Reading time: 1,776 words, 5 pages, 4 to 7 minutes.
Do you still think we are not in a Stealth Depression? Do you believe the ass media’s propaganda that things are getting better?
I’ve been commenting on this continuing financial, economic and social collapse for more that five years now so I’m going to do something different; I’m going to do what Rick Rule recently did on King World News. He asked the following questions [I’ve paraphrased somewhat]:
Is the financial crisis in the Western world over? Has anything been fixed?
Can you name any G20 country, just one, that has a balanced budget?
Do you think that the global banks are solvent? [We’ll discuss Canadian banks’ stealth bailouts in a future article.]
Do you think 6% or 7% equity is enough to run those big bank balance sheets?
Do they think marking bank assets to ‘myth’ rather than marking bank assets to market makes the banks’ assets solvent?
Are interest rates around the world still negative compared to inflation?
In view of recent Japanese actions, do you believe that competitive devaluation of Western world currencies, the yen, Canadian dollar, the US dollar, etc., is ongoing, or do you think that has stopped?
Do you believe that the European periphery, places like Italy, Spain, Portugal, Greece, Malta, Slovenia, and maybe even France, are still challenged, or do you believe those problems are over?
Do you believe that liquidity is a substitute for solvency? In other words, is central bank printing and liquidity in the system a substitute for the fact that the debts are very large relative to those countries ability to service that debt?
Do you believe that the US, Canada and other G-20 federal governments still have budget issues?
Do you believe that US states and Canadian provinces have significant budget issues particularly with regards to unfunded pension liabilities?
Do you believe that cities, towns and local municipalities have budget issues, also with regards to unfunded pension liabilities?
Do you believe the trillions of dollars of derivatives (worthless financial instruments) on bank and insurance company balance sheets still pose structural problems, both to the economy, and to those institutions?
Do you believe the momentum-driven institutional sellers of precious metals have enough money to overcome physical buyers of those precious metals?
Do you believe that the ascendant Asian and South Asian cultures still have an affinity to owning physical precious metals?
And, here’s a few of my own questions: Do you believe that Quantitative Easing (printing an unprecedented amount of money out of thin air) has healed global economies?
Do you believe an historically unprecedented length of time of Zero Interest Rates has healed global economies?
The authorities tell us if they hadn’t done all this, global economies would be in worse shape. Do you believe the very people who caused this mess with fiat currencies, corruption, cronyism and unprecedented debt levels know what they’re doing let alone able to prove that assertion?
Do you believe that the largest bubble in history – bonds, will not burst and destroy savings and pensions?
If you buy groceries and gas do you believe governments’ inflation statistics of less than2% when John Williams Shadow Stats shows it to be 9% in the U.S. (Canada 7%)?
Do you believe that U.S. unemployment is 7.5% when Shadow Stats shows it to be 23%?
With Canada and New Zealand proposing ‘bail-in’ legislation a week after Cyprus’ deposits were confiscated, don’t you think this last, desperate act was planned for a long time and Cyprus was just the litmus test for more to come?
Having exhausted all their ammunition except outright depositor confiscation (bail-ins), do you believe governments and central banks are in a position to fight the next recession which is already overdue, occurring as they do every 4 or 5 years?
2006 – the U.S. housing bubble peaked and began to burst
2007 – two of Bear Sterns’ hedge funds collapsed proving the worthlessness of more than a $1 quadrillion in global derivatives.
2008 – the Great Recession started in the U.S.
2009 – the Great Recession started in Canada and the U.S. supposedly recovered.
2010 – languishing economies cloaked by government propaganda, cooked statistics and ass media complicity.
2011 – languishing economies cloaked by government propaganda, cooked statistics and ass media complicity.
2012 – commodities peaking, a slowdown in mining and languishing economies cloaked by government propaganda, cooked statistics and ass media complicity.
2013 – poised on the brink of the next Greater Recession.
How many years are you going to watch this and deny we are in a Stealth Depression cloaked by government propaganda, cooked statistics and ass media complicity?
How long are you going to watch your buying power dwindle and your standard of living decline before you unplug from the matrix, buy real assets like gold & silver and prepare by stockpiling essentials?
I’m not going to tell you what to do. I’ve been telling you what to do for more than five years. You already know what to do. When are you going to start?
