Having followed various developing issues, like a precipise were about to fall into,  the ‘warnings’ from experienced economists and market professionals, we’re seeing respected commentators likewise raise a warning voice concerning the impending crisis that many like myself expect will happen in probably the first six months of 2011. There is now finally more furious talk about the Eurozone Crisis, Soverign Debt, Inflation, Bond Bubbles, Currency and Trade War Tensions, a China slowdown with a red alert over China’s inflation worries!

World on Red Alert over China’s Inflation

Inflation

The Bank of England is really ‘piggy in the middle’, it’s already had to abandone it’s 2% inflation target, in reality inflation in the UK is at 4.7% according to the old retail price index. With VAT increases this week to 20% this will help drive UK inflation even higher. If Mervyn King doesn’t raise interest rates soon, the Bank will loose all credibility! The effect on consumers, businesses and mortgage payers is invertible.

Bank of England’s Monetary Policy Committee sees higher inflation risk

As we can already see Inflation in China is already becoming a bigger problem, Brazil and other emerging markets suffer the same issues, not forgetting the reckless antics of the US Federal Reserve and all that money printing by ‘Helicopter’ Ben Bernake.

Citi says Bank of England has lost the plot on inflation

No other major industrial country has experienced such persistent inflation overshoots at any point in recent years

Families worse off

Middle-class families will be more than £3,000 a year worse off this year, with the rising cost of living pushing many to the brink of bankruptcy.

The Eurozone

Spain and Italy alone must refinance more than €400bn (£343bn) of debt in the first half of the year, which could prove impossible given investor fears over the finances of southern European countries

Euro stands just 20pc chance of survival in next decade

CEBR said a new eurozone crisis was its number one forecast for 2011, citing the hundreds of billions of euros of debt that members must replace this year.

European debt markets ‘face second credit crisis’

European debt markets could be hit by a second credit crisis within months as fears grow over the huge volume of new bonds that must be sold by governments and banks in 2011.

Governments have been able to slow down the process, but the problems did not go away. There remains trillions of dollars of debt that must be refinanced or sold.

Precious Metals Will Accelerate In 2011, Turk Tells King World News (17mins MP3)

Soverign Debt

Despite all the rhetoric and promised cuts in spending by our (UK’s) coalition government, the hard fact is that spending and borrowing continue to soar and it looks as if they are spiraling out of control.  The chart above illustrates the magnitude of the problem as our government debt nears £1 trillion, 56.3% of GDP.

The US has ignored its $13.9 trillion debts and dished out recently tax cuts to the wealthy, by continuation of the Bush Era tax concessions.

Debt servicing costs are rising, the bond markets are seriously running scared and the only question is which country will be first to default, ‘cough’ rather restructure!

White House Warns Failure to Raise Debt Ceiling Would Mean Economic ‘Crisis’

The US $13.9 trillion national debt is creeping closer to its $14.3 trillion ceiling, and a vote to increase that limit is expected in the spring. “This is not a game,” Goolsbee said on ABC’s “This Week.” “If we hit the debt ceiling, that’s essentially defaulting on our obligations, which is totally unprecedented in American history.

Dollar Debauchment

The world is having reservations about the global reserve currency, as the US Federal Reserve prints the dollar into debauchery.

Stoking inflation to monetise the deficit may be the only way the US can ever tackle its debts, but it’s a dangerous game. Especially since everybody is trying to debauch their own currencies at exactly the same time.

This Is By Far the Most Important Financial Development of 2010

U.S. Treasurys and municipal bonds are crashing… affect the value of every stock, bond, exchange-traded fund… every type of investment there is

Video – America As We Know It Is Going To End In 2011

Watch this presentation from Stansberry and Associates Investment Research, who explains how the US crisis in particular is related to the financial crisis of 2008… but it is infinitely more dangerous for everyone the world over.

Jim Rickards of research firm Omnis Inc. gave a great presentation to the “Rethinking the Future International Security Environment” conference held last month in Washington by the Applied Physics Laboratory of Johns Hopkins University, worth viewing!

Jim Rickards – ‘Rethinking the Future International Security Environment’

For us Brits, ‘wake up’, the UK’s huge deficit is simply not sustainable. It will lead to ever greater amounts of inevitably ‘money printing’ – so called quantitative easing” by the Bank of England – the turning of UK government debt into British pound currency – will sooner or later lead to hyperinflation.

I had always thought that the US dollar would hyperinflate and collapse before any other major currency. I’m not so sure now, its become clearly evident that our UK Government spending and borrowing looks even worse than the dire levels being reached in the US. It’s painful to admit but that dubious distinction of being the first currency to hyperinflate may end up going to our own British pound.

Worrying days ahead but you can protect yourself, store your pension funds, savings in the best safe haven there is – Precious Metals.

Buy Gold online – quickly, safely and at low prices

Buy Silver online – quickly, safely and at low prices

GATA board member Adrian Douglas, publisher of the Market Force Analysis letter, has announced his Moron of the Year Award for 2010, and in reviewing the top candidates he describes the doubtful commentary about the precious metals market that put them in contention. You can learn about the candidates and the winner at the Market Force Analysis Internet site here:
Who said the dumbest things about precious metals in 2010?

