Gold & Silver off to the races

The system is bankrupt

There has never before been a time in history when most sovereign nations are bankrupt and when the financial system only survives due to false accounting. (Banks are allowed to value worthless toxic debt at maturity value rather than market value). So sadly we are now likely to start the next phase in the world economy which is a hyperinflationary depression. Hyperinflation arises as a result of money printing which leads to the currency collapsing. Whilst the price of most goods and services go up dramatically with hyperinflation, most of the assets that were financed by the credit bubble like stocks, bonds and property will collapse in real terms i.e. against gold.

Shangri-La or Ponzi Scheme

As the focus shifts to the USA during the autumn, there will be pressure on the US dollar which eventually will put strong upward pressure on interest rates. The free money bonanza with zero interest rates will come to an end with US rates (and others) soon starting their journey to double figures. Governments and central bankers must have thought that they had invented a financial Perpetuum Mobile. First you set interest rates at zero and then you print and borrow unlimited amounts of money since it is all free. This way we can all experience Shangri-la. But sadly, governments have not reinvented paradise but only been busy creating a fraudulent Ponzi scheme. And like all Ponzi schemes this one will also collapse which will create worldwide social and economic misery for many generations to come.

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Comment by truth on August 24, 2012 at 1:58pm

Major Development in Precious Metals: “The Time to Buy Cheap Will Soon Be Gone”

Mac Slavo
August 24th, 2012
SHTFplan.com

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Read by 405 people

With the Congressional Budget Office reporting that the United States will soon fall off the fiscal cliff unless the government takes immediate action, the Federal Reserve weighing another round of heavy-hitting monetary expansion, and the Republican Party now apparently jumping on board the gold standard train, the stars for precious metals seem to be in alignment. So says Peter Schiff, CEO of Europacific Precious Metals.

Having been ahead of gold’s massive upward move years before the bursting of the real estate bubble and crash of 2008, Schiff says there has been a “major development in precious metals,” and if you don’t have http://www.shtfplan.com/precious-metals/major-development-in-precio... gold or silver yet, this may be your last chance before they head to new record highs.