A Global Meltdown

By Greg Hunter’s USAWatchdog.com 

The “you know what” hit the fan today with sharp selloffs of just about everything.  The Dow was off nearly 400 points–ouch!  So much for the so-called “recovery.”  Gold made a significant comeback after being down nearly $80 at one point, but it still took one on the chin.  Yesterday, Fed Chief Ben Bernanke admitted that the world economy was in the tank and headed lower when he said there were “. . . significant downside risks to the economic outlook, including strains in global financial markets.”  You might want to call this Bernanke’s self-fulfilling prophecy.

A quiet global meltdown was already underway before Bernanke’s speech.  Now the volume has been turned up so everybody on the planet knows what’s going on.  Monday, I said, “The problem is so large that the European Central Bank along with the Bank of Japan, Bank of England, Bank of Switzerland and the U.S. Federal Reserve will all team up and bail out Europe—again.  The ECB is setting up a $600 billion European bank bailout fund, and according to Treasury Secretary Tim Geithner, $600 billion is not enough for the European share of the bailout!”  (Click here to read the complete post.) 

Now, we find out that the IMF is going to activate $571 billion in credit lines to help with the EU meltdown that is threatening to suck the entire planet into a financial black hole.  Let’s see, there’s $600 billion from the EU, $571 billion from the IMF and $400 billion in bond buying (on the long end of the curve) from the Federal Reserve, and world markets are still melting down?   Nearly $1.6 trillion doesn’t seem to be enough to stop the cliff dive the world economy is about to take?  Not a chance.

Don’t think the powers are going to give up that easily.  There will be much more to this new worldwide bailout story.  Keep in mind, the Fed handed out $16 trillion in the aftermath of the last financial crisis in 2008.  This new crisis is, at the very least, just as bad and I think worse than the last one.   The sell-off in precious metals will be short lived.   I smell ink and lots of it coming our way.

Comments
  1. Patricia, Seattle

    The term “Global Meltdown” is really losing its shock value. This just feels like another day in the stock market.

    Why did gold go down?

    • Greg

      Patricia,
      Some believe there will be deflation as the economy slows down in what is called a double-dip recession. That would be true if there were no bailouts or money printing. I am in the camp that the Fed and other world central banks will step in and once again bail out the banks. When that becomes clear, then gold and other precious metals will go back up. That is the short simple, answer to a complicated scenario.

      Greg

      • droidX-G

        Greg, There is also extensive multigovernment intervention in the silver and gold markets to depress the price. BY doing this they keep people buying bobbles and trinket AND not real assets.

      • droidX-G

        Add margin calls to that and JP Morgan with tremendous short positions on silver and gold. Economies are like nature. They strive for equilibrium. The hard these dorks in Washington/Wall St try to force down a price, contervalences increase and when it pops the manipulated commodity. Be it dollar or gold it will over shot +/- depending on whether they are depressing or overvaluing, the equilibrium and then go back up or down to reach it.
        Did anyone that follows Keynesian theory remember to jntell it was done while the entire worldwide was on the gold standard? Do you think that
        would make a difference.
        Hell yes

    • Kevin

      Margin calls, suppression, and a perceived weak attempt at economic stabilization with “Operation Twist” resulted in distorted deflationary sell-off and profit-taking. What’s assured, particularly with the current crop of Keynes ideologues and crony enablers, the printing presses will be re-oiled and re-cranked full-bore to “save” the world from economic meltdown. Watch for additional QE, subsequent market bounce out of an inflated dollar, and a corresponding rise in gold prices. Despite the chicanery, the overall trend for fiat is down…way down…and real money–gold–to resume its upward trajectory.

  2. Frank Brady

    Thanks Greg. Now would be a good time for all of us to sharpen up on our gardening skills.

    Frank

  3. Charles Allen

    Hi Greg,

    What did Bernanke allude to…”significant downside risks to the economic outlook, including strains in global financial markets.” WOW! That sounds like banker-speak letting everyone know we have just begun to go over the economic cliff.

