Deepcaster: Biggest Bubble About to Burst!

bubblesSubmitted by Deepcaster:

“Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system.  The system remains still in the throes and aftershocks of the 2008 panic and the near-systemic collapse, and from the ongoing responses to same by the Federal Reserve and federal government.  Further panic is possible and hyperinflation is inevitable.   What continues to unfold in the systemic and economic crises is just an ongoing part of the 2008 turmoil.  All the extraordinary actions and interventions bought a little time, but they did not resolve the various crisesThat the crises continue can be seen in deteriorating economic activity and in the panicked actions by the Federal Reserve, where it proactively is monetizing U.S. Treasury debt at a pace suggestive of a Treasury that is unable to borrow otherwise. -John Williams, ShadowStats

It had to happen. And now it has begun. The very biggest bubble in financial history has begun to deflate. And over the next few months, we expect that deflation to accelerate and morph into a bursting. [Read more...]

Jim Willie: The Gold Climax Event

Jim Willie goldBy Jim Willie, GoldenJackass.com

The USFed stated publicly in early 2009 their desire to pursue an Exit Strategy. The Jackass on repeated occasions over three years ago refuted and contradicted their claimed path on monetary policy restoration to normalcy.
There is an Exit Strategy, but it is evident in the East. The Eastern nations are assembling a Eurasian Trade Zone and a BRICS central bank (aka Development Fund) with which they will exit the USDollar global reserve standard. In doing so, they will not require to fill their banking systems any longer with toxic USTBonds.
The end of the USDollar as global reserve is near, visible in tangible form
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Fabian Calvo: Housing Market Manipulation: A Trillion Times Worse than Enron

Real Estate investor Fabian Calvo says, “Trust me; there are enough troubled assets for the Fed to be buying much more than $40 billion a month- It’s all about manipulation.” Calvo says, “In essence, they are creating another bubble.  I believe in 24 to 48 months, they are going to pull the rug out again, and we’ll see prices go down when rates go up.” Calvo predicts, “The Fed balance sheet will likely be $5 trillion in toxic assets by the end of 2014.” Calvo thinks what is going on behind the scenes will one day come to light, and it won’t be pretty. Calvo thinks the mortgage rate forecast will eventually go up, but the Fed will suppress rates as long as it can. Calvo says, “It’s kind of like Enron. When it falls apart, then you realize what level of corruption and deceit was really taking place. . . . It’s a trillion times worse than Enron.” Join Greg Hunter as he goes One-on-One with Fabian Calvo. [Read more...]

Paper Bonds Are AAA Rated, But Physical Gold, Silver, & Oil Are Risk Assets?

imagesGuest Post by Bill H.

Can a barrel of oil “default”?  A bushel of wheat?  Gold or Silver?  Of course not but these are, in today’s upside down backwards world considered “risk assets”.  How whacked out have we become?  Sovereign governments that just 20 years ago would have been taken out back to the financial “disciplinary woodshed” are considered AAA rated or close to it, but physical commodities are risk assets.

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Eric Sprott: Real 2012 US Deficit $6.9 Trillion- Not Reported Anywhere By The Public Press!

sprottIn the midst of the latest epic cartel paper gold and silver raid this week, legendary precious metals expert Eric Sprott sat down with The Doc for an exclusive, MUST LISTEN interview. 
In one of his best and most shocking interviews ever, Eric discusses the latest gold and silver raid, his take on the platinum & palladium markets, the Bundesbank’s recent gold repatriation request and the correlation with massive physical gold buying in Asia, and his view on how the endgame of the Western financial/ debt crisis will play out.

Sprott stated that the Treasury Department’s 2012 GAAP budget deficit report was an astonishing $6.9 Trillion, and this has not been reported in 1 single major news outlet!  He also stated that the US government may be exporting German gold from the NY Fed to China, and that despite their recent apparent success, he expects that one day soon the cartel will be brought to their knees simply by traders standing for delivery of physical metal.

Eric Sprott’s full MUST LISTEN audio interview with The Doc is below: [Read more...]

“James Bond’s Golden Gun” – Stewart Thomson

imagesSubmitted 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...]

