Saturday, September 15, 2012

STAGFLATION

Don't argue about inflation or deflation and if we are headed to an apocalyptic hyperinflationary collapse or a diabolical deflationary implosion. It doesn't matter for you. What matters is we have been told. It IS laid out for you to see. The PTB have an honor code. They will tell you what is going to happen. YOU just need to be able to interpret its consequences. Ben is telling you that his masters have told him to print to hold the banking system and the Western banking system intact. Very simply this is going to be an unlimited printing effort to reinflate a deflationary collapse. The real impact is to provide more capital to a collapsing big bank balance sheet. The bank's are still insolvent and will remain so for some time until enough money is printed for them (virtually impossible) and/or the time clock is extended until the real economy recovers (years). Ben has chosen the tool that he has available and that is debasing the currency and printing the Western banking system out of its trap. If we allow a default of ANY Eurozone country then the big banks will face collapse from their leveraged mathematics. IT CANNOT HAPPEN from the money printers perspective without a contagion risk of unimaginable consequences. Ben and his bosses very well understand this and know what they will have to employ in this scenario to maintain their control. It will be war, martial law, fear, totalitarianism, .........and not necessarily in that order.

I'll stop and give you the punchline. This is what Joe talked about incessantly to me over the past three years and has been right all along. We are going into severe stagflation. Stagflation is the limiting factor on the printing. That is why it has been essential to know that it has ALWAYS been the next step in this collapse. NOT UNTIL WE GET OUT OF CONTROL, STRANGULATING, CRUSHING PRICES in ESSENTIALS.......WILL HE LET OFF THE GAS AND PUT A STOP TO THE MONEY PRINTING.

Ben will use all the necessary tricks he has to control the prices of essentials so don't expect an overnite explosion in prices and don't think his printing will blow up on him in a few months either......YOU NOW KNOW THE LIMITING FACTOR. Its always been stagflation first and the price of essentials will be the red line.

I am not going into whether a deflationary collapse OR a hyperinflationary collapse will result......it really doesn't matter right now. We can discuss it later as this develops.

49 comments:

  1. Kli & Sheeps,

    I am picking up on the last thread where sheeps referenced the ZH article and commented the Euro will collapse.

    Well, maybe that is what "our masters" WANT us to think--the Euro will weaken. After all, aren't our masters likely primarily European?

    It is my understanding that the ECB can now lend directly to failing countries, but the structure is such that any country can veto it. Also, those countries that accept the loans must agree to austerity measure first. Meanwhile, our FED announces more QE with no timeline as to its duration and no austerity measures for the USA.

    Thus, the purchasing power of our US dollars will weaken, yet the Euro may remain stable & strengthen further.

    There was an interesting comment thread on Trader Dan (I hope this link works). A poster named "victorthecleaner" appears knowledgeable. He believes the whole goal is to strengthen the Euro and collapse the dollar. Also, LewRockwell(your blog list) with his "Operation Screw" writes similarly--the Euro will strengthen and the dollar collapse.

    We know that countries are trying to circumvent the dollar as the reserve currency. If successful, the need for dollars will eventually decrease, yet Ben is printing non-stop.

    So, I can see a scenario in which the Euro actually strengthen and could reach a point where it could become the preferred currency. Martin Armstrong does not believe hyperinflation could occur in the USA because we are the reserve currency. But, could the goal of "our masters" be to destroy the US dollar reserve currency status? If that happens, there will be a flood of too many dollars and we will be in deep do-do.

    Maybe Joe might comment as to whether he feels the US reserve currency status could be lost.

    Here's the Trader Dan link:
    http://traderdannorcini.blogspot.com/2012/09/ecb-sterilization-details-sketchy.html#comment-form

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    1. the PTB think in terms of control. if one believes that a fractured eurozone and the resulting rise of nationalistic sovereigns and separate currencies give them greater control then the euro will be allowed to collapse and the rise of separate currencies. Same applies to the USD.....A weakened USD AND the loss of reserve status will severely impact the status of the US globally and remove a potential rival for world domination. Divide and conquer must be maintained with currencies being intertwined and dependent. If a complete blowup with the last man standing scenario benefits the "chaos theory" then so be it.....no problem for them to precipitate if things start to unwind .......short answer in the near term the Euro stays and strengthens at the expense of the dollar while ben reinflates the world banks......if it fails and it certainly has a good chance then we enter scenario 1 or 2 above........

