Do you get the feeling there is something seriously wrong with the world right now? There appears to be a confluence of events that are in direct conflict. Capital markets are in disarray. Politicians are clueless and flailing about. Central Bankers have pressed their foot on the accelerator through the floorboard. Stock markets are hitting new highs. Real economic measurements are plunging. Corporations are slashing the hours of their workers. The entire Middle East is on the verge of revolution. Europe is in a deep depression and social unrest is reaching a crescendo.
I’m reminded of Vladimir Lenin’s quote about history:
“There are decades where nothing happens; and there are weeks where decades happen.”
I have a feeling in my gut that we are getting very close to a week when decades of history will unravel and historic events will mark a dramatic turn in world history. It’s just a feeling. Somebody will do something stupid and all hell will break loose.
I have a feeling that Japan has lit the fuse. Their stock maket has now soared by 77% in the last seven months and is accelerating upward at a rapid pace. Meanwhile, their 10Year bonds have declined by 45% in the last five days. Surging interest rates in a country with a debt to GDP ratio of 250% is suicide. The Yen has declined by 26% versus the USD in the last 6 months and 8% in the last month. These are not normal changes. The Japanese are taking a reckless gamble that will end in the Prime Minister committing hari kari.
The other extreme oddity occuring across the globe is the continuing drop in gold and silver prices even though demand for physical gold and silver is off the charts. The U.S. Mint has run out of gold and silver coins. Countries are repatriating physical gold. It takes weeks to get silver coins from dealers. People in China and India are buying gold and silver in a frenzy. JP Morgan’s vaults have the lowest amount of physical gold in history. There is a valid concern that there is not nearly enough physcial gold and silver to back up all of the paper gold and silver obligations.
The citizens of countries across the world are losing faith in their political leaders. They have already lost faith in the bankers. They are losing faith in fiat paper currencies. The natives are growing restless. Americans are buying guns in record numbers. The government is attempting override the 2nd amendment and disarm the citizens. Their fallback position has been to buy up all of the ammunition and not allow the citizens to buy it. The government is conducting military “exercises” in cities across the country. DHS is arming local police forces with military style weaponry. DHS and the military are accelerating the proliferation and use of domestic drones in communities around the country. Surveillance of citizens is increasing.
All is not well below the surface. The men behind the curtain are nervous. Their “solutions” are failing. I believe they are preparing for a scenario the average person on the street cannot fathom. I’ve been wrong before and I hope I’m wrong this time, but I’ve got a bad feeling.
What do you think will happen in the next six months?
- Markets will rise, the economy will recover, gold and silver will continue to fall, and people around the world will become more optimistic about the future.
- Markets will flatten out, along with gold and silver. The status quo will remain in effect and there will be no dramatic world events to change the course of history.
- A worldwide currency crisis will be created by the grand Japanese experiment leading to plunging markets across the globe. Gold and silver will rise as the only safe haven. Surging interest rates will bring down developed nations across the globe. The Middle East will explode, with wars and revolutions. The U.S. will be the least affected by the worldwide turmoil and the USD will rise.
- It is revealed that there is no gold or silver backing up most of the paper in the world. There is a worldwide run on banks, creating havoc and confusion. The masters of the fractional reserve banking system circle the wagons and attempt to keep people from withdrawing their money and their gold. The politicians fall into line behind their banker puppet masters. People around the world begin to realize they have been screwed. Violence and revolution breaks out in countries around the world. Obama calls out the troops. There are skirmishes and battles in cities and communities around the country. The urban areas begin to burn as the FSA stop receiving their EBT deposits.
- Some combination of 3 and 4.
- Don’t bother me. I’m busy texting someone about the American Idol finale and updating my status on Facebook.