In a not so surprising statistic released by the FBI, background checks were the highest in June since 1999-when they started keeping track of such things. Is it any wonder? We have all kinds of situations that aren’t looking to improve anytime soon, although I certainly hope they do! Weird weather, ISIS threats, Mid East turmoil, Greece/Euro debacle and now Chinese stock market implosion. Read the article here.
I can attest to the increased purchases of health products at Enerhealth in all categories but especially the Survive2Thrive 40 day/night organic food supply.
According to the Greek authorities their exit from the Euro would be catastrophic. Of course, the other side of the argument-the EC officials-counter that it wouldn’t be that bad. It becomes more and more likely that Greece will leave the EC and go it alone. How this will affect the currencies and economies globally is yet to be seen! Read this article here.
Billionaire John Paulson has bet big on Gold, raising his firms investment in the metal to 44%. He has been big on gold since 2009 but his luck has not been so hot for the past 2 years with record losses.
He is betting that gold will remain a great hedge against currency debasement, rising inflation and the possible break up of the euro. All things that everyone of us should be concerned about! He must be really concerned with a bet that size.
Seriously folks, while this guy’s recent track record isn’t the best his long term record is pretty dang good! For those of us out there that continue to hold gold and silver we can take comfort in the knowledge that some very sophisticated investors are feeling the same way as we are and doing the same thing..buying gold and silver.
The prices are down and the macro economic situation hasn’t changed at all, in fact in my view it is even worse. Now you have the Israelis talking about bombing Iran again. Syria is falling apart and the news on the Euro, Spain and Greece is just not improving. Added to all this is the threat of a world wide food shortage and I have not listed all the bad stuff out there either!
Time to get prepared? I would think so in spades! Food, water, gold and silver make up a really great starter kit!
As the can tumbles down the road, we are now hearing that the Euro is showing signs of some deeper issues developing. At first the Euros flowed from the troubled nations to the core now the capital flows are outward, from the Euro to outside currency havens.
The Euro has lost 8% against the dollar just since May. For many that might not seem too large but in the currency game this is huge! Seems that everyone is just losing hope as the European Central Bank and Germany can’t seem to come together on anything.
Ultimately the only weapon that they have is the printing press…buying more bonds with newly printed money to keep rates down in the ‘troubled’ nations. This in turn will eventually lead to inflation. Too much money chasing limited goods and services leads to higher prices for those same goods and services…at least that is the traditional thinking.
In my opinion we have not seen a ton of inflation in typical safe haven assets such as real estate due to the tremendous amount of price inflation that was artificially injected into the system via virtually unlimited cheap credit. Now we are seeing that ‘fluff’ taken out of the market entirely.
Given this logic then we might see a ‘bottom’ in that market and then a huge bounce. Rates will begin to rise and so will prices. We are already seeing food costs soar due to the drought and the drop in worldwide food supplies.
We will see if the making of the perfect storm are here and develop. The system is, in my opinion, severely stretched and it won’t take a lot to just see it disassemble. The rate and timing of this event is a moving target and when it becomes evident it may be too late for those that are not prepared!
I have to mirror something one of my best sources in financial, especially gold, markets said last week: How can anyone put their money with a clearing house given todays risks. This was from the mouth of Jim Sinclair, a highly respected voice in the metals and mining markets.
After the bankruptcy of MF Global and now the near collapse of a stock brokerage firm that cleared a ton of trades for other firms, it is even riskier to place your money with ‘others’. Given the financial health, a all time lows, of so many brokerage firms in both stocks and futures an argument can be made for simply avoiding them all together.
Unfortunately there is not only the risk that your money will disappear from a bankruptcy of one of these firms but also there is the risk inherent in these type of investments. With the new lows in fixed income rates of returns many folks are looking to add more risk by investing in the stock markets to hopefully have a somewhat better return.
Personally, there is an inordinate amount of risk these days in almost everything. Fixed income markets are just not paying enough to offset any of the risks. To avoid the additional risk of the brokerage firms you have to take delivery of the physical bonds and put them in your bank safety deposit box and then keep track of the coupons etc.
I am still a buyer of gold and silver, although I feel that the risk here is in your entry point now. Seems that there is some sort of base around 1550 in gold so prices close to that level might be good.
There are so many things out there now to be worried about, at least theoretically since we can’t do a thing about them, such as the drought and a really terrible corn and wheat crop which will cause food prices to rise even higher, collapse of the Euro and the European Community (EC) which will affect our exports and jobs that would have been there had this not happened, collapse of our economy as evidenced by first the failure of municipalities (interesting to note the Warren Buffet paid to ‘cancel’ 1/2 of his exposure to municipal defaults last quarter), not to mention the rise in senseless violence across the country.
On top of it all we have a couple of guys running for President that by all appearances and history have few differences in economic terms. Sure they talk a good game but when you look at track records there is a very odd convergence in some really critical areas-at least in my opinion.
So here is to hoping and praying that we see some substantial change, of the good kind, and very soon. In the meantime we are preparing for the worst…gold, silver, stored food and herbs and of course water!
The demise of our global economy is not an event that will go in a straight line to the bottom. It will be up and down with lots of posturing on behalf of the ‘leaders’ of the ‘developed’ countries.
Today is yet another example of this political posturing as the European Central Banker came out and said he would do whatever necessary to preserve the Euro and the EC! Pray tell what that would be sir!
The only weapon that these guys have is the ability to print money into infinity. As we all know, infinite money chasing limited supply of products, goods and services means prices will eventually rise to the point where these prices can change on an daily if not hourly basis. Hyper inflation this is called. Something that we in this country have never witnessed.
