Let me ask all you people a question.. why would be in their best interest to help out europe... europe fails and falls apart nothing steps in the way of the dollar being the currency of choice... its all a game...
the debt that people are in is a system of slavery.... look at the greeks they are selling their gold for money!!! the same may happen here!
AGXIIK offers a great response, almost Doc like....
-
Failure of the EU community, defaults on bonds, credit lock ups, and
economic failures will blow back on us like a typhoon We have $500
billion in Euro bonds in our banks plus a trillion or more of money in
Europe as a result of our corporations storing cash over seas. The
derivative markets and insurance made by the usual suspect like JPM
would destroy them. The European banks would fail catastrophically and
our banks would suffer 100% destruction of their capital bases.
Think we won't help Europe? Hell, we will fall all over ourselves to bail them out. Ben lied like a rug when he said he wouldn't start QE 3 What was operation Twist? QE 2 never stopped It morphed into QE3 and QE4 will be the Euro Bailout. Ben has lied so often and reflectively even he doesn't know when he is lying He continues to repeat the No More QE lie for so long he believes it himself
20% of our economy is in the Euro Zone. 20% of our S&P firms sales are in the Euro zone. 15% is directly in the PIGS, France and Germany. Their failure is our disaster with Depression levels of economic damage levels world wide.
Obama won't let it happen He wants to be relected. If Europe goes down the tubes not only will he not be reelected, he may not be able to serve out his term.
The disaster befalling us would destroy him and embed his legacy as the worst president and the one who could have 'helped' Europe when they needed him. He talked some trash the other day about Europe being 'wealthy' enough to manage their own problem We could build monuments to his consummate ignorance. But when the Fed yanks his chain and tells him to BAIL OUT EUROPE he will cry like a sissy while he pumps out the dollars.
He really hates Europe as the source of the colonial powers that supposedly enslaved his father's country but he loves the fact that Europe is already hobbled. He is enthralled by the European Socialist model of low expectations. He won't let their fail.
But and here is the big but, on the off chance that he decides to not help, you can be assured that China will. If Obama is so perverse that he would rather see Europe fail while presiding over the damage to this country, while seeking someone to blame, he might simply push off any tough decision, like the Afghan surge, jobs in America or the XL Pipeliine. China has a printing press too.
They can use our dollars and theirs to create a new reserve currency forcing Europe at the point of a financial gun to recognize the Yuan and other currencies baskets as the new reserve currency backing Europe.
They have been itching to demote the dollar to second class currency citizen This would be the ideal chance to smash our currency and us economically while giving them the leverage to control Europe's destiny
Beware Chinese bearing bailouts.
Beware Marxist Presidenta bearing ill will
20 comments:
Wow.....wish I had said that! Wish I could have said that. :)
Europe doesn't need help from the Fed......the ECB just needs to start printing Euro's
Silver will go even lower. Jp has to cover their shorts. They are fighting for their lives.
Jb Canada
"the debt that people are in is a system of slavery.... look at the greeks they are selling their gold for money!!! the same may happen here!"
It is happening here! I am case in point. I can't get work and the only work I can get is part time contract work and it is entirely due to the uncertainty in the economy. No one wants to commit to projects that have an uncertain future. This requires me not only to stop buying PMs but I will be forced to sell what I have to make ends meet. There is NO ONE, at any level of leadership, concerned about trying to make the economy grow and to stimulate business. The focus is on prolonging the gambling house games on WS and Europe is just another "sucker's bet". Just ask Jon Corzine! The worse case scenario that could happen with the economy, IS happening........a slow motion destruction of jobs and wealth for most in the country and the only ones that are doing well are the "old money" and the WS gamblers. And the gamblers are entering a new phase of theft by destroying long standing institutions of investment and making up rules as they pilfer accounts such as "rehypothication". The whole stack the smack is becoming another sucker's bet much like the tail wagging the dog. There is too much manipulation by JPM, CME and their ilk for us lowly turds to have ANY influence except to say "SEE, I TOLD YA SO!" on an an up day of PMs. My fear is that, in the not to distant future, they will find my decaying corpse lying with my arms around my PMs with an obituary that says, "Man dies of starvation holding on to useless metal bullion. JP Morgan files for rehypothication of unclaimed worthless bullion."
