The case for a pending financial collapse is well grounded. Financial crises occur on a regular basis including 1987, 1994, 1998, 2000, 2007 and 2008. That’s about once every five years for the past thirty years.
There has not been a financial crisis for ten years so the world seems overdue for one on form.
It’s also the case that each crisis is bigger than the one before and requires more intervention by the central banks. In 1998, Wall Street bailed out the hedge fund Long-Term Capital Management. In 2008, the central banks bailed out Wall Street. In the next crisis, possibly soon, the central banks themselves will need to be bailed out, probably by the IMF.
Studying this economic history is useful, but can investors actually see the next crisis coming in time to react by reallocating their portfolios to gold, silver and cash and away from equities? The answer is “yes” if you’re looking in the right places and listening to the right voices.
Right now, the voices warning of financial collapse are no longer from the fringe, they’re from the heart of the global power elite. This article reports that the Chancellor of Germany, Angela Merkel, part of the G20 and G7 leaders’ summits, has warned that current trade disputes are “taking on the contours of a trade conflict,” and “It’s worth every effort to try to defuse this so that this conflict doesn’t become a war.”
Merkel is not alone. Global financial elites, including the IMF’s Christine Lagarde and financial guru Mohammed El-Erian, have also warned about the potential for another financial crisis if currency war and trade war issues are not soon resolved.
Merkel, Lagarde and El-Erian are not fringe player or bloggers. They are the global financial elite. If they’re concerned about financial stability, maybe you should be concerned also.
Preparation means 10% percent of your investible assets in gold or silver and another 30% in cash. That allocation will preserve wealth and provide dry powder for bottom-fishing in the crisis to come.
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