Is there an economic collapse coming in late 2016 possibly led by the US, possibly as early as September/October 2016? With the Dow Jones at record highs and headlines saying things in the US are great, why bother writing such an article, surely it´s ridiculous?
Many respected financial experts have predicted that the US Stock Market will collapse and many others are predicting the US dollar collapse. In normal times these would have happened by now, but these are not normal times. We are not talking a 1000 point drop on the Dow or the US Dollar dropping say 5% which would be bad enough, we are talking drops here the likes of which have never been seen, something of Biblical proportions like off a cliff edge, that no amount of market intervention will stop. This may happen, it may not.
Please note this is a disturbing read in some places and is more a "What if" article rather than a "This is actually going to happen", but the fact remains in could happen. Everything is explained in Layman terms for anybody to understand.
Many top financial experts have predicted this ( I mean a lot) since the crash in 2008 and have been ever since, but the markets and the economic numbers, despite a few short lived shocks seem to be heading slowly upwards via some roller coaster volatility and everything looks rosy in the Economic world and defying the nay sayer predictions...but is it. Are we in a 1929 scenario here, but this time only the Central Bankers and those in the markets and the Top 1% are enjoying the party.....the general public this time are out of the picture. OR is it just the problems of 2008 have not been resolved and are now much worse than before leading us into uncharted territory and with bubbles so huge just waiting to go pop in spectacular style but all covered up by creative accounting and numbers. More importantly is this cause for concern for the man in the street, or do we not have to worry about such things and just let the Government and Central Bankers sort this all out, they always do?
This I would say is an extremely important read. Most people at street level don´t really bother themselves with the value of currencies, bonds, stock market indices and other such things in the financial realms. They should! They think it´s all just numbers, it´s dull boring stuff......not my concern. They will probably take notice of interest rates whether they go up or down as that affects savings, mortgages and other debt. They will take notice of new taxes being introduced on XYZ products or the raising or lowering of other taxes especially sales and income tax. They will probably take notice of the price of oil but not it´s raw price quoted on the exchanges but the price at the pumps. They probably don´t take notice of the price of Silver or Gold as an indicator that cash and paper investments are starting to lose confidence and alarm bells are sounding. Wheat, sugar and other basics, they probably don´t follow either on the exchanges, if wheat doubles in price you can bet in the next couple of months the price of Bread will double also, that´s the price that people watch.
The thing is if you do not watch the economic indicators, do not watch the markets, and just watch things at street level like everybody else, when the SHTF with a nations currency, the stock market, the bond markets or the price of oil or wheat or whatever, most people will be caught either with their trousers down or their skirts up in the air and running round like a headless chicken when they are in said SHTF scenario. The trick is to watch the signs, and the signs are looking increasingly ominous.
This article doesn´t aim to educate but just to warn and make aware that certain tell tale signs are flashing red (and they have for sometime) and that you should be prepared for an SHTF eventuality. It is coming, this money printing extravaganza cannot go on forever. These tell tale signs are there to be seen, they were there before 2001 and also in 2008, also in 1929 and other similar times in history. History does repeat itself and people think we have learnt our lesson but history also shows we make the same mistakes and sometimes even worse. The only difference is now we are in an era of manipulation and economic deception. Things are have gone beyond clever now and markets nose dive and mysteriously correct themselves and even overshoot and look better than they were before, clear evidence a market is being propped up to avoid a mass sell off which would be a disaster. The numbers all look glowy and make good reading but the reality on the streets of the US bears no relation to those numbers.
The Reality of the Strength of the US Dollar. FIAT Currency not backed by GOLD since Nixon´s time.
The US Dollar used to be just like other Western Currencies, backed by Gold, what is called Commodity money or you could say REAL. In the US, before Nixon´s time the US Dollar was supported by what was commonly known as the Gold Standard, as in a currency was backed by a physical asset of value namely Gold and those physical reserves were held in Fort Knox. Since this Gold standard was removed at the time of Nixon, the currency has become a FIAT currency which basically means it is not backed by a physical commodity such a Gold but by the Government? and confidence only.
According to dailyreckoning.com
EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well.
Rome, France, China and Germany are examples of FIAT currency that went belly up and took a nation with it. More recent examples would be Argentina, Mexico, Zimbabwe and most recently Venezuela.
The reality is the US dollar is in a very fragile predicament and is devaluing as we speak, but the devaluation is hidden, it´s just the other global FIAT currencies are devaluing as well at the same time which creates the illusion that the US Dollar is holding it´s value. It isn´t. The only reason it is, is because it is the Worlds Reserve Currency and nothing more, meaning most of the worlds trade is conducted in that currency. That fate was decided over 70 years ago at the famous Bretton Woods international meeting of World leaders in 1944. The dollars status is also helped by the International Monetary Fund, and the World Bank, you´ve guessed it which were also set up at this infamous Bretton Woods convention. Remove that status and nobody really can imagine the outcome.
