Today David Stockman warned King World News that investors need to brace themselves for historic and worldwide financial destruction. KWN takes Stockman’s warnings very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget and help save the United States from collapse. Below is what Stockman, author of the website contracorner, had to say in his powerful interview.
Eric King: “David, the man who is counsel to big money around the world, Michael Belkin, just spoke with KWN and issued a dire warning for the financial markets. I just wondered how you see things at this point with the Dow recently tumbling and everything that is happening across the globe? What should we expect?”
Stockman: “Well, the watchword at this point is stay out of harm’s way. We are headed into a perfect storm of policy failures. This is not simply a failure by the Fed, which has inflated this massive bubble and painted itself into a corner with no clue how to get out, but we are also seeing an absolute failure of American world dominance…
“Our foreign policy is collapsing everywhere and yet the Washington war party keeps wanting to do more of the same. This confrontation with Putin is utterly out of hand and unnecessary. Now we have a trade war going that is going to ricochet through an already fragile European economy. Continue reading
The showdown with Russian president Vladimir Putin comes at moment of surging global supplies of LNG, which can be diverted to European markets and reduce the Kremlin’s political leverage. The price of LNG in Asia has crashed from $20 to $11 per British thermal unit since February.
The pan-EU group Gas Infrastructure Europe said the network of LNG terminals in Britain and the Continent is currently operating at just 20pc of its full capacity. It could in theory boost flows by 160bn cubic metres (BCM), if there is available gas.
This is more than Russia’s entire shipments, which reached 155 BCM last year. The European network of pipelines does not cover every region and would leave pockets in eastern Europe without supply.
“We have a lot of free capacity in LNG in Europe. It would be extremely difficult to replace Russian gas in a just a few months but it is possible to raise supply,” said one official. Continue reading
Zimbabwe’s President Robert Mugabe has called on the country’s remaining white farmers to cede land to black people.
“We say no to whites owning our land and they should go,” Mr Mugabe told his supporters at a rally.
The white farmers union said it was regrettable that racial tensions were flaring up again. Continue reading
The collapse of the monetary system awaits the world in the near future, says financial expert James Rickards. Russia and China’s desire to rid the US dollar of its global reserve currency status is an early sign of the “increasingly inevitable” crisis.
“China has three trillion dollars, but they are buying gold as fast as they can. China worries that the US is going to devalue the dollar through inflation so they want to have a hedge if the dollar goes down, so the gold will go up,” Rickards told RT.
As one of the key events in support of his forecast, Rickards points to the words uttered by Russian President Vladimir Putin at the 18th International Economic Forum in St. Petersburg that took place earlier this month.
“Putin said he envisions a Eurasian economic zone involving Eastern Europe, Central Asia, and Russia. The Russian ruble is nowhere near ready to be a global reserve currency, but it could be a regional reserve currency,” he said, as quoted by ETF Daily News. Continue reading
On March 17, commodities adviser Jim Sinclair spoke in an interview with Greg Hunter of USA Watchdog on gold, the markets, and ongoing events taking place between the U.S. and Russia over Ukraine. During the 30 minute interview, Sinclair laid out a chilling scenario where Russia has positioned themselves to be one move away from collapsing the U.S. economy, and that one wrong move by President Obama could set the entire scenario in motion.
Jim Sinclair: To sanction Russia is to forget that Russia supplies Europe with its gas supplies. I honestly believe sanctioning Russia is the same as shooting yourself in the foot.
Greg Hunter: So Russia could not only say hey, we want gold for our payment (oil), but they could say, hey… we want you to pay us in rubles.
JS: Or pay us in anything. Also, it makes energy cheaper. Why would anyone want to pay in dollars if they can pay in their own currency? Continue reading
A top financial advisor, worried that Obamacare, the NSA spying scandal and spiraling national debt is increasing the chances for a fiscal and social disaster, is recommending that Americans prepare a “bug-out bag” that includes food, a gun and ammo to help them stay alive.
