Whistling Past The Graveyard

As the world draws closer to a Currency War and The End of The Great Keynesian Experiment, the depth and breadth of "Western" arrogant stupidity is astonishing.

How long have we been talking about this now? At least since early February. The Western "leaders" like Woody and Cameron foolishly think that they hold all the cards. They are either unable or unwilling to understand and accept the FACT that dollar hegemony is a temporary (and fading) condition. Instead, they flaunt, preen and posture as if they are in charge. What fools!

Yesterday, we got word that Woody has new sanctions "teed up". (And this passes for diplomatic speech in the 21st century?) Then today, the lapdog US ratings agency Standard & Poors, decided to downgrade Russian debt to BBB-, just one single notch above junk status. (And, yes "lapdog" is the correct term. They tried to be independent by downgrading the US in 2011 and they're punishment was swift: http://www.businessweek.com/articles/2014-01-16/5-billion-u-dot-s-dot-fraud-case-against-standard-and-poors-enters-critical-phase)

These Western fools are truly whistling past the graveyard. There are those who think that it's impossible for Woody and Dave to be this clueless and it's believed by some that they are doing all of this on purpose. Maybe. History is replete with false flags and baited attacks. In this instance, though, I really think that they are this clueless. What in Woody's educational and professional background would lead you to think that he understands the perilous state of the Keynesian Experiment. He's an academic and a lawyer. He's not trained in macro-economics and I don't think he's much of a student of history, either. Therefore, he very likely believes that each new tomorrow will always be just like yesterday. America is the dominant superpower with the world's reserve currency. How could that ever change?

Well it's going to change eventually...and...on this current course, it may change pretty quick. In response to these latest threats and downgrades, we heard again today from Putin adviser Sergei Glazyev. You remember him, don't you? Back in March, Mr. Glazyev publicly mentioned the "unthinkable"...that Russia should dump its $200B in treasuries should economic sanctions be applied: http://www.zerohedge.com/news/2014-03-04/putin-advisor-threatens-dumping-us-treasurys-abandoning-dollar-if-us-proceeds-sancti

Today, Mr. Glazyev took it a few steps further, proposing a plan of 15 measures "to protect the Russian economy" in the case of US sanctions. Among them:

  • Russia should withdraw all assets, accounts in dollars, euros from NATO countries to neutral ones
  • Russia should start selling NATO member sovereign bonds before Russia’s foreign-currency accounts are frozen
  • The Russian central bank should reduce dollar assets, sell sovereign bonds of countries that support sanctions
  • Russia should limit commercial banks’ FX assets to prevent speculation on ruble, capital outflows
  • The central bank should increase money supply so that state companies and banks may refinance foreign loans
  • Russia should use national currencies in trade with customs Union members, other non-dollar, non-euro partners

Now, this is just a "proposed plan" and "a Russian doesn't take a dump, son, without a plan". Regardless, you can clearly see where this is all headed. Maybe not by later today but perhaps as soon as next week, should hostilities in East Ukraine boil over into all-out war and invasion. And do you seriously not think that an invasion is likely at this point?

And don't forget this very important piece of the puzzle. Putin is going to China next month to ink the "holy grail" of energy partnerships. He's also working on a deal with India. Hmmmm...let's think about this....Russia, India, China...that's the "RIC" of the term "BRIC". And what do we know about the BRIC nations, their relationship with the G-whatever and the BRIC Development Bank?

http://www.zerohedge.com/news/2014-03-21/petrodollar-alert-isolated-west-putin-prepares-announce-holy-grail-gas-deal-china

http://www.zerohedge.com/news/2014-04-09/russia-and-china-about-sign-holy-grail-gas-deal

http://www.zerohedge.com/news/2014-03-25/first-russia-locks-china-holy-grail-gas-deal-now-rosneft-prepares-mega-deal-india

Look, seriously, if you can't see this coming, then you might be beyond my help. There is NO DOUBT and I am 100% CONVINCED that the world is heading in this direction. Whether or not the Ukraine Crisis and Woody's sanctions speed up the process, it's still happening. It's only a matter of WHEN.