Something to consider with an open mind?
The Dollar Will Be Removed From Int'l Trade,Which Will Send Shock Waves Throughout The US:Jim Willie
The Reality of the Strength of other Global Currencies also FIAT and also pegged against the dollar
Other FIAT currencies include The Pound, The Euro and many others. Again these currencies are merely backed by their respective Governments and by confidence only and they are in a similar situation. Remove that confidence and their value will tumble and the currency devalues eventually becoming worthless. What makes matters worse all major world currencies are pegged against the US Dollar, if that collapses it drags every other currency down with it.
The start of other major countries to look at an alternative to the US dollar as a global trading currency.
Delve deeper and things get more interesting. An article from the Guardian in 19 July 2014 states that the US and it´s dominance in global trade and the dominance of the US Dollar looks here to stay as a result of the Bretton Woods meeting way back in 1944, but is it? The Guardian states on the US dominance
This won’t change anytime soon. Something just took place, though, which illustrates that dollar reserve currency status won’t last forever and could be seriously diluted. Last week, seven decades on from Bretton Woods, the governments of Brazil, Russia, India and China (BRIC´s)led a conference in the Brazilian city of Fortaleza to mark the establishment of a new development bank that, whatever diplomatic niceties are put on it, is intent on competing with the IMF and World Bank.
That headline was 2 years ago. More at The Guardian
This is another threat that raises the spectre of a collapse of the US Dollar which is being anticipated by the BRIC´s nations who do not want to go down with it. It is a form of currency confidence erosion and is a warning sign that a currency collapse could be imminent.
The Myth about the Dow Jones and Market Manipulation
The Dow Jones is the headline index around the globe and the one the world watches but this index only features the 30 largest companies so is not really representative of what is going on in the US. The S&P 500 that features 500 companies across a broader spectrum of industries is much more representative of what is happening in the US.
Go back 10 or 20 years in the financial markets and if you look at the charts there were boom cycles and bust cyles throughout history. There were Bull Markets and Bear Markets, these days there are neither. There was panic buying and panic selling and in extreme situations as we have seen in the past there would be big sell offs or corrections. The markets would recover after a period of time but they would never return to the same levels that they were before. These days recessions are averted by just printing more money known as Quantitative Easing but the outcome of that is a devaluation of a nations currency. This is what has been going on in the US for some time now. Europe is doing more of the same.
The Horrific US Debt Clock
It´s a well known fact that the US Debt is at horrific levels and is getting worse. The US is printing money like crazy via it´s QE programs but unfortunately that money has to appear somewhere on the nations accounts and it appears as debt. At the time of writing after looking at the debt at the US Debt Clock website it looks like this
$19,418,659,477,201 The last 6 digits were moving so fast it was hard to keep up and get a reading.
That is $19.4 Trillion.
This debt level is third world in nature
Who owns the Debt? China and you do (if in the US) via your Social Security Retirement Fund. More on that at About Money
Foreign Governments and Investors hold half of the National US Public Debt? What happens if nations like China stop buying US debt and lose confidence in the dollar. You would see the beginnings of a decline in confidence of the US dollar which would lead to the beginnings of a collapse of the US Dollar which would play into the hands of the Chinese who are planning to launch their currency, The Yuan as the New Global Currency. Again another external pressure that indicates that the US dollar is in a very fragile predicament, te rug could be pulled from under it at any time.
When a nations debt gets so large they start to lose control of it and eventually that nation is unable to perform any financial function, they in effect are going bankrupt.
The stark reality of the Fed Interest Rate
The Fed had kept interest rates at a historical low of 0.25% for a record number of years and raised them 0.25% on 16 Dec 2015 on the back of increased confidence in the US economy and the sign of a Recovery??. The reality of the situation is the US is heading to a $20 Trillion debt pile by the end of this year (2016) or early next (2017), that is inevitable. The Fed know they really cannot raise interest rates any further, otherwise that Debt Clock will just speed up even more, so without even borrowing anymore money the US Debt still rises regardless. If they drop the interest rate after raising it in December 2015, this would send shock waves around the world, signalling that trouble is just round the corner. Just staying put on the interest rate isn´t an option either because normally when interest rates are raised (especially from historic lows), it starts the beginning of a trend) they are raised again on the back of a Recovery picking up speed. The fact of the matter is , there is no recovery, there has been no recovery in the US since the crash of 2008. The reality is the Fed needs to head to a Euro style negative interest rate, something never seen in the history of the world. In effect you have to pay the bank to keep your money in their account and it becomes worth less every year.
What´s happening at street level in the US as in the real economy.
