Money

The time of easy gains in markets is now over. With the Fed and other central banks tightening and with the 35 year interest cycle having turned up, the party is over.

In a recently published article, Nouriel Roubini, one of the most trusted economists on the planet, predicts: “By 2020, the conditions will be ripe for a financial crisis, followed by a global recession.” He states ten reasons for his prediction.

The end of an empire is a dramatic but also drawn out event with very few willing to face the facts. As the end is getting closer, denial is at its peak. We can probably figure out how it will end but not quite when. Looking at the facts, the beginning of the end is here.

Hungary’s central bank increased its gold reserves 10-fold, citing the need to improve its holdings’ safety, joining regional peers with relatively high ownership in the European Union’s east.

The coming gold and silver surge is guaranteed. It is not a question of IF but only WHEN. Initially, the imminent revaluation of the precious metals will have nothing to do with an investment mania but with the total mismanagement of the world economy. A spectacular rise in the metals is just a reflection of the mess the world is in.

With global investment markets standing at crossroads, investors have the option to lose it all or to benefit from the biggest wealth transfer in history.

Dominique Strauss-Kahn, Ray Dalio, Jeffery Gundlach and Nouriel Roubini all share pessimistic views. Let’s examine together the basic economic reasons for their thinking.

In every crisis there is opportunity. The Greek word for crisis means to separate or sift and only keep what is worthwhile. And this is what the investors who want to survive the coming crisis must do. Get rid of all bubble assets AND BUY HARD ASSETS.

Many emerging markets are now turning to submerging markets as country after country is experiencing falling economies, currencies and stock markets.

The world is less well equipped to manage a major financial crisis today than it was a decade ago, according to Dominique Strauss-Kahn, a former chief of the International Monetary Fund (IMF).