How to overcome financial crisis emotional intertia? Plus Greek dominos and derivatives end game
May 16
posted by Michael Smith in
2012
| 0 Comments
I know it can get depressing reading these reports and I think it makes sense to take some action now to protect ourselves. I am writing about this info so that you are not hurt so much in the coming year.
Once this crisis starts really moving it will be much harder to take action due to the speed of the changes and/or new overnight government regulations. There is also a lot of denial and emotional inertia to overcome and taking even small actions such as keeping a few months expenses in cash, having some extra food and water supplies and buying your first gold coin are small steps that help over come that and also provide practical "financial crash insurance". You don't have to move all your assets to get some insurance. Chris's advice below is to wait for the dip to buy gold but you need to know that he already holds 70% of his total assets in gold and silver so he is already protected from currency crashes where as you probably are not at all ...
This report makes clear that many banks will collapse and countries too. Hyper inflation will destroy bank account and asset values. Starting with Greek default and Spain, but then continuing to France, UK and finally USA. Just look at the photo of the Greek ministry of finance below with files stored in shopping carts and plastic trash bags to see where Greece is today. Or read how $900M left Greek banks this Monday - what I would call a bank run.
This time I am expecting a coordinated central bank action that will involve most or all of the major central banks of the OECD: Japan, UK, US, and Europe.
One day, we will wake up to find some global message about the need for a coordinated response to a major crisis, and each of the central banks will be issuing some massive new amount of thin-air money. Of course the programs will be called something fancy that will require shortening to an acronym and will involve buying some form of debt (sovereign debt, but maybe also bank debt), and we’ll track this via central-bank balance-sheet expansion.
...
Given this environment of massive, rapidly-accelerating, and obfuscated risks, the prudent among us are undoubtedly wondering, How the heck is this going to play out? And how do I prepare for it?
I lay out my forecast for how low asset prices will sink before the central banks once again attempt to ride to the rescue with gargantuan liquidity measures.
But this next time won't work as it did in 2008, in my estimation. I see central banks being near the end of their ability to influence developments at this point. More liquidity will affect different asset classes differently, and for the first time raise real (and valid) concerns about the widescale debasement we are witnessing across the world's major fiat currencies.
Putting your capital into those resources best positioned to appreciate most as the result of money printing and hold or increase their purchasing power in such an environment should be a top priority for every concerned investor. [that is gold and productive land]
From ChrisMartenson.com
PS I have found Chris Martenson reports to be useful and practical and he doesn't get over hyped up about the coming changes. This email is a paid report so please don't pass it on.
