The Reset Has Already Begun -- By Bill Holter

[UNEEK]

I would really appreciate some feed back from the members here on this article -- Your breakdown in layman's terms of what is stated and then your educated opinion  - What does it all mean exactly and what "could" happen  --  I know it is a lot to read - but how else are you going to ever know anything if you don't read???  Thanks  in advance for those that are willing to read and comment  -- UNEEK 

 

 

THE RESET HAS ALREADY BEGUN!    Author : Bill Holter

Published: January 19th, 2015

 

For several years there has been talk of a financial and economic “re set” coming, this is no longer speculation as the reset has already begun!  The Swiss have suppressed the price of their currency, the franc, since late 2011.  They pegged the franc versus the euro with a “floor” versus the euro at 1.20. 

 

After confirming this floor publicly on Monday, they abandoned it Thursday only to see the euro depreciate through the par level.  What you saw on Thursday and Friday was the work of Mother Nature as the Swiss decided they would be better served by no longer battling her.

 

The ramifications of this move by the Swiss are almost infinite when you consider the chain reactions they have now started.  Several large FOREX firms including the largest retail firm in the U.S., FXCM, were rendered bankrupt overnight.  Even Goldman Sachs and Citi admitted to being offside and sustained large losses.  As of right now, we have no idea who “won” and who “lost”, nor do we know “how much?” 

 

We heard almost nothing from Swiss or European banks on Friday, “who what and how much?” will begin to surface this coming week.  As I have written for years now, if the loser goes bankrupt, the winner does not get paid…thus turning the winner into a loser.  This is a very big problem the markets ignored on Friday but will not be able to ignore as the dead bodies begin to surface.

 

Think about this point very seriously, many investors (and firms) went to bed Wednesday evening with no stress at all on their portfolios (or their business), in just five minutes Thursday morning they were insolvent.  Just FIVE MINUTES!  We are only talking about “investments” here, how many other real businesses in the import and export area are now broke? 

 

Broke because they hold euros but need francs or they export from Switzerland or import to Europe and now their business model makes no sense?  How is this even possible in just five minutes time?

 

Another aspect to what and how the Swiss moved on Thursday is that of “central banks” themselves.  Did the Swiss not know they were going to float the franc on Monday when they confirmed the peg publicly? 

 

Did they or did they not inform the IMF prior their actions?  What about the BIS which is headquartered within their borders in Basel, surely they tipped them off?  Christine LaGarde claimed in an interview with CNBC that she had no prior notice, really?

 

 If this is true then it shows the Swiss central bank has moved in an “every man for himself” type of action.  It also shows the “united front” of central banks is not so “united” anymore!  If Ms. LaGarde is not telling the truth and in fact the IMF did have prior knowledge, what would this mean?

 

 It would mean the central banks are finally losing control of the rig.  It would also mean the central banks have distorted currencies, interest rates etc. so badly that once Mother Nature takes over, we can expect repeat performances all over the world and amongst all assets and currencies.  How can I say this?

 

 I would simply ask if it is “normal” for two trading currencies to revalue 30% in five minutes or if it is not normal, what was the cause?  We of course know, the cause was the actions of the ECB and SNB over these last three+ years.

 

We have already speculated the Swiss made this move for one of two reasons.  First, they may have decided the amount of euros necessary to purchase (and thus the amount of francs created) will go exponential this coming week when the ECB goes full on QE (printing). 

 

We also know that euros already make up more than half of their balance sheet.  The other possibility is they know the Greek election is coming up, (the Greek banks are already experiencing bank runs) and they see the very real possibility of the Eurozone fracturing or even dissolving. 

 

Another possibility is maybe they just decided “their first loss is their best loss”?  Maybe they have watched as the core of Europe has asked for their gold back and understand that “trust” amongst central bankers is waning? 

 

Maybe they simply decided to front run the obvious and necessary re set and do it on their own terms?  It is very hard to say what exactly the motivation was, the important thing to understand is their action has started a re set in motion which will not be stopped!  In plain English, the Swiss just yelled FIRE …while standing in the exit!

 

I have several other questions but first I want to point out the obvious.  Oil was cut in more than half in dollars over 6 months, could you say the price of oil was “re set”?  How about copper?  How about other foreign currencies?  Could the huge moves in so many assets qualify as being “re set”? 

 

The collapse in oil and copper prices are black swans pointing to a rapidly slowing global economy.  The Swiss removing their currency peg is another black swan event and in reaction to the ECB moving toward hyperinflating their currency.

