COVID19 COUPLED WITH A MAJOR DEBT CRISIS – WHAT’S NEXT?

I guess all of us are asking this question? It is interesting to read what some of the world’s financial experts are predicting.

James G. Rickards is an American lawyer, speaker, media commentator, and author on matters of finance and precious metals. He is the author of Currency Wars: The Making of the Next Global Crisis and five other books, his latest Aftermath Wikipedia,

Bill Bonner is an American author of books and articles on economic and financial subjects. He is the founder of Agora Financial, as well as a co-founder of Bonner & Partners publishing. Wikipedia

Nick Hubble is a feature Editor of The Daily Reckoning Australia and Editor of Strategic Intelligence Australia.

One thing all have observed is that over the last few months, we’ve seen a new phenomenon.

The phenomenon of elite agents — governments, the World Health Organization (WHO), the United Nations, law enforcement, the medical establishment, business and tech interests, corporate media — harnessing HUMAN FEAR to tell the population what to do.

How EASY was it for those running things to essentially put the entire world under house arrest? Whether a global quarantine — and shutdown of the world economy — was right or wrong is beside the point I’m making.

The point is, we now know what happens when ‘ordinary’ people get scared. And how easy it is for the elites to do what they want when fear takes over.

The million-dollar question is:

WHAT DO THE ELITES DO NEXT WITH THIS NEWLY DISCOVERED POWER?

How will the global elites exploit COVID-19 to plan and execute their next move…and consolidate their power?

What of the immediate future: Jim Rickards believes “the best evidence indicates that the global economy will not recover for years…and that an age of low output, low income, low consumption, high unemployment and deflation is upon us”.

The first stage of a major debt crisis is deflationary. Prices fall. Companies go broke. People get laid off. Investors typically rush to the safety of U.S. Treasury bonds. T-Bond prices go up, even as prices for corporate and “junk” bonds go down.

Bill Bonner believes we’re entering that phase right now. But, says Bonner, then comes stage two: Inflation.

Now the feds are pumping in new money on a whole ’nuther scale. And that’s when the T-bonds go down.

Why? Because the only way the feds can fight the downturn is by issuing more fake money. More bonds. More quantitative easing (QE). More dollars. More stimulus. More deficits. More Repo Madness.

Sooner or later, all this new, fake money drives down the value of money itself…

…and T-bonds, calibrated in dollars, go down too.

And amidst all this chaos, as it all comes to a self-inflicted head…

the elites will simply propose a new system entirely. They all share the same vision, One World Order, One World Taxation, and One World Money. All of their actions are geared toward moving that agenda forward.’ (prophesied Biblical end times scenario)

History shows we’re due a financial reset.

These reset events happen regularly — and we are well overdue.
Just before, or during, a complete collapse, the powers that be come together in an obscure place and hash out the terms of the new currency system. That new system usually gets named after the random place they decided to meet.

Towards the end of the Second World War, it was Bretton Woods in the US state of New Hampshire. But trade imbalances and the outflow of gold under the Bretton Woods system forced the Smithsonian Agreement and the Jamaica Accord in the 70s — two more resets that gave us floating currencies.

The Treaty of Versailles was one they got wrong, with disastrous consequences. These are just some examples from the 20th century.

These resets occurred for the same reason as those last century — to prevent a crisis and the uproar that goes with it. To create a new workable system. And…most importantly…to ensure the elites that make the rules STAY elite.

Again — I just want to clarify what I mean by ‘elite’. These are not mysterious, Illuminati-type figures. These are people with power and means (some of them names you’ll know) who run the institutions that form a kind of global superstructure. This superstructure is like a snare net encircling all nations. The people who run it aren’t democratically elected. They’re not accountable to you and me. They’re beyond the reach of government and citizens, and yet they hold the fate of the global financial system in their hands.

According to Jim Rickards, a shortlist of these people just from the world of central banking and foreign relations would include:

  • Christine Lagarde, Head of the European Central Bank
  • Mark Carney, Governor of the Bank of England
  • Raghuram G. Rajan, Vice Chairman of the Bank for International Settlements
  • Haruhiko Kuroda, Governor of the Bank of Japan
  • William C. Dudley, former president of the Federal Reserve Bank of New York
  • Agustin Carstens, former governor of the Bank of Mexico
  • Janet Yellen, former chairman of the Board of Governors of the Federal Reserve System
  • Mario Draghi, former president of the European Central Bank
  • Zhu Min, former deputy managing director of the IMF
  • Zhou Xiaochuan, former governor of the People’s Bank of China
  • Robert E. Rubin, Chairman of the Council on Foreign Relations.

As Jim details in his latest book Aftermath, Reset 1922 was the first really effective reset that the elites pulled off last century. It was the Genoa Economic and Financial Conference. Thirty-four nations participated in the conclave, held in the Palazzo di San Giorgio in Genoa, Italy. Post World War One, this reset featured the economic reconstruction of Europe…and the status of reparations and relations with the relatively new Soviet Russian regime.

