we are officially at QE-infinity with the fed printing $85b per month until they see an improvement in the economy.
Here are some facts
• This reckless printing is devaluing the dollar but why have we seen a collapse in confidence? This is due to the fact that we are all bound to the $ as all Commodities are priced in $us. Simply, we have no other choice boy to use the dollar.
• Why have we not Seen hyperinflation? This is because the majority of the bailout mOney and the $85b per month goes into the shadow banking Industry which are then used to purchase bonds.Very little of it goes into the market-however, this is causing the largest bond bubble we have ever seen.
• why haven't commodities like gold and silver Skyrocketed due to the printing? As stated earlier, most of the printed mOney doesn't enter the Market but to avoid skyrocketing prices the big banks have a collective short selling program which losses are covered by the Fed. JPMorgan own's 35% of the global silver Short contractS, all the majors together, own 70% of the silver short contracts.
Why have I backed silver?
• Countries have already started moving away for the $us. China and Japan as of 2013 will exclusively trade in their own Currencies. China and Russia have stated trading oil and gas in Roubles And Yuan. BRICS have agreed to move away entirely from the $4 within the next 5 years. As Soon as countries start to sell commodities In Currencies other than the $uS then this will begin the collapse of the $'
• the US gov does not seem to be slowing down their spending, therefore, more debt and printing will be needed to fund daylo day operations and fufll their obligations.
this will cause the bond bubble to get bigger to the point that institutiOns realise their worthless and it will pop causing a collapse of the dollar.
• lastly, Mind you though there are manyother reasons but these are some that I find µ be hard to argue with, JPMorgan has a $150 b derivative loss that will sink them. If they collapse, then silver will explode due to JPMorgan unable fulfill their shorts.
There is a way to avoid a calamitous event such as the collapse of the$ but Keynesian economists will encourage to keep doing what has not worked for the past S years and that is printing, printing and more printing.
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