Since I’ve inserted some personal thoughts after a number of my linked articles below, I’ll just take a moment here to credit this emails subject title as having been sourced from the linked article below by Alex Green, This May Be The Most Dangerous Moment In World Economic History.
One last thing, please take the time to listen to the excellent interview of Dr. Paul Craig Roberts which is the first linked item. Take care, and as Mike Savage says, “BE PREPARED”!
I hope that everyone enjoyed their long weekend as we celebrate the traditional end of summer and what the original intent of the holiday was- Labor Day. Too bad that far too many of us have a hard time celebrating the state of our employment picture across the USA regardless of the "reported" great job market.
Unfortunately, because this is an election year we can also see that the negative political ads are out in full force and will continue through at least early November. For many years I have been disgusted by these ads and this year is no different. Little is said about the problems we are actually facing but they just try to put the other candidates in the worst light possible so you won’t vote for them.
I have felt for a long time that these contests were nothing more than a show but it appears that this year’s election has to be setting a record. I watch many people who are enthralled by it all. Trump’s gaffes, Hillary’s scandals of the day, endless and mindless reporting on each side. This has been going on for months already!
Normally, I would just tune this out and watch some college football and some MLB pennant races, which are heating up. This year, however, is different.
Personally, I believe that anyone that would want to be president of our country at this time is nuts.
It appears to me that all of this coverage is disguising our real problems of too many promises and too little resources that are all coming home to roost right now.
Of course, this situation is not exclusive to us here in the USA- it is global in scope. Aging populations, stagnating wages, artificially low interest rates, plunging economic activity and unprecedented money "printing" to give the illusion that all is ok is wreaking havoc all over the globe.
Price discovery-willing buyer and a willing seller determining a fair price- is destroyed by those in charge who "print" money, buy assets like bonds, stocks, etfs and possibly other things. With the click of a button they can manipulate virtually any price-most likely to their advantage every time. As I have written many times they are "purchasing" real assets with virtually- NOTHING. If everyone understood this it would stop real soon!
Here in the USA we are told we have "full employment". I guess that is why we have one in six people in the USA collecting food stamps! I guess the 95 million people who have become frustrated – many that we likely know personally- don’t actually exist they are just figments of our imaginations. It must be true- the government says so!
According to John Williams of Shadow Government Statistics the unemployment rate is 23%, which seems a lot more likely than "full employment" by what we are seeing in economic numbers and personal experiences. Of course, because we are fed massively massaged numbers many are surprised that the consumer is not spending like they used to. Many are surprised that malls are being emptied of big box retailers and many iconic American retailers are closing stores and laying off thousands of employees. Does this sound like they expect a recovery anytime soon?
Freight is slower all over the globe whether it be by sea, rail, truck or air. Delinquent loans are rising in subprime autos and powerhouse companies are seeing shrinking revenues and profits for over 2 years now.
Of course people can’t spend the income they are not earning and that is the real story. The end of the story will be when the government transfer payments (Social Security, Medicare, Food Stamps, Subsidized Healthcare, etc.) which are making up for a lot of lost wages either dries up or doesn’t buy enough goods to survive. I believe we are close to that time right now.
Rather than discussing homosexuality, abortion, LGBT, which bathroom to use, etc. how about addressing our real problems and having a civilized conversation on how to fix them?
Let’s start with the fact that many good paying jobs are disappearing and have been for a long time. It is not only because we pay higher wages in the USA but also because of crony capitalism, which inhibits new startups to protect the politically connected. This is a MAJOR job killer. Fines from OSHA, threats of lawsuits and cumbersome rules make it cheaper to manufacture elsewhere and sell goods here. We are shooting ourselves in the foot- it is not anyone else doing it. We did it to ourselves.