David John Marotta, a Wall Street expert and financial advisor and Forbes contributor, said in a note to investors, “Firearms are the last item on the list, but they are on the list. There are some terrible people in this world. And you are safer when your trusted neighbors have firearms.” Continue reading
U.S. Treasury and Federal Reserve officials worried about the growing possibility of a catastrophic default are crafting contingency plans to mitigate the economic fallout if Congress fails to extend America’s borrowing authority, a source familiar with the plans said.
With just eight days before the Treasury Department says the U.S. will hit its $16.7 trillion (10.46 trillion pounds) borrowing limit, lawmakers and the White House remain far from a deal to extend it. Officials are examining what options might be available to calm financial markets if a U.S. debt payment is missed.
The specifics of their planning remain unclear, but the source said an area of special focus is a key bank funding market known as the tri-party repurchase agreement, or repo, market, where banks often use Treasury bills, notes and bonds as collateral for short-term loans from other banks and big money market funds. Continue reading
Jim Rogers has a two-word message for U.S. investors: “Be careful.”
“The U.S. is the largest debtor nation in the history of the world,” Rogers told CNBC.com Wednesday night by phone from Singapore. “We may well have a big, big rally in the U.S. stock market, but it’s not based on reality. I would encourage investors to know you’re in a fool’s paradise, be careful, and when people start singing praises, say, ‘I’ve been to this party before, and I know know it’s time to leave.'”
“First of all, throughout American history, we’ve always had slowdowns every four to six years. That means that sometime in the next couple of years—three years, maximum—we are going to have problems again, caused by whatever reason,” Rogers said. “For instance, there was 2001 and 2002, and then 2007 and 2009 was much worse. Well, the next time it’s going to be worse still, because the level of debt is so, so, so much higher. Every country is increasing its debt at the same time.”
“This is the first time in recorded history that we have every major central bank in the world printing money, so the world is floating on an artificial sea of liquidity. Well, the artificial sea is going to disappear someday, and when it does, the catastrophe will be even worse. Yes, it’s coming,” Rogers reiterated, adding: “If I was smart enough to tell you when it’s going to happen, I would get rich.” Continue reading
The biggest story on global financial markets today is the collapse of gold and silver prices. Gold is down more than $90 an ounce since Friday – a fall of about 7 percent. The price drop comes on top of last week’s 4.7 percent tumble. Silver prices tumbled 8 percent, or $24 an ounce.
Copper is also falling. The reasons for the plunge are linked to the recent rise in the stock market, the slow, steady improvement of the US economy and the recent strength of the dollar. Crude oil futures have tumbled on global markets, down to less than $89 for West Texas crude, the lowest price since December, 2012. Continue reading
“Every reliable technical tool is warning of major peaking action,” said Walter Zimmerman, the senior technical analyst at United-ICAP. “This includes sentiment, momentum, classical chart patterns, and Elliott wave analysis. Continue reading
As the article hits out, the only thing propping up the European financial system are politicians — likely the same for the U.S., South American and Asian economies as well. This means they are the last line of defense, armed with nothing more than half-truths and artificial propping of the economies via central banks to keep the citizens nice, happy, calm and in the dark. If this is the case, it shouldn’t be long before a collapse comes. One could say a litmus test for the article would be to watch the reaction of the markets when another scandal breaks out among the said politicians, at home or abroad.
I want to issue a major warning to investors: the EU Crisis is going to get worse in the coming months.
I realize that most investors and analysts believe that the EU Crisis is over. Then think that because the S&P 500 is closing in on its all-time highs that things are fine in the system.
They are wrong.
The only item that held Europe together in 2012 was the credibility of EU politicians and ECB President Mario Draghi. Please note that nothing fundamental improved for the EU’s financial system: EU GDP has since re-entered a recession and EU unemployment has a hit a new record.
