From Bill Holder for GATA on Oct. 25They can't see it?
To all; as the title implies, I just don't understand how ANYONE "can't see it". "It" being the most blatant and obvious fact that the world's monetary and financial system is flat assed broke! Europe is absolute toast, fair value on Greek bonds is less than 50% of par value and everyone knows it. Their banks are insolvent even without any haircut from Greek holdings and everyone knows this. Italy, Portugal and Spain are all beyond fiscal sanity or repair and this also passes as common knowledge. The real estate markets are deflating across Europe (and the entire globe) after previously being blown to huge overvaluation levels with the help (prodding) of European banks and this is also widely known. The European Central Bank does not have enough money, muscle, options (or even competent leaders it seems) to even flatten out the path much less pull out of it's nosedive and even mainstream media is reporting on this. If you add these "well knowns" together then you can logically make the leap that the Euro currency is done, it's life ended and will be replaced.
Then you "cross the pond" to the U.S.A. and guess what? Same thing! The banks are insolvent if they actually marked assets to market, everyone knows this.
Municipalities and States are fiscal beggars on their way to bankruptcy courts and this is already widely known and visible in the last couple of weeks with the first actual filings. Next you turn your eyes to Uncle Sam and his finances, yep another deadbeat here and even the "hometeam" rating's services have taken notice of this. You could do a poll from any inner city to remote corner of the country and EVERYONE knows deep down that the U.S. is financially (and morally) broke beyond any repair. EVERYONE knowa that EVERYTHING is broke, busted and insolvent!
So what is my point? My point is this, THIS is how every financial panic in all of history has happened. THIS is how the children's tale of "The King with no clothes" was penned. So if everyone knows that everything is broke then why do hear on CNBC et al that "we can work our way through this and muddle along"? Because as Jack Nicholson said in A Few Good Men, "you can't handle the truth!". This has to be it. I cannot think of anything else because to me it has been MORE THAN obvious for quite some time. I have heard plumbers, farmers, bankers, real estate agents, city workers, you name it, tell me that "the government is broke" yet when I ask "what are you doing about it?", they say, Ï have my money in an FDIC insured bank account". Yes, some are now getting around to buying some physical Gold and Silver but mostly because "they are going up". The point is this, people "know" but they just can't make the leap to acting on what they know.
I believe that this phenomenon along with "you can't handle the truth" is a function of very long term brainwashing and "false education", it must be. Using ANY logic at all would lead you to "pull" as much of your investable assets OUT of the system. "Out" meaning out and away from the obvious damage that the broken fiat system will inflict. "OUT" meaning into physical metals and assets, OUT meaning into the companies that produce these physical metals and assets. To me, it is so, so sad to see people who have worked, lived and saved their entire lives within this fiat system like "good little boys and girls", about to get completely wiped out. When I say "wiped out", I mean penniless!
Think about it, everything, and I do mean EVERYTHING within the current fiat, paper, fraudulent system is going to be valued at what it is truly worth...ZERO. If you can wrap your head around this (admit it to yourself), you can act accordingly. The day is coming when EVERYTHING "paper" is going to stop. Banks will not open, credit cards not function, (I believe physical Dollars will actually spend for anywhere from 2-10 days until they too become unacceptable) and the entire system will sieze up and into a barter society until a NEW and "acceptable" (from a confidence standpoint) is issued and circulated.
We are very, very close as there are now calls for a new "World Central Bank". This has been floated in recent days by none other that The Vatican. I do not want to get into religion here, I bring this up because there is very credible evidence that The Vatican accumulated massive amounts of Gold during and especially toward the end of WWII. It is possible that they are actually the largest holders of Gold in the world. I mention this because any new currency MUST have some tie to Gold and the limited Gold that is above ground MUST be revalued higher as there is not enough at current prices to support a 7 Billion person global economy...but I digressed didn't I? Long story short... how can anyone not see what is about to happen? The whole fiat episode is like your crazy Aunt in the basement, everyone knows she is there but no one is willing to talk about it. Those who do are branded as crazy and no one wants to believe it anyway. Regards, Bill H. P.S. maybe there are a few more investors who "do see it", Gold is up nearly 3% today and thus violating it's decade+ long 2% collar!