Banking Crisis.

Tom's Journal. http://tomschuckmanjournal.blogspot.com/




tschuckman@aol.com


Friends:
   Yes,  I am a little bit nervous, too.   I hope I don't end up sleeping in my truck this Winter, or I will have to get a big dog to help keep me warm.   Remember,  "Three Dog Night ?"


Now,  remember, too, that I am not the one saying these things...  the EXPERTS are !


Tom

“Full Blown Banking Crisis”: World’s Most Powerful Bank Signals Imminent Meltdown in China

Michael Snyder September 20th, 2016 Economic Collapse Blog Comments (27) Read by 4,402 people

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Bank of International Settlements, Image source: Wikipedia

This article was written by Michael Snyder and originally published at his Economic Collapse blog.
Editor’s Comment: The long and short of it is that an unprecedented and historic line of credit was issued in order to stabilize and fuel recovery; but now the price on all that debt is coming due, but coming short. As the musical chairs play out, many people are left out in the rain, and huge sums of money are totaling over the edge into the abyss.
What is happening in China will not be contained. If the footprint of global investment isn’t wrecked by exposure by Western markets, then the pattern will soon draw us into the black hole. Tick, tick, tick. Are you ready for what comes after?
The Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent
by Michael Snyder
The pinnacle of the global financial system is warning that conditions are right for a “full-blown banking crisis” in China.  Since the last financial crisis, there has been a credit boom in China that is really unprecedented in world history.  At this point the total value of all outstanding loans in China has hit a grand total of more than 28 trillion dollars.  That is essentially equivalent to the commercial banking systems of the United States and Japan combined.  While it is true that government debt is under control in China, corporate debt is now 171 percent of GDP, and it is only a matter of time before that debt bubble horribly bursts.  The situation in China has already grown so dire that the Bank for International Settlements is sounding the alarm…

A key gauge of credit vulnerability is now three times over the danger threshold and has continued to deteriorate, despite pledges by Chinese premier Li Keqiang to wean the economy off debt-driven growth before it is too late.
The Bank for International Settlements warned in its quarterly report that China’s “credit to GDP gap” has reached 30.1, the highest to date and in a different league altogether from any other major country tracked by the institution. It is also significantly higher than the scores in East Asia’s speculative boom on 1997 or in the US subprime bubble before the Lehman crisis.
Studies of earlier banking crises around the world over the last sixty years suggest that any score above ten requires careful monitoring.

If you are not familiar with the Bank for International Settlements, just think of it as the capstone of the worldwide financial pyramid.  It wields enormous global power, and yet it is accountable to nobody.  The following is a summary of how the Bank for International Settlements works that comes from one of my previous articles entitled “Who Controls The Money? An Unelected, Unaccountable Central Bank Of The World Secretly Does“…

An immensely powerful international organization that most people have never even heard of secretly controls the money supply of the entire globe.  It is called the Bank for International Settlements, and it is the central bank of central banks.  It is located in Basel, Switzerland, but it also has branches in Hong Kong and Mexico City.  It is essentially an unelected, unaccountable central bank of the world that has complete immunity from taxation and from national laws.  Even Wikipedia admits that “it is not accountable to any single national government.” 
The Bank for International Settlements was used to launder money for the Nazis during World War II, but these days the main purpose of the BIS is to guide and direct the centrally-planned global financial system.  Today, 58 global central banks belong to the BIS, and it has far more power over how the U.S. economy (or any other economy for that matter) will perform over the course of the next year than any politician does.  Every two months, the central bankers of the world gather in Basel for another “Global Economy Meeting”.  During those meetings, decisions are made which affect every man, woman and child on the planet, and yet none of us have any say in what goes on.  The Bank for International Settlements is an organization that was founded by the global elite and it operates for the benefit of the global elite, and it is intended to be one of the key cornerstones of the emerging one world economic system.

Normally the Bank for International Settlements is not prone to making extremely bold pronouncements, and so this warning about China seems a bit out of character.
Is something going on behind the scenes that we don’t know about?
Without a doubt, the global financial system is shakier and more vulnerable than most people would dare to imagine.  Global central banks have been on the greatest money creation spree in recorded history, and interest rates have been pushed to ridiculously low levels.
If you can believe it, approximately 10 trillion dollars worth of bonds are trading at negative interest rates right now.  This is completely and utterly irrational, and when this giant bond bubble finally explodes it is going to create a crisis unlike anything the world has ever seen before.
Just recently, Michael Pento of Pento Portfolio Strategies commented on this bubble…

He said the current financial conditions are “the most dangerous markets i have ever witnessed in my entire life – and i’ve been investing for over 25 years… The membrane has been stretched so wide and so tight that its about to burst.”

Pento believes that once the bond crash happens, it will trigger a cataclysmic wave of crashes throughout the entire global financial system…

Mr Pento has now warned that when policymakers signal they are set to stop buying, which will stop bond prices rising, there is going to be a devastating crash – not just in bond markets but across all investment assets.
He said: “When the bond market breaks, when that bubble bursts, it will wipe out every asset, everything will collapse together… I mean diamonds, sports cars, mutual funds, municipal bonds, fixed income, reits, collateralised loan obligations, stocks, bonds – even commodities – will collapse in tandem along with the bond bubble burst.”

Many had been anticipating that we would have already seen a major financial crash in 2016, but so far things have been pretty stable, and this has lulled many into a false sense of complacency.
But it is important to remember that we have seen corporate earnings fall for five quarters in a row, and it is expected to be six when the final numbers for the third quarter come in.
Never before in history have we had a stretch like this without major economic and financial consequences.  The following comes from a recent Fortune article which referred to an earlier piece authored by Jim Bianco…

None of this, however, is apparent from how stock market indexes have been moving lately, which unlike the charts above have been going up and to the right. “Since 1947, every time profits fell this much, or for this long, a recession was either underway or about to begin,” writes Bianco. “The only exception was the middle of 1986 to early 1987.”
If you remember, there was a pretty important event that happened in 1987: A massive stock market crash that sapped close to 30% of the S&P 500’s value in just five days.

It is only a matter of time before this earnings recession takes a major bite out of Wall Street.
Stock prices can stay at irrationally high levels for quite a while, but history has shown that every bubble bursts eventually.
And when this bubble bursts, it is going to make 2008 look like a walk in the park.
This article was written by Michael Snyder and originally published at his Economic Collapse blog.

---

Michael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years.
Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream. 
If you want to know what is coming and what you can do to prepare, read his latest book Get Prepared Now!: Why A Great Crisis Is Coming.

Click here to subscribe: Join over one million monthly readers and receive breaking news, strategies, ideas and commentary.

Lessons Learned about Prepping.

