Think the title of this post is just a catchy bit of link-bait, meant to draw you in so you can listen to some frivolous theories with no factual info to back it up?

According to Jim Rickards, we’re fast approaching the biggest, most devastating financial collapse in the history of mankind:

Rickards Predicts Financial Collapse: Death of Money Interview

His thoughts are insightful – and frightening!

He made a lot of great points in the interview:

• In the last hundred years, the global financial system has collapsed three times (1913, 1939 & 1971).
• He predicts an instantaneous and globally-collective loss in confidence for paper fiat money.
• When looking at population increases and the fact that the USD as been full-on “fiat” since the last flop, there should be little doubt that the next collapse will be massive.
• Our (the US) recent betrayal of Saudi Arabi by backing Iran’s middle-eastern power play, could have disastrous effects on the USD if the saudis decide to price their oil in another currency.
• Rickards ends the interview speculating that while he definitely doesn’t see the US fiat dollar surviving more than ten years, he believes a major recession will hit the United States by August of 2014.

Some scary thoughts right?

It would seem that Janet Yellen is much the same as a bomb specialist brought in to disarm a bomb around the proverbial neck of US citizens; but she only 30 seconds before the bomb explodes!

Donald Trump echoed some of these worries and more recently while being interviewed by Greta Van Susteren, talking about a number of different issues we’re facing currently, that lead to one inevitable outcome: financial implosion.

From Trump:

“When you’re not rich, you have to go out and borrow money. We’re borrowing from the Chinese and others. We’re up to $16 trillion in debt” (full article)

The realization that we’re so indebted to the Chinese should really scare the crap out of all of us…

When you consider international speculation that the Yuan will supercede our currency: www.cnbc.com/id/101450365

And…

The fact that they’ve (supposedly) been stockpiling gold since the beginning of 2013: www.mining.com/china-gold-demand-jumps-almost-42-talks-of-stockpiling-up-100-78639/

And…

China and Russia are getting pretty cozy. Both of which are wealthy powerful countries with strained US relations currently: http://www.reuters.com/article/2014/04/09/russia-china-gas-idUSL6N0N11XM20140409

Trump Also Says FED Unemployment Rate Numbers Are Bogus

Trump also warned us to be wary of the FED claim of ~15% unemployment in this country. Trump and other experienced speculators see the real numbers somewhere in the 21% range.

All this coming less than two weeks after we were led to believe the US’s “AAA rating” was still in check: Fitch takes U.S. credit rating off downgrade watch after debt deal

Deflation or Inflation?

Most experts feel that we’re heading the opposite of where we should be: i.e., deflation. See this: Could we be heading for deflation? This is bad news for investors and the global economy. We’re heading for a potential flatline if the ever-declining inflation rate (0.8%) is any indication.

American Investors Gotta Take Chances

Forbes contributor James Gruber, founder and author of the newsletter “Asia Confidential”, and former fund manager and stock analyst believes a very diversified (and risk inherent) portfolio is the only way for the individual to steer clear of financial ruin in these uncertain times:

“That’s why cash (which would out-perform in deflation), gold (which would prosper under extreme inflation) and select property and other tangible assets such as agriculture (which may out-perform under extreme inflation on a relative rather than absolute basis) should be part of any diverse investment portfolio.”

He’s basically saying that considering the uncertain credit predicament we’re in, and the FED’s resistance toward inflation at this time, we have to prepare for both inflation and deflation at the same time.

My take on all that is: RISK!

Since the entire world has been playing with US “monopoly dollars” for the last 40 years, we’re now in one of the worst “damned if you do, damned if you don’t” scenarios ever…

If you don’t invest in tangibles (today), you could be broke beyond repair tomorrow – literally!

Photo credit: Kalense Kid