Based on all the indicators I track, the global financial system is headed toward a financial collision which will make the 2008 event look tame by comparison. As King highlights from the BIS report:
Policy rates are already at zero and central bank balance sheets are bloated. Although private sector debt has started to decline, public debt has taken its place, with sovereign fiscal positions already on an unsustainable path in a number of countries. In short, macro-economic policy is in a vastly worse position than it was three years ago...Quite frankly, I find that statement from the BIS to be an extraordinary admission of failure by the world's Central Banks in their attempt to apply Keynesian economic principles to "fix" the global economic problems. It is a brutal assassination of Bernanke's self-proclaimed expertise on having the ability to use his toolbag of economic voo-doo in order to avoid the next Depression (I didn't think it was possible, but Bernanke is even more arrogant than Greenspan and will eventually be regarded as equally incompetent).
As Eric King asserts, and I completely agree this assessment:
The very fabric and the seams of the financial system are coming apart. Who knows what the timetable is for the implosion of the current monetary system? We are witnessing the greatest wealth transfer in history, and the horrors of the aftermath of this tragedy will not be forgotten for decades...You must own gold to be on the right side of the greatest wealth transfer in history.
Here is the link to King's blog entry: Got gold? Here's the link to the BIS report: BIS Annual Report
You actually don't need to read those two items in order to understand what is going. The trading action in the gold/silver is market is sending a VERY LOUD signal. The one remaining "policy" tool which has yet to be applied in full force - and which isn't really a policy tool, but rather one last mechanism to effect the final transfer of wealth from the public to the wealthy elite - is the outright cranking up of the fiat currency printing presses. Make no mistake, whether it's implemented under some sort of cloak and dagger disguise or with outright "helicopter drops of money," it's coming soon and the ONLY way to have any hope of seeing the other side with your wealth somewhat intact is to own gold and silver in substantial quantities.