Monday, July 13, 2015

Global Banking System on the Verge of Total Collapse

by Damon Geller, 7/13/15

As the axiom goes, “Those who ignore history are doomed to repeat it.” And since our politicians, bankers and citizens have ignored the horrifying events of just 6 years ago, the United States and the rest of the world are about to repeat history in record time. Greece is only the beginning! Recent data now confirms our worst fears: the factors that led to the 2008 collapse of the banking system are back with a vengeance. Only this time, it’s much worse than anyone imagined. With the insidious help of politicians and The Fed, banks have secretly built up over $30 TRILLION worth of the same toxic assets that destroyed our economy in 2008. But this time, when the entire house of cards comes crashing down, neither the U.S. government or the Federal Reserve have the resources to bail out the banks and prop up the stock market. Thus, experts now warn: The global banking system is on the verge of collapse! And there’s only ONE asset that can protect you.
The Real Cause of the 2008 Banking Collapse
The 2008 global banking collapse was caused primarily by the big banks gambling on trillions of dollars of toxic assets tied to the bubble real estate market. When the real estate bubble popped, those toxic assets wiped out the banks. This caused the entire global economy to collapse – trillions of dollars disappeared from savings and retirement accounts around the world, and unemployment rates skyrocketed.

The Fed-Manufactured “Recovery”

Many experts scoff at the notion we ever “recovered” from the 2008 global banking collapse. Millions of people lost their life savings, families are still struggling with real unemployment or underemployment, and an entire generation of young people are graduating college with no career options. And as we now see, entire nations like Greece are about to crumble because they never recovered from the debacle of ’08.

So, when we speak of “recovery,” we’re talking about banks and financial institutions. The fact is, big banks “recovered” because politicians and The Fed pumped trillions of dollars of YOUR money into the banks and the stock market. And not a single fraudulent banker went to jail. So the banks hoarded trillions of dollars and avoided bankruptcy, while the crooks on Wall Street rebounded to record levels despite ZERO evidence of real economic recovery.

Just look at this chart that follows the rise in the stock market right along with Fed money-printing stimulus, from the bottom of the market in 2009 to the beginning of Fed tapering in early 2014. Fed stimulus is marked by QE (quantitative easing) on the chart:

So as you can see, the stock market has been artificially inflated by The Fed pumping trillions of your dollars into the banking system and the markets.

The Return of Toxic Assets

Once the big banks got trillions in government welfare and realized no one was going to jail, they immediately set out to recreate the ungodly wealth they had enjoyed prior to 2008. That meant only one thing: banks began stockpiling the same toxic real estate assets that had poisoned our global economy in 2008. Experts have uncovered recent data that confirms the horrifying truth. As the chart below demonstrates, toxic real estate assets are now 8 times the U.S. budget, almost twice the national debt, and bigger than the entire U.S. stock market!

The Coming Global Banking Collapse

As the big banks have stockpiled over $30 trillion in toxic real estate assets, they are more invested than ever in real estate. And while the mainstream media desperately try to play down today’s real estate bubble, the simple fact is that most major markets in the U.S. have seen a DRAMATIC increase in housing prices the last two years. Meanwhile, median incomes in most major cities have DECREASED significantly during this time.

In fact, according to a new study by Trulia: rising home prices, stalling wages and tough mortgage standards are making it more and more difficult for America’s middle class to become homeowners. So how does a real estate market skyrocket when most people can’t afford to buy a home? The simple answer: wealthy speculators, aided by Fed-manufactured low interest rates, have created another real estate bubble that cannot be sustained!

Experts now warn that softening in the real estate market has already begun – just like it did in 2007 – and we are only weeks or months away from another real estate COLLAPSE! And when real estate does collapse, that $30 trillion in toxic assets will once again poison the banks.

This Time, the Safety Net Is Gone

You might be sitting back and thinking, “No problem. I might lose another 30% in my savings and retirement like I did in 2008, but I’ll get it right back right away, just like last time.” Think again. After 2008, The Fed and the U.S. government poured TRILLIONS of dollars into the banks and markets in order to save the banks. Today, both The Fed and the government are out of ammo. The fact is, we are bankrupt. This is exactly why The Fed began tapering their stimulus programs.  And this is exactly what’s happening in Europe:  there is no funny money left to bail out collapsing countries like Greece!

So as the coming collapse of the global banking system is upon us, don’t expect a recovery – not for the big banks and not for you. And if you thought a 20-30% dip in your portfolio was bad after 2008, try an 80% collapse when the banking system completely falls apart! THIS collapse could be deeper and longer-lasting than any we’ve seen before – even worse than the Great Depression!

Your Only Protection from Banking Collapse

So, how do you protect yourself when the entire global banking system collapses? The answer: Put a percentage of your savings, retirement & wealth in Gold & Silver – the #1 asset class that sits OUTSIDE of the global banking system and in fact GROWS when paper assets fail. Just look at recent history for proof: Gold DOUBLED in the years after the financial collapse of 2008, while silver increased over 5 times during the same period!

So remind yourself what it was like when Lehman Brothers and Bear Stearns collapsed and your entire portfolio took a nosedive after 2008. Are you willing to go through that and worse, knowing that the U.S. Government and The Fed no longer have enough money-printing ability to once again bail out the corrupt banking system and prop up the stock market? Can you really endure an 80% loss of your savings, retirement or wealth? Wouldn’t you rather GROW your wealth while everyone else loses theirs? Then get into Gold & Silver. NOW. Before it’s too late for you and your children.

No comments: