It’s 2008 All Over Again… Only Worse

Phoenix Capital Research's picture

Bernanke and
pals wanted to recreate the same booming leverage and fiscal insanity of the
bubble years. And they’ve done that in a big way. Among their various
successes:

 

§  Commodities
are at levels not seen since 2008.

§  Gas
prices are at levels not seen since 2008.

§  The
US Dollar has fallen to levels not seen since 2008.

§  Bank
leverage is at levels not seen since 2008.

§  Microcap
stocks are at levels not seen since 2007.

§  Wall
Street bonuses are at levels not seen since 2007.

 

It’s really
striking the similarities. And all the Fed and US Government had to do was:

 

1)   Make
itself insolvent

2)   Bankrupt
the US

3)   Spend
Trillions in Bailouts and Stimulus

4)   Trash
the US Dollar

 

So what’s
the difference this time around?

 

Well, first
off, the US consumer is in far worse shape than in 2008. The US has lost some 7.5
million jobs since 2007. The U-6 unemployment rate (which accounts for
unemployed and underemployed) stands at 16.2%. These folks are in far worse
positions to stomach higher fuel and food prices this time around.

 

Speaking of
which, the number of people on food stamps is also up 58% since 2007. However,
even this safety net is proving less and less helpful as food prices skyrocket.
Indeed, Wal-Mart’s CEO recently commented that the firm’s customers are “running
out of money” due to higher fuel prices.

 

As for those
who have been receiving unemployment checks, the situation is getting grim.
Some 2.3 million of them have lost their coverage since last year. The Feds
claim that the US economy created 1.3 million jobs so only 1 million of the 2.3
are people who lost coverage and have no income. However, everyone on the
planet knows the “jobs created” myth is as full of BS as the “recovery” myth.

 

My point
with all of this is the following: we have entered a period quite similar to
2008 all over again. Energy and food prices are soaring. And the US Dollar is
collapsing.

 

The only
difference is that this time around, the US economy is FAR more fragile than it
was in 2008. The average American has far less to fall back on than in 2008.
And there are far fewer people with jobs than then.

 

On top of
this, the US debt load and balance sheet is far FAR worse than it was in 2008. We’re
running deficits and debt-to-GDP levels comparable to Greece.

 

In other
words, when this mess comes unhinged it’s going to be much, much worse than in
2008. And believe me, it WILL come unhinged.

 

And this
time, when it does, the Fed will have NOTHING to stop it. The Fed’s already
grown its balance sheet to roughly $3 trillion AND used every weapon it has to
combat Round One of the Financial Crisis. So when the next round hits this time
around, the Fed will be powerless to do anything about it.

 

On that
note, if you’re getting worried about the future of the stock market and have
yet to take steps to prepare for the Second Round of the Financial Crisis… I
highly suggest you download my FREE Special Report specifying exactly how to
prepare for what’s to come.

 

I call it The Financial Crisis “Round Two” Survival
Kit
. And its 17 pages contain a wealth of information about portfolio
protection, which investments to own and how to take out Catastrophe Insurance
on the stock market (this “insurance” paid out triple digit gains in the Autumn
of 2008).

 

Again, this
is all 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.

 

PPS. We ALSO
publish a FREE Special Report on Inflation detailing three investments that
have all already SOARED as a result of the Fed’s monetary policy.

 

You can
access this Report at the link above.

 

Best
Regards,

 

Graham
Summers