Socio-Economics History Blog

Socio-Economics & History Commentary

Bill Holter: Chinese Join Currency War & Gold Backwardation is Back!

  • Published on Aug 18, 2015
    Did China just join the currency war? What will the world look like in 6 months? Bill Holter questions what will even be left…

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August 20, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

Economic Crisis: Soros-Linked Billionaire Buys Up Gold. Major Gold Purchase Indicates Coming Financial Collapse

Remember the Golden Rule: "He who has the gold rules!"

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

  • Economic Crisis: Soros-Linked Billionaire Buys Up Gold. Major Gold Purchase Indicates Coming Financial Collapse
    by KIT DANIELS | WWW.INFOWARS.COM  
    A billionaire hedge fund manager linked to George Soros bought up gold shares after multiple financial experts warned a stock market crash is coming.

    Stanley Druckenmiller, who runs Duquesne Capital after previously working for Soros, now owns 2.88 million shares of SPDR Gold Trust, making it his largest single holding and long position.

    That means if the price of gold goes up, Druckenmiller profits tremendously. “Druckenmiller’s [SPDR Gold Trust] stake had a value of $300.3 million at the end of the quarter based on the June 30 closing share price of $104.27,” Business Insider reported. “Druckenmiller has previously said that when he sees something that really excites him he will ‘bet the ranch on it.’”

    Multiple financial experts, including Dr. Ron Paul and Peter Schiff, have warned of a coming economic collapse, and Schiff in particular said gold will rise in response to the Fed’s non-stop creation of money called “quantitative easing” which devalues the dollar.

    “We’ll always have to do [quantitative easing] to offset the damage from the previous QE,” Schiff told MarketWatch. “It’s like trying to put out a fire with gasoline. That’s all the Fed has—gasoline, and everyone expects the fire to go out. It can’t go out.”

    “You need to be long gold and there is going to be a huge payday.”
    And that’s exactly what Druckenmiller has done. Druckenmiller rose to prominence in 1988 when Soros hired him to run the Quantum Group of Funds, which became famous for “breaking the Bank of England” by shorting the British pound sterling in 1992.

    And now it appears the entire global economy is breaking apart. “Right now we’re starting to see the whole thing coming apart; I mean we look at Detroit as an example, we see what’s happening in Greece, they’re worrying about what’s going to happen after Greece is actually recognized as totally bankrupt and there will be other countries,” Dr. Paul said on the Alex Jones Show.

    The former congressman also echoed Schiff’s prediction that the Fed would keep trying to delay an inevitable collapse through QE. “But that’s coming to an end,” Dr. Paul said. “The day of reckoning is at hand.”

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August 18, 2015 Posted by | Economics | , , , , , , , , , , , , , , | Leave a comment

Jeff Berwick: Systematic Market Crash to Occur on September 2015? Surviving the Shemitah Collapse?! Financial Crisis Planned For September 2015?!

  • Jeff Berwick: Systematic Market Crash to Occur on September 2015? 
    by http://www.kitco.com/news/  
    …. CK: No worries. Good answer either way. I want to get back to the current events that are happening. Even talking a lot about dollar hyperinflation I think that our audience at Palisade Radio a lot of them see some type of an inflation occurring. The stock market, the bond market, they all are historically overpriced right now. What do you see playing out? You said something about a potential crash on September. Why?
    JB: I am just about to release more information on why I am zeroing in on that date. I have already written about it to The Dollar Vigilante subscribers last month. There are a lot of things happening in September that all seem to be gravitating to one date. The date happens to be September 13th and around September 15th. There are a number of reasons. I started looking at that date. I do not want to get too in depth here, too detailed or complicated, but there is something in the Judaic religion called the Shemitah. Every seven years there is a washing away of debts.

    Due to some research I noticed that almost every major market collapse happens during this year and usually on this one day when the Shemitah year is finalized. It is the final year of the Shemitah. I looked into it and this year it happens to be September 13, 2015. The last  was in 2008. That was the day that had the biggest point drop in the stock market of all time. Seven years before that was 2001, just after September 11th. On the final day of the Shemitah, September 17th, the New York Stock Exchange reopened after September 11th and fell, I think, the most in history at that point.

    I have been just looking at these dates and then I start to put together that there is this massive military exercise going on in the US right now called Jade Helm. It runs essentially from July until September 15th. On September 15th there is also a meeting at the United Nations for their 70th Jubilee session, and most major world leaders are going to be there in New York. There are so many things. The pope also is going to be speaking at, I believe, the UN or Congress on that day or around that day.

