by Daniel R. Amerman, Gold Seek:
The “Perfect Storm” of 1991, as described in the best-selling book by Sebastian Junger, resulted from massive weather systems converging to create the storm of a century.
In the financial world at this very moment, we have eight different “weather systems” that are all developing in real time. While the defenses in place may be able to easily withstand any one or two of these concerns in isolation – the danger is the increased power of a “storm” that can result from the merging of multiple systems together.
Using a weather analogy is appropriate, because there is little predictability at this point, everything is still developing (the “storm fronts” are still building), and while some of the factors are long term, others have just been emerging in the last few days and weeks. However, if several of the more powerful components were to converge – and reinforce each other – then we could very rapidly reach the point of greatest financial instability that the world has seen since 2008.
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