Hat Trick Letter (Archive Edition) – Part 2: The New Normal of Global QE
Hat Trick Letter (Archive Edition) – Part 2: The New Normal of Global QE
Originally published: 2 December 2011
Original author: Dr. Jim Willie ("The Golden Jackass")
Navigation: Part 1 | Part 2 | Part 3 | Part 4
Editor's Note
This Archive Edition preserves the original article while improving readability through editorial headings, paragraph spacing and navigation. The author's views and arguments have been preserved.
The New Normal of Global QE
"THE ONLY THING THAT CHANGED SINCE JUNE 2011 WAS THE USFED DOES NOT TALK ABOUT THEIR VAST MONEY PRINTING AND DEBT MONETIZATION. THE MASSES WEAR ROSE COLORED GLASSES."
The big Euro banks are selling boatloads of bonds. But on the other side of the table, the Euro Central Bank is buying only truckloads. The net is still an exodus, thus rising bond yields.
Wondering why sovereign bond yields in Spain, Italy, and even France are still rising if the EuroCB has entered the arena with both hands buying the bonds, however reluctantly.
Remember the initial pronouncements by the new EuroCB head Draghi, that he did not want to buy government bonds. Their purchase volume is inadequate to meet the task.
The European Government Bond market is in freefall. The only way to stop it is vast recapitalization of the entire US, London and European banking system at a cost of $4 to $5 trillion.
The Gold and Silver Outlook
When the Powerz and Technocrat generals flip the switch and make the decisions, Gold will then go to $3000 and beyond.
Similar for silver, going to $80 and beyond.
The enormous required volume makes necessity a gradual approach, moving the amount up in steps.
"Gold will then go to $3000 and beyond. Similar for silver, going to $80 and beyond."
The United States Versus Europe
The Americans falsely believe they are better off.
Within the United States, tremendous multi-trillions in mortgage bonds must be financed alongside multi-trillions in state and municipal bonds alongside multi-trillions in US Treasury Bonds, against a backdrop of war costs that have entered into the multi-trillions.
The United States is many times worse off than Europe, but its condition is concealed by a managed printing press operating in the shadows.
The alternatives are systemic failure or hyper monetary inflation, centred in the United States and extended into Europe.
Continue Reading: Hat Trick Letter (Archive Edition) – Part 3: The Unintended Consequences →
- Part 1 – The Money Printing Never Stopped
- Part 2 – The New Normal of Global QE (Current)
- Part 3 – The Unintended Consequences
- Part 4 – The Grand Divergence
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