Fat Tail Media
Happy men, after carrying out Reset 1922
at the Genoa Conference.
RESET 1944 was the United Nations Monetary and Financial Conference of 44 nations, better known as Bretton Woods.

To say the Bretton Woods system established a new monetary order is an understatement. This was where the elites ensured everything would stay in their favor for the next 70 years. In one meeting, they set up a new system of rules, regulations and procedures for all the major economies of the world. The aim stated in the press was ‘economic stability’. It always is! But Bretton Woods established the International Monetary Fund (IMF) and the World Bank…and in doing so created the actual institutions that could formally carry out the next reset when needed.

JIM RICKARDS BELIEVES THAT NEXT RESET IS COMING AND THAT THOSE WHO DON’T PREPARE FOR IT COULD LOSE OUT BIG-TIME.

Central banks still haven’t normalised their balance sheets and interest rates since the last crisis. And it’s virtually impossible to do so now. Money printing won’t be an option. Because central banks have printed too much already. Any more money printing would trigger a complete loss of confidence in fiat money and a mad scramble for hard assets. Instead of money printing, Jim reckons the elites are planning something else.

A total lockdown of the system. One that will not let investors get their money out. Says Jim:

This will begin with money market funds and then spread quickly to bank accounts, ATMs and stock exchanges until the entire system is frozen.

Then an international monetary conference will be convened to create a new global monetary standard, probably based on special drawing rights (SDRs), which will be printed by the trillions and handed out to governments to gradually reliquify the system.

Governments can see this coming and are already taking steps to prepare for more extreme measures.

Yes. I know. That sounds crazy.

But I have to draw you back to the ‘crazy’ things that Jim has gotten 100% right before. Remember: If history is anything to go by, we’re long overdue this next reset

Jim suggests there are two ways to do this. The first is to own assets unaffected by monetary chaos and government decree.

It’s unlikely the government will ever confiscate your home or ounces of gold you own in secret. The price of both might surge or tumble, but you’ll own a hard asset either way.

Assets held in the financial system are at risk. That means not just your stock portfolio, but the money you hold with a bank.

Just look at what happened to people in Cyprus in 2013. A chunk of their bank deposits were used to bail out the bank!

Or in Argentina in late 2001, when government froze bank accounts and forbade withdrawals for a FULL YEAR!

Whilst we’re not suggesting this is likely to happen in Australia or the USA, this is an historical example of what’s possible.

At the very least, you need to think very hard about how much of your wealth is tied to the stock market. In the coming months, you need to be very wary of analysts and financial advisers trying to convince you it’s the bottom, and to buy.

(With the exception of certain gold stocks. We believe they’ll likely go up as the wider markets go down over the medium term.)

Australia didn’t have a fully developed stock market in 1929. Nowhere near as many ordinary Australians were stock investors then. But America did. And a repeat of the collapse on Black Tuesday is almost impossible to imagine here, today.

As History.com writes: ‘Billions of dollars were lost, wiping out thousands of investors, and stock tickers ran hours behind because the machinery could not handle the tremendous volume of trading.

And they kept falling. At the bottom, some investors had just 10% of their stock portfolio remaining. I’m not saying for a second it will be that bad. But you need to know that these losses have occurred in history. And history shows we’re due a reset event. You also need to think about owning things the government need not know about, and things that are unlikely to be taken from you.

We are in unprecedented times. This means you have to be nimble, and you have to watch the data as things play out. You can’t put a stake in the ground around one particular outcome because the chance of getting blindsided is high.

It might be a global currency, like The Economist magazine predicted this year. Or the end of the fiat currency experiment and a return to gold, as Jim Rickards has long predicted. Or perhaps the elites might harness the power of the blockchain, as some countries are already exploring.

China’s secret gold purchases and Germany’s gold repatriation from America suggest where they’re putting their money.

Russia and Singapore are looking at blockchains and digital currencies.

Elites are on the move…positioning themselves for the coming reset.

They won’t admit it publicly — but they know this virus is about to expose how heavily they have abused and mistreated the financial system.

But, according to Jim, it’s been admitted among like-minded elites for years…

Incoherent is the exact word used by both Ben Bernanke, former Chairman of the Federal Reserve, and John Lipsky, former acting Managing Director of the IMF in separate conversations with me,’ says Jim.

I spoke to Bernanke in Seoul, South Korea on May 27, 2015 and to Lipsky just a few months later in New York City. Each used the world “incoherent” to describe the international monetary system. I’ve never heard either one of them use that word publicly.

The point is this… whatever new system they choose to make things ‘coherent’ again, you need to be ready. I don’t normally promote secular publications but I consider this good advice hence you might want to consider that for just $69 will get you Jim’s book Aftermath, and a full 12 months of Jim Rickards’ Strategic Intelligence Australia.

TO GET MAILED YOUR COPY OF AFTERMATH RIGHT NOW, CLICK HERE

Fat Tail Media

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