    There is something happening and I am still trying to put together all the details and all the numbers, and all the facts. I think something is going to happen. I do not know what it is going to be exactly, whether it is a complete financial currency reset. If you are looking at what the US government is planning for, looks like they are planning for a huge amount of chaos in society. They are planning for it. They are war gaming for a financial economic collapse. They are doing drills for it. There is something that seems to be in the works.

    Now if I am wrong— and this is the great thing about this is if I am wrong and absolutely nothing crazy happens in September, I am still right on all the things that you should be doing right now. Because I think the collapse will come quite soon, very soon, as soon as maybe even September, if not in the next year to no more than couple of years at this point. I do not think so. All the things to do, that is, if you expect a September collapse to happen. Even if it does not happen you are still going to be positioned well, being in things like hard assets outside of the financial system as much as possible.

    CK:
    Yeah, it is always good to protect yourself and build a defensive fortress and part of that is of course holding on to gold and silver. What happens in this type of situation to the price of gold? Are we going to see $10,000 per ounce or a $100,000 per ounce? I guess if there is a hyperinflation the number is irrelevant.

    JB: Yeah, that is right. That is what happens in every hyperinflation. It is really hard to say because we have never had this happen before in human history. We have never had an entire world on fiat currency. We have never had a great majority of those countries be insolvent or bankrupt essentially. There is absolutely no way that most of these western countries can even hope to ever pay off the debt they have accumulated. It is obvious that is just a Ponzi scheme. They just keep rolling it over and making it bigger and bigger.

    read more.
http://surviveshemitah.com/shemitah/

Click on image for article.

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August 17, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , | Leave a comment

John Embry: The Public Has Been Set Up For Slaughter – It Doesn’t Have A Chance

  • John Embry: The Public Has Been Set Up For Slaughter – It Doesn’t Have A Chance
    by http://thedailycoin.org/  
    One of the things that has bothered me a lot is the cognitive dissonance amongst – not the public, the public doesn’t have a chance, they’re being lied to constantly by the media – but what I find distressing is the cognitive dissonance amongst financial professionals. – John Embry on Shadow of Truth 

    The precious metals sector has been under violent manipulative attack since gold and silver peaked in price in 2011. The western Governments and Central Banks had no choice but to attack real money because it would be the only way that they could continue implementing their ultimately catastrophic monetary policies in order to prevent systemic collapse.

    But as Ayn Rand asserted a long time ago, you can ignore reality but you can’t ignore the consequences of ignoring reality. It is likely that the move by the Chinese to begin devaluing their currency is an acknowledgement to this reality and it represents China’s attempt to get a head start on the rest of the world in order to minimize the consequences it will suffer relative to everyone else.

    The surprise move by the Chinese to devalue the yuan is a “signal event” because basically it’s going to lead to currency debasement everywhere – it’s going to expose everyone else. What could be a better advertisement for gold and silver?…When this finally explodes [gold] it’s not going to go up $50 or $100 bucks it’s going to go up massively because the whole paper Ponzi scheme will be exposed.
    – John Embry


    We have never in history witnessed extreme systemic imbalances in the world financial economic system to the extent that they are now occurring. As an example, Mr. Embry referenced the fact that, “The U.S., Japan and Canada have 52% of the Federal funded debt in the world and they have only 7% of the population base.”

    One of the things that has bothered me a lot is the cognitive dissonance amongst – not the public, the public doesn’t have a chance, they’re being lied to constantly by the media – but what I find distressing is the cognitive dissonance amongst financial professionals.
    – John Embry


    Finally, there’s a massive trade to be had in the gold and silver stocks, assuming our worse scenario does not play out. That is to say that the mining stocks have never been cheaper relative the price of gold and silver than they are now. In fact, I would venture to say that it might be the most undervalued market sector in history right now. Of course, the “worst scenario” is the scenario which hits in which you wished you were watching this from another planet…

How_do_I_wake_these_stupid_Sheeple

Sheeple_Magazine_Slow_boiling_of_Frog_Brain_Washing

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August 17, 2015 Posted by | Economics, Social Trends | , , , , , , , , , , , , , , , , , , , , | Leave a comment

Lindsey Williams: Things You Must Do Before September 15th, 2015! Worldwide Financial Collapse Scheduled for: Sep – Dec 2015

Worldwide Financial Collapse Scheduled for: Sep – Dec 2015

August 15, 2015 Posted by | Economics, EndTimes, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

All Hell Is About To Break Loose As The World Hurtles Into Chaos And Unprecedented Levels Of Fear

Global financial tsunami coming soon??!

