KWN Special - Martin Armstrong: Who Will Collapse First?
Martin Armstrong, Founder and Former Head of Princeton Economics International, Ltd.. Armstrong’s firm rose to be perhaps the largest multinational corporate advisor in the world and by the 1997 Asian Currency Crisis, Armstrong was invited by China and he flew to Beijing to advise the Central Bank. Many people don’t realize that Congress went to Martin Armstrong for help as the fires were burning during the financial collapse of 2008.
When asked what Congress wanted, Armstrong replied, “One question (From Congress) was, ‘How could everything collapse overnight like that?’ The difference was very simple, the mortgage-backed securities that they were using, they rated them AAA. That’s why S&P and so on are being investigated because once they were rated AAA, then you could post them in the repurchase agreement market, the repo market.
In the repo market you post securities, the next day you get cash for them and the next day you have to pay back the cash. So it’s a 24 hour market. Now if you have these time bombs that are rated AAA, and it has to be AAA paper to go into the repo market, and it blows up, you have 24 hours to come up with the cash.
Whereas, if they were not AAA, if they were even AA and they blew up, then they are just sitting on a company’s books. That has to be reported on a quarterly basis and they have the time to work it out, take charge offs, whatever. Lehman would have survived. Most of the other companies would have survived....
“This is what a lot of people didn’t understand. That is why a lot of people (Congressmen) ended up coming to me because I understand these markets, how they were created, I was there when they were created.”
When asked which currency will collapse first, Armstrong responded, “Americans tend to focus really just on the United States. The United States is, among the Western countries, it’s actually in the best shape. Europe is going to largely collapse first. What you have to understand with the dollar is that the dollar is the reserve currency. What that means is that about 40% of the interest that we pay goes overseas.
All of the foreign central banks hold US government bonds, not actually physical dollars, but they actually hold bonds as a reserve. So the reserve currency is not something that is going to crack first. You have to understand that because if the dollar were to be the first thing to collapse, the rest of the world has to go with it.
In Europe, to put it into an American context, imagine if every state had the right to print dollars, it would be total chaos. That’s what Europe did (by allowing individual country bonds to be issued) and that’s why I warned them that they were going to collapse, but politicians just didn’t want to hear it ten years ago. They were more interested in creating a euro than they were in creating a (long-term functional) system.
...This is also why the banking system over there is in trouble. They (European leaders) are going to try to hang on as long as they can.”
I went to UOB at Jalan Raja Laut around lunch time today to do my regular Ounce Cost Averaging on Gold. I usually buy gold bullion at beginning of the month. I took my queue ticket and patiently waited for my turn.
When my turn was up, I walked to the counter and said to the banker, “I would like to buy gold bullion coin”.
I got a shocking reply.
“Sorry, all gold bullion coins are out of stock.”
I was like, “What?” “Yes. Out of stock.”
“When is the next batch of stock coming in?”
“No idea. But we have ordered since a month back.”
Currency Wars: European Debt Crisis and the Next Phase of Global Finance
Here is a simple description of what is driving the markets. It is basically a counter party risk situation involving the biggest banks in the Western financial system.
I think the endgame is well underway, and the outcome is not saving the public, but managing the transition to a new system, while hopefully keeping the same ruling class. That will not be disclosed while 'the players' jockey for advantage and position, 'turf' and the privilege of rents, if you will, well ahead of the crowd.
The European Central Bank and the Federal Reserve will bail out the banks again, and seek an 'orderly resolution' to the Greek situation. This will involve either an overt or de facto devaluation of the Euro and the Dollar. Make no mistake, the Dollar will not be allowed to appreciate dramatically for the same reasons that all the other currencies wish to avoid such an outcome.
The Dollar and the Euro are the relativistic value expressions of the financial system. They have no substance otherwise, no permanence except for the will of keepers of the system. The DXY is only an expression of the Euro and Yen and a few other fiat currencies. They are created at will.
And so in advance of the coming devaluation, gold is hit hard in order to maintain the confidence in the fiat system, with the clumsy propaganda pieces in the compliant mainstream media, and so that when bullion rises in reaction to the currency devaluations it will be easier to control, as Paul Volcker had suggested.
"That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake."
Paul Volcker, Nikkei Weekly 2004 (former Federal Reserve Chairman)
And this is why some European countries are already taking action to throttle demand, and to prevent a 'run on the central bank.'