The jobless numbers are at all time lows but the reality is those who are working are probably on zero hours contracts, have little job security and many are working part time with the availability of full time jobs proving elusive. Add to the fact many of the young generation are addled with Student Debt of shocking levels with no hope of finding a decent job to pay these loans and end up working at Starbucks or something similar. Coupled with the fact they have very little chance of paying back this debt or even buyin their own home. That means in reality there is not much REAL money sloshing around in the economy which affects spending and the knock on effect that has on industry and services.
The housing market is experiencing a boom but the reality is you try and sell your house at those artificially inflated prices and see what happens. Net result you have to heavily discount the price to sell the house as nobody can afford those inflated prices. I could go on here but at street level, the reality bears no resemblance to the Economic party that is being paraded by Government and Wall Street.
What´s the difference between a Stock market collapse and a Dollar Collapse.
A stock market collapse in simple terms is when investors start to lose confidence in the stock market and pull their money out in ever increasing numbers which forces company shares to lose value. It effects companies which ultimately effects jobs and the economy in the longer term. The time frame is measured in months and years for the full impact to hit the streets. It depends on the severity, in extreme cases things can filter through very quickly.
A Dollar Currency Collapse is when the US Dollar (or any other currency) loses it´s value caused by a loss of confidence in that currency. It is not a loss of confidence in a company or companies , this is loss of confidence in a nation and causes that nation to experience inflation then hyper inflation where the currency becomes practically worthless and you have to use rucksacks of money to pay for a McDonalds (if there is one). The collapse of a currency (especially FIAT) could be quick and the impact would also be much quicker than a stock market collapse and much more severe and would have global impact. Think Venezuela in 2016 and you get the idea.
A currency collapse can cause a stock market crash and a stock market crash can cause a currency collapse, but either way, the currency collapse is always more severe and can take much longer to recover from.
Peter Schiff : The First 24 Hours of a US Dollar Collapse on 27 September 2016
Is the market corporate data correct or is it being distorted.
The data and news that is fed to the exchanges and by the government regarding economic data by law has to be correct but many respectable sources are saying that the information and statistics are being massaged and manipulated and that if you go to the companies website and check the latest report, it paints a different picture, a much different picture.
Will Gold and Silver be a safe haven if the US Dollar collapses?
US Government Recovery Statistics Are No Longer Matching The Collapsing Economy - Episode 1043a
If the Dollar did collapse, it would be slow initially and would then accelerate rapidly. According to the X22 Report in the post collapse scenario
1. Cash would be king until hyper inflation kicks in and that period would last a couple of months. (maybe longer maybe less)
2. Then when cash becomes worthless barter would take over and that would last for a couple of months. (maybe longer maybe less)
3. Finally IF the system did reboot then Gold and Silver would be highly sought after and have a value many times what it does today.
I agree with stages 1 and 2 and possibly 3 but what if the following happened with regard to Gold and Silver in the Great Depression.
“Under the infallible leadership of President Franklin Roosevelt, it was made illegal to own gold. On March 11, 1933, he issued an order forbidding banks to make gold payments. On April 5, Roosevelt ordered all citizens to surrender their gold — no person could hold more than $100 in gold coins, except for collector’s coins. He also made it unlawful to export gold for payment abroad, unless done through the Treasury. The penalty for defying Roosevelt was 10 years in prison and a $250,000 fine.”
If the post collapse scenario did materialise and you invested everything you had in Gold and Silver and a law was introduced outlawing said Gold and Silver. What then, especially if there was martial law.
The effect of the US Election on the Financial Markets.
This is a Christian website so I don´t get involved with Politics BUT what effect would the US election have on the Financial Markets? That is an unknown but what is more worrying is not who will win the election, but the rumours that have been around for some time and new ones surfacing that are plausible.
Here´s what I´ve heard. Before this election campaign even started it was noted from many sources (some respected) that this election would be the last ever US election. More to the point the present US president is the last ever president to be in the Whitehouse. Latest rumours (which are hard to believe) coming from a number of sources state that the election will be suspended or may never even happen due to some unforeseen event. Make of that what you will but that is something to keep an eye out for. Another is the candidate that is currently being endorsed by the current President, I´m hearing will become President no matter what, to continue the current line of policies. The opposition candidate may even step down, for whatever reason, similar situation to the UK Prime Minster elections in the UK. Just bizarre rumours on the grapevine ........... but something to be aware of.
Other Predictions.
There are so many predictions out there about the US Economic collapse with many theories here are some of the following:
1.The prediction that the US could go the same way as Venezuela preceded by riots and a Venezuela style economic collapse and martial law eventually leading the world into an global collapse
2 The rumour that all Western Economies are destroying their economies to precipitate a global collapse, bring in martial law and then a GLOBAL RESET to erase all debt, create one currency, one government, everybody chipped, one police, one army and the rest in readiness for the NWO
3. A prophecy I have seen that is from a religious source states that their is a global financial crisis coming that will be like something never seen before which will lead to global riots and chaos. A world leader will be killed in this chaos and this will spark World War III which will be a nuclear and chemical war which will be a hopeless war of 5 months duration. The UN will not be able to intervene because all UN nations will be involved. No one will win and two thirds of the planet will die.
