Early Warnings

When you see this kind of World turmoil breaking out in the dead of winter, you have a problem. We are in the end stages of a long cycle collapse and these never end without tremendous upheaval. Whether they signal the beginning of a long period of retrenchment in society and World power balances or a more cataclysmic resolution to the World’s many problems remains to be seen, but dramatic change is definitely accelerating across the planet. 

Beiber, Aniston, Prince Harry, Hollande’s mistresses etc. hog the headlines to keep the real news buried in the back pages, but the events unfolding cannot be suppressed. Argentine currency collapse will not be denied. Turkey is exploding their CDS spreads. Russia is trying to prevent the break up of the Ukraine, but many areas on its borders are also showing signs of strain. China’s debt ridden recovery is beginning to weaken under the strains of inflation, smog, and hidden social breakdown. Japan’s debt monetization in a long term deflationary cycle is breaking down and in turn ultra-national forces are deflecting the attention towards China which has a government more than willing to take on this challenge to settle not only old festering wounds but to deflect their own economic woes. African war winds are increasing as the U.S. pivot to Asia/Africa begins in earnest to fight over the remaining hard assets before the grand reset is complete. No one needs to be reminded of the remaining tinderbox in the Middle East and as the anchor country, Egypt reignites one wonders just how long this area has to explode. 

There are more examples of current hot spots but just one or two of these situations can create a domino series of events that bring down large segments of the banking/currency system. These are not just threats but are occurring in real time. As the stress of each situation becomes additive the likelihood of  a systemic breakdown increases exponentially. The containment of the first crisis to the system in 2008 was accomplished with massive printing and this crisis will be met with the same response.  Many of us have been lulled into believing that printing/monetization can solve or at least stave off the the arrival of the grim reaper, but nature does have its limits of tolerance so beware, time is no longer on the side of the ponzi, and when pressure comes from the law of nature the ponzi will fight for its life.

Bail ins and capital controls are now coming fast and furious even as the headlines of Beiber and Kardashian folleys hog the headlines. The system will now fight for its survival and there will come an epiphany to the fools that have their capital exposed and they will look for the safest haven that 6000 years stood the test of time. When that epiphany comes, you will not be able to buy physical gold or silver without a truckload of paper……so gl.