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A Flock Of Black Swans

Tyler Durden's picture




 

Submitted by Jeff Thomas via InternationalMan.com,

In 1999, the Federal Reserve, under Alan Greenspan, convinced the US Congress to repeal the Glass-Steagall Act, which had been passed in 1932 to eliminate banks’ abilities to offer loans far beyond the actual level of their deposits.

When I learned of this development in 1999, I anticipated that it was put through to allow banks to once again recklessly loan money and that the outcome would be essentially the same as what occurred in 1929 - a depression of major proportions.

Major depressions do not occur overnight. They go in downward waves, interrupted at intervals by false recovery waves. The first major event of what would become the Greater Depression took place in 2007 with the housing crash. A year later, right on cue, came the first of the stock market crashes.

Since then, the US Federal Reserve and the governments and central banks of much of the world have been involved in Band-Aid solutions to postpone further crashes, in spite of the fact that the economy is, in fact, a “dead economy walking.”

The Band-Aids have been many and various and, at some point, one of them will fail. The fact that they are all Band-Aids and not true solutions assures that, when the first one lets go, they will all fail in succession. Only at this point will the average person understand that we have been in the early stages of a depression all along.

What will happen will be a sudden and unseen event - a trigger that suddenly sends the economy downward, followed by another, then another, as the economy tumbles inexorably downward.

Along the way, emergency measures will be utilised to “save” the economy. They will be drastic, including confiscation of bank deposits, plus massive money creation. There will be dramatic inflation and very possibly, hyperinflation.

But the collapse will continue, unstoppably. Like any house of cards, once it begins to actually fall, no further Band-Aids will stop the inevitable.

So, what might that trigger be?

Well, there is literally no one in the world who might predict that with certainty. The reason is that as so many Band-Aids have been used by so many countries in so many areas of the economy, no one can say which one will fail first: which one will be the actual trigger that causes the chain reaction.

I believe that we are now closing in on that time. The house of cards is becoming evermore fragile and we will not need to wait much longer before the event occurs. As we get closer, increasing numbers of people are seeing the writing on the wall and, more and more, I’m being asked the same two questions.

“What Will the Fatal Trigger Be?”

Here’s a brief list of possible triggers:

  • Creditors dump US debt back into the US market
  • Commodity prices spike
  • A crash occurs in the stock or bond market
  • A backlash occurs from countries sanctioned by the US
  • European countries default on their debt
  • The US dollar ends as the petrocurrency (causing a sale in US treasuries)
  • The US or EU introduce significant tariffs, diminishing world trade
  • Interest rates rise, as they did in 1929
  • The paper gold market crashes, when the shortage of physical gold is revealed
  • Banks freeze or confiscate deposits
  • FATCA accelerates the demise of the US dollar as the default currency
  • A credit collapse occurs (followed by dramatic inflation or hyperinflation)

Any of the above is capable of triggering a collapse (and, as stated, this is not by any means an exhaustive list). Therefore, it would be wise to keep an eye out for indicators that one of them may occur. Any one of them that appears to be nearing the point of becoming a reality would suggest that the tipping point may occur soon.

“How Will I Know in Advance?”

Whatever advance warning you may have will be based on how closely you’re following the indicators that any of the possible triggers may be nearing fruition. Some, like the overbought stock market or the rise in commodity prices could kick in at any time.

Others, such as a bank freeze on deposits, or the collapse of the ETF market in gold, could happen quite suddenly and without any warning at all.

In discussing the above condition with investors, they often say, “Well, if it’s inevitable and I can’t time the event, there’s no use thinking about it. We’re all going to go down with the ship, so why bother?”

Quite frankly, I’m astonished that so many investors are so complacent that they’re prepared to shrug their shoulders and accept their own economic demise, yet this assumption is very common.

The enemy is not the coming events; the enemy is complacency toward those events.

The investor therefore has two viable choices: to either get blindsided by events and become an economic casualty, or be prepared (as much as possible) for the crashes, regardless of what the trigger might turn out to be.

Creating an Escape Plan

There can be no perfect solution - one which allows you to retain your present life, exactly as it is, within the system, whilst the system around you is in a state of collapse.

What can be done, however, is to remove your wealth and yourself from the system as much as possible, so that the impact of the collapse is minimised.

As a basic set of assumptions, you might consider one or more of the following actions:

  • Remove all cash from exposure to bank freezes and confiscations by placing your money (other than three months of expenses) in banks in countries where no confiscation laws exist (i.e., outside of the EU, US and Canada).
  • Convert a major portion of your cash into precious metals, to be stored in a minimum-risk jurisdiction, such as Singapore, Hong Kong or the Cayman Islands.
  • If you’re a citizen and resident of a major country that is likely to be a casualty, create a place of legal domicile in an alternate country.
  • Invest in land and/or built property in that country, or similar jurisdiction (property is the most difficult asset for any government to confiscate). Choose a country that has no annual property tax, if possible.

This is only the most basic of formats, but it works well, either in its entirety, or in part.

Many readers may say, “But I’m not wealthy. I can’t do any of those things.”

