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Liquidity creation is going to the stratosphere. This has a definite historical pattern AND a definite end date.
Who and what will set it off?
The "death star" is now swing into view. It is GOLD. Gold was always used historically to limit the printing press.
The current regime of NO limit on liquidity creation was kicked into high gear by Greenspan. It has reached it's limit.
Klaus Schwab of the World Economic Forum preaches his Great Reset.
So does Christian LaGarde of the European Central Bank.
ALL the major banking regulators are headquartered in Switzerland. The WEC also.
The New Basel III accords go into effect that will do away with almost all gold price manipulation.
Here are the details;
Lagarde increasingly looks like someone overmatched for her job from a money professional’s perspective. But from the political vandalism perspective, as practiced by her real boss, Klaus Schwab of the World Economic Forum, she’s doing a bang up job screwing everything up.
Moreover, if you also are coordinating with the Bank of International Settlements and are manipulating events to transfer power from individual countries to the IMF and *shudder* the United Nations, it’s important that the institutions you have the most control over remain solvent and stand ready to offer a solution out of the incipient crisis.
Now, because of its structure, the Fed can’t go bankrupt. It can print unlimited amounts of credit and ‘elastic money,’ as Martin Armstrong terms it to cover any and all time-mismatches within the banking system. That has been proven to be correct multiple times over the past 13 years since Lehman Bros. collapsed.
The ECB, on the other hand, can go bankrupt, since it has no capacity to do this. All it can do is buy the sovereign debt of the member countries’ central banks and hand them back euros, while swapping around deckchairs on this monetary Titanic.
So, why, all of a sudden is Europe so hot to implement them in June and for the U.K. to adopt them in January 2022, knowing full well that this will end the bullion banks and the central banks’ program of controlling the rise in gold prices through the application of newly-printed money to create fake supply and allow nearly infinite leverage in the gold market relative to unencumbered physical supply.
That means, as a truly trapped ECB presiding over a banking system that has reached its terminal limit who is also sitting on trillions in deteriorating sovereign debt, what can you do to shore up your balance sheet at that point?
The answer is simple, the one thing the Fed cannot do, allow the price of gold to rise.
The Fed has the problem of rising inflation and real yields now running -3%. Moreover, they can’t taper QE or raise rates until they are done cutting the commercial banks out of the transmission system for dollar liquidity first.
Like Basel III’s changes to funding ratios, the FOMC opening up its repo and credit facilities to non-banks, REITs and anyone with a pulse, means there are big changes in store for the big commercial banks who have been running roughshod over the financial landscape for decades.
In order for the ECB to avoid bankruptcy in the coming sovereign debt crisis, which in many ways The Davos Crowd is engineering, the price of gold will have to rise in euro-terms to offset the losses as that debt goes bidless.
OK, here you see the European Central bank at complete odds with the FED. The ECB plans to survive by allowing / forcing the price of gold to go to the moon.
The FED has no limit on printing. The ECB does. Europe is crashing much faster than the U.S.
"
The old debt will be cancelled and reissued as perpetual debt. But to pull that off the ECB will officially take control over the gold reserves of the euro-zone completely, while gold rises, putting the Fed behind the eight ball having lost the battle against commodity inflation.
So, implement Basel III, crush the incentive structure of the paper gold trade and allow real price discovery to fuel an historic rise in the price of gold. If the commercial banks in London and New York fight this they will be outcompeted and their balance sheets degraded."
OK, these rules are for Europe in June and Great Britain in January. It is claimed that America has (8133.5 tonnes it bought from the U.S. Treasury, on its balance sheet at the price it paid, $42.22 per ounce. It has a balance sheet entry of $11.04 billion)
Now, everyone knows that FED head Rubin started the emptying of Ft. Knox and the NYC gold depository. It has been proved over and over that the gold left. At the same time, there are a lot of credible claims that a few nations can manufacture elemental gold.
"Will European gold flee Europe in June? Will it go to GB or America or Russia or China?
"The Fed has the problem of rising inflation and real yields now running -3%."
Actually, real yields are lower than --3%.
Investors move into gold when inflation goes too high. I suspect that the gold will move to whatever jurisdiction has the lowest inflation rate.
That would probably be Russia. They are essentially a commodity currency.
Armstrong continuously stresses the importance of confidence.
what’s the only real weapon the central banks have to maintain credibility?
Their gold reserves.
How do you, if you are the ECB, use that weapon simultaneously against your two main competitors, the commercial banking interests in New York and London and the nascent crypto anarchists? You deploy your gold and steal everyone’s thunder.
In the end the Free Gold community will get what they want, but not for the reasons they ever thought they would — a bidless paper gold market and true price discovery in gold.
https://tomluongo.me/2021/05/23/base...role-for-gold/
Some years ago, FOFOA predicted that the price of gold would reach $55,000 an ounce in (then) purchasing power.
He was very methodical about his prediction.
The problem is; the higher it goes, the more likely that it gets confiscated.
https://tomluongo.me/2021/05/23/base...role-for-gold/
Who and what will set it off?
