Debt Problem Will Swallow the Earth-Gregory Mannarino
By Greg Hunter’s USAWatchdog.com
Financial writer and trader Gregory Mannarino predicts that big debt defaults are coming. Mannarino contends, “We are starting to see this with Greece and Puerto Rico here. It’s everywhere. This is a global problem and it’s going to engulf the world. This debt problem is going to swallow the earth. They have done this on purpose. They cannot be this stupid. . . . They are doing this on purpose and there is going to be no soft landing. It is a global issue and it is going to implode.”
Mannarino says the current financial system is dying and it was designed to die. Mannarino explains, “It’s a debt based system, and we are at the end of it now—period. This is why this is occurring—why? We are seeing equities inflate while we are seeing deflationary spiral with commodities, and it may get worse. People are going to start to realize that the debt is no good, and then cash is no good. So, what are they going to do? They are going to flock to commodities at some point in time. People will realize that commodities are real things. They are not floating around in some fantasy land where debt is a real asset. Debt is backed by nothing or the debt is backed by bankrupt governments so it’s worse than nothing. All of this is going to reverse at some point. All this cash that has been hyper-inflated by the central banks is going to move into commodities.”
With the big move by China to devalue the yuan, it now looks like a Fed rate hike in September is highly unlikely. So, what happens if the Fed says it is not raising rates? Mannarino says, “We are going to see the debt hyper-inflate further. You are going to see the U.S. equity market probably gain a little bit here, and you are going to see this deflationary spiral still play out in commodities. I think the dollar will pull back without a shadow of doubt. That is going to push commodities higher, but they will find other ways to manipulate and twist this until they can’t. Please focus on this: The now cannot be sustained. It’s a bubble, and every single bubble in history has burst. All bubbles burst because they rise above a level that can’t be sustained by any means—any means. If they don’t raise rates (in September), the dollar is going to pull back dramatically.”
On China’s recent problems and devaluations, Mannarino says, “China is in big trouble, and they are broadcasting to the world that they are in big trouble. They have taken over their stock market. They are not allowing certain trades to take place. They are not allowing shareholders to have more than a 5% stake in a company to sell it, and they are forcing brokerages to buy stock. That’s incredible. So, they are broadcasting that they are in a lot of trouble. This is a global problem, and it’s not just limited to Greece or Puerto Rico. This is a global problem and it is going to be a global meltdown, the likes of which people cannot even fathom.”
Join Greg Hunter as he goes One-on-One with Gregory Mannarino of TradersChoice.net.
(There is much more in the video interview.)
After the Interview:
Gregory Mannarino’s website is TradersChoice.net. He gives free trades and strategies. He sells nothing and also provides free analysis and articles.
Being an an over educated american, who worked in the university system for 3 years.
These people follow theory and not real life, that is why the long for tenure. They truly fear the real world.
These people could bankrupt a lemonade stand!!!
PHD’s that’s why! They are pure academics. They don’t understand the real world just what their formulae say should happen according to their economic theories. Chip
David, WD & Chip,
My knowledge of economics definitely strengthened my trust in the Bible!
For example, the Law code that God gave to ancient Israel addressed economic problems that still challenge economists today. The Law required the Israelite’s to set aside produce for the poor (a form of taxation and insurance), grant the needy interest-free loans (ensure access to credit), and restore hereditary lands to their original owners every 50 years (protect property rights). (Leviticus 19:9, 10; 25:10, 35-37; Deuteronomy 24:19-21) These and other economic provisions helped people in three important ways: They (1) supported them through financial reversals, (2) helped them recover from long-term poverty, and (3) alleviated economic inequality—and all of that more than 3,000 years before the birth of economics as a science!
The Bible also emphasizes attitudes and behaviors that promote economic security. For example, it teaches people to be honest, trustworthy, compassionate, and generous. (Deuteronomy 15:7-11; 25:15; Psalm 15) Interestingly, following the recent global financial crisis, some business schools and organizations began urging business and finance professionals to pledge to uphold certain ethical standards. The Bible’s moral standards, in my opinion, far surpass those business creeds.
My faith has also affected me personally
Studying the Bible was the best “investment” I ever made
My wife Jennifer tells me I’ve become more reasonable. I previously tended to be a perfectionist and to think in black-and-white terms. Maybe that’s why I did well with principles of accounting! Living by Bible principles has definitely helped me to be more balanced. I’m now much happier, and my family is happier too. We also enjoy sharing the Bible’s practical wisdom with others. Studying the Bible was the best “investment” I ever made.
Thank you Lawrence. Unbelievers and Academics look from the outside at Biblical Christianity, and have NO understanding – except the bias toward disproval they begin with. Biblical Christianity is experimental, reality-based and designed for useful practice – which renders multitudes of benefits. As a true revelation – the Bible proportions that which completes man, in the sense of equipping him. If any source can be signaled as a cause of human failure: it is rejecting that unique Truth and system of belief proportioned from God Himself.
Thanks Charles, love this site and the comments and enjoy your participation too! Gods speed!
David: Not sure how new you are to all of this? No one should be surprised at this point!
The fed’s are owned by the bankster- they say and do as they are told by these elite’s. Just like Congress does what they are told- all bought and paid for stooges of the elite’s- yes, both parties.
“End badly”- what does that mean? It means- when this collapse happens- the world will never be the same again. This will be worse than all other collapses before – combined.
Paper money will be worthless- all currencies. World collapse, a world of debts.
I was told years ago- Congress was told the plan was to default on the USA debts. So they could spend what ever- it wouldn’t matter- they will default whether it’s $15 trillion or $25 trillion.
This collapse will be on steroids- the world will have never seen anything like this.
Prepare as best one can. Food, water, ammo for you weapons to protect what’s yours.
As I was told- get out of anything paper- all forms to include life insurance policies- they won’t pay off, stocks, bonds, IRA’s 401’s, roth’s etc. — all paper.
Get the only real money while it’s still available gold/silver. Don’t worry about the price at this point- if you can get it- buy only local. On line orders you’ll have to wait- the waiting time may prove to be deadly. Get metal at time you turn over the cash.
DO NOT get paper gold or silver!!!
hope this helps soome
I have a PhD and I had to leave academia because of the relentless foolishness, egomaniacal behaviour and small mindedness. I was a very successful lecturer, winning awards, so it wasn’t like I couldn’t cut it. It was more like I couldn’t believe how petty and stupid such highly intelligent people could be and I didn’t want to kill my soul trying to negotiate ridiculousness day in and day out. Don’t be surprised if this is all due to stupidity on the part of the Fed PhDs. (Either that or they were too stupid to not to get out before they were able to be manipulated by those behind the scenes).
Great interview, Greg is getting better and better, really natural in this piece. But Gold is money! That Dent character is gonna burn a lot of people. If gold goes to $200 an ounce a middle class house will be $5000. Scarcity of cash is artificial if we have a deflation that some people predict it will be ON PURPOSE. Government will print take it to the bank. The bond market is all about artificial scarcity. Again love Gregs’ passion he’s great insightfuil too. JMO
No one wants to lose!
So we create insurance and that’s not enough so we create default swaps.
So on and so on until no matter what we do the system no longer works.
These are the best plans of men that have gone astray.
What we need do is accept the fact that we cannot create a system where no one can lose. There has to be those the fall as there has to be those that rise.
What you do when you try to prevent a loss in a monetary system is like creating a Dam on a river.
When the water rises you need to allow it to spill over.
You can’t keep increasing the size of the Dam.
When it spills over some people will be effected.
But if you keep increasing the size of this Dam sooner or later it will break.
And if that happens you have a major disaster.
The easy thing to do is increase the size of the Dam.
