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Major Bank Official: Banks Are “Preparing for an Economic Nuclear Winter”

nuclear winter-compressed

By Matt Agorist | Activist Post

After years of giveaways to megabanks, marketed to the taxpayers as ‘quantitative easing,’ the crutches shoved under the banker-controlled global stock trade are about to snap. Bankers now say they are preparing for the collapse.

In June of 2015, former Congressman Ron Paul predicted that these crutches would fail, and the financial bubbles created by them would send the stock market into a free-fall.

The consequences will not be minor. Surprises will be many, since we are in uncertain waters and the world has never faced the gross misallocation of capital that exists today. The process is self-limiting. It will come to an end, and it’s not going to be far into the future.

Now, as chaos in the EU and weak corporate earnings create a tornado of uncertainty, banks are preparing for the worst.

According to CNBC quoting a major lender, banks are “preparing for an economic nuclear winter situation.”

The chaos in the market has major bank officials running for the hills. According to CNBC, European banks, in particular, have had a very tough six months as the shock and volatility around Brexit sent banking stocks south. Major European banks like Deutsche Bank and Credit Suisse saw their shares in free-fall after the referendum’s results were announced. In the U.K., RBS was the worst-hit, with its shares plunging by more than 30 percent since June 24.

On Sunday, a source, speaking on the condition of anonymity, due to the fact that revealing this informationcan get bankers killed, a source from a major investment bank told CNBC “that financial services firms have put together a strategy in place that takes into account the worst-case scenario that could happen by the end of this year.”

“This could mean triggering Article 50, referendum in other European nations leading to a break-up of the euro or sterling hitting below $1.20 or lower. The banks are ready for anything now,” the source said.

This grim warning comes after the Royal Bank of Scotland has warned its investors of a “cataclysmic year.” In an eerily ominous note to its clients early this year, the megabank predicted another worse case scenario.

Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small.

In the note, RBS’s credit chief Andrew Roberts told investors how Quantitative Easing has failed and was expected to fail.

We have been told for 7 years now since the credit crunch, under QE, to borrow money and invest it in one of 3 things: 1) EM 2) credit 3) global equities. This is a big picture, multi-year bet that has been taken, which has worked fine, and stopped working 10 months ago, (this is NOT NEW).

As the Guardian’s Larry Elliott points out:

Markets have been supported for some time by low-interest rates, stimulus measures from central banks including quantitative easing, and hopes of economic recovery. But with the Federal Reserve raising rates and the Bank of England expected to follow suit, that prop is being removed.

Those who pay attention to the effects of central bankers looting their respective countries have long pointed out the mathematical certainty that is an economic collapse.

The collapse of global markets is inevitable as it is a natural correction to the wholesale fleecing of the citizens through the unscrupulous actions of central banks.

Ron Paul sums up the situation perfectly:

The credit and new money, when created by a central bank, is delivered to the market in a political fashion for which the one percent receive special benefits. It allows the pyramiding of debt to fractional reserve banking, which compounds the long-term problems.

It may be fun while it lasts, but it always ends with a crash.

Matt Agorist is the co-founder of TheFreeThoughtProject.com, where this article first appeared. He is an honorably discharged veteran of the USMC and former intelligence operator directly tasked by the NSA. This prior experience gives him unique insight into the world of government corruption and the American police state. Agorist has been an independent journalist for over a decade and has been featured on mainstream networks around the world.

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These 7 Things Are Better Than Paper Money in the Bank When the Economy Collapses

economic-preparation

Source: Activist Post

So you’ve done the hard work of getting your finances in order and now you’re looking to invest your hard-earned surplus into things that will protect or grow it.

Keeping your savings as fiat currency in the the banks may not be the safest way to store your wealth. Banks are beginning to give concrete evidence of actually penalizing you for keeping your money with them … and that’s if they don’t outright confiscate it via bank bail-in.

It would be prudent to look at investments that offer the dual purpose of getting around the banking system, while also offering ways to stockpile the tangible items that should fare much better in any economic collapse situation.

Here are seven investments that will hold value far better than cash if the current trends continue.

1) Food

We are beginning to see in real-real time what a collapse in the food supply could mean. One look at Venezuela should prove that even though most people believe “it could never happen here” or even that they have enough money to get what they need no matter what, this is not the case.  Even the supposedly wealthy in Venezuela are waiting in long lines with everyone else.

While things are still relatively stable, it makes sense to build a food stockpile slowly but surely. You can  pick up a few key food items each week at the supermarket to build up your food bank without having to spend thousands in bulk food acquisitions. It’s best to keep your storable food bank list simple and concentrate on common foods that you already consume regularly. We wrote an article geared toward foods that have long shelf lives but are also practical for most diets, so please read “10 Best Survival Foods At Your Local Supermarket.”

