The annual Fed symposium, beginning today in Jackson Hole, is just another act in a sick play created to dupe investors into taking their eye off the pea in a shell game. Lower interest rates have not been used by corporations to increase production, employment, or sales. Instead, public corporations have freely used the cheap money made available by the Fed to buy back stock, giving an artificial lift to stock prices and lining the pockets of shareholders and especially increase-incentivized executives. But it translates to absolutely nothing of real value for the global economic community. And the verbal vacillation provided by the Fed regarding an interest rate increase is the only activity generating movement for an otherwise catatonic economy and market.
Besides the overwhelming lack of efficient use by corporations to make use of the Fed’s cheap money for expansion or other growth-oriented functions, global financial conditions have deteriorated to the point where companies and even countries (i.e. Deutsche Bank and Venezuela) are on the verge of collapse and not a word of concern has been spoken by our typically loquacious Fed. Instead they refer to trumped up economic data that would have some believe we’re on the road to economic recovery. Nothing could be further from the truth.
With an ever increasing number of countries joining the negative interest parade, a growing list of companies and countries ready to go belly up, and the Chinese Yuan about to join the International Monetary Fund’s (IMF) basket of acceptable global reserve currencies, the global stage is set for an economic collapse of epic proportions. And the greatest threat that absolutely no one is talking about is the back room discussions at the IMF regarding the outright replacement of the entire basket of global reserve currencies with one single IMF-sponsored World Currency.
The Fed’s not talking about it, because it could literally happen overnight and the ramifications could be immediate and nothing short of catastrophic. Having driven down this low interest highway for far too long, the Fed has no option at this point, except to hope for exactly that, a quick and complete economic collapse. No time for panic. No time for finger-pointing. Just enough time to gather a few things before the whole economic ship sinks in the blink of an eye. If you’re keeping your eye on the pea, you’ll see that one of the best decisions at this point is to enlist the safety and security provided by precious metals for millennia, by getting out of the market and into physical precious metals.