We will see in the coming days more of the same as Greece exits the Euro and the EC, yields will go higher on the sovereign debts of the EC members that are in the most trouble which will result in the European Central Bank to print more money to buy their bonds to try and lower yields. At some point this type of strategy will simply cease to function as needed and collapse will follow, but not in a straight line.
Be very careful if you are in the markets now. I personally am and have been out for quite some time…Closed my account at PFG just in time! Stick to food, water, shelter, gold and silver if I were you…And pray for better days to come!
Since my last posting on this subject,not a whole lot has changed. Well, except the fact that this situation is getting worse, as we all knew it would, and the markets are noticing.
The stock markets have fallen in 3 of the last 4 days and most of the MSM is placing the blame on the European Financial crisis. Our corporate earnings are getting hit, with more to come many think, and the prices are diving.
It was just the other day that one of the ‘doomsday’ guys, that have good track records by the way, was saying we have fallen off the financial precipice. I don’t think he is far from wrong.
Common sense indicates that the world wide economy, including our own, has yet to see the worst. That is coming on a daily basis. Please don’t believe these talking heads when they tell you that they are ‘fixing’ the problem. I am not sure they, nor anyone else, know what the problem really is!
When you don’t know the problem, you certainly can’t fix it, even if they could and I for one don’t believe that the efforts (read money they are printing) undertaken will do any good at all.
The entire system is crumbling as I write. Since the Lehman debacle we have seen far too many financial houses succumb tot he economic pressures and of course sheer greed and fraud.
Look at PFG, the future clearing house that went broke and dang few of these people will ever see any money. Given the fragile state of affairs, why would anyone want to put their money in such a clearing house, just to take more risk to make money that, due to the risk of bankruptcy of the futures firm, they might never see again!
Folks, this financial crisis will slowly unravel the fundamentals of our economy. I suggest you get prepared…take a look at where your money is and how easy or difficult it will be to access it in the event of some financial catastrophe. Do you own any gold or silver? How easy is that to get to? I am all for the Boy Scout Motto here “Be Prepared”!
We are now a week out from the infamous vote in Greece to decide whether they stayed in the Euro or left. What has changed? To be quite honest, nothing! Our markets continue to be very volatile, including gold and silver. The markets, especially the sovereign debt markets are getting hammered. Spain is on the brink of becoming Junk Bond status.
So what was all the fuss about with the Greece vote? In my opinion it really had all to do with the news cycle, and the MSM putting way too much emphasis on this one vote when there was never going to be any impact on the global Euro situation at all. I think most have already discounted the Greece debt and don’t really consider them a viable country. I believe that defacto they will, perhaps already have, left the euro.
As always for those of us outside of Greece, those folks are considerable screwed in so many ways, how will further issues/problems in the European community and the Euro affect us all?
In my opinion, there will be a gradual decline into chaos so to speak. The Central Banks will do only what they can and are used to doing-printing more money-and they will continue to call it adding liquidity. This influx of liquidity into the money supply will eventually lead us into an inflationary scenario.
Once this arrives, and it is anyone’s best guess as to will it hit the U.S. or Europe first, there will be a period of uncertainty. No one can really remember the last time we had inflation and this time around it will be quite different.
Some things that we use everyday, like food and gas, will skyrocket, while other ‘hard’ assets like real estate could very well remain in the doldrums-we will see on this one. The respective governments will consider and after much hemhawing inact price controls.
What happens after that one can study the history of such efforts in various countries and learn how those peoples reacted and i don’t think the people of today will behave much differently.
There are some tough times ahead, even tougher than what we are experiencing now….
Join Hawk and Steve Quayle for the latest breaking updates on the Euro Zone Crisis and how this could well affect our lives here in the U.S.
With Greece wanting out of the EC and further economic woes hitting all the ‘PIGGS’, some are reporting that the Euro has collapsed, at least unofficially.
A bit of background: MSM has reported that there have been huge capital outflows from Greece, in the billions per day and now Spain. It isn’t like this is just falling from the sky unannounced. Remember Ireland, Italy and Portugal all have been in the news with bailouts of some sort over the past year or two. The press has played this well, sort of like the frog in water who slowly dies as the water begins to heat up and boil.
Now it appears we might have hit critical mass with the problems in the EC. The Bailouts will continue to happen as we see more and more capital outflows, they will continue to get larger and larger as the liquidity issues mount. Much like the U.S. the ‘quantative easing(printing money) will be to infinity.
Which brings me to the point of this piece, as more money is printed and less and less economic activity there to back it up we will begin to see inflation hit the goods and services that we use on a daily basis. Moreover, the typical assets like real estate will most likely not enjoy such price inflation as no one will have the buying power to afford such purchases and without buyers prices will not rise as will prices in basic commodities, such as food and gas.
The governments are trying to fill the financial hole created by the banks and their insane lending and ‘betting'(read derivative) practices which have still not come to full force. We have been given a small insight into the destructive power of these instruments in the recent JP Morgan debacle, losing 2 billion in one 3 month period. There are trillion upon trillions of these dangerous bets floating around the world. When the music stops, we will all pay!
How can you prepare for this catastrophe should it come to pass (again many are saying that it is coming to pass right now!)?
I for one own some gold and silver, probably not enough but some. Many survivalists disagree with this strategy saying you can’t eat or drink the metals. I agree there but also see them as a short term solution to the things that I might need but haven’t seen that need yet. I do own quite a bit of storable foods, all organic, non-GMO foods that are high in nutrition. I urge everyone to educate themselves on the value of nutrition versus calories. Both are necessary but good nutrition is critical. Water is another necessity and I am fortunate enough to live very close to a river and own a gravity filter system to clean it up.
I hope everyone is somewhat prepared, if not physically mentally for what appears to be coming over the horizon. Stay Strong!