Secret Monetary Group Warns a Catastrophe Is Coming

This is just the tip of the iceberg.

By Harry Dent, author of the new book, How to Survive (and Thrive) During the Great Gold Bust Ahead:

The Bank for International Settlements is nothing if not obscure. As the central bankers’ bank, it seems little-more than a back-door, private club for monetary elites to rub shoulders. And it’s located in Switzerland which has always carried a reputation for financial secrecy.

Then it has this going for it – John Keynes of “Keynesian economic theory” opposed its dissolution back in the 1940s. His was the kind of thinking that has largely influenced central banks to hijack our economies with manipulative monetary policies! So you’d probably think I hate these guys.

But you’ve got to give credit where credit is due. The Bank for International Settlements is one of the few financial institutions that warned of dangers to the global financial system as early as 2003.

So by time the financial crisis struck, they’d been warning about it for years. Its former chief economist, William White, even dared to challenge former Fed Chair Alan Greenspan about cheap money policies that helped start the crisis!

Once again, this group is on the right side of history.

It just warned about a “gathering storm” in the global economy as central banks seem to be running out of options. They’ve seen right through this “recovery” and warned that unprecedented debt levels would put the world economy in worse shape than before the 2008 crash.

Because like with any addiction, there is a point where increased stimulus just doesn’t work anymore.

Just this week, China reported a 25.4% year-over-year decline in exports, despite continued strong economic stimulus from the government. Now, they simply pledge more stimulus like every central bank in the world.

Then there’s Japan, whose economy remains in a coma after the most aggressive QE of all developed nations. Four of the last seven quarters have been negative, including the fourth quarter of 2015.

Now, Japan has joined a group of European nations in announcing negative interest rates in January. And what do they have to show for it? Japan’s stocks went down after the announcement, and it’s hurting bank margins and profits that are already suffering.

But the failure of global stimulus clearly isn’t confined to these two countries.

Italy’s non-performing loans are rising and the country looks increasingly like the next Greece. Of course, Greece hasn’t exactly recovered from its debt defaults. Nor has Cyprus. Kicking the can down the road, hoping for better economies despite crushing debt and refusing to restructure it, just doesn’t work.

Southern Europe is going to be in deep trouble again by the end of this year. In Italy, they might resort to a Cyprus-style “bail in” where large depositors have to bail out the banks. That won’t be pretty.

And it now looks like Deutsche Bank could wind up like the next Lehman Brothers. Last year, they suffered a $7 billion loss from bad loans – worse than in the Great Recession! Make money free, and banks will make bad loans. And investors will increasingly speculate.

Worse than that, Deutsche Bank has derivatives exposure up to $54.5 trillion (that’s not a typo). That’s higher than JPMorgan at $51.7 trillion. Overall, there are $550 trillion in highly leveraged derivatives globally.

That isn’t good for the major global banks. Most of them are trading well below book value – meaning, they’ve already been crushed!

And if you think the U.S. economy and stock market will continue to be the last man standing in a sea of sinking ships, think twice! S&P 500 earnings are down 18% from their September 2014 peak, and that makes real P/E (price/earnings) ratios over 23%, which can’t last.

Then there’s also clear speculation in the housing market, as the dumb money – who always piles in at the last minute – has taken up flipping real estate. 180,000 houses were flipped in 2015, or 5.5% of sales, compared to 4.6% in 2014. That’s a big jump! And it’s a clear sign that housing is about to peak again.

This is just the tip of the iceberg. Signs of trouble are popping up all over as central banks are desperate to reverse the course.

The UK is threatening a “Brexit.” Mass migration into Europe is still a problem without a solution. Despite a brief reprieve, oil will continue to crash. And developed countries all over the world are marching over a demographic cliff.

This is not the time to be complacent. Now is the time to hunker down and protect yourself from the worst financial devastation of your lifetime. And even the central banks’ bankers see it.

By Harry Dent, author of the new book, How to Survive (and Thrive) During the Great Gold Bust Ahead, where he warns investors that moving their assets into gold isn’t the safe haven they think it is – and why it won’t protect them from the biggest market collapse since The Great Depression. Get a free copy of his eBook here.

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  62 comments for “Secret Monetary Group Warns a Catastrophe Is Coming

  1. Paulo says:

    regarding statement: “Now is the time to hunker down and protect yourself from the worst financial devastation of your lifetime.” I believe this to be true, although no point in losing the joy of each day as the news mounts. I am 60, and although brought up in the peak of plenty and led to believe it was normal, I had some periods of unemployment with a young family, stay at home wife, mortgage, etc. That is why I have never had debt beyond a modest motgage, and lost that many years ago. The fear of having to go begging for cash, or running out of food, etc., tends to sharpen the pencil and deliberate before buying/doing.

    Of course this is winding down, how much plastic crap do we need? Robot manned factories spewing out products can only be marketed in so many ways. And those in the world who could use some new comforts don’t have any cash to buy them.

    A new paradigm will either unfold, or there will be war. It certainly seems to be coming to a head.


    • keith says:

      Inequality is a problem for investors too.

      2014 – “85 richest people as wealthy as poorest half of the world”

      2016– “Richest 62 people as wealthy as half of world’s population”

      Doing the maths and assuming a straight line …….

      5.4 years until one person is as wealthy as poorest half of the world.

      So much money to invest and so few investment opportunities.

      The problem of inequality.

      Better get some helicopter money to the masses to increase demand.

      A good quote from John Kenneth Galbraith’s book “The Affluent Society”, which in turn comes from Marx.

      “The Marxian capitalist has infinite shrewdness and cunning on everything except matters pertaining to his own ultimate survival. On these, he is not subject to education. He continues wilfully and reliably
      down the path to his own destruction”

      Marx made some mistakes but he got quite a lot right.

      Jeez, no one told me that global employees are the global consumers.

      So as we all increase profits by cutting labour costs we are effectively cutting our own throats.

      You got it.

      • Kreditanstalt says:

        GOVERNMENTS create “inequality” by subsidizing selected activities and penalizing others. I’d have no problem with any amount of inequality if it were the result of the action of a free market.

        • Keith says:

          What was it like when businessmen were able to operate without Government interference?

          Politics is bad, but being ruled over by Jamie Dimon and Lloyd Blankfein would be worse.

          Democracy is now pushing new people forward to replace the corrupt.

          Is there a single nation on Earth where businessmen voluntarily gave up slavery?

          Slavery is good for profits and the only way the businessman will give it up is to be forced by legislation.

          We had un-regulated, trickledown Capitalism in the UK in the 19th Century.

          We know what it looks like.

          1) Those at the top were very wealthy
          2) Those lower down lived in grinding poverty, paid just enough to keep them alive to work with as little time off as possible.
          3) Slavery
          4) Child Labour

          Immense wealth at the top with nothing trickling down, just like today.

          This is what Capitalism maximized for profit looks like.

          Labour costs are reduced to the absolute minimum to maximise profit.

          (The majority got a larger slice of the pie through organised Labour movements.)

          A 19th Century commentator, Leo Tolstoy “Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.”

          US slave owners in the 19th Century argued that they treated their workers better because they owned them rather than renting them (paying wages). It was a valid argument at that time of unregulated Capitalism.

          The beginnings of regulation to deal with the wealthy UK businessman seeking to maximise profit, the abolition of slavery and child labour.

          Where regulation is lax today?
          Apple factories with suicide nets in China.

          The modern business person chases around the world to find the poorest nation with the laxest regulations so they can exploit these people in the same way they used to exploit the citizens of their own nations two hundred years ago.

          Labour costs are reduced to the absolute minimum to maximise profit.

        • David says:

          Well said.

    • bud says:

      “Now is the time to hunker down and protect yourself from the worst financial devastation of your lifetime.” Now, doesn’t that take a lot of research to figure out?

      One day on Wolfstreet, ZH, or some others and you have a clear picture that something is wrong and main street (paid to say) media (including NPR) are parrots for crony capitalism, banks, and Politians.

