Guest Post by Martin Armstrong
This is what I have been saying. You cannot forecast something you have never witnessed and has not taken place ever before. It takes a computer with a vast database to see things unfold according to historical patterns, but in markets that never existed before.
We have a liquidity crisis unfolding because of massive uncertainty. In October, Draghi leaves and Lagarde enters who believes the answer is to eliminate cash. This is causing dollar hoarding and there are more $100 bills in circulation now with 70% of the physical money supply being hoarded OUTSIDE the USA. Even Australia is hunting money aggressively. They are even proposing nano-chips in $50 bills and up to be able to track hoarding. So smart Australian’s won’t hoard A$ – they will use foreign currencies. Dah?
I mean what I say that the central banks are TRAPPED!!!!! People have NO IDEA what we face. The system is unraveling but not even those in government have understood how it was interwoven to begin with. This is all part of how we are headed into a major Monetary Crisis Cycle and I fear they will misunderstand it once again and create more stupid laws that will bring the entire house of cards down by the time we reach 2032.
If you just play out what has taken place in socialism, there will be $400 trillion of unfunded liabilities by the time we get to 2032. That cannot be dealt with and I suspect we will see more authoritarian usurpation down the line. This is also why I have stated, my fear is NOT Trump, it is what comes AFTER Trump!
Governments have functioned on vote for me and I will rob someone else for you legally with a pen. This is how ALL Republics die. The very purpose of civilization was that coming together created a synergy that was beneficial for all. When government has always turned against one class for the benefit of another, the purpose of civilization ceases to exist and you revert back to separatism. Read Atlas Shrugged. When that was published, all the socialists hated it.
“When you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal not in goods, but in favors; when you see that men get rich more easily by graft than by work, and your laws no longer protect you against them, but protect them against you. . . you may know that your society is doomed.”
“Atlas Shrugged” – Ayn Rand
- p. 413 ; Francisco d’Anconia to Bertram Scudder
They say it is wrong to discriminate for race, religion, sex, or sexual orientation. But it’s OK to discriminate against anyone who disagrees with those in power or those with socialistic agendas if they have material wealth above average. This type of discrimination is perfectly fine because it suits their agenda. They cannot survive without trying to live off of other people’s money. What happens when the productive class refuses to produce? When Atlas Shrugged, it all comes crashing down.
Do you know that when Ayn Rand published that book, she received the worst reviews ever. The press was socialistic agreeing with FDR. Despite having the press trying to prevent people from reading it fearing the book would be against their socialistic philosophy, Atlas Shrugged has been ranked as #2 in the most influential books just behind the Bible ever written. People like Bernie Sanders and Elizabeth Warren refuse to listen. They want to create utopia for themselves, convert the productive class into slaves, and expect them to work without enjoying the fruits of their own labor.
Here is the survey’s list of the most influential books:
1. The Bible.
2. “Atlas Shrugged,” by Ayn Rand.
3. “The Road Less Traveled,” by M. Scott Peck.
4. “To Kill a Mockingbird,” by Harper Lee.
5. “The Lord of the Rings,” by J. R. R. Tolkien.
So buckle up. We are going to witness things many never even thought were possible. This may be the real confrontation between good & evil.
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The governments everywhere have swept their debt under the rug. The rug being pension funds that are obligated to invest in AAA rated government bonds by law.
The sooner the “real” market price of these bonds is discovered. The earlier people can adjust to having to work more years.
It has been my experience that people in general are past masters at denial. Like the man says, buckle-up, we are going on a wild ride.
Denial, not just a river!
Current global central bank debt exceeds $270 trillion with contingent liabilities of +$300 trillion. $400 trillion by 2032 is a bit under the mark.
Impeachment distracts walmartians while the Fed dumps $340bn into the illiquid economy to prop the thing up. Meanwhile stupid people are “living the dream”.
Where the hell is Geitner when you need him?
I doubt we make it to 2032, as one nation, at least. Mike Adams, the Health Ranger, mentioned several days ago that his contacts in the military think that we are headed toward a very localized Civil War that will split the nation along several lines and we will cease to exist a one America by 2025.
