I think Peter has nailed it here. Buy gold now!
US mint reports record silver eagle sales in first half of 2013
Please subscribe to smaulgld.com
Have you ever noticed talking heads saying, "yep, gold is going to really, really rally- here are the charts to prove it!" Then they proceed to show you how the purchase of gold is reflected in the price of tires in Fiji or some other abstract chart comparison to the 1950's.
Gold's dropping and will continue to drop. As long as the DOW is high MONEY will not flow into Gold and thereby push the price higher.
We should've sold when it was $1900!
AND **** The founding fathers would agree.
And quite honestly, I am scared to death.
There is another possibility here, other than what Peter is projecting. He rightly assumes that without QE, the economy will emplode. But what if that is exactly what they have decided to do?
I don't want to come across as a conspiracy nut. But what he is describing is a classic Catch 22. Permanent QE will destroy the dollar, lead to its demise as the reserve currency and to eventual hyper inflation. But no QE means depression. Perhaps the powers that be already know this, and have for a while. Perhaps this is why Homeland Security has been driving the price of Ammo out of reach, as a means of arming the bureaucracy and effectively disarming the public.
Economic Collapse makes all things possible for statists. Economic collapse and the resulting civil unrest that comes from fear and unemployment and possibly even hunger puts all options on the table, including the suspension of civil rights and perhaps even the suspension of the electoral process. Economic collapse radicalizes the public who will no doubt demand total centralized authority, if that is the only thing between them and hunger and homelessness. Remember, 70% of American families live from paycheck to paycheck.
The manipulation of the price of ammo, the creation of this massive domestic spying capability, a completely no growth fiscal policy and regulatory push; is this all coincidence? Or are we really led by a cadre of criminals that really does despise this country and its people, really wants a "change" that is beyond our wildest nightmare, and really has no intention of peaceably surrendering power.
Wasn't the election of 2012 odd? Was it really a fundamental demographic change that lead to the reelection of this President? Has any President, Democrat or Republican, even been reelected with such a dismal economic record and high unemployment rate? Obama is at 40% approval in Ohio. The economy is "better" than in November 2012. Does a country that possesses the technical prowess to seize control of car and sending it hurling at 150 mph through downtown LA also have the know-how to discretely manipulate electronic voting machines ... without a trace?
is anything beyond a Gov't that will allegedly leverage Government Agencies against citizens as a means of stymieing political opposition, collect all phone calls, emails, credit card transactions, perhaps blackmail a Supreme Court Justice (resulting in a decision that was edited at the very last moment, so that you can see the remnants of the opposite decision in the wording), intimidate harass the press, and put assault weapons in the hands of drug cartels to tip public opinion against the 2nd amendment.? Does this sound like an administration that will simply walk away in 2016?
I don't know
Maybe Berneke's little nuanced speech was one last attempt to "talk down" the system off the precipice. And maybe the subsequent free-fall in bonds was the last impetus needed to persuade the right people and put the end-game into action. A bond crash means a derivatives crash, as margins are called. Too many of the WRONG PEOPLE will lose too much. And no bailout will be politically feasible this time.
Peter assumes that QE will continue. But what if we are not driving off a cliff through mismanagement. What if, at this point, we are being pushed?
but I think you missed one. The third option, imho, is that they've lost "complete" control. They have lots of control, but have lost the ability to control everything in concert with everything else.
If that has happened under the system they've installed (fractional banking, everything based on stocks, all prosperity going to the top, every class getting robbed by those above, gaming the system is the only way to beat inflation...) under those rules, it could be possible that people would actually act the same way they are now simply as their only means to maintain their current status.
Think of it, we have CEOs compromising morals for higher profit. We have workers compromising their dreams for a buck. We have regulators compromising their duties for a bribe. All of these are perfectly normal actions when each is struggling to reach that next rung on the social ladder. Basically, commercialism and fascism are in self-runaway mode and the conductor, who locked himself in the front of the train, has died from a heart attack. Under this scenario, TPTB may still have the puppet strings of some things but those strings are breaking at an increased pace.
It's entirely possible that no one is really running the train.
Are bound and determined to go down in flames.
On some great and glorious day, the plain folks of the land will reach their heart's desire at last and the White House will be occupied by a downright fool and complete narcissistic moron.
That's a pretty wide window. When there is worldwide complicity, there still could be a ways to go before this fiat system ends. How it has gone on for this long is surprising. That these people are crafty and that they play dirty is clear. Thanks.
What he is saying is sound and Austrian economists almost always turn out to be right... BUT are very poor at timing. His vision is of the longer term. A lot will happen in the shorter term. Of course, if you don't want to trade and just invest in insurance, eventually what Peter (and Ron Paul and plenty of others) say will happen and eventually the precious metals will be priceless.
The sign will be when international fiat currencies implode. I have a theory that there will be dollarization first as the USD is the last fiat currency standing. Then there will be the dollar bubble and the end of fiat. Look for weakness to hit abroad as it has been doing before coming home to nest. 3 out of every 4 USD are outside the borders of the USA.
Want DP delivered to your inbox daily? Subscribe here: