Phoenix Capital Research's blog

What does the Fed's QE 3, a Spanish default, the systemic crisis in the EU and Lehman all have in common?

If you want further evidence that the financial elites are already preparing for a default from Spain and a collateral crunch, you should consider that the large clearing houses (ICE, CEM and LCH which oversee the trading of the $700+ trillion derivatives market) have ALL begun accepting Gold as collateral.

Everything that has happened since 2007, every Central Bank move, ever major political decision regarding the big banks, every trend, have all been focused solely on one issue.

Countless pages have been written about why Lehman caused the system to almost implode. However, the reality is that Lehman nearly took down the entire financial system for two reasons... and Spain will be far far worse.

The mainstream media still doesn't understand the financial system... or why the Fed has done what it did.

The US Presidential election has ended and the market is beginning to return to reality. And reality is not pretty...

We have just completed a series of videos detailing some of the risks posed to the financial system by the Federal Reserve as well as the European banking crisis. Every investor should see these. 

The very same problems that the world faced on November 5, 2012 remain in place. And we now know that those in power (Bernanke and Draghi) favor money printing over everything else. So the cost of living/ inflation will continue to rise and the world will lurch ever closer to the great debt implosion that will eventually take down the financial system.

For certain, no matter who wins today, Europe’s a complete disaster. Greece is once again out of money and will need someone (though at this point it’s not clear who is willing to pony up the cash) to foot the bill. Elsewhere, Spain continues to lurch to a full-scale collapse. 

Yesterday we assessed the impact a second Obama term would have on the US economy and markets. Now let’s assess what impact a Romney Presidency would have on the US economy and financial markets.

The Obama Administration thus far has proven itself in favor of increased Government control and Central Planning. That is, the general trend throughout the last four years has been towards greater nationalization of industries (first finance, then automakers and now healthcare and insurance), as well as greater reliance on our Central Bank to maintain our finances.

In terms of storing your wealth or preparing for what’s to come, I think everyone should have SOME gold and silver bullion on hand.

At the end of the day, you can announce all the fancy sounding programs you like. But unless someone comes up with actual cash none of it announces to much other than political posturing.

Indeed, when you think about it, 2008 happened at a time when paper money was still perceived as a safehaven. That is no longer the case as the Central Banks now have the printers running both day and night. Small wonder that Gold and Silver are at or near all time highs in every major currency.

So with world central banks printing paper money day and night it is no surprise that Gold is now emerging as the ultimate currency: one that cannot be printed. Indeed, Gold has broken out against ALL major world currencies in the last ten years. The below chart prices Gold in Dollars (Gold), Euros (Blue), Japanese Yen (Red) and Swiss Francs (Purple):