What is Ice 9 or the Big Freeze?
To begin, Ice-Nine is a term coined by novelist Kurt Vonnegut. In the early 1960s, Vonnegut published a book called Cat's Cradle which is a doomsday scenario.
A doomsday machine is built in Cat's Cradle. Ice-Nine a molecule discovered by scientists is substantially similar to water (H2O) with two exceptions.
For starters, it has a melting point of 114.4°F and it is frozen at normal temperature. Another property is that when a molecule of Ice-Nine comes into touch with a molecule of water, the water transforms into Ice-Nine. In other words, it condenses into ice.
The plot of the novel was that there was a limited supply of Ice-Nine, and the scientist delivered it to his three children in vials. It didn't matter as long as the vials were sealed. If you open the vial and pour the Ice-Nine into a stream, the stream will freeze as well as the lake, river, and the ocean which would make the entire plant turn into ice. We'd be in a new ice age and all life on Earth would be extinct.
It's a doomsday device.
That served as a metaphor for what is about to happen in the financial system and the upcoming financial crisis.
The solution to Ice-Nine is physical gold and silver. In an Ice-Nine scenario, I don't believe they're in danger but, I do believe that gold and silver are one way to survive Ice-Nine.
In 1998, we witnessed Wall Street band together to bail out the hedge fund Long-Term Capital Management. Then, in 2008 the world's central banks banded together to bail out Wall Street. Who will bail out the central banks in the next crisis? perhaps in 2025, sooner or even tomorrow?
Each bailout becomes larger than the one before it. Each crisis becomes more severe than the one before it. We are now at a position where central banks' ability to reliquify the system is in doubt due to overstretching. The balance sheets of central banks are excessively bloated.
Central banks have already produced so much money, that it is unlikely that they can do it again. especially, at current levels without undermining confidence in the dollar and all major currencies.
The question is, where will liquidity come from in the next financial crisis if central banks cannot provide it?
The IMF is the answer. The International Monetary Fund is the only major financial institution with a pristine balance sheet. It has the ability to print money and It's known as the SDR, or Special Drawing Rights. I refer to it as new world money.
The IMF has the ability to flood the market and the world, with trillions of SDRs that are equivalent to trillions of dollars. that is exactly what they will do. However, the only issue is that the IMF has a problem with this paradigm. It has a 24-member executive committee that represents 24 governments or groups of nations from throughout the world. Every five years, the voting rights are changed.
It just so happens that in 2017 and 2022, one of those five-year evaluations in which they planned to have a meeting to discuss expanding voting rights in Brazil, Russia, India, China, and South Africa (BRIC) took place. Within the IMF paradigm, the so-called BRICS will gain additional votes and possible veto power.
There will be a period of bargaining when the IMF issues world money (SDRs) to reliquify the planet. It will take months to finish. This took place over the course of 11 months during the previous crisis. When the crisis occurred in September 2008, we saw Lehman Brothers fail and the IMF began issuing SDRs in August 2009.
Even though they respond on a case-by-case basis, it will take at least 3 or 4 months to receive SDRs. Central banks will be pinned in the interim period between the crisis and the moment when the IMF can respond. They'll most likely lock down the system.
People believe money market funds are money. They are not money; they are SEC-regulated mutual funds. People believe that they can simply phone their broker, sell to a money market fund and have the money in their bank the next day.
That will not be the case in this situation since everyone will be acting in unison. That's what happened in 2008, when Ben Bernanke and Hank Paulson went to the White House and told President Bush that the system was imploding and that he needed to act quickly.
That was such a shock at the time, that they are not going to give you your money if it happens again and instead They're going to secure it. The problem, and this is where the Ice-Nine image comes in, is that you can't simply lock down a portion of the system when it's spreading.
People will just withdraw their money from banks if money market funds are restricted. Then you'll have to shut down the banks, which will cause people to sell their stocks and the stock market will be closed. When one path to liquidity is closed, people will seek alternative routes.
The metaphor for Ice-Nine is that it spreads from molecule to molecule and institution to institution, necessitating a system-wide freeze.
It happened in parts in 1914, 1931, and 1933 and again to gold in 1971. There is no precedent for a total freeze but, we are getting close.
The point is, how do you guard against this? There are just so many things you can do.
I don't propose going down to the bank and withdrawing all of your money. I also would not have more than the insured amount of $250,000 in the United States. You can divide it among your chosen banks so that each is backed and guaranteed up to the limit.
The issue about gold and silver is that they must be kept in physical form, in a secure location and in a non-bank setting. Putting it in a bank's safety deposit box is problematic Due to the fact that by the time you need it the most, the banks will be closed.
That's Ice-Nine for you. In the stated world, the dollar price of gold will approach, if not exceed $10,000. Don't wait for gold since you won't be able to get it when everything comes to a head.
Ice-Nine is a financial system freeze that has occurred previously and will occur again in the next crisis. Physical gold and silver are the solution to Ice-Nine and you should obtain them while you can.
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