Become a smarter shopper. “A penny saved is a penny earned,” wrote Poor Richard (aka Ben Franklin). Check out these “10 Hacks to Save Money at the Grocery Store.” You can also utilize tools likeVoucherBin to find hidden savings that you didn’t know existed.

2) Precious Metals

If you are fortunate enough to have several thousand dollars in savings above your emergency reserves of a few months of expenses, you may want to consider turning those devaluing dollars into physical metals to keep in your possession. Again, during times of economic uncertainty, it’s best to keep your wealth where you can directly control it – as local as possible.

There are three practical metals to consider.

As fiat currency wars rage on between central banks, silver and gold will likely hold their value or even increase in value relative to paper currencies. If things go apocalyptic, gold and silver may become money again.

For Americans, ammunition will also be extremely valuable, possibly even as a currency as well if the economic collapse gets ugly. The cost (value) of ammunition has skyrocketed, especially as furthergovernmental restrictions loom.

Gold and silver have also gone up in value over the years, especially in foreign countries whose currencies are unstable. Yet, at the time of this writing in early 2016, silver and gold remain way undervalued particularly when priced in US Dollars.

To summarize, it’s probably a good idea to convert some of your extra cash into gold, silver or lead (ammunition). These metals will likely hold their value better than fiat money and they’re easily tradable with your immediate neighbors or someone thousands of miles away.

3) Land

As soon as you can afford to do so, move out of your apartment and find a home with a little more land. If you’re in a place of abundance, buying productive land will be significantly more valuable than most paper assets when the economic reset hits. Putting a fence and cattle on that land makes it even more valuable. Ultimately, it’s even better to be able to produce your own food than to stockpile it in bulk.  Even a small piece of land will be worth its monetary investment as it will pay you much larger dividends year over year than cash at the bank ever could. Look what this family produced with just 1/10th of an acre!

4) Off-grid Power

One of the best investments you can make is to produce your own electricity with solar panels or wind mills, or a combination of both. Having a grid-tied system is better than nothing, but having a battery bank is where the true value is.

In fact, it may be wise to start by investing in a battery bank first, charge them at night when grid rates are much cheaper, and then use that power during the day. The batteries will pay for themselves quickly and you can add solar panels as you can afford them.

5) Water Purification

Do not depend on one water source. At the very least have agood water filter that can clean water brought in from untrusted sources. Some of us happen to think thatmunicipalities are untrusted sources (ahem, fluoride and chlorine).

If you’re not lucky enough to live in a rural area near rivers and lakes, you can get a good-sized rainwater collection system for less than $1500. Also, you can get a few dehumidifiers which can pull gallons of water out the air in areas with over 30% humidity.

6) Hand Tools

You’ll want to accumulate basic survival tools like weapons, garden tools, food preservation supplies, and any tools and supplies that you need to sustain your specialty skills for at least a year. Making the commitment to acquiring these items also tends to renew your interest in improving the necessary skills that will ensure you become as independent as possible no matter how long term a future emergency is.

7) Bitcoin

True, this one might not be considered a tangible asset, but its usability without incurring the massive fees of traditional banking makes it a worthwhile hedge at the very least. Barring an EMP/CME attack or a meteor strike that would take out the Internet, Bitcoin very well could also become a de factointernational reserve currency. It’s simply better money, and efficiency will always win. In the meantime, why not learn how to use Bitcoin as a means of protecting your privacy, opting out of traditional banking, and using it to pay for those tangible items mentioned above? We want our readers to be on the winning side of the coming collapse; adopting Bitcoin now means you’ll have an alternative already in place. Get started with Bitcoin HERE.

These are some of the key ways that we at Activist Post have taken charge and have become more independent in our own lives. We expand upon the other methods that can help you thrive during what is shaping up to be a very turbulent 2016 in our free 21-page report for email subscribers. This report focuses on the full range of strategies to achieve self-sufficiency and sound financial and physical health.

Watch a video overview of this FREE Special Report presented by Derrick Broze.

https://www.youtube.com/watch?v=xWWygwfyy3g

What other steps are you taking to guard against economic collapse? Please feel free to share your preparations in the comment section.

