CHAIN REACTION - Is the Banking Crisis About To Expand? - Mike Maloney
To show why deflation comes first and why hyperinflation then becomes a distinct possibility, Mike compares US tax receipts to the Wilshire 5000 Index. What is immediately apparent is the high correlation between them-until recently. It takes two consecutive quarters of falling economic activity to officially declare a recession, but it's clear we've entered one now. This is the deflation. As Mike explains, the reason high or hyperinflation is in the cards is because the falling tax revenue causes the deficit to explode. And how does a government typically cover its deficits in that scenario? They run the printing press! (Or more accurately, enter digits into a computer). This has occurred many times before in history. One effect of all this fallout could be bank bailouts, bail-ins, or even a bank holiday. Hear how much cash Mike keeps handy in case those events come to pass. Enjoy Mike reading from his book, a portion that predicted five years ago what it happening now, how it portends what is ahead, and why he believes a wealth transfer is coming.
Michael Maloney is a precious metals investment expert and historian. He is the founder and owner of GoldSilver.com, a global leader in gold and silver sales/storage and one of the world's most highly regarded investment education companies. He is author of the highest selling precious metals investment book of all time, Rich Dad's Advisors: Guide to Investing In Gold and Silver