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ECON GLOBAL WARNING - Egon von Greyerz
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  1. #1
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    1 GLOBAL WARNING - Egon von Greyerz



    “Sic Transit Gloria Mundi” (Thus passes the glory of the world). This phrase was used at the papal coronations between the early 1400s and 1963. It was meant to indicate the transitory or ephemeral nature of life and cycles.

    As we are now facing the end of a major economic, political and cultural cycle, the world is likely to experience a dramatic change which very few are prepared for. Interestingly, the peak of economic cycles often coincide with the peaks in climate cycles. At the height of the Roman Empire, which was when Christ was born, the climate in Rome was tropical. Then the earth got cooler until the Viking era which coincided with the dark ages.

    THE PROBLEM IS “THE ECONOMY STUPID” AND NOT THE CLIMATE

    Yes, of course global warming has taken place recently as the effect of climate cycles. But the cycle has just peaked again which means that all the global warming activists will gradually cool down with the falling temperatures in the next few decades. The sun and the planets determine climate cycles and temperatures, like they have for many millions of years, and not human beings.

    The climate activists are spending their efforts on the wrong issue. The big disaster looming for the world is not climate change but “the economy stupid” (phrase coined by Clinton).

    So let’s instead look at the real coming disaster that the world needs to focus on and a number of facts that are self-evident even though very few are aware of them.

    Instead of worrying about global warming, which we humans cannot effect, we should instead issue a GLOBAL WARNING about the coming economic cataclysm so that the world can be prepared for the extremely serious problems that will hit us all in the next few years.

    Below I outline a potential scenario for the next 5-10 years:

    BIGGEST ECONOMIC DISASTER IN HISTORY

    The world is heading for an economic disaster of a magnitude that is much greater than the 1930s depression. There is really nothing to compare with in history since the world has never been in a similar situation before when every single major economy is at risk.

    GLOBAL DEBT WILL KILL THE WORLD ECONOMY

    Never before in history have all major countries lived above their means for such an extended period. And never before has global debt been almost 4X global GDP.

    $2 QUADRILLION DEBT AND LIABILITIES

    In addition, unfunded liabilities, like medical care and pensions, are at least $300 trillion globally. If we add gross derivatives of $1.5 quadrillion, which are likely to turn into real debt as counterparties fail, the total debt and liabilities are above $2 quadrillion.

    DEBT AT 30X GLOBAL GDP CAN NEVER BE REPAID

    $2 quadrillion is almost 30X global GDP. Who is going to repay this debt? Certainly not the current generation which has incurred most of it. And certainly not future generations which will neither have the means, nor the inclination to pay for the sins of the previous generation.

    DEBT IS GROWING AT AN EVER FASTER RATE

    Most major economies are continuing to spend money they haven’t got and thus to print money and expand credit at an ever faster rate. The US for example has increased debt by $800 billion since June. As the US economy falters, annual deficits of $1-2 trillion will increase manifold in the coming years. And when the banking system comes under pressure, which is happening right now, money printing will accelerate at an ever faster pace. As the global economy falters, most major countries will see deficits and debts rising quickly.

    NEGATIVE RATES – A RECIPE FOR DISASTER

    Negative rates are a disaster for the world. Over $17 trillion debt now carries negative interest. Firstly, it kills the incentive to save. A fundamental economic principle is that savings equal investments. The world cannot grow soundly with investments financed solely by debt or printed money. With no savings, most banks do not have funds to lend to businesses. Thus investments will slow down dramatically. Negative rates also lead to investors chasing ever riskier investments to get a higher return. Also, pension funds will not achieve adequate returns to cover outstanding liabilities.

    DEBT AND ALL BUBBLE ASSETS LIKE STOCKS AND PROPERTY WILL IMPLODE

    Like the climate virtually all asset classes are overheated. The bubbles that the credit expansion has created will implode in the next few years together with the debt that created the bubbles. Central banks around the world will make a desperate attempt to save the world economy by printing unlimited amounts of money.

    ALL CURRENCIES WILL GO TO ZERO – DEFLATION WILL FOLLOW HYPERINFLATION

    As money printing accelerates, paper money will become worthless and a depressionary hyperinflation will hit the world. Hyperinflationary periods on average last for around 1-3 years and are followed by a deflationary implosion of all asset values in real terms. At that point substantial parts of the financial system will cease to function properly or go bankrupt.

    GOVERNMENTS WILL LOSE CONTROL

    Before new financial and political systems emerge, there will be social upheaval and unrest. Criminality will be widespread as desperate and hungry people will do what they can to feed themselves and their children. In many countries, immigrants will be blamed for the misery of the people. Right and left wing radicals will fight immigrants. There are likely to be periods of anarchy as governments lose control. I do not believe that an elite will control the world at that point. The disorderly unwinding of asset bubbles and the world economy will be uncontrollable.

    GLOBAL MARKETS ON THE CUSP OF CRASHING


    The above scenario could start at any time. In many respects it has already started. The world will only be aware of the next phase when global markets start the first severe phase of the coming secular downtrend. We could see this already in October which is a notorious crash month. Or it could start as late as in early 2020. We will also start to see increased pressures in the financial system including problems in many European banks as well as US banks.

    Once bubbles burst, the course of events could be very rapid. The above scenario could all happen over a few years and probably not more than five. This doesn’t mean that the economy will start recovering rapidly in five year’s time. It just means that markets and the worst problems reach a bottom. But after that the world will crawl along that bottom for many, many years.

    There is no absolute protection against this scenario since it will hit all aspects of life and virtually all people. Obviously, people living off the land in remote areas will suffer less whilst people in industrial and urban areas will suffer considerably.

    The best financial protection is without hesitation physical gold and some silver. These metals are critical life insurance. But there are clearly many other important areas of protection to plan for. A circle of friends and family is absolutely essential.


    https://goldswitzerland.com/global-warning/

    *disclaimer for Dennis. Egon vaults gold but you likely can't buy from him as he only deals with high net worth customers with a 250K minimum position.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  2. #2
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    There are likely to be periods of anarchy as governments lose control. I do not believe that an elite will control the world at that point. The disorderly unwinding of asset bubbles and the world economy will be uncontrollable.

