Take immediate steps to protect your wealth . . . NOW!
That’s exactly what many well-respected economists, billionaires, and noted authors are telling you to do — experts such as Marc Faber, Peter Schiff, Donald Trump, and Robert Wiedemer. According to them, we are on the verge of another recession, and this one will be far worse than what we experienced during the last financial crisis.
Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”
When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered . . . “100 percent.”
Faber points out that this bleak outlook stems directly from Federal Reserve Chairman Ben Bernanke’s policy decisions, and the continuous printing of new money, referred to as “quantitative easing” in the media.
The next “collapse will come on Bernanke’s watch.” Warning to investors: Bernanke’s second four-year term as chairman of the Fed ends Jan. 31, 2014. (He will remain a board member until 2020.)
Get it? There will be another crash. The crash will ignite before 2014 when Bernanke’s term ends. The crash will be worse than 2008. Bernanke will be the cause. He will be clueless about the unintended consequences of his policies (like his predecessor Alan Greenspan, who ultimately had to admit to Congress “I really didn’t get it until very late.”)
Bernanke’s no different. When reappointed in 2010, “Black Swan” author Nicholas Taleb said Bernanke “doesn’t even know that he doesn’t understand how things work.”
The Dollar Index fell by the most since the first quarter of 2011 after the European Central Bank pledged to protect the euro from unraveling and the Federal Reservecommitted to reduce unemployment via open-ended debt buying, which may debase the U.S. currency.
Since July 26, when ECB President Mario Draghi said he would do “whatever it takes” to save the euro, the 17-nation currency rose versus 15 of its 16 most-traded counterparts tracked by Bloomberg. Amid the Fed’s expansion of monetary stimulus, the Dollar Index lost 2.1 percent in the third quarter. The Bank of Japan, which followed the Fed and the ECB in expanding its balance sheet by 10 trillion yen ($130 billion), is scheduled to announce its next policy decision on Oct. 5.
Quantitative easing is really another word for currency wars. A weak U.S. currency puts continued pressure on the Japanese Yen, the Chinese Yuan, the South Korean Won, the Australian dollar and other currencies.
Cheap money also fuels speculation and this money quickly drifts into commodity markets and the ETFs that help propel commodity market speculation. This is inflationary for food prices.
The lower the U.S. dollar the greater the intensity of currency wars.The break below the key uptrend line on the Dollar Index chart was an early warning of the third round of quantitative easing (QE3).
The most important question now is to use the chart to examine the potential downside limits of a QE3 weakened U.S. dollar.
The weekly close below this uptrend line was the first signal of a major change in the trend direction. It came before the announcement of QE3, last week.
The third significant feature is historical support near 74.5. This is the upper edge of a consolidation band between 73.5 and 74.5. This is the downside target for the Dollar Index following a fall below 79.
This target can be reached very rapidly over three to four weeks. A rapid collapse of the U.S. dollar puts immediate pressure on other dollar-linked currencies.
There is a very low probability the U.S. dollar will resume its uptrend. The move below the value of the uptrend line and a fall below 79 confirm thata new downtrend has developed.
The weakness in the U.S. Dollar will hurt export dependent economies and companies.
Somehow we missed this over the summer.
In an excellent economic lecture series presented by the BBC, economic historian (& author of the recent Newsweek piece Hit the Road Barack) Niall Ferguson states that the total US unfunded liabilities is a mind-blowing $238 TRILLION– over 16 times the total US debt claimed by the Treasury Department of $16 trillion!!
Can you say QE to INFINITY….AND BEYOND!!! ? There is simply no other viable solution.Ferguson’s full lectures can be downloaded here:
The rapidly rising quantity of these bonds certainly implies a growing charge on those in employment, now and in the future, since – even if the current low rates of interest enjoyed by the biggest sovereign borrowers persist – the amount of money needed to service the debt must inexorably rise.
But the official debts in the form of bonds do not include the often far larger unfunded liabilities of welfare schemes like – to give the biggest American schemes – Medicare, Medicaid and Social Security.
The most recent estimate for the difference between the net present value of federal government liabilities and the net present value of future federal revenues is $200 trillion, nearly thirteen times the debt as stated by the U.S. Treasury.
Notice that these figures, too, are incomplete, since they omit the unfunded liabilities of state and local governments, which are estimated to be around $38 trillion.
This VIDEO explains WHY. Every person in AMERICA should watch this video! Over 3.1 million VIEWS!
Economist John Williams of Shadowstats discusses the coming collapse of the U.S. dollar and 5 Trillion yearly deficit
Most Americans have no idea what a tremendous advantage the United States possesses by having the primary reserve currency of the world, and most Americans also have no idea how close the U.S. dollar is to losing that status. For the past 40 years, the vast majority of all global trade (including the buying and selling of oil) has been done in U.S. dollars. That is still the case today, but things are starting to shift. All over the globe international agreements are being made to move away from the U.S. dollar and to use other currencies in global trade. The second largest economy in the world, China, has been particularly aggressive in seeking to change the existing financial order. As you will see below, China has been running all over the planet making agreements with other nations to start conducting an increasing amount of trade in currencies other than the U.S. dollar. And of course the Chinese are heavily promoting their own currency – the renminbi. So why is this happening? Well, for one thing, the truth is that the United States is not the only superpower in the world anymore. The Chinese economy is actually projected to become larger than the U.S. economy by 2016, and by some measurements the Chinese economy is already larger. So Chinese leaders have been very open about the fact that they believe that it just doesn’t make sense that the vast majority of all global trade should continue to be conducted in U.S. dollars, especially considering the reckless money printing that the Federal Reserve has been doing. At a time when the status of the U.S. dollar is already slipping, QE3 is deeply undermining confidence in U.S. currency. And when the U.S. dollar does lose reserve currency status, the consequences for the United States are going to be absolutely catastrophic.
The mainstream media in the United States is almost entirely ignoring these developments, but the truth is that all of this is a very, very big deal.
The following are just some of the international currency agreements that China has made in the last couple of years….
-China and Germany (See Here)
-China and Russia (See Here)
-China and Brazil (See Here)
-China and Australia (See Here)
-China and Japan (See Here)
-China and Chile (See Here)
-China and the United Arab Emirates (See Here)
-China, Brazil, Russia, India and South Africa (See Here)
Most U.S. economists dismiss this threat by pointing out that China has stockpiled so many U.S. dollars and so much U.S. debt that if anything happens to the U.S. financial system China would be significantly damaged as well.
Runaway spending will soon produce hyperinflation. This will drive prices sky high. Money will lose most of its value. Buy things you can use before you find that your money will buy very litte.