Economic Collapse

As expected the Euro is breaking up. This is the first sign and the beginning of the end of the Euro as France and Germany discuss breaking away from the PIIGS:
http://www.telegraph.co.uk/news/worldnews/europe/7837874/Germany-and-France-examine-two-tier-euro.html

Just came back from the pre-premiere of a Swedish-made movie called “Overdose - The Next Financial Crisis“. It’s narrated by Cato Institute affiliate and free-lance writer Johan Norberg and the movie is also based on one of his books. I must say the movie portrays the dire mess we are in, in a manner that’s very easily grasped. This makes it a very good movie to share with your friends if you find it difficult to get people close to you to listen to boring financial lingo. Highly recommended! The film features trend forecaster Gerald Celente, investor Peter Schiff and many others.

For everyone in Washington D.C., the Cato Institute is screening the film on the 17:th of May 2010.
Facebook group is also available.

Unemployment in the USA has reached at least 20% according to a recent Gallup poll. Shadow Government Statistics puts the number at about 22%. The fact is that the official reported unemployment level of 10% i far from the real truth. The US is cooking its books as Greece did to enter the Euro-zone. They got caught. The market now values the risk of borrowing money to Obama higher than to Warren Buffet. There will be no jobless recovery. This is not the beginning of the end of the recession, it is the start of an epic depression. What should you do to protect your savings? Buy gold and silver and keep it in your own possession. The only risk you take by doing that is being robbed by desperate unemployed criminals.

This is a great article by Alar Tamming, Tavex, Estonia and Dr. Krassimir Petrov, Ahlia University, Bahrain on the situation we are in right now minus all the mass-media propaganda. Their cannot be a “jobless recovery”, you can’t print your way out of this mess. Keynesianism is wrong at the core, no matter what bureaucrats, politicians, journalist or bankers tell you. The printing of money of Central Banks around the world has gone parabolical and the paper will return to its intrinsic value of zero. Read the rest of this entry »

This is actually exactly how money works on Wall Street these days. I’m not kidding, but Jon Stewart sure is:
The Daily Show With Jon Stewart: In Dodd We Trust

However controversial this might sound to you dear reader, this article sums up the handwriting on the wall - no sugar coating. Follow Bob Chapmans references down the rabbit hole at your own risk. I don’t really care for the conspiracy stuff anymore even though I have my fair share of insights. This blog is about how to prepare yourself in times of change as well as explaining the lies of financial media in simpler terms - not so much about the conspiracy you inevitably find doing research. Thing are happening, knowing about why is secondary. Knowing how to act to protect you purchasing power is primary.

Here’s a quotes from Bob Chapmans article:

Most observers discuss Europe’s problems and the plight of the euro, pound, and the Danish and Swedish koronas. They believe these European currencies will plunge lower versus the dollar and that the dollar will maintain, even after a dollar rally from 74 to 81 on the USDX. As we have said before the euro was unnatural creation born of a desire to usher in a world currency. As we shall see in the future the euro will fail. In spite of that the dollar is certainly no bargain, because next year America will be totally bankrupt. As a result of the terrible conditions among currencies, gold makes great gains. Last year and so far this year gold is up 10% to 24% against many major currencies. This kind of action of course proves again that gold is the world’s strongest currency. We might add here that we believe that it is only a matter of time before the LBMA, or Comex, or the ETFs, GLDs and SLVs are enveloped in scandal. As so often has happened in history fiat currencies have collapsed. Thus, it will happen again. Those of you not in gold and silver related assets will lose most of what you have worked for your entire lives.

Like I said, no sugar coating, from Bob Chapman of The International Forecaster.

- Jim Sinclair, March 7th 2010:

What is the difference between the State of California and the State of Greece? The State of California is a bigger bankruptcy… The financial industry is at war with Greece. The CDS-attack (Credit Default Swaps, an off-the-counter derivative) is a nuclear financial attack on Greece.

Very interesting two-part interview with the legendary Jim Sinclair of JSMineSet.com by King World News. Listen to this amazing interview: part 1 and part 2.

In part 2, Jim Sinclair talks about Quantitative Easing, hyperinflation and the coming One World Currency of the IMF and a de facto financial One World Government.

The interview ends with Jim Sinclair concluding:

“Be prepared! This is a great civilization change. The most positive thing you can do is to recognize what is out there. The greatest contribution you can make to your family is to be prepared. So when all of this happens, you already have things in place: plans as of what you can do.
…We are not trying to scare anybody or trying to sell anything. We are simply saying, this is the hand writing on the wall. This is what’s most likely going to happen. In order to prepare you have to look at your financial and physical situation. You have to se weather or not this is a really great and significant shift in world history.
…The entire purpose of all this is preparation, because the truth will set us free.”

That last statement is at the core of why I have this blog. The world is changing. If you want to protect the purchasing power of your savings from the devaluation of the printing press - buy gold. If you want to stimulate your mind and stay a head of the game, keep reading, listening and watching. Stay tuned…

Today Bloomberg quoted Romano Prodi, the former European Commission President and the former Italian prime minister:

“For Greece, the problem is completely over.”
“I don’t see any other case now in Europe. I don’t think there is any reason to think the euro system will collapse or will suffer greatly because of Greece.”

So yesterday everyone was concerned about the huge soverign debt of Greece, Portugal, Spain, Italy etc, and today the problem is gone? I advise you, dear reader, to read between the line and consider this as Orwellian doublespeak. This is what Jim Sinclair calls MOPE, Management of Perception Economics. This statement is to me the best evidence to date of the seriousness of the Greek cricis.

Another great interview by King World News with Harry M. Markopolos on the corruption of Madoff and the SEC. Great insights into the inner workings of the financial reality of today and the collapse and economic and political revolution yet to come.

The Chinese continue to move out of the US fiat paper currency and into real money, gold. India purchased 200 tones last year. As the saying goes “he who owns the gold makes the rules” this furthers the process already in the making for decades - the financial center of the world will move from the US to China and Asia.
http://english.pravda.ru/business/finance/25-02-2010/112369-china_gold-0