kingworldnews.com / February 26, 2013
Today Ben Davies sent King World News exclusivey an absolutely brilliant piece which featured 5 tremendous charts from this extraorindary work. Davies writes:
“The collapse of an old monetary system and its social order will momentarily may well give way to anarchic and chaotic behaviour … A singular event such as anarchy will be mirrored by order. One money will be dead the other alive … The growth rate of this awareness will become exponential and equal and opposite to the exponential demise of the fiat currency system. The more awareness grows the faster the discarding of paper money occurs … The inverse function of this paper demise is the commensurate rise in the gold price, as we have depicted. This process of destruction will seem almost imperceptible, but when we hit the “knee of the curve” in monetary failure and gold succession, the perception will seem immediate.”
February 26 (King World News) - In the “Central Bank Revolution I,” we depicted how a new mode of monetary policy has been adopted by developed world central banks. Their new policy adoption is more of the same – that inflationist drug of bank reserve creation, only this time with heightened potency.
In this piece, the “Central Bank Revolution II – Chasing the Dragon,” we illustrate how the effects of central bank monetary policy, today, have already distorted the term structure so monstrously that assets have been driven to yields more akin to those of holding money. The yield grab has extended into riskier and riskier assets and structures, resulting in a diminished return profile that is not compensated for by the falling credit quality, and the heightened duration risk. The stage has been set for capital losses, as once again investors indulge in levered products, with suspect collateral value, and invest in plain vanilla assets with no margin of safety….