The fundamentals for silver and gold are very strong, and with all the massive bailouts, which are increasing debt levels, they are just getting stronger. Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals.
The repayment of debt (or default on debt – which is more likely) will result in significantly reduced economic activity. Significantly reduced economic activity will have a negative effect on the stock market, which in this case, will likely result in a huge crash. It is these conditions (a deflating debt bubble) that will drive gold and silver prices significantly higher. Read More
Investors around the world are asking the critical question, are we looking at 2008 all over again or not? Today Michael Pento, of Pento Portfolio Strategies, writes exclusively for King World News to let readers know the answer to that all-important question. Here is what Pento had to say about the situation: “As most of you already know, I have for years been in the vanguard warning about the inflationary policies pursued by global governments and central banks. However, we now face a hiatus of monetary intervention and that has once again brought about the fear of deflation—which is the natural countervailing force to inflation.”
In twenty or thirty years, I expect future monetary historians looking back on this period of history to frequently misquote Ernest Hemingway:
How did the dollar die? First it died slowly — then all at once.
The slow death began with the dollar’s birth as a global reserve currency. America was creditor and manufacturer to the world, and the capitalist superpower. People around the globe transacted overwhelmingly in dollars. Above all else, people needed dollars to conduct trade, and they were willing to pay richly for them, and for dollar-denominated debt .
By the ’90s America began enjoying a tremendous free lunch — the world provided America with goods, resources and services, and Americans provided the global reserve currency, as well as acting as world military policing global shipping. Why manufacture at home, or produce resources at home when the world wants your currency?
Jeff Clark: Mayan prophecies aside, many of the senior Casey Research staff believe that economic, monetary, and fiscal pressures could come to a head this year. The massive buildup of global debt, continued reckless deficit spending, and the lack of sound political leadership to reverse either trend point to a potentially ugly tipping point. What happens to our investments if we enter another recession or – gulp – a depression?
Clearly, one should not assume that gold will perform poorly during a recession. Even in the crash of 2008, gold still ended the year with a 5% gain. And with the amount of currency dilution we’ve undergone since that time, it seems more likely gold will rise in any economic contraction than fall. Indeed, if the response of government to a recession is more money printing, precious metals will be a critical asset to have in your possession.
Most people think of a cashless society as something that is way off in the distant future. Unfortunately, that is simply not the case. The truth is that a cashless society is much closer than most people would ever dare to imagine. To a large degree, the transition to a cashless society is being done voluntarily. Today, only 7 percent of all transactions in the United States are done with cash, and most of those transactions involve very small amounts of money. Just think about it for a moment. Where do you still use cash these days? If you buy a burger or if you purchase something at a flea market you will still use cash, but for any mid-size or large transaction the vast majority of people out there will use another form of payment. Our financial system is dramatically changing, and cash is rapidly becoming a thing of the past. We live in a digital world, and national governments and big banks are both encouraging the move away from paper currency and coins. But what would a cashless society mean for our future? Are there any dangers to such a system?
Those are very important questions, but most of the time both sides of the issue are not presented in a balanced way in the mainstream media. Instead, most mainstream news articles tend to trash cash and talk about how wonderful digital currency is.
Today billionaire Eric Sprott told King World News the central planners are desperately trying to convince the masses that everything is okay. Sprott, who is Chairman of Sprott Asset Management, also said the mainstream media continues to bash gold. But first, he had this to say about the global economy: “I think it’s safe to say we’ve hit that ‘Minsky moment’ where the productive capacity of the country is not capable of paying off the debt. All we’re trying to do is push it down the road so maybe there is some luck and these economies will come to life.”
Brazil’s finance minister, Guido Mantega, has not been shy in printing their currency, the real, in another Fed and Bank of Japan styledattempt at suppressing its value in relation to other currencies. Mantega says, “We are not going to just sit by and watch while other countries devalue their currencies to give them a competitive advantage.” Mantega deliberately distracts from economic truth; currency printing is a policy which is merely the method by which governments finance that which they are unable to tax. He was made famous in financial news in 2010, by announcing publicly that the currency wars had begun and that Brazil would take advantage of the race to the bottom in order to reap the largely silent benefits to the few of such a toxic policy for the many. As you print currency, those who receive the new cash receive the benefit at the expense of the greater population. The only way to maintain one’s standard of living, is to save in a medium which the supply of can not be arbitrarily increased.
James Delingpole
London Telegraph
October 12, 2011
One of the worst aspects of living in these apocalyptic times is that whenever you look around the world, wondering where you might escape to, you begin to realise that everywhere else is just as bad if not worse.
Take Australia, an island built on fossil fuel with an economy dependent on fossil fuel. What would be the maddest economic policy a place like that could pursue as the world tips deeper into recession? Why, to introduce a carbon tax, of course. Which, for reasons just explained above, means a tax on absobloodylutely everything. Which is exactly what Julia Gillard’s Coalition (why is it that word always makes me want to reach for my Browning?) has just gone and done, obviously.
What must be particularly galling to all the Australians (the majority) bitterly opposed to this lunatic measure is the unutterable feebleness of the arguments the Coalition is using to justify it.
