Did You Know…
In September 2008, according to both the U.S. Treasury Secretary and the Chairman of the Federal Reserve, the world was just hours away from a global banking collapse.
Banks began to lose confidence that the money they held on deposit with one another was safe. As trust evaporated, the flow of funds between banks—the foundation of the global financial system—began to break down rapidly.
The spark originated in Europe. But because the global banking system is deeply interconnected, the spark can come from anywhere—and the result will be the same.
The 2008 crisis was triggered by a sharp decline in global stock markets. As asset values fell, banks saw the value of the assets backing their obligations collapse. When assets disappeared, debts went unpaid—and depositors discovered that the money they believed was secure was not.
A Look Back at History
History offers a clear parallel to today.
The 1920s were one of the most prosperous periods in American history, producing enormous real wealth. Stock markets reached new highs month after month, and investors were wildly optimistic about the future.
To increase returns, investors took on growing amounts of margin debt. When the market stopped rising and began to fall, margin calls forced investors to sell. That selling triggered more selling—until the market collapsed.
Now look at today.
Margin debt is at the highest level in history. Read that again.
Over the last 50 years, margin debt has increased more than 200-fold, from roughly $4 billion to over $900 billion.
Panic Is Nothing New
Financial panic is not a new phenomenon in American history. The United States has endured repeated banking and financial crises:
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The Panic of 1819
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The Panic of 1837
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The Panic of 1873
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The Panic of 1907
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The Panic of 1933, when President Roosevelt closed all banks
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The Savings and Loan crisis of the 1980s and 1990s
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The Financial Crisis of 2008
The list goes on.
Former Treasury Secretary Hank Paulson has stated that another financial crisis is a certainty. Today, the global banking system is in far worse condition than it was in 2008, burdened by significantly higher levels of debt. Another major stock market decline would place extraordinary stress on the system.
How could the outcome be any different?
The Question We Avoid
Only the most naïve believe a banking collapse is impossible.
Is it probable? I believe most of my readers already know the answer. And most of you also understand what widespread bank closures would mean.
So here is the real question:
Why haven’t we acted to protect our families?
For most people, the reason is simple. They don’t know what to do—or the task feels overwhelming. And it is overwhelming. Where do you even begin?
You Can Start Here
That’s why I created Safe Future.
Twenty-five years ago, I realized I needed to become knowledgeable in three critical areas if I was going to protect my family:
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Wealth preservation during a Great Depression
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Health—how to maintain it under extreme stress
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Safety during panic and economic breakdown
I spent years researching and learning from top experts in each of these fields.
When you study, research, and think deeply about something for 25 years, you learn a thing or two.
I’ve taken the steps to protect my family—and I want to share what I’ve learned so you can do the same.
I cannot stress this enough: this can happen at any time. A full-blown panic could begin tomorrow, next week, or next month.
You can begin protecting your family’s health, wealth, and safety by joining the Safe Future Group. You’ll also receive timely news, updates, and commentary designed to help you stay ahead of events—rather than reacting when it’s too late.