This report was originally published by James Quinn at The Burning Platform
“This country, and with it most of the Western world, is presently going through a period of inflation and credit expansion. As the quantity of money in circulation and deposits subject to check increases, there prevails a general tendency for the prices of commodities and services to rise. Business is booming. Yet such a boom, artificially engineered by monetary and credit expansion, cannot last forever. It must come to an end sooner or later. For paper money and bank deposits are not a proper substitute for non-existing capital goods. Economic theory has demonstrated in an irrefutable way that a prosperity created by an expansionist monetary and credit policy is illusory and must end in a slump, an economic crisis. It has happened again and again in the past, and it will happen in the future, too.” – Ludwig von Mises – 1952
As the von Mises quote proves, economic cycles, artificial booms created by Federal Reserve easy money and delusional human nature are cyclically constant across the decades. Anyone with an ounce of critical thinking skills realizes the current artificial boom, created by a feckless Fed captured by Wall Street banks and corrupt Washington politicians who took Dick Cheney’s “deficits don’t matter” mantra to obscene levels, will end in another financial crisis. Our Deep State controllers have “solved” a financial crisis caused by too much debt by tripling down on more debt.
The current artificial boom would have ended in 2018, but Trump’s massive tax cut for corporations, who used their windfall to buy back their stock at all-time highs, and reckless government spending increases directly into the pockets of the military industrial complex, gave the GDP one final burst. Pumping adrenaline into a patient with cancer will also give the patient a momentary appearance of health, but the cancer continues to grow.
The highly educated IYI MBAs running companies like General Electric and GM wasted tens of billions in shareholder funds buying back stock at prices far higher than their current price, putting their companies in danger of bankruptcy. A large proportion of S&P 500 companies have also committed this same outrageously idiotic greedy act. This is exactly what happened from 2005 through 2007 before the last financial collapse. It seems greedy CEOs always put their own personal wealth ahead of their shareholder’s wealth, as their compensation is dependent upon earnings per share.
As the propaganda peddling cheerleaders on financial networks and in the bird cage lining financial press tout stocks at all-time high valuations and parrot bullshit about the “best economy ever”, the average American has seen their real wages stagnant going on a 3rd decade, as their debt levels reach all-time highs. The faux prosperity has been illusory, unless you are in the .01%, a corrupt politician, a government apparatchik, or a Deep State mouthpiece. If I wasn’t such a trusting soul, I might conclude financial crisis is used by the wealthy to get wealthier.
When the fake news networks proclaim the economy can grow for many more years and the stock market will surely hit 30,000 in 2019, remember the simple chart below. It shows the U.S. stock market and recessions going all the way back to 1871. Over the last 147 years, recessions are a fairly regular occurrence, but since 1950 the country has only been in recession 15% of the time.
The arrogant academics running the Federal Reserve believe they can manipulate the levers of monetary policy to control the direction of the economy. Their hubris is always revealed when their easy money machinations blow up and lead to economic hardship for the masses. Every time.
To me, the most interesting aspect of the graph is the amount of time between recessions. It seems, in the history of the country, the longest we have ever gone without a recession was ten years. It has happened twice (1961 to 1971) and (1991 to 2001). We are now in year nine of economic advancement (at least for the .01%). Based on history the odds of recession in the next year would appear to be high. No one in the fake news media will provide these facts because they know stocks crash whenever a recession comes our way. The Fed is always surprised by recessions, financial crisis, and the busts created by their own policies.
With interest rates at still emergency low levels, government deficits over $1 trillion, consumer debt at all-time highs, stagnant real wages for real people, housing bubble 2.0 bursting, subprime auto bubble bursting, weak corporations saturated with debt, peak corporate earnings and a stock market still 50% overvalued based upon all long-term valuation measures, only a Wall Street shyster, Ivy League academic, or a bubble headed financial news network spokes-model can’t see recession and stock market crash dead ahead. The masses are about to find out again you can’t spend your way out of a recession or borrow your way out of debt.
Economic history is littered with the bodies of those who declared this time was different. If you think the economy will continue to grow for another few years based upon your belief in the brilliance and infallibility of the Fed, just remember their prescience as the last financial crisis was already in progress:
“The Federal Reserve is not currently forecasting a recession.”- Bernanke – January 10, 2008
“The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”– Bernanke – June 9, 2008
“The GSEs are adequately capitalized. They are in no danger of failing.”– Bernanke – July 20, 2008
The tide is going out and we’re about to see who has been swimming naked. This next recession will not be reversed by running $3 trillion deficits and the Fed driving rates negative. The next recession won’t end until Americans learn how to live on what they’ve got. It will be a profoundly earth shattering experience for a delusional populace. Hopefully, they will realize the true culprits and inflict justice on the financial criminals who escaped unscathed after their last criminal escapade. Time is growing short. The next crisis will define our nation going forward.
Yes. Looks like Fox-n-Friends is finally talking about public pensions. Too little, too late. People are going to be shocked when they end up with .50 on the dollar or .10 on the dollar. Or nothing.
This US Taxmule$ back is broke.