    That is what I see as well. And we are seeing it already in many parts of the world from Hong Kong to Venezuela, Argentina and the Middle East. A lot of people in the U.S. fear the all powerful government and fear the police state. This is going to be way too big to contain as it unravels. Government is inept at best when things are going well recently and when things hit the $hitter it's even worse.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  3. #3
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    Yeah.

    "Nasty, brutish, and short" for a few decades at least. And NO ONE HERE will see the other end. we are ALL too old and slow. OUR natural responses will NOT be as fast as Han's, because we have been trained to NOT shoot first.
    RULE 1:
    THEY want you DEAD.

    PERSEC OPSEC COMMSEC Live or Die by your Tradecraft.


    Should I vanish, only one person here will know.

    The BEST in Life:
    To CRUSH your enemies.
    To see them driven before you
    To listen to the lamentations of their women

  4. #4
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    Quote Originally Posted by night driver View Post
    Yeah.

    "Nasty, brutish, and short" for a few decades at least. And NO ONE HERE will see the other end. we are ALL too old and slow. OUR natural responses will NOT be as fast as Han's, because we have been trained to NOT shoot first.
    Probably true. Those that do survive will be the ones who can quickly change to match their current situation.

  5. #5
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    Quote Originally Posted by night driver View Post
    Yeah.

    "Nasty, brutish, and short" for a few decades at least. And NO ONE HERE will see the other end. we are ALL too old and slow. OUR natural responses will NOT be as fast as Han's, because we have been trained to NOT shoot first.
    I think you will be amazed at just how many folks will adapt to shooting first once there is no legal penalty for doing so.
    "Dark and difficult times lie ahead. Soon we will all face the choice between what is right, and what is easy."
    Dumbledore to Harry Potter, Goblet of Fire.

    Luke 21:36

    A people who no longer recognize sin and evil, are not a people who will recognize tyranny and despotism either. Invar


    “During the course of your life you will find that things are not always fair. You will find that things happen to you that you do not deserve and that are not always warranted. But you have to put your head down and fight, fight, fight. Never, ever, ever give up!”

    - President Donald J. Trump

  6. #6
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    Much of this (along with several other contributing factors) were outlined in the very well put together study referenced in my tagline below. That study was first published in 2008 and then updated in 2014. We are now over halfway into the suggested 20 year timeline. If you have not yet looked at the "Crash Course" it is worth the read/listen.
    "People are best convinced by reasons they discover on their own."

    "The next 20 years are going to be completely unlike the last 20 years." - Chris Martenson (The New 2014 Crash Course)

  7. #7
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    It is amazing that there are people thAt would tank the economy of the entire country try because of their TDS
    Tax the rich, feed the poor, til there are, rich no more - Ten Years After
    Surely you're not saying we have the resources to save the poor from their lot. -JCSS
    Friend, you cannot legislate the poor into freedom by legislating the wealthy out of freedom. And what one person receives without working for, another person must work for without receiving. The government can't give to anybody anything that the government does not first take from somebody.

  8. #8
    Quote Originally Posted by night driver View Post
    Yeah.

    "Nasty, brutish, and short" for a few decades at least. And NO ONE HERE will see the other end. we are ALL too old and slow. OUR natural responses will NOT be as fast as Han's, because we have been trained to NOT shoot first.
    Reminds me of a combat shooting course taken decades ago... Visiting instructor told us, you don't wait for him to shoot first...you shoot first make his wife widow, not yours.
    I'm off to the coast..

  9. #9

    Agenda 21? The Plan To Depopulate 95% Of The World By 2030




    Agenda 21? The Plan To Depopulate 95% Of The World By 2030
    K.Heidenreich K.Heidenreich

    Follow
    US
    Mar 07 2017 posted to Conspiracy Theories
    The United Nations for some people conjure up images of a benevolent organization intended for the preservation of human life wherever conflict occurs, and of encouraging international cooperation and peace. Far from this peaceful image, however, is their little-publicized plan to depopulate 95% of the world by 2030. Thus, it is no wild conspiracy theory, but fact.

    And they called this UN plot: Agenda 21.

    Local Government Implementation of Agenda 21
    The local government implementation of Agenda 21 was prepared by ICLEI for the Earth Council’s Rio+5 Forum (April 13-19, 1997 — Rio de Janeiro, Brazil), for the 5th Session of the UN Commission on Sustainable Development, and for the UN General Assembly’s “Earth Summit+5” Special Session.

    United Nations plot to depopulate 95% of the world by 2030
    Agenda 21 was United Nations Department of Economic and Social Affairs, Division for Sustainable Development and was apparently developed as a means of restructuring the world population to lessen environmental impact and achieve an improved quality of life. One of the main ways of achieving this, however, is through encouraged and direct depopulation.

    As the UN put it:

    “comprehensive plan of action to be taken globally, nationally and locally by organizations of the United Nations system, government, and major groups, in every area in which humans have impact on the environment.”

    Although the language used in the original 70-page report that the UN published on Agenda 21 is vague and open to interpretation, as well as plausible deniability, the intentions in certain sections are clear. Depopulation to lessen environmental impact and stop overpopulation leading to instability.

    While this sounds like a positive thing in some aspects, mere policy changes at governmental level alone cannot create an environment where big enough changes can come about in a short space of time.

    Global epidemic: Huge scale depopulation in short time
    To achieve such huge scale depopulation with a relatively short deadline the actions were taken would have to be drastic. Either a world war, global epidemic or some kind of widespread starvation caused by massive crop failures would be the only likely ways of achieving this.

    The idea also raises the question of which 5% of the global population would be saved? Would these be those strong and hardy enough to survive the conditions placed on the earth that would kill off the remaining 95%, or perhaps the survivors would be chosen selectively from the elite and wealthy? And those who wake up to this evil reality will be imprisoned in FEMA camps before their death. Is this what they are built for?

    Whether such a plan could ever actually be successful is another matter. Plans of this size and scope would require the collusion and agreement of at least every first world government in the world, not to mention that the number of resources and effort that would have to go into keeping something like this covered up would be astronomical.

    To read the full document click here:

    www.un.org/…


    //////////////////////////////////////////////////////////////////////////////////

    HANNESBURG SUMMIT 2002 JOHANNESBURG SUMMIT 2002
    National Implementation of Agenda 21:
    A Summary



    https://www.un.org/esa/agenda21/natl...ublication.pdf

  10. #10
    So funny thinking that Satan will lose his game. Yes he will lose in the end and the fools who follow him have already lost. Christians will soon be killed on mass and many Luke warm ones will change sides.

