Mike Maloney - Is a Financial Crisis Being Covered Up?

One of our goals here is to watch for any signals that economic problems that could lead to a new crisis are appearing. This is very tricky because we now live under conditions where the potential for problems that could lead to systemic risk to the financial system exist all the time. We have fully documented all the many warnings about this that have been issued by the IMF and the BIS in the last couple of years. The conditions exist all the time and yet no new crisis has shown up so far making it difficult to try and project the timing for any new crisis. The conditions exist for one to happen at any time, but that's been true for long time now and we haven't seen it yet. The volatile start in the markets in 2016 has many readers here asking if we are seeing the start now so we did this blog article to provide what our research here has turned up from all the resources we follow.

Mike Maloney has just released a new brief video presentation in which he asks if we are seeing some signals that could indicate a new crisis could be in the making. He touches on several such signals he follows that have seen surprising changes from the norm just recently. One is the rapid depletion of gold inventory held at the Comex warehouse. Another is the sudden drop in capital reserves at the US Fed along with other banks. Hugo Salinas Price also noted the big drop in global central bank reserves that he follows in his recent interview with Greg Hunter. He noted that he has followed this signal for decades and that he thinks the drop in central bank reserves indicates the world is starting into a liquidation process for too much debt.

We don't claim here that we can predict any kind of timing for future events. We leave that to the experts. But when we see reasonable evidence based on factual data that we think readers should be aware of, we will present that here. This video from Mike Maloney would fall into that category. You can watch it just below.

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Added note: I wrote this blog piece before the big market selloff and sharp move higher by gold yesterday. Since this news has many readers paying close attention (as well they should be) below are some relevant comments on the market action we saw yesterday from a variety of sources I follow regularly.

Jim Rickards Twitter comments: Here is one and here is another.

CNBC - Five things scaring markets

UK Telegraph - Cause of the Crisis

CNBC - PIMCO - Negative interest rates catalyst for market woes

UK Telegraph - London investors line up around the block to buy gold

King World News  - Alert quoting CNBC analyst Art Cashin

CNBC- Yellen says Fed "quite surprised" at movements in oil prices

Bill Holter - Global Magin Call being Issued

These are just a few samples from dozens available in both mainstream and alternative media. Obviously it's an understatement to say we need to watch market developments closely. This kind of volatility is never a good thing no matter which direction various markets may be heading at any given point in time. It suggests to people that things are not under control. I did hear from a source within the system who said that they are not concerned that the current volatility is the start of a new major crisis.