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The Credit Crash

Here’s How To Protect Your Savings

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The Market Crash Is Coming.  Be Prepared for Biggest Gold Rush In History!

 

Are You Prepared For The Imminent Collapse Of The US Dollar? Here’s How To Protect Your Savings

The US-dollar is heading for the biggest market collapse in history. Debt levels in major economies are higher than any pre-crisis levels in the past and the debt overhang threatens to weigh down long-term growth.

The impending credit crash will cause an Almighty Depression? If you are not ready, expect to lose a large portion of your savings.

Global debt hit an all-time high of US$233 trillion in the third quarter of 2017 — $16trillion more than the previous. In the first quarter of 2018, US national debt alone looms large at $21.1 trillion. Not only that, but the amount of interest payable on the national debt is $6,027 a second.

US national debt is now bigger than the country’s gross domestic product. Net interest payments on the debt for the fiscal year 2018 are estimated at a total of $310 billion.

And it gets worse.

 

Falling money

 

Public debt is $15.3 trillion. This figure represents money that is owed to individuals, businesses and foreign central banks. What this means is that US citizens own the larger portion of US debt.

When you break that down, every person registered to live in the United States is $65,121 in debt. The average household in America owes $168,663.

And when the banks collapse, they will take the money from your bank account.

Yes, you did read that right! Have you heard of the “bail-in” laws?

How banks will bail themselves out of debt

The credit crash will inevitably bankrupt every lending bank in the country. And because banks lend money they don’t have, your bank will be riddled with debt. But “banks are to big to fail.”

In 2010, the US Senate passed a bill that signaled the biggest financial reform since the 1930’s. Known as the Dodd-Frank Reform Act, the legislation gives banks the right to liquidate debts owed to creditors in order to stay afloat.

What this means in that the US Government has the power to allow banks to pass the burden of liability on to shareholders and creditors rather than taxpayers.

The so-called “bail-in” laws are an alternative solution to the bank bail-outs in Cyprus and Italy after the 2008 banking crisis. In that situation, bank debts were paid by the respective Governments using taxpayers money.

American debt crisis

 

Financial regulators deemed it was unfair for tax payers with no stake in the business to pay off debts they have no involvement with. In the event of a credit crash, the alternative options are for a systematic collapse of the banking system or force stakeholders to bear the burden of the debt and repay the loans.

In the current financial system, banks offer loans to creditors using the money of unsecured creditors; that includes anybody that deposits money into a bank account, or has purchased bonds and hybrid securities. In other words, you. The cash you deposit in your bank account is used by your bank as loans. When people start to default on their loans — and trigger the credit crash — banks will confiscate your money and ask you to right it off to pay off the debt your bank owes.

The only way to protect your savings is to remove it from the bank and invest in physical commodities like gold.

The false economy

On the surface, the US equity markets and the S&P 500 look to be in a healthy condition. The tech-heavy NASDAQ is naturally thriving thanks to the digital revolution. Stock valuations have hit historical highs.

But astute investors know these charts are misleading. The market is ready for a correction. And the correction will be brutal!

History shows that this level of economic growth and heightened profit margins signal an impending crash. Financial charts are reminiscent of the 2000 dot-com crash and 2007 housing collapse that sparked the 2008 banking crisis. The impending credit crash will be the greatest financial catastrophe ever.

Financial strategists like to boast we are nearing the longest bull run in history. The Dow Jones has more than quadrupled in the last nine years. Central banks will take the credit for that by keeping interest rates low, printing money and bloating asset prices. However, the Federal Reserve also leveraged debt and have raised the debt ceiling twice during in the last seven years.

 

iStock-471147377

 

Since 2008, wage inflation has been absent and consumer prices have stagnated. During the same period financial asset pricing has boomed. Early investors have been making all the money. Subsequently, the markets have created a significant imbalance of income and wealth.

The warning signs are there, but central banks are ignoring them. Equities, bonds and credit are not usually simultaneously strong. The shocking reality is that the last time they were was the Roaring Twenties. And we all know what happened then.

The next market crash will eclipse the Great Depression of 1930’s and the 2008 Banking Crisis put together!

The Great Gold Rush

Historical records show that gold always performs well in a financial crisis. Investors systematically buy gold to hedge against inflation and the loss of dollar-backed assets.

Let’s take a look at recent history. When the US dollar lost value between 2002 and 2007 following the introduction of the Euro, gold prices went from $347.20 to $833.75 an ounce. After the 2008 eurozone crisis gold prices rocketed to a record-high of $1,895 in 2011.

That’s $1,062 in five years. An ounce.

Other significant events have also seen investors panic buying gold. Investors concerned about the fragile state of the US economy after Obamacare, the Dodd-Frank Reforms and Trump’s 2017 inflation fail all turned towards gold.

At the time of writing, gold prices are holding firm at $1,340. However, when the credit crash hits, prices are expected to exceed $2,000.

In 2009, there was a 24% rise in gold prices. When retailers were spooked after the Dow Jones fell 200 points in 2016, gold prices shot up by $200 in a matter of weeks.

The credit crash will spook more than retailers. We have already seen what takes place in the gold market when people get nervous about the economy and how investors react in times of economic crises. They buy gold.

According to the World Gold Council the demand for gold as an investment in the 2016 flurry was only 1,587 mt. During times of economic crisis, gold investment surges to 3,000 or 4,000mt.

Precious metals are recognized as a safe haven investment because gold is priced in US dollars. This means that when the value of the dollar rises the cost of gold falls and vice-versa. When the global economy collapses the US-dollar will fall dramatically whilst the price of gold will rise sharply.

However, you can’t just buy any gold, you need to buy physical gold.

 

Burnt Dollar

Buy physical gold now before its too late

There are several ways to buy gold; gold bullion coins, bars and rounds or Gold ETF’s (exchange-traded fund). Gold bullion is physical gold you can hold in your hand. You can either store these products in your home, or in a high-security gold storage facility.

ETF’s on the other hand are derivative contracts that track and reflect the price of gold. They are passive funds that are digitally created and gain exposure in relation to the performance of gold. You do not actually own any gold.

Although ETF’s are sold under the assumption of being backed by gold, the contracts have never been tested during an economic downturn. It is feasible that the $4 trillion worth of derivatives purchased with fiat currencies will vanish from the digitally created records to pay for the debt accrued by banks that sold the ETF’s.

If there is no gold in an ETF, there is no money.

The only safe way to invest in precious metals is to buy physical gold. And there is only a limited supply of gold available. Don’t wait until the credit crash to buy physical gold because there won’t be any left. And you can’t trust ETF’s.

PROTECTYOUR FUTURE


ADD PHYSICAL GOLD & SILVER TO YOUR IRA TODAY

 

 

Gold storage

Capital Gold Group not only make it easy for you to invest in physical gold. We also arrange delivery of gold bullion to your home so you can keep your investment safe.

If you want peace of mind and purchasing power to get you through the Almighty Depression, get in touch today with Capital Gold Group today.

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SIGN UP AND GET A FREE GUIDEon best pratices in gold investing by Jonathan Rose




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