The “news” this week is massive money-printing on both sides of the Atlantic. However, it goes beyond that. In Europe, we had Germany’s Constitutional Court rubber-stamping the European Central Bank commitment to “unlimited” bond-buying. On this side of the Atlantic, yesterday we had the Federal Reserve committing itself to “open-ended” buying of Wall Street’s worst financial feces (mortgage-backed securities) – to the tune of $500 billion per year.
As I explained to readers earlier this week, this is plainly and simply the final, inevitable commitment to hyperinflation which myself and many other commentators have been warning people about – which started with Shadowstats founder John Williams, back in 2003. In an interview this week, Mr. Williams flatly stated that he thought that hyperinflation in the U.S. could be delayed no later than the end of 2014.
He also offered a convenient definition of “hyperinflation” – convenient because it is a somewhat nebulous term, and has been discussed/defined with various parameters by different commentators. John Williams’ definition is refreshingly simple: it’s when the largest commonly circulated currency unit (in the U.S. a $100 bill) is worth more as “toilet paper” than currency. And by the end of 2014; that’s what he has predicted for the U.S.
Amazingly, with this extreme future now a virtual certainty thanks to more of the banksters’ monetary depravity; precious metals prices can only be regarded as extremely muted. Prices had actually been down earlier in the week (following the strong gains of the past two weeks). However, the Banking Cabal couldn’t contain the market any longer once the Fed’s announcement of more money-printing came out yesterday.
The price of gold broke above $1770/oz (US) yesterday, and is on course to add a couple more dollars to that price today. Silver exploded more than 4% higher yesterday, erasing all of the losses this week, but today the picture is more mixed. After touching $35/oz in early trading it was pushed down as low as $34.20 – before steadily gaining back most of that lost ground. As I’m writing this, silver is flat on the day, and set to close the week above $34.60/oz (US).
It should be noted that this is the 3rd consecutive week we have seen an identical pattern in the gold and silver markets: weakness in the early part of the week; strong buying and higher prices by the end of the week. However, this could be nothing more than temporary tactics – due to the fact that the Banking Cabal had major propaganda announcements to hype at the end of each week.
To the best of my knowledge there are no manufactured “events” slated for next week, and so we should get a much clearer indication of how the gold and silver markets will trade in the weeks/months ahead. Fundamentals are at their bullish “maximum” – meaning the threat of the total destruction of our economies has never been stronger either.
This new money-printing serves absolutely no fundamental economic purpose, it is purely/totally inflationary. In Europe the money-printing is to temporarily delay default on $trillions in worthless bonds. In the U.S. it is just another effort to prop-up the Wall Street fraud-factories. As I wrote in another recent post, those banksters have now committed themselves to an open shell-game in order to create an illusion of solvency with the Western Big Banks.
Sophisticated buyers (“the Big Buyers”) now clearly understand this. Demand for gold and silver can only continue to intensify. Meanwhile, with all the technical signals for the market equally bullish; we can expect more of the Idiot Traders (i.e. the gamblers) to start piling-in on the long side. In turn, this should lead to increasing volatility going forward, as the bullion banks know (from experience) that these lightweights can be easily flushed out of their positions with any concerted “attack” on the market.
For better/worse; the excitement is just beginning…