The Eve of De$truction

If you happen to believe news reports, all is well  Inflation is under control, so those Social Security benefits do not go up, and the jobless rate is just great, if you are still in the job market in North Dakota. Below is useful bit of news from Porter Stanserry's recent appearance:

...In December 2008, I began warning about the risk that the U.S. could lose its "world reserve currency status," something I termed the "End of America." It's worth looking at what I wrote almost five years ago because so much of what I feared would happen has come true... you should go read that essay.  

...The Fed went on to print and spend more than $3 trillion. The prices of stocks and commodities soared. The dollar fell versus sound currencies around the world. And the prices of U.S. goods and services, even domestically made products, soared.
Now, some folks who have followed my research from the beginning might point out that I predicted the U.S. would begin suffering from severe inflation as early as 2009. With the consumer price index hovering around 1%, isn't that inflation overdue?

That is the set up, continue on:

If you look beyond the government's manipulated numbers and focus on the real prices people are paying… you'll see price inflation is here and getting worse… 

As I've written extensively… inflation is found everywhere in our economy, except in the government's statistics. Corn, the most important food crop in America, is up 75% since 2008. Gasoline is up from $2.25 a gallon to more than $3 a gallon – an increase of more than 30%. The nationwide minimum wage is up by 40%. Rents are up by 25% nationwide and up 40% in most urban markets. 

And my favorite example, the base price of a Ford F-150, the best-selling passenger vehicle in America, has gone from $18,225 to $23,670 – a 30% increase. That's a domestically sourced and manufactured product… its price is completely dominated by the value of the U.S. dollar. 

Meanwhile… the government says there is no inflation… and that continuing to print $85 billion to buy government and mortgage debt is merely "interest-rate policy by other means." What could go wrong?

Buffett:

Billionaire investor Warren Buffett has sagely warned that buying all of those bonds and manipulating interest rates to stupidly low levels will prove to be much easier than selling them. The fact is, the moment our central bank begins to sell U.S. Treasury bonds, the whole world will follow. After all, our dollars aren't needed in trade for most of the big commodity countries. So the free ride will be over. All the traders ...will surely change course the moment it starts to sell.

The New America = The Old Europe

And what, you might wonder, have our noble leaders done with all the money and credit they've created? 

Mostly, they have expanded the welfare state at the fastest pace in history, creating more dependency in your fellow citizens than has ever existed before in the history of our country. There are now almost 100 million people collecting food stamps, disability, or long-term unemployment. Barely 60% of the adult population of America bothers to go to work, even on a part-time basis. 

On the backs of the poor schleps in America who paid their mortgages and still go to work, a gargantuan pile of debts and obligations have been piled higher and higher over the last five years. Total debt now approaches $60 trillion. Federal debt has nearly doubled in the last five years, from $9 trillion to $17 trillion. And our governments (state, local, and federal) continue to take up more and more of our economy – comprising more than 40% of our roughly $15 trillion gross domestic product (GDP) today....

I have long argued that the collapse of the currency and economy is a planned event.  It is supported by the childlike minds of those who confuse academic hopiness with reality.  The tsunami is not a projection, it is only far off shore.  You cannot stop a tsunami, you can only protect yourself and get away from the all the excitement of the beach.  Most people understand there is something seriously wrong:

Gun ownership in America now stands at 47% of all adults – that's near the highest percentage ever recorded by Gallup...The percentage of self-described liberals who own guns has grown from 30% to 40% in that period. So even folks who don't believe you should own a gun have been buying them... 

....And that's why… despite the central banks' efforts to manipulate the paper price of gold down… there are never any gold coins left to buy. That's why the price of farmland has soared (as I predicted it would). That's why more and more wealthy people are leaving America. And that's why… I firmly believe… this ongoing bull market will end very, very badly.

*   so far this year, more than 40% of the exchanges involved the euro. Only 33% involved the dollar.


If you This is the key: there are not many places to put money for safte keeping.  The US Dollar has been OK because Europe is on the front line of collapse. Our system is based upon banking logic, not a real economy. One day traders will wake up and see others selling off out Treasury debt because it is a bad investement. Why?  Because the Fed has been creating money to buy the debt and has decided it better start selling off trillions of dollars of debt

The market becomes flooded and an old fashion run accelerates causing the wave of panic to back upon itself. The film Margin Call gives you a good idea how this works.  Or, Its a Wonderful Life.

Don't be on the beach.