Again, this is complacency talking.

Anyone with $1,000 can create a foreign bank account. Anyone who additionally has the price of an ounce of gold can begin to remove his wealth, no matter how small, from risk.

Anyone with a skill can secure employment in a country where the damage is likely to be lesser than in his home country.

The cloud on the horizon is a flock of black swans. No one can predict when they might land. What can be said for certain is that, at some point, they most certainly will.

*  *  *

A big part of any strategy to reduce your political risk is to place some of your savings outside the immediate reach of the thieving bureaucrats in your home country. Obtaining an offshore bank account is a convenient way to do just that.

That way, your savings cannot be easily confiscated, frozen, or devalued at the drop of a hat or with a couple of taps on the keyboard. In the event that capital controls are imposed, an offshore bank account will ensure that you have access to your money when you need it the most.

In short, your savings in an offshore bank will largely be safe from any madness in your home country.

Despite what you may hear, offshore banking is completely legal and is not about tax evasion or other illegal activities. It’s simply about legally diversifying your political risk by putting your liquid savings in sound, well-capitalized institutions where they’re treated the best.

You may want to check out Going Global, our comprehensive publication where we discuss our favorite banks and jurisdictions for offshore banking including, crucially, those that still accept Americans as clients and allow them to open accounts remotely for small minimums.

Normally, this book retails for $99. But we believe this book is so important, especially right now, that we’ve arranged a way for US residents to get a free copy. Click here to secure your copy.

 

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Mon, 09/14/2015 - 18:17 | 6548401 FreeShitter
FreeShitter's picture

The trigger? The Rothschilds.

Mon, 09/14/2015 - 18:20 | 6548409 LawsofPhysics
LawsofPhysics's picture

Bingo.  Depressions always end in war.  A relative few want to maintain power and control over real resources, including the human kind, period.  That is what this has always been about.

Mon, 09/14/2015 - 18:31 | 6548419 AlaricBalth
AlaricBalth's picture

All Wars Are Bankers' Wars

https://www.youtube.com/watch?v=p-0BPMwgKNA

“...the consciousness of being at war, and therefore in danger, makes the handing-over of all power to a small caste seem the natural, unavoidable condition of survival.”

George Orwell, 1984

Mon, 09/14/2015 - 18:32 | 6548450 JungleCat
JungleCat's picture

It could be a hair trigger.

And Donald is his name.

Mon, 09/14/2015 - 18:36 | 6548458 AlaricBalth
AlaricBalth's picture

No one needs to guess at what a President Hillary Clinton administration would be like.  She would continue her disastrous neoconservative ways.  She would continue the unending wars, especially if she were to appoint a Cabinet full of neocons such as Michele Flournoy.

Hillary supporter Flournoy is a co-founder of the Center for a New American Security (CNAS).  It is the successor neocon think-tank for a Project for a New American Century (PNAC).  CNAS is funded by the military industrial complex; the same ones funding Hillary’s campaign.

Honduras, Libya and Egypt are only some of the ruthless policies that Hillary has perpetrated.  Not mentioned yet were her fingerprints on the destruction of Syria, repression in Bahrain, regime change planning for Venezuela, subversions against Cuba, and the illegal fascist coup in Ukraine.  Hillary’s belligerence with both China and Russia has ignited Cold War 2.0 that puts the planet at risk of nuclear war.  As a Secretary of State she was worse than a failure.

http://therealnews.com/t2/component/content/article/170-more-blog-posts-...

Mon, 09/14/2015 - 19:09 | 6548557 TeethVillage88s
TeethVillage88s's picture

CNAS states under Research:

Military, Veterans, and society – with the increasing numbers of veterans and military personnel, this CNAS program includes research in regards to this increasing community, including military personnel issues, veterans and military health care, transformative technologies and ways to serve veterans and military personal, and building national strategies in order to support them. Phillip Carter is the director of the program.[34]

- So we know CNAS is Bull Shit right there
- Veterans get shit on by the Cronys that manage their budget
- Veterans deserve better than PNAC & CNAS
- Veterans deserve better than the FED & US Congress
- But yeah, CNAS probably employs some Vets

Mon, 09/14/2015 - 19:29 | 6548621 Paveway IV
Paveway IV's picture

Black swans? I still insist Cankles the AntiChrist is going to crawl out of the CERN black hole once they hit a beam strength of 15 TeV. The CERN black hole will start fighting with Nibiru/Planet-X's near-black-hole gravity (it's actually a star, not a planet) and create some kind of hellish vortex and - along with HAARP - destroy the magnetosphere. The next filament eruption on the sun will cause the strongest Carrington-event the world has ever experienced. The North American craton to start sinking back into the mantle, triggering the Yellowstone Caldera to blow. This will happen just as the gigantic NASA-censored asteroid (well, one of them) plows into the Mediterranean.

About that time, the founding aliens will return, see the state of the world and conclude, "Forget the shaved monkeys. Just let it burn - let's get the hell out of here". 

Mon, 09/14/2015 - 20:44 | 6548787 hoist the bs flag
hoist the bs flag's picture

good Lord...i thought I was reading Tom Horn or Steve Qualyle clap trap there for a minute.

