On The Verge Of Systemic Collapse?

I think we are fairly close to a systemic breakdown and if that occurs, the price changes in all asset classes are going to be extreme. Gold and silver bullion and their respective equities are arguably the cheapest assets on the planet today and remain historic safe havens even if most of the morons in our society fail to realize that fact at the present time. I have always found that buying undervalued, under-owned and, most assuredly, under-loved quality assets to have been a sound strategy. The fact that we are at historic extremes in everything today just reinforces that opinion. I may be underestimating the opposition but I think they are in deep trouble. I would much rather be playing our hand rather than theirs at this moment.  – an email to me from John Embry

Since the de facto collapse of the U.S. financial system in 2008 – accompanied by the Taxpayer bailout of the Too Big To Fail Banks – the Federal Reserve and the U.S. Government have been throwing trillions at the system in order to keep the system from collapsing again.

Please note:  the underlying system problems have never been addressed.  Rather, they’ve been medicated with $3.6 trillion in money printing and a $7.5 trillion increase (70%) in Treasury debt since then of 2008.

The markets are beginning to show the stress from 6 years of Fed and Government intervention (Govt = the Treasury’s Working Group On Financial Markets).   The central planners have created a catastrophic degree of moral hazard by removing all downside risk from the paper asset markets.  This in turn has created the biggest stock and bond market bubbles in the history of the known universe.

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