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Condition Critical – Fed & ECB To Fire Up Their Presses Within Weeks
Last week Bernanke disappointed markets and many investors when he did not appear with his smoking gun to officially launch QE3 on the heels of Mario Draghi’s comments to “do anything it takes to save the euro”.
The reality here, the Fed has lost control. Slowly but surely it’s being besieged by events, and in-particular, the reality that the government’s finances are completely out of control. While it’s unbearable deficits, addiction to debt and ultra low interest rate policy gives an illusion that the US government actually is solvent. Ever increasingly, Bernanke is being forced into a corner to where he will have no way out other than firing up that printing press of his.
It is widely speculated that QE3 had been placed on the back burner. But will be brought out during the Jackson Hole Wyoming Fed Meeting. This is where the previous QE programs were announced, it’s all about timing.
Bernanke is balancing a fine line between the markets and politicians running the government. Conditions with the unemployment figures are being seen as ever increasing, action needs to be taken ASAP to help reduce the numbers of unemployed and get them back to work. Markets need assurance the system is still functioning. Expect “Operation Destroy the Currency” to begin around September.
On the other side of the pond, Mario Draghi’s commitment to save the euro would entail controlling the interest rates of all 17 member nations of the euro currency. How long can you monetize European debt? How long would the euro be subject to currency dilution? With continuous money printing going on by Draghi & friends, there would no longer be a private bond market. The ECB would be the sole purchaser of all euro debt. The end result here will be the destruction of the middle class in its entirety brought on by severe stagflation.
Between both central banks the potential to fire their smoking guns is inevitable. For the ECB an estimated 4-6 weeks will need to pass allowing enough time for the EFSF and the ESM to get everything finalized and approved. A condition required before the ECB takes action. Once these two new systems are fully functioning Draghi will make good on his promise to print away and save the euro while destroying Europe. Tick tock, tick tock, tick tock… Ironically the Fed’s trigger is just about in the same timeframe. Yeah, I think it’s a coordinated effort!
Bottom line here everyone, the simultaneous money printing to infinity by both the Fed and ECB will be the trigger for precious metals to enter their third and final stage of the precious metals bull-run. At the same time prepare for INFLATION! As the euro and dollar currencies further debase, weakening the purchasing power of these currencies will make it abundantly clear to everyone inflation is already here and on the rise. Inflation will increase dramatically without stopping until government attempts to paper over their debt cause the destruction of the currencies themselves. Save yourselves, save your assets acquire physical precious metals today. Remember “If you can’t hold it, Don’t own it”.
America’s Debt – ONE, TWO… POW!
Despite all money printing efforts by the Fed to right America’s monetary problems, America’s society remains in a swamp of indebtedness. Last year the US finally lost its pristine AAA credit rating. (Long overdue) A blow to the economy? Well maybe for a few weeks. But after that it was business as usual for America, regardless of its credit downgrade. Recently, Europe has been hit by numerous credit downgrades affecting its governments and banks.
Yes, Europe has been seeing more time in the spotlight as of late. But here is a news flash just in-time for Obama’s re-election bid. (Let’s see how his camp will react to this upcoming news) It appears the United States is being scrutinized once again by the big-three credit agencies. We should fully expect another credit rating downgrade on America’s “not so great credit anymore” soon.
With all of the interventions that Federal Reserve has taken to hold interest rates at unrealistically low percentages borrowing costs to the government are also kept artificially low. On the surface, it continues to keep the government’s deficit from becoming worse. Here is something to think about. Should just a one percent increase in borrowing cost be imposed, onto America’s current $16 trillion dollars of debt which the government is already on the hook for, the increase would drive up the national debt by an additional $160 billion. This is the currency (fiscal) cliff you here many talk about. The real fear is that we’re very close to the edge and the dollar itself will soon fall into the abyss.
Once again I recommend before America and the rest of the world fall off the cliff, that you be prepared. Educate yourselves, then Buy Physical Gold and Silver. Keep it stored outside the world’s banking systems. Gold and silver act as an insurance policy by protecting your assets from the economic ills of society. Both gold and silver have been used as money throughout history and will protect your assets and purchasing power regardless of inflation, deflation, or hyperinflation and the destruction of paper currency.
Tom Genot –
2012-08-08 00:45:01
Source: http://coinbullion.net/2012/08/condition-critical-fed-ecb-to-fire-up-their-presses-within-weeks/
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