    When things crash most will turn on their neighbors to take their food.

    Time to go fishing.

  11. #11
    Quote Originally Posted by Hfcomms View Post
    snip

    $2 quadrillion is almost 30X global GDP. Who is going to repay this debt? Certainly not the current generation which has incurred most of it. And certainly not future generations which will neither have the means, nor the inclination to pay for the sins of the previous generation.

    snip
    To whom is this debt owed?
    Once people default physical control of resources will be important.
    I guess a bank could auction a home or business and let the new owner be the one to physically remove the old owner.


    Quote Originally Posted by Hfcomms View Post
    snip

    GOVERNMENTS WILL LOSE CONTROL

    Before new financial and political systems emerge, there will be social upheaval and unrest. Criminality will be widespread as desperate and hungry people will do what they can to feed themselves and their children. In many countries, immigrants will be blamed for the misery of the people. Right and left wing radicals will fight immigrants. There are likely to be periods of anarchy as governments lose control. I do not believe that an elite will control the world at that point. The disorderly unwinding of asset bubbles and the world economy will be uncontrollable.

    snip
    As long as the left has control of the flow of information the plan is to blame the crash on Trump and the nationalists (perhaps that is why the demoscat field looks so wacky, to insure Trump and by extension his supporters are in place when the trigger is pulled). 2008 was a demonstration/test of the trigger mechanism. The 'nationalist bad' propaganda will be worldwide. Once the blame for the misery is firmly fixed the drumbeat of 'globalism is our only hope' will begin. Only those nation-states that give up sovereignty will be allowed access to credit and markets ... no one may buy or sell without the mark of globalism. This requirement to give up sovereignty in exchange for the privileged to participate in the new globalist society (buy or sell) will eventually work its way down to each individual human where a choice must be made.

    All is proceeding in accordance with the ancient prophesies.
    Matthew 13:49 So shall it be at the end of the world: the angels shall come forth, and sever the wicked from among the just, and shall cast them into the furnace of fire: there shall be wailing and gnashing of teeth.

  12. #12
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    To whom is this debt owed?

    The banksters, of course.

    And the government is their wholly owned subsidiary. Bankster greed is enforced at the point of a government gun.

    Or army, in the case of other countries needing a little strong-arming.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  13. #13
    Artikel auf Deutsch
    HIER Klicken
    MAD WORLD – CURRENCIES TO ZERO, BONDS MINUS ZERO
    August 22, 2019
    by Egon von Greyerz
    How far down the rabbit hole will the world go? It seems that just like in Alice in Wonderland, things are getting more strange by the day. If it continues at this speed, the rabbit hole will soon become a black hole without a bottom.

    Bonds cost money to hold, currencies are soon worth nothing and gold will reach at least $7,000 before it reaches $700.

    BONDS WITH NEGATIVE RATES WILL SOON TOTAL $50+ TRILLION
    Bubble bond markets are getting bubblier by the day as the $16 trillion bonds with negative rates grow to soon $50 trillion when the US, with its $22 trillion, joins the bond interest rate race to the bottom and below.

    And most currencies are already almost at the bottom, having lost 98-99% since 1971 and 80% since 2000. Stocks will soon join as they collapse from dizzy heights.

    Also strange is that Harry Dent still insists that his $700 target for gold will happen. He has a good track record in markets and therefore has a lot of followers. He argues that gold in US dollars hit resistance at $1,525 which is the bottom of the 2011-12 consolidation after the peak.



    Like many Americans as well as lazy analysts and journalists, Dent believes that the US is the epicentre of the world. This means that gold should be measured in the most corrupt and overvalued currency in the Western world. The dollar is not supported by one single economic fundamental but only by political and military might. With $22.5 trillion in debt plus another $21 trillion hidden in Pentagon’s and other expense ledgers, the US most certainly doesn’t deserve to have the world’s reserve currency. And that is likely to end in the next few years as the dollar falls out of bed.

    I doubt I will see $700 in my lifetime and I am not giving up for quite a while!

    AS MONEY, GOLD SHOULD BE MEASURED IN OUNCES OR GRAMMES – NOT IN US$
    Coming back to gold, it should not be measured in US dollars. Gold is a currency by itself and the only way to measure gold is by its weight. So gold should be measured in grammes or ounces. It is convenient for many people to translate the price of gold to their local currency whether that is pounds, euros, yen or dollars. But converting gold into a currency price is just a translation for convenience and not a measure of its value. As a matter of fact, when you translate gold to for example euros or dollars this gives you a clear picture of what has happened to the value of the currency and not to the value of gold.

    The table below indicates how much paper or fiat money has lost in value since 1971 and 2000 in various currencies. For example the dollar has lost 80% since 2000 and 98% since 1971 and the pound 85% and 99% respectively. Thus it is totally false to believe that it is gold that is going up in price when it is the value of paper money which is going down.



    GOLD IS CONSTANT PURCHASING POWER
    The situation is of course similar in many things we buy whether it is houses or food. Due to governments’ total mismanagement of the economy, all things we buy go up in price over time. But it is not actually the price which is going up but the value of paper money which is going down.

    Because over time, gold’s value is constant. With the exception of regular fluctuations, gold represents constant purchasing power. A good suit for a man has always cost one ounce of gold, whether it is today or 2,000 years ago.

    Governments never tell us this of course. They don’t let us know that by never making ends meet, they must print and borrow money constantly. And when you manufacture money that has zero value, this will automatically make all the money in circulation WORTH LESS. When big amounts of money are being printed, the money eventually becomes WORTHLESS. And this is where the world is heading now. With most currencies having lost 98-99% of their value since 1971, they will soon lose the remaining 1-2% and become totally worthless.

    MEASURING GOLD IN US$ JUST TELLS YOU HOW WEAK THE DOLLAR IS
    So to measure gold in one currency is only a convenient way to find out how much that currency has lost in value. But when you go one step further and apply technical analysis to that price move, as Dent does, we must be very careful.

    By measuring gold in dollars, Dent attempts to prove the point that gold stopped at resistance (see his chart above) and will now weaken to $700.

