[In a recent] conversation about international banking and the state of the global financial system [with] a senior executive of a large international bank – the ultimate insider – I was floored by what he told me. [Here’s what he had to say and, in his opinion,] what basic steps, taken now, will enable you to be one of the few people left standing should the house of cards collapse. Words: 465
So writes Simon Black (www.sovereignman.com) in edited excerpts from his original article* entitled Why a banking insider says “it’s time to be very worried”.
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Black goes on to say in further edited excerpts:[Here’s what the banking insider said:]
1. …Banks are frauds; most banks, particularly in the developed west, only hold a tiny fraction of their customer’s deposits in cash [and] the rest is gambled away on whatever the popular toxic “security du jour” happens to be.
2. Most of the investment products promoted to their customers are “crap” and, as such, it struck him as incredible that people still had confidence in banks.
3. Central bankers are destructive, creating untold amounts of inflation that only serves to make people poorer, while enabling governments to go deeper into debt.
4. Very few of the banking sector’s underlying deficiencies have been addressed since the 2008 meltdown and that many western banks are still insolvent, with the key difference that their governments are now also insolvent.
5. In the coming years this confluence of risk will finally burst, most likely induced by the effects of the currency wars and competitive devaluation.
It was astounding, he said, that the G7 actually published a statement trying to soothe concerns about the global currency wars. “Whenever the government tells you to not worry about something,” he said, “it’s time to be very worried.”
Unfortunately, most people:
- don’t know what’s happening;
- don’t know that their government is insolvent, and that the only way they can persist is to go deeper into debt and devalue their currency;
- don’t know that the money in their bank account isn’t safe and
- don’t have any idea how far their government will go to maintain the status quo.
- are happily ignorant, distracted and completely unaware and
- simply aren’t going to see it coming.
From a big picture perspective, it all seems so obvious:
- National balance sheets across the developed west are deeply in the red.
- Bank balance sheets are precarious at best.
- Central bankers are flooding the world with paper money and
- Governments are trying everything– capital controls, competitive devaluation, pension nationalization– to keep the party going.
The writing is on the wall and taking some basic steps now can make a world of difference. This includes:
- purchasing real assets (precious metals, productive land),
- moving a portion of one’s savings to a well-capitalized banking system, and
- taking control over retirement funds.
The above are steps that make sense no matter what. Even if the worst never occurs, you won’t be worse off – and should the house of cards collapse, you’ll be one of the few people left standing.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
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We believe that we are in the “competitive devaluation” stage presently [see graph below] as country after country is printing money in order to lower rates and doing whatever possible to devalue their currency – to have the fastest currency in the…race to the bottom – in order to export their goods and services. [The next stage will be protectionism and tariffs. This article gives an update on the race to debase.]
I keep wondering to myself, do our money-printing central banks and their cheerleaders understand the full consequences of the monetary debasement they continue to engineer? [Below is what I think awaits us.] Words: 1013
The internet is awash (drowning?) in hundreds of doom and gloom videos providing dire warnings of coming world depression, food shortages, rioting in the streets, rampant (hyper) inflation, deepening banking crisis, economic apocalypse, financial Armageddon, the demise of America – well, you get the idea. Below is a small sample of such videos with a hyperlink to each.
“The end of the world as we know it” is what David Korowicz predicts is coming sometime this decade – an “ultimate” crash that will be irreversible – TEOTWAWKI! Words: 1395
Why are so many politicians around the world declaring that the debt crisis is “over” when debt-to-GDP ratios all over the planet continue to skyrocket? The global economy has never seen anything like the sovereign debt bubble that we are experiencing today. This insanity will continue until a day of reckoning arrives and the system implodes. Nobody knows exactly when that moment will be reached, but without a doubt it is coming. Are you ready? Words: 1270
…The US Government and its catastrophic fiscal morass are now viewed by the world as a ‘safe haven’. This would easily qualify for a comedy shtick if it weren’t so serious….[but] the establishment is thrilled with these developments because it helps maintain the status quo of the dollar standard era. However, there are some serious ramifications that few are paying attention to and are getting almost zero coverage from traditional media. [Let me explain what they are.] Words: 1150
The deficits aren’t going to stop anytime soon. The debt mountain will keep growing…Obviously, the debt can’t keep growing faster than the economy forever, but the people in charge do seem determined to find out just how far they can push things….The only way for the politicians to buy time will be through price inflation, to reduce the real burden of the debt, and whether they admit it or not, inflation is what they will be praying for….[and] the Federal Reserve will hear their prayer. When will the economy reach the wall toward which it is headed? Not soon, I believe, but in the meantime there will be plenty of excitement. [Let me explain what I expect to unfold.] Words: 1833
Higher interest rates [are eventually coming and]… will substantially increase the annual interest costs, the deficit, and the required borrowing/printing. More deficits, more borrowing, more printing, and higher interest rates will cause a larger deficit and more borrowing and the cycle will repeat. [You have a choice as to what you do to protect your current and future standard of living and this article sts it all out.] Words: 595
Don’t let the inflation monster devour your savings and retirement. It will unless you take positive steps to protect your savings and retirement. I have the answers as to: •why inflation occurs, •why your purchasing power will decrease, •what happens if you don’t protect your purchasing power, and •how to protect your savings and retirement.
Although our supposed leaders are presumably highly intelligent, educated, and knowledgeable, they act largely “brain-dead” as they lead the United States down an unsustainable path that guarantees eventual catastrophic financial destruction. Do you own enough gold and silver that you would feel safe in a such a financial melt-down? If not, why not? Words: 817
As Ayn Rand said “We can ignore reality, but we cannot ignore the consequences of ignoring reality” so, with apologies to Ayn Rand, let’s explore some examples of ignoring reality. (Words: 1132; Charts: 1)