Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold Watch Out as Price May Be Staging New Momentum Base In Preparation For A Big Move Upwards - 18th May 21
Why the Demand for US Real Estate Licenses May Soon Fall into a Sinkhole - 18th May 21
Semiconductor Equipment Maker ASML Is at the Center of the Global Chip Shortage - 18th May 21
Could This Be The Hottest Investment Sector For 2021? - 18th May 21
TESLA Tech Stock Bubble BURSTS! Stock Price Heading for CRASH to below $400 - 18th May 21
The Most Exciting Biotech Stock Of The Year? - 17th May 21
Gold Mining Stocks Fundamentals - 17th May 21
Junior Gold Miners Should be Rallying – What’s Holding Them Back? - 17th May 21
Stock Market - Should You Be In Cash Right Now? - 17th May 21
Learning the Financial Markets - 17th May 21
INVESTING IN HIGH RISK TECH STOCKS - ALL OR NOTHING - 16th May 21
Is Stock Market Selling Madness About Over? - 16th May 21
Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
Budgies Birds of Paradise Indoor Grape Vine Singing, Chirping and Flying Parakeets Fun 3D VR180 UK - 16th May 21
Wall Street Roiled by Hot Inflation Data: Is This REALLY “Transitory”? - 16th May 21
Inflation Going Stag - 16th May 21
CHIA Coins After 1st Week of Plotting 140 Plot 14tb Farm. Crunching the Numbers How to Win - 15th May 21
Tips to Create the Best Cross-Functional Teams - 15th May 21
Gold: Lose a Battle to Win the War - 14th May 21
Are You Invested in America’s “Two-Hour Boom” Fast Shipping Stocks? - 14th May 21
Gold to Benefit from Mounting US Debt Pile - 14th May 21
6 Solid Signs You Should Have Your Smart Device Repaired Right Away - 14th May 21
Ways to Finance Your Business Growth - 14th May 21
Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
How Much CHIA Coins Profit from 100 Plot 10tb Farm? Hard Drive Space Mining - 13th May 21
Stock Market Bulls Getting Caught in the Whirlwind - 13th May 21
Legoland Windsor Mini land and Sky Train Virtual Tour in VR 360 - UK London Holidays 2021 - 13th May 21
Peak Growth and Inflation - 13th May 21
Where’s The Fed? Watch Precious Metals For Signs Of Inflation Panic - 13th May 21
Coronavius Covid-19 in Italy in August 2019! - 13th May 21
India Covid Apocalypse Heralds Catastrophe for Pakistan and Bangladesh - 13th May 21
TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
Gold Price During Hyperinflation - 12th May 21
Stock Market Extending Phase Two? - 12th May 21
Crypto 101 for new traders – ETH or BTC? - 12th May 21
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

One Giant Cluster Ponzi

Currencies / Fiat Currency Sep 22, 2014 - 10:31 AM GMT

By: Dr_Jeff_Lewis

Currencies

“The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.”
-H. L. Mencken

Recently, The U.S. Treasury ramped up war games via financial sanctions aimed at Russia. The EU is part and parcel to the operation. These interventions are a continuation of the age old warfare referred to as the “currency wars”.  Jim Rickards’ recent book on the topic chronicles the use of this tactic. 


In many ways, the U.S. Federal Reserve was spawned in the spirit of interference and intervention before and during World War I. 

The more things change the more they stay the same. 

Technology has made large financial trusts both more efficient and more fragile. However, electronic security infrastructure has never been tested in true world sovereign crisis. 

And we know that there is a massive lack of redundancy underlying the systems that fuel our just in time “modern” existence. From basic price discovery in securities of all types to the card machines that run fuel pumps and the credit lines that pay the tankers 

We are indeed skating over the thin ice. 

Of course, lurking further below the surface is the ability and willingness - from academia across the political spectrum - to print what it takes to keep the banks alive - in the spirit of the domestic popular good. 

At a certain point war creates enough anxiety that panic becomes part of the narrative.  Many believe that can't happen because the system has become too adept at protecting the true hidden story, the real interests. Or that the rules can be changed - perpetually.  

