John Rubino: A sudden worldwide currency revaluation is imminent

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DrKrbyLuv's picture
DrKrbyLuv
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John Rubino: A sudden worldwide currency revaluation is imminent

In his new essay, "A Tremendous Secret," financial writer John A. Rubino, co-author with GoldMoney's James Turk of "The Coming Collapse of the Dollar," foresees an imminent worldwide currency revaluation (from GATA). 

John Robino, Kitco -  Last week FOFOA posted a long article on the coming devaluation of the dollar and how it might play out. He thinks it will be sprung on us without warning -- sooner rather than later:

The point is that during times of transition, surprises are always the order of the day. We have a crazy-out-of-control government that has given in to the temptation of printing its way out of this mess. The deflationists view this as an exercise in futility, while the inflationists say that you cannot print these amounts of dollars without it affecting the markets sooner or later. 

Call me contrarian, but I say that when the rubber band breaks this time it will snap back with a speed and fury that will make your head spin. In fact, I think that the longer this drags out (and I'm only talking weeks and months now), the more abrupt the correction will be.

Both the 38 year timeline and the 96 year timeline have created an imbalance in the fractional reserve system that has gone parabolic in the last decade. I am talking about gold. No, the price of gold has not gone parabolic, but the ratio of available gold to outstanding paper currency HAS gone parabolic. The central banks of the world are well aware of this. It is why they have slowly, inconspicuously changed from net sellers into net buyers. This gradual shift is extremely significant, because as net sellers they were supporting their own fiat regime. But now as net buyers, they, as a group, are stressing it. Why would they do this unless they knew it was about to reset?

This fractional gold reserve imbalance is the one imbalance the media and governments do not want you to know about. This is the one that will RESET the entire system. This imbalance, once corrected, will make central bank fiat currencies sustainable once again. This is why they are net buyers!

Do I think this magnitude of a reset could happen overnight? Yes, I do. Why? Because that is the way you get the most "bang for your buck". Surprise is the order of the day! "Devaluations always happen by complete surprise as to exert maximum leverage effect." 

  1. FOFOA is right that the world’s governments stand to gain most from  a surprise devaluation, since it will prevent us commoners from preemptively swapping our paper for real things, setting off an inflation that would make an even deeper devaluation necessary.

    There's a rumor that I was reluctant to mention when it first started circulating, because it seemed a little too far down the tin foil hat / black helicopter road. But in this context it seems pretty reasonable. According to widely-followed newsletter writers Harry Schultz and Bob Chapman:

    ”Some US embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of US cash to purchase currencies from those govts, quietly. But not £’s. Inside the State Dept there is a sense of sadness & foreboding that ‘something’ is about to happen, unknown re a date—just that within 180 days, but could be 120-150 days.”

    Bob quotes another source that “Panasonic has told their people to be back in Japan by Sept 09.”

    Harry Schultz’s remarkable take on the situation:

    “My HSL suspicion is that the elite plan another FDR style “bank holiday” of indefinite length, perhaps very soon, to let the insiders sort-out the bank mess which is getting more out of their control every day. Insiders want/need to impose new bank rules. Widespread nationalization could result, already under way. It could also lead to a formal US$ devaluation, as FDR did by revaluing gold (& then confiscating it). But devalue against what? The euro? Doubtful. Gold? Maybe. Or vs. the IMF basket of currencies (which seems more likely)—& much in the news recently.

    Any kind of bank holiday will push the US$ lower, which may be a bonus benefit to their ongoing scenario of letting the $ fall. Such a fall would get the devaluation they want without having to declare it. In sum, the insiders want more bank & system control, fewer banks & a lower US$. A bank holiday would suit all their needs."

  2. The details of the plan will spread within an ever-widening circle of banking and government folks who, like Sir Robert, will demand the chance to profit from the insider trade of the century. Because such a secret is impossible to contain for long, once in place the plan has to be executed as soon as possible.
  3. If the rest of us play it right, we’ll be able to at least protect ourselves, and maybe even make out (in percentage terms at least) like Goldman Sachs no doubt will.

FOFOA: “It matters not one iota how well you do in the stock and bond markets leading up to the reset. Neither does it matter what the "gold market" does between now and then. The ONLY thing that matters is how you are positioned on that one - fateful - day! Everything will be reset and surprises will abound.”

Larry

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Ready
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Re: John Rubino: A sudden worldwide currency revaluation is ...

Larry,

Doesn't Mr. Robino directly benefit from this essay as a purveyor of Au and Ag?

