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The Great Collapse Has Officially Begun
I’ve been warning of this for well over two years. My primary warnings were:
- 1) That 2008 was just a warm-up
- 2) That the REAL Crisis had yet to unfold
- 3) That the REAL Crisis would make 2008 look like a picnic
Well, the period I’ve been warning of is now here. What’s happening right now is not just a market crash, bear market, deflation, or any other item related to just one asset class.
Instead, this is a collapse of the entire US monetary and political system and the mentality of spending one’s way to wealth.
For 80+ years, the US has operated under a crony capitalist system in which politicians dole out political and economic favors to the chosen few whose bribes/donations funded their campaigns.
This system was aided and abetted by the US Federal Reserve, which dealt with any and all economic issues by printing more money. Whether it was the Asian Crisis, Long Term Capital Management, or the 2008 Crash, the Fed dealt with the issue by opening the floodgates and flooding the financial system with liquidity.
Aside from making moral hazard (the notion that those large firms who screwed up were never actually allowed to fail) the bedrock of the financial system, the Fed also blew a credit bubble which in turn funded bubbles in virtually every asset class: bonds, stocks, real estate, emerging markets, even some commodities.
Indeed, the vast majority of US economic growth over the last 40 years has been fueled by the Fed’s loose money policies. Bill King, an analyst and investor whom I admire, shared the below chart with me a while back. It charts US GDP growth in nominal terms (the dark blue line), the performance of the Dow Jones Industrial Average (the black line), and REAL GDP growth or growth that accounts for inflation (the light blue line).
As you can see, when we account for inflation, the US economic “miracle” of the last 30 years is in fact not all that miraculous. Take away easy credit and Fed funny money and the US GDP has barely grown at all since the ‘70s.
When your entire financial system is built on debt eventually you hit a brick wall. We did this in 2008. The Fed barely held the system together by going “all in” and funneling over $11 trillion in bailouts, backstopping the major US banks, and transferring north of $2 trillion in garbage debt to the public’s balance sheet (these are just the moves we know about).
This effort has now failed as the world collectively realizes that the Fed cannot hold the system together. This began to become clear when QE 2 spent $600 billion and the US got at most three months’ worth of improved economic data (while inflation exploded throughout the global economy, leading to riots, coups, and more).
In simple terms, we’ve now entered the Real Crisis, the END GAME, for our current monetary system. Before the dust settles on this mess, the US and its political, economic, monetary structure will look very very different.
However, before we get there, we will see riots, civil unrest, possibly martial law, for certain a Government shutdown, bank holidays, a debt default/ restructuring, the re-instatement of the Gold standard or something like it (possibly a basket of commodities), food shortages, and more.
We will also see trade wars, possibly another World War, a temporary backlash against globalization, a de-consolidation or fragmentation of corporate America, and other items.
In plain terms, we’re entering a period in history that will rival the Revolutionary war. This country will be very very different by the time it has ended. Many people will lose everything in this mess. Yes, everything. So if you have yet to take steps to prepare for this, you need to get moving NOW!
I can show you how. Indeed, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.
Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).
Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.
Good Investing!
Graham Summers
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One thing I have noticed about real market moves; they aren't well telegraphed.
S&P downgrade.
Telegraphed for a year.
Ovaltine? A crummy commercial? Son of a bitch!
I have only one question to ask : When it comes down eventually will it be in free fall like WTC7, in all symmetry?
No, there will be isolated pockets of resistance. Rednecks, Anarchists, Elitist Commie Asshats, Concrete cowboys, and those remaining diehards fervently clinging to their guns and religion. It should look more like a supernova.
Look you, don't you be dumping it all on us rednecks. My neck is bright red, comes from working outside in the sun.
Now come on in here in have a drink of this 'shine. See how it glows? That's how ya know its real.
A proud redneck, I am.
LOTR, FTW.
Post-2012
DEBT CRISis <--> DEATh CRIES
[ from the collapse in World (WARld) TRADe (TRADitions / TRAITs) in business - busyness & profits - prophets ]
Who heard the DEATh CRYSis? (DEBT CRISis) CRIES of a dying system that IMPLODED on itself -- the TWIN TOWERS of DEBT - Europe & USA.
Who understood the message from 2001? The END of WORLD TRADE. (2012-2001 = 11, 11th hour countdown! Chapter 11 bankruptcy! --> reorganization)
There was no future for our global system - because it had been "MORt-GAGED to DEATH!" The future was stolen by those (still) present and generations past. "Blame" goes all around.
Mortgage = Death Gauge. -- MORgue - MORtuary - MORbid - MOURn - MURder - MARtyr - MORtal ; Spanish -- MUERte - MORir ; Lord of the Rings - Land of MORdor / MURder
History doesn't always repeat itself exactly the same (especially with all our "new technology") - but it often rhymes!