    I believe the socialist-communist plan is finally culminating in success. The $16 trillion dollars given away by this current U.S. government administration and the continuing plan to give away billions and billions more is the biggest theft in human history. Our congress, president, and the “Fed” have brought about the fall of the current civilization. It’s now just a few clean up steps to make it final.

    Frank Brady is right when he says its “a good time for all of us to sharpen up on our gardening skills.” Our dollars will not be worth the cost of a match to burn them, so self-reliance will become the means to survival. However, not everyone will be able to do that, so the rest of will have to prepare for them. GOD, help us all!

    Thanks to you Greg for keeping us informed.

    • Greg

      Thank you Charles and Jeff for the kind words. I want people to be warned about what is coming down and it is very big and awful. We will have inflation and a collapse and many will be wiped out for a generation. I do to take action to protect themselves and their families. Peace brothers and thank you both for your support!
      Greg

      • Bill

        Hi Greg,

        Jim Willie, Jim Sinclair and Lindsey Williams, have all warned of an upcoming “Global Currency reset”. I am getting a sense that this is upon us. Not sure we will make it to April before it hits. Not sure of your thoughts on this event happening this quickly. Any chance you can get a follow up interview with one of these three focusing on the GCR?

        You do a terrific job, always look forward to your insightful interviews.

        Thanks Greg.

        Regards,
        Bill

  4. Jeff

    Y’know, Greg, you’re just full of joyful, happy news, aren’t you? HA! I jest, of course. You’re one of the far too few who tell us what we need to know in this insane world. Thanks, again, as always!

    Jeff

  5. Jflan

    PM’s went down today because i bought them two days ago. DUH!

  6. rrr

    Your work is much appreciated.

  7. Mitch Bupp

    Hi Greg, I wondered how long Bernanke could keep the people from noticing that all he was doing was polishing a turd? The economy is sunk because the future is so leveraged that it is criminal. The market has been over sald for 10 years creating less future demand while profit margins got crushed by companies using economies of scale that pushes profit margins so low only the big survive.

    • Gayl

      Mitch You made Me laugh “Polishing a Turd”. God im worn out on this crap , but i keep prepping,praying,keeping informed and thanking God that he gave me the gift to see whats realy going on, While 99% Of the sheeple are totaly clueless.Keep the faith God has a plan. Sergeant First Class U.S.Army (Retired) 11b-40

  8. Glenn

    Hey Greg, you know things are now apparently bad when the World Bank, IMF, political incompetents, and Big Ben are forecasting doom and gloom. Hang on to your seat folks, the ride is just getting started.

  9. Glenn

    Oh, forgot to mention. Tonight on Canada’s CBC ‘The National’, our flagship evening newscast, Britain’s PM David Cameron who is in Ottawa, that’s our Capital city for all you Americans, stood up in Parliment to deliver a speech on the world economy and to give our PM a verbal pat on the back for doing such a good job up here by not following Europe’s and the U.S.’s path of economic destruction. Just as he wrapped up his lengthy speech, the lights in the building went out. How’s that for an ominous foreshadow for things to come.

  10. William

    Hey Greg, What do you think the tipping event will be? A society that is spirtually, morally and financially bankrupt as ours is, will only take one more event to push it into the abyss.

    Thanks, Bill………….

  11. norcar survivor

    I went to Cosco today and saw that a fifty pound bag of rice has 5oo servings in it. People need to understand where this is going and going quick. Food storage and precious metals. Spend you money now on things that can be bartered because very soon, It will be worthless. Bartering works because everything goes up in price, even in good times so even if we are wrong, your money value is still protected. You have been great Greg for many years to spread the message, but you can not do it alone. We must all get very serious about getting others involved. Food storage and secret rooms in our homes are not far fetched. We will be broken into from time to time in hard times. The secret is to outsmart the looters. We can always return to our homes and pick up where we left off if we are smart. Being prepared now is the only answer to surviving tomorrow. Pray for another day for your neighbors. It is hard to say all of this and not sound hysterical, but we have not known Hysteria yet, at least not this generation. But we will.

    • William

      I was asked not to long ago what will be worth more when the hyper inflation is upon us, food, water or ammo? Answer they will be all worth the same. What a difficult thing to think about, but we must.

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