It makes sense. Who in the hell is going to fight to keep California in the Union? Or any one of half a dozen other Sh%t hole blue states. Good riddance.
As long as we get to keep the nukes.
The problem would be the shit holes fighting to dominate and exploit the productive people. Socialism must be aggressive because it is a parasite which produces less than it consumes.
And here we go!
I summarized a story but my electricity blipped off and I lost it. Now, you get the nutshell…
I mailed a package last spring which was delayed at the first large post office it reached after leaving the pony express rider’s hand outside my house. (A joke, barely.) After ten days, when I inquired about the delayed arrival, I discovered the “delay” on the USPS site changed to “damaged/lost.” I applied for and received the dollar value I’d placed on the package, plus the $50 the post office automatically promises for Priority Packages. A money order for $200 went one way, the $50 went into my pocket for postage and good liqueur.
Could it have been the contents? Sure. But, very similar glug-glugging contents were mailed at the same time and they made it much further than this particular chipped-hundred-dollar-bill carrying box was going.
I have quit collecting hundred dollar bills that are too new looking. I purchase money orders now, also. And if someone wants some Vintage Pelegrino Cinnamon Tequilla they will just have to come by the Elephant Rocks and get it.
These unfunded liability numbers are meaningless.
100 years ago, a dollar was a huge value, normal grocery items were priced in pennies/nickles/dimes. It took a long time to depreciate that 1 dollar bill, yet we still live with pennies.
all these scary figures, calculated in Trillions, were always with humanity, the figures were just in millions or billions, but they were still un-payable back then, just as they are now.
We have a long way to go before any of this becomes an issue.
This author is a 1% citizen, and he is scared his tax rate will return to the 70% range, which is was a few decades ago.
These people have so much wealth, they will never be able to spend it on themselves, so they seek to influence public policy, so that they can pass their wealth down through generations, and be able to die knowing they have a legacy.
Pride and greed, nothing more.
What happens when people try to start drawing on the unfunded liabilities?
That is the problem, we are starting to get within a decade of some of them.
As far as the author trying to protect his savings/wealth; what is the point in saving if it will all get inflated away or money becomes worthless?
If you had $1,000 and someone took it from you, whether through just grabbing it out of your hands or inflating the value of it to zero, isn’t both stealing?
And that is why people are upset at what is going on.
People are being promised things that can never be paid for, and then, in a last ditch effort to make those promises good, the money is debased.
Oh pshaw, this entire premise of a liquidity crisis is just silly. They have the printer, they have the paper and they have the digital. That means they can print, print print and we will take that paper or those numbers and use them to get tangibles. The push is for cashless, that can’t really happen so long as the CIA and other similar organizations continue to fund themselves via drugs.
That (print money to cover over problems or losses) is already starting to happen.
The problem is while maybe printing up a few hundred billion may be ‘ok’, there is a point at which the whole system will start to go; first inflation and then maybe even hyperinflation.
The problem or the breaking point is the general public perception as to how safe and stable the system is with their money in the bank or T bills/bonds. If at some point people think their moeny is not safe in a bank, or worse, T bills/bonds are at risk; then the problems start as everyone pulls everything out of the various financial systems. A currency crisis on top of a debt crisis on top of a general breakdown in the multiple financial systems.
It comes down to what has been called honest money which is similar to Sound Money, that is the distinctive singular sound of Silver hitting a counter. Ask any old time cashier or money counter and they will tell you how they could pour out a bag of coins and tell if there were any Silver coins by sound. I am one of them.
The issue of dishonest money boils down to a Dollar has no definition in a fiat regime. In 1792 it was 371.25 grains of pure Silver. You could coin more Silver Dollars and each is worth the same forever-371.25 grains of pure Silver. The Silver or Gold Certificate was redeemable for X number times 371.25 grains of pure Silver.
The fiat Dollar has no backing and every time one is printed or digitally summoned it steals a tiny bit of value from every other Dollar already in existence. The Federal Reserve steals from every person holding US currency every time it prints or digitally summons an additional Dollar. The FED should be ended. Every currency should have a real, tangible backing.
Once upon a time I bet my wife a dollar that I could pick a silver dime out of ten other dimes, with my eyes closed. I did but she never paid off.