    Conveniently, he is not showing gold in Canadian or Australian dollars or in pounds or in Swedish Kroner or in Euros against which gold has made all-time highs. Nor is he showing gold against, for example, Argentinian Pesos against which gold is up 34,000% since 1999. With the Fed now panicking, US interest rates will be cut rapidly to below zero, and unlimited money printed, causing the dollar to fall rapidly and thus gold to surge in dollar terms.

    The fallacy in Dent’s argument is that gold has found resistance in one particular currency and will therefore crash. My point is that gold has made new highs in dozens of currencies so the resistance measured in US dollars is irrelevant and will represent no obstacle at all for gold. Gold will soon blow through the $1,525 Dent resistance and also later the high at $1,920.

    As predicted, gold broke the Maginot Line at $1,350 in June and has made a $150 move since June 1st. Bearing in mind the sideways gold market in the last six years, this is quite a strong 11% up-move. But it is just the beginning. Based on technical indicators, gold should continue to $1,650 to $1,750 without a major correction. That move could start as early as next week and take no more than 3-8 weeks.

    SILVER TO EXPLODE
    At the same time, we are likely to see the first big move in silver. I have for a while stated that we could reach $25 very fast. I wouldn’t be surprised to see silver get close to that level in the next couple of months.

    Longer term, silver is likely to go into the $100s. It is incredibly undervalued. But investors should be careful since silver is extremely volatile. Everyone can cope with the up-moves but few can handle the vicious corrections.

    I do realise that making these forecasts is a mug’s game but the long term oversold position of silver and the pent-up energy could easily make silver explode over the next few weeks.

    GLOBAL ECONOMY WILL BE CRUSHED BY $2 QUADRILLION DEBT AND LIABILITIES
    When the current global bubble bursts, it will be triggered by one specific event, even if that isn’t the actual reason but just the catalyst. For example, the fall of Lehman in 2008 was such an event although it wasn’t the reason for the 2007-9 financial crisis.

    The underlying reason for the current bubble will of course be the $250 trillion debt plus the $1.5+ quadrillion derivatives and global unfunded liabilities of at least $250 trillion. So a neat little sum of more than $2 quadrillion. Imagine the money printing required to stop that bubble rupturing.

    ACCOUNTING FRAUD IS RAMPANT
    During the final phase of a bubble era, many companies will massage or cheat in their accounting. The fall of Enron or Madoff were examples of companies cooking the books on a major scale. The whistleblower for Madoff was Harry Markopolos but for years everyone ignored his warnings. Markopolos has now gone public on an alleged accounting scandal at GE. He claims that GE has taken $38 billion long term deferred income upfront and that this sum is only the tip of the iceberg. Time will tell if Markopolos is right this time too.

    But what is certain is that we will see a lot of “creative” accounting or fraud which will be discovered in coming years.

    WILL DEUTSCHE OR COMMERZBANK BE THE CATALYST?
    So we could soon see a situation like GE becoming the trigger for the bursting of the current financial bubble. But more likely is probably a bank failing. We have discussed previously the precarious position of Deutsche Bank. The stock market has clearly identified Deutsche as a basket case. But the stock price fall of Commerzbank, the second largest bank in Germany, is even worse. Whilst Deutsche is down only 94% since 2007, Commerzbank is down 98.4%.



    BUNDESBANK AND ECB WILL PRINT €10S OF TRILLIONS TO SAVE BANKS
    The Bundesbank and the ECB will have to print an awful lot of money in a futile attempt to save these banks. It could easily be in the €10s of trillions or more. In relation to the German GDP of €3 trillion, it will of course create Weimar II which means massive hyperinflation.

    Venezuela is currently suffering from economic collapse and hyperinflation. But Argentina is not far behind with gold jumping from 65,000 pesos to 85,000 last week as the currency fell 25%.



    Gold in Euros or dollars could easily reach similar levels as hyperinflation takes hold in the West.

    SWISS REFINERS REPORTING SLOW PHYSICAL MARKET – LULL BEFORE STORM?
    Finally, a very important message about the physical market. All the Swiss refiners are reporting very slow business and much higher stock levels than normal. The Chinese and Indians are currently buying very little. In Thailand and Indonesia, people in the local market are taking profit and selling.

    So the run-up that we have seen in gold in the last 10 weeks is certainly not linked to physical demand at a high level. Our company and others in a similar position are seeing good physical demand from wealth preservation investors. But that obviously doesn’t make up for the drop in demand from China and India.

    Thus, this recent $250 price increase has come from primarily the paper market. ETFs have also been increasing their holdings but we can never be certain that they are actually buying physical gold.

    So we normally connect gold going down to paper market selling but we are now seeing the paper market also driving the price up. This could be seen as a negative in the short term, since paper buyers are not long term holders. But there is of course nothing stopping the paper market taking gold and silver a lot higher before a correction. That price move is actually likely as I have indicated above. And a higher price can easily attract higher demand for physical.

    So what we are seeing short term in the physical market is most certainly a late summer lull before the autumn storm.

    Investors buying physical gold for wealth preservation purposes should not be concerned about these short term anomalies in the market. Instead they should buy physical gold and silver while it is still available. Global risk is greater than ever and holding precious metals is the best life insurance you can hold.



    Egon von Greyerz
    Founder and Managing Partner
    Matterhorn Asset Management
    Zurich, Switzerland
    Phone: +41 44 213 62 45

    Matterhorn Asset Management’s global client base strategically stores an important part of their wealth in Switzerland in physical gold and silver outside the banking system. Matterhorn Asset Management is pleased to deliver a unique and exceptional service to our highly esteemed wealth preservation clientele in over 60 countries.
    GoldSwitzerland.com
    Contact Us

    Articles may be republished if full credits are given with a link to GoldSwitzerland.com


    https://goldswitzerland.com/mad-worl...ds-minus-zero/

  14. #14
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    When that little line on the chart starts to rise instead of fall then maybe. I don't sell gold only a gambler would buy here and vaulting costs money. And I could afford it. When that little line on this chart starts going up. Up means the opposite of the way it is going now. I am not Von Hindenburg but when the line on this chart changes direction from the way it is going then maybe.

    http://fred.stlouisfed.org/series/BASE

  15. #15
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    Quote Originally Posted by Hi-D View Post
    When that little line on the chart starts to rise instead of fall then maybe.
    The reason to hold gold is for wealth preservation in a collapsing fait environment. An ounce of gold a hundred years ago would of bought you a top notch business suit or a beef cow and that ounce of gold will do that today as well. Gold doesn't really go up or down it's the currency it's being priced in that is going up or down and usually down. Gold quoted in most other currencies other than the dollar is at or near an all time top right now. Gold and to a lessor extent silver personally owned and in your safe is your insurance policy similar to fire insurance or flood insurance on your home or collision with your car. You hope you never need it but it's there if you do. One of course can't buy insurance to cover the loss after the event and likewise one should have their core holdings of metals put away for the rainy day that you hope never comes but is looking more and more likely it's coming sooner than later looking at the macro picture around the world and in this country now.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  16. #16
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    Quote Originally Posted by Hfcomms View Post
    There are likely to be periods of anarchy as governments lose control. I do not believe that an elite will control the world at that point. The disorderly unwinding of asset bubbles and the world economy will be uncontrollable.

