Best of the Week
Most Popular
1.BrExit House Prices Crash, Flat or Rally? UK Housing Market Affordability Crisis - Nadeem_Walayat
2.Stocks Bull Market Climbs Wall of Worry, Bubble? When Will it End? - Nadeem_Walayat
3.Gold Price Is Now On Its Way To All-Time Highs - Hubert_Moolman
4.Deutche Bank Stock Price Crash - The EU Has Problems Far Beyond the Brexit - Harry_Dent
5.UK interest Rate PANIC CUT! As Banks Prepare to Steal Customer Deposits - Nadeem_Walayat
6.Gold and Silver Bull Phase 1 : Final Impulse Dead Ahead - Plunger
7.Central Bankers Fighting An Unprecedented Global Economic Slowdown - Gordon_T_Long
8.Putin Hacking Hillary for Trump, Russia's Manchurian Candidate? - Nadeem_Walayat
9.Stock Market Insiders Are Secretly Selling, Cycle Top Next Month - Chris_Vermeulen
10.Gold Sector - Is it time to Back up the Truck? – Mortgage the Farm? - Peter_Degraaf
Free Silver
Last 7 days
Stock Market - All Is Calm, All Is Not Right - 27th Aug 16
Gold Junior Stocks Q2 2016 Fundamentals - 26th Aug 16
Buy Gold’s August Dip? Gold’s Monthly Sweet Spot In September - 26th Aug 16
The IMF’s Internal Audit Reveals Its Incompetence and Massive Rule Breaking - 26th Aug 16
Commodities Are the Best Bargain Now—Here’s What to Buy - 26th Aug 16
Why I Left Canada and Became A Citizen of the Dominican Republic - 26th Aug 16
The GLD vs GOLD - 26th Aug 16
Can Stocks Survive Without Stimulus? - 25th Aug 16
Why Putin Might Be on His Way Out - 25th Aug 16
Bond Guru Gary Shilling - The Bond Market Rally of a Lifetime - 25th Aug 16
A Zombie Financial System, Black Swans and a Gold Share Correction - 25th Aug 16
OPEC’s Output Freeze: What Has Changed Since Doha? - 25th Aug 16
Merkel Prepares For a Deliberate Crisis While White House Plans For a Disastrous Succession - 24th Aug 16
Suspicious Reversal in Gold Price - 23rd Aug 16
If Trump Can’t Pull Off a Victory, Expect a Civil War - 23rd Aug 16
Ceding ICANN and Internet Control to Globalists - 23rd Aug 16
How to Spot an Oversold Stock Market - 23rd Aug 16
Gerald Celente Sees Worst Market Crash, New Military Conflict, Gold Spike to $2,000/oz - 23rd Aug 16
EU Olympics Medals Table Propaganda Includes BrExit Britain - 22nd Aug 16
BrExit Win's Britain Olympics Success Freedom Dividend, Economy Next - 22nd Aug 16
Stock Market Top Forming, but Slowly - 22nd Aug 16
(Really) Alternative Banking Systems - 22nd Aug 16
Vauxhall Zafira Fires - Second Recall Issued - Inspection Before Bursting into Flames? - 21st Aug 16
Will the Stock Market Bubble Pop Regardless if the FED Never Raises Rates? - 21st Aug 16
US Government Spending - 3 Big Stories Not Being Covered – Part III - 21st Aug 16
Silver Analysis - 20th Aug 16
SPX New Highs, Correction Next? - 20th Aug 16
Housing Bubble - The Marginal Buyer Holds The Pin That Pops Every Asset Bubble - 20th Aug 16
Gold Miners Q2 2016 Fundamentals - 19th Aug 16
Which Price Ratio Matters Most in a Fiat Ponzi? - 19th Aug 16
Big Policies, Bigger Failures - 19th Aug 16
Higher Crude Oil’s Prices and USD/CAD - 19th Aug 16
Here’s Why You Should Look for Dividend Stocks and How - 19th Aug 16
Deglobalization Already Underway — 4 Technologies That Will Speed It Up - 19th Aug 16
These 6 Charts Show Why the Average American Is Fed Up - 18th Aug 16
SPX Easing Lower - 18th Aug 16
Low / Negative Interst Rate’s Legacy - 18th Aug 16
The 45th Anniversary of The Most Destructive Event In Modern Monetary History - 18th Aug 16
USDU - An Important Perspective on the US Dollar - 17th Aug 16
SPX Completes Wave 1 Decline - 17th Aug 16
How to Quickly Spot Common Fibonacci Ratios on a Chart - 17th Aug 16
When Does a Forecast Become a Trade? - 17th Aug 16
Kondratiev Wave - The Financial Winter Is Nearing! - 17th Aug 16
Learn "The 4 Best Elliott Waves to Trade -- and How to Trade Them" - 16th Aug 16
Stock Market Bears Turning Bullish At New All Time Highs - Time to Get Worried? - 15th Aug 16
Job Seekers Sacrificed to the Inflation Gods - 15th Aug 16
A Look At Commodities and Financial Markets Trading Week Ahead - 15th Aug 16
Stock Market New Top Forming? - 15th Aug 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

