Category: Hyperinflation
What in the world is going on?
Current events have not changed my outlook for the next four years at all. In fact, they continue to validate at least the overall premise that we are headed for extraordinary times in this nation.
Civil unrest is now taking a more partisan form. Rather than general protests over taxes, spending, lack of leadership, etc., some states have upped the ante by striking at the heart of the Democratic party – the Unions. By focusing on budget cuts that include unions (not exclusively, but simply including them in the austerity) these states have fired a shot across the bow of one of the Democratic Party’s sacred cows.
In return, Obama (he is the first person to occupy the White Hose whom I refuse to refer to “President” even out of respect for the office) has upped the ante on social conservatives by refusing to defend the Defense of Marriage Act, or DOMA. In response, Presidential candidate (he will run) Newt Gingrich is pandering to social conservatives with a veiled threat of impeachment. Gingrich: If Palin Took Obama Actions, There Would Be Calls for Impeachment.
Make no mistake. The geopolitical chaos is a breeding ground for domestic chaos, and both parties are increasing their hard line stances – defining their “lines in the sand.” As these lines become deeper and more visible, it will serve to frame the battle when it erupts. And at the current pace, erupt it will.
The police state continues to expand and is now increasingly targeting our children. See Arvada Police arrest 11 year old over inappropriate stick figures and Deputies seek protection after threatening family. Public school or home school. The police are set to intimidate families and children. They almost seem to be probing to find out just how people will fight back, assuming that people’s children are something they will fight for. What they learn will tell them a lot about how far they can expand their police state before they have to deal with real opposition. Sadly, it appears as though it will be very far down the line.
Now, enter the pro-life debate. Defunding of Planned Abortionhood should have happened eons ago. However now it is a real threat. These traditionally “compromised” areas of social conservatives are being addressed with steps that actually have teeth – baby teeth yes, teeth none-the-less. And it has the left going nuts.
Oh yes, if homosexuals, abortionists and unions are not enough of a minefield, lets talk about food. The good ole’ police state is claiming now that walnuts are drugs and need to be regulated. Big Pharma can’t have natural cures now can it.
Add to all of this the fact that inflation is raging. Calls for shortages of vegetables due to the late frost in Mexico has people expecting a doubling of prices of some foods in the next few weeks. Gas is well over $3 per gallon nation wide. Monetary policies are one thing, but when the geopolitical world gets lit on fire, there is no telling what oil can do.
My sense is that a growing number of “average” Americans are getting quite uneasy about the future. They are beginning to sense that their ‘normalcy bias’ is about to be exposed in a very powerful and unpleasant manner. The rhetoric used in nearly every political arena is growing more intense. This is exactly what was predicted just two months ago. If you haven’t done it, read the Outlook 2014 paper. It is early, however it is playing out as scripted.
View PostSound money debate
Just found this. It was put out over a month ago. There is something coming SOON that will be very exciting regarding this issue. Stay tuned!
Sound Money Debate Takes Center Stage on Capitol Hill
Panel discussion will be a good preview of the strengthening grassroots movement for sound monetary policy in 2011.
From the book ‘The Fourth Turning’
The Fourth American Revolution
Submitted by James Quinn on Thu, 20 Jan 2011
The next Fourth Turning is due to begin shortly after the new millennium, midway through the Oh-Oh decade. Around the year 2005, a sudden spark will catalyze a Crisis mood. Remnants of the old social order will disintegrate. Political and economic trust will implode. Real hardship will beset the land, with severe distress that could involve questions of class, race, nation and empire. The very survival of the nation will feel at stake. Sometime before the year 2025, America will pass through a great gate in history, commensurate with the American Revolution, Civil War, and twin emergencies of the Great Depression and World War II. - The Fourth Turning – Strauss & Howe -1997
China distancing itself from the US dollar.
This is one reason why Virginia is doing what it is.
Hu: Dollar-Based System ‘Product of the Past’
Published January 17, 2011
AP2010
Dec. 31, 2010: Chinese President Hu Jintao delivers a New Year’s address in Beijing.
BEIJING—Chinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a “product of the past” and highlighted moves to turn the yuan into a global currency.
“We both stand to gain from a sound China-U.S. relationship, and lose from confrontation,” Hu said in written answers to questions from The Wall Street Journal and the Washington Post.
Off the Grid News
I’ve discovered a new web site, run by a group of Christian men who are dedicated to keeping you up to date on what is happening around the world and in our nation. Off the Grid News gives practical advice on how to prepare for life post economic crash. Please visit them today.
I will be posting less frequently for a period as my daughter and I finish our book “A Line In The Sand.” As we begin writing, I am very excited about what God is doing through this work. I believe God is revealing a very important story, while at the same time drawing my daughter and me closer together in a way that blesses me beyond what I can describe. Please pray for this effort. Right now, we anticipate the book’s completion to be by the end of the year at the latest. By God’s grace, it may be as early as late fall.
God bless you all. I will check in from time to time, particularly on issues related to getting Christians involved in taking this nation back.
What (nearly) killed the markets today?
A nearly 1000 point drop in the DOW. Gold up nearly $30. What does is all mean? Well, that depends on who you ask at this hour. MSM news outlets are claiming a computer glitch or a mistake made when entering a trade. Others claim the markets are simply catching wind of just how serious of a problem exists in the currency markets with the sovereign debt problems in Greece and the Euro zone. Still others blame HFT - High Frequency Trading – that simply got caught without a negative feedback loop, ala the 1987 crash.
