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?
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.