The Coming Economic Collapse, Currency Induced Cost Push Inflation/Hyperinflation, Weimar Germany, Euro Collapse,
Zimbabwe Hyperinflation, Survival in Economic Collapse, World Economic Collapse, Dollar Collapse,
What Would Happen If the Economy Collapsed,The Coming Economic Depression.
Gold and Silver Will Protect Your Wealth.
Judging from the price action in gold, it seems as if all three factors that
are currently driving this market are gelling together into one powerful
inducement to buy the yellow metal. As discussed in my recent radio
interview over at King World News on the Weekly Metals Wrap, sovereign debt
fears originating out of Europe, inflation fears in China and elsewhere in
that region of the globe, and a continuation of the extremely loose monetary
policy currently in place by the Fed are producing a toxic mix for the bears
in the gold pit as buying momentum is driving them back as bidders ...
Continuing our exploration of why small business
isn't expanding and hiring: here are four more deeply pernicious
structural dynamics crushing small business. Yesterday I addressed this
issue in Here's Why Small Business Isn't Hiring, and Won't be Hiring;
Part II covers three other three systemic issues: 1. The real estate
bubble completely mispriced/overvalued commercial real estate; 2.
Financing is cheap to global Corporate America and costly to nonexistent
to startups and expanding small businesses; 3. Crony capitalism doesn't
like competition; it seeks monopoly or a shadow cartel, imposed and
maintained by the regulatory agencies of the Central State;
4. Overlapping regulation designed to suppress competition, benign
neglect/hostility from government bureaucracies obsessed with
self-preservation and lack of financing make it impossible to scale up a
success business in the real world.
Anything that can empower or
free us is removed, restricted or demonized, thus severely limiting our
innate and natural ability to heal, grow and flourish. At best we are
told we should restrict ourselves to applying band aids and hydrogen
peroxide. Anything more than this should be left to the professional
mind magicians and the grand keepers of the public myths.
Talk
of further Fed easing if the economy continues to weaken put gold
through the technical overhead resistance, driving the algorithms
bullish as gold sets up for $1600.
There is no question the
economy is going into a double dip which will be lower on the second
dip. Quantitative easing will continue with vigour.
Gold is setting up for the $1600- $1650 battle royal.
Regards, Jim
Jim Sinclair’s Commentary
Who needs nuclear weapons when you can simply downgrade and bust a country?
Ireland Bonds Downgraded By THE NEW YORK TIMES Published: July 12, 2011 Moody’s
Investor Service downgraded Ireland’s government bonds on Tuesday,
saying the country was likely to need another bailout before its
finances recover. The credit-ratings company cut the
bonds by one notch, to Ba1 from Baa3, to junk status, raising the
nation’s cost of borrowing money. The move was certain to
raise investor fears that the debt crisis overwhelming the Greek
economy would spread. Last week, Moody’s similarly cut Portugal’s credit
ratings, and the economies of Italy and Spain also were seen by
financial markets as vulnerable. “Ireland is likely to
need further rounds of official financing before it can return to the
private market,” In its downgrade, Moody’s said in its downgrade
assessment. It also cited “the increasing possibility that private
sector creditor participation will be required as a precondition for
such additional support,” in line with recent European Union government
proposals. “Although Moody’s acknowledges that Ireland
has shown a strong commitment to fiscal consolidation,” Moody’s added,
the “implementation risks remain significant, particularly in light of
the continued weakness in the Irish economy.” More…
Jim Sinclair’s Commentary
The Chinese and Down Under. A new concept in Riminbi (Yuan) dealings.
It’s yuan for the money for Twiggy Forrest Matt Chambers From: The Australian July 13, 2011 12:00AM
IN the
terrace room of Perth’s Hyatt yesterday, Yao Yudong, deputy
director-general of monetary policy at the People’s Bank of China, was
waxing lyrical about the “win-win” of China-Australian co-operation and
the potential for trading in China’s yuan. It was a
speech to the Chinese-backed Boao forum that was sprinkled with high
praise for Fortescue Metals Group chief executive Andrew “Twiggy’
Forrest. Mr Yao went on to reveal Mr Forrest’s plan for pricing
contracts in yuan and then turned to Mr Forrest, in the audience, and
said: “Would you please say something, chairman?” Mr
Forrest, who will become Fortescue chairman next week, got up chuckling.
“Thank you for the kind, generous and of course spontaneous
invitation,” he said. “And of course FMG’s commercial in-confidence transparency extends to all of you,” he told the laughing audience. More…
US
Federal Reserve minutes today communicated the discussion of QE3 by
members of the Fed open market committee at their most recent meeting.
The investing public is starting to awaken to the reality that QE3 is a
foregone conclusion. As you have so correctly stated, it will be QE to
infinity.
It looks like it will be sooner than later for the next QE event. We expect it to be from both Europe and U.S.
The
European banking meltdown is well on the way to a terrifying and
financially devastating culmination, much like the crisis of 2008 in the
US and Europe. This sovereign debt and banking crisis will lead to a
dropping out of the Euro by Greece and others and a new QE program to
purchase sovereign debt of the several countries which cannot and will
not repay their debt at face value.
This will be a clear debt
default. As is the custom, the Fed and ECB will provide liquidity to
attempt to keep the European economies and banking system from a
complete implosion.
If there was rationality and appropriate
appreciation, you would be declared a savior of many investors for your
early and consistent statement of the folly of governmental, banker and
investor behaviors and for your accurate predictions of the ultimate
outcomes.
A U.S. default would slam financial system: NYC mayor Bloomberg CIGA Eric
The
US’s ongoing default began in 1971 when it could no longer settle its
debts in constant dollar terms. As James Turk observes in his latest commentary, Government
spending has become an even bigger force in the economy than when the
US was on a war-footing during World War II. Never before has government
consumed so much of the private sector’s wealth creation. Printing
press is the only option without material reductions in big government
at this stage of the game. Any attempt to cut off the socialistic money
spigot will be met with social unrest. This is what the equity, silver,
and gold bears do not understand. Headline: A U.S. default would slam financial system: NYC mayor Bloomberg New
York City Mayor Michael Bloomberg on Tuesday said a U.S. default on its
debt "would have a catastrophic effect on our financial system" and
deal the still-mending city economy a "huge setback." Bloomberg,
a political independent who had flirted with a presidential run, said
in a statement the federal government must avoid damaging the nation’s
economy and its credibility around the world with a first-ever U.S.
default. Source: finance.yahoo.com More…
Small Currency Denominations Will Soon Disappear CIGA Eric
What’s
a real world consequence of QE(n)? Pennies, soon followed by nickels,
dimes, etc. become a hassle. The answer plastic and smart phone
electronic wallets, right? While both of those options take away the
short-term inconvenience/pain, neither address the root of problem –
currency devaluation driven excessive debt levels. A few observations: (1)
Today 97.5% zinc pennies do not cost more than cent to make. They may
look copper, but like many things in America, it’s mostly show for the
cameras. (2) The mint stopped producing 95% copper pennies in 1982. (3) The effects of currency devaluation are everywhere to be seen, but rarely noticed. Some Shops Do Away With Pennies More…
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