This weekend’s “vaunted” G-20 meeting in Shanghai came and went – as I
expected, with no concerted action. You see, governments are no
different than Central banks – in that all they care about is
perception, and considering every imaginable way to manipulate and distort
it. Thus, given that “manipulative operatives” like the stock and oil
PPTs; and gold Cartel; were able to recoup some lost ground last week, there
was no reason to issue a “communique” featuring anything but vacuous
platitudes.
That said, clearly all’s not well, as the Chinese stock market plunged
again this morning – to nearly its lowest level of the year; which is
probably why the PBOC not only resumed devaluing the Yuan the second global
economic leaders hopped on their flights, but reduced bank reserve
requirement ratio for the fifth time in the past 12 months. In other
words, China’s economy – and as a proxy, the entire world’s – continues to
collapse, “manipulative operative” actions notwithstanding. Thus, it
responded in the same manner as it, and all Central banks always do; print
money, and lower the world’s already loosest credit standards.
To that end, the reason things are coming apart so rapidly – politically,
economically, and socially – is because the world is finally realizing this;
and subsequently, taking action to protect itself. Which is
probably why some of this morning’s top media headlines are as follows…
– “After €670 billion in QE, European inflation plunges to -0.2%,
the lowest since it started”
– “The global run on physical cash has begun – why it pays to panic
first”
– “Another crisis is certain, warns former Bank of England chief”
– “Kuroda’s NIRP backlash – Japanese interbank lending crashes, as
Japanese banks have almost entirely stopped lending to each other”
Not to mention, those regarding the rapidly imploding fraud that is Wall
Street…
– “Second tech bubble has burst, and here come the mass layoffs”
– “About that $1 trillion of distressed credit…”
– “Mind the Non-GAAP: Real S&P earnings are lowest since 2010”
…as emphasized by the hideous Chicago PMI activity index – validating last
week’s equally recessionary PMI Service Index – just reported as I was
editing…
That said, as ominously as such headlines portend for the world’s short-
and intermediate-term political, economic, and financial outlooks, they don’t
hold a candle to the devastating long-term issue portended by the weekend’s
most important – and as usual, largely unreported – headline, that…
– “Japan hits demographic tipping
point, reports first official population decline in history”
Most “analysts” – particularly in the short-sighted Western world – pay
absolutely no attention to such matters; which frankly, are as, or more,
impactful than nearly all other economic inputs. I do, however – which
is why I first wrote of Japan’s “demographic hell” four years ago; and
for that matter, America’s “deadly dollar demographics” two years ago.
In fact, the first wave of baby boomers is turning 70 this year,
commencing an economically crippling process of “Japan-ification” that will
wash over the U.S., Western Europe, and many other regions in the coming
decades.
That said, for all the (well-deserved) criticism I give him for his
unfathomably ridiculous views on gold, Harry Dent is unquestionably the top
demographic analyst around. I acknowledged as much last
month; and am doing so again this morning, when his “affluent market is finally fading – and fast” article
coincidentally published just as the Japanese population headline hit the
tape.
In a nutshell, the most cyclone-like economic headwind the world has ever
encountered – from the ongoing collapse of history’s largest, most
destructive fiat Ponzi scheme – is being joined by an equally devastating
tsunami of global spending reductions, for decades to come. As the
world’s oldest country – with a median age of 47, 17 years above the global
average – Japan is clearly the furthest down the road to demography-driven
collapse. Which is why, for years, I have predicted it will be the
first “first world” nation to experience 21st century hyperinflation.
However, many others are right behind it; most notably Germany, with much
of Western Europe not far behind. Which is why the accelerating
“migrant crisis” – in large part, the result of said fiat Ponzi scheme; is
such a serious, and imminent, threat to the soon-to-collapse European
Union and Euro currency. In other words, no matter what governments,
Central banks, and anyone else attempts, the sweeping, all-powerful forces of
demographics will sweep them aside like feathers in the wind. Throw in
the historic pile of imploding worldwide debt – again, the direct result of
said fiat Ponzi – and you can see how the global economic outlook has never
been worse; nor the political and social outlook more terrifying.
Big picture trends are what the world’s smartest analysts focus on; and in
our lifetimes, never have we seen such ominous big picture trends as the
collapse of an unprecedented, global fiat Ponzi scheme; and the most perilous
“demographic cliff” in recorded history. Not to mention, the twin
“perfect storm” of exploding physical gold and silver demand; collapsing inventories; and declining supply – likely,
for years to come. My friends, most of the world cannot source
metal of any kind, at any price. And boy would they do anything to do
so! Meanwhile, most of you still have access to gold and silver at
historically “subsidized” levels. Which, based on the experience of
2008, will likely dissipate like a “fart in the wind” the second the next
crisis emerges unfolds – which I firmly expect to occur this year.
To that end, let me just conclude by saying that WOW, has Bo Polny put his
(self-proclaimed) reputation on the line! According to him, gold and
silver are going to explode RIGHT NOW
– with gold doubling in short order; and silver tripling, en route to triple
digit levels by year’s-end. Let’s just say that I agree entirely with
the fundamentals reasons why such moves might occur. However, I
haven’t a clue whether the multi-century cycles he emphasizes have any
validity. Which I guess we’ll know soon enough, won’t we? That
said, if he’s not correct RIGHT NOW, I have little doubt he will be in the
“not too distant” future.
