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We’re Now Engaging in the Same Disastrous Policies… Only On a National Level Pt 1

Phoenix Capital Research's picture




 

The
financial world is entering a massive process of transition though most folks
have failed to see it. That process is that of Ben Bernanke being forced to
resign and the US Federal Reserve being broken up.

 

I know many
people believe the Fed is always going to be in power, but they are wrong. The
US Federal Reserve is in fact the third central bank the US has had. And it,
like the other two, will be dismantled in the next five years.

 

The reason
for this is quite simple. The REAL Crisis (of which 2008 was the warm-up) is
fast approaching. When I say REAL Crisis I mean full-scale systemic meltdown, a
situation in which the market accomplishes what the Fed, regulators, and US
Government at large have failed to do: clean house.

 

The plain
facts are right in front of us. The US is broke on every level: Federal, State,
Local, and individual/ consumer. We all know this, but we don’t want to admit
it because doing so would likely mean wiping out at minimum 30% of what we have
today.

 

Nobody wants
this. Consumers don’t want to lose their retirement accounts or their savings.
The Government doesn’t want to lose its unending virtual checkbook. Politicians
don’t want to lose their financial backers (the oligarchs). And the Fed
certainly doesn’t want to lose its massive Free Lunch.

 

However, it
is clear to everyone that the system is broken. Consider that the very policies
that Wall Street developed resulting in the 2008 meltdown (excessive debt,
fraud, too much leverage, etc) are now being applied to the Federal balance
sheet.

Indeed, the
Fed’s response to the Financial Crisis was to do the exact same things Wall
Street did.

 

The only
reason it worked for a time was because investors continue to believe that the
Fed is some kind of omnipotent financial authority that can take on all debts
and back up all monetary transactions. The reason they’re willing to believe
this is because not doing so would result in the collapse I referred to before.

 

To use a
metaphor, if your house has a broken foundation (the financial system), you can
prop it up using various structures (the Fed). However, eventually the
foundation gives way regardless of the support.

 

We are
already seeing this happen in Europe. The Euro is up but the entire European
system is broken. No one wants to be a part of it any more. Only the
politicians and bankers are trying to keep it together (largely because they
don’t want to lose their influence).

 

However,
elections in Germany are making it clear voters will obliterate anyone who is
pro bailouts. As a result of this, the tide is turning. Large-scale reform and
changes can take a while which is why the process seems to be occurring in slow
motion.

 

But the
process is occurring. And nothing can
stop it. You can fight the tide tooth and nail, but it will turn regardless of
your efforts.

 

The same
situation will hit in the US in the future.  I’ve already detailed why the US Dollar is holding up (it’s
priced against other paper currencies) despite the fact an exodus from the
greenback is occurring.

 

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.

 

Best Regards,

 

Graham
Summers

 

PS. 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 ALSO access this Report at www.gainspainscapital.com under the FREE Reports Tab.

 

 

 

 

 

 

 

 

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Wed, 04/06/2011 - 23:46 | 1144077 headless blogger
headless blogger's picture

I think this has been the plan for some time now; to burn the Fed out and then re-establish the "system" in an international sense. This is why Ron Paul still has a job in the Congress. If he was saying the stuff he does about the Fed 10 or 20 years ago his career would have been killed a long time ago.

These internationalists are making a big move soon that will create terrible times for so many people. They don't care. It's about establishing their unions and powerPowerPOWER.

I have never wanted to pay homage to Queen Elizabeth. To me those people represent the worse kind of welfare in the world. Image the audacity of her son, charles, telling the commoners in Britain to get rid of their cars and walk more...to save the "quaintness" of England. That is what the welfare recipient did, while his own garage is filled with 6 expensive cars.

Several sites on the internet (NOT zero hedge) are playing this whole scenario up....It's all about how terrible Americans are and the country needs to be dissolved etc. Nothing is ever mentioned about the European "families" that are quietly in the shadows.

The people behind this mess don't even seem concerned. It's all on their blueprints for "change".

If you think I'm crazy...I'll take this a bit further; go look up the population trust. In their site, which is run by names you will know, they have excel spreadsheets of the world populations and how much needs to be trimmed to get in alignment with the proper "footprints".

I've read everything I can about the economy from every perspective, for the last 10 years. It is some of the "whacko" conspiracy theorists views that are coming true. Some of them were predicting the crash of '08 back in 2002. Some of them even had the year down correctly when the initial crash would happen...

The information is there and has been all along for anyone to have followed. You don't need to be an economist or statistician to see it.

 

 

Wed, 04/06/2011 - 21:27 | 1143670 AimlowJoe
AimlowJoe's picture

I hate these articles by jokers trying to sell something. They are part of the problem.

I got nothing to sell here.

Aimlow Joe was here.
http://www.aimlow.com

Wed, 04/06/2011 - 18:35 | 1143115 Geoff-UK
Geoff-UK's picture

Can we please remove posting privileges from PCR, Ackerman, Reggie Middleton (if only to reduce our chart porn here at ZH) and lastly and most importantly, Charles Hugh Smith?