Jim Sinclair: Treasury Bond Bubble Will Not Pop, Fed Will Simply Increase QE

bubblesJim Sinclair has sent an email alert to subscribers tonight regarding the Treasury bond bubble.  While many in the precious metals community believe that the T bond bubble will spectacularly bust and collapse in the near future due to the US’ unsustainable debt, Sinclair states that the Treasury bond market cannot collapse as long as the Fed continues purchasing US debt via QE to infinity

Sinclair states that quantitative easing will continue to increase in size by the Fed to meet the size of US bond offerings, and that US interest rates will not rise substantially unless the Fed ceases its QE program.

Essentially Sinclair is stating that interest rates will continue to manipulated at an artificially low level by uneconomic buying of T-bonds by the Federal reserve governor typing on a keyboard, and that the pace of QE will keep pace with the pace of the US budget defecit/ funding gap, until which point the US dollar faces a collapse in the confidence of the currency itself.

Sinclair’s full alert is below: [Read more...]

Past & Future Speculative Bubbles – What They Indicate for Gold and Silver’s Coming Speculative Mania!

bubblesSubmitted by GE Christenson, DevientInvestor.com

Bubbles start slowly and then accelerate to unsustainable highs (on large volume) that are largely created by greed and fear but not fundamental evaluations. Bubbles generally follow the “Pareto Principle” where approximately 80% of the price move occurs in the LAST 20% of the time.
Assuming the 80/20 “rule” and the phase 2 price change ratio of approximately 5, what could happen if gold and silver rise into another speculative bubble?

Silver began its uptrend in November 2001 at $4.01 and gold began its move in April 2001 at $255. Silver rallied to nearly $50 in 2011, and gold also rallied to a new high of about $1,900 in 2011. Assume that both surpass those highs about mid-2013 and accelerate into phase 2 thereafter. Using these assumptions, phase 1 for silver would measure 12.5 years and phase 2 could last until approximately late 2016 – early 2017. If we assume that phase 1 was a move from $4 to $50 and that represents 19% of the total move, the high could be around $250. The ratio of phase 2 ending price to beginning price would be 5:1 – reasonable.

Indications for gold suggest a similar end date and a phase 2 bubble price of perhaps $9,000 per ounce. The ratio of phase 2 ending price to beginning price would be 4.7:1 at $9,000.

 

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Jim Willie: Gold Standard Will Return, Everything in Paper is Going to Hell!

Jim Willie is the editor of the “Hat Trick Letter.” He has a PhD in statistics and crunches the numbers on things like gold, currencies and bonds. Jim Willie says, “Gold is the anti-bubble. . . . It is the response to the biggest bubble in the history of the modern world, and that is Treasury bonds.” It was recently reported that the Federal Reserve is buying 90% of all Treasuries. To that, Willie says, “The supply of gold is lacking and demand for Treasuries is evaporating. It’s that simple.” Willie thinks the global economy will not get better because, “. . . they have no solutions, and they are praying they can keep this going.” Like it or not, gold is going to make its way back into the monetary system. Jim Willie contends, “The gold standard will return because gold will be the last asset left standing. Everything in paper is going to go to Hell.” The transition will be very painful. Willie says, “We have a climax bust coming for bonds, currencies and the banking system because they are all interrelated.” Join Greg Hunter as he goes One-on-One with Jim Willie. [Read more...]

Greg Mannarino: MOTHER OF ALL COLLAPSES IS IMMINENT!!

In his latest MUST WATCH update, Greg Mannarino states that we are only months away from the BURSTING of the US Treasury bond bubble.

As SD has pointed out repeatedly, Mannarino states out that the nations who have funded the US deficit over the past 10-20 years such as China and Japan are backing away from US debt, and the Federal Reserve has become the lender of last resort.
Greg compares the chart of the DJIA during the equities bubble with the current chart of the 30 year bond.  The 30 year has been rising in an unsustainable uptrend as the Federal Reserve is buying US debt like its going out of style.  Greg states that the free market will take over the manipulation of the bond market by the Fed, and the FREE MARKET WILL inevitably pop the bond market bubble blown by the Fed.

Mannarino states that when the bond bubble bursts (he believes this is only months away), faith will be lost in the entire fiat monetary system and we will see the MOTHER OF ALL COLLAPSESGreg states that all of the fiat monetary system cash will flow like a tsunami into the only safe haven assets remaining; gold, silver, and oil
Gold and silver prices will be absolutely staggering due to the collapse in the bond bubble, which will be the final nail in the coffin of the US dollar.
You must become your own central bank today by exchanging your fiat Federal Reserve notes into physical gold and silver.

Got PHYZZ??

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