We have just witnessed the last gasp of the global economy
Nov 4, 2014 05:30:22 #
This article is a little long-winded but worth the read, providing much t***h about the coming worldwide financial collapse.
November 4, 2014 by Brandon Smith
It is difficult to find the motivation to write about the state of the global economy these days, if only because there is not much left to say. I feel like I am composing multiple obituaries for the same long-dead corpse. Most of the liberty movement and, I suspect, a small portion of the mainstream market understand that there is no tangible or legitimate recovery, let alone a stable fiscal ladder to rest our feet upon. There is literally nothing left to the financial system but false promises and ever-expanding debt. In fact, the concept of debt creation is the only thing holding our facade of an economy together.
You and I probably find this rather strange. We come from a long-forgotten school of economics, in which demand and supply actually mean something in terms of our fiscal health. I have come across many mainstream economic acolytes and cultists in recent months who disregard all logic and reason, forsaking the realities of demand-based trade and immersing themselves in a grand delusion in which central bank-generated debt and inflation are the real source of prosperity. I feel sorry for them in a way because the t***h is right in front of their faces, yet they wont see it until they are buried alive in it.
Nothing makes this problem more apparent than the behavior of equities in the past month.
Stocks are, of course, a sham of the highest magnitude; but they do still say something about the greater t***h behind our financial condition. The fact that market traders know that its all a farce and are actually banking and betting on the s**m tells me exactly how close we are to the end of the line. The recent near 10 percent drop in the Dow Jones industrial average (something I mentioned last month) at the beginning of fall must have certainly been a shock for the day-trading community, as well as mainstream pundits. The assumption for the past few years has been that central bank stimulus guarantees a constantly growing bull market, and to experience a considerable decline in equities while quantitative easing was still in action was at least a noticeable wake up call.
I suspect that this decline in markets was not planned by the central banks and was a stumble in their scheme to keep stocks elevated until after the QE taper had settled. It was also a market shock I expected a little earlier, near the end of summer to be exact. Since the drop, central banks and the mainstream media have reacted forcefully to manipulate public perception as well as investor optimism.
In almost every instance of market decline, financial news group Reuters has injected false rumors of more stimulus from the European Central Bank. This was also the case in October as markets began to crash. These rumors were later dashed by Financial Times, but not before the mere mention of more fiat stimulus from any central bank sent stocks soaring yet again.
This also occurred when middle management Federal Reserve policymaker John Williams hinted in interviews of the possibility of QE4 if the economy began to show signs of regression. Williams, of course, has no say in the decision to reintroduce QE. But that didnt matter to investors, who immediately latched onto the meaningless news like anxious children and threw their money back into stocks again.
Most recently, Japans central bank announced a sudden and surprising reignition of stimulus measures to the tune of 80 trillion yen a year. The announcement once again sent global stocks skyrocketing, even though it was a stark admission by Japans financial elite that all their inflationary printing efforts for the past several years have failed miserably.
Hopefully, we can all see the trend taking place here. With the end of the Federal Reserve taper now complete and with questions circling as to when interest rates will be raised, a market volatility not seen since 2008-2009 has returned. The only measure that has slowed the crash is the use of false news stories hinting at further stimulus, as well as futile efforts by other central banks to pick up where the Federal Reserve left off. This shows that the investment world is so thoroughly addicted to QE that even the mere mention of another small fix of their favorite drug is enough to get them out of bed and excited. They know that the entire system is r****d by central banks, and they dont care. In fact, they revel in it. Their only goal is to profit on the s**m for as long as humanly possible, even though the ultimate end of the s**m will mean the utter destruction of their profits and the end of their way of life.
I h**e to use a cinema analogy for a very real threat, but investors today remind me of Joe Pantolianos character in The Matrix. The guy is fully aware that the Matrix is an illusion but wants to experience the pleasure of the illusion all the same, so much so that he doesnt mind being exploited like a s***e by the system. He is willing to sacrifice all measure of t***h and even the future just to get a taste of the fantasy again.
