Cash is Going Out of Style-Gregory Mannarino

By Greg Hunter’s USAWatchdog.com 

Financial analyst Gregory Mannarino says, “The Federal Reserve is going to print into oblivion.  Why?  Because cash is going out of style.”  It was recently reported the Fed is buying 90% of U.S. Treasuries.  Mannarino contends, “The Federal Reserve has to go out and buy Treasury bonds.  If they don’t do this, it’s over . . .  the system collapses.  The Fed is now the lender of last resort.”  Mannarino predicts not only America, but the world, is headed for a collapse.  “Nothing they do now can change the trajectory we are on, which is the mother of all collapses of the financial system–on a global level,” says Mannarino.  When that happens, what is going to happen to all the asset classes?  Mannarino says, “You got to be nuts to buy 10-Year Treasury bonds . . . . At some point, it will be the free market that will decide fair value with regard to everything across the board, including debt.”  Mannarino thinks interest rates will spike and “commodities are going to go to the moon . . . gold and silver are going up over the long term.”  Join Greg Hunter as he goes One-on-One with Gregory Mannarino.

Comments
  1. PatriotRider

    Greg:

    That’s what makes these “fiscal cliff” talks in DC just simple kabuki theater…nothing will change regardless who “wins or loses”…

    No matter what is done at this point…we are toast; it’s simple math.

    • Greg

      Thank you Patriot and Mitch.
      Greg

  2. Mitch Bupp

    Thank You Greg and Greg, I agree the market manipulation can only last so long like any bubble within the economy but this time the bubble includes several sectors of the economy; housing derivatives, bonds, Treasury’s and commodities, When this asset bubble pops it will be ugly.

    I am no expert but it appears that the only thing the FED does is devalue the dollar creating fake economic growth ….. I wonder if Bernanke and Gietner realize that inflation is not production but the devaluation of the currency?

  3. jc davis

    Greg: I missed the reaction .last time mr mannarino was on you gave a burst out reaction at the end..I loved it. Well id like to ask mr. mannarino what will happen when the mother load of shell oil comes out in texas,and the keystone pipeline starts being shipped around the world? I believe the oligarchy( FED ) will use this to keep the dollar as the reserve currency.

  4. Johnny Dangereaux

    Good Times! I came up with “The Great Revaluation” last week…all you can call it imo…ie..Dow Gold 1:1 Silver Gold 15:1 (or better) After spending an hour+ on Zillow last night I’d say house prices have another 50% reduction,even in the fiat price,let alone in toz of PM!
    Remember when they “broke up” Ma Bell? And what do we have today? AT&T!
    I predict the same thing as far as the states…they’ll repackage with the strong ones prevailing, and the weak will have to join them! Could be messy though…lol…that or Tekken!

  5. Common Sense

    Gregory says “gold is money.” The dollar is money.
    In a total collapse, neither will be worth anything.

    In the collapse, you won’t find buyers for the dollar, you won’t have buyers for gold.

    Tell me Gregory, in a collapse, who will be paying $10,000 an ounce, when the masses of people are dumping all their wealth just to buy food?

    You won’t have hyperinflation, the consumers aren’t getting raises, they are getting cut!!

    If the FED is forced to cut or stop payments to the Mooch, prices will not go up. When sales go down due to the death of the consumer’s ability to earn a living, prices won’t go up.

    Gold is holding 1700′s only because the dollar is still at 80.
    IMPORTANT… Gold is 50/50 chance of having one last run, perhaps to $3K, as the undeniable collapse panic sets in, but will quickly after crash the moment the players must cash-out to buy food. Do you seriously think the super rich will be buying up your gold bars for $10,000/oz when the masses are forced to spend their few remaining dollars for a loaf of bread?

    Gold will fall along with the dollar, it is all supply and demand. You won’t have gold demand if the dollar is worthless. Imports will become cost prohibitive. This will cause a death spiral worldwide.

    In a mild collapse your best bet is to short the NASDAQ/S&P.

    In a MadMax; the only assets will be things that can keep you fed or things that you can grow that you can also sell. But having these things in a collapse makes you a huge target. Everything else is just shiny metal doorstops or burnable paper.

    Welcome to the Wild, Wild, West 2013.

    • Greg

      Common Sense,
      If the dollar collapses gold will not have to be bought it will function as money–it does now in the right transactions among two agreeable parties.
      Greg

      • jay

        I must add to this. With the dollar gone other countries will still be transporting food,gass,ect.. to america.(Why let food go to waste when it will exchange for gold?) in exchange for GOLD/SILVER/COPPER. The barter system will be used for what ever currency replaces the dollar. Its just common sense.

    • Nathan Hale

      Not to worry Common Sense, I will trade you food for your gold.