I may be wrong, but I think I can scrounge up several articles stemming from Kitco that both tend to sell metal and were incorrect forcasts. I remember a recent one stating we would be at $1500 gold by now.

Rog

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Re: John Rubino: A sudden worldwide currency revaluation is ...
Ready wrote:

Larry,

Doesn't Mr. Robino directly benefit from this essay as a purveyor of Au and Ag?

I may be wrong, but I think I can scrounge up several articles stemming from Kitco that both tend to sell metal and were incorrect forcasts. I remember a recent one stating we would be at $1500 gold by now.

Rog

Took the words right out of my mouth!

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DrKrbyLuv
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Re: John Rubino: A sudden worldwide currency revaluation is ...

Ready & JAG,

No doubt James Turk (one of the owners of GoldMoney) and Rubino (Dr. Doom) could have a fish to fry.  I posted this article because I thought it was important to look at the merits of their argument.  I wish we had more reliable sources of information. 

If there is a 10% possibility of this being true, I think we may be warranted in taking the needed action even if that means tax consequences.  I'm not sure how to respond to this article and welcome your thoughts.

Larry

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Ready
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Re: John Rubino: A sudden worldwide currency revaluation is ...

Larry,

I am the worlds worst market timer. The only market thing I EVER did right was to get out of equities in 2007.

I have the same amount of metal now I had a year ago. I have the same cash in the safe too. The serial numbers don't change. I locked my strategy in some time ago, and it helps to not overreact to these kinds of messages.

On a non-personal level, if you don't have any gold but are up to your eyeballs in United States Notes (yes, I read all of your posts) you might want to get some metal in hand. Not because of the alerts of people trying to sell it, but because it makes sense to round out your options. I bet this doesn't apply to you, you probably bought gold back when it was cheap!

Cheers,

Rog

 

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DrKrbyLuv
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Re: John Rubino: A sudden worldwide currency revaluation is ...

Rog,

LOL, it doesn't sound like you are the "worlds worst market timer" as you dodged the bullets and have set yourself up well.  Like you, I moved to gold and silver before the really bad late summer and fall of 2008. 

I'm still worried. 

  • I have direct access to some of my coins - but how much is enough?
  • To sell my PMs, I have to go through an electronic banking account.  Is it possible that they will delay or stop such transactions?
  • Should we drain down our banking accounts and move the money to coins?
  • Are there potential problems with owning allocated gold in private repositories?

One thing I messed up on was allowing my CM subscription to run out a week ago (I thought I might get bounced for pushing moderators).  I am signing up again, this will be on Chris's radar screen and if he sees concerns, he will give some analysis.

Interesting times indeed!

Larry

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Ready
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Re: John Rubino: A sudden worldwide currency revaluation is ...
DrKrbyLuv wrote:

 

I'm still worried. 

  • I have direct access to some of my coins - but how much is enough?
  • To sell my PMs, I have to go through an electronic banking account.  Is it possible that they will delay or stop such transactions?
  • Should we drain down our banking accounts and move the money to coins?
  • Are there potential problems with owning allocated gold in private repositories?

One thing I messed up on was allowing my CM subscription to run out a week ago (I thought I might get bounced for pushing moderators).  I am signing up again, this will be on Chris's radar screen and if he sees concerns, he will give some analysis.

Larry, I wasn't kidding when I said I suck at this. JAG, Cat. or several others may be better to advise on specifics. I'll deal in generalities:

If you don't have the coin in your hands, I would be concerned. This is for metal in your portfolio, don't go buy new gold, but what you do have should be in your direct possession.

Putting all excess cash into metal is a personal choice I cannot comment on other than to say this is not my strategy. I have plenty in gold, silver, and even trash silver, so I don't feel a need to bet the farm on additional metal. YMMV

Allocated gold is a problem for me. Again, YMMV. I want to hold the stuff and there is no tax or other implications to doing so in my state, it just doesn't pass the sniff test not to hold it for me. LogansRun has a machine to verify that the metal is pure (logan, please chime in!) but I have not needed it to date.

Larry, you should never be bounced from here unless you change the tone of your posts. You are respectful and add to this community. I don't always agree with your posts, but I read them because you have proved yourself time and time again as a thoughtful person. You have asked for feedback from the Mods and there does not appear to be a problem, so move forward and continue to be respectful. I doubt you will get the positive reinforcement from the mods you are looking for, not the style of this site.

Best,

Rog

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Re: John Rubino: A sudden worldwide currency revaluation is ...
Ready wrote:

Larry, you should never be bounced from here unless you change the tone of your posts. You are respectful and add to this community. I don't always agree with your posts, but I read them because you have proved yourself time and time again as a thoughtful person. 