The right thing to do is create laws that address these problems.
Those laws must be hard coded into the system else they will suffer the same faith as the Glass Steagall Act and all the other good laws they were removed so that someone wouldn’t lose.
RED: Pastor Lindsey Williams was told several months ago that there will be deflationin everything- except- food and gold/silver .
Take it to the bank!!
Oh Ok, .gov won’t be printing anymore money? The only thing that won’t be inflating will be poor and middle class wages. Ask a greek.
I believe that when everyone perceives the exponential increase in paper money (and digital money) they won’t and don’t accept it because they know it is losing value and will go belly-up shortly. They will want things that hold value, and increase in value. Also the numbers get so large people know something is wrong…. and people get paid daily and prices can increase hourily, as happened in Germany, 1922/23. To see the exponential growth factor get a chart of the nation’s money supply, dating back to the beginning of the cycle, 1933 or so……
You know the tragedy in all this is as in China where a story on ZH illustrates how all the wealthy investors are getting out of stocks courtesy of the central gov buying shares. The other side is .gov is driving down precious metals allowing those same investors in at bargain basement prices again courtesy of .gov you’ve gotta love socialism. Meanwhile poor dumb smucks listening to Harry Dent et al think .gov will be introducing a new”system” to save them. Same everywhere in the west as well.
I would like to know what would happen to Gregory’s plan should the government declare gold and silver buying, selling and trading illegal. This is a serious question as Martin Armstrong has brought up that real possibility.
Easy you bury it. And because you have at least a years supply of food and durable goods in your home and you are debt free you can hopefully ride out the collapse and wont starve to death. One day your great grandchildren will dig up your bullion and thank their lucky stars…
Joseph, if that happens it will result in a massive black market that would make the narcotics trade look like a small burger and taco chain. The amount of force required to carry out such an edict would make normal life here impossible, we would essentially be living in a nightmare.
At that point, Joseph – the government would make criminals out of citizens. Making or changing a Law for the sake of the government, contrary to the good faith and practice of it’s people: is an abuse of purpose. Government SHOULD serve the People; not People serve the government. Those who bought Precious Metals, free and clear, in good markets – who then must surrender it in some forced compliance, so that the beneficiaries are not the owners but demanders: is, at least, soft tyranny.
It is said that in 1933 – the Kennedy’s did NOT turn in their gold; and after the revaluation, they were significantly advanced in their situation. Considering the Educational System in the US today – the morally grey area of criminality shouldn’t be an issue. Contacts are all you need…
Still struggle to understand the Government manipulated markets verses no such thing (Martyn Armstrong). Do understand the system cannot meet its commitments and the attempts to balance the books by governments raising taxes is making people ‘ hide’ assets (catch 22). What happens when an unstoppable force meets an immovable object? Are we about to find out?. Would like to see ideas for solutions. David Morris
Dave: the world has never seen anything like what is about to take place. It’s been planned to happen this way. The elite’s want 85-90% reduction in the population-
they will be underground in there beautiful underground cities- we paid for.
Nah, they think they’ll be able to wander.
The solution is called the rule of law, a recognition of private property and due process, an acknowledgement of the value of human life and human labor as well as the enshrinement of the basic rights bestowed upon on all people by their Maker. To have anything less will inevitably lead to a world populated with sick, poor, desperate people forced to live like savages and utterly filled with the despondent ache of living a life devoid of any value or purpose.
David, these are indeed confusing times, where the majority can not see “the forest through the trees”.
Step one is to recognize that economics, the “dismal science” is just a game.
Step two is to understand that disparity increases as the game progresses (the game is flawed).
Step three is to recognize that all games come to an end.
If one accepts the fact that we are all earthlings, and that civilization functions at its best when there is some type of game format, then in my opinion, the ultimate solution would be a one world government. But, as you have surmised, there is a “Catch 22” for every “solution”.
At this point, I believe that we are perched “on the eve of destruction”, and the best anyone can hope for would be for TPTB to pull-off some type of orderly game reset.
Back in 1974, only 40 years ago, we were thinking the same thing…… wondering if there would be a breakdown in 1975, but….. But surely we must be near the end of this cycle….
I think the time for solutions was even before the 1970’s, in the early 1960’s when James Dines noted that our foreign obligations were going beyond our alleged Fort Knox gold supply, say over 50 years ago. We did, right, SDR’s were created……
Well, maybe I’ll be able to dig up some silver coins before someone clubs me to death over a can of beans……
Greg, I just found your web site and now I can’t get enough of your information. I am totally convinced we are going to have some kind of an event soon. Question: Why are we not hearing this from the media, our politicians, or the candidates? Are they afraid the American people can’t handle it and panic? Ron Paul is really the only one sounding the alarm. I guess when the American people loose faith in the government its over. The people I talk to and try to persuade to prepare blow me off or just seem to put their head in the sand. Thx for the information.
“ABC News executive producer Ian Cameron is married to Susan Rice, US Ambassador to United Nations.
CBS President David Rhodes is the brother of Ben Rhodes, Obama’s Deputy National Security Adviser for Strategic Communications.
ABC News correspondent Claire Shipman is married to Jay Carney, former White House Press Secretary. Shipman is currently the senior national correspondent for ABC’s “Good Morning America.” She also blogs at the website, “True/Slant.”
ABC News and Univision reporter Matthew Jaffe is married to Katie Hogan, Obama’s Deputy Press Secretary.
ABC President Ben Sherwood is the brother of Elizabeth Sherwood-Randall, Obama’s Special Adviser. Sherwood is executive producer of ABC’s Good Morning America, and on December 3, 2010, Sherwood was appointed president of ABC News in New York.
CNN’s deputy Washington bureau chief and vice-president, Virginia Moseley, is married to Tom Nides, who until earlier this year was deputy secretary of state under Hillary Rodham Clinton.
NPR’s White House correspondent, Ari Shapiro, is married to a lawyer, Michael Gottlieb, who joined the White House counsel’s office in April.
The Post’s Justice Department reporter, Sari Horwitz, is married to William B. Schultz, the general counsel of the Department of Human Services.
[VP] Biden’s current communications director, Shailagh Murray (a former Post congressional reporter), is married to Neil King, one of the Wall Street Journal’s top political reporters.
Al Sharpton is a White House advisor and an MSNBC talk show host.
Reporter Savannah Guthrie Feldman who attacked Rand Paul is married to Michael Feldman, a Democratic operative.
Obama’s former Deputy Campaign Manager Stephanie Cutter works for CNN.
Hillary Clinton hired Google executive Stephanie Hannon. Google works closely with the White House.”
Welcome to the Tin-Hat Club: where nobody is to be believed – not family or close friends. Of course I’m being sarcastic: but honestly – few people are waking-up. Read on – with a grain of salt: there are many good commenters here; and the Interviewed Guests are pretty much TOPS in their fields. In a month you should be about up-to-speed.
Most think little time is left until collapse arrives; but face the wind, do what you can. Send Greg Hunter a little something, if you can; and be civil with comments here – otherwise, the water’s fine!
The Australian treasurer JoeHockey was just interviewed by the weekend Australian newspaper, a respected main stream voice for right wing politics in Australia.
‘”I’m more bullish about the region and the global economy than others because even though China is going through a transition, it has more capacity to deal with that than any other country and they will do whatever it takes,” he says.
‘Hockey, who emerged for two days of intensive talks with Chinese officials in Australia for the annual economic dialogue between the two nations this week, says China’s command economy gives its authorities more tools to shape growth than any other economy possesses.
‘”They’re using their offshore capital reserves to fund their state-owned enterprises to engage in offshore activity, which is then making use of Chinese manufacturing,” he says.’