Tom's Journal. http://tomschuckmanjournal.blogspot.com/




tschuckman@aol.com


Dear  Friends:
     I am so happy that today is nice and sunny, to pick up my spirits and enjoy what is left of Summer in the U.P.   The trees are already starting to 'turn colors' and that is just another reason to praise the Lord, for all of our beautiful surroundings,  and not to worry TOO MUCH about tomorrow.
      But being raised on a small farm in Wisconsin, "Harvest Time" was so important and having a young, strong body to help harvest the crops and prepare for the Winter, cutting wood for the huge wood furnace in the basement.    It was a general, wide, natural process in the rural areas to slaughter farm animals for the freezer in the Fall time, and was NEVER considered 'hoarding,'  to stock up on food stuffs, and Mom would also do a lot of canning and freezing food.   She used to make/ bake whole sheets of delicious 'Apple slices' and pies, as we had our own orchard and nut/ fruit trees, and berry bushes on the farm.     It was just common sense and smart, wise thinking.   And with bible prophecy --- "God cannot lie,"  with many possible threats now days,  to "Prep" in case of a snowy blizzards or dire emergencies, IMHO [In my humble opinion.].   So this down load/ post is for those who have a similar mind set/ mentality.   And I certainly remember the time of Y2K, when many stored up stuff, that didn't go to waste, and we didn't have to buy toilet paper for the next 2 years.... LOL !    And the extra canned food was donated to the church school [Victory Baptist Church] that used it that very same way for the children's  lunches, outside of Kenosha, WI  !   That made me feel so good inside !  Plus, I got a 'tax write off.'    Indeed, I love to help others in need.  Perhaps I have a soft heart, or perhaps the Holy Spirit motivates me.   But this coming 'storm',  I think, will be much different and more  scary !
       Even though I did have a strong back ground in Finance, teaching it to families sitting at their kitchen table,  it's common knowledge that too many countries are going bankrupt all the time, and suffering humiliating losses, hunger and starvation right now !!    Tell me.... what is wrong by setting a few supplies aside, and buying 2 extra cans of  goods,  and Macaroni and Cheese dinners extra into your shopping cart when you shop,  these days ??    But DON'T tell other friends, folks, neighbors or relatives what you do ! ! !   After a few weeks of hunger, your "kind, friendly neighbors" WILL TURN INTO CRAZY ANIMALS and attack you for your food !    Depend on it !   I have been in 3rd world countries where a young boy will sell his older sister's body for sex -- because the family is hungry !   I have read where this is happening right now in America, and it will only get worse !
       Jesus even wept over His thoughts of what would happen to Jerusalem when the Romans would attack the city years later in His godly insight... while sitting on the Mount of Olives.... as he referred to mother's caring so much for their children--as hen's care for their chicks,  but they ended up eating their young after they died !!   Other historians concluded this fact in their writings, also, like Flavius Josephus, etc.   But most Americans just don't know or have seen such countries, nations, people, or even care.   But some Christian churches have missions and missionaries who do know and see, and they bring word and pix back to show us how other people live.   And if those poor, hungry people have the Lord, Jesus Christ, as their Savior, and we don't --- they are better off than we are.  They are blessed.   I am blessed at this point in my life too, in many ways.   And I love Jesus, and the KJV Bible !
      People in my life tell me that I shouldn't say I am "lonely", and I should be more active,  but I AM disabled, after being hacked apart by the Milwaukee VAMC, in a so-called Right knee replacement 'surgery,'   so  that my right leg is shorter, now,  than the other leg, and my lower back is very painful.   I am so blessed that a nice lady comes over to clean my humble hovel [house that I rent] at this point in my life.   


So,  here are some good suggestions that I believe smart folks ought to implement, and SOON !   And learn how to reduce your current high, lofty, life style, and learn to live on nothing, if possible.   "This is the day that the Lord has made, and we shall be glad in it."   
     However,  according to Genesis 12: 3,  America has wounded Israel, and also threatened her by suggesting that she give up MORE of her God-given land, and the U.N. also wants to divide Israel, to make it more easy for her enemies to "launch rockets, mortars and artilery" her with out any notice or warning.   We have befriended Iran and other bad countries who have said they want to DESTROY Israel !   Shame.   Now God will punish the   U.S.A.   Watch the fireworks soon.   If nothing happens on September 30th, such as a possible money change or a different form of U.S. Currency, or some kind of economic trouble,   I will have to "eat Crow meat" and probably be a laughing stock..... and hang my head in shame....  sorry.    Maybe I should just quit blogging, too.


Warm  Regards,
Tom

    

Hits and Misses: Lessons Learned After Six Years of Prepping

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As someone who has been prepping for six years, I have learned a lot along the way. During these six years, my survival skills, food and water storage, and general knowledge have grown exponentially to the point where I have grown comfortable, if not complacent, with my preps.
Alas, the world has changed a lot since 2010. Things I prepared for on day one are now far less important in the big scheme of things than the things I prepare for today.  Things I prepare for today are more far-reaching than issues associated with geographic isolation, the next big earthquake, or a regional food shortage.  What I now prepare for is a Venezuela-type economic melt-down, or a Cyprus-like seizure of bank assets and depositor bail-in.  I also prepare for an extended power outage lasting a year or longer.


