(By Shadow of Truth-TheDailyCoin)

The global economic system, including and especially the U.S. economy, is starting to collapse. Negative economic reports have been continuously streaming since late last fall. Even by the Government’s own manipulated numbers, the GDP in the U.S. contracted in Q1. From the majority of the economic reports for April and May – nothwithstanding the absurdly fraudulent U.S. Government non-farm payroll report – it is likely that Q2 GDP will be at least as negative as it was in Q1.

Interestingly, and something which has gone completely unnoticed, there’s been a big rally in the junior mining stock sector, which is up 18% since March 10. The junior mining stock sector of the market has outperformed everything since March. This tells us that the smartest money is expecting a big move in gold and silver:

SOT 35 #1

That makes sense because of what the other markets are telling us. The Shanghai Containerized Freight Index and the Baltic Dry Index are both telling us in tandem with each other that the global economy is tanking – it’s done – it’s toast. – Rory Hall, Shadow of Truth

Perhaps most puzzling is that, in the face of contracting economic activity, bond yields in the big western economies are spiking higher (see below). This should not be occurring. In our opinion, not only is the system collapsing but the Fed and ECB are losing their ability to control the markets, with spiking bond yields as primary evidence.

In this latest Shadow of Truth market update, we discuss some of the big indicators telling us that the system is collapsing.

Since early April, the yield on the 10yr Treasury has spiked up 38%. This graph below shows the big move lower in the price of the 10yr Treasury (click to enlarge):

SOT 35 #2

This graph shows the recent big spike up in the German 10yr bund yield:

Sot 35 #3


This article and video interview were from the Shadow of Truth series done by Dave Kranzler of Investment Research Dynamics and Rory Hall at The Daily Coin

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29 Comments on "THE SYSTEM IS COLLAPSING: Time To Get Physical"

  1. silverfreaky | June 12, 2015 at 1:13 pm |

    First i will say thank you for make you laughing.

    I beg you to look in a different way at gold and silver.When you look to a tree you must go around the tree to get all information about the subject.

    You write always how many ounces are selling and…….so on.
    The most second issue is the collapse of the dollar.

    The much more important issue is to look to the inflation.Here is the reason why PM are bought or not bought.

    PM is a protection against inflation.You can believe that the currency collapse but I don’t think that
    this happens in the near future.And not all people will or can wait another 5 years for changing the PM to money.So please make a little investigation to this item.

    When we had the hype in 2011 there was more silver available than now.

    • A lot of people is starting to realise fiat is not a store of value. Banks and governments push us into a cashless society (I live in a country in which we’re pretty, pretty close to be in a cashless society. I can’t do any payment over 1.000 € – black market aside, of course – with cash. It is forbidden by law, and it was 2.500 € a year ago, so we’re moving fast towards the total prohibition. It’s a fact. Besides, you can’t take more than 600 € from an ATM per day…). There will be a huge move into metals, in my opinion.

      By the way, If you laugh so much, I guess you must be very, very, rich, since from your posts it seems you believe you understand the situation better than anyone.

      • Bookoo Dinkydow | June 12, 2015 at 6:59 pm |

        I don’t know if Silverfreaky is rich, but I’m fairly certain that he’s not an English major.

      • silverfreaky | June 12, 2015 at 7:13 pm |

        Read all the recommendations of the PM Lobby of the last 4 years.
        All wrong.But why?Because they want to sale as all other companys.

        There is no benefit to burn money, no different if you like PM or not.I call it objective.
        When predictions are always wrong there are 2 possibilities:

        1.)I don’t know anything
        2.)I had an especial intention

        You can choose one!

        I’am not very rich.I startet buying one year after the hype.(2012)
        I believed all the nonsense the PM Lobby told us.

        Now 3 years later, i know more about this subject.And believe me the PM Lobby is not one cent better than other lobby groups.
        The same with miner stocks.No word you should believe those managments.Most of them are non-serious.

        That is my experience.

        • You assume that what I think about PM comes from what PM lobbies say.

          Wrong, dude, wrong.

          From your words it seems you’ve been into the PMs for the last 4 years. So what? No one can see the future, if you bought thinking gurus know the future, man, I’m sorry for you.

          I’m a radical, you know? I like to go to the root of the problem. Fiat currency has no sense when it’s not backed by anything, and for a fiat currency to be backed, you need a third party. That’s easy to understand.

          I live in a country in which the cashless society is taking place at a fast pace. I’ve seen the currency of my country disappear within weeks and be replaced for a new one (the Euro). Now I’m seing the replacement of the euro for the electronic euro.

          Has my purchasing power gone up will all these changes? Nope. It has gone worse. I know plenty of people who’s money has been taken from their bank accounts from the government without them being able to do shit.

          All of my friends understand fiat is shit. They all see the government steals from them through it. They’re not into PMs. Not even into economics. They’re the average Joe who sees he’s working for nothing. They realize they’re working slaves for the system.

