How Will Gold Perform During The Next Global Financial Crisis?

http://kingworldnews.com/how-will-gold-perform-during-the-next-financial-crisis/

A possible explanation for the negative correlation between gold and the dollar may be found in the attribute as a safe asset in crisis situations. Although the dollar and gold may superficially be considered substitutable, a closer examination reveals a different picture. In local crises, the US dollar is seen as a desirable asset by many market participants because the survival of the fiat money system as such is not questioned.

It is different in the case of systemic crises. In these situations, confidence in fiat currencies and the banking system is shaken and many market participants pay heed to gold’s historical function as money. Particularly in systemic crises, gold is perceived to maintain its value, while paper money is in danger of becoming completely worthless.

'Gold' Spikes Off 2015 Lows As Gold Coin Sales Surge To Highest Since Financial Crisis

Soaring demand for physical gold against a backdrop of declining (paper) prices for gold--nothing to see here, folks...

http://www.zerohedge.com/news/2015-11-12/gold-spikes-2015-lows-gold-coin-sales-surge-highest-financial-crisis

The one common feature in every financial crisis

http://www.sovereignman.com/trends/the-one-common-feature-in-every-financial-crisis-17245/?inf_contact_key=aee7bca014152631fc6e3d1190c660af21f4cc30a2639e1d7f8633e76eedbef4

Chicago "Junking" Triggers $2.2 Billion Payment, Deepening Financial Crisis

http://www.zerohedge.com/news/2015-05-13/chicago-junking-triggers-22-billion-payment-deepening-financial-crisis

World heading for financial crisis worse than in 2008 — China’s Dagong rating agency head

Wow, truthiness from a credit ratings agency.  Too bad it came from a Chinese agency publishing their opinions on a Russia media outlet.

http://itar-tass.com/en/economy/775374

Big Banks and Derivatives: Why Another Financial Crisis Is Inevitable

http://www.forbes.com/sites/stevedenning/2013/01/08/five-years-after-the-financial-meltdown-the-water-is-still-full-of-big-sharks/

Hank Paulson: Another Financial Crisis Is 'a Certainty'

http://www.moneynews.com/FinanceNews/Paulson-crisis-financial-Fed/2013/09/13/id/525579

Paulson believes there will be another financial crisis.

"It’s a certainty. As long as we have markets, as long as we have banks, no matter what the regulatory system is, there will be flawed government policies. Those policies will create bubbles. They will manifest themselves in a financial system no matter how it’s structured and how it's regulated.

Financial Times: "World Is Doomed To An Endless Cycle Of Bubble, Financial Crisis And Currency Collapse

This is why I've been an avid reader of zero hedge.  They are always years ahead of mainstream media outlets in exposing the truth.

http://www.zerohedge.com/news/2013-08-28/financial-times-world-doomed-endless-cycle-bubble-financial-crisis-and-currency-coll

The Last Mystery of the Financial Crisis

Coincidentally, Warren Buffett's Berkshire Hathaway was a major shareholder of Moody's.  But we all know the octogenarian billionaire, the so-called Oracle from Omaha, walks on water when it comes to integrity, right?

http://www.rollingstone.com/politics/news/the-last-mystery-of-the-financial-crisis-20130619

U.S. to sue S&P over ratings ahead of financial crisis

If the US government is going to sue Standard & Poor's for NOT doing their job in failing to downgrade mortgage-backed bonds in 2007, will the US government also sue S & P for DOING their job in downgrading US Treasury debt?

http://ca.reuters.com/article/businessNews/idCABRE9130U120130204

Neil Barofsky: Another Financial Crisis All But Inevitable

Thanks to Kitty for finding this interview of Barofsky.

http://seekingalpha.com/article/874391-neil-barofsky-another-financial-crisis-all-but-inevitable

Gold, Silver, Corn, And Brent Are Best Performers On The 5-Year Anniversary Of The Great Financial Crisis

Gold bashers won't like this chart.

http://www.zerohedge.com/news/gold-silvercorn-brent-are-best-performers-5-year-anniversary-great-financial-crisis

Deutsche Bank: Worst of Global Crisis Yet to Come as Rescue Cash Runs Out Read more: Deutsche Bank: Worst of Global Crisis Yet to Come as Rescue Cash Runs Out

http://www.moneynews.com/StreetTalk/Deutsche-Bank-Worst-Crisis/2012/04/18/id/436303

Blame the Fed for the Financial Crisis

http://online.wsj.com/article/SB10001424052970204346104576637290931614006.html?mod=wsj_share_tweet

Greece financial crisis reaches new low - animated version

http://www.youtube.com/watch?v=B08ogd9FsmM&feature=player_embedded

Mobius Says Another Financial Crisis ‘Around The Corner’

http://www.bloomberg.com/news/2011-05-30/mobius-says-fresh-financial-crisis-around-corner-amid-volatile-derivatives.html

Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, said another financial crisis is inevitable because the causes of the previous one haven’t been resolved.

