Yes, my friends, the “Big One” has unequivocally, irreversibly commenced – which is why the time is NOW to protect yourself, while you still can.
by Andy Hoffman, Miles Franklin:
In what could be the most ominous statement regarding the global economic future of all time, Chinese President Xi Jinping this morning said “this summer’s Yuan devaluation was needed to defuse systemic risks.” In other words, not only proving how vulnerable the world is to even the slightest alteration of the cancerous status quo – in suggesting a mere 5% devaluation was required to stave off collapse; but demonstrating how utterly clueless the “leaders” of the world’s most powerful (and in most cases, insolvent) financial entities have become.
To wit, there’s a reason I predicted said Yuan devaluation – both four months prior, and that very day – would be the “upcoming, cataclysmic, financial big bang to end all big bangs.” And trust me, despite the PBOC’s comical lies statements to the contrary, the first 5% was just “jacks for starters”; as a desperate China does everything in its power to “win” the “final currency war” I warned of nearly three years ago, by devaluing the Yuan into oblivion. Heck, even China’s own state-owned agencies are assuming a 20% devaluation in their forecasts. And if said “systemic risks” were assuaged by a 5% devaluation, why did the head of the state-owned China Banking and Regulatory Commission this morningespouse “the current situation is more severe than the 2008 financial crisis?” And trust me, when the Chinese do inevitably devalue – by at least 20%, likely in the next 6-12 months, as the global economic collapse accelerates – you’ll know exactly what I mean by “cataclysmic,” regarding financial markets; commodities; currencies; and political, geopolitical, and social unrest.
Of course, the fact that devaluing one’s currency not only doesn’t “increase manufacturing market share”; but to the contrary, makes matters much worse – will be forever ignored by the Keynesian Keystone Kops and power hungry financial and political sociopaths running our nations, until the bitter end when they are usurped by dangerous demagogues and freedom-destroying totalitarian states.
I mean, the “Land of the Setting Sun” has been at QE, ZIRP, and all other means of currency destruction longer than anyone else. And following 2½ years of Abenomics (it was supposed to last only two, but of course will never end), Japan now sports the largest trade deficit in the nation’s history, getting worse with each passing month. Throw in the “demographic hell” I first wrote of three years ago, which clearly is dramatically accelerating, and the case I’ve long made that Japan will be the first “first world” nation to experience 21st century hyperinflation couldn’t be stronger.
Not that that same case can’t be made for every nation on the planet – which in due time, is guaranteed to occur. Heck, the Brazilian Real has collapsed below 4.0 to the dollar this morning – depicting the “Death of the BRICS” I have vehemently warned of for the past year; not to mention, last week. My friends, more than a quarter of the world’s population lives in these five terminally cancerous economies; and with the exception of China, which will join the other four (Brazil, Russia, India, and South Africa) shortly (when it devalues the Yuan further), every one of their currencies is trading at an all-time low.
As are the “Fragile Five” nations of India, Indonesia, Brazil, Turkey, and South Africa – who, rightfully so, were feared two years back of being candidates for major currency crises. Not to mention, every “commodity currency” on the planet – including “first worlders” like Canada, Mexico, and Australia. And oh yeah, the world’s “financial leaders” in Europe and Japan – whose currencies aren’t yet at all-time lows, but will be shortly. And last but not least, the “top of the totem” pole – i.e., the last “reserve currency” the world will see for generations – will ultimately be usurped by items of real value like gold and silver, as faith in the Central bank that has destroyed it dies completely, permanently, and irreversibly.
Which is clearly occurring as we speak; and particularly, following last week’s pathetic FOMC display – when not only did Whirlybird Janet make it crystal clear that ZIRP to Infinity was possible (nota bene, guaranteed); but one FOMC member went so far as to forecast a negative Fed Funds rate in 2016. The fact that 82% of economic “experts” last month predicted a September rate hike(and for that matter, that “smart money” is longer the stock market than at any time in history) should tell you all you need to know of how stupid, compromised, or both the status quo-protecting financial establishment has become. As clearly, anyone that believed the Fed would raise rates amidst an historic revenue recession; near record high sales/inventory ratio; nearly 40-year low in commodity prices; an all-time low in global currencies; record, skyrocketing worldwide debts; and oh yeah, plunging financial markets; is a certified LIAR or IDIOT, with no qualifying statements.
Sure, the Fed wanted to raise rates by an infinitesimal quarter point to – LOL – “prove” QE “worked.” However, the only way it was going to be able to accomplish such a (meaningless) feat was by using every remaining weapon in its money printing, market manipulation, and propaganda “arsenal” – to try and create a false impression of strength. And guess what? Despite all such tools being used simultaneously, at full force, they not only failed, but decidedly so. As clearly, we are back amidst a 2008-like crisis, with the only difference – other than the tens of trillions of additional debt; dramatically expanded industrial overcapacity; collapsing commodities and currencies; and exploding political and social unrest – being the relentless support of “favored” markets like stocks and bonds, and the suppression of “unfavored” ones like gold and silver. Or, as I like to call them, the “barometers of bad tidings.”
Yes, my friends, the “Big One” has unequivocally, irreversibly commenced – which is why the time is NOW to protect yourself, while you still can. And not with PAPER investments of any kind – which are rapidly dissolving into the ether – but the only assetsproven throughout history to maintain purchasing power in times of crisis. Let alone, when said crisis is the collapse of history’s largest, most destructive fiat currency Ponzi scheme – at a time ofrecord high physical gold and silver demand; record low above ground inventories; and the bleakest production outlook in perhapscenturies.
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