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We Warned You It Was Coming
This article originally appeared in the Daily Capitalist.
U.S. and foreign stock markets took a beating Thursday.
I wish to take this opportunity to thank the Daily Capitalist's DoctoRx who gave us a heads up on the markets starting early in May. In his articles since then he has continuously warned us about the stock market and gave us sage advice on gold, gold miners, and silver investments. The Doc has a strong record of investment success over almost 30 years of investing. He is also Austrian in his views and we are grateful that he is contributing to the Daily Capitalist.
And, to sound my own horn, hopefully not too loudly, we have been forecasting economic stagnation for quite a while. So while most economists had believed the U.S. economy was headed for strong economic growth, we were warning that this was coming since February, 2010, and the data has borne us out. We believe that our foundation in Austrian theory economics has allowed us to give the only satisfactory explanations of what is occurring in the economy.
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Smells like 1929 all over again
1470 US millionaires paid no tax in 2009
http://www.presstv.ir/detail/192544.html
US millionaires are now paying about one-quarter less of their income in federal taxes than they did in the mid 1990s.
It's not the economics of the AAA rating that matters and the scary thing is TPTB know this. It is just one more chink in the armor of americanism that the government has allowed to occur because they are all corrupt and could care less about people. These assholes will of course blame each other, George Bush, the Tea Party, too much pork, not enough taxes.....and the band will play on as the Titanic sinks!
Unlike the rest of you, from what I can tell reading the above posts, I do not think the DOW will be allowed to crash or slide below 10,000. The people have collectively lost 8-9 trillion in homeowner equity, nearly all of that middle class losses, and if they now were to lose their 401K's and IRA's and defined pensions because the equity markets fold up there would be political hell to pay, for all the political class. I think at least part of the next round of QE will be putting support under equity markets using the little guy as justification, though in reality it will be bailing out the investor class, but because so many little people have some equity holdings that they do not want to see vaporized they will go along with it, even though the end result is nominal increases with real losses due to the inflation it will bring.
But, I could be wrong, the grand plan may call for a crashed stock market. What the hell, if they had their reasons for crashing housing they might also have a reason for crashing bonds or equities.
I think part of the plan is for us little people to loose even more. Consider this senario: If you want to destroy America how would you do it? Militarily? Nope. Economically? Yup. Well, first, I would introduce a ton of easy credit into the economy. It creates a ton of jobs and gives americans a false sense of prosperity. People buy new homes, new cars, etc. Everyone is happy. The government can now increase spending but no body complains because more people are paying takes to support the increase in govt. spending. The economy is going great. This can go on forever right?
But then you remove that easy credit. What happens? People loose their jobs,homes, 401K's are greatly reduced, and most important, the govt. spending is still there but the revenue is greatly reduced which leaves us with huge deficits. What do the politicians do? Well, they pass tarp, stimulus programs that didn't work, pass a huge health care plan, etc. All to create even bigger deficits. I believe this was all planned by the Elite bankers and other secret monetary controllers of the world (whoever they may be) to weaken the US government and America. They don't care about politicians taking a hit because the politicians are receiving their rewards for going along with this grand plan. The crash of 2008 didn't happen by accident, it was planned. And one reason it was planned was to create this huge budget deficit.
And they aren't finished. They just started.
They want to make things so bad that we will have no choice but to beg for a one world currency and one world government. They themselves have been telling us all along that this is what they want.
This huge govt. deficit that the elite created (with the kind support of our corrupt politicians) is part of their plan to crash the bond market. See what is happening in Europe? It's coming here. Check out my other posts on this page (I have 2 or 3 ) to see what I think are the sequence of events that will take place next. I may be wrong, but it can happen.
Don't ever believe what these people are telling us, making us believe they are the good guys. They aren't. They are wolves in sheep clothing. Look at how things were planned in the past and maybe we can see the plans for the future. They are that devious. They don't care about people. They only care about money, power, and control. Their agenda speaks for itself.
Why are we in Libya again? To protect the civilians? Yea, right.
Getting away from the whole sickening Wisconsin thing, I noted that all the pundits were patting themselves on the back when the Dow rallied Friday. Then I saw something that really made me vomit - the A/D for Friday's DJIA. ADV: 795 DEC: 2,221. A sign of recovery?
Until personal income increases, we're f*****.
Happy dayz are here again, yeah, sure.
http://www.youtube.com/watch?v=L_Kuo8lb6Bg&feature=player_embedded
Downgrade: America Thanks Tea Party?