4. Jeff Berwick of Dollar Vigilante has another theory involving the Jewish Shemitah Cycle
Is holding Gold or Silver the answer if there is a currency collapse?
If a US Dollar Collapse did happen and it went through the 3 stages, cash, barter then Gold and Silver then yes, Gold and Silver is a good investment. The problem as mentioned before is what if Gold and Silver are outlawed by martial law style police state. The best bet would be to concentrate on the basics, food, water, medical supplies enough to survive a couple of months. Food is cheap, so is water and a medical kit is a one off purchase. That´s something you should have whether you are a Christian Believer or not. None of these things may ever happen, but if they do as mentioned earlier you really don´t want to be the one running round with everybody else and living like it is right now in Venezuela
Summary:
This article has been on the back burner for 6 months or so now and I thought this was the right time to release this as I just have a bad feeling about the coming months in economic terms, it just will not go away. I don get those feelings very often and I´m not alone in these views. When you get people like the current US President saying that "you should be prepared and not rely on your government"and Harry Dent “The DOW is going to crash to a degree we haven’t seen since the Great Depression”,
you know something is coming. When you get the old and wise investors such as Warren Buffet saying the following:
Buffett on a Bank Run
BUFFETT: THERE COULD BE A POINT WHERE YOU'D REALLY WANT TO START WITHDRAWING CURRENCY. THAT WOULD BE AN INTERESTING POINT, IF CURRENCY IN A BANK IS WORTH LESS THAN CURRENCY IN YOUR HANDS OR IN A MATTRESS, THAT COULD PRODUCE SOMETHING IN THE WAY OF BEHAVIOR THAT NOBODY'S EVER ANTICIPATED.
QUICK: YOU'RE TALKING ABOUT A POTENTIAL RUN ON THE BANKS, ESSENTIALLY?
BUFFETT: WELL, IF THE DEPOSITS AREN'T DOING ANYTHING THERE, AND, AND THEY CHARGE YOU FOR HAVING THEM THERE. YOU KNOW, I MIGHT CONTEMPLATE TAKING THEM OUT.
He´s talking about implying US negative interest rates and anticipating what effect it would have on the banks and we know what happened in Greece they limited cash withdrawals to a certain small amount a day.
I hope I´m wrong about all this, but whether I´m right or wrong or not, when you see many experts saying the same thing there is no harm in being prepared.
Bible Quotes: Is an economic collapse mentioned in bible prophecy.
Mystery Babylon is mentioned in the Book of Revelation and many people say it´s America, others say it is Rome and I´ve heard elsewhere it´s Saudi Arabia and Mecca which is based on Seven Hills mentioned in Revelation. So is Rome.. The Statue of Liberty is probably the reason for the association. For some reason I don´t think it is, it just doesn´t fit, but the Bible quotes from the Book of Revelation have been included. Either way a US Dollar collapse would cause chaos in the world make no mistake and would be a good reason to bring in martial law on a global scale which would usher in the beginnings of the New World Order. Compulsory chipping or similar would be the final confirmation.
Also the King of the North is mentioned in Daniel 11 and many are saying he is Putin whereas the King of the South is Obama (based on birth). The recent BRIC´s currency move could be interpreted as a move to bring about a US currency collapse. Again debatable.
This will be followed up by another article on this topic in the future as this is a large one.
Revelation 17:3-6
3. So he carried me away in the spirit into the wilderness: and I saw a woman sit upon a scarlet coloured beast, full of names of blasphemy, having seven heads and ten horns.
4. And the woman was arrayed in purple and scarlet colour, and decked with gold and precious stones and pearls, having a golden cup in her hand full of abominations and filthiness of her fornication:
5. And upon her forehead was a name written, MYSTERY, BABYLON THE GREAT, THE MOTHER OF HARLOTS AND ABOMINATIONS OF THE EARTH.
6. And I saw the woman drunken with the blood of the saints, and with the blood of the martyrs of Jesus: and when I saw her, I wondered with great admiration.
Revelation 18:3-5
3. For all nations have drunk of the wine of the wrath of her fornication, and the kings of the earth have committed fornication with her, and the merchants of the earth are waxed rich through the abundance of her delicacies.
4. And I heard another voice from heaven, saying, Come out of her, my people, that ye be not partakers of her sins, and that ye receive not of her plagues.
5. For her sins have reached unto heaven, and God hath remembered her iniquities.
Revelation 18:8-11
8. Therefore shall her plagues come in one day, death, and mourning, and famine; and she shall be utterly burned with fire: for strong is the Lord God who judgeth her.