    That is what I see as well. And we are seeing it already in many parts of the world from Hong Kong to Venezuela, Argentina and the Middle East. A lot of people in the U.S. fear the all powerful government and fear the police state. This is going to be way too big to contain as it unravels. Government is inept at best when things are going well recently and when things hit the $hitter it's even worse.
    I used to believe that the federal government would still have control, but these days I am a bit more cynical.

  17. #17
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    Quote Originally Posted by Hfcomms View Post
    The reason to hold gold is for wealth preservation in a collapsing fait environment. An ounce of gold a hundred years ago would of bought you a top notch business suit or a beef cow and that ounce of gold will do that today as well. Gold doesn't really go up or down it's the currency it's being priced in that is going up or down and usually down. Gold quoted in most other currencies other than the dollar is at or near an all time top right now. Gold and to a lessor extent silver personally owned and in your safe is your insurance policy similar to fire insurance or flood insurance on your home or collision with your car. You hope you never need it but it's there if you do. One of course can't buy insurance to cover the loss after the event and likewise one should have their core holdings of metals put away for the rainy day that you hope never comes but is looking more and more likely it's coming sooner than later looking at the macro picture around the world and in this country now.
    My parents asked about this also. IE: holding silver. I told them it was a good idea to have some in the safe with cash. Since if the cash became worthless, they still had the ability to buy things or pay taxes for a short period of time. The ended up buying enough silver to cover a year's worth of government expenses and food. Nobody expected it to increase in value, but rather simply hold relative value to what they need to buy.

  18. #18
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    I see gold for big tickets items and silver for day to day. Until faith is lost in fiat the dollar is still the currency of the realm and when atm’s and banks don’t open cash will be king for awhile so one should probably have a month worth of cash in the safe if possible to cover expenses. Sooner or later it will become a lot more noticeable that the dollar is now rapidly losing purchasing power and that is when it all kicks off imo.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  19. #19
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    The problem with gold is that it concentrates so much value in a small package - which is of course one of its major advantages as well. I'd suggest fractional gold Eagles for those just getting started - you can get real gold in legal tender form (with a worryingly small face value of course) for less money up front with 1/10 or 1/4 ounce Eagles as a way of dipping a toe in the water so to speak. It does cost a bit more per ounce to buy fractional coins, bit IMO it is worth it. It's too hard to sell a one ounce Eagle even today in many places.

    For silver I prefer 90% dimes …

    ymmv of course.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  20. #20
    For gold: Canadian Maple leaf coins. 99.9% gold makes them more desirable. For silver: 1922-1923 silver dollars. Yeah they're a bigger amount, but since many less gifted people might have trouble distinguishing between old silver dimes and modern ones, the silver dollars would stand out as sufficiently different to be universally accepted.

  21. #21
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    For gold: Canadian Maple leaf coins. 99.9% gold makes them more desirable.

    The difference between .999 (Eagles) and .9999 (Maples) is pretty small. And if you must have 4-nines fineness, there is the Buffalo that is still a legal tender US coin (even though its face value is still $50.

    I do love me some silver dollars, always have (got my first ones when I was a kid and still have them), but silver dollars are only about .77 ounce in silver weight depending on condition. Given the premium for cartwheels, if you want a full ounce legal tender coin silver Eagles are likely a better bet, despite that pesky $1 face value. My guess is, even an ounce of silver will concentrate too much value for daily use/bartering, and therefore I prefer dimes. I'm betting that the learning curve necessary to distinguish between pre-1964 90% coins and post 1965 clad copper coins will be pretty steep.

    BUT it is your money, your choice, your consequences. Back when I was buying 90%, it usually came in at .20 to .40 cents per ounce below spot. To me it is worth having the silver already divided into manageable amounts. Again, YMMV. Just trying to explain my preferences and the reasons for them.

    And why is a 1 ounce US gold Eagle marked with a face value of $50? Do you know the current US Government official price of gold per ounce?



    Hint - it's currently $42.22/ounce, up from FDR's $35/ounce, which was in its turn (and after the gold EO) raised from the pre-1933 $20.67/ounce (all that from memory, correct the digits if I got anything wrong). Are you noticing a trend by chance? Care to guess what the NEXT official US price of gold just might be? If they seized it once, they can do it again - or at least try.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  22. #22
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    For those "jUSt getting started"

    Do not get started at this point. When the little line on the "base chart" starts going UP then you might think about it.

    Who owns the debt? http://www.thebalance.com/who-owns-t...l-debt-3306124

    A little clue, bankers work for the people who own the debt that we/US do not.

    Why would most of you tie up 1700 bucks in a oz. of gold? For insurance against a elite that has not "lost control" of this in a couple centuries? Haw many cans of beans will a oz. buy?

    The big buyer China which bought 100 tons since the beginning of the year now owns 83 billion in gold. Do you have any idea what the dollar trades in a day?

    If you are going to buy gold for the first time, wait for a time when their is actually inflation above the target. That's what the fed is trying but failing to achieve along with central banks throughout the western world.

    The most successful system in history. Same empire still has not lost control.

    http://www.bbc.com/news/business-40189959

  23. #23
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    Quote Originally Posted by Hi-D View Post
    Do not get started at this point. When the little line on the "base chart" starts going UP then you might think about it.
    And I might add never solicit financial advice on the Internet. Know what you know and why you know it, believe what you believe and why you believe it and then your never at a loss for what to do.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  24. #24
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    For the most part for buying PM's, one time to start is about as good as any other time. That is if you are buying just to protect your wealth. Obviously you would not buy PMs unless you had the rest of your ducks in a row first.

