Most people in the U.S., Europe, and Japan, are experiencing significant inflation in food and energy prices.Food inflation is in many cases between 10 – 20 %.  However accurate figures are not published. Instead, the truth is kept hidden from the people.

Importantly, the tens of trillions of printed dollars, euro’s and yen have not gone into the real economy.  They were meant to prop up the banks´ balance sheet so that money remained in the banks.  Actually these trillions were used for the bankers’ own profitable benefit.

 

An important thing to understand is that asset markets as stocks and bonds are not measured in the inflation figures. However these markets have seen trillions of dollars of fund inflows. So when told that the newly printed money was to bolster the economy, is a complete lie. That money always was intended to save the banks to the benefit of bankers. So all these assets –stock and bonds – are in tremendous bubbles. Contrary precious metals and energy is the only two asset categories, which come to mind that are not in bubbles.

In spite of massive injections into the banking system, European banks are more vulnerable today than in europe2008.  While U.S. banks are in a terrible position too, when derivatives positions are included that have little or no real value.

 

If these assets are included into the inflation numbers, then inflation is far more significant and only has benefitted a small minority, but even worse these created bubbles in stocks and bonds are totally unsustainable, without benefitting the world economy. While in accordance to real honest amounts, to day more people are out of work than in the work force.

 

From a wealth preservation point of view, this period in time will be the last opportunity for investors who don’t have enough physical gold and silver to stock up.In the next few years gold will go up many thousands of dollars an ounce and will be a critical part of investors’ portfolios in order to protect their assets from total destruction. As gold and silver markets go up, the massive paper selling of gold and silver, which has been done by governments and bullion banks in order to depress the prices, will come back as a boomerang.
“This will happen because the West mainly has paper gold, while Russia, China, and other Asian countries have real physical gold.  When the paper shorts are called upon to deliver, it will cause a massive short squeeze.  This will push gold and silver many multiples higher in price. In my view, precious metals such as silver, palladium, platinum, and gold, present the most unique opportunity of a lifetime for investors.” Egon von Greyerz.

 

“The way the government engineered this recovery, is by creating trillions in currency units, and as we speak, they are creating $55 billion a month more by buying government bonds and mortgage securities. All of this paper money which is currently sitting in banks, at some point, is going to wash over the U.S. You’ll see very high levels of inflation. It’s going to be quite catastrophic.” Says Dough Casey.

 

And he continues: “The standard of living for the average American has been dropping for years now. The average American can’t lay his hands on $2,000. A recent poll came out and said 40% of Americans, if they had to get $2,000 cash in 30 days, couldn’t do it. So, things are pretty strapped, and when the economy goes off the deep end again, and I think it could happen this year quite frankly, there’s going to be a lot of unemployed people, a lot of people without any money and a lot of people with a lot of debt. There is nothing the government can do at this point except print more money…” And in the EU it won’t be much different either.

 

Could Hyperinflation Happen? Theoretically, yes. Hyperinflation is a scary thought. Technical definitions vary, but while it could be argued that mild inflation can be a sign of a growing economy, hyperinflation is certainly never a good thing.

 

If you’ve ever wondered how the Central Banks’ massive money-printing scheme may spark hyperinflation, an article by Gonzalo Lira shows how the catalyst may begin abroad. “China’s economy in 2014 is remarkably similar to America’s in 2008: Both were fueled by real estate speculation, both speculative bubbles a product of cheap-and-cheerful shadow-bank financing.” – “The point at which servicing debt levels becomes unsustainable, and there are no reserve cushions large enough to absorb the losses.”http://thecrux.com/hyperinflation-watch-a-chinese-shadow-bank-bailout-may-mean-a-crash-in-u-s-treasury-bonds/

 

“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.” Says Marc Faber.billions

 

Hyper liquidity can become hyper inflation via the velocity of money in a crisis of confidence of the dollar. Therefore hyperinflation will be a currency-motivated event. Says Jim Sinclair.

 

Notwithstanding, most people say that this will not happen this time. They make this claim because they believe the Central Banks have the capacity and the foresight to prevent this. “This was part of the reason the Fed was created,” is argued.

 

Consumer purchases meanwhile have declined, which means the money is not yet in circulation, and is therefore being used to pay back debt or is being saved in banks, as it’s obvious no one is investing. Sooner rather than later, the money shall have to come back into circulation, and to all intents and purposes this shall enter a period of hyper-inflation, implicating – lots of money chasing a few goods.

