The Upcoming Central Banking “Nuclear” Explosion
I cannot think of a time, in my entire life, when I was more worried. Not about my situation personally, as I believe I have prepared for what’s coming, as well as humanly possible. However, that doesn’t mean I won’t face hard times as well – potentially, far worse than said “preparations” accounted for. Let alone, my soon-to-be five year old daughter, as well as the children of everyone reading this blog, and billions of others the world round.
To that end, I have written often of how, when I first “invested” in Precious Metals in 2002 – at the time, 100% mining shares, versus 100% metal today – it was due to the relatively simplistic, financially-rooted belief that “the dollar” was overvalued; and consequently, would “decline,” whatever that meant. However, as events unfolded, I not only realized the dollar’s value against other fiat currencies was meaningless; and for all intents and purposes, uncorrelated with gold and silver prices (particularly in light of the fact that 95% of the world’s population prices gold in other currencies); but that what really mattered was the dollar’s purchasing power against real items of value, in an increasingly inflationary world.
After 2008, it became painfully clear that monetary history would repeat itself, for perhaps the thousandth time. Only this time, every Central bank was a part of history’s largest, most destructive fiat Ponzi scheme. Which, quite clearly, had reached its hideous terminal stage, unleashing a hyperinflationary policy “bomb.” Since then, Central banks have lowered interest rates nearly 1,000 times, to the point that essentially all major nations are at or below the “zero bound,” whilst tens of trillions of currency units have been fabricated to “monetize” financial “assets.” Let alone, who knows how many “off balance sheet” currency units, care of the modern marvels of off-balance sheet accounting, and the “weapons of mass financial destruction” known as derivatives? Which, by the way, we can thank Bill Clinton for enabling more than any single person, in allowing the Glass Steagall Act to be repealed in 1999.
In the ensuing eight years, I have come to understand the fait accompli of inevitable hyperinflation – which one by one, nations the world round are starting to experience. Venezuela may be the “poster child,” but the cost of living has soared everywhere; and certainly in the U.S., the only home I have ever known. The reasons for such are myriad, but the focal point, in all cases, is the abandonment of the gold standard in 1971, which let loose the most manic money printing episode in global history. In the process, exponentially increasing debt, slowing economic growth, reducing living standards, and creating the most gaping wealth disparity since feudal times. In which, the “1%” enjoying 90% of the world’s assets, are “coincidentally” the very same people receiving Central bankers’ “free money.” That said, I’ve learned to live with that fear due to the knowledge that by having protected myself with real money, there’s no monetary crisis I can’t survive – and likely, thrive – through. Which isn’t so bad, as even my deepest, darkest thoughts didn’t actually include the breakdown of America, no matter how bad times might get. Which, unfortunately, as of the last few weeks, is no longer the case.
Thankfully, modern information technology enables massive amounts of data and opinions to be circulated in real-time, as well as the accounts of rapidly unfolding events, in a world of nearly 7.5 billion people. Consequently, the “alternative media” – of which I proudly count myself an integral part – has exploded in size and influence in a short period of time, to the point that, in my view, the vast majority of traditional “mainstream media” will likely be gone within a few years. And in this country, perhaps a few months, after having thoroughly exposed not only its bias, but outright lying, during this historical Presidential campaign. Which, I might add, is far from over – as given everything I read, hear, and believe; let alone, what I learned from “coverage” of the BrExit, Greek, and Catalonian referendums last year; I believe with all of my heart that Donald Trump is winning as we speak, and will ultimately be victorious. In other words, I believe the people, written off by the “evil Troika” of Washington, Wall Street, and the MSM – not just here, but everywhere – are wising up to the damage the establishment has caused; the lies they are propagating; and the necessity of removing them form power, in “whatever it takes” fashion.
To that end, I promised myself not to digress from today’s extremely important topics, in pursuit of incremental election talking points. However, as the importance of preventing Hillary Clinton from winning is that important, I’d be remiss to, at the least, bring your attention to this heinous undercover report, depicting how the Clinton Administration has operatives around the country, doing everything they can to “birddog” Donald Trump, and incite violence at his appearances. There’s plenty more where that came from, but I’ll leave that to Zero Hedge, Breitbart, Alex Jones, and countless other freedom-focused websites to report. Which, cumulatively, have never had me more fearful of what may become of America if the monsters that have commandeered its government, as represented by Bill and Hillary Clinton, are in power November 9th.
As for me, I’ll stick to the financial arena, given that I have as much knowledge of the monetary dangers the world faces, as the political damages the aforementioned commentators are so deeply versed in. To which, I cannot more forcefully emphasize my repeatedly stated belief, as of early this year, that I don’t see it possible to escape 2016 without a catastrophic financial event. Which frankly, is no less likely no matter who wins the election; although, unquestionably, the short-term impact of a Trump victory would be more significantly more dramatic, given just how much it would shake up the establishment – including the market manipulators, who would be less “incented” to support stocks and suppress Precious Metals.
Per the title of my September 27th Audioblog, a “Trump victory equals BrExit times ten.” And trust me, if he does win, the equity carnage would spread throughout global currencies like wildfire, igniting the thermonuclear stage of the “final currency war” I first warned of nearly four years ago; particularly when China unleashes the “cataclysmic financial big bang to end all big bangs,” by dramatically devaluing the Yuan. Which, as I write, is already “trading” at a fresh six-year low. And if you think global military tensions are high now, just wait until the OPEC “production freeze” breaks down next month, as the daily news flow more than just suggests, but screams from the rooftops.