Healthcare is a DISASTER. The greatest healthcare system on the planet is being destroyed and is not only going to affect the quality and quantity of healthcare but also put downward pressure on casual buying because of what individuals will be paying in increased premiums and deductibles if you are unfortunate enough to get sick. It is also causing many companies to hire only part-time workers to avoid the steep costs of providing the mandated care. Another albatross to job creation.
Could we actually pay off the near $20 trillion in Federal government debt and reported $200 trillion in promises made to citizens? Not doing what we are doing now we can’t. The only way out would be to grow our way out- a little hard when all of our policies are seemingly meant to stunt new growth.
Could we stop the violence particularly in our inner cities? It would take a gargantuan effort but it could be done. First of all those living there have to be educated. They need a hand-up, not a handout. They need to see hope for a brighter tomorrow and the value of life. Without hope we can see what the result is. The toughest gun laws in the country have turned Chicago into the murder capital of the world. Guns don’t kill- guns in the hands of criminals kill. They kill more often when the criminal has no fear of pulling it out because he thinks the victim is unarmed.
The media tries to "spin" things to appear the way they would like them to appear. The media also tries to sensationalize stories to make them seem more important than they actually are and have us spend time on useless nonsense (like Colin Kaepernick, etc.).
While folks were obsessing about useless nonsense a few things took place like:
1) Army can’t account for $6.5 trillion spent in 2015. (Pretty amazing with a $550 billion budget!)
2) Putin has war games on Crimea and Ukraine border after sabotage of power plants in Crimea
3) Angela Merkel tells Germans to store food and water for at least 10 days because of a feared attack that is coming
4) The world’s seventh largest shipper Hanjin has gone bankrupt and threatens global shipping. Shipping rates have been rising- this shows it is not for any positive reason. The supply of available ships was just dramatically reduced.
5) US State Department issued travel warnings for Israel, the Gaza Strip, the West Bank and Turkey
6) United States handing over control of the internet to the UN on October 1, 2016 (Elites can’t get away with as much as they’d like to as they are being exposed in this medium) Email hacks, etc.
7) Subprime Auto delinquencies were up 17% in July and 28% higher year over year
8) Central banks are now purchasing $200 billion per month is assets and Japan’s Kuroda says there is no limit to what they could buy fueling speculation of a big announcement in September about new asset purchases.
9) Many developed nations are "printing" money to pay interest and to roll over maturing bonds. Without the "free money" many would have defaulted long ago.
These are just a few headlines that might just be more important for you to pay attention to than who is using what bathroom or what celebrity is acting like a spoiled brat today.
The time is drawing near in my opinion. I hope that many have listened and prepared in any way you can. Have extra food in your own homes. Have a decent amount of cash in your home so you won’t have to wait in an ATM or bank line to access cash in case of an emergency. Have a safe water supply. If possible, get some precious metals. Sometimes this sounds daunting but you could get US coins issued prior to 1964 and you would be getting real metals in those coins. If you are buying precious metals for the first time be sure you are dealing with a trustworthy entity.
My opinion is that investments should be in things that people Have to have as far as companies go and cash, gold, silver, and miners. It also makes sense to me to hold cash in currencies other than the US dollar. There are easy ways to do all of these things if you know how.
Mike Savage, ChFC Financial Advisor
2642 Route 940 Pocono Summit, Pa 18346
Raymond James Financial Services, Inc. Member FINRA/SIPC
https://www.youtube.com/watch?v=BoZDR71LPWQ This is a MUST LISTEN TO interview of Dr. Paul Craig Roberts by Greg Hunter of USAWatchdog.com.
