#1. THE SHEMITAH MARKET CRASHES. There is reportedly a cyclical market crash every seven years – 1973, 1980, 1987, 1994, 2001, 2008 – and the next one could occur before the end of 2015. Some have mentioned the end of the Jewish Shemitah (Sabbath) on September 13, 2015 as the likely date for this crash. But even if nothing disastrous happens on that date, it does not mean the US economy is clear of the inevitable market corrections that must occur. Rabbi Jonathan Cahn has really pushed the Shemitah message via his two New York Times Best Sellers.
#2. In June the central bank of all central banks, the Bank of International Settlement (BIS), warned that the world is defenseless against the next financial crisis, because their main weapon, interest rates, are unable to go any lower.
#3. THE DOMINO EFFECT DANGER. Puerto Rico defaulted on its municipal debt on August 3rd, 2015. The insurance companies that insure Puerto Rico’s debt are re-insured by other insurance companies, which can cause a domino-like collapse in the financial derivatives markets.
#4. Bank of America, Citibank, JP Morgan Chase, Goldman Sachs, and Morgan Stanley have combined derivatives exposure of $279 trillion, but combined assets of only $8.2 trillion.
#5. CRONY CAPITALISM. The US Federal Reserve has printed $23 trillion since 2008 and 80% of this went to the top 8% of US households. Only a proper Congressional Audit of the Fed – which the Fed has blocked for decades – would tell the public how much the private owners of the Fed essentially dolled out to their chums – all at the expense of the American tax payer.
#6. In that same period, the median household income has continuously decreased, meaning the artificial economic recovery has nothing holding it up.
#7. THE ONGOING GOLD RUSH. China, Russia, and India (the BRICS nations) are now hoarding physical gold and silver in record amounts, and major banks like Goldman Sachs and HSBC are also making major acquisitions of these commodities. The BRICS nations seem to want to restore the global financial system to honest money (i.e. money backed by precious metals – rather than the “fiat” currencies being printed out of thin air seemingly with reckless abandon). The worst part is that the mainstream, corporate media pundits in the West usually will tell their audience that physical gold and silver are bad investments and try to sell their audience on a non-existent economic recovery (that is based for instance on manipulated jobs numbers).
#8. While many lost their jobs and homes or experienced a decline in their pensions, some traders earned as much as 500% return during the 2008 financial crisis. It was the best of times for some and the worst of times for others.
In 2007 and 2008, sovereign governments were able to “bail out” failed banks and corporations to keep the present financial system from crashing outright. But observers like Peter Schiff (who actually predicted the 2000 and 2008 crashes) suggest that the “Bail outs” just postponed the actual system overhaul that is required for the American economy to become truly healthy again. Yet others warn that in any subsequent global financial crisis, (1) the debt-strapped governments won’t be able to bail any failed banks or companies and (2) more crucially the world could experience a complete (fiat) currency collapse that could see real wealth transferred from fiat (paper) money assets to physical commodities like foodstuff, gold and silver.
Though the statistics look grim, we can not only survive such an economic downturn, but even THRIVE in the transition! That, however, requires new thinking, new paradigms, and new action on our part. Partaking in the ongoing gold rush, like China, Russia and many Western elites, may just be good insurance against total loss of real wealth.