  25. #25
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    Yeppers, I for one would rather have $1500 in the bank at 0.1% interest than an ounce of gold in the safe.

    NOT!

    Naturally, YMMV. Your FRN$, your choice.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  26. #26
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    In this current fiscal environment it's not so much return on capital but return of capital. The banks feel that way as well forcing the Fed to step in with liquidity [QE] dumps into the system because the banks don't even want to lend to each other overnight. Gold and silver in your safe of course don't earn you interest but they are not losing value every day like fiat does and more importantly they have no counter-party risk. Your not depending on someone else to fulfill their contract like you do with equities and bonds, ect.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  27. #27
    For those holding off!

    SILVER HAS GONE UP ABOUT 40 PERCENT IN THE LAST SIX MONTHS. ARE YOU WAITING FOR 100 PERCENT BEFORE YOU BUY...

  28. #28
    Contemplate; if you will:

    Who is John Galt?
    Dosadi

    III


    My family & clan are my country.

  29. #29
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    That right there.

    Quote Originally Posted by China Connection View Post
    For those holding off!

    SILVER HAS GONE UP ABOUT 40 PERCENT IN THE LAST SIX MONTHS. ARE YOU WAITING FOR 100 PERCENT BEFORE YOU BUY...
    Is reason enough for a newbie not to buy.

    http://www.kitco.com/scripts/hist_ch...rly_graphs.plx

  30. #30
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    Silver is still selling at or in some cases below the cost of production. Every other hard asset is in an epic bubble including real estate, bonds and equities. The only hard assets not in a bubble are physical gold and silver. That should be all we need to know.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  31. #31
    Gold silver are just barter goods. Other barter goods might exchange better where you live like food or fertilizer, fishing goods and so on. Good to have a mix.

  32. #32
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    Barter is complex and cumbersome. Money is the intermediary that makes barter unnecessary, which is why people have used money for thousands of years - and often silver and gold have filled the role of money.

    Seems that lesson might need to be relearned in the near future, given the prevalence of MMT among AOC and her ilk.
    ===================

    https://www.goldmoney.com/research/g...ry-of-exchange

    Money and the theory of exchange
    By Alasdair Macleod
    Goldmoney Insights October 17, 2019

    Evidence mounts that the global credit cycle has turned towards its perennial crisis stage. This time, the gathering forces appear to be on a scale greater than any in living memory and therefore the inflation of all major currencies to deal with it will be on an unprecedented scale. The potential collapse of the current monetary system as a consequence must be taken very seriously.

    To understand the consequences of what is likely to unfold requires a proper understanding of what money is and of the purpose for its existence. It does not accord with any state theory of money. This article summarises the true economic role of money and how its use-value is derived. Only then can we apply the lessons of theory and empirical evidence to anticipate what lies ahead.

    Introduction
    Through a combination of economic theory and empirical evidence, it is easy to establish that changes in our economic condition will prove to turn negative in the next few years. We cannot with certainty establish the timing and scale; that is the province of informed speculation. But we do know that a cycle of credit always terminating in a periodic crisis exists and we can explain why. We know that it is a repetitive cycle of events, a new crisis is now due, and the misuse of money is at the centre of it.

    This time, the negative forces are unquestionably more violent than last time, threatening not just a recession, but something considerably more vicious. And anticipating, which we can do with total certainty, the statists’ monetary response to what we now know to be a forthcoming event, we can also say it will be met with a new wave of monetary expansion. The precedent was set by the Lehman crisis, when the greatest coordinated injection of money in the history of central banking was undertaken by the major central banks to buy off the consequences of previous monetary expansions. This one threatens to be even larger.

    Consequences begat other consequences. But, by and large, they have not materialised in the form widely expected. Following Lehman, monetarists expected the purchasing power of currencies to decline in unison, and to a degree they did. How much they have declined becomes debatable, because government statistics try to measure the unmeasurable and fail to produce satisfactory answers. With respect to both economics and money, the problem for the ordinary person is further compounded by governments and their agencies acting like the three wise monkeys. They see no evil, hear no evil, speak no evil. And hey presto! There is no evil.

    For a long time, those that determine what is best for us have been inhabiting another planet. They pursue economic and monetary policies that become more destabilising with each turn of the credit cycle. By statistical method they supress evidence of the consequences. Government finances benefited from the Lehman experiment with their expanding debt financed by the expansion of money and credit, which escalated with the interest cost conveniently suppressed. Government is all right Jack, so the little people, its electors, must be as well.

    The forthcoming tsunami of money and credit, which if recent history is any guide, will be through quantitative easing, providing finance for worsening government deficits and supporting the banks they licence. The little people might take a different view of the consequences for state-issued currencies, as the debasement unfolds. This article anticipates that alternative view by explaining what money is, its validity, and how a state-issued currency differs from true money, in order to inform readers ahead of events instead of learning the lesson in retrospect.

    The economic role of money
    For all governments the role of state-issued money is to provide themselves with funds by facilitating tax payments, provide seigniorage from its issue and to manage economic outcomes. This was not money’s original role and is not the way economic actors in the wider economy utilise it.

    Money’s proper role is to facilitate the exchange of goods and services in a world that works through the division of labour. It is itself a commodity, but with a specific function and suitability. It must be commonly accepted by economic actors, and for the purpose of exchange have an objective value; that is to say any variations in price during an exchange for goods must be viewed by both buyer and seller as coming from the goods side. This is the subjectivity in a transaction, the difference of opinion in price between exchanging parties, which must always be confined to the good or service being exchanged. It brings in value as a concept, which is conventionally measured in money under the assumption that money is the constant and all variations in values are in the goods.

    However, this common view is incorrect. With money acting as the facilitator for an exchange of goods the value of one good must be considered in relation to all the others an individual may desire. If you buy something, you are giving up the opportunity to buy something else, so personal preferences at any moment in time will set the value that an individual decides a good or service is worth, not its measurement in money. At that moment in time, if the individual values an item highly in his personal schedule of needs and wants, then he may pay the price asked or he may haggle for a lower price. But it must be understood he nearly always values it because he wants it, not because of the money-price. If price was the principal motivation for exchange, we’d all end up with useless items.

    Our needs and wants are therefore entirely personal and a medium of exchange must allow us to realise them by being objective in terms of its value for all transactions. It is what gives money its purchasing power. But that is for the purpose of transactions only; for other purposes, money is subjective in its value, its subjectivity wholly derived from its objective role as a medium of exchange.