9. And the kings of the earth, who have committed fornication and lived deliciously with her, shall bewail her, and lament for her, when they shall see the smoke of her burning,
10. Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
11. And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more:
Many respected financial experts have predicted that the US Stock Market will collapse and many others are predicting the US dollar collapse. In normal times these would have happened by now, but these are not normal times. We are not talking a 1000 point drop on the Dow or the US Dollar dropping say 5% which would be bad enough, we are talking drops here the likes of which have never been seen, something of Biblical proportions like off a cliff edge, that no amount of market intervention will stop. This may happen, it may not.
Please note this is a disturbing read in some places and is more a "What if" article rather than a "This is actually going to happen", but the fact remains in could happen. Everything is explained in Layman terms for anybody to understand.
Many top financial experts have predicted this ( I mean a lot) since the crash in 2008 and have been ever since, but the markets and the economic numbers, despite a few short lived shocks seem to be heading slowly upwards via some roller coaster volatility and everything looks rosy in the Economic world and defying the nay sayer predictions...but is it. Are we in a 1929 scenario here, but this time only the Central Bankers and those in the markets and the Top 1% are enjoying the party.....the general public this time are out of the picture. OR is it just the problems of 2008 have not been resolved and are now much worse than before leading us into uncharted territory and with bubbles so huge just waiting to go pop in spectacular style but all covered up by creative accounting and numbers. More importantly is this cause for concern for the man in the street, or do we not have to worry about such things and just let the Government and Central Bankers sort this all out, they always do?
This I would say is an extremely important read. Most people at street level don´t really bother themselves with the value of currencies, bonds, stock market indices and other such things in the financial realms. They should! They think it´s all just numbers, it´s dull boring stuff......not my concern. They will probably take notice of interest rates whether they go up or down as that affects savings, mortgages and other debt. They will take notice of new taxes being introduced on XYZ products or the raising or lowering of other taxes especially sales and income tax. They will probably take notice of the price of oil but not it´s raw price quoted on the exchanges but the price at the pumps. They probably don´t take notice of the price of Silver or Gold as an indicator that cash and paper investments are starting to lose confidence and alarm bells are sounding. Wheat, sugar and other basics, they probably don´t follow either on the exchanges, if wheat doubles in price you can bet in the next couple of months the price of Bread will double also, that´s the price that people watch.
The thing is if you do not watch the economic indicators, do not watch the markets, and just watch things at street level like everybody else, when the SHTF with a nations currency, the stock market, the bond markets or the price of oil or wheat or whatever, most people will be caught either with their trousers down or their skirts up in the air and running round like a headless chicken when they are in said SHTF scenario. The trick is to watch the signs, and the signs are looking increasingly ominous.
This article doesn´t aim to educate but just to warn and make aware that certain tell tale signs are flashing red (and they have for sometime) and that you should be prepared for an SHTF eventuality. It is coming, this money printing extravaganza cannot go on forever. These tell tale signs are there to be seen, they were there before 2001 and also in 2008, also in 1929 and other similar times in history. History does repeat itself and people think we have learnt our lesson but history also shows we make the same mistakes and sometimes even worse. The only difference is now we are in an era of manipulation and economic deception. Things are have gone beyond clever now and markets nose dive and mysteriously correct themselves and even overshoot and look better than they were before, clear evidence a market is being propped up to avoid a mass sell off which would be a disaster. The numbers all look glowy and make good reading but the reality on the streets of the US bears no relation to those numbers.
The Reality of the Strength of the US Dollar. FIAT Currency not backed by GOLD since Nixon´s time.
The US Dollar used to be just like other Western Currencies, backed by Gold, what is called Commodity money or you could say REAL. In the US, before Nixon´s time the US Dollar was supported by what was commonly known as the Gold Standard, as in a currency was backed by a physical asset of value namely Gold and those physical reserves were held in Fort Knox. Since this Gold standard was removed at the time of Nixon, the currency has become a FIAT currency which basically means it is not backed by a physical commodity such a Gold but by the Government? and confidence only.
According to dailyreckoning.com
EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well.
Rome, France, China and Germany are examples of FIAT currency that went belly up and took a nation with it. More recent examples would be Argentina, Mexico, Zimbabwe and most recently Venezuela.
The reality is the US dollar is in a very fragile predicament and is devaluing as we speak, but the devaluation is hidden, it´s just the other global FIAT currencies are devaluing as well at the same time which creates the illusion that the US Dollar is holding it´s value. It isn´t. The only reason it is, is because it is the Worlds Reserve Currency and nothing more, meaning most of the worlds trade is conducted in that currency. That fate was decided over 70 years ago at the famous Bretton Woods international meeting of World leaders in 1944. The dollars status is also helped by the International Monetary Fund, and the World Bank, you´ve guessed it which were also set up at this infamous Bretton Woods convention. Remove that status and nobody really can imagine the outcome.
Something to consider with an open mind?