That said, the monetary “nuclear” implosion will unquestionably be “ground zeroed” around the Central bankers that fomented it, when they all, separately and cumulatively, go as “all in” as the Bank of Japan already has; the ECB nearly has; and the Fed knows it must proceed to if the inevitable end game has any chance at being delayed. Which, if it is, would, as always, be at the expense of the 99%, in the form of collapsing economic activity, surging inflation, and extreme political and social instability. Only this time, it would decidedly NOT include widespread financial market control, particularly Precious Metals. And oh yeah, if Donald Trump wins – or Italy’s Five Star Party, France’s National Front, Spain’s Podemos, and/or Germany’s Alternative for Deutscheland in the coming months – all manipulative bets are off.
As noted above – and frankly, for some time now – the statements emanating from bankers and former bankers alike, are getting so inane, it’s difficult to believe their days of destroying the Earth are much longer. Let alone, when beholding the catastrophic, irreversible, generational carnage they have only begun to create – as they haven’t fully detonated the “nuclear options” of all-out monetization; helicopter money; across-the-board negative interest rate policy; and likely, a handful of “last ditch efforts” so insane, even I cannot comprehend them. Only to say that likely, they will be “co-ordinated” with their government partners, like retirement plan cuts and/or confiscations; capital controls; “cashless societies”; and exploding tax rates. And by the way, if you think I’m kidding, take a guess who is “strongly rumored” to be the next Treasury Secretary if Hillary Clinton is elected. Wait for it…drum roll please…none other than Mr. Atlas Shrugged himself…Larry Summers!
Anyhow, if you think I’m being crazy or conspiratorial, simply read what I’m about to show you, of what some of the world’s most powerful bankers and ex-bankers are saying – starting with perhaps the two most powerful German bankers of our time, prior to current Finance Minister Wolfgang Schaeuble. Starting with Otmar Issing, the ECB’s first Chief Economist, who yesterday, espoused a handful of decidedly “un-unified quotes,” such as…
“One day, the house of cards will collapse. Realistically, it will be a case of muddling through, struggling from one crisis to the next. It is difficult to forecast how long this will continue for, but it cannot go on endlessly.”
“The ECB holds over €1 trillion of bonds bought at artificially low or negative yields, so an exit from the QE policy is more and more difficult, as the consequences potentially could be disastrous.”
“The decline in the quality of eligible collateral is a grave problem, and the ECB is now buying corporate bonds that are close to junk, so the haircuts can barely deal with a one-notch credit downgrade. The reputational risk of such actions by a central bank would have been unthinkable in the past.”
“It is essential and urgent: at some point in the future, Europe will be hit by a new economic crisis. We do not know whether this will be in six weeks, six months, or six years. But in its current set-up, the euro is unlikely to survive that coming crisis.”
And then there’s Axel Weber, President of the German Bundesbank from 2004 to 2011…
“Central banks have taken on massive interventions in the market. You could almost say they are now the central counterparties in many markets, the ultimate buyer.”
“Investors have been driven into investments they have very little capability of dealing with, a sure reminder of where we were in 2007.”
“I don’t think a single trader can tell you what the appropriate price of an asset he buys is, if you take out all of this central bank intervention.”
Of course, I’m far more focused what goes on here, given that not only are my Precious Metals investments priced in U.S. dollars, but that the Fed’s words and actions influence global monetary policy more than all other Central bankers’ combined. Thus, now that an LOL, November rate hike is officially off the table (5% money market odds, irrespective of Fed governors’ relentless exhortations that “all meetings are live”), isn’t it interesting that Vice Chairman Stanley Fischer, who abetted the Cartel’s early September PM raids by saying Janet Yellen’s Jackson Hole comments were “consistent with the possibility of two rate hikes this year,” gave a speech yesterday claiming it’s “not that simple for the Fed to coax interest rates higher in a world where an aging population, weak demand, and low investment may have undercut the country’s – and indeed the world’s – economic potential.” In other words, laying the foundation of the next Fed punt at the feet of the weak economy the entire nation knows is reality, and the demographic boogeyman which, correct as he is in its impact, can serve as the perfect, universal monetary easing catch-all.
However, Fischer’s “subtlety” was no match for Janet Yellen’s lunacy, in creating the next new hyperinflationary buzzwords – of the “high pressure economy” the Fed might need to “run” to offset the aforementioned “deflationary” effects. This, as this very morning, the year-over-year core CPI came in above the Fed’s supposed 2.0% “rate-hike threshold” for the eleventh consecutive month. In other words, a less than subtle hint that the aforementioned “nuclear options” are not far off. Frankly, mere weeks if the powers that be lose control of their market manipulations – which a Trump election would surely accomplish, amongst countless other potential black and “grey” swans.
My friends, these are historic times – politically, economically, socially, and monetarily. None of them good, I’m afraid, so it’s time to batten down the hatches, particularly ahead of what may well be the most inflactionary election in modern history. The bankers themselves are telling you what’s going to happen – let alone, if the rapidly spiraling political process forces their collective hands. Meanwhile, currency markets are in turmoil, whilst the physical Precious Metal market, on a global basis, has never been tighter; the COMEX “commercials” are actively short-covering; and with each passing day, the odds of “something” scaring the world’s masses into safe haven assets, en masse, grow larger and larger.
To that end, get ready for some very exciting product and service announcements from Miles Franklin; which, as it prepares for its 28th year of business, without a single registered complaint, aims to be your trusted partner in Precious Metals buying, selling, and storage.