to get through this crisis?
Boundary of Confidence:
The explosion in global debt is enormous. Governments’ debt is exploding; most countries are bankrupt. Central Banksters print money in unprecedented quantities. But that will not suffice to save bankrupt nations whether it is, Japan, Greece, Spain, France, Italy, Portugal, or bankrupt Italian, and German banks, with balance sheets lumbered with billions of toxic assets, and with only one buyer being the ECB. Both the European Central Bank and the Bank of Japan have been buying up billions of dollars of bonds every month. In fact, they’re buying up so much that they’re quickly running out of eligible bonds to buy. This could be making stimulus-addicted markets nervous.
The euro, is not going to survive, investors will will flee the euro into gold, the same will happen with the yen. The Japanese economy has no chance of surviving, so the Japanese will start buying gold. People in the U.S. will also turn to gold as the dollar starts falling. There will not be enough gold or silver available to satisfy this massive increase in demand. The only way to satisfy demand will be through a higher price. That’s why easily $10,000 gold, and $1,000 silver, are visible soon.
Central banksters take confidence for granted. They think they can print as much as they want for whatever reason. Their theories about money printing are obsolete. But they don’t agree with that. They think there’s some benefit in money printing but the point is that they’re ignoring confidence, and taking it for granted.
Central banks that rule and manipulate the financial system have gone from one extreme to the next and taken unfathomable measures, such as negative interest rates on $15 trillion of bonds around the world, the monetisation of debt, and bond purchases of a staggering €80 billion a month in the EU. They have violated every principle of sound money and sustainable financing that mankind has ever learned about. They have taken us to the edge, but they are out of dry powder.
Prices are no longer determined by the market forces due to buyers and sellers. They are imposed by a central bank that lives in fear – fear that investors will discover that the recovery is phony and stocks and bonds are not worth what was paid for them.
Someday, rather sooner than later, they’re going to pass through an invisible ‘boundary of confidence’ and then confidence will be lost very quickly. There will be inflation instantaneously. Regrettably, most people don’t see this coming.
All the above facts and increasingly more money printing have caused increased debt burdens that will eventually turn into hyperinflation. Negative interest rates have no beneficial effect on the economy. About 15 trillion in sovereign debt bears a negative interest rate. Investors pay the governments for the privilege of holding their worthless paper. These clueless investors are not only guaranteed to get back less than they invested due to the negative interest rate, but they are also very unlikely to get the principal back since no government will repay their debt with real money. – Never before in the history of mankind has anyone come up with an idea, driven by whatsoever, or even driven by madness to lend money and get back less down the line!
Weapon of mass destruction:
The reality is that Central bankers are caught between a rock and a hard place. The failure of their Keynesian policies must be clear by now. They are aware that higher interest rates will further weaken economic activity because the debt burden being carried is just too high. With a moribund economy, it should be obvious that there is not enough wealth being created to service this vast level of debt.
Great trouble lies ahead. The illuminati, through the Fed’s interest rate increase next week, will trigger the collapse of the American Dollar and the US economy. – A bubble seven times greater than the world economy is about to explode, worse than any weapon of mass destruction – WMD. The world’s largest casino, the derivatives market of 550 trillion dollars is about to collapse. – Financial Armageddon is upon us. The world is powerless to stop this catastrophe. Economic suffering will be worse than what recently happened in Greece. At least 17% of the world’s population will be unable to feed themselves. No one on Earth is able to bail out this system. – You have been warned about this imminent danger that will wipe out your wealth completely if you have not insured it with precious metals.
Booms and busts:
Retired economic professor Charles Hayek, who has studied macro economics and in particular booms and busts; is able to teach in just ten minutes more about the economy than many Harvard graduates have learned in their entire schooling. Watch the first 25 minutes of this video to fully understand, why it is highly likely that interest rates will be raised intentionally to bust the economy two months in advance of the US elections in November. This was also the case before every US election since 1999. It is highly recommended you spend 25 minutes of your time watching this video. And when the Fed raise the short-term interest rate, make instantly a run for the supermarket, to buy everything you’re going to need the coming month, before the shelves are emptied.
All the indicators point to the fact that this calamity is very close to its end. Michael Pento explains:
“Global central bank balance sheets have risen from $6 trillion in 2007 to $21 trillion today. That’s the increase in the size of central bank balance sheets… I can prove to you when this bubble bursts, it’s going to be disastrous.