      Harry Dent has a history of being wrong, very wrong. They is a 90% chance he is right this time, but how smart do you have to be to understand that?

      The problem is timing if you are still in the casino….that includes 401k, Ira, and every vehicle wall street invented to finance your demise.

      • Alice says:

        Thaaaaaank you Bud. The Barons of Basel “warn” about what THEY are themselves DOING knowing “mainstreet” and most others will never hear about it. Then they come back and say, see how BRILLIANT we are! See how we warned you! Look Jane, see Spot run… Dent is a tool and an apologist for his bosses in Basel.

    • Bob Miller says:

      Wolf, so you and Paulo, believe it is time to hunker down? Well, here’s some good news. We have the top 2% and bottom 98%, because if the 98% hunkered down any lower, they’d have to crawl into a hole. Let us be glad the mothers out in the wild like elk, moose, deer and ground nesting birds don’t hunker down when a predator shows up, otherwise, the only way the people of our lifetime could see these magnificent creatures would be in picture books.

  2. Keith says:

    The BIS is schizophrenic, its directors are the ones doing the damage and they write reports telling us of the damage their directors are doing.

    Its directors are the main Central Bankers:

    Mark Carney, London
    Agustín Carstens, Mexico City
    Jon Cunliffe, London
    Andreas Dombret, Frankfurt am Main
    Mario Draghi, Frankfurt am Main
    William C Dudley, New York
    Stefan Ingves, Stockholm
    Thomas Jordan, Zurich
    Klaas Knot, Amsterdam
    Haruhiko Kuroda, Tokyo
    Anne Le Lorier, Paris
    Fabio Panetta, Rome
    Stephen S Poloz, Ottawa
    Raghuram Rajan, Mumbai
    Jan Smets, Brussels
    Alexandre A Tombini, Brasília
    Ignazio Visco, Rome
    Jens Weidmann, Frankfurt am Main
    Janet L Yellen, Washington
    Zhou Xiaochuan, Beijing

    The BIS is where our policy makers live.

    • Keith says:

      Wonder why Central Bankers don’t really seem to be working in the interests of the nations they represent?

      Why did the FED bail out the global banking system after 2008?
      It bailed out French banks, German banks, English banks …….

      Their main role, as directors of the BIS, is to maintain the global banking system.

      Main street US is not really on the FED’s radar.

      • retired says:

        During WW2 the BIS was the main clearing house for illegal business transaction between the bankers from the allied countries & Nazi Germany!
        Thomas McKittrick was the American head of the Bank of
        International Settlement,he was the go between for financial deals between financial vested interests in the Western financial elites & Nazi Germany!
        Also a party to financing the Nazi’s through neutral Switzerland was his close associate & fellow conspirator in the OSS,Allen Dulles!

  3. David says:

    So just where is anyone supposed to put savings? Assuming that any stocks should be sold… Not banks if ‘bail ins’ happen. Not gold if this author is to be believed. What?

    • Crazy'ol Tom says:

      I hope you have an IRA or Roth-Ira and are learning about inverse ETFs such as ERY, FAZ and SMDD.
      I move between Long(FAS) and Inverse ETFs(FAZ). When the market goes down the Inverse ETF rises in value. These positions will run for weeks to months.
      I’ve found that simple charting systems help decide when to sell or buy.
      When the %R(Williams Ratio) and R/S(Relative Strength) are at extremes, Sell at a High and Buy at a Low.
      Fight the tendency to predict market direction.

      You’ll be ‘wrong’ as many times as you are ‘right’. Do as the Pros do, Book reasonable profits and don’t get greedy. It’s not easy being patient, but following the Trend is better than “waiting to get your money back!”

      I split my available capital into 5 groups. Each Buy is 20% of available cash. I try to have a block in reserve because Buy opportunities happen before the last sell has settled.

      • David says:

        IRA or Roth-IRA? I’m in the UK.. are such things available here? Didn’t know about inverse ETFs though. I’ll take a look at those, thanks.

