Secure the Next Global Financial Crisis – with GOLD

When the first blue skies appear after a hurricane, it’s always a false sign of hope.  The clear skies are only due to the passing eye of the storm. These clear skies and are soon followed by the backside of the hurricane. The destruction it brings is even more disastrous than already faced.

The same goes for an economic crisis. It wreaks havoc in our lives and then the storm seems to calm. Everyone gets a chance to rant about how bad it was. The government officials and politicians all take a sigh of relief. Just when everybody thinks the worst has passed, the demons of an imprudent fiscal and monetary policy strike back. The same happened in the 1929 financial crisis. The same will occur in the future.

Seven years after the current financial crisis, these clear skies have emerged over America. Behind them lies another wave of financial crisis which will be even more destructive than the last ones.

Both the Bank of International Settlements (BIS) and the International Monetary Fund (IMF) are worrying over this. These agencies have released reports last week over how Western economies, led by America, are not ready to face such financial storms.

These reports clearly indicate that paper money has lost its value. It’s time to load up on real assets that give oneself the power to fight these storms. The best of these are Gold and silver

The Global Financial Crisis and its deadly traits

We have not seen the last of this global financial crisis. The blue skies we see today are just another illusion. The improving job market, the healthy GDP reports, a strong dollar and Wall Street reaching new heights are in fact signs of another coming crisis, not the opposite.

The economy hasn’t truly improved. We have not allowed it to improve.

Our leaders, politicians and monetary officials have failed miserably in eradicating the root causes of such crises. They still follow the same monetary policies and help make bubbles in the economy. We have just given CPR to the economy and think that it will live again. Our debts have ballooned and the government is at a loss fighting the current atrocious crisis.

While we have Mr. Dodd-Frank(enstein) devising methods to please politicians and government officials, their solutions are mere Band-Aids to the current economic conditions.

Nothing has changed really since the last financial crisis.

Banks are still making fools out of everybody. TOO-BIG-TO-FAIL banks are getting even bigger. They helped crush the economy before and will assist in doing the same today. TOO-BIG-TO-FAIL is itself a big problem. Thier onerous regulations have demoralized newer participants in the banking industry.

Debt still climbs new heights. In fact it has increased by 83% since the end of 2008.

While the media propaganda proposes that the economy is in good health and the politicians support these claims, we suffer low paying jobs and are quickly losing high paying jobs in the many sectors. The stock market is getting ready for another crash after its paper-asset bubble will reach its limit.

The Feds have run out of strategies to fight this new war; whether its inflation, a currency crisis, a debt crisis, a crashing stock market or an imploding bond bubble.

The BIS, a central bank to the world’s central banks, announced that the next financial crisis will be very disastrous, as the world has run out of options when it comes to handling these crisis’. Interest rates have been so low for so long that the economy now faces an anemia due to this. It no longer serves as the solution to our economic problems. All this coupled with increasing debt and financial risks put the stakes to high for the Western economies.

The BIS concludes:

The unthinkable risks becoming routine and being perceived as the new normal; Central banks have mismanaged the global financial crisis to a large extent because they don’t understand the crisis very well. They’re effectively trying to cure a drug addict by pumping his system full of speed, and failing to realize the new drug is doing just as much damage, if not more.”

The people at IMF are so desperate that they are literally begging the Feds not to raise interest rates any time soon. They can clearly see major vulnerabilities across the financial landscape that can cause too much damage.

The IMF concludes by speaking about big banks:

“They dominate the system even more than before. Leverage has ramped up in the non-banking financial sector, and insurers have taken on more risk and could be faced with negative equity in a downside scenario.”

The blue skies will soon disappear. The clouds will come again and winds will roar ashore. This time around, the Feds will be in a much weaker position to handle the crisis.

A Safe Haven

The solution to this is simple. Take your money of the gamble.

Portfolios have increased nicely in recent years. Save your portfolio from the coming crisis by divesting some of your portfolio.

You don’t have to sell off everything in your portfolio. Just enough to keep your heart rate stable in a financial crisis.

You can even use this money to add real assets to your portfolio. Gold and Silver are very good investments. When the folly of paper assets becomes evident, Gold bullion will be an insurance policy for your portfolio once the crisis reigns.

The risks are too high today to waste your wealth on the sugary hype of Wall Street.

Stay sovereign, stay in control and own gold.