I put this item first in my “linked items” section because it’s just that important. Dr. Roberts is one of the great truth tellers of our troubled times and he explains what we are dealing with today because of our “controlled media” of propaganda, because of our adversarial government that refuses to cooperate with other nations, because of our government that has taken lying about our nation’s lack of economic success to the level of an “art form”, and because our government is destroying the monetary backbone of our nation with insane quantities of created currency in an attempt to hide the dilemma they have brought upon us all. Please listen with your undivided attention to this excellent interview.
http://kingworldnews.com/james-turk-how-to-survive-the-coming-financial-storm/ “Instead of focusing on interest rates, buyers of gold and silver should be focusing on the big picture — a country overloaded with debt, misguided Fed policymakers stuck in a rut, frantic that the crazy Keynesian dogma they are following isn’t working, as well as rising commodity prices and rising inflation. I could go on, but the point is clear. Everyone needs physical gold and silver to get them through the coming financial storm.”
http://thecrux.com/bill-bonner-a-sure-sign-the-economy-is-doomed/ It’s been quite a while now since I first started warning everyone that we were living in an illusion created by our government and the Federal Reserve. The financial backdrop of this illusionary world was letting us think things were good and getting better (INSTEAD OF BAD AND GETTING WORSE) because the markets were doing well and the Government formulated data told us economic
bullshit lies. Now the truth is being liberally proclaimed by a plethora of independent financial analysts (although still swept under the carpet by most mainstream media types). “Prices are no longer discovered by willing buyers and sellers. They are imposed by a central bank that lives in fear – fear that investors will discover that the recovery is phony and stocks and bonds are not worth what they paid for them. Janet Yellen and her fellow PhDs at the Fed built a fake world… a hothouse for stocks and bonds. Now, they can’t open the doors; the plants might die! …….NEVER IN THE LAST 5000 YEARS FOR WHICH WE HAVE RECORDS HAS LOANED MONEY YIELDED LESS THAN NOTHING !!”.
http://www.foxnews.com/politics/2016/09/13/lawmaker-issues-subpoena-to-fbi-for-clinton-probe-records.html Just when you think you’ve heard it all, the story gets a little crazier!
http://thecrux.com/deranged-lunatics-have-taken-over-the-world/ Unfortunately we are the ones who will suffer the consequences of their actions.
“Here is where the gold market is and where it is headed:
The nearly 4 1/2 year bear market in gold has shaken out all of the weak hands and even left many of the die-hard gold bugs questioning themselves…
As the next leg of the secular bull market has already started, the agent bullion banks have to play the same games they did from $250 gold all the way up to $1,920. This means a slow retreat with some violent shakeouts, while gold heads to new all-time highs above $2,000 and far beyond.
Gold is going to reenter the monetary system — this discussion has already been underway for some time. KWN has stated for many, many years that this day is coming. The first thing that has happened is the Chinese yuan has been included in the SDR basket. At some point, gold will also be included, but only on the establishment’s timetable.”
http://wallstreetonparade.com/2016/09/the-untold-story-of-911-bailing-out-alan-greenspans-legacy/ An absolutely incredible story of malfeasance, fraud, and corruption within the Federal Reserve and Wall Street after 9-11. Of course at the expense of the general public.
http://www.zerohedge.com/news/2016-09-17/why-dont-they-trust-her-look-one-hillary-clintons-first-ever-scandals "Clinton Scandal Ritual: lie, deny, revise, claim not to remember specifics, stall for time. When it passes, call the story “old news” full of questions that have already been answered. ‘As I’ve repeatedly said . . .’" Seemingly not much has changed over the past 25 years….
http://thecrux.com/tom-dyson-retirees-need-to-see-this-chart/ “Right now, the U.S. has an estimated 72,000 centenarians. If the population of centenarians continues to increase at its current rate, the U.S. will have close to 500,000 people over the age of 100 by 2055. A six-fold increase from today’s numbers.
http://www.zerohedge.com/news/2016-09-16/foreign-central-banks-sell-record-343-billion-us-trasuries-last-year “What is becoming increasingly obvious, is that both foreign central banks, sovereign wealth funds, reserve managers, and virtually every other official institution in possession of US paper, is liquidating it at a never before seen pace. In some cases, like China, this is to offset devaluation pressure; in others such as Saudi Arabia, it is to provide the funds needed to offset the collapse of the petrodollar, and to backstop the country’s soaring budget deficit.”
