Mass Carnage: Stocks, Bonds, Gold, Silver, Europe And Japan All Get Pummeled

Car AccidentCan you smell that?  It is the smell of panic in the air.  As I have noted before, when financial markets catch up to economic reality they tend to do so very rapidly.  Normally we don’t see virtually all asset classes get slammed at the same time, but the bucket of cold water that Federal Reserve Chairman Ben Bernanke threw on global financial markets on Wednesday has set off an epic temper tantrum.  On Thursday, U.S. stocks, European stocks, Asian stocks, gold, silver and government bonds all over the planet all got absolutely shredded.  This is not normal market activity.  Unfortunately, there is nothing “normal” about our financial markets anymore.  Over the past several years they have been grossly twisted and distorted by the Federal Reserve and by the other major central banks around the globe.  Did the central bankers really believe that there wouldn’t be a great price to pay for messing with the markets?  The behavior that we have been watching this week is the kind of behavior that one would expect at the beginning of a financial panic.  Dick Bove, the vice president of equity research at Rafferty Capital Markets, told CNBC that what we are witnessing right now “is not normal. It is not normal for all markets to move in the same direction at the same point in time due to the same development.”  The overriding emotion in the financial world right now is fear.  And fear can cause investors to do some crazy things.  So will global financial markets continue to drop, or will things stabilize for now?  That is a very good question.  But even if there is a respite for a while, it will only be temporary.  More carnage is coming at some point. (Read More….)

Will The Chinese Renminbi Replace The U.S. Dollar As The Primary Reserve Currency Of The World?

 

Will The Chinese Renminbi Replace The U.S. Dollar As The Primary Reserve Currency Of The World?.

Recession Looms: GDP Revised Down to 1.3%, Durable Goods Collapse 13%

Recession Looms: GDP Revised Down to 1.3%, Durable Goods Collapse 13%.

COLLAPSE OF THE DOLLAR, IMMINENT??

Alex Jones published a surprising paper on flexible quantitative (QE3). The information that was exposed is very interesting, and is also somehow telling the world prepare for the worst between the months October-November-December. The paradigm shift is accelerated and has no turning back. The collapse is inevitable. The world will have to replace the dollar. Check here the link:http://www.prisonplanet.com/%E2%80%9Cdollar-index-headed-for-rapid-collapse%E2%80%9D-over-next-3-to-4-weeks.html

My comment:
The Federal Reserve is a secret society illuminati. This system is privately owned and not owned by the government. The system was initiated by the Rockefellers, Rothschilds, with the sole purpose of gaining control of the world economy. The creators of the Federal Reserve are the founders of the Council on Foreign Relations (CFR), which are interconnected with Freemasonry, the Trilateral Commission, the Bilderbergs, the Club of Rome, the Committee of 300 (which controls the finances, insurance, politics , industry, and religion, and leader of this Committee is Queen Elizabeth), G-8, Knights of Malta, Vatican, World Economic Forum; Rosicrucianism, the Knights of the Garter, the Priory of Sion (they believe to be the bloodline of the Holy Grail bloodline of the antichrist) and others.

The Federal Reserve slashed interest rates and loans to lower levels of history. This type of monetary policy triggered the debt crisis, which erupted after an implosion in 2008. Starting from that point on the dollar has become inflationary. Then this money was injected into the U.S. banking system by devaluing the dollar even more, with the prints, fiat money. It is because of that that QE2 failed. And now in 2012, the Fed again, injected the third round of prints fiat money to banks to defend themselves against multiple crises to come. The Federal Reserve is not insane, she knows very well what he is doing. She wants to destroy the dollar and replace it with the AMERO. This is the political illuminati.

As you see, is all part of a plan!!

If there really is an economic recovery, so why the Fed is still keeping interest rates at almost zero after almost three years, and that keeps measures Quantitative Flexible ?

The logic is that this will spill over into a hyper-inflation!!

Alex Jones is right to say that there will be hyperinflation. The collapse of the dollar is inevitable. The probability is very low in saying that the dollar will again rise. This will hurt exports and mainly OPEC. The result will be a currency crisis. The whole world will opt for other reserve currencies, will opt for gold, will opt for various exchange mechanisms, ie, it will not stop, the dollar will fall like a stone.

So what is the solution? AMERO.

The illuminati plan is to present the AMERO, in the world between November-December as shown in some of the articles posted anterios. See the link here:https://www.facebook.com/groups/globalresearch/permalink/10150674124913652/

I think things are going very fast.
The plan is being followed to the letter, the illuminati plan is functioning !!

We have to wait and see how things will unfold. If these changes occur, the AMERO will be the currency that is circulated electronically on the world market. This means that the next step of the illuminati is World War III.

Are you prepared?

Published by       Alexandre Silva

QE3: Helicopter Ben Bernanke Unleashes An All-Out Attack On The U.S. Dollar

You can’t accuse Federal Reserve Chairman Ben Bernanke of not living up to his nickname.  Back in 2002, Bernanke delivered a speech entitled “Deflation: Making Sure ‘It’ Doesn’t Happen Here” in which he referenced a statement by economist Milton Friedman about fighting deflation by dropping money from a helicopter.  Well, it might be time for a new nickname for Bernanke because what he did today was a lot more than drop money from a helicopter.  Today the Federal Reserve announced that QE3 will begin on Friday, but it is going to be much different from QE1 and QE2.  Both of those rounds of quantitative easing were of limited duration.  This time, the quantitative easing is going to be open-ended.  The Fed is going to buy 40 billion dollars worth of mortgage-backed securities per month until they have decided that the economy is in good enough shape to stop.  For those that get confused by terms like “quantitative easing” and “mortgage-backed securities”, what the Federal Reserve is essentially saying is this: “We’re going to print a bunch of money and buy stuff for as long as we feel it is necessary.”  In addition, the Federal Reserve has promised to keep interest rates at ultra-low levels all the way through mid-2015.  The course that the Federal Reserve has set us on is utter insanity.  Ben Bernanke can rain money down on us all he wants, but it is not going to do much at all to help the real economy.  However, it will definitely hasten the destruction of the U.S. dollar.

