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Let me cut right to the chase: This year, the global financial markets … entire economies … and even political systems and philosophies — will spiral out of control.
We will hit the back wall of the financial hurricane that started in 2008. And we will also be hit by another ramping up of the related war cycles.
It won’t be pretty. It will affect everything you do. Everything you own. Every investment you make. Your lifestyle. Your children and grandchildren’s future.
No, I am not being an alarmist or screaming fire in a packed theater. I am merely telling it like it is, for if you understand the forces that are now converging upon the world, you will see the same things coming that I do.
Just take a look around:
 Financial markets are swinging wildly. Everything from stocks and bonds, to commodities are now on a roller coaster. Whenever that happens, it means something big is coming.
Big moves that could destroy your wealth in a heartbeat. Or, big moves that you can capitalize on. The choice is yours.
 Entire economies are quaking. Europe is the worst of them. But there are problems in China (though they won’t derail China’s growth). There are problems in Australia, Canada, Great Britain. In Brazil, Argentina, Mexico, Venezuela.
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| Russia’s economy will most assuredly crash and burn. Photo: toddprincephotography.com |
And then there’s Russia. An economy that most assuredly will crash and burn, but ironically, will give its leader, Vladimir Putin, all the more reason to point fingers, and his sheep, the Russian people, will back him all the way.
 Even political systems are under stress. Third parties are rising in strength all over Europe. New Neo-Nazi groups. Separatist groups. Secession parties. Terrorist groups. Cultural clashes. And more.
All part and parcel of the rising war cycles that I’ve been warning you about, conditions that will not abate until at least the year 2020.
So why is all of this happening? Why will it get worse in the years ahead?
It’s actually very simple: You are witnessing the death of communism and Western-style socialism.
It is not the demise of capitalism, as so many think. It’s the opposite:
The death of big government. The death of the state taking care of you. The death of Keynesian economics.
The death of governments that are so indebted from fiscal mismanagement and making promises to you that they could never keep — that they are now waging financial repression against you …
While at the same time finding scapegoats in the form of other countries, other political systems and parties, to blame.
We are entering a crash and burn phase for government. Especially Western governments and their socialist and safety net experiments of the last several decades. Of their currency experiments, their trade wars, their inept policies, and more.
It will manifest itself mostly in the sovereign bond markets of Europe and the United States, where interest rates are so low that even our country’s founding fathers would be shocked.
And when it bursts later this year, it will usher in what my dear friend and mentor, Marty Armstrong, calls the “Sovereign Debt Big Bang.”
That’s when it will really start to come unglued. It’s when the sovereign bond markets of the United States, Europe, and Japan will begin to implode … and interest rates begin to rise … no matter what the central banks do.
It’s when the chickens will come home to roost, when the citizens of those countries … and investors everywhere … realize that the Emperors of those countries — their leaders and governments — really do have no clothes.
And then, nearly all markets will swing even more wildly than they are now.
I repeat: This is a year of danger. And unless you start preparing now, it will gut your wealth.
My best advice right now:
First, stay out of U.S., Japanese and European government debt. No matter what anyone tells you, sovereign debt markets are soon going to become the biggest disasters of all time.
Second, steer clear of the euro currency and the Japanese yen. Stay mostly in dollars. I know it seems illogical, but it isn’t. As Europe and Japan implode, and as the war cycles wreak havoc in almost every corner of the globe, more and more savvy money will flee to our shores and to the dollar — even as our bond markets tumble.
Third, build your own war chest, to go after the opportunities that are coming.
While this year will be the beginning of some of the biggest threats ever to your wealth …
It will also be the beginning of some of the biggest opportunities ever.
Stay safe and best wishes,
Larry
P.S. As I’ve pointed out above, escalating conflicts are breaking out all over the world. And in my FREE report, I will reveal how you can potentially grab profits of 300% to 750% investing in a handful of select energy stocks — as conflicts in the Middle East, Asia and parts of Eastern Europe send the price of oil and natural gas through the roof.
Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader.
Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.
{ 47 comments }
Best column in awhile. Need more incite and thoughts as these.