Global financial tsunami coming soon??!

  • All Hell Is About To Break Loose As The World Hurtles Into Chaos And Unprecedented Levels Of Fear
    by http://www.kingworldnews.com
    … I fear that this coming September – October all hell will break loose in the world economy and markets.  A lot of factors point to that, both fundamental and technical indicators and this indicates that we could have a number of shocks this autumn.

    Sadly, most investors will hold stocks, bonds and property and will see any decline in value as an opportunity.  It will be a long time and a very big fall before they realize that the system will not help them this time because the central bankers have run out of ammunition to save the global financial system one more time.  Yes, we will see more massive money printing, but it will just make things worse.  And at some stage, which could be quite soon, real fear will set in, a fear of a magnitude the world has not experienced before. 

    What’s now happening with the yuan will spread to country after country, with an accelerated devaluation of all currencies in their race to the bottom as they try to gain a competitive advantage.  This will result in the destruction of all paper currencies.

    The collapsing currencies with all the money printing will turn the current deflationary phase into a hyperinflation.  But even during the hyperinflation we will see a deflationary collapse of all bubble assets such as stocks, property and bonds.

    This is why investors must be protected against the unprecedented risks, which are of nuclear proportions.  It’s therefore a must to hold physical gold and maybe some silver outside of the banking system as insurance against these risks.

    read more.

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August 15, 2015 Posted by | Economics | , , , , | 2 Comments

Gerald Celente: Trade War, Then World War!

  • Published on Aug 13, 2015
    China’s currency devaluation came as no surprise to Gerald Celente of Trends Research Institute. Now that that warning has come true, we ask Mr. Celente about the possibility that China’s actions will start a trade war that may lead to a world war and we talk to him about his movement, OccupyPeace, to remove us from foreign entanglements.

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August 14, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Did the FINAL WAR Just Start? TianJin China – Tactical Nuclear Bomb Blast?

  • Did the FINAL WAR Just Start?
    by Bill Holter, http://www.jsmineset.com/  
    The question of our title is very important, “Did the FINAL WAR just start?”.  If you polled Americans on this question, 99.9% would answer “no” if you took out the Middle East.  Last week I wrote “The Rumblings of War” regarding the IMF rebuffing China’s entry into the SDR.  This was followed up by “The shot heard ’round the world” on Tuesday commenting on China’s surprise devaluation.  The purpose of this writing is to show you YES, we are in fact at war!  Rather than “tell” you we are at war, I feel it is better to point out a few dots, connect some of them and then ask a few questions which might help you understand the war that is in fact being waged.  If you can answer some of the questions then connecting dots and forming your own conclusions will be easier.

    As our backdrop, we are “told” the world is in recovery from the very bad experience of 2008.  Since then, various central banks have monetized debt on a massive scale, led by the Federal Reserve of the U.S..  Undoubtedly, the greatest “export” from the U.S. has been dollars themselves and financial products known as derivatives.  For the most part, the world spun merrily until last fall when Saudi Arabia decided to increase production and lower prices.  This was presumably done at the request of the U.S. and meant as a tool to injure Russia’s energy sector, economy and financial system.  Can the petrodollar which became accustomed to $100 oil be supported with sub $50 oil?  There are two sides to this coin, yes the consumer of oil saves but doesn’t lower oil price mean less liquidity in the system?  Doesn’t it mean lower velocity and less demand for dollars?

    Moving along, did anyone really wonder “why” or what (or better yet, WHO) was behind China being put off for acceptance as a component of the SDR?  Then just two trading days later, China devalued their currency in a surprise move…followed by two more devaluations!  Remember, the U.S. has been prodding China to strengthen their currency and has gone so far as to call them a “currency manipulator”!  Now we see China doing the exact opposite of U.S. requests (demands?).  World markets have been shaken, and at a time when liquidity is quite tight.