Yeah, that "stack the smack" is working real well, huh.
yup iluvpms is a troll
keep on stacking...
....and they'll keep on smacking. They have more money and influence than you, Anon 10:15.
"Man dies of starvation holding on to useless metal bullion..."
You did not specify what kind of metal bullion. If it were pure silver or gold, you can rest assured the man died of starvation from causes other than gold or silver being useless.
If gold is so useless, why do central banks hoard so much of it? If silver is so useless, why does the USGS indicate it may be the first element to become 'extinct' from lack of supply?
You can't eat gold (or silver, although colloidal and ionic silver can be consumed in minute amounts for its antimicrobial and healing properties), and you can't eat a Dollar, either. Both need to be exchanged at some point for real food. But over the past decade, holding oz of gold or silver would have allowed you to buy much more food than holding paper Dollars. In the longer term, that is the only thing that really matters.
"They have more money and influence than you,..."
What is that supposed to mean? That everyone should just give up and be resigned to being sheep led to the slaughterhouse?
If manipulation worked so wonderfully, why is gold not $250/Oz and silver $4/Oz right now?
In the grand scheme of things, anyone who bought silver at $9/Oz just a couple of years ago is still sitting on over 300% in profits. Think about it! What other physical investment has done better than silver?
Silver is the only 'commodity' being investigated right now by the CFTC for price manipulation, and it's an investigation that has lasted more than 3 years now. Think about it: Why has is it taking more than 3 years to find out the obvious? Answer: Because the real answer would put an end to manipulation and bring the death of fiat paper currency ever closer.
Silver is not at $4 oz because too many people are paying attention and the asians have woken up to it.
I hope I can buy in silver at $ 24 - $26
JP is relentless. Lets all dump our silver based stocks and let them fall and buy it back at lower prices
JB Canada
"europe fails and falls apart nothing steps in the way of the dollar being the currency of choice..."
On the contrary, if Europe fails, the whole financial system of the US and eventually the rest of the world would fail. It should be clear by now that the system is all delicately and intricately connected, because the world shares a common form of fiat paper currency system. That is why they will bail out Europe, the same way they bailed out the US. But the bailing out just means printing more 'money'. No wealth or growth or higher standard of living will be created.
But how can more 'money' not result in more wealth? Because it's counterfeit money! Real money would cancel out all debts, but real money is hard to come by and has to be worked for. Gold and silver are real money. Always have been, and always will.
dude, ilumpms is not a troll. Do you even read the comments section on a consistent basis?
The monetary system is built upon forever expanding fiat dollars. When faced with a choice b/w deleveraging/leveraging, they have and will choose the latter. Otherwise, the system implodes. High UE, low tax revenue, growth stalls, etc. It's a nasty feedback loop. This isn't 1980 - they can't raise interest rates to X% - ALL revenue would go towards the interest and the system would collapse right away.
It is easier to print to satisfy the people, extend the timeline of the monetary system which everyone knows will collapse via hyperinflation.
Make no mistake this is a battle b/w the euro and US$. But it's really not a battle - the euro won from the start since the current monetary system was meant to fall. I mean, it's gone on for about a 100 years, that's pretty remarkable.
So keep in mind the euro was launched in 1999. If you look into the mechanics of the currency, it is pretty remarkable and the future of currencies. In short, the ECB marks to market gold on its balance sheet at the floating price. This isn't a gold standard nor is it today's paper system. It's down the middle - use euro currency for trade, gold for saving. All CB's will have gold on their Balance Sheet and currency for trade, gold for saving.
