Precious metals will appreciate for another decade, and this will prove to be a great investment opportunity. Along the way, there will be plenty of other opportunities. Many of them have to do with the destruction of the fiat ponzi.
On the Fall solstice the Federal Reserve will show their hand, and begin to implement further easing. How fitting that this will happen on the solstice! The pagan alchemists will grow their fiat from their tree of knowledge. Unfortunately for them the tree is not real and soon the world will know what this false worship will beget.
The dollar will be weakened further. Rates will be held low so that the Federal Reserve can make as much as possible when bonds come due. The Treasurie also needs this premium. With European bonds collapsing European investors will go to cash, and that means Euros, as dollars will not store wealth with Bernanke and Geithner at the helm.
So the EUR/USD will go to $2.00 during the next year, just as the Mark once did. Greece and other small States will leave the Euro, and this will make the Euro more expensive. This is will help keep US rates low, and will keep the dollar low too.
With the dollar dropping, oil will rise. Because the Euro will gain, Brent should come back to a more normal price vs. WTI. I think by late winter we could be looking at $150 per barrel. I think that due to price action of fiat, but also because of supply. OPEC is 'cutting' supply. What this really means is that OPEC has peaked production.
With supply dropping prices are set to increase, for oil and precious metals. This will squeeze the dollar. So the dollar is getting squeezed on all sides. Equity looks weak, and will not make real gains, but it will either rise marginally or trade sideways while the dollar flounders. This will provide perfect cover for finance to continue to loot the system with Keynesian policy.
Monetary solutions are QE. Fiscal solutions are Stimuluses. These measures will continue until the system falls apart. Once again, the fiat ponzi is getting squeezed from all sides, and it is only a matter of time before it explodes.
Monday, September 12, 2011
Friday, September 9, 2011
Blame Europe
Apparently America can not handle blame. Fault is never owned here. It is always an outside force that causes the problem. Interestingly Europe is beginning to blame the US, so I guess it is just the nature of the status quo now. Either way, the game is almost over, and people can not handle the problem.
The news is reporting that today's equity downturn was caused by Europe, when any able minded individual should understand the problem is the system. The system. The system is the problem.
There is no difference between the European system and the US system. They are the same. Greece needs to pass austerity, for a bailout. California needs to pass austerity, for a bailout. Here we point to the fact that US bonds are low as evidence for demand, but the Federal Reserve is buying all the bonds, which negates that theory. In Europe the ECB has been stepping in and buying the Greek bonds. It is the same solution to the problem.
This weekend may be the weekend where a European country implodes, and it looks to be Greece. If that happens all European banks will be affected directly, and because of that the rest of the world will suffer. If that happens, European investors will turn to the Euro instead of the bonds, Jim Rogers has already recognized this. I recognized it months ago, as I started saying that when Europe implodes, the EUR/USD would go to $2.00.
This in part is because the dollar is weak and will get weaker. Obama's "Jobs Program" will spin $4.47 trillion after the banks use fractional reserve lending to spin the loans. Bernanke will use new tools to monetize the debt.
Also, the Swiss have backed the Euro. This may have been stupid, but it was a monumental decision. The Euro is not strong, but it looks to take the benefit of a European collapse. Of course, the major beneficiaries are precious metals and other commodities. Look for precious metals to sky rocket from here on out.
The news is reporting that today's equity downturn was caused by Europe, when any able minded individual should understand the problem is the system. The system. The system is the problem.
There is no difference between the European system and the US system. They are the same. Greece needs to pass austerity, for a bailout. California needs to pass austerity, for a bailout. Here we point to the fact that US bonds are low as evidence for demand, but the Federal Reserve is buying all the bonds, which negates that theory. In Europe the ECB has been stepping in and buying the Greek bonds. It is the same solution to the problem.
This weekend may be the weekend where a European country implodes, and it looks to be Greece. If that happens all European banks will be affected directly, and because of that the rest of the world will suffer. If that happens, European investors will turn to the Euro instead of the bonds, Jim Rogers has already recognized this. I recognized it months ago, as I started saying that when Europe implodes, the EUR/USD would go to $2.00.
This in part is because the dollar is weak and will get weaker. Obama's "Jobs Program" will spin $4.47 trillion after the banks use fractional reserve lending to spin the loans. Bernanke will use new tools to monetize the debt.
Also, the Swiss have backed the Euro. This may have been stupid, but it was a monumental decision. The Euro is not strong, but it looks to take the benefit of a European collapse. Of course, the major beneficiaries are precious metals and other commodities. Look for precious metals to sky rocket from here on out.
Thursday, September 8, 2011
Helicopter Time
Bernanke front ran Obama's speech today, once again confusing the rational consumer. Yes, there will be more stimulus, and easing to infinity. Take that to the bank.
The first thing that happened after Bernanke took his foot from his mouth was a sharp rise in the DXY. This is because in order to move the market, money needs to unwind. This was the short against the dollar unwinding, so that it can be put to use buying things like gold, silver, and oil.
Bernanke is such an opportunist, isn't he? He crept into the spot light ahead of Obama's Jobs Program speech, a speech I started writing about one and a half years ago, only to say what we already knew: he will keep rates at zero forever, come hell or high water.
The world is mired in paradox. The world has no liquidity, yet it has too much liquidity. Unemployment is outrages, but food stamps keep America fed. Europeans can only vacation for two weeks instead of four; oh the humanity! Soon the system will collapse. Will it be one year? Or two? It matters not. The policie has stayed the same for decades: keep the people fed, and loot the system by the back door. The house is almost empty.
So, to reiterate, all things will now come unhinged. Precious metals and oil will fly, the dollar will die, and the Euro will levitate while European bonds crash in value. Bernanke will print $447 billion and loan it to the Majors, they will use fractional reserve lending and turn it into $4.47 trillion, and M2 will rise sharply. This will crater the value of the dollar, and, well, you know the rest.
The first thing that happened after Bernanke took his foot from his mouth was a sharp rise in the DXY. This is because in order to move the market, money needs to unwind. This was the short against the dollar unwinding, so that it can be put to use buying things like gold, silver, and oil.
Bernanke is such an opportunist, isn't he? He crept into the spot light ahead of Obama's Jobs Program speech, a speech I started writing about one and a half years ago, only to say what we already knew: he will keep rates at zero forever, come hell or high water.
The world is mired in paradox. The world has no liquidity, yet it has too much liquidity. Unemployment is outrages, but food stamps keep America fed. Europeans can only vacation for two weeks instead of four; oh the humanity! Soon the system will collapse. Will it be one year? Or two? It matters not. The policie has stayed the same for decades: keep the people fed, and loot the system by the back door. The house is almost empty.
So, to reiterate, all things will now come unhinged. Precious metals and oil will fly, the dollar will die, and the Euro will levitate while European bonds crash in value. Bernanke will print $447 billion and loan it to the Majors, they will use fractional reserve lending and turn it into $4.47 trillion, and M2 will rise sharply. This will crater the value of the dollar, and, well, you know the rest.
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