The Dollar Will Be Removed From Int'l Trade,Which Will Send Shock Waves Throughout The US:Jim Willie
The Reality of the Strength of other Global Currencies also FIAT and also pegged against the dollar
Other FIAT currencies include The Pound, The Euro and many others. Again these currencies are merely backed by their respective Governments and by confidence only and they are in a similar situation. Remove that confidence and their value will tumble and the currency devalues eventually becoming worthless. What makes matters worse all major world currencies are pegged against the US Dollar, if that collapses it drags every other currency down with it.
The start of other major countries to look at an alternative to the US dollar as a global trading currency.
Delve deeper and things get more interesting. An article from the Guardian in 19 July 2014 states that the US and it´s dominance in global trade and the dominance of the US Dollar looks here to stay as a result of the Bretton Woods meeting way back in 1944, but is it? The Guardian states on the US dominance
This won’t change anytime soon. Something just took place, though, which illustrates that dollar reserve currency status won’t last forever and could be seriously diluted. Last week, seven decades on from Bretton Woods, the governments of Brazil, Russia, India and China (BRIC´s)led a conference in the Brazilian city of Fortaleza to mark the establishment of a new development bank that, whatever diplomatic niceties are put on it, is intent on competing with the IMF and World Bank.
That headline was 2 years ago. More at The Guardian
This is another threat that raises the spectre of a collapse of the US Dollar which is being anticipated by the BRIC´s nations who do not want to go down with it. It is a form of currency confidence erosion and is a warning sign that a currency collapse could be imminent.
The Myth about the Dow Jones and Market Manipulation
The Dow Jones is the headline index around the globe and the one the world watches but this index only features the 30 largest companies so is not really representative of what is going on in the US. The S&P 500 that features 500 companies across a broader spectrum of industries is much more representative of what is happening in the US.
Go back 10 or 20 years in the financial markets and if you look at the charts there were boom cycles and bust cyles throughout history. There were Bull Markets and Bear Markets, these days there are neither. There was panic buying and panic selling and in extreme situations as we have seen in the past there would be big sell offs or corrections. The markets would recover after a period of time but they would never return to the same levels that they were before. These days recessions are averted by just printing more money known as Quantitative Easing but the outcome of that is a devaluation of a nations currency. This is what has been going on in the US for some time now. Europe is doing more of the same.
The Horrific US Debt Clock
It´s a well known fact that the US Debt is at horrific levels and is getting worse. The US is printing money like crazy via it´s QE programs but unfortunately that money has to appear somewhere on the nations accounts and it appears as debt. At the time of writing after looking at the debt at the US Debt Clock website it looks like this
$19,418,659,477,201 The last 6 digits were moving so fast it was hard to keep up and get a reading.
That is $19.4 Trillion.
This debt level is third world in nature
Who owns the Debt? China and you do (if in the US) via your Social Security Retirement Fund. More on that at About Money
Foreign Governments and Investors hold half of the National US Public Debt? What happens if nations like China stop buying US debt and lose confidence in the dollar. You would see the beginnings of a decline in confidence of the US dollar which would lead to the beginnings of a collapse of the US Dollar which would play into the hands of the Chinese who are planning to launch their currency, The Yuan as the New Global Currency. Again another external pressure that indicates that the US dollar is in a very fragile predicament, te rug could be pulled from under it at any time.
When a nations debt gets so large they start to lose control of it and eventually that nation is unable to perform any financial function, they in effect are going bankrupt.
The stark reality of the Fed Interest Rate
The Fed had kept interest rates at a historical low of 0.25% for a record number of years and raised them 0.25% on 16 Dec 2015 on the back of increased confidence in the US economy and the sign of a Recovery??. The reality of the situation is the US is heading to a $20 Trillion debt pile by the end of this year (2016) or early next (2017), that is inevitable. The Fed know they really cannot raise interest rates any further, otherwise that Debt Clock will just speed up even more, so without even borrowing anymore money the US Debt still rises regardless. If they drop the interest rate after raising it in December 2015, this would send shock waves around the world, signalling that trouble is just round the corner. Just staying put on the interest rate isn´t an option either because normally when interest rates are raised (especially from historic lows), it starts the beginning of a trend) they are raised again on the back of a Recovery picking up speed. The fact of the matter is , there is no recovery, there has been no recovery in the US since the crash of 2008. The reality is the Fed needs to head to a Euro style negative interest rate, something never seen in the history of the world. In effect you have to pay the bank to keep your money in their account and it becomes worth less every year.
What´s happening at street level in the US as in the real economy.
The jobless numbers are at all time lows but the reality is those who are working are probably on zero hours contracts, have little job security and many are working part time with the availability of full time jobs proving elusive. Add to the fact many of the young generation are addled with Student Debt of shocking levels with no hope of finding a decent job to pay these loans and end up working at Starbucks or something similar. Coupled with the fact they have very little chance of paying back this debt or even buyin their own home. That means in reality there is not much REAL money sloshing around in the economy which affects spending and the knock on effect that has on industry and services.
