KWN was sent a bone-chilling email from an international reader about the terror and destruction that lies ahead as the powers that be move toward the implementation of a new global financial system.
The email below came in from an international reader who works at a financial firm:
“I sadly agree with Nomi Prins, but toss-in this caveat…There will be no crash. Because at the point our esteemed leaders realize they can no longer combat their own idiocy and face impending doom…they will take the step of unilaterally banning currency, and defer to the button-push ease of pixel-currency. This will cause the reality of zero chance any bank can fail. It negates any risk of a bank run. It eliminates the validity of precious metals as currency. (All three of these incorrect points are addressed by KWN below).
It will create black markets. And combined with the extraordinary, concerted effort to share all global citizens’ tax and financial records…virtually choke the life from citizens. Any who choose freedom will be charged as a terrorist, and given permanent freedom to either visit their God, or pace the expanse of their 6’x6’ cell.
Thus, the fraud currently conducted in financial markets will be encouraged, unhindered, and without more than the risk of algorithm de-jour, designed to ebb & flow a minor number of pixels, all to entertain the masses, and appear as if something constructive is occurring. The entire game played-out against ordinary people is revolting beyond description, and saddens me terribly.”
King World News note: While I understand this KWN reader’s frustration with what the powers that be are forcing upon the world, the underlying thesis of the email is incorrect. It is not enough for governments to theoretically save the banks by eliminating cash and moving to a purely digital system. It’s not about cash in banks, it’s about derivatives, which Warren Buffett famously described as “financial weapons of mass destruction (and) time bombs for the economic system.”
Anyone who has read the interviews KWN conducted with Andrew Huszar, the man the U.S. called upon to execute QE1, understands that derivatives had literally destroyed the global banking and financial system almost overnight. This is why the U.S. had Andrew execute QE1 and gave him the job of essentially saving the global financial system. Governments began emergency money printing and the Fed provided seemingly endless liquidity all over the world in order to prevent the collapse of the global banking and financial system…
Continue reading the KWN piece below…
So yes, the banks can and will fail in the future because of the massive nightmare and jaw-dropping leverage of derivatives. You have many major banks leveraged up many times higher than the GDP’s of their underlying countries, which is madness.
One thing is certain, this unprecedented monetary experiment will end badly. And when it does, this time the banks are too big for their underlying country’s to bail them out. This is why it is so important for investors to hold their assets outside of the banking system (the coming bail-ins).
But as the next leg of the secular bull markets in gold and silver really begin to pick up steam, gold will resume its role as the top currency in the world, and silver will outperform gold. To put this in perspective, below is a powerful chart showing the remarkable outperformance of gold and silver vs the U.S. dollar since the start of 2016.
As you can see from the chart above, since the start of the year the U.S. dollar has fallen more than 4%. During that same period of time the price of gold has risen nearly 16% and silver has risen a stunning 22+% in less than 4 months. This type of action in the future will further validate gold and silver not only as top-performing hard assets, but also as the top currencies in the world. Yes, investors can choose to hold cash in silver, not just gold, instead of fiat currencies. And although silver will be highly volatile, it will crush all major fiat currencies in terms of not only maintaining purchasing power but also increasing the purchasing power of those cash holdings.
The point of this was not only to address the understandable frustration of the KWN reader who sent in the above email, but also to make sure that KWN readers around the world truly understand how fragile the global banking and financial system really is, and why it is so important to be out of the banking system and in hard assets such as physical gold, silver and the accompanying high quality mining shares.
It is also to make sure that KWN readers also understand that for every action taken (money printing and stratospheric leverage in the banking system) by the powers that be, who are not all-powerful, there is a reaction — unintended consequences such as unimaginable financial devastation.
The bottom line is the gold and silver bull markets will be one for the history books as the worst of the financial carnage is still in front us, not in the rearview mirror, and people must prepare now while there is still time.
***KWN has now released the powerful audio interview with whistleblower Andrew Maguire and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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