"Trump Candidacy Is Sign of a Falling Empire and a Rising Resource Market
Source: Karen Roche of The Gold Report (2/18/16)
Bob Moriarty Dramatic daily moves in the U.S. dollar, gold prices and the larger markets are pointing to a global banking collapse that will send resource prices higher in 2016, according to 321gold.com founder Bob Moriarty. In this interview with The Gold Report, he shares his insights on how mining equities will react and five names he is watching."
Whilst the "penny dreadfuls" offer the greatest upside potential & risk.
https://www.streetwisereports.com/pub/na/16889…
It's only a matter of time. But it has to be a crisis that overwhelms the CBs.
Deutsche Bank, for instance, has $65 trillion ($65T) in derivatives. In February 2002, the total worth of derivatives in the world was about $100T. Now, one single bank has $65T in derivatives. It almost certainly is going to collapse. When it does, it's going to bring down the entire banking system.
TGR: Do you see this as a repeat of 2009 or a build-up of an entirely new bubble?
BM: It's the same thing. It's derivatives, and it's $65 trillion, not $65 billion. The number is so big that it pretty much guarantees the system has to fail, and nobody wants to talk about it. You don't hear a lot of discussion about derivatives in reality because most people don't know what they are. But a quarter-point change in the interest rate would be enough to cause total collapse. We have painted ourselves into a corner financially, and there is no way out. We have to have a collapse, not because anybody wants to but because governments have done so many foolish things. You cannot spend your way to prosperity.
TGR: Last time, the banks were bailed out. What do you see happening this time?
BM: They're going to collapse. The governments, the Federal Reserve and the European Union have all used every tool that they have. There are no more bullets left. It's going to collapse. They should have let that happen in 2008. It wouldn't have been the end of the world. We would've just had to clean up the banking system. What we're doing is playing hot potato. All those bad mortgages just got transferred to the backs of the taxpayers. They're never going to get paid off. They are bad debts. The world is awash in debt, and we need to reset the system.
BM: There are so many different news events—China crashing, the yuan devaluation, Japan crashing, Deutsche Bank going under, Glencore International Plc (GLEN:LSE) going under, the Baltic Dry Index going below 300. These are all catastrophic if you look at them individually, and then you realize that every single day you can go to CNN or the Drudge Report and see more examples. Monumental changes are taking place four, five or six standard deviations from the norm. Soon, we'll hit critical mass and no one will be able to deny it.