Johnnie Ellington II September 17, 2013 at 6:04 AM

Johnnie Ellington II
September 17, 2013 at 6:04 AM ·
The report by BIS economist which has acknowledged that the only reason the financial system has continued to stay afloat since 2008 is because there has been a lot more debt created. He also went on to acknowledge that they (central planners) are running out of ammunition.
I fervently believe in Austrian economics, and under that scenario the only way the global economy can now continue moving forward is to have ever-and-ever greater debt creation in the future. But the problem is that the world can’t even service the existing debt it already has.

So the idea that the world economy can grow to any sustainable extent over the next few years is absolutely preposterous. This means there are only two possible outcomes: If it doesn’t grow and they don’t throw more and more monetary stimulus at it, we are going to have a deflationary collapse. The other outcome would mean QE-to-infinity, despite this talk of ‘taper'.

The fact that Larry Summers will not be standing for the job a head of the Fed, this has been viewed as extraordinarily good news for the stock market, which is up dramatically. This clears the way for a more wildly bullish scenario for gold and silver. So all this means is that the gold and silver prices will be greatly enhanced in the future.

Ahead of the Fed meeting this week, obviously central planners felt the need to keep the prices of gold and silver under control. Now, with the announcement of Summers stepping aside, this has caused them to throw even more ammunition at these markets, which is just setting up an even more explosive move in gold and silver.In my opinion the silver price, which as recently as 2 1/2 years ago was touching $50, will trade over $100 in a lot shorter time frame than most people realize.

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