BUY GOLD & SILVER AS SOON AS POSSIBLE
Here’s another reason to hurry up and buy gold & silver that you haven’t been told about by the so-called economic experts. Professor Antal E. Fekete, in the Daily Bell article Gold Backwardation and the Collapse of the Tacoma Bridge says that gold & silver will go into ‘backwardation’
The price of a long term commodities future contract is normally higher than a short term contract (called Contango) given the increased risk of holding a long term contract. In backwardation it’s the opposite. Permanent backwardation means a market is so out of whack it no longer serves a useful purpose.
This will destroy the official price of gold and that, in turn, will destroy the availability of these monetary metals. In other words, there will come a time when you will no longer be able to buy gold and silver but you will still be able to trade or barter. Fekete says, “permanent backwardation would shut down the gold futures markets. Gold could no longer be purchased at any price. Gold would only be available through barter. World trade is facing an avalanche-like transformation flattening out monetary economy into barter economy. Practically all economists, financial writers and market analysts have missed this possible scenario.”
Gold & silver demonstrates the stupidity of central banksters and lamescream economists. Gold and silver are NOT ordinary commodities and they do NOT obey the ordinary laws of economics. For instance, if we look at the Law of Supply and Demand for a commodity such as wheat, a higher wheat price induces farmers to grow fewer carrots and more wheat. The resulting increased supply of wheat then pushes the price of wheat lower to achieve somewhat of an equilibrium. This does NOT happen with gold & silver. Higher gold & silver prices induces people to hang on to their gold & silver and actually reduce available supply.
Conversely, a fall in the price of gold & silver, instead of scaring people into dumping their gold & silver, induces them to get rid of worthless fiat currency and buy MORE gold & silver. This is what we see now. The price of gold & silver got hammered. This increased the demand for gold & silver so much that dealers are sold out and buyers need to wait weeks or months for dealers to get re-supplied.
It is a testament to the stupidity of Fed Chairman, Ben Bernanke, his merry band of stooge banksters and global central banks that they thought dropping the price of gold & silver would scare people out of gold & silver and into dollars. Instead, the opposite happened. As prices got cheaper, more people wanted to buy gold & silver.
In Gold & Silver Restrictions Coming, I warned you that governments will try to shut down many gold & silver dealers and force the remainder to disclose customer’s names and addresses for eventual confiscation. Now I’m warning you that even the remaining dealers will someday have no remaining gold & silver inventory for you to buy so buy it now while you can.
Will this make gold & silver obsolete? No, of course not. As I’ve said repeatedly, gold & silver are NOT investments; they are protection and insurance against the collapse of fiat currency. 2,600 years ago, one ounce of gold could buy 350 loaves of bread. In the future, one ounce of gold will buy the same thing regardless whether the price of bread is $1,000 a loaf with gold at $350,000 or 10¢ a loaf with gold at $35. Everything else will be priced accordingly. And, paper money will be nothing more than kindling and ass wipe.
Is it possible that gold & silver prices will fall further? Yes, it is possible. In fact it is quite likely. Does it matter? No, it doesn’t matter because the “price” is the official paper price. The official paper price is meaningless because no one will sell at a lower price. Dealers will simply say they are “out of stock”. At lower prices, mines will shut down and supply will vanish and gold & silver will start to rise again.
The only meaningful price is the price you pay for physical gold and silver and that price is already 10%, 20% or as much as 30% more than the so-called official price. The price you pay is the REAL price. And if you wait much longer, you won’t be able to buy at ANY price. Govern yourself accordingly.
TACOMA NARROWS BRIDGE COLLAPSE
Professor Fekete uses the the 1940 collapse of the Tacoma Narrows suspension bridge as a comparison to today’s global economies
Elementary forced resonance with sustained 42 mile per hour wind provided an external periodic frequency that matched the bridge’s natural structural frequency causing “Galloping Gertie” to shake itself apart. Engineers have since learned to accommodate bridges’ natural resonance so today’s bridges are safer.
The comparison to today’s economic condition is apt because we are seeing greater and greater volatility in more and more asset bubbles. Rising and falling interest rates make prices rise and fall in a runaway oscillation where the “wind energy” is provided by the ever-increasing idiotic central bank injections of excess credit and endless money printing that kicks the economic system to ever higher levels of volatility. Like the bridge, the economic collapse begins slowly with the closing of the “gold window” in 1971, picks up speed with increasing credit and debt. And then suddenly it collapses.
We cannot spend our way to prosperity.
We cannot borrow our way out of debt.
We cannot pretend our way out of trouble.
Stay tuned. It’ll get worse.
May 13, 2013
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