Taking into consideration key data points like demographics, consumer consumption, unemployment trends, government debt, monetary policy, and widespread manipulation, a frightening end-game scenario begins to emerge.
With rampant fraud throughout the financial system and price fixing of unprecedented proportions in global stocks, commodities, interest rates, business loans, mortgages and personal loans, it is only a matter of time – perhaps one to four years according to Ameduri – before all of the machinations engaged in by governments, central banks and their financial industry cohorts to stabilize the system does exactly the opposite. The panic of 1929 will be a walk in the park compared to the utter pandemonium we will witness as the entire way of life we have come to know over the last three decades crumbles before our eyes.
As Zero Hedge notes, The Economic Collapse for Dummies is “everything you wanted to know about the inevitability of a major economic collapse but were afraid to ask.”
[Watch the full video below]
It is likely that the entire financial system will collapse in one to four years. It is likely that the deflationists theory is right and there will be a collapse… Those concerned about a currency crisis and hyperinflation will likely have their conviction shaken to the core in the very near future.
We do not believe we will slip into an out of control hyperinflationary scenario. Instead it will be a deflationary collapse followed by a currency crisis. However, this will be a worldwide currency crisis. You won’t be safe even if you’re heavily invested in Euro or pacific currencies.
Soon the stock market will collapse; the volume is anemic and the entire rally we have seen is nothing more than a Fed money printing rally… There is no driver for jobs and no driver for a continuous bull market…. The game is up. The 401(k) experiment that started in the 1980′s will fail as portfolios collapse and everyone holding their funds realizes that all the buyers of the last three decades are now sellers.
… As selling pressure mounts, equities will crash. And when they do, so will gold and silver. The need for liquidity and the sale of stock will create a demand for dollars like the world has never seen…
… Of course, what is to follow is a massive flood into hard assets as the central banks around the world print on a global level – or as economist Mike Krieger calls it, The Big Print.
Between the fundamentals of the US economy being in shambles and the central banks printing, the perception and confidence on the US dollar will force a run on fiat currencies.
Forget about one trillion dollar deficits. It will take that just to help cover the mandatory spending. We will soon see two to three trillion dollar deficits. And, as the national debt soars past twenty, twenty-five, thirty trillion dollars… this type of parabolic move will unleash the fiat currency crisis hyperinflationists have been warning us about.
… Ultimately those investors who cashed out for the deflationary scenario will be holding worthless fiat currency. Watch for the signs, because they should be apparent soon. In fact, we are already seeing global economic growth and consumer spending hitting a standstill. Once investors around the world realize that the market rally of the last three years is nothing more than a fantasy based on lies and skewed statistics, the run to safety will begin. This will put extreme pressure on the global financial system as a whole, as trillions of dollars exit stocks and traditional investment vehicles for the perceived safety of U.S. dollars.
But that perception of safety in US government based debt assets will be short lived. As we noted in Predictions of a Mad Tin Foiler, and as Future Money Trends outlines above, confidence in the US dollar will quickly be replaced with panic as the United States itself is unable to service its debt and meet the social obligations of an evermore dependent and dilapidated citizenry.
Confidence will be lost.
Then, all hell breaks loose and we enter what we can only described as the ‘Event Horizon,’ a scenario which is totally unpredictable as our existing paradigm of spending and consumption falls apart, being replaced with riots, violence, starvation and bloodshed and the likely deployment of the United States military as a state of emergency is declared in major metropolitan areas across the country.
What happens next is anybody’s guess, but we can say with confidence that if you haven’t taken steps to prepare prior to the Event Horizon, it’ll be too late.