But what is the reality that the central banks are trying to hide and why are they trying to hide it? I have written about this in detail on literally hundreds of occasions, so I will cover only the very latest news briefly here.
Global exports and, thus, consumer demand are plunging. Germany, the only pillar left to prop up the failing European Union, has experienced a severe decline in exports not seen since 2009.
China, the largest exporter and importer in the world, and Chinese companies have been caught in a number of instances using fraudulent invoices to artificially inflate their own export numbers, in some cases reporting 50 percent more exported goods than had actually existed.
Chinas manufacturing has also declined for the past five months, indicating a global slowdown.
The Baltic Dry Index a measure of global shipping rates for raw goods and, thus, a measure of demand for shipping continues to d**g along near historic lows.
The U.S. consumer (the only economic asset the U.S. has besides the dollars world reserve status) has seen declines in spending as well as wages.
In the meantime, long-term jobless Americans continue to fall off welfare rolls by the millions, making unemployment numbers look good. But the overall future picture look terrible as participation rates dissolve into the ether of government statistics.
How is such poverty being hidden? Food stamps. Plain and simple. Nearly 50 million Americans now subsist on food stamp programs, and this number shows no signs of dropping. In states like Illinois, two people sign up for food assistance for every citizen who happens to find a job.
But this is all rudimentary. Most analysts in the liberty movement agree that our fiscal structure is on the verge of collapse; what they tend to bicker about are how and when the structure will collapse.
Guessing market declines is extremely difficult. My prediction of a 10 percent drop by the end of summer was off by three weeks. Because of the nature of QE stimulus manipulation of the Dow, my only guide has been the reality of the Fed taper and the fact that major banks have been relying on fed fiat to continually cycle capital into equities through the use of low-interest loans to corporations and the stock buyback s**m. Company buybacks have given steady boosts to the markets at least since 2008, and many corporations are using up to 50 percent of their profits just to continue buying their own stocks.
This strategy, however, is reaching a point of diminishing returns as many companies are issuing too much debt in the process. IBM is a perfect example of a company that has hit the ceiling on stock buybacks.
With the taper finished and QE money drying up, it is important to ask a few questions. For example, how are companies going to continue to accumulate capital to dump into their own stocks if Fed money is becoming scarce and consumer spending is in decline? And if they cant continue stock buybacks, how are equities markets going to stay afloat?
And what about government debt? As it stands now, foreign interest in U.S. Treasury bonds is waning. The vast majority of new bonds sold are short-term. Until now, the Fed has been the primary buyer of long-term debt, snapping up 10-year bonds from the market while other investors lose confidence in Americas ability to pay off liabilities in the future. Now that QE is over, who is going to buy the ever-expanding U.S. government debt? I aimed this question recently at a Fed cultist, and his response was: Well, obviously somebody will buy it, though he couldnt specify. Investors are counting on an eventual QE4, but I think this might also be wishful thinking.
At the end of 2013, I predicted the Fed would indeed follow through with the taper of QE3 and that it would drastically reduce stimulus measures. I believe this is in pr********n for a major implosion of U.S. markets in particular. The whole point of the taper is to support the illusion that the U.S. economy has recovered and that the Fed has accomplished its mission. When a crash does take place, I have no doubt it will be blamed on an outside force or act of fate. (The Ebola outbreak, which is doubling in cases every three weeks, is a perfect possible catalyst.)
Behind the background noise of the recovery party, international bankers are sending a very different message about economic health.
On the same day as the Federal Reserve announced the end of QE3, former chairman Alan Greenspan gave a speech to the Council on Foreign Relations in which he lamented that the QE unwind would be painful, that stimulus measures had not achieved their goals in the past and that gold might be a good investment today.
The International Monetary Fund and the ECB also released statements warning that accommodative stimulus policies could contribute to economic volatility. That is to say, stimulus might be setting the stage for fiscal instability. The IMF claims that bold action is required to reset the global system.