How to Trade Elliott Waves

Bail-Ins And Negative Interest Rates, The Ultimate Admission Of Failure....

Interest-Rates / US Interest Rates Mar 14, 2016 - 02:16 PM GMT

By: Submissions

Interest-Rates

Mike Hoy writes: ... Cash and Physical Gold, Standing in The Way of a Lifetime of Financial Servitude and Slavery!

For the last several decades, the out-of-control growth of US Government spending when combined with the unlimited printing policies of "The Fed" has set the stage for "The Perfect Storm!"

Anyone with a simple calculator can easily understand how it is virtually impossible for 320,000,000 people to retire a current and rapidly growing debt of $19,000,000,000,000. This is a sum which equates into $60,000 worth of debt per man, woman and child in the US today. Please ignore the fact that half of the population pays no income tax at all. Forget about the $100,000,000,000,000-$200,000,000,000,000 in future entitlement obligations as only a dreamer could believe this debt has any chance of ever being funded with anything other than more worthless paper!!


Two very important factors separate the US from the rest of the indebted nations of the world. First; the US debt dwarfs the debt of all other nations. Second; the US population has been brainwashed into the false belief the mere existence of "The Fed" is an "unquestioned given" entitled with the "inalienable right to print" unlimited trillions of fiat dollars to bail itself and any of its friends out of any mess they may find themselves in!

The US financial system came within an eyelash of imploding in September of 2008 as "The Run" on money market accounts threatened to bring the financial system to its knees!

To the rescue came "Helicopter Ben" as head of "The Fed" armed with his theories from a lifetime of study which he was eager to implement in a real life situation.

"Uncle Ben" opened the floodgates passing out trillions in "monopoly money" as he believed the solution to the problem was more of the same. He was presented the classic opportunity to attack and destroy the enemy responsible for the creation and implementation of "The Financial Weapons of Mass Destruction" while bringing to justice those responsible for the desecration of the world-wide financial system.

Unfortunately his mousetrap wound up being designed by and for the benefit of the "rats" responsible for the implosion within the financial system. Instead of being the cure for the impending nightmare "Uncle Ben's policies" wound-up becoming an effective vaccination for the "rats" as their numbers multiplied with the disappearance of the cheese; leaving the masses of the world to deal with the mortal side-effects of a corrupt financial world gone mad!

Not only did no one go to prison as a result of the 2008 implosion but the solution chosen by The Fed to print trillions has made a very dangerous financial nightmare exponentially worse when "The Fat Lady" does makes her appearance!


The Next Chapter is Written:

It was not enough lowering interest to zero destroying the life savings of depositors; now the architects responsible for "The Next Depression" are currently in the process of unveiling their next and greatest scam on the bank depositors of the world as they know the orchestra is warming up in preparation for the finale!