++http://thecrux.com/alex-green-this-may-be-the-most-dangerous-moment-in-world-economic-history/ In all times and places around the world, investors expected to earn interest on their loans. Why would a reasonable person lend out his or her hard-earned money with only a promise of getting back less… years down the road?
http://www.zerohedge.com/news/2016-09-15/empire-fed-mysteriously-rises-even-all-components-deteriorate This was a pretty cool trick with all the components of the “Empire Fed Index” declining, yet the sum total went up. WARNING……DON’T TRY THIS AT HOME WITH YOUR FINANCIAL ACCOUNTS !
https://www.thereadystore.com/survival-tips/37/how-to-survive-after-a-disaster/?utm_source=20160915a&utm_medium=email&trk_msg=LFL9VUGQ9JT4R9ER7E7J5VUUQK&trk_contact=NTVM05MKQB3ADVTJ8I7FNTRHIG You should never underestimate the value of the basics.
https://srsroccoreport.com/the-disintegration-of-u-s-infrastructure-quarter-million-of-water-main-breaks-a year/ Certainly not a good thing for sure.
I believe the Deep State postponed the election today, using Clinton’s probably staged "health event" as the opening act of a drama that will unfold over the next several days to few weeks. The Deep State is in the process of pulling Clinton out of the game.
The Deep State knows several things. First, they know that the polls they manipulate showing that Clinton is ahead of or head-to-head with Trump are deliberate, doctored lies. They know that the true numbers demonstrate her campaign is disintegrating. This is reinforced by the fact that during her campaign appearances she plays to what are essentially empty halls, compared to Trump who routinely pulls in tens of thousands of standing-room-only supporters.
Increasingly, the people realize that the polls are lies, and there is only so much further the Deep State can push them. The Brexit polls were total lies, too, and they impaled the establishment liars.
Second, they know that she is seriously ill, and that she will not be able to run a full-throttle campaign between now and election day; it will be physically impossible for her. Already, she has mysteriously disappeared from the campaign trail for hours at a time, and oftentimes longer. They thought they could prop her up through Election Day. Now they realize that they cannot.
Third, they know that Assange’s upcoming leaks are going to reveal her virtually indescribable dishonesty, greed, deviousness and criminality. They know that Assange has genuine information, and that it is going to be devastating to Clinton. She and her "Foundation" are complete frauds, and this fact is going to become totally inescapable, even to the most dimwitted and demented.
The "pneumonia" story will be used to excuse her hacking fits. It will also be used to get her out of the debates, during which she would be completely destroyed by Trump, particularly if she were not wearing her "earpiece" and getting talking points delivered to her by Abedin, who would simply be relaying the Deep State messages being conveyed to her, en route to Clinton. If Clinton has to go up against Trump in an honest debate, with no earpiece, she will be pulverized on her political record, avarice, physical and mental lack of fitness, and Foundation criminality. The Deep State will not allow tens of millions to watch that happen.
Clinton’s "health tragedy" (the "tragic event" of her health preventing her from becoming the first woman president, blah, blah, blah) will be gradually paid out to the populace over the next few weeks, and will be designed to induce the maximum amount of sympathy for her. The Deep State will keep her in the game for as long as possible, as they hope against hope that Trump screws up, or that perhaps something happens to him. If Trump’s numbers remain strong or increase, then they will pull her out of the game.
This will cause an election crisis. The election will be postponed.
Obama will pull the equivalent of a "pre-crime" maneuver, by extending Clinton and the Foundation "pre- pardons." In other words, he will issue a Presidential Pardon for crimes the Clintons have not yet been charged with or convicted of, even though they would almost certainly face such charges and be convicted of them were the election to go against Clinton and were Justice permitted to function. A "pre-pardon" would be a first, but it would be absolutely no different from the unprecedented, dictatorial Executive Orders emanating from the White House over the past many years. The Supreme Court could render its verdict 20 years or so from now, after both of them are dead. The money, by then, would be long gone from view, and supporting Chelsea’s royal lifestyle of the Rich and Famous.
