Only THE GOLD STANDARD can save the world from disaster:
If the change from a debt-based model into an equity-based model is successful, then there will be a lot less cause for concern about the fundamentals of the market or its instability. The destruction of the old, will herald the creation of the new. The world should prepare for a major correction with a string of complications. If the Trump administration does what it has promised: implementation of the gold standard, lowering tax rates, and bringing investment capital back into the country, there will be a very prosperous future. In other words, it is imperative to abolish all Central Banks and the Fed, and return to the gold/silver standard with the creation of true money with asset-backing in the hands of the people, the same people that elect and authorise their government.
Until now, Central banks, Governments, and commercial banks have succeeded in pumping endless amounts of paper money into the financial system to keep their Ponzi scheme going. Most people do not understand what is happening with their credit-based money. They believe that their currency is worth the same as it was 10 years ago, but credit creation leads to currency debasement while in real terms virtually no growth is achieved. Wages for ordinary workers are not growing but are instead declining, also as a result of the intentional implementation of austerity measures in almost every country.
The Growth model:
False and inflationary growth is the result of credit-based paper money that is going to collapse in the coming months and years. People will realise that all assets have been inflated to bubble levels and they will lose most of their current paper value. Expect stocks and property to decline as much as 90%. Today this viewpoint may be considered to be speculation or even impossible, but a similar decline has happened in history and back then there were not the gigantic credit bubbles of the size the world is facing now.
Very few seem to recognise and understand how dangerous this situation has become. Very few are even talking of it, yet. That’s because it is extremely difficult to fully comprehend the forces that have led to this bubble. It’s not easy to see when housing prices are soaring for instance or tech stocks trading at 100 times earnings. These bubbles are built around interest rates that have been far too low for far too long. By giving very dangerous loans to companies, to students and to automobile buyers in record amounts, and at irresponsibly low prices, these will not come close to covering the inevitable losses.
Bankruptcies in record numbers:
Moreover, the fiasco is global in scope, with bond markets much bigger than stock markets, which is an anomaly not very well understood by many financial specialists. These aren’t just fabricated predictions. This is what’s happening right now: Default rates are soaring, key indicators have “rolled over”, and huge losses have already begun to mount. These occurrences will soon cause bankruptcies in record numbers. The bulk of the enormous amount of corporate-backed debt is turning sour at an accelerating pace, just like the 2008 bad mortgages. These corporate debts were created because of the intentional central bankers’ effort to create a bubble, and like every other government-led effort to manipulate the economy, this one too will fail. Only, this time, the debts and the defaults will be much, much larger than the 2008 mortgage crisis.
Biggest economic hurricane:
How was this global credit bubble created? When granting a loan, normally, the lender requires the borrower to pay him, but instead, thanks to ZIRP and NIRP policies, the lender pays the borrower for taking out the loan! This is obviously an insane policy, as no one in his right mind would lend money and then pay the borrower for the privilege to do so! This has happened with trillions worth of debt for trade around the world.
Governments – i.e: on the taxpayers account – backed the central banks to print at least $15 trillion, and manipulated bond prices so high that interest rates on various corporate bonds were recorded to be below zero. It is obvious that this situation cannot last indefinitely. Sooner or later, interest rates will find their natural level and then the banks will collapse – as has almost happened with Deutsche Bank.
Rising interest rates aren’t even the real problem. The real problem is rising default rates. Governments can, in theory, force bond prices higher and higher, but they can’t make companies more credit-worthy.
It is very likely in 2017-2019 that hundreds of billions worth of bonds will default all over the world in almost every country, and, that’s just the beginning of this debt crisis. It will prove to be; “the greatest legal transfer of wealth in history.“ Anyone who owns stocks in firms destined to default is going to be wiped out. This crisis is the greatest opportunity ever to make a fortune legally, as the global bond market is a huge bubble ready to explode.
To put this in perspective: Bond-market veterans are expecting something around $1.5 trillion in defaults prior to 2021 – that’s more in defaults than was seen in the mortgage crisis. And, unlike mortgages, the recovery rates on defaulted corporate bonds are likely to be very low. Whichever is the case, in the event of holding bonds of any sort when the bond bubble is set to burst, it is important to sell these off as soon as possible.
