Very interesting times we now live in, the financial system is running out of options very quickly and “blowing up the world” seems to be the only final option. I know, this sounds grandiose and dire but let me explain.
This past week we finally saw some very big volatility in global stock markets. I say “finally” because it has been almost 3 years of a steady grind upward where all drops were “aborted” and volatility kept to a minimum. This changed … “something” has changed. We are now red for the year in the closely followed Dow Jones and actually approaching “bear market” territory on the Russell 2000. European bourses have also been very weak and took out some important support levels this past week.
So what has changed? First, the dollar has had a spike upwards in its biggest rally in 4 years. I believe this to be a result of the Fed “only” printing an extra $10 billion (soon to be zero?) per month versus the previous $85 billion per month. This “lack of extra liquidity” has affected the dollar market (I believe short term) and also upset the leverage in the stock market. On a side note, one of Apple’s suppliers went into a “secret bankruptcy” this past week and the reason for this bankruptcy has been “sealed” by the court. How can this be? Apple is doing great so why would a supplier have a problem? Could it be that this supplier was on the wrong end of some sort of hedge or derivative? I think you can bank on this as the explanation, little else fits AND could be swept under the rug so neatly!
Volatility and stress is back and now being felt and seen plainly in Europe. The euro as an inverse to the dollar has been quite weak. In what would have been “heresy” 10 or more years ago, the calls for a very real and very large “QE” are being heard throughout Europe. RBS and Bank of America were quoted in The Telegraph titled, Dam breaks in Europe as deflation fears wash over ECB rhetoric – Telegraph that deflation is taking over Europe. This very well may be but the flip side of the coin are all the sovereign nations where (understated) debt is at or above the banana republic threshold of 100% debt to GDP ratio. You can now see it as clear as day, “inflate or die” and in either case there unfortunately will be no middle ground.
Another area to look at is oil, the price has cracked well below $90 per barrel for both WTI and Brent crude. Why would this be with all of the unrest and potential production damage caused by warring factions? Zero Hedge put out a great piece on Friday with an explanation, Why Oil Is Plunging: The Other Part Of The “Secret Deal” Between The US And Saudi Arabia. As I had written about several weeks ago, we are witnessing the U.S. classic playbook in the run up to war.
If you recall, I wrote that standard operating procedure prior to war is to make your opponent weaker financially by hook or by crook. The U.S. has strengthened the dollar and pushed the ruble into new low territory. The price of oil has been pushed down which affects two foes, both the Iranians and Russians. Iran has a breakeven cost for budget purposes of $140 per barrel and Russia budgeted $100. They are being squeezed in the hopes that Syria can be finally toppled without Iranian or Russian interference, I believe this to be a faulty plan.
This of course is all about a gas pipeline that Syria, Russia and Iran do not want as Arab oil and gas will compete with Russia’s production in Europe. I believe this “plan” to be faulty because the Chinese will bankroll the Russians no matter how low oil goes. I also believe this may be THE very last deal where the Saudis work hand in hand with the U.S. They want Assad gone and at long last have the U.S. doing their dirty work in Syria, what will happen if or when Assad does fall? Do the Saudis really want “cheap oil”? No, no more than Russia or any other producer. Will the Saudis stand with the petrodollar when derivatives are blowing up and taking the financial system with them? Again, no. It is clear the financial power of the U.S. is waning, will Saudi Arabia hang on or will they trade their allegiance toward the rising Chinese? I still personally believe they will not only switch sides but it will be this particular announcement that historians will look back upon as THE watershed event of the decline of American hegemony.
Another big newsworthy area last week was the spread of Ebola. “It couldn’t reach our shores” we were told. It has. Our borders are open, flights from West Africa continue to land here and the virus apparently created and patented by the U.S. is coming home to roost. Fast forward 2 or 3 months, how likely will you be to get on a plane? Or go to a restaurant or shopping mall, grocery store or anywhere else for that matter if it means becoming infected? Connecticut has already declared a state of emergency where your civil rights are no longer and the state can quarantine you if they wish? Ask yourself this, why 5 years ago were 100’s of thousand “hermetically sealed” casket liners stacked up outside of Atlanta? What could they possibly be used for …other than disposing of bodies with “the plague”?
