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SGM Precious Metals: 18 Ominous Signs the Next Global Economic Crisis is Underway
The recovery hype is quickly fading as the global economy begins to crumble. The bullion banks are rapidly covering their shorts ahead of the explosion in precious metals before investors panic & run towards hard asset hedges like gold & silver.
By: SGM Precious Metals & The Elemental Economist
The Economic Collapse Blog: A lot of people believe that we will never see another major financial crisis like we experienced in 2008. Many think that this type of “doom & gloom” talk is foolish. These people didn't see the last financial crash coming & aren't preparing for the next even though the warning signs are exceedingly clear. Let us hope for the best, but also prepare for the worst, & right now things do not look good at all. Here are 18 signs that global financial markets are entering a horrifying death spiral…
#1 The yield on 10 yr US Treasuries has risen for 5/6 days, & briefly touched 2.9%.
#2 Rapidly rising interest rates are spooking investors & causing them to pull money out of bonds at a very rapid pace…
Investors have yanked nearly $20 billion from bond mutual funds & ETFs so far in August. That’s the 4th highest pullback ever. In June, investors took $69.1 billion — the highest on record.
#3 The sell-off of US Treasuries is being led by foreigners. China & Japan have been particularly aggressive in selling off bonds…
China & Japan led an exodus from Treasuries in June after FED talk of taper. China reduced its holdings to $1.2758 trillion, & Japan trimmed for a 3rd straight month to $1.0834 trillion. Combined, $40 billion in net Treasury outflows.
#4 Thanks to rapidly rising bond yields, some of the largest ETF bond funds are getting hammered right now
#5 We have witnessed the largest cluster of Hindenburg Omens that we have seen since prior to the last financial crisis.
#6 George Soros has bet a tremendous amount of money that the S&P 500 is going down.
#7 The S&P 500 has fallen for 9/11 trading days.
#8 Margin debt has spiked to extremely dangerous levels. This is a pattern that we also saw just before the last financial crash & just before the dotcom bubble burst
The margin debt on Wall Street hovers near $377bn, just below its all-time high & well above peaks before the dotcom crash & Lehman crisis.
“Investors have rarely been more levered than today,” said Deutsche Bank, warning that the spike in margin debt is a “red flag” & should be watched closely.
#9 The growth of new commercial bank loans & leases is now the slowest that it has been since the end of the last financial crisis.
#10 According to a shocking new report, Fannie Mae & Freddie Mac are masking “billions of dollars” in losses.
#11 Wal-Mart reported very disappointing sales for Q/2.
#12 U.S. consumer bankruptcies just experienced their largest quarterly increase in 3 yrs.
#13 The velocity of money in the US has hit another stunning new low.
#14 The massive civil unrest in Egypt threatens to disrupt the flow of Mid-East oil
#15 European stocks just experienced their biggest decline in 6 wks.
#16 The Japanese national debt recently crossed the quadrillion yen mark, & many are expecting the Japanese financial system to start melting down at any time.
#17 The Indonesian stock market is “cratering“
#18 Indian yields on 10 yr. govt. bonds have skyrocketed from 7.1% in May to 9.25% now.
As the future unfolds, keep an eye on EU & US “too big to fail” banks. When the next financial crisis hits, they will play a starring role once again. They have been incredibly reckless, & as Jim Rickards said in an interview, we are in much worse shape to deal with a major banking crisis than we were back in 2008…
Rickards says, “The problem in 08 was too-big-to-fail banks. Those banks & their derivative books are now bigger. Everything that was wrong in 2008 is worse today. In the 2008 crisis, the Fed’s balance sheet was $800 billion, now its $3.3 trillion & increasing at $1 trillion a yr.”
Rickards contends, “You’re going to have a banking crisis worse than before because the banking system is bigger without the resources because the Fed is tapped out.”
Rickards predicts, “My view is they won’t stop printing. We have 101 million on food stamps, 24 million unemployed & 11 million on disability, & they keep going up.”
We never came close to recovering from the last recession. Now the next major wave of the economic collapse is coming up quickly. I hope that you are taking this time to prepare for the approaching storm, because it is going to be very painful. ]
The Wall Street funded media will not be delivering the warnings that everyone needs to hear in order to prepare for the coming financial crisis that will severely overshadow 2008.
Consider for a moment the devastation caused in the housing crash & remember this was exclusively a US event. Eventually the housing crash spread like a cancer throughout the world & has caused considerable harm globally, but the fact remains that the housing crash was focused on the US originally & the damage was profound across the US. Imagine the carnage when the global economy begins to have convulsions & 8 billion people react.
The official death of the 30yr US bond bull market is particularly alarming as this is where most US investors who fled the stocks in 08 were ushered into as a safe haven. This is also where retirees are positioned under the guise of “reducing risk exposure & securing dividend payments” & for that reason is an inconceivably top heavy sector that is already beginning to hurt those participating as the biggest, most well informed investors are dumping bonds at record pace. Soon this market will suffer a devastating blow that will in a flash destroy wealth that has taken a lifetime to accumulate.
You have insurance policies for health, fire & home, do you have insurance for your investments?