The US is on the Brink of Massive Inflation!

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“Japan is now in a recession with two straight quarters of negative GDP growth.  And the Japanese stock market tanked,” says John Rubino speaking with the Financial Survival Network.
 
China’s credit bubble is bursting, as they’ve borrowed so much money in the last 5 years, and their companies are going bust.

Euro GDP is only growing by 0.6% growth. France growing slightly but missing it’s deficit targets. France is going to have to start inflating aggressively, after 5 years expansionist monetary policy, The whole Euro zone is going to have to massively increase QE.” Europe looks so bad the  ECB announced it would pump more money into the euro bloc.

QE did not work, yet they are all going to ramp it up, following the footsteps of Japans lead.

With the economies of Japan, Russia and Brazil in a recession and Europe on the brink, many believe the U.S. stock market will be brought back down to earth. Global Economic Analysis says ”25% of the world is basically flatlining or in a recession…We might be the cleanest shirt in dirty laundry, but it’s going to get soiled.” 

Rubino continues, “In gold prices the market is completely manipulated. The last 2 Fridays the gold prices spiked. This means that volatility is picking up in the gold market. 

 

The price has already been crushed and the fundamentals are just phenomenal.

Japan just ramped up it’s money printing, which if translated the amount into the US economy, would equal about 3 Trillion dollars a year. And you have Europe with no choice but increasing debt monetization (money printing). These are phenomenally good circumstances for gold . And then the Swiss referendum at the end of the month, where they are going to be required to buy gold and never sell it.

They will find out that the gold has been lent out, and that it’s not there. So there will be this huge scramble to get enough gold to satisfy the demands of the Swiss National Bank should the referendum pass. 

Then there’s the paper market for gold. When the Japanese go out to lunch, they dump millions of dollars of paper futures. 

I think there’s a pretty good chance that finally, the good guys are going to win. Look at the miners, they are just in such dire shape. A 25% drop in silver mine output is likely, because so many silver miners are going to have to close down, as their mining cost is $22 per ounce. Silver, in most of the production facilities, there are very few pure silver mines. For the ones that are out there, like Pan American, and First Majestic, that are really efficiently run – they can’t make money at this price.

And then the juniors that would have been coming online will not be able to start up now, as they can’t operate profitably. Production will not be what it would have been. That’s a positive for silver production. Solar panels use silver and the demand for them is really way up, solar energy is ramping up all over the world. That is a new source of demand which potentially could get up to 20% of global mining output. That’s a good thing for prices. 

It sure does look like a $50 metal in the not to distant future. At some point, we are going to look back at this price and kick yourself. 

Collectibles that the super wealthy buying, are just going nuts. Like $80 million for an Andy Warhol Cambpell Soup can painting.” See this article I wrote about the rich paying exorbitant prices for art and collectibles. 

“Many parts of the global economy are dropping back to recession, yet the very rich are doing very well. The latest Christie’s auction house just set a record of $952 million for a set of paintings it just sold. The audience was so stunned , they didn’t even applaud, as they couldn’t believe the price that was just paid for the items.

The richest people no longer want to hold financial assets. They are buying art, penthouse apartments, farmland and real assets and are paying just any price. 

What this means is that the richest, most sophisticated people in the world, no longer want to hold financial assets. They don’t believe they are attractive anymore.
 

This is what happens and we expect to see this increase over time. The dollar, the Euro and the Yen are going to lose value over time, so why hold them? That is our future. 

Convert them into real things. Precious metals and income producing real estate. Keynesians think the more you borrow and the more you spend, the better it is, but it is not good in the long run. The rich people know to get out of that currency as fast as you can. 

The fact is that bubble markets tend to go on longer than the rational person thinks, so timing is impossible to call with bubbles.” In a depression, which is where we’re headed,…