EXPECT INFLATION?

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On 10 September 2010, the White House press conference noticed that U.S. President Barack Obama was not wearing his wedding ring.

Don't panic. It is being repaired. (dailymail.T)

On 10 September 2010, US government bond prices fell in New York. (Obama shakes up top team as economy falters )

US economic growth "showed widespread signs of deceleration" in the six weeks to the end of August 2010. (US economic growth 'decelerating' )

Many of the big banks are still in trouble?

Imagine an American family borrowed $450,000 from a bank to buy a house costing $500,000.

The house is now worth US$200,000.

The bank has a problem.

Western countries may be about to experience a long hyperinflationary depression.

"The improvement in living standards that the average American and many other Western countries have enjoyed in the last 40 odd years is primarily based on debt – debt that can never be and will never be repaid with normal money." (THERE WILL BE NO DOUBLE DIP )

Andrew Roberts, credit chief at Royal Bank of Scotland, believes the USA is going to print a vast amount of extra dollars.

"We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy," he said in a note to investors. (RBS tells clients to prepare for 'monster' money-printing by the ... )

Matthias Chang, at Global Research, 31 August 2010, warns that Global Banks Will Collapse Between Now and First Quarter 2011

According to Mr Chang:

1) Big global banks had vast toxic assets, supposed to be worth trillions, but in fact worth peanuts.

2) The collapse of Lehman Bros and AIG exposed this truth.

Big global banks were INSOLVENT.

3) The US FED, the US central bank led by Bernanke, helped the global banks to start unloading the toxic assets.

4) The FED created “money out of thin air” and used that “money” to buy the toxic assets at face or book value from the banks.

Now, the FED is “loaded” with toxic assets once owned by the global banks.

5) But, the global banks are not flushed with cash. Where did their money go?

6) It went back to the FED as reserves.

7) And, the global banks still have US$ trillions worth of toxic wastes in their balance sheets.

8) Bernanke, the US Treasury and the global central bankers were all praying that given time (their estimation was 12 to 18 months) the housing market would recover and asset prices would resume to the levels before the crisis.

9) But, the FED will have to print at least another US$20 trillion at the minimum, to get the economy 'moving' faster.

This will cause the dollar to decline in value.

This could cause panic among the people who have lent money to the USA - sovereign creditors, investors and depositors.

10) The Too Big To Fail Banks cannot be rescued and must be allowed to be liquidated.

The FED and other central banks will pre-empt a run on banks and will do the following:

1) Disallow cash withdrawals from banks beyond a certain amount, say US$1,000 per day;

2) Disallow cash transactions up to a certain amount, say US$10,000 for certain transactions;

3) Transactions (investments) for metals (gold and silver) will be restricted;

4) Worst-case scenario – the confiscation of gold AS HAPPENED IN WORLD WAR II.

5) Imposition of capital controls etc.;

6) Legislations that will compel most daily commercial transactions to be conducted through Debit and or Credit Cards;

Solution:

Maintain a bank balance sufficient to enable you to comply with the above.

Start diversifying your assets away from dollar assets.

Have some foreign currencies.


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