It appears that what I have been writing about for the past 10 years as being inevitable is now starting to manifest itself right before our eyes. You may remember me writing that “once you go down the money “printing” path there is no way back”.
The reasons are many but the main reason for this is that asset prices are manipulated by “money” conjured up from nowhere and creating far more demand than there would normally be. The manipulation started out in the bond “market”. Since that is the basis on which stocks, real estate and most assets derive their “value” from, all assets get affected. Of course, I believe ALL central banks are also buying stocks but only a few openly admit it. As the manipulation grows the larger the correction that is needed to bring assets back into balance. Of course, those “in charge” don’t want reality to rear its ugly head when they are running the show, so the manipulation gets larger and larger until the system crashes under its own weight. I believe we are VERY near that point right now for many reasons.
#1 The ECB, Bank of Japan and Bank of England are all using extraordinary measures and buying “whatever it takes” to keep yields on government bonds under control. The Fed is also involved with Swap agreements to other central banks. Despite these efforts, we are still seeing bond yields flailing all over the place and trading more like stocks than the usually boring bonds. This indicates to me that there is something underneath the surface (lack of liquidity and willing buyers is most likely) that is causing all of this turmoil.
#2 All central banks are jawboning about the extraordinary measures ending on such and such a date. Like the Bank of England ending bond buying this Friday. They said on Monday that it will end on Friday and on Tuesday announce it will not end on Friday and was actually INCREASED on Wednesday.. You may remember that I wrote just a week or two ago that they CAN”T stop. The day they stop the bonds yields will spike and it could be game over.
#3 Most central banks are committed to raising interest rates to combat inflation. Chicago Fed President Charles Evans reiterated this week that the Fed is willing to crash the economy (kill jobs) to get inflation under control. You may remember that I have written that there is no way that raising rates the way they are will kill inflation. The main reason is that it is not a demand problem causing inflation- it is a SUPPLY problem. All the years of “printing up money” and creating NO VALUE or assets of any kind are coming home to roost as all that “money” is chasing FAR fewer goods. Hence, inflation is here to stay- and likely rise for quite a while. In addition, as central banks are raising rates, they are still conjuring up trillions of currency units to buy stocks and bonds to keep the “markets” functioning- a HIGHLY inflationary action in its own right. Raising rates is making borrowing more expensive for all and the cash conjuring is leading to far higher prices. A 1-2 punch that has our economy and citizens suffering.
#4 The financial game shows are constantly putting out the propaganda put out by government agencies like 3.5% unemployment an 8.5% inflation. Of course, there are people like John Williams of Shadow Government Statistics that report the numbers as they used to be reported without all of the massaging of data. If we reported the numbers correctly the unemployment rate is 24% and inflation is 15% plus.
Do the 24% unemployment rate and 15% inflation seem a lot more likely when you are looking with your own eyes? Obviously, the numbers are being manipulated to keep you as clueless as possible as to how bad the economy is actually functioning.
It appears to me that the entire debt-based system may be on its last legs. It also appears that most of the world- including BRICS countries, Asian countries, Saudi Arabia, Iran, many South American and African countries see the writing on the wall. There is a concerted effort to use local currencies and to back those currencies with the commodities produced by the issuing country.
When these actions come to fruition the inflation of today will likely be looked at with fondness.
While our central bankers are busy conjuring up cash many other countries are taking a far more logical approach and producing GOODS.
While the paper-pushers appear to still be in control I believe that the writing IS on the wall and it won’t be long before people will be more concerned about the assets they have than the amount of dollars, euros or yen as, at that time, it may become irrelevant how much currency you hold because the VALUE will be dead low- if it has any value at all. This has already happened hundreds of times throughout history, but this is likely to be the first global purge of fiat (debt-based) currencies.
While many people are upset that gold and silver are not skyrocketing as history suggests they should be at this time and in these circumstances, I believe they are falling for the fake paper shenanigans that are meant to enrich a few and scare away competition for the actual hard assets. The real way to look at this, I believe, is to look at what banks and central banks are doing while crushing the price with fake (paper contracts) gold and silver, while amassing record amounts for themselves. If this were reported in the mainstream it would give many the opportunity to take advantage of the absurdly cheap price that gold and silver are trading at today. As I say- with every fiat currency unit conjured up out of nowhere the VALUE of gold, silver and virtually all hard assets increase. With all the “printing” going on globally I can’t even imagine what the actual price should be but the VALUE, I believe, is OFF THE CHARTS.
I believe that NOW is the time to get whatever it is you need because it appears that those “in charge” need a crisis to cover their tracks as the global economy and indeed the entire debt-based system appears ready to implode. It doesn’t appear it would take too much for a Black Swan to appear.
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