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The global financial system is a ticking time bomb according to yet another ex-Central Banker who's decided it's time to punt. And in perhaps the most egregious display of keynesian hubris since Mr. Magoo told us the US Government can always pay its debts by simply "printing money" (50 secs CNBC here), the former head of The Bank of England, and now 'Lord' Mervyn King, has penned a new book and entitled it -- wait for it --- "The End of Alchemy." Alchemy, "a type of science and philosophy from the Middle Ages which attempted to perform successful experiments of the unusual." (yourdictionary dot com). Yup, the very same bankster who helped engineer the global financial bubble turned bust, and then enabled the £500bn bailout of Britain's broken banking system, is now warning that the world economy is on the cusp of "another crisis" (because) "bankers and regulators have colluded in a self-defeating spiral of complexity" (since 2008). Wow! Either Lord King has been watching Ron Paul on Youtube and had an epiphany, or he is broadcasting loud and clear to his friends in high places that the time to exit this mess is now! Unfortunately, most people won't choose door number 2 until its too late, either too weary to read another book, or too mesmerized by the dancing Don. Mervyn however will have said his peace, on the record, and can then say afterwards that he told you so -- these lords know all about staying in honor. Below is some terrific reporting on the self-defeating complexity of which he warns. Cheers!
Worse Than Lehman, But It's "Contained"
The pile of toxic corporate bonds in the US, euphemistically called "distressed" debt, ballooned 15% in the single month of February to $327.8 billion, up 265% from a year ago. The number of S&P rated US companies with distressed debt rose 9% in February to 353, up 128% from a year ago. The last time the pile of distressed debt had soared to this level was in November 2008, and the last time the number of distressed issuers had shot up to these levels was in October 2008; Lehman had declared bankruptcy in September. That the distress in junk bonds is worse today than it was when Lehman filed for bankruptcy, and that it is predicting a higher rate of defaults than it predicted at that time is interesting in a number of ways. Today, still, no one is panicking.
The Global Run On Physical Cash: Why It Pays To Panic First
Recall that for NIRP (negative rate policy) to truly work, paper currency has to be substantially eliminated everywhere it is implemented. Still, what the chart above shows is that if, and when, a run on physical cash begins, there will be roughly $1 dollar in physical to satisfy $10 dollars in savers' claims, a ratio which drops to 20 cents of "deliverable" cash if the $100 bill is taken out of circulation.
The Great Corporate Earnings Fraud
With approximately $270 billion of "one time" add-backs to income used to deceive the public, the true valuation of the median S&P 500 stock is now the highest in history - higher than 1929, 2000, and 2007. Wall Street's latest con game, with the active participation of corporate CEO co-conspirators, is a last ditch effort to fend off the inevitable stock market crash. It didn't work in 2008 and it won't work now. All economic indicators are flashing red for recession. Stocks are poised for a 40% decline faster than you can say Wall Street criminal banks.
The G-20s Big Fat Zero
The global economy incurred about $5 of new debt for every $1 of additional GDP. Given the fact that most of the world was already at peak debt the implication is quite clear. To wit, this was phony GDP that is not organic or sustainable; it will be clawed back in the coming global deflation/recession, meaning that the world's true leverage ratio has only gotten dramatically worse than it was in 2008.
COMEX Silver Stocks Reach Historic Low
From the beginning of 2008, the Registered Silver inventories fell from 90+ Moz to 26.7 Moz in July 2011, total decline was 64 Moz over this 3 1/2 year period, averaging out to be 18.3 Moz decline per year. Now compare that to the 45 Moz decline starting at the peak in March, 2015 (70.3 Moz). This was a huge 45 Moz decline in less than a year -- almost three times the decline rate compared to the 2008-2011 period.
Happy to Help ...
Its true, gold and silver bullion do not pay dividends nor throw-off interest. It's also true that the physical bullion has insured wealth and protected purchasing-power for 6000 years, and will remain money when all else fails. Silver and Gold in physical form are unencumbered wealth, free of counter-party risk, and of all liability when your broken Government or Zombie bank blows up. I invite you to contact me for the very best pricing and discreet, informed service.
Day Of Reckoning Imminent
In this clip ... Nixon announces that he will "temporarily" default on the convertibility of the dollar into gold. One cannot show this video often enough, because it is such an excellent example of a government official lying as soon as he opens his mouth, with every single sentence he utters. It also betrays a frightening degree of economic ignorance.
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Sovereign Exchange International Ltd.
Steven Merrill, President
www.sovereigncoin.net
phone:
778.835.7667
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Engage a Rich New Audience; Reconcile to your Private Account; Settle for Metal at Any Time. The Sovereign Exchange was founded by Steven Merrill and a small network of individuals from across British Columbia with a vision to embrace Austrian economic principles and provide a sound payment facility than be trusted for commerce and used to store wealth.
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