In this video, we are going to discuss the economic indicators that show the true extent of the collapse we are already experiencing, and the fragility of the system that is propping up any semblance of normalcy we have left. We will show you what the experts are saying about where to put your money, and why precious metals may be one of the only safe options remaining.
There is no doubt that we’re all living difficult times. Uncertainty and insecurity have been a constant in our lives, and while the situation is getting worse to millions of Americans, the stock market has been hitting record highs and it seems to be still profiting during this storm. Every week, we have been reporting how the unemployment rates are sky-rocketing, but this time we’re going to be graphical about it, with updated data for you to clearly understand the dimension of this downfall.
Our goal here is not to make you lose your expectations about recovering from this crash, but to give you a realistic perception of the situation. We want to report you what the mainstream media is failing to share, whether because they want to give their version of the truth or because they’re hiding the real numbers and projections. The main point is to question ourselves: “why with over 30 million job losses and a crash in our economy, the Wall Street is still managing to ascend through a crisis that is literally tearing people’s lives?” or, in a shorter note: “to whom this crisis was created for?”
On the 20th of April of 2020, at around 2pm, something historic happened: WTI, short for West Texas Intermediate, crude oil futures traded at negative prices for the first time ever. From there, everything went downhill, and oil prices reached the impressive mark of negative $37.63 a barrel, which translates to a 300% crash. For perspective, this means that if you had bought the oil contract which traded at that price, you would have been paid $37,630, as the contract entailed the sale of a thousand barrels of crude. However, as expert Neil Irwin pointed out, “that is about five tanker trucks’ worth, so any joke about storing the oil in your basement will have to remain just that”.
The immediate reaction by many economics commentators to this bizarre event was to simply shrug it off as price adjustments to the collapsed demand for oil. Some also blamed it on lack of storage at the Cushing, Oklahoma delivery point. While this certainly isn’t false, it is a very simplistic way of looking at a complex market with many strong players. American and Saudi elites, in particular, have very significant stakes in oil production and market manipulation has become, over the years, a normal practice. In fact, meddling by powerful oil players is probably why most media outlets have not been very helpful in their reporting of the oil price crash. So, let’s take a serious look at what’s been happening in the oil market for the past few months, shall we?
For the last two months, we have been going through a global health problem and an economic crisis at the same time. many people alive today have never seen anything like this because right now many economies are coming to an halt and what is materializing in our eyes will be bigger than the great depression. This will end up being the most severe economic collapse in the history of the world. The stock market is already crashing at a pace that has not been seen in recent years. This has been so severe to a point where trading had to be halted several times in the last two weeks. The real estate industry is also at the verge of collapsing and this time it the crash will be bigger than what we had back in the 2008 financial meltdown. At the same time millions of Americans are losing their jobs and when all this is factored into the current economic turmoil, we have a perfect economic bomb that is about to blow up in our faces. This is just the beginning of another great depression!
Will Gold And Silver Replace The Dollar After The Economic Collapse?
The dollar based system had dominated the global trade for decades but with the current economic condition and the instability in the global financial system, questions are arising on whether the dollar will support this very changing monetary system. Many people feel insecure with the current system and in this video, we will look at some of the reasons why the dollar will collapse and a gold based system will take over the global trade and the whole monetary system. Before diving into this, lets first understand what is the collapse of the dollar means.
The collapse of the dollar will happen if the value of the US dollar plummets and those who will be holding dollar-based assets will have to sell them at a very low price. This includes foreign government and investors who own the U.S treasuries. Such a crash can happen if everyone is simultaneously selling dollar based assets and when no one is willing to buy, the price will fall further causing the whole market to panic. If such a crash occurs, the world will shift to assets that are dominated by anything else other than the dollar. Most likely, gold and silver will be the best alternative and this will usher in a new payment system that will be based on gold. This might not happen any time soon but based on the current trend, at one moment it will have to take place.
The Devaluation of the dollar has been happening for the last 70 years or so, especially after 1971. The devaluation of the dollar is a monetary phenomenon and typically driven by lowering interest rates by the federal reserve to increase credit and liquidity. From the moment of the launch of quantitative easing (QE), worried investors have asked, will the U.S. dollar collapse? There are some probable scenarios that might cause a precipitous crisis for the dollar. The most authentic is the dual-threat of high inflation and high debt, a scenario in which increasing consumer prices force the Fed to raise interest rates sharply. Much of the national debt is made up of relatively short-term instruments, so a spike in rates would act like an adjustable-rate mortgage after the teaser period ends. If the U.S. government struggled to afford its interest payments, foreign creditors could dump the dollar and trigger a collapse. A reset means the banksters will have to increase the price of the gold. They own tons of it so that they can cover their derivative positions … This reset is needed to hinder the most significant and fastest increase in global debt in half a century from exploding … But for the average middle-class family or pensioner on Social Security, it will mean “huge inflation”… As the reset will imply “an exponential increase in the quantity of money” by the Fed (meaning high inflation in the prices of everything) … Excluding for maybe “some food items” that are subsidized by the government to impede people “with pensions linked to the chained CPI” from literally starving!!
The coming economic collapse will be caused by rising debt levels. As the U.S debt tops $23 trillion dollar, the overheated economy is indicating the upcoming stock market crash that will make the 2008 financial crisis look small in comparison.
In this video, we will look at how the debt of United States has reached $23 trillion dollar in less than a century and how the rapidly rising debt levels have all the potential to be the trigger for the next big economic collapse. In order to understand the next dollar collapse, we need to understand the reasons that have caused economic collapse in the past, most importantly the stock market crash of 2008 because it is the closest example we have got of a financial crisis caused by modern day economic principles and financial products.
One of the major causes of the 2008 stock market crash was the default of sub prime mortgages, the housing sector collapsed and that triggered a chain reaction that quickly took down major financial institutions. It has been almost a decade since 2008 and global debt levels have sky rocketed, the debt of U.S has grown at the rate of almost $1 trillion dollar in the last few years and this no longer seems like a sustainable model to run the economy.
However in order to try and make some preventive and corrective actions to save the U.S economy, we need to understand the cause of the problem first and this video explains exactly how and why the U.S debt has risen so much that it has become the monster that will take this whole system down with it with a dollar collapse.
It is official now, the United States national debt has hit the 23 trillion dollar milestone, that’s twenty-three with twelve zeros after.
That’s a pretty staggering figure — $23 trillion dollars in debt and climbing every second of every day. And in order to give you an idea, that is basically every taxpayer is in debt for $186.576 dollars. And if you were to break it down evenly across every citizen in the United States including those who don’t pay taxes, every United States citizen is $69.735 dollars in debt. And the debt to gross domestic product ratio is now a 106.6 percent. That is very significant; for that ratio to be over a hundred percent, it means that it’s above and beyond 100 percent would be an equal right to the gross domestic product, but it’s now above it by six-point six percent. Unfortunately, the economic collapse always arrives eventually, and our future is looking extremely bleak at the moment. And as the argument goes, the more the debt spirals out of control, the more you’re going to have inflation, the more you’re going to have undisciplined frivolous spending. So a lot of different people will have a lot of different opinions when it comes to this subject, the more and more this national debt figure climbs. And as you know, nobody’s really doing anything to curtail it, not the FED, not the president, nobody.