Mon, 09/14/2015 - 21:45 | 6548982 Implied Violins
Implied Violins's picture

Yup.

***nods head***

Tue, 09/15/2015 - 08:16 | 6549890 ThanksChump
ThanksChump's picture

That is only the more probable scenario.

 

If, however, Cankles T. A. gets stuck in the CERN black hole, she would effectively shield us from Nbiru's damaging gravitational pull. Then when HAARP fires, the only real damage will occur at the Event Horizon: Cankles' unibrow or fetid nethers will likely singe. The most devastating effect from this is folks at CERN will be laid-off, flooding the tech market with minimum-wage physicists.

 

Cankles has been chowing down since EmailGate. So, with the increasing probability of a total Cankles Blockage and the ensuing flood of physicists on the BLS numbers, I'd like to buy some Put options on your scenario, and load up on AAPL in anticipation of an iNuke announcement next year.

Mon, 09/14/2015 - 19:19 | 6548585 weburke
weburke's picture

.

Mon, 09/14/2015 - 20:09 | 6548721 Mr. Magoo
Mr. Magoo's picture

I think the trigger will be A flock of seagulls

Mon, 09/14/2015 - 20:20 | 6548731 aint no fortuna...
aint no fortunate son's picture

I think it will be a butterfly flapping its wings in... China.

Mon, 09/14/2015 - 22:10 | 6549064 undertow1141
undertow1141's picture

I ran

I ran 

So far away....

Mon, 09/14/2015 - 20:08 | 6548720 Supafly
Supafly's picture

The irony.  "on a long enough timeline..." vs these impending collapse submissions.  Which is it, Tylers?

Mon, 09/14/2015 - 19:44 | 6548669 pndr4495
pndr4495's picture

The real family name is Bauer. The name was changed.

Tue, 09/15/2015 - 00:55 | 6549441 fasTTcar
fasTTcar's picture

"The real family name is Bauer."

 

Perfectly fitting.  German for Bear.

Mon, 09/14/2015 - 18:24 | 6548420 Possible Impact
Possible Impact's picture

Some watch Rome burn, and still fiddle
with Syntax and Rhyme, but not Riddle
of why we don't fly
when doom it is nigh
and soon won't have squat to be diddled!

Mon, 09/14/2015 - 18:24 | 6548423 venturen
venturen's picture

hong kong? You are kidding right?

Mon, 09/14/2015 - 18:28 | 6548434 Latitude25
Latitude25's picture

"The paper gold market crashes, when the shortage of physical gold is revealed"

So is this what's happening every morning at the LBMA as the price drops and then later on the Wall Street ponzi keeps propping it up evey day in the US?

Mon, 09/14/2015 - 18:30 | 6548444 Occams_Razor_Trader
Occams_Razor_Trader's picture

"place some of your savings outside the immediate reach of the thieving bureaucrats in your home country"

and place it squarely in the hands of thieving bureaucrats of the foreign country of your choice!

Two words for the collapse- Schmi Tah!!

Mon, 09/14/2015 - 18:46 | 6548496 Crisismode
Crisismode's picture

 

 

STOP posting that Jewish Talmud Bullshit anymore.

Shemitah??

Shit-me-tata!

 

Mon, 09/14/2015 - 20:41 | 6548775 hoist the bs flag
hoist the bs flag's picture

exactly... ZH  shmetah/smegma fools...they go on and on about Zionist plots against the goy... but then use Zionist astronomical woo woo to predict the impending doom. BS

Mon, 09/14/2015 - 22:31 | 6549149 Peak Finance
Peak Finance's picture

You understand that it does not matter if you believe it or not,  what matters is that they believe it?

I know it's a fine distinction:  https://www.youtube.com/watch?v=QYmViPTndxw

Tue, 09/15/2015 - 06:36 | 6549718 Tall Tom
Tall Tom's picture

Come on....

 

It is all about him, after all.

 

Yes. We raised up a narcissistic generation, concerned only about themselves, unable to ponder what is gping on with the people in the rest of the world.

Tue, 09/15/2015 - 08:31 | 6549932 ThanksChump
ThanksChump's picture

C'mon....

 

Every thread - heck, everything - needs a top-notch schizophrenic's mystic leadership to steer the ever-present herd demographic.

Don't mess with traditions whose purpose you haven't taken the time to analyze.

When push comes to shove, do you really want the herd in your corner?

Mon, 09/14/2015 - 18:40 | 6548452 nnnnnn
nnnnnn's picture

"sudden and unseen event"  lol  world is close to ww3 and there is something like unseen events?

 

all markets are manipulated and directed, any crash is rigged

if the crash happens it was planned, if the bubble burst it was prepared

if anything devalues, it will devalue to the desired level of the guys behind the magic stick

 

Mon, 09/14/2015 - 18:38 | 6548461 JJdog
JJdog's picture

All these black swan events can be easily cover up by couple bullish reports from CNBC's Steve Liesman!  Just BTFD and everything will be fine! 