          What are they going to do next? Do you think my friends (and I take them as an example) are going to allow the government to steal from them any further? Nope. Of course they can’t do much, but they eventually will realize PMs is one of the only ways to do so.

          In my country the precious metals are something no one talks about and no one buys, beyond jewellery. There is no PM lobby in my country. It’s completely non existent… And yet, everyone with half a brain has the intuition there’s something big coming. They all see fiat is nothing and that they need to bypass the banking system and the state in order to keep and increase their wealth.

          What options do they have?

          Can’t buy real estate, since it’s taxed and retaxed, and taxed again.
          Can’t buy registered items. For the same reason.
          Can’t be self employed. In my country, in order to be able to work on your own, you gotta pay 250 € a month to the state, regardless of you having had a client at all. Open a business? 250 € a month whatever you do, without including other taxes.
          You want to create a society? Need to have like 3.000 € in a bank account first.

          It’s all forbidden. You need to literally be rich in order to start a business.

          Being an employee? You can’t have two jobs at the same time, because if you have two jobs, you pay more taxes. Changing jobs frequently?

          In my country, if you have a job for 6 months, and for any reason, you quit and start another job for the rest of the year (imagine you work 6 months in a job, and the other 6 months in a different job), again, you pay more taxes than what you would pay if you were working for the whole year in the same job…

          Politicians until now were openly socialists, but now communists are starting to take over. They now control the biggest cities… Politicians who claim Venezuela is the paradise…

          I could keep on telling you what’s going on in my country, but I guess you get the point.

          So, now, tell me… Is all of this PMs lobby’s fault?

          • “you need a TRUSTED third party”

            I forgot writting what gives meaning to the phrase.

          • In what Wonderland do you live, Bonifaci? It can’t be Italy, I think, Italians are not so easy to tame.

      • “A lot of people is starting to realise fiat is not a store of value.”

        neither is gold. money is a medium of exchange, meaning that money has no value or meaning outside of an exchange. that exchange at that moment is the transient value of the medium.

        • Fred Hayek | June 16, 2015 at 8:37 pm |

          Yes and no. We can come up with lifeboat or marooned on a desert island scenarios to say that the value of money is completely contextual but these circumstances where gold and silver will not serve as money are an infinitessimal fraction of human experience.

          Gold and silver did not arbitrarily become money in every human society where they were present. They didn’t beat out seashells on a fluke. To serve the purpose of money as well as possible the material to be used should be durable, divisible, convenient, consistent, possess value in itself, be limited in quantity and, ideally, have a history of use as money. Gold and silver have all these attributes.

          Gold and silver are wonderful materials in many ways apart from their monetary uses. We’re familiar with silver’s industrial and medicinal uses because its price has been so insanely cheap that we’ve been able to make use of all its reflective, conductive and antimicrobial qualities. Gold has many of the same uses but has historically not been so cheap as to be employed in such ways.

          What is money, what is a true store of value is not arbitrary.

    • @ AG-freaky. Monetary inflation as measured by the amount of credit in the system has certainly hyperinflated already. This will result in either in “real” hyperinflation or a deflationary implosion, the end of both outcomes being quite similar. Holding PM will protect you in either case. Right now there is 100 to 300 times more paper metal traded than real metal available… when this congame ends, that is a when nor an if, then we probably all will wish we had put every last cent into the metals…

  2. OutLookingIn | June 12, 2015 at 2:16 pm |

    “Starting to collapse”??? Consider;

    The Cass/INTTRA Ocean Freight Index
    This index tracks US containerized ocean export activity. It has been in a major down trend since March 2011 and heading lower still.

    The Baltic Dry Index (BDI) average since the start of the year sits at 618.00 It currently sits at 629.00 chopping sideways at a continuing low level.

    What most consider the second important global shipping index after the BDI, The China Containerized Freight Index (CCFI), is down 41% since January for routes from Asia to North/South America and Europe.

    China rail freight volume is down 17% year-over-year.

    The Commodities Tracking Index (DBC) which is an all inclusive commodity global system, has averaged 17.92 since the start of the year and currently sits at 17.59 chopping sideways at a low level.

    The global economy has tanked. The only question being? How much lower will it go?

  3. All of the comments make good points, pro and con. However, the # one underlying truth is that it is prudent and wise to have and hold “some” physical Silver and Gold.

  4. silverfreaky | June 13, 2015 at 12:26 am |

    It seems that the silver -price is driven by paper not by the physical silver-buyers.
    It seems that we have everywhere crises in the world.PM are good in crises?

    The reality looks different to that what is here written.Even when my english is bad, this is true.

  5. @Bonifaci : Are you from Italy ?

    @Silberfreaky : Ich bin auch in Silber investiert … und denke der Kollaps dauert noch ewig — aber genau das ist der Vorteil — es passiert wenn niemand dran glaubt

    • silverfreaky | June 13, 2015 at 4:15 am |

      Durch die Niedrigzinsphase und das Auslagern von Staatsschulden können sie das Spiel ewig treiben.