And the ever-present overlords at the Bank of International Settlements have posted a stark warning about our financial future, predicting a violent reversal in markets. The last time the BIS made such a prediction was in the summer of 2007, just before the derivatives crash. But this is the M.O. of the central banks: to warn of coming calamity before the event, but not long enough before the event to make any difference. They present themselves as prognosticators of economic future. But in reality, they are the instigators of every disaster they predict.
I believe that the admissions of financial danger by internationalists, the sharp drop in stocks at the beginning of fall and the complete disconnect between mainstream investors and reality signal the last gasp of the global economy. I expect increasing market instability from this point on, as well as numerous geopolitical distractions that will be blamed for the fiscal chaos. I have left out my explanation of the final endgame so that I can cover it more fully in my next article. Needless to say, the coming storm is a deliberately engineered one, meant to achieve very specific goals, including a fearful and panicked populace, easy to manipulate as the system goes off the rails.
November 4, 2014 by Brandon Smith
It is difficult to find the motivation to write about the state of the global economy these days, if only because there is not much left to say. I feel like I am composing multiple obituaries for the same long-dead corpse. Most of the liberty movement and, I suspect, a small portion of the mainstream market understand that there is no tangible or legitimate recovery, let alone a stable fiscal ladder to rest our feet upon. There is literally nothing left to the financial system but false promises and ever-expanding debt. In fact, the concept of debt creation is the only thing holding our facade of an economy together.
You and I probably find this rather strange. We come from a long-forgotten school of economics, in which demand and supply actually mean something in terms of our fiscal health. I have come across many mainstream economic acolytes and cultists in recent months who disregard all logic and reason, forsaking the realities of demand-based trade and immersing themselves in a grand delusion in which central bank-generated debt and inflation are the real source of prosperity. I feel sorry for them in a way because the t***h is right in front of their faces, yet they wont see it until they are buried alive in it.
Nothing makes this problem more apparent than the behavior of equities in the past month.
Stocks are, of course, a sham of the highest magnitude; but they do still say something about the greater t***h behind our financial condition. The fact that market traders know that its all a farce and are actually banking and betting on the s**m tells me exactly how close we are to the end of the line. The recent near 10 percent drop in the Dow Jones industrial average (something I mentioned last month) at the beginning of fall must have certainly been a shock for the day-trading community, as well as mainstream pundits. The assumption for the past few years has been that central bank stimulus guarantees a constantly growing bull market, and to experience a considerable decline in equities while quantitative easing was still in action was at least a noticeable wake up call.
I suspect that this decline in markets was not planned by the central banks and was a stumble in their scheme to keep stocks elevated until after the QE taper had settled. It was also a market shock I expected a little earlier, near the end of summer to be exact. Since the drop, central banks and the mainstream media have reacted forcefully to manipulate public perception as well as investor optimism.
In almost every instance of market decline, financial news group Reuters has injected false rumors of more stimulus from the European Central Bank. This was also the case in October as markets began to crash. These rumors were later dashed by Financial Times, but not before the mere mention of more fiat stimulus from any central bank sent stocks soaring yet again.
This also occurred when middle management Federal Reserve policymaker John Williams hinted in interviews of the possibility of QE4 if the economy began to show signs of regression. Williams, of course, has no say in the decision to reintroduce QE. But that didnt matter to investors, who immediately latched onto the meaningless news like anxious children and threw their money back into stocks again.
Most recently, Japans central bank announced a sudden and surprising reignition of stimulus measures to the tune of 80 trillion yen a year. The announcement once again sent global stocks skyrocketing, even though it was a stark admission by Japans financial elite that all their inflationary printing efforts for the past several years have failed miserably.