    Understanding that money can be objective for the purpose of transactions while subjective for other purposes allows us to accept an apparent contradiction, that money has no price while having a price. It is also why people can hold different views on the value of money relative to goods while accepting it in return for goods. Some are content to hold it in quantity, while others dispose of it rapidly.

    If the public subjectively changes its general level of relative preference between money and goods, money’s purchasing power alters materially. If preferences for money increase, then its purchasing power will rise, which is expressed in falling prices for goods and services. If preferences for money decline, then its purchasing power also declines, leading to higher prices for goods and services. If all preference for holding a currency evaporates, it loses its objective role as money in transactions altogether.

    How money derives its objective value
    Money does not arrive at an objective value by accident. For everyone in a community, and for those that trade with it from outside, to accept it as money requires them to refer to their experience of it as money. Its subjective value, in this case the value ascribed to money prior to every transaction, must coincide with its objective value when an exchange takes place. Money’s subjective value is therefore drawn from experience of its recent history as money, which in turn is drawn from the more distant past.

    We may not consciously do this, but when you take a $50 bill or a £20 note from your wallet you know it is money and you know pretty much what it will buy. The subjective value of the money in your hand is central to its role for the exchange of goods, goods exchanged with a view to being consumed, while money is not. Money will continue to circulate for the purpose of future transactions and that is its sole purpose. If it lacks credibility as money it cannot perform this role, so that credibility, regarded subjectively in your hand, is vital to it. The Austrian economist von Mises called it a theorem of regression, whereby to prove its current validity to the user, its qualification as money theoretically links step by step back to the moment when the money became money.

    In the cases of gold and silver their role as money evolved from their prior value as commodities for other purposes before they become money. They were accepted as money because they had and still have value for other uses and possess the enduring qualities that allowed them to survive as media for exchange long after other rival commodities for that role were abandoned. They were selected as money by an evolutionary process decided by economic actors dividing their labour and accumulating material wealth. Consequently, they have both been used as media of exchange for five or more millennia, sometimes individually and often together.

    Silver lost out to gold in the ealy 1870s when Europe progressively moved onto a common gold standard, after the United Kingdom, the leading trading nation at that time, had set the gold sovereign as its monetary standard after the defeat of Napoleon. From 1873, silver’s price declined sharply following its general demonetisation in Europe and the gold standard reigned until the First World War.

    A gold standard meant that physical gold was represented in transactions by local currencies, which were free to be exchanged for gold by the general public at any time. Whether it was marks, pounds, francs or dollars, these bank notes were proxy for gold and therefore drew their credibility from it. A user making a subjective assessment of a gold-backed currency saw in a bank note a regression to gold’s value. It lasted, in America at least, until 1933, when President Roosevelt forbade the ownership of gold coin, gold bullion and gold certificates in America. The link with gold at $20.67 remained but citizens were unable to exercise it. The following January Roosevelt devalued the dollar to $35.00 per ounce.

    As money changed from gold through the medium of the dollar to just paper dollars, few saw anything amiss, because they were used to using paper dollars anyway. The government argued that gold confiscation was somehow necessary as an emergency measure in order to combat the depression, and it was only later that it became clear that far from gold convertibility returning after the crisis was over, it would be restricted to foreign governments and central banks.

    The only money permitted to circulate in America was the paper dollar and the people had no option but to accept it. It must also be noted that the public is normally slow to understand that there has been a fundamental change in how they should view money. It had become an article of faith that a dollar was a dollar. Everyone accounted in dollars, paid their taxes in dollars and maintained bank balances in dollars. The history of the dollar’s circulation appeared to confirm its validity.

    Now let us imagine that a government decides to introduce a new currency overnight. Without a measured regression to earlier values, the public would only accept it with difficulty. If the issuing government had good standing with its electors, that might help. But if the government is demonstrably not to be trusted with respect to monetary policy, the fact that it chooses to issue a new currency would be regarded by its citizens with disbelief.

    This has been confirmed in the few cases where this has happened. When the assignat failed at the time of the French revolution, it was replaced by the mandats territorial. It was originally set at 30 assignats. The mandats lost all purchasing power within six months. Attempts to introduce new replacement currencies in Zimbabwe have met similar fates. When people are forced to use a new currency when an old one fails, even at gunpoint they know its worthlessness because there is no history of a new currency as money. In the event the current monetary system fails, a government-contrived reset will almost certainly fail as well for this reason.

    For people in the eurozone the euro replaced national currencies on a ratio basis which were already circulating as money, so from Day One euros were accepted as money. The fact that its creation was planned long in advance and not born out of a crisis was also vital to its acceptability. In this respect euros were and still are different from instances where a completely new fiat currency replaces a failed predecessor.

    However, with today’s dollar-based system of pure fiat currencies, regression to earlier values cannot not give us a convincing reason for current values. The only regression is an implied one to the dollar, which does not resolve our problem. Currencies only retain a purchasing power because people are naturally unwilling to accept the consequences of the regression logic. This puts state-issued unbacked currencies at permanent risk of an unexpected loss of their role as money.

    The instance of a fiat currency collapse that people often refer to was that of the paper mark in 1923, but they are not usually aware of the sequence of events that led to it. In the nineteenth century, Bismarck unified all the German-speaking states, with the exception of Austria. Trading was under a gold standard and it was a remarkably successful exercise. But in 1905 Georg Knapp published his State Theory of Money, in which he argued that money should be a creation of the state, not private actors. It was an argument for a paper currency without the need for gold to back it; a licence for the state to fund itself through the expansion of the circulating medium.

    Bismarck used this latitude to equip Germany with armaments before the First World War, and when Germany lost, in post-war years printing of unbacked currency accounted for roughly 90% of government income, only 10% coming from taxes and trade tariffs. Consequently, the purchasing power of the papiermark fell rapidly under the burden of its expansion, until about May 1923 when the general public became finally convinced it was worthless. It led to the phenomenon of the crack-up boom, when everyone furiously dumped worthless marks for anything they could buy.