ED Note: so gold and silver is down and the US dollar is up. Well here in Australia I know that means higher Gold / Silver prices for us, however on this smack down it’s time to go buy again.
Whenever the markets are smacked down, Gold and Silver is the light at the end of the road when it “hits the fan”.
Those who hold the physical will be the one who make it to the next monetary system. Not to fear-monger, but you can pretend nothing is wrong anymore. Changes are coming and those who are in the know are the ones who will be prepared when it comes, and when it comes you I hope to god all of you are prepared. Speaking from Australia our markets are shaken every day from the effect of Europe. So who’s going to save you when this system collapses?
Are you familiar with Robert Kiyosaki? He is best known for the “Rich Dad, Poor Dad” series of books. Over 26 million books authored by Kiyosaki have been sold and he is recognized as a financial expert by millions of people across the globe. Well, guess what? Even Robert Kiyosaki is warning that an economic collapse is coming. In fact, Kiyosaki and his team of financial experts are encouraging Americans to stock up on food, guns and precious metals. This is yet another sign of just how close we are to the total collapse of the U.S. Economy. Kiyosaki, who once co-authored a book with Donald Trump entitled “Why We Want You To Be Rich” is now a full-fledged prepper. As even more prominent Americans start warning that an “economic collapse” is coming do you think that the American people will finally wake up and start paying attention?
The statements that Robert Kiyosaki makes in the video posted below are absolutely jaw-dropping. Once upon a time he was all about teaching people how they could get rich, but now he is talking about storing food, buying guns, investing in precious metals and preparing for the coming crash.
The following are 11 of the best Kiyosaki “sound bites” from the video below….
#1 “when the economy crashes as we predict”
#2 “the crowds come rushing in to buy gold and silver”
#3 “we could either go into a depression or we go to hyperinflation”
#4 “or we could also go to war”
#5 “buy a gun”
#6 “I’m preparing”
#7 “I’m prepared for the worst”
#8 “so come to my house and I’m armed and dangerous and I’ll welcome you”
#9 “we have food, we have water, we have guns, gold and silver, and cash”
#10 “the credit card system shuts down, the world shuts down”
#11 “the supermarkets have less than 3 days supply”
If you have not seen this video yet, it is definitely worth the 8 minutes that it takes to watch it. Robert Kiyosaki seems to be extremely alarmed about the future of the U.S. economy….
It certainly seems as though the entire financial culture in America is changing.
Once upon a time everyone wanted to know how to get rich.
Now everyone wants to know how to survive the collapse that is coming.
As I have written about previously, even people like Tony Robbins and Donald Trump are warning that an economic collapse is coming.
Economic pessimism is seemingly everywhere and almost every recent survey indicates that the American people are losing faith in the U.S. economy.
For example, in a recent article I noted that 48 percent of Americans believe that it is likely that another great Depression will begin within the next 12 months.
According to Gallup, the percentage of Americans that lack confidence in U.S. banks is now at an all-time high of 36%. Back in 2007, just 14% of Americans lacked confidence in U.S. banks.
In order for society to function correctly, people need to be able to trust each other and they need to be able to trust the major institutions that hold society together.
Once confidence in our major societal institutions is gone, it is going to be incredibly difficult to get it back.
Sadly, the reality is that many of our major financial institutions have been untrustworthy for a very long time. It is just that the American people are only just now starting to wake up to that fact.
For example, the Federal Reserve has been at the heart of our economic problems for decades but most Americans have not realized it.
But now that is starting to change. According to one recent poll, only 30% of Americans currently view Federal Reserve Chairman Ben Bernanke favorably.
The American people are becoming increasingly dissatisfied with an economic system where the vast majority of the rewards flow to Wall Street, the big banks, the biggest corporations and the ultra-wealthy.
According to the Washington Post, the top 0.1% of all income earners in the United States took home 2.6% of the nation’s earnings in 1975. By 2008, the top 0.1% were taking home 10.4% of the nation’s earnings.
The Washington Post also says that after adjusting for inflation, the average income of the top 0.1% of all Americans jumped by 385 percent between 1970 and 2008 while the average income for the bottom 90 percent of all Americans actually fell by one percent.
The sad truth is that income inequality in the United States has become a major problem. A very small sliver of the population is reaping almost all of the rewards and the middle class is being ripped to shreds. Conservatives, liberals, Democrats, Republicans and libertarians should all be alarmed by this.
Meanwhile, the national debt continues to explode. Right now, U.S. government debt is expanding at a rate of $40,000 per second.
Every single minute we steal another 2 million dollars away from our children and our grandchildren.
But if we stop this theft it would throw the U.S. economy into a horrible economic crisis that would be far worse than what we are experiencing right now.
That is why the vast majority of our politicians do not have the guts to do it.
We truly are caught between a rock and a hard place.
But people like Robert Kiyosaki can see what is coming, and they are getting prepared.
Are you prepared?
Many of our young people have come up with their own versions of an “economic stimulus plan”. In past articles I have documented many of the signs that society is collapsing, including the disturbing rise of the “mob robbery” phenomenon.
Well, just the other day there was another very shocking mob robbery in the city of Philadelphia.
June 14, 2012 