Hopefully, we can all see the trend taking place here. With the end of the Federal Reserve taper now complete and with questions circling as to when interest rates will be raised, a market volatility not seen since 2008-2009 has returned. The only measure that has slowed the crash is the use of false news stories hinting at further stimulus, as well as futile efforts by other central banks to pick up where the Federal Reserve left off. This shows that the investment world is so thoroughly addicted to QE that even the mere mention of another small fix of their favorite drug is enough to get them out of bed and excited. They know that the entire system is r****d by central banks, and they dont care. In fact, they revel in it. Their only goal is to profit on the s**m for as long as humanly possible, even though the ultimate end of the s**m will mean the utter destruction of their profits and the end of their way of life.
I h**e to use a cinema analogy for a very real threat, but investors today remind me of Joe Pantolianos character in The Matrix. The guy is fully aware that the Matrix is an illusion but wants to experience the pleasure of the illusion all the same, so much so that he doesnt mind being exploited like a s***e by the system. He is willing to sacrifice all measure of t***h and even the future just to get a taste of the fantasy again.
But what is the reality that the central banks are trying to hide and why are they trying to hide it? I have written about this in detail on literally hundreds of occasions, so I will cover only the very latest news briefly here.
Global exports and, thus, consumer demand are plunging. Germany, the only pillar left to prop up the failing European Union, has experienced a severe decline in exports not seen since 2009.
China, the largest exporter and importer in the world, and Chinese companies have been caught in a number of instances using fraudulent invoices to artificially inflate their own export numbers, in some cases reporting 50 percent more exported goods than had actually existed.
Chinas manufacturing has also declined for the past five months, indicating a global slowdown.
The Baltic Dry Index a measure of global shipping rates for raw goods and, thus, a measure of demand for shipping continues to d**g along near historic lows.
The U.S. consumer (the only economic asset the U.S. has besides the dollars world reserve status) has seen declines in spending as well as wages.
In the meantime, long-term jobless Americans continue to fall off welfare rolls by the millions, making unemployment numbers look good. But the overall future picture look terrible as participation rates dissolve into the ether of government statistics.
How is such poverty being hidden? Food stamps. Plain and simple. Nearly 50 million Americans now subsist on food stamp programs, and this number shows no signs of dropping. In states like Illinois, two people sign up for food assistance for every citizen who happens to find a job.
But this is all rudimentary. Most analysts in the liberty movement agree that our fiscal structure is on the verge of collapse; what they tend to bicker about are how and when the structure will collapse.
Guessing market declines is extremely difficult. My prediction of a 10 percent drop by the end of summer was off by three weeks. Because of the nature of QE stimulus manipulation of the Dow, my only guide has been the reality of the Fed taper and the fact that major banks have been relying on fed fiat to continually cycle capital into equities through the use of low-interest loans to corporations and the stock buyback s**m. Company buybacks have given steady boosts to the markets at least since 2008, and many corporations are using up to 50 percent of their profits just to continue buying their own stocks.
This strategy, however, is reaching a point of diminishing returns as many companies are issuing too much debt in the process. IBM is a perfect example of a company that has hit the ceiling on stock buybacks.
With the taper finished and QE money drying up, it is important to ask a few questions. For example, how are companies going to continue to accumulate capital to dump into their own stocks if Fed money is becoming scarce and consumer spending is in decline? And if they cant continue stock buybacks, how are equities markets going to stay afloat?
And what about government debt? As it stands now, foreign interest in U.S. Treasury bonds is waning. The vast majority of new bonds sold are short-term. Until now, the Fed has been the primary buyer of long-term debt, snapping up 10-year bonds from the market while other investors lose confidence in Americas ability to pay off liabilities in the future. Now that QE is over, who is going to buy the ever-expanding U.S. government debt? I aimed this question recently at a Fed cultist, and his response was: Well, obviously somebody will buy it, though he couldnt specify. Investors are counting on an eventual QE4, but I think this might also be wishful thinking.
