Greg Hunter on YouTube is among a cadre sounding the alarm that the United States financial system is on the verge of collapse (The World Is Venezuela). 10 years after The Global Financial Crisis (GFC), our “leaders” have continued to kick the can down the road. This cadre understands that this fiscal malfeasance can only result in one of two things, death by panic or death by hyperinflation. Harry Figgie, Jr wrote about this 25 years ago in his book, ‘Bankruptcy 1995’. He wasn’t wrong, he just couldn’t imagine the Federal Reserve could get away with not paying savers interest on their money by taking interest rates to zero.
When it happens, it will happen over the weekend. A nation always devalues its currency or replaces its fiat money “Friday to Monday”. No one will see it coming and take steps to prepare. The resulting actions by Congress will be a bilateral screw job. For at least a year they have been floating the idea of “negative interest rates”. What’s THAT may you ask? That’s where the government is so broke, instead of paying bank savings account holders for the use of their money, they will be charging you. They will be taking money from your account. Negative interest.
If you try and hold cash (put it under you mattress), you won’t be able to get it exchanged for the new currency. And! The exchange rate for that new currency will only be at 65% or so. It will most likely be a North American currency. Europe already has the Euro, and Asia is not far behind with their own. They will declare that the dollars you hold are now worthless, and you only have 30 days (if that) to exchange them. Most of this is the result of ignoring the Austrian School of Economics.
In the 1930’s the Chicago School of Economics won out with FDR’s mismanagement of The Great Depression. That is when gold was actually made illegal for individuals to hold, and silver certificate money was removed from circulation (“Never let a crisis go to waste”). That is when the very people who caused the depression, were handed the keys to our entire banking system, the Federal Reserve. The mismanagement of the dot com bubble in ’01 and the lowering of interest rates, actually caused the popping of the housing bubble in ’08.
Hayek said repeatedly that only a liar or a fool thinks they can manage a market. The only thing that can honestly manage a market is market forces. Not bankers who have a vested interest in manipulating the currency. What amazes me, even though I know the answer, is how can people not see this coming? We have a nation of idiots because of government education. Who thinks this can continue? We are insolvent. Names like Peter Schiff, Lou Dobbs, Ray Dalio are some of the others speaking truth.
If what is being predicted does indeed turn out to be a hard crash, and not a soft landing, there’s no where to run to, no where to hide. Even those who are holding actual gold will be surprised when it is declared to be illegal. Those holding “paper” gold in ETF’s will be manipulated just like the rest of the market. Holding food, water, firearms, gasoline and land will help. Washington always operates in crisis mode. Paralysis keeps them from seeing any crisis coming and doing anything to prevent it. They never see past the next election.
The bottom line is we were somehow able to manage these mountains of debt as long as interest rates were zero. Now though the Federal Reserve is having trouble funding the debt, and is having to raise interest rates to entice people to buy this debt. As interest rates begin to climb, the American people are about to learn the concept of “exponential growth”. What happens to a $21 trillion dollar debt when compound interest is applied to it. Its not sustainable. As hunter points out, if we were on honest money, a gold standard, gold would have to be at $87,000 dollars an ounce. Not $1,300. Throw in all our debt obligations and gold would be twice that, $174,000 dollars an ounce.
The stock market is on a tear in inflation adjusted pricing, not in inherent wealth. This is a house of cards. – Jim Roach
“Renowned gold and financial expert Jim Sinclair and financial writer Bill Holter get ready for the reset in the price of everything including gold and silver. Sinclair also says, “It’s going to be a Friday to Monday event. There is going to be an explosion, and the explosion is a change. It may blow your mind, but the explosion would not be three or four months or a year in upticks in these items (gold and silver prices). Oh, they are going to uptick. That’s for sure. The finality of this is going to be the reset. . . . It is going to be something entirely new that doesn’t exist now. It may be engineered and not happening by natural causes. . . .You need to know who President Trump is, what he is a master of and what tools he has used effectively as part of his business. It’s not “The Art of the Deal,” it’s the science of bankruptcy.”
“How bad is it going to get? Holter sums it all up when he says, “The world is Venezuela.” – from Greg Hunter