$11.7 Trillion IMF Warning & Bank Cover Up
Billionaires, Banks & Hedge Funds Rush to Prepare for Global Financial Failure
The International Monetary Fund just issued a dire warning:
1 out of 3 major banks will not survive.
Even if economic recovery is strong & interest rates rise – the IMF says 1 out of 3 major banks will fail… Sending an $11.7 trillion-dollar shockwave through the global economy.
This while CNBC reports that major investment banks are preparing for a “worst-case scenario” event by the end of the year (they’re calling it a “banking nuclear winter”).
And let’s not forget the TRILLIONS in debt governments worldwide have taken on since 2008. Or how they’re paying off debt with more debt (like paying off a credit card with another credit card!).
And that’s just the tip of the iceberg.
Barclay’s warns stock prices are pumped up by over $2 Trillion dollars.
Why?
Because public companies have borrowed The Fed’s “cheap money” and used it to re-purchase their own stock. That means companies have added $2 Trillion of debt… And at least $2 trillion of stock market “gains” were NOT created by earnings growth but by fancy “financial engineering.”
As a matter of fact, when it comes to earnings, Goldman Sachs just lowered its projections for the entire S&P 500… for the next 3 years.
Anyone want to guess what happens to these “phantom” stock market gains when corporate debt goes up while earnings go down?
Too Many “Insider” Warnings to Ignore?
James Dale Davidson, the economist who warned everyone before the collapse of 1999 and 2007 says a 50% stock market collapse is “already at our doorstep.”
Economist Andrew Smithers, who predicted the 2008 financial crisis, warns: “U.S. stocks are now about 80% overvalued.”
And former Federal Reserve Chairman Alan Greenspan says "This is the worst period I recall... There's nothing like it, including the crisis.”
Billionaire investor Jeffrey Gundlach told Reuters when it comes to stocks & bonds: “Sell everything.”
Billionaire investor Jim Rogers warns that a “$68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans.” And billionaire investor Stanley Druckenmiller says simply “Get out of the stock market.”
After cutting his stock holdings by 37%, billionaire investor George Soros says "there is a serious challenge which reminds me of the crisis we had in 2008."
And billionaire investor Mark Faber told CNBC “investors are on the Titanic” and stocks are about to “endure a gut-wrenching drop that would rival the greatest crashes in stock market history.”
It seems like everyone on the “inside” is preparing for a stock market crash and bank failures. The question is “How?”
How are they planning to survive this “economic apocalypse?”
We discovered exactly what steps 8 billionaires (at least), most hedge fund managers and every major bank are taking to prepare.
Given all the banker rhetoric – you may be surprised what the answer is.
Banks Cover Up Massive Buying
What are financial “insiders” buying up hand-over-fist in preparation for one of the worst events in economic history?
First there’s the billionaire investors… Jim Rogers, Mark Faber, George Soros, Stanley Druckenmiller, Bill Gross, Jeffrey Gundlach, John Paulson & Carl Icahn.
They’re all investing billions into the same asset to prepare.
Then there’s the banks… banks are gobbling this asset up faster than anyone else. A bit surprising because for years they’ve been telling us it is not even an asset.
They’ve made fun of those who invest in this asset… calling it an “ancient relic” with no real-world value.
But I guess when it comes to banks, it’s more important to watch what they do than listen to what they say.
What they say is a distraction – something to keep our eyes off the only asset that will survive what’s coming.
The 1 Asset Banks & Billionaires Are Buying Today
We’re talking about physical gold.
Goldman Sachs, when speaking to their wealthiest clients says:
“With equity markets near all-time highs and interest rates near all-time lows, we believe now might be a particularly good time to diversify portfolios with alternatives.”
Billionaire investor Stanley Druckenmiller has a hedge fund track record that is unmatched. He has generated annualized returns of 30% during his investment career (Buffet generates a little under 20%).
He referred to his gold holdings recently stating: "Some regard it as a metal, we regard it as a currency and it remains our largest currency allocation."
Jim Rickards warns us though: "Physical gold is very scarce; when the price really does break upwards, you're not going to be able to get it. The time to get it is now.”
That’s because there are $100 of paper gold for every $1 of physical gold.
That means "When everyone wants to convert their paper to physical (gold)...there's not going to be enough to go around" Rickards said.
Fortunately, thanks to an “IRS Loophole” you can still own gold while legally avoiding a 38% tax (if you follow the rules). There’s even a downloadable guide to show you how it works.
If you’re interested in growing your wealth through the coming crisis, click the button below now to review the IRS rules and see if gold or other precious metals have a place in your financial plan.