Mon, 09/14/2015 - 18:38 | 6548465 I Write Code
I Write Code's picture

I think the proper collective noun for a multitude of black swans is a "frack", not "flock".

The repeal of Glass-Steagall was slow-walked through the system for almost ten years, and everyone agreed it was a great idea.  Well, except for those who didn't.

Tue, 09/15/2015 - 08:31 | 6549931 Dick Gazinia
Dick Gazinia's picture

Yeah.  Signed by Clinton.  But 2008 was Bushes fault.  Don't believe me just ask a liberal.

Mon, 09/14/2015 - 18:39 | 6548469 A Lunatic
A Lunatic's picture

This is the end, but not yet......

Mon, 09/14/2015 - 19:44 | 6548667 All_Your_Base
All_Your_Base's picture

it's gonna get worse, before it gets much worse..

Mon, 09/14/2015 - 18:44 | 6548489 MD
MD's picture

Stocks will crash when both candidate Trump and Clinton agree that capital gains taxes need to be increased.  They both agree on this now.  Once the market catches on to this, it will crash.

Mon, 09/14/2015 - 18:54 | 6548515 Herd Redirectio...
Herd Redirection Committee's picture

Hoo ha.  Or it can be used as an excuse for a crash, "the market suddenly realized X".  They don't even need to implement or actually legislate anything!

Mon, 09/14/2015 - 18:46 | 6548498 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

If my bank swipes any of my money I will drive my car through the front window of the bank and scrape up what money they have in the till.

Mon, 09/14/2015 - 18:49 | 6548502 Bioscale
Bioscale's picture

This is how those "refugees" are throwing away water and food given by Hungarians:

https://www.youtube.com/watch?v=BFiumADzwdI

Let's see whether Germans will have more patience with these stupid people. Germany, terror is coming to you, Frau Angela knows this, she is your black swan.

Mon, 09/14/2015 - 18:51 | 6548506 TeethVillage88s
TeethVillage88s's picture

Before reading the article or comments I like to see what comes to mind.

-

- Mass Poverty and purposelessness
- Govt & Infrastructure Over-Burden
- Business Environment Requiring Govts to Increase Taxes as the Revenue Base Shrinks, Cities Collapse without Credit, Bond Crisis
- Other Bond Crisis spread to Regions & Major Cities

- Mass under Employment spread by Immigration and Refugees

- End of Lag of Refugees from Iraqi War, Global War on Terror

- Destruction of Borders, Spread of Camps in Border Regions through Europe, Europe Declares the USA has no Clothes and has caused this European Crisis, Ending NATO & Trade Agreements with the USA, Collapse of Trade between Europe & the USA including Legislation dampening Financial Ties, Financial Trade

- Destruction of Law & order within EU & USA, Purposeless people, the Criminal Class, the Disenfranchised Immigrants, the Careerless Class begin to plan out new kinds of governments, states, representatives, crime, pirating, banditry, organized cartels of poor or middle class who recruit police, and local government resistance

Mon, 09/14/2015 - 18:53 | 6548510 Callz d Ballz
Callz d Ballz's picture

bottom of lake = offshore

 

Mon, 09/14/2015 - 18:54 | 6548517 o r c k
o r c k's picture

Behold the Shemita stretch.

Mon, 09/14/2015 - 18:58 | 6548525 Ms No
Ms No's picture

Russia has been holding some very large military drills.    http://www.rt.com/news/315337-center-war-games-russia/

Mon, 09/14/2015 - 19:09 | 6548555 Comte d'herblay
Comte d'herblay's picture

Maybe, but I doubt it.  First of all everyone knows that it's never as complicated as you make it appear.  There are usually about 3 things that happen which the a lerts among us notice long b4, if ever the market does:

1) The amount of laughter on the NPR station---- which hosts the "Car Talk" show with those two perennial assholes---grows ever more annoying to the point that a double homicide would occur if anyone could get at them in the studio. 

2) men's facial hair in all of its permutations begins to invade every level of society and in such numbers that men without it look naked and are chastised publicly and fined for not growing it, however stupid, decrepit, and unkempt it looks.  This proliferation of hirsute cheeks, upper lips, chins, and side burns requires men to spend 4-10 times more in the morning styling their faces to declare their manliness to the world at large and in hopes of attracting the women of their dreams that they could not get with a clean shaven countenance and to disguise the truth that they are lost in the world, with no clue about what to do with the rest of their lives. Look for the next POTUS to also have permitted her upper lip to grow out such a thicket of hair, like a Chia pet on steroids 

3) George Stepinalotashit leaves GMA to campaign for his lifelong heartthrob, the cottage cheesy thighed, bloviating, "what difference would it have made" hilary rodman clinton whose whole life would turn to jelly wherein she would collapse into a puddle, evaporate by morning, and the world would be just a little better off without a clinton mini-dynasty aborning.  

