Your Standard of Living Destroyed

Unsecured loans swamp banking industry:

Lies, money, corruption, greed, and human folly. The scale of these mistakes are massive. Big enough to cripple people’s financial well-being and the financial stability of the world. It is getting very ugly for the big banks. The price of many bank shares are in clear downtrends, particularly the European banks. Many of them are being swamped by unsecured loans that will never be repaid and will therefore have to be written-off as total losses. Desperation is rising as the tide is turning inevitably against the establishment, with economies weakening noticeably around the globe as the financial structure gets more fragile by the day.

That’s the reason why many Wall Street elite came out in a short period of time to tell the world there will be a reset. People go to bed on Friday and come Monday morning, when the markets won’t open, and whenever they do reopen, there is the reset or the beginning of the reset.

The central banks experiment has been a huge failure. And yet, it looks like low interest rates aren’t going away anytime soon. Doubling down on this failed policy won’t fix the economy. It will only steer it toward a huge crisis.

Potential market crash triggers:

One of the big potential triggers that could bring the markets crashing down is the more than $10 trillion in European government bonds with negative interest rates. Negative rates mean that debt is trading at a premium to cash. So, what it is saying; debt is better than cash. That’s impossible. Whether it’s a trigger or not, it’s highly explosive.

The amount of bonds that could be affected in a crash are not just $10 trillion paying negative rates, but also the other bonds adding up to around $40 trillion. If anyone thinks that negative interest rates will have the effect of repairing an economy, just go back to the period from 2008 until now and look at the progress made until today. There is none! The world is in the biggest bubble in the history of finance.

Another big trigger is Germany’s deeply troubled Deutsche Bank. They are turning out evidence and shaking out other institutions that have been rigging gold and silver markets. Which is a crime. They acted as criminals.

Central banks won’t come to the rescue as they did in the 2008 financial meltdown. They are entities that are supposed to be the rescuing mechanism for insolvencies and illiquidity, but they themselves are illiquid and insolvent.

Central banks are at the limits of what they can achieve, particularly without the support from their respective governments from fiscal policy, in other words taxpayers’ money. Are investors and savers looking for alternative stores of value, line gold and silver.

EU in worst shape ever:

The country in worst shape is probably Italy. The banks there have non-performing loans – which are those that are impaired and not meeting the original borrowing terms – that in aggregate dwarfs the total bank equity. Even worse, non-performing loans in Italian banks have risen again over the past year from 17% to 18%. It is hard to imagine that 18% of all loans within that country are non-performing, but the Italian economy is in trouble as evidenced by its 11.7% unemployment rate.

Italy’s fiscal circumstances are far direr than even Spain’s. And the prospects that its bonds are money are virtually nil. After winning 9 out of the mayoral towns last week either the threat of an exit from the EU, or a 5-Star/populist coalition government would send the front-runners who scarfed up Italy’s bonds will be running for the hills.

Spain, France, Portugal and others have growing bad debt problems in their banks too, and these bad debts may be insurmountable. That’s because the bad debts in many banks are larger than the bank’s capital, so they can’t take these losses because it would wipe out their book equity. In other words, many banks are insolvent because the difference between the true value of their assets and the value at which they are reported on bank balance sheets is in aggregate greater than the shareholder equity of the bank.

Don’t be misled because these banks are still open for business. Even though many of them are insolvent, they remain liquid because of the largesse of the European Central Bank, which bends over backwards to keep insolvent banks from failing because of the alternative choices when they do fail.

The EU is virtually bankrupt and has become even more dictatorial than the Soviet Union ever was, according to Russian President Vladimir Putin.  The EU bankruptcy was triggered by the bankruptcy of Deutsche Bank, the largest bank in Europe, according to members of the RKM. The bank is under Chinese control, is said. –  If the Chinese had not stepped in to save Deutsche Bank, its collapse would have triggered a domino effect that would have taken down the entire European and then Western banking systems, according to various sources e.

Who is going to bail-out the banks?

Either the government bails out the bank, or depositors like occurred in the cases of Cyprus and Greece with bail-ins, and other schemes that cause losses to depositors or prevent them from withdrawing their money.