Again, WHEN this happens, the trillions of dollars that have been printed and shipped overseas will be returning to America's shores. The dollar will sharply decline, maybe even collapse, in the process dragging down every other Western fiat currency. It's going to be ugly and disorderly and the likelihood of civil unrest, war and insurrection is high. You can prepare for these events by taking a number of actions today. This site is full of helpful individuals who can give you advice on everything from food storage to ammunition. Ask questions and you will receive answers.

As this applies to your personal finances, this is why we stack. In their desperation to maintain the status quo, the central and bullion bankers have driven the price of gold to just $1300/ounce by using a seemingly endless supply of paper metal, backed only with leased and rehypothecated (borrowed) gold. This system, which has held for over 30 years, is now crumbling before your eyes. Therefore, it is time once again to do an inventory check. Do you have enough physical gold? Calculate the amount of "paper wealth" you have, make your best estimate of what you think the true dollar-conversion value of gold should/will be, then determine how much you should have. For example:

  • If you have $200,000 in "net worth" and you think that the ultimate value of gold is $10,000, then you need at least 20 ounces of physical gold in your possession, be it in your safe or in a vault.
  • If you have $500,000 in "net worth" and you think that $5,000 is the ultimate value of gold, then you need at least 100 ounces of physical gold in your possession, be it in your safe or in a vault.

Now is not the time for weak-kneed fear and indecision. The End of The Great Keynesian Experiment is, most certainly, upon us. The only question is the amount of time remaining. It could be one week. It could be five years. Regardless, prepare accordingly.

TF

103 Comments

Turd Ferguson's picture

And you simply MUST WATCH this

MODERATOR

Skip to the 12:00 mark and listen to Max interview Jan Skoyles.

 

Bluebellkid's picture

First

First

tyberious's picture

2nd

Again!

Turd Ferguson's picture

And this is excellent

MODERATOR
CPE's picture

Bronze

Is there anything precious about bronze?  lol

metalsbyamile's picture

4th

excluding Turd. Timely post Craig.

The $USD is looking weak today. I'm out of the US Dollar except for minor expenses that must be paid in it,but my currency diversification has not done so well.

For instance, I bought the Canadian Dollar and did well for a time, yet now it seems to be lack luster.

There are a few others which i will keep to myself but it seems they too are dropping against the usd?

No where to hide in fiat? I'd like to see the usd drop to .70 but then again, what will everything else do.

tyberious's picture

US is $70 trillion in

US is $70 trillion in debt
Italy is double GDP in debt
Spain is double GDP in debt
Portugal is 100% GDP in debt
UK is 1000% GDP in debt

Russia owes $100 billion
Russia has $600 billion in reserves - probably more.
Russia could pay it's debt TODAY.

bert3798's picture

cinco

cinco

AGAU's picture

It will be critical for

It will be critical for Russia to have chinese and Bric support wonder how resolute they are????

Turd Ferguson's picture

By the way

MODERATOR

Palladium just broke $810 and then pulled back a little. $809 last.

Strongsidejedi's picture

no medal

Just metal, no medal... spent time watching Max Keiser's interview instead of playing the medal game.

Ukraine war is happening.

There is no coverage in the US of the war.

CNN talking about the missing plane and sunken ship.

CNNi talking about Manchester United this morning and now giving the weather in Afghanistan (rain).

Bloomberg talking about Automating Web Video Production while the ticker shows a story about California restaurants asking customers to bring their own citrus fruits (must not be eating out much or the Bloomberg people must be in the Bay Area and I'm not).

MSNBC talking about democrats in DC.

Fox News talking about Obama Presidential Library and showing clip of Rahm Emanuel.

I really need to ditch cable TV.  What a joke.

Turd Ferguson's picture

upclose chart

MODERATOR

Watch this line very closely today and Monday:

ArtL's picture

top 10!

sure is an early post from Turd today.

after reading your post, I am convinced you are convinced of the end of the US dollar.

I think the dollar will be devalued, and the system will continue, just as it is continuing in Argentina and Venezuela. This does involve some civil unrest, as the system wobbles along with a devalued dollar.  If we think that gold will be $5,000 or $10,000 then we think there will be some residual value to the dollar, maybe 0.1 or 0.3 of its current value..

CPE's picture

Forgot to mention

My wife likes watching "Parks and Recreation", and as I endured the sitcom I saw Marie Antoinette (Michelle Obumbler) do a cameo.

