![]() Gold and silver demand has been raging this entire week as investors seek out protection and stability – two fundamental investment goals which traditional markets can’t deliver right now. The economic situation is deteriorating at such a rapid and uncontrollable rate that even investors who have been sitting on the sidelines this whole time are finally acting. There’s no proactive strategy to minimize the incoming blow which the American people will have to take head-on and suffer the consequences. All of their band-aid solutions are reactive and ineffective. It’s painfully clear that our financial leaders have no plan. The Fed is reaping the results of decades of feckless policies and lackluster attempts. Whenever markets seem to settle to their lowest, a new floor falls out from under the economy, plunging everything deeper into uncertainty and chaos. Interest rates further amp up inflation, and bailouts only reinforce bad banking practices. It’s tough to shake the thought as our financial “experts” are operating with the competence and composure of a headless chicken. ![]() The echoes of 2008 are reverberating across international markets as many fear a worldwide economic collapse. There’s absolutely no coordination between world leaders on this matter. While the European Central Bank increased interest rates by 50 basis points, the Fed is mulling over whether future rate hikes are the right move. Instead of moving in lockstep, the global financial elites are completely disjointed despite the immediacy and severity of the problem. The credit line is buying time until long-term solutions are implemented. ![]() Credit Suisse, one of the largest Swiss banks, was just injected with a $50 billion loan from Switzerland’s central bank. The contagion is spreading as the systemic issues toppling US banks are causing global institutions to buckle. – Eric Sepanek, Scottsdale Bullion & Coin Founder The Banking Collapse Spreads Globally Growing distrust in the banking system will yield greater withdrawals which force banks to realize massive bond losses due to poor Fed management. As a result, investors can expect to see much of the same moving forward. The precise variables that resulted in the failure of SVB underly thousands of other banking institutions in the US and beyond. In turn, sizable bank investments in bonds were diluted, causing many to default as depositors withdrew funds en masse. This directly resulted in record levels of inflation which the Fed sought to temper with aggressive rate hikes. Spending reached astronomical levels during the pandemic and the Biden admin has kept its finger on the print button ever since. The Federal Reserve has been operating under the grossly misguided assumption that printing more money is a risk-free solution to all the country’s woes. In reality, the faulty groundwork behind this collapse has been laid for over a decade. What Happened Exactly?įor many investors, it feels as though the entire banking industry was obliterated overnight. Watch this week’s The Gold Spot to hear Scottsdale Bullion & Coin Founder Eric Sepanek and Precious Metals Advisor John Karow explain what caused this disaster, how the contagion is spreading abroad, and why gold and silver demand is absolutely booming. The Silicon Valley Bank drama was merely a dress rehearsal for an entire banking system shakeup. Despite the Biden administration’s incessant reassurance that everything is a-okay, investors clearly see the economic dumpster fire through the fog of misdirection.
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