Friday , 27 December 2024

Search Results for: fiat

Puplava: The Theoretical Price for Gold is $1,905/ozt.! Here's Why

Given the extremely high correlation between central bank balance sheets and the price of gold, it is possible to determine the implied price relative to current debt levels. In doing so, we calculate gold's "central bank balance sheet value" at around $1900 an ounce. [Let us explain further.] Words:

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Major Inflation is Inescapable and the Forerunner of an Unavoidable Depression – Here’s Why (+3K Views)

Whether our current economic crisis will end with massive inflation or in a deflationary spiral (ultimately, either one results in a Depression) is more than an academic one. It is the single most important variable for near and intermediate term investing success. It is also important in regard to taking actions which can prepare and protect you and your family. [Here is my assessment of what the future outcome will likely be and why.] Words: 1441

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Exposed: The Evolution of Fake Wealth Creation, Accelerating Debt Expansion and Inevitable Financial Implosion

Only in a debt-based money system could debt be curiously cast as an asset. We’ve made “extend and pretend” a quaint phrase for a burgeoning market for financial lying and profiteering aimed toward preventing the collapse of a debt- (or lack-) based system that was already doomed by its initial design to collapse. This primer will detail the major components and basic evolution of fake wealth creation, accelerating debt expansion, hollowing out of the economy, and inevitable financial implosion. Words:1583

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U.S. Financial Problems Have Horrendous Implications for Markets and Systemic Stability – Here’s Why (+2K Views)

Systemic-solvency and liquidity issues continue to plague the Fed and to restrain U.S. economic activity. Bank lending remains impaired, household income has taken a new hit, annual and monthly growth in the broad money supply appears to be stalling, again and U6 unemployment levels are at staggering levels. These ongoing financial problems have horrendous implications for the markets and systemic stability. [Let me explain.]

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Financialization: Its Definition, Its Lifecycle and Its Impending Collapse (+7K Views)

Financialization is like the bubonic plague–it constantly needs new victims as it kills off its existing hosts. Housing? Dead, killed by financialization, aided, abetted and powered by the Federal Reserve. Now the Fed wants to “save” what it already killed via financialization–housing–by buying $1 trillion in plague-infested mortgages and brute-force efforts to keep interest rates below inflation, i.e. negative rates.[Let me take this disease analogy further.] Words: 514

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An Inflation Inferno is Expected – but When? (+4K Views)

Daniel Thorn­ton, an econ­o­mist at the Federal Reserve Bank of St. Louis, argues that the Fed’s pol­icy of pro­vid­ing liq­uid­ity has “enor­mous poten­tial to increase the money sup­ply,” result­ing in what The Wall Street Journal’s Real Time Eco­nom­ics blog calls “an infla­tion inferno.” [Personally,] I think it’s too soon to make sig­nif­i­cant changes to a port­fo­lio based on infla­tion fears. Here's why. Words: 550

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Events Accelerating Towards an Ultimate Dollar Catastrophe! Here's Why

With the U.S. election just six months off, political pressures will mount to favor fiscal stimulus measures instead of restraint. Such action can only accelerate higher domestic inflation and intensified dollar debasement culminating in a Great Collapse - a hyperinflationary great depression - by 2014. [Let me explain why that is the inevitable outcome.] Words: 2766

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The Premise That Higher Oil Prices Will Cause Inflation and/or a Recession is Wrong! Here’s Why

The classic argument is that, because 70% of the economy is driven by consumer spending, an increase in gasoline prices will cause a decrease in consumer spending, which will cause an economic decline. [My research, however, indicates that] the premise that higher oil prices will cause inflation and/or a recession is wrong. [Let me explain why that is the case.] Words: 1097

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Greek Fiscal Irresponsibility Is No Surprise! Here's Why

Is it a coincidence that Greece, a country with a 40% smoking rate, has dug itself into such a financial mess? What is fiscal irresponsibility, if not an unwillingness to deal with discomfort today in exchange for future financial health? [Let me explain why an analogy to a country's addiction to smoking is so appropriate when considering the Greeks' attitude to their country's sovereign debt woes.] Words: 650

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Health of World’s Monetary System Moving Into Terminal Stage! Here’s Why (+2K Views)

The time is now fast approaching when all debt will be defaulted on...A debtor's default will impact the creditor (who is usually also a debtor to yet other creditors), causing him to default, and so on. When this begins in earnest, it will wipe out the banking system and thus everyone's "money." The paper currencies will not survive this. We are seeing the early edges of it now in the euro, and it's anyone's guess when it will happen in Japan, though it seems long overdue already. Last of all, it will come to the USA. The purpose of this article is to present the early-warning signal and explain the actual mechanism to these events. Words: 1386

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