The "death star" is now swing into view. It is GOLD. Gold was always used historically to limit the printing press.
The current regime of NO limit on liquidity creation was kicked into high gear by Greenspan. It has reached it's limit.
Klaus Schwab of the World Economic Forum preaches his Great Reset.
So does Christian LaGarde of the European Central Bank.
ALL the major banking regulators are headquartered in Switzerland. The WEC also.
The New Basel III accords go into effect that will do away with almost all gold price manipulation.
Here are the details;
Lagarde increasingly looks like someone overmatched for her job from a money professional’s perspective. But from the political vandalism perspective, as practiced by her real boss, Klaus Schwab of the World Economic Forum, she’s doing a bang up job screwing everything up.
Moreover, if you also are coordinating with the Bank of International Settlements and are manipulating events to transfer power from individual countries to the IMF and *shudder* the United Nations, it’s important that the institutions you have the most control over remain solvent and stand ready to offer a solution out of the incipient crisis.
Now, because of its structure, the Fed can’t go bankrupt. It can print unlimited amounts of credit and ‘elastic money,’ as Martin Armstrong terms it to cover any and all time-mismatches within the banking system. That has been proven to be correct multiple times over the past 13 years since Lehman Bros. collapsed.
The ECB, on the other hand, can go bankrupt, since it has no capacity to do this. All it can do is buy the sovereign debt of the member countries’ central banks and hand them back euros, while swapping around deckchairs on this monetary Titanic.
So, why, all of a sudden is Europe so hot to implement them in June and for the U.K. to adopt them in January 2022, knowing full well that this will end the bullion banks and the central banks’ program of controlling the rise in gold prices through the application of newly-printed money to create fake supply and allow nearly infinite leverage in the gold market relative to unencumbered physical supply.
That means, as a truly trapped ECB presiding over a banking system that has reached its terminal limit who is also sitting on trillions in deteriorating sovereign debt, what can you do to shore up your balance sheet at that point?
The answer is simple, the one thing the Fed cannot do, allow the price of gold to rise.
The Fed has the problem of rising inflation and real yields now running -3%. Moreover, they can’t taper QE or raise rates until they are done cutting the commercial banks out of the transmission system for dollar liquidity first.
Like Basel III’s changes to funding ratios, the FOMC opening up its repo and credit facilities to non-banks, REITs and anyone with a pulse, means there are big changes in store for the big commercial banks who have been running roughshod over the financial landscape for decades.
In order for the ECB to avoid bankruptcy in the coming sovereign debt crisis, which in many ways The Davos Crowd is engineering, the price of gold will have to rise in euro-terms to offset the losses as that debt goes bidless.
OK, here you see the European Central bank at complete odds with the FED. The ECB plans to survive by allowing / forcing the price of gold to go to the moon.
The FED has no limit on printing. The ECB does. Europe is crashing much faster than the U.S.
"
The old debt will be cancelled and reissued as perpetual debt. But to pull that off the ECB will officially take control over the gold reserves of the euro-zone completely, while gold rises, putting the Fed behind the eight ball having lost the battle against commodity inflation.
So, implement Basel III, crush the incentive structure of the paper gold trade and allow real price discovery to fuel an historic rise in the price of gold. If the commercial banks in London and New York fight this they will be outcompeted and their balance sheets degraded."
OK, these rules are for Europe in June and Great Britain in January. It is claimed that America has (8133.5 tonnes it bought from the U.S. Treasury, on its balance sheet at the price it paid, $42.22 per ounce. It has a balance sheet entry of $11.04 billion)
Now, everyone knows that FED head Rubin started the emptying of Ft. Knox and the NYC gold depository. It has been proved over and over that the gold left. At the same time, there are a lot of credible claims that a few nations can manufacture elemental gold.
"Will European gold flee Europe in June? Will it go to GB or America or Russia or China?
"The Fed has the problem of rising inflation and real yields now running -3%."
Actually, real yields are lower than --3%.
Investors move into gold when inflation goes too high. I suspect that the gold will move to whatever jurisdiction has the lowest inflation rate.
That would probably be Russia. They are essentially a commodity currency.
Armstrong continuously stresses the importance of confidence.
what’s the only real weapon the central banks have to maintain credibility?
Their gold reserves.
How do you, if you are the ECB, use that weapon simultaneously against your two main competitors, the commercial banking interests in New York and London and the nascent crypto anarchists? You deploy your gold and steal everyone’s thunder.
In the end the Free Gold community will get what they want, but not for the reasons they ever thought they would — a bidless paper gold market and true price discovery in gold.
https://tomluongo.me/2021/05/23/base...role-for-gold/
Some years ago, FOFOA predicted that the price of gold would reach $55,000 an ounce in (then) purchasing power.
He was very methodical about his prediction.
The problem is; the higher it goes, the more likely that it gets confiscated.
https://tomluongo.me/2021/05/23/base...role-for-gold/
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