On The Verge Of Systemic Breakdown?
- “Make no mistake about it, we are indeed “fairly close to systemic breakdown” and this is the reason the Government/Pentagon has been tightening down its regimen and training for the control of mass civil unrest when the collapse occurs – LINK.” – Quote
– - On The Verge Of Systemic Breakdown?
by http://investmentresearchdynamics.com/
I think we are fairly close to a systemic breakdown and if that occurs, the price changes in all asset classes are going to be extreme. Gold and silver bullion and their respective equities are arguably the cheapest assets on the planet today and remain historic safe havens even if most of the morons in our society fail to realize that fact at the present time. I have always found that buying undervalued, under-owned and, most assuredly, under-loved quality assets to have been a sound strategy. The fact that we are at historic extremes in everything today just reinforces that opinion. I may be underestimating the opposition but I think they are in deep trouble. I would much rather be playing our hand rather than theirs at this moment. – an email to me from John Embry
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Since the de facto collapse of the U.S. financial system in 2008 – accompanied by the Taxpayer bailout of the Too Big To Fail Banks – the Federal Reserve and the U.S. Government have been throwing trillions at the system in order to keep the system from collapsing again.
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Please note: the underlying system problems have never been addressed. Rather, they’ve been medicated with $3.6 trillion in money printing and a $7.5 trillion increase (70%) in Treasury debt since then of 2008.
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The markets are beginning to show the stress from 6 years of Fed and Government intervention (Govt = the Treasury’s Working Group On Financial Markets). The central planners have created a catastrophic degree of moral hazard by removing all downside risk from the paper asset markets. This in turn has created the biggest stock and bond market bubbles in the history of the known universe.
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But yesterday Zerohedge published an article which shed some light on just how dangerous the stock and bond markets have become. The article revealed that several of the largest fund management companies have lined up bank credit lines as an attempted means of creating the liquidity that will be needed when the inevitable investor exit from these catastrophically rigged markets commences:
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read more.
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