Today a legend who was recently asked by the Chinese government to give a speech to government officials in China warned King World News that the 2008 collapse was merely a dress rehearsal for what the world will face in 2015. John Ing, who has been in the business for 43 years, also discussed what is going to trigger a disastrous chain reaction, panic and worldwide financial destruction in the coming year.
John Ing: “While everybody appears to be celebrating the record highs on Wall Street, we are also seeing a loss of public trust. One key example of this loss of public trust is when you look at the $1.1 trillion spending bill in the U.S., where there was the dilution of the Dodd-Frank Act which now allows for bail-ins in the United States.
Elizabeth Warren immediately warned that we keep on diluting these so-called safeguards that have been put in place which were designed to prevent a repeat of 2008. This will lead to disastrous consequences….
Continue reading the John Ing interview below…
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“Meanwhile, the derivatives monster has gotten even bigger. With the drop in the oil price we have yet to see the impact of the credit default swaps and what this will mean for the stability of the global financial system. This will certainly set off a chain reaction of problems in 2015.
China Making Aggressive Moves
In the midst of the collapse in crude prices, we see China aggressively stockpiling oil. They are taking full advantage of the surplus and the low price in order to build massive reserves. What’s most important here is how the Chinese have been paying for this oil — in yuan and rubles, not dollars. This is part of a growing move around the world away from the U.S. dollar, and this trend is set to accelerate in 2015. Despite the recent weakness, this will mean a very big year for the gold market.”
Eric King: “Is 2015 the year we see another derivatives nightmare like the one the world got a taste of in 2008/2009?”
Ing: “There is no question about that. The derivatives complex today is even bigger than it was in 2008. U.S. bank derivatives exposure alone is in the hundreds of trillions of dollars. What people don’t realize is that 15 percent of that exposure is in the energy sector. So when oil is at $54, half of what it was before, undoubtedly this will create tremendous turmoil in the derivatives arena and we have not seen the fallout from that yet. This is setting up to be a repeat of the 2008 subprime collapse all over again.”
2008 Collapse Simply A Dress Rehearsal
Eric King: “When this turmoil starts to unfold, John, how catastrophic will it be?”
Ing: “The 2008 collapse was just a dress rehearsal compared to what the world is going to face this time around. This time we have governments which are even more highly leveraged than the private sector was. So this time the collapse will be on a scale that is many magnitudes greater than what the world witnessed in 2008.
Government balance sheets are in far worse condition today because of the money printing binge which was undertaken as a desperate attempt to keep the world from totally imploding in 2008/2009. We are told that governments can always tax people but that is preposterous. Also, we only have to look at Russia and Venezuela to see we have the beginning of a series of catastrophic sovereign defaults in the wings.
Right now the world seems content to keep their foreign exchange reserves in U.S. Dollars, but that will change. You saw what just happened with the Russian ruble. Well, the U.S. dollar is the most vulnerable currency in the world, much more so than Russia’s currency. So the world is headed for incredible turmoil in 2015 as the dollar plunges and the derivatives monster unleashes fear and panic across the globe.” ***ALSO READ JUST RELEASED: PAUL CRAIG ROBERTS – How Russia & China Can Save The World In 2015 by CLICKING HERE.
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