This is the same treasurer that told us only two months ago after the budget that debt is good and to go and borrow money to invest into the housing market.
He also said that all one needs is a better paying job to support there debt.
Then he said about the new fuel tax. “It wont hurt the poor because the poor do not drive.”
This is after the head of the reserve bank of Australia warned that Housing prices in Sydney and Melbourne are “Crazy”
The reason I posted this is to just confirm what Greg Mannarino and others are saying
about stupid information from the very top that is setting up the middle class to enter the poor house when all these bubbles burst.
The politicians in Australia are currently debating why people no longer respect them.
Talk about pigs at the trough, our current speaker of the house just resigned because she was exposed for spending $8000 of taxpayers money on a 50 mile trip by private helicopter to a party fund raiser. She is not on her own, politicians from both sides have been exposed for there heads in the trough. How can they gain our respect.
Wayne- where have you been?? at least your awake now!
All USA communist media are owned by 5 of the elite’s. All controlled by them. You hear only what they want you to hear- called “Propaganda”.
get your info from the web or over seas media, but not the BBC.
Welcome to the main event- last round of the battle.
Andy, don’t move up yonder, but if you do, leave ur money down unda. In recent years, the governments of the US (in 2010), Canada (in 2013) and the EU (in 2014) have passed bail-in legislation, allowing the confiscation of deposits in bank accounts. When confiscation does occur, I believe it will happen without warning, as it did in Cyprus. One day, you wake up and your money is gone. What can you do? Nothing. It’s legal. Dinky die!
Greg, that was a thoroughly enjoyable interview, even though the news was blink. There was a spark of enthusiasm, that I have never seen in Gregory before, I guess the day of reckoning is near, he could feel it in his waters, but pinning a date on when it will happen is extremely difficult, it would be like asking your doctor, what date will I get lung cancer, so I can stop smoking the day before.
FC– the dates have been give to us by the elite’s via Lindsey Williams- Starts Sept. 15, 2015 and will spiral down through December. He was told Oct. 20th expect a currency reset by the IMF. The IMF mentioned this back in early summer, it’s coming. Expect the dollar to be hit hard-devalued.
Al, I’ve been prepared for over a year now and this waiting room to the up coming Reset, has only myself and my immediate family in it………… while the general public around me continues on blissfully ignorant with their own life’s, because in their opinion, there’s no problem that our trusted Government can’t handle and yet at the same-time they treat me with contempt as I wait and try to teach the unthinkable to the unteachable. It may sound bad, but at this stage of the game, I’m praying for The Reset to happen sooner rather than later…………….here’s to 915 and beyond.
Maybe this is a stupid question but why would the “elites” tell Lindsey anything?
The sad reality is that Joe Averageman will pay for the sins of the elites and foolhardy.
Our banking system has been a fraud for 100 years and now the promises to society are going to be broken in a way that may cause the greatest level of chaos that the West has ever seen.
Only with the grace of God will some of us be able to travel the storm that is about to over take us.
The coming weeks will tell the tale of how we reached the point of no return.
Thank you Gred for all that you do.
You are an example of a lighthouse in a storm.
Always enjoy your interviews with Greg Mannarino. The world is about to fall off a cliff and the MSM talking heads keep saying be happy, don’t worry. Are they just stupid or have they been bought and paid for. Since the USA has the reserve currency, will they be hit harder or will all countries share equally in what is to come.
Greg: Like the German propaganda machine in WW2. The media lied for Hitler about what was happening. When the collapse( the war) started- many of the first to be killed by Hitler was the media! This will happen again as history repeats itself. These stupid pressitutes will pay for their servitude, such fools to believe these evil elite’s!
The answer is: “C” – they are both bought and stupid.
Great interview! I wonder if Greg Mannarino has started to short the Dow or S&P 500? Thanks to both Gregs for all you do.
Great interview Greg I was talking to a gentle man the other day who said he was on the board of a bank. BB&T. We were talking about the coming crash. He didnt believe what I had to say. But when i told him about the bail ins that are coming he said he knows they just got a memo saying they could start in January and they are talking 6 percent of your money. So many pieces of the puzzle every one has if they would just put them all together thanks Greg
6 %- yep! that’s it? Are believing that!!?? not worth there paper work to only do 6%.
I’d bet on 60% to 100%!
Did this guy, who claimed was on the board of BB&T bank, say who this memo was from? What state are you in?
On January 1, 2016 the EU Bank Recovery and Resolution Directive takes effect in which uninsured deposit could be used in a bail-in, after shareholders and bond holders. Perhaps this gentleman is talking about something similar happening in the U.S. in regards to uninsured deposits if a bank becomes insolvent.
It still looks like the Fed can’t raise rates. In addition to all the factors weighing against the Fed raising rates is China’s recent devaluation of the Yuan.
But I think the fed will raise them anyway this year. They will cite higher inflation and an “improving” labor market with the lowest initial jobless claims ever and a very low unemployment rate as justification.
But he real reason they will raise rates is to protect the dollar against the de dollarization initiatives that are clearly taking hold.
Raising rates buys the dollar some time, not raising rates puts China in the driver seat as they took the initiative to devalue the Yuan, seemingly taking away the Fed’s initiative .
The fed’s number one goal is not the economy, but to protect the treasury and the demand for T bonds. The fed already owns 30pct of the outstanding ten year bonds, they can’t keep buying them, they need others to step up to the plate- higher interest rates helps create demand for new,y issued treasuries.
Higher rates also lowers the value of China’s current bonds making them less attractive to sell.
Also keep in mind Kerry’s seemingly disingenious comments that if the Iran deal is not passed the dollar may use world reserve currency status
This is a real threat as Iran has probably told the US no deal and we accept anything but dollars for our oil
The De dollarization threat is real and is bigger than any concern about the economy or stock market- that’s why the Fed has engineered “solid” job numbers and some CPI inflation to justify a rate hike when really its all about positioning the dollar as a strong reserve currency.
One last point- the devaluation of the Yuan may seem like good cover not to raise rates BUT that cover is only short term.
A lower Yuan means greater demand for Chinese goods meaning greater demand the Yuan for countries that already trade in Yuan and potential new demand for Yuan for countries that trade with china that dont use the Yuan giving China the ability to pressure those countries to trade in Yuan
As the Yuan becomes a currency with a greater percentage of international trade, the dollar weakens.
So the fed needs to raise rates to support reserve asset demand by paying interest on its bonds while other countries are devauling their currencies and paying no interest.
All good points. Also consider that raising interest rates will decrease the value of T-bill collateral held for/in many financial transactions. Margin calls on this existing collateral will result in demand for more/new T-bills. The banking cartel kicks the can through the uprights for another score.
Brother Smaul, NOT raising rates is an open admission that the game is a fraud and O-V-E-R. They have no choice; they have to give the illusion that the deal is valid, real, and relevant. Best always. PM
Good Morning Greg,
Great interview, Mr. Mannario always tells it like it is.
I thought some of you might be interested in hearing Fernando Feral Aguire’s take on what would happen in America during the money reset. Fernando lived through a version of it in Argentina.
No zombie bikers, or mass starvation as some guess. He states that we will have the middle class wiped out, crime increase, and public services become very bad if at all.
You can find him themodernsurivialist.com
Thanks for the great interview Greg. At one point you say that China devalued their currency by selling US Treasuries. That lost me. Could you (or fellow WDs) please explain that?? I thought they did this simply by decree like a de-pegging (Swiss Franc/Euro) or in China’s case a different peg to the U.S. Dollar. Feels like there’s a huge hole in my understanding here. Thank you.
