Watching the markets this week one can't help but wonder if we're entering into the period of deflation many have speculated would hit before hyper inflation takes hold. It's amazing to watch the price of gold drop so drastically. My gut tells me there's manipulation at play likely so central banks can buy it all up before it goes through the roof. Thoughts?
My gut tells me there's manipulation at play likely so central banks can buy it all up before it goes through the roof. Thoughts?
Got it in one.
Absolutely true. Here's something even scarier:
"Through the use of futures markets, the Commodities Futures Trading Commission (CFTC) has granted bankers a mechanism to perform alchemy and turn paper into gold on the COMEX by allowing them to establish obscene short positions that represent 25% to nearly 40% of annual gold production at times while simultaneously allowing them to renege on their fiduciary responsibility to actually physically possess the gold represented by their short positions. In other words, the CFTC has allowed gold to operate under the principles of the fractional reserve banking system on the COMEX futures markets."
it has been said that there are almost 100 paper "owners" for every ounce of gold. Each paper owner is legally entitled to demand their one ounce of physical gold at any time, but there's only enough real gold to cover 1% of the paper. However, the continuous release of new paper keeps the market price of gold artificially low.
So, I can't imagine this can continue. If you want to buy gold, make sure you actually have physical possession of it, not just the paper.
If this is the case, how long do we have before hyperinflation hits?
I couldn't even hazard a guess. Could be days, months or years. All we can do is prepare and wait. The more independent of the system you are when it crashes (and it will) the better off you'll be.
I couldn't even hazard a guess. Could be days, months or years. All we can do is prepare and wait. The more independent of the system you are when it crashes (and it will) the better off you'll be.
Thought as much 😛 Well, hopefully we have at least a few months. I would feel better if I had some more time to prepare for it.
Me too. But none of us will ever be as prepared as we'd like. Just gotta make the most with the time given to us and cherish what we're blessed with.
Without a doubt we are entering a deflationary stage of the markets.I think we have awhile. Unless there's a black swan. I'm watching the fundamentals, along with the futures & derivative markets. I think bonds are a good thing to watch to a degree, they keep edging down and down. Just remember the bond market may be the next bubble. I think whole market is heavily over valued and is desperate for correction, but we won't let them correct accordingly. This is where I think the central banks know that the jig is up and we are broke globally - too much debt. That's why the need for the unorthodox money printing globally. Timing is tough to pin point especially with all the libor manipulation in the market. I guess there's a reason why they call it HYPERinflation.
I never thought costco shelving could be so amazing
IMHO the only thing that could launch us into sudden hyperinflation right now -without warning- is World War 3 or a disaster on a similar scale. A collapsing economy will first cause assets and commodities (gold, oil, real estate etc...) to initially fall. then as the beast grinds to a halt the lack of production will cause the rapid inflation of EVERYTHING. When the toilet paper hits the fan you know the poop is next!
Keep in mind the cost of food (and water in some areas) will rise even during deflationary times simply due to supply/demand.
I think whole market is heavily over valued and is desperate for correction, but we won't let them correct accordingly. This is where I think the central banks know that the jig is up and we are broke globally - too much debt. That's why the need for the unorthodox money printing globally.
So very true..
I'm wondering if this will be a slow economic decay like these cities:
We might be onto something 😉
I never thought costco shelving could be so amazing
Wow there's no good news in those stats.
"#3 Back during the housing bubble, an acre of land in downtown Phoenix, Arizona sold for about $90 a square foot. Today, an acre in downtown Phoenix sells for about $9 a square foot."
a little bit deflationary.
"#16 The murder rate in Flint, Michigan is higher than the murder rate in Baghdad."
Coming to a city near you!
When do you folks see the economic circus starting here in Canada?
I never thought costco shelving could be so amazing
Around here I see more commercial property for lease and for sale than stores open for business. Also, the majority of homes for sale 2 years ago are still on the market today. Theres many unemployed people but our social welfare system masks the effects, at least in the short term. It's at least indicative of a depressed economy. But the circus will come riding the wave of the next few bubbles popping (derivatives market,bonds, household debt)
Around here I see more commercial property for lease and for sale than stores open for business. Also, the majority of homes for sale 2 years ago are still on the market today.
Any cheap land for sale? 😉
I never thought costco shelving could be so amazing