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Could It Get Worse Than 2008?
Looking around the economic and financial world today, I see countless negative developments and virtually no positive developments to speak of.
Just off the cuff, I note that:
- China is entering a hard landing if not an outright economic collapse.
- Europe is facing a recession, banking collapse, sovereign crisis, and a potential break-up.
- The US is in a stagflationary recession.
- Japan is in a sovereign debt crisis, approaching armed conflict with China
- Inflationary pressures are increasing worldwide: new record food prices will hit within the next 12 months.
- The risk of armed conflict is increasing in the Middle East as well as Asia along with food inflation creating civil unrest/ riots.
Against this backdrop, the one remotely positive development as far as the markets are concerned is the belief that Central banks will somehow solve these problems via endless liquidity.
However, even this is now proving to be a false premise.
The problem with this is that the primary driver of stock prices over the last three years has been the anticipation of more monetary stimulus from Central Banks.
Indeed, the New York Fed itself has openly admitted that were it to remove the market moves that occurred around Fed FOMC meetings (the times when the Fed announced new programs or hinted at doing so), the S&P 500 would be at 600 today:

So, by announcing a program that will be on going in nature, the Fed has removed the anticipation of future Central Bank intervention from investors’ psychologies. This could become highly problematic, especially if these latest announcements turn out to be duds.
Sure enough, stocks are actually down since QE 3 was announced on September 13 2012.

So we’ve got over 50% of the global GDP (China, the EU, and the US) in recession, combined with Europe’s banking and sovereign crisis… at the exact time that the Fed appears to have run out of ammo.
It’s truly astounding. I cannot actually remember a single time in which the global economy and financial system have faced this many difficulties. And that includes the build up to the 2008 Crash.
Indeed, when you think about it, 2008 happened at a time when paper money was still perceived as a safehaven. That is no longer the case as the Central Banks now have the printers running both day and night. Small wonder that Gold and Silver are at or near all time highs in every major currency.
On that note, if you’d like more information on inflation and protecting yourself from it, we feature a FREE Special Report detailing the threat of inflation as well as two investments that will explode higher as it seeps throughout the financial system. You can pick up a FREE copy of this report at:
http://gainspainscapital.com/gpc-inflation/
Best Regards,
Graham Summers
PS. We also On that note, feature a FREE report concerning the threat of a European Banking Collapse. It’s called What Europe’s Collapse Means For You and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.
This report is 100% FREE. You can pick up a copy today at:
http://gainspainscapital.com/eu-report/
Best Regards,
Graham Summers
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Phoenix said up and down there would be no QE3. Didnt seem to stop him from forecasting though.
garbage
I'm new to posting but have been reading for about 1.5 years. Graham you got to be about the worst forecaster in the market, every single call you have made is wrong, one day you'll be right, but all your doing is crying wolf every week until your right. You need a better grasp of the powers to understand that they will not give up until there is nothing left to do. Tyler why do you continue to let PCR, Graham post on this site, his posts literately add nothing to your site, they are always just rehashing everything you already posted and he is here to just promote his news letter, free or not.
Like the Yahoo financial 'basic charts'.
can I say it?
SILVER BITCHEZ!
Yes, all Germany's gold is gone. Got blown all the way to hades, where it will be nice and safe with TPTB.
It just got worse...
ConEd power station near FRB-NY blows up: http://dailybail.com/home/raw-video-coned-power-station-explodes-in-nyc....
Bernanke announces Germany's gold destroyed in explosion: http://dailybail.com/home/raw-video-coned-power-station-explodes-in-nyc....
Hope that this is just a joke.
Read the Daily Bail comments, stronzetto.
http://www.zerohedge.com/news/2012-10-29/video-coned-station-fdr-and-14t...
King Dollar!
The King is dead.
Long live the king!
terrible, terrible global news, especially the epic clown show of politics and bwanking who grab all the headlines while real productive business just rocks and rolls on getting on with things in their matter-of-fact being-rather-useful manner
but musn't piss my pants, I had a really nice day, sun was out etc... apart from the global loonies, how was your day Graham?
It will get worse. Only you might grow old and grey waiting for it getting worse.
Just take some pills and relax dude and enjoy your life.
Last night my cat was simultaneously shitting on the carpet and throwing up.
Reminds me now of these posts.
Is your cat doing okay now?
When cats want to detox, they often will vomit as they are defecating. Be glad your cat isn't blocked; that gets fatal real quick. Unlike the financial DE-constipation/blockage of a global shakeout that would cleanse the system of the parasites destroying the world economies with central banking help, the massive corks to common sense solutions placed there by the criminals in power remain. Your cat did what was necessary to live. Bernanke and friends, being the parasites killing the system, will continue to do everything in their considerable power to prevent the system from shitting and vomiting THEM at our expense.
This will end badly but it WILL END SOON.
Here's a solution : shut down the stock markets forever.
Honey!, what's for diner?
OH dear, a shit sandwich rehypothicated, in the frig...
I like the first chart - Without Fed announcements, the S&P 500 index value would have been negative around March, 2009...whatever that means.
i think...uh....graham.....uh....INFLATION!....GOLD!......no if you want to know what I really think call my leprechauns and let them subscribe you to....uh........WTF is this dribble?
Palladium
http://occupymonopoly.blogspot.com/2012/10/monopoly-occupy-version.html