There was yet another “grave defeat” for fiscal/monetary Sanity in the Western world. Germany’s Constitutional Court has rubber-stamped the suicidal plan to engage in “unlimited bond-buying” in the Euro-zone (i.e. monetizing debt) in order to temporarily prevent all European bond markets from cascading defaults.
The cost of this monetary insanity (and reckless betrayal of the European people) is nothing less than a commitment to hyperinflation. None of Europe’s Deadbeat Debtors has any savings (including Germany itself). Thus every euro spent on these extravagant bond-purchases will be printed out of thin air.
This “unlimited bond-buying” is apparently also going to extend to soaking-up more of the financial feces which continues to accumulate on the balance sheets of the ultra-fraudulent Big Banks. Thus what we have is a massive increase in the money supply, with 0% going toward any productive economic use, and 100% going toward doing nothing but soaking-up worthless banker-paper.
With zero economic benefit from all of this massive money-printing which is on the way; this is pure currency-dilution – and thus ultra-inflationary. As a matter of the simplest arithmetic/logic; with Europe’s governments committed to “unlimited” quantities of an ultra-inflationary policy, the only possible result is hyperinflation.
What makes this such a devastating defeat for Sanity is that Germany is the one nation in Europe which still possesses a cultural memory of the economic phenomenon known as hyperinflation. This is a result of the German hyperinflation experienced by the Weimar Republic in the 1920’s. Despite this episode of history being nearly a century old, the economic carnage and suffering which results from such folly has still been burned into the German psyche, through parents warning their children of the perils of reckless money-printing.
As part of this “cultural memory”; Germans alone among all the peoples of Europe still have a strong attachment/affinity for silver. This is because silver is the People’s Money. When the German’s banker-paper turned into toilet paper in the 1920’s; those who had the foresight to swap their banker-paper for silver before that occurred survived. Those who didn’t had to rely upon charity…or they simply didn’t survive.
To see both Germany’s highest court and its Traitor Government turn its back on its own people in this manner is especially disheartening to those who thought mass economic suicide could still be averted. With Europe’s Traitor Governments colluding to commit this mass-suicide solely to temporarily prop-up the paper empires of the Bank Oligarchs, there is now only one way for the individual peoples of Europe to save themselves – from their own governments. First the people must elect an honest government which puts People before Parasites. Then that government must select “the Iceland option”: throw the bankers out, and leave the economic tyranny of the EU.
Across the Atlantic, the North American propaganda machine has been steadily softening us up to accept the same commitment to suicide. With the fraudulent Federal Reserve in the midst of yet another “policy meeting”; we’re now told to expect more “QE” when they rush for the nearest microphones tomorrow – with the distinct probability of “a new open-ended plan” (i.e. unlimited buying of bonds and other banker feces).
Regular readers know that I have been accusing the Federal Reserve (and U.S. government) of already secretly engaging in this policy for the past several years, through counterfeiting U.S. currency to make clandestine bond purchases – in order prop-up prices (and push down interest rates) on U.S. Treasuries. This saves the U.S. government $100’s of billions per year in interest rate payments alone, not to mention the “multiplier effect” of sucking those $100’s of billions out of (relatively) productive economic uses.
The Euro-zone plan provides more implicit validation for my assertion, since these governments are explicitly engaging in this monetary suicide for the sole (stated) purpose of driving down interest rates on their own debts. It is the only brute-force manner in which interest rates on debt can be maintained at such obviously artificial/fraudulent levels.
Manipulating interest rates alone cannot prop-up these bond markets, because charging insane prices for worthless bonds (and their massively negative real interest rates) only drives away buyers. Thus these fraudulent governments (and central banks) must also print-up the necessary quantities of paper to “buy” their own bonds – since they have totally destroyed their own bond markets.
Europe’s governments had previously resisted the impulse to engage in this economic suicide, and the result is that soaring interest rates on Euro-zone debt have already bankrupted Greece, and brought Spain, the UK, Italy, Portugal, and Ireland to the brink of bankruptcy. The U.S. has been doing this secretly, and thus the only reason why we have seen “the highest prices in history” for U.S. debt is because the U.S. is (secretly) “selling” these bonds to itself.
Now both Europe and the U.S. are going to openly engage in monetary suicide. As previously noted, this can do nothing more than temporarily prop-up these financial Ponzi-schemes. Thus even all the Big Banks currently being protected in their taxpayer-funded financial cocoons will ultimately fail. All of this economic self-destruction is being perpetrated so that individual bankers can personally loot as much as possible from our governments (and their own banks) – before total collapse occurs.
Previously, we only had “competitive devaluation” – a (relatively) slow commitment to drive all of our paper currencies to zero. Even that amount of monetary insanity took us to the present point: a 10% monthly increase in global food prices in July (equal to an annual inflation rate of 120%). Now these same governments have openly committed themselves to the fast-track to hyperinflation.
There is only one way in which people can personally protect themselves from their Traitor Governments and Parasite Banks: swapping their soon-to-be-worthless banker paper for silver and gold – hard assets which cannot be destroyed through the fraud of bankers or the betrayal of politicians.
Those who listened to this message from the first precious metals commentators to deliver it (years before I wandered onto the scene) could have swapped their banker paper at a rate of $4/oz for silver, and $300/oz for gold. Today you can do so at a rate of $34/oz for silver, and $1700+/oz for gold. However, with U.S. and European governments now committed to putting several zeros behind those numbers; it won’t be long until current prices seem equally cheap.
Being based in Canada, there are obviously many readers wondering what this means for Canada? We have already received absolute confirmation of the intentions of Bank of Canada Governor (and Goldman Sachs alumnus) Mark Carney. Canada was the first Western government to openly sabotage its own currency, when Carney made (at that time) an unprecedented pledge to leave interest rates at near-zero for 18 months no matter what happened.
Never before had the leader of any central bank of any major government invited the ‘shorts’ in global currency markets to attack that nation’s currency – with a promise never to intervene. The result of Carney’s monetary sabotage was that Canada’s currency lost the large trading differential it had earned against the (worthless) U.S. dollar.
Carney’ reward for being a good foot-soldier in the Banking Cabal was to be promoted, to become head of the (Western) Financial Stability Board. This is yet more Orwellian irony from a banker hit-man, dedicated to destroying his own nation’s currency. Clearly, we know that somehow, some way, Mark Carney will make sure that the value of the Loonie collapses just as fast as the dollar and the euro.
The same applies to the pound, yen, and other ancillary forms of banker paper. As I explained in a previous commentary, we are dealing with the “lobster in the pot” strategy here. Destroy all the forms of banker-paper at a relatively equal rate, and then none of the “lobsters” (i.e. us) will notice what is being done…until it’s too late.
Consider this the bankers’ Last Warning.