“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius said at the Foreign Correspondents’ Club of Japan in Tokyo today in response to a question about price swings. “Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”

The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10, said Mobius, who oversees more than $50 billion. With that volume of bets in different directions, volatility and equity market crises will occur, he said.

The global financial crisis three years ago was caused in part by the proliferation of derivative products tied to U.S. home loans that ceased performing, triggering hundreds of billions of dollars in writedowns and leading to the collapse of Lehman Brothers Holdings Inc. in September 2008.

Rick Rule - Silver Shortage Continues, Financial Crisis Looms

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/1_Rick_Rule_-_Silver_Shortage_Continues%2C_Financial_Crisis_Looms.html

Per Declassified Testimony, Bernanke Blames Blogosphere For Itemizing Disastrous Consequences Of His Actions, Says Goldman Is A Utility

http://www.zerohedge.com/article/declassified-testimony-bernanke-blames-blogosphere-itemizing-disastrous-consequences-his-act

http://www.knx1070.com/Fed--Full-Economic-Recovery-Could-Take-5-6-Years/7689645

The headline reads: "Fed: Full Economic Recovery Could Take 5-6 Years".

Gee, it took this long to finally admit it? Notice how financial TV (i.e. government mouthpiece) is spinning it as if they had called this all along. What about hope and change? What about green shoots? What about Keynesian stimulus? What about the V-shaped recovery? Oh, that's right: that's so five minutes ago.

http://www.knx1070.com/Fed--Full-Economic-Recovery-Could-Take-5-6-Years/7689645

Financial media and government economists are pathological liars. They missed the two biggest bubbles in human history: the internet bust and subprime mortgage crisis. At least the Fed is now making an attempt to restore its credibility, espousing fiscal discipline and responsibility. This call for austerity will last about 3 months.

It's an election year, after all, and states, counties and municipalities are going belly up. Don't be surprised if a financial crash is engineered, as justification for a gargantuan bailout in the trillions. Indeed, "We're the government; we're here to help."

The government expects us to have the memory of a gnat, so it would not surprise me if they will use another financial crisis to help us forget cries for fiscal and monetary discipline. This time it won't be banks that are too big to fail. It will be states too fat to starve. Wash, rinse, repeat...

BIS warns financial system vulnerabilities

Speaking of the BIS, their report warns of another impending financial system collapse if structural debt problems aren't treated.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/6/28_Secretive_and_Powerful_BIS_Annual_Report_Released.html

“When the transatlantic financial crisis began nearly three years ago, policymakers responded with emergency room treatment and strong medicine: large doses of direct support to the financial system, low interest rates, vastly expanded central bank balance sheets and massive fiscal stimulus. But such powerful measures have strong side effects, and their dangers are beginning to become apparent.”

“Here are the worst problems arising now from the continued use of the extraordinary programmes: Direct support is delaying vital post-crisis adjustment and runs the risk of creating zombie financial and non-financial firms. Low interest rates at the centre of the global economy are discouraging needed reductions in leverage, thereby adding to the distortions in the financial system and creating problems elsewhere.”

“The sustained bloat in their balance sheets means that central banks still dominate some segments of financial markets, thereby distorting the pricing of some important bonds and loans, discouraging necessary market-making by private individuals and institutions, and increasing moral hazard by making it clear that there is a buyer of last resort for some instruments. And the fiscal stimulus is spawning high and growing government debt that, in a number of countries, is now clearly on an unsustainable path.”

“The financial disruptions in the first half of 2010 have brought the fragility of the industrial world’s financial system into stark relief: a shock of virtually any size risks a replay of the events we saw in late 2008 and early 2009. The sovereign debt crisis in Greece is clearly jeopardising Europe’s nascent recovery from the deep recession brought on by the earlier crisis.”

“Unlike then, however, we have hardly any room for manoeuvre. Policy rates are already at zero and central bank balance sheets are bloated. Although private sector debt has started to decline, public debt has taken its place, with sovereign fiscal positions already on an unsustainable path in a number of countries. In short, macro-economic policy is in a vastly worse position than it was three years ago, with little capacity to combat a new crisis – it will be difficult to find a source of further treatment should another emergency arise. Regaining the ability to react to economic and financial crises, by putting policies onto sustainable paths, is therefore a priority for macroeconomic policy.”