So Larry is the 770 account one of the safe spots to keep ones funds,or do you recommend something else? Tell me Larry.I need to know. Blessed Be!
good advice by larry! i told you the dollar would get stronger, remember? and the bond bubble is going deflate, just like you say. the one bright spot is the usa economy is now self sustaining. we’ve finally turned the corner.
I seem to remember back in 2008-09 Larry predicting USA would be toast roundabout now,. and we’d all be rich beyond our wildest dreams,. Oh Larry, where did it all go wrong,.
You forgot a huge destabilizing factor – moslems and Islamic sharia law. If they manage to institute their way of banking in the territories they control, the western financial system heads into chaos (more than it is already).
there’s no stopping it and no denying it, as of today the usa economy finally turned the corner and is self-sustaining. it is completely weaned off government support, is running on its own, needs no more stimulus, and just had the best employment report in history.
enjoy it while it lasts,.
$1,000 gold
So we’ve paid off the trillions in debt then???????
16 trillion in debt and we’re still running at a deficit too. but the deficit is coming under control and we’ll be running at a surplus in a few short years. something no one thought we could do. a surplus means we can begin to reduce the debt. also, if need be, many countries have successfully inflated their way out of debt. it’s not like the problem does not have a solution.
Yes but which way will you bet and how much?
my bet has been on stocks since 2009. so far, i’ve been right.
Sure hope you’re correct about govt worship,going away.In the meantime,”Stay thirsty, my friends.”
i agree. bond funds will suck from here on out.
And then there’s the US of A. An economy that most assuredly will crash and burn, but ironically, will give it’s leader, Obammy, all the more reason to point fingers, and his sheep, the American people, will back him all the way.
There. Fixed it for you Larry!
The Obama haters are sick to their stomach. Despite their constantly trying to undermine our president and rooting for him to fail he has successfully guided our country out of the biggest financial mess in 70 years that the corporate whore republicans manufactured. All their lies and sneering and smearing won’t change that but they’re rather see America fail than Obama succeed. Such patriots.
if you understand the forces that are now converging upon the world, you will see the same things coming that I do,. Larry’s slowly turning into Voldemort,.
the usa economy will only get better in the last couple years of obama’s term. history will give credit to obama as the president who rescued america from the great recession.
Please stop with the USA! USA! USA!
Have another glass of cool-aid. On second thought, you best lay off it for while, since you are sounding like you’ve quite had your fill. Paid troll.
It will all explode from the bond market. The currency war has already begun.
america’s economy is so good it no longer needs support from the government – a turning point. i think that says it all.
Says a PAID TROLL.
$1,000 gold
Rubbish complete crap
qe has ended. stimulus is no longer needed. the economy is now self-sustaining. we’ve finally turned the corner.
I’ll have some of what someone else is drinking.
it’s common sense, howard.
Someone once told me that common sense isn’t all that common. Anyhow don’t worry be happy.
that was mark twain (samuel clemmons).
i would not be surprised to see a 20,000 dow this year.
I can taste it
We’re in the midst of a huge flood and Larry is describing the water. No clue of which direction to go and when.
this column completely parrots the words of martin armstrong. he isn’t larry’s mentor, he’s larry’s writer! hey larry, where’s that correction you said was finally here??
I thought he meant he was going to correct his spelling and grammar. Do you mean he was talking about the markets?
This is entertaining. As usual.
Great job Larry.
Keep posting :)
Agree, world is a mess, only going to get worse.
So should one stay in stocks or wait until after bond bubble in late Sept or Oct?
Thought Larry said stocks crashing until May then huge rally into 2016 and beyond…
Xx
I’d love to see more facts supporting these claims. S&P keeps making higher highs with no end in sight.
how about another year of double digit returns? even just 10% would put the dow near 20,000. best jobs report we’ve ever had. rates are low and oil is cheap. valuations are reasonable, especially relative to rates. earnings are on par with expectations. the economy is self-sustaining and no longer needs support from the fed. this upward channel the markets are in could go on for sometime before we see a recession.
