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Apocalypse Now: Has Next Giant Financial Crash Already Begun?
Apocalypse Now: Has Next Giant Financial Crash Already Begun?
Paul Mason, writing in The Guardian, describes how we are already at the beginning of a financial Apocalyse. “A predicted global meltdown passed without event. But there are enough warning signs to suggest we are sleepwalking into another disaster”.
He suggests all the signs are present to indicate that the financial apocalyse has begun:
“Let’s assemble the evidence. First, the unsustainable debt. Since 2007, the pile of debt in the world has grown by $57tn (£37tn). That’s a compound annual growth rate of 5.3%, significantly beating GDP. Debts have doubled in the so-called emerging markets, while rising by just over a third in the developed world”.
“John Maynard Keynes once wrote that money is a “link to the future” – meaning that what we do with money is a signal of what we think is going to happen in the future. What we’ve done with credit since the global crisis of 2008 is expand it faster than the economy – which can only be done rationally if we think the future is going to be much richer than the present”.
“This summer, the Bank for International Settlements (BIS) pointed out that certain major economies were seeing a sharp rise in debt-to-GDP ratios, which were well outside historic norms. In China, the rest of Asia and Brazil, private-sector borrowing has risen so quickly that BIS’s dashboard of risk is flashing red. In two thirds of all cases, red warnings such as this are followed by a major banking crisis within three years.”
“The underlying cause of this debt glut is the $12tn of free or cheap money created by central banks since 2009, combined with near-zero interest rates. When the real price of money is close to zero, people borrow and worry about the consequences later.”
“So, the biggest risk to the world, despite its growing seriousness, is not the deflation of a bubble. It is the risk of that becoming intertwined with geopolitics. Any politician who minimises or ignores this risk is doing what the purblind economists did in the run up to 2008?.
Read the full article “Apocalypse now: has the next giant financial crash already begun?”
Paul Mason is a respected journalist and broadcaster. He is a former economics editor of BBC’s Newsnight and currently he is economics editor of Channel 4 News. He can be followed on @paulmasonnews.
DAILY PRICES
Today’s Gold Prices: USD 1130.90, EURO 1029.82 and GBP 733.95 per ounce.
Friday’s Gold Prices: USD 1135.80 , EURO 1030.86 and GBP 733.86 per ounce.
(LBMA AM)
Gold was down again yesterday closing at $1134.30, a loss of $7.20 on the day. Silver lost $0.09 to close at $15.4. Platinum lost $8 to $974.
IMPORTANT NEWS
Gold slides to lowest settlement in a month – MarketWatch
Manufacturing in U.S. Stagnated in October on Weak Global Sales- Bloomberg
You Heard Right: A Billion Dollars in Gold is Coming to Texas – KUT.org
Metal detector hunter’s £1.3M coin find declared official treasure trove – Irish Mirror
ECB Officials Met Regularly With Financial Institutions – Wall Street Journal
IMPORTANT ANALYSIS
These charts show London is in a housing bubble and it’s going to pop – Business Insider
The FTSE decline has finally begun – MoneyWeek
Catalonia and the Move Against Empires – International Man
Have Commodities Reached an Inflection Point? – GoldSeek
Here’s How Much QE Helped Wall Street Steamroll Main Street – Bloomberg
Read more News & Commentary on GoldCore.com
Download Essential Guide To Storing Gold Offshore
Download Essential Guide To Storing Gold In Switzerland
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The stock markets don't matter, they are a diversion. Here is the script of what is to follow.
1. The next collapse is going to be triggered by the bursting of the derivatives bubble (sovereign debt bubble won't collapse because the Central Banks will ensure it doesn't). The stock markets may follow, but that is completely irrelevant. When the derivatives bubble bursts, likely to be initiated by the commodity derivatives (and not interest rate derivatives which the Central Banks can prop up, by not raising the interest rates), banks which have huge exposure to commodity derivatives will collapse.
2. Banks will be bailed-in shaving off deposit account balances over the insured limits affecting all businesses.
3. Businesses will see their working capital shaved off leading to retrenchments causing explosion in unemployment.
4. The US will initiate more government spending, this time to pay the people directly to increase consumer spending. Except House Republicans will refuse to raise the debt ceiling (which has just been raised to meet expected shortfall until March 2017), but will agree to abstain from voting and allow the spending bill to be passed if the government agrees to raise the money by selling Federal Government assets instead of borrowing. Welcome to the High Face Value Platinum Coin sales for funding government spending.
5. This will lead to a stampede out of the US$ by foreign holders of US$ and US$ denominated fixed income assets like bonds, to protect the value of their savings from depreciation by explicit money creation without corresponding debt creation which is sure to result in high inflation, and into the €.