Indeed, the only reason things even looked better was because various Government engaged in massive interventions. In the case of Spain, this included raiding 90% of their social security fund to buy Spanish bonds so that yields would fall. Continue reading
Today your average American would never believe it. For one, the public is only being spoon-fed the news that the media declares as news — not what the true salient issues of today are. Two, because of being dished this ‘news’ for such a long period of time, anything like this article is likely to be dismissed as a wacko conspiracy theory. Three, today’s culture cares more about whether the Lakers won (then riot if not) and if they can keep up with the Kardashians. As long as people can have the latest iPhone and continue as a shopping mall regime, everything is just dandy. When the big economic hit comes, reality will slap 99.9% of the unprepared/unaware public in the face and create a crisis of existence for America as we know it. Collapse is a foregone conclusion, there is no coming back. How America will cope is the bigger question. The tone may have a negative ring to it, and it’s wished to be wrong, but it is what it is.
American businessman and former third-party presidential candidate Ross Perot is refusing to endorse either Mitt Romney or Barack Obama in this year’s election battle, saying that neither candidate has a viable debt reduction plan.
“We’re on the edge of the cliff, and we have got to start fixing it now. Otherwise, we’re leaving a disaster to our children’s and our grandchildren’s future,” Perot said in an interview last week with USA Today’s Richard Wolf.
The national debt has quadrupled in the 20 years since Perot first started sounding his warning about government spending. Now that the national debt has exceeded the gross domestic product, the government has to print more and more money as overseas investors become less and less willing to lend more.
Perot is now warning that without substantive economic fixes of a magnitude far greater than those being espoused by either presidential candidate, the United States could even lose its sovereignty. Continue reading
Until recovery or destruction of the Dollar. As surely as the sky is blue, the latter will happen. QE3 is the nail in the coffin. When was the last time you borrowed your way out of debt?
If you really want to know what is going on in the economy, ignore what the Fed says and watch what it is does.
So what is the Fed doing? Bernanke’s announcement says the Fed will now spend a whopping $40 billion per month—$480 billion per year—purchasing mortgage-backed securities from the big Wall Street banks.
He says this is an effort to push down mortgage rates and get more people buying and building houses, and thus create jobs. If this is the best the Fed has to offer, America is in big trouble. Mortgage rates are already at historic lows, and people are not buying houses. Pushing record low rates a few fractions of a percent lower won’t do much. What is more likely to happen is that the big banks will finally have an opportunity to unload all their garbage subprime-mortgage-backed securities at the expense of taxpayers. This is probably the real unspoken motive.
But if that part of the Federal Reserve’s announcement wasn’t shocking enough, what it said next should blow your socks off. The Fed said it was writing itself a blank check for how much it could spend until the labor market improved “substantially.” It gave itself no predefined limit on how long, or on how much it could spend under this new QE3 program. It is completely open ended. It can go on forever.
Printing money to buy things is “Zimbabwe policy.” We all know what happened to Zimbabwe when it tried this. Eventually it cost Zimbabweans billions of dollars to buy a banana. This is where the QE road leads.
It is happening already. Within just a few hours of Bernanke’s statement, the dollar had lost over half a percent in value. On Friday it lost more than half a percent again.
In two days, the dollar lost more than a percent of its value. And that was due to just the announcement. The dollar printing has barely started.
The Federal Reserve’s QE policy will drive the dollar “through the floor,” says Peter Schiff, ceo of Euro Pacific Capital.
“This is a disastrous monetary policy; it’s kamikaze monetary policy,” Schiff told cbnc. “The dollar … is going to be in free fall at some point … ultimately there’s going to be a currency crisis.”
America needs to prepare for massive economic upheaval. America’s top banker has signaled that it is quantitative easing or sudden death for the economy. There is no choice. If the money printing stops, America stops. But that means the dollar is going to get killed. QE will destroy the dollar, and America’s standard of living.
Tough times are coming.
Full article: QE3: Dollar Killer (The Trumpet)
Rogers, who for years has been an outspoken critic of the Feds policies of “Quantitative Easing,” says the world is “drowning in too much debt.” He put the blame squarely on U.S. and European governments for abusing their “license to print money.” In the U.S. alone, the national debt has surged to nearly $16 trillion, that’s more than $50,000 for every American man, woman and child.
“[They] need to stop spending money they don’t have,” Rogers said. “The solution to too much debt is not more debt… What would make me very excited is if a few people [in the government] went bankrupt…” Rogers added.