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  2. Maybe they want the US to join the EUR as part of a one world currency strategy. Killing off the USD might make the US joining the EUR party seem like a good alternative at some poInt down the line.

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  3. I am trying to get ahead of the curve as to what the PTB are thinking,...if that is even possible.

    If their goal is to replace the US dollar as the reserve, then they need another dominant currency. China has its own problems, so I don't think it will be them. If it is going to be the Euro, then they can't allow the sovereign currencies to return.

    I suppose they can keep the currency wars going, weaken all of them, and then replace with a new reserve currency. Maybe that's the plan. I believe it was Armstrong that wrote that governments would love an electronic currency. That way, all transactions could be tracked by computer, and thus taxation would be easy to compute and inforce. When the time is right, the PTB could create an electronic currency instantly via computers. They would not need to print paper money and distribute it worldwide. Already people are paying with credit cards or direct pay via their bank. Now smart phone technology is coming out for bill paying.

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  4. Debasing fiat in overleveraged Western countries has a purpose in the short term and the history of all fiat currencies is collapse. Yes these currencies being replaced by some broader currency exchange can and most likely will happen. Those holding assets of real value will be able to benefit. PMs most likely would take a major hit

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  5. Or they can try and deem PMs irrelevant as they did back in FDR's day, if we get that far.......

    http://www.zerohedge.com/news/japans-ambassador-china-dies-chinese-police-use-tear-gas-water-cannon-anti-japan-protesters

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  6. I am pretty certain that there will be no ECB printing this year. From what I have read too many obstacles to over come. despite what cnbs says. There is 245 billion euros to use and it is not enough to save anybody.

    My view there is going to be a rush to the dollar, gold, etc. very soon. There is a shortage of real dollars hence qe-3 and an attempt to fill this looming liquidity event.

    There is an article in der spiegle that say the German high court decision is VERY complex and not a slam dunk. Yesterdays meeting in Brussels was a flop and many EU nations will not go along with the ECB. Only takes one to veto. Money cannot be used to support Gov-ments and such.

    Going to get hot out...like here it has been over 100...nasty.

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  7. From a fractal standpoint on the euo/usd 10-28-11 perhaps.

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  8. Kli,

    Why did you write "PMs most likely would take a major hit"?

    I can see the metals falling in price due to deleveraging, but their buying power should at least remain constant relative to the value of other products that are also deleveraging.

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    1. I don't see the scenario that i mentioned occurring until gold/silver are much higher. So if it were three years down the road and gold was 10,000 then dropping to 4500 would be a monstrous hit......it would only happen if there were accompanying fiscal restraints/political stabilization.....ie. a lot of factors in play that are not even close yet. I actually see gold over 20K and silver over 500 eventually

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  9. Sorry for jumping the thread doc...there is no reply on my end..Your question is easy. Any new currency would be pegged to a ratio of gold not of a house for example.

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  10. http://news.goldseek.com/GoldSeek/1347653228.php

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  11. Sheeps,

    I understand that, but what Kli is implying is that the ratio of new currency to say 1 ounce of gold would not be good. The new currency would need to be pegged to something. They would need to peg it to something of recognized value. If not gold, then what,...oil, land, etc. Kli writes "assets of real value will be able to benefit". So, what assets?? Seems to me the PM's would be included.

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    1. PMs may be included but that is not what is important. What is important is to re establish faith in a "monetary" system which has the rule of law at its heart. We are still going in the opposite direction. YOU CANNOT HAVE substantive change in "fiat" or "gold backed fiat" or any backed fiat until you reestablish CONfidence in the "system" and NO ONE has confidence......we are only LOSING confidence because of the manipulation to "save the system"........hehehheheheheeh......relax this game has a way to go......watch the prices of essentials

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  12. Doc...


    victorthecleaner" is from the site .or this is where he frist showed up at.

    freind of a freind of another


    http://fofoa.blogspot.com/

    that site has always pushed the euro over the fed notes.
    thay go asfar as to say the BIS fight to the IMF

    the IMF as a USA base as to a BIS based system....Euro

    Bank for International Settlements (BIS)

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  13. http://www.spiegel.de/international/germany/triumph-in-defeat-ruling-on-esm-in-germany-not-as-simple-as-it-seems-a-855692.html

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  14. Paladin,

    I don't read the FOFOA site so, can't comment.

