There is an important article which points out the purpose of the deep state to manipulate the India to ban the 1000 Rupee, and 500 Rupee cash is to suppress of demand of physical gold. Thanks for the writer of this article who pointed out this possible initiative of the action behind the India. India is a country who has a constant demand for physical gold. To ban the high-value paper cash will have a substantial impact on the demand for physical gold which can suppress the gold price. The spot price is following the COMEX gold transaction price. Unfortunately, 99% of transactions in COMEX are paper gold rather physical gold. The difference of price gold between Shanghai Golden exchange and US one is getting large from $10 to $20. Chinese do not agree on the price direction from US COMEX exchange because Chinese is now trading the physical GOLD contract rather than paper gold contract. The ratio between the physical GOLD and paper gold is over 250 in US market. Banks use the paper gold transactions to suppress the gold price. If the price breaks out the $1,500 range, it will go to $2,000, $5,000 and $50,000. The western banking system will blow out.
Therefore, to prevent the ignition of the fire in the insolvent banking system, a lot of paper future contracts are used to manipulate the price of gold and silver. Otherwise, the hyperinflation has already happened under the QE to infinity policy.
Bitcoin is a new market that a small proportion of people known what it is and how to invest on it. There is no future contract on bitcoin. The deep state cannot fully control the bitcoin’s price by the paper contract.
All physical GOLD, SILVER, and Bitcoin share the same characteristic of scarcity. They can store value under the QE to infinity and help people to escape the banking system – a safety heaven.
The deep state declared wars on bitcoin too. Coinbase dot com are required by the IRS to provide their records of previous three years. The bitlandngclub.com – a peer-to-peer loan platform was requested by the government to stop services. One bitcoin exchange in Hong Kong – bitfirst.com has cut their Hengsang bank (a sub-group of HSBC) account.
However, insolvency is insolvency. It is a mathematical certainty. The only uncertainty is when will this event happens. Whatever the deep state did, it is a matter of time.
All those tactics the deep state did are reflected that the day of the event is very near. Webbot ALTA report on December 2016 mentioned that there would have a big change after 12th Dec 2016. I checked the calendar-365.com. 13th Dec 2016 is the day of full moon.
Stankov believes that there some possible points we should take care.
1) China implements a massive one-off devaluation of the Yuan.
2) The $10 Trillion US Dollar carry trade blows up. (This is already happening now as the dollar is being repatriated after Trump’s victory. Note, George)
3) The $199 Trillion Bond Bubble implodes as debt deflation ripples through the financial system.
4) The $555 Trillion derivatives market based on interest rates ignites courtesy of a bond sell-off.
The final reminder for readers: keep your wealth out of the system.
By browsing Youtube channel of Clif High, Ron Paul, Jim Willie, Bill Holter, Jim Sinclair, and Bix Weir, all those great forecasters posted warnings to the economic collapse are coming very soon.
I try, to sum up, and reorganize their view and give a broad picture about what happen. The debt bubble cannot continue, and the debt price drops. Some long-term dated debt already falls for 20-40% world-wide. The reason behind the debt bubble boost is because of the lost of the confidence around the world about the 19.6 Trillion of US debt. The loss of trust on US dollar and US debt leads to other countries to sell out the US bond in the market. In the past, the US printing money and raise the debt ceiling, other countries did not sell out the US bond. It may be the balance between the fear of US military and the loss of confidence on USD. The two opposite forces reach a certain point of equilibrium. So, wars continued, and Money printing did not stop.