  6. frosty

    Greg,

    It is quite easy to understand why it is prudent to own hard assets whose value will go through the roof relative to printed paper whose value is collapsing. It is also easy to understand how chaos and civil strife will ensue when the people who relied on that paper’s value to feed, clothe and house themselves come to realize that they have nothing of value left to trade for these necessities. Yet there is still another issue associated with the collapse of paper money, but this issue is rarely discussed.

    Most of us know that the US dollar (FRN) is more than simply a medium of exchange. Each new dollar issued by the Federal Reserve represents a debt at interest created by the government in name of US taxpayers. In other words, each dollar created is actually a claim held by international banks against the assets of the American people.

    While we currently owe these banks over $16 trillions, we continue to incur an accelerating debt obligation and foresee an additional $80 trillions needed in the near future to pay for government liabilities under the medicaid and social security programs.

    I may be naive in asking but, after the inevitable collapse of the dollar, will this debt not still exist and continue to grow? If so, how will it be repaid? If not, why not? It seems like we are busy preparing for a monetary collapse without reflecting on what might realistically take place after it. I would like to hear some educated opinions on how the issue of our debt might likely be resolved.

    Thanks,
    frosty

    • Greg

      Thank you frosty for the comment and analysis.
      Greg

    • DaveG

      Frosty, the debt we owed is denominated in dollars, so green pieces of paper DO settle it (settled debt is gone,non existant). IOW no, the debt will NOT still exist.
      You are confusing the past when dollars were NOTES FOR GOLD, currently dollars are JUST green paper – and ones that nobody HAS to accept in exchange for anything -well, other than settling taxes.

      Which brings the point that dollars WILL always have SOME value because they’re needed to pay taxes. pity the poor Medicaid and Social Security recipients who will then have to try to find some other sucker to accept them for something of value – or to pay his taxes.

  7. Dan

    Enjoy this christmas Greg(s) because next christmas there will be a bank holiday. Happy Holidays.

    • Greg

      Dan,
      Thank you but I am not sure the bank “holiday” will wait for a year. I hope you are right though!!! Merry Christmas to you my friend!!!!!!
      Greg

  8. Rev. William Joslin

    Great video Greg! Thanks for having Greg back on. I enjoy watching his videos. He’s been accurate in his predictions more often than not. Have you ever considered interviewing Gerald Celente?

    • Greg

      Rev.
      I have had him on twice and need to have him back again.
      Greg

  9. Brian

    I’m to the point now where I am actually contemplating making a large sign that reads QE:(lazy eight) on the one side and “You are working for nothing” on the other, and then using my free time to walk around the busy streets of Chicago holding it up high and taking whatever flack that garners.

    If we as a nation do not do anything to curb or at least acknowledge the criminal activity that led us into this mess we will be living under something much much worse when the dust finally settles.

    Having an ordered society that lives under the rule of law and respects private property and values life, liberty and the pursuit of happiness is THE key here. What good is the possession of any commodity without a real community and a stable larger society around it to live and function within?

  10. AndyB

    If Mannarino is right, and there are many analysts who agree, the cashless society would be the final nail in the liberty/freedom coffin. It would be a totalitarian wet dream as every financial transaction could be easily tracked and monitored. The only recourse would be a true barter society.

  11. Robert

    Greg and Greg, thank you for your very clear explanation of the events that will be unfolding in the next few years. I can’t decide which one of you is better because you both just have a way of getting your points across with unbelievable clarity.

    I sincerely hope that you are both wrong, but the facts are the facts and nothing is going to change that. We are in for a very rough ride and 99% of the population doesn’t have a clue.
    Robert

    • Greg

      Thank you Robert. Very happy you can protect yourself.
      Greg

  12. Jim

    We thought rules applied and we reacted based on what we thought the rules were. The EU will stay while sovereignty disappears. Dollars are turning to digits just as the Documentary Freedom to Fascism said it would. Nick Rockefeller told Mr. Russo the big plan and perhaps we should listen. What they will decide about gold and silver is anyone’s guess because the rules go out the window as soon as they make them. After Enron I realized what the “Investor’s” are capable of. Now Enron looks like nothing. Hang on because if we think the ride through the “New World Order” to “Globalization” was interesting, imagine where we are headed next
    Don’t forget to laugh at yourself when they prove all your theories based on what you thought the rules were dead wrong. At least laughing has been better than crying for your’s truly.

    ENJOY!

  13. Al

    What happened to Greg’s charts?? I love those charts. A picture speaks volumes. When Greg Mannarino mentioned how the banking system could collapse in a month–Wow!! We all need to be ready with stored food, water etc. along with Gold & Silver as protection against debased dollars. The system may take longer to collapse but why take such a gamble with our family and those we love? If just a few more Americans see what’s about to hit us, gold availability will dry up. [Silver is already in short supply] I just think we’re about to witness hunger all over the world and our leaders will never help us to prepare by giving out the truth. You can bet they know and have more than prepared.—As always–Nice job Greg H. Now–about those charts————-Al

    • Greg

      Al,
      We will chart it up next time!!! Thank you.
      Greg

  14. Charles H.

    Greg Mannarino is reading the cards right. It’s all too plain for those with eyes to see. I’ve cashed-out and bought silver to the limit of my meager ability. PM’s is what I’ve done to make sure my wife will have something. I don’t think even the Insurance companies will be around when the crash comes. I am usually late; but am arriving at the best, no debt, self-empowered/sufficient position as correlates with this article. I deeply appreciate the service your information supplies. It’s getting scary; and there is comfort knowing you’re not alone.