    The only time a remember seeing the name "victorthecleaner" was on Trader Dan's site.

    Sure, you could be right and that he is overly biased towards the European system and thus not trying to be truly objective

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  15. BTW while you are reading today i thot i might relate a story from last nite that might apply to you indirectly or directly. I mentioned that several people I know have sickened of their miner trade and I fully expected them to couph up their shares as soon as they neared a green trade. Last nite one of them asked me what I am doing and I told him and he said he was selling his miners as soon as they were green. I repeated that I was too after they had doubled or tripled from their bottoms and then maybe trade them. He repeated firmly he was out....hehehhehehehehehehe.......welllll...now you see the game

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  16. (smip)from .....freind of a freind of another

    I quickly read any book I could find in the small (but growing) financial crisis section at my local book store. I read "America's Bubble Economy", "Crash Proof" and "Financial Armageddon" in early 2008. Online I spent a lot of time reading the likes of Jim Sinclair, Peter Schiff, iTulip and anything that came up on forums like the old Gold Is Money forum. But I had yet to purchase my first gold coin.

    With such a rush of new ideas coming in over maybe a six month period, I found myself struggling to make sense of it all. The message I was receiving seemed complicated and disjointed. I knew there was something important in there, but for some reason it felt like an incomplete puzzle. Something was missing.

    Then one day someone posted an excerpt of ANOTHER (THOUGHTS!) on the GIM forum with a link to the archives. It was a strange quote, but something in it caught my attention like a beacon as bright as the sun, so I clicked on the link. And for the next two months I stopped reading everything else I'd been reading while I worked my way through maybe a thousand-pages-worth of USAGOLD archives. Then I went back and read it again.


    this is where he is wrong.....Gold is Money....GIM....

    that is not where it was posted at..

    you have to understand the old forum of Kitco and Gold is Money

    what you read today is not what they were

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  17. when kitc folded into what they are now..

    the old kitc ....Kitcofolk@Hardmoney


    or the site,,

    hardmoney.com



    Kitcofolk@Hardmoney
    This is a section set up for those who want to keep doing the Kitco style of posting with multiple threads. Post what you would have posted at the old Kitco forum....if you want to. Most of all....have fun!
    Moderator G

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  18. http://www.s8.createphpbb.com/hardmoney/index.php?mforum=hardmoney

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  19. and do not start with Andy Sutton


    and that is with the old Comet Gold site...

    yes that is the site Santa pushed

    Jim Sinclair

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  20. http://www.brotherjohnf.com/archives/72385

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  21. I thought the IMF was talking "a basket of currencies" three or four or maybe more years ago.

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  22. And Kli, if you believe gold will be over 20K and silver over $500, why would you sell the miners? Why wouldn't you continue to hold a core? That is (was) my plan.

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    1. number one........I am an inveterate gambler.....number two.....I am an inveterate gambler........on the other hand I will not sell all of my miners but I am just not sure they can hold the brokerage acct/money market system together. The rehypothecation of MF Global deeply wounded any trust I had in this. IF I get my play and I may.....I will remove some of my chips......I may not get the play......but if I do then next year some chips will go out of my retirement/brokerage accts........not all

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  23. From Phil's Stock World:

    He points out that with QE2, there was an initial run up in the markets due to anticipation. Then with the announcement of QE2, there was a quick pop in the markets, followed by a 5% decline which lasted about 2 weeks. Then the markets rose again.

    Now with QE3, there was also a run up due to anticipation and a POP with the announcement. So, if the QE2 pattern repeats, we could start seeing a selloff before running higher. This is also option expiration week.

    So, pullback might be coming.

