Today’s Market Move Signals Collapse
I wanted to briefly describe my horror at waking up today to a massive short squeeze in global capital markets caused directly by an all-or-nothing coordinated effort by central banks around the world to ease credit conditions for insolvent financial institutions. Make careful note, that yesterday’s downgrade of a handful of major U.S. banks (Too-Big-to-Fails) by Standard & Poor was not a coincidence nor was the unprecedented intervention and timing to flood the ECB and teetering credit markets with freshly printed soon to be worthless debt. As investors digest the consequences of today’s recklessness this is what I think they will conclude:
As much as I hate to throw the term around because believe me I realize its gravity, this in my opinion will be the ultimate consequence of the reckless monetary policy being implemented by our global leadership. Today’s all-or-nothing effort to lower borrowing costs is significant in that it shows that global governments have officially begun to hit the panic button. China also lowered its bank reserve requirements today by 50bps which is important because they have historically been raising reserve requirements the past few years to fight inflation but have now hit the brakes suddenly. Why?
The fact that global central banks have already started new aggressive easing measures when they haven’t even had a chance to remotely tighten only proves how precarious the global debt crisis really is. We are on the verge of collapse and in my opinion it could literally be days before a systemic shock rocks the globe.
The U.S. central bank also has begun to set criteria for stress tests in early 2012 assuming a 50% crash in the stock market (that would bring the DJIA to roughly 6,000) and a 21% slump in an already exceedingly bloody real estate market that earlier this year officially eclipsed the peak-to-trough declines of the 1930′s Great Depression (By the way…we predicted this over a year and a half ago when most of Wall Street and the MSM laughed at us).
Gold & Silver to Skyrocket
Buy gold and silver! I view today’s market activity as an indicator that when investors finally wake-up to the inevitability of the near term collapse of the Euro and the violent disintegration of the Eurozone, investors once again will flock to physical bullion. No need for further explanation here, we have spoken about this in length and in great detail for almost two years now and in my opinion this provides an excellent entry point for even first-time buyers. Bottom line…If you haven’t already, look at today’s prices as an entry point.
Dark times are ahead of us my friends and if you thought 2008 was bad, wait until you see what’s coming down the pike. Here’s my advice…Don’t be a victim. Instead, be prepared. If you haven’t already, make sure to sign-up for our FREE newsletter The Wave Report for Breaking News & Updates as well as Exclusive Research and Investment Guides for GreeneWave subscribers.
Hard-hitting and in your face America,