The problem with the current monetary system is that the US, as world reserve currency, can print in unlimited dollars. It has worked for a long time and the US primarily were the benefactors. But the problem is the system does not protect savers. Imagine you, a saver, saving fiat dollars. Let's say you have a billion in cash, investments, etc. ie. paper investments. Everyday, your dollar is eroded in purchasing power. You are at the mercy of the printing press which is at the mercy of the US Gov't / obligations of being the world reserve currency.
This isn't a right/wrong perspective - the system is what it is. We always point out the cons but there were/are many positives to the system.
So the future of the euro addresses the problem for savers. For example, in the future, any central bank can print but this will, in short, raise the price of gold in local currency. So the savers of the world are protected and central banks/gov'ts can print honestly. In other words, savers can protect themselves unlike today's system where we buy physical gold/silver and wait until the new system reflects the true purchasing power of the wealth.
It's just time for a new system as the trust/confidence of this current one is in its last phases.
Well, let's be clear about something. The euro isn't going to collapse unless the ECB is allowed to print enormous amounts of new cash. In the final analysis, I don't think that the political will of Germany as a whole will allow that. Instead, the crisis is being engineered to allow the present state of the euroZONE ORGANIZATION to implode. The EU has too much at stake to let the money itself burn to ashes, so a catastrophic devaluation will be allowed to take place. This will naturally spark a chain reaction in the US, which will force the FED to print money in ludicrous amounts. This in turn will drive up the notional price of gold (the world's actual 'reserve currency')in terms of dollars to stratospheric heights. Bear in mind then that Europe as a whole has more than 20,000 tonnes of gold, so as the dollar takes an inflationary nose-dive due to Europe's deflationary counterpart, Europe becomes effectively debt-free in dollar terms, with Germany as the core in charge of a newly reinvigorated euro, and thus Eurpoe itself. And voila! --a new world superpower emerges --GERMANY-- at the same time as the US becomes a smoldering, monetary, third-world ruin. This is what the term "currency war" really means.
Forget China. They have far too many problems of their own and a huge chunk of their own change will go up in smoke with the dollar at the same time. Not to mention the destruction of a huge portion of their export industry.
With all due respect, using "...our dollars and theirs to create a new reserve currency forcing Europe at the point of a financial gun to recognize the Yuan and other currencies baskets as the new reserve currency backing Europe" is even less than a pipe dream.
I stand with FOFOA, whose position is that the euro was designed with full knowledge that the dollar system would inevitably collapse with the weight of debt, and intended to spontaneously emerge as a completely stable, globally recognized, gold/oil-backed currency under precisely the same conditions.
Time.... I got the timing wrong :-( ...just gotta be brave :-)
Colin Your post about the Euro becoming the dominant currency is certainly counterintuitive to others thinking of the direction of the dollar, Yuan or any other currency. I hadn't thought of that notion.
But I don't think the Europeans have the political or economic/social will to pull it together. It is pretty much a given that the US will print itself into a disaster that is in the making now. But the idea of a currency that was enforced on 17 very different countries so as to compete with the US does not make it a strong currency. The currency was put in place when the respectictive economies of the EURO zone were in relatively good shape. It was not stress tested against a severe recession, the huge hit from our junk bond sub prime offload to their shores or the La Dolce Vita lifestyle of the PIGS.
We are dealing with our own financial problems and we are THE reserve currency and can print to the moon. The Euro is hobbled by the constitution to not print I bet they will print however
This story is still being written. There are chapters forthcoming that will be so extraordinary that we simple stackers might actually be part of the narrative. But never count out China as a real and agressive adversary who does not like the yoke of being a financial colony of the US placed over its neck. China, Russia, India and other powerful nations would love to see us knocked down a peg or three.
Germany is another story It's economy is being hit hard right now with manufacturing indicators pointing downward. The cost to the German economy of not bailing out the Euro will be severe and crippling. The German reunification was very costly in its own right. A bailout would generate the terror of inflation, something that weighs heavily on the memories of the politicians in power today. Germany WILL exit the Euro to save itself of the worst of the damage. That's being worked through the Reichstag. A wealth fund is being set up under the DMark.