Asia sees what is happening and is already trying to prepare for the next phase in the currency wars. The western nations leave the ordinary person relatively defenseless, almost as if by design.
Post Last Edit by pengecatbintang at 6-10-2011 16:47
sambung lagi... (still teori n pendapat aku ler)...
matlamat jangka pendek Illuminati la ni utk ...
depa nak collapsekan USD ikut turutan berikut...
negara last di Middle East yg akan kena crisis adalah Arab Saudi... bila Arab Saudi jatuh...
Euro akan jatuh... peh tu... within days or weeks not month... USD abis
pengecatbintang Post at 25-9-2011 21:07
tulisan berwarna kat atas adalah pendapat aku jer... bukan ramalan...
Pro-democracy protests which swept the Arab world earlier in the year have erupted in eastern Saudi Arabia over the past three days, with police opening fire with live rounds and many people injured, opposition activists say.
Saudi Arabia last night confirmed there had been fighting in the region and that 11 security personnel and three civilians had been injured in al-Qatif, a large Shia city on the coast of Saudi Arabia's oil-rich Eastern Province. The opposition say that 24 men and three women were wounded on Monday night and taken to al-Qatif hospital.
The Independent has been given exclusive details of how the protests developed by local activists. They say unrest began on Sunday in al-Awamiyah, a Shia town of about 25,000 people, when Saudi security forces arrested a 60-year-old man to force his son – an activist – to give himself up.
Ahmad Al-Rayah, a spokesman for the Society for Development and Change, which is based in the area, said that most of the civilians hit were wounded in heavy firing by the security forces after 8pm on Monday. "A crowd was throwing stones at a police station and when a local human rights activist named Fadel al-Mansaf went into the station to talk to them and was arrested," he said.
Mr Rayah added that "there have been protests for democracy and civil rights since February, but in the past the police fired into the air. This is the first time they have fired live rounds directly into a crowd." He could not confirm if anybody had been killed.
Hamza al-Hassan, an opponent of the Saudi government from Eastern Province living in Britain, predicted that protests would spread to more cities. "I am frightened when I see video film of events because most people in this region have guns brought in over the years from Iraq and Yemen and will use them [against government security men]," he said. He gave a slightly different account of the start of the riots in al-Awamiyah, saying that two elderly men had been arrested by the security forces, one of whom had a heart attack.
"Since September there has been a huge presence of Saudi security forces in al-Qatif and all other Shia centres," he said. Al-Qatif was the scene of similar protests in March, which were swiftly quashed by security forces.
The Saudi statement alleges that the recent protests were stirred up by an unnamed foreign power, by which it invariably means Iran. The interior ministry was quoted on Saudi television as saying that "a foreign country is trying to undermine national security by inciting strife in al-Qatif". Saudi Arabia and the Sunni monarchies of the western Gulf have traditionally blamed Iran for any unrest by local Shia, but have never produced any evidence other than to point at sympathetic treatment of the demonstrations on Iranian television.
The 20 doctors in Bahrain sentenced to up to 15 years in prison last week say their interrogators tortured them repeatedly to force them to make false confessions that Iran was behind the protests. The counter-revolution in Bahrain was heralded by the arrival of a 1,500-strong Saudi-led military force, which is still there.
Mr Rayah, who flew from Saudi Arabia to Beirut to be free to talk about the protests, said: "People want a change and a new way of living." He said that, in particular, they were demanding a constitution and a free assembly for the Eastern Province. He also wanted the Society for Development and Change legally registered.
Mr Hassan blamed the protests on the fact "that there has been no political breakthrough".
"I am from the city of al-Safwa, which is very close to al-Awamiyah, and there is very high unemployment in both," he said. Some 70 per cent of the Saudi population is believed to be under 30 and many do not have jobs. "We were hoping for municipal reforms and regional elections for years but we got nothing."
He said reforms reported in the Western media were meaningless and that only a few Saudis had bothered to vote in the most recent local elections because local councils had no power.
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pendapat aku... foreign power tu bukan Iran... tp US n Britain
IMF Advisor: Global Financial Meltdown in 2 to 3 Weeks
Thursday, October 6, 2011
In an interview with IMF advisor Robert Shapiro, the bailout expert has pretty much said what,once again, is on everyone’s mind: “If they can not address [the financial crisis] in a credible way I believe within perhaps 2 to 3 weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system.