Question for all you Zero Hedgers;
With S&P downgrade of US debt, does it tie hands of Bernanke Fed to introduce QE III ?
If so, will not market tank on Monday ?
The funny thing is, that many gold miners went DOWN and notup (Focus Minerals, Monument Mining etc.)
Yeah. Everybody's claiming they forecast a bad economy, now. Duh.
Probably did in their board rooms but put on the bull mask for the cameras. You know, got to appease their masters.
S & P rating shows cut shows the value of the politics and accounting practices used in the S & P 500 equities.
Dadong is actually a better rating agency
Except I don't see Dadong downgrading China. I guess those vacant cities are paying off nicely.
The ONLY chance of hope that we have is if the Markets trip their 10% down breakers EVERY SINGLE DAY NEXT WEEK!
The DOW does not trip until a 3600 point movement I believe. Milestones
At the start of each quarter, the NYSE sets three circuit breaker levels at levels of 10%, 20%, and 30% of the average closing price of the DJIA for the month preceding the start of the quarter, rounded to the nearest 50-point interval.
A 1,200 point drop in the DJIA will halt trading for one hour if the decline occurs before 2 p.m.; for 30 minutes if before 2:30 p.m.; and have no effect between 2:30 p.m. and 4 p.m.
A 2,400 point drop will halt trading for two hours if the decline occurs before 1 p.m.; for one hour if before 2 p.m.; and for the remainder of the day if between 2 p.m. and 4 p.m.
A 3,600 point drop will halt trading for the remainder of the day regardless of when the decline occurs.
Point levels are set by using the DJIA average closing values of the previous month, rounded to the nearest 50 points and these levels are adjusted quarterly.
Not to speak out against tax cuts, but the conservatives have been saying all along that tax cuts stimulate the economy and create jobs.
Well, we had Bush tax cuts in place since 2003. Since then, we slipped in to the worse financial crises since 1929, lost more jobs than ever, slipped into the worse recession since the Great Depression, and our credit rating just got reduce. The only thing that stimulated the economy was easy credit that they gave to everyone, until they pulled the plug on it of course. Now we are perhaps in the midst of another recession...So how do these tax cuts stimulate the economy again? The only jobs that were created and the only economy that was stimulated was in China, not here. The rich continue to do everything possible to maximize their income. Export jobs, push for tax cuts, launder their money, etc. In the mean time our country is going to hell. (There are a lot of rich people who are good, who care about this country and it's people, this finger is not pointed at them.)
I would also like to mention that taxes pays for our military (to protect our country and the wealth of the wealthy), law enforcement (to protect our property and us), food stamps (so those pictures we are seeing in Somalia won't become pictures of us), medicaid (one shouldn't die simply because they are poor), unemployment (to help those who lost their jobs that were supposed to be created due to the Bush tax cuts), Medicare and Social Security (so we get the services that we paid into during our entire working years), road construction (so we will have roads to drive our vehicles on), and the list goes on and on.
On the other hand, tax cuts pay for.......well...ah....well nothing! No military, no law enforcement, etc. The rich just get to keep more of their own money and that's it.
I had a discussion with my friend on tax cuts. I told him that even though I don't make a lot of money, I have no problems with paying my fair share. I would rather pay taxes than see people going through dumpsters looking for something to eat because there are no food stamps.
My friend agrees with the tax cuts. He just doesn't agree with the tax code. He thinks everyone should be paying an equal share. 10-15% across the board. No tax write-offs or anything of the sort. I agree with him. This would seem to be the only solution. Taxes are necessary. The waste isn't though, of course. The whole tax system needs to be changed. Out with the old and in with the new. The old doesn't work anymore.
Dude. Get off the left versus right bull crap. Government spends to much and war costs too much. Both parties are guilty of each. And I am keeping it simple here. Both parties are two sides of the same coin that seek to keep us bickering while we reelect them. The problem is in part politicians, this I would agree. The real problem is the banking system. The elite banks want to enslave you, take what you work for, keep what you produce, tell you what you can eat, and provide pain medication when they feel like it. All for paper they print out of thin air. They managed, through lies and manipulation, to turn gold into paper! Prepare to defend yourself!
Mr. LongBalls. you are very right. But what do we do to get THEM by the short hairs? By the way Babylon is burning. Can you smell the smoke?
It's so simple for the people to win this game. All we have to do is opt out. Stop buying crap on credit. Live within your means. Don't do business with international banks. The system is so leveraged, most banks and large corps would go under if many of us did this. Tax revenues would tank.