The government needs to shut down the Clinton investigations as soon as it can, because the high tide of Clinton criminality washes into every orifice of Washington, D.C. and Wall Street. The Deep State is never in 1,000 years going to allow Christie to formally investigate such endemic, monumentally profitable State corruption.
The motive for the Deep State to postpone the election until it can re-group its wounded forces is simple: Looting. The Deep State is looting one trillion dollars ($1,000,000,000,000.00) per year from the U.S. economy per year, at an absolute minimum. The true amount is almost certainly equivalent to the GAAP-based national annual deficits, which are running at roughly five trillions dollars ($5,000,000,000,000.00) per year. The $6.5 trillion ($6,500,000,000,000.00) missing from the Army, as admitted by the government, is a drop in the bucket compared to the actual amount that has been stolen from the nation, and the people. It should be no wonder to anyone why the Middle Class has been destroyed; it has been looted into oblivion.
These looting amounts do not include the Insider Trading looting that occurs in the financial markets every single day, facilitated by domestic and international information flows from connected insiders to complicit, profit-sharing traders who operate in total obscurity, privacy and immunity, and who annually book hundreds of billions of dollars in profits at a minimum. Inside Traders can book $25 billion in profits in 30 seconds on advance interest rate change information, and those opportunities happen dozens of times per year, as one simple illustration. There are thousands of similar opportunities in any given year.
The Deep State seeks to keep the Perpetual Fountain of Money gushing epic amounts of lucre into its pockets for as long as possible, because the profits from the Perpetual Fountain of Money are far beyond a mere Fairy Tale, they are a Living Dream Come True. The Deep State is not going to allow anyone or anything to turn off its Perpetual Fountain of Money, particularly not Trump.
The postponement of the election will most likely extend for at least one year, during which new events will cause a extensions of the postponement.
Revelation of the postponement of the November election could be one Black Swan that creates a dollar crisis. This might be why certain members of the Federal Reserve are now pushing for a rate hike in September, even though current U.S. economic circumstances make that idea absurd. It is probable that the Deep State realizes its machinations could create extreme, unpredictable and uncontrollable Forex volatility, and that they are attempting to preemptively head this off, or at least, ameliorate it.
The coming days will provide additional puzzle pieces for insertion into the mosaic, but needless to say, as a nation, we are in the most dangerous situation we have experienced during the past 50 years, at least. If people are not making serious preparations right now, they might come to regret it.
About Stewart Dougherty: I am a Harvard MBA, and Inferential Analytics leverages quantitative and qualitative techniques that I learned both in my education, and during a 30+-year business career. I am semi-retired, but have never worked harder in my life. About six years ago, I wrote several articles that were picked up by 24hgold, MarketOracle, Lew Rockwell, Goldseek and numerous other Internet publishers followed even by some magazines.
This is how the banks steal real assets with fake money
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From Bill Bonner, Chairman, Bonner & Partners:
OUZILLY, France – We’re going back to basics here at the Diary.
We’re getting everyone on the same page… learning together… connecting the dots… trying to figure out what is going on.
We made a breakthrough when we identified the source of so many of today’s bizarre and grotesque trends.
It’s the money – the new post-1971 dollar.
This new dollar is green. You can buy things with it.
Yes, it has lost more than 80% of its buying power since it was put in place.
But still, it’s not so bad.
Compared with the Argentine peso (current inflation rate: 47% a year), it is splendidly solid.
But the new dollar is an imposter. The old one was connected to gold at a fixed rate. And gold was anchored in the real economy.
The new dollar has no gold backing.
Billionaire investor Warren Buffett believes it’s silly to pay someone to take gold out of the ground… and then put it back in the ground and pay someone to guard it for you.