Here’s a hypothetical sequence of events: (Warning, this post might ruin your day!!)

1. Government dilutes austerity measures as they are socially unacceptable.
2. Government spending continues to increase.
3. Borrowing costs increase as markets lose faith in government’s commitment to tackle the deficit.
4. Unemployment sky-rockets and tax revenues collapse.
5. Government borrowing increases to cover additional debt burden & welfare payments.
6. Bond markets lose faith in government, borrowing costs rise to crippling high levels.
7. Government resorts to 100% direct bond purchase to bring interests rates down.
8. Currency begins to depreciate due to government monetisation (money printing).
9. Inflation is ignited as import costs soar.
10. More money printing is required to prevent a depressionary collapse.
11. Currency become worthless.
12. Hyperinflation and societal collapse.

It doesn’t have to end this way but I ask the question, how likely is it and what are governments doing to avert this? To my mind absolutely nothing. In fact they are effectively creating these events by the very means the buffoons are using to prevent it.

I would suggest here in the UK we’re at #1 and just about to spill over into #2. The USA are at #7, Bernake is completely in denial suggesting recently another round of money printing (QE3) and so I’m 99.99% certain heading the whole way to #12. The US do have their secret ‘Nuclear’ weapon to potentially save them… which is gold!

Jim Rickards – ‘Rethinking the Future International Security Environment’

Market intelligence analyst James G. Rickards of research firm Omnis Inc. made a long presentation to the “Rethinking the Future International Security Environment” conference held 7th Dec 2010 in Washington by the Applied Physics Laboratory of Johns Hopkins University. The second half starting around 62mins into Rickards’ presentation elaborated on his recent incisive observations about gold, as expressed at King World News and elsewhere.

Rickards told the Johns Hopkins conference that he considers gold to be the secret economic weapon of the US government, and he noted that devaluing currencies against gold in times of economic distress has been done frequently throughout history.

He said he expects the United States to avert the dollar’s collapse by returning it to a gold standard or even to avert the collapse of currencies worldwide by sponsoring a new gold-backed international currency, with gold revalued to perhaps $4,000 per ounce under either scenario. Protect yourself, Buy Physcial Gold and Silver now!

Known for motivating millions with his seminars and training products, world renowned Mr Tony Robbins is NOW adding his apocalyptic word of warning surrounding the impending Financial Armageddon?

I’ve been saying exactly the same to family and close friends for some time now, although now with mounting voices such as Tony, perhaps others will now not think me a ‘merchant of doom!’

Tony Robbins – How to Survive the Impending Financial Armageddon?

Really I’m not normally a pessimistic person – I believe we need to be optimistic and positive, especially in business, otherwise it’s as though we can talk ourselves into a recessionary cycle, not helped by the media. However no matter what we’d like the believe, the ‘real economy’ isn’t looking pretty underneath. Educate yourself about the real reasons why and how this is out of our hands no matter how much we wish otherwise.

So how do you protect yourself financially, your investments and savings from the impending financial Financial Armageddon?

Irrespective of how much we might ‘wish’ for a better economic outlook, there are forces at work here, decisions which have been made which will result in the coming ‘financial Armageddon’, an economic depression to rival the 1930’s.

This may seem difficult to fathom right now, we all realise now that it was the sub-prime mortgage fiasco from the trading of CDC’s (Credit Default Swaps etc) which started it all…

This Video explains how it started with CDC’s:

The Crisis of Credit Visualized

Concerns over the stock markets, Eurozone bailout, Sovereign debt and current investments leave us very concerned for future economic stability!

A more updated view since – a funny Australian comedy sketch that sums up the Eurozone bailouts since… perhaps not so amusing when you consider this is real!

Clarke and Dawe: Lending merry-go-round

The financial meltdown of credit appeared to us almost out of nowhere, however decisions made since are almost impossible now to reverse. Even though our UK coalition government is trying to tackle our national deficit given our global economies are so interconnected through the banking sector and markets, if the US goes down, which it will – we’ll all be affected.

Money and Markets – August 5, 2010

We are going to see the biggest transfer of wealth in history, unfortunately it’s the average ‘middle classes’ who are going to suffer the most! There is significant information below, links and videos, appreciate this is time consuming to read, view or listen to, I’ve been following these issues for some time… so I am rather convinced of what we need to do to try and protect ourselves from this, it’s going to be very difficult for everyone, but the more we’re informed, the better able we are to come out of this financially still alive.

• Robert Kiyosaki, bestselling author of “Rich dad, poor dad”, says the best investment in the world today is Gold & Silver?

• George Soros: known as the worlds best investor, just (Nov – Dec’09) increased his Gold holdings from $421m up to $663m

• Warren Buffett: once the richest man in the world, said “the purchasing power of most currencies will continue to fall”?

• Mike Maloney, the famous bullion expert predict Gold to hit $15,000 per oz & Silver to hit $1,500 per oz in paper money within 5 years?

