Perhaps the title of this RANT is enigmatic, as we all HOPE the global financial system survives.
There aren’t words to describe the widespread pain and suffering that will result from multiple, simultaneous bank and currency collapses, which could one day be remembered as an inflection point in the entirety of human history. Thus, we have no choice but to be PATIENT in letting all potential solutions, foreseen and unforeseen, come to the fore.
In other words, despite what I view as a mathematical CERTAINTY of failure, we need to PRAY for a miracle, and WHILE WE’RE PRAYING, PREPARE for the worst-case scenario by PROTECTING OURSELVES with purchases of GOLD, SILVER, FOOD, and OTHER LIFE NECESSITIES.
History depicts cataclysmic financial events (such as hyperinflations, market crashes, and depressions) time and time again, but nearly always in isolated cases, typically in just one country or region. The world has never been as global as it today, and nearly 7 billion people walk the Earth compared to 2 billion when the Great Depression commenced in 1930 and just 600 million when the “Tulipmania” bubble burst in 1636. Thus, there is far more at stake than at any time in human history, with a far more complex problem and even more complex potential solutions.
Unfortunately, this time it is GLOBAL, with the cumulative negative pressures of decades of gluttony, fraud, and corruption all colliding on the same, homogenous worldwide financial stage. This conflagration was created by a chain of seamless events, including America’s abandonment of the gold standard in 1971 (and subsequent price suppression of the past decade), deregulation of the financial sector dating to the early 1980s, the takeover of Washington by Wall Street (thanks to ill-begotten profits resulting from the aforementioned deregulation), and, of course, widespread accounting fraud from Washington, Wall Street, and Main Street.
By now, one would have thought the system would have broken entirely, yielding the end of the Euro, the dollar, and all PEGGED currencies such as even the Chinese Yuan and Swiss Franc. Likewise, ALL money-center banks SHOULD have long-ago collapsed, the Dow SHOULD have revisited its 2008 lows, and gold and silver SHOULD have permanently broken their Cartel bonds by now.
But somehow they haven’t, not yet.
I was reminded this weekend of something I have observed for the entirety of my existence, not just relating to financial matters but essentially all aspects of life. And that is the simple fact that while FUNDAMENTALS always win out in the end, it often takes much longer than expected to occur. For example, the Roman Empire first showed signs of decline 300 years before its eventually end in 476 AD, and utilizing a more modern analogy, the German Empire somehow rose from the ashes of World War I to wreak even more devastation just 20 years hence, re-emerging from its ‘economic deathbed’ in the 1920s (Weimar Republic, hyperinflation) before finally being put to rest in 1945.
Cut to modern times, and realize that the global financial situation, particularly in the Western world, is easily at the lowest, most dangerous point of its entire history. However, TPTB are still fighting the tide tooth and nail, cutting surreptitious deals, manipulating mass psychology with lies and market manipulation, and HOPING and PRAYING they can kick the can down the road further and stay in POWER, even if the cost of an additional years of political status quo is World War III.
And a “World War” is the only way to describe the Cartel’s recent assault on the gold market with NAKED PAPER SHORTS and on broad stock market shorts with UNLIMITED PAPER PURCHASES, in line with the G7’s decree this weekend that it will “take all necessary actions to ensure the resilience of banking systems and financial markets.” This morning’s utter collapse of European banking stocks and explosion of credit and default swap spreads SHOULD have led to a market collapse at the open of the NYSE, for example, as well as a $100+ gold price surge. But somehow the Dow rocketed up at the opening while gold was again attacked, the same type of counterintuitive market action we have observed over the past decade.
From my standpoint, the continual pressure on gold and silver since 2000 has been highly beneficial, allowing me to not only acquire cheap metal amidst a raging (but hidden from the public) bull market, but to build a second career for myself, one which holds the added benefit of HELPING OTHERS to PROTECT THEMSELVES from the inevitable, catastrophic result that might occur this week but could take a year, or even two, to unfold. However, as a career financial analyst, I would also like to see free markets prevail, not just to benefit my Precious Metal interests, but to foster the end of a dying, destructive system and its replacement by one that gives humanity a chance of prosperity in the coming generations.
So for those that have sufficiently PROTECTED THEMSELVES by taking steps to insulate their families and friends from the potentially deleterious effects of market crashes and hyperinflation, I can only say hope for the best, pray for the worst, and be PATIENT that in the end, FUNDAMENTALS ALWAYS ASSERT THEMSELVES.
And don’t be surprised if they assert themselves MUCH SOONER than anyone expects.