Around the world Governments have unleashed the biggest economic hurricane in the history of capitalism. They have printed so much money that they have distorted the entire global economy. Central banks have created a bubble that’s bigger and more dangerous than any other before. Every year for the past three years, a new record was set for the amount of corporate-debt created. Today’s debt levels are mind-boggling, bizarre and insane; investors have been completely brainwashed in their thinking;
- Investors have come to believe it makes sense for bonds to have a negative yield…
- That falling production doesn’t matter… and
- That in spite of companies not even being able to repay their debts, they can be worth tens of billions!
Over the next five years, more than $10 trillion in global corporate debt will be due for repayment. Just as was with the mortgages in 2008, when default rates on corporate debt have passed their tipping point, this will send a missile into the world’s financial markets. Remember, it only took 10% of mortgages that were defaulting in 2008 to trigger a full-blown financial crisis. Just as was the case then, this toxic debt is everywhere.
Interest Rates going up, Stocks and Bonds down:
Refinancing arrangements must be in place long before these loans have matured. So, refinancing has suddenly become a competitive landscape! Bond prices, which are now at all-time highs, will plummet. That will cause the cost of capital to soar, sending equity prices crashing, and interest rates rising.
On the other side of this spectrum; growth in the stock market has not just happened of its own accord. Stocks don’t grow at 9% annually for 36 years without some QE-rocket fuel. The explanation is very simple. Debt-equal credit has provided the fuel with which the property market has been fuelled; an utter credit explosion, as debt in this sector has grown by 9% annually since 1981. There is an absolute correlation between the increase in debt and the growth in the stock and property markets.
To believe that property now represents true value after the biggest rise in history is very dangerous. This bubble has additionally been fuelled by virtually free money with interest rates at zero% or even negative.
In gold terms home prices peaked in the early 1970s. The fall in price of the average home against gold has been 87% since then. It could be assumed that housing will not fall much further from these levels, but when looking at the high level of lending in this market, combined with the low interest rates, it is very likely that housing in the Western world will decline substantially. A minimum target will most likely approach the 1980 price levels, which would involve a 50% fall in real terms against gold. But bearing in mind that in the bubble nature of this market, it will more likely prove to be a 75-90% fall.
The fall in asset prices and the consequent increase in the value of gold could happen in the next five years. That will involve widespread misery and major adjustments for most people, but this is a necessary evil for the world to start growing again without excessive debt. With debts of $250 trillion and derivatives in the quadrillions, there is simply no chance for the world economy to advance. All this debt must implode together with the assets that have backed it.
Gold and Silver as protector:
Gold and silver will clearly offer protection against the coming wealth destruction, allowing holders of precious metals to prosper during the biggest wealth transfer of the century. But the precious metals held must be physical, held outside the financial system and preferably outside the country of residence of the holders. Gold must also be kept in a politically safe country with a gold ethos. Only Gold and Silver will prevail as assets of value when the rest goes down!
The current correction in the gold and silver price should be totally ignored. It is due to manipulation and due to a dollar that is temporarily too strong. It is critical to be hedged against the coming risks; Possession of gold and silver is the most vital protection against this failing system. People who don’t own gold and silver are exposed to monumental financial risks.
Return to the gold standard:
Abundant gold held by Central Banks is generally supposed to back the cause of a return to the gold standard, but Central Banks have a firm hold on bankers of all the nations which they have been exploiting; the driving objectives and goals of the top bankers in the world is to retain their unwarranted privileges: the publics’ interest is not a priority by any means.
Central Banking was conceived as a means to allow bankers to increase their profits by lending long – at more profitable interest rates – and borrowing short – at low rates paid to savers on their savings accounts. Central banks were created as a tool of enslavement of the people and all nations through extreme debt, the schemes being executed by appointed bankers, driven by greed. Greed is the driving force behind the compliant bankers in service to Central Banks. These institutions save bankers continuously from all the negative results of their greed. Banks that are properly run do not require, and never have required the need of a Central Bank, because they do not play such unsound financial games.