I just took a years worth of SS checks and converted it into nearly a million Rubles last week which gives me more than enough to live on comfortably here in Russia for at least three more years. I no longer have any $’s. I have some millions of Rubles in the Russian banks drawing 19% interest which is all insured per Russian law. My wife and I also own three apartments, garage, and Dacha. The falling oil price concerns me but I don’t see the Russian Government going bankrupt like it has in the past so the Ruble should still have value inside Russia. Owning a Dacha is also a nice hedge against the coming catastrophe because we can grow enough food to live on ourselves if need be. Russia will be touched by the coming catastrophe but I don’t see Russia being destroyed like the USA is going to be. What am I missing?
I feel obligated to tell you that you need to shift your thinking and start preparing to share with others what little you will have.
None of you are going to make it if you try to go it alone.
The events going forward are no longer financial, but rather political.
Please don’t put any faith in rubles. Prayer is something that is going to come back in style in the coming years.
…but to pray for the wrong things is to pray for dismay.
We should pray that the will of God be done on earth as it is in heaven. We should pray that we find the humility to accept the strength to carry out that portion of Gods will that God has elected to set upon our shoulders. We should pray for the faith in the God we are following needed to ensure that our every footstep, our every action, our every deed is sure and without hesitation; lest we find in our delay a need for panic as we become mired in the confusion of doubt.
Well said. But, unfortunately, our technological ‘advancements’ and moral decline have isolated us from our neighbors. The community of our grandparents has largely passed from the scene. The news reports raise a little concern, sometimes sympathy, but they are ‘someone else’s problems’. Until they aren’t. Then we are unprepared to sacrifice much for anyone. Woe unto us; we are undone.
Greg…Great interview as always…:)
Gregory Mannarino never disappoints — thanks for making this analysis available Greg. Mannarino and Michael Pento seem to be seeing the same event unfolding. (“watch the bond market”) The Fed seems to have painted themselves into a corner vis a vis interest rates. I have a feeling that most intellectually honest market analysts would agree. The FOMC mtg 16-17 Sept will be very interesting. Although the well connected will move prior to the mtg, the Fed decision will have already been made.
This is a good time to be a contrarian. Whipsawing rigged markets seems to be the tactic for separating people from their money. As Mannarino said, take advantage of the opportunities presented. His thoughts regarding the shift from equities to commodities is excellent — make the move early.
Thanks again Greg.
Shemitah on Sept 13th followed by a very important FOMC on Sept 16-17th — the last half of Sept could be “interesting times “.
And if September and October come and go, and nothing happens, what then? While I agree that a global economic implosion is inevitable, TPTB seem to be able to extend and pretend at every crisis level. My concern is the start of WWIII, or a major false flag on US soil when the end becomes apparent to the money changers. They no longer have decades for permanent global depopulation or the incremental genocide of Fukushima radiation, spraying of toxic chemicals in the atmosphere, mandated worthless or deadly vaccines, or neurotoxic fluoridation, etc.etc.
Hopefully we all make it through, and live to see the great reset when our innate freedoms are fully restored. God bless.
Greg, Thank God for people like you and Greg Mannarino. Not to panic people, but to help them ponder the problems we ALL face. As we know, our current government is infested with progressive communists. Not “liberals” not “socialists” not “democrats” but card carrying communists that seem to get away with this by never actually using the C word. As progressive commies they are content to make progress in small increments and they are being wildly successful.
Obamacare is a great example. Promised as “healthcare” it is actually property control via taxation. I went from being a Free American who hates having anything to do with insurance companies, to a guy who is now FORCED to buy ins for $600. a month. I can’t afford it. So Ocare says “we’ll help, all you have to do is project your next years total income and based on that, we’ll provide you with a subsidy.” What they don’t tell you is that if your income rises in the next year, as mine has due to my hard work, it is practically impossible to “adjust” your subsidy to match your income. This is so the IRS can audit us and call us scammers in the years ahead and demand repayment of the “subsidy”. If you can’t produce the cash, they will put a lien on your property. Plain and simple. Beware of the subsidy. It is there to implement “property redistribution”. A little at a time, “progressively.” Straight out of the communist manifesto. [which actually calls for violent revolution because marx saw no other way to implement it. But the “Progressives” did. And they are doing it. That is WHY they are “Progressive”.]
Those who are destroyed in the upcoming global financial chaos ahead will be given a softer landing by “nationalizing” their property, wealth and retirement. This is why there is no worry among our current crop of world leaders. They are doing all this in order to set the stage for people to actually ask the government to step in and take control of their private [for now] property, businesses and money. This is real and happening right now.
Anyone who is curious as to why the financial system is in such disarray, “Why can’t they see what they are doing?” They CAN see and they love it. They are communists and this is how they will take your property and totally control you.
Unless we open our eyes. The commies gave up on the idea of revolution to achieve their goals. I don’t think Freedom loving Americans have.
Thanks for the hard work and the truth.
I know what you are talking about when you say subsidies for O’care. I heard that this was put into one of the bills that Congress passed and of course exempted themselves. I friend of mine lost her job and was going to have to get health insurance….somewhere down the line she was told it would cost her $1,200. and she isn’t even 60. I told her to just go on line and do a search for cheaper insurance. She was ably to find it for just over $400. I could not understand why she never checked this out before.
I was told that when the old people who have these subsidies die, then the government will be coming to their survivors to pay back the subsidies. If they cannot, yes , they will take their property to make sup the difference. People don’t see this or have never heard of it. My suggestion is to get on line and find something cheaper without the subsidies.
I agree with everything you wrote. And yes eventually they will want all the land and our paid for homes. God will have to step into the picture to protect His own.
Unsettling times. Tianjin should divert the attention of the Chinese people for awhile. Stay safe everyone because the US gov. may need it’s own distraction in the near future. Not a bad time to stay close to home and be close to family. Like Celente says “Currency wars,trade wars,world wars”.
Gold and silver prices strengthened last week as the U.S. Dollar Index slid modestly lower. A move by Chinese officials to significantly devalue the yuan sparked the action.
Investors perceive the maneuver by the Chinese as a major salvo in the ongoing currency wars worldwide. They now anticipate a counter-strike by the Federal Reserve.
Fed officials have been talking about tightening over the past year. Despite the devaluation of the yuan being implicitly dollar bullish short-term, it may force the Fed to respond in kind and reverse course on plans to raise interest rates this fall. Once again, central banks find it irresistible to devalue currencies to prop up asset prices – and find it extraordinarily difficult to stop.
Gold and silver may also be benefiting from concerns over the turmoil caused by the Chinese central bank’s surprise move.
Smaller Asian currencies with strong ties to the yuan were rocked, and investors worry about the potential for problems in those markets to worsen and spread elsewhere. Precious metals futures finally saw some safe-haven buying — something that metals markets have sorely missed.
U.S. stock markets are becoming increasingly volatile, and weakening economic data is having an impact. Markets are struggling to move higher with large 3-digit upswings one day erased by 3-digit losses the next.
The U.S. dollars in your savings and money market accounts are not well suited to provide a long-term store of value in these treacherous environs.
Certainly the dollar has strengthened mightily relative to other major world currencies over the past year, but you shouldn’t expect that trend to continue indefinitely. The U.S. may be losing the global currency race to the bottom at the moment, but no one should count Fed officials out!
Meanwhile, precious metal prices rest very near 5-year lows. Anyone looking for an opportunity to switch paper assets for physical metal should find the current set-up in markets very compelling.
I hate to disagree with Greg but China is planning on decoupling from the dollar in September no matter what the western banking cabal does. Connect the dots.
– They’ve built a banking system with AIIB
– They’ve built a Swift Exchange System that will go active in September.
– They’ve purchased trainloads of gold to back their currency with including securing the Chinese gold fix that goes active in September.
