Joseph P Farrell – The Nefarium has been busy this week, and I’ll bet you didn’t even hear about this one on the lamestream corporate globaloneyist media:
SF Source Giza Death Star Community Feb. 2017
Greg Hunter – Economist John Williams has been forecasting a dollar selloff for a few years. It now looks like the manipulators are running out of options to keep propping up the U.S. dollar. Williams explains, “I think we are going to see massive dollar selling ahead. We have problems here not just with the economy, but you have the Fed faced with a circumstance where the U.S. banking system and the global banking system was threatened with collapse in the panic of 2008. The Fed and the Treasury decided they did not want the system to collapse. . . . All they did was buy time. Now, that time has basically run out. The economy has not turned around.”
One major indicator Williams looks at to see if the economy is getting better is the good old fashion help wanted ads that have now moved online. What does Williams see there? Williams says, “Beginning this year, it turned down and is negative year to year. It has just been plummeting, and it took a big hit in November. That is a leading indicator, and it shows that the economy is getting worse, and it is going to be worse in the near term.”
https://youtu.be/fZuHArvF1zU
So, as the economy turns down, the banks will come under pressure. Williams predicts, “Solvency stresses on the banks will mount. The Fed will come back as it needs to keep the banks afloat, and at the same time, it will also hit the funding needs of the U.S. Treasury. The weak economy means the tax revenues fall off, and then you will tend to see stimulus packages which tend to widen the deficit. Then, you will need to borrow more. . . .
Greg Hunter – Economist John Williams has long predicted the $16 trillion in U.S. dollar assets held outside of America will be sold in a panic. The time draws near for that scenario to unfold, and Williams explains, “When people start selling the dollar, or dollar denominated assets, you will see the value of the asset plunge. We have had a remarkable rally in the dollar since mid-2014, and it is up over 30%.
It is going to be going down by more than that, and we are going to be headed to new lows. We have the waffling of the Fed and the beginnings of the perception that the economy is in serious trouble, which generally would be negative for the dollar. We have started to see selling pressure on the dollar. It has been inching lower. It’s down year to year now. . . . The selling is going to intensify, not only with large central banks, but with corporations that will be beginning to dump their Treasury holdings. . . . Nobody wants to be the last one out the door when you have a panic like this. It’s not a panic yet, but the potential certainly is there.”
https://youtu.be/8OiNACcHW2A
Greg Hunter – Market cycle analyst Bo Polny says don’t bet on the U.S. dollar or the stock market to hold their value in 2016. Polny contends, “The dollar is going down with the stock market. It did in December of 2015. It did in August of 2015, and the dollar is falling right now again. As soon as the stock market gets started to the downside, the dollar is going to go with it again. So, the dollar is going to go down with the stock market with this next meltdown.
What’s going to end up happening when they hit the cycle low is what they did the last low (2009) and had QE 3. Guess what, that’s going to mean (in the next crash) QE 4. Then, that will mean they will be printing money like crazy.
https://youtu.be/3K-EscbOiy4
Let’s say there is a 20% drop on the dollar, even 10%. Everybody goes to sell the bonds. If the 10-year is only giving 1.7% yield, if the dollar drops 10%, they are losing 8%. If the dollar drops 20%, they are losing 18%. So, all these countries will be losing on billions or trillions of dollars of bonds, and then you will get a fire sale on bonds. Everyone will be dumping the bonds because they will be trying to get rid of them as fast as possible. That is what’s going to happen when they announce QE 4.”
Gary Christenson – The exchange rate between the Argentina Peso and the US dollar in January 1945 was 4.17 pesos to one dollar. Like the United States, Argentina created substantial price inflation – devaluation of their currency – in the 1950s – 1990s.
According to Wikipedia Argentina devalued their currency by a factor of 100 in 1970, by another 10,000 in 1983, by another 1,000 in 1985, and by another 10,000 in 1992.
Argentina Pesos per US Dollar (View Chart)
Price of Gold in Argentina Pesos – View Chart
Suppose your savings in Argentina pesos had been valued in gold. Take the peso to dollar exchange rate and multiply by the price of gold in dollars and we see the price of gold in 1945 pesos.
The point is this: Argentina devalued their currency from 1950 onward and more aggressively in the 1970s, 1980s and 1990s. The difference between Argentina and the United States (and Japan, the EU, the UK, Australia etc.) is mostly a matter of degree.