Think about the events leading up to Lehman...

Pick any bank today, apply true GAAP, or real life accounting standards...and you get another Lehman moment.  

The financial elite, the media, and a large portion of the political class truly believe that we can print whatever and whenever we want without consequence. And that we should always do more?

Hence the direct printing trial balloons released last week by "Foreign Affairs"; to wit:

To some extent, low inflation reflects intense competition in an increasingly globalized economy. But it also occurs when people and businesses are too hesitant to spend their money, which keeps unemployment high and wage growth low. In the eurozone, inflation has recently dropped perilously close to zero. And some countries, such as Portugal and Spain, may already be experiencing deflation. At best, the current policies are not working; at worst, they will lead to further instability and prolonged stagnation.

Governments must do better. Rather than trying to spur private-sector spending through asset purchases or interest-rate changes, central banks, such as the Fed, should hand consumers cash directly. In practice, this policy could take the form of giving central banks the ability to hand their countries’ tax-paying households a certain amount of money.

The government could distribute cash equally to all households or, even better, aim for the bottom 80 percent of households in terms of income. Targeting those who earn the least would have two primary benefits. For one thing, lower-income households are more prone to consume, so they would provide a greater boost to spending. For another, the policy would offset rising income inequality.

The powers that be have all the bullets anyway. And our collective intelligence has been dummied down through the years of easy money and free comforts. 

We need war to, politically and literally (in terms of Treasury note collateral), justify more printing. 

With the real economy on life support, it is just a matter of time. 

When the bond market begins to roll over, to the financial mainstream's shock and horror, institutions will finally begin the desperate hunt and return to non-paper safe haven collateral.

This is where paper ’securities’ are replaced with physical. The intangible will be squeezed into to the tangible. 

The biggest banks are well positioned to take advantage of a massive move higher in either metal. Ownership of secured metal unencumbered is tiny. It is worse than unpopular. Eventually, some one has to be willing to sell for all the dollars. 

Maybe you get an influx of new investors initially; those who hang on the desperate belief that this time will be different. 

But most of the influx of new investment demand will be of the pure safe haven variety. It will come out of fear - fast and furious. 

At what price will the largest holders - the very institutions that hold or control the most - be willing to sell? 

Following that, it is most likely a moot point. The metals go 'no bid' as a matter of domestic or international security. 

Simultaneously, the greatest wealth transfer will occur not by the confiscation (not of precious metals) but the trillions of dollars of low hanging fruit in the form of pensions, retirement accounts, money market funds, and certificates of deposit. 

Maybe they give the illusion of a choice, as a way you can support the next war effort to fight the financial terrorist from the Far or Middle East. 

There isn't enough out there to call in any official capacity. 

Precious metals will merely be at the top of the pyramid, above the myriad of whatever is physical and isn't tied down. 

The flipside to infinite dollars will be the endless search for something to trade them for.   Ultimately, the dollar loses purchasing power because a credit freeze (eventual reality) will force a flood of government spending to keep the masses quiet. 

Helicopter euphemisms were created intentionally. 

The Treasury and Fed are so enmeshed that we are politically beyond the point of nationalizing. You can be sure that the main issues will be shrouded by the drums of war, if not actual bombing, and a cascade of false - one great giant false flag. 

That is the great tragedy. The ultimate paradox.

We have access and the wherewithal to accomplish and achieve, to expand upon the luck of the previous two centuries and to expand the moral circle without desperate and reactive intervention. 

What we have now, in large part the result of the great consolidation of power by the few via the abuse of yet another fiat reserve currency, is a massive ponzi giving rise to false flags everywhere you look, from disease, to technology, government and, especially, a bought and paid for political system. 

Prices will go up when they are called in to make the transition. Nothing can be done about it.  The damage will not be reflatable. We will come out on the other side unguided. 

It is just a matter of time and a matter of how imaginative an individual can be about preparing or envisioning the way this breakdown would likely manifest. 

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2014 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in