containing a broad liquidity base contagion.”


    So, we would see bankruptcies and failures, and the Fed would have to let things go. Rule contends, “I don’t think they would have any other choice but to let them go.  My suspicion is we are going to skate through this without a catastrophic situation.  I could be right and I could be wrong, but I think in terms of the gold price, it doesn’t matter.  If the system is tested, tested and not wrecked, it will be extraordinary for the gold price.  What people fail to recognize is the simple arithmetic that you and I owe each other, and other countries, $20 trillion.  That’s $20 trillion in liabilities.  That’s 20 with twelve zeros.  People don’t focus on it because it’s almost an incomprehensible number.  Beyond that, we owe each other in the context of promises in excess of $100 trillion.  That number doesn’t come from a cranky old guy at Sprott.  It comes from the Congressional Budget Office.  How on earth are we going to resolve $120 trillion on balance sheet and off balance sheet liabilities before we consider state and local debt and underfunded pensions?  My suspicion is we get out of this in one of two kinds of defaults.  A formal default where . . . they say to 64 year old Rick Rule that we made you promises on Social Security, Medicare and Medicaid, but we lied.  We say to holders of U.S. debt where we gave a full faith and credit promise that we lied.  Those are official defaults.  That requires telling the truth, and I think that is unlikely.  I think we will have a series of unofficial defaults where we devalue the net present value of the obligations, which is a different way of saying we devalue the . . . currency, gradually like we did in the 1970’s.  I think that will have the same impact on gold and silver prices.”

    On the best thing President-elect Trump can do for America, Rule contends, “If Mr. Trump can roll back restrictive regulation in the United States, we are our own greatest enemy. If he can make the United States great again in the sense he keeps us from competing with ourselves, then we will see a spectacular economic boom in this country.”

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January 12, 2017 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

Our Standard Of Living Is Coming To An End, Expect A 30-50% Drop: Bill Holter

January 3, 2017 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Yuan Dumps, Bitcoin Jumps As China Researchers Suggest “One-Off Devaluation” & Capital Controls

bitcoin-usdcny-20170101

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January 3, 2017 Posted by | Economics | , , | Leave a comment

2017 Predictions on Trump, Gold, Silver, Housing, Stocks, Bonds & Antarctica: Clif High

  • 2017 Predictions on Trump, Gold, Silver, Housing, Stocks, Bonds & Antarctica: Clif High 
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)
    Internet data mining expert Clif High says forget about the rumors and predictions of Donald Trump being blocked from taking office. High says Trump will be sworn in as the 45th President and explains, “I don’t have any data that says, hard stop, Trump is assassinated.  I don’t have that . . . . I am willing to back my data with real money, an ounce of silver, and I have an ounce of silver, and I would be willing to bet the inauguration part goes through smoothly given the emotional data sets we have now.”

    High, who calls what he does “Predictive Linguistics,” mines the internet and collects billions of data points to produce forecasts of the future.  On the financial markets, High simply says, “We’re screwed. . . . The equity markets in our data sets are highly manipulated.  So, if you ask will there be a crash?  I say there already is a crash.  Everybody that is not part of the financial system at the top end is currently living in a depression, and the media does not acknowledge this.”

    On the U.S. dollar and its purchasing power, High predicts, “The purchasing power is going to be eroded away fairly quickly. I suspect the erosion (of the U.S. dollar) is going to start in March or so. . . . The turning point for the Trump euphoria will hit at the end of February and carry on through March and April.  There will probably be people that will define this as a crash. . . . In our data sets, around March and April, the erosion of the dollar continues . . . The Fed, in a laggardly way, starts to chase interest rates. . . . We may jump to 9% or 10% interest rates as quickly as March or April.”

    On Real Estate prices, High’s data tells him the entire market will eventually “fall by 90%.” High explains, “The language is about the high end crashing first, and then, it meets the middle tier, and then they crash to meet the lower tier.  So, it’s not going to be the high end coming down and then stabilizing.  We are seeing a generalized property price crash that is really just going to coincide with the inability of the banks to circulate enough money and create enough debt to blow the balloon up again.  Real estate will drop for what I am calling a credit freeze for lack of a better word.”

    On Gold and Silver and Bitcoin, High says they will start moving up at the beginning of the New Year, and Obama will see the beginnings of a market crash before he leaves office. High contends, “Our data sets show that there is a lot of upward pressure on Gold and Silver and Bitcoin as the currencies go into a crisis mode. That basically is already happening.”

    High’s data is pointing to Silver and Gold prices starting to takeoff in early 2017. High says data is showing a possible “$600 per ounce price for Silver” at some point.  High says before that happens, he sees “$125 per ounce” price for Silver on up to “$345 per ounce.”  High’s data also repeatedly says the “gold price per ounce will eventually be equal to the Dow.”

    read more.