    A stronger dollar since last fall has acted as a constant and nagging “margin call” to the world which has contributed to the lack of liquidity.  Have the Chinese finally said “fine, you want to issue a margin call to the world, we will help you issue it.  Let’s see what happens to your financial system when the margin call fails to be met?”.  Do you see what I am getting at here?  The Chinese are now forcing the dollar higher by devaluing their own currency.  They understand the dollar is nothing more than a debt instrument, are they attacking and intending to destroy the dollar with its own strength?

    Follow this through, a stronger dollar will decrease our exports and slow our already slow or negative economy. A too strong dollar can actually undermine itself and even kick off a derivatives chain explosion. Our banks and brokers are very thinly capitalized, can they withstand losses in derivatives caused by a currency crisis?  Can they withstand the losses from failed counterparties unable to pay?  Do you see?  A currency crisis “caused” by China could be a calamity.  China has already accused Citadel (Ben Bernanke’s new employer) of creating the crash in their equity markets, is a currency crisis retaliation for their equity crash and public shaming by the IMF?  If you understand how the Chinese think and also understand the works of Sun Tzu, Jim and I ask if China’s strategy is …  “In order to destroy the dollar permanently make it stronger temporarily.”? 

    Another area to look at is gold and silver.  Supplies have recently gotten very tight, not just for retail in the U.S. but all over the world.  Has production slowed or have buyers stepped up their hoarding?  Or, have Western central banks reduced their “dis hoarding”?  Whatever it is, something in the supply/demand dynamics has definitely changed …and it has not taken much money to do it!  Are these separate events or are they tied together somehow?

    This is where it gets weird or some might say “coincidental”.  Did anyone see the explosion at the Chinese port city of Tianjin yesterday?  https://www.youtube.com/watch?v=_92WaPxeqCs  “Yesterday” being one day after China devalued their currency?  I am no rocket scientist and cannot say for sure, but does this not look like a nuclear explosion?  Can someone out there explain to me in simple terms how a chemical explosion could look like this?  As for the word “coincidence”, the CIA says there is no such thing as a coincidence!

    read more.

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August 14, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

Ominous Warning Signs: Shemitah Financial Readiness

  • Published on Aug 2, 2015
    Radio Free Redoubt’s Fox519 joins me to talk about the convergence of several secular and prophetic indicators that are flashing like red warning signs to take cover financially. He tells us what he and his community are doing to prepare. This episode is part of a series where we will be discussing our SRC or Shemitah Readiness Checklist to make sure we can attain a minimum state of preparedness by September. If you enjoy the show, please like and subscribe!
  • The serpents are once again turning something ordained by God for the good of humanity into evil. Shemitah means debt forgiveness, total debt write off, setting free of slaves, rest for the land, celebration …. but the serpents will invert it and cause a: global collapse, debt slavery, immense hardship, poverty, … and WW3.
  • Shemitah Year Of 2015 May Bring Financial Upheaval
    by , http://www.prophecynewswatch.com/  
    What would you do if you knew that divine judgment on your country and the world was imminent? If you are Jonathan Cahn, you write two best-selling books that detail the revelations that you have received about how the United States is already undergoing judgment and has been for more than a decade. Like a latter day prophet of the Bible, Cahn is issuing his warning that September 13, 2015 might be the next key date in the ongoing series of judgments using a variety of mediums, from television to the internet, that were not available to the prophets of old.
    ….
    Cahn’s analysis of the relationship between the terrorist attacks of September 11 and the 2008 economic collapse turned up the astounding fact that stock market collapses in both years, which currently rank as the two largest stock market point crashes in U.S. history, occurred on the same day of the Jewish calendar. 

    Even more remarkable is the fact that the Jewish date on which the markets collapsed was the last day of the Shemitah year, the day in which all debts were wiped away. This action would result in a situation much like a modern recession as the accumulated wealth of seven years was blotted out and agricultural production plummeted.

    When Cahn looked back at previous Shemitah years, he found that the pattern extended even farther back into U.S. history. The Shemitah of September 1993 through September 1994 (the Jewish New Year starts in September on the Gregorian calendar used by the U.S.) saw a selloff in the bond market that swept around the world. In 1987, a stock market crash occurred that held the record for largest point drop in a single day until the post-9/11 crash of 2001. 

    In 1980, the U.S. suffered a severe recession that lasted until 1982. In 1973, an oil shock brought on by the Arab oil embargo sparked another recession. In 1966, the U.S. experienced a credit crisis. In 1958, the Eisenhower Recession was a sharp, worldwide downturn. For more than 50 years, every Shemitah year has seen the U.S. experience financial upheaval.