Whatever the reason, one thing is certain. Market sentiment is sure to have changed. All the spin that has been engineered by the MSM and PTB over the last year was undone in one, 60 minute roller coaster ride on Wall St. If nothing else was evident today, it is clear that someone – be it millions of individual someones – or a few computer programmers in the glass houses of the big investment banks – has a hair trigger when it comes to exiting the markets. That was on display for all investors to see today, and now people know that they can lose thousands of dollars in the blink of an eye. Investors now will have their finger hovering over the mouse clicker or on the speed dial number of their broker. “Sell NOW!” is on their minds.
18 months is not long enough for investors to have forgotten the pain that the market dive in late 08 and early 09 brought them. They saw their financial life pass before their eyes. Many were late to “get back in” and have recovered only a fraction of their losses. They will not stand by this time and watch the rest of it slip away. The question is, where will they go? If today’s market action did nothing else, it served to reveal in a 3 hour period where money will flow when the next down leg gains momentum (tomorrow and Monday will tell us if that is now). Places to be: US Treasuries, the US dollar, gold and silver and their equities. Nearly everything else got thrashed today.
Let’s look at these one by one. US Treasuries will be a safe haven only for a short period of time. That period could be days or months, depending on how quickly things unravel. Eventually, they too will join the list of asset classes doomed to fall. Ditto for the US dollar. In the game of cascading currency defaults, even the last man standing (which will NOT be the US dollar) will fall.
Now to gold and silver. Today they showed their metal (no pun intended). Gold was firm all day long, steadily catching a bid in the face of major market turmoil. Silver was noteworthy due to its lack of volatility. This is the opposite of what happened in late 08/09′ when they both got crushed with the markets. Why? I have given this some thought, and in 08/09, the markets were under pressure because the financial system was failing. Now, however the actual “money” itself is failing. Big, big, big (did I say big?) difference. This is a trend that will continue throughout the remainder of this crisis, until our current fiat empire is replaced by something else.
And what about energy and other “hard” assets? Well, you saw that they will likely receive the same treatment – at least in the short term – as most other asset classes. The fear of “demand destruction” will outweigh the flight to tangible assets in the early stages. That simply means that energy and other hard assets will be great investment opportunities after the first wave of selling subsides. It will take some wisdom to know when to enter those markets.
If the markets somehow gather themselves tomorrow and are able to put this horror show behind them. It will only be temporary. Gold may pull back slightly, however people now know what to expect. More and more people will begin to accumulate precious metals and their shares. Even Larry Kudlow remarked today “Gold is now the world’s reserve currency. Amazing.” Not for those who have been watching this unfold for the past 3 to 5 years. Not for the Austrian economists. Not for those who read and study history. And last but not least, not for those who read and study their Bible.
Buckle up everyone. The next few days will be very telling. Let’s see how the overseas markets view today’s action.
Agenda – Grinding America Down (5 star!)
Words from Jim Sinclair
I have been following Jim Sinclair’s writings for years. He has focused on the gold market as a means to protect your wealth. He often talks in somewhat coded language. This is by far his strongest, direct warning to prepare. Please take heed.
My suggestion for those who have not yet done so is to 1) secure a source for clean water. That may be as simple as several good water filters. Remember, wells will not work without electricity. City water? Don’t count on it. 2) get a food supply set aside. This is a long discussion, however I suggest some food grade buckets, mylar bags, wheat, rice and beans (don’t forget baking supplies such as baking soda and baking powder)- dried fruits, canned goods, etc. etc.
Now it the time. At best I believe we have a couple of years before some kind of dislocation happens. I’ll say it again – now is the time. Are you ready?
The System Has Failed
Posted: Apr 07 2011 By: Jim Sinclair Post Edited: April 7, 2011 at 11:22 pm
Filed under: General Editorial
Dear CIGAs,
The system has failed. It failed the day that Lehman Brothers was flushed.
There is a financial condition of an ocean of liquidity making the broken remains of a failed financial system in the Western world opaque.
There is no future failure coming. What is coming is a mass realization that exposes the fact there is no functioning system under all this liquidity. It is a sharp contraction in confidence that lies down the road. Realize this and know that there is one more step you need to make.
Having the largest pile of gold and silver without considering one more step might make you a modern Midas.
There is more to insurance than simply financial. Shortages of goods and services will occur because of currency induced cost push inflation resulting in dislocations of the organization and compensation in the distribution functions. That means there could be ample food in the system but little available on the shelf of your local market.
Because of the ill-understood world shaping changes in the Middle East, the impact of “Peak Oil” on price has been sharply accelerated. Public utilities considered now as a human right will prove themselves to be privileges. Expectation of power on a constant basis will become a hollow expectation.
If you do not have the experience of living in India and Africa in the 80s, you have no idea of how to live in a Western World experiencing long term currency induced cost push inflation. Self reliance will become as important as your holdings in gold. To have a huge pile of gold but remain totally dependent on the infrastructure of the Western World system is a serious mistake. You would have substantial capital but lack goods and services to buy. You will be able to afford much, but much will be either in short supply or illegal.
You know more about what is occurring than 99% of investors.
You are the 1% that knows the SYSTEM HAS FAILED.
You are the 1% that knows the system failed the minute Lehman Brothers was flushed.
You are the 1% not looking for some failure in the future but know there is no system below the flood of liquidity.
You are the 1% that has been exposed to the concept of currency induced cost push.
You are the 1% that can understand the future.
Please be that 1% that is not seduced by your profits and fails to take the last step to the best degree they can.
The picture above is another aspect of Sunnyfield’s Farm. It is one of two 20KW generators powered by a marine diesel engine. There is a special fuel filter system custom designed that allows this engine to run on low grade heating oil. There is at all times 14,000 gallons of fuel buried. This fuel is diesel, heating oil and gasoline. This is at best a short-term answer to the predictable failure of fossil fuel electric generation. The longer term solution is wind power banking batteries and a converter.
I will walk you through everything that I have done in hopes that you might use it as a model to improve on.
Regards,
View PostJim