Past the Point of No Return.

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Rubicon--PastThePointThis is a tough topic, because people either don’t want to believe it or are not capable of, because they lack the knowledge to comprehend what is being said. If you have read quite a few of my former posts, you will have a better understanding than most. If you have not, you will do what millions of jews did in 1936 in Austria, Poland and Germany as the Nazis began their pogrom. Nothing.

When you understand that the U.S. can only operate based on debt/credit, not physical dollars, you finally see that the USA is a huge Ponzi scheme built on nothing more that their ability to borrow money. Their status as the world reserve currency has allowed them to borrow money that they do not have.  Japan, Russia and China have extended and pretended, and now the credit card is maxed out.

The government says that there are 10 trillion dollars sitting in the US Banking system that they can go to and easily withdraw. How can that be true when there only exists 1.4 trillion of real money in circulation (dollars and coins) and more than one half of that is outside the US. This does not include the trillions more that they owe other countries – Japan – $1.4 trillion, China – $1.1 trillion – and goodness knows how much in the Middle-east for the oil money that has been re-circulated into Treasury’s. If the US’ creditors were to all come at once, and ask for their money there would be less than $1 dollar for every $1000 dollars owed.

The world economy will collapse, and that is the way that all great empires based on fiat currencies end. People I talk to like my wife and friends have really no clue what is coming. When I try to talk to them, they just say well we can’t do anything, to stop it, and shut me up.

The  video below, is long and it was cut to half of its original length, but it is the single most logical and credible documentary I have ever watched on the future of the US economy, and where the U.S. goes, so goes the world. It makes me furious that the Federal Reserve and the Treasury, decided to bailout the corrupt bankers instead of the citizens.

Instead of bailing out the banks, the Fed could have paid the debt off for every consumer in the country and freed up trillions of dollars for them. Instead they padded the pockets of the banking elite. I wanted to “Try” in a legal sense, someone for dereliction of duty, and Treason. Now, they are setting things up to try one last historic cash grab. Negative Interest rates, Digital only money, or stealing the pensions over certain sums are all possibilities, as well as cut-backs in state and local government support.

The bailouts, drove the stock market to all time highs so that those behind the scenes, can make a killing, by shorting the hell out of it. But they have to have someone to sell to… those on the outside – and guess who THEY are?

I think Donald Trump will not be allowed to take office. If elected (if the election is not stolen) he may be assassinated first. I am over 60 years old and a former Lecturer In Business and Information Technology. I have run several small businesses over the last 30+ years, and I have watched hundreds of hours of video on the economy and financial systems of the world, and done more than 15 years research into past financial failures going as far back as the Roman Empire.

Dr. Paul Craig Roberts is one of the people I have followed, along with Dr Ron Paul, Bill Bonner, Addison Wiggin, Rick Rule, Jim Rickards, Byron King, and many others in this sphere. Theodore (Ted) Butler, of Butler Research who raised the subject of price manipulation in the precious metals markets with Andrew Maguire, the whistle-blower who raised it with the SEC, about the book I produced “The Coming Battle” on the formation of the Federal Reserve, Economics and Finance – had this to say, he said, “It’s an impressive work”.

People do not want to acknowledge that the fall of fiat currencies is nothing new. The phrase “it’s not worth a Continental.” is a hangover from the days when the Southern Confederacy, produced its own currency during the Civil War, which literally became worthless, and the US has made it this far ONLY because they are the reserve currency of the world.

There have been 440 economies based on fiat currencies in modern history… They have all come to the same demise, FAILURE. In fact, the IMF has already discussed with the five major currencies in use around the world to create a new world currency as early as this autumn – the “Special Drawing Right” which will also include the Yuan, and is a system of creating a currency out of the currency basket of the six biggest currencies – The Pound, Yuan, Yen, Euro, U.S. Dollar and 40% Gold. This could be issued by the IMF to governments as early as 1st November.

Having an education in Business and Computer Science with 2 Post-Grad Diplomas in Business Computing and Information Technology, and I taught Quantitative Analysis, Business Law, and the Organisation in its Environment to Business and I.T. students, I do not believe that the US is exempt from the natural laws of economics.

Watch the video; it explains why people have a hard time accepting the true outcome of a situation that has played out the same way again and again throughout history. Research ‘normalcy bias’ and as I said at the beginning, don’t be like the Jews in Europe, who couldn’t believe it would come to that…

I keep hearing from Americans that the US is different. That is true. The US is much deeper in debt than any country at any time in history except post WWII. If you doubt that, watch the entire video. You cannot deny the logic!!

Watch and learn…

 

And here below, Harry Dent, talks about the future and his demographic analysis.

In the US, 75 million Americans were born from 1947, to 1962, and 8 million other people joined them from overseas. Those 83 million began retiring at age 65 in 2012, though many who were retiring early, sold their stocks, and other investments, as early as 2005.  Back in 1974 they were aware of the number of baby-boomers coming through, and brought in the Employee Retirement Income Security Act of 1974 (“ERISA”)., which allowed people to defer their pension entitlements until 70.5 years of age. Since 1947, that means, that next year 2017, all those pension companies, who have not taken their client’s pensions – yet – will be forced to sell their stocks, and buy government securities – annuities – and receive a lump sum, which may be used to perhaps buy assets such as property – but they may also buy Gold and/or Silver.

The stock market, already under duress as those between 65 and 70.5 who are already retiring are selling, and this added number will undoubtedly lead to a sell off in markets if they have not already fallen.

Negative Interest Rates, if they arrive soon, will mean many will opt to buy Gold, Silver and any other asset that is likely to appreciate or provide a yield. Property, normally a high yielding asset has already been bid up to asphyxiating levels, and as Mike Maloney of GoldSilver.com recently commented, that the top of the market – properties over $10m, are already sitting unsold on the markets. Those with the most are usually first to exit the burning theatre… the rest will head for the exits in a great rush – too late, and trample each other in the panic.

Property will probably fall 40-60% in the worst areas, stock-markets will be off 60%+ and the DOW and Gold will probably be a 1:1 relationship, or worse a 1:2… (Dow 5,000? Gold $10,000?)

Jim Rickards thinks Gold could go higher – to $14,000, and historically the Gold:Silver ratio was 15-16:1 for many decades, it rose to 83:1 in recent years as the 5 billion ounces taken out of circulation when silver was demonetised, that has been sitting in bullion warehouses since 1964, was sold off at the rate of circa 100-200 million ounces a year since, driving down the price for 50 years. But now, all that has gone and that deficit will need to be provided by miners, meaning the price will need to go much higher to encourage large investments..

Silver is up 50% from $13.60/oz in November to over $20.41 as I write, but both Gold and Silver may have one last biggish pull-back, I suspect before the Autumn buying season, then we may see another big move higher, or even a short-covering spike, as the commercials, who have been shorting the paper markets the most, have to buy back their paper and take a loss.

Harry Dent believes Gold may visit the $700/oz range, but I will be scooping it up if it does, and I feel the Chinese, Indians, and others in the far-east all 2.9 billion of them, will be joining me.

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