 

My biggest question now is this, what will happen when China allows their currency to float?  The Swiss are one thing, China is whole different story!  Think of the ramifications when it comes to trade? 

 

Another, maybe even more important question is what will happen when the Chinese “force” the price of gold and silver to trade freely?  Let me explain this further.  The Chinese know full well that gold IS money, otherwise they would not have spent the last several years buying almost every single ounce that came from the ground.  They know it is artificially priced by New York and London. 

 

They can “float” gold in several manners.  First, they can simply bust the COMEX and LBMA by bidding for and purchasing both their entire inventories within a 24 hour window.  Another possibility would be to simply put out a “global bid” and state some price (much higher than current) they are willing to buy any and all gold, presto, COMEX and LBMA would be busted without them doing it directly!

 

I recently wrote of a “Global Margin Call” where because oil and other assets, currencies, etc. have moved so rapidly, many derivatives traders have surely been thrown “offside”.  This move by the Swiss is nothing different except it was done “officially”. 

 

Actually, the funny thing is they moved to suspend what they were “officially” (and artificially!) doing.  The move by the Swiss has only made the global margin call that much bigger!  The global re set which was already in the works is now publicly and officially happening before your very eyes. 

 

You can close your eyes or not believe this fact, it will not make it go away, nor will it insulate you financially from what is coming.

 

To finish, and I plan to follow up maybe even tomorrow, the most important re set will be that of gold and silver prices.  I say “most important” because these are the only “tools” available to you as an individual to protect your wealth. 

 

If the Swiss franc and the euro can change in value by 30% within five minutes, what do you think the revaluation of gold and silver will be when the 100 ounces of “paper metal” come looking for the real thing?  At what price will the market clear?  Add a zero?  Two zero’s?

 

 Please understand this, when the margin call is issued worldwide, there is only one money where the call will work in reverse, precious metals.  The “call” will be for real, yet non existent metal. 

 

Gold had already sniffed this margin call and re set out a couple of months ago.  No matter how much paper was thrown at it, it simply stopped going down.  Even while the dollar strengthened synthetically, gold went higher versus the dollar. 

Gold has clearly been THE best money, what do you think will happen to real metal when it turns out that 99% of the supposed global supply is proven as counterfeit?

 

We will soon witness the greatest margin call in all of history.  We will also witness the greatest transfer of wealth and re set in all of history!  My only question is whether what so far has been “rolling re sets” becomes an official market/bank/finance closure and announced …or, do the markets continue to trade and force re sets in market after market.

 

As an additional note, we have one last question to ponder which may or may not be connected.  Koos Jansen put forth a “mystery guest’s” theory that the Swiss went short gold in Sept. 2011 which marked the top in gold.  He asks in the following link, “did Switzerland just cover their short“?

 

https://www.bullionstar.com/blog/koos-jansen/guest-post-i-have-a-theory-on-the-swiss-franc/

 

I believe there may be some credence to this theory but would go one step further.  Zerohedge asks the question and speculates Japan may be the next “Switzerland” and pull the plug on Abenomics. 

 

Personally I see it a little differently, more importantly, what if the Chinese were to react to the coming QE4 by doing two things?  What if China just walked away and sold their dollar holdings …and at the same time revoked their current peg of the yuan to the dollar? 

 

Will China some day ratio back their yuan with gold?  I think this is likely.  Would the dollar collapse 30%  like the euro just did versus the franc or will the re set be much larger? 

 

Of course the next question would be “how high would gold be marked up”?  An unpegging of the yuan by China would be more important and (current) system ending than nearly anything else I can imagine.  For China to break their peg, the paper short positions in gold and silver would finally be exposed for what they are, counterfeits!

 

Regards,  Bill Holter

 

BILL HOLTER, Associate Writer, Miles Franklin Precious Metal Specialists Website: www.milesfranklin.com

 

Prior to joining Miles Franklin in 2012, Bill Holter Worked as a retail stockbroker for 23 years, including 12 as a branch manager at A.G. Edwards.  Later, he left Wall Street to avoid potential liabilities related to management of paper assets.  In 2006 he retired and moved to Costa Rica where he lived until 2011 when he moved back to the United States.  Bill was a well-known contributor to the Gold Anti-Trust Action Committee (GATA)

 

 

http://blog.milesfranklin.com/the-reset-has-already-begun

[Texstorm]

I'm sorry Uneek but I don't believe in the prosperity packages , global reset or Okie and the red dragon family. Really they can't even keep I-45 open in the morning heading to Houston and they are all going the same way........So for the world to come together and harmoniously agree on a global reset , I'm not buying into that. Thanks Uneek ! 