We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected.
All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world. This would be a crisis that would be in my view more serrious than the crisis in 2008…. What we don’t know the state of credit default swaps held by banks against sovereign debt and against European banks, nor do we know the state of CDS held by British banks, nor are we certain of how certain the exposure of British banks is to the Ireland sovereign debt problems.”
But no, Morgan Stanley does, or so they swear an unlimited number of times each day. And they say not to worry about anything because, you see, it is not like they have any upside in telling anyone the truth. Which is why for everyone hung up on the latest rumor of a plan about a plan about a plan spread by a newspaper whose very viability is tied in with that of the banks that pay for its advertising revenue, we have one thing to ask: “show us the actual plan please.” Because it is easy to say “recapitalize” this, and “bad bank” that. In practice, it is next to impossible. So yes, ladies and gentlemen, enjoy this brief relief rally driven by the fact that China is offline for the week and that the persistent source of overnight selling on Chinese “hard/crash landing” concerns has been gone simply due to an extended national holiday. Well, that holiday is coming to an end.
Physical silver running out because its spot price does not reflect true investment demand
By: Peter Cooper, Arabian Money Several readers of ArabianMoney have written to us over the past two weeks to express their astonishment at the current price of silver because demand where they live is so high that stocks have run out. Consider this comment: ‘I used to buy silver from a shop in Kobar in Saudi. From the last four weeks they said they ran out of silver. I cannot find anyone who sells silver in Saudi now. I asked them from where do they get their silver. They said the UAE. The problem is they only have 1kg bars…and I still cannot find any supplier.’ No stock
Well don’t bother coming to the UAE. Our information is that the 1kg bars mentioned here and featured in a video on the website last month (click here) are all sold out too. We’ve also had feedback about low or no stock in Texas and Australia from big private bullion dealers there.
Now what would normally happen when a commodity is in short supply is that the price would go up to encourage sellers to put some more into the market. That is presently not happening because the silver price is being artificially suppressed in the Comex futures market by the bullion banks acting on instructions from the Fed presumably, so why would you sell that silver cheaply if you happened to own some?
But something has to give and it is the price of physical silver rather than the Comex price of the shiniest of metals. If you can find any silver these days you will pay quite a substantial premium over the spot price. But pay it because that is probably still a bargain compared to where silver prices are going. The truth is that silver is a rare metal, more rare than gold. Silver reserves have been estimatated at one-hundredth of gold reserves. Silver is after all consumed by industrial processes and reserves have dwindled over the years because the price has been kept so low for so long by market manipulation.
Global Demand for Gold & Silver at Unprecedented Levels
Oct 9, 2011
King World News is continuing to get reports from sources around the world regarding tremendous physical demand in both gold and silver. The Perth Mint, one of the largest mints in the world, communicated to its customers on Friday, “Demand for our coins is currently running at unprecedented levels and we have been inundated by high levels of web and telephone traffic from clients all around the world. This has put tremendous pressure on our business systems and Customer Service department which have struggled to cope with the number of enquiries and orders.”
Peter August, CEO of Australian Bullion Company, Melbourne Australia, which is one of the largest and most respected bullion dealers in the country told KWN,
“We have never, ever seen these levels of demand for physical gold and silver. One of the biggest changes we have found in recent times is that our client base has become much more savvy and they are aggressively buying on the dips....
“As an example, with the recent plunge in the price of silver, we have noticed that the demand for physical silver has exploded. Another complicating factor is the fact that there are virtually no sellers in the silver market.
We have found the same exact buying pattern is occurring in the gold market. As the price declines, we have been experiencing an unprecedented amount of new orders for physical gold. Demand has been so extraordinary for both gold and silver, that our two main suppliers are in the process of ramping up capacity because they simply can’t handle the current levels of demand.”
rasanya sekarang masa terbaik untuk beli emas ke hold dulu ya?sbb skrg ade turun sket kan?
minta ...
damiqula Post at 10-10-2011 09:20
seriously susah nak kata sebenarnya.