– They’ve expanded the Silk Road distribution network all the way to Egypt and signed a trade agreement to use the Suez Canal with Egypt.
and get this.
– They’ve devalued the Yuan in order to undermine the dollar as an exchange mechanism . Countries who were formerly paying higher exchange rates for trade, will be lining up, to pay less with the Yuan.
It is clear that they intend to make this transition in late September or the first of October. And when they do, the Fed won’t be able to print enough money to make up for the loses of bonds that will be dumped back in the market.
Americans need to climb down of their self righteous hubris and use whatever time we have left to prepare. Time is one thing we don’t have.
As I was saying.
Forget about the markets…..they’re rigged by the banks. Forget the MSM……….they help cover up the fact that they are rigged by the banks. Forget about the politicians …..they are bought and paid for by the bankers. Want proof? When was the last time a Banker any Banker went to jail for fraud?
You nailed it.
I totally agree!
Love your last paragraph;
“Americans need to climb down of their self righteous hubris and use whatever time we have left to prepare. Time is one thing we don’t have.”
Unfortunately I think there is not a snowballs chance in hell of this change in thinking happening any time soon.
Did you happen watch the republican presidential runners debate?
If your saw it…..well…. I rest my case!
When I watched this debacle, I couldn’t help but reflect on how very sad it is to witness what your once great country has degenerated into.
I will pinpoint the exact date when the US began to its decline into eventual and inevitable chaos…. it was December 23 1913… that’s right two days before Xmas 102 years ago!
The FF [just thought of a new acronym…Farcical Fed] has been operating for that long there is zero chance of any solution happening in the next few months.
Just my 2 cents worth.
I really feel the City of London Corp has been grooming China for this purpose for quite some time. They’ve had their hand in fortune cookie jar for centuries. They were the ones who hooked the Chinese on opium. Now gold.
Jerry, the last two lines are pure brilliance. CH
You are putting too much faith in Chinese markets.
Japan was written off several years ago in order to finance debt purchases. Not the yuan.
I’m not conjecturing. I’m simply telling you what I’ve heard from the people who were at the meetings when they decided to do it.
You don’t seem to fully grasp the magnitude of what is unfolding internationally.
You seem to have all the answers …. feel free expound! I doubt if you will because you haven’t in the past. Knee jerk sniping is all you seem to offer.
Every good source of information will be a target of infiltration. CLS painted (whoever-they-may-be) as taunting and teasing as some kind of super-source in the beginning; but now comes-on as a full reveal-er of all sincerity. Yeah, right.
The manner and method one begins with defines the source. One does not start one way and finish another. The old-fashion standard of consistency never changes. And if this is disagreeable with CLS: then they have only themselves to blame. CLS may be right as rain, in everything they say here: but I take it with a relatively larger grain of salt than most others. Until now, I thought I was alone on this point.
What needs to be grasped, is how it is you are not conjecturing. You are simply telling us that we need to trust that you in fact had heard from the people who were at the meetings when in fact they rendered their decision. I mean, what does this mean to me? Am I to believe you were part of the meetings, you had a fly on the wall perspective through surreptitious means, you have the confidence of members of such meetings?
Sis, what you are asking for is no small measure of the benefit of the doubt to be granted to you; and that such a large portion of trust be offered on what exactly? I really do not see any tangible evidence that what you have provided to us is anything more than an intrepid interpretation of the flotsam of data slowly drifting by all of our eyes…and yet you seem to imply some type of exclusive access to inside information.
Greg it appears that the economic war between China and the United States has gone HOT, if these reports are true.
Bill Holter ,may have been correct in his assessment last week that this was a U.S.response to the Chinese devaluing their currency. If this is true I would suspect that the Chinese will retaliate soon by pulling the plug on the dollar.
Your readers should take this warning serious, as we have now entered a new phase of global economic warfare.
Greg (and Greg),
‘They’re going to keep manipulating until they can’t.’ That works out to – ‘lying until they are caught.’ Yeah. The US basically forced everyone else to join a printing “race to the bottom” and preparations must be made now. And many countries will come out the other end of this inevitable crash better than others. The US will join ranks with the Third World; or Main Street will. What will be interesting is how the rest of the world will treat the American leaders at the Big Table to come.
Jerry see the light most don’t- Good job Jerry!
Thank you for the stellar reporting, you are truly a modern day Paul Revere. What Gregory is talking about is the apocalypse of Revelation 6 leading up to the Mark of the Beast (cashless society).
Do not take these things lightly scripture will be fulfilled.
Jesus’s first sermon was repent for the kingdom of Heaven is at hand.
Greg; Remember – Lindsey Williams was the first to say- China is the big one- Keep your eyes on China.” You say David Stockman has now said it- “Whoopi”, a little late to the party. Give credit where credit is due! Lindsey said it years ago when his elite friend told him this!
I too have been following Lindsey Williams. Yes, he did say China is the BIG one. He on one DVD and interview was talking about an article that David Stockman wrote say that this economy is “UNSUSTAINABLE.” This article was written 2013 or 14 cannot remember.
Went to LW website and on the left-hand side he has written something new. Someone commenting gave this web site. https://soundcloud.com/phoenix-rising-29/2015-05-07-dr-simon-atkins-with-amazing-predictions. Start about 10 minutes in and listen to Dr. Simon Atkins. He is talking about why the world is topsy turvey. He also mentions Jade Helm and the real reason it is going on. He is kind of heavy for someone who took Chem and Physics about 40 years ago, but check it out. I don’t think you will be disappointed.
Sorry Right-hand side on LW site.
I was a little disappointed at first because I was really looking forward to Hugo Salinas-Price. But I got over it quickly.
Question: A recent guest stated big Chinese importers like Walmart are no longer able to pay exclusively in dollars. Can someone tell me who said this? I can’t seem to find it and am not able to verify it either.
I am delighted to hear that Mr price will be back on WD.
IMHO his last interview was the absolutely outstanding. What I admired most was that he could clearly see the problems in our world financial situation and traced them back to very simple fundamental root causes. Unlike 99% of other commentators he actually suggested an initiative to get away from the fiat currencies that we all use. He was already working with different groups or perhaps even countries to develop and implement new currency models that could be PM based and would directly challenge the fiat status quo.
My question to you is this;
Please ask Mr Price to comment on the FED being 100% owned by a private banking cartel. Could you also ask him to explain how this model has a monumental global financial effect because of the reserve currency status of the USD.
He is in the habit of offering solutions not just criticism so I believe he will have some suggestions as to how this model could be dismantled and what it could be replaced with.
If he does not want you to ask these questions of him I will fully understand why. I know only too well that this is indeed very dangerous ground to venture onto.
Ps Greg you continue to do great work on WD
Greg. I searched youtube for other interviews with Mr. Price, and only found your interview from 3 months back. Was worth a reviewing.
Gregs, A 5% currency devaluation is meaningless.
I wrote this article 5 days ago and it was prophetic! Played out exactly like I said it would and a lot of money was made. Hope you got in on it! Greg.
Thanks Greg and Thank you Greg M.
Letter to The Federal reserve, bankers, government officials and that include the WH who are deliberately destroying America, there is a special place for you corrupt SOB’s in Dante’s Inferno. Indeed there are enough Vacancy’s for you guy’s.
My neighbor, a Decorated Marine, said he would like to try water boarding on the whole lot of you for an afternoon.
The John & Jane Does of America are being crucified for their beliefs in God ,Country and our way of life. We have a community organizer who does not give a Tinker’s dam about America and thru executive orders is dismantling the Republic. This is the part of the movie where John Wayne and 7th cavalry rides in and saves the country. So where are you?