        • bud says:

          what is wrong with sitting in cash? Or maybe some gold/silver, stamps, coins? Safety deposit box, in a box in the garden, who cares as long as you have control over it? In ‘their’ hands, they have control….poof, computer glitch.

          Sometimes watching the play is better than being in the play. For every dollar you loose, you need two to break even.

          Inverse ETFs, watch out wall street invented them and I know many who are screwed by the belief that it is a safe place and a sure bet. They are derivatives with little meat on the bone.

    • Paulo says:

      We are in a holding pattern in our house…wait and see. Our money is in our local Credit Union term deposits. I believe our highest return is currently 2.25%. This month I have spent our monthly income fixing up my truck. I usually put some in savings for a rainy day. I have no faith in any kind of a return going forward. I am holding out for a particular piece of property that adjoins mine. If we don’t get that property we hope the new neighbors are good ones. We would have to rent the place out, anyway.

      If the rates go 0%, or bail-ins start to happen I have no idea what we will do? Many of us will get very angry and that produces its own consequences.

      We are putting in a very big garden this year. New layers have arrived and meat birds are on order. Fishing season starts soon. We won’t go hungry.

      • David says:

        Paulo, here in the UK, options are more limited. Real estate of any kind is inbelievably expensive. Odd kind of society we’ve made, where it’s so hard to find security.

  4. Lars says:

    Watch to see if JPM ‘takes over’ Deutschebank when it goes default ! (to ‘save Europe’ from disaster. Oh so gallant of JPM !) If JPM does, it will be the ‘king of derivatives’ and simply cross-swap and tear-up and disappear trillions in contract ‘notional value’ by owning both sides of the contracts.
    Deutschebank is about the Ace thru Eight of hearts, and JPM is the ‘Queen of Spades’ ! JPM will be very close to ‘shooting the moon’ in this case.
    This is a more likely scenario than Deutschebank taking over JPM to be ‘Bank of the World’. As they both have close to a similar derivatives exposure, 54.5 and 51.7 Trillion, respectively, I suspect there are 60 Trillion or more, in notional value derivative contracts that can simply be ‘disappeared’ by the ‘winner’ from their current exposure, leaving the winner with less than 40 Trillion in exposure.

  5. nhz says:

    “Once again, this group is on the right side of history.”

    I guess Mr. Dent knows that BIS is the exact same bankster mob that is pushing all the bad and reckless monetary policies that we have seen especially after 2008. BIS = Yellen, Draghi, Carney etc.
    I don’t doubt that for those who check the real facts, history will prove the BIS banksters on the wrong side of history, although they may try to rewrite history in their own favor just like they did after WWII (easy if your friends control 99% of the Western media).

    Yes, they publish some insightful reports, but it seems to me this is just covering their a**. BIS is a bank with extremely shady origins and I don’t see any reason to give this scum the benefit of the doubt.

    As to Deutsche: the ECB can now officially buy their stock even if they are officially bankrupt, problem solved :-) This con game will continue for a long time …

    And the gold bust efforts from Mario didn’t turn out that effective either today ;-)

  6. LG says:

    The BIS is just trying to wash their “dirty hands” so they can claim they had nothing to do with the most immense financial ponzi ever created in modern era!
    “Stimulus” what a lie!
    Try monetary addiction!

  7. walter map says:

    BIS is where money goes when it dies. It has to go somewhere.

  8. Sandy says:

    Totally right on! The BIS is where the corruption to control the entire planet wealth is centered. This situation is all about their policies, which can’t possibly survive. Look at today’s action by China, to nationalize their insolvent companies. They will not devalue as the West thought. So the US is on its own with its own problems, which are getting bigger. More and more people are buying silver & gold.

  9. Al B says:

    Pay no attention to those bankers behind the curtain!

  10. Keith says:

    The problem ……

    Only five people are actually doing any real productive work (current global estimate).

    Everyone else is trying to skim money out of the financial markets.

    I think the system has become a little top heavy.