[ReVbo]

This guy isn't talking about a Global Currency Reset like Dinarland gurus pitch. He's talking about a series of uncoordinated moves, by various central banks, that accomplishes something similar, but unpredictable, as a coordinated reset would not, theoretically be, Tex. He's saying the Swiss took the first move, but we should expect others, and the de-pegging of the yuan to the dollar would be the biggest move we could possibly see. Peter Schiff has a piece out today saying very similar stuff. Iraq, in this case, would be just one in a long line of countries de-pegging from the dollar, and whoever moves first moves best because any central bank holding dollars, when everyone else is de-pegging from the dollar, will see its reserves devalued. 

[UNEEK]

Texstorm -- Hey I read about that  1-45 incident --    Thanks for sharing your thoughts -- I kinda knew where you stood as I have read your comments on other posts --  Hoping some others will  add to the thread -- a lot is happening  and all over --   it is like a huge Chess game with multiple players - they are all making their "moves" and they can & do have  the potential to put another in a "check" position --   Power Plays  -- So  who is  really winning here?

 

It also  feels like playing  Russian Roulette  -- Almost everyone and everything  is affected by the  money  and / or the trade-able "goods" --  It seems no one is playing nice anymore -- so I was just wondering what others felt could possibly happen   and what they felt most likely would happen --  -- If that is even possible to know -  since everything has a domino or ripple  effect on something else -   There just may be too many factors and scenarios for any of us to know  and  be able to prepare for -  

 

I am definitely feeling somewhat confused about how to protect my finances  and I do not have a lot of trust in the banks -- I will admit that every now &  then feeling  a little dishearten about an RV  with all the  turmoil all around us -- 

 

I  can see why it did not happen 6 yrs ago when I first bought into the idea - but  I do feel some good chances did bypass us since then -   Now it seems the most hoped for  but maybe the most unlikely or worst conditions for it to happen --  I hear and read all day long both strong pro & con opinions  -- Nothing as of yet has influenced me to sell out -  I am still positive and hoping --   UNEEK

[temperament5]

 Uneek,

 

There is a lot of information out there on what many believe will happen to our economy sooner rather than later.  A really good book to read is Aftershock by David Weidemer about what will happen when the bubble pops (eventually it will) and what to do to prepare.  Also, the Economist Harry S. Dent Jr. even though he is from a different school of thought as to why our economy will implode he still believes it will and he has some really good information on how to protect your assets.

 

You are right, do not trust the banks!!!

[UNEEK]

Revbo -- thanks for chiming in -- I value your input  and I do read & listen to Peter Schiff from time to time -- I will look for the piece -- I guess I am just a little anxious  to know the outcome before  it happens  since I am unable to connect the dots like you and many others are able to  do --  lol   Thanks Revbo  +1

[Saint]

[ReVbo]

Revbo -- thanks for chiming in -- I value your input  and I do read & listen to Peter Schiff from time to time -- I will look for the piece -- I guess I am just a little anxious  to know the outcome before  it happens  since I am unable to connect the dots like you and many others are able to  do --  lol   Thanks Revbo  +1

 

Both of them are kinda saying the same thing. It's every man for himself, now, and I wouldn't want to be one holding piles of dollars when it's all over. That's about as close as you're going to get to knowing how it all shakes out, though, as far as I can tell. 

[UNEEK]

Temperment5 -- thanks for your input -- both of those names are new to me -- I will make note -- I have ordered a couple  and I am reading something somewhere all day long everyday -- there is, just like you said, so much info out there available for those who do  want to get more educated  & informed -- I just wish I could have started that process in economics about 20 yrs ago lol 

[Jim1cor13]

The financial confusion happening the last 6 years serves a purpose

in the big scheme of things. It would be wonderful to have a 'reset' of

global debt, if we were commited to changing the way money works,

but no matter what the money prophets do, it will always be what

benefits them first, and all they have had to offer society has been

debt and more debt. Unless that changes, and usury stops, any

benefit derived by each of us would be temporary as corruption and

greed would still be the order of the day.

 

it would be great to see a jubilee of sorts but debt is a killer and

deeper systemic changes must happen else we go right back to

bondage, under very harsh task masters.