“Mrs. Merkel has an election next year,” Rogers said. “Mr. Obama has an election in November. The Americans and the Germans – they want to do everything they can to hold the world up until after the next election.”
“It’s going to be bad after the next election.”
How bad? Worse than Rogers predicts, according to a new investigation.
In a newly released documentary that went viral last month, a team of influential economic experts say they have discovered a “frightening pattern” they believe points to a massive economic catastrophe unlike anything ever seen in the history of the world.
“What this pattern represents is a dangerous countdown clock that’s quickly approaching zero,” said Keith Fitz-Gerald, the Chief Investment Strategist for the Money Map Press, who predicted the 2008 oil shock, the credit default swap crisis that helped bring about the recession, and the Greek and European fiscal catastrophe that is still wreaking havoc until this day.
“The resulting chaos is going to crush Americans.”
“And what’s really disturbing about these findings is that the pattern isn’t limited to our economy. We found the same catastrophic pattern in our energy, food, and water systems as well.”
According to Martenson, these systems could all implode at the same time.
“Food, water, energy, money. Everything.”
Full article: Jim Rogers: It’s Going To Get Really “Bad After The Next Election” (Money Morning)
As Rahm Emanuel once said: You never let a serious crisis go to waste.
With economic collapse around the corner, and when it takes place, it would be the best time to fundamentally bring “change” to America in the way the Obama administration sees fit.
If you want to figure out what is going to happen next in the financial markets, carefully watch what the insiders are doing. Those that are “connected” have access to far better sources of information than the rest of us have, and if they hear that something big is coming up they will often make very significant moves with their money in anticipation of what is about to happen. Right now, Wall Street insiders and central banks all around the globe are making some very unusual moves. In fact, they appear to be rapidly preparing for something really big. So exactly what are they up to? In a previous article entitled “Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?“, I speculated that they may be preparing for a financial meltdown of some sort. As I noted in that article, more than 600 banking executiveshave resigned from their positions over the past 12 months, and I have been personally told that a substantial number of Wall Street bankers have been shopping for “prepper properties” this summer. But now even more evidence has emerged that quiet preparations are being made for an imminent financial collapse. That doesn’t guarantee that something will happen or won’t happen. Like any good detective, we are gathering clues and trying to figure out what the evidence is telling us.
Why Is George Soros Selling So Much Stock And Buying So Much Gold?
I am certainly not a fan of George Soros. He has funneled millions upon millions of dollars into organizations that are trying to take America in the exact wrong direction.
However, I do recognize that he is extremely well connected in the financial world. Soros is almost always ahead of the curve on financial matters, and if something big is going to go down George Soros is probably going to know about it ahead of time.
Why would you dump over a million shares of stock in major banks and purchase more than 100 million dollars worth of gold?
Well, it would make perfect sense if you believed that a collapse of the financial system was about to happen.
Earlier this year, George Soros told the following to Newsweek….
“I am not here to cheer you up. The situation is about as serious and difficult as I’ve experienced in my career,” Soros tells Newsweek. “We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression. We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse. The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.”
It looks like he is putting his money where his mouth is.
Perhaps even more disturbing is what he believes is coming after the financial collapse….
As anger rises, riots on the streets of American cities are inevitable. “Yes, yes, yes,” he says, almost gleefully. The response to the unrest could be more damaging than the violence itself. “It will be an excuse for cracking down and using strong-arm tactics to maintain law and order, which, carried to an extreme, could bring about a repressive political system, a society where individual liberty is much more constrained, which would be a break with the tradition of the United States.”
That doesn’t sound good.
George Soros has told us what he believes is going to happen, and now he is making moves with his money that indicate that he is convinced that it is actually about to start happening.
But he is not the only one that has been busy accumulating gold.
Billionaire John Paulson (the one that made 20 billion dollars on the subprime mortgage meltdown) has been buying gold like crazy and his company now “has 44 percent of its $24 billion fund exposed to bullion.”
So why are Soros and Paulson buying up so much gold?
Full article: Startling Evidence That Central Banks And Wall Street Insiders Are Rapidly Preparing For Something BIG (Economic Collapse Blog)