And the Federal Reserve is apparently very eager to get QE3 going.  Purchases of mortgage-backed securities are going to start on Friday.

In the coming months, hundreds of billions of dollars that the Federal Reserve has zapped into existence out of nothing will be injected into our financial system.

So what will happen to all of this new money?

If banks and financial institutions use that money to make loans then it could have somewhat of a positive impact on the economy in the short-term.

However, the truth is that it isn’t as if banks are hurting for cash to loan out.  In fact, right now banks are already sitting on $1.6 trillion in excess reserves.  Just like with the first two rounds of quantitative easing, a lot of the money from QE3 will likely end up being put on the shelf.

But the stock market loved the news because they know that the previous two rounds of quantitative easing have been great for the financial markets.  On Thursday, the stock market soared to levels not seen since December 2007.

There is much rejoicing on Wall Street right now.

And this stock market bounce is great for Bernanke’s good buddy Barack Obama.

Obama nominated Bernanke to a second term as Fed Chairman, and this might be Bernanke’s way of paying him back.

But of course the Fed is supposed to be “above politics” so that would never happen, right?

The Federal Reserve essentially “crossed the Rubicon” today.  No longer will quantitative easing be considered an “emergency measure”.  Rather, it will now be considered just another “tool” that the Fed uses in the normal course of business.

Considering how vulnerable the U.S. dollar already is, announcing an “open-ended” round of quantitative easing is utter foolishness.  According to the Fed, when you add the 40 billion dollars of new mortgage-backed security purchases per month to all of the other “easing” measures the Fed is continuing to do, the grand total is going to come to about 85 billion dollars a month.  The following is from the statement that the Fed released earlier today….

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will continue through the end of the year its program to extend the average maturity of its holdings of securities as announced in June, and it is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.

The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases.

So what does all of this mean?

I really like how one analyst put it when he described this announcement as a “I’m gonna ease till your eyes bleed kinda statement“.

The Fed also promised to keep interest rates at “exceptionally low levels” until mid-2015….

To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens. In particular, the Committee also decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015.

It seems that whenever the U.S. economy gets into trouble, Bernanke and his friends at the Fed only have one prescription and it goes something like this….

“Print more money and promise to keep interest rates near zero even longer.”

Of course a lot of Republicans are quite disturbed that QE3 was announced with just a couple of months remaining in a very heated election battle.

Even big news organizations such as CNBC are commenting on this….

Though the Fed is ostensibly politically independent, the decision comes at a ticklish time with the presidential election less than two months away.

And without a doubt the mainstream media will be proclaiming this to be “good news” for the economy in the short-term.

But is QE3 really going to help the average person on the street?

Well, first let’s take a look at employment.  We are told that one of the primary reasons for QE3 is jobs.

But did QE1 and QE2 create jobs?

The answer is clearly no.

As you can see from the chart below, the percentage of working age Americans with a job fell dramatically during the last recession and has not bounced back since that time despite all of the quantitative easing that has been done already….

So why try the same thing again when it did not work the first two times?

But what more quantitative easing is likely to do is to pump up stock market values because a lot of the money from QE3 is going to end up being put into stocks and other investments.

This is going to help the wealthy get even wealthier, and it is going to make the “wealth gap” between the rich and the poor even larger in America.

QE3 is also probably going to cause commodity prices to rise just like QE1 and QE2 did.

That means that you will be paying more for gasoline, food and other basic necessities.

So there may not be more jobs, but at least you will get the privilege of paying more for things.

The inflation that QE3 will cause will be particularly cruel for those on fixed incomes such as retirees.

None of the extra money from QE3 is going to go into their pockets, but they will have to pay more to heat their homes and fill up their shopping carts.

And the “exceptionally low interest rate” policy of the Federal Reserve is absolutely devastating for those that have saved for retirement and that are relying on interest income for their living expenses.

In short, quantitative easing is very good for the wealthy and it is very bad for the average man and woman on the street.

But what else would you expect from the Federal Reserve?

It is imperative that we educate the American people about the Federal Reserve and about how they are destroying our economy.  For much more on this, please see my previous article entitled “10 Things That Every American Should Know About The Federal Reserve“.

Perhaps the biggest danger from QE3 is that it could greatly hasten the day when the U.S. dollar ceases to be the reserve currency of the world.

The rest of the world is not stupid.  They see that the Federal Reserve is now firing up the printing presses whenever they feel like it.  They can see the games that we are playing with our currency.

Why should the rest of the world continue to use the U.S. dollar to trade with one another when the United States is constantly debasing it and playing games with its value?

As I wrote about the other day, China and Russia have been calling for a new reserve currency for the world for several years.  They have been leading the charge to conduct international trade in currencies other than the U.S. dollar, and I have documented many of the major international agreements to move away from the U.S. dollar that have been made in the last couple of years.

The status of the U.S. dollar in the world has already been steadily slipping, and now Helicopter Ben Bernanke pulls this kind of nonsense.

We are handing the rest of the world an excuse to abandon the U.S. dollar on a silver platter.

And when the rest of the globe rejects the U.S. dollar as a reserve currency, the dollar will crash, the cost of living will increase dramatically, our standard of living will go way down and we will never fully recover from it.

So if you think that things are “bad” now, just wait until that happens.

