You Can See it, Feel It, Sense It: Catastrophic Implosion Inevitable – AGXIIK
SilverDoctors.com
June 25, 2016
The damage in the interim is catastrophic. It will produce an IMPLOSION EXPLOSION event. Like a supernova that results when a star runs out of fuel and collapses in on itself, this near infinite quantity of paper printed is does not act as fuel. It does nothing. It’s a drain and drag on the system. And its Implosion is inevitable.
You can see it, feel it, sense it…
Submitted by AGXIIK:
We’ve agonized endlessly as to why gold is down 45% from its April 2011 high and silver’s dropped 70% plus from its high. We know these metal prices are rigged, yet despite constant rhetoric about supply issues, the consumption of silver at its total annual production and gold being bought at a rate 100% greater than it’s annual production, the prices have fallen continually.
Why is that?
We have little inflation in commodities. Yes, inflation hits where it hurts in food, rent and medical care, but the essential inflation sought by central banks is not there. They’re desperate for inflation and sufficiently frightened of this deflationary calamity to dive into Negative Interest Rates (NIRP) after nearly a decade of Zero Interest Rates (ZIRP) ZIRP is so last year. NIRP is the new paradigm that’s afflicted nearly half of all bonds and bank accounts. NIRP is the inevitable conclusion of a system that’s gone mad.
It’s exactly the wrong medicine, like bleeding a sick man, thinking that’s the cure, as if overproduction of FIAT will eventually produce the desired inflation The damage in the interim is catastrophic. It will produce an IMPLOSION EXPLOSION. event. Like a supernova that results when a star runs out of fuel and collapses in on itself, this near infinite quantity of paper printed is does not act as fuel. It does nothing. It’s a drain and drag on the system. And its Implosion is inevitable.
QE, FIAT printing and debt has added at least $60 trillion to the world’s monetary supply. It might be more, possibly even $80 trillion, but the over increase is at least 30-50% greater today than the total supply of M; all money in the world in 2009. This deluge of paper should have boosted inflation into double digits, even triple digits. But it has not yet arrived. M is trapped. It’s held in statis in banks doing nothing.
Economies in crisis such as Venezuela, Argentine and Brazil are exceptions, experiencing the woes of hyperinflation, running in some cases at an 800% annual rate and rising. The Venezuelan central bank flew in 27 747 cargo jets full of new currency just a few weeks ago. But their inflation is not as a result of inflated commodity prices. The commodities that boosted their economies are now down 50-75%. Their inflation is as a result of excess debt, QE, lack of consumer products and inability to pay their bills along with attacks by the central banks of the largest economies.
What I’m writing might seem a bit of a stretch, maybe out on a limb in its context, but there is something gnawing at me that tells me why we are not seeing hyperinflation and why we will see an explosion in the price of the least loved of all commodities; gold and silver. (except for those who almost instinctively know we are facing crises after crises in our world and love the precious metals)
There’s been bit of talk about the velocity of money and the fact that it’s very low, somewhere around 1. Actually that figure is probably high and perhaps even meaningless because all money today is paper, DIGIFIAT, electronic currency that’s assumed a life of its own to a certain degree. There is so much of it. M is almost organic in nature. If not alive, it does have its own gravitational fields. It’s also in a very unhealthy state as we will see.
It moves around almost of its own accord. It’s essentially uncontrollable and unobservable as to its effect on inflation. It should have an effect on prices but it doesn’t at this time. It has no perceptible effect on inflation because it is almost without any movement except in the electronic monetary flasks that contain it. It’s sleeping in the vaults of bankers, trapped in NIRP bonds; in illiquid securities that cannot be sold or marked to market for fear of further devaluation. Monetary velocity is like FIAT trapped in amber.
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