Best of the Week
Most Popular
1.The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - Doug_Wakefieldth
2.Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - Nadeem_Walayat
3.The Trend Every Nation on Earth Is Pouring Money Into - Keith Fitz-Gerald
4.Do Tumbling Buybacks Signal Another Stock Market Crash? - 26Mike_Whitney
5.Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - Nadeem_Walayat
6.Gold And Silver Price - Respect The Trend But Prepare For A Reversal - Michael_Noonan
7.U.S. Economy Faltering Momentum, Debt and Asset Bubbles - Lacy Hunt
8.Bullish Silver Stealth Buying - Zeal_LLC
9.Euro, USD, Gold and Stocks According to Chartology - Rambus_Chartology
10.Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - EWI
Last 5 days
Gold And Silver – Elite Supernova Death Dance In PMs? - 1st Nov 14
Pretium - Canadian Golden Elephant - 31st Oct 14
What USA Today Got Wrong About the Stock Market Fear Gauge - 31st Oct 14
Election Result - Labour Wins South Yorkshire Police and Crime Commissioner - 31st Oct 14
Gold Price Falls, Stocks Record Highs as Japan Goes ‘Weimar’ - 31st Oct 14
EUR/USD - Double Bottom Or New Lows? - 31st Oct 14
More Downside Ahead for Gold and Silver - 31st Oct 14
QE Is Dead, Now You Tell Me What You Know - 31st Oct 14
Welcome to the World of Volatility - 31st Oct 14
Stocks Bear Market Crash Towards New All Time Highs as QE3 End Awaits QE4 Start - 31st Oct 14
US Mortgages, Risky Bisiness "Easy Money" - 30th Oct 14
Gold, Silver and Currency Wars - 30th Oct 14
How to Recognize a Stock Market “Bear Raid” on Wall Street - 30th Oct 14
U.S. Midterm Elections: Would a Republican Win Be Bullish for the Stock Market? - 30th Oct 14
Stock Market S&P Index MAP Wave Analysis Forecast - 30th Oct 14
Gold Price Declines Once Again As Expected - 30th Oct 14
Depression and the Economy of a Country - 30th Oct 14
Fed Ends QE? Greenspan Says Gold “Measurably” “Higher” In 5 Years - 30th Oct 14
Apocalypse Now Or Nirvana Next Week? - 30th Oct 14
Understanding Gold's Massive Impact on Fed Maneuvering - 30th Oct 14
Europe: Building a Banking Union - 30th Oct 14
The Colder War: How the Global Energy Trade Slipped From America's Grasp - 30th Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VIII) - 29th Oct 14
Flock of Black Swans Points to Imminent Stock Market Crash - 29th Oct 14
Bank of America's Mortgage Headaches - 29th Oct 14
Risk Management - Why I Run “Ultimate Trailing Stops” on All My Investments - 29th Oct 14
As the Eurozone Economy Stalls, China Cuts the Red Tape - 29th Oct 14
Stock Market Bubble Goes Pop - 29th Oct 14
Gold's Obituary - 29th Oct 14
A Medical Breakthrough Creating Stock Profits - 29th Oct 14
Greenspan: Gold Price Will Rise - 29th Oct 14
The Most Important Stock Market Chart on the Planet - 29th Oct 14
Mysterious Death od CEO Who Went Against the Petrodollar - 29th Oct 14
Hillary Clinton Could Be One of the Best U.S. Presidents Ever - 29th Oct 14
The Worst Advice Wall Street Ever Gave - 29th Oct 14
Bitcoin Price Narrow Range, Might Not Be for Long - 29th Oct 14
UKIP South Yorkshire PCC Election Win is Just Not Going to Happen - 29th Oct 14
Evidence of New U.S. Housing Market Real Estate Bust Starting to Appear - 28th Oct 14
Principle, Rigor and Execution Matter in U.S. Foreign Policy - 28th Oct 14
This Little Piggy Bent The Market - 28th Oct 14
Global Housing Markets - Don’t Buy A Home, You’ll Get Burned! - 28th Oct 14
U.S. Economic Snapshot - Strong Dollar Eating into corporate Profits - 28th Oct 14
Oliver Gross Says Peak Gold Is Here to Stay - 28th Oct 14
The Hedge Fund Rich List Infographic - 28th Oct 14
Does Gold Price Always Respond to Real Interest Rates? - 28th Oct 14
When Will Central Bank Morons Ever Learn? asks Albert Edwards at Societe General - 28th Oct 14
Functional Economics - Getting Your House in Order - 28th Oct 14
Humanity Accelerating to What Exactly? - 27th Oct 14
A Scary Story for Emerging Markets - 27th Oct 14
Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - 27th Oct 14
Europe Redefines Bank Stress Tests - 27th Oct 14
Stock Market Intermediate Correction Underway - 27th Oct 14
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans - 26th Oct 14
Obamacare Is Not a Revolution, It Is Mere Evolution - 26th Oct 14
Do Tumbling Buybacks Signal Another Stock Market Crash? - 26th Oct 14
Has the FTSE Stock Market Index Put in a Major Top? - 26th Oct 14
Christmas In October – Desperate Measures - 26th Oct 14
Stock Market Primary IV Continues - 26th Oct 14
Gold And Silver Price - Respect The Trend But Prepare For A Reversal - 25th Oct 14
Ebola Has Nothing To Do With The Stock Market - 25th Oct 14
The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - 25th Oct 14
Japanese Style Deflation Coming? Where? Fed Falling Behind the Curve? Which Way? - 25th Oct 14
Gold Price Rebounds but Gold Miners Struggle - 25th Oct 14
Stock Market Buy the Dip or Sell the Rally - 25th Oct 14
Get Ready for “Stupid Cheap” Stock Prices - 25th Oct 14
The Trend Every Nation on Earth Is Pouring Money Into - 25th Oct 14 - Keith Fitz-Gerald
Bitcoin Price Decline Stopped, Possibly Temporarily - 25th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Free Forex Forecasts

Financial Crash, Economic Crash, We Have Been Warned!

