The 2008 Crisis Was Not THE Crisis Of Our Lifetimes… THIS IS.

Thursday, August 20, 2015
By Paul Martin

By Graham Summers
GoldSeek.com
Thursday, 20 August 2015

Many investors believe that the 2008 Crisis was THE Crisis of their lifetimes.

They are mistaken.

The 2008 Crisis was a stock and investment bank crisis. But it was not THE Crisis. It was just Round One.

Round Two, or THE Crisis, concerns the biggest bubble in financial history: the epic Bond bubble… which, as it stands, is north of $100 trillion.

To put this into perspective, the Tech Bubble was about $15 trillion in size. The Housing Bubble, which triggered the 2008 Crisis, was about $30 trillion in size.

The bond bubble today is over $100 trillion. And if you include derivatives that trade based on the prices of bonds, it’s $555 trillion.

So we are talking about a problem that is exponentially larger than anything you or I have seen before.

How is this possible?

By way of explanation, let’s consider how the current monetary system works…

The current global monetary system is based on debt. Governments issue sovereign bonds, which a select group of large banks and financial institutions (e.g. the Primary Dealers in the US) buy/sell/ and control via auctions.

These financial institutions list the bonds on their balance sheets as “assets,” indeed, the senior-most assets that the banks own.

The Rest…HERE

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