Archive - Nov 2014 - Blog entry

Chris Martenson is an economic researcher and futurist, specializing in energy and resource depletion, and co-founder of PeakProsperity.com. As one of the early econobloggers who forecasted the housing market collapse and stock market correction years in advance, Chris rose to prominence with the launch of his seminal video seminar, The Crash Course, that interconnected forces in the economy, energy, and the environment that are shaping the future, one that will be defined by increasing challenges as we have known it. Chris’s insights are in high demand by the media as well as academic, civic, and private organizations around the world, including institutions such as the U.N., the U.K. House of Commons, and the U.S. State Legislatures. So with that we’d like to welcome Mr. Chris

In one picture...

Currency wars are set to warm up again, after Japan's radical decision to further debase its currency through an intensification of already significant monetary easing. There was a palpable coldness from China's Premier Xi Jinping as he greeted Japan's President Abe at the APEC summit in Beijing.

Globally the US Dollar carry trade is believed to be north of $3 trillion (larger than the economy of France). What happens when it begins to unwind?

Meet the next piece of work...

Manipulation of markets can work effectively in the short term. However, in the long term prices will be dictated by the global supply and the global demand of 7 billion people, many in Asia who believe in gold as a store of wealth. Not to mention, sovereign central banks including the People’s Bank of China and the Russian central bank - who also believe in gold as an important monetary asset.  

What's Really Happening?

In 2013; a chain of events led to what was (at the time) the greatest stampede into gold in human history. It began with the Cyprus Steal, the West’s first “bail-in”. This led to the realization (by the Smart Money) that no paper assets were safe any longer, within any Western financial institution or market.

Just as "orange is the new black", I think that "oil producers are the new gold miners." It doesn't sound quite as good, but here's my point:

The Central Bankers bet the financial system that their theories were correct. They were wrong. Horribly wrong. And we will all pay the consequences for it. 

Which country will be next?

Swiss referendum is unlikely to be enacted into law, and if it is, there are several measures the SNB can do to limit its impact.  Expect the SNB to defend the euro floor/franc cap. 

Get to work!

Our technological culture seems to place us firmly in conflict with time itself. The rush to cram as much as possible into as small a slice of time as we can seems to be the holy grail these days, and the pace is accelerating exponentially.

Though, if history is anything to go by, it offers a potential for outsized returns