If you enjoy watching financial doom, then you are quite likely to really enjoy the rest of 2012.  Right now, red flags are popping up all over the place.  Corporate insiders are selling off stock like there is no tomorrow, major economies all over Europe continue to implode, the IMF is warning that the eurozone could actually break up and there are signs of trouble at major banks all over the planet.  Unfortunately, it looks like the period of relative stability that global financial markets have been enjoying is about to come to an end.  A whole host of problems that have been festering just below the surface are starting to manifest, and we are beginning to see the ingredients for a “perfect storm” start to come together.  The greatest global debt bubble in human history is showing signs that it is getting ready to burst, and when that happens the consequences are going to be absolutely horrific.  Hopefully we still have at least a little bit more time before the global financial system implodes, but at this point it doesn’t look like anything is going to be able to stop the chaos that is on the horizon.

The following are 22 red flags that indicate that very serious doom is coming for global financial markets….

#1 According to CNN, the level of selling by insiders at corporations listed on the S&P 500 is the highest that it has been in almost a decade.  Do those insiders know something that the rest of us do not?

#2 Home prices in the United States have fallen for six months in a row and are now down 35 percent from the peak of the housing market.  The last time that home prices in the U.S. were this low was back in 2002.

#3 It is now being projected that the Greek economy will shrink by another 5 percent this year.

#4 Despite wave after wave of austerity measures, Greece is still going to have a budget deficit equivalent to about 7 percent of GDP in 2012.

#5 Interest rates on Italian and Spanish sovereign debt are rapidly rising.  The following is from a recent RTE article….

Spain’s borrowing rate nearly doubled in a short-term debt auction as investors fretted over the euro zone’s determination to deal with its debts. 

And Italy raised nearly €3.5 billion in a short-term bond sale today but at sharply higher interest rates amid fresh concerns over the euro zone outlook, the Bank of Italy said.

#6 The government of Spain recently announced that its 2011 budget deficit was much larger than originally projected and that it probably will not meet its budget targets for 2012 either.

#7 Amazingly, bad loans now make up 8.15 percent of all loans on the books of Spanish banks.  That is the highest level in 18 years.  The total value of all toxic loans in Spain is equivalent to approximately 13 percent of Spanish GDP.

#8 One key Spanish stock index has already fallen by more than 19 percent so far this year.

#9 The Spanish government has announced a ban on all cash transactions larger than 2,500 euros.  Many are interpreting this as a panic move.

#10 It is looking increasingly likely that a major bailout for Spain will be needed.  The following is from a recent Reuters article….

Economic experts watching Spain don’t know how much money will be needed or precisely when, but some are near certain that Madrid will eventually seek a multi-billion euro bailout for its banks, and perhaps even for the state itself.

Read Entire Article HERE

Readers Comments (1)

1. Rus says:

   April 25, 2012 at 8:57 pm

   Gold, silver, copper for mankind.

   Historically, gold, silver, and copper were used as monetary based on their
   fair value as exchange medium in fair trade.

   Now, gold and silver are both dismissed from their monetary function. Only copper
   is the only metal still left to be used as money. Even so, the copper monetized
   today is based upon its face value and not upon its fair value. As such, the
   basic form of human ties in transaction is therefore corrupted and not a fair
   trade among us anymore.

   This calculation was intended to bring back the fair trade for the sake of
   just in mankind. Copper will be used as the basic reference, and solely on its
   fair value. In monetary term, USD will be used as unit only because of it
   recognition worldwide.

   Base value = material cost
   Face value = denomination value
   Base value copper = usd 3.71/lb = USD 0.008/g
   Base value nickel = usd 8.15/lb = USD 0.018/g

   US dime face value USD 0.10
   Dime composition copper 91.67% nickel 8.33%
   Dime weight = 2.268g
   Dime copper’s weight 2.268g x 0.9167 = 2.079g
   Dime nickel’s weight 2.268g x 0.0833 = 0.189g
   Dime copper’s base value = 2.079g x USD 0.008/g = USD 0.017
   Dime nickel’s base value = 0.189g x USD 0.018/g = USD 0.003
   Dime base value = USD 0.02 ( only 20% or one-fifth from its face value usd 0.10)

   With a dime, based on its face value you can purchase its base metals 5 times more
   than the dime contents ie copper at 2.079g x 5 = 10.395g and nickel at 0.189g x
   5 = 0.945g.
   10.395g copper x USD 0.008/g = USD 0.083
   0.945g nickel x USD 0.018/g = USD 0.017
   Total 10.395g copper 0.945g nickel = USD 0.10, base value

   Dime 2.079g copper 0.189g nickel = USD 0.10, face value

   Total 10.395g copper 0.945g nickel = Dime 2.079g copper 0.189g nickel. Not a
   fair trade! Solution?

   As such, the dime will be pegged to its face value as unit only, and copper and
   nickel price will be adjusted accordingly. (or else fixed the metal base price
   and issue new coinage with fair value weightage/content)
   Base value copper new = USD 0.04/g
   Base value nickel new = USD 0.09/g

   Further to this, all good will be priced accordingly
   Old silver price USD 1.25/g to new silver price USD 6.25/g
   Old gold price USD 56.25/g to new gold price USD 281.25/g
   Old rice price USD 0.75/kg to new rice price USD 3.75/kg

   With the standardisation of all goods, based on dime unit which transpire on
   copper value, gold and silver can now be used as money again against the fiat
   money. Any price fluctuation for any goods now will solely be on its actual
   fair trade with only stock manipulation rather than purely fiat money price
   manipulation based on credit without stock. Stock manipulation is more easily
   apprehended and therefore more risky for the manipulator, other than the
   lifespan/storage/delivery limitation of the goods. Hopefully in the future, the
   rich with whole lot of gold and silver, realised the agony of safekeeping their
   wealth/fort, will not recreate the same fiat system again, but acknowledge the
   real joy of giving with real goods and not fiat IOU paper.

   With the gold and silver standard back again, foreign exchange will now be
   back to fair barter trade again. Gold and silver as the commonly accepted
   exchange commodities will only exchange hand when the nations traded do not
   have common commodities of interest to barter.

   In monetary unit, the gold and silver exchange rate when in foreign countries
   will depends on the other countries base metal money.

   In Canada, Canadian ten cents CAD 0.10 is 1.75g
   92% steel x 1.75g x USD 0.003/g = USD 0.005
   5.5% copper x 1.75g x USD 0.008/g = USD 0.001
   2.5% nickel plating x 1.75g x USD 0.018/g = USD 0.001
   Therefore, Canadian ten cents CAD 0.10 base value = USD 0.007

   Thus, the exchange rate US dime/Canadian ten cents = USD 0.02/USD 0.007 = 2.8
   ( because the dime base value was based on old price, the same applies to the
   Canadian ten cents. Both must be on the same, either old or new will still give
   2.8 )

   New silver price USD 6.25/g = CAD 6.25×2.8/g = CAD 17.5/g

   In Autralia, Autralian ten cents AUD 0.10 is 5.65g
   75% copper x 5.65g x USD 0.008/g = USD 0.034
   25% nickel x 5.65g x USD 0.018/g = USD 0.025
   Therefore, Autralian ten cents AUD 0.10 base value = USD 0.059

   Thus, the exchange rate US dime/Autralian ten cents = USD 0.02/USD 0.059 = 0.3

   New silver price USD 6.25/g = AUD 6.25×0.3/g = AUD 1.88/g

   Good Day! Pls spiral