In this excellent video, Dont-Tread-On.Me’s Chris Duane discusses his view that the most money will be made by astute investors AFTER the collapse of the US dollar. [Read more...]
The ECB’s grand bond plan is now in jeopardy after Italian voters rejected EU conditions. Italy’s electoral earthquake is “a catastrophe for the euro and the European Union”, according to Luxembourg’s foreign minister, Jean Asselborn.
During the past four years, whenever the euro has declined significantly versus the U.S. dollar, German investors have fled to the safety of gold and been rewarded. Historically, when the Euro has declined by 8% to 20% since the start of 2008, gold in local currency Euro terms has risen by 14% to 41%, compounded annually.
So far the majority of demand for gold in Europe has been from more conservative German investors and savers due to their knowledge and experience of inflation and hyperinflation. As the Eurozone debt crisis escalates, demand will be seen across the European Union and not just in Germany. [Read more...]
Submitted by Morris Hubbartt:
If the implosion of Lehman could only get the dollar to 89.11, is there really any hope for the bulls now? I don’t think there is. I’ve labeled the dollar chart the “Triple Hammer Chart”, because I see 3 powerful chart patterns, and all of them are very bearish for the dollar.
Silver is setting itself up for a nice rally. The set-up is very similar to last fall. At the bottom of the chart, note the bullish breakout of the Aroon indicator. Silver is my favorite asset in the precious metals group, for adding fresh risk capital. The Bollinger bands are tightening, and that is usually followed by an explosive move. [Read more...]
By SD Contributor AGXIIK:
America will soon suffer a horrible reset. That’s inevitable.
But the people of this country and their unique nature, with the resolve to roll up their sleeves, deal with the reset, and get back on to a sound hard asset backed currency (even if they have to dig it out of the ground with their bare hands) will reestablish a sound economy, like the one embodied in the best elements of the Constitution and Bill of Rights along with the beliefs and morality that existed before the banksters came to rule the land. The present day currency cargo cult will come to an end.
I have optimism in that. But until we go cold turkey on a century of debt and take the cure, these things will not happen. The longer we wait, the worse the reset will be.
Submitted by Stewart Thomson
I refer to gold bullion as “Queen Gold”, and the US T-bond as her secret agent James T. Bond. At some point, Sir James is going to outlive his usefulness to your queen, and a great bear market in bonds will unfold.
Specifically, I believe that the pressure put on all fiat currencies by the global tidal wave of QE, will make it appear that hyperinflation is a “done deal”. I don’t think you are going to experience full hyperinflation in this crisis, but you’ll get something very close to it.
As that happens, central banks around the world will likely begin raising rates aggressively, to combat the severe institutional loss of confidence in all fiat currencies. So, should you hold & buy gold now, or wait until 2015? The answer is that you should buy now. [Read more...]
Legendary gold trader Jim Sinclair sent subscribers a shocking and MUST READ email alert last night regarding the possibility that the dollar as reserve currency will enter the initial stages of hyperinflation by mid-year, and the effects the debasement of the dollar will have on gold.
Sinclair states that by midyear of 2013 the US Federal Reserve will have to make a decision in order to keep the US bond market which is US interest rates at the low levels that have been promised until employment has made a sustained recovery and that The Fed’s defense of the US bond market is demanded by the huge pile of original and old OTC derivatives that still haunt the monetary system as specific performance contracts with any financing floating in cyber space. This could drop the US dollar below .7200 to .5600 on the USDX in a short period of time.
Sinclair states that the effects of the Fed’s increased pace of quantitative easing will lead to severe cost push inflation, a derivative of hyperinflation running from mid 2013 through 2017, and that This will be the entrance to the second phase of the gold market ascendancy. Gold got to $1900 on threatened systemic failure. Gold will go to $3500 and above on pure monetary fiat currency concerns.
Jim Sinclair’s full MUST READ alert on the imminent cost-push inflation/hyperinflation of the US dollar due to QE∞ is below: [Read more...]
Chris Martenson of PeakProsperity.com says, “We have an economy that requires constant exponential growth . . . that won’t happen. We’re on an unsustainable course.” Martenson says the next 20 years will look nothing like the last 20 years. He predicts, “The crisis really is going to belong to the people who don’t see it coming.” Martenson believes, “Global growth will never return to its former glory days.” The days of cheap natural resources are gone. Martenson says to go along with that phenomenon, “The risks are piling up in the financial system. . . . The Federal Reserve is printing, printing, printing . . . we’re going to have a world class currency crisis.” Given the current situation of a broken money system and dwindling natural resources, Martenson says, “I don’t see how you avoid a hard landing at this point.” Join Greg Hunter as he goes One-on-One with Chris Martenson. [Read more...]