    Rubbish, those five people just aren’t working hard enough.

  11. Brian Richards says:

    First, Mr. Dent’s book is not “free”, even though he states that. When you get to the bottom of the sales pitch it will cost you $4.95 “to weed out the lookyloos”.
    His gold price prediction might actually become fact, since it appears that there is a massive worldwide deflationary wave headed our way. But no one knows the future. One thing I note, when I visit my local coin shops is that most of the customers are over 50 years of age. The “under 30’s” have no interest in gold. Gold is not money, and is hardly useful, if you compare it to oil. Still, there is a lot of demand for it. But when you need to eat, it might be one of the first liquid assets to be sold, so I don’t consider his prediction of $700/oz far fetched.
    So, like another poster asks, where does one put one’s money to just preserve the purchasing power of it, or not lose a lot?

    • NOTaREALmerican says:

      It’s the deflation in gold relative to everything else that matters.

      I’m 60, never owned gold or silver, and never thought I would need to. But with negative interest-rates and central banksters who are obviously either insane or criminal I’m beginning to rethink this. I’m not expecting the end of civilization (and don’t want to plan for it either) but it seems like having a stock pile of gold can’t hurt. If my short-term bonds deflate, and food deflates, and fuel deflates, then gold will deflate too, but the question is by how much relative to each other.

      Who knows. Glad I’ve only got another 20 +/- years left.

    • Mark says:

      Brian, I immigrated 24 years ago to Canada from European country which was ravaged by war. Imagine city with half mil. population with no food, water… Gold and silver will help you until your neighbours discover that you are not hungry like them, after that God is only help to you.
      My best friends were machinegun and plenty of ammo.
      So my advice to all of you invest in guns and ammo, this will preserve your purchasing power better than anything else..

      • Paulo says:

        Check. I have a full closet of firearms, and every once in awhile I buy another brick of.22 LR. Just because….and just in case.

        • d says:

          .22 is for wounding things.

          IF the situation is ever one of conflict survival you want. 7.62, or 9, long.

  12. Álvaro says:

    I got so anxious about the ECB announcement today, that I eat a lot of chips, guac and jam, and now I feel fat and ugly. Capitalism is not making me pretty.

    • Bob Miller says:

      Too funny for words. I think I’m on my sixth yogurt. I hate yogurt. Thanks!

  13. unit472 says:

    When every market is being rigged by Central Bank manipulation there are no ‘investments’ to be made. Its like being inside a casino you cannot leave. You can ‘win’ chips but you cannot cash them in and leave the casino. Even gold is not immune as governments can outlaw its possession or tax away any ‘windfall’ gains one might make. In fact, that is the most likely outcome should gold accelerate in value.

  14. ucde says:

    Its convenient for his analysis to postulate that central bank ‘free money’ policies have caused the crisis..

    As if capitalism doesn’t already have a crisis dynamic built in, and as if our debt-based monetary system didn’t set us up for a debt crisis from its earliest beginnings. The analysis I read has our debt boom actually starting in the 40s after WWII. As I recall, that was immediately after the last spectacular collapse of international capitalism in the 20s and 30s. Real stable system we have here.. there is nothing you could ever want to critique about it .

    Clamping down on increases in the monetary supply just keeps economies stagnant or spiraling downward. You need an ever-increasing money supply, you need the currency issuer to issue currency (creating public domestic debt-free money to fund works that serve public purpose). There is no reason to suspect that the money supply should remain at a fixed level, just like there is no reason to demand that domestic national budgets balance, or that deficit spending decrease over time. Domestic debt is a misnomer, its should be called Gross Currency Issuance. It is owed to no one and the theory of Ricardian equivalence has been slaughtered even in mainstream economics at this point.

    I guess Dent wants to live in a world where no new money enters the system. In the name of keeping people honest. I want to live in a world where plenty of new money is created each year, but where it is fairly distributed, through something like a Basic Income Guarantee, or a Basic Income. The total number of dollars created is way less important than its distribution. Right now we have the new money being created but we have no means of distributing it. In what sense then is it a stimulus? It is life support for the financial sector only.