The U.S. dollar is one of the best things that the U.S. economy still has going for it, and Helicopter Ben Bernanke is doing his best to absolutely destroy that.

What is your opinion of QE3?  Please feel free to post a comment with your thoughts below….

China And Russia Are Ruthlessly Cutting The Legs Out From Under The U.S. Dollar

The mainstream media in the United States is almost totally ignoring one of the most important trends in global economics.  This trend is going to cause the value of the U.S. dollar to fall dramatically and it is going to cause the cost of living in the United States to go way up.  Right now, the U.S. dollar is the primary reserve currency of the world.  Even though that status has been chipped away at in recent years, U.S. dollars still make up more than 60 percent of all foreign currency reserves in the world.  Most international trade (including the buying and selling of oil) is conducted in U.S. dollars, and this gives the United States a tremendous economic advantage.  Since so much trade is done in dollars, there is a constant demand for more dollars all over the globe from countries that need them for trading purposes.  So the Federal Reserve is able to flood our financial system with dollars without it causing a tremendous amount of inflation because the rest of the world ends up soaking up a lot of those dollars.  But now that is changing.  China and Russia have been spearheading a movement to shift away from using the U.S. dollar in international trade.  At the moment, the shift is happening gradually, but at some point a tipping point will come (for example if Saudi Arabia were to declare that it will no longer take U.S. dollars for oil) and the entire global financial system is going to change.  When that tipping point comes the global demand for U.S. dollars is going to absolutely plummet and nightmarish inflation will come to the United States.  If such a scenario sounds far out to you, then you have not been paying attention.  In fact, China and Russia have been working very hard to move us toward exactly such a scenario.

China and Russia are not the “buddies” of the United States.  The truth is that they are both ruthless competitors of the United States and leaders from both nations have been calling for a new global currency for years.

They don’t like that the United States has a built-in advantage of having the reserve currency of the world, and over the past several years both countries have been busy making international agreements that seek to chip away at that advantage.

Just the other day, China and Germany agreed to start conducting an increasing amount of trade with each other in their own currencies.

You would think that a major currency agreement between the 2nd and 4th largest economies on the face of the planet would make headlines all over the United States.

Instead, the silence in the U.S. media was deafening.

At least there were some reports in the international media about this.  The following is from a Reuters article about this very important deal….

Germany and China plan to conduct an increasing amount of their trade in euros and yuan, the two nations said in a joint statement after talks between Chancellor Angela Merkel and Chinese Premier Wen Jiabao in Beijing on Thursday.

“Both sides intend to support financial institutions and companies of both countries in the use of the renminbi and euro in bilateral trade and investments,” said the text of the statement.

By itself, this deal would not be that alarming.

However, the truth is that both Russia and China have been making deals like this all over the globe in recent years.  I detailed 11 more major agreements like the one that China and Germany just made in this article: “11 International Agreements That Are Nails In The Coffin Of The Petrodollar“.

In that article I listed a few of the things that will likely happen when the petrodollar dies….

-Oil will cost a lot more.

-Everything will cost a lot more.

-There will be a lot less foreign demand for U.S. government debt.

-Interest rates on U.S. government debt will rise.

-Interest rates on just about everything in the U.S. economy will rise.

So enjoy going to “the dollar store” while you can.

It will turn into the “five and ten dollar store” soon enough.

Okay, so if you are China and Russia and you are working hard to undermine the dollar, how do you get prepared for the fiat currency crisis that your hard work will eventually create?

You guessed it.  You hoard gold and other precious metals.

And that is exactly what China and Russia has been doing.

A recent MarketWatch article detailed the massive hoarding of gold that Russia has been doing….

I can’t imagine it means anything cheerful that Vladimir Putin, the Russian czar, is stockpiling gold as fast as he can get his hands on it.

According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month.

Of course Russia is not alone in hoarding gold.  According to Zero Hedge, China has quietly been importing gigantic mountains of gold….

In July, Chinese gold imports from HK, after two months of declines, have picked up once more and hit a 3-month high of 75.8 tons. While it is notable that this number is double the 38.1 tons imported a year prior, and that year-to-date imports are now a record 458.6 tons, well over four times greater than the seven month total in 2011 which was 103.9 tons, what is far more important is that in the first seven months of 2012 alone China has imported nearly as much gold as the total holdings of the hedge fund at the heart of the Eurozone, elsewhere known simply as the European Central Bank, and just as importantly considering the import run-rate has hardly slowed down in August, which data we will have in a few weeks, it is now safe to say that in 2012 alone China has imported more gold than the ECB’s entire official 502.1 tons of holdings.

And all over the world Chinese companies are buying up gold producers.  China National Gold Group Corporation has put in a $3.9 billion bid to buy African Barrick Gold PLC, but that is only one example.

A recent Fox Business article listed a bunch of other similar transactions that have taken place recently….

Zijin Mining Group Co. (2899.HK), China’s second-largest gold producer by output, said last week that its subsidiary has acquired more than 50% of Kalgoorlie’s Norton Gold Fields (NGF.AU).

That deal gives it a foothold in the Australian market, the world’s second-largest source of gold output after China itself. In 2011, Zijin bought 60% of Kazakhstan-based miner Altynken, which has access to a gold mine in Kyrgyzstan.

Since 2008, Chinese companies have completed 10 US$20-million-plus acquisitions of Australian gold assets, worth a combined $1.6 billion, according to Dealogic. Half were initiated since last year.

In November, Shandong Gold-Mining Co. (600547.SH) launched a bid to acquire Brazilian gold miner Jaguar Mining Inc. (JAG.T) for $1 billion.

You would have to be blind to not see what is happening.

Other big names have been hoarding gold as well.  In a previous articleI detailed how George Soros, John Paulson and central banks all over the planet have been hungrily accumulating gold.

