Executive Summary

• The evidence that the dominant social narrative is breaking down
• The Emerging Market spark may ignite a broad market conflagration
• Financial market complacency is completely unprepared for such a risk
• And escalating risk of conflict in the Middle East threatens to make the situation a whole lot worse

If you have not yet read The Whole System Is Rigged, available free to all readers, please click here to read it first.

As it’s the dog days of summer and people’s attention is, rightfully, turned to a final week of relaxation and tuning out the endless stream of disturbing news, I’ll keep this short.

Let me begin by noting that, in response to my last report, several of you took the time to observe a change in my tone, with one saying a group of PP members thought I might have gotten a bit “apocalyptic.” 

It’s absolutely true that I am increasingly concerned about just how bad the next financial crisis will be.  I am seeing no progress on ecological issues at the national or global level, and I am noting backwards progress in the ability of groups of people to have reasonable discussions with each other.

As I noted in the past, that can lead to social upheavals, perhaps all the way to civil war.  I don’t see that as entirely imminent, or even likely, but it’s no longer impossible.

So one of my commitments to you is to let you know when I am taking personal actions.  I’ve definitely upped my actions with respect to safety and preparedness.  I’ve retaken a gun safety course, been at the range quite a bit, gotten my reloading going again, and bought protective gear.

Why?  For the reasons listed above.  Things are undoubtedly heading in the wrong direction and I simply do not think/believe in the ability of the central banks to forever hold off the reckoning by printing more money and meddling with the markets.

When the dam breaks a lot of people are going to be very pissed off, as they should be.  They’ve been lied to and subjects to all manner of rackets and scams propagated by the people they once trusted.  I do believe that an honest accounting would have those people being equally mad at themselves for having been such incurious dupes, but I somehow doubt self-reflection will be an early part of the equation.