As to it being a super power--I would never underestimate the resourcefulness, logic, and strength of the German people. They could rise above the ash heap of destruction if the Euro fails. Germany could probably weather that storm.
Norman, on a personal level I understand your situation My business has been smacked hard by this Depression. You are like millions of other Americans who have been blasted by the insane corruption in lending, economic policies punitive tax measures and extortionate regulations that do nothing to help you. Your inner resources are all you have but you have them and I am sure you have much more than you know.
I work with businesses currently who have been hit hard. Most are struggling to stay alive. Having working with thousands of business owners over the last 36 years, I can say with absolute certainty that this time period is worse than all the last 3 recessions combined.
My suggestions to you would include working closely with like minded people sharingy your skills, focus intently on marketing your skills and business. Cut out every cost and get rid of every bit of stuff and junk you have in your life. This is a time for doubling marketing even if it means cold calling, working door to door in areas where there is business, visiting every business that is open to see how you can help them with their business. Even if it does not mean a pay check, it gets you out there. With every breath you take, market yourself People love a striving entrepreneur who is willing to put his ass on the line.
It's almost like starting your business over again. And if you were not in business, you most certainly are now since you are not working for the man. You are an ACCIDENTAL ENTREPRENEUR You are a free man and have no limits on your directions.
Take advantage of this opportunity to sell yourself to anyone who needs your skills. I wish you the best
AGXIIK,I fully understand your points and how you arrived at them. Everything appears on the surface to be just as you say. Given the current system of fiat currencies and their race to the bottom, a great many things appear to be simply the consequence of complex random forces.
However, bear in mind that the true seat of power behind the euro is the BIS, which is the world's oldest international financial institution (officially since 1930). Just take some time to meditate on its very name, and what that implies. First of all, just where did these guys get the power to "promote central bank cooperation" in the first place? And on what basis? Gold.
Now, this bank is clearly the true center of force behind the euro. The political structure of the eurozone is effectively just a facade for public consumption. The real seat of power belongs to those who actually control a given monetary system, and in this case, it's the B.I.S.
Do you really think it likely that such an organization --whose power was always based on its gold holdings-- would allow its primary instrument of power to actually be destroyed? Moreover, are you aware that, unlike the Federal Reserve, each European central bank always lists its gold holdings AND CURRENT DOLLAR VALUE in every quarterly report? These things and more are clues to what lies behind the surface of the euro and the eurozone. You might be interested in this article, http://thedailybell.com/1327/BIS-Trading-With-the-Enemy-The-Whole-Story.html in which you will find such telling gems as:
"While no one officially determined that the BIS should supplant other centers for discussion, there was a growing tendency for monetary and banking affairs to be referred to Basel. Because of this it became increasingly natural for the Central Banks to find out what was happening in other countries in times of crises.
Inquiries by telephone could give them information as to gold movements and exchange rates in a number of countries. They could sometimes get the most direct news from New York through Basel. And each country's own representative in Basel could keep them in touch WITH THE SHAPING OF PLANS AND THEORIES, if they wished to do so. (24)"
In brief, nothing is as it appears on the surface.
Good discussion, though. Thanks.
well... seems like europe just said the are not going to print... it seems hard for me to see them flipping anytime soon. As a result, we will experience a lehman 2008 again but on a larger scale. IMO i do not see this as a problem, once the world stops looking at europe and the smaller states break away, all eyes will be on the fed.... we will probabaly have a liquidity freeze before we shift to the america issue of debt.
DOC: thanks for having my question posted up there.
Those who think im a troll are ignorant... I just went back and reread bob moriarty's articles before the silver crash... maybe you guys should do the same... was he a troll for calling a top? No but he sure did make his subscribers alot of money by cashing out.
