Gold & Stocks Smashed, Expect Massive Spike In Fear

With gold and silver getting smashed, along with stocks and commodities, today King World News interviewed James Turk out of Europe. Turk told KWN, “while the Lehman Brothers (event) was bad, it was just a warmup for a much worse financial catastrophe ... We’re just getting started in terms of a fear event.”  Here is what Turk had to say regarding what is taking place:  “Everything is getting smashed today, Eric, but this is what you can expect when you are going into a ‘Fear Event.’  Doesn’t this (type of action) feel a lot like what happened when we went into the Lehman collapse?”

“The T-Bonds are up, the T-Notes are up, the dollar is stronger and the Dow and gold are getting hit.  I think you are going to see gold and the Dow start separating here, particularly given the fact that the Federal Reserve really didn’t come in with QE yesterday.

Had they done a QE program, that would have juiced the stock market.  But they didn’t come in with that, the stock guys are disappointed and therefore they are selling off the stock market today....

“Operation Twist is just kicking the can down the road.  The Fed felt it had to do something, but it’s getting so close to the election that I think they decided not to do QE at this time.  The other thing is they are probably saving QE for another major crisis, whether it’s a bank failure, a derivative blowup or something of that nature.  

The Fear Index right now is at roughly 3%.  Back at the end of the 1970s, during the Carter Presidency when we had all of the severe inflation, it (the Fear Index) was at 10%.  Back at the height of the Great Depression in the 1930s, it (the Fear Index) was at 30%. 

So if we matched what happened in the Great Depression, it (fear) would become ten times worse than it is today.  But even if we just matched the level of fear that prevailed back in the late 1970s, it (fear) would be three times worse than it is today.

So while the Lehman Brothers (event) was bad, it was just a warmup for a much worse financial catastrophe coming down the road.   We still have a long way to go.  We’re just getting started in terms of a fear event.

If you work with the premise that I have been working with, that ultimately fiat currencies are going to collapse, that this 40 year experiment with fiat currencies is going to end and it’s not going to be pretty when it does, you have to come up with an alternative form of money.

So if you accept the notion that gold has been money for 5,000 years, as this experiment with fiat currency continues to unravel, more and more people are going to go into gold.  Individuals have to take the long-term point of view, accumulate gold and silver and view it as savings.  Focus on what is an uncertain future and protect yourself and your family by owning a tangible asset outside of the financial system.”

I want KWN readers globally to really stop and think for a moment about the level of fear escalating ten times higher than what we have seen during this cycle.  At some point you can expect the turmoil in the financial world to literally be terrifying.  You must make sure you own physical gold and silver because this will help you mentally during the chaos that is yet to come.