RANTING ANDY – This week’s stock market collapse, set off by THE FEDERAL RESERVE’s ongoing reckless actions, is proof positive the TITANIC MOMENT I referenced this morning has been reached. No longer will OFFICIAL policy responses work AT ALL, and each day that passes the collective bankruptcy of the ENTIRE WESTERN BANKING SYSTEM will be exposed further to the light. Central Banks and politicians alike will propose exponentially more dangerous “solutions” to the problem, all of which will have the opposite effect, and NO LONGER will the unemployed and starving keep quiet while the welfare system melts down in front of them.
The system is not DYING, it is DEAD.
Per my RANT yesterday, “LESS THAN ZERO”, all that is left now is PRINTING MONEY TO MANIPULATE MARKETS – nothing more, nothing less. Watching YET ANOTHER day of all European markets down 5% but the Dow Futures held to -200 all morning (the PPT’s current pre-market line in the sand), and then, with the Dow down 530 points with just 15 minutes left, rocketing up nearly 200 points before closing down 390, shows just how rigged the stock market is. Not to mention taking down PAPER SILVER nearly $4/oz, or 10%, nearly all in the COMEX hours, amidst the most bullish possible fundamentals, and watching Treasury Bonds DRAMATICALLY surpass their 2008-09 highs thanks to the accelerated QE “Twist” announced yesterday.
I say this not to RANT, as I no longer own ANY stocks, just PHYSICAL metal that does not impact my brokerage account value, but to point out there is NOTHING left of the U.S. financial markets, in any way, shape, or form. The economy AND markets are non-entities, the former unable to support the livelihood of 300+ million citizens and the latter serving to destroy anyone that participates in it (except the TBTF banks, of course). If you put your money in the financial markets, you WILL lose it, no matter what you attempt, so you’d better be sure you have a significant inventory of PHYSICAL METAL before you decide to play in the rigged casino.
However, the reason I’m writing a SECOND RANT on my birthday (and third since last evening!) is EVEN MORE OBVIOUS EVIDENCE the system has died, never to be recovered to even THIS SUMMER’S CRISIS LEVELS. This evidence depicts EXACTLY what I have been writing about all these years; however, watching it unfold in front of my eyes is STILL difficult to comprehend. And that evidence is the COMPLETE AND UTTER COLLAPSE we are seeing in ESSENTIALLY EVERY CURRENCY against the dollar.
By now, I think EVERYONE understands the “dollar index” is the most misleading measure of currency value on earth. The dollar and Euro are just two of the more than 200 global currencies, but account for roughly 60% of this widely watched index, which only includes roughly six currencies in TOTAL. Watching this index is like watching two rocks fall off a building together, neither able to gain significantly against the other because both are plummeting at equally rapid rates. However, compared to the building itself (i.e. GOLD), both are falling dramatically, and have been for the entire decade. The U.S. dollar will collapse one day, but all the other “non-reserve” currencies will do so first, as they cannot print themselves to the top of the scrap heap as the U.S. can.
Irrespective, essentially all media and Wall Street discussion of “the dollar” refers to its codependent relationship with the Euro, as opposed to ALL the world’s currencies. Yes, some are pegged directly to the dollar (such as the Chinese Yuan) or the Euro (such as the Swiss Franc), which by the way can only be accomplished by MASSIVE money printing of those respective currencies. But most currencies do not have that luxury, and in times of economic stress invariably decline against the reserve currency dollar. As ALL global currencies are unbacked, NONE have a chance against the dollar, and in recent weeks you’d probably be shocked to see how far some have fallen.
Just since August, the so-called “strong” BRIC nations of Brazil and India have seen their currencies fall against the dollar by 20% and 13%, respectively, while the Mexican peso also collapsed by 20% and the Korean Won 14%, among others. However, today’s action in an of itself provided the greatest shock, demonstrating how it has become NEARLY IMPOSSIBLE to conduct international business, or protect one’s wealth, in a purely fiat currency system. Today alone, the Australian Dollar fell by NEARLY 5% against the U.S. dollar, while a host of other currencies fell by 2.5% or more, such as the Mexican Peso, Russian Ruble, and South African Rand. Such moves are causing dramatic inflation increases around the world, ALL due to such inflation being EXPORTED BY THE U.S. due to its cancerous monetary policy and those nations’ collective dependence on it.
You will never read these things in the American media, but believe me they are front page news EVERYWHERE else, and once the Euro breaks up they will be well-publicized around the world. Those nations did NOT have significant gold price declines today, nor oil, so any economist using the blanket statement “deflation” is either a liar, an idiot, or disingenuine.
I have long stated we will only see deflation of items we WANT (such as houses – you can rent, new cars – you can buy used, and electronic gadgets), but inflation of things we NEED (such as food, energy, and of course REAL MONEY, i.e. gold and silver). And that is exactly what has happened for the past five years.
This month’s global currency turmoil, among the worst I’ve ever seen, PROVES to me the system is DEAD, ready to be BURIED any day now.
The official response to this week’s POST FED MARKET CATASTROPHE will occur SHORTLY, and will be as FORCEFUL as it is SUICIDAL. Be prepared for Western Central Banks and politicians to announce more psychotic, hyperinflationary actions each month, and for GLOBAL financial markets to become DRAMATICALLY more volatile and dangerous to participate in. And despite today’s attack, GOLD and SILVER will soon reach new all-time highs, this time amidst a GENUINE, UNPRECEDENTED, GLOBAL CURRENCY CRISIS.
What that happens, it might be too late to PROTECT YOURSELF, so do it NOW!