    In addition, the Shemitah was linked to the Great Depression as well. Although the initial stock market crash of 1929 was not in a Shemitah year, the decade of the 1930s contained two Shemitahs, 1930-31 and 1937-38. As a chart of the Dow Jones Industrial Average of the 1930s shows, 1932 was the darkest year of the Great Depression. By 1937, the recovery had begun, but country experienced a second recession within the Depression.

    read more.

http://sidroth.org/store/products/mystery-shemitah-book-7-cd-series-jonathan-cahn-code-9258

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August 14, 2015 Posted by | Economics, History, Social Trends | , , , , , , , , , , , , , , , , , | Leave a comment

Andy Hoffman: China Just Turned the Currency War Nuclear

  • Andy Hoffman: China Just Turned the Currency War Nuclear
    by Greg Hunter’s USAWatchdog.com 
    Financial writer Andy Hoffman wrote an article titled “Upcoming, Cataclysmic, financial Big Bang to End all Big Bangs,” and the very next day, China devalues its currency by a massive amount. What’s going on? Hoffman says, “A year from now, we are going to be 5% lower (on the yuan) not 2%. So, already the market is bidding down the yuan in what I believe must happen. For all the talk about bubbles here, the NASDAQ bubble, the debt bubble, the housing bubble, bubbles we see in Europe, the bubbles we see in Japan and, frankly, nothing even compares to China’s bubble both economically and financially because of what their communist government has wrought onto them. I think there are going to be further steps for China to devalue as their economy falls apart.”


    So, if China is devaluing its currency, does that means everybody else will eventually follow? Hoffman says you bet and says this is why there is the huge demand for physical precious metals and goes on to explain, “because it’s real money people are flocking into. They sense the fear between Greece, Brazil, China, Japan and now our economy that everyone is going to competitively devalue. The Fed raising rates, of course not. They are going to be doing QE4 and negative interest rates. The White House has been saying this year that the strong dollar is killing us, and there is an election next year. The earnings of the S&P are down this year and the economy is falling apart. The strong dollar kills corporate earnings and kills competitiveness. So, the Fed is going to keep weakening the currency. They will do a QE4 . . . sooner rather than later. Everyone knows it is real money you need to own, not this paper stuff as we are going into the final currency war.”

    Hoffman, who also has 15 years’ experience as a Wall Street analyst, says it’s not just China’s economy tanking. It’s global as Hoffman explains, “We are at the single worst point of economic activity in the world in our lifetimes. You would have to go back to the depression to have a point this bad. Back then, we didn’t have any debt in the world. Now, it’s massive debt with no more room to add to it. We also have massive overcapacity of everything imaginable. . . . This is the scariest time I’ve ever seen economically and financially, and I think the whole world is going to know it soon . . . China devalues the yuan starting the end game. . . . It is currency collapse. Back in January of 2013, I said in the final currency war, everyone would devalue their currency to the point of hyperinflation. . . . Japan is going to be the first world society to have hyperinflation, and everyone will follow suit just like the prior 600 fiat currencies in history that all failed. Only this time, it is on a global scale without a single currency backed by anything except the faith and credit of central banks.”

    read more.

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August 13, 2015 Posted by | Economics | , , , , , , , , , , , , , , , , | Leave a comment

John Rubino: Catastrophic Bubble Ready to Blow!

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August 13, 2015 Posted by | Economics | , , , , , , , , , , , , , , , , , , | Leave a comment

Doug Casey & Jeff Berwick: Anarcho-Capitalists Predict Imminent Collapse! A Collapse is Planned for September, Moving the World Closer to a One World Government

  • Published on Aug 12, 2015
    NY Times best selling author and world renowned investor Doug Casey, along with Jeff Berwick of Anarchast fame sit down with GoldSeek TV Anchor Vanessa Collette for an in-depth, unfiltered & unscripted conversation about a potential imminent financial collapse. Doug believes we are now exiting the eye of the hurricane and rapidly heading towards what he terms the Greater Depression, and Jeff Berwick believes a collapse is being planned for September, moving the world closer to a one world government.
http://www.thenewamerican.com/world-news/europe/item/8864-vatican-council-calls-for-world-government-central-bank

Click on image for article.

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

Click on image to goto article.

