- The Upcoming, Cataclysmic, Financial BIG BANG to End All Big Bangs
by Andrew Hoffman, http://blog.milesfranklin.com/
… Such are the ugly times we live in. And yet, the U.S. still remains the “best of the bunch.” Not that it will forever; as once the “end game” of global currency collapse plays out, the America’s political and economic power will be no more “extraordinary” than those of other former reserve currency issuers – like Portugal, Spain, France, and England. Heck, even America’s social leadership is rapidly waning, with its previously world-leading entertainment industry thoroughly dumbed down and diluted by commercialism, “reality,” and social media.
No, America won’t disappear. However, it’s once global dominance will disappear in all but a handful of niche areas. Which sounds not so bad, until one realizes its power stems largely from said “reserve currency”; and more importantly, the rest of the world’s five decade willingness to finance it. In other words, 21st century Americans are living further above their means than any other people ever have – at a time when its finances, economic outlook, and political leadership have never been worse. Which is why, undoubtedly, the “transition” from global dominance to mere ordinariness will be extremely painful – political, socially, and economically. As for “King Dollar” – which in currency terms, trades at the equivalent valuation of a $100,000 hybrid automobile amidst plunging energy prices – all we can say is this. Holding dollars instead of Precious Metals at prices well below their respective costs of production – in a world where Federal Reserve money printing is going parabolic (heck, even Bloomberg admits it) – can only be described as financial suicide.
Back to the horrible headlines, I feel like I’m in the Twilight Zone when trying to convey what should be the simplest point imaginable; i.e., collapsing commodity prices represent the “worst-case scenario” for global economies, financial markets, and social and geopolitical stability. However, thanks to the dumbing down of financial media; the unconscionable conflict of interest between what’s good for Wall Street and Washington, and what’s good for the “99%”; and of course, historically manipulated financial markets; I feel just as much the “Cassandra” for speaking of such a mainstream topic, as pleading for people to consider “taboo” investments like gold and silver. I mean, we’re supposedly in such a powerful “recovery” that Federal Reserve “lift-off” is imminent. And yet, global commodity prices broke through 2008’s spike bottom lows last week; led by the world’s most important revenue producing market, crude oil, whose horrifying plunge is just startingto unleash the “unspeakable horrors” I warned of ten months ago, when prices were nearly twice today’s depressionary levels.