At the end of 2013, I predicted the Fed would indeed follow through with the taper of QE3 and that it would drastically reduce stimulus measures. I believe this is in pr********n for a major implosion of U.S. markets in particular. The whole point of the taper is to support the illusion that the U.S. economy has recovered and that the Fed has accomplished its mission. When a crash does take place, I have no doubt it will be blamed on an outside force or act of fate. (The Ebola outbreak, which is doubling in cases every three weeks, is a perfect possible catalyst.)
Behind the background noise of the recovery party, international bankers are sending a very different message about economic health.
On the same day as the Federal Reserve announced the end of QE3, former chairman Alan Greenspan gave a speech to the Council on Foreign Relations in which he lamented that the QE unwind would be painful, that stimulus measures had not achieved their goals in the past and that gold might be a good investment today.
The International Monetary Fund and the ECB also released statements warning that accommodative stimulus policies could contribute to economic volatility. That is to say, stimulus might be setting the stage for fiscal instability. The IMF claims that bold action is required to reset the global system.
And the ever-present overlords at the Bank of International Settlements have posted a stark warning about our financial future, predicting a violent reversal in markets. The last time the BIS made such a prediction was in the summer of 2007, just before the derivatives crash. But this is the M.O. of the central banks: to warn of coming calamity before the event, but not long enough before the event to make any difference. They present themselves as prognosticators of economic future. But in reality, they are the instigators of every disaster they predict.
I believe that the admissions of financial danger by internationalists, the sharp drop in stocks at the beginning of fall and the complete disconnect between mainstream investors and reality signal the last gasp of the global economy. I expect increasing market instability from this point on, as well as numerous geopolitical distractions that will be blamed for the fiscal chaos. I have left out my explanation of the final endgame so that I can cover it more fully in my next article. Needless to say, the coming storm is a deliberately engineered one, meant to achieve very specific goals, including a fearful and panicked populace, easy to manipulate as the system goes off the rails.
Nov 4, 2014 05:56:44 #
In order for a one world currency, first currencies need to be more closely aligned. The economic collapse of America meets that end game goal of a one world currency, leading to a one world government.
Anyone seeking to know how future events unfold, simply can read the holy Bible. What's happening now, and in the next few years to come was know and written down a few thousand years ago.
Anyone seeking to know how future events unfold, simply can read the holy Bible. What's happening now, and in the next few years to come was know and written down a few thousand years ago.
Nov 4, 2014 06:02:29 #
jack sequim wa wrote:
In order for a one world currency, first currencies need to be more closely aligned. The economic collapse of America meets that end game goal of a one world currency, leading to a one world government.
Anyone seeking to know how future events unfold, simply can read the holy Bible. What's happening now, and in the next few years to come was know and written down a few thousand years ago.
Anyone seeking to know how future events unfold, simply can read the holy Bible. What's happening now, and in the next few years to come was know and written down a few thousand years ago.
:thumbup: And people like the pope and Rick Warren are working towards one world religion.
Nov 4, 2014 06:19:15 #
mwdegutis wrote:
:thumbup: And people like the pope and Rick Warren are working towards one world religion.
Why do people like you post so many doom and gloom articles? Are you people praying that America fails so you can say we told you so? You negative types must be some miserable SOB's when things don't go your way.
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Nov 4, 2014 06:22:16 #
mwdegutis wrote:
:thumbup: And people like the pope and Rick Warren are working towards one world religion.
The powers that will usher these things are firmly in place. The mission of the church (the gospel unto salvation) is at its close, tick tock, tick tock,
Nov 4, 2014 06:26:06 #
Retired669 wrote:
Why do people like you post so many doom and gloom articles? Are you people praying that America fails so you can say we told you so? You negative types must be some miserable SOB's when things don't go your way.
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
For Christians it is a time of seeing the word of God unfolding at light speed, prophecies unfolding, and rejoicing with all glory to the Almighty
God. No doom, no gloom
Nov 4, 2014 06:30:32 #
Retired669 wrote:
Why do people like you post so many doom and gloom articles? Are you people praying that America fails so you can say we told you so? You negative types must be some miserable SOB's when things don't go your way.