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  24. Thanks Kli. Just needed some clarification. And agree Doc, opex pullback would make sense. I have learned not to trade opex week (unless I buy a low) due to unusually large shenanighans...I'm just not good enough.

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  25. back and fill day.....notice to all....so far there has been no good pullback to allow a nice entry for those not already in the trade......not an accident

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  26. 4,000 marines headed to the middle east.................

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  27. the FIB time line which has been spot on thus far alling for a low below 1396 tomorrow. This would be the 13th Fibbonacci period....Maybe this is no longer relevant....just saying.

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    1. I have noticed some things that indicate a strike may be imminent.....within hours

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  28. http://www.youtube.com/watch?v=PucJGg9_Ksk

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  29. Fleckenstein had this to say regarding gold: “I think there is going to be a real tendency on the part of everybody to fight the last battle. The correction of the last year in the metal (gold) was trying, and in the miners it was downright devastating.

    Thus, I think people are going to be wounded and sell too soon, trade out of them too quickly, be reticent to buy them. The pullbacks won’t be deep enough to make people feel good, and the market is going to be in the process of leaving behind a bunch of sold-out bulls.

    It seems to me when I read the papers, some other smart person or deployer of capital has a better understanding of what gold is, i.e. an alternative currency to the lunatic central bankers. Whether it’s Bill Gross, who now speaks rather warmly of gold, or someone at XYZ state pension fund, more and more people are understanding the need to own some.

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  30. been a lot of rotor chop lately. The big birds. Holy crap stuff is breaking down all over the world...We had a false flag on the embassy.. just as Chuck suggested. I think Chuck got picked up by a black helecopter for re-programming.

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    1. chuck took the blue pill and said foch it.....hehehhehe......you won't believe what I just say heading east at 50,000 feet up...hehehhehehehe

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    2. Kli, if you can see them flying, it is a training mission.

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    3. Maybe Ken....unless they are headed into a night zone a long way off....the A 10s have stepped up their practice runs for several weeks now. The big boys I have never seen in the daytime but hear them practicing at night.......probably practice but seeing them in broad daylight is unnerving

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    4. I used to get military customers visiting my business for recreation between missions. It always seemed odd to have warriors taking a break in my part of the world, when the battle was far away.

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  31. Listening to Mary Sean...Shits going mainstream. Gold would soar on a military strike...and not look back. Now is not the time to be cute trading in and out.

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  32. http://www.zerohedge.com/news/guest-post-are-you-seeing-what-im-seeing

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  33. That is a good article. Sums it up well. I see the same stuff. Costal San Diego hides problems pretty well. But, I have seen really high end homes in Del Mar especially for sale. 2nd home mainly I would guess. Moving vans show up on home that had no fore sale sign. An auction of a very expensive home nearby. A family member been living rent free for at least 2 years.. nobody bids at the auctions. Some property manager picked up 700 homes in San Diego county recently. Junior Seau's home he paid over 3 million just sold for 1.5 million right on the beach. Times are tough right now. A lot of nice cars on the road and restaurants are full however. Kinda deceiving.


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  34. Hey, I just got out of my govt. interview, they asked me how I came up with the name Pigmen and I said I combined swine with corruption :)

    Hey OXGN might run fast tomorrow AM, they got special protocal assessment with FDA just released on news, saw some weird action at end of the day...Get n, and get out...

    don't worry I told them nothing about you gold bugs outside of Sheeps has great veggies and cados, kli sometimes drinks beer when he is on his riding mower and Doc has been shagging Mary Ann on the side....

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  35. Anybody that reads Kli's blog should expect THE interview.

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    1. I did mention you surfed so they backed off you fast...I told them you were still lookin for bodie and bells beach...once they knew you were an agent on their side they wanted to paddle out with ya!

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    2. I do several independent contracting gigs right now.....the "newest" is a doozy......someday I may be able to talk about it but suffice to say .....my hypocrisy knows no bounds......as Doc Holiday said

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  36. MFChina

    http://www.zerohedge.com/news/how-chinas-rehypothecated-ghost-steel-just-vaporized-and-what-means-world-economy

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