V’S ALERT-Alert: Shutdown Charade: Dollar Survival 10/16/13
SteveQuayle.com
Oct 16, 2013
Let me start by first reminding all of you what I have said before, this is a dollar supremacy move. What I mean by that is this: The theatrics and social upheaval that is being played out right in front of our eyes is to ensure the survival of the dollar’s world reserve currency/petro dollar hegemony.
The recent headlines made by harassing veterans at war memorials and the “glitch” with EBT was not mere happenstance. It was carefully orchestrated with the sole intent of creating chaos in the markets. The EBT glitch that occurred over the weekend in 17 states was done on purpose to be another headline grabbing event with the sole design to create fear and confusion in the system.
During the course of the past fourteen days some very beneficial (to the banksters) events, have been occurring in the midst of all this social and political distractions. Now do not be distracted, the real default is NOT the 17th….It is between the 23rd and the 30th of October that is when we run out of money. So expect these banksters to even let the chaos run past the October 17th dead line.
Here are some of the contingencies being discussed right now and what you need to pay attention to:
1. The most toxic asset in the world the US Treasury notes ten year yields began to fall back into “favorable” rates. How can this be when you had the ten year peaking slightly over 3% making many holders of US debt extremely nervous. Thanks to this shutdown every aspect of the real estate industry has been frozen. I mean every aspect.
This is affecting everything from not only home sales but payments and commissions. Investors in real estate, shaken in the confidence of the housing market are now running to treasuries as a hedge! Viola lower bond rates!
You have to understand THE most critical thing that this government needs to do is keep the treasury payments going. That is it, every thing else is secondary. Some talking heads say that “it does not matter if you pay treasuries or not if the market collapses”. There is a way to address that.
First, you pay out you bond holders, then you have the FED hyper stimulate to keep the fickle market drunk and happy. This is what they are planning to do if the shutdown goes past the 17th. This action can and will cause the market to dip in conjunction with the fact many are shorting the market right now in preparation for the 17th due date.
The Banksters want a mini collapse to occur.” What?!”Is the reaction you might be saying, I will explain myself. We all know that the stock market is in a bubble and stocks are terribly over valued. There is a reason that they have allowed the DOW to hover in the 14,000-15,000 range for so long. They have allowed this because a mini crash is just what they need to drive the investors back to the only “safe haven”, toxic US Treasuries.
Why? Well the Treasury department will make sure that the bonds keep paying, otherwise the Ponzi scheme will end too quickly for the banksters to make a profit. You have to understand though a sky high stock market is good for the overall well being of the duped public, the real juice is the bond market that is twice the size of the stock market. It is the feeder for the Ponzi scheme therefore without a healthy bond market the whole scam falls to pieces.
Though the Banks like “The Morgue” (JP Morgan) are dumping short term treasuries. It is the holding of long term treasuries by sovereigns like China and Japan that is critical. Any panic on their end in dumping the long term will cause fund managers in the States to order a FIRE SALE on US bonds. A move that currently the banksters are NOT ready for.
2. The stock market has been the sacrificial lamb over the last forty years. All of the real big booms and busts have occurred within stocks. Thus giving the bond market it’s long running mantra of “safety” for the last 40-50 years.
There will be a mini-crash if an agreement is not reached by October 17th. This is planned for and COULD happen IF they choose to. A mini-crash will see the DOW dropping 34% to about 9,000 though it CAN vary anywhere from 9,000-12,000 points. Taking those calculations we are talking about trillions of dollars siphoned right out from investors! A windfall for the banksters. Anyone shorting the market would be wise to continue to do so.
Never before in the history of the market has it been so ripe for a crash. Never before has a market been so overvalued, lacking volume, with NO real VALUATIONS at all. It is the perfect environment to destroy the wealth of the remaining investors to the tune of trillions. They will call this mini-crash a “Correction”.
Expect the dollar to rally as panicked investors run to the only “safe” haven that these idiots know…Treasuries. Surprisingly there exists a strong possibility that Gold and Silver will either stay the same or drop a few rather than the big rally that many “gold bugs” are again prematurely calling.
Patience is a virtue, YOU must be willing to stomach some short term volatility for long term gain. The dollar system is unraveling, we are all audiences to this death that is being played out on a world stage. The only safe haven that will remain are Gold, Silver and a few foreign funds. That is it.
Anyone still holding a long term positions in any paper or equities in the US is going to lose everything along with their bank accounts. That being said let us watch the show with a steeled resolve knowing that we the “awake” investor will have the last word in the end.