The housing market is experiencing a boom but the reality is you try and sell your house at those artificially inflated prices and see what happens. Net result you have to heavily discount the price to sell the house as nobody can afford those inflated prices. I could go on here but at street level, the reality bears no resemblance to the Economic party that is being paraded by Government and Wall Street.
What´s the difference between a Stock market collapse and a Dollar Collapse.
A stock market collapse in simple terms is when investors start to lose confidence in the stock market and pull their money out in ever increasing numbers which forces company shares to lose value. It effects companies which ultimately effects jobs and the economy in the longer term. The time frame is measured in months and years for the full impact to hit the streets. It depends on the severity, in extreme cases things can filter through very quickly.
A Dollar Currency Collapse is when the US Dollar (or any other currency) loses it´s value caused by a loss of confidence in that currency. It is not a loss of confidence in a company or companies , this is loss of confidence in a nation and causes that nation to experience inflation then hyper inflation where the currency becomes practically worthless and you have to use rucksacks of money to pay for a McDonalds (if there is one). The collapse of a currency (especially FIAT) could be quick and the impact would also be much quicker than a stock market collapse and much more severe and would have global impact. Think Venezuela in 2016 and you get the idea.
A currency collapse can cause a stock market crash and a stock market crash can cause a currency collapse, but either way, the currency collapse is always more severe and can take much longer to recover from.
Peter Schiff : The First 24 Hours of a US Dollar Collapse on 27 September 2016
Is the market corporate data correct or is it being distorted.
The data and news that is fed to the exchanges and by the government regarding economic data by law has to be correct but many respectable sources are saying that the information and statistics are being massaged and manipulated and that if you go to the companies website and check the latest report, it paints a different picture, a much different picture.
Will Gold and Silver be a safe haven if the US Dollar collapses?
US Government Recovery Statistics Are No Longer Matching The Collapsing Economy - Episode 1043a
If the Dollar did collapse, it would be slow initially and would then accelerate rapidly. According to the X22 Report in the post collapse scenario
1. Cash would be king until hyper inflation kicks in and that period would last a couple of months. (maybe longer maybe less)
2. Then when cash becomes worthless barter would take over and that would last for a couple of months. (maybe longer maybe less)
3. Finally IF the system did reboot then Gold and Silver would be highly sought after and have a value many times what it does today.
I agree with stages 1 and 2 and possibly 3 but what if the following happened with regard to Gold and Silver in the Great Depression.
“Under the infallible leadership of President Franklin Roosevelt, it was made illegal to own gold. On March 11, 1933, he issued an order forbidding banks to make gold payments. On April 5, Roosevelt ordered all citizens to surrender their gold — no person could hold more than $100 in gold coins, except for collector’s coins. He also made it unlawful to export gold for payment abroad, unless done through the Treasury. The penalty for defying Roosevelt was 10 years in prison and a $250,000 fine.”
If the post collapse scenario did materialise and you invested everything you had in Gold and Silver and a law was introduced outlawing said Gold and Silver. What then, especially if there was martial law.
The effect of the US Election on the Financial Markets.
This is a Christian website so I don´t get involved with Politics BUT what effect would the US election have on the Financial Markets? That is an unknown but what is more worrying is not who will win the election, but the rumours that have been around for some time and new ones surfacing that are plausible.
Here´s what I´ve heard. Before this election campaign even started it was noted from many sources (some respected) that this election would be the last ever US election. More to the point the present US president is the last ever president to be in the Whitehouse. Latest rumours (which are hard to believe) coming from a number of sources state that the election will be suspended or may never even happen due to some unforeseen event. Make of that what you will but that is something to keep an eye out for. Another is the candidate that is currently being endorsed by the current President, I´m hearing will become President no matter what, to continue the current line of policies. The opposition candidate may even step down, for whatever reason, similar situation to the UK Prime Minster elections in the UK. Just bizarre rumours on the grapevine ........... but something to be aware of.
Other Predictions.
There are so many predictions out there about the US Economic collapse with many theories here are some of the following:
1.The prediction that the US could go the same way as Venezuela preceded by riots and a Venezuela style economic collapse and martial law eventually leading the world into an global collapse
2 The rumour that all Western Economies are destroying their economies to precipitate a global collapse, bring in martial law and then a GLOBAL RESET to erase all debt, create one currency, one government, everybody chipped, one police, one army and the rest in readiness for the NWO
3. A prophecy I have seen that is from a religious source states that their is a global financial crisis coming that will be like something never seen before which will lead to global riots and chaos. A world leader will be killed in this chaos and this will spark World War III which will be a nuclear and chemical war which will be a hopeless war of 5 months duration. The UN will not be able to intervene because all UN nations will be involved. No one will win and two thirds of the planet will die.