    The mark finally lost its ability to act as the objective value in transactions by November 1923, a process that only took that long because in Germany’s cash-based economy there was a perpetual shortage of paper notes to turn wages into goods.
    The relevance to today’s monetary condition
    The lessons from history and from the theory of exchange give us a framework for understanding how a second acceleration in the debasement of fiat currencies (the first having followed the Lehman crisis) is likely to affect their purchasing power and their status as circulating media. This article has highlighted some of the fallacies, such as money as a measure of value when the value of anything actually depends upon how it ranks in the schedules of the needs and wants of individuals.

    It has explained how money can have an objective value for the purposes of exchange while having a subjective value at all other times. We can draw the inference that as money fails to be a medium for valuation, it invalidates all statistical constructions and therefore the foundations of macroeconomics. We know that a government which issues its own unbacked state currency runs a continual risk that one day it will be deemed unsuitable and spurned by the public for the role of money.

    Against these difficulties, the state has the power of compulsion. It can prohibit the use of other monetary media, and it can ban the use of alternative stores of value, as President Roosevelt did with gold in 1933. In favour of state issued currencies, those with a long history of circulation will continue to be accepted for a time by a public always reluctant to discard them even after the evidence shows them to be unsuitable as money.

    Other than from the more obvious effects of increases in the quantity of money in circulation, the key to understanding that a money’s purchasing power can change rests on two foundations. The first is its subjectivity, which is not taken into account by policy planners who always regard money as a mechanism for objective valuation. While recognising the reality that exchange rates between currencies fluctuate, money’s subjectivity is an alien concept to them.

    The second pillar is changes in the public’s relative preferences between money and goods. At their extremes they can either afford a high value to money or destroy it entirely, irrespective of the quantity in circulation. It is here that the role of savers is important. Nations such as China and Japan have high savings ratios, and an expansion of the quantity ends up mostly being deposited in the banking system instead of being spent. Consumer prices rise less than they otherwise would, because the preference for holding money relative to goods has increased.

    The situation in countries where consumer credit predominates is very different. Among the general public bank deposits are already minimal, and expansion of money and credit ends up in bank balances mainly owed to foreigners, large businesses and purely financial entities.

    America and the dollar fall into this category. The bulk of deposits are due to large businesses and financial entities. Both, but the latter particularly, are highly regulated and by being forced to comply with accounting and financial regulations, have little option other than to retain deposits. To the extent they are trapped within the fiat currency system, they can only pass on their bank deposits to similarly confined economic actors. By a process of elimination, we know that the threat to monetary and financial stability must come from an accumulation of liabilities to foreigners.

    According to US Treasury TIC data, short-term liabilities to foreigners payable in dollars including deposits, treasury bills and other short-term negotiable securities in the banking system amounted to $5.39 trillion last July.[i] At the same time they owned $7.01 trillion of treasury and agency securities out of a total of long-term securities amounting to $19.76 trillion.[ii] Total foreign exposure to the dollar is therefore estimated at over $25 trillion on US Treasury estimates, about 120% of America’s current GDP.

    On any basis the dollar is significantly over-owned by foreigners, despite the common view in US-centric financial markets to the contrary. The reasons foreign governments and foreign-owned corporations own dollars are related to trade, or investment and speculation. Trade-related holdings are always justified so long as the dollar is the international reserve currency in which everything is priced. Therefore, if there is a contraction in international trade it follows that foreigners will turn net sellers of the dollar because their balances become too high. And if investment attractions wane, there is the potential for a multi-trillion disposal of bonds, equities and therefor the dollar as well.

    For the US Government, foreign selling of the dollar could create severe difficulties at a time when its budget deficit is rising, because without an increase in the domestic savings ratio, the government will then become dependent on an inflation of money and credit to fund its budget deficits. And as foreigners reduce their dollar holdings, its purchasing power will be certain to diminish, further increasing government costs in nominal terms. At the same time bond yields, representing the cost of funding for US Treasuries can only rise, despite attempts at interest rate suppression. Very rapidly, conditions which favour government borrowing can turn sour.

    Where the dollar goes, so do the other fiat currencies. Coordination of monetary policies at the G20 level ensures all currencies are to different degrees in the same boat. Sounder forms of money will be sought by the general public in all trading nations and we should expect a return to gold, silver and perhaps bitcoin, will be an early feature. The subjective value of the dollar will almost certainly be reflected in rising commodity prices, despite a credit-induced slump in business activity. And the slightest hint that the Fed will consider reducing interest rates to zero or even below will put all commodities into a permanent state of backwardation, driving up prices measured in dollars and its fiat cohort as well.

    Manufacturers will be increasingly squeezed by falling purchasing powers for fiat currencies, caught between rising input costs and accumulating inventories. Unemployment will rise, yet money will continue to be inflated by central banks tasked with funding escalating government deficits and rescuing insolvent banks. This has happened before with every credit crisis. Where the forthcoming crisis differs is the sheer scale of it this time.

    It is hard to see how a fiat currency system that has evolved from being cloaked in gold to be revealed as completely unclothed can survive a transition from abject complacency to systemic catastrophe. Extend and pretend will no longer work. Those that escape the worst of the damage will be the few who through a measured understanding of money and the theory of exchange know they must take early action to protect themselves and their families.

    They will also have learned that price is irrelevant, and its use as a guide to true values is mistaken. Far more important is the collective schedule of everyone’s needs and wants, which under anticipated conditions is bound to favour under-owned gold, silver and even bitcoin for those attuned to it.

    On the basis of a rational understanding of what money truly is and the limits of its objectivity to the act of exchange, those who act early and are not misled by the apparent cost of protecting themselves from the failure of state currencies when measured in the declining purchasing power of their fiat currency, will surely suffer least.




    [i] See ticdata.treasury.gov/Publish/bitype.txt

    [ii] See ticdata.treasury.gov/Publish/slt2d.txt


    The views and opinions expressed in this article are those of the author(s) and do not reflect those of Goldmoney, unless expressly stated. The article is for general information purposes only and does not constitute either Goldmoney or the author(s) providing you with legal, financial, tax, investment, or accounting advice. You should not act or rely on any information contained in the article without first seeking independent professional advice. Care has been taken to ensure that the information in the article is reliable; however, Goldmoney does not represent that it is accurate, complete, up-to-date and/or to be taken as an indication of future results and it should not be relied upon as such. Goldmoney will not be held responsible for any claim, loss, damage, or inconvenience caused as a result of any information or opinion contained in this article and any action taken as a result of the opinions and information contained in this article is at your own risk.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

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