 

I would be willing to send money for a subscriber option at ZH that lets me auto-delete their posts on my RSS feed.

Wed, 04/06/2011 - 14:48 | 1142089 CustomersMan
CustomersMan's picture

 

                EU and US Central Bankers, we're cumming for you (and I don't mean that in a sexual sense)

 

           The entire purpose of creating the EU and its Bank was and is to take away the power of countries to create their own currencies. It was modeled after the FED and its goal to usurp the "powers" that belong to the States' Treasury, and wouldn't you know, the same miscreants are involved.

 

         I hope people are being creative regarding what punishments should be meted out when we find and capture them from the far corners of the world, and videoed in HDD. And remember, There are no wrong answers.

Wed, 04/06/2011 - 14:02 | 1141897 tomster0126
tomster0126's picture

The real collapse really is coming in the future, 2008 was just a teaser.  Thanks for the free tips Graham, you know your stuff!

i also like this site, it's very similar: www.forecastfortomorrow.com

Wed, 04/06/2011 - 15:13 | 1142216 Financial_Guard...
Financial_Guardian_Angel's picture

Stop putting this f*ing advertisement on your posts and GTFO of here.

Wed, 04/06/2011 - 13:18 | 1141666 MolotovCockhead
MolotovCockhead's picture

"Polar expedition delayed.....due to extreme cold!"

 

Should read :- Polar expedition delayed.....due to extreme cold caused by GLOBAL WARMING!!

Wed, 04/06/2011 - 13:01 | 1141553 Gold 36000
Gold 36000's picture

uhh...the thirty percent is already wiped out.  What is not wiped out is the faith that it is still there.  Everyone took a massive haircut, except precious metals hoarders, and most of them didn't hoard enough to matter if they lose their jobs.

There are too many claims on assets and future obligations right now.  moderate inflation is one way to get rid of those claims in Keynes sneaky way that not one man in a million can diagnose.

The other way to get rid of those claims is limiting healthcare and redistribution to the parasite class.  They have the least rightful claims to any national assets.  Our future is pay as you go!  Of course most poor people don't even realize now they are getting shitty health care, and when medicaid and medicare are block granted it will get even shittier.  We need more smokers and fewer helmet laws.  At least if we cull the stupid, the non producers, and the unfit our country has a chance to be great again and allocate capital to productive uses which will make us all better off in aggregate.

Wed, 04/06/2011 - 13:33 | 1141750 Clint Liquor
Clint Liquor's picture

Agreed. The advancements in Human Evolution occurred because the dumb ones got eaten.

Wed, 04/06/2011 - 13:40 | 1141807 dracos_ghost
dracos_ghost's picture

Except the dumb ones now run Congress.

Wed, 04/06/2011 - 14:08 | 1141921 LFMayor
LFMayor's picture

So send in those hippy eating grizzlies.  And a few white tigers for the pole smokers, like sig (or was it roid) discovered.
end of problem.

Wed, 04/06/2011 - 12:33 | 1141442 CustomersMan
CustomersMan's picture
Polar expedition delayed ... due to extreme cold!       I guess the same people are working on both projects
Wed, 04/06/2011 - 14:30 | 1141400 Jay Gould Esq.
Jay Gould Esq.'s picture

Dismantled in the next five years ?

Hardly.

This nation's fiscal business is being marshaled by a caterwauling House Speaker who cannot even make good on campaign promises from five months ago, let alone wrangle $14 trillion in Government liabilities. Indeed, Paul Ryan would likely chime in with some nonsense decrying the abolition of the Fed, because it would actually cost more money: "What would we do with all those 'Federal Reserve Notes ?' We'd have to replace all of them. I'd rather keep talking about how much we are talking about cutting, rather than talking about how much more to spend !" 

Abolition of the Fed ? Not a snowball's chance in Reactor 2.

Wed, 04/06/2011 - 12:21 | 1141371 Sudden Debt
Sudden Debt's picture

In the case for Europe: Nobody here gives a fuck what it means to be a European because nobody knows any advantage besides that you can use 1 currency while traveling.

Every countries packs enough history "why not to like thy neighbour".

My country for examply:

Belgium. => borders : Netherlands, France, Germany, England.

We hate the Dutch.

We ignore the French

We think English are the decadent paria of Europe.

And Germany, they are kind of oké but only from a distance.

And same goes visa versa. They all think the same about us and their neighbours.

 

SO: WHY WOULD WE PAY THEIR DEBT?! Let alone Greek, Spanish, Portugese...

We only go there on vacation, they overcharge us on everything, and "working" is a foreign word to them.

It looked good on paper, as long as it didn't cost anything and didn't bother anybody.

Now suddenly it starts to cost money => I don't want that! THERE'S JUST NO ADVANTAGE IN DOING SO!

+ I'm a nationalist. WHY would I want to see my country dissolve into Europe?