There is something else. I am older and I am tired.  I do not have the energy I did when I first started to prep, and I want to enjoy life more. I also have had a couple of health related issues to gave me pause for concern.  Finally, for six years, much of my free time has been spent learning skills and searching out tools that will come in handy if forced into survival mode.  It has been a rewarding, but exhausting and oft-times expensive experience.
So what happens next?
It makes no matter whether you have been prepping for a year or for six years.  Everyone who preps needs to assess what they are currently prepping for and why. They need to inventory their preps on hand (skills and stuff) and determine what is lacking.  Equally important is to come to terms with what needs to be let go. And by let go, I mean “it ain’t going to happen”.
That’s right.  I said let go. Life and circumstances change and some preps that were vital and necessary a few years ago, may no longer apply. They may be taking up physical space that can be better used in some other fashion, or may be burning up brain cells that can be put to better use enjoying and experiencing life.
On the other hand, many preps do stand the test of time and can be used, if not day to day, then on occasion when a small disruptive event, such as illness or a power outage, occurs.  Those stay and become the foundation for new preps, whether they be skills or stuff.
Below you will find two lists that include many of the lessons I have learned during my six years of prepping. One is a list of keepers and the other is a “let it go” list.  I should note that some of the items on these lists have has fallen out of my upcoming cross-state relocation, where tough decisions had to be made relative to both time (do I really need to practice that?) or the expense of carting things around.
For some, these lists will be heresy.  For others, they will be a jump off point for forming your own lists.  You be the judge.

8 Prepping and Survival Hits

1.  Medical and sick room supplies:  Trust me, even if you are the poster-child of good health, at one time or another, you will become injured or sick.  Having a robust first aid kit, a stockpile of prescription drugs, and sick room supplies should be a given for every prepper.  Medical and sick room supplies should be front and center right along side food and water.
2.  Having an evacuation kit is not optional:  There is always a teeny tiny chance you will need to evacuate.  Have the necessities ready to go.  Having an adequate evacuation/bug out kit is more important than having someplace specific to go to when the SHTF.  When life and limb are on the line, you need to be ready to get out of dodge.  While you are at it, keep a good pair of well-fitting boots and socks ready to go as well.
3.  When space is precious and even when not, multi-taskers rock:  Whether it is duct tape, honey, hefty-bags, or something else, acquiring supplies that have multiple uses will save time, money, and space.
4.  Planning for short term emergencies of a month or less should be a top priority:  I see it often.  Prepper wannabes outfit themselves with all of the latest gear but don’t have a month’s supply of food, water, and cash. Start your prepping by ensuring that your short term needs are taken care then expand beyond that as time and budget allows.
5.  Solar panels to charge electronic devices is not a waste of money:  Staying in touch and being entertained are two important components of preparedness.  Inexpensive solar devices can be used to keep your gizmos running if for no other reason than to access your eBooks, audiobooks, and music.  With some advance planning, you can download movies and store them on your device or a flash drive/smart card, giving you hours of entertainment if the grid goes down.
6.  Cooking from scratch is a basic skill that should not be shortchanged:  When I restock my food storage pantry, canned goods will take a less prominent position.  By storing bulk foods, you get more calories per cubic inch of storage space.  That said, make sure you know how to cook using bulk foods. That usually means cooking from scratch.
7.  Freeze dried food is a necessary luxury:  Freeze dried food, if properly selected, can be both tasty and economical.  The key is to purchase small quantities at first, and run a taste test before committing to a large purchase from an unknown vendor.  I personally have my favorites (Legacy Foods from Buy Emergency Foods and Mountain House) but I had to kiss a lot of frogs to get there.  Purchasing the individual ingredients as well as meal pouches will give you the most options.  As I have learned, the very best part of freeze dried foods is they have a long shelf life and are easy to transport when compared, weight-wise, to their canned brethren.
8.  Sewing and mending by hand will keep your clothes and other soft goods in good working order:  With some practice, you can learn to mend rips, tears, and holes in clothing, blankets, towels, and other items that tend to wear out.  Honestly, it is not that difficult.  The hardest part is threading the needle and a magnifying glass will solve that problem.