Luciferian_New_World_Order_Koch_n_Spangler

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August 13, 2015 Posted by | Economics, EndTimes, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , | Leave a comment

The Upcoming, Cataclysmic, Financial BIG BANG to End All Big Bangs

Global economic, financial and currency Armageddon coming!

Global economic, financial and currency Armageddon coming!

  • The Upcoming, Cataclysmic, Financial BIG BANG to End All Big Bangs
    by Andrew Hoffman, http://blog.milesfranklin.com/  
    … Such are the ugly times we live in.  And yet, the U.S. still remains the “best of the bunch.”  Not that it will forever; as once the “end game” of global currency collapse plays out, the America’s political and economic power will be no more “extraordinary” than those of other former reserve currency issuers – like Portugal, Spain, France, and England.  Heck, even America’s social leadership is rapidly waning, with its previously world-leading entertainment industry thoroughly dumbed down and diluted by commercialism, “reality,” and social media.

    No, America won’t disappear.  However, it’s once global dominance will disappear in all but a handful of niche areas.  Which sounds not so bad, until one realizes its power stems largely from said “reserve currency”; and more importantly, the rest of the world’s five decade willingness to finance it.  In other words, 21st century Americans are living further above their means than any other people ever have – at a time when its finances, economic outlook, and political leadership have never been worse.  Which is why, undoubtedly, the “transition” from global dominance to mere ordinariness will be extremely painful – political, socially, and economically.  As for “King Dollar” – which in currency terms, trades at the equivalent valuation of a $100,000 hybrid automobile amidst plunging energy prices – all we can say is this.  Holding dollars instead of Precious Metals at prices well below their respective costs of production – in a world where Federal Reserve money printing is going parabolic (heck, even Bloomberg admits it) – can only be described as financial suicide.

    Back to the horrible headlines, I feel like I’m in the Twilight Zone when trying to convey what should be the simplest point imaginable; i.e., collapsing commodity prices represent the “worst-case scenario” for global economies, financial markets, and social and geopolitical stability.  However, thanks to the dumbing down of financial media; the unconscionable conflict of interest between what’s good for Wall Street and Washington, and what’s good for the “99%”; and of course, historically manipulated financial markets; I feel just as much the “Cassandra” for speaking of such a mainstream topic, as pleading for people to consider “taboo” investments like gold and silver.  I mean, we’re supposedly in such a powerful “recovery” that Federal Reserve “lift-off” is imminent.  And yet, global commodity prices broke through 2008’s spike bottom lows last week; led by the world’s most important revenue producing market, crude oil, whose horrifying plunge is just startingto unleash the “unspeakable horrors” I warned of ten months ago, when prices were nearly twice today’s depressionary levels.

    read more.

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August 13, 2015 Posted by | Economics | , , , , , , , , , , , , , , , , | Leave a comment

Bill Holter: World is Defenseless in Next Financial Crash

  • Bill Holter: World is Defenseless in Next Financial Crash
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)  
    Financial writer and gold expert Bill Holter says the powers know that it physically can’t put off a financial crash much longer. Holter contends, “The system has gotten too big. The system has gotten bigger than the creators of the system, if you will. It is bigger than the sovereign governments collectively. It’s bigger than the central banks collectively. There’s too much debt. Too many sovereign governments have bumped up against debt saturation. In the U.S., we are over 100% debt to GDP. We are way over 100% debt to GDP if you include all debt. If you include all the off-book guarantees, Social Security, Medicare, Medicaid and all the other promises, we have blown up as far as debt to GDP ratios. So, the ability to prevent a crash no longer exists.”

    For the people who think central banks can print money to infinity, Holter advises, “People have the belief in central banks because, to this point, it has worked. So, they extrapolate that it will always work. What they are not factoring in is many sovereign governments have reached debt saturation. In other words, many governments have gotten to the point of Greece or Puerto Rico. It can’t take more debt. The problem in Europe is the individual countries can’t print money. The U.S. can print money. The question is will foreigners accept what we print forever? The answer is no.”

    Holter says the Fed will print more money. It will be forced to and it will not work the same as other money printing. Holter explains, “The next one, in my opinion, is going to be ‘QE Forced.’ It’s going to be forced on the Fed.”

