05-Oct (TraderPlanet) — In a September 20, 2015 interview, gold expert Bill Holter argued that the economic system is on the verge of a “financial calamity.”
Discussing the recent Fed decision not to raise interest rates, Holter said, “If we had an increase in interest rates. . .the markets would close within two weeks. . ..I don’t think there’s any way the Fed can tighten.” He sees more quantitative easing (QE) in the future, with QE in China because “they’re imploding.” Worse, after 80 months of 0% interest rates and massive printing of money, there is no recovery, let alone any expansion of global markets. He said, “Trade is slowing,” which means that “global GDP is slowing.”
Holter said, “They know they need to do another QE, but they know if they do that, they’ve lost all credibility.” Talk about raising interest rates, he argued, is an attempt to try to regain some credibility. Even as the mainstream media discusses how it will not be that bad if the Fed raises rates, Holter argues, “All that’s left is a reset. . ..The Fed is now helpless to stop the coming global financial calamity.”
Turning to gold and silver, Holter said, “I think this is the bottom. Can they push the price down again? It’s possible, but. . . . The physical market has hit a hard bottom.”
…Holter said, “If some type of an event happens today, you could wake up tomorrow and all of that gold could be cleaned out.” Owners of gold and silver won’t sell their gold or silver until you can give them a currency they can trust. Holter warned, “We will have a standard of living completely unthought-of of as possible.”
When credit shuts down, he warned, distribution shuts down. “This is not going to just be a financial problem, but a problem getting things you need to live.” Holter said, “These big stores get stocked up every single night. . . . The average store only has food for about two or three days. So, this is not going to just be an issue about you paying your bills. It’s going to break down so badly it is going to be an issue about whether or not you can get food.”
PG View: Obviously this is something we hope does not happen. However, the prudent investor is prepared!
Don’t think it could happen? Post-financial crisis books by the likes of Ben Bernanke and Tim Geithner reveal just how close we came to the abyss. We may not be so luck the next time.