 

The importance is that Japan the EU and the VS have failing economies. And they have them for the same reason at the same time: In those countries, consumers are reluctant to borrow. And without borrowing, they have no way to increase their consumption. Households have been cutting back for three reasons. One, they are getting older. Two, their real incomes are stagnant or falling. And three, they already have too much debt. This makes the downturn for all of them similar. All are led by households eager to repair their balance sheet. Out goes the debt. In comes the savings.

 

“In the last six years, government and corporate debt have soared. Corporate debt is now larger than mortgage-backed debt.” Says Bloomberg. But any reduction in spending is averse to modern economic thinking – nevertheless, governments immediately have got to act to stop this spending process, more specific for the following two reasons:

 

First: a quarter century of relative stagnation. Second: Nation’s savings are consumed and wasted, leaving a record level of government debt.

 

For example: Japan’s debt is at 240% of GDP, it’s the highest in the world, and it takes nearly a quarter of tax revenues to keep up with the interest payments. For nearly a quarter century, Japan’s diligent savers have funded its government deficits. Now, the savers are retiring. They need their money back. At the same time, Japan’s trade surplus is disappearing. Where will the money come from to keep the lights on?

 

Already, there are days when scarcely a single buyer steps up to buy Japanese bonds. “The central bank of Japan takes up the slack. And as people get older – they are spending their savings rather than adding to them, and as the country’s current account surplus disappears – as Japan is not the export powerhouse it once was, the economy will become ever more sluggish.” The Bank of Japan will come to the rescue, of course. It will print the money to buy bonds and fund the government. The yen will fall. Prices will rise. Interest rates will go up too.

 

“There are so many outside forces that are influencing the markets. How could anyone possibly think that moves by central banks are intelligent decisions that are going to stop volatility? The central banks have been wrong continually….” Says Gerald Celente.

 

Now, who are the fools? Maybe there really is a recovery… however weak? Maybe the Central Bankers really do have the situation under control? Maybe they were right to print money? Maybe it will be clear sailing from now on? So precious metal investors are the fools not to be on the boat along with all the other stock buyers and gold dumpers.

 

Now, why is the price of gold falling? The papers say it’s because speculators fear that China is slowing… or that Cyprus and other countries will dump their gold holdings.

 

Behind the drop in the gold price goes a very foolish idea. As evidence is that real money – financial reserves – can be replaced by credit and debt. People who believe this must be the real fools around.

 

Imagine you’ve a big stack of cash in your vault. Then, in financial trouble, you need to open the vault, get out your cash and use it to pay your creditors. Does the market for cash go down? Does the value of your cash decline because people know you will have to give it to someone else?

 

The hypothesis is false. Real cash does not become less valuable when people find themselves in financial difficulty; it becomes more valuable. People scramble to get it. They need to pay their debts… settle their accounts… reduce their illiquidity by raising cash. They need cash. The demand for cash goes up, not down.

 

But wait. Today’s bills are payable in paper cash… not gold. Debtors must raise paper cash by selling their gold for paper. It’s paper they need… not real money.

 

That’s what makes this matter so interesting. The system runs on paper money. People spend it. People borrow it. Now people need more of it to pay their bills. So they sell their valuables —gold and silver— to get more paper money. Gold goes down, while central banks print up more paper money — just to make sure there’s plenty to go around. But the day will come when people will stop worrying about the quantity of the paper and begin worrying about the quality of it.

 

They will find that they have plenty of paper – and that more is coming all the time. They will look in their vaults and wonder what they will do with all this paper money.

 

They will have bills to pay then too – and creditors with sharper eyes and tougher standards. When they offer these new creditors more of their paper money, they will say, “Uh-uh.” They’ll want some better cash, which of course is Gold and Silver.

 

The Establishment is Afraid of ‘End The Fed’ Movement in Germany.

According to the organizer of these rallies, they have now spread to up to 100 cities and have a combined attendee base of around 20,000. What is also interesting is that the mainstream media in Germany is calling them Nazis. In Germany, if you don’t support Central Banking, this apparently means you are a Nazi. What a joke. Just more proof mainstream media everywhere is complete and total propaganda. It is also a good sign, since it shows the desperate lengths to which the power structure will go to keep their criminal ponzi alive.

Do these folks seem like Nazis to you?  Please say it in below comment box.

Here the URL if you want to learn more about and to join these noble people: http://wearechange.org/

 

Keiser Report: Rise of Bondzilla

Max Keizer and Stacy Herbert discuss the rise of Bondzilla; being fed on zero percent interest rates by central bankers who have become death, destroyers of markets.