The global economy has been on life support in the form of hundreds of trillions of currency units being created out of nowhere since at least 2008. Many times, since then, I have marveled at the fact that those “in charge” have gotten away with what they have been doing for so long.
I believe that the only reason that they HAVE gotten away with the “printing and buying” schemes and not had currency collapses across the globe is that most, if not all, central banks were playing the game.
If virtually all central banks are debasing their currencies at slightly different rates, then it is likely that not one in a million will actually notice what is happening. This is particularly true as the same actors keep the value of gold, silver and many other assets concealed by conjuring up paper contracts similar to the way banks “print” money and produce the illusion of FAR greater supply than there actually is and create fear among investors.
The fear comes about when an entity sells up to the entire annual mine supply of silver or gold in a matter of minutes- mainly at times when nobody is there to buy and market orders are used. That was the first sign of manipulation that I spotted a decade ago. Anyone doing a real trade (hoping to earn a profit) would make the sell when there is an abundance of buyers and would likely sell over time to protect their positions. The exact opposite takes place. This is the ONLY “market” that I know of that has the price determined by the derivative. A derivative is an asset that has NO intrinsic value of its own but derives its value from elsewhere. In other words, the derivative’s value should move up or down in relation to the asset that it gets its value from. Here the price of the actual asset is determined by paper contracts and manipulation. To me, the level of manipulation is STAGGERING.
One day it will end. Not just the rigging lower of metals and other goods but also the manipulation of stocks, bonds and other assets to maintain an unusually high perceived value so many feel richer and buy more goods.
Many ask “When?” I wish I had that answer but I believe we are in the early innings of this entire mirage being exposed. As I said earlier, all central banks were playing along. It appears now that there is some serious splintering in the framework that should not be ignored.
It is obvious that Russia, China, Iran and others want to break away from the US dollar and the constraints that come along with it. They are WELL on their way to achieving this goal and are moving faster than ever since the sanctions were announced against Russia. I believe the entire Middle East, most of Asia, Africa and possibly India will join the new Eastern bloc that I wrote about a few weeks ago.
When there is the allure of billions of dollars that are backed by NOTHING being offered by the West and food and energy being offered to “friendly nations” which would you choose? This is even before the real devaluation of the US dollar takes place. By the way, I keep hearing how “strong” the dollar is. Keep in mind that this is in relation mainly to the Euro and Yen- even sicker currencies. The US dollar has been losing value against commodity producing countries currencies like Canada, Norway and Australia.
There is some discussion of these things- just not on the financial game shows- they are too busy telling you how “great!” things are as you see the economy collapsing before your very eyes.
I believe that this is a MAJOR threat- likely later this year or next year but the real threat that could hit at any moment is actually from a friend. That friend is not the UK or EU but Japan.
Would Japan cause a problem for the USA on purpose? I don’t think so BUT the reason they are so dangerous now is that, as the leaders in QE and just about every other stimulus measure, they may be at the end of their rope.
In the past 20 years they have amassed enough Nikkei shares through their ETF purchases to be a top shareholder in most of the companies that comprise that index. They are also the ENTIRE Japanese bond market for the last 4 years and own 80% of those Japanese Government Bonds. The “printing and buying” scheme has allowed the Japanese government to run up debts that, at the end of March 2022 totaled 1,061,000,000,000,000.00 Yen. That is over a QUADRILLION (1000 TRILLIONS)
The Bank of Japan has to either keep “printing and buying” to keep rates artificially low or stop. If they keep going the Yen is likely to collapse at some point soon. It is already causing massive problems because Japan imports most of the raw materials they use in manufacturing and food production. They are a major exporter but a net importer. A currency collapse would collapse the economy as the goods needed for the island’s survival would become unaffordable.
If they stop “printing and buying” interest rates would likely rise uncontrollably and that would collapse the bond market, the Japanese stock markets and their property market. Not a nice place that they have led us to. It is likely that a crisis in Japan would lead first to a crisis in the EU and then here.
It is obvious that, along with the EU, USA and China, Japan has been a MAJOR supplier of liquidity in the financial system for decades. That may be coming to an end soon. With The USA and EU talking about QT (withdrawing liquidity) also, we may be at a dangerous crossroad that many seem to be ignoring.
Of course, as the economy collapses one way or another, so too will the manipulation of “markets”.
As I have said many times the central banks can conjure up limitless amounts of currency- UNTIL nobody wants to accept it as payment. It is likely when confidence is lost in a major currency it will be a swift action. It will also likely spill over into other countries as ALL countries rely on each other to buy their stocks, bonds and who knows what else.
For years those who are on the financial game shows always pointed to Japan to cover for the “printing” by our central banks in the West- assuming that you can “print” infinite amounts of cash in a world with FINITE resources. Of course, prices have to rise in that scenario, but they would have you believe otherwise because it was hidden and took place over years and not minutes. Picture the frog in the boiling pot. Now I will point to Japan and say that it may be Japan who reveals the endgame for all of the “printing” that has taken place.
If I am right- take heed. This will just be the warmup for the biggest crash the world has ever seen. Those prepared could come out smelling like a rose. Those unprepared will be in for a rough ride in my opinion.
Always ask the question: “What is the VALUE of a promise that cannot be kept?”
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