Financial writer and precious metals expert Craig Hemke says nobody should be comfortable with unpayable global debt that has piled up since the 2008 financial meltdown. A debt reset is locked in, but nobody knows when it will come crashing down. Hemke says, “That’s probably the right way to put it. I would not want to say, hey, there is going to be a debt reset by August 29th. I don’t think that’s the way you want to go with it, but it’s pretty obvious to anyone that we are in this parabolic Ponzi scheme. The debt is now increasing globally at such an exponential rate that, at some point, it becomes unserviceable. Then, at that point, you get this reset they’ve been talking about.”
Hemke points out the same game that was being played to inspire confidence in the banking system back before the 2008 financial meltdown is happening again. Hemke says, “You can see this today, actually, in the attempt to inspire confidence in Deutsche Bank. You can pull up a chart of Deutsche Bank now, and you can clearly see the heavy hand and the overt support of the Deutsche Bank share price. It is about $11. That is about the all-time low it came down to a few weeks ago. In the last few days, it has been clearly supported at $11. . . . Why would central banks be supporting Deutsche Bank? Because if Deutsche Bank began spiraling down through $10 to $9 to $8, you would get this crisis of confidence from the other banks that are all linked to Deutsche Bank and this daisy chain of counter-party risk, and we are right back to where we were in 2008. Yes, some type of reset is coming because, ultimately, the debt is unserviceable. The debt grows so fast you cannot print enough money to service all your existing obligations, especially when the economy starts to collapse and you get another recession.”
Hemke warns that many people own the same ounce of gold held at big banks and don’t know it. Hemke explains, “It’s sort of like the people who show up at the Bailey Building and Loan on George’s wedding day (It’s a Wonderful Life). As long as nobody is making a run for it, and everybody knows your money is invested in Bob’s house and your money is invested in Mary’s house, as long as nobody wants their money right away, George Bailey can run a fractional reserve system like that. It’s only when somebody shows up and says I want my 1,000 ounces of gold, now. I want my metric ton, now. That’s when this whole bullion bank system collapses. Suddenly, we get a realization where land trades directly, dollars for the asset. Art trades directly, dollars for the asset. Gold and silver are going to trade that way as well.”
On the dollar, Hemke says, “I think the dollar eventually goes back down from political risk from the mid-term election, geo-political risk, de-dollarization risk and trade war risk being a part of it too. The dollar resumes its move downward, and the metals begin to rally with increasing momentum.”
In closing, Hemke says, “If there is one thing that the average person can do for financial protection that is the acquisition of physical metal. . . . If you want to get into what has been sound money for thousands of years, you would be crazy not to take this discounted price . . . you’d be crazy not to put some of your dollars into physical metal. That’s what the Chinese are doing. That’s what the Russians are doing, and if these nations are converting some of their dollars into physical metal, don’t you think you should do the same?”
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.