My folks always told me to keep a little money on the side for that rainy day. Unfortunately, there have been to many rainy days sine the election of Obama and “We the People” don’t have anything left under the mattress. We’re broke.
I want to give Thanks to Both Greg’s for giving this patriot and the rest of the readers on USA watchdog and Traders-choice.net, information that is spot on .
However,we are still Americans and we still believe in helping out our neighbors. Many in our community grow gardens and give the food to the needy. We have clothing drives,we support good causes with the funds we can afford to give,we ring the bells for the Salvation Army at the holidays, and we fly our flags with honor and support our troops returning from the far to many wars that are leaders have gotten. us into to.
And we still look up to the Commander in Chief in the sky and give him thanks. So you throw what ever your going to throw at “We the People”,some how some way, we will still kick your As*es and we will make it!
Take care and be Prepared America,Remember what Fox Mulder says “Trust NO one”. See you Greg’s later! Southern Patriot
Thanks for the great interview..both of you Greg’s have something in common…compassion for your fellow man. I for one don’t think God will over look this. You both are doing your best to help us to understand. Greg M. on his web site list what he is doing whether it is puts or shorts. I for one cannot understand as finance is not my forte but both of you are looking out for all of us. I greatly appreciate both of you and pray God will reward you….It is not about making money..I get that…it is about helping your fellow man and to have enough to survive when the SHTF. Thanks for being what Americans are suppose to be, loving your neighbor as you would yourself. Keep you both in my prayers.
Went down to purchase some more PM and asked the guy if he was experiencing shortages. He said when the US mint quite selling the 2015 silver 1 ounce everyone of his customers was buying junk. He said junk was still the better buy. He sells if for $15.00 Silver Eagle $25.00. He did not have any 2015’s but had plenty of 2014’s. Will be back to buy more junk. He also had plenty of gold and suggested buying 1/10th of an ounce. You pay a little bit more of a premium but it is smaller. He was selling 1/10th for $136.00. He said when he buys it back he will pay the premium for the smaller size. I told him I had no intention of getting worthless $’s back for my gold.
I understand this country is in big trouble and that the government and banks are not our friends. But when Mr. Mannarino talks about commodities, I wish he would give a little more detail for those of us who don’t know the system so well. Is he talking about something other than gold and silver?
I enjoy all your guests. I’ve always enjoyed Gregory Mannarino. I recollect…all have a long term…..it will just be a bump in the road affair. I’m the canary in a coal mine…when the dollar collapses, society will explode. His inference, that the middle class will be wiped out…is correct. Just think how the poor will react when the well dries up.
You have been in contact with me at twice before, I have been studying the Fianancial part of human life now since 2007, and I have been heavily been investing with Commodities ( The PM side of it). Anyway, I just want as many people who have
their eyes opened by honest money studies that comes from the Austrian School of understanding money…. I just want to add another slant to this very sad picture of global financial sucide.
A Theological picture taken from the School of ‘ Self-Iterpretation’ which uses Scripture interpretating Scripture, which leaves out the human biased viewpoint of the many schools of theological interpretations! What I am going to do for you Greg, here is to pratice what I am saying:- “Daniel 11:43; says, the word ‘HE’ shall have power over Gold and Silver” This is a Global power structure just before the end of the present state of Global affairs, will control the money power of these precious metals, right up to the Second coming of Jesus Christ…Daniel 12:1, show that the Global curtain finally comes down! In fact from Daniel 11:40-45, all have the word ‘HE’, which is the same historical power in each of these verses to the end!
So I have shared with you and all those who eyes to see and ears to hear, just what is coming down the pike! The same narative is repeated in the last book of the sacred
cannon of Scripture, in Revelation 18.
This Chapter 18 is all about a ‘Global Collapse of the financial world structure, just compare both Daniel 11:43 along side Rev 18, and you will have the planned Divine Global Script what human beings are going to go through in a very short space of time that lays ahead. And sadly, there is not a power in the world, in any part of the world that stop this from happening, so Greg, and fans of USAWatchdog.com, we are to not only prepare financially, but most of all ‘Spiritually’ by heeding the inspired Words of Him, who sees the ‘End from the Beginning’. Amen!
Good job once again Greg, Enjoyed the whole interview. I have to agree with your guest, that all this was done on purpose. I believe the fiat currency system was designed to do so, with the derivative market, as a form of control. The bankers and corporation money that control our government, and that means to bring in the NWO, will do so against the will of the public and the UN agenda 21 will be implemented. It will take Christ coming to break the control they wheeled over the world. Its been in my spirit a long time now, as the Lord has reminded me several times now of what he revealed to me over 35 years ago. You and I will see Christ coming, if we’re alive in the near future. I have studied the shemitahs cycles, the years of jubilee, and all are pointing to 2016-2017, and even though it could go another shemitah cycle, the 6000 years from Adam is up. I look at the blood moons and say know, this has got to be it. Since there’s know more tetrads for 500 years from now. Joels prophecy concerning them, says the sign was to alert us that the Day of The Lord is at hand. So, like you say, know fear, the Lord will straighten everything out when he comes. Praise his holy Name. Farewell, good job
How much time could they buy if they forced a 30 precet investment in US treasures .This would be for all retirement accounts? State and federal pension plans as well as 401ks and any other type they could get their hands on. Just asking, as any bail in would cause major problems just like Greese !!!
Interviews are great. I would caution people to be very very careful about reading or listening to Martin Armstrong. I’ve studied his writings, and his linguistics indicate someone who cannot be trusted at all, and in fact, I’d go so far as to suggest he is writing intentionally on government behalf to mislead people while acting on their side. This is in response to the frequent references made to Mr. Armstrong here on this web-site and others. Whatever happened to him in prison, has likely stripped the man of his soul and his integrity. Its sad frankly, but again just be very very careful. The same can be said for a lot of these pundits out there. We are living in a time where there is possibly the least amount of trustworthiness that has embedded itself into the fabric of our global society. People are following so many false prophets, and there are so many of them, that its become mind boggling. Take care all, and may God Bless.
I have a friend who last year had to pay medical payments of $800 a month for him and his wife, with $6000.00 deductible and then only 80% to another level before insurance kicked all the way in. This year (Washington state) he only has to pay $200 for him and his wife with a $150 deductible. Apparently it’s based on income. You can get a subsidy from tax payers. These people have all kinds of assets, property, bank accounts you name it and just because they were not making a certain amount ,took a month off, they got themselves into an income that let tax payers step in, How can a system like that sustain itself. Oh and they got to make a deal with the bank that let them keep their house which they had not made a payment for in 4 years. And dropped the payment $1000 a month.
The Empire State Manufacturing index is a second-string economic report, not on par with the main “roster” of reports we get on GDP, employment, retail sales or inflation.
It’s kind of like preseason NFL football, actually. You normally don’t need to pay too much attention, because the scores don’t matter and many of the guys battling it out on the gridiron right now will be out of a job come Labor Day.
But every once in a while, something strange happens. You get a reading that’s so out of the ordinary … so shockingly bad … that you have to sit up and take notice. That’s precisely what we got yesterday.
Specifically, the Empire Fed index collapsed to NEGATIVE 14.9 in August from positive 3.9 in July. That was much, much worse than the average forecast of +4.5… the third drop in the last five months … and most importantly, the worst reading since April 2009.
Yes, April 2009. The tail end of the last recession. A month where the Dow Jones Industrial Average was going for around 8,000. It wasn’t just the headline number that stunk up the joint, either. Sub-indices that track new orders, shipments, inventories and employee workweeks all plunged into negative territory.
So basically, this number is so bad that it’s typically something you see only when the economy is shrinking.