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
WAKE UP! The signs of the times are right in front of you but you're just too blinded to see! I have no desire to see America fail but she is turning her back on God and Israel and His plan WILL move forward. I'm just trying to help you before it's too late.
Nov 4, 2014 07:07:15 #
J Anthony
Loc: Connecticut
mwdegutis wrote:
WAKE UP! The signs of the times are right in front of you but you're just too blinded to see! I have no desire to see America fail but she is turning her back on God and Israel and His plan WILL move forward. I'm just trying to help you before it's too late.
Nov 4, 2014 07:12:21 #
J Anthony
Loc: Connecticut
mwdegutis wrote:
WAKE UP! The signs of the times are right in front of you but you're just too blinded to see! I have no desire to see America fail but she is turning her back on God and Israel and His plan WILL move forward. I'm just trying to help you before it's too late.
We're not going to be able to pray ourselves out of this one. If onkky enough people understood how our criminal, usurious monetary-system worked and that there are solutions, we could mitigate some of the inevitable damage. How about educating yourself and encouraging others to do so, so that maybe there's a chance?
Nov 4, 2014 07:17:04 #
J Anthony wrote:
We're not going to be able to pray ourselves out of this one. If onkky enough people understood how our criminal, usurious monetary-system worked and that there are solutions, we could mitigate some of the inevitable damage. How about educating yourself and encouraging others to do so, so that maybe there's a chance?
So you think only man can solve our problems and not God? Our God can solve ANYTHING!
Nov 4, 2014 07:22:58 #
Retired669 wrote:
Why do people like you post so many doom and gloom articles? Are you people praying that America fails so you can say we told you so? You negative types must be some miserable SOB's when things don't go your way.
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Nov 4, 2014 07:23:24 #
Retired669 wrote:
Why do people like you post so many doom and gloom articles? Are you people praying that America fails so you can say we told you so? You negative types must be some miserable SOB's when things don't go your way.
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Nov 4, 2014 07:29:58 #
Whom will you blame when it happens? You and others have been warned many times. You can't spend your way out of debt, many people have tried that on a personal level. What you think of as inflation is money being devalued.
Retired669 wrote:
Why do people like you post so many doom and gloom articles? Are you people praying that America fails so you can say we told you so? You negative types must be some miserable SOB's when things don't go your way.
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Nov 4, 2014 07:38:07 #
Retired669 wrote:
Why do people like you post so many doom and gloom articles? Are you people praying that America fails so you can say we told you so? You negative types must be some miserable SOB's when things don't go your way.
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Pitiful.... :thumbup: :thumbup: :thumbup: :thumbup: :thumbup:
Why do we have seatbelts in cars? Because there is a NEED for them..... R****ded669, a person can FART things of more value than you....hell even my Dogs can.
Nov 4, 2014 07:50:58 #
bmac32 wrote:
Whom will you blame when it happens? You and others have been warned many times. You can't spend your way out of debt, many people have tried that on a personal level. What you think of as inflation is money being devalued.
If I listened to every doom and gloom nut jobs endless negativity I've come across in my lifetime I would have never left the house.
Here's several things that need to be right now in this country.....
One, eliminate the fed reserve bank and punish those that c***ted the tax payers out of trillions of dollars.....
Two, clean up wall street and jail everyone that has broke the law by screwing investors.
Three, Let every state have their own state banking system like the one in North Dakota and cut the big banks out of peoples lives as much as possible.
Four, Fix our supposedly free market that is r****d to benefit the corporations and rich NOT the majority of people who need help in many ways.
Five, Eliminate our current tax laws and I mean everyone of them. One rate for everyone with NO deductions. No tax on income below a certain level to help the poor.
I have more but those five done ASAP would go a long way on fixing this country and it's corrupt policies that only benefit the wealthy. Fix those five and then install a balanced budget amendment and make it law.
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