Forget about what stock markets are doing because that is just a diversion…
We are going to see a negative gradual financial crescendo into September and fear is going to strike the entire financial world far more then than it has now.
All of this crescendo leads to a blow off of the top of the mountain of the most magnificent volcano know to man obliterates the surrounding landscape and peoples.
I am speaking of the red hot magma of the paper bond and derivatives market and multitude of naked no substance bets that the entire financial world rests upon and how fragile it is. It is going to fail in about 60 minutes…
Last Friday, June 26, was D Day. That was the last day a person in Greece, for all intents and purposes, had the banking freedom we take for granted here in the US. Today the Greek people are now stuck in a burning barn, finding out that the system they relied on is broken. If there is not even a small reset, sometime within a week or two, there will be riots when food and gasoline are gone.
The Greeks had many options before June 26 2015.
One day the stores and gas stations were full: The next day they were empty.
Systems fail slowly at first and then very quickly. You must be aware of the warning signs of systemic failure.
Being 6 months early beats being 1 day late.
Something BIG, UGLY, and NASTY this way comes…
– Former U.S. Congressman blasts Fed’s role in markets
– Gives scathing analysis of modern economics and markets
– Highlights complete disregard of economic fundamentals in investment decisions today
– As will be the case with Greece, U.S. will eventually be forced to liquidate debt
– Attempts to forecast day of reckoning are futile as it is a function of psychology
– “They can’t print money forever”
– Gold and silver will weather and thrive in currency devaluation
No one knows how well prepared the system is to handle potential bank runs and massive demands for cash withdrawals if the system tanks.
And no one knows how much longer the system can hold.
You could say the price of a loaf of bread will be $100 and that is the kind of thing we will see, and it may be even worse. It will be just like we saw in Zimbabwe or Germany in the Weimar Republic. These things happen in history . . . and the United States is not exempt of the laws of economics. It is going to happen here . . .
If there were ever a tell-tale sign that a momentous set of events is soon to take place, this is it…
Since December there’s been increased volatility in gold & silver that reflects something going bad behind the Central Bank “curtain.”
The volatility in the metals reflects the war between smart money moving in to the metals – likely primarily physical – and the Fed/ECB/BOE’s collective attempt to keep a lid on the price of gold/silver.
I predict that we will start to see an acceleration in the movement of cash out of paper assets and into physical gold and silver.
The system – specifically the U.S. economic system – is now speeding up in its collapse.
From Greg Hunter, USA Watchdog:
Money manager Peter Schiff, who wrote a book three years ago called “The Real Crash,” thinks the next calamity is well on its way.
Schiff says, “I think the next crash is going to be a dollar crash rather than a stock market crash. Certainly it is going to be an economic crash for the average American, and their cost of living goes skyrocketing.”
So, is the next crash going to be worse than the last meltdown? Schiff says, “It’s going to be much, much worse. If you understand what caused the 2008 financial crisis, it was the easy monetary policies of Alan Greenspan. . . . The monetary policies of Bernanke and Yellen dwarf what Alan Greenspan did. That was child’s play compared to what these guys have done. We have had zero percent interest rates for six years. We have had three rounds of quantitative easing (QE or money printing) and “Operation Twist.”
Steve St. Angelo (SRSroccor) joins me to cover the very latest in the gold and silver markets. As we note, Bloomberg’s mockingbird journalist Nicholas Larkin recently wrote that if China could obtain 10,000 TONS of gold, it would justify a re-pricing of gold to $64,000 ounce. However, Larkin argues that China has well under 2,000 tons by referencing the nation’s last official report from 2009.
Steve and I discuss how it’s far more likely that China already has 10,000 Tons of gold NOW!
So… what happens to the gold price once China officially updates its six year old “official” number… huh Bloomberg?!
What if China began using the interest payments from the debtor nation, the United States, to finance a new global bank, like the BRICS Bank and the AIIB?
What if the creditor nation, China, began using the interest payments, roughly $300 billion annually, to build a New Silk Road that solidifies relations with their neighbors, creates commerce for both the neighbor and China and used some of the funds to build up their military?
This would create a natural exit strategy for China that allows her to walk away with a clean break from the parasite nation, the United States. No harm, no foul.
Isn’t this exactly what we are seeing unfold today?