So what does all of this mean for the price of gold?

That’s right – it is likely to keep heading up.

In fact, Citi analyst Tom Fitzpatrick believes that the price of gold will likely hit $2500 within 6 months.

Personally, I believe that there will be times when precious metals both fall and rise in price dramatically.  It is going to be a wild ride.  But in the long-term I believe that all precious metals will be going up as fiat currencies such as the U.S. dollar fail.

Sadly, most Americans have no idea just how incredibly vulnerable the U.S. dollar really is.

The following is an excerpt from a recent piece by investigative journalist Bob Woodward.  It shows just how worried our leaders are about a crash of U.S. Treasuries….

Another possible outcome, Geithner said, was perhaps worse. “Suppose we have an auction and no one shows up?”

The cascading impact would be unknowable. The world could decide to dump U.S. Treasuries. Prices would plummet, interest rates would skyrocket. The one pillar of stability, the United States, the rock in the global economy, could collapse.

What happens someday if the rest of the world decides to reject our currency and our debt?

Right now we are able to trade our dollars for the things that we “need” such as oil from the Middle East and cheap plastic consumer products from China.

But what happens if the Federal Reserve keeps printing and printing and printing and the rest of the world eventually decides that the U.S. dollar is not even worth the paper it is printed on?

The truth is that the amount of printing the Federal Reserve has been doing and the amount of borrowing the federal government has been doing are both completely and totally unsustainable.

At this point, Moody’s is threatening to cut the credit rating of the federal government if a deal is not reached soon to reduce our debt to GDP ratio.

And Moody’s is not the only one concerned about our exploding debt.

German Finance Minister Wolfgang Schaeuble recently stated that he believes that “there is great uncertainty about the course American politics will take in dealing the U.S. government’s debts, which are much too high”.

Just because the economy is relatively stable right now does not mean that it is always going to be that way.

If we keep debasing our currency like this, at some point the rest of the world is going to decide that China and Russia have been right all along and that we need a new global reserve currency.

That day is coming.  It might not come tomorrow or next week or next month but it is definitely coming.

Once the U.S. dollar loses reserve currency status, that will be a major turning point in the history of our country.  We will never fully recover from that, and we will never get back to the same level of prosperity that we are enjoying today.

So enjoy spending those dollars while you can.  The party is almost over.

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Some Of The Really Bad Things That Could Happen If You Do Not Prepare For The Coming Economic Collapse

Most people just assume that since things have always been a certain way that they will always be that way in the future.  Most people just have blind faith that the people running our government and our financial system know exactly what they are doing and that they are doing their best to take care of us.  In fact, once upon a time I was fully convinced of that.  When I was a kid I quickly realized that my elementary school teachers really didn’t have the answers, but I had total faith that those running society at the highest levels were “experts” that were looking out for our best interests.  As time went on I kept progressing in my education, and by the time I was finished with law school I came to understand that none of our “experts” really know what they are doing, and they are definitely not looking out for our best interests.  The blind are leading the blind and we all need to finally admit that the emperor is not wearing any clothes.  Unfortunately, most Americans will repeat the mantra of “if that was true I would have heard about it on the news” until it is way too late.  Most people are waiting for the “authorities” to tell them what to do instead of thinking for themselves.  Sadly, time is rapidly running out and a lot of people are going to end up getting totally blindsided by what is coming.

The man in charge of our financial system, Federal Reserve Chairman Ben Bernanke, is not going to save our economy.  He didn’t see the last financial crisis coming, and even after things started falling apart he continued to insist that housing prices would not go down and that we would not have a recession.

Well, it turned out that we had the worst housing crash and the worst recession since the Great Depression of the 1930s.

But still millions of Americans are trusting him to save us this time around.

It isn’t going to happen.

The truth is that the design of the Federal Reserve system itself isfundamentally flawed.

The biggest reason why the U.S. government is 16 trillion dollars in debt is because the system is designed to create gigantic amounts of government debt.

Yes, without a doubt the vast majority of our politicians are corrupt and/or incompetent, but even if we replaced every single one of them our economic problems would still persist until the underlying structural problems were addressed.

Most Americans are pinning their hopes for an economic turnaround on the upcoming election, but the truth is that neither Obama or Romney has a plan that will fix things.  That statement is going to upset a lot of people on both sides of the political spectrum, but it is true.

Over the past 40 years the total amount of all debt in the United States has gone from less than 2 trillion dollars to almost 55 trillion dollars.  This bubble is going to burst no matter which political party is in power.

Obama and the Democrats have tried to kick the can down the road and extend the party by spending 5.3 trillion borrowed dollars over the past 4 years, but by doing so they have made our long-term problems far worse.

The next wave of the economic crisis is fast approaching and people need to get prepared.

So what do I mean by that?

Well, “preparation” is going to look different for each family, but there are some general principles that apply to almost everyone.

For example, during an economic collapse hard assets are preferable to paper assets.

Also, during an economic collapse necessities become much more important and luxuries become much less important.

For many more tips, please see this article.

For the moment, I want to focus on some of the really bad things that could happen to you if you choose not to prepare for the coming economic collapse….

You Could Find Yourself On The Wrong End Of A Banking Crisis

During a major financial crisis the banking world can change very rapidly.

You could wake up one day and discover that the bank holding all of your money has failed.

You could wake up one day and discover that because Ben Bernanke has printed trillions upon trillions of new dollars to “fix” the financial system your life savings have been devalued by 50 percent.

You could wake up one day and discover that your bank account has been converted over to a new currency that is worth far less than the one you thought you were holding.

Such a scenario may sound unthinkable in the United States (at least for now), but this is the kind of thing that millions of Europeans are extremely worried about right now.

Just check out what is happening in Spain….