6. The Eurozone will panic when the € starts rising like crazy and impacting the competitiveness of Eurozone exports. The ECB will intervene by buying up the US$ flooding into the € in order to maintain the value of € steady.
7. Then will begin the panic buying of gold, knowing that there is very little physical gold available to buy.
8. Gold prices will climb up to 2 or 3 times the current levels in less than a month.
9. Frustrated with the devaluation of their savings (in gold terms), the BRICS will announce the 100% gold-backed currency (exchangeable for gold at fixed rate) for international trade settlements, through their New Development Bank and demand payment for their exports in this currency (effectively gold).
10. All gold available in US$ or a currency exchangeable for it (e.g. €) will start getting depleted, in order to purchase gold to pay for the imports from the BRICS countries.
11. Oil exporters will start pricing their exports in the NDB's currency and demanding payment in it.
12. Gold prices will cross the stratosphere in US$ terms.
13. US will ban gold leaving the US shores.
14. Panicked ECB will unpeg the € from the US$ and allow it to float in order to stem the outflow of gold from the Eurozone.
15. Gold prices in US$ terms will reach escape velocity.
16. When no country is willing to accept US$ as payment for their exports, but all US exports are paid in the US$ accumulated outside the US, the US will have to pay for its imports in gold.
17. Possession of gold bullion will be outlawed again, just as in 1933, and all the gold held within the US confiscated and gold certficates redeemable in legal tender, at rates prevailing at the time of redemption, will be issued.
18. With the US$ becoming worth less than the toilet paper US will "convince" Mexico and Canada to extend credit lines in their respective currencies to the US, for the US to continue to import from Mexico and Canada.
19. But since the US really has no way repaying these loans, there will be discussions to come to a permanent arrangement that doesn't involve loans.
20. A North American Union à la European Union will be announced with common currency (Amero?), free movement of capital, goods and people.
Coming soon, to a theatre near you, in early 2016 and will complete by 2017 i.e before Obama leaves office. Enjoy the movie.
Great!!! There goes the smackdown tomorrow morning when the Bullion banks read this! Way to go!!!!
I'm smoking crack cocaine right now, and man do I feel goooooood.........!
"A zionist will commit a crime to save a dime."
Paul Mason will sell no wine before it's time...
haha I love that.
when you look at this chart here => http://www.bit.ly/1OjUHXw it seems the bull markte is about to start its next leg higher. If that is about to happen, its going to castrate the bears out there, just like in 2009. ouchies.
I do not think the market will crash, and you can see how careful the fed is with their calls, they are very hawkish right now.
Fed is like a LED light, they say something and then switch off, its like they are trying to catch traders out by kicking them in the balls mid flight, and saying "you have been had"
We keep melting up, the fed comes out and says they will raise rates, the market dips a bit, then they say, no no wait, we were wrong, no rate rise this month, and the market rallies for weeks on end after that. The bears must be crying in their soup right now.
dude, get a grip. it is manipulated, stfu and take a dip, dip shit...
Phoenix, is that you?
HA! Is he using disguises now?
Wrong again GoldCore, lol
1oz Silver American Eagles €12 @ EurGold
https://www.eurgold.eu/silver/american-eagle-1oz-silver-coin-1-dollar-le...
Put me down for 50.
I prefer to do business directly, so give me your phone number - at home.
Or did the last financial crash ever end? As long as we support central authority with command & control over the money system we will continue crashing. It's inevitable.
https://www.youtube.com/watch?v=Cd-SLRyuRq0
Great Question!
I personally don't think so. We shifted further into a socialist/fascist/soviet-type Central Planning mode even moar.
Or,
"Socialism for thee, not for me."
---G Soros.
“John Maynard Keynes once wrote that money is a “link to the future” – meaning that what we do with money is a signal of what we think is going to happen in the future. What we’ve done with credit since the global crisis of 2008 is expand it faster than the economy – which can only be done rationally if we think the future is going to be much richer than the present”.
Risk is the link to the future as it tries to estimate future. The fact that it gets rolled up into credit creation leading to money creation is the only reason why money is the link to the future. It shouldn't be.
Yeah, Yeah, Yeah,
Keep telling us how the system is going to Collapse . . . .
You've been blathering the same old bullshit for many years now.
So, now please tell us ...
GIVE US A DATE WHEN IT TOTALLY COLLAPSES, ASSHOLE!!
Extrapolate...
http://finance.yahoo.com/news/why-many-lottery-retailers-buying-222742705.html