  15. Richard

    I don’t think it is time yet to panic. It is certainly time to prepare. I’m looking for some sign that the system has reached it climax and begun it’s decent. Just like the real estate bubble.

    Housing prices maxed out where I used to live in December of 2005. I saw it. I was watching for it. And when I saw it my wife and I made our move. It worked out well for us. Our 401K got beat up but everything else was fine. But it took 3 more years before Wall St also saw it.

    I feel that there will again be a climax and then Wall St will also see it at some later point in time. The housing bubble was easy to see. This time is different in that the signs aren’t so readily visible. I do not want to get burned twice on our 401K but I don’t know what I’m watching for.

    • Greg

      “time to prepare” is right Richard. Everyday is a gift!! Thank you for weighing in here.
      Greg

  16. JoeJustJoe

    Why hasn’t gold taken off like a rocket? The “most” pertainent question, Greg. Mr Mannarino voiced the typical response one would expect from someone who is touting gold >>> It’s manipulation :-) Actually, it’s the “real” market speaking. But once again, I try and keep the formula simple for everyone. Here it is again >>> As the general market goes…so will the gold trade. Jot that down everyone…so you don’t forget it. BTW, oil will trade with the general market also. If Mr Mannarino actually thinks the stock market is going to collapse and that is going to send the “ave Joe” running to the gas pump well….poor Mr Mannarino is living in fantasy land. This guy was the most clueless of the spewer’s you interviewed so far IMO.

    • peter rudder

      Thank you JoeJustJoe!

      How convenient for Mannarino to assert that gold prices are manipulated when prices don’t go the way of his predictions! Interesting how many prognosticators of financial armageddon are untiring purveyors of gold.

      If you go along with idea of an economic meltdown, you would be better off buying a farm and becoming as self sufficient as possible.

  17. MikeHgl

    It’s true that metals went down with the market in 08, providing some truth to those that say that p.m’s are not a safe haven from economic turmoil. But what is the alternative? There may not be a “safe haven” in the worst case scenario. I have purchased what precious metals I can afford and done some preparing for calamity but also continue to go on with my life, planning for the future as I only can hope it will play out.
    We all have lives to live, families to provide for and communities we live in. And the collapse may not happen at all (unlikely) or for years (possible).So many factors are in play here, the global community has never had a collpase of a reserve currency. We are truly way out in uncharted waters.
    So,while it is prudent and wise to prepare it seems foolish to ONLY prepare, disregarding your daily responsibilities.
    Hope for the best, prepare for the worst, but live your lives to their fullest too and continue to plan for a future that includes a stable society and a comfortable living. If all hell breaks out. we are all going to be in this together and no amount of prepping will save you. Man does not live on an island.

  18. Nichole

    Greg,

    Partirotrider: No matter what is done at this point…we are toast; it’s simple math..

    Well we can’t complain that OBAMA didn’t warn us about all that “simple math!” Wasn’t that his brilliant financial slogan in all the debates when Romney attacked his spending and entitlement programs?

    Sarcasm aside, I think we all have come to accept when something main stream is published we have to do the exact opposite. The only thing I see to do as a young middle class citizen is prepare to survive now and capitalize on this madness in the future. It’s like looking into a crystal ball and seeing the future…however this is not a vague issue and has very predictable outcomes with applied logic.

    Everyone complains that treasuries have a negative return. However, no one has mentioned that there are these TIPS (Inflation-Protected Securities)that are offered in 5/10/20 yrs maturity. They pay 0.25% and are paid back in inflation adjusted dollars. The indexes lists inflation at 8% and will be adjusted with the CPI (Consumer Price Index)

    I agree TIPS may not be the best place to park dollars over hard assets like precious metals and real estate, but it may be something to consider for someone. I don’t hold any of these personally but I did come across them and wondered why no one has mentioned them. Is there something I have misinterpreted?

    http://www.treasurydirect.gov/

    • Greg

      Nichole,
      If we were not printing $85 billion a month and inflation was calculated correctly, then maybe you buy some TIPS as a small part of your liquid portfolio. The fact the Fed IS PRINTING $85 billion a month shows desperation and a full on currency crisis is coming. You want nothing to do wilth government debt right now. Hard assets are really a way of taking the other side of bet. I do not see how you will lose in the long term holding physical gold and silver coins. (By the way, we do not know what the Fed is doing with the dollar/euro swaps in the EU.) Thank you for your comment.
      Greg

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