    • Dan Romig says:

      Is the US doing right with a $19T national debt, and deficit spending year after year ad infinitum? We have joined many other nations with a debt that is larger than GDP.

      New money should enter the system not from a printing press, or from Uncle Sam spending more than it collects, but from business enterprise. You work and get paid. You spend and invest. In a normal world (as we have had until recently), you could invest conservatively, safely and with a return. This is new money, but I studied business and science, not economics so what do I know.

      Very lively discussion readers!

  15. Chicken says:

    It’s what they’re not telling us that counts the most. The greatest transfer of wealth in human history appears to be picking up steam.

    • walter map says:

      “The greatest transfer of wealth in human history appears to be picking up steam.”

      They expect to finish up in the next few years and then go on to the next phase.

  16. Michael Gorback says:

    I have some friends from eastern Europe who told me about escaping to the west after WW2. They were trading jewelry for a box of cereal.

    I recommend a massive cache of miniature booze bottles. If things go really pear-shaped they will have great barter value, especially if the seal isn’t broken. So maybe one bottle = one gallon of gas, or 20 bottles, fill ‘er up.

    If things turn out ok, you have a liquor supply for the rest of your life.

    I do have my PM hoard but only because I like to pile it up in the living room and sleep on it while pretending I’m Smaug. The other precious metal, as Mark points out, is lead.

  17. NotSoSure says:

    I love how everyone seems to be up in arms agreeing with Mr Harry Dent. After all this is the guy who predicted Dow 40K (yes, it’s 40000) would happen between 2006 and 2010 (yes, I didn’t get that wrong either).

    Will a crash happen? Maybe, after all we seem to be at the end of a cycle. But if Mr Dent is a contrarian indicator, then Gold is going to the moon.

    • Chicken says:

      Too bad we have bankers at all, they seem to pride themselves in their ability to create angst and despair. From my perspective, it’s been a rough two decades, perhaps longer, for middle class Americans. Not that it hasn’t also for perhaps a majority of people globally, I can’t speak for them as they’re also sucked into and spit out of the great wealth transfer machine?

    • Ptb says:

      Yeah, Dent has a less than stellar track record. Take with huge grain of salt. i.e…he’s guessing, just like veryone else.

  18. Konstantin ks says:

    Every means of reserve is going to devalue in relation to food, water, antibiotics, painkillers, drugs, defence and energy, if everybody prefers to save than spend. Prices of goods inflate with demand but saving equals investing only when there is a demand for funding investments. Saving without demand for funding deflates the reserve currency whichever that would be. In a case of indefinite depression, only long-life goods with barter value would hold their relative price, but the cost to defend them exceeds your possible gains. In other words, there can’t be any meaningful gain out of a global disaster…

    • Chicken says:

      “there can’t be any meaningful gain out of a global disaster…”

      It depends on who and where you are, and your definition of disaster. A massive slowdown for instance, certainly must be considered a positive force in terms of climate change?

      Some believe something must be done to save the Earth, “Whatever it takes”.

    • Petunia says:

      I totally agree. When things get really bad nobody is going to trade their food, medicine, or protection for gold. Unless they plan to melt it down and actually use it. Young people today value utility. That’s why they don’t care about Wall St. or gold. Define a use for something and then you will see whether it has any value. Skills and the knowledge to produce is what is always in demand.

      • bud says:

        Petunia…I have never read anything you have posted that was not insightful, concise, intelligent, and prophetic.

        You are 100% correct on the young. May be they see how their elders have been fooled in so many ways, and not going to repeat the mistakes. Almost every person I have met under 35 has little interest in a car, a fancy house, stuff, etc. They all seem to want to travel in life with a light suitcase and avoid stress.

  19. nick kelly says:

    The Bank of International Settlements is a secret group?

    Where is Dent (or whoever wrote the headline getting that?
    The Globe and Mail referred to the BIS a few days ago.
    For one thing it still IS a bank for international settlements.

