As I have been warning, the world's stock markets are continuing to plunge with the futures sharply lower this morning. The Euro continues to plunge while the Yen is worryingly strong. Commodities are continuing to fall. Money market rates are beginning to rise again in Asia.
What we are witnessing is the implosion of the world's financial and capital markets which will result in meltdown.
No currencies (with the possible exception of the Swiss Franc but don't bet on it) are going to survive this collapse without massive devaluation. Exchange rate volatility is making international trade almost impossible. We are watching the system implode - it is collapsing in on itself - and the effect is to further fuel the collapse. There is no power on earth capable of reversing this; all that is uncertain is timescales. This week could see capitulation on the stock exchanges with further bank failures around the world to follow.
There has never been an economically more dangerous time in the history of money and finance. This is completely uncharted territory and nobody can predict what will happen.
The biggest issue facing the world will be the rule of national and international law, and the protection of the property rights of individuals. With such an upheaval, it might be impossible for governments to protect their citizens. Martial Law is a real possibility even in G7 countries. This is the time to protect yourselves and your families. You DO need to keep a good sum of cash (i.e. banknotes) in your home. If you can, get a mix of currencies. Gold is well worth considering if you can find any at a reasonable price but remember, gold is under political control so there are risks.
Watch very carefully the military situation in the Middle East right now. This is a very dangerous time.
I will be watching this happen in real time and will post as often as I have something worth saying. Some of you will remember a slogan from an old civil defence campaign.... "Protect and Survive". Exactly.
For those who are interested, I have produced a short Gold buyer's guide which is on sale at http://www.3r.co.uk/gold
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