But instead we watch the telly and buy what we see advertised. We can starve this beast without firing a shot. But not one person will do it, even though it would be in their own best interest. What a nation of fucktards.
I know your reference. I am not sure Babylon is burning as I am not certain who Babylon is. But it does not matter because we know how this ends. There will always be a black market. Gold and silver will prove to be very useful there. Otherwise you will be stamped. Buy a safe and start stacking. This is your defense as the rest will run it's course and we will all be the better for it!!
I agree with you mister longballs. The policians have to stop being puppets of the elite. They have to cut these strings (stop taking bribes for doing what they tell them to do). We need our country back and the only way is for the politicians to stop being corrupt and start being patriotic. We don't need the elite planning our New World Order. We don't want it.
Remember that George HW Bush was a former CIA director, former vice president, former president, a member of a secret society, and a member of the NWO movement. Remember his thousand years of light speech? The people we put in charge of our country!!!
Watch for this plan to unfold:
1) crash the stock market, 2) sucker everyone into the bond market, 3) crash the bond market, 4) have Uncle Ben say that the only way to pay those holding our treasuries is by the Fed printing more money to pay the bond holders (QE3) which, in turn, this money printing ends up 5)crashing the US dollar so that 6) the one world currency can be introduced. After all, you can't have a One World Government unless you first have a One World Currency!
Every President since the establishment of the Federal Reserve has been a part of the banking scheme. Some knew it, others knew it but did not put much creedence into it and were manipulated by it. We have had a shadow government for years and are just know figuring it out. Daddy Bush was just the one selected to start the desensitizing. ABOLISH THE FED!!!
'Hick'
'Hillybilly'
'Redneck'
Nothing concludes you're a delusional Baby Boomer living in another time better than using those terms. Back when it was cool to denigrate people from the country. Back when the cities weren't battlegrounds for survival. Back when America was AAA. Back when you could move from the farm and get a good job.
Get a clue.
i greened you there - looks like u needed it.
here in australia the rich chinese are coming to prop up the 'outrageously expensive' waterfront sydney real estate market.
it the usa you got the russian jewish oil oligarch's.
http://www.businessweek.com/news/2011-08-03/russian-billionaires-buy-in-...
when they openly encourage this sort of thing to prop up the market then things are well foobared.
let us look closer to see how this could possibly be:
http://www.youtube.com/watch?v=mQAMvmi1Zwk&feature=player_detailpage
i know, i know--"he's posted this one b4." so true though--no?
I'm not defending the gangs who rampaged through the state fair. But neither do I condone some of the rhetoric used here to make hillbilly rednecks feel justified with their lot in life.
Take a few minutes and analyze exactly how the powers that be who control the media spun the Wisconsin story.
Peace.
I can not believe there is not one negative response to the “”NIG”” remark above. If I remember correctly a couple of years ago, in my home country of East Texas, some red necks drug a black male around behind a pick up truck, causing death in a less than pleasant manner.
Yes Sir, there is racism. It is many sides of several colors. BUT, do not get lured into the racial hate bate trap. This is a time of tensions and it may get worse. White cops beating a black up is no better than white cops beating a white up or white kids beating a black up or the flip side of the coin.
I do not suggest that all should be wary, is a bad idea. However, one can be careful, wary, and on guard without racial taunts and dissing others.
This is going to get ugly enough without racial hatred being inserted into the struggle.
MLK, Mandela, Gandhi ------------------- We can ALL win in this struggle. It is us in the US. America and Americans. Don’t get confused.
I beleive all the black kids ganging up in Philly, Chicago and Milwaukee have already inserted racial hatred into the thing. That seems to be their prime purpose, to express their rage at the idiot tax donkeys the Progressives have deemed as the suckers who pay for the Progressive's electoral success by giving this bunch just enough to sit on their asses or sell drugs on the corner without questioning.
The elites would love to distract us and divide us with a race war. Can't let that happen. Violence is inevitable when a burger costs more than the monthly SNAP card ration, and self-defence is fine in that case, but we need to educate other people about who the real enemy is. Please tell black and hispanic friends about the approaching shit-meteor and who created it. They will tell others. And don't forget to mention that the community banker had nothing to do with it, and neither did the Jew next door (unless you live in the Hamptons).
Seriously, haven't you guys warned us just about every year for the last 30 years?
Marc Faber: "Bernanke is a money printer. He prints and prints and prints and prints."
