Financial writer David Morgan says the global economy is cracking. Things such as shipping, manufacturing, retail and real estate sales are all headed down. Morgan contends, “What you are starting to see is those little rumblings that happen before the big tremor. That’s an analogy, but that’s what we are starting to see. . . . Nothing is more important than the debt markets and what is going to happen in the future.”
Morgan thought a financial crash would occur last fall. We may not have gotten a total crash, but Morgan says it has certainly started and charges, “Mathematically, it is a certainty. Secondly, the biggest knowledge from monetary history is that no fiat currency can go on indefinitely. They have all failed—100%. So, will the dollar continue indefinitely—it won’t. The hard part is saying when, but it will take place. The analogy on that is sort of like an avalanche. When it starts, it actually starts to move rather slowly, but it is a mass, mass times velocity. So, what happens is it starts kind of slow, so slow you might not even notice it. Then it starts picking up speed and picking up speed, and then bang, it goes from slowly to quickly. Most crashes are taking place. It is taking place, but what people don’t notice is it is moving or moving against them. It’s going to hurt them, and they aren’t aware of it until it is too late. Once it picks up speed, and it picks up speed so rapidly thatbefore you know it, they are buried. I think that is a good analogy for where we are now. . . . I think the avalanche started in September.”
Morgan says the Fed is on the back side of the power curve. What does he mean by that? Morgan explains, “Things are really at a standstill. This is really the biggest fear the Federal Reserve has. It’s called pushing on a string. If you push on a string, nothing happens. They have tried forever to stimulate the economy by increasing the debts, by increasing credit. The credit has all gone to the banks. Having an aeronautical background and flying for many years, it’s called the backside of the power curve. It means no matter what airplane you are in, when you get to a certain point and stall out, no matter how much power you give it, you are going to stall and you are going to fall. You are either going to have enough altitude to recover or you are going to crash into the ground. This is a perfect analogy for where we are now . . . I am not sure we have enough to recover this time. The Fed has been printing and printing and printing, which is the equivalent of pushing the pedal to the metal . . . and we haven’t got out of this mess, and you know it and I know it.”
Financial expert David Morgan says the Fed is on the back side of the power curve. What does he mean by that? Morgan explains, “Things are really at a standstill. This is really the biggest fear the Federal Reserve has. It’s called pushing on a string. If you push on a string, nothing happens. They have tried forever to stimulate the economy by increasing the debts, by increasing credit. The credit has all gone to the banks. Having an aeronautical background and flying for many years, it’s called the backside of the power curve. It means no matter what airplane you are in, when you get to a certain point and stall out, no matter how much power you give it, you are going to stall and you are going to fall. You are either going to have enough altitude to recover or you are going to crash into the ground. This is a perfect analogy for where we are now . . . I am not sure we have enough to recover this time. The Fed has been printing and printing and printing, which is the equivalent of pushing the pedal to the metal . . . and we haven’t got out of this mess, and you know it and I know it.”
This week we talk about the impending return of the gold bull, and David reminds us that there is no fever like gold fever! Other topics of discussion are the mining equities and metal price manipulation. You don’t want to miss this year end wrap up, with David’s predictions for 2016 and beyond!
Seduced by silver at the tender age of 11, David Morgan started investing in the stock market while still a teenager. A precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems ahead and reasons for investing in precious metals.
Wall St for Main St interviewed David Morgan, who is the editor of The Morgan Report and the co-author of The Silver Manifesto. In this podcast, we discussed the current state of the silver/gold market including the precious metals stocks. Also, we talked about Glencore and the impact it could have on the economy and commodities market. Plus much more!
David is a A precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.
David considers himself a big-picture macroeconomist whose main job is education—educating people about honest money and the benefits of a sound financial system.
Just consider the following statistic. THE TOP TEN LARGEST ECONOMIES IN THE WORLD ARE ALL IN A BEAR MARKET, OR ENTERING ONE -
The DOW is off 2,000 points from its high. China is at a 78-month low, off by 40%. Japan is off 3,000 from its peak. Germany is also off UK is off 16%. France is down 18% Brazil is off 12,000 points since their peak. Italy is down 50%. Indian stocks are down 4,000 points. Russia is off about 10%.
So, is the shit about ready to hit the fan? David certainly believes so. In one of the most comprehensive interviews we have ever done, David discusses precious metals, PM stocks, monetary policy, and Volkswagen's effect on the PMs!
A precious metals aficionado armed with degrees in finance and economics as well as engineering, David Morgan created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.