After working six years as a senior executive for a multinational payroll-processing company in Barcelona, Spain, Mr. Vildosola is cutting his professional and financial ties with his troubled homeland. He has moved his family to a village near Cambridge, England, where he will take the reins at a small software company, and he has transferred his savings from Spanish banks to British banks.

“The macro situation in Spain is getting worse and worse,” Mr. Vildosola, 38, said last week just hours before boarding a plane to London with his wife and two small children. “There is just too much risk. Spain is going to be next after Greece, and I just don’t want to end up holding devalued pesetas.”

During the month of July alone, 94 billion dollars was pulled out of the Spanish banking system.

So that means that the equivalent of 7 percent of Spain’s GDP was withdrawn from Spanish banks during July.

That is a full-blown bank run, and Spain’s problems are just getting started.

Eventually these kinds of problems will show up in the United States as well.

You Could End Up Losing All Of Your Investments

But at least U.S. bank accounts are federally insured (for whatever that is worth).

When it comes to investments, you better be very sure that the firms you have your money with are not going to collapse on you.

For example, many of you have already heard about how Gerald Celente had losses in the six figure range when MF Global went bankrupt.  He has been warning about the coming economic collapse for years and he still got victimized.  The following is what he told one interviewer about what he learned from this incident….

What’s the take away from this?  It’s to make sure you have every penny in your pocket.  Because just like MF (Global), screwed everybody else. Your also gonna get the shaft, I don’t care who it is.  What’s gonna happen when you get a message from your brokerage, from Fidelity or somebody… yeah infidelity.  Or how about Raymond James, I don’t care who they are!  You have ETFs?  Oh, there’s a little error over here, we don’t have your money.  We don’t have your positions.
I went to a meeting… and the speaker said ETFs of GLD are supposed to be held by HSBC in a vault in Hong Kong or England some place, and HSBC, this guy said, is the biggest shorter of gold.  Well you figure it out!  They are the ones that are holding it and they’re shorting it?  So the takeaway is to make sure you have every penny in your possession.

If the funds that you are relying on for your financial future are being held by a brokerage or by an insurance company the truth is that you could potentially lose every single penny during the coming collapse.

The financial institution that you are depending on could suddenly go “poof” and your money could be gone just like that.

Recent legal rulings have made brokerage accounts much more vulnerable.  Jim Willie explained why this is true in a recent article….

The critical jump might occur in account thefts from futures brokerage to stock brokerage, which began in November 2011 with MFGlobal, then appeared in July with Peregrine Financial Group (PFG-Best). All private accounts from MFG and PFG have been pilfered, with a blessing of the theft by the courts, seen in the Sentinel Mgmt Group ruling. The federal Appellate court’s August ruling (CLICKHERE) sets precedent for future private segregated account thefts, which were once considered sacred and untouchable. No more in the United States, not in the unfolding of criminality that stretches from USGovt offices to top corporate offices, with blessings sprinkled by the courts. The jump would be a major extension of the Fascist Business Model that nobody talks about. The major financial firms can rely upon this appellate court ruling as precedent, so as to protect their legal right to re-hypothecate client funds in their high risk leveraged positions and loans. It sure would be nice to use my neighbor’s house and car to firm up my casino weekends. Stay tuned to the ongoing Morgan Stanley implosion, which could force the vanishing act of 50 to  100 thousand private stock accounts. The firm is the largest stock brokerage firm in the land. The dreadful impact will be nasty and might awaken the US masses. MFGlobal and PFG-Best surely did not.

Your financial advisers will swear up and down that your investments are safe.

But look at what happened to the clients of MF Global and PFG-Best.

Their investments disappeared like dust in the wind.

This isn’t meant to scare you.  It is just important that you understand that the landscape has totally changed.

You Could Lose Your House

During the last recession, millions of Americans lost their homes.

Some of them had poured hundreds of thousands of dollars into their homes and they lost it all.

Why did this happen?

Well, the number one reason is because so many American families are living on the edge.  They purchased homes that they could not afford and they just kept living paycheck to paycheck as if nothing bad would ever happen.

But when many of those people lost their jobs, suddenly they could not make their mortgage payments and they lost their homes as well.

Sadly, we appear not to have learned much.

Today, 77 percent of all Americans are living paycheck to paycheck at least some of the time.

You Could Lose Access To Electricity

Why don’t more Americans have a backup source of power?

Most Americans are totally dependent on the grid, and that works well until the grid goes down.

Just look at what is happening down in Louisiana.  The hurricane that just roared through was not even that strong, and yet more than 100,000 people are still without power.

The following is from a recent Huffington Post article….

Tens of thousands of customers remained in the dark Monday in Louisiana and Mississippi, nearly a week after Isaac inundated the Gulf Coast with a deluge that still has some low-lying areas under water.

Most of those were in Louisiana, where utilities reported more than 100,000 people without power. Thousands also were without power in Mississippi and Arkansas.

So what would you do if there was a major national crisis of some sort and the grid went down for an extended period of time during the winter?

When Thieves Get Desperate They Will Steal Just About Anything

Over and over it has been proven that when people cannot feed their families they will steal to get what they need.

When things hit the fan here in the United States, we will see widespread looting and robbing.  In fact, we are already seeing it happen in Europe.  Just check out what is happening in Spain right now….

Unemployed fieldworkers and other members of the union went to two supermarkets, one in Ecija (Sevilla) and one in Arcos de la Frontera (Cadiz) and loaded up trolleys with basic necessities. They said that the people were being expropriated and they planned to “expropriate the expropriators”.

The foodstuffs, including milk, sugar, chickpeas, pasta and rice, have been given to charities to distribute, who say they are unable to cope with all the requests for help they receive. Unemployment in the Sierra de Cadiz is now 40%.

