At some point, sooner or later, someone is going to have to pay the debts, but everyone will scramble to avoid holding the bag. But in the end, the chaos and panic may leave many with nothing at all.
An end to the massive, unlimited money printing at the Federal Reserve, and the management of risks in the financial markets is making for a difficult situation to reconcile. A credit crunch era is upon us, a contracting of the money supply. Rising costs of living and a dry-up of worthwhile opportunities for advancement have put the American people in a holding pattern of stagnation and decline.
Everything has been written off, and a controlled demolition is ultimately the best possible outcome, as dark as it is.
People have been engineered for a fall, and it is only a matter of time before things go south.
The forecast remains dark because of the looming, apocalyptic factors that have driven up a phony stock market surge that is really a devastating bubble waiting to burst into total disaster.
Karl Denninger, a professional trader, says the financial markets look eerily like they did just before the “dot-com bust” (2000) and the financial meltdown of 2008. Denninger explains, “This is the same sort of situation we are in today. Nobody knows how long it will go on, but you are in a place right now with record margin debt in the United States. That’s very, very dangerous because at the point the margin calls start, the cascade is almost impossible to stop. You’ve got imbalances throughout the system.
You’ve got the Federal Reserve where it has to start taking risk off the balance sheet. . . . We all know how this party is going to end. The building is going to catch on fire, and the door is one person wide, and there are 15,000 people in the room. The problem is figuring out how far it goes. At the point the market wakes up to the fact that none of this is going to get resolved at all—ever, that’s when it comes apart. . . . Risk/reward is in a bad place right now. P/E numbers are very high, and the growth numbers are very low.”
Smart money was largely not in the stock market to begin with.
Hold on to what you’ve got, and make sure you’ve hedged against all the major inevitabilities. Stock up, save up, diversify into cash holdings, commodities like gold and silver and the essentials you would need to survive – even if you lost your job, if the stock market crashes, or if people in general exploded into a wave of violent and destructive unrest.