“Anyone with half a brain should be able to see that we are living in the greatest debt bubble in human history. Anyone with half a brain should be able to see that the “too big to fail” banks are being extraordinarily reckless. Anyone with half a brain should be able to see that our formerly great manufacturing cities are being transformed into crime-infested hellholes. Anyone with half a brain should be able to see that the middle class is dying.” Michael Snyder
Financial Expert Peter Schiff, CEO and chief global strategist at Euro Pacific Capital, who accurately predicted the crash of 2008, says that crash was merely an initial tremor compared to the financial earthquake that will happen in the near future.
Despite the government’s rosy estimates of 5% GDP growth in the last quarter of 2014, which Schiff says are deliberately overblown, “the U.S. economy is in far worse shape. And, unless we take our lumps now in a controlled manner, we will face a far more serious crash in the very near future resulting in the complete collapse of the dollar,” a financial Armageddon that Schiff calls the “Day of Reckoning.” And even though that would result in a “bloodbath,” with people defaulting on debts which they can’t even pay the interest on, and with banks failing, Schiff says that’s exactly what needs to happen.
But, in an interview at the Wall Street Daily, Schiff admitted that the Fed will continue to print money and use quantitative easing and zero percent interest rates to prop up the economy until it “loses the war and that means the collapse of the dollar.” It doesn’t take a degree in economic theory to understand that printing increasingly worthless dollars and artificially propping up the American economy will lead to disaster.
And when that financial crash happens, you can forget about having access to your money. In late 2014 the ruling elite [G20] met in Australia and created new rules [without treaty] that allow banks to steal money from depositors and pensioners on a global basis during another financial crisis.
Theoretically in the U.S. we are protected by deposit insurance up to $250,000, however, the FDIC has only $46 billion to cover $4.5 trillion worth of deposits. Even if you failed math you should be able to see the problem! There is also $280 trillion worth of derivatives that the five biggest banks in the U.S. are exposed to, and under the bankruptcy reform act of 2005, derivatives go first. [A derivative is a contract between two or more parties whose value is determined by fluctuations in the underlying asset, i.e. stocks, bonds, commodities, currencies, interest rates and market indexes.] With the five biggest banks exempt from these new banking rules, they are left free to just snatch the collateral, leaving the FDIC and secured depositors shivering in the cold.
So why are the powers-that-be so reluctant to face the obvious facts? The answer, according to Schiff, is that politicians are not going to admit they’ve been lying to the voters for years or that everything they have done to “help” the economy has actually made it worse. Politicians are more concerned with being reelected. They pretend that the problems don’t exist or expect the FED to provide cover for their incompetence. It’s much easier to delay the inevitable until the next guy comes into power.
If we don’t begin to face the reality and gravity of the situation very soon, we can expect the “Day of Reckoning” to be far more devastating than is necessary. Putting it off will only make things harder on all of us in the long run.
It’s time to pay the fiddler — or else…
“Anyone with half a brain should be able to see that the exact same patterns that led up to the great financial crisis of 2008 are happening again. Anyone with half a brain should be able to see that we simply cannot consume far more wealth than we produce as a nation indefinitely. Anyone with half a brain should be able to see that the incredibly foolish decisions that our politicians have been making for decades have placed us on a road to utter disaster.” Michael Snyder