And already crime is rising in many areas of the United States.  In some communities thieves are stealing just about anything that is not bolted down.

Just recently, 49 cows that were stolen from a farm in Massachusetts were discovered at an auction in Pennsylvania.

Who would be desperate enough to steal cows?

In other areas of the country thieves are stealing air conditioning units from churches and they are stripping copper wiring out of city street lights.

Are you prepared to defend your property when desperate thieves come knocking?

Shortages Can Happen

During an economic collapse shortages can happen very rapidly.  Thanks to the popularity of the “just in time inventory” philosophy, most stores do not have much stuff sitting around in their back rooms.  When things go bad, you may not be able to get the things that you need.

Just look at what is happening in Greece.  Right now, medicine shortages have become a major problem.  The following is from a recentBloomberg article….

Mina Mavrou, who runs a pharmacy in a middle-class Athens suburb, spends hours each day pleading with drugmakers, wholesalers and colleagues to hunt down medicines for clients. Life-saving drugs such as Sanofi (SAN)’s blood-thinner Clexane and GlaxoSmithKline Plc (GSK)’s asthma inhaler Flixotide often appear as lines of crimson data on pharmacists’ computer screens, meaning the products aren’t in stock or that pharmacists can’t order as many units as they need.

“When we see red, we want to cry,” Mavrou said. “The situation is worsening day by day.”

The 12,000 pharmacies that dot almost every street corner in Greek cities are the damaged capillaries of a complex system for getting treatment to patients. The Panhellenic Association of Pharmacists reports shortages of almost half the country’s 500 most-used medicines. Even when drugs are available, pharmacists often must foot the bill up front, or patients simply do without.

You Could End Up Dependent On The Government

Don’t think that it can’t happen.

Today, 46.7 million Americans are on food stamps and more than halfof all Americans are at least partially financially dependent on the U.S. government.

That may be hard to believe, but it is actually true.

During the month of June, the number of Americans added to the food stamp rolls was three times greater than the number of jobs added to the economy.

What a great “recovery”, eh?

If you do not work very hard to prepare for what is ahead right now, you could also end up dependent on the government.

You Could Lose Your Life

Whenever there is a major economic crisis there is a spike in suicides.

And these days Americans are more wrapped up in materialism than ever before.  When the coming crisis strikes there are going to be millions upon millions of extremely depressed people.

Suicide is about the most stupid thing that you can possibly do, but when people lose all hope of things turning around a lot of them are going to take their own lives.

It is foolish beyond belief, but a lot of people are going to make that choice.  We are already seeing a significant spike in suicides over in Europe due to the economy.  The following is from a recent CNBC article….

A growing number of global and European health bodies are warning that the introduction and intensification of austerity measures has led to a sharp rise in mental health problems with suicide rates, alcohol abuse and requests for anti-depressants increasing as people struggle with the psychological cost of living through a European-wide recession.

“No one should be surprised that factors such as unemployment, debt and relationship breakdowns can cause bouts of mental illness and may push people who are already vulnerable to take their own lives,” Richard Colwill, of the British mental health charity Sane, told CNBC.

“There does appear to be a connection between unemployment rates and suicide for example,” he said, referring to a recent study in the British Medical Journal that stated that more than 1,000 people in the U.K. may have killed themselves because of the impacts of the recession. “This research reflects other work showing similar rises in suicides across Europe.”

This is why I stress that preparation is not just about physical things like money and food.

We all need to get mentally, emotionally and spiritually prepared for what is ahead.

If we understand what is happening and we come up with a plan to go through it, we will be in far, far better position to endure the coming crisis than people that are totally blindsided by it.

A recent article on shtfplan.com entitled “How Horrific Will It Be For The Non-Prepper” explored some of these ideas more fully.  I encourage people to go check it out.

For the moment, most people will just go on with their lives as if nothing is wrong because times are still quite good.

But time is running out.  In fact, we might not have much time left at all before the next major downturn.

A recent CNBC article entitled “It’s Coming: One Pro Sees Big Stock Selloff in 10 Days” detailed how some analysts are warning of a major stock market decline later this month….

An equity strategist for Goldman Sachs is predicting a September selloff that happens so rapidly he is telling clients to protect themselves before Sept. 14.

The reason: Market disappointment over key meetings of the European Central Bank and Federal Reserve—all within the next 10 days.

September may turn out to be a bad month for stocks or it might end up being just fine.

But one thing is for sure.

Time is running out.

Are you ready?

 

Risk of US double-dip recession rises, warns Standard & Poor’s

August 22, 2012 – ECONOMY – The odds the United States will slip back into recession next year have risen, ratings agency Standard & Poor’s said, citing risks from the European debt crisis and budget tightening at year-end. The US ratings firm raised the chance of the US falling into recession to 25 percent, up from a 20 percent chance estimated in February, as the world’s largest economy struggles to recover from a severe 2008-2009 slump. It also pointed to the looming possibility of the government being forced by existing law to severely cut spending and increase taxes on January 1, the so-called fiscal cliff that would crunch the economy. “Economic activity has downshifted sharply from earlier this year,” S&P said in a report on North American credit conditions amid global uncertainty, dated August 20. “At the same time, possible contagion from the European debt crisis, the potential so-called ‘fiscal cliff’, and the risk of a hard landing for China’s economy have added greater uncertainty to US economic prospects,” it said. In the second quarter, the world’s largest economy grew at a 1.5 percent annual rate, a sharp slowdown from late last year as unemployment remained stuck above 8.0 percent. S&P underscored concern about the impact of a recession in the 17-nation eurozone, whose economy contracted 0.2 percent in the second quarter. S&P forecast a 0.6 percent contraction this year. “A double-dip recession in Europe that transmits financial turmoil to the US could push it into recession,” the agency said. However, S&P said its baseline scenario for the US economy — remained “modest growth,” projecting a gross domestic product expansion of about 2.1 percent for this year. S&P also said it expected that politicians would agree before year-end to change the current severe budget cut and tax hike mandates to avoid the fiscal cliff fate. However, it said, “We do not believe the US and European economies will improve substantially in the next year.” –Yahoo News