So what’s going on? Well, let’s go through the challenges we’re facing one by one:
The energy sector is in the midst of a nasty pullback, with layoffs, bankruptcies and investment all plunging …
Several emerging-market currencies, stock markets and economies are collapsing, with some declining at their fastest rates in decades …
The dollar has been rallying for several quarters, and China is now devaluing its currency. That puts U.S. multinationals and manufacturers at a big disadvantage versus foreign competitors.
As a matter of fact, the Atlanta Federal Reserve publishes a “GDPNow” indicator that is updated frequently as new data comes in. Its latest estimate for GDP growth in the current quarter? A pathetic 0.7%. That would be a major slowdown from 2.3% in the second quarter — and far below the average “expert” prediction of economists, currently 2.6%.
In short, it’s not just one minor problem or threat the economy is up against. It’s several converging at one time. That’s why this Empire index reading is worth paying attention to. IF it’s a harbinger of what’s to come from bigger, more widely followed reports, the stock market could be in for even rougher sledding.
So what do you think? Is the Empire reading something to worry about? Or a tempest in a teapot? Do you think the problems overseas are going to wash up on our shores, and that will hurt the broad averages? Or will we remain relatively healthy even as the rest of the globe catches an economic cold?
Many of last week’s worries are still weighing heavily on investors. There’s definitely a higher level of concern about the stock market now than we’ve seen in some time, and in my opinion, for good reason.
T. said: “U.S. markets can only hold up so long – and will start crashing or at least declining in September, I think. There’s much skepticism, so there is an ability for markets to ‘climb the Wall of Worry.” But it’s not worried enough with the VIX around 13 – my read on it for now.”
Novice T. added: “I am buying some inverse 3X ETFs like SPXS, YANG, NUGT. Start collecting as insurance and take profit on some, if any, opportunity and keeping some for the major correction.
“At the beginning of the year, I had 75% invested in stocks. Now I have only 35%. With a six-year bull market, one has to know when to take profit and be ready for ‘bottom fishing’ when the market correction is a year or more old.”
Henry A. also said: “The foreign market deterioration was predictable. The Third World has been borrowing cheap U.S. dollars, doing the carry trade, for development. And now, they will be paying their debt with expensive U.S. dollars. Things will get much worse before they get better.”
Tom suggested there may be some opportunity out there, saying: “Let me be the contrarian here. While Mike and others are saying dump stocks, I say buy into high-quality stocks with not a lot of China exposure. Google (GOOGL) comes to mind. This is a great buying opportunity if you know the right stocks to look for.”
It’s always nice to hear differing opinions. But it should be clear, what Henry A., Novice T. are saying right now is where the smart money’s r moving, Tom’s got guts, that’s all I’ll say!
More and more global markets are outright crashing. Yet U.S. stock investors are just going along their merry way as if nothing’s happening. That kind of dichotomy is hard to maintain for long, and I’m very concerned our markets are doomed to play “catch down” soon. We shall see.
The emerging-market meltdown continued overnight, with EM currencies collectively suffering their worst declines since 2000. Turkey, Malaysia, and Brazil led the latest slump. So I will pose the question again: How can the U.S. remain an island of prosperity in a sea of market sickness?
How much pain and volatility is China’s economic slowdown causing? Quite a bit, as last week’s currency devaluation demonstrated. After all, the yuan move was meant as a form of economic stimulus.
The Wall Street Journal goes into more detail in this story from late yesterday, noting the wide range of U.S. corporations warning about China weakness and the impact on their earnings. It lists everyone from Weyerhaeuser (WY) to Cummins (CMI) to Juniper Networks (JNPR) as victims of the slowdown.
Greg, on Oct. 20th the SDR’s of the IMF will become the world reserve currency. All fiat currency will be under there management. Making them the federal reserve bank of the world. All this power, given by g20 nations, to a bunch of communist, socialist, and heaven knows what. A private group of individuals will control, as the last step to the NWO banking agenda complete control of all g20 nations monetary policy, and along with it global government under UN directives, and agenda 21 on steroids. Supposedly announced in Sept.. A cashless society will surface and finally the mark of the beast, forcefully imposed on the populist of all member states. There will be know need for our federal reserve bank any longer, since all monetary policy will be shifted to them. We have truly been handed lock, stock, and barrel over to the Orswell’s vision of the NWO by all of our leaders. The Illuminati dream is almost complete. The unbelieving world waits for its anti-Christ to appear. We truly are living in both exciting and treacherous times my friend. The time for people to come to Christ is running out fast, and the tribulation is near at hand. The dispensation of grace is almost over and those who have understood the gospel, and would not agree with God about there need for the savior, will be sent strong delusion, and be damned, because they recieved not the love of the truth, that they might be saved. 11Thess 2chap.. As always your da-man
I suggest to do a research on Agenda 21 and the new UN version 2030 Agenda, which is global and it will be announced on September when Pope Francis is in NY.
Could the FDIC Seize Bank Deposits During a Crisis?
One of the biggest problems for the Central Banks is actual physical cash.
The financial system is predominantly comprised of digital money. Actual physical Dollars bills and coins only amount to $1.36 trillion. This is only a little over 10% of the $10 trillion sitting in bank accounts. And it’s a tiny fraction of the $20 trillion in stocks, $38 trillion in bonds and $58 trillion in credit instruments floating around the system.
Suffice to say, if a significant percentage of people ever actually moved their money into physical cash, it could very quickly become a systemic problem.
Indeed, this is precisely what caused the 2008 meltdown, when nearly 24% of the assets in Money Market funds were liquidated in the course of four weeks. The ensuing liquidity crush nearly imploded the system.
Because of this, Central Banks and the regulators have declared a War on Cash in an effort to stop people trying to get their money out of the system.
One policy they are considering is to put a carry tax on physical cash meaning that your Dollar bills would gradually depreciate once they were taken out of the bank. Another idea is to do away with actual physical cash completely.
Perhaps the most concerning is the fact that should a “systemically important” financial entity go bust, any deposits above $250,000 located therein could be converted to equity… at which point if the company’s shares, your wealth evaporates.
Indeed, the FDIC published a paper proposing precisely this back in December 2012. Below are some excerpts worth your attention.
This paper focuses on the application of “top-down” resolution strategies that involve a single resolution authority applying its powers to the top of a financial group, that is, at the parent company level. The paper discusses how such a top-down strategy could be implemented for a U.S. or a U.K. financial group in a cross-border context…
These strategies have been designed to enable large and complex cross- border firms to be resolved without threatening financial stability and without putting public funds at risk…
An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company into equity. In the U.S., the new equity would become capital in one or more newly formed operating entities.
…Insured depositors themselves would remain unaffected. Uninsured deposits would be treated in line with other similarly ranked liabilities in the resolution process, with the expectation that they might be written down.
In other words… any liability at the bank is in danger of being written-down should the bank fail. And guess what? Deposits are considered liabilities according to US Banking Law. In this legal framework, depositors are creditors.
So… if a large bank fails in the US, your deposits at this bank would either be “written-down” (read: disappear) or converted into equity or stock shares in the company. And once they are converted to equity you are a shareholder not a depositor… so you are no longer insured by the FDIC.
So if the bank then fails (meaning its shares fall)… so does your deposit.
Let’s run through this.
Let’s say ABC bank fails in the US. ABC bank is too big for the FDIC to make hold. So…
1) The FDIC takes over the bank.
2) The bank’s managers are forced out.
3) The bank’s debts and liabilities are converted into equity or the bank’s stock. And yes, your deposits are considered a “liability” for the bank.
4) Whatever happens to the bank’s stock, affects your wealth. If the bank’s stock falls at this point because everyone has figured out the bank is in major trouble… your wealth falls too.