However, after Russian helped to finish the middle east chaos within a short period while the US cannot do so for a much longer period, this equilibrium point of the two opposite forces begins to shift. Money continues to print, but the confidence of the USD begins to lose rapidly. The countries around the world start to sell their US Debt in the market. The Federal Reserve Board print more debt to absorb the sold out debt to keep the price of the US bonds. Recently, the US bond price drops because this second equilibrium point begins to shift. The balance between demand and supply lost. The money printing machine cannot support the selling force of the debt which reflects the confidence of USD lost at a high rate. The confidence and the credit are the bases of everything because it is the foundation of fiat currencies. The printing of 1 dollar USD based on the 1 dollar of US debt plus its interest. As the confidence lost, we the interest of the US bond increases. The pressure of increasing bank saving and loan interests will increase. However, this is the third balance point because all the companies loan from the bank and all the mortgage of the real estate properties are tightened to the bank interest rates. The third balance point will break and will begin to shift and it implies the coming boast of the bubbles of the two markets. All the two markets are highly correlated to the markets all around the world. We may see the world markets prices drops whatever the real estate prices or the stock market prices. The currencies of third world countries like the India and Egypt currencies failures. The exchange rates of USD to other currencies rise is because the demand from the US debt sellers sold out the US bonds and get US dollars. Then, they will convert the USD to their within countries bonds and the coming SDR (Special Drawing Right) bond. Some countries will also buy bitcoin as their reserves. I predict that the rising of USD exchange rates will end finally because the reflect the vanish of the US dollar. The vanish of USD will appear by the rapid rise of the physical GOLD and SILVER price. The ban of the 1000 and 500 India Rube leads to the $2,800 per oz of GOLD (update info from Jim Sinclair, it reach $3600 per oz of physical gold in India now). This is the road to hyperinflation. GOLD (physical gold) price will go to infinity with respect to USD although gold (paper gold) in Comex gold market are still $1,200-1,300 per oz of gold. The credibility of COMEX market will drop to zero and the price of GOLD around the world rise to infinity. The value of USD in relate to GOLD will also drop to zero.
The US will be forced to publish a new USD which is backup by the GOLD in US treasury which is not the Federal Reserve Notes anymore. The new USD exchange rates to other currencies will drop 30% then 50% … may be 80-90% until the balance points reached.
Other fiat currencies like Hong Kong may lead to convert their USD reserves to other reliable assets otherwise their currencies will vanish with USD. If I am the decision maker the city I am living, I think SDR debt, RMB, GOLD and Bitcoin (in the later stage as it ‘s hard to convince the public) will be a safe heaven.
Fulford mentioned that, according to his sources, “Trump would remove TPP The Trump election means the Khazarian controlled TPP and TTIP trade deals are now dead.” and will join AIIB. (“Trump advisers are already telling China the US is considering joining the Chinese-initiated Asian Infrastructure Investment Bank, Chinese government sources say.”-Benjamen Fulford) If it is real, it is an important indication Trump will direct America to join the one belt one road economy rather than play the game of TPP. It is a possible hit on my prediction on 9th Nov 2016.
Bill Holter guess Judy Shelton may be one of the economic advisors of Trump. Judy Shelton is an economist to support the hard currency which is GOLD and SILVER. Here is another related article. Fulford mentioned, “The US is also negotiating a deal to trade Chinese military gold stashes for hard currency.”
It has confirmed that Donald Trump to be the next US president. As a simple man in the eastern world, I would like to discuss what impacts of Donald Trump to our surviving? Will anything change? Will anything remain the same? What do I hope for Trump?
Let start with the development of the eastern world. One belt one road policy will continue no matter who are the president of US. Will Trump take down the Transpacific Partnership Policy (TPP) agreement and join the one belt one road policy with China? It goes back to the simple question. Will Trump stop the money printing machine?
I bet what Trump cannot stop are the Economic Collapse, the Debt Collapse, the Boast of the Real Estate Bubble. If Hillary won, she would try every way to delay them by the support of money printing. Doing so, it has higher possibility to go to war. I guess a businessperson like Trump will sell off the negative cash-flow business rather than make it up. He may find what the eastern world wants from the US and try to make a deal to minimize the impacts of the three bubbles. On the other hand, he will make use of force from the boast of the three bubbles to start the reform of the US government, politics and economy.
I bet that US dollars will depreciate 50% on Chinese YUEN to recover a trade balance. Transpacific Partnership Policy (TPP) may change to a less aggressive approach to harmonize with the one belt one road policy of China.
Doing business can improve the employment of US by pushing the infrastructure works. Trump may have less burden on the Oil interest. A business deal between west and east powers about the oil interest in the middle east can be easier to make.
The market in the US may be more open to China companies. China may be able to buy some high-end technologies from the US. The conflict between EU and US may end.
A transform of the power structure within the US may happen soon. Bankers may face a lot of challenges. A substantial reform may be necessary for those US banks. Doing so, the balance sheets of US companies and banks may face the truths. The price of stocks may drop sharply. The price of gold, silver, and bitcoin will rise quickly.
For the eastern world, one belt one road policy in China will not change. Gold-backed currency direction remains the same. I hope the possible outcome is both countries can escape from war to make a business deal. The opportunity cost will be much less than war. I hope it gives a smooth transition to the US and the world.
My students have assignments to talk about the how future technology 10 years later impact the world. It makes me have a thought to project how technologies in 10 years (to 2025) will change our world. I have the following visions when I am standing on the timeline of 2025.
