Below is Fitzwilson’s exclusive piece for KWN:

“Gravity is a mysterious force.  We can measure it, and we can experience it.  Our very existence would not be possible without it.  There are many theories as to the origin of gravity, but none that have been proven conclusively.

If we then turn to look at the global experience with fiat money, we know it is coming to an end.  The arithmetic is inescapable.  History is very clear about that.  We have concluded that the “when” conundrum cannot be answered with any certainty.  The end is unlikely to be linear, most likely chaotic and will accelerate rapidly to the final conclusion....

Continue reading the Robert Fitzwilson piece below...  


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“Getting back to gravity, it causes objects to accelerate at a constant rate of 22 miles per hour for each second of descent.  The force with which the object hits the ground is a function of this acceleration and it’s mass.  A feather hitting the surface of the earth does not have the same impact as a metal ball.

If you dropped pieces of paper from the edge of the Grand Canyon as well as a metal ball, air resistance would cause the paper to flutter to the bottom of the Canyon after much delay, but the ball would drop very quickly.

However, one of the counter-intuitive aspects of gravity is that if you repeated the same experiment in a vacuum, the objects would reach the bottom at the same time.  This was concluded by Galileo centuries before, but a dramatic enactment of this was performed on the Apollo 15 moon mission.  The commander of the mission dropped a hammer and a feather at the same time.  Both objects reached the surface of the moon simultaneously since there was no air resistance to impede the descent.

Central banks have been performing feats of anti-gravity when it comes to their currencies and the various derivatives based upon those underlying currencies.  Sovereign debt is floating in the stratosphere as rates have been driven to near zero.  Other markets such as housing and stocks have also been supported at artificial altitudes.  Central banks have suspended monetary and economic gravity.

If we cannot answer the question of “when”, we can address what form the end of this artificial gravity will take.  Gravity provides a useful concept and imagery.  What will likely trigger the end is panic.  Panic will result from uncontrollable fear.  The fear will result from chaos.

It feels as if the events of last week signaled the beginning of the chaotic phase.  Cracks are developing in the fabric of societies around the world.  In the U.S., the headlines about Hurricane Sandy and the mobs of shoppers fighting over phones are disturbing signs.  The Middle East continues to boil.  China appears to be turning hard line once again.  Japan continues to slide into financial trouble.  Doubts are emerging about the form and existence of gold holdings of central banks.

The markets told a positive story on Friday even though the underlying economic measurements continue to slide.  Gold and silver were stellar performers.  Stocks also had a good day.  However, the volume was anemic, even for a shortened session due to the Thanksgiving holiday in the U.S.

It feels like we are getting very close to the tipping point for the chaotic phase to begin.  As the anti-gravity folks at the banks continue to pump out monetary hot air to temporarily keep the currencies afloat, the impact of that action continues to have a diminishing impact.  If world events at some point disrupt their ability to keep the pieces of paper and the electrons in the atmosphere, that vacuum will cause fiat currencies to plunge in value at a rapid and accelerating rate similar to the effects of actual gravity outlined above.

There is smoke in the air.  The fires are not yet visible, but it is a time for extreme vigilance to be ready for changes in asset allocations.  In the meantime, investors should continue to acquire physical gold and silver as countries and savvy individuals are doing all over the world.”

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interviews with Egon von Greyerz, Michael Pento, Wilbur Ross, Don Coxe (BMO $538 billion) and Ben Davies are available now.  Also, be sure to listen to other recent KWN interviews which included Art Cashin (UBS $612 billion), Nigel Farage, Bill Fleckenstein, Rob Arnott (RALLC $100 billion) and Gerald Celente by CLICKING HERE.

Eric King

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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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