Start the Impeachment of Trump (and the purge of all Conservatives). Whites have been unable to end (by voting) Affirmative Discrimination (Reconstruction II), and “The Great Leftist Society” which has destroyed the Greatest Meritocracy the World had ever known, bled to death by NYC Crony Capitalism, parasitic Welfare and the Public (dis)Education Malignancy, and by Warfare for TPTB MIC’s New World Order. Barbarians are pouring through the gates; the leftist Stormfront has blackened the skies and is tearing society apart; let TPTB bring down the economy before Nov 2020 like they have been planning since Trump’s election; churn out NYC MSM Propaganda, silence every Conservative and kick them in the balls really hard this time; throw the Red Flags and grab people 24/7; unleash Antifa and the FSA Communist Dogs; let their Revolution and government/corporate oppressive Pograms against Whites and Christ become (Red) hot like in all previous Communist countries; push Conservatives to hit the Counter Revolution button (like happened in Spain in 1936 when Antifa began burning churches, businesses, farms and murdering Conservatives). Healing and Restoration cannot occur unless the cancer is removed.
I don’t think that anyone thinks such a course of action would or could work, plus I think a lot of people would prefer a more peaceful solution.
The big part of the problem is that the liabilities are so large that nothing can realistically be done to fix the problems; the best one can hope for is to invest in assets that will hold their own and hope for the best.
I myself, recently started buying into mining stocks and hold some foreign currency.
Looey..
Do you think about what you are writing before you hit the send button?
You should because if TBPr’s figure out you are as dumb as the things you are parroting they will chew you up.
So you don’t think the liabilities are insurmountable at this point?
Lets pretend we take everything, or a large part from the 1%, then what?
Even that is not enough to really fix things, plus they will probably move out whatever they got left.
The real problem is that we got a spending problem. Right now the government can’t even stay within $1 trillion of what they are taking in each year, and no amount of tinkering with the tax system is going to ever fix that problem by raising revenue high enough to cover all that extra spending.
Even if somehow we did raise enough tax revenue in a year to fix it, the government would just spend more on top of that.
And of course, people keep voting in people that can’t stay within a trillion of tax revenue, and then wonder why things seem to be getting worse.
I fear at some point we are going to have hyperinflation in the USD, since they way people vote and the government acts, that is the only possible outcome.
Loose screws..
Luckily for you I have a life so I don’t have time to show you how you keep contradicting yourself. Maybe tonight.
If Dizzy has a brain, he’ll realize he just had his ass handed to him.
Grog.
You’re as dumb as he is.
Why thank you Flea. Coming from you, I value your opinion about as much as I would an all expenses paid week-long vacation to Somalia.
I want Peace too but the Leftist want Chaos, a Communist Revolution, and liquidation of their enemies. They are forcing tyranny down Conservatives throats and forcing the choice of either accepting their chains or Resist.
I live in the metro D.C. statistical area. The growth in population, and wealth is incredible. New homes, developments, strip malls…. never ending and expanding. People are moving in for government and contractor jobs. High paying, great benefits. The wealth of the nation is pouring in to this area at the expense of the deplorables in fly over country. The vultures are picking the bones clean of the republic.
This Turning is going to be a big one. I hope I live long enough to see the end of the Crisis. It will be interesting to say the least.
A man sooner forgets the death of his father than the loss of his patrimony. In other words, it really pisses people off when you steal their stuff. Machiavelli
That is what I find amazing with negative interest rates on some bank accounts in Europe. Normally, no one would keep cash outside of a bank account since you use to be able to get a few percent on the cash each year, plus it was safer. Even $1,000 whatever would give you $30 or $50 extra at the end of the year.
Now, you lose money in most accounts over there. While someone with only 1,000 euros may not really care, I can imagine that someone with a few million losing ten or twenty thousand euros per year will start thinking about getting a safe in their house, or, if a company, a vault and guards to protect their cash.
There is also a secondary effect if people start taking money out of the bank, it is no longer there to be loaned against; so as rates got more negative that effect will get worse.
Getting a safe to protect your money against inflation…..?!?
A safe would protect money against negative interest rates.