Regardless of the misinformation being spewed daily by a bought-off mass media the architects know the day of reckoning is close at hand where their derivative nightmare is imploding and depositors will be lined up demanding their funds just like 1929.

They are also aware of the fact that "you never let a good crisis go to waste" particularly when the greatest opportunity to legally rob their depositors has availed itself at the exact same time "justice" should be pounding on their door to haul them away in chains!

Negative interest rates are the proposed camouflaged bail-in funding scam designed to not only cover-up one the greatest banking debacles of all time but it also serves as the blueprint to pull off the greatest banking heist in history as depositors will be "locked in" to a lifetime of slavery and servitude with no place to run!

Not only has their lifetime savings been stolen but they now must pay, to the same thieves who stole their money, lifetime fees on every withdrawal and deposit to their captive bank accounts!

Simply put; "bail-ins" are designed to give the Government, and their banking friends, complete and absolute control over the finances of every citizen in this Country and The World for the rest of their lives! This is another "tax" that will never go away!


Forever Mortgage on Life: Abolition on Cash:

It is no accident the Countries of the world are in the process of eliminating cash from their societies at the exact same time negative interest rates are becoming a household phrase. These Countries, including the US, know the only way they can maintain absolute and complete control over depositor funds while charging for the privilege of being in possession of those funds is to eliminate all competition. Cash is their greatest immediate competitor and it must be eliminated. If you eliminate cash withdrawals there will be no standing in line as the system implodes!

This act, most likely, will bring about the architects own demise as eliminating cash withdrawals will end in a massive panic to purchase and take possession of physical gold and silver. This transfer will repatriate depositor funds from a bankrupt system to a physical asset that is no man's liability which will never be worthless! Gold's recent breakout from its multi-year bear market is a direct result of the masses awakening to the growing risk of confiscation in the banking system!

Therefore, "The Powers That Be" must also "attempt" to eliminate the actual purchase and possession of physical gold and silver! Failing to do so would create a leak in the dam which imprisons captive depositor assets. To ignore this leak would compromise the structure of the dam as the funds escaping would exponentially grow in numbers as the masses awaken to the diabolical theft now underway!


"The Trigger" Which Brings Down The House of Paper!

For decades, The US Dollar earned its seat at the head of The World Reserve Currency Table through strong leadership in financial, economic and fiscal trade policies where the US amassed the world's largest trade surplus. Unfortunately, those days are fond memories as the US is clearly the world's greatest debtor nation as the outsourcing of its manufacturing base has destroyed millions of US jobs where consumers are now dependent upon foreign made goods and services to supply the trinkets and toys they can no longer afford but are addicted to buying.

This shift from being a major producer to an indebted consumer has rendered the historical US superiority advantage obsolete in many fields they were once masters!

Two generations of US Citizens have been born and raised under the mistaken belief that financial issues which are being dealt with on foreign shores as a result of fiscal irresponsibility simply cannot happen here. I wish it were true but history begs to differ as the facts bare out!

Bank "bail-ins" will be the "ultimate admission of failure by the Government" exposing decades of lies, corruption and manipulation which have become adopted and unquestioned as a normal practice of doing business!

The illusion that all is well created by certain elected officials being spread by a "bought off Mass Media" will continue until a trigger is pulled bringing true reality into the lives of those who have never learned to think for themselves!

I have written in the past that I believe "The Trigger" which ultimately sets the dominoes in motion creating long lines at the bank to get cash, which simply does not and never has existed in quantities sufficient to ward off bank runs, will be a massive disruption in the physical delivery and supply of gold as the public awakens to the fact that they must regain control of their own personal wealth.

When the day arrives where the public is denied the right to purchase physical gold and silver either by Government decree or the fact that the physical supply of gold has reached its available supply limits at prices anywhere near these levels; gold and silver prices will rise dramatically and a New World Reserve Currency will be born which I believe will be backed by gold.

