Journalist and book author Michael Snyder says the collapse is not an event, but a “process.” Snyder explains, “I believe it is already in the process of coming apart. . . . One fifth of global stock market value is already gone. That means we only have four fifths left. At one point this month, $16.5 trillion had been wiped out from global stock markets since mid-2015. So, this started last year.
We saw oil collapse. We’ve seen junk bonds collapse. We’ve seen commodity prices collapse. The $16.5 trillion I just mentioned is just for stocks, and when you add up the other losses, that’s trillions of dollars more wealth that has been wiped out all over the world. What we have seen already has been extraordinary, but we are still in the process. People want to think of it as an event or a single day or a month, but this is a process.”
Snyder also contends, “The Baltic Dry Index dropped below 300 for the first time ever. We did not even see that during the 2008 Great Recession and financial crisis. I didn’t know the Baltic Dry Index could go that low. We are seeing exports decline dramatically in South Korea. New numbers for Japan came out . . . their exports were down 12% year over year. Exports in China have been falling month, after month, after month. U.S. exports were down 7% for the last monthly figure we had. India’s exports are down. This is happening all over the world. Real economic activity is grinding to a halt.”
Snyder says the problems with some global banks are far worse than in 2008. Snyder says, “The collapse of Deutsche Bank would be a far bigger event than the collapse of Lehman Brothers was back in 2008. If you are looking for another Lehman Brothers moment with their derivatives exposure . . . and now the biggest bank, in the biggest and most important economy in Europe, is in the process of coming apart.”
On war, Snyder says keep your eyes on the Middle East and Syria. Snyder explains, “Saudi Arabia and Turkey have to give up and cut their losses or they have to go in and do the job themselves. The Sunni militants, including ISIS, are not getting the job done. Turkey and Saudi Arabia are seriously considering a ground invasion of Syria. Are the Russians and Hezbollah and Iran going to stand aside and let them do it? I say almost certainly not and, in fact, could very easily erupt into WWIII.”
Either way, Snyder thinks we get “global financial collapse” and “World War III” but does not know which one comes first. Snyder says, “We already have the global economy grinding to a halt, but if we get WWIII, that just accelerates things greatly. It’s the chicken or the egg, whichever comes first, but without a doubt, we are moving into a time described as a perfect storm.”
On precious metals, Snyder says, “I think silver will absolutely skyrocket in the years ahead. We like gold, but absolutely love silver.”
Join Greg Hunter as he goes One-on-One with Michael Snyder, creator of TheEconomicCollapseBlog.com.