      Schulden werden quasi entsorgt.(Staatsschulden).Stichwort Transferunion.
      Alle haften für alle.

      Der kritische Punkt sind die Aktienmärkte gezielt runterfahren.Da könnte Panik ausbrechen.

      • Das wird ein langes und schmerzhaftes Sichtum…
        Niemand will einsehen das es so nicht weitergeht solange morgens um die Ecke es noch einen Coffe-to-go gibt

      • @silverfreaky
        das ist absolut falsch, wird die Transferunion realisiert, wird damit kein einziges Euro Schulden entsorgt. Erstens werden die Zinsen in Deutschland, Niederlande und Österreich explodieren und die Konjunktur abwürgen, dadurch wird bei den PIIGS Staaten keine nennenswerte Zinserleichterung auftretten.Zweitens wird die Umschuldung auslaufender Obligationen massive teuerer, für eine Rückzahlung has so oder so niemand Geld. Zu dem werden die Banken Deutschlands und Co. plötzlich mit riesigen Verlusten in ihren Bondportfolios konfrontiert, Banken die ohnehin schon Pleite sind und selbstveständlich wird der Aktienmarkt kollabieren. Es gibt überhaupt keine Chance, dass man es ewig so weiter treiben kann, denn die Scherre zwischen der Realwirtschaft und der Kreditblase öffnet sich laufend.

        • silverfreaky | June 14, 2015 at 12:19 pm |

          Wieso die Staatsschulden werden doch an die EZB verschoben?Die können doch Schulden auftürmen soviel sie wollen.Meines Wissens verdienen sie noch Geld bei dem Verkauf an die EZB!

          Ich lass mich aber gerne ein besseres belehren.

          Die Versicherungen schrumpfen halt, wegen den niedrigen Marschen.
          Ich sage übrigens nicht das es ewig so weiter geht.Aber wieviel Jahre noch?

          • @silverfreaky
            nun es ist eine Sache die griechischen Anleihen an die EZB zu verschieben und eine völlig andere es mit den Anleihen Deutschladns und Co. zu tun. Es wird immer wieder behauptet, die EZB könnte unbegrenzt Schulden monetisieren, das ist Quatsch, es funktioniert nur in der Theorie, bestimmt aber nicht in der Realität. Denn, die Staatsanleihen Deutschlands, Niederlande usw, sind ein wichtiges Pfand (collateral) für die Banken, Versicherungen und Pensionskassen. Würde man sie an die EZB verschieben, hört der Kreditmarkt auf zu existieren und die Wirtschaft würde kollabieren. Es existieren in der EU etwa 3 Billionen Euro Staatsanleihen, die negative Rendite haben, damit würde die EZB ihre Bilanz zerstören und würde sie gezwungen sein die Verluste an die Mitgliedländer weiterzugeben. Das heisst, die Zinsen würden steigen wie oben beschrieben.

  6. Spain

  7. Unknown unknowns…

    Greek default, rate raise in the US, DB derivatives blowup, unimaginable stock bubble in China, Abenomics, flash crashes, no bid markets; known knowns & unknowns.

    Just one Archduke, or a spontanious bankrun in Spain for example, should do the trick. A Black Swan event. The ‘regulators’ are in the game, but they know their unknowns, ready with freshly printed fiat to cover up billions in blowups as they are.

    What if southern Europe says; f*ck the moneychangers, and join Greece in their newly created ‘Periphery Prosperity Union’?

    Watch your back, stack… The system is on life support.

  8. Silverwillwin | June 14, 2015 at 12:16 am |

    Bonifaci , I feel your pain. What can anyone say who hasn’t lived through what you are going through ?

    It must be very frustrating. Losing freedoms is debilitating.

    That is one of the reasons to hold precious metals . It can be useful in helping you to buy goods and services privately .

    Good Luck in your dealings.

  9. Looks like now is the time to pile in silver junior miners. Any recommendations.

  10. Showmustgoon | June 15, 2015 at 1:08 pm |

    Hi Bonifaci, I am French (but living in Germany). France recently limited the maximum cash transaction to 1000 euros as well. No doubt, this brilliant idea comes straight from Bruxelles (as always).

    For now, French politicians sell it that way : “Dont you want us to fight terrorism after Paris events in January ? Dont you want us to fight against black market ? Dont you think it would be great if you could buy a stamp with your credit card ? Who would assault you on the street if you had no cash in the pocket ?”.

    Yet, French people, just like the Spanish (based on what you said) have no clue in economics, let aside PMs, they are not even interested in politics, in fact they are simply disgusted and fed up to see they beautiful country collapsing in slow motion… they are like sheep ready to be slaughtered… When you tell them about the situation, they will simply say “so what…”

    Incidentally, I think that the announcement made by Martin Armstrong last week regarding the secret meeting of central bankers in London earlier this month could be true…

Comments are closed.