4. Jeff Berwick of Dollar Vigilante has another theory involving the Jewish Shemitah Cycle
Is holding Gold or Silver the answer if there is a currency collapse?
If a US Dollar Collapse did happen and it went through the 3 stages, cash, barter then Gold and Silver then yes, Gold and Silver is a good investment. The problem as mentioned before is what if Gold and Silver are outlawed by martial law style police state. The best bet would be to concentrate on the basics, food, water, medical supplies enough to survive a couple of months. Food is cheap, so is water and a medical kit is a one off purchase. That´s something you should have whether you are a Christian Believer or not. None of these things may ever happen, but if they do as mentioned earlier you really don´t want to be the one running round with everybody else and living like it is right now in Venezuela
Summary:
This article has been on the back burner for 6 months or so now and I thought this was the right time to release this as I just have a bad feeling about the coming months in economic terms, it just will not go away. I don get those feelings very often and I´m not alone in these views. When you get people like the current US President saying that "you should be prepared and not rely on your government"and Harry Dent “The DOW is going to crash to a degree we haven’t seen since the Great Depression”,
you know something is coming. When you get the old and wise investors such as Warren Buffet saying the following:
Buffett on a Bank Run
BUFFETT: THERE COULD BE A POINT WHERE YOU'D REALLY WANT TO START WITHDRAWING CURRENCY. THAT WOULD BE AN INTERESTING POINT, IF CURRENCY IN A BANK IS WORTH LESS THAN CURRENCY IN YOUR HANDS OR IN A MATTRESS, THAT COULD PRODUCE SOMETHING IN THE WAY OF BEHAVIOR THAT NOBODY'S EVER ANTICIPATED.
QUICK: YOU'RE TALKING ABOUT A POTENTIAL RUN ON THE BANKS, ESSENTIALLY?
BUFFETT: WELL, IF THE DEPOSITS AREN'T DOING ANYTHING THERE, AND, AND THEY CHARGE YOU FOR HAVING THEM THERE. YOU KNOW, I MIGHT CONTEMPLATE TAKING THEM OUT.
He´s talking about implying US negative interest rates and anticipating what effect it would have on the banks and we know what happened in Greece they limited cash withdrawals to a certain small amount a day.
I hope I´m wrong about all this, but whether I´m right or wrong or not, when you see many experts saying the same thing there is no harm in being prepared.
Bible Quotes: Is an economic collapse mentioned in bible prophecy.
Mystery Babylon is mentioned in the Book of Revelation and many people say it´s America, others say it is Rome and I´ve heard elsewhere it´s Saudi Arabia and Mecca which is based on Seven Hills mentioned in Revelation. So is Rome.. The Statue of Liberty is probably the reason for the association. For some reason I don´t think it is, it just doesn´t fit, but the Bible quotes from the Book of Revelation have been included. Either way a US Dollar collapse would cause chaos in the world make no mistake and would be a good reason to bring in martial law on a global scale which would usher in the beginnings of the New World Order. Compulsory chipping or similar would be the final confirmation.
Also the King of the North is mentioned in Daniel 11 and many are saying he is Putin whereas the King of the South is Obama (based on birth). The recent BRIC´s currency move could be interpreted as a move to bring about a US currency collapse. Again debatable.
This will be followed up by another article on this topic in the future as this is a large one.
Revelation 17:3-6
3. So he carried me away in the spirit into the wilderness: and I saw a woman sit upon a scarlet coloured beast, full of names of blasphemy, having seven heads and ten horns.
4. And the woman was arrayed in purple and scarlet colour, and decked with gold and precious stones and pearls, having a golden cup in her hand full of abominations and filthiness of her fornication:
5. And upon her forehead was a name written, MYSTERY, BABYLON THE GREAT, THE MOTHER OF HARLOTS AND ABOMINATIONS OF THE EARTH.
6. And I saw the woman drunken with the blood of the saints, and with the blood of the martyrs of Jesus: and when I saw her, I wondered with great admiration.
Revelation 18:3-5
3. For all nations have drunk of the wine of the wrath of her fornication, and the kings of the earth have committed fornication with her, and the merchants of the earth are waxed rich through the abundance of her delicacies.
4. And I heard another voice from heaven, saying, Come out of her, my people, that ye be not partakers of her sins, and that ye receive not of her plagues.
5. For her sins have reached unto heaven, and God hath remembered her iniquities.
Revelation 18:8-11
8. Therefore shall her plagues come in one day, death, and mourning, and famine; and she shall be utterly burned with fire: for strong is the Lord God who judgeth her.
9. And the kings of the earth, who have committed fornication and lived deliciously with her, shall bewail her, and lament for her, when they shall see the smoke of her burning,
10. Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
11. And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more:
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