$15,000 Gold and $1500 Silver – Gold and Silver Predictions By Mike Maloney

Silver is the best hedge against inflation! Robert Kiyosaki

You can read an eye opening book which details some of the historical perspective behind all of this online for FREE from Robert Kiyosaki at:

Robert Kiyosaki – Conspiracy of the Rich

In the meantime, some videos and articles below that help us appreciate what has been going on and more importantly, what unfortunately is probably going to happen, it’s almost invertible now…

‘Not 5% or 10%, but 25% Gold’
“If the US currency is failing because of the problems we’ve discussed, there’s no question that the other currencies are going fail with it.”
“The United States is plunging back into a hard recession, if not worse”
“If the United States gets into deep difficulty, we get into deep difficulty because our economies are so closely aligned…. the fact is the whole Western world will be seriously impacted by what happens in the United States.”

‘DailyTelegraph: George Soros slashes exposure to US equities’
“Of those equities that do remain, the fund’s holding in a gold exchange traded fund constitutes his largest investment,”
“investing in commodities and other safe havens”

‘DailyTelegraph: Time is running out for the West’
“a full-blown sovereign debt crisis as their demographic time-bomb threatens”
“Moody’s fears that the US will crash through its safety buffer by 2013″
“The US, UK, Germany, France, and Spain are all at risk of an “interest rate shock”
“the UK is clearly one of the weaker countries in the AAA peer group.”

‘MoneyNews: Billionaire fund manager Thomas Kaplan goes “all in” – a $2 billion bet on gold!’

‘DailyReckoning: V-Shaped Recovery, Where Art Thou?’
“At that point – which could be 5 or 10 years ahead – we hope to trade our gold for stocks, buying the best companies at the best prices in a quarter century.”

‘City fears of Great Depression Mark II’
“Pimco said that hedge funds were starting to liquidate their positions in a bid to preserve their capital”

Bloomberg: Jim Rogers – Gold will go higher!
Jim Rogers, chairman of Rogers Holdings, talks with Bloomberg’s Haslinda Amin and Paul Gordon from Singapore about the outlook for gold and commodities prices, that Gold will continue to rise, he owns gold and still planning to buy more!

To stay informed – educate yourself, review sites such as:

www.kingworldnews.com
www.dailyreckoning.com
www.thedailycrux.com
www.theaureport.com
http://goldnews.bullionvault.com

All the best, protect yourself now!

Finally Sony have released a trailer for the ‘This is It’ film, the Michael Jackson concert rehearsal documentary which is being rushed out for a global release on 28th October. The film is being released for a special, limited, two-week showing in cinemas worldwide.

I’ve been a huge MJ fan since my youth and saddened by his loss, but this will be a great collector item on DVD, so I’ll probably wait for the DVD release to enjoy on my big screen and 7:2 THX home cinema system, rocks any public cinema audio!

From the press release:

Kenny Ortega directed the film, which is produced with the full support of The Estate of Michael Jackson. Ortega, director of and Jackson’s creative partner on the THIS IS IT concert, said, “This film is Michael’s gift to his fans. As we began assembling the footage for the motion picture we realized we captured something extraordinary, unique and very special. It’s a very private, exclusive look into a creative genius’s world. For the first time ever, fans will see Michael as they have never seen him before – this great artist at work. It is raw, emotional, moving and powerful footage that captures his interactions with the THIS IS IT collaborators that he had personally assembled for this once in a lifetime project. This film shows a consummate performer working with and guiding singers, dancers, band members, choreographers, special effects creators and countless other creative members of the team as we all assemble this historic concert. I can think of many words to describe Michael as he rehearses for and creates THIS IS IT– inspirational, dynamic, generous, dedicated, loving and the guiding force—you see him as the true architect and driving force of this project – a true master of his craft, the Entertainer of Entertainers. I’m proud of the many years of friendship and creative association I shared with Michael and I’m happy that people will get a chance to see his spirit and drive in action. THIS IS IT may go down as the greatest concert that no one got a chance to see, but with this film, we get a rare portrait of Michael as he prepares for his final curtain call and what I believe was going to be his master work.”
Michael Jackson THIS IS IT will offer Jackson fans and music lovers worldwide a rare, behind-the-scenes look at the performer as he developed, created and rehearsed for his sold-out concerts that would have taken place beginning this summer in London’s O2 Arena. Chronicling the months from April through June, 2009, the film is drawn from more than one hundred hours of behind-the-scenes footage, featuring Jackson rehearsing a number of his songs for the show. Audiences will be given a privileged and private look at the singer, dancer, filmmaker, architect, and genius as he creates and perfects his final show.

“I have never been partners with a more creative, innovative or groundbreaking entertainer than Michael Jackson,” said Randy Phillips, President & CEO, AEG LIVE and producer of Michael Jackson THIS IS IT. “While the concerts would have been the greatest shows in the history of music, our film will provide a historic event for Michael’s fans to see for themselves the genius that he was and the creativity, talent and imagination that the entire cast devoted to create the ‘greatest concert that never happened’.”

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