And a sign that all is well, no depression is coming, crocuses blooming in January:

 Colbert's debut as talk show host flubs and everyone who worships at the altar of late night TV--- when they should have been asleep for two hours----goes into a lifelong depression affecting their productivity so badly that the unemployment rate drops to zero due to all the hiring that must occur to compensate for it.  Activists clamor, organize, and sue the network for allowing Leno and dave to loudly go into the long good night. The culture on the other hand breathes an alcohol tinged sigh of great relief that the United States weathered this crisis without invading another middle eastern country,  Venezuela, Haiti, or Canada, to work off the frustration.

Mon, 09/14/2015 - 19:18 | 6548592 Latitude25
Latitude25's picture

Oh.  I thought the guys with facial hair were just too lazy to shave.

Mon, 09/14/2015 - 22:16 | 6549093 undertow1141
undertow1141's picture

Little bit of coulmn A(fashion) and little bit of column B(sloth).

Mon, 09/14/2015 - 22:19 | 6549104 bilbert
bilbert's picture

+1 for #2............

 

I'm trying to recall the last print ad I saw that DIDN'T feature a bearded guy!

 

Speaking of which - in 20 years people will howl with laughter looking back on this time, just like looking at high school yearbooks from the eighties.

Tue, 09/15/2015 - 01:57 | 6549513 tarabel
tarabel's picture

 

 

Men's faciaL hair is making a comeback for one simple reason-- it's very hard for the ladies to steal this fashion statement from the boys and make it their own.

Not that they aren't trying to androgynize facial hair along with everything else. Witness that kook band from Austria. But this is an interesting, albeit unconscious, reaction to the continuing assault on masculinity.

The worm finally turns on the now-tattooed ladies.

Mon, 09/14/2015 - 19:12 | 6548569 TeethVillage88s
TeethVillage88s's picture

Guess he is speaking to Boomers or older generation.

Nothing for people that can't afford $99 for his book.

"Convert a major portion of your cash into precious metals, to be stored in a minimum-risk jurisdiction, such as Singapore, Hong Kong or the Cayman Islands."

Mon, 09/14/2015 - 19:15 | 6548577 Latitude25
Latitude25's picture

Just bit torrent it for free.  Who the hell buys books?

Mon, 09/14/2015 - 19:15 | 6548579 Pancho de Villa
Pancho de Villa's picture

Rather than saving the $99 now, but paying ?$$$'s on down the line, I think I'd prefer to send $10 to The Church of The Sacred Bleeding Heart of Jesus Christ located somewhere in Los Angeles to get my prayer read on the Radio and have All my Dreams come True! Hey, it worked for Mick!

 

/www.youtube.com/watch?v=VyK1bZZ7E-s

Mon, 09/14/2015 - 19:31 | 6548628 Really20
Really20's picture

"Cayman Islands, Hong Kong, Singapore..."

The main product in all of these three jurisdictions is the financial sector, i. e. the parasitism sector. In terms of a real economy they have got little to nothing, and moreover their real economies are dependent on global trade and tourism which would collapse in the context of any worldwide financial collapse. Indeed, much of the US's "real economy", which is unnecessary consumerim, will collapse under the weight of our crashing debt-backed monetary system. But at least the US and Europe will have the natural resources and agriculture needed for recovery. It will be a slow and painful process, but it will happen for these larger regions. Smaller city-states will be the MOST volatile jurisdictions in the context of a real collapse.

Mon, 09/14/2015 - 20:58 | 6548825 squid
squid's picture

Ahhhh....nope.

 

I've lived in Singapore now for 25 years. Why?

Well, I get paid here about 100% better than I would in my old country Canada and the highest income tax rate here is (drum roll please....) 17%, which is the corporate rate. If I went back to the great white north, I'd pay 50 cents on the dollar on half my salary so my take home would drop by 75%. Now you know why I live here. I fill in the same tax form as Exxon Mobile, its 4 pages long. My grand Mother's tax form in Canada was longer than that.

Medical:

Canada you get FREE (there is your 50 cents on the dollar mostly given to bloated nursing unions) access to a waiting line. You have two choices, fly out to somewhere with no waiting line or wait and die. Your socialized health care choices, take it or leave it, isn't freedom wonderful.

 

In Singapore I can:

1. Go to a public hospital and wait (most Singaporean do this because its cheaper and the locals are notoriously cheap....which is good),

2. Go to a private hospital.

 

Case in point....hurt my hand at work Tuesday. Hand swelled up over night, 0900 Wednesday morning head to A&E at Parkway East hospital, Consultation, X-Ray, X-ray interpretation, closing consultation back in the office at 1100 hours.

For all Canadians reading this, you read that correct. Accident-Emergency, consultation, X-Ray, Interpretation, final consultation, taxi back to the office and I'm back at work in under TWO HOURS! In Canada that saga would take 24-36 hours. Cost $175.00 Singapore dollars. Now you know another reason why I stay here.

 

Estate Planning.

Singapore runs under British law, that's its roots. No estate tax and.....get this EVERYONE from any OEDC country, the mandatory retirement scheme here, the Central Provident Fund, CPF, you can leave to your descendants. When you die, if you have $600,000 in your account and you leave it to you wife, she shows up at the CPF board with a death certificate and her IC (identity card) and she gets a cheque for $600,000. Now, my Canadian and American brothers, what happens to your "uncollected" Canada Pension or Social Security when you die? Can you leave that to your descendants? How about national insurance in the UK (even the name is a lie in the UK)? Enough said.

