Financial writer Andy Hoffman wrote an article titled “Upcoming, Cataclysmic, financial Big Bang to End all Big Bangs,” and the very next day, China devalues its currency by a massive amount. What’s going on? Hoffman says, “A year from now, we are going to be 5% lower (on the yuan) not 2%. So, already the market is bidding down the yuan in what I believe must happen. For all the talk about bubbles here, the NASDAQ bubble, the debt bubble, the housing bubble, bubbles we see in Europe, the bubbles we see in Japan and, frankly, nothing even compares to China’s bubble both economically and financially because of what their communist government has wrought onto them. I think there are going to be further steps for China to devalue as their economy falls apart.”
So, if China is devaluing its currency, does that means everybody else will eventually follow? Hoffman says you bet and says this is why there is the huge demand for physical precious metals and goes on to explain, “because it’s real money people are flocking into. They sense the fear between Greece, Brazil, China, Japan and now our economy that everyone is going to competitively devalue. The Fed raising rates, of course not. They are going to be doing QE4 and negative interest rates. The White House has been saying this year that the strong dollar is killing us, and there is an election next year. The earnings of the S&P are down this year and the economy is falling apart. The strong dollar kills corporate earnings and kills competitiveness. So, the Fed is going to keep weakening the currency. They will do a QE4 . . . sooner rather than later. Everyone knows it is real money you need to own, not this paper stuff as we are going into the final currency war.”
Hoffman, who also has 15 years’ experience as a Wall Street analyst, says it’s not just China’s economy tanking. It’s global as Hoffman explains, “We are at the single worst point of economic activity in the world in our lifetimes. You would have to go back to the depression to have a point this bad. Back then, we didn’t have any debt in the world. Now, it’s massive debt with no more room to add to it. We also have massive overcapacity of everything imaginable. . . . This is the scariest time I’ve ever seen economically and financially, and I think the whole world is going to know it soon . . . China devalues the yuan starting the end game. . . . It is currency collapse. Back in January of 2013, I said in the final currency war, everyone would devalue their currency to the point of hyperinflation. . . . Japan is going to be the first world society to have hyperinflation, and everyone will follow suit just like the prior 600 fiat currencies in history that all failed. Only this time, it is on a global scale without a single currency backed by anything except the faith and credit of central banks.”
On the Fed raising interest rates this fall, Hoffman says forget it, and explains, “The Fed is the biggest leveraged hedge fund in history. They have a $4.5 trillion bond portfolio . . . why would they be raising rates? They were lying all along. . . . Now, with this announcement by China where China is joining the currency war–no way. The U.S. is going to be forced to devalue its currency soon.”
So, what is the real Wall Street end game? Hoffman says, “They know the end game is going to be about gold and real money. . . . It’s not about financial markets, it’s about real items of value. It’s hard to dispute the fact that the perfect storm is coming together right now, including the front running of this gold and silver trade. China just turned the currency war nuclear . . . . It’s just hard to see how we get through this year without something gigantic and horrible happening.”
Andy Hoffman is a prolific writer at MilesFranklin.com. He writes almost every day of the work week. If you would like to follow his analysis and market perspective, you can do so for free by clicking here. There is also plenty of other free information and analysis on the home page.
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.