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Back in August 2011, a whopping five months ago, I was AMAZED when the Fed outwardly expressed its FEAR of global economic COLLAPSE by announcing an extension of its “ZIRP,” or Zero Interest Rate Policy, until “at least mid-2013.”  I have long espoused that Bernanke & Co. have never had a clue what they were doing, simply PRINTING MONEY in increasingly large quantities like his successor, Sir Alan Greenspan.  Lucky for the “Maestro,” he printed money when there was still a buffer to do so, before DEBT SATURATION set in, commencing the inevitable END GAME of financial collapse and hyperinflation.

August 9, 2011:  Fed Extends Super-low Rates Until 2013, May Use More Tools, 3 Members Dissent

Jim Sinclair invented the term “QE TO INFINITY” around five years ago, but Richard Russell had him beat when in 2002 he first penned the words “INFLATE OR DIE.”  Both represent the same concept, the mantra that has guided my investment decisions for the past decade.  Consequently, I have been 100% invested in Precious Metals for nine years, eight months, and expect this allocation to continue indefinitely, perhaps the rest of my life.

November 26, 2002:  Richard Russell on the Markets – “INFLATE OR DIE”

In recent weeks, fighting an endless torrent of PROPAGANDA about a fraudulent economic recovery (culminating with this week’s (Miserable) State of the Union speech, I have written of the inordinate amount of global “financial leaders” beggingfor increased MONEY-PRINTING in various forms.  Be it the Fed’s “swap facility,” ECB’s “LTRO” mechanism, Obama’s “mortgage forgiveness bill,” an increase in the EFSF, ESM, or IMF’s “rescue funds,” OVERT money printing has accelerated alongside COVERT mechanisms, with pleadings for more OVERT schemes growing more shrill each day.

You see, not only is the GLOBAL financial system on the brink of COLLAPSE, but it’s an election year in the U.S., the focal point in the saga of doom.  In other words, not only is the fate of the ENTIRE WORLD at stake, but Obama’s position as the “leader of the free world,” which I facetiously quote because the U.S. long ago forfeited its role as “leader” in lieu of the morally and financially bankrupt position of SLAVE OWNER.

Since the gold standard was abandoned in 1971, the nation’s “leaders” have destroyed America from the inside out, viciously abusing the Bretton Woods agreement by PRINTING MONEY to the point of debt saturation, i.e. “NO RETURN.”  America was not alone in this grand Ponzi Scheme, abetted by cohorts at the Central Banks of Western Europe, Japan, and China, but they were the ringleader.  As SLAVE OWNER to the world, it lorded over billions of unsuspecting people with the threat of depreciating the cancerous “dollars” it exported, allowing American jobs to be exported overseas in exchange for Central Bank purchases of U.S. Treasuries, keeping interest rates artificially low and encouraging spoiled, profligate American individuals, corporations, and municipalities to BORROW and SPEND.  Given the world’s tether to low U.S. interest rates via its ENORMOUS holdings of dollars and Treasury bonds, the same BORROW/SPEND Ebola virus spread the world round, at hyperbolic rates in the past decade when DEBT SATURATION set it, yielding increasingly minimal output gains with each dollar printed, per the two charts below from my January 20th RANT, “DIMINISHING RETURNS.”

No entities benefit more from MONEY PRINTING than banks, and once banking Cartel stooge Alan Greenspan took the Fed’s reigns in 1987, the sector’s profitability EXPLODED.  First via the tech bubble, next the housing bubble, and finally the all-encompassing DERIVATIVES bubble, banks earned TRILLIONS of illicit profits, particularly in the past decade after they commandeered the U.S. government and broke down Glass-Steagall.

In other words, just as DEBT SATURATION was approaching, the most indebted entities on Earth took over the government, likewise in Europe.  The global banking system was awash in debt of its own making, the inverse of sovereign nations, tricked into this terminal condition by their “masters” at Goldman Sachs, JP Morgan, and the like.  “Leverage cancer” proliferated in corporations, municipalities, and individuals, across all borders, with each new crisis treated with new DEBT and heighted SLAVEDOM to the increasingly malevolent United States of Corruption and Money Printing.

The financial “Tower of Babel” started crashing in mid-2008, just as the “Debt Saturation Phase Transition” line in the above graph went negative, and you can see what the line did afterwards, although scarily the graph was printed in late 2010, before the REAL money printing really began.  Today, that line is off the bottom of the charts, and pretty soon will depict a NEGATIVE $1.00 of GDP for each PRINTED dollar of additional debt.  Oh yeah, there’s a technical term for what happens when PRINTING MONEY turns from bad to really bad, and it’s called HYPERINFLATION.

The concepts of “Inflate or Die” and “QE to Infinity” are congruous to a crack addict needing more drugs, in higher doses, to survive.  The problem is he becomes sicker and sicker with each dose, and in the end always dies.  Per the graph above, the WORLD has reached the point where the increased doses are killing it, but it dares not stop for fear of an immediate fatal, heart attack (not to mention, election losses).  I do not blame Bernanke, Obama, or any single person or nation for the mess we are in today.  If Obama, for instance, had NOT bailed out GM and Citigroup, the system would have died three years ago, as it would have under Bush’s watch if Fannie Mae and Freddie Mac were left to die.  The Fed, ECB, BOE, BOJ, PBOC, and ALL the world’s Central Banks are in the same boat, “paying the piper” for the deal with the devil they made in 1971, when they collectively allowed the U.S. to abandon the gold standard with nary a peep of protest.

The financial disease of HYPERINFLATION has no cure, but fortunately can be avoided via common sense and preparedness, and most importantly, trading in your rapidly depreciating SCRIP for REAL MONEY, i.e. PHYSICAL GOLD and SILVER.

John Embry – Gold is the Cure to Epic Monetary Debasement

As noted above, I was floored when the Fed announced in August 2011 that it would maintain zero interest rates until “at least mid-2013,” essentially screaming its belief the economy will be weak for another two years.  And don’t forget, this was right around the time of the debt ceiling debacle, with U.S. debt sitting at $14.2 trillion, compared to $15.3 trillion today and likely $16.4+ trillion at year-end.

Today, with the government, bankers, and MSM relentlessly telling us the economy is “recovering,” the Fed decided that “mid-2013” is not enough, and thus that ZIRP will remain until “at least the end of 2014.”  It should be no surprise to students of reality, and certainly readers of this blog given my postings of comments from no less than FIVE Fed governors calling for additional stimulus, let alone the cries of half of Europe – including Portugal today – for endless, can-kicking, toxic bailouts.  But so it is, this “unexpected” announcement.

No QE3; ZIRP Extended Thru AT LEAST 2014 – Full December-January Statement Comparison

If there was ANY shred of doubt about the intention of the world’s financial “leaders,” or the REAL condition of the GLOBAL economy and banking system, it should be put to rest by this FOMC decision.  Today was the OVERT admission, by the world’s most powerful MONEY PRINTING organization, that “QE to Infinity” is cast in stone.  Hopefully you listened to Richard Russell’s advice in 2002, with the one caveat that “Inflate or Die” has now transmuted, via DEBT SATURATION, to “Inflate AND Die.”