The Most Well Respected Investor in the Past 20 Years, Dr. Michael J. Burry from “The Big Short” Fame, Underestimates The Everything Collapse.
Dateline: Creve Coeur, MO., USA/Monday, September 5th, 2022/Written by: Jeffrey L. Klump
The 2015 movie “The Big Short” gave Americans a look at what really went on prior to and during the Great Financial Collapse of 2008.
Christian Bale’s character was based upon real-life investor and hedge fund manager, Dr. Michael J. Burry.
Michael Burry found out in 2005 that mortgage fraud was pervasive all throughout the industry including the banking system.
Burry found a way to profit from the fraud and foolishness that not only affected the mortgage industry but also Wall street as well.
Michael Burry was able to short these mortgages that were packaged into bonds with fancy names like CDOs.
Burry made billions on these trades while at the same time, more than 5 million Americans lost their homes.
I was telling people as early as 2003 that we were going to have a housing/real estate collapse of epic proportions.
I was made fun of and a home builder that I spoke with at the time told me that real estate never goes down.
So much for the real estate never goes down narrative.
I am not smart like Dr. Michael Burry, but I did protect our wealth by buying short-term T-Bills and also buying physical gold and silver.
The Great Financial Collapse of 2008 was never fixed. No one went to jail.
The only thing that was done was to bail out Wall Street and have the Fed print trillions in new treasury bonds(debt).
That was it. No structural changes were ever made to the financial system.
We are now deep into the Everything Collapse. That is what I call it.
Even though Michael Burry has been warning Americans for the past 1 1/2 years regarding a hyperinflation-style collapse of our financial system, it will actually be way worse than that.
The Everything Collapse will not be just a collapse in asset prices including stocks, bonds, mutual funds, 401K plans, and real estate.
This will be a collapse of the United States Government as we know it and society in general.
There were three things that were not present in 2008 with the Great Financial Collapse, that we have going on now.
We did not have decades high inflation in 2008 like we do now. This is extremely important for all investors to understand.
We did not have a major war breaking out in Europe back in 2008. There are big-time Geo-Political risks.
Finally, our nation was not nearly as divided in 2008 politically as we are now.
These three things along with massive new treasury bonds being printed out of thin air since 2009, to the tune of trillions, were not present before and during the 2008 collapse.
Europe has just been cut off from all natural gas by the Russian gas company, Gazprom.
The result of this will be the death of millions of Europeans this winter from freezing.
The Hunger Games begins for real in Europe.
This will lead to a collapse of the Euro which is the paper fiat currency of the European Union.
Look to Europe for the beginning of the Everything Collapse.
Revolution will take place in the largest countries of Europe including Germany, France, and Italy.
After revolution breaks out throughout Europe, Russia will unexpectedly invade Europe fulfilling one of the prophecies of the prophet Daniel.
Here at home, our fate won’t be much better.
Investors in stocks bonds, mutual funds, and real estate will get quickly wiped out.
Michael Burry believes that stocks will collapse by 53% from their current levels.
We may not even get to that point.
The U.S. bond market is the key to everything including the stability of the U.S. dollar as a currency.
If the 10-year Treasury Note continues to stay above 3% long enough or higher, this will freeze the credit markets including the Repo markets, which are the plumbing for our banking system.
This is exactly what happened in 2008.
The only way to unfreeze credit markets is for Jerome Powell, the head of the Federal Reserve Bank, to lower interest rates and start printing new treasury bonds(debt).
This would be a nightmare scenario for any central banker.
Powell is scared to death of inflation and this is at a time when asset prices in stocks, bonds, mutual funds, and real estate are at historical highs along with the massive amount of personal, corporate, and government debt in the system.
Our economy cannot handle high-interest rates and high inflation rates.
This is a recipe for a hyperinflationary debt collapse of our financial markets and the currency, which is the U.S. dollar.
Investors are damn fools to think that Jerome Powell is coming to rescue them by lowering interest rates and beginning a new round of quantitative easing(printing new treasury bonds).
Again, the only way this will happen is if the credit markets freeze up.
When the credit markets do freeze up, your bank and ATM will be closed.
This actually happened in some parts of the country in 2008.
I would highly recommend that you do the following things immediately to prepare:
- Store 30 days of food and water at your residence
- Have plenty of lead to deal with any problem individuals
- Keep some cash outside the banking system
- Buy physical gold and silver and store them in a safe place other than a bank or a commercial vault
- Talk to your neighbors and get to know them
- Connect with a family farmer and do business directly with them in case the grocery store shelves become empty
This is all being orchestrated quietly behind the scenes to destroy the current system and then push us like cattle into a new monetary system using digital money provided by the beautiful people at the Federal Reserve when they roll out their new FedCoin.
This is when the Hunger Games begins for Americans. Especially for those who reject the Federal Reserve’s new digital currency.
You will be on your own living outside The Matrix.
Dr. Michael J. Burry recently tweeted that the collapse is underway.
He is quite right about that, but he is wrong about how horrific The Everything Collapse will actually be.
RELATED:
‘Big Short’ Legend Michael Burry Hints Stock Market Crash Is Underway (businessinsider.com)
