Here is a look at the massive gold surge and what the smart money is doing as stocks rally and the global credit system is imploding.
Massive Gold Rally And Smart Money
November 10 (King World News) – Peter Schiff: Over the last five trading days gold had one-day rallies of $52, $40, and $49. Gold rallies of that size are very rare and having three in five days is practically unheard of. Those who don’t understand the significance bought tech stocks. Those who do bought gold mining stocks…
ALERT:
Billionaire and mining legend Ross Beaty, Chairman of Pan American Silver, just spoke about what he expects to see in the gold and silver markets and also shared one of his top stock picks in the mining sector CLICK HERE OR ON THE IMAGE BELOW TO HEAR BEATY’S INTERVIEW.
The Global Credit System Is Imploding
Alasdair Macleod: With bank balance sheets now highly leveraged, the urgent imperative for bank directors is to reduce the ratio of balance sheet assets to their bank’s own capital. The larger banks being public companies, their directors have an obligation to protect their shareholders’ interests. And with interest rates now rising, there is a growing threat of falling financial asset values undermining both balance sheet investments and loan collateral.
Depositors rely for their protection on the duty of a central bank to ensure that the banking system does not fail. Failing that, there are deposit protection schemes to protect smaller deposits. But since central banks inflated their balance sheets with bonds acquired through quantitative easing, rising interest rates are now leading to substantial mark-to-market losses, driving the central banks themselves into insolvency. In the financial systems of the major economies, we now face the prospect of insolvent commercial banks having to be backstopped by insolvent central banks. The scope for loss of public confidence in the entire credit system is becoming more threatening by the day…
ALERT:
Legendary investors are buying share of a company very few people know about. To find out which company CLICK HERE OR ON THE IMAGE BELOW.
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This is not the only threat to currency values. As we have seen, nearly all transactions in the economy are settled in commercial bank credit which is now contracting at an accelerating rate. With all eyes on GDP, the impact will be seen by governments as highly deflationary. Government revenue receipts will be threatened with collapse, and mandated welfare obligations will soar.
The Keynesian approach is to double down on failed policies and replace the contraction of private sector credit with an expansion of public sector debt, for fear of deflationary conditions. But for the public and the foreign exchanges, the additional debasement of the major currencies becomes suddenly more obvious than the contraction of bank credit which is the proximate cause for the GDP crisis. It will be a miracle if confidence in the currencies and the entire credit system does not fail completely.
The lesson we should learn from the relationship between the two principal forms of bank credit is that the impact of central bank credit debasement on a fiat currency’s purchasing power undermines faith in it to a far greater extent that an equivalent change in commercial bank credit. And that if credit was bound properly to money, the crisis would have been avoided.
Buy Physical Gold & Silver
King World News note: Just adding to what Alasdair Macleod noted, to protect yourself and your family continue to accumulate physical gold and silver while prices are still cheap. The destruction of fiat money is guaranteed in the future. This will help you preserve your wealth and purchasing power.
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