that could potentially cause the 441 trillion dollar interest rate derivatives bubble to implode. As John Embry recently told King World News, that would be “disastrous” for the global financial system…
Interest rates have already risen dramatically, so any tapering will simply throw gasoline on that fire and torch the banking system which is up to its eyeballs in interest rate derivatives. This would be disastrous for the entire financial system.
Someone recently suggested that there was already a $4 trillion hole in the European banking system (NASDAQ:EUFN). If we look at the Japanese situation, that is totally unstable as well. So the destruction of paper money will only accelerate, and this is what you are seeing reflected today in the prices of gold and silver.
We also have this shortage of physical gold, which is reflected by the fact that the gold lease rates have been negative for 25 consecutive days. We then had the revelation that the Bank of England had dumped a staggering 1,300 tons of physical gold into the market that they were supposed to be safely storing for other countries. The Bank of England wouldn’t even comment, they just pleaded the 5th.
Hopefully these Hindenburg Omens will pass and nothing will happen.
Hopefully the yield on 10 year U.S. Treasuries will not continue to rise.
But you know what they say – hope for the best but prepare for the worst.
I hope that you are getting prepared for the worst while you still can.
This article is brought to you courtesy of Michael Snyder.