The situation we are now in financially and economically was known about years ago, it just wasn’t known how far down the road the can could be kicked. Now, the ruse all around the world is beginning to collapse and as I have said for the last several months …something or someone will need to be “blamed.” A war, a plague, a computer hack attack, a “un” natural disaster or whatever will be pointed at as the cause for the financial system’s collapse when in fact the table is now in the process being kicked over purposely. The hope in my opinion is that when everything collapses, the public will be more interested in the future and getting back up and running rather than protesting what got us here. Oddly, if the coming collapse can be blamed on an Ebola plague, protestation and violence will be much less than otherwise. Who will risk contracting Ebola by joining protests? What is for sure is that either left alone or “pushed” over the edge, the current ship in its current form is going to mathematically sink. “Blame” will come, the only question being “on what” and the extent of the following reaction. The rest of the world is becoming fully aware of this which is why the demand for gold has increased so dramatically, I will talk about this tomorrow.
Bill, in the past you have mentioned interest in miners, does that still stand? If markets crash, and gold even goes up, will the miners go up or crash? In every prior gold increase, miners have gone up 100% of the time, but is this “one” time different? Unbelievably strange times we are witnessing. No one knows what anything is worth, or what direction anything, will go. Wow.
gold in the ground will have value.
I remember a documentary by Jesse Ventura on those “containers” in Georgia that you mentioned. This is getting down right scary. Cleary if that much planning went into this, it is another “inside job” planned well in advance as opposed to naturally happening.
Given a mass outbreak or even fear of one, not only will people not go out, but the economy will be crushed. If factories don’t have workers, goods arent produced, paychecks aren’t paid, goods aren’t bought, productivity crashes and the economy implodes along with tax revenue resulting in complete chaos. There will be a run on everything. Might be a good time to start think about hunkering down.
“time” is now becoming a very important commodity.
Can US govt just come in and take that valuable gold in the dirt since their very survival will depend on the gold?
not if it is in foreign soil.
With WTI oil at less than $85 and natural gas less than $4, how can the fracking production of oil and natural gas survive for long? Won’t this lead to the collapse of production? Don’t you think the Russians, with help from China, will outlast this attempt at blatant manipulation of the oil price? Is this just a game of chicken? The world is FUBAR.
The Chinese will not let the Russians run out of capital in my opinion, they are too important an ally in the “Art of War”.
Bill, I love your thoughts!
Whether Ebola is real, man made, or simply a False Flag – it does not matter. The one thing we do know is that our government will never let a good crisis go to waste. We can bet TPTB are planning on forcing all of us to get their weaponized vaccinations and forcing a new digital currency on us. After all, while we are quarantined for who knows how long, we will need a way to pay our bills. Could this not absolutely kill the price of gold and silver for the foreseeable future?????
Why not? Wouldn’t it be extraordinarily deflationary?
why not what?
Sam said Ebola is highly deflationary (best guess), which make sense, then asked if metals would go down therefore in that scenario, you said “no” without any further elaboration, which I was hoping to elicit, by asking you, “why not…could they go down…due to ebola…with it’s high deflation potential”.
OK Red, let’s assume it is deflationary because no one works, gets paid, distribution stops etc. etc.. What does this mean to the U.S. Treasury? It means no revenue… so an already broke entity becomes “broker” and it becomes public. What does this do to the value of the currency they issue (yes I know the Fed issues not Treas.)? My point is this, a deflationary collapse will expose the dollar for what it really is. The dollar went higher in deflation in the 1930’s only because gold went higher and they were interchangeable until 1933 …when the dollar was devalued significantly against gold. It was not the dollar being revalued higher in the 1930’s, it was gold and then the dollar had to be devalued. It is the same situation today only much bigger and the devaluation must also be much bigger. The deflation will be against gold not the dollar, the dollar will by necessity devalue to provide the ability to “pay off” debt, if not the system dies. Do you understand this now Red?
You once again nailed it. What better way to control the violence following a collapse then to have people be fearful to gather in public places due to the Ebola outbreak.
There is no question that all this was planned a long time ago but the masses will believe that it was the result of Ebola that sank our economy. The main stream media and the sheeple will proclaim that nobody could have seen this coming.
Unfortunately, I have had to give up my efforts to awake others since my wife and all my friends think that I am becoming delusional and even have gone as far as recommending a good “psychiatrist”.