 

Went to buy a car four months ago, current one was 8 years on so bought a new Honda. My wife is Chinese so likes to keep our liquid cash in our hands so wanted to do the car on payments...MAS (Monetary Authority of Singapore) changed the rules, max loan for a new car is 60%. You MUST place 40% cash down, or no new car (In CANADA a new car is ZERO% down). Same with housing, you MUST put 20% down. If its your first property, no problem, second third etc they hammer you with extra stamp duty (to discourage speculation) and check your leverage ratios based on your tax return to make sure you can actually pay the money back. The attitude here to banking and borrowing is so diametrically opposite to that of Canada and the USA it makes you head swim. Bankruptcy here is a BIG DEAL! In Canada lots of people declare bankruptcy several times over their lifetime, no problem. You can't do that here. Its a big deal here to be, as the locals call it, a "Bankrupt". Its a sign of shame, like you're a child and can't handle yourself. You can't start a company here if you are an undischarged bankrupt, not allowed. In Canada bankrupt charlatons starting companies are a complete way of life.

 

The Government here has a surplus budget philosophy, surpluses every year. In my 25 years here they ran a deficit 4 times, that is in 21 years out of 25 they were in surplus. And the finance ministry does this trick with the government books whereby they borrow CPF funds from the CPF and hand it to the GIC (government Investment Corporation) or Temasek Holdings (government investments) so that on the IMF sheet they look like they have 100% debt to GDP ratio. This is by design, they do this on purpose so that Singaporeans can get a 2.5% interest rate on their CPF retirement accounts from the funds' excess returns. They also have 124 tonnes of gold in various places all over the world and....are armed to the teeth.

 

In 2007 when the banking crises started, Parliament rolled back their own wages by 5-20% across all the civil service and government linked companies in anticipation of the contraction. They move fast here, they have NO ILLUSIONS about their place in the world.

 

So telling me that you think Singapore will up and die when this crash comes.....no, they won't. They'll react like they always have, again, no illusions. What they will NOT do:

1. Close banks,

2. Close the stock exchange,

3. Restrict the flow of capital.

They will never do that. HK closed in the 1987 during the market meltdown, Singapore did not. Many people remember that. You can do banking here, absolutely.

 

Another data point, go to a bank here and cash a cheque for say, S$120,000.00. You read that right, I said CASH THE CHEQUE!!! In Canada they would laugh me out of the bank. 1994 Christmas time I flew home to spend the holidays in the snow. In those days laptop computers were cheaper in North America than they were in Asia, I'm not kidding. I have US$1900 in my pocket and C$2900 folded up in the HP41CV case in my computer bag. If someone wanted that money, they's have to kill me first. Dec 23, went to CIBC, the same branch I took out my now discharged student loan back the early eighties and deposited the money. The skank make me fill in a bonding form because I 'might' be a drug dealer....pppfffftt.. A free country my ass. Fine, Dec 27, I go back at the bank and want to withdraw C$4,500. Recall 4 days previous I deposited C$ equivalent 5,000 SO I KNOW THE CURRENCY IS THERE!. The skank tried to sell me a cashiers order for $25 and lectures me on how "That's allot of money sir". WTF? I replied "Yes, its allot of money AND ITS MINE!!". Made me wait 25 minutes to get the currency our of the vault. Idiots....poor fucker I bought the laptop from didn't know what to do with $4,500 cash. This was in 1994, we've fallen way deeper down the rabbit hole since then. Now, in Singapore you hand the teller a cheque for S$120,000 and she:

1. Doesn't try and sell you a cashiers order (because if you wanted one, you would have asked for one),

2. She doesn't ask you what the money is for (that is none of her business and she knows that),

3. She does NOT lecture you about "it being allot of money".

 

What she does is ask you the following:

"What kind of notes would you like for that withdrawal sir?".

Yes brothers and sisters, you read that correctly, "what kind of notes would you like sir". Music to my ears that is.

Keep the gold at Certis Cisco security, they have 4 branches all over Singapore with 20 hours a day access to your safe box, 7 days a week. Some branches have 24 hour access. All outside the banking system. They're local only so they don't give a fuck about FACTA for my American brothers. Brinks is also here but they do care about FACTA.

 

Singapore will react and survive fine. The proof of the pudding is in the eating. I trust these guys a hundred times more than the crooks in Canada's Parliament back home any day. Yes, the fishing and scenery in Canada is great....its just the carbon units that infest the place that give me the creeps.

 

Squid

 

 

Mon, 09/14/2015 - 22:28 | 6549146 3rdWorldTrillionaire
3rdWorldTrillionaire's picture

You're selling me on it... now to google, "singapore women tumblr"...