    I see its pronouncements in non too- secret financial press often.

    No doubt they see a crash coming- there’s no need to add an Illuminati dimension, if for no other reason than it will fan the flames of paranoia which are much in evidence in any financial blog.
    The idea that a secret financial cabal runs the world and turns wars on and off was a key belief of the National Socialist German Workers’ Party.

    • walter map says:

      “The idea that a secret financial cabal runs the world and turns wars on and off was a key belief of the National Socialist German Workers’ Party.”

      Naturally. The Nazis were funded by the global bankster cabal. Numerous historians have published details.

      How do you suppose the Depression-era “German economic miracle” came about? Trickle-on Reaganomics and austerity?

    • Bigfoot says:

      Harry Dent, is that what your car gets when it runs into a Bigfoot? :)

      His predictions & financial musings have been all over the place for several decades. I guess he’s good at selling his “services”. After hearing/reading his “stuff” back in the 90’s, I knew a chimp with a dart board full of choices & a dart could make better predictions.

      The BIS has been around since 1930 & IMO is THE head of beast. I’ve read a number of their publications as well as hundreds of pages of IMF & World Bank writings. For at least the last 2+ years all 3 have issued warnings. soooo The BIS was issuing warnings back in 2003, great timing.

      David – here’ my thoughts. Every reasonably intelligent person examining what’s going on around them can see the storm clouds gathering. Do we get a hurricane or do the storms on the distant horizon dissipate? Millions of opinions, pick what seems logical to you. Always study opinions counter do yours as a means of self examination.

      List everything you need for continuity of service in your life. Stockpile what you need to keep rocking. Don’t worry about being labeled as a prepper. Being prepared is a good thing & you will sleep much better knowing you can withstand a severe economic downturn & still eat. Having been through a number of financial ups & downs as well as real hurricanes over the years, I can attest to this. The $ spent on stockpiling would likely go down in purchasing power if it just sits there. Sky doesn’t fall, you will still have saved a lot of your hard earned dough & can keep front running your needs, saving yourself even more money. Enjoy every day, life’s short !

      I have some PM’s & cash on hand but I have many real tangibles goods stocked for continuity of my service. PM’s utility/value in 2 or 5 or 10 years, who knows ? Cash on hand, likely to devalue a great deal as the clock keeps ticking. Better to have cash on hand than inaccessible at a bank IMO. One of your greatest assets is your skillset & the means to implement those skills. The best way to help change the world is to change yourself!

      Enjoy the day !

  20. walter map says:

    More informative:

    A Warning From the B.I.S.: the Calm Before the Storm?

    The finance ministers and central bankers wracked their brains for two days to see if they could settle on new strategies for boosting earnings. In fact, the austerity-minded IMF even called on the G-20 to support a coordinated plan for fiscal stimulus to boost activity and decrease the risks to the equities markets. Unfortunately, finance ministers balked because fiscal stimulus puts upward pressure on wages and shifts more wealth to working stiffs. That’s why the idea was shelved, because the oligarchs can’t stand the idea that workers are getting a leg-up. What they want is a workforce that scrapes by on minimum wage and lives in constant fear of losing their job. The class war continues to be a top priority among the nations voracious CEOs and corporate bigwigs.

    • nick kelly says:

      Sounds like a dictatorship of the proletariat is called for.

      That’s what the Peasants’ Party thought. They were one of a broad swath of leftists who overthrew the Czar in 1917-18.
      Along with them was a much smaller group, the smallest in fact, the Bolsheviks, who would overthrow them.
      The peasants would soon find out what exploitation really meant as the Lenin- led party ‘declared war on the village’ (Pipes: The Russian Revolution) and began exporting grain.
      Then came for the first time in Russia’s history- true Asian-style mass starvation.
      Everyone posting on this site has a computer, power, a roof, and probably running water, maybe even HOT water.
      In Venezuela, which has the largest oil reserves in the world, Chavez and now Maduro came to power to get rid of the voracious CEO’s etc. just as Mao and Lenin got rid of, literally, bankers, landlords etc.
      Now it looks like the country might actually collapse.