Did alot of these other analysts tell their subscribers to cash out?? NOPE!! I should know!!! I subscribe to alot of them just to see what htey say... alll they say is this time is going to be different!!! NOT ONE OF THEM SAID TO CASH OUT DURING THE PARABOLIC RUN!!!!
Just to refresh your minds here is bobs article:
1: FUMBLING FOR A BOTTOM
http://www.321gold.com/editorials/moriarty/moriarty120511.html
2: FACTS ON SILVER: this one is good an
http://www.321gold.com/editorials/moriarty/moriarty042511.html
"well... seems like europe just said the are not going to print... it seems hard for me to see them flipping anytime soon. As a result, we will experience a lehman 2008 again but on a larger scale."
Right on. Exactly my point. Massive devaluation in Europe ----> Leads to massive inflation in America ---> Results in the spontaneous rise of the next global reserve currency: the euro.
Actually, this is a return to a gold standard, but this time not in the form of some arithmetically fixed price in terms of a paper currency, but a system based on exactly the opposite equation, in which paper currencies are continuously revalued in terms of the ongoing purchasing power of gold. This allows for the continued use of fiat currencies, but in a more limited sense that's kept rational by the marketplace itself. As you're probably aware, this has been defined as the "freegold" concept.
Colin B, I think it's safe to say we owe a lot to A/FOA/FOFOA and the other amazing contributors to his blog. And that is the understatement of a lifetime :)
"well... seems like europe just said the are not going to print... it seems hard for me to see them flipping anytime soon. As a result, we will experience a lehman 2008 again but on a larger scale."
Let's keep in mind two unique aspects of the euro.
1. the euro has severed its link to gold
2. the euro has severed its link to the nation state.
#1 Colin covered - they mark to market every month the paper price of gold. The gold standard 'fixed' the price of gold. "Free gold" is as the name implies.
#2 Let's compare US to Europe. The equivalent to the US Gov't is each country within Europe. The equivalent to the Fed is the ECB.
In the US, the USG runs massive deficits and needs/demands the Fed to print dollars to buy USG bonds no one wants to buy. The currency therefore is at the whim of the USG. Today, the Fed is forced to debase the base reserves by printing fresh dollars. The USG can't stop their spending and thus the US$ is at the mercy of the nation state.
Let's look at the ECB. They are not the central bank for any specific country within the eurozone. Their purpose is to ensure price stability of the euro and basically ensure smooth operation of the banking system. In short, they can print to liquidate banks. In turn, the banks must provide 'good' collateral. Greece or Italy cannot force the ECB to print to fund their deficits. The ECB is essentially saying - we cannot do that - we are independent - it is the politicians problem of how to deal with deficits. So print for banks yes, not for gov't deficits.
What we are seeing is a) euro countries rates rising as they try to get their house in order ie. budget agreements b) european banks needing liquidity
So the ECB will print to give the banks further life support. Eventually, the ECB will likely print and own most of the 'assets' on the banks balance sheet. Keep in mind: if the banks do not keep getting liquidity and their collateral stinks (ie. the value has gone down), who can they sell to? The euro banks would be dead on the spot. So they're kept alive. The world would stop functioning without banks.
But also keep in mind the image of a balance sheet. As the ECB prints, it adds more liabilities. They need an off-setting rise on the asset side. As the ECB's bank collateral is marked down to market value (eventually much lower than what they bought it for from the bank), they need an off-setting rise on the asset side or a decrease on the liability side. Generally speaking, the off-setting rise on the asset side can be mostly the rise in gold price. Interestingly, gold is listed as #1 on the ECB's balance sheet on the asset side.
Makes you wonder doesn't it?
Sorry you cannot find steady work Norton and will need to sell your Phyzz to keep afloat. The lack of jobs in this country is pathetic. Boeing recently hired 140 fabricators for it's new plane here in Charleston. 50,000 people applied. That's insane. This country hopefully can get better with Ron Paul. He at least seems to give a shit. Good luck to you Norton. Hang in there.
Post a Comment