Tue, 09/15/2015 - 01:37 | 6549488 Greater Fool Theory
Greater Fool Theory's picture

A few years ago, when it appeared banks around the world were rejecting applications from US citizens, I jumped on a plane to S'Pore and opened bank and brokerage accounts.  Probably still possible, but that window isn't as wide open as it used to be.  I agree with the author.  Diversifying political and economic risk by moving some assets abroad seems a good idea.  My first choice was Singapore.  I've never been to Caymens so I cannot compare.  I have been to S'pore and it is an amazing country/city.

Tue, 09/15/2015 - 01:39 | 6549491 Lost in translation
Lost in translation's picture

I'd go to Singapore in a heartbeat but I don't have much money, and no rare skills. Pity.

Mon, 09/14/2015 - 19:34 | 6548637 davidalan1
davidalan1's picture

swept under the carpet...Cyprus, Greece, Iceland, Brazil, Portuagal,Ukraine,Iran,middle east, U.S. state debt, postal service, frozen debt clock. Im stuck as to what to do...I dont want to take action when all seems fine...so fucked...

Mon, 09/14/2015 - 19:54 | 6548693 Outlaw_Rambler
Outlaw_Rambler's picture

Am I the only one who sees that some of those triggers are already happening in some way or the other?

Mon, 09/14/2015 - 20:14 | 6548715 Fuku Ben
Fuku Ben's picture
  • Commodity prices spike
  • They already do. And some as often as daily. One cause is just in time delivery. While it has effects like reduces costs in parts of the supply chain and increases efficiencies it also increases costs and availability risk to consumers. Price volatility is high. 1 item I noted over a 7 day period had an increase of 100%. Sudden stoppages or interruptions with little or no onsite inventory (typical large business model) has the possibility to send prices through the roof very rapidly.

  • A crash occurs in the stock or bond market
  • Very possible. And defaults are already happening as an early warning sign.

  • A backlash occurs from countries sanctioned by the US
  • Already happening and likely to grow rapidly with the current global leadership failure to come together publicly on unified monetary platform, strategy and transition. (i.e Russia/China oil/yuan)

    http://www.zerohedge.com/news/2015-06-09/petroyuan-born-gazprom-now-sett...

  • European countries default on their debt
  • Noted above: Also Defaults in numerous countries
    China, US, Greece etc. plus many at high risk

    http://www.zerohedge.com/news/2015-08-06/which-countries-have-highest-de...

  • The US or EU introduce significant tariffs, diminishing
    world trade
  • 1929: recession;depression;currency war;trade war; world war
    2015: same thing but add in cyber war; covert war; spiritual war and compress the time frame they all occur.

    Similar to how the 1973 crash happened over about 2 years. The same percentage crash now happen in about 6 months.

  • Interest rates rise, as they did in 1929
  • But Ben Bernanke said they learned the first time and it won't happen again. He promised.

    http://www.federalreserve.gov/boarddocs/Speeches/2002/20021108/default.htm

  • The paper gold market crashes, when the shortage of physical gold is revealed
  • Probably not likely unless they purposely pull the plug with or without a plan (i.e. planned transition and change.)

  • Banks freeze or confiscate deposits
  • Highly possible. You should keep anything in a bank you can't afford to lose. If not temporary access then permanent access. I've posted several of the ways they have set everyone up to "legally" take everything you own.
    ________________________________________________

    A group of Swans are a Wedge

    Mon, 09/14/2015 - 22:44 | 6549166 bilbert
    bilbert's picture

    "A group of Swans are a Wedge"

     

    And a group of Wedgies are called a Krugman...............

     

    "Japan needs to reach a point where everyone believes that it has pulled out of deflation, Krugman said. "And then if that can be believed, then it may be able to stay out of trouble thereafter”.

     

     Can't make this shit up...............


    Mon, 09/14/2015 - 23:27 | 6549296 Fuku Ben
    Fuku Ben's picture

    I skipped that post the other day. That sounds like a Krugman statement though. If he were a frequently quoted top Airline Executive an equivalent statement would be if the passengers had only believed the pilot wasn't going to purposely crash the plane it wouldn't have happened.

    http://www.zerohedge.com/news/2015-09-10/paul-krugman-really-really-worr...

    1 correction to my first comment on this post.

    You should NOT keep anything in a bank you can't afford to lose.

    I wouldn't want anyone thinking I'm turning into Krugman.

    Mon, 09/14/2015 - 20:33 | 6548761 TheEndIsNear
    TheEndIsNear's picture

    More Spam from Doug Casey.

    Mon, 09/14/2015 - 22:28 | 6549142 jcdenton
    jcdenton's picture

    Or, you could have listened on 3/24/2015. But the MSM, and other alt-media said -- NO!

    When we understand that a certain individual was quite instrumental in taking down Frank Balistrieri. And we come to understand that Frankie Bal had an awful lot to do with the JFK assassination, this is big deal ..

    https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp

    Mon, 09/14/2015 - 22:39 | 6549177 kelley805
    kelley805's picture

    Here is how to prepare financially.

    http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/

     

    Here is how to get your mind off this stuff.

    http://michaelekelley.com/category/humor/

     

    Good luck!

