The Debt Bomb's Bigger Than Ever... Move Over Bonnie
and Clyde... More Evidence the Market's a Rigged Casino...
the Death of the Dollar Continues... and More!
One of the myths arising from the panic of 2008 and
the 2009 recession (Depression II) is that the world
is going through a "deleveraging" phase and that explains
slow growth. In fact, the opposite is true. The world is
more indebted than ever and the banks are bigger than ever.
The stage is set for another collapse. Goldman Sachs is
now sounding a warning about this new debt bomb!
Banks paying big fines to the U.S. government for rigging
markets is nothing new. Tens of billions of fines have been
paid in the past six years. But most of those settlements were
civil or "deferred prosecution" arrangements. More recently
the Justice Department is insisting on outright guilty pleas
to criminal felonies. The big banks are now admitted criminal
enterprises. Why would you give them your money?
When hedge funds or brokers pass inside information they
sometimes end up in jail. What happens when central banks
do the same thing? Not much. Central banks have long leaked
information to favored dealers, analysts and journalists.
Investors understand that geopolitics and capital markets
are more tightly linked than ever. A lot of attention is
focused right now on events in Ukraine, Syria and Iran. Yet,
the real flash point for a dangerous confrontation involving
the U.S. is the South China Sea. A clash between China and
the U.S. is an accident waiting to happen and the result
could be catastrophic for stock markets - but good for the
dollar and gold.
The death of the UK pound sterling as the primary global
reserve currency did not happen overnight. It was a slow
steady process beginning in 1914 with the First World War,
and ending in 1944 with Bretton Woods. Something similar
is happening to the dollar today. We are seeing the slow,
steady rise of the Chinese yuan. This is part of the currency
wars that began in 2010. Investors should diversify now
before the process runs its entire course.
Currency wars are one of the most important dynamics in the
global financial system today. Of course, I started talking
about this years ago in my first book, Currency Wars. But
what I didn't mention then is that, if you know what you're
doing, you can profit handsomely from them.
Wade says, "Rickards is a Gentile that can be trusted. Of
course, he cannot mention the Usual Suspects by name for
obvious reasons. All the more amazing is the fact that he
can get the truth out without having to do so. If I win
Lotto, this is the guy to whom I would trust with my money!"