What angers me the most is that the vast majority of people will never know what hit them and will be looking to TPTB who caused this mess in the first place for solutions and will embrace the tyranny and the loss of individual rights that is sure to follow.
I really fear for the life of my kids and what world they will be forced to live in.
…they fear for your sanity now …they will be asking for your help later. Great question, “who could’ve seen this coming”?
Yeah AK ain’t it the truth. My friends think I’m all wacko, well specifically that I’ve been sucked into the darkest recesses of the internet. And if I ever told them that I have been careful at times about revealing my identity (I say some damning things about TPTB in certain places) they’d think I’m absolutely nuts. And from their perspective, I can totally empathise with their views of me. My friend who I tried to convince to buy silver, and it’s gone down since, I tell, “yeah they managed to kill the paper price” and then she rolls her eyes, and I say that I will be vindicated, and she says, “yes Mark, I’m sure you will…”. Kinda funny.
Having said that, sometimes we can go a little overboard on the predictions of imminent mass doom. In all these years it hasn’t happened yet despite Harvey preaching it’s just around the corner (always). And the recent interview of Koos Jansen by Turd was very good and down to earth, not making any wild claims without a solid basis in his own empirical original research, kind of the opposite of Harvey. He revealed that silver is actually CHEAPER in Shanghai than in London, and it is only because of a 17% VAT that it appears more expensive over there. There is almost a “glut” of silver in China.
Regardless, the fundamentals of what us wackos are saying is sound and the system will collapse at some point; just be prepared for it to go on longer than you expect.
I believe your statement that Ebola is a product of the USG and they planted it in the world. I would appreciate seeing your proof. I’m certain you have it-please share.
I believe I first saw it in a Zero Hedge piece 2 or 3 weeks back that Ebola virus was patented. Here is a link, there are others and it is clear there is a patent and it is man made http://beforeitsnews.com/health/2014/08/why-does-the-cdc-own-a-patent-on-ebola-invention-2544874.html . Whether or not true and “owned” by CDC, will anyone riot during a pandemic? Do you understand my point on this? Financial markets could collapse and people would be more worried about not dying than the fact their capital evaporated.
I understand you all too well – Too bad millions of others won’t see your post. Maybe someday. Keep publishing the truth, Bill.
thanks Robert, by then it will be too late. I re posted the previous comment because I forgot to post the link, it is now included.
You got news of why Harvey’s BlogSpot has gone?
Google took his site down Friday citing a “court order” they will not show him.
Well that’s MOST peculiar.
he obviously struck a nerve somewhere.
Regarding Ebola, this may interest you:
From 17:40 you see an example of genuine Ebola victims.
Compare this to the NYT footage from the current “outbreak” in West Africa and the young athlete “dying”:
When the Rothschild influence on all markets and governments is neutralized.
Then precious metal prices will rise. That will be as close to never as you can get.
The enormity of their wealth and influence, bribery, manipulation and assassination
is something no one as yet wants to take on. Problem, reaction solution. They created
the methodology and they run it right down to weaponized weather. So say Kaddish
for humankind (Jewish prayer for the dead). Yogi Berra is wrong. The fat lady has
sung and its officially over. You people just don’t realize yet.
Bummer because when you wrote… “Fast forward 2 or 3 months, how likely will you be to get on a plane? Or go to a restaurant or shopping mall, grocery store or”….. I started thinking about the cruise I had booked some time ago for our anniversary that sets sail in just under 2 months. Now, even if we can fly there and get on board… with likely lots of other Americans and Europeans as well as the staff from 60 numerous countries… Do I really want to risk it. Then add to that the 4 island ports of call and a return flight home. I mean a cruise matters not in the grand scheme of things but still…. imagine the effect this will have on even that industry….. on every industry.
sorry Rich but this looks like it may be the case.
bill, i am always looking for a reason the whole fiat ponzi scheme can continue. I thought once the USA/FED/Bullion Banks gold leasing was exposed, a.k.a. force majeure, that would be the end of it. however, now it looks like the BOC is getting into the gold leasing game. doesn’t it seem like this can extend & pretend the fiat currency scheme longer that the hard money people can stay solvent? see attachmenthttp://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20141012000053&cid=1203
thanks for all you do, dave
Os there any way to see the 29 other comments from earlier pages?
yes, scroll down and click “older comments”.
I didn’t see the older comments clickie.
I mean I see it now. Thanks for the help. haha