The Next One Will Be The Big One « Jim Sinclair’s Mineset

Haven’t covered too much about the economy lately; I hit on the economy so much last year that I want to make sure that we cover other things as well.

However, it’s important to realize that the economy is still highly unstable.  This means that, at any time, the markets can turn upside down and crash, or fall, or any number of things that will cause an “unsettled period of time.”  Like, recessions, depressions, collapse of the dollar, things like that.  Remember, we still haven’t recovered from the last recession, though some say that we’re still in it and some say it ended.  Sure doesn’t look like the recession ended to me.

There are many little signs that the various economies around the globe are starting to unravel, and since they are all tied in together, if the EU goes, so do we.  We’re also starting to see mitigation strategies being implemented, like banks being told to make plans for a collapse, not to mention the still-depressing numbers of jobless claims.

These are indicators that you need to make sure your preparedness plan is in place.  Don’t hold off on that food storage or other preps any longer.  I’m not saying to go into debt, but if you’ve been taking a small “vacation” from preparing, it’s time to get back to work.

[From The Next One Will Be The Big One « Jim Sinclair’s Mineset – ]

I don’t see how anyone could say the financial system is stable.  The facts say it is anything but well-balanced and steady.  The Western world is in crisis with Europe leading the way over the financial cliff.   Pick a country in the EU.  France, Greece, Spain or Italy are all capable of causing the next financial panic.  I can’t tell you how many times I’ve heard or read the word “collapse” in reporting on this spiraling financial crisis.  On Monday, German media giant Der Spiegel ran a headline that read “Investors Prepare for Euro Collapse.”  The story said, “Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar’s structure isn’t in doubt.”  (Click here for the complete Der Spiegel post.)If the Euro goes down, the dollar will follow probably after a short spike.  This is just one of many recent examples of the fragility of the financial system.

There is too much debt and not enough growth or taxes to service it.  It’s the same problem almost everywhere on the planet.  Governments are just printing money to try and make the problem go away.  Egon von Greyerz, founder of Matterhorn Asset Management ($5 billion in assets), said this week, “This is why money printing is guaranteed in Europe, the US, UK and Japan.  History teaches us that a nation which runs large deficits and increasing debts could never create wealth in the long-run.  Wealth has never been created by printing money, and this time, like it has before, it will lead to a financial crash.  This time the financial crash will be of a worldwide magnitude.”  (Click here to read and hear the complete interview from King World News aka KWN.)

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