If these early indicators about bank problems are correct, and it looks like they are, the world faces another 2008-type crisis but now ten times worse for the simple reason that debts today are much bigger and therefore more unmanageable than they were eight years ago. Huge debt loads and bank non-performing loans in a slowing economy promise a train wreck.

Fortunately, most readers know how to get to the other side of the storm’s eye with their wealth intact. Own physical gold and physical silver. These are the ultimate safe havens.

Switzerland:

Swiss Parliament turned wise to withdraw Switzerland’s application to join the European Union — an application that has been in place since 1992 but never acted upon. This formal withdrawal confirms that the European Union is now being seen for the unmitigated economic disaster it has been. And this economic ruin is now being compounded by the purposely initiated refugee crisis, and Brexit.

Political leaders take all the important decisions without consulting their people, as they don’t allow to give them the option to decide on any important issue. Only the Swiss people have this right and exercise it frequently. In the EU, it is even worse most of the binding decisions for all member states are taken by unelected and unaccountable officials. That’s the reason why the majority of the Brits want to have their sovereignty back, instead to be handed over to Brussels. They don’t want to be forced to accept EU rules on unlimited and uncontrolled immigration, which if continued will destroy the fabric of the U.K. and the rest of Europe.

The Brussels EU cabal will do everything not to let any of the remaining 27 countries have a referendum. But the cat has been let out of the bag and it will be very difficult to stop this drive for freedom to spread. The dilemma for Europe and also for the world is that this political unrest as is demonstrated in France is a disaster for the global economy and financial system that is on the verge of collapse. The bubbles are bursting in stocks, bonds, property and derivatives, and as currencies continue to decline due to deficits and money printing, gold and silver will continue to outperform all these asset classes.

Helicopter money:

The longer the Central Banks keep rates low or negative, the more reckless borrowing and spending will occur. Unfortunately, they could do something even more destructive than keep rates near zero. It could introduce “helicopter money.”

Rock-bottom interest rates have pushed stocks to record highs. The S&P 500 has surged 215% since March 2009. Today, it trades within 3% of its all-time high even as America’s biggest companies struggle to make money. Earnings for companies in the S&P 500 have fallen four quarters in a row. That’s the longest streak of falling earnings since the 2008–2009 financial crisis. It’s only going to get worse. The Fed encouraged companies to borrow trillions of dollars. U.S. corporations have borrowed $10 trillion in the bond market since 2007. Last year, they borrowed a record $1.5 trillion.

Industrial-equipment giant Caterpillar (CAT) reported its retail sales declined again last month. Incredibly, this marks 42 consecutive months of falling sales for the firm. Sales have declined every single month since late 2012. Worse, the company reported the slowdown in sales has recently started to accelerate again in both North America (the U.S.) and Asia/Pacific (China).

Caterpillar has long been considered one of the best bellwethers of the global economy. Its machines are used in everything from farming to transportation to building shopping malls. When the world is growing, Caterpillar tends to do well. When the world is slowing down, it’s one of the first companies to feel it.

Despite big talk from governments and central banksters over the past few years, Caterpillar’s results never confirmed a recovery. If the latest data are any indication, the economy could be headed for another rough patch. But that’s not the only reason for concern today. More and more signs suggest a slowdown is starting.

Economist Milton Friedman came up with the idea in the 1960s. He said the government could drop cash from helicopters to stimulate growth. People spend the free cash, which would grow the economy. It is doubtful Friedman ever took this cartoonish idea seriously. For a long time, no one else did either.

The worse the economy gets, the more likely Central Banks will “do something.” But there’s a problem. They are running out of tools, they don’t have much room to cut rates even more.

The other favourite way to “stimulate” the economy is to print money. Helicopter money is basically a mutation of QE. But instead of printing money and handing it to the banks, the Fed would print money and give it directly to the people. To many folks, that sounds like a dream come true. After all, who doesn’t like free money? But, as frequent readers know, it would have serious side effects. Helicopter money could destroy the value of all paper currencies.

Hyperinflation:

When governments print money, the people end up with more paper currency chasing the same amount of goods and services. Everything from a loaf of bread to a new car is going to cost more. If they go too far, which almost always happens, the currency becomes worthless.