+ a big 1

Larry, your a top notch contributer to this community and I always make it a point to read your posts. I find you extremely level-headed and thoughtful, which is something that is very difficult to do considering the emotional impact of the subject matter that you contribute. 

I'm going to re-read the article that you cited above and see if I come to a different conclusion, but my current read on it is "hype". Personally, what I label as "hype" is anything (financial related) that generates an emotional response from me when I read it. Typically I use "hype" as a contrarian indicator for my trading, meaning I take a position that is in direct opposition of my emotional reaction. It can be difficult to do, but I can attest that it is an effective trading strategy.

For example, in response to the ubiquitous dollar crisis speculation as of late, I liquidated my digital gold and silver holdings. I still have my emergency PM holdings, but my capital is in USD cash. Who knows how that will play out for me, but what I do know is this:

Emotion + Money = less money.

 

 

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DrKrbyLuv
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Re: John Rubino: A sudden worldwide currency revaluation is ...

Rog,

Thanks for the kind words.  It would get boring if we always agreed and let's face it, we often learn more those who disagree with us, even though we may not see it at the time.

I wasn't looking for any positive reinforcement from the moderators as that is not their job and they have always been very straight forward and polite with me.  I'm comfortable getting nudged back on the road if I become a distraction.

Your advice on PMs is well taken.  My plan has been; in accordance with CC #20, to asses my family's situation and to revisit the plan.  Like many, I have tax consequences and security concerns with how accumulated wealth (wealth is a generous term for what I have) might be preserved.

Thanks for the great chat, you always hit key points,

Larry

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LogansRun
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Re: John Rubino: A sudden worldwide currency revaluation is ...

Larry,

Why would you EVER think you'd be bounced off of here?  You're easily one of the best posters (info and respectful) on the boards!!! 

As for Au/Ag and how to hold it.....I'm not a speculator on Au or Ag.  I OWN gold and silver and will continue to buy until I die so I'm not the best person to ask as far as investment either.  Platinum or Palladium are different animals altogether IMO.

But as for owning paper gold and silver, I would get out.  I know two dealers that I would trust buying from as I know that they both don't trust the gov't any more than I do.  They both advocate owning in possession, no other way.  Right now usagold.com has a deal on some pre-1933, .11 oz Ducats that are uncirculated.  I will guarantee they are legit!  If you call John Kosares over there he will work with you to get your paper gold/silver transitioned/transfered into REAL PM's.  They also do this for IRA's and other paper investments.  That way you have someone working in your corner and knows the ins and outs of the transfer system.

Again, I would not be holding paper PM's as a safe haven.  Keep it in your possession and do it soon.  If the bank holiday happens in Sept. in order to revalue the dollar (or any other reason for that matter) your paper investment is not safe.  Even if you don't believe that the holiday will happen, you should be out of paper as a safe haven anyway.

If you need me to test the PM's I have no problem with that at all.  Don't know where you're located but the service is open.  We can figure out a way.  Or, we can work out an arrangement....PM me if interested.

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pinecarr
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Re: John Rubino: A sudden worldwide currency revaluation is ...

LogansRun Wrote:

Larry,

Why would you EVER think you'd be bounced off of here?  You're easily one of the best posters (info and respectful) on the boards!!! 

Agreed!!

This is an interesting thread, folks.  I know we can't "know" if the article is true or not.  But I appreciate the "heads-up", Larry, as well as the thoughtful discussion you all have had assessing the credibility of the source, the merits of the content of the article, and how you are planning in response (or in general).  These are scenarios worth thinking about and considering in our  planning.

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ckessel
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Re: John Rubino: A sudden worldwide currency revaluation is ...
pinecarr wrote:

LogansRun Wrote:

Larry,

Why would you EVER think you'd be bounced off of here?  You're easily one of the best posters (info and respectful) on the boards!!! 

Agreed!!

This is an interesting thread, folks.  I know we can't "know" if the article is true or not.  But I appreciate the "heads-up", Larry, as well as the thoughtful discussion you all have had assessing the credibility of the source, the merits of the content of the article, and how you are planning in response (or in general).  These are scenarios worth thinking about and considering in our  planning.

Agreed and agree!

While the validity of the article is in question I don't see it being either ridiculed or violently opposed. I would hope that it does not move into the self evident truth category but I am preparing for it just the same. Preparation will not cause near as much pain as the lack of it. I also agree with holding physical PMs vs any other option.

My gut is telling me that this Fall is going to be unlike any other fall  .... pun intended!

Coop

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