6 Reasons the Economy is Collapsing RIGHT NOW!

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The sky is falling again, you say. There’s a point where sites like this seem to get tiring, constantly preaching about the impending economic collapse, like the boy who cried wolf. Aand then there’s a time when the wolf actually appears and it’s time get the heck out!

2015 is the new 2008, and we are entering into the initial phases of a global economic collapse right now. Here are 6 reasons why, from precious metals expert Miles Franklin, written 2 days ago:

“And thus, in no particular order, here are today’s “historically momentous” events; which, cumulatively, will make it eminently difficult for TPTB to prevent universal realization of a far more terrifying sort – “2008 is back.”

 

1. In the case of “Dr. Copper” – the poster child of industrial commodity demand; or as I called it last year, “Dr. Death” – it is also amidst a horrific Chinese inventory scandal. In other words, it was just a matter of time before copper “met its maker.” And finally, after gradually weakening over the past week, it suddenly collapsed last night, along with zinc and all the base metals.

The “Miles Franklin Silver All-Star Webinar Panel’s” forecast of a 25%-50% silver production decline will appear far more likely.

2. After plumbing 20-year lows for the past year, mortgage purchase applications exploded 24% last week alone; and refinancing applications, an incredible 66%! And no, this is NOT “good news”; but instead, the “sum of all fears” regarding U.S. consumer and Federal insolvency.

Conveniently hidden from view, as Fannie and Freddie’s nearly $6 trillion of nationalized debt is held “off balance sheet.” Throw in the 3%-down mortgages the FHA is now offering to subprime lenders, and you can see the Fed’s printing presses have decidedly not been “tapered” – nor its appetite for financial destruction. 

Of course, you can bet that few, if any, of the 24% increase in mortgage applications will actually turn into new home purchases. Or, for that matter, that the waves of refinancing will cause Americans to “spend” – as opposed to paying off other debts.

3. It was reported that December retail sales not only plunged by 1.0%, compared to expectations of just a 0.1% decline. Thus, the oil price plunge has decidedly NOT acted as a “tax cut”; as not only evidenced by the shockingly bad retail sales, but plunging load factors at airlines like American Air! And oh yeah, even “excluding gasoline sales,” retail sales still declined.

4. The Fed may have succeeded in closing the 10-year yield at 1.89% yesterday, mere tenths of a basis point above the October 15th “flash crash” low. However, this morning it is in FREEFALL – touching at low as 1.78% earlier this morning, and sitting at 1.81% as I speak. 

And not only here, but throughout the world – as evidenced by the Japanese five-year yield yesterday joining those of Germany and Switzerland in negative territory.

5. Speaking of the ECB, the Euro has plunged to another nine-year low this morning – of 1.174 at its low. “Coincidentally” before next Tuesday’s potentially momentous ECB meeting, the highest EU court essentially gave a green light to the constitutionality of QE. 

Thus, gold is again surging in Euro and Swiss Franc terms, as the orchestrated three-year “bear market” is decidedly OVER. It’s only a matter of time before gold in Euros, Swiss Francs, Japanese Yen, and countless other currencies join Ruble-priced gold at all-time highs; 

6. Also on the topic of CRASHES, how about Bitcoin? Down another 20% overnight – to a low of $172 – it is now down 40% this year alone, and 85% from the all-time high set barely a year ago.

I’ve written exhaustively of my views on Bitcoin; and frankly, the concept of alternative currencies, whilst intriguing, has a LONG, LONG way to go, even if ultimately successful. That said, Bitcoin will NEVER meet the parameters of money ; and sadly, countless tens of thousands are finding that out the hard way.

Well, that’s enough for this “historically momentous” day; other than to conclude with this news of the ongoing explosion of global physical gold demand – which will inevitably go parabolic when, likely much sooner than most can imagine – the entire world realizes the end game of history’s largest fiat Ponzi scheme, “QE to Infinity,” is not just inevitable, but imminent.
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Edited excerpts from this article by Miles Franklin.
 

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