On May 16th, I did a special posting on the BREXIT about its potential impact on the world. Also predicted that the exit would happen, despite the polling and odds with the various gambling houses saying it wouldn't happen. See post here: http://siamcal.blogspot.com/2016/05/something-different.html. After that, I also posted about the virtues of gold and how it will help protect one from such world turmoil such as in yesterday's market. For those readers that took that advice, I think you are going to have a very nice weekend.
The DOW fell 600+ points yesterday, and is likely to fall again on Monday. If you haven't gotten out of the market yet, I fear its too late and its definitely gonna cost you a bunch more if you decide to buy gold at this point. The scary thing is that there is little anyone can do about what is going to happen over the next few days and weeks. The Feds and EU 'dream teams' are burning the midnight oil trying to stop the massive bleeding, while the bankers around the world are trying to cover their bets on the currency markets. None of it will work.
Even Alan Greenspand, the former head of the Feds, says in this interview, that its the worse that he's ever seen, including the 1987 crisis. He should know as many credit him with helping to create a lot of what is happening now in monetary problems around the world.
EXCLUSIVE » Fmr. Fed Chair Greenspan to CNBC: "This is the worst period I recall since I've been in public service." pic.twitter.com/mu0p471fAm— CNBC Now (@CNBCnow) June 24, 2016
Basically he says the bankers around the world are out of ammo and the only way to get the situation back under control is to begin reducing expenses and getting entitlements under control. That is not likely to happen with our politicians so its just a matter of time when all hell breaks loose.
Its also likely that the EURO will feel significant pressure over the next few months as other countries are likely to bail, especially the wealthier ones who have to supplement the ones that are not doing so good. My belief is that Germany will begin to suffer economic woes soon and that is going to put more pressure than ever on the EURO's monetary basis. That will be the last lynch pin that will eventually cause the collapse of the European monetary experiment.
So what to expect? Some extreme actions from the powers that be. Expect more maneuvers to block the decision and if all else fails, I would not put it pass them to start a war with Russia. After all, history has shown that when economies become stagnant, the best and fastest way to fix that problem is to start a war. Its suicidal, but lives don't matter to the global elite...no, its only their money and power that matters.
So, enjoy the weekend while you can, as next week promises to be a dozy.