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Government Begins “Partial Shutdown” What This Means For You…

October 1, 2013 8:29 am est

The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!

 

 

On to the business of protecting your wealth…

 

How many of you expected them to reach a deal at 11:59pm?

I certainly did, but instead, we woke up today to yet another political mess… The U.S. government began a partial shutdown at midnight for the first time in 17 years – Congressional leaders have scheduled no further negotiations on spending legislation, raising concerns among some lawmakers that the shutdown could bleed into the more consequential fight over how to raise the U.S. debt limit to avoid a first-ever default after Oct. 17.

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Just so you have an idea of what is open and what is closed. Who gets a paid vacation and who doesn’t…Here are the effects of the government “partial” shutdown.

This is just more drama to sway your attention away from the bigger problems. What could be the result of all this? What is the underlying “bigger problem”? Government Shutdown: The Next Step In The Collapse Of The Dollar?

How do you think other countries in the world look at the (once) most powerful nation on the globe if we can’t work together and reach an agreement that is good for the nation, not the politician?

It’s been said that Not Raising the Debt Ceiling: A Crisis, If We’re Lucky, a Historic Calamity If We’re Not Don’t think for one minute that these guys are not aware of this stuff – and in the midst of one of the worst economic disasters in US history other than the great depression, they can’t get it together and agree on what’s good for you and me? Momma always says, stupid is as stupid does!

On another note, Strong Silver Coin and Bar Demand From India and U.S. Does this statement surprise you? Of course the demand is strong, India is trying everything in its power to curb gold demand and the US is giving all of ours to the east, so of course there is massive demand for SILVER!

Also, for those of you who are frustrated that the price of metal is not rising as fast as you’d like it to, these Lower gold price spurs rush to buy bullion But who’s buying gold? Everyone BUT the US… Especially the Asians!

Think about this for a minute… The CFTC says there is no hard evidence that JP Morgan has been manipulating silver and gold prices, in fact, JPM said itself that they do not suppress the prices. They insist that they are shorting it on behalf of their customers. But who are their customers? As I shared with you the other day, its the Government – Both the US and perhaps the Chinese.

Look, if you held a massive amount of T-Bills (like China) and you really want the gold to accomplish their goal of a currency that is backed by gold, wouldn’t it benefit them to say hey look (US) if we don’t lock the price of gold in this trading range for a while and give us time to accumulate more gold at this price… Then we will dump your T-Bills and crash your dollar virtually overnight! Do it or else! It seems reasonable to me and to several other people who have called in to rant.

Also, the issue of attacking Syria dissipated pretty quickly, didn’t it? Did Putin Quietly Play the Debt Card Over Syria?

And oh, by the way, They are officially eying up your pensions

It’s been said that they will step up and say… We’re from the government, and we’re here to help. HELP? They can’t even work out a deal to keep the government running and make  a deal on the debt ceiling… again and now they want to help you with your pension? No thanks, I’ll pass.

That’s my conspiracy theory of the day… Stay Thirsty Friends!

Allow me to assist you in understanding these ever changing and challenging financial markets and more importantly, how you can profit on the upside potential and protect yourself from the downside risks….

Now, onto the breaking news that matters…

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Sprott: This Will Create A Horrific Collapse That Will Shock The World – I have been focused on the constant hammering of the gold and silver prices, in the face of news that would be generally construed as extremely bullish.  It’s been par for the course because it’s been going on for over 2 years in the case of gold, and 2 1/2 years in silver.

But these markets continue to trade in a counterintuitive manner.  There has been nothing that you could really construe as negative in terms of fundamental news happening for gold or silver in the past 2 years.  We have seen massive QE, political unrest, rapidly falling supply, and very strong physical demand.

None of this is supportive of dramatically lower prices, which is exactly what we have seen.  This suggests to me that the counterintuitive trading action is just a last ditch desperate act to protect the US dollar from its inevitable collapse.

This has meant that the Chinese have cleverly positioned themselves in this chess game in such a manner that has allowed them to acquire cheap physical gold and silver.  If Fitzwilson’s piece is correct, this is really cynical behavior by the Western central planners who have been permitting something like this to happen because the longer-term effects are going to be disastrous for the West.  So I have been thinking about Fitzwilson’s piece all morning and thinking to myself, ‘Good, grief, if this is true the situation for the West is even worse than I thought.

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Turk: Catastrophic Collapse To Unleash Unprecedented Chaos – Even though there is a debt ceiling, the US government has found a way to keep operating, which has allowed them to spend $200 billion or so, and the Federal Reserve continues to buy government paper just like the Reichsbank did for its government.  And we all know that the hyperinflation the Reichsbank unleashed from its “quantitative easing” program caused devastation throughout Germany.

So the implications for the dollar and the US economy are ominous if the debt ceiling continues to be increased without any attempt to rein in spending to reduce the perennial budget deficits.  The choices the US government has before it are not good, but we should not be surprised.  It has been living beyond its means for decades, and reality is just now starting to catch up.  The illusory conditions the government has created with artificially low interest rates could not last forever.

The outcome will be a collapse of dollar purchasing power and soaring precious metal prices.  This will be third time this has happened in American history — the first two currency collapses being the Continental and the Greenback.  But this collapse will be much more catastrophic because of the unprecedented size and scope of the coming collapse and resulting chaos that will follow.”

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Richard Russell – Expect Massive, Radical Change – This site will be about the Dow formation that we see below.  This formation is known as the “megaphone formation” or the “broadening formation.” The broadening formation is indicative of a market in turmoil, with sentiment swinging wildly from one way to the other.  Incredibly, the broadening formation has appeared in every major bear market since 1929.  It appeared prior to WWII in 1929.  It appeared in 1957 and 1965-66.  We saw a broadening top in 1987 and again in 1998-2000.  The most recent broadening formation we saw was in 2004 to 2008.

Assuming that a major bear market will begin from wherever the Dow tops out, we can assume that the Dow will decline to at least the right end of the lower trendline of the broadening formation.  If that holds true, then we can expect the bear market will take the Dow down to at least 5,000.  That would represent a horrendous loss, although not nearly as bad as the 1929 to 1932 bear market.

I’ve searched my mind to try to understand what a bear market to Dow 5,000 might mean.  In the first place, I think such a bear market could involve a new monetary system.  I also think a huge bear market would see the balance of international power shift from the US to China.

Read More Here