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The Scary Chart That Has Washington Terrified…

October 18, 2013 8:26 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…

Let me make sure I’ve got this right… Washington was “partially” shut down for almost 3 weeks, the debt ceiling bill was approved “last minute” to raise the debt only until February when all this drama happens all over again – Now, in this bill that was passed “temporarily” states that The budget deal allows for January federal pay raise????? Did anyone read the bill before it passed???? NO, that’s why they push bills through at the 11th hour, so nobody has a chance to read the damn thing! Now the Bankrupt Federal Reserve to need Taxpayer Bailout – 

So, things must really be turning around in the economy – Our unemployment rate is through the roof, we can barely pay our debts, inflation is running ramped – and I’ve read somewhere (just can’t find it) that people are being denied food stamps to feed their kids… yet the Federal workers feel they deserve a pay raise? Most of these numbsculls earn (I mean get paid) 6 figures already!!!

Trust me with this… The DC Drama Is Just The Beginning, Here’s Why.

Sorry for the rant – lets continue to other top news…

You may wonder why I am always referring to China when it comes to gold and silver fundamental analysis – The main reason is because there is a game being played called “King of the Mountain” remember that game?

China has a huge army with more strength (at least when it comes to finances) than the US – Its just not the army you are thinking of… Their army is gold – real money! Ya know… the stuff that the US CONSTITUTION talks about – The stuff that can not be counterfeited… yeah, that stuff.

China is pushing the US off the mountain using brick of gold and we are trying to push the off the mountain throwing piles of paper at them – Although the brick of gold is solid and has weight, its actually the paper that does the most damage.

Who do you think has a better chance of winning the game?

Just yesterday, China Downgraded America not because we raised the debt ceiling, not because our Government shut down, its because they feel that the US does not have the ability to act as or the credibility to maintain our roll as the financial powerhouse it once was. Its all about who has more power, who should have the world reserve currency status –

In fact here are 9 Signs That China Is Making A Move Against The U.S. Dollar and its also been reported that as of late

China Converting U.S. Dollar Debt Holdings Into Gold At Accelerating Rate

We are now on notice!

The Frightening Reality About What Is Happening In The US Gold was soaring yesterday as a result of the chaos, which has been taking place in Washington, but mostly because of the Chinese downgrading the United States.  The Chinese know that all the US did was defer this crisis and not solve anything.

So, this morning one of the Chinese rating agencies downgraded the US.  This may not be seen as significant as one of the major rating agencies downgrading US debt, such as Fitch or Moody’s, but it lit the gold market on fire and tanked the US dollar.

The Chinese know the US will be facing this crisis deadline no later than the 15th of January because that’s when the federal government runs out of money again.  By the 7th of February, the debt ceiling also gets hit again.  The reality is that the Chinese wants to make damn sure that the US does not damage their enormous foreign exchange holdings in the dollar.  That would literally be the type of thing that can lead to war.

America is supposed to be the most powerful country in the world, and what we are witnessing right now is absolutely pathetic.  People in Washington saying things like, ‘We can’t run the government — we’ve run out of money.’  It’s unfathomable for the US, as the one country that prints the world’s reserve currency, to be having statements like that emanating out of Washington.  This is truly unbelievable.

Read More Here

Now its not just China losing confidence in the US, it appears that we are the laughing stock of the world – Even here at home, even The Largest Money Manager In The World says – “I’m Much More Worried About The U.S. Now” than before.

With all the drama over the “shutdown” and the “debt debate”

Fed’s Fisher came out and said – Kiss Tapering Goodbye

When you have 87 Percent Say U.S. Heading in Wrong Direction (which by the way is a 5 year low) that speaks loudly – When Consumers’ Outlook for U.S. Economy Plunges to Two-Year Low that speaks even louder, especially as we head into the holiday season. I personally feel that this 4th quarter will be one of the worst on record – We will see how it turns out.

Back to my rant…

Do you feel your finances being pinched & squeezed? You ain’t felt nothing yet!

The IMF Lays The Groundwork For Global Wealth Confiscation The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets. Yes, you read that right. But don’t take it from me. The report itself says this…

Read More Here

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…

The Scary Chart That Has Everyone In Washington Terrified – Gold has broken through the parallel downward sloping trend lines around $1306-$1309 and a close through there would suggest the downward trend which began in August has come to an end (see insert for greater detail).

We have seen over the last decade that in the periods where Gold rallied, Silver actually outperformed. During periods where Gold prices declined, Silver did worse than Gold.  If we were in fact seeing the beginning of a long-term Gold rally, we would expect Silver to once again outperform.

We are already seeing the Gold-Silver ratio turn lower (Silver outperforming) off of the 76.4% retracement of the 2008-2011 declines.  In addition, a bearish key week reversal was posted two weeks ago off of the 50% retracement of the July-August decline.  The ratio should continue moving lower towards support around 57-58, where the pivot and 55-day moving average converge.  A break below there points to further out-performance by Silver.”

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Pento: Complete Collapse & Economic Meltdown Will Shock The World – The gradual erosion of the U.S. dollar’s status as the world’s reserve currency has been greatly hastened of late.  This is due not only to the perpetual gridlock in D.C., but also our government’s inability to articulate a strategy to deal with the staggering $126 trillion of unfunded liabilities.

Since there appears to be no political solution in sight, it is of supreme importance that investors now take steps to protect their portfolios from the de-crowning of the U.S. dollar as the world’s reserve currency.

I dramatically increased the firm’s position in gold this morning. But the massive surge the gold market is experiencing today is just the beginning of what will be a historic move.  When the US economy completely collapses, and all faith is lost in Washington, the masses will turn to gold in a way that has never been seen before in history, and this will create an upside explosion in gold that will shock the world.

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John Williams of Shadowstats: We will see the early stages of hyperinflation starting as soon as next year! – Economist John Williams says the U.S. budget and debt-ceiling circus is not the real problem. Williams contends, “The issue here, very simply, is the long term solvency of the United States of America. . .This gap based deficit is going to kill us . . . We are going to be in very serious trouble in this next year, and the global markets know this is happening.”

Williams goes on to explain, “They are not going to address the long term solvency problems of the United States. That’s going to trigger a massive decline in the dollar in the not-too-distant future, and that, in turn, will give us the early stages of hyperinflation in this next year.” Going forward from here, you’re going to generally see a weaker dollar, and it will get much weaker. You’re going to have a dollar panic, but I can’t give you the exact timing on that.”

Another potential problem is a credit downgrade of U.S. debt. Williams says, “If we get a downgrade here, that would accelerate the process of the dollar selling and moving us again into the early stages of hyperinflation.” “If your assets are denominated in dollars and Treasury bonds, those will become worthless in hyperinflation.”

Read More Here