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Credit Rating Mirages & Sovereign Illusion Defaults: Where to Perch?
These inescapable market facts plus the Consumer Price Index and Producer Price Index make clear the quasi private Federal Reserve System and US Treasury have failed their chartered duty and moral authority to maintain stability in the currency and markets. As Jefferson warned, central banks expanded and contracted money and markets with growing deficits and usury driven debt and dollar defaults. They were aided and abetted by Shadow Banks now going out of business.
Bailouts, Reagan Plunge Protection Teams or Bush Super Liquidity Programs to stem the tide may inevitably fail if our leaders do not respect individual liberties and free markets.
There are mountains and millennia of evidence showing central command economies fail.
It is the job of Congress and the President as our elected representatives to correct this failure to govern according to our Constitution. Previous Presidents including Jackson, Lincoln, Wilson and Kennedy, attempted to free America from what they called The Money Trust. They died trying.
The International Money Trust created a web of entities designed to avoid a day of reckoning. Buyer beware. Some Exchange Traded Fund ETFs may be presumed to hold commodities, copper, gold, platinum or silver when they do not, preferring the liquidity of commodity derivatives which are much more volatile. Some highly leveraged ETFs show daily volatility effects that may drive their prices toward zero in the long-term.
Exchange traded commodities and metals do not have the underlying amounts of commodities available. They may be forced to abrogate increasing physical delivery requests in favor of cash settlement. Then their prices may not reflect the true free market demand and supply. What a tangled web we weave if first we practice to deceive.
Already cash physical coin markets went up to 100% premiums with backwardization (higher now and lower in the future) due to physical shortages. As the Treasury stopped redeeming gold and silver certificates, the US Mint stopped making copper, gold, platinum and silver coins and they went to a scarcity premium. Now the stage is set for a resumption in minting them.
So now we have the task of comprehending this: While most feelings are bullish on precious metals and bearish on dollars, dollars may rise and metals may fall, at least for awhile. It may have to do with the fact that the largest debt markets are seeing a flight beyond quality to solvency.
