2015 has been the year of the failed forecasts when it comes to gold prices and other commodities. This is in part due to the global slowdown in economic activity that has seen deflation rear its head in places stretching from the U.S. all the way to China.
But the key thing that most economists miss is that at the foundation of the global monetary system, it is not the dollar, nor the euro, nor even the Yuan that controls economic direction, but oil and oil prices.
And as we have seen over nearly the entire second half of 2015, oil prices have fallen to the point where they threaten to go well below $40 per barrel, and this is despite nation states rushing to war in the Middle East to fight against ISIS. But according to a new forecast by Dr. Jim Willie of the Hat Trick Newsletter, when oil prices fall below $30 per barrel, it will trigger a black swan throughout the globe and cause gold to begin rising in price at a tremendous rate.
Jim Willie: The emerging market nations are caught in a squeeze. They're typically commodity sellers. They sell metals, they sell oil, they sell gas... they sell alot of different commodities, and all the commodity prices are down. If you take a look at the last 18 months, it's a 40% decline in income to the emerging market nations, who's economies are all upset down, screwed up, and they can't pay on their debt.
Now they're seeing the dollar go up, their own currency go down... 25% for arguments sake. So, an emerging market nation has 25% less income, a recession that's fierce, and suddenly their debt load just went up 20 to 25, and maybe 30%.
It's called debt default. Income down, debts up and they are delaying on their default announcements because the Western banks are giving them extensions, but it's going to end real soon.
That's the emerging market problems that are going to hit the Western banks the same time their oil hedges and oil portfolio's cause them losses. The result will be that the Fed will be in a nightmare scenario, when at the same time lots of country's are dumping their treasuries... so the Fed is going to have a triple whammy.
Wall Street energy losses, Wall Street emerging market losses and global central banks dumping their treasuries... this is I think QE will fail, and the dollar will have to be gotten rid of as a global reserve currency.
All these problems, and the oil price is going to be the critical pinprick. And as the oil price goes further down, it might even trigger some of the defaults. My source just sent a message yesterday, saying we're going to see sub-$30 oil price. It's going to cause enormous problems, and in this sequence, it will bring about conditions for installing the gold standard, and seeing the price zoom. - TF Metals Report Interview, Nov. 25
Within two weeks, the Federal Reserve is going to have to make one of its most important decisions in its history, and in either situation (Raising rates or keeping them at zero), the consequences will be dire for those who own stocks, bonds, and other paper assets in their portfolios. But as Dr. Willie notated, it is not interest rates that will bring about the next collapse, but rejection of the dollar and deflation in the oil spectrum.
Emerging market nations are already preparing for a change in the petro-dollar system, and are doing so by buying and accumulating gold at a record pace. In fact, China just bought even more gold last month to go along with their estimated 20,000 tons purchased over the past few years.
So if much of the world is rushing headlong towards a return to the gold standard, and the mountain of global debt is finally reached the point of collapse, how can you prepare yourselves, your family, and your wealth to not only survive the coming changes, but to be prepared to come out ahead?
The answer lies in a company called Karatbars.
Buying gold through Karatbars is one of the easiest things on the net. In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.
And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system. From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.
Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet. And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.
But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate. Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.
Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.
How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money? And there is never a mandatory requirement to buy beyond what you desire, on your own schedule. And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.
The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold. And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?
To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.