Saturday , 21 December 2024

Head’s Up! A Perfect “Financial” Storm May Be Developing (+2K Views)

In the financial world at this very moment we have 8 different “weather systems” that are all developing in real time. If several of the more powerful components were to converge – and reinforce each other – then we could very rapidly reach the point of greatest financial instability that the world has seen since 2008.

Modern severe financial crises can stem from the intersection of three separate but deeply intertwined risks – those of contagion risk, liquidity risk and counterparty risk, and this “perfect storm” that is developing is starting to look like it could potentially trigger all three of these risks.

This doesn’t mean a certain end of the financial world as we know it – this analysis isn’t a forecast or a “call” – but rather a “head’s up” that our radar map is starting to light up from one end to the other with notable developments.

Keep an eye on the radar, this could get interesting!

The original article (see HERE) assembles a step by step description of each of these 8 “weather systems” and how they interrelate.

Have your say on the subject via:

We’d like to know what you have to say.

Related Articles from the munKNEE.com Vault:

1. Another Global Financial Crisis Is Coming – the Question Is When, Not If!

The attempt to solve what was essentially a global debt crisis with mountains of more debt means we will have another global financial crisis – the question is when rather than if – and this will have an impact on our economic recovery and on asset prices and hence the importance of diversification in terms of geography and where and how they are owned. Read More »

2. Central Bank Actions Guarantee A Financial Crash Landing – Here’s Why

As we tip-toe near the edge of the third central bank generated financial bust of this century, there is absolutely no way of stopping the crash landing just ahead. Why? Because the central banks are so caught up in their own self-justifying group think that they are utterly incapable of seeing the massive financial derangement all about them – a casino that is blindly impelled to churn the secondary capital markets and inflate the price of existing assets to higher and higher levels until they ultimately roll-over under their own weight. Let me explain. Read More »

3. Bursting of Bond Bubble Will Make 2008 Stock Market Crisis Look Like A Picnic!

Many investors think that we could never have a crash like the melt-down in 2008 but they are wrong. The 2008 Crisis was a stock and investment bank crisis – but it was not THE Crisis. That will happen when the biggest bubble in financial history – the epic Bond bubble – bursts. Let me explain. Read More »

4. When the Bubble Bursts It Will Cause Deflation & Drive Widespread Social Unrest – Here’s Why

Should we be concerned when tepid economic growth and low inflation are accompanied by increasing public and private debt? Are we borrowing just to stay alive? [As I see it,] national governments will increase national debt loads in order to stay in power until one or more of them default. Then their will be financial panic which will most certainly be deflationary. Here’s why. Read More »

5. You Should Be Terrified! U.S. Is In A Debt Trap & Oblivious to the Consequences

There exists in the Congress, in the Obama administration, in the media and on Wall Street, a national belief that America can print paper money and grow its economy as its route map out of debt. With annual GDP growth expectations of 2% to 3% over the next several years, this is a completely false hope! Read More »

 

2 comments

  1. How (in layman’s terms) will I be able to tell by keeping a daily watch on markets (especially metals, dollar, oil) when the. collapse is a couple months/weeks/days away? How long will it take to get a working monetary system back in place? Will I need to be full TEOTWAKI long-term (months/years) economic survival plan; or merely survival provisioning in place for weeks/months? Both will be my trigger to provisions spending of cash on hand and converging any remaining to metals while in freefall zone.

    Currently, my family is in a military temporary lodging facility, possibly for summer while waiting for permanent relocation to husband’s next transfer as soon as October. Necessarily, I haven’t the space for my normal provisions and my cash reserves have dwindled far below comfortable. It’s an anxiety laden time, especially since most reliable forecasts are for a summer 2015 economic crisis.

    Any and all help is appreciated. I have to make the most of any notice possible, even a few days. Depending on timeline of advance warning, I need to decide to shelter in place a guarded gate away from 75-100K people or retreat to an out of the way military camp 2-3 hours away. Hopeful even just a few days’ would be enough warning for me to utilize a military commissary and exchange for as many supplies as can be leveraged between snapping up additional silver to our tiny cache of 40/90% junk. Unfortunately, we can’t afford gold even at $800., other than my very small jewelry box content.

    What truly will happen in America? How will the Fed interest weirdness rate signal affect the millions who have financed vehicles or houses at set rates? What happens when banks fold and cannot collect or process payments from customers? Is there a sign/signal to stop paying secured debt? For instance, Wells Fargo implodes; there is just no way to pay anyone to repo vehicles or houses. What then? Just keep vehicle/house forever: possession is 9/10ths and all that implies.

    No trolls, but answers can go to cascademountainranch@gmail.com. Best Regards.

  2. As many of us have said for a long time, all we need is a tiny Global hiccup to throw the current financial system into a tailspin that will cause PM values to skyrocket, therefore all investors would be wise to re-evaluate the portfolios they manage to make sure that they would weather that potential financial storm.

    Said another way, all it will take is one Geo-Political “event” and then all bets are off as far as the values of PM’s are concerned during the rest of 2015 or in 2016.

    I think the odds are at least 50-50 so the real question is not IF to own PM’s but HOW MUCH TO OWN.

    Good Luck to all of US.

    Parts of the above previously posted here:
    https://www.munknee.com/be-patient-gold-stocks-will-soon-go-vertical-again/#comment-157387
    and
    https://www.munknee.com/noonan-when-will-gold-silver-rally-not-in-2015-heres-why/#comment-157386
    =========