Not pessimism – realism

Money news [in June]:

Peter Schiff, the CEO of Euro Pacific Capital, says the stock market collapse we experienced in 2008 “wasn’t the real crash. The real crash is coming.”

He says that Federal stimulus, or quantitative easing, never works and that it just makes the economy sicker in the end.

A noted economist agrees with Schiff that a much worse stock market crash is coming. And unlike Schiff, he has given very specific details about just how bad it will get.

“The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012.”

That catastrophic outlook comes from Robert Wiedemer, economist and author of The New York Times best-seller Aftershock. Before you dismiss Wiedemer’s claims, consider this: In 2006 he accurately predicted the collapse of the U.S. housing market, equity markets, and consumer spending that almost sank the United States.

Money morning [in July]:

In a recent interview with NewsMax TV, legendary investor Jim Rogers stated that “Every four to six years since the beginning of the Republic, we’ve had economic slowdowns, we’ve had recessions. Always. It’s coming again. You can add as well as I can – in 2013 or 2014, we’re going to have another slowdown, whether it’s caused by Europe or who knows what’s going to cause it, but it’s coming.”

Individual investors are already fleeing the stock market on these predictions. Stock mutual funds lost $3.1 billion during the week ended July 3, according to the Investment Company Institute. Investors have now withdrawn money from the stock market for 19 of the past 20 weeks.

Fox [in August]:

Market Oracle [October]:

The derivatives time bomb lingers over every financial market on the planet. Reforms cannot remove excess and greed, from risk management fiscal contracts. When the largest foreign trading partners look to insulate their transactions from an unstable Dollar currency, the panic has already begun.

It should be self-evident that additional U.S. Treasury bailouts with unlimited Federal Reserve claims against every asset of collateral that can be attached, is obscene in its nature. Hedging is equivalent to reassigning betting risk to unfunded insurance underwriters that would never be able to pay off the claim. Governments are broke by almost any financial standard. Central banksters accumulate titles to real property and assets by hook or crook.

Nation states held hostage to financial manipulation are slaves to the central banks. With the demise of the Dollar, the fake debt obligations of the United States must be repudiated. Foreign states are prepared to sever their links to the Dollar reserve currency, by trading directly in the domestic currencies of other countries. Interacting commerce in Dollars with American companies will continue, but the yoke of Federal Reserve Notes legal tender will be rejected when the derivative meltdown explodes.

We’re in for a fun time.

3 comments for “Not pessimism – realism

  1. October 18, 2012 at 14:29

    I rather suspect that may be close to realism, due to huge structural problems in our whole way of doing things, a way that was sort of fit for purpose for a while (when applied to a selective part of the world and for a fairly short time). We would probably disagree about many of the structural defects, but perhaps agree on many of the likely consequences.

    But “Don’t worry, be happy”, as a man once sang.

  2. james wilson
    October 18, 2012 at 17:02

    If the stock markets were seeing net withdrawals they would be falling. They aren’t. But in this case beauty is not even skin deep. It’s the product of a politicized Fed stealing from generations of savers to finance zero interest rates. When the bough breaks, this baby will drop 75% unless there is a genuine repeat of the Great Depression and we fall further. That market went from 381 to 42, and those were in deflation dollars. No telling what measure we are going to have to calculate this debacle in.

  3. Daniel
    October 19, 2012 at 08:31

    This time it is not an economical crisis. It is structural.

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