The logic is simple; if you are a foreign supplier of goods and services would you prefer to accept as payment, for your labor and declining resources, a currency printed out of thin air, backed by only a promise to pay from the world's largest debtor nation or would you prefer to trade in a currency backed by gold regardless of the conversion ratio?

The only question which needs to be answered deals with the timing of "The Trigger" being pulled. Until that day arrives, when the supply of gold disappears, the "Game" will continue with the ultimate winner taking full advantage of every opportunity to add to their holdings converting the never-ending flood of overpriced and worthless paper into an asset with limited supplies which will never be deemed "worthless!"

One would think the value of the paper currency would collapse as the transfer from paper to gold is taking place. Oddly enough, the exact opposite is happening as the value of the paper is being supported at record high levels to maintain the illusion that all is well on the financial Homefront of the fiat paper dominated society, while the price of gold and silver has been manipulated in the paper markets to the downside for years in hopes that gold would revert back to its once believed place in the financial chain as that of an "Archaic Relic!"

Just imagine for a moment the absolute giddiness of those who for years have been dumping paper, they know to be worthless, at record high prices; while taking the massive profits and proceeds to buy the limited available quantities of gold at prices they cannot even begin to comprehend.

These accumulators of true wealth are perfectly content to see this "Game" go on as long as possible! The "Game" will end when the supply of gold is depleted culminating with the crowning of a New World Reserve Currency backed by gold!

The irony to this madness is the fact that the masses, when they awaken to the financial collapse directly in front of them, will initially revert to history as they panic to buy the dollar thinking they have a safe haven in which to ride the storm out! Unfortunately, the recent rise and breakout in the price of gold may be a sign that "The Greatest Bubble in the History of Paper Currency" is in the process of being burst!

Those with exposure to long term 10 year and 30 year US Treasury Bonds yielding well below 3% are going to be in for some very unpleasant surprises as the world panics to dump paper that is deemed to be very questionable in safety while yielding no return on their investment.

One must be in a prescription induced hypnotic trance to own 10 year and 30 year US Government bonds at record high prices and record low yields when the only hope of ever refunding their principal is through the printing of more worthless paper.

Miss a few payments on your credit card and then tell me how high your interest rates rise! Do you really think record low interest rates on record high US Government debt have anything in common with a free market environment? This is not a bad time to think about "Return of Capital versus Return on Capital!"


All is Not Lost!

Those who believe today's times share frightening similarities with the Depression of the 1930's might be interested to know that while the vast majority of US citizens suffered greatly, with many of those losing everything, there were those who prospered.

If the theories behind anything written in this article come to pass then I believe the financial events of the last few decades has set the stage for enormous wealth to be made as the masses awaken from their "normalcy bias" induced trance to begin seeking answers to simple questions they should have asked long ago!

And this ladies and gentlemen is where history offers a viable hedge against the uncertain times which most likely will mirror the Depression of the 1930's! It is not a question of "IF" but only a question of "WHEN" "The Trigger" is pulled bringing about the change that very few can even begin to comprehend!

This will be the subject of my next article which is currently in the process of being written.

An Open Invitation!

For those with an interest in investments we own in our own portfolios I invite you to join my Free E-Mail List where I share my thoughts and investments with those who are on my list. I currently view my favorite equity position as one of the best and most timely investments I have ever made at these prices.

Those with an interest to join my list or have any questions can simply respond at the e-mail address below where you can ask to be added to my list! I have not nor will I ever sell or distribute any information from my list.

mhoy@neb.rr.com

Mike

Mike Hoy is a graduate from The University of Nebraska in Lincoln Ne.  He has a degree in Accounting with a minor in Economics.  He spent 15 years as a licensed series 7 broker in the US from 1978-1993.

Mike has been writing since 2004 where he write specializes in the financial markets, economics and the precious metals.

© Copyright Mike Hoy 2016

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.


© 2005-2016 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

Catching a Falling Financial Knife