Three Steps

As we rapidly approach March 18th, we should review the three steps of the deflationary collapse.

Step One:

Stock market collapse begins on or near March 18th. Time of completion is unknown, but anticipated to take several years.

S&P appears to be targeting 1370 or so which is the 78.6% Fibonacci level.

Monthly and long term charts seem to confirm.

Slope of Hope has a fine series of charts for your viewing enjoyment that support this view.

Step Two:

Bond market collapse begins as early as summer or autumn 2011, although collapse could be delayed until 2012 through central bank intervention. Time of completion is unknown, but anticipated to take at least one or two years.  Once government bond yields rise, I anticipate the US dollar to rise in tandem.  The US dollar index appears to be targeting 99 at the start of this third wave upward.

Step Three:

Currency collapse.

At some point in the next few years, if central banks continue their mad printing schemes, we will begin to see the unraveling of fiat currencies.  The Euro, Pound, Yen, and US dollar all look vulnerable.
It is at this point that we will see the financial masters of the universe try to step in with their "replacement currency" based on Special Drawing Rights (SDRs) which are simply an extension of the present insane fiat currency system.  The advantage of SDRs for the globalist elite is the complete lack of accountability for currency creation.  At least their is a small amount of accountability in a particular central bank in a particular nation.

The stage has been set, thanks to the hard work of ponzi fiat currency schemes, socialist/fascist governments making spending promises they can't deliver on without debauching the currency, and a general attitude that one can create wealth from thin air.

It is at this point in time that specie currency can finally return to its rightful place and role.

I am sure that gold will let us know that it is glad to be back in its monetary role after a 40 plus year hiatus.

Even the semi-monetary precious metal silver is getting in on the act as the chart shows.

Note the formation of what I like to call the "silver smile" developing since 1981: