Karen Roche reports that dramatic daily moves in the U.S. dollar, gold prices and the larger markets are pointing to a global banking collapse that will send resource prices higher in 2016, according to 321gold.com founder Bob Moriarty. In this interview with The Gold Report, he shares his insights on how mining equities will react and five names he is watching.
Moriarty says that the world is changing faster than he has ever seen before. The Dow Jones Japan Stock Index, the S&P 500, the NYSE Arca Gold BUGS Index, and the value of the U.S. dollar are moving dramatically every day. One day recently, the dollar was up 2%. That represents a $106 billion loss to whoever was on the other side of the trade. A few days later it was down 1%. This is the world reserve currency. It is not supposed to fluctuate like that. It is a cannon loose on a ship in a storm. It is tearing the ship apart and nobody realizes it. We have changes going on whose magnitude is awesome.
Volatility is increasing across the board. You may think that if the dollar goes up 2% one day, it is no big deal if it goes down 2% the next day. But hedge funds or investors getting margin calls are wiped out. That can destroy $200 billion worth of assets in one particular market in two or three days. The asset destruction has never occurred before in history and the ramifications are very serious.
It does not make any difference who loses it. When the banks lose, it results in the middle class being destroyed. People get very angry and they want a solution, which leads to rioting such as what we are seeing in Greece. We are going to have this asset destruction all over the world. When the banks collapse, we could have the first worldwide revolution.
Because the entire system is rigged. It is a state of failure. Our justice system does not work. Our education system does not work. Our healthcare system does not work. Our financial system does not work. Thus, you get a falling empire.
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