But Buffett misses a vital point: Real money is essential to building real wealth.
It’s what makes the economy operate smoothly. It helps us all decide when to buy and when to sell… when to invest and when to refrain from investing… and where to apply our scarce time and resources.
Real Money, Real Value
Real money has real value.
Gold-backed money increased about as fast as the mining industry could extract gold from the ground – which was about the same rate as the economy was growing.
So, when people got more money, they had a claim on more real wealth.
But the new money was phony.
Governments and banks could add as much of this new money as they wanted. But it did not create or even track real wealth; it just took it away from those who owned it.
It was as if Baltimore Orioles owner Peter Angelos tried to increase attendance at Oriole Park by printing extra tickets.
Like a counterfeit ticket to a baseball game, the new money didn’t magically add a new seat to the stadium.
The Fed made funding readily available to the banks… and the banks lent lustily to their customers.
Each new bank loan created money that hadn’t existed before. Out of thin air. No additional wealth attached. Just credits.
That’s why some economists call this new system “Creditism.” Because the new money is no longer based on real wealth, but on credit.
And the flip side of credit is debt.
You can see the problem already. There’s no limit to how much real money you can have. Each additional dollar represents additional wealth.
Credit money is different.
With credit, you know you can increase your spending dramatically. But you know, too, that there is a limit to how much you can borrow.
Eventually, you reach a point where you don’t have the cash flow to service the interest on your debt. Then it’s time to open the book to chapter 7. Or chapter 11. You are insolvent.
New Credit Crisis
With real money, the more you have, the richer you become.
But as the quantity of credit money increases, the economy becomes more and more vulnerable to a turn in the credit cycle.
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As the quantity of debt increases, the quality decreases. That’s what’s happening with corporate debt now.
You’ll recall that, since 2008, corporations have been big borrowers. According to analysts at Goldman Sachs, corporate America has more than doubled its debt since the collapse of Lehman Brothers.
And that’s a big problem…
Here’s Michael Lewitt, editor of The Credit Strategist newsletter:
As of the end of August, 113 companies had defaulted on their debt in 2016, already matching the total number of defaults from 2015. The year-to-date default count was also 57% higher than a year earlier.
In case anyone is paying attention (it appears they are not), the last time defaults were this high was in 2009 when 208 companies failed during the financial crisis.
Yes, get ready for a new credit crisis – this time centered on corporate debt.
“But wait,” you say, “the feds can print money. They can make sure we never again suffer a credit crisis. Right?”
Alas, no. They can’t create real money. They can only issue more tickets for seats that don’t exist. That is, they can only make the underlying problem worse, by lending more money to more people who can’t pay it back.
The first big crack in the credit money system came in 2008, when a giant fissure broke open between mortgage debt and the homeowners’ ability to pay it.
House prices fell. One in 20 houses was in foreclosure by 2010… and the suicide rate had risen 20%.
And here’s the big, dirty secret of the system… and why the rich love it so much… and why they’re giving millions to #Hillary Clinton to keep it going.
First in Line
When the housing bubble popped, about $800 billion (our estimate) worth of housing went into foreclosure.
Houses are real assets. When owners couldn’t pay, the houses went to the banks that had lent the money against them.
These banks hadn’t built the houses. They never owned them. They never earned the money that they lent to buy them either.
Nor did the money come from savers who had deposited their money in the bank. It was money that no one ever earned. It was fiction.
But this didn’t stop banks using this fake money to capture real wealth – our houses.
And this is how the rich – heavily concentrated in the financial sector – get richer, thanks to the new credit money system.
It increases the values of their stocks, bonds, and real estate (thanks to low interest rates and Fed buying).
It increases corporate profits, too, by lowering financing costs (and incidentally reducing returns to savers) and by boosting credit-fueled retail sales.
Most important – the rich are first in line when the counterfeit tickets are distributed.
Then you go to the stadium… and you find them sitting in your seats.