What a complex, confusing and treacherous month, writes Willie. The financial system is breaking down quickly; the most significant factors are the Iran sanctions and their backlash, and Europe’s futile efforts to
stem the banking collapse. Meanwhile, anti-dollar sentiment across the globe is gathering momentum. Greece is no longer making headlines; it has been replaced by Spain, with Italy hard on her heels. In the US, there are arguments over whether there will be another round of QE, when it has never actually stopped.
Although the financial sphere seems calm at the moment, risk levels are rising. As the US political race takes centre stage and the stakes increase, the level of risk increases. Events are coming together quickly and in a way that is difficult to perceive, except for the quicksand in Spain.
Willie covers: The subprime cancer; anti-US dollar forces gathering strength; prepare for a cardiac arrest event with respect to the petro-dollar; China prepares to wrest control of the US dollar; Germany has made preparations to leave the euro currency union; Spain is on the verge of rejecting austerity measures and maybe the euro currency; the Fed and the ECB are guilty of $5 trillion in paper binges; the US financial markets are an abandoned playground; the US housing market is permanently destroyed; and the hidden factor in the systemic ruin was the China card of the last decade.
US and European bankers have been under intense pressure to continue money printing in order to prevent an outright collapse. At the same time, they have had to manage the gold market so it would not reflect the true extent of currency debasement. In fact, the global monetary system is being ruined. Confidence in bonds is at rock bottom. The biggest buyer of US Treasury bonds is the Fed, thanks to its printing press. Distrust of the monetary system will necessitate a new system, backed by gold. “However, the old system cannot be permitted to fall unless and until the new system is ready, in place, and fully wired. That day is coming soon. The signposts are in place, the painted messages legible.”
To read Jim Willie: Golden Eye of Hurricane
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BullionBuzz is a weekly eNewsletter that offers investors a quick snapshot of must-read news pertaining to the markets and precious metals. Continue reading
BullionBuzz is a weekly eNewsletter that offers investors a quick snapshot of must-read news pertaining to the markets and precious metals. This week: Euro: Current Course Is Leading to Disaster Continue reading