It looks like we're seeing the beginning of a new financial crisis. Don't be fooled, this historical collapse of the market isn't because oil prices, but because of simultaneous bubbles popping, starting with the stock market bubble, Federal Reserve Bubble, and debt bubble.
If we take a look at the response from the government, its horrifying. They are taking steps that will inflate this bubble beyond comprehension. Based on what the government and the private Federal Bank have said we should soon see:
All of these steps will expand the Feds sheet massively, eclipsing what took place in 2008. This entire economy is based on this cheap money that has been pumped all over the world under during the last administration and Fed chair. This time, 0% interest rate and QE won't stop the bubble from popping. The Federal Reserve will resort the helicopter money, and in the end, the results are going to be a loss of confidence in fiat.
You will soon see failures of fiat starting with the Euro, then by Yen, next will come the US Dollar. This bubble of debt including derivatives is somewhere passed $250 TRILLION. This stack of cards is coming down hard, and the more the central banks do, the bigger the problem is. In fact, the more involvement they have, the greater the collapse is. From here, the domino effect gets greater as consumer spending collapses, taking down housing, autos, and stock prices. This leads to closures, which leads to layoffs, which leads to high unemployment, which leads to welfare, which leads to more printing of money.
So, where do we go from here? Safe havens. First and foremost gold and silver, as these will break out of central bank's manipulation hold. Next, for a quick profit taking, gold mining stocks see a massive rally (200-800%) during any economic, geopolitical, political issues, or elections. Check chart history on ASM, NGD, BTG and others to prove it. These stocks are massively undervalued in comparison to gold. Do I suggest Bitcoin? Absolutely not. From what we've seen today, along with numerous other selloffs, crypto has been falling WITH the stock market. From here, metals, and honestly, some prepping for inflation. Buy things now before hyper inflation kicks in. All of this money printing WILL show itself in inflation.
Lastly, in a word of opinion.. this next crash will be the death of fiat. Central banks have been foaming at the mouth over digital money for a long time but infrastructure hasn't been there. The evidence is everywhere, as cash is disappearing. China is seeking to digitize their currency. Sweden is the most cashless nation on earth. P2P payment systems and companies are sprouting everywhere. The signs are there, if you care to look.
If we take a look at the response from the government, its horrifying. They are taking steps that will inflate this bubble beyond comprehension. Based on what the government and the private Federal Bank have said we should soon see:
- Imminent Rate Cuts - Negative Rates High Possibility.
- $150 Billion QE Liquidity - As a start, which can easily double.
- Stimulus to private sector, small businesses, and even corporations.
- Pay-roll Tax Cuts - Even less income, higher debt and more printing. This is very bad.
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All of these steps will expand the Feds sheet massively, eclipsing what took place in 2008. This entire economy is based on this cheap money that has been pumped all over the world under during the last administration and Fed chair. This time, 0% interest rate and QE won't stop the bubble from popping. The Federal Reserve will resort the helicopter money, and in the end, the results are going to be a loss of confidence in fiat.
You will soon see failures of fiat starting with the Euro, then by Yen, next will come the US Dollar. This bubble of debt including derivatives is somewhere passed $250 TRILLION. This stack of cards is coming down hard, and the more the central banks do, the bigger the problem is. In fact, the more involvement they have, the greater the collapse is. From here, the domino effect gets greater as consumer spending collapses, taking down housing, autos, and stock prices. This leads to closures, which leads to layoffs, which leads to high unemployment, which leads to welfare, which leads to more printing of money.
So, where do we go from here? Safe havens. First and foremost gold and silver, as these will break out of central bank's manipulation hold. Next, for a quick profit taking, gold mining stocks see a massive rally (200-800%) during any economic, geopolitical, political issues, or elections. Check chart history on ASM, NGD, BTG and others to prove it. These stocks are massively undervalued in comparison to gold. Do I suggest Bitcoin? Absolutely not. From what we've seen today, along with numerous other selloffs, crypto has been falling WITH the stock market. From here, metals, and honestly, some prepping for inflation. Buy things now before hyper inflation kicks in. All of this money printing WILL show itself in inflation.
Lastly, in a word of opinion.. this next crash will be the death of fiat. Central banks have been foaming at the mouth over digital money for a long time but infrastructure hasn't been there. The evidence is everywhere, as cash is disappearing. China is seeking to digitize their currency. Sweden is the most cashless nation on earth. P2P payment systems and companies are sprouting everywhere. The signs are there, if you care to look.