As governments keep inflating their respective currency supplies we will have some choppy times ahead. Eventually, the dollar will have to be revalued. Eventually we are going to see the dollar lose its international reserve status. Eventually the U.S. government is going to have to default on its debt or inflate its way out. Either way, the global economy is going to be in turmoil. Mike Maloney explains how to position yourself for this inevitable event.
Nomi Prins is a fantastically intelligent woman. In this interview she goes into how banking became so intertwined with government. The banking industrial establishment has been protected by the government for a long time and it is a complex history that you will NEVER get in your history text books. Thank you Nomi Prins for shedding light on the topic.
Peter Schiff makes the point that when the U.S. government does finally hit rock bottom, it will be a benefit. The sooner the better, otherwise the economic errors will continue to accumulate the day of reckoning that much worse. Peter Schiff also points out that when our economy finally does sort out its problems and the government is drastically reduced by necessity, we could have a bright future ahead. Schiff points to both Germany and Japan after World War II as economies that recovered quickly after complete economic destruction. We are in a much better shape, we still have all of our infrastructure. I would add that America also has an entrepreneurial spirit that will aid in our recovery. Peter Schiff’s short interview below.
Germany wants its gold back. They are not getting it. When the Germans asked to see there gold the Federal Reserve said no. Why would the Federal Reserve not let Germany see its gold? For myself and others the answer is obvious, the gold is not there. It has been sold. Most likely to manipulate the market and keep the price down. GATA has been saying this for years. Not only has Federal Reserve sold our own gold but it has sold foreign gold that has been held in trust. Fort Knox is empty. If this is not enough evidence that the Federal Reserve does not have much gold their behavior becomes even more strange. When the Germans finally ask for their gold back the Federal Reserve agrees to give it back to them over a period of seven years. Why seven years? Well, if there is no gold or if the Federal Reserve has sold the German Gold, then the Federal Reserve has no choice but to go onto the global market and reacquire the gold to sell to the Germans. The event that made it even more obvious that the Federal Reserve does not have the original German gold was when the Germans received there first gold installment this year. Not only did the Federal Reserve short the Germans on the original amount that they were supposed to receive but they also gave them gold that was melted down. The world’s banks are going to start to asking some pretty serious questions. Most likely people like George Soros and Warren Buffet are starting to take there gold out of the bullion banks. It is obvious that far more claims exist than are being stored. When this thing goes down it is going to be chaos. If you have invested in paper gold it probably a good idea do invest in physical. If you have neither gold nor silver it might be a good time to start investing in both.
I don’t like Glenn Beck much but he does a good job at explaining what is going on here.
This is a great interview with Schiff. If you are somehow still unaware how the coming crisis will come you have to listen to this. Schiff also mentions some things that I never thought of. He talks about government debt is worse than debt of a company like Coca-Cola. If Coca-Cola defaults, then the creditors get the company, if the U.S. government defaults the creditors get nothing. Ouch! Some countries (China?) could look at that as an act of war. I hope no one visiting this website holds government bonds.
The interview with Schiff starts about 8:30 into the video.
My own personal thoughts on default and raising the debt ceiling is one big yawn. You are much better off not watching this political theater at all. Walk your dog, kiss your girlfriend, just don’t turn on the TV and watch this current load of bull. Your blood pressure will thank you later. You would be better off reading a book on the Federal Reserve and looking for investments that will protect you against coming default. Time is running out. If you are expecting politicians to figure this whole thing out you are going to look like a big dummy to your grandchildren not yet born. Don’t disappoint them, buy some gold and silver.
Thanks to Gary North for picking this up. This editorial was written by a retired Lt. General. It was posted on the Daily Caller. It is worth the read. You will not here either of the two major presidential candidates touch this topic. Too bad, I would really like to hear some kind of explanation for these kind of purchases.
This is very big news. Ever since crazy Dick unlinked the dollar from gold in 1971, oil has served as an unofficial price support for the dollar ever since. This is because all oil that is traded in the world is traded in dollars. There were a few countries that did not trade oil in dollars like Iraq and potentially Libya but luckily they were ruled by very bad men and had to be taken out by the peace loving civilized societies of the West. This of course issued an new golden age that allowed the poor oppressed people of Iraq and Libya to enjoy the fruits of democracy that is working so well here, but I digress.
China is now the newest country in the world to attempt get out from under the Federal Reserve’s massive monetary devauluation. They want to trade oil in something else besides dollars. This is very logical for them, they are getting killed economically by continuing to buy so many dollars because dollars are dropping in value so quickly and will continue to drop in value as far as the eye can see. It is likely obvious to the leaders of China and many other national leaders from around the world for that matter, that the dollar is on its last legs. No one wants to get stuck holding the bag of trillions of dollars when the run against the dollar finally takes place. For this reason, China is already taking measures to insulate themselves when this inevitably happens. The problem for the U.S. is that the more steps that China takes to protect themselves, the more weak the dollar eventually becomes. Unfortunately for the U.S., China will be much harder to persuade than Iraq or Libya.
When the actual run on the dollar actually happens is still unknown but things continue to move in that direction. There is no end to the debt or the money printing that comes out of the Federal Reserve. The U.S. will default either out right by reneging on its obligations like social security, medicare, and bonds or through massive inflation which the usual tool of governments. Either one will be devastating to the U.S. economy but massive monetary inflation will be much worse. It is best to prepare now.