Stock-Markets / Financial Crash Oct 09, 2012 - 02:22 AM GMT

By: DeviantInvestor

Stock-Markets

Best Financial Markets Analysis ArticleBernanke gave his “helicopter” speech in which he made reference to a “helicopter drop of money.” But the critical point in his speech was:

“U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in term of goods and services, which is equivalent to raising the prices in dollars of those goods and services.”


Currently the “helicopter drops” are primarily fed into the reserves of the banks and to cover the increasing deficits between government expenses and revenues. There is no end to how many dollars the Federal Reserve can create. At the time of Bernanke’s speech, an ounce of gold was worth approximately $320. As of September 2012, that same ounce of gold is worth over $1,700. The gold has not changed, but the value of the dollar has declined. As more dollars are created or “dropped from helicopters,” all existing dollars become less valuable. We have been warned.

September 11, 2001: The official story is that two jets crashed into two World Trade Center buildings and caused three buildings to collapse. The violence and destruction were blamed on Al Qaeda and provided the impetus for “The Patriot Act” and two massively expensive wars in Iraq and Afghanistan. For 6,000 years the Middle East has been filled with anger, hatred, and war between the people and countries of the Middle East and toward outsiders such as England and the United States. The 911 attack was one of many in an ongoing series of Middle East related violent attacks that seem destined to continue.

Regardless of who was responsible for the loss of life and the horrific destruction of 911, war tensions are increasing in the Middle East and another devastating war is increasingly probable. Nuclear war has been threatened. The adverse consequences for the economies of many nations, destruction of life and property, and other collateral damage will be dreadful. When will the violence and destruction end? We have been warned.

2007 – 2008: A financial crash caused the S&P 500 index to drop over 55%. People lost their homes, unemployment climbed much higher and has not come down, many businesses closed, and the standard of living for most Americans declined. The crash was at least partially caused by excessive leverage in the financial community including derivatives rated AAA when they were better described as “toxic waste” and possibly fraudulent. An over-leveraged financial system is prone to crashes. Nothing of substance in our financial system has been fixed. Many believe another financial crash is inevitable and perhaps imminent. We have seen it once. As noted by many astute individuals, it can and probably will happen again. We have been warned.

September 2012: Five renowned economists published an editorial in the Wall Street Journal. They said:

“The problems are close to being unmanageable now. If we stay on the current path, they will wind up being completely unmanageable, culminating in an unwelcome explosion and crisis.

The fixes are blindingly obvious. Economic theory, empirical studies and historical experience teach that the solutions are the lowest possible tax rates on the broadest base, sufficient to fund the necessary functions of government on balance over the business cycle; sound monetary policy; trade liberalization; spending control and entitlement reform; and regulatory, litigation and education reform. The need is clear. Why wait for disaster? The future is now.”

They understand the problems and the solutions to our current economic problems. Must we wait for another financial and economic crash and more violence and bloodshed before we can intelligently act in our own best interest? We have been warned.

September 2012: The national debt exceeds $16,000,000,000,000. This does not include other “off-budget” liabilities such as the present value of future costs of Medicare, Social Security, and federal pensions. Prof. Lawrence Kotlikoff of Boston University relies on the statistics from the Congressional Budget Office. He estimated the present value of the “off-budget” liability at approximately $220,000,000,000,000. Does anyone really believe that quantity of dollars will be created by growth in the economy? It appears that continual “helicopter drops” of “printed” dollars, such as QE3, are the only likely answer from the Federal Reserve and our Congress to address our out of control deficits, out of control debt, and out of control entitlements! David Stockman, former head of the Office of Management and Budget, and many others have fervently proclaimed that these deficits, liabilities, and debts are unsustainable. We have been warned.

2007 – 2012: J. P. Morgan told Congress in 1912, “Gold is money. Everything else is credit.” Russia and China have been purchasing gold (real money) in huge quantities from around the world. Gold is rapidly leaving western economies and flowing into Russia, China, and other Asian countries. What do they understand that we, in the west, are ignoring? We have been warned.

There have been numerous other warnings regarding our on-going economic, financial, and political self destruction. Observe the reality of continual war, an unsustainable financial system, and the insanity of self-destructive political decisions. We have been warned.

Conclusion

Expect more trauma dead ahead. As they say, “rig for stormy weather.” The forecast, as I see it, is for:

  • Increased “money printing.” “Quantitative Easing to Infinity,” “QE4-Ever,” and “Inflate or Die” seem accurate.
  • Substantial consumer price inflation. I don’t think we’ll spend $100 to pay for a cup of coffee, but I do think very uncomfortable prices for food, energy, and other essentials are inevitable.
  • Regardless of who wins the 2012 Presidential election, his term will be filled with tremendous economic, financial, and political challenges.
  • A severe economic recession in 2013 seems inevitable.
  • Another financial crash within a few years seems likely.
  • A financial crash could lead to an economic crash, in which the economy cannot provide for basic needs or services to a substantial number of people for an uncomfortable period of time. Think Greece in 2012, Spain in 2013, and the United States in 20XX.
  • The government will “do something,” and it will not help.
  • There is still time to buy gold and silver.
  • We have been warned.

GE Christenson
aka Deviant Investor

Source - http://goldsilverworlds.com/gold-silver-insights/tips-on-how-to-time-gold-purchases-with-technical-analysis/

© 2012 Copyright goldsilverworlds - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014