Once the Crack-Up Boom Starts It Will Be Too Late to Get Out of Dodge.

[vc_row][vc_column][vc_video link="https://www.youtube.com/watch?v=U3ZXhCEImTk"][/vc_column][/vc_row][vc_row][vc_column][vc_column_text][/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]that they are confronted with a price revolution which will finally result in the considerable rise of all prices although the extent of this rise will not be the same in the various commodities and services these people still believe that the prices one day will drop tuesday august 31st 2021 monaco 64 home of alternative economics and contrarian views today we're gonna look at the crack up boom uh i think we're on the cusp of it and some of you might not know what a crack up boom is but i'll come to that in a minute and why am i thinking like this well for the last few years even for the last 10 12 years i've always said that the monetary policies that we're seeing fiscal policy that we're seeing from the major countries will end up in a crack up boom and i think we have symptoms of it uh in the markets in a society in politics about actually right now i've touched upon of course the fiat money inflation in france in the 1790s uh i've touched upon the weimar hyperinflation so yeah i'm gonna reference human action which is ludwig von mises magnum opus really great book it's not a book that you read over a weekend it's almost like the bible of the austrian school of economics you you reference it whenever you need a certain subject and we're gonna reference the crack up boom so uh i saw yesterday uh greg mannarino's post-market report i haven't been watching him much lately but i could see his frustration he's usually not that frustrated about what the markets do but he seems truly perplexed and shocked with what the markets are doing all-time highs all the time no correction and i think that's a symptom of the crack up boom uh the other symptom is the social political um i mean i don't have to tell you what a mess things are right now politically not only in the us but all over the world not just in afghanistan but with what's happening with uh this health crisis that we've had we're seeing things we've never seen happen during our life lifetimes and in places we would never expect to see these kinds of things and by that i'm talking about like australia and what's going on there but yesterday i saw an interesting story and talk about the pot uh calling the kettle black and i saw this headline chase bank cancels general mike flynn's credit cards and it says breaking uh chase bank cancels its credit card accounts with general flynn citing possible reputational risk when i saw that i told myself what about jpmorgan chase doesn't it have any does it have any reputation i don't think so so it just goes to show how crazy the world is i don't know too much about general flynn but i would say his reputation is a lot better than jp morgan at least he hasn't paid like let's see i i added it up over 43 billion dollars in fines so how do i know that well uh catherine austin fitz uh she provided this report in one of her salary reports it's about 20 pages long 20 pages jpmorgan chase selected legal regulatory and enforcement settlements 2002 to 2019 of course there she's missing two years now there's probably a lot a lot more added to it but uh there's uh 20 pages of all these fines that jp morgan has paid over the years and here they are saying that they have to cancel a credit card uh of a general u.s general because of reputational risk so i think that's a sign of the craziness that you get in this kind of uh cracker boom where nothing makes sense and of course greg mannarino's frustration with the stock market a few years ago the venezuelan or the caracas stock exchange was the best performing stock market in the world yet their economy uh right now is like really non-functioning almost so with that let's look at what ludwig von mises says about the crack up boom so i'll go to page 427 here uh and this this is what he says but if once public opinion is convinced that the increase in the quantity of money will continue and never come to an end well here we are uh the talk about tapering the fed's balance sheet m2 right i saw yesterday uh john paulson one of the major hedge fund managers on wall street a guy who did very well from the collapse of 08 he was talking about that that money supply this time around is growing unlike unlike it unlike in 2009 12 and 13 when they did the first batch of kiwis but let's continue and that consequently the prices of all commodities and services will not cease to rise everybody becomes eager to buy as much as possible and to restrict his cash holding to a minimum size for under these circumstances the regular costs incurred by holding cash are increased by the losses caused by the progressive fall in purchasing power the advantages of holding cash must be paid for by sacrifices which are deemed unreasonably burdensome this phenomenon was in the great european inflation of the 20s called flight into real goods or flooked in the zach verta or crack up boom or catastrophen hausa well there you go that's what it is the flight away from paper from currency into real things the mathematical economists are at a loss to comprehend the casual relation between the increase in the quantity of money and what they call velocity of circulation so the mathematical economists are the keynesians that's what uh von mises uh is talking about there the characteristic mark of this phenomenon is that the increase in the quantity of money causes a fall in the demand for money the tendency toward a fall in purchasing power as generated by the increased supply of money is intensified by the general propensity to restrict cash holdings which it brings about eventually a point is reached where the prices at which people would be prepared to part with real goods discount to such an extent the expected progress in the fall of purchasing power that nobody has a sufficient amount of cash at hand to pay them the monetary system breaks down all transactions in the money concerned sees a panic makes its purchasing power vanish altogether people return either to barter or to the use of another kind of money the course of a progressing inflation is this at the beginning the inflow of additional money makes the prices of some commodities and services rise other prices rise later the price rise affects the various commodities and services as has been shown at different dates