What Geithner is unwilling to say is what’s obvious: now that policymakers have shot their wad and the room for maneuver is limited, there can’t be a centralized, painless “fix” for the next inevitable financial crisis.
John Embry, senior advisor at Sprott joins Silver Doctors to sound the Alarm –
The US Dollar Is ON THE BRINK of Collapse:
69 percent of all Americans have less than $1,000 in savings.
If economic conditions remain relatively stable, the fact that so many of us are living on the edge probably won’t kill us. But the moment the economy plunges into another 2008-style crisis (or worse), we could be facing a situation where two-thirds of the country is in imminent danger of running out of cash.
Here is our worst case scenario:
The Gates of Hell Are Opening…
Chris Martenson warns the final condition for a market crash is falling into place:
Leading up to the 2008 financial crisis, most people thought the banks were safe…
Hat Trick Letter Editor Jim Willie joins us for a cutting edge analysis on the developing financial crisis, and the impact on gold and silver prices.
Are We Merely Weeks Away From the Greatest Financial Crisis In Human History?
Despite clear and overt manipulation of key interest rates and obvious headline data adjustment, the cheerleaders are back in full force again.
Just in time for the next crisis…
The Money GPS breaks down the Italian Banking Crisis – Has the Next Financial Contagion Begun?
The conditions for a “perfect storm” are coming together very rapidly…
I am certain that you remember Lehman Brothers and the “chaos” that it created when it ‘failed’. If you think that the Worlds’ Central Banks are now wiser and consequently will not allow another similar event to occur, think again…
Another huge financial crisis is coming…
Say hello to the next financial crisis, brought to you courtesy of the dumbest new bill of the week: H.R. 5148: Access to Affordable Mortgages Act.
With HR 5148, Congress aims to exempt certain ‘higher-risk mortgages’ from property appraisal requirements, reversing several provisions in the 1968 ‘Truth in Lending Act’.
It’s idiocy on an epic scale… and it makes one wonder what team of monkeys is coming up with these ideas.
Congress is trying to engineer yet another financial crisis by encouraging banks and other lenders to exercise minimal due diligence on their mortgage portfolio.
In danger of dying from too much debt.
Today, the world economy is in uncharted territory.
Never before has the developed world carried this much debt.
Never before have the central banks of those same countries expanded their balance sheets so much.
Never before has so much sovereign debt been outright monetized. Never before have major financial institutions been officially designated as “too big to fail” and thereby been granted special license to assume gigantic risks.
Dr. Lacy Hunt, economist and current executive vice president of Hoisington Investment Management Company, expects the macroeconomic situation to get worse from here:
Cycle analysis indicates the US Market Cycle is presently completing a 33+ year Bull Market Cycle and once complete, a Deflationary Bear Market Cycle will grip the US Markets in the year 2015 that will DEVASTATE the World.
Before a Deflationary Cycle grips the US Market and the World, FIRST expect an Inflationary Gold spike to $2000 catching everyone off guard and leaving all but the resolute Gold and Silver Bulls behind!
Unlike the previous recession that followed the collapse of 2008, there is no way out of this one.
The time to finalize preparations for what’s coming is NOW.
It’s going to go from bad to worse to terrible and our World as we know it will change forever!
A $1300 Gold price is soon to be history as Gold Spikes into $2000 before year end as the third and final Gold cycle of 7-years in to 2020/21 and $10,000+ gets under way!
In this interview with Paul Sandhu, exotic derivatives expert Rob Kirby explains why a complete systemic financial collapse is CERTAIN, with full-fledged bank system holidays & martial law coming!
Rob Kirby’s full interview is below:
The terrible irony in the official strategy of “buying time so the financial system can heal itself” is the policies prohibit healing and guarantee the next financial crisis will be greater in magnitude than the last one.
There is only one way for any financial system to heal itself: enable the open market to discover the price of capital, credit, assets, collateral and risk.
What “buying time” has done is destroy the market’s ability to price capital, credit, assets, collateral and risk, stripping the system of the essential information participants need to make rational, informed decisions.
By crushing the market’s ability to generate accurate pricing information, central state and banking authorities have insured the system cannot possibly heal itself while maintaining perverse incentives that guarantee the next financial crisis will dwarf the previous one.
The five biggest banks in the United States in 2008, today those banks are bigger. They have a larger percentage of the assets of the banking system. They have much larger derivatives books and if you apply what I use which is complexity theory, to understand the risk in capital markets, you know that when you increase something in scale, the risk does not go up in a linear fashion. It goes up in an exponential fashion so the risk is – the size of the system is greater than ever before and the risk gets exponentially greater than ever before.
So we have a lousy economy. We have massive risk. We have the whole thing getting propped up like money printing by the Fed. This is naturally going to happen except this time, the next time, it will be worse than 2008 because it will be bigger than the Fed.
None of the problems that caused the last financial crisis have been fixed. In fact, they have all gotten worse. The total amount of debt in the world has grown by more than 40 percent since 2007, the too big to fail banks have gotten 37 percent larger, and the colossal derivatives bubble has spiraled so far out of control that the only thing left to do is to watch the spectacular crash landing that is inevitably coming.
Unfortunately, most people do not know the information that you are about to read. Most people just assume that the politicians and the central banks have fixed the issues that caused the last great financial crisis. But the truth is that we are in far worse shape than we were back then.
When this financial bubble finally bursts, the devastation that we will witness is likely to be absolutely catastrophic.