19 Warnings About A Coming Global Financial Catastrophe

Global leaders have tried just about everything that they can think of, but the coming global financial catastrophe continues to march steadily toward us.  We have seen “stimulus packages”, quantitative easing, bond buying, interest rate cuts, emergency economic summits, bailout packages for banks, bailout packages for entire nations, “Operation Twist“, unprecedented government intervention in business and massive amounts of new government debt and yet nothing seems to revive the global economy.  In fact, it looks like we are rapidly heading into the second dip of a “double dip recession“.  Unfortunately, many believe that this next dip will be more like a full-blown depression.  All over the world, top economic experts are warning that we are facing an unprecedented crisis of debt and insolvency that will result in a global financial catastrophe.  The eurozone is drowning in debt, the U.S. government is drowning in debt and major banks all over the globe are drowning in debt.  Global authorities have been trying to patch the system together and keep it going, but the incredible damage that all of this debt has done is now becoming apparent to everyone.  The global debt bubble that has fueled prosperity in the western world for the last several decades is getting ready to burst, and when that happens the chaos that will result will be absolutely horrifying.

The following are 19 warnings about a coming global financial catastrophe….

1. “Dr. DoomNouriel Roubini says that the rapidly approaching financial crisis will be even worse than 2008….

“Worse because like 2008 you will have an economic and financial crisis but unlike 2008, you are running out of policy bullets. In 2008, you could cut rates; do QE1, QE2; you could do fiscal stimulus; you could backstop/ringfence/guarantee banks and everybody else. Today, more QEs are becoming less and less effective because the problems are of solvency not liquidity. Fiscal deficits are already so large and you cannot bail out the banks because 1) there is a political opposition to it; and 2) governments are near-insolvent – they cannot bailout themselves let alone their banks. The problem is that we are running out of policy rabbits to pull out of the hat!”

2. John Embry….

“This situation is unprecedented. The world has never, ever been in a condition like this. As a result, anyone that is complacent here and says, ‘This is just business as usual,’ they are dead wrong and will be shocked at the chaos that is heading our way.”

3. Jim Rogers….

“Just because now you have a way to get them (the banks) to borrow even more money, this is not solving the problem, this is making the problem worse”

4. Prominent Spanish politician Felipe Gonzalez….

“We’re in a situation of total emergency, the worst crisis we have ever lived through”

5. Leader of the UK Independence Party Nigel Farage….

You know, this deal makes things worse not better. A hundred billion [euro] is put up for the Spanish banking system, and 20 per cent of that money has to come from Italy. And under the deal the Italians have to lend to the Spanish banks at 3 per cent but to get that money they have to borrow on the markets at 7 per cent. It‘s genius isn’t it. It really is brilliant.

So what we are doing with this package is we are actually driving countries like Italy towards needing to be bailed out themselves.

In addition to that, we put a further 10 per cent on Spanish national debt and I tell you, any banking analyst will tell you, 100 billion does not solve the Spanish banking problem, it would need to be more like 400 billion.

And with Greece teetering on the edge of Euro withdrawal, the real elephant in the room is that once Greece leaves, the ECB, the European Central Bank is bust. It’s gone.

It has 444 billion euros worth of exposure to the bailed-out countries and to rectify that you’ll need to have a cash call from Ireland, Spain, Portugal, Greece and Italy. You couldn’t make it up could you!

6. Peter Praet, chief economist at the European Central Bank….

“The eurozone crisis is now much more profound and fundamental than at the time of Lehman”

7. Graham Summers….

Angela Merkel is up for re-election next year. There is no way on earth she’ll opt to let Germany get dragged down by the EU. She’s even said she will not allow Eurobonds for “as long as [she] lives.”

This is not empty rhetoric. This is fact. Germany has expressed its intentions dozens of times in the last month: NO Eurobonds and NO guarantee of EU banking deposits.

The reasons for this are simple: EITHER option renders Germany insolvent. It’s already teetering on insolvency to begin with. But to allow Eurobonds or some kind of guarantee of the EU banking system to occur on top of the money Germany has already spent propping up the EU will take Germany down.

The German economy is already slowing. Most Germans are fed up with the Euro. Merkel would rather die than let her country become like Greece (which the creation of Eurobonds or EU deposit guarantees would most assuredly result in).

So Germany is tapped out as well. This leaves… NOBODY.

Again, Europe is out of money. End of story. This is the truth and investing based on the idea of some magical bailout occurring is like investing on Hank Paulson’s Bazooka policy for Fannie and Freddie (three months later the markets imploded).

8. Peter Schiff….

“I think we’re still in a depression. I think it’s going to be with us for years and years. It could be five or ten years; it could be longer, depending on how long it takes us to recognize our mistakes so that we can begin to reverse them”

9. New York Times columnist Paul Krugman….

“There are a lot of ugly forces being unleashed in our societies on both sides of the Atlantic because our economic policy has been such a dismal failure, because we are refusing to listen to the lessons of history. We may look back at this thirty years from now and say, ‘That is when it all fell apart.’ And by all, I don’t just mean the economy.”

10. IMF Managing Director Christine Lagarde….

“In the last few months, the global outlook has been more worrying for Europe, the United States and large emerging markets”

11. Andrew Kenningham, senior global economist at Capital Economics….

“With euro break-up risk likely to rise in the second half of the year and monetary policy looking increasingly impotent, things could get much worse before they get better.”