and to a different extent the first stage of the inflationary process may last for many years while at last the prices of many goods and services are not yet adjusted to the altered money relation there are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in the considerable rise of all prices although the extent of this rise will not be the same in the various commodities and services these people still believe that the prices one day will drop well those are the central bankers and the uh mathematical economists uh on wall street city of london and the people on mainstream media right and and people like the ft wall street journal waiting for this day they restrict their purchases and concomitantly increase their cash holdings as long as such ideas are still held by public opinion it is not yet too late for the government to abandon its inflationary policy but then finally the masses wake up they become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly a breakdown occurs the crack-up boom appears everybody is anxious to swap his money against real goods no matter whether he needs them or not no matter how much money he has to pay for them within a very short time within a few weeks or even days the things which were used as money are no longer used as media of exchange they become scrap paper nobody wants to give away anything against them so as you can see it happens very quickly he was talking a matter of weeks sometimes days am i saying this is going to happen now no but i think we're getting closer and closer to it and that's why i tell people they need to be as much as possible and i realized some people can't do this out of the financial system uh the economy is not going to collapse it's the monetary financial system that will collapse yes i still have some kind of uh participation in this financial system through my mining mining stocks uh and i don't know to be honest what's gonna happen uh we've never experienced a crack up boom in the west well for almost 100 years and it was in germany of course and most people that were alive then are gone now and if they are still alive they were very young to remember much of course they remembered the aftermath which wasn't great for germany nor for europe nor for the for the world so what do i think are the uh indicators the maybe the canary and the coal mines so to speak that will tell me that this is happening well i think the crb index is a very good indicator and as you can see here we're still relatively low compared to where we were in 2008 when we had the great financial crisis we're nowhere near those highs you look at uh articles though i saw one yesterday in the daily telegraph talking about the bubbles and of course they bring up uh cryptocurrencies the stock market housing and they brought up commodities and they just touched upon a copper saying that it was a bubble but uh i think they're wrong the bubble is in paper assets the bubble is everywhere it's the crack up boom uh the bubble is in in the currency in the fiat currency and the crack up boom is when the fiat currency really just loses all its purchasing power and i think yes the crb will be key to that gold and silver are part of the crb if you remember well last year the crb went below uh the level that it had bottomed at in 2016 as you can see here in the chart so yes the catch up has been quite significant uh gold and silver looking comparing it to the major commodities in the crb haven't done well but compared to where they were at the bottom at the end of 2015 beginning of 2016 they're doing well so as von mises says some commodities move at different times so i i think as well silver will be key to to showing us there is a crack up boom silver will be a very important commodity and when silver breaks uh 30 and then 50 i think we can be almost sure that we're near a point where the masses wake up and i think they're already waking up uh there's a lot of talk of inflation these days and people are uh starting to talk a lot more about it not just the people out on the streets joe blogs or john doe but also people billionaires like john paulson so with that let's quickly look at where the markets are this morning so it's 8 24 a.m london time markets were relatively quiet yesterday of course we made new all-time highs in the stock market which is not surprising uh so we've got spot gold right now up about six dollars at 1816 range has been 18 1960 to 1808.50 silver is up 12 cents or half a percent at 24.14 range has been 23.95 to 24 22. uh the dow future is up 80. the nasdaq futures up 65 s p futures up 13 points uh the ftse is down 22 points at 71.41 uh the currencies now we're seeing uh sterling up almost 0.2 of a percent at 137.85 uh the euro is up a quarter of a percent at 118.24 dollar down slightly versus the yen at 109. 82 and the dollar uh drifting lower continues to drift lower versus the u1 it's at 645.78 aussie dollar up half a percent at 73.32 uh the dollars down 0.2 of a percent versus the canadian dollar at 125.85 and the new zealand dollar the kiwi dollar is up quite significantly almost one percent at 70 60. wti crude is trading at 69. so that's down slightly just like an eighth of a percent so i think recently we got down to like 63 so crude is uh catching or rebounding very quickly and that's why i think the crb is going to continue to move higher we are almost near recent highs in the crb so we've got high grade copper up slightly at 437.55 some someone was looking at natural gas i haven't followed natural gas that much but natural gas has been going up quite significantly as you can see here natural gas was trading at i think it's a dollar fifty it's denominated in uh a dollar fifty and uh recently it touched 450. so a dollar fifty is where it was last year when we had the implosion in in all markets so that's also looking quite uh bullish a natural gas even though it's not a market that i follow that much it's a very volatile market but that's another sign there of in my opinion the approach of the crack up boom so if you enjoyed this video make sure you hit the like button please share it far and wide think about subscribing to my channel if you haven't yet and you can also follow me on rambo twitter facebook and all these other platforms below here i wish you all a great day take care bye<br><!-- 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Once the Crack-Up Boom Starts It Will Be Too Late to Get Out of Dodge.

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