Back to the precipice

Well, that "recovery" was fun while it lasted. Even I dared, during the past few months, to hope that maybe, really, truly things have changed in our economy.

Of course, that was because I was drinking the Flouride in the water again, apparently. I mean, there is no good scenario for us as America or for the world with countries hostage to record debts. And now, the market is realizing its between a rock and a hard place - can't keep injecting itself with the Fed's cheap credit heroin, nor can it face life without it. So here we go again.

This time it starts in China, with a shrinking economy (or one where the government can't pretend things are well anymore with fake numbers), and currency devaluations in third-world countries.

IS THE NEXT CRISIS UPON US?

Illusion of Control Collapsing

And perhaps the best of these reads: We've created a global debt monster

I, as you all have read on this forum in recent weeks, these are just a handful of the experts warning us, yet again, that time is running short toward economic collapse.

I don't know if I can go through this again, as sad as that sounds. I barely eked out of the last recession surviving on lower paying jobs and Prozac and scotch. If we do this again, I'd be real tempted to just up the dosage of both Prozac and scotch all in one night and let all of you sort the next crisis out.

Anyway, I digress.

As I have said for a long time, somewhere our "financial geniuses" believed they no longer had to operate by the laws of economics: that recessions were bad things overall that should be obliterated, that risk was as real as Santa Claus, and that they could engineer perpetual prosperity for the rest of time.

Of course that "prosperity" came in the form of huge Wall Street bonuses and lucrative fees that left the rest of us in the cold. Not that I'm bitter or anything. I'm personally not good with numbers, so in today's world, I'm just not a valued member of society (as my paycheck indicates).

What should have been a steep recession in 2000/2001 instead was delayed until 2008. Then again, by dropping interest rates to near zero, they buffered the full effects of The Great Recession, only to delay the inevitable, which appears to finally be taking shape. Now that the Fed is out of ammunition, with Bernanke cleverly leaving his post at just the right time, we're gonna get hit big time.

And so will the rest of the world.

This leads ultimately to WWIII, as we all know. I mean, anytime world leaders face a poor and pissed off populace, they find a way to divert our attention to that of conflict.

reply to post by behindthescenes

I barely eked out of the last recession surviving on lower paying jobs and Prozac and scotch.

Here, here! And well said, I'll join you in another Scotch. Wait, you have a job? Make that 2 Scotches hold the water.

The part in the debt monster article about becoming trapped into the QE and liquidity injections is true and so obvious one has to wonder how a punch of so called economists could make those mistakes in the first place.

Buckle up and put you helmets on people.

Bassago
reply to post by behindthescenes

 

The part in the debt monster article about becoming trapped into the QE and liquidity injections is true and so obvious one has to wonder how a punch of so called economists could make those mistakes in the first place.

Economics isn't a science; it's a shell game designed to benefit the few while keeping the masses in confused slavery.

Take a look at Alan Greenspan's testimony in front of Congress after the 2008 debacle and watch the curtain being pulled back from the "Maestro". Note that he's never paid a fine and was never charged with any crimes, even though his actions and inactions resulted in millions of foreclosures and not a small amount of suicides of people who lost all hope along with their homes and incomes.

Addendum to that thought: The last time we had a Head of the Federal Reserve retire, Greenspan, all hell broke loose not long after; maybe they're planning another rollercoaster ride now that Yellin's in and Bernanke's out.

I did not read the links not because I am not interested but because we have been hearing the green/Red horseman cometh for a few years now. Even if this is the "BIG ONE" it will seesaw back and forth for awhile as the big boys jump in an out making money.

Harry Dent whom made allot of sense to me said it will take almost two years for the Market to bottom out somewhere between 3000 and 5000.. He said that last month and that it was coming... Outlook between now and 2019 was not good with 2014-2016 being really bad years...
Anyone know what has happened in China since the 31 of January; they were possibly gonna default on some rather large loans? I checked but did not see anything other than projected growth is slowing down... Harry Dent said China would lead the way to the crash ?

reply to post by 727Sky


Wall Street taking a dive

reply to post by behindthescenes


QE to infinity & ZIRP... was the central banks way of continuing to replace the middle class & Main Street economy with the TBTF Wall Street replacement...
its estimated that replacing the middle class GDP production with the Wall Street economy cost about $23 Trillion (including more than $8 Trillion to the EU central banks)...

but the real 'cost; is the additional debt created through the explosive derivatives growth that ballooned from $1 Quadrillion(1990s-2008) to $1.5 Quadrillion since 2008-present...


folks we are hanging on..only by the "faith & confidence" in the existing Petro-dollar/global reserve currency status of the USD...

but all that has a short lifetime prognosis as China has already lashed out to: de-Americanize the global finance sphere rallying cry


store as much silver you can carry & as much gold as you can afford
together with the rest of the sustaining yourself things...
then adapt as you hear things crumbling for the present day elites & wealthy as their world completely disintegrates around their bunkers & compounds which become their own death traps... i mean from the CIC, Sen/Reps...judges, CEOs all the way down to the local community organizer with the ego to match

reply to post by 727Sky

Anyone know what has happened in China since the 31 of January; they were possibly gonna default on some rather large loans?

Looks like when push comes to shove China blinks.

From all the stories that broke while I was away the most fascinating surely revolves around the Chinese Trust product that in the end wasn't allowed to be at the mercy of market forces. Link

Bassago
reply to post by 727Sky

 

Anyone know what has happened in China since the 31 of January; they were possibly gonna default on some rather large loans?

Looks like when push comes to shove China blinks.

From all the stories that broke while I was away the most fascinating surely revolves around the Chinese Trust product that in the end wasn't allowed to be at the mercy of market forces. Link

Thanks Bassago.. from your link which does make sense to me:

He is far more concerned by what is going on in China than any of the other noise around the world. And rightfully so. As we first showed a few months ago, the money creation in China puts what all the other global central banks do to shame. Any slowdown in this credit creation and the wheels have no choice but to fall off, which also explains why even the tiniest default in this $9 trillion economy will be bailed out as it would risk an outright "flow" collapse.

reply to post by behindthescenes


I understand times are difficult. I too, believe it is only going to get worse.

That being said, I truly hope you don't mean the part about taking pills and alcohol to "end it." We need as many "awake" people as possible.

Positive thoughts and prayers your way my friend.

DP

I just cannot figure out where all that 'money' has gone, that's like loosing your car, and it has actually become not existent, no trace of it anywhere, so is it the same with those tonnes of paper currency? its not under anyones mattress, not in any banks, not buried anywhere,
no piles of ash, not papered to walls, just where the hall is it?

Have we finally risen to the top of the roller coaster ride and are at that perilous moment before the chain lets that car go and gravity takes over?

reply to post by pikestaff


It doesn't exist. It never did. It is all 1's and 0's in computer servers located around the world. You could erase the world's debt with a magnet.

Krazysh0t
reply to post by pikestaff

 

It doesn't exist. It never did. It is all 1's and 0's in computer servers located around the world. You could erase the world's debt with a magnet.

He's right. There was never any actual "money" made (yes, printed by the Fed, but not made). It was all paper wealth. Still is.

TorqueyThePig
reply to post by behindthescenes

 

I understand times are difficult. I too, believe it is only going to get worse.

That being said, I truly hope you don't mean the part about taking pills and alcohol to "end it." We need as many "awake" people as possible.

Positive thoughts and prayers your way my friend.

Sorry. I was being tasteless and frustrated and angry. I'm not serious about that, no.