      • bud says:

        Venezuela also has some of the dirtiest, most polluting, hard to refine oil in the world. Full of sulfur making it most undesirable.

        • d says:

          Unless you happen to be china, who with state subsidy’s, built refinery’s especially to work with the horrible stuff, as thy can buy it, CHEAP.

          As far as china and India are concerned, reducing global emissions, is a western matter.

  21. walter map says:

    “Sounds like a dictatorship of the proletariat is called for.”

    Don’t worry, there’s no chance democracy will be allowed. Besides, the world is clearly going fascist and, given modern technologies and techniques related to social dynamics, the adjustment will probably be permanent.

    As Whitney has pointed out, all that’s really needed to to align the incentives of capitalism to sustain the general population and the other resources of the planet. That would work, but that’s not going to happen either. Not sufficiently profitable.

    Since TPTB have no choice but to sustain the planet, they can best do that by reducing the proletariat and culling the herds, of which several billion are unproductive assets that are creating the problem in the first place by wasting resources. So that’s what they’re gearing up to do.

    Problems solved.

    What was your question?

  22. chicken little says:

    Stantz: Fire and brimstone coming down from the skies! Rivers and seas boiling!
    Spengler: Forty years of darkness! Earthquakes, volcanoes!
    Zeddemore: The dead rising from the grave!
    Venkman: Human sacrifice! Dogs and cats living together! Mass hysteria!
    Mayor: Enough, I get the point! And what if you’re wrong?
    Venkman: If I’m wrong, then nothing happens!

  23. Debravity says:

    Wolf, I read your columns, avidly. In particular, your posts, and the incredible Mr Quijones. Great work, thanks.
    I would like to know, and I feel many others may as well: who are Mr Dent and many of these other guests? Are they advertisers from whom you make money? Why do you publish them, sporadically?

    • Wolf Richter says:

      Depravity, let me assure you that the internet is a terrible business model because “everything is free.”

      For example, you can read this site for free. But the people who write articles try to make living doing it. So for me to compensate a contributor, I have two options:

      1. Money. Don Quijones is my long-time colleague in this sense, and WOLF STREET pays him for his work, and in turn, he gives WOLF STREET the exclusive right to publish his work. Occasionally, WOLF STREET pays other contributors for the exclusive right to their stories. You’ve seen some of them.

      2. No money. If I don’t pay contributors for their work, I have to do something else for them, namely promote their websites etc. They all have their own agendas. Some make money off their site via advertising and want to get more readers. Others make money by selling products or services off their sites.

      That’s how it works.

      I publish stories because I think they’re interesting and have valid points, but I only publish them if I have the written permission to do so. On the other hand, I gave permission to a few sites to publish my stories, but many places where my stories show up don’t have my permission, and they just steal them.

      • Debravity says:

        Thanks Wolf. Interesting. Just a couple of follow ups if I may, mainly because I search for solid information (very hard), and as you would know, it’s very hard to come by. Also, I promote sites that I believe fall into the category of ‘factual’ and I care about my reputation in making these recommendations.
        1) Mr Dent pays you to run his said polemic, and you vet these posts. So, how stringently do you vet these articles, and with what methodology?
        2) why have you, a man who presents as a successful and astute businessman, gone into what you call a ‘terrible business model’? Isn’t that like taking shorts at the casino? What’s the reason?
        3) Why don’t you use the Naked Capitalism model, with donations? I gave $30 last year because I value their impartiality so highly. I’m sure there would be many more people out there who would pay for that..
        Appreciate what you do, but I need to understand how the info comes to me to be able to filter it best I can. Cheers again.

        • Wolf Richter says:

          I’ve already talked too much


          But to add just one more thing: I’m doing this because I LOVE it! And because it gives me a voice in the debate.

  24. Debravity says:

    Me thinks me understands, but I digress.
    I had hoped that there was a personal reason, and I believe what you are telling us all.
    Thanks again.

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