Its early Wednesday morning, with gold up $14oz; silver up $0.15/oz; and everything else from oil (Brent crude at 2004 lows!), to base metals, equities, junk bonds, and Treasury yields crashing. Whilst, in the wake of yesterdays crashing currency cornucopia article countless currencies, commodity or otherwise, are freefalling.

Lets just start with some of the minor horrible headlines of the past 24 hours; after which, well build up to the BIG KAHUNA that has the global economy and financial markets on the precipice of the abyss

And then theres the official MSM reason for this mornings global stock plunge, which has Dow Futures down nearly 300 points just before the NYSE open. Which, whilst it certainly is bad news and part and parcel with the unfolding explosion of global geopolitical tensions is decidedly NOT the principal catalyst for this mornings financial implosion

Moreover, for some comic relief, even I am in awe of the unprecedented falsity of this mornings ADP employment report in somehow, despite the worst economic data since 2008, proclaiming December to have produced a whopping 257,000 jobs. I mean, has ADP, like the BLS, adopted double seasonal adjustments? Or its own, fictional birth/death model? Or has it started to include panhandlers in the ranks of the employed? And has Mark Zandi officially become a modern-day Wesley Mouch; i.e., Americas de facto head of economic propaganda from Atlas Shrugged?

However, whats really troubling financial markets aside from the inexorable bursting of the epic, unprecedented bubbles created by Central banks cumulative response to the 2000 and 2008 crises is last nights double-barreled bombshells from China. One, in accelerating the pace of the Yuans devaluation from 6.20/dollar at the time of the initial devaluation in August; to 6.55/dollar this morning, nearly a half-percent weaker than yesterday morning. And second, the far more important development of the offshore Yuan market uncontrollably plunging portending, potentially in the very near-term the cataclysmic Yuan devaluation I first predicted last April; and afterwards, mere hours before the initial devaluation four months ago.

Trust me, its no coincidence that the recent, dramatic leg down in the global commodity and currency implosion commenced that very fateful day in early August. Or that the recent acceleration of the Yuans devaluation commenced the day after it was accepted into the IMFs strategic currency basket. Regarding the latter, the Chinese government was clearly waiting for its hollow, but symbolically important acceptance into the Western Ponzi scheme before taking the matter of its own collapsing Ponzi scheme into its own hands. Which is exactly what it is doing, in setting the stage for a global currency catastrophe.

Of course, the loss of control of the offshore Yuan market i.e., the unofficial, or black market rate that all dying currencies eventually fall to (like Argentina and Venezuela last month) is EXACTLY what I described in September 1sts most dangerous, destabilizing force on Earth. In it, I warned of the tightrope the PBOC was walking in attempting to gradually devalue the Yuan whilst simultaneously supporting the offshore Yuan by not only buying offshore Yuan whilst selling onshore Yuan, but cracking down on those nasty speculators attempting to sabotage the great Chinese empire by shorting offshore Yuan.

Taking the cake in the category of Keystone Kops financial planning is the fact that the Chinese are wasting countless hundreds of billions supporting the (Offshore) Yuan, whilst at the same time devaluing it!

My friends, this is why I know historys largest fiat Ponzi scheme, involving all nations, is on the verge of its inevitable annihilation. The ramifications are too broad and terrifying to list here which is why its so convenient that the Miles Franklin Blog archives the hundreds of articles and podcasts I and David Schectman have produced as always, for free. Whether the powers that be can hold on another year an election year, at that without a major financial disaster occurring is something I cant predict. However, the end game is irreversibly set in stone, approaching like a runaway train on an icy, downhill track. And as for what asset class will be most in demand as this unprecedented calamity unfolds, I have never been more certain it will be Precious Metals. In other words, I can only reiterate, as vehemently as possible, to PROTECT YOURSELF, and DO IT NOW!

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PBOC Loses Control Of Yuan Peg, Setting The Stage For A Global Currency Catastrophe - SilverSeek.com