German 10 Year Bond Auction "A Disaster"

Reuters reports today that a recent German bond auction would have failed had not the German central bank purchased 39% of the debt. 

""It is a complete and utter disaster," said Marc Ostwald, strategist at Monument Securities in London.  "This does not bode well, it is the worst of uncovered auctions that we've had this year and little wonder that the Bund sold off on the back of it.""

So what does all of this really mean?  Well, in layman's terms, despite the media portraying it as the strong economy of Europe, Germany is a debt laden piece of $hit just like all other global governments, including the USA.  They cannot live without debt.  Their bond auctions are failing (i.e. no bonafide buyers are stepping up) and so their central bank has to print up money from thin air in order to buy the debt.  They have no choice in this.  They either do this or let the debt Ponzi collapse and just admit what a bunch of scumbag con men they have been all along.

They (and the USA) strut around telling the smaller players to behave like adults, to implement austerity, blah blah blah but Germany and France are just as bankrupt as the rest of the PIIGS.  This is not to bash Euroland.  Japan is a silent crisis.  I cannot stress how badly I think Japan will turn out.  It is entering into the teeth of the perfect economic and demographic storm.  Japan is screwed.  China is going to have a massive real estate bust, far worse than what happened in the USA.  Civil unrest in China will be extreme IMO, and the USA is going to have a real debt crisis within a couple years if not far sooner.  The USA will see significant civil unrest that will make Occupy Wall Street protests and its clones pale in comparison.

This is not new knowledge for people who understand that the world is controlled by the fraudulent concepts of fiat currency and fractional reserve banking which have pushed us into a global debt Ponzi.  Lots of "experts" will claim they never saw the collapse of France and Germany coming.  They will concede that the PIIGS are weak but they always protrayed France and Germany as the unsinkable overlords of that region.  But during the height of German and French politicians looking down their noses at the PIIGS, I wrote that Germany and France are no better off than anyone else in the Eurozone and explained why that had to be the case.

In short, we're all PIIGS now.  The entire global banking system is bankrupt.  You know this is the case because people are now talking about "saving" the Eurozone via the use of gold to either pay for or to collateralize debt.  Yes, that's right GOLD.  The money of last resort when confidence has been lost in fraudulent fiat currency.  The only real money that ever existed in the world.  As Mr. J.P. Morgan said, "Gold is money and everything else is credit".  As recently as two years ago if you mentioned "gold" in polite conversation you were labeled an extremist or a survivalist or some other such intimidation wording commonly used by the ignorant masses against people who would tell them the truth.  But now, apparently, that foolishness has been dropped.  Desperation has led the very people who used to laugh at gold to suggest and to hope that gold will be the savior of the Euroscam. 

Well let me say for the record that anyone who pays their fiat currency debts using gold at only $1500/Troy oz. is a complete A$$!  I mean, world class fool.  Pay paper denominated debts with paper!  Let me also say for the record this: anyone who accepts gold as collateral for a loan without having physical possession of such gold is a FOOL.  Nixon's elimination of the dollar-gold convertibility in 1971 proved beyond a shadow of a doubt that sovereign promises to back debts with gold are lies.  If the US defaulted on its promise to pay paper debts using physical metal then who else is going to feel morally obligated to do so?  The US has already set the precedent here.  If someone follows the US example of defaulting on gold backed debt notes (for that is what dollars were pre-1971), including Eurobonds, then the US will not be able to wag its finger at the perpetrators of the default.  It will not be able to talk about lack of moral character because we already proved that we would gladly dispense with morals if we had to choose between them and gold.

Folks we are in the end game now.  The global debt Ponzi is collapsing because it has to collapse.  No Ponzi scheme ever ran forever and none can ever run forever because payouts to those who are exiting the system are only possible if more fools enter the system.  Right now, the world has grown incredibly short of fools who are willing to loan money to con men and liars.  Thus, the debt Ponzi must collapse. Failure to recognize this (and its obvious implications) can be one of the worst mistakes anyone can make in their whole lives.  The implications are far reaching and serious.  As I have told family and friends, the time to wake up is past.  It is now time to grow up and see things with adult eyes.  Childish ignorance about the state of the global debt Ponzi is not your friend at this point.  The impact of a failing debt market on all other markets, including the stock markets, cannot be overstated.  Debt is used to purchase everything.  When debt markets fail, prices on everything else will plummet due to credit deflation.