These Two Assets Show Us a Crash is Coming

By: Graham Summers
GoldSeek.com
Thursday, 23 April 2015

If the foundation of the financial system is debt… and that debt is backstopped by assets that the Big Banks can value well above their true values (remember, the banks want their collateral to maintain or increase in value)… then the “pricing” of the financial system will be elevated significantly above reality.

Put simply, a false “floor” was put under asset prices via fraud and funny money.

Consider the case of Coal.

In the US, Coal has become a political hot button. Consequently it is very easy to forget just how important the commodity is to global energy demand. Coal accounts for 40% of global electrical generation. It might be the single most economically sensitive commodity on the planet.

The Rest…HERE

This entry was posted on Thursday, April 23rd, 2015 at 11:35 am and is filed under Economics, Energy, Oil. You can follow any responses to this entry through the RSS 2.0 feed.