    Tue, 09/15/2015 - 01:08 | 6549464 small_potato
    small_potato's picture

    Waiting for the Big Drop

    For those who are open to mystical predictors like Shemitah, or deterministic historical cycles, there is another website you should be reading. If this is really the beginning of a true world cataclysm (with much worse to follow), then where has been the voice of the Christian God? Does He not exist or care what is happening with His hapless Creation? Well He does, and he has been speaking, quite often over the last century, in a series of what are called "locutions" to various messengers in various countries and locales. This is how He prefers to speak to us, through specifically chosen messengers, often children or women. He has spoken even more frequently and urgently in the last few decades and years, about the coming worse times, warning and pleading with us to prepare ourselves.

    The most compelling and timely locution however has been from Mary of Nazareth, whom Christians hold to be the mother of the Jewish Messiah (Jesus/Yeshua). It turns out that she is surprisingly in agreement with the contrarian spirit of Zero Hedge, that the modern economy is highly false and irresponsible, and its collapse is going to be the beginning of a major downturn for the affairs of man. She has been speaking in a unique locution for the last five years, and has said some amazing things in that time. Finally posted last week, in a message dated Sept. 3rd, she has revealed the date of the "big drop" in Western markets - it will be next week, while the Pope is in the US. (This timing makes sense, since it will be right after the Fed decision - look no further for a Black Swan than that.)

    But for candid prognosticators among you, I highly recommend reading her website. Not only has she spoken specifically of coming economic collapse, but also of wars to come, the actions of Putin, Iran, Syria, the fall of Israel (in 2017?), and the radicalization of America. Her purpose in this is not to protect our money (or to make money), but because the times really will become darker and harder for many people. These troubles have not been a creation of God, but were created by the selfish, greedy and prideful spirit of man. She promises to be with us during the dark times, to send light and supports, even mystical gifts, for those who will return to God and faith, in whatever form, and take her words to heart.

    It is about love, bot we are not alone, God is with us, He is all-powerful and He will not abandon His children, despite their folly. Read her words, know faith and the love of God. I know ZH readers are contrarians, including myself, meaning we maybe have a bigger dose than normal of healthy skepticism and critical ability. But don't lose your capacity for innocence and candidness, even if it may be naive at times. Life is not about fear, and fear will not save any of us. There is an evil spirit behind man's foolish plans and actions in the world, and he wants nothing more than our destruction, and giving of our lives and souls over to fear and hatred and our own survival. But only love, trust and faith will save us from the darkness and hatred of the world.

    www.locutions.org

    Go to the heading marked "read the locutions" for a listing of the most recent messages on the right. The older messages are all available there as well.

    FYI, below is a small sampling of the more significant locutions of recent decades, many from the Messiah or God the Father Himself. There have been many others. Unfortunately, these sites and messages have only been known to a pious few. But the internet has made these new ones more readily available, and God does not hesitate to use the internet, as he wants his messages to be heard by all people, everywhere. The messages on these sites are posted in their entirety and free.

    God is speaking to us indeed, through many voices, and very frankly. He has not abandoned his children.

    www.medjugorje.orog (Mary, 1983-89)
    www.tlig.org (Jesus, 1983-2003)
    www.directionforourtimes.com (mostly Jesus, 2003-2006)
    www.gods-messages-for-us.com (mostly God the Father, 2011-ongoing)
    www.jabazinaction.blogspot.com (God the Father, 2011-ongoing)

    Sorry for preaching, I hope I haven't offended the delicate sensibilities of any skeptical ZHers, its just for those who are interested, and I won't be a regular presence in here. And it's no worse than Shemitah stuff, or trying to plot historical cycles, as if life is deterministic. Our fate is still affected by our free will, so it can't truly be predicted - except maybe by God! And Mary is officially calling for the big drop to be next week! She called it on Sept. 3rd, lets see if she's right! A correct call is a correct call, and she will deserve her credit.

    Tue, 09/15/2015 - 02:55 | 6549571 Gatt
    Gatt's picture

    Now seems to be a great time to put savings into gold Sovereigns and simply hide them well at home. The Chinese are already dumping US Treasury bills as fast as they can without actually causing a crash - the trigger, I suspect will be when there are not enough takers for all the US$ everyone wants to sell.

    Neocons seem to be ready for & want WW3 before Obama is out of office so good bet to expect them to try trigger WW3 by assassination attempt against President Putin,maybe via major false flag at NY United Nations meeting this month

    Tue, 09/15/2015 - 07:32 | 6549795 stiler
    stiler's picture

    The trigger will be the man of sin gaining power, and war; if this is the big one. But these will only be what we can see with the eye. Behind the curtain, not the Land of Oz one, but the time and space curtain, the reason is, the One with authority to open the Scroll by breaking its seals will begin to do so-- the seals of the Scroll of the Revealing of Who He Is. History has a culmination in the One WHo made everything or the possibility of it.

    Tue, 09/15/2015 - 15:43 | 6552160 jacship
    jacship's picture

    Tyler

    show the zh's

    the list

    of all bank's

    derivative's

    and how oil hedging

    can make the market

    Dance

    Do NOT follow this link or you will be banned from the site!