You Obama lovers are delusional He brought us 7 trillion in debt to 27 trillion in debt in 7 years,
all from his socialist marxist giveaway programs. This guy will go down in history all right, Way down! Low information sheeple!
so the debt and deficit problem was caused by obama and all started the day obama was elected? then i’d say his rescue of the economy is even more impressive.
Thanks Larry.
thanks Larry,we need you
In reading the above comments, I note that several of you have made reference to the ‘best jobs report in history’.
While I’m not a mathematician, I remember enough from grade school to know that while converting a fraction into a percentage, reducing the denominator (number of folks counted in the work force) by a greater degree than the numerator (number of folks employed), the higher will be the percentage that results.
Sooo, if you’re calculating the percentage of employed Americans, and you reduce the denominator by choosing not to count the millions of folks who have “left” the labor force because they have become so discouraged they have quit looking for work, or have taken early retirement or whatever, you have reduced the value of the result for purposes of comparison to previous years to junk – apples to oranges. (garbage in – garbage out)
What we have is an ever shrinking work force – maybe not in absolute terms – but certainly as a percentage of able bodied folks who in previous years would have been making positive contributions to GDP. The burden of producing capital is falling on fewer and fewer Americans. Larry is probably right in stating that we may be among the last to fall, but lacking a dramatic change in leadership and a sea change shift in how we as a people view the role of government and ourselves, fall we will.
While he isn’t solely responsible, you Kool-Aid drinkers praising the President for his brilliance, and for leading us out of the depths of economic malaise, should understand that when we our economic system finally crumbles, a large portion of the “credit” will be his.
fac fortia et patere
if you check the fed’s unrate you’ll see we’re in the longest sustainable jobs recover in history and it ain’t over yet. the economy will be in such good shape at the end of obama’s term in a couple years that history will give him credit for the greatest economic rescue in our country’s history, whether he deserves that or not. maybe he was just in the right place at the right time. whatever, it happened on his watch.
I think you missed my point, $1,000 gold.
First of all, I don’t think any president can be held wholly responsible for failures in the economy or given credit for successes beyond a point. My earlier comment alluded to the changes in how we as Americans view our roles and responsibilities. It is here that real leadership and the power of the presidency can have a positive or negative impact – and it is exactly here that Mr. Obama has failed miserably.
However, the facts remain: The numbers going into the calculus of the unemployment rate do not fairly reflect the fact that the labor participation rate is at its lowest point since February, 1978. According to the Bureau of Labor Statistics, as of year end a record 92,898,000 Americans 16 years and older did not participate in the labor force.
(The BLS defines people not in the work force as people 16 years and up who are not employed, and haven’t “made specific efforts to find employment sometime during the 4-week period ending with the reference week.â€) The labor force participation rate — or the “The labor force as a percent of the civilian noninstitutional population†— also dipped back down to 62.7 percent at year end from 62.9 percent in November.
Under your way of thinking, if everyone except the two of us was unemployed, couldn’t find work, and quit trying – but you and I kept “punching the clock”, the labor force participation rate would be 100% and unemployment would be Zero. Of course this is absurdity to the nth degree, but that’s the direction we’re headed.
So go ahead, praise the fact that the “rate is falling” if you wish, but don’t close your eyes to the why by believing that the anxiously awaited rate reported to the breathlessly waiting multitudes each month is the whole story.
You seem to think we’re sailing along on smooth seas. I think we’re sinking.
All hail our great success!
PopPop
i agree with you 100%. all government metrics are flawed. nonetheless, the economy is now off life support and has turned the corner. larry is right in that the american stock market is likely to continue its upward journey, but it’s always good to be ready for the worst if the economy regresses. for example, the ecb is trying hard to stimulate the european economies. if they don’t succeed, we may all go down the toilet together. this is a far, far great concern than uncle sam’s employment report. what i like about larry is he keeps us focused on the ball and the world’s problems that we need to pay attention to.
larry, my question to you is , do you see chaos as a big bang in 2015.75 or start small am increase over 15 years into 2032 thanks for you efforts and I was not supprised to see you are buds with armstrong. a faithful reader!
$1000 gold is helicopter Ben himself.