12. Zero Hedge….

We now have 80% of the world posting a contraction in industrial activity.

13. Lakshman Achuthan, the co-founder of the Economic Cycle Research Institute….

“What we said back in December was that we thought the most likely start date for the recession would be in Q1, and if not then, by the middle of 2012. I’m here to reaffirm that.

In other words, I think we’re in recession already. As I said back there, it’s very rare that you know you’re going into recession when you’re going into recession. It often takes some big hit on the top of the head. In the last recession it took Lehman to wake people up. In the recession before it took 9/11. 

When you look at the data today, you see industrial production is off of its April high. Manufacturing and trade sales – much broader than retail sales – is off of its December high.

Real personal income growth, which doesn’t always go negative during a recession, has been negative for several months.”

14. Priya Misra, head of U.S. rates strategy at Bank of America Merrill Lynch….

“The global economy is in the midst of a synchronized slowdown, as reinforced by the recent spate of weak economic data”

15. Chris Williamson, the chief economist at Markit….

“Companies are clearly preparing for worse to come, cutting back on both staff numbers and stocks of raw materials at the fastest rates for two-and-a-half years”

16. Howard Archer, chief European economist at IHS Global Insight….

“With the eurozone likely having suffered appreciable GDP contraction in the second quarter and in grave danger of contracting again in the third, and with eurozone business confidence generally low and fragile, the likelihood is that the eurozone unemployment rate will move significantly higher over the coming months”

17. Karl Denninger….

If we keep deficit spending we are simply debasing the purchasing power of the common man in a puerile attempt to pacify the people and avoid holding the financiers who were responsible for this debacle, including Bernanke, Greenspan, Paulson and Geithner along with both Obama and George W Bush to account.  This attempt is mathematically doomed to fail as median family income has not moved which means that we’re shifting an ever-greater part of the population to social programs like food stamps and other handouts while the taxpaying productive population continues to shrink. 

This is exactly how Greece and Spain went down the bowl and we’re right behind them unless we stop this crap right now.

We cannot “bend the curve” or look toward the “intermediate term”; that was exactly the siren song in Europe and it has led to catastrophe as “tomorrow” never comes!  The “intermediate term” is usually defined as three to five years out — we heard of the “intermediate term” in 2008 but now it’s 2012 and none of the retractions in that spending have occurred — the claim that they would be undertaken was a lie.

We must stop the stupid right now!

Arithmetic is a bitch.  It’s politically agnostic and cold-hearted.  Exponential growth, as I have repeatedly pointed out, is utterly unsustainable over the long term.  It doesn’t matter if you want these sorts of schemes to work or not; the longer you continue to pretend that there is some path forward that achieves these goals the worse the outcome is when you discover that you’re wrong.

18. LEAP/E2020….

“LEAP/E2020 has never seen the chronological convergence of such a series of explosive and so fundamental factors (economy, finances, geopolitical…) since 2006, the start of its work on the global systemic crisis. Logically, in our modest attempt to regularly publish a “crisis weather forecast”, we must therefore give our readers a “Red Alert” because the upcoming events which are readying themselves to shake the world system next September/ October belong to this category.”

19. Steve Quayle’s anonymous international banking source….

“The Bond market is finished, We all knew that there is a bubble in the bond market, This is the coup de grace that will not pop the bubble, but make it explode with the force of a thousand suns. America will be broke and barren in a blink of an eye! These are two events that I have been warning about are ones that will end your life on this planet as you know it. Your cash will be worthless, your country at a standstill, No money, No food, no essential services, AND WHEN IT ALL STOPS….. YOU STOP.”

So what do you think about these warnings?

Are you concerned that a global financial catastrophe is coming?

Please feel free to post a comment with your opinion below….

 

Taking the plunge off the fiscal cliff and the rise of global tensions

July 9, 2012 – ECONOMY - More and more Asian nations — led by China and Russia — have ditched the dollar for bilateral trade (out of fear of dollar instability). Tension rises between the United States and Asia over Syria and Iran. The Asian nations throw more and more abrasive rhetoric around — including war rhetoric. And on the other hand, both Obama and Romney — as well as Hillary Clinton — seem dead-set on ramping up the tense rhetoric. Romney seems extremely keen to brand China a currency manipulator. In truth, both sides have a mutual interest in sitting down and engaging in a frank discussion, and then coming out with a serious long-term plan of co-operation on trade and fiscal issues where both sides accept compromises — perhaps Asia could agree to reinvest some of its dollar hoard in the United States to create American jobs and rebuild American infrastructure in exchange for a long-term American deficit-reduction and technology-sharing agreement? So the future, I think, will more likely involve both sides jumping off the cliff into the uncertain seas of trade war, currency war, default-by-debasement, tariffs, proxy war and regional and global political and economic instability. As Xinhua noted the last time America faced the fiscal cliff: “The U.S. has long been facing the same problem: living beyond its means. At present, the country has debts as high as 55 trillion U.S. dollars, including more than 14 trillion U.S. dollars of treasury bonds. Economists agree that as the United States’ largest foreign creditor, China should contemplate ways to pull itself out of the “dollar trap,” as the U.S. economy is faltering with its debt piling up and its currency on the brink to depreciate. China must make fuller use of the non-financial assets in its foreign reserves, as well as speed up the diversification of investing channels to resist a possible long-term weakening of the dollar, said Xia Bing, director of the Finance Research Institutes of the Development Research Center under the State Council. Zheng Xinli, permanent vice chairman of China Center for International Economic Exchanges, has suggested that Chinese companies boost overseas investment as a way to absorb trade surpluses and fend off the dollar risk. -Zero Hedge