Jim Willie, 11.09.13
The United States has ushered in hyper monetary inflation with the series of Quantitative Easing programs, as in QE1, QE2, Operation Twist, and QE3. My belief is no longer than hyper inflation is inevitable, since already part of current policy now. Hyper-inflation is already here
As a result of the hostile monetary war, the USDollar and its USTBond vehicle are facing not simply opposition, but broad-based earnest organized initiatives to avoid them. The goal is to replace them in workarounds. >A reset is apparently near. The pressures to install a more fair, more just, and more enduring system is enormous, and will not cease.
The demand is to bring back the Gold Standard, the equitable arbiter, the true enforcer.
The demand for Gold is inelastic.As price rises, so does demand. It is called Gold Fever.
Something big is near, as the tremors are being felt in every global corner, and every global market.
As introduction to this article on the bizarre nature of all things economic and financial within the Untied States, consider once again the Deflation Knuckleheads. Be sure to know that the Jackass considers Rick Ackerman to be one of the premier technical chart analysts in the world. He has taught me in the past from his T/A work, even as his hidden pivots are unique and enlightening. In 2011, we were at odds over the incessant errant ramblings about deflation and its great threat. In August of that year, the Jackass penned a public article in an attempt to clarify the inflation and deflation factors being simultaneous, not at all mutually exclusive or in some debated sequence. While respect is still high for Rick, he has misquoted me, not demonstrating the depth of knowledge concerning the incredibly difficult topic of inflation. The distortions run so deep on the topic, that even smart folks fail to comprehend.
The syndicate desires such confusion. After trying to set the record straight two years ago, one more attempt is necessary. The respect for each other is mutual.
The motive here is to further shed light on the nasty gnarly tangled topic of inflation and how deflation is interwoven as the financial and economic domains are locked in the weave. They are twisted together to produce a storm the likes of which have never been witnessed before in history. What follows is a critique of obtuse perceptions of all things relating to inflation and its opposite. Ackerman might have stepped down as King of the Deflation Knuckleheads, but he continues to preach its shallow school of thought. No hard feelings, Rick, but you do not misrepresent my work correctly. We might have a common goal, but we do not follow similar perceptual paths to arrive at the promised land, the Gold Standard. The critique in this article is not designed as a personal attack on Ackerman. At times, the competent among us have big differences in perceptions. The motive is to clarify in a continuing theme the shortcomings of the deflationist camp, which cannot see either the monetary inflation or its interwoven nature with policy. The result is a vicious cycle that escapes them. We will not witness one or the other, but rather both together. Acute inflation and persistent deflation co-exist and even feed off each other, due to policy action and response. My own belief is that the Knuckleheads will never comprehend the two factors woven together to produce the financial & economic hurricane of unprecedented type.
PARADIGM SHIFT OVERSHADOWS CHARTS
In a November 4th address to his subscribers, Ackerman discussed the Gold price and the risk for a decline to the $1125 level, another potential 15% fall from here in the COMEX posted price. He went on to show nice respect for the Jackass analysis and work. However, in his final attempt to distinguish our work on differences, he presented my position incorrectly, in an important misquote. The Jackass practice of not looking much at the official Gold chart in the last two years or more flies in the face of any chart expert. Their skill is recognized, but the relevance is not apropos. My belief is that the important non-linear factors have kicked into gear. The extraordinary events dominate within the COMEX and MF-Global, such as thefts of accounts, refusal to deliver on gold futures contracts, rapid depletion of official gold inventory in vaults, raids on the GLD Fund, even quick shifts in inventory from one major bank to another in order to cover demands. The revolt in the Eastern Hemisphere has not entered into the work of much of any prominent analysts, surely not chartists. Therefore, a grand blind spot persists. The chart experts believe all external information is wrapped inside the chart somewhere, a belief once embraced by the Jackass. No longer, not for a major structural shift in systemic revolt. The entire Eastern Alliance, with its visible front in the BRICS nations and the G-20 Forums, is working on a USDollar alternative. They include some ancient wealthy families in China, who have decided to produce change by draining the London banks of several thousand tons of gold. They influence the change factors in the most awesome manner, behind the curtains, with phone calls and surely threats. They have enlisted the aid of the trust Triads, in a counter-action to the security agencies resident among the three major nations in the Axis of Fascism. Refer to the United States, Great Britain, and their small ally. Finish reading from original>>