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21 New Numbers That Show That the Global Economy Is Absolutely Imploding

Global-Money

By Michael Snyder | Activist Post

After a series of stunning declines through the month of January and the first half of February, global financial markets seem to have found a patch of relative stability at least for the moment.  But that does not mean that the crisis is over.  On the contrary, all of the hard economic numbers that are coming in from around the world tell us that the global economy is coming apart at the seams.  This is especially true when you look at global trade numbers.  The amount of stuff that is being bought, sold and shipped around the planet is falling precipitously.  So don’t be fooled if stocks go up one day or down the next.  The truth is that we are in the early chapters of a brand new economic meltdown, and I believe that all of the signs indicate that it will continue to get worse in the months ahead.  The following are 21 new numbers that show that the global economy is absolutely imploding…

Related Article: All Hell is Breaking Loose in The Global Markets

#1 Chinese exports fell by 11.2 percent year over year in January.

#2 Chinese imports were even worse in January.  On a year over year basis, they declined a whopping18.8 percent.

#3 It may be hard to believe, but Chinese imports have now plunged for 15 months in a row.

#4 In India, exports were down 13.6 percent on a year over year basis in January.

#5 In Japan, exports declined 8 percent in December on a year over year basis, while imports plummeted 18 percent.

#6 For the sixth time in six years, Japanese GDP growth has gone negative.

#7 In the United States, exports were down 7 percent on a year over year basis in December.

#8 U.S. factory orders have fallen for 14 months in a row.

#9 The Restaurant Performance Index in the United States has dropped to the lowest level that we have seen since 2008.

#10 This month the Baltic Dry Index fell below 300 for the first time ever.

#11 It is now cheaper to rent a 1,100 foot merchant vessel than it is to rent a Ferrari.

#12 Orders for Class 8 trucks in the United States dropped by 48 percent on a year over year basis in January.

 #13 Due to a lack of demand for trucks, Daimler just laid off 1,250 U.S. workers.

#14 Even though Saudi Arabia and Russia have agreed to freeze oil production at current levels, the price of U.S. oil has still fallen below 30 dollars a barrel. For more about Saudi Arabia, check out the “Saudi Arabia Economy

#15 It is being reported that 35 percent of all oil and gas companies around the world are at risk of falling into bankruptcy.

#16 According to CNN, 67 oil and gas companies in the United States filed for bankruptcy during 2015.

#17 The number of job cuts in the United States skyrocketed 218 percent during the month of January according to Challenger, Gray & Christmas.

#18 All over America, retail stores are shutting down at a stunning pace.  The following list of store closures comes from one of my previous articles

#19 The price of gold is enjoying its best quarterly performance in 30 years.

#20 Global stocks have fallen into bear market territory, which means that about one-fifth of all global stock market wealth has already been wiped out.

#21 Unfortunately for global central banks, they have pretty much run out of ammunition.  Since March 2008, central banks have cut interest rates 637 times and they have purchased a staggering 12.3 trillion dollars worth of assets.  There is not much more that they can do, and now the next great crisis is upon us.

Without any outside influences, the global economy and the global financial system will continue to rapidly fall apart.

But if we do have a major “black swan event” take place, that could cause the bottom to fall out at any moment.

In particular, I am deeply concerned about the possibility that World War III could be sparked in the Middle East.  In an article that I published earlier today entitled “Turkey Is Asking The United States To Take Part In A Ground Invasion Of Syria“, I included a quote from Turkish Foreign Minister Mevlut Cavusoglu that reveals just how eager Turkey and Saudi Arabia are for war to begin…

Related Article: Here’s Proof That the U.S. Government Wanted ISIS To Emerge In Syria

Some countries like us, Saudi Arabia and some other Western European countries have said that a ground operation is necessary,” Turkish Foreign Minister Mevlut Cavusoglu told Reuters in an interview.

However, this kind of action could not be left to regional powers alone. “To expect this only from Saudi Arabia, Turkey and Qatar is neither right nor realistic. If such an operation is to take place, it has to be carried out jointly, like the (coalition) air strikes,” he said.

The Turks and the Saudis very much want the United States to take a leading role in any ground invasion of Syria, but the Obama administration is not likely to do that.

So we shall see if the Turks and the Saudis are willing to go ahead without us.  Let us hope that they do not decide to invade Syria, because that could start the biggest war in the Middle East that any of us have ever seen.

Unfortunately, Turkey is already attacking.

Turkey has been shelling Kurdish and Syrian military positions in northern Syria for four days in a row even though the Obama administration has been urging them to stop.

The first month and a half of 2016 has already been quite chaotic, and the stage is set for global events to greatly accelerate during the months ahead.

Sadly, the mainstream media in the United States is largely ignoring the preparations for a ground invasion of Syria, and they keep telling us that the global economy is going to be just fine, so most ordinary Americans are going to be absolutely blindsided by what is about to happen.

Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dreamand Economic Collapse Blog. Follow him on Twitter here.

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