Thursday, July 14, 2011

Jim Willie: Quantitative Easing Will Go Viral- US is Greece Times 100

Whether you call it QE to Infinity....AND BEYOND!! or Viral QE is insignificant. The fact remains that QE cannot end without an implosion of the current economic system.  Period.

Quantitative Easing will go viral next, enough to call it Global QE. Gold & Silver will react, gold first with solid gains, then silver with massive gains to follow. The common theme is the ruin of money. Watch Italy for an extremely robust toxic powerful addition to the entire dangerous mix. Its nation is very large, whose debts are huge.
My description of the G-7 Accord to sell down the Japanese Yen via backroom purchase of USTBonds was GLOBAL QE. With the mushroom of European sovereign debt ruin, the contagion to Italy and soon Greece, the declaration of junk status for Portugal and Ireland in addition to the toxic paper blowing from Mt Olympus, the new dawn of Global Financial Crisis part II has hit.

The gold breakout slams the Western bankers with all their chicanery in naked shorts of Gold & Silver, chicanery in dumping crude oil from reserves, chicanery in debt monetization of USTBonds, and chicanery in doctored economic reports. The crumbling monetary system continues. The sovereign debt contagion is in the process of jumping from Greece to Italy, a major escalation of bank risk and regional crisis. Spain is next. For context, consider that Italy is three times larger than Greece, Portugal, and Ireland combined. Italy has the largest debt burden and highest debt ratio in all of Europe. Italy has almost 60 million in population, six times larger than Greece. The grand daddy of all risk is the United States. Apart from the baseline risk of exceeding a rigidly enforced debt limit, the US looks remarkably like Greece in debt ratios. To be more accurate, the US is Greece times one hundred. Just as insolvent as a nation like Greece, just as absent in a fundamental industrial base. The second half recovery mantra nonsense in the USEconomy has been blatant propaganda for five years running. The second half will feature a powerful Gold & Silver breakout rally that will blow the socks off the public and investment community, and blow brown particulate matter with excretory chunks on banker faces. The keys are debt virus hitting Italy and Spain in Europe, and the recession accelerating in the United States. The US housing market is stuck in terminal decline, dragging down the big US banks which have toxic homes on their balance sheets. The kicker is the debt limit debate, and gross incompetence and lack of leadership exhibited within the USGovt.

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