Historic Move By The US Has Just Guaranteed Hyperinflation

"Today James Turk spoke with King World News about a historic event which has just taken place in the United States. Turk states that this situation is not being accurately reported in the mainstream media. He also believes that because of this unfolding drama, “It is all but certain now that the dollar is headed for hyperinflation.” Here is what Turk had to say: “The huge bases in gold and silver are getting bigger, which is very positive, Eric. The only thing the drop in price over the last few days has done is set up a retest of this significant and growing support.”

James Turk continues:

“We are seeing just another example of how the central planners intervene in the precious metal markets by selling paper to drive the price down during month-end option expiry. This maneuver maximizes the profit for their agents - those bullion banks facilitating the gold price suppression scheme – so that the calls they've sold to investors and financial institutions expire out of the money. It also ensures that as many call buyers as possible lose money, which helps the central planners foster a negative sentiment for the precious metals.

We have seen this time and again, Eric. Contributing to the manipulation is the FOMC meeting this week, during which the central planners like to put a lid on gold and silver prices while they announce their new money printing schemes. And then watch out for Friday when the unemployment report is released, usually a time of wide price swings aimed to trigger stops. None of this is new. But there is something new and important happening in Washington DC....

“The politicians have finally done it, Eric. The House passed a debt ceiling bill that throws away the last semblance of any discipline on federal spending. It is now all but certain now that the dollar is headed for hyperinflation, assuming the Senate and then the President go along with the measure passed by the House a few days ago, and the indications are that they will.

Because the federal government is running an operating deficit, it needs to borrow dollars. So the federal government needs the debt ceiling to be raised periodically to enable it to keep borrowing. The federal government reached the current $16.4 trillion debt ceiling a few weeks ago.

The mainstream media reported that the House has now extended the debt ceiling to May 19th. But that is not accurate. What the House actually did is suspend it. Bloomberg accurately reported that the House acted to “temporarily suspend” the debt ceiling.

In other words, the House is proposing to eliminate the debt ceiling, meaning that there will be no limit on what the federal government can spend until May 19th when the debt ceiling must again be considered.

But here's the really important point: These two words used by Bloomberg in reporting this event - temporarily suspend - are chilling, Eric. These are the exact same two words that Nixon used in his August 15, 1971 speech announcing that he was breaking the dollar's link to gold.

His temporary suspension has now lasted 42 years, which is the key point I am making here. T his suspension of the debt ceiling is not going to be temporary. Each time it comes up for consideration, the politicians will just keep extending the suspension again and again. They will always take the soft political option.

When Nixon broke the dollar's formal link to gold, he removed the constitutional check on the power of the government to inflate the dollar, sending the US government over the fiscal cliff. Nixon’s action in 1971 has directly led to the financial mess the US is now in. However, the debt ceiling still provided some constraint..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/28_Historic_Move_By_The_US_Has_Just_Guaranteed_Hyperinflation.html