That’s why gold and silver are real money, and protects people’s wealth for thousands of years because it has a rare set of qualities: It’s durable, easily divisible, and easy to transport. Everyone around the world immediately recognize its intrinsic value.

And unlike paper money, the government can’t create more gold on a whim. That’s why gold has held its value for centuries. It’s also why the value of gold can skyrocket when governments do reckless things like printing money. – The coming crisis is going to affect negatively anyone with paper currency in his/her wallet.

Alan Greenspan Warns a Crisis Is Imminent, and Urges for a Return to The Gold Standard:

Alan Greenspan said in the interview he wouldn’t critique the current policies of the Fed, a return to how monetary policy was done more than a century ago – fixing the value of the dollar to a given amount of gold – would be a great thing. – The paradox is that Greenspan started this all on purpose on behalf of the RKM!

“If we went back on the gold standard and adhered to the actual structure of the gold standard” as it was before 1913 “we’d be fine,” he said. “I’m known as a gold bug and everyone laughs at me,” he said. Mr. Greenspan asked “why do central banks continue to own gold” if it isn’t important?

Expect the RKM controlled central banks to force upon us the Gold Standard, as they have stolen most of the gold in the world. The only way they can make obscene profits from their heist is when they succeed in getting the world trading in gold. Read more about here: 

The end of your financial privacy:

Laws and regulations being passed throughout the West are stripping savers and investors of their financial privacy. Once financial privacy is removed, it is easy for government to confiscate funds on a massive scale. It’s happened over and over again throughout history. And that is going to happen relatively soon.

The idea is to require banks around the world to strip away customer privacy by demanding an enormous amount of information before an account can be opened or a transaction can take place.

Once a financial crisis hits, governments will likely react by freezing and then reinvesting people’s retirement assets. Instead of stocks and bonds and other asset classes, public assets will be dumped into Treasuries yielding little or no interest… or even worse, negative interest where you pay the government to loan them your money for their War of Terror.

Whatever assets people have left; it will be enormously depreciated. None of this is by accident. The idea is to make people so poor they can’t afford to leave the country even if they want to. “They want to trap you,” – They make it so you can’t afford to leave anymore. It is hard to believe with so many things going on, still too many people aren’t being aggressive about converting their money into gold and silver, and keeping their surplus cash in a private safe deposit, or moving it offshore, in opposing these changes. Wake Up and don’t become enslaved in the web of the New World Order.

Brexit a Glimmer of Hope:

The Brits didn’t listen to the elites, the heads-of-state around the EU, or heed the warnings of European Union officials in Brussels, central bankers, the TBTF banksters, and all the others pushing to maintain the status quo. Instead, they chose to lay the groundwork for stepping out of the European Union.

So, Brexit has happened, 52%-to-48% margin of victory, and a turnout of more than 72% showed just how powerful the “Leave” movement turned out to be. The ensuing crash shows how terribly weak it all was anyway. None of this panic would be happening if the EU and the global economy as a whole, were doing well and growing. It’s not growing, and there is no recovery. Just huge amounts of debt added to the global dirt heap in order to put off the day of reckoning. This is reality, and the crash was going to happen anyway because of all the negative interest paying bonds by now €10.4 trillion in the EU only. The elite have lost control of the monetary system, as they haven’t succeeded in spurring underlying healthy growth and inflation, and their efforts to juice the markets artificially are having less and less impact every day.

There’s a very simple reason for that: The credit cycle has turned! The economic cycle has turned too. The back wind that was working for the markets from 2009 through mid-2015, has turned in a head wind and is now working against them. The most significant collateral damage inflicted on the cabal by BREXIT is that it will destroy the ability of the western Central Banks to manipulate the market price of gold, silver, or any other natural recourses.

A lot of things are uncertain after the Brexit vote. But there’s one thing that is certain: it sure hasn’t hurt the case for owning gold and silver! Count with a disruption in the money system, take out cash, store food and water, and have much luck. Anyhow Brexit is not that fear mongering as the MSM displayed.

For more insight:

Biggest Bubble in the History of Finance

Greg Hunter interviews Jim Sinclair and Bill Holter

Silver Byproduct Supply Problems Could Mean 5 Fold Gains in Silver

By Jim Willie