7 Prepping and Survival Misses

1.  Survival trinkets are a waste of money:  I am a both embarrassed and ashamed to have promoted such items in the early days of blogging.  A credit card tool, for me, proved useless.  So what if it only cost a few bucks? That is just one example of from the pile of “survival” junk I have tossed.
2.  Certain canned foods are not worth storing:  Canned foods are heavy and take up a lot of space.  I totally agree that canned goods have their place, especially when preparing for short term emergencies.  That said, don’t store canned goods unless they meet the following criteria:

Have a high water content to supplement stored water supplies.  Soups (but watch the sodium levels) and canned fruits and vegetables are good.  Canned ravioli?  Not so much.
Provide significant protein.  Canned meat, chicken and seafood are good examples of protein sources.

3.  Junk saved for barter:  Storing items to be used in a barter economy is a good thing.  Good examples are first aid supplies, fire-making tools, toiletries/personal items, and warm blankets and socks. Plus food, of course.  Not so good is pure junk.  While cleaning our my storage area, I could not believe the discarded junk I had accumulated just for the sake of barter.  You will be better served by getting rid of junk that is really garbage, and storing items for barter that you may actually use yourself some day.
4.  Ten water filtering bottles per person are five too many:  What was I thinking?  It is good to have some redundancy but do keep track of what you have and fill in the gaps in your preps with additional items and not more of the same.
5.  Rotating water is a waste of time and effort:  Water does not go bad but it can become contaminated,  Dumping perfectly good water is a waste of time.  First of all, make sure the containers you use for water storage are clean and all contaminants are removed.  Second, if unsure, use “old” water for hygiene, cleaning or flushing purposes.
6.  Spending a lot of time and money on bug-out strategies:  If bugging out is not going to be an option except in the most extreme cases, quit worrying about saving for an underground bunker in the middle of nowhere.  Instead, have a solid evacuation plan you can put into place if your home becomes unsafe.  Make a deal with friends or relatives to stay with them if you must avoid Camp FEMA and do your darndest to figure out how you will get there.  Then let it go.
7.  Radio and communication gear is useless if you don’t know how to use it:  It does not matter whether it is a crank up emergency radio, FRS/GMRS two-way radio,or Ham radio.  If you don’t use it regularly, you won’t know how to use it in an emergency.  What I have found is that using radios every few months is not often enough.  Monthly or even weekly is the only way you will learn.  You need muscle memory with all of your emergency devices.

A Word About 12 Months of Prepping, One Month At a Time

I still believe in 12 Months of Prepping, One Month At a Time.  In 12 Months of Prepping, I lay out strategies that can be embraced at a slow place so that at the end of the 12 months (you can start anytime), you will be well-prepared for a short-term emergency.  It is not a comprehensive plan, and was never meant to be more than a jump off point for longer-term prepping strategies.
All that being said, 12 Months of Prepping is due for a major update so it incorporates current thinking as well as special preps for special needs, whether for senior preppers, the disabled, or young families with infants.
The All-New 12 Months of Prepping promises to be the Backdoor Survival opus for 2017. But in the meantime, it is not to be missed by anyone wishing to prep but not knowing where to start.

The Final Word

Prepping can be lonely.  It can also become an obsession.  Coming to terms with these two facts is going to help you become better prepared.
We all know that old habits are difficult to break.  Still, with a bit of perseverance and fortitude, you should be able to step back, take inventory, and evaluate where you are with your preps.  What’s good and what’s not?  What stays and what goes?  What worries you the most and keeps you up at night?  Figure these things out and when the time is right, refocus and begin anew.
Once you do, you will become a better prepped, and better prepared.  I can pretty much guarantee it.

Enjoy your next adventure through common sense and thoughtful preparation!
Gaye

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