We Are Now Facing A Catastrophic Situation…” If readers truly understand what is going on, they had better get positioned quickly.”
KingWorldNeews.com
December 11, 2015
John Embry: “I think the global economic, financial and political situation becomes more fraught with danger every passing day. The central banks are essentially impotent now in the face of an insoluble global debt and derivatives situation…
“The have now been reduced to running their mouths and providing whatever amount of liquidity is required to keep the whole edifice from imploding.
It would appear that the U.S. Fed has painted itself into a corner with its promise to raise rates. They have waited far too long. No the U.S. economy is giving ground noticeably, despite the government’s bogus economic statistics to the contrary.
U.S. Dollar Under Attack
This makes a rate increase clearly the wrong strategy at this point in time. However, perhaps their real concern is the U.S. dollar. The dollar is now overvalued from a trade perspective and it is also seriously over owned. A number of dollar holders, China and Russia just to name two, are making noise about eliminating the dollar from global trade transactions. This has been a massive source of demand for dollars.
At the same time, the petrodollar aspect is in increasing disarray as the major petroleum producing nations are no longer accumulating dollars, but rather being forced to redeem them in order to meet mounting deficits. It’s just a matter of time before the U.S. dollar is replaced as the world’s reserve currency, and the implications of that in terms of the living standards for North America is very disturbing to put it mildly.
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