The trigger for the last meltdown (2008-2009)
was liquidity starvation which led to a credit crunch
(banks/financials and other holders of chattel paper assets were
caught swimming naked with poison well assets and deteriorating
balance sheets & couldn’t re-collateralize).
The catalyst for the arriving crisis will be
the real rate of inflation (already massively, adversely impacting
the average barely shopper) on things such as necessities (gas,
groceries, utilities, property taxes, higher income tax rates, higher
medical care costs, etc.) coupled with the dawning realization on the
part of corporations and “investors” that’central bank monetary
policy since 2008 has now created the largest divergence between the
perceived and real fundamental prices (the ask, which affects the bid
for whatever actual demand there may be) on assets (i.e. price
distortion – this extends to everything from real estate to stocks
to bonds, including sovereign bonds).
Is
A Crash Inevitable? The Spiral Vortex Of Debt And Corruption
The
economy will decline in the USA following 2015.75 and will have
several important impacts that will shape our future. The
Big Bang is inevitable – YES! The outcome is to be determined. This
is why I do what I do. I too have a family and fear for their future.
I am not 23, so my shelf time is expiring thank God so I do not have
to live in this age of tyranny too long. Nevertheless, all I can do
is try to educate as many people for if they understand how things
work, then when it comes time for the rebuilding, perhaps we can
choose freedom over more authoritarian-tyranny…
So my concerns are for our future – not to
sell bullshit. This is far more important. Unfortunately, the primary
impact will be:
The
USA is the only economy holding up the entire world right now. GDP
Growth is collapsing everywhere from Europe, Russia, and into China.
Once the USA turns down, the civil unrest will rise in the USA as
well. The Occupy Wall Street was a dress rehearsal.
Governments
will find it increasingly harder to sell their debt. This
trend has already hit both China and Russia. We will see it hit
Europe, Japan and then the USA. This will drive the trend to raise
taxes further as governments will assume that they need to restore
confidence within their debt structures. As they do this, the global
economy will turn downward into a spiral vortex.
While
governments claim to be mad at the NSA, behind the curtain there is
legal swapping going on….
Japan
and China threaten Asian economic growth – IMF
Asian
growth will remain steady at 5.4 percent in 2014, however
a steeper than expected slowdown in China and a failure in Japan’s
“Abenomics” program could derail the region’s economic
progress, says the IMF.
Asia
also faces risks from outside the region, including improving growth
in the US, which could raise global interest rates the new
IMF study said.
“Bouts
of capital flow and asset price volatility are likely along the way,
with exchange rates, equity prices, and government bond yields
affected by changes in global risk aversion and capital flows,”
the IMF concludes.
‘Almost
every asset is overvalued’: Apollo pro
Just because many forecasters predict the U.S.
economy will continue to grow doesn’t mean it’s easy to make
money.
“The quantitative easing and the excess money
and the low interest rates have driven pricing up of almost all
financial assets to beyond what their intrinsic value might be,”
Joshua Harris, co-founder and chief investment officer of $161
billion private equity firm Apollo Global Management, said Monday at
the Milken Institute’s Global Conference in Los Angeles.
For those that must keep some fiat in a bank,
no more than 100K per bank for sure. Ominous tea leaves all around.
Michael Lewis cites Ron Morgan and Brian
Levine, Goldman Partners and co-heads of Goldman’s global stock
markets, who said that
“Unless there are some changes, there’s
going to be a massive crash, a flash crash times ten.”
The
rising cost of a trip to the supermarket
Fed
taper to cause ‘severe recession’: Economist
The Federal Reserve’s move to eliminate its
monthly asset purchasing program will cause a “collapse in asset
prices and a severe recession,” according to economist Michael
Pento….
Very soon the amount of QE will be close to, if
not exactly at zero. And without banks supporting asset prices by
consistently creating new money at the behest of the Fed, stocks and
home prices have nowhere to go but down.
I anticipate the reduction of the wealth effect
to intensify as the taper progresses. Since the economic “recovery”
was predicated on the rebuilding of asset bubbles, a long delayed and
brutal recession will start to unfold later this year…..
TruthInSunshine
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