MARKETS ARE NOW MORE EMPTY IN BLEXIT AND TRUMP’S ELECTIONS:
What will happen to you when your savings and retirement account are completely worthless? Gold is the only asset that cannot be created. It must be excavated and extracted from the ground by natural means. Despite all the prospects, the United States has elected Donald Trump as its new president, and no one can predict how the next four years will pass. As commander-in-chief, Trump now has the power to declare nuclear war and no one can legally stop him. Britain has left the EU, and other European countries plan to follow suit. No matter where they are in the western world, uncertainty is in the air like never before.
THE GOVERNMENT NOW HAS EYES ON OTUJKA’S ACCOUNTS:
In 2010, Portugal seized pension account assets to help tackle government deficits and debt. Ireland and France did the same in 2011, as did Poland in 2013. The US government observed this. Since 2011, the Treasury has taken money from state pension funds to cover the deficit in federal spending for four separate reasons. Billionaire investor legend Jim Rogers believes private accounts will be the next that government actions take.
TOP 5 US banks NOW GREATER THAN BEFORE THE CRISIS:
You learned about the five largest banks in the U.S. and their systemic importance as the financial crisis threatened to bring them down. Lawmakers and regulators have vowed to address the issue once the crisis is over. In the five years since the end of the crisis, the five largest banks have been even larger and more critical of the system than before the crisis. The government exacerbated the problem when it forced some of these so-called banks “too big to fail” to absorb those that are failing. Any of these bank behemoths that fail now would be absolutely catastrophic.
DERIVATIVE DANGER THREATENS BANKS NOW MORE THAN 2007/2008:
Derivatives that toppled banks back in 2008 have not disappeared as promised by regulators. Today, the exposure of derivatives of the five largest American banks is an incredible 45% higher than before the economic collapse of 2008. The derivative bubble amounts to over 273 trillion dollars compared to 187 trillion dollars in 2008.
AMERICAN INTEREST IS ALREADY IN ABNORMALLY LOW DIMENSIONS, SO THE FED HAS A FEW ROOMS FOR PRICES:
Even after the increase in interest rates once last year, the rate of federal funds is still in the range of ¼ to ½ percent. Note that before the outbreak of the crisis in August 2007, interest rates on federal funds were 5.25%! In the next crisis, the Fed will have less than half a percentage point, and can cut rates to stimulate the economy.
AMERICAN BANKS ARE NOT A SAFE PLACE FOR YOUR MONEY
Global Finance magazine publishes an annual list of the world’s top 50 safest banks. Only 5 of them are based in the US. The first place the American bank commands is only # 39.
FED BALANCE SHEET IS STILL EXPANDED FROM THE FINANCIAL CRISIS 2008:
The Fed still has nearly $ 1.8 trillion in mortgage-backed securities in its 2008 financial crisis balance sheet. That’s more than double the less than $ 1 trillion it held before the crisis began. When mortgage-backed securities fail again, the Federal Reserve has far less maneuverability to absorb bad assets than before.
FDIC ACKNOWLEDGES THAT THEY HAVE RESERVES TO COVER ANOTHER BANKING CRISIS:
The latest FDIC annual report shows that they will not have sufficient reserves to adequately insure national bank deposits within at least five years. This stunning discovery acknowledges that I can only cover 1.01% of a deposit in a U.S. bank or $ 1 for every $ 100 of deposit in your bank accounts.
LONG-TERM UNEMPLOYMENT IS EVEN HIGHER THAN BEFORE THE GREAT RECESSION:
Unemployment was 4.4% in early 2007 before the last crisis. Although the unemployment rate has finally reached 4.7%, as seen as the financial crisis began to plague the US economy, long-term unemployment remains high and the employment participation rate significantly lower more than five years after the end of the previous crisis. Unemployment could be much higher after the coming crisis.
AMERICAN COMPANIES DID NOT FAIL IN RECORD PLACE:
In early 2016, Gallup CEO Jim Clifton announced that U.S. business failures were now greater than new business startups, for the first time in more than three decades. The lack of medium and small business has huge implications for the economy that has long been run by free enterprise. Even larger companies are not immune to problems. Even U.S. economically heavy weights like Microsoft (cutting 18,000 jobs) and McDonald’s (which closes 700 stores a year) suffer from this grim trend.