A Ball of Confusion, That's What The World Is Today... Hey Hey!

TEOTMSAWKI (The End Of The Monetary System As We Know It) is certainly interesting, if anything.

The markets, from stock markets, to the bond market, to commodities and fear indexes are all either at extremes or making extreme moves.  Just looking at all these movements might have you humming "Ball of Confusion" by Love and Rockets (see video here).

Let's start with the bond market.  Treasuries and Municipal bonds have been getting destroyed in the last few weeks.

Treasuries have been sliding significantly ever since Ben Bernanke announced QE2 in August.

Municipal bonds, as represented here by the Barclays Municipal Bond Fund ETF floated higher throughout September and October but have fallen dramatically lower since early November.

The last time municipal bonds fell off a cliff like this was during the heart of the financial crisis in late 2008.  This drop looks quite similar to that drop two years ago as can be seen in the following chart:

But if we are nearing a serious panic, again, then the Volatility Index (VIX) would likely not be near two year lows!

Meanwhile copper and many other commodities are at all-time highs - in US dollar terms.  And gold & silver, while off slightly from their highs, aren't showing any signs of backing off significantly.

So, what does all this mean?  More than anything it just goes to show the massive amount of confusion in the markets today.

We are in uncharted waters and the Captain of the ship is that guy with the beard who can't speak without his voice shaking noticeably and looking like he is close to breaking out into tears.

There is probably more risk now to wealth and capital than at any other point in human history thanks to decades of having every government in the world trying out a massive experiment to see if politicians can be trusted to not abuse an unbacked fiat currency.  And that's what makes it so dangerous.  Because this system is so entangled in nearly every enterprise, transaction and facet of life, when it collapses it will have massive percussions for those who aren't prepared.

And, if this video filmed about a year ago is any indication, most people still don't own gold, silver or any other type of hard assets by which they have the best chance of surviving the coming collapse.

Subscribe to The Dollar Vigilante today to get access to market research, analysis and investment ideas to protect yourself during this most dangerous of financial times.

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