    The recent announcement the International Monetary Fund (IMF) will put off allowing the Chinese yuan to become part of the Special Drawing Rights (SDR) basket of currencies is a bad omen for the U.S. dollar. Holter thinks, “China being pushed off by the IMF until at least 2016 is a slap in China’s face. They publicly and officially requested to become part of the SDR. . . . The IMF, steered by the U.S., basically slapped them in the face. You’ve got to look at this as a financial war. This is a shot by the U.S. saying, no, we are not letting you in the club. It is inevitable that the Chinese currency will become part of the SDR or a reserve currency or ‘the’ reserve currency. It’s inevitable. The U.S. is trying to buy an extra year’s time, and it can’t.”

    What can China do to retaliate? Holter says, “I think they have two potential moves. . . . The right time may be in a month or two during weakness in our markets. Remember, this was done by the IMF during very serious weakness in their markets. We kind of punched them on the way down. They have two real answers. They can tell the truth about how much gold they have. They can come out and say they have 10,000 tons or 15,000 or 20,000 tons or whatever it happens to be. The second is China has an awful lot of Treasuries. This is where I think they can force the Fed into monetizing their debt. They would be creating their own exit door. . . . Then, the Fed would have a big choice. Would the Fed buy them? There is your QE forced. Or, do they just let the interest rates go up and the bond market tank? It’s either option A or option B.”

    Holter says, in the last year, there have been many big warnings from the Bank of International Settlements and the IMF about a coming financial calamity. Holter says, “I think they are trying to get out in front of this. I think they are telling the truth–the world is defenseless. The central banks, the sovereign Treasuries have fired all their bullets already, and they realize when this next crash comes, there’s nothing that can be done.”

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August 11, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , | Leave a comment

Jim Willie: QE Death Sentence & USTBond Black Hole

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  • Jim Willie: QE Death Sentence & USTBond Black Hole
    by http://www.silverdoctors.com/
    Summary  
    The key step upcoming is the Gulf Emirates soon to accept RMB for oil payment from all Eastern & Asian countries, the major flash point. Coupled with broadbased RMB trade settlement and more purchase of Chinese Govt debt securities, the movement will be on to finally initiate the grand dump of USTreasurys from Eastern banking systems.
    The result will be then a forced reaction by USFed and USDept Treasury to launch the New Scheisse Dollar, which will at the outset have a phony gold foundation. A formal international audit process will break down the fraudulent basis, and lead to a series of painful New Dollar devaluations. Then comes the import price inflation, the supply shortages, and the civil disorder. The New Scheisse Dollar will have a 30% devaluation out of the gate, then many more devaluations of similar variety.

    The Gold price will find its true value and price over $10,000 per ounce
    . The Silver price will find its true value and price over $400 per ounce.
    In reaching these levels, the ratio will return to the 25-1 range. Several steps have been laid out by the Hat Trick Letter toward the return of proper price to precious metals. The major upcoming events will be exciting to watch unfold, one after the other, in an inevitable sequence away from fascism and concentrated uni-polar power, with a strong movement toward freedom and equitable systems with distributed power. The steps will each involve a quantum jump in the Gold & Silver prices. The process will take a few years, but might be breath-taking in speed once the process is begun.

    The steps involve: 

    By Jim WillieGoldenJackass.com
    Rather than stimulus, the USFed’s Quantitative Easing is a death sentence for the USDollar. It might provide an ongoing backdoor bailout opportunity for Wall Street banks, and even a window for China to switch from long dated to short dated USTreasurys, but QE is death sentence. It guarantees that the USDollar will be removed from the global premises and placed in the dustbin of history. Foreign banking systems are largely devoted to USTBonds as the foundation for their entire reserves system. The African type of hyper monetary inflation blessed as good and fine stimulus is a sentinel signal by the US Federal Reserve itself, given to the Eastern producing nations who save in the $billions. They will start a caravan to exit the USDollar in their banking systems. They have great challenges in doing so, and must follow a prescribed path. That path is the Chinese RMB as an intermediary device, a transition tool. The goal is the return of the Gold Trade Standard, which will assure the return to the Gold Currency Standard and the Gold Banking Standard. The absent solution to the chronic global financial crisis has been the refusal to put Gold at the apex. Instead, the big banks have become zombies, the economies have become sclerotic, the financial structure have been control rooms, the bond platforms have been fracturing, while the USGovt has relied upon bond fraud, gold thefts, the printing press, and predatory wars to defend the King Dollar regime. It is due for the funeral pyre.

    read more.

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August 10, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

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