Going in to the 2008 financial crisis, the size of the subprime market (what essentially caused the meltdown) was $1.3 trillion. Today the amount of bonds issued by bankrupt governments yielding NEGATIVE interest rates is over five times that size. The 2016 financial bubble is MUCH bigger than in 2008. This means the last financial crisis was just a warm up. And with whatever comes next, whenever that may be, a lot of people will get hurt. Your best offense is to make sure that you’re not a victim. This is rule #1.
Only by protecting yourself from the obvious risks in this system that is underpinned by debt and coercion can you ensure that you will be in a position of strength no matter what happens next.
If your country is bankrupt, don’t hold all of your assets there.
If your banking system is precariously illiquid, don’t hold all of your savings there. Consider holding physical cash. Gold. Or moving money to a strong, liquid bank overseas. Read More.