Welcome
one and all to another edition of Illustrangia, where we trudge
through the strange to illuminate the truth. In this issue we will
touch on warnings, signs, and the new world order.
First
up is Eric Sprott, self-made billionaire and founder of Sprott, Inc.
He gave us a warning that amounted to “little more than a little
Dutch boy with his finger in the dyke.” According Sprott, no one
outside central banks is buying bonds, especially bonds with a
negative yield, and only the central banks are “holding up the
illusion.” They are the only ones buying the bonds, and if you
take the central banks out of the equation, the entire system, the
global economic system, will collapse.
It
doesn't help matters any that the Federal Reserve and other central
banks are manipulating the market, “rigging” it as a “complete
illusion.”
“The
greatest danger,” said Sprott, “is that we are supporting a
levered banking system and everything they own in paper,” not
precious metals, i.e. gold. If people start taking their money out
of the local banks, the central banks will try to compensate them to
“keep [them] alive,” probably flooding more unbacked paper money
into the system.
If
there is any indication from the past – primarily from 2001 (the
collapse of the World Trade Center) and 2008 (the collapse of the
economy), which were shemitah years – the next event in 2015
(another shemitah year) could be “the mother of all collapses.”
[1]
With
the strengthening price of gold, one would think central banks would
once again use precious metals to back their currencies, but because
the “mainstream media has given up on the metals” leaving them
almost non-existent, this could be the “perfect setup for the start
of a new bull market” where we see share prices on the rise,
encouraging buying.
Unfortunately,
we may see “more bankruptcies before the new bull market starts.”
[2]
Of
course, with gold on the rise and the central banks keeping bonds in
circulation, I wander if the new Asia Infrastructure Investment Bank
(AIIB) will use precious metals to back their currencies. Remember
all that gold China was buying a couple of years ago? Could the AIIB
be the reason? Or will the AIIB follow the modern standard and keep
those bonds circulating. One thing is certain, the U.S. is upset
this China-led bank is getting underway, and it doesn't help that our
allies are defecting to the new AIIB.
The
U.K., Germany, France, and Italy have applied to become members of
the foreign central bank, “defying U.S. calls for them to exercise
caution,” touting that “the AIIB's lending practice might not
meet governance or environment standards.” However, that claim was
just a trick to scare those countries from joining.
The
real reason Washington is concerned over “the creation of the
AIIB,” is that it will allow “the yuan to flourish [hitting] the
international standing of the U.S. dollar as the world's reserve
currency of choice.”
The
U.S. has a budget deficit of $1 trillion a year and needs to “finance
its debt with borrowing.” If Washington can't get it done, “the
dollar will be dumped.” All rates will rise, hurting the economy,
and a “chain reaction will bring another round of financial
crisis.”
Last
year in October, when the AIIB was created, China and the following
countries jumped on board: India, Thailand, Malaysia, Singapore, the
Philippines, Pakistan, Bangladesh, Brunei, Cambodia, Kazakhstan,
Kuwait, Laos, Myanmar, Mongolia, Nepal, Oman, Qatar, Sri Lanka,
Uzbekistan, and Vietnam. “China stated that it would hold a 50%
stake in the institution by pitching in $50 million.
China's
economy is now “second in size only to the U.S.” They want to
“play a greater role in the international arena,” but the U.S.
had been blocking China so as not to lose control of their hold on
the world market. “The fact that its allies are deserting to join
the AIIB reflects the waning of Washington's influence.” [3]
No
mater which way you look at it, China's star is on the rise, while
Washington's dollar will take a hit, and the entire U.S. economy is
on the verge of collapse. Our allies are like rats abandoning a
sinking ship. Looks like the coming years for Americans are going to
be difficult ones, indeed . . . within the New World Order.
Sources:
Today's
Featured Video:
UK shift to China & AIIB
'extremely
worrying for Washington'
Liam Halligan
Liam Halligan
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