A safe could also be used to store foreign currency in case of the local currency being hyperinflated.
i.e. You don’t want to put the foreign currency in a local bank account because if the government enacts capital controls that could decree that those funds would be forced converted into the local currency, which is not what you want to hold in the event of hyperinflation.
At the moment, while I do hold a small amount of CAD in cash on me, I also have a bank account at a bank in Canada holding some CAD, outside of US jurisdiction, in case of such a scenario. As long as the network works I can access the funds or change them into USD when I want to spend them. If things get really bad in the US, then I can go stay outside of the US for a while, until things settle down, and then go back to the US. (Hopefully, things will never get that bad in the US.)
Good luck. I suspect the evil Fed money barons have a strong enough hold on Canada to prevent any real opposition to whatever meltdown scenario they are pursuing.
Note: if you really understand that fiat money eventually goes to zero, then you want hard assets that might appreciate or at least be useful / acceptable in trade as depreciation of the currency (inflation) occurs. Let us suppose that the moneylenders do in fact understand that fiat currency eventually goes to zero. They then have two choices:
(1) Shift their holdings into hard assets
(2) Continue to ride the whirlwind of fiat inflation, until the opportune moment to jump ship and leave someone else holding the bag arrives.
Option 2 is what they appear to be doing. This also assumes that no one else understands what they are up to (which may be a plan, as few Americans are economically educated these days, most get Keynesian-derived garbage) and there will be willing suckers to take their currency in exchange for hard assets at the last minute.
Now let’s wonder if the bankers hold enough obligatory notes to ensnare Canada in their coils. I suspect (given Trudeau lacks enough brain cells to counterbalance an amoeba) that is the case; if Canada’s socialist safety net has cost enough, the bankers may in fact own Canada, if not most of the world.
We must open our eyes, reject debt as a lifestyle and become self-sufficient as much as possible, to deny the bankers their goals.
Originally, I thought that something like gold or silver would be the choice of what to hold in the event of hyperinflation; BUT after reading some works and the work of John Reed (Hyperinflation and Deflation, 2nd edition http://www.johntreed.net/hyperinflationdepression.html )
He has a long discussion about all of the aspects of inflation, hyperinflation and depression. In his work and blogs he cites to “When Money Dies” which is about the hyperinflation in Germany in 1923, and “Blockade The Diary of an Austrian Middle-Class Woman1914-1924” by Anna Eisenmenger. (PDF copies of these two are available online for download. I have had the chance to read both plus John Reed’s work.)
In both cases about hyperinflation, there is little to no mention of gold or silver being used or even desired by the effected population. What was of great use and wanted in those situations, was foreign currency, that still retained its purchasing power and usable in the effected countries.
While Canada has its share of problems, and is even worse in some categories than the US, they are at least not as overspending as much as a shared of GDP (5% for Canada verse about 30% for the US), and within four hours driving distance of where I live.
Reed also recommends holding other currencies in a bank account outside the US and even having some currency in a safe deposit box outside of the US. He does have some gold and junk silver but only because it was left in a will by a brother-in-law to his wife and she wanted to hold onto it as a memento of her brother and compromised on the junk silver purchase. Reed does not really like gold or silver, but in his view, the junk silver is better since there are industrial uses for silver that would give it an intrinsic value, plus with silver being in much smaller units than gold it makes it more likely that one could use silver to make purchases better in an emergency. (i.e. Imagine wanting to by a bag of potatoes in a hyperinflation scenario. Would you rather be using one oz silver dollars to make the purchase or one oz gold dollars? In such a situation it is highly unlikely that the seller would be able to give change, especially if the purchase was being done with an oz of gold.)
As a side note, I do hold a few US Liberty silver dollars and 1/10 oz US gold coins.
Good points. Foreign currency may or may not hold its’ value a little longer, depending on the traits of the government.
What if they are all sufficiently interlocked (due to Globalist interventions) that they all go down at once? Are you sufficiently nimble to trade CAD [depreciating at say, -5% / day) for Swiss francs (depreciating at say, -3.5% / day)? Would it be worth the effort?
I have holding overseas and in PMs as well. I basically hope the government that has jurisdiction over my holdings is honest, and doesn’t steal my cache in desperation. No way to know ahead of time either way.
