They have said that the entire financial system was going to come down for quite a while now…I am one of them. These “alarmists” were the only ones back in 2006 and ’07 who foretold of the looming financial crisis. They were the ones jumping up and down at the end of the last century exclaiming that gold and silver were priced under the cost of production (as they are again now). “We” were right yet, we miscalculated one thing…”we” never believed that sovereign governments would bankrupt themselves in an effort to hide the truth. We underestimated the lengths that would be taken to prolong the current (soon to be past) system.
If you recall the fairy tale of the boy who cried wolf…the “wolf” finally did appear and yes it did devour a meal which is where we are now. Is it possible for the current debt that has built up in the system to ever be repaid? Which said another way, will holders of this debt (bonds) ever get their “money back?” Is it possible for the $1+ quadrillion derivatives market to ever actually perform? When I say “perform” I am referring to actually “pay off” given the circumstances they were originally designed to protect against? These were “individually designed” to guarantee against all sorts of “bad stuff.” Bad stuff relating to the bankruptcy of individual companies, states, countries and even including the U.S. government. “Even including the U.S. government”…does anyone really believe that ANY financial institution on the planet will still be solvent (and thus able to pay or perform) after a U.S. “bankruptcy?”
Think about this, one party…or the other (or both) were absolutely nuts when they entered into an agreement to either insure or be insured of a U.S. bankruptcy! Is JP Morgan, Goldman Sachs, AIG, Credit Swiss or some Chinese behemoth going to have the ability to “pay up” when the game stops? Wouldn’t a U.S. bankruptcy…”bankrupt” whoever it is that sold the insurance in the first place? Going just a step further, what will dollars or euros be worth? Don’t they derive their “values” based upon the “full faith and credit” of the respective governments?
Was it possible for these “alarmist wolves” to have foreseen central banks (the NY Fed?) selling gold that wasn’t even actually their own? Did “we” believe that 100 paper ounces would be sold for every 1 real ounce that actually exists? Could ANYONE have forecast that Mother Nature would be temporarily stuffed and metals prices would drop in the face of record demand with stable or actually shrinking supply? If you go back to 2007, ask yourself, how would anyone have been viewed if they used the words “bankruptcy” and “United States” in the same sentence? Fast forward and we hear this all the time on mainstream media…and even from our own congressmen, senators and president! Why do you suppose it’s “OK” now and never before? Only a few of the “wolfers” went out on a limb back then…yet to this day they are still “crying wolf.”
So why did I choose to write this piece now? Well, because “we” are wrong and been “proven” wrong? “Just look, stocks up, real estate ‘better’ and the precious metals down not to mention a ‘growing economy’ to boot.” Well yes, so we are “told” every single day and it must be true because it’s on the TV right? (As a side note, Richard Russell who was a little late recognizing the manipulation of gold and silver says, “Stocks to crash as the U.S. lies to the American people). Without going crazy into it, how can unemployment be down if less is employed today than they were for many years? How can inflation be 2% when everything collectively costs 8-10% more than it did last year? How can interest rates be lower than in the 1950’s when inflation is higher, money supplies bloated and risk of default much higher? They can’t be…but they are.
Let me explain what prompted me to write this piece. My stepdaughter who lived with us in Costa Rica and has since moved to San Francisco recently said to me, “And I’m going to listen to you who have told me the financial system was coming down for 6 years?” OK, so in her eyes (and I’m sure others) I’m an idiot. But why did she say this to me? Because I suggested that she move away from the coast as she is young and would at some point like to have a child…and I sent her a “radiation map” of what is factually moving across the Pacific from the Fukushima disaster to her area. This is actually fact and can be verified with little effort but I in her eyes am “crying wolf”…again. Am I being “alarmist?” No, I am telling her the truth but because it’s not “on TV” it must be wrong.
My point is this, only YOU can provide for yourself and your family no matter what anyone tells you. Only you can dig through what you hear, read and see. Only you can do the addition of “2+2” and come up with a true and correct answer as to what “reality” actually is. No one in the “everything is fine” camp will help you when the time comes; in fact, when “the time comes” NO ONE will be able to help you including yourself. You can either use common sense and logic to figure out “where” we are now or not.
To finish, I get asked the question constantly, “So when do you think this thing will break?” I have a standard answer, “A few years ago.” There is no way that “left alone” to free markets and Mother Nature that we could have even approached as upside down and perverted as we have become economically and financially (not to mention socially). But, it is what it is…until it isn’t. Which of course will be too late because it really is a ”wolf” in real wolf’s clothing!