I don't know why I find Faber so entertaining. Maybe it's the German accent. :)
Recent comments http://marcfaberblog.blogspot.com/2011/08/cnbc-video-interview-august-5.... . Love the mention of QE13, he said it first.
Here's an older link http://youtu.be/nJ3urAw63ws .
Main take away at 2:50 in is that just to pay the interest on the debt you need to print, then we are really fubared.
Are you ready for some foodstamps? A Mac and Cheese party? Im Ben Bernanke and i got the whole thing started. Turn on your TV, watch them millionaires fight. All my broke friends are here every night!
Warning since feb 2010??? Hell GGG has been warning people for the past 5 years. The shit is on! Wait until CoG, CooP and contingencies are implemented, via our sources. Shits on!
https://www.gunsgrubandgold.com/forum
Does not matter for how long, few people made that call, that's why mainstream has no clue what's going on. I started to read ZH a few months ago, fortunately. I started to listen to Faber, Keiser and all those people. Then I got rid of all my fiat paper, but more important I aslo convinced my family to do the same. My mom converted her pension fund into gold and silver one month ago, instead of being - 10 % she is probably + 10 %. So the point is not to know who said it first. Everybody who worked to inform the public should get credit. I am very grateful to all those guys.
A gorilla the size of Rhode Island. That was my favourite.
Several ways to fix this. The easiest would be for everyone to simply take their "skin" out of the game (as the smart money has already done) and force accountability through a new currency or monetary/economic order when it all collapses... ...oh wait, crap.
I still remember that 2 part series Econophile had, called something like "Something's changing", in which he showed a bunch of charts and numbers which "suggested" a "recovery". I wonder if there's one other thing "Austrians" find have no intrinsic value at all... consistency? hipocrisy?
See the article as noted below. "Also these data do not change my mind about Q3 and Q4 being weak." If you actually really read the article thoroughly, and all of the others I wrote, you would know that I have been consistently forecasting stagnation
Wow, you're going to lay one bad call made by someone who made a good faith effort to explain his perspective of the marketplace at the feet of "Austrian Economics"as a whole?! Apart from sounding like a self-righteous ass, your willingness to cast aspersions over an entire economic philosphy due to a disagreement with someone's opinion make you sound arrogant and small minded. Where is the "hipocrisy" you decry? Are people in your universe allowed to change their minds, edit their opinions, revise their worldviews, or just be plain wrong?
zero google results for "econophile something's changing." please advise.
It wasn't "changing", but "happening".
http://dailycapitalist.com/2010/11/15/something-is-happening/
Or
http://www.zerohedge.com/article/something-happened-what-gdp-report-means
Where
"After several years of ultra-bearish reporting, I reported that at the very least the economy was not declining further and that perhaps a bottom was forming which would indicate positive news for the economy. I cautiously reported that a "trend" to recovery was not yet evident but that indeed, something was happening."
But that was the happening that wasn't.
Jeff Harding trying to call both side of the coin.
i do in fact recall that post, threw me a bit coming from econophile. no biggie. I ignored it at the time. people are allowed to change minds, have multiple possiblities and outcomes in mind, suggest things without 100% certainty, make mistakes, who frekin cares, you gotta process everything ultimately yourself, only momos on hopium thought this 'recovery' was on and sustainable with the qe head fakes, yawn...
a lot of people, especially on this site, have felt the same way for a while. the problem with a really early forecast is what to do before the herd catches on. anyways, what's next?
I think almost everyone has gotten the memo that there will be QEiii. So, taking that for granted, I see these variations on the same theme with probability assigned just for fun.
1. Printing begins on Monday, the POMO banks go on a buying spree. (50%)
1a) Slow but sustained buying brings the S&P back to the April highs (~1363) by the end of the year/early next year for the elections (80%)
1b) Completely mental buying spree brings the S&P back to April highs within the month, and runs out of steam by the end of the year (20%)
2. More bad data on Monday, compounded by record falls in all the major markets and no QE for awhile (40%)
2a) The expectation of QE later on make the markets bounce back after each successive dip. The classic yo-yo, on a negative trend. (80%)
2b) The expectation of QE later on make the markets bounce back harder than each successive dip. The classic yo-yo, on a positive trend. (20%)
3. Other: (10%)
@ Arch Duke F.
Aparently the mobs of "young people" in Wisconsin's State Fair didn't get the message. They savaged their former masters with the rage of a 1000 gorillas last night.
http://www.jsonline.com/news/milwaukee/126828998.html
"Random" my ass...