It rhymes through time like --- CHARiot - (horse) CARRiage - GARage - CAR. Who wants to learn about the code in our words? Oh...and WORLD TRADE - had been going on for thousands of years in one form or another. It collapsed MANY TIMES. Now, it has collapsed - forEVEr!
little difficult to read, but spot on for the most part circusoflife.
My take on word-play.... it's quite a slippery slope/rabbit hole.
http://aadivaahan.wordpress.com/2011/04/22/pro-gress-by-de-sign/
Vivek (ORI)
So the stock market is about to head a whole lot higher..
Whu? At some point people are going to like globalism again? Why?
So those ETFs can be sold?
I thought the same thing, WTF?
Nope, this isn's some cyclic thing.
"On a long enough timeline..."
Exactly. Globalization was the cover for de-industrializing the US while feeding it the credit sugar high to keep up appearances. That is now over and hopefully it will be taught in a straight forward, Austrian economics point of view in universities in the future.
There can and should be equitable trade (like prof Fekete described as being the norm before that twisted gold standard imposed by banksters after WWI) that can make humanity prosperous as a whole but that would require a loss of control on economic development (and, the horror, human reproduction) on the part of the banksters. I think it's inevitable but might be some awful growing pains.
"Bill King, an analyst and investor whom I admire, shared the below chart with me a while back. "
Really... you are going to argue a relative relationship over a long period using a non-log chart.
Sorry son, you just lost a ton of credibility.
yes, but there is still this!
And beer time
http://www.youtube.com/watch?v=YndXYIPlmd0
Mozart Requiem
I enjoy the exhubrance, but the collapse is not upon us. One could make the argument that the collapse began at the very dawning of human civlization, but that does not make him/her a soothsayer. The collapse of our current economic system is in its earliest stages and will take at least a few years to play out. We will have many bailouts and "scrambles for capital" mixed in. Over the coming 2 decades, we will have an arduous decline. Many people in the developed world will have to readjust their perceptions of what a "normal life" means. There will be civil wars and international wars. There will be deaths. But in the end, people will survive. Wealth will disappear but people will survive, and that's the most important thing. Preserving capital will take a back-seat to survival. And those who prepare themselves are the ones who will "win" (i.e. survive).
Why do you think it's going to take twenty years?
Because extremely powerful people will be doing all they can to put the brakes on it... whatever it takes.
to: Lord Koos Sat, 08/20/2011 - 20:59
You are wrong. The rich want to bring the system down fast, so that industry, infrastructure and military does not decay too much, like to the point of no return (MAD MAX point). It will happen this or next year ("it" being a big phat war).
Rich people think long term (by rich I mean REALLY rich).
I bet you gold this sucker comes down before noobama leaves office.
Absolutely,
TPTB will not let the system go to zero (USD, EURO) before they push the reset button and put us on their version of a "gold standard." You are not paying off your mortgage at their expense. NO way.
If mayhem breaks out, they push reset. If gold goes vertical, they push reset. If the COMEX collapses, they push reset.
Until then, it's all kick the can and slowly buy gold. China doesn't really like that, and this is why they are buying gold like crazy, telling their citizens to buy gold, and opening their own exchange. They want to escape a world harnessed by the ECB and the Fed, not enter another system dominated by it. As long as gold doesn't go vertical, nothing will change.
Are there Chinese Jews? Or do they just "purchase" a member of another tribe, like they did with Obama and Cain?
Just wondering how they intend to follow the plan they followed in the West.
Of course there are Chinese Jews, if by that you mean Jews who have lived in China for centuries.
There are also Chinese "ex-Jews" (think conversos, Marranos, Donmei, etc) who, while not openly avowing their Jewish origins and loyalties, maintain a substantial interest.
I have heard that the Li clan is one of them. The Triad mob may have similar connections. Someone Jew-wise closer to the situation might fill us in with details.
The east isn't playing along with the western Anglo white race banker world rule plan, and now that China is the largest manufacturing economy on the planet, the east is in a position to shut down the western Anglo white race banker NWO plan, which they will, especially with nuclear powers like Russia, India, etc on their side.
We're about to see a new massive nuclear alliance burst onto the world scene. It will be sudden, overnight almost.
The middle east will be their first conquest, which means America will be kicked out of the middle east. You can guess what happens to America after that.
The world must indeed seem to be ending, from the perspective of an american and/or european born and raised with different versions of the "crown of creation" mentality. A lot of people will indeed find that life and survival has become much more difficult, at best. However, there are a lot of peoples, (common, every day people, low, middle class and working class people) around the world who find themselves in a far better cultural, political and financial situation than years or decades ago. Things may seem to be ending, for some. But things are also beginning and/or changing for the best for many many more.
Sounds good, but first, they may be pale, but they are not Anglos, and there is not some uniform "white race", you refer to Russia not being on the side of the western Anglo white race, but they are pale, and they certainly are not oriental or Mongoloid, although they have had them under them.
Let us call the banksters by the tribe they belong to, which they self-identify as Hebrew or Jewish. They may be many things, but Anglo is not one of them. Of course, not all tribe members are banksters, but it's safe to say all banksters are tribe members. Much like the black hand or Sicilian Mafia, you could not be an official member without being Sicilian. Example: Al Capone, he was not Sicilian, therefore, he was never a member of the Sicilian Mafia, but he did business with them.
Second, if the Chinese are going to shut down the NWO plan, in concert with the Russians and Indians, why are they continuing to do business with the Banksters?
At the most recent Bilderberg, the elites made a decision to drop the time line, and proceed with collapse. The problem is that the populace is waking up too fast. If the old timeline is followed the majority will be awake by then and it would be like Paris 1792. The Elites are scared to death. The recent SNAFU with Ron Paul in Iowa was a good example. The MSM coverup didn't work and actually ended up giving more notariety to RP than he would have gotten if they had just played it straight.
There has been an emergency change of plan. The other giant clue was S&P downgrading the US. S&P is totally corrupt, this action was done to initiate the first stage of SHTF and achieve exactly this result.
If you want to stick with your normalcy bias, by all means, go ahead.
Alex? Alex Jones? Is that you bro?
What's your window into the Biderbergers?
I think if/when it goes it will be fast, like catstrophic failure in carbon fiber: >SNAP<
They have not stopped weekend silver from trading at about 46 heading ever closer to 50.00
Where do you monitor that?
The CME, (google it); click down to Silver; the Globex, electronic trading starts at 5;30 Central time on Sunday. Kitco, "Charts Page"; bullionvault.com; shows actual trades all day. That's kitco.com; google it.
what is weekend silver? would that mean regular-week silver would automatically open at 50 on monday?
As Chris Martenson so wisely puts it, I'd sooner be years too early than a day too late.
Chris Martenson said that? Shoot, I thought I was the one that came up with that. Oh well, I live by it regardless.
Beans, Band-aids, PM's, Plenty of guns and ammo, Farm ground and Family. All you need. Get busy.
Have any of you guys been thoughtful enough to report all or part of your PM's stolen?
They won't come for what you don't have
Bartered all of mine away. For a 4 wheeler, a tractor, a water filtration system, painting the house, you name it. Whatever I paid cash for, I'm claiming I paid it in PM's. Also never purchase above $10,000 at once.
Coffee! Dammit, everybody always forgets coffee! Who wants a bunch of well armed rednecks running around without having had their morning coffee?
Stocked up when Walfart had it on sale for $5.47 for 39 oz. About the only good thing they're good for.
Not me.
In fact, just this morning my oldest daughter was asking us why we have so much coffee in the basement.
Definately Coffee, You want "green" unroasted beans. Don't store them in the burlap, they get "baggy." Transfer them to plastic or glass containers. If you still have electricity you can use an air-popper to roast them. If not then you can roast them over an open fire in a cast iron skillet (the Ottoman's used copper I believe) Roast only what you need, coffee oxidizes pretty quickly and is not as flavorful unless vacuum packed. Salt (food grade rock salt is fairly cheap still) and sugar will also be good barter items. Black pepper too....
Black pepper has shot up in price. Suprisingly, two small McCormack cans were cheaper than one [less than double] large can. I guess I had better purchase more.
+55
I have started roasting green beans. The electric roaster I got at Goodwill for $3 is ok, but my cast iron skillet is perfect, gets them much darker and oilier. Don't use the roaster anymore (Melitta, old model from 1983 but was unused when I bought it 6 months ago).
I have 17 2lb cans of ground, and about 43 jars of Nescafe' Mexican Instant. I'm headed off today to get some backup.
How long does that stuff store and still be palatable? (ground and Instant)?
Guns, yes but
Anything imported or addicting.
Coffee
booze
tobacco
screening (no electricity, the windows must be opened)
food, lots of food
medicine
power (movie night)
And above all else, PMs
Toothpaste and toilet paper, Alchohol(rubbing and drinking).
Hydrogen peroxide,cigarette lighters,tobacco......
I'm reading this all over the web, When this many people are expecting and preparing for an event,it becomes inevitable,on a spiritual level.
The grand driving consiousness of the masses has always driven events when the FIAT SYSTEM fails, as it must.
Many will lose everything without this mess too. See the defintion of "idiot", or "fool".
I will go out on a limb and say that in 5 years we will still be talking about being in a mess, still trading equities and PM's....and still living.
But now...it is beer time in Texas
I doubt it, every system has a breaking point the current political/economical system has reached it's
Just like the Soviet model reached it's breaking point after 70 years(hastened a bit by Regan's politics)
Just like the feudal system reached it's breaking point with the advent of the Machine Age
Just like the Dark Ages reached their peak with the advent of the Printing Press
The current system post WW1 is at it's end, idk what will come next but it's inevitable
..
I think we're entering the phase of a new 100 year War(s) till the world finds a new balance