Tag Archives: currency debasement

A look (not a prediction) at a series of not improbable events that could develop [and which] would change our economic world overnight.

It is critical to heed the strong warning signs of deep trouble coming in Europe, Japan and the USA. A 75-79% fall in the currencies of these countries is telling us that they will all go to their intrinsic value of ZERO in the next few years. This will lead eventually to the same hyperinflation as in Argentina and Venezuela...

The Bank of Canada has cut its overnight rate for the second time in the last six months - to 0.5% - and the Canadian dollar has reacted as expected, [indeed, as intended,] putting the Canadian dollar at a six-year low in terms of dollars (-10.2%) and pound sterling (-10.4%). So why the rate cuts and competitive devaluation?

Is it time to throw in the towel? Is the bull market in precious metals really over? I don't think so because my analyses suggest that nearly all of the fundamental factors that have been driving the gold price higher in the past decade have only strengthened in the past two years. Now that the correction has most likely run its course, I expect gold to bounce sharply higher. Here are 10 reasons why.

I wrote several years ago that Japan is a bug in search of a windshield and in January I wrote that 2013 is the Year of the Windshield. Japan is a country that is on the brink of fiscal and economic disaster

The euphoria, New Year’s Eve at the Big Casino, continues but the price will be high when it all ends and it will end because it is not this or that asset class that is in a bubble but the entire world that is a giant soap bubble that will float until the heat of the sun pops the thing in one ugly mess. I fear that subprime loans, dot.com fantasies, and the S&L crisis will pale when we are done with this party because, my friends, the bill for the festivities must get paid.

I read many hundreds of articles every week looking for writers who have an in-depth understanding of our economy and who are not reticent to tell it like it is. Monty Pelerin (a pseudonym) does just that week after week, year after year. This post includes introductory paragraphs and links to 25 of his most enlightening and current articles. Take a look. There are bound to be several that will grab your interest.

People who are saying there is no reason to buy gold now, never understood the reason people were buying it in the first place. People weren’t buying gold because they were worried about a crisis in the Eurozone or weak US stocks. People were buying gold because central banks were printing too much money. It’s inflation that drives the gold train, not political uncertainty.

The U.S. Dollar is being very aggressively devalued in a parabolic...[manner] as we enter the final stage in the paper currency cycle. The government needs Gold to go vastly higher so the budget can be balanced after all of the paper promise debts are added to the balance sheet. Interestingly, Michael Belkin, arguably one of the best analysts in the world, expects earnings for companies to plunge this year causing the DJIA to crater about 30%. This fits with the kind of correction in the now high flying DJIA that we have discussed per the late 70’s charts where Gold and the Dow would meet between 10,000 and 12.000. Words: 1022

We believe that we are in the “competitive devaluation” stage presently [see graph below] as country after country is printing money in order to lower rates and doing whatever possible to devalue their currency - to have the fastest currency in the...race to the bottom - in order to export their goods and services. [The next stage will be protectionism and tariffs. This article gives an update on the race to debase.]