 

Thanks UNEEK

Edited January 20, 2015 by Jim1cor13

[UNEEK]

Jim -- Thanks for your input -- I understand your thoughts completely and  agree --   The 1%   owns  50 % of the wealth now and that is predicted to rise -  and we know if we follow the money   we find those that control --  changing that scenario -- changing that from the  inside out -- is highly unlikely  IMHO --- things have gone much  too far for too long --  

 

You mentioned debt --  it is shocking to read that kids are over their heads in debt before they even begin their careers -  They start out poorer than their parents --  working hard   to just thrive  -  I dont see the debt  our government has  ever being  paid down to a decent amount -  they just keep raising their  budget ceiling  -- I don't see the "system" changing  --  do you think it possible?

 

The only thing we can do is to safeguard ourselves -- that is where I am  turning my focus -  I read a lot about off shore banking   but  that does feel risky to a degree as well -- It may be just a mind thing - but not being easily, physically" accessible, is still uncomfortable --   Maybe the thought process could be adjusted a little about the banks --  If they so choose to keep  or freeze my funds - being 1 mile away  as opposed to 2000 miles wouldn't really make any difference would it?  -- lol -- 

[Jim1cor13]

Jim -- Thanks for your input -- I understand your thoughts completely and  agree --   The 1%   owns  50 % of the wealth now and that is predicted to rise -  and we know if we follow the money   we find those that control --  changing that scenario -- changing that from the  inside out -- is highly unlikely  IMHO --- things have gone much  too far for too long --  

 

You mentioned debt --  it is shocking to read that kids are over their heads in debt before they even begin their careers -  They start out poorer than their parents --  working hard   to just thrive  -  I dont see the debt  our government has  ever being  paid down to a decent amount -  they just keep raising their  budget ceiling  -- I don't see the "system" changing  --  do you think it possible?

 

The only thing we can do is to safeguard ourselves -- that is where I am  turning my focus -  I read a lot about off shore banking   but  that does feel risky to a degree as well -- It may be just a mind thing - but not being easily, physically" accessible, is still uncomfortable --   Maybe the thought process could be adjusted a little about the banks --  If they so choose to keep  or freeze my funds - being 1 mile away  as opposed to 2000 miles wouldn't really make any difference would it?  -- lol -- 

 

Thank you UNEEK for your thoughts. Can the system change? Only way for it to truly

change is changing the way money works. Is that likely? No, because we seem to be

quite comfortable to allow bank crime and illegal usury to be charged us as long as we

get what we want, and only when we begin to reject selfishness and stop honoring the

theft, will it have a chance to change. I think most folks would want change and be willing

to make adjustments on a broad scale to starve the system, but it has been around since

1913, and has its wreckage strewn all across this country.

 

Central banks are evil, not the people, it is the structure that is evil. You cannot create wealth

out of nothing, and then charge interest on it. Government should be able to print their own

money, balanced along with GDP (gross domestic product) so as not to over extend, but

our government has been out of control for so many decades, the budget is far too large to

handle. You are correct, current debt cannot be paid back...ever, it is mathematically impossible

at this stage on a global basis. Add to it OTC derivatives, swaps, etc., and the amount is

about 800 trillion + and that will likely lead us in the years to come with some manner of

reset, but keep in mind unless the people who control the system are stopped, we will

never have anything BUT a debt based system.

 

The amount of debt kids are having to enter into is insanity. Kids do not have to go to

college in order to achieve wealth or job security, that has always been little more than

yet another debt based agenda. Don't get me wrong, there are good schools, but most

are not worth going into the kind of debt they demand, tuitions and schools are just as

greedy as the banking industry, and this must be considered before one blindly sends off

there child to college. it is not right for them to carry this kind of debt, in most cases, at

such a young age. the student loan fiasco is well over a trillion$$$, and it is in serious trouble.

what kids need to do is pay attention to their talents, and learn to utilize them and do the work

necessary to earn a good living, while enjoying their job. Being willing to work different jobs

until that opportunity arises is also healthy and teaches them a good work ethic, hopefully.

 

We are all being set up for accepting a new type of order, at first it will look quite appealing,

but always remember, it will cost everyone something, either now or down the road financially,

and at first will likely even offer relief...only for a short time. Until the current controlling groups

are stopped and kicked out, I do not see any quality change unfortunately. There can truly be

no such thing as infinite growth...that is part of the mind set and problem that has pushed the

system far over the edge.

Keeping all ones money at a bank is not prudent at all, not in this current

shaky system. Only enough to cover monthly bills, the rest, if any is left over,

should be within your access at either ones home, or some safe secure location

that you can get it at hand quickly. the next bank failure will result in bank 'bail ins'

and that is confiscating deposits, while getting in exhange some sort of security,

such as bank stock   Can you imagine the value of that stock knowing the bank

had to steal deposits just to stay solvent???

