Letter: Financial warningThere is a new take on an old Ernest Hemingway quote that is used to answer the question: How will the dollar die? Slowly at first. Then all at once.
By: Robert Burke, Hudson, Hudson Star-Observer
There is a new take on an old Ernest Hemingway quote that is used to answer the question: How will the dollar die?
Slowly at first. Then all at once.
For two years now I have been sending letters to the Hudson Star-Observer warning of the problems our economic model will face. Fractional Reserve Banking, the current banking model use in America and around the world, is in the final death throes. The slow phase is coming to an end.
In 2008 the crisis was caused by a housing bubble that has been replaced with a student loan bubble and a government debt bubble. If you tried to borrow in 2009 capital had dried up and the news reported payrolls having trouble finding money. We have not recovered and we have not fixed any of the actual underlying problems. In fact, things globally have gotten worse, much much worse.
Listing the problems we face would be pointless. What you need are events that say you need to be in action today. So that makes today’s letter refrigerator material.
Here are five things we expect to see as we go over the edge of the abyss.
1) Eurozone banks will declare a bank holiday and broad limits will be placed on how much anyone can withdraw.
2) A major financial firm will collapse under the weight of their derivative and bad debt holdings. In 2008 that was Bear Stearns followed by Lehman Brothers with a touch of AIG on top.
3) The Eurozone will collapse in debt and the Euro quite literally dies.
4) China will declare the age of dollar domination over; and then their economy will collapse. Yes, China is a paper tiger and you should look into their ghost cities.
5) When you see Ben Bernanke declare the start of Quantitative Easing 3 (QE3) buy silver and gold fast, fresh inflation is coming and the end is nigh.
This is not a full list of what is expected to come, but, coming are all of these and more. By the way, #1 is already under way in a number of European Countries and you might want to check out the finance section rather than the sports and entertainment because major financial firms were downgraded last week and one was hit with a $6.5 billion dollar margin call.
Like shooting fish in a barrel, it’s that easy to see it’s coming. Prepare.