If the Fed admits it can’t raise rates; Pento predicts:
“Gold is going to become completely unglued from its moorings and will shoot up very close to record highs very quickly. It’s not going to happen until the Fed admits that it cannot raise interest rates.”
Investors and savers that hold paper assets will lose out tremendously, firstly because most paper assets are not backed by the real stuff they pretend to represent, secondly that same piece of paper is sold to hundreds of different investors without any registration as to who the legitimate owner is. Exchange all or most of your paper assets for physical gold and silver to be sure to come out of this crisis with a financial advantage. Remember:
“He who owns the gold makes the rules”.
How many ounces do you need?
Imagine the sick feeling in your gut if you suddenly realise that you did not buy enough bullion to get through the crisis. For this reason alone, it’s worth thinking about how many ounces you may need.
Traditional financial advice is that gold should comprise 5% to 10% of assets held. But more is needed in the turmoil ahead. To find out how much is needed, a practical guide has been set up to determine the allocated quantity that should be sufficient.
A “major financial disorder” will include inflation followed by hyperinflation. Taking into account the quantity of debt and the central bankers’ destructive policies, as explained above, the global economy is likely to undergo a series of crises, only one of which will be the inflation crisis. This crisis will not be resolved quickly. So be prepared to weather the entire economic storm that may even last several years for which more will be needed than was initially thought to ride through the entire transition period.
This could mean the need for a supplement to fully support your standard of living. Taking this into consideration the following tables were drawn up, by Jeff Clark, a Senior Precious Metals Analyst, who calculated how much gold and silver would be needed based on two factors: monthly expenses, in conjunction with the length of the crisis period.
The following is the table for gold.
The charts show the gold price keeping up with inflation, though history shows it is likely to far surpass CPI readings. If this is indeed the case, it’s possible we’d need less than what is shown. It is also assumed in the above chart that one pays taxes from another source.
If you want to supplement your expenses by $500/month and the crisis lasts for three years, you would need about 14 ounces of gold to get through it.
If you want to cover $3,000 in monthly expenses, you’d need 45 ounces to meet a crisis period of two years, and 90 ounces if it lasts for four years.
The following table is a calculation of ounces needed using silver proceeds.
A $500/month supplement would require 300 ounces of silver to get through one year, or 1,500 ounces for five years.
For $3,000/month, you would need 1,800 ounces for one year, or 7,200 if the crisis lasts for 4 years.
Of course you could use both gold and silver to meet expenses. For $1,000/month, you would need nine ounces of gold and 600 ounces of silver to get through a two-year crisis period.
These amounts may look high, but keep in mind that if you don’t save in gold and silver now, you’ll be forced to spend a whole lot more in currency later.
These tables show how practical gold and silver can be. They can truly be used to protect your standard of living, and even improve it. The truth is, right now, gold is terribly undervalued. For proof of that fact, just look at the Dow/Gold ratio.
This simple scale of measurement is a way to derive the value of gold based on real terms as opposed to hypothetical terms. The historical average of the Dow/Gold ratio is 4:1. This means, on average that the total value of the Dow is four times the price of gold. Well, with the Dow near 18,000, as is the case right now, gold ought to be trading around $4,500 per ounce (18,000/4 = $4,500). That’s significantly higher than the $1,300 for an ounce of gold at which it is currently valued.
But, here’s where things get really interesting… During XL Gold Cycles, the Dow/Gold ratio tends to gravitate towards a 1:1 ratio.
That’s exactly what happened in the 1930s and the 1970s – the last two XL Gold Cycles. Indeed, on January 21st, 1980, while the Dow was valued at 872.78 points, gold hit $850/oz., which was approximately a 1:1 ratio.
If this were to happen today, it would push gold all the way up to $18,000 per ounce. Hence my prediction, that gold’s ultimate destination is slightly below this value, at $16,000 per ounce. However, Bill Holter presumes gold soon will hit $ 50.000/ounce!
Again, this isn’t a wild guess. There is a historical precedent for such an immense climb. This has happened at least three times to date.
The “XL” GOLD CYCLE – every 40 Years for the past 200 years:
Sorry, this short video has just been removed from youtube.