1. Federal Reserve Notes became the history because It ended five years before. Federal Reserve Board disappeared too.
2. Gold and Silver become the backup of world currency. Gold Trade Notes and Silver Trade Notes adopted in the international trades.
3. Bitcoin becomes the protocol for the inter-bank transaction clearing backbone.
4. World trade is mainly using the high-speed railways instead of ships on the oceans. The high-speed railways bridge the channel from China, Russia, Mid-east, Africa, Europe to the UK.
5. International companies move their automation to blockchain like ethereum. The smart contract is well-developed. It saves a lot of cost on lawyers, accountants, and managers.
6. Governments become less in size because the private economy is much profitable and less working time per day which attracts people to work in private sectors.
7. Smart contract connects most of the electronic payment gateways and robots. Free energy technologies are available. People can work a few hours per day to support their families.
8. Cars do not have human drivers because they controlled by a centralized Artificial Intelligence.
9. Nanotechnologies widely used in multi-industries. The duration of materials as much longer and less maintenance work is required.
10. 3D printing replaced big factories. If you want something in a home, just download the file and print it out.
11. Goods are very cheap. So, the difference in living standards between rich and poor are not so much.
12. War is not necessary because its opportunity costs are far too high comparing do trade with others.
13. Young people prefer not to go to Universities and develop their own business because universities graduates earn much less.
14. Low-cost curing is available which cost much less to the health of humanity. A medical doctor is not the goal for youngsters.
15. Air pollution improved much because all cars are electric.
99% of the world’s currencies are fiat currencies. All those fiat currencies are the derivative of US dollar (to be accurate the Federal Reserve Note (FRN)). Taking my city, Hong Kong, as an example, there are three banks in Hong Kong (HSBC, Standard Charter and Bank of China) can print Hong Kong Dollar. They need to buy one US dollar (FRN) to print around HKD 7.75 to 7.8. In the financial tsunami of 2008, the quantitative easing in USD pumped an enormous amount of money supply to FRN.
At that time, the Hong Kong SAR government begin to plan many infrastructural projects to the public. In 2008, the unemployment rate of this city suddenly increased a lot. One possible reason for the pushing construction project may be to improve the economy, and this can also improve the unemployment rate.
In the construction industry, the contractors worried that there are not enough projects to run their business. When the contractors bid the government projects, they may use a lower profit margin bidding strategy to win the bid. Unfortunately, after they won the bid and two years later, they found that the construction cost increase significantly (over 50% to 100% range) within a very short time frame. This sudden increase in construction cost was unexpected even for professionals who may have 30 years experience in the industry. The hidden reason behind may be the quantitative easing of the USD (FRN). When the money supply of USD increases, the linked currency like HKD will also increase which can keep the exchange rate constant (1:7.8). When there is significant much more HKD flow into the market, the purchasing power of each dollar of HKD is diluted. That is why fiat currency cannot store the value of your hardworking.
Go back to the question why we cannot work just 4 hours per day to support our living. The inflation becomes a significant issue. Many people bought real estate property to store their hardworking value. To invest in property, we need to take into account some extra more risk. Firstly, many people buy properties by mortgage from banks. To have a mortgage, you just like to trading stocks share with margin. When the price of the stock drops instead of increase, it firstly losses the deposit and then it may have a margin call. To overinvest in the property market with a mortgage, it involves the monthly repayment of the loan. Many people use their monthly earning to support the monthly repayment. Some investors will rent out the flat and use the rent to repay the monthly repayment. However, when the market enters into the downward cycle, it will not be in a single market, single industry or one location. Our world interconnects to each other. No single industry are insulated. No single market is alone. No single location is separated. That means when the price of properties drop, it will bring down the stock prices, the rental value of fiat and your monthly salaries.
In my point of view, to buy something scare in the world without loan can play safely in the long term and protect our wealth. The answer is Bitcoin, physical silver, and physical gold. Many people criticized that those investments cannot generate passive income. If you buy stocks, it can produce the dividends which are passive income. My answer is “Oh Sorry! In the money printing world, the first thing first is to protect the purchasing power of our wealth instead of the digital numbers of fiat currency. Those digital numbers are just the illusion.
If you want to have a passive income on your investment, you may consider investing on Wealthy Affiliate like me. Try to spend a little on Google AdWord, build up your blog (website), publish it to the world. It will be a property which can generate a passive income step by step. It will be a property in near future.