Tapi pada saya klu ada bajet beli je la, pastu klu rega naik syukur
kalau turun pejam mata je...sebab utk long term memang tak mengecewakan
Klu beli skg harga spotgold dunia dlm USD 1670 je skg,
masa harga USD1900 dulu pun ramai je yg beli.
slalu klu buyer tanya saya soalan camni, saya suggest beli berperingkat
Klu bajet boleh beli 60g cthnya: awak beli dulu 20g skg dan tgk harga gerak camana in 1-2 weeks
klu turun beli lagi 20g....dan seterusnya.
bajet ade insyaAllah,tapi sy suke gatal2 mata pi tgk rege spot gold.bila beli emas time mahal,kadang2 ade rase terkilan.sbb kalo beli time murah,dapat berat sikit emasnya.nampak gayanya kene beli je,pastu pejam mata je ngn rege spot gold.sbb bukan beli nk jual balik esok lusa pun,kan?
bajet ade insyaAllah,tapi sy suke gatal2 mata pi tgk rege spot gold.bila bel ...
damiqula Post at 11-10-2011 10:47
Harga spotgold ni bergerak sangat pantas.
Dan yg kena slalu alert dgn harga spotgold ni seller kecik mcm saya
sebab kami amik stok harga pagi cun...elok2 dah jual ptg nak amik dah naik giler2
bila harga drop byk...supplier slalu tak mau jual (mcm2 alasan: tgk je skg, company besar pun ada yg website down gak )
Mcm saya kata tadi...beli berperingkat, kalau turun giler2 reda je la
fikir longterm....insyaAllah.
sonyap sunyi jo bonang yg satu ni..mano poie sumo orang...
allo kengkawan..nak mintak pendapat..
bagus ke kolek silver coins utk pelaburan?
i baru je join grup silver lot kat mukabuku...
huwaa...terkojut den..gile2 mereka2 di situ menjual beli silver coins..
memacam ada..binatang2 pon byk..
kookaburra la..cougar la..panda la..dragon la...{:1_126:}
mcm2 adaa...
worth it ke wat collection silver coins ni...
lagi2 yg numismatic (spelling??) tu..
Post Last Edit by pengecatbintang at 14-10-2011 00:29
09/26/2011 - 11:54
"The Collapse Is Coming...And Goldman Rules The World"
pengecatbintang Post at 27-9-2011 09:43
Ingat lagi youtube wawancara Alessio Rastani (independent Trader) di BBC UK yg kata Goldman Sachs rules The World pd ujung Sept 2011...
la ni 12 Oct 2011 wawancara CNBC ngan JPMorgan Chief Commodities Strategist ttg jangkaan rege gold by end of this year...
JPMorgan n Goldman Sachs ada massive short dlm silver terutamanya n gold.... maksudnya jual paper banyak2 utk suppress rege 2 PM tsbt... tp bila rege jatuh gila2 baru2 ni... depa dah kurangkan position short tu gila2...
utk makluman... owner Goldman Sachs & JPMorgan adalah family Yahudi yang sama iaitu Rothschild Banking Dynasty n Rockefellar... kedua investment bank ni memiliki saham dlm Federal Reserve iaitu private bank (orang awam fikir gomen US punya) yg cetak duit n bagi pinjam kat US Treasury dgn interest...
ok... link wawancara terbaru (30 saat pertama iklan) ni... sori takde youtube....
JPMorgan has been calling for gold to jump to 2500 an ounce by the year’s end, but in the past month the metal has fallen ten percent. Insight on where prices are headed, with Colin Fenton, JPMorgan chief commodities strategist.
ini jangkaan depa... x semestinya betul...
cuma apa yg menarik adalah... depa adalah main characters yg manipulate gold n silver price
kelebihan coins ni di bole dibeli dgn jumlah kecik : 1 oz
dan mcm2 jenis buat org ada minat nak ...
kerawangemas Post at 14-10-2011 10:42
itu lah..premium dia tinggi betul la..
nak2 yg numismatic tu..sampai 300%...gilos..
kalau ada economy collapse, apa worth coins ni ekkk..tade worth apa2?
numismatic tu utk collerctors item jer. Org yg membeli tu pun beli semata2 utk personal collection, bukan utk investment. mungkin tkde niat utk jual semula.
numismatic ni ibarat beli kereta klasik,
harga mahal dan klu nak jual kena carik peminatnya ju ...
kerawangemas Post at 14-10-2011 14:03
yg transformers coins tu kira numismatic kan..
mcm mana pulak yg dragon, panda, koala, etc..dan jugak the lunar series yg dikeluarkan oleh australia mint tu..
adakah itu sumer di kira numismatic collection jugak?
Post time 5-10-2011 05:39 PM
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