 

Wed, 04/06/2011 - 14:09 | 1141936 LFMayor
LFMayor's picture

I don't know why you're bitching... at least you can go vacation at these places you're paying for.  When's the last time you heard of anyone wanting to vacation in East St. Louis or Compton?

Wed, 04/06/2011 - 13:12 | 1141640 Missing_Link
Missing_Link's picture

Wish there were more Europeans like you, Sudden Debt.  It's blindingly obvious from here that the Eurozone experiment has failed.  France, Germany, Great Britain, Belgium, etc are extraordinary nations on their own; together, they're nothing but an uncoordinated bureaucracy trying desperately to carry Greece, Icelandm Portugal, etc, and failing.

The old Europe was great when it wasn't fighting itself; I hope it comes back someday.

Thu, 04/07/2011 - 05:42 | 1144500 falak pema
falak pema's picture

you are Marie Antoinette's daughter : let em eat cake, provided its locally made!

You don't even know the greatest contribution your country made to the world : the horizontal economy. Democracy and  'regulated', Keynesian (in the true FDR sense, not current junky FED sense) free markets, without dominant positions, PLUS Eleanor's contribution : universal human rights, the MINIMAL level of individual liberties/dignities that every nation state should agree on.

That framework, Gl-ST + BW, was the best we, the collective west and free world,  ever had. Admittedly income taxes were high to pay the govt. WW2 debt. So that had to come down. But what killed that model : hubris in Vietnam, then the financial bubble economy starting with BW abandonment and then supply side "you're the boss WS" Reaganomics, no holds barred deregulation; after Volcker did the right Keynesian thing to kill inflation by starving the 'price/wages' beastly inflationary spiral.

The Old, but 'new good' Europe grew up on this Keynesian soup, and it worked until USA kick started the libertarian mess after the oil hike. Now having built this new sterile economic BS paradigm, that will kill it's home bred capitalism for two decades, it's hit the global fan this libertarian soup sold to the world by the tricky 1% of US Plutocracy, those who've betrayed democracy down to their very shoe strings. So eat your own dirty soup, Marie Antoinette's daughter, that would sell 'racial tribalism' to the Europeans, xenophobia and nationalism that'll suck us back to Armageddon. And leave EU to find a new economic paradigm built on collective prudence and solidarity that does not kill INNOVATION and entrepreneurship.

Wed, 04/06/2011 - 15:49 | 1142419 pasttense
pasttense's picture

This is exactly why there is the European Community--it was set up to prevent fighting (the precursors were set up right after World War II).

Wed, 04/06/2011 - 13:06 | 1141583 Gold 36000
Gold 36000's picture

very astute for a flannel monster.

 

Most people don't realize that euro solidarity is an elitist invention and not shared by the majority.  Of course anyone on the receiving end of a subsidy is all for a "european identity."  But the majority can't be net parasites on the system and keep it alive.

Europe will be a lot better off and a lot stronger when the nationalist parties and the right dismantle the two most eggregious aspects of european social unionism, immigration of non europeans and cutting off those southern european parasites.  Europe for Europeans! (and european descendents in other locales.)

Wed, 04/06/2011 - 13:14 | 1141651 Missing_Link
Missing_Link's picture

+1

Wed, 04/06/2011 - 12:35 | 1141450 falak pema
falak pema's picture

what country is that ? Wallonia or Flamandia? You are the prime example of navel gazing. 

Wed, 04/06/2011 - 13:08 | 1141597 Gold 36000
Gold 36000's picture

He is a prime example of european socialist elites ignoring the sensible majorities in each country.  Flannel monster has some good insights every once in a while.

Wed, 04/06/2011 - 12:19 | 1141358 ShowMeTheTime
ShowMeTheTime's picture

WTF?

 

Is this even an article/story?  The only line that at all is educational is the part about Germany and the elections are all turning out "no more bailouts on our dime".

 

This is more of a SPAM ad than an article.  How does PCR get so much posting freedom on ZH?  Pictures of Tyler with a monkey and banana?!?

 

 

Wed, 04/06/2011 - 15:13 | 1142226 johnrandi
johnrandi's picture

I went to the trouble of posting here for the first time.  I agree that Mr. Summers posts appear to be more advertisement than education.  I researched his site and found some highly emotionally driven, sensationalized, broad sweeping, money losing calls.  Granted, anybody can get it wrong some of the time, but it was the broad based generalizations (top calling) that could cost ZH readers money.  I think ZH should remove the "advertisement" from these posts.  Its easy to find G Summers without the ad.

Wed, 04/06/2011 - 13:11 | 1141636 Brian
Brian's picture

+1 Agree

I wanted to post a similar comment about this ongoing spam a few weeks ago.  I think ZH should consider any "article" with no content other than a link to "My Free Report" as spam.  If the report is "Free" why not post it here?  Obviously it is not really free for us to read, so this is a ploy to get ZH readers hooked in with a tease and then bang us for cash.

Wed, 04/06/2011 - 12:25 | 1141402 Yield2Greatness
Yield2Greatness's picture

Agree.  Preaching to the choir with last weeks (and the week before and the week before...) sermon.

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