WTF is the 1st "lady" doing on a sitcom?

Turd Ferguson's picture

More palladium

MODERATOR

High today of $810.80. Last is $808.10

Levon's picture

Jan Skoyles

Anyone else think shes hot? That whole British thing and the fact shes a gold bug.... man!

I have to add to my list now:

girls that golf

girls that mountain bike

girls that are goldbugs

All the above turns an otherwise 6 into an 8.

metalsbyamile's picture

Speaking of Graveyards

The Nasdog is getting a well deserved beating today. The Dow is following suit.

CPE's picture

Japanese Savers

The Japanese are savers, but they've saved in paper.  They are still a very wealthy population even though they have the most bankrupt government in the world (truly an achievement).  What happens when they start saving in gold instead of Yen or foreign paper?  Could be HUGE!

http://www.zerohedge.com/news/2014-04-24/tokyo-cpi-spikes-highest-1992-well-above-abes-2-target

Tokyo CPI Spikes To Highest Since 1992 (Well Above Abe's 2% Target)

If this evening's data from Tokyo on April's Consumer Price Inflation is any guage on the national inflation picture, those hoping for moar stimulus had better start praying for war. Thanks to favorable comps and the April 1st tax rise, Tokyo CPI jumped to 2.9% YoY - its highest since 1992 - and well above the BoJ's 2% inflation goal. Mission accomplished (almost)... except that the economy just won't play ball and now stocks are fading too (along with Abe's approval ratings).

20140424_CPI_0.png

No room for moar stimulus after this...

Turd Ferguson's picture

Stocks looking pretty dicey here

MODERATOR

And if you're wondering why that matters or why you should care, I'd like to remind you of this:

Coin Explorer's picture

Dollar Dog Days

The most public sign (to me) of the world turning its back on the greenback is Ukraine. Every single time there's a safe haven run, people SELL dollars. You'd think that the euro would take a beating, being literally on the front lines of this conflict, but no. The world now sees the U.S. dollar as a risky enough asset that it is sold in times of uncertainty.

And notice what does get the safe haven play? The Swiss franc (no surprise, really), and the freaking yen. The currency of the nation whose government has made a mandate of devaluing as much as possible, as soon as possible, is seen as a safer store of purchasing power than the "world's reserve currency."

/rant over

meegoreng1's picture

SILVER POWER

Thanks for the information above. I agree that we will eventually see the end of the petro dollar scheme one day but not because ‘Woody’ or Dave who are clueless or ignorant about this.

Our leaders are just puppets to their masters. They do as they are told. Having said that, I truly believe that when the end of the Keynesian policies is upon us, it will be with the blessing of the TPTB. Understand that this ponzi scheme has been with us for hundreds of years. If you can acknowledge and accept that, then you will know that this is a long term event.

I can see this going on for many more years to come as TPTB have quite a few more agendas to execute one of which is a cashless society, esp here in the Western World.

We are in a long run buddy. Gold will not see the light of day for years to come. Gold can’t go up in price as that would wake up the sleeping sheeple around the world.

But silver is a different animal. The supply of silver is dwindling and I can see the GSR going back down below 20/1. I strongly believe that silver is the Achilles heel of the TPTB. They will not be able to continue suppressing the price of silver as long as they can with gold. I can see them bringing out the their stock of hidden gold out to continue suppressing the prices. Whereas for silver there is no strong evidence of any physical storage of it anywhere in the world.

While Gold is our insurance policy, Silver will be our only weapon/winner against the EE!

NW VIEW's picture

Craig - a simple understanding of the conflict!

This whole Russia/Ukraine/NATO/USA/BRICS outcome reminds me of the only time I received the board in the 8th grade.

I had a nice football and was out on the play field and Keith wanted me to throw him the ball.  Everything was fine in the game until Keith decided to steal the ball and run off with it.  I first negotiated but that did not work (sanctions). I tried to reason with him ( did not work).  So I decided that I would apply some pressure with my words (did not work).. Finally I grabbed Keith and threw him on the ground, put him in a head lock until he said "uncle".  THAT WORKED. 

Now as Paul Harvey says "Now the rest of the story".    We were both taken to the office and received our reward by touching our toes as the "board of education was applied".