I have a few domestic holdings as well; mining stocks as well as others. Who knows if the markets will stay open long enough to liquidate, and who would be in a position to buy me out if needed?
So many variables! So few answers!
Desy,
Cashless. Sweden is already there. It’s a good guess that more will follow. IMF chief Christine Lagarde is already pushing for a cashless system. She says it will happen in 20-30 years but, she is pushing for a date much sooner. The government loves the idea of being cashless for us plebs, it keeps “money” in the bank.
The US already has Capital Controls; Look at Foreign Account Tax Compliance Act (FATCA) and CRS Common Reporting Standard.
Guards, Banks, stock shares etc., generally anything that is paper based, is a promise. It is just a promise like “I’ll just put the tip in”.
There is NO intrinsic value inherent with any commodity.
A cashless system solves so many problems for the elite. It will be akin to full and complete voter fraud whch no one can unravel, let alone challenge. We win, you lose. Cashless will happen much quicker than gun control and will equate with a near takeover of power by the elite.
Anyone see the picture (forgot the site) of Christine and MBS sitting side by side in very fancy chairs, probably somewhere like Davos? Talk about the Odd Couple. But maybe not so odd after all.
Where does the Quran rank?
Having read it, I rank it with the Communist Manifesto and farcical publications like Mad Magazine.
It is rank.
I agree but I’d bet it has had as much influence as the bible. Wouldn’t you say?
shit has influence but does it rank?
Again, I agree with the sentiment regarding the Quran.
The article, the way it presented the ranking, is saying the Quran has not influenced as many people as Ayn Rand.
Seriously?
Donkey,
40% of Muslims can’t even read anything, let alone the Quran and that might be a low number. It’s the culture indoctrination, and what they have drilled into them all their lives.
In The Politically Incorrect Guide to Islam, Robert Spencer writes that not every Muslim is a terrorist. Why not? Because since the Quran is in difficult, classical Arabic, and must be read and recited during Muslim prayers in that language only, a surprisingly large number of those who identify themselves as Muslims have scant acquaintance with what it actually says. (p. 43)
According to Spencer, for Muslims this applies not only to the classical Arabic of the Quran, but to modern Arabic as well–and the Quran is often memorized by rote without having any clear idea of what it actually says.
http://www.iinanews.com/page/public/report.aspx?id=10377
This is interesting from 2014, and the number has increased over the years:
RISING NUMBER OF MUSLIMS REPORTING DREAMS ABOUT JESUS
I don’t understand what everyone’s got their panties in a knot about. I and about everybody I know has had liquidity problem for the past ten years
Prepare for another step down the liquidity ladder….
I am shocked SHOCKED by the amount of people who ostensibly live high on the hog but really have neither a pot to piss in nor a corner to go scratch their asses. Liquidity crisis indeed.
I was hoping the author would be writing about the very recent spike in Fed engineered support of the Repurchase Agreement market. IMHO that action amounts to a potential Lehman Brothers situation whereby big banks have let their dirty laundry pile up again and seek to borrow more than ever to try and shore up things-too big to fail notwithstanding. The real litmus test will be if the Commercial Paper market starts getting cracks in it-if that happens then it is time to run for the exits. (Note: typically banks are the collateralized borrowers in RA whereas non-bank outfits with excellent credit ratings are the non-collateralized borrowers in CP).
Either the big banks are getting sloppy again with their balance sheets and/or the banking regulators are asleep at the wheel once more. Look for it to happen fast and wonder how many new tricks our masters have in their bag of tricks. Anyone heard from Alan Greenspan lately?
I don’t keep much “money” in the bank. I consider all banks criminal organizations. I prefer gold, silver, and cryptos.
Of course, lead is a separate issue.
May I ask, when you go to the grocery store, do you pay your bill by debit card? Do you buy, say a bicycle, do you buy used via Craig’s offering silver or gold to the seller? Tks
https://www.breitbart.com/politics/2019/09/25/silicon-valley-billionaires-bankroll-mike-lee-and-his-green-card-giveaway/
I fear what comes after Trump…..well said. Seems money will be worthless and gold illegal. So it seems force is the new currency. That is why they need to ban weapons of all kinds.