Gold: Welcome To The Weimar Death Spiral…” I want to re-emphasize the importance of getting your money OUT of fiat currency and OUT of U.S. banks”
By: Dave Kranzler
GoldSeek.com
Wednesday, 8 June 2016
For starters, I want to re-emphasize the importance of getting your money OUT of fiat currency and OUT of U.S. banks. If you read this article and do not come to that conclusion, you will end up getting what you deserve: Commerzbank To Hoard Euros The Fed is devaluing the dollar every day. My solution for day to day cash management is Bitgold. I am not an “ambassador” or “affiliate.” But I am convinced that it’s the best viable means of managing money that requires “fungability” – i.e. that you need for daily expenses. You can sign-up for Bitgold here: Gold-Backed “Checking” Account. Bitgold operates OUTSIDE of the global Central Banking system.
Second, a colleague of mine told me he knows why the stock market is up today – because it’s open. That’s not entirely a joke. But what is a joke is the underlying cause: rampant global money printing disguised as “quantitative easing – or Central Bank asset monetization.”
Goodbye Keynes, hello Havenstein. The Fed and the ECB have resorted to Weimar-style money printing. The lack of transparency makes it easy for them to impose various forms of disguise to hide the outright money printing. Today the ECB rolled out its program to buy corporate bonds. It prints money and buys the bonds of U.S. and European corporations. The disguised name is “quantitative easing.”
It’s a meaningless description. It’s printing money and giving that money to banks and corporations to spend. It may not increase the official tabulation of the money supply, but effectively it balloons the supply of money. After all, money is spending or lending power. That money sitting on bank balance sheets translates into “high powered” reserve credit. It multiplies the spending power by 10. That’s the real supply of “money” in the system.
The precious metals market understands this truth. The move in gold is “quantitative price appreciation.” It’s gold’s response to “quantitative easing.” For the last five years, the Fed and the ECB – and with help from China, I suspect – has been able to further disguise its money printing by using paper derivative forms of gold – OTC derivatives, Comex futures, LBMA forwards, Central Bank lease agreements and hypothecation – to hold down gold’s quantitative price appreciation.
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