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January 2, 2017 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , | 1 Comment

With China Facing Currency, Liquidity Crises, Ex-PBOC Official Urges Use Of “Nuclear Option”

china_fx_pressure_in_jan2017

  • With China Facing Currency, Liquidity Crises, Ex-PBOC Official Urges Use Of “Nuclear Option” 
    by Tyler Durden, http://www.zerohedge.com
    With the PBOC fighting tooth and nail to slow outbound capital flight, which according to Goldman has reached $1.1 trillion since August 2015, and which these days mostly means keeping the Yuan from depreciating to new all time lows below 7 Yuan to the Dollar, the Chinese central bank may have its work cut out for it in the immediate future. The reason is that, as Bloomberg reminds us, the first day of 2017 is when an annual $50,000 quota to convert the yuan into foreign exchange resets, stoking concern there will be a rush to sell the local currency.

    With tax payments and a regulatory assessment also tightening liquidity in the money market toward year-end, manifesting itself in soaring unsecured funding rates such as the overnight repo hitting 33% as noted yesterday, paralyzing both the overnight…
    ….
    Ultimately, trying to keep a lid on the Yuan is a game China will lose, and some are already preemptively admitting defeat. Among them is Yu Yongding, a former academic member of the PBOC’s monetary policy committee, who overnight urged his former PBOC colleagues to engage the “nuclear option” – a sharp, one off devaluation similar to what China did in August of 2015. 

    In emailed comments to Bloomberg, Yongding said that China has a window from now to President-elect Donald Trump’s inauguration to halt FX intervention and let yuan depreciate to its equilibrium level.

    Will the PBOC stun everyone and unveil a surprise devaluation in the next three weeks? We don’t know, but according to bitcoin, which has soared by 20% in just the past week, someone does appear to “know” something, and if they are right, a devaluation is precisely what the Chinese central bank has in store.

    read more.

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December 29, 2016 Posted by | Economics | , , , | Leave a comment

Jim Willie on The American Freedom Radio – The Ochelli Effect

December 27, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Jim Willie: 2017 Economic Outlook

http://www.amazon.com/The-Manufacturing-President-Insertion-Barack/dp/1478260645

Click on image to goto Amazon.

  • Published on Dec 26, 2016
    WWW.TRUNEWS.COM

    12/26/16: Jim Willie, 2017 Economic Outlook
    Will the legacy of Barack Hussein Obama be a world left in chaos? Today on TRUNEWS, Pastor Rick Wiles interviews economist Jim Willie regarding what his sources have shared about the economic outlook of 2017. Pastor Rick will also hear Jim Willie’s opinions on the real background of the Obama family, the derivatives disaster unfolding on Western banks, and the developments toward a global cashless society. Source:

    https://www.spreaker.com/user/trunews…
http://www.infowars.com/bombshell-barack-obama-conclusively-outed-as-cia-creation/

Click on image for article.

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December 27, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Jim Rickards: The Great Currency Shock

December 13, 2016 Posted by | Economics | , , , , , , , , , , , , , , , , , , | Leave a comment

Jim Willie: FedRes to Sabotage Trump Administration?

December 9, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , | Leave a comment

We Need A Reset & A Debt Jubilee, The Economic Outcome Will Be Devasting: Jeff Nielson

November 24, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Roger Stone Reports From Trump Tower: Assassination, Economic Collapse And Tax Cuts

November 12, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , | Comments Off on Roger Stone Reports From Trump Tower: Assassination, Economic Collapse And Tax Cuts

Jim Rickards: The Global Elites’ Secret Plan for the Next Financial Crisis

http://www.newdawnmagazine.com/Article/A_Global_Central_Bank_Global_Currency_World_Government.html

Click on image for article.

November 5, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , | Comments Off on Jim Rickards: The Global Elites’ Secret Plan for the Next Financial Crisis

Jim Willie On Banking System COLLAPSE: Here’s What Comes NEXT…

  • Published on Nov 2, 2016
    This is part 2, start with part 1:


    https://www.youtube.com/watch?v=ROv9Q… 

    The western banking system is broken. With U.S. treasuries selling off, the banking system will be caught on the wrong side of the trade when it comes to derivatives on interest rate swaps. As the U.S. banks collapse, get ready for foreign banks to take their place. This and much more with this viewers’ questions edition with the one and only Dr. Jim Willie!

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November 3, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Jim Willie On Banking System COLLAPSE: Here’s What Comes NEXT…

Jim Willie: US Dollar Will Lose The Reserve Status, There Will Be An 80-90% Devaluation Of The New Dollar

November 2, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Jim Willie: US Dollar Will Lose The Reserve Status, There Will Be An 80-90% Devaluation Of The New Dollar

The Petro Dollar System Is Coming To An End, Prepare Accordingly

  • Published on Nov 1, 2016
    Those in Canadian’s green party want the secret corporate court removed. NATO is pushing to have a force in the black sea. The US sent the X-radar system to North Korea. US extends sanctions in Sudan. Libyan economy is collapsing as the US pushes other countries to invade Libya to keep the Unity Government in power. UNSC is of the opinion that the US should separate the moderate rebels from the terrorists. 2,000 moderate rebels (terrorists) push an offensive in Aleppo, it did not succeed. The petro dollar system is at its end game , which means the entire economic system is about to fall.

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November 2, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on The Petro Dollar System Is Coming To An End, Prepare Accordingly