Now you know our future!

metalsbyamile's picture

Many disagree

but my reading of the situation is we will have 3 reserve currencies competing with each other.

The Euro, Usd, the Yuan . This is what will lead us in to the abyss, the fight for survival of these 3 currencies.

So the death of the usd is not an option in my opinion- a lot lower usd is a given but that will change-one day.

Turd Ferguson's picture

When watching palladium

MODERATOR

DO NOT OVERLOOK this key factor. Hmmm, I wonder who the main US Bank short might be???

                                                                                                                                   Long                          Short

NYME PALLADIUM

U.S. Banks

 

200

0.5

9,853

24.0

40,974

NON U.S. Banks

 

1,702

4.2

5,342

13.0

 
 

16

1,902

4.6

15,195

37.1

 
Dingo's picture

All good theatre

These Cold War esque tensions don't impress me one little bit. Sure there are real tensions amongst the rank and file Russians/ Ukranians, however, the jaw boning and tit for tat stuff at the diplomatic level is puppet theatre. If the Bolshevic/USSR was controlled and financed for 70 years by Wall Street and International Bankers ( read Antony Sutton and Eustace Mullens who support this with meticulous research and evidence) staging this sort of conflict would not seem either difficult or implausible. I'm not trying to diminish the seriousness of this conflict or it's potential either. Staging major conflicts are done for many reasons - all of which rejuvenate the Banker's power and long term ambitions at the expense of common people. Gold in new monetary systems are probably going to be metamorphosed behind the scenes of this new cold ( hopefully not hot) war. I should imagine drawing in lots of new lines on maps that make the world a more unstable place will be part of the agenda as well post conflict. This is just the age old modus operandi    of these guys and it never changes because it always works. One slightly comforting thought about staged conflicts are that all out nuclear war seems unlikely - unless they've developed nukes that don't pollute too much. Any conflict could not be a threat to these guys existence.

One amusing anecdote about the former Soviet Union in WW2 ( this is only a rumour and could never be substantiated) is that Joe Stalin had a nervous breakdown in 1942 and Averell Harriman of Brown Brothers Harriman took the reigns of the USSR for the rest of WW2. I know this could never be proved, however, just try to debunk this  - it might be more difficult than you anticipate.

Turd Ferguson's picture

My freaking corn is trying

MODERATOR

My freaking corn is trying  SO HARD to break out and UP...Killing me!!!

Turd Ferguson's picture

Sylvia

MODERATOR

I don't know...just maybe there's a correlation here. <SARC, duh>

But seriously...NOT THE SAME FUNDOS, but who cares. More clear evidence that the algos and HFT control EVERYTHING.

Turd Ferguson's picture

brand new Jackass

MODERATOR

http://news.goldseek.com/GoldenJackass/1398456000.php

"The following are some likely actual change agent factors, agents, and events, which could happen before year 2014 ends. The Jackass has stated that 2014 will not end as it began, as huge changes and disruptions come. Also, my perspective on the rapidly reducing time between events is very evident, indicating a Great Quickening much like an earthquake building from minor tremors. If a few of the following probable events occur, the entire financial system will be altered. Momentum will gather during the movement of time. The system is not static, but rather dynamic, and in fast decay. The internal rot is profound. The public will come to learn and be convinced the system is broken. The faith in money will quickly vanish. Consider the following potential change agents:

1) Russian primitive payment system arrives, with an asset backed Ruble currency

2) Saudis accept non-USD for oil payments, actually any major currency

3) Yuan full convertibility hits the scene, to occur in Shanghai Free Trade Zone

4) Indications of a new Dollar in the United States, with fraudulent backing

5) Significant shutdown of global mining industry, from lack of profitability

6) One major giant Western bank goes into failure, with three prime candidates

7) Major US retail (product, food) chains show empty shelves from interruptions

8) USFed revealed to huge QE volume through proxies, the hidden side revealed

9) COMEX & LBMA show no gold price, from lack of inventory

10) High ranking US or London banker is murdered, with no possible cover-up"

brokerk22's picture

@meegoreng1

That is bullshit meegoreng1 IMO.  Gold was $300 10 years ago and it $1300 today.  Gold will go up and their stranglehold will eventually fall.  The gold is never going to go anywhere bullshit is getting old.

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