Richard Russell: financial system destroyed.

1. Really? What does he mean?

a. Russell cites the lack of effect of QE. He believes that the FED under Janet Yellen will increase QE to stop deflation. The biggest effect of this will be on stock prices which will take off in a third and speculative wave.

b. Larry Edelson forecasts the same thing but he puts a number to his forecast: DOW 32,000.

c. Russel also notes that gold and silver are acting as if they were forming the bottom. (Lower lows. Any drop below 1,300 is greeted with massive buy orders of physical gold).

2. What are the expected consequences?

a. Russell believes that China is accumulating gold to have the Yuan become the world's reserve currency. He even reminds us that he who has the gold makes the rules.

b. I believe this will happen, because the rest of the world will not accept the idea that America live off of cheapening the value of their earnings. This will bring on financial collapse of the US. We will not be able to service our debt if the world cuts up our credit card.

c. The Obama regime counts the days until the collapse comes and it can establish a Marxist dictatorship. Ever wonder why Homeland Security has bought a billion bullets and now wants a quarter million pepper sprays?