[UNEEK]

 Jim -- thanks again for a great read -- I understand about the debt and its growth over the years to an impossible -  incurable  healing  status unless it is from the inside out -- This situation can so easily be compared to our health --  We can greatly influence our future well being by the choices - decisions and habits  in our younger years -

 

If we use tobacco, alcohol,  drugs , and have poor eating habits  etc we are increasing our chances of serious health issues and a shorter life span --   We spend and spend and spend our health   and then wind up spending any and all wealth hoping to get it back --   We do not want to change our ways --  we do not want to give up the life style -- 

 

Just like the over extended financial debt -- many over indulge in  unhealthy choices ----- until ........  high blood pressure - diabetes - stroke - heart attack - or cancer manifests -  only then do they think about a "fix" 

 

People are so spoiled  and naive too -- They want instant gratification - they want to just take a pill  and continue with their same habits - They treat the symptoms instead of working on a cure -

 

Just like the financial debt -- instead of a cure -  just raise the taxes or create new ones - print money -  so the spending  can continue without skipping a beat - and worse maybe - some people  just file bankruptcy   and surrender their homes back to the bank - which these actions have a  negative ripple effect on  the economy 

 

The system has morphed into a beast  and I do not see an easy  cure in sight  and like you said -- until we stop feeding it  - it will continue growing -- A person weighing 700 lbs is not going to be at 150 over night  or even  a year --  

 

I sure would like to see & hear some encouraging actions taking place  -- It still boggles my mind that it has so successfully continued out of control for so many years -  UNEEK

 

[pattyangel]

Uneek, our member "The Machine" brings great information over on the Gold and Precious metal subject.  Temperament5 suggested two great authors, both excellent. 

 

Just read, and try not to make it complicated. It can be over whelming, just break from it and absorb what you've read. 

I have to agree with you in not trusting the banks, just keep enough in there to pay you bills.  Always keep some on hand.  If and when this RV, be ready to invest and let your money work for you.  Invest in gold/silver. Silver is affordable.   Something my husband and I have been doing.  Let me tell you, it has saved us from some trying times. 

[UNEEK]

Hey Patty - nice to see you again -- yes the Machine is awesome -- he is so smart -- like I said earlier -- I wish I would have started my  economics schooling 20 yrs ago -  but I took a different direction - I made  money  but  did not  learn how to multiply or protect what I made -- It seems I always made just enough to get by -- ( but not really even that)  even working hard that was still about the best I could do --   My thinking is to put more blame on "the system"   lol --  but seriously -- I am taking a positive assertive  direction on more protection  -- I have been buying silver for a long time in small  amounts - 

 

I am not looking to live an outlandish luxurious  lifestyle  --  I just want a nice new house and a new car --  and the  rest to help others -- and the  animals -- love the  animals !!!

[Boss hog 1]

Well said

[blueskyline]

  Costa Rica will allow the value of its currency, the colon, to float against the U.S. dollar after decades of gradually reduced brakes on its volatility, the country’s central bank announced Saturday.

Costa Rica implemented a “currency band” in October 2006 after 22 years of small devaluations. The band limited the colon’s value to a range of 500 to 866 per dollar.
Central Bank President Olivier Castro said at a news conference in San Jose on Saturday that under the new system authorities will only intervene when the colon experiences “abnormal fluctuations.”
“This strategy will allow a greater flexibility in the exchange rate,” Castro said. “The macroeconomic conditions are adequate for this migration.”
Costa Rica’s colon has fallen 4.6 percent against the dollar in the past 12 months to 536 on Friday, as Castro said the currency has been in “de facto float” for a year. The bank sold about $2.8 million this year to stabilize the colon.
Costa Rica’s economy will expand 3.4 percent this year and 4.1 percent in 2016, Castro said. The bank will maintain its inflation target between 3 percent and 5 percent for the next two years, he said.
http://www.bloomberg...-releases-brake
Looks like the CBI is not the only Central Bank thats been busy lately. 

Edited

Read more: http://dinarvets.com/forums/index.php?/topic/195990-costa-rican-colon-to-float-against-dollar-as-bank-releases-brake/#ixzz3Qaxjp6Et   Thanks Wiljor. I brought this over from the Foreign Currency Section .

[sxsess]

Whatever happens, its not going to be good for global currencies. Particularly the USD that is a fact! I'm currently pulling my gold & silver holdings from my IRA's to hold it physically, because when something like this happens my gold/silver will be in my hands and not the governments.