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It’s Officially the Beginning of the End
More than two years ago, the day after we nationalized
Fannie and Freddie, I penned an article in which I forecast the end of the US
as an empire and the end of the US Dollar standard. Despite the fact that
others had been calling for a collapse of the US for years, my piece still
received a great deal of hostility and condemnation. The comments ranged from,
“you’re out of your mind, the US will
always be #1” to “I don’t like the
bailouts either, but you’re taking it too far.”
Here we are, two years later, and to be honest, the stuff
that has come to pass is simply mind-blowing. In plain terms, the US is now a
country in which…
- EVERYONE
knows that the Wall Street banks KNOWINGLY engaged in fraud (Citibank
executives confirmed this under oath), predatory lending, and other
felonies and NOT ONE executive has been charged with a criminal act.
- There
is clear evidence that elements of the Financial Crisis were intentionally
induced by key players in order to wipe out their competitors (you know who
I’m talking about).
- The
head of our central bank has LIED under oath about monetizing the debt
(among other things)… and walks free.
- Our
Secretary of the Treasury KNOWINGLY chose to hand out as much public money
to Wall Street in exchange for what he and everyone else knew were worthless
garbage assets. Again, no charges.
- Our
President increased troop levels for wars EVERYONE knows were started under
false pretences (and continued policies of torture!?!?!) and WON the Nobel
Peace Prize
Let’s face it… if an alien came down from outer space and compared
the US to other countries, it’d think we were just another 3rd world
country that somehow managed to get bigger than the others. We’ve got the same
levels of corruption, fraud, and lies, combined with the same looting,
indebtedness, and crumbling infrastructure.
In plain terms, this is the beginning of the end. When an
entire country’s economy is based on imaginary math, accounting gimmicks, and ideas
that don’t even make sense on paper (let alone in reality) you know that
economy will collapse.
Look at the reaction to QE 2. Even the most bullish idiot knows
deep down that nothing good will come out of it. QE 1 failed. QE 2 will as
well. Not one person has a single doubt about this. Sure, they might smile and
say it’s great on TV (or in their op-ed columns) because their job or political
pressure requires them to do so, however, their eyes tell the whole story. Not
one of them looks confident or composed… they all look exhausted, strung out,
and terrified. They should be, they know what’s at stake (EVERYTHING).
Enjoy this last little burst of enthusiasm while it lasts.
The end game has begun. There’s a reason it’s called “extend and pretend,” it’s
because it doesn’t STOP what’s coming… it only pushes it back a while.
Good Investing!
Graham Summers
PS. If you’re 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, got
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Oh my, a dead labor market. Maybe stock market and corporate earnings shouldn't be this optimistic. After all, people like you never imagined we would be here today. Never in a lifetime.
Very few people saw the housing crash coming because it was due to fraud, which is an entirely different animal. Even the bears didn't see the fraud induced collapse. It appeared like they saw it coming because they're always talking about Armaggeddon, but they too didn't see it coming.
The negatives you bring forth are the same kind of negatives we hear in just about every bear market. You could have very well have said the same thing 100 years ago. Nothing new really.
My question to you and anyone who believes all is well with the economy - why does Bernanke need to maintain rates near zero, flood the market with liquidity, and buy worthless assets from institutions? Your blog mocks facts such as high unemployment, debt levels, and currency wars yet how far back in history do we need to go to match these horrific data points? If you think things are improving short of inventory adjustments and massive liquidity, maybe you need to join your intellects at Starbucks to discuss more important matters such as the latest iPad application.
Things certainly aren't getting worst if you and I still have internet access and can post at Zerohedge.
Put yourself in the recession of the early 70's. You would have said exactly the same thing as you are saying today. We had "horrific data points" then and they asked how that can be fixed and said there was no way it could be fixed.
When everyone on this blog is syncronized to the same thoughts, you had better go the other direction:
A Typical Johnny-Come-Lately Bear Talk
The 1970s were quite different from now in a lot of ways with debt burden being the most important. Corporations, government, and individuals did not have the debt loads they are now experiencing. We just lived through the greatest credit expansion in world history. Without a corresponding debt reduction there can be no sustained (the key word) long-term growth.
As for sentiment, mutual fund cash levels and other equity measures now show that bullishness is the flavor of the month and not bearishness. However with Bernanke throwing around money and inflating assets those measures have lost their normal usefulness. Since you like to provide websites here is one for you:
http://mises.org/
I'm still waiting to hear what's gotten better. Your response was nothing but evasive.
Oh, and while you're at it, please educate us how it's possible to run a $38 budget from $22 in income, with negative savings, over any significant period of time.
And once you've told us that the income has to grow, or expenditure reduced, then you can explain how that's done without either a) causing a depression, or b) large scale inflation.
Or, alternatively, just post another evasive response.
Exactly blind faith, as well as the FBI and many other outlets were reporting. O'Rilley was stating it in 2006 on his show.