This is precisely what has happened in Spain during the 2012 banking crisis over there. And it is perfectly legal in the US courtesy of a clause in the Dodd-Frank bill.
This is just the start of a much larger strategy of declaring War on Cash. The goal is to stop people from being able to move their money into physical cash and to keep their wealth in the financial system at all costs.
Indeed, the Fed has more plans to incinerate your savings to force investors away from cash and into riskier assets, you can bank on it. Stay tuned and on the beam!
In the 2008 crisis, 24% of the assets in Money Market funds that were liquidated did not go into actual physical cash as you imply but went from corporate debt into mostly Treasuries.
Just to make it clear, insured depositors are protected under the current bail-in plans. Only uninsured deposits are at risk of being written down or converted into equity .
You’ve done a lot of research, thanks for the info. The system truly favors the banks at every point. Add to that, the ability to loan 10 dollars for every one they have on deposit. If we were favored like this, we’d all be quit well off.
All he did was copy it from Zerohedge.
Could this be another false crisis manufactured by the MEDIA?
The Chinese yuan dropped in value three straight days until Friday, finishing last week with a 3% loss. Beijing authorities tried to stabilize the situation by saying the currency didn’t have much reason to fall further. They also dismissed talk that Beijing was targeting a 10% devaluation, a figure that many Western economists argued is in store.
Are they right? Yeah, actually, you know, they might be. This time. For once.
U.S. and euro zone analysts are trying to figure out who will be worst hurt by the currency’s trip-and-fall, which looked originally like an opening salvo in a mercantilism-style currency war, a last ditch effort to reinvigorate China’s sputtering economy by spurring exports. But upon further review, a 3% to 5% deval is not going to help matters all that much. There might be something else going on.
David Rosenberg at Gluskin Sheff looked at China’s main exports and compared them to other countries focusing on the same things. He found China’s main exports are electric equipment, machinery, furniture, vehicles, clothing, medical/technical goods, plastics, and iron/steel products.
Germany had “the most vulnerability by far in this sense” according to Rosenberg, with the two countries competing in practically every export category. This was followed by Italy, France, and the Netherlands. India was vulnerable in clothing, as was Turkey. Mexico had exposure in furniture, machinery, cars, and electronic products. And Japan was vulnerable in cars, machines, and technical equipment. The United States — not so much.
To be sure, there are risks to the health of the global economy and markets if one considers the currency devaluation as a desperation play — a financial Hail Mary. Sarah Boumphrey at Euromonitor International finds that Asian economies near China are most at risk of economic weakness should a “hard landing” scenario play out in Hong Kong, Taiwan, and Vietnam.
Oxford Economics estimates that a 10% devaluation would have a “small positive effect on Chinese GDP, but is deflationary for other countries.” Long-term implications revolve mainly around the accumulation of dollar-denominated debts. These become more expensive, which is a drag.
According to Hans Redeker from Morgan Stanley, short-term dollar liabilities in China reached $1.3 trillion earlier this year — equal to nearly 10% of Chinese GDP. Historically, in his words, this level of foreign indebtedness in emerging markets has been a “perfect indicator of coming stress.” A repeat of the Asian financial crisis of the 1990s, if that’s where we’re headed, would hurt pretty much everyone. Duh, right?
But hold on. Not so fast. Rosenberg dismisses the comparison. He notes China’s currency was devalued a whopping 33% in 1994 — more than 10x what we’ve seen so far. And he doesn’t believe China has launched a currency war either.
Rosenberg buys the idea that the devaluation was merely a market reform effort, that the Chinese government is mindful of their dollar-denominated debts and realizes a deeper devaluation would trigger capital outflows and destabilize sensitive Chinese markets. The IMF and the United States have both ganged up on China in recent years and begged it to let the yuan float. This week’s activity could very well be a step in that direction. Like the old saw says, be careful what you pray for.
For now, I am taking the yuan out of my list of things to worry about.
Bottom line: For now it looks like fears over what China has done are overblown. And that’s probably at least one reason that stocks rallied back on Friday and could very well firm up the rest of this week.
Indeed, a growing body of analysts believe all of this is part of an effort to yet get the International Monetary Fund to include the yuan in the Special Drawing Rights currency basket. They also note that while the yuan “may fall further in coming days” the “bulk of the depreciation has already taken place.”
I guess we’ll see, but for now the yuan is on my list of things to yawn about.
Don Juan Armageddon
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Just wondering about what Gregory M said about a crash coming in China (obviously elsewhere too) so what was/is the point of the Chinese govt accumulating all that shiny?
Just to be clear, I’m more or less in agreement with the basic premise of what he said about the global debt bubble, just curious about the Chinese, Russian etc position on gold in relation to that.
Here is a video of the man who will take down Hiltlary. He was breaking this on Alex Jones yesterday. He talks about all the skeletons in their closets and he has documentation. He talks about the deaths of Vince Foster and some others. He lives here in Central Arkansas. I wonder how she will get out of this??? You were right she will not be president. What a comfort! Think I will have a glass of wine tonight to celebrate.
Sorry, I got so excited I forget to post the link https://www.youtube.com/user/TheAlexJonesChannel
The Bible foretells the events of the last days, “the end of today’s economic systems.”
“All these things are a sign of the times. They are conditions that were foretold to be a part of the “last days” of the present system of things. And included in the foretold conditions is that people would be “lovers of themselves, lovers of money, . . . Without self-control, . . . Lovers of pleasures rather than lovers of God.” All these things are part of today’s political, economic, social and religious systems.—2 Tim. 3:1-5.
Hence, today’s money instability and hard economic times for so many are part of the evidence that this system of things is rushing toward its finish, as Jesus himself foretold. (Matt. 24:3-14) Any patchwork improvements to try to keep today’s economic systems going will be very short-lived. No repair can undo the selfishness, greed and injustice that are built into them.”
Jesus himself spoke of these things. Heed Jesus’s words.
Vladimir Putin auditions for role as James Bond villain Whether he’s hunting shirtless, playing ice hockey or tooling around in a mini-submarine, Russian boss Vladimir Putin looks as if he’s auditioning for the role of a Bond film villain. Today August 18th 2015
My prediction is – nothing will happen, because all around us is complete wall of bullshit and when the wall of bullshit falls nothing happens. Let me break it down further – every person alive in every position is full of shit. For every half truth there is 10 paid shills to say otherwise. SOOOOOOOOOOO nothing around us, in the news, papers, internet, peoples heads is real, we are surrounded and we float on a cloud of make belief utter nonsense. So for anyone to try to make sense out of anything is a complete waste of time. Everything is being orchestrated by everyone to keep everyone constantly guessing and anxious.
Gregory is one of the real traders and mavens of the market on this site.
Having that said, to say , “I was the only analyst , IN THE WORLD”, Is really unacceptable dear Greg and Greg(:- ).
Before I show the one that has not only predicted, but put out a PUBLIC sell order at 18085 and just collected huge profits of 1400 points, I must say, Yes, Gregory is a real deal.
Now, here. https://www.facebook.com/boris.chikvashvili
See July 27 sell!!!
and Purchase back
See August 21!!!
Can it get any better?, I doubt , but I refrained calling myself “only analyst In the world ” etc.
Still Dear Greg, Gregory is only real deal on this site.
Does he have all things right. Perhaps not, but not too many do.
Welcome, Greg is pleasure to hear.
But he has the competition(:-
“They cannot be this stupid”. It does boggle the mind. How can a bunch of Ph.D. economist dream up such economic foolishness by accident?. Every time I hear a Fed official speak, I circle the wagons tighter. I know all this will end badly… but what does “end badly” look like? Great interview Greg… and thank you!