18 Signs That Global Financial Markets Smell Blood In The Water

The Economic Collapse ^ | July 19, 2011 | Staff

[lbryce]

Can you smell it? There is blood in the water. Global financial markets are in turmoil. Banking stocks are getting slaughtered right now. European bond yields are absolutely soaring. Major corporations are announcing huge layoffs. The entire global financial system appears to be racing toward another major crisis. So could we potentially see a repeat of 2008? Sadly, when the next big financial crisis happens it might be worse than 2008. Back in the middle of 2008, the U.S. national debt was less than 10 trillion dollars. Today it is over 14 trillion dollars. Back in 2008, none of the countries in the EU were on the verge of financial collapse. Today, several of them are. This time if the global financial system starts falling apart the big governments around the world are not going to be able to do nearly as much to support it. That is why what is happening right now is so alarming. As signs of weakness spread, the short sellers and the speculators are starting to circle. They can smell the money.

Back in 2008, bank stocks led the decline. Today, that appears to be happening again. The "too big to fail" banks are getting absolutely pummeled right now. Most people don't have much sympathy for the banksters, but if we do see a repeat of 2008 they are going to be cutting off credit and begging for massive bailouts once again, and that would not be good news for the economy.

In Europe, the EU sovereign debt crisis just seems to get worse by the day. Bond yields for the PIIGS are going haywire. The higher the yields go, the worse the crisis is going to get.

[IamConservative]

That's a fair description of the Federal Government.

True indeed.

[bert]

In my view, the back breaking straw is in Europe, not America.

A European bank, perhaps Spanish or Italian will close and precipitate the panic

[Aevery_Freeman]

If you look carefully, the feral behavior has already started.

Buy a farm in a non-diverse area ASAP.

[Truth29]

"there will be two classes of people in such a scenario, those who scrounge for necessities and those who buy and sell gold. There will ALWAYS be a buyer for your gold somewhere. don’t kid yourself, gold is still the world’s real reserve currency no matter what Ben Bernanke says."

And the third category - Wolves with guns and ammunition.

[agere_contra]

Doctor! Operate on my appendix or I’ll blow your fracking head off!

When massive devaluation events occur - e.g. as we saw in Argentina - civilization doesn’t end.

There is turmoil and increased violence. A whole lot of people become criminals and prostitutes who would never have done so otherwise. The police become more corrupt. It becomes dangerous to stop at stop lights because of kidnappers. Everyone begins to carry knives and handguns. The Government becomes more arbitrary and draconian, if that were possible. All this is historically attested from real-world currency crises.

But people still buy and sell. If anything they gain an increased appreciation of true money and the value of hard assets. They especially prize precious metals. Why? Because Gold and Silver have the attributes of money: they can be bartered-for-anything and they don’t depreciate.

You won’t do yourself any particular harm by insisting on storing e.g. 15 years worth of provisions and weaponry - in fact that is an excellent set of precautions to take.

But if you need to buy the services of e.g. an engineer to repair your generator or a midwife to deliver your daughter’s baby then you find not everyone is happy to be paid in small bottles of whiskey.

[Dr. Thorne]

Gold and silver are only an insurance policy that should be owned by every thinking citizens against the possibility of an inflationary collapse. I have some, but I also have weapons, ammo and food stocks.

Precious metals are one more potentially useful (and maybe critical) item that we should stock in case of emergency. Anyone who puts all their money in gold and silver is acting foolishly.

[agere_contra]

The guy in your analogy just goes upstate to the chicken farm and buys 100 chickens for that gold silver coin.

How can he do this? Because there are many people who own chickens - each producing vastly more eggs and meat than they can possibly use themselves.

Of the thousand people who want to buy a chicken, 800 have Bernanke Clownbux, 100 have various retarded barter ideas and 100 have silver money. Which ones do you think are going to be the chicken farmer's favorite customers?

Don't forget: those people who own chickens have their own bills to pay - and their suppliers don't want to be paid in chickens. The paper money is losing 10% a day and fills a wheelbarrow. But silver and gold? They'll do nicely.

[xp38]

Oh there will be lots of categories....Here is another....Aggressive Australian homosexual motorcyclists

[orlop9]

Surfing the TV channels yesterday, I came across Kramer-recommending Gold-physical Gold. If that’s not a sign you’re late to the party, I don’t know what is.

[Nervous Tick]

>> I came across Kramer-recommending Gold-physical Gold.

ROFL! Time to sell your gold...

[Scotsman will be Free]

You forgot weaponry and ammo.

[Dick Vomer]

this is what they've always wanted

[darth]

I think ammo would be used like small denomination bills, e.g., five .22LR for a loaf of bread.

I can see a lot of barter taking place.

[Glenn]

The DJIA is up about 140 this morning.

Buyers are snatching up bargains.