Who is John Galt and where is Galt’s Gulch? Because enquiring minds want to know 😉
SITREP:
Student Loans. DEFAULTS. No jobs for gullible “students”.
Those “students” who find jobs are broke due to student loans.
Consumer Debt. Maxed out.
Housing Bubble. Idiots did it again.
Tech Stock Bubble.
Nations no longer buying USA debt bonds.
Nations getting off of dollar standard for oil purchases.
Nations getting off dollar standard for import/export.
China no longer purchaing USA debt treasuries.
Once USA economy Tanks. ALL Nations go down the drain.
What did I leave out?
This world economic collapse is INTENTIONAL!!
They want you broke, dependent, managable like cattle to be slaughtered.
What do you think?
What have I missed?
Am I wrong?
Cheers. Happy Holidays. Merry Christmas.
oh yes, its our fault… Especially since we have learned our votes simply do not count.
Not only do our votes not count, but so much is kept deliberately hidden from us that we have literally no idea what’s going on and couldn’t find out if we wanted to.
Still our fault, though, apparently!
Where are we in the countdown to total Chaos ?
10,9,8,7,6,5,4,3,2,1,0 ?
Tick tock?
Can’t wait til the clock breaks!
Just wait till the masses of dependent slobs feasting off the taxpayers tits suddenly realize that those checks stop coming….OR, the checks still come, but don’t buy anything anymore due to massive inflation. Tick Tock.!!!!
The root causes are:
A. The evisceration of manufacturing from the free trade agreements.
B. The deregulation of the banking and finance sectors with the evisceration the protections in Glass-Steagal.
The rest are all symptoms.
http://www.governing.com/gov-data/education-data/state-education-spending-per-pupil-data.html
Look how expensive the per student taxes are and then tell me the costs are justified! It greatly exceeds the cost of some state universities.
Every parent would love having at least $6500 per child to pay for PRIVATE tuition as a voucher…something Republicans have been pushing for forever AND your child would get a better education. Many of the private schools are Christian non-denomination or Catholic and are great schools. Not to mention the fact that homeschooling went mainstream due to the horrid state of immoral public schools.
When I think back to my own education and that of my children, the best teachers were ALWAYS devout Christians and it showed by their mastery of the subjects they taught plus devotion. No doubt because Biblically teachers are held to an extremely high standard and willbe punished if they fail.
With a voucher program, the ROTTEN public schools would close, students would be FORCED to behave or be expelled, and vast improvements in both teacher and student compentency would increase by market forces. That’s capitalism.
In some cases the cost exceeds $11,000 per student!
The genuine problems are enormous waste, wretched criminally irresponsible fiscal management of pension investments, too many federal and state employees, etc. What happened was Free Trade killed the golden goose of the middle class, so to hide the unemployment, state legislatures hired an impossible amount of employees.
Now they can’t deliver and 39 states face bankruptcy especially Illinois.
When a recession occurs depends entirely on what the definition of a recession happens to be, and as long as an entity that causes a recession is the same entity that defines what a recession is, the concept of what a recession is is likely to become less and less important over time in real terms in the minds of people generally.
Yes, the crash will happen. It will probably happen sometime before the 2020 election so the Amerikan Communist Party, aka the Democrats, can blame it on the POTUS. How the Leviathan RESPONDS to it is another story.
There could be a devaluation of the dollar. We could go to a dual-currency system. Or, TPTB could declare a “Jubilee Year” like what was done in Old Testament times. In any case, some group will end up getting thrown under the bus. You only have to look at the GM bondholders, who were sacrificed by Barry Sotero and the UAW, to see the future. Get ready for tough times.
Your best survival strategy in a hyperinflation is to already have what you need, know what you need to know, and live off the land like some in the mountains, swamps, and rural farms and independent homesteads.
_
In hyperinflation metals will hold purchasing power. You won’t have a pot to piss in if you can’t pay your govt. extortion taxes.
The majority of Americans cannot learn to live on what they’ve got while all prices continue to constantly rise. $45 for a small cell phone battery, it’s business gouging from top to bottom.
Ahh Yes, The bankrupt state of Illinois,where the cops,firemen work 9 days a month 6 figure pensions retire at 50,teachers $110-650 K per year pensions 3% yearly raises over 100K of these
dolomites,and the Kids are cantalopes.Were the family leaving. do yourself a favor Check out “openthebooks.com”
they do great work exposing the waste,fraud,abuse spread the word.there’s indoctrination camps here $21K per student per year.
Was glad to see comments,others are seeing this,it’s criminal,can’t wait for the collapse,this dirtbags will be eating each other in 2 weeks
Ahh Yes, The bankrupt state of Illinois,where the cops,firemen work 9 days a month 6 figure pensions retire at 50,teachers $110-650 K per year pensions 3% yearly raises over 100K of these
dolomites,and the Kids are cantalopes.Were the family leaving. do yourself a favor Check out “openthebooks.com”
they do great work exposing the waste,fraud,abuse spread the word.there’s indoctrination camps here $21K per student per year.
Was glad to see comments,others are seeing this,it’s criminal,can’t wait for the collapse,this dirtbags will be eating each other in 2 weeks