By means of money creation within the monetary system, the Deep State sets us up against each other. They see the world as their battlefield. In order to control humanity, they create through the monetary system, shortages, economic crises, fear, hatred, insecurity, famine, and wars, with the aim of killing as many people as possible. Organisations like, Al Qaeda, ISIS, I.S., Daesh, and other terrorist groups are recruited and trained by the Mossad and CIA agents to achieve these sinister goals.
As is written in Agenda 21, the money system, thanks to fiat paper currency and our productivity, is used as our common medium of exchange and as such, it interconnects the population. Simultaneously, it is employed as a weapon against us. As long as the sleeping masses do not awaken to this reality, through stupidity and especially through fear, they will be permitting this enslavement to continue implicitly. With the help of the MSM and their lies, this project could be taken to its completion with great, frightening consequences on all of us.
The important issue is; the elimination of all Khazarian control over the world financial system and subsequently making it feasible to influence the future for humanity in a positive way.
How people can create their own gold standard:
Large amounts of gold held by Central Banks are definitely not in the publics’ interest. It is of the greatest importance that gold and silver is in the hands of the people, which would make a return to the gold standard viable.
India is a great example of a country where large amounts of gold are in the hands of the population – 1.3 billion people, at least.
Some have heard about the gold held by India’s Central Bank, but it is rarely mentioned that Indians have been saving gold for thousands of years; the Indians regard gold with religious awe, as it actually constitutes part of Hinduism.
Very few know that over 1,105,000,000 Indians hold together 41,000 tons! If any country is ready for the gold standard, it is India. India is reputed to be a country with a highly corrupt bureaucracy. Furthermore, dishonouring regulations is built into the Indian psyche – a condition that protects personal freedom. As an example; Indians are not supposed to travel on the roofs of railroad cars, and yet they do it all the time!
Civil disobedience in the form of sound Anarchism can be a sign of a healthy nation – it depends on what it is being disobeyed. Avoiding income taxes is totally justified. Premier Modi of India is trying with his cashless society to round up the Indians and coerce them into paying income taxes – only a small percentage of Indians cannot avoid the tax – by declaring most of the paper money in the hands of Indians illegal.
Consequently, Indians are desperately trying to get their wealth transferred into gold. Unfortunately for India the poorly bestowed with brains, Modi is attempting to smoke out the “black money” from India’s informal market, that makes up at least half of the country’s GDP and in the process he is attempting to change the way of thinking and living of over one billion Indians, a way of life that they have followed and treasured for thousands of years.
Times are changing. The system is broken, there is no market left, every market is manipulated. Great economic turmoil is set to devastate our world, due to fundamental problems arising from the flawed money system that only serves the Elites, and due to the declining available energy needed to sustain the world’s needs. As an example, ExxonMobil appears to be headed for bankruptcy. This will be a severe shock for every westerner, when it occurs as few people see this coming.
Community currencies are becoming popular:
Barcelona is well underway in developing a plan for a future local currency, which is due to be launched next year. It is keeping a close eye on the example set by Bristol, in the United Kingdom. It has been four years since the south-western English city launched the Bristol Pound, a currency that runs parallel to the sterling, and seeks to promote the local business sector. It has been reported that “The mayor of Bristol accepted being paid his entire salary in this community currency.”
Let’s work together to avoid this catastrophe, as there are truly viable possibilities to do so, if sufficient people awaken soon. A restaurant in Girona has also joined this trend and is reputed to already accept the local currency for payment.
In the meantime, those who are aware of the earnestness of our present predicament are acquiring gold and silver at bargain prices, or even at high prices. The price means nothing, but it does require wisdom to understand this.
GOING CASHLESS… OR GOING GOLD?
Gold and Silver are both monetary metals. India is forcing its citizens into a cashless society, Australia appears to be heading down a similar road – and more quickly than any of us thought possible. A cashless society is the banksters ultimate dream, because it gives them the total control they desire as they ban cash and roll out their “new world order” to an unsuspecting public who is told it’s all in the name of curbing corruption.