In my last post on Sprott Money, I pointed out the frightening truth: the ECB is strongly considering eliminating the €500 bill from circulation, reducing their physical money pool by approximately 30% in one fell swoop.
The ramifications of this are scary, to say the least. We know that central banksters are hell-bent on managing as many aspects of our financial lives as possible. The ability to eliminate physical cash from our modern-day society would grant them unquestionable control and the ability to steal at will whenever a crisis arises.
Mario Draghi knows this, the ECB knows this, and the FED knows this. Sadly, the masses do not and are utterly unaware of what is happening behind the scenes – actions that are destined to change our course in history forever.
If the ECB is successful in eliminating the €500 note, then the €200 is next, followed by the €100 and then the entire cash system itself – they hate it all and will not stop until we are on a cashless, electronic-based system.
The environment that this new system paints is scary enough as it stands, yet if you think that European bankers are alone in their quest for a cashless system, then you are horribly mistaken.
Western Central bankers know the control that such a system would create. They know the power that they are set to gain and are frothing at the mouth to obtain it...
Gold and silver analyst Bix Weir says the next huge financial calamity all starts with “a mass awakening followed by chaos.” Weir contends, “People keep asking how will the people wake up? . . . . The moment that happens is when the banks fail, and they go to their ATM’s. . . . They are going to be very angry. . . . They will believe these banks will have stolen their life savings. That’s when people will wake up in mass amounts.”
When all this happens you should have physical gold and silver—especially silver. Weir explains, “Silver has been used as money for 5,000 years, even more than gold has been used as money. Above ground silver and above ground gold are about 6 billion ounces each—total. Why is there an 80 to 1 ratio in price of silver to gold? It’s the computers and the market rigging that has been going on since the 1970’s. . . .Silver will be the last released in manipulation because it is so important. It’s a national security issue. . . . The price of silver today in U.S. dollar terms should be one to one with the price of gold. After the shakeout it will be a 4 to one ratio.”
After a series of stunning declines through the month of January and the first half of February, global financial markets seem to have found a patch of relative stability at least for the moment. But that does not mean that the crisis is over. On the contrary, all of the hard economic numbers that are coming in from around the world tell us that the global economy is coming apart at the seams. This is especially true when you look at global trade numbers. The amount of stuff that is being bought, sold and shipped around the planet is falling precipitously. So don’t be fooled if stocks go up one day or down the next. The truth is that we are in the early chapters of a brand new economic meltdown, and I believe that all of the signs indicate that it will continue to get worse in the months ahead. The following are 21 new numbers that show that the global economy is absolutely imploding…
#1 Chinese exports fell by 11.2 Percent year over year in January.
#2 Chinese imports were even worse in January. On a year over year basis, they declined a whopping 18.8 Percent.
#3 It may be hard to believe, but Chinese imports have now plunged for 15 Months In A Row.
#4 In India, exports were down 13.6 Percent on a year over year basis in January.
#5 In Japan, exports declined 8 Percent in December on a year over year basis, while imports plummeted 18 Percent.
#12 Orders for Class 8 trucks in the United States dropped by 48 Percent on a year over year basis in January.
#13 Due to a lack of demand for trucks, Daimler just laid off 1,250 U.S. Workers.
#14 Even though Saudi Arabia and Russia have agreed to freeze oil production at current levels, the price of U.S. oil has still fallen Below 30 Dollars A Barrel.
#15 It is being reported that 35 Percent of all oil and gas companies around the world are at risk of falling into bankruptcy.
#16 According to CNN, 67 oil and gas companies in the United States filed for bankruptcy during 2015.
#17 The number of job cuts in the United States skyrocketed 218 Percentduring the month of January according to Challenger, Gray & Christmas.
#18 All over America, retail stores are shutting down at a stunning pace. The following list of store closures comes from one of my Previous Articles…
-Wal-Mart is closing 269 Stores, including 154inside the United States.
-The Gap is in the process of closing 175 Stores in North America.
-Aeropostale is in the process of closing 84 Stores all across America.
-Finish Line has announced that 150 Stores will be shutting down over the next few years.
-Sears has shut down About 600 Stores over the past year or so, but sales at the stores that remain open continue to fall precipitously.
#19 The price of gold is enjoying its best quarterly performance In 30 Years.
#20 Global stocks have fallen into Bear Market Territory, which means that about one-fifth of all global stock market wealth has already been wiped out.
#21 Unfortunately for global central banks, they have pretty much run out of ammunition. Since March 2008, central banks have cut interest rates 637 Timesand they have purchased a staggering 12.3 trillion dollars worth of assets. There is not much more that they can do, and now the next great crisis is upon us.
Without any outside influences, the global economy and the global financial system will continue to rapidly fall apart.
But if we do have a major “black swan event” take place, that could cause the bottom to fall out at any moment.
The U.S. and world markets will crack in 2016. This will be due to the extremely low price of oil. There is a possibility that oil will drop below $20 as storage levels increase towards capacity in the United States. Already oil storage at Gulf Coast and Cushing, Oklahoma are at 85% capacity (source).
I sat down with Kenneth at Crush The Street and discussed how the low price of oil will be the factor that sends the U.S. and world stock markets lower in 2016, while pushing up the values of the precious metals. This is a very strange situation as history has proven that gold and silver tend to increase with a rising oil price. However, the falling oil price is destroying energy and commodity producing countries and their currencies.
Investors worried about the continued decline of currencies throughout the world are finding precious metal investment as a safe haven.
