Post by stingray on Aug 9, 2015 8:42:00 GMT -5
Whether you want to believe it or not, the financial system world wide is getting ready to come to a complete halt. The 2008 crisis was a pre cursor to the events getting ready to happen in late 2015 and 2016. The world, especially America, have been living well above it’s means now for 80 years. Ever since FDR took us off the gold standard it has allowed the US to operate as a debt ridden country. Ever since Nixon walked away from the Bretton Woods Agreement it has allowed the US great hegemony in the world and allowed a thinking the we are “To Big To Fail”.
All the economic indicators are screaming “RECESSION” “DEPRESSION” “COLLAPSE”. Since the fed’s printed their way out of the 2008 meltdown, they now have the mentality that the can print their way out of any crisis.
I mentioned last week that there is only 3 types of countries in the world: Resource Rich, Manufacturing and Consumer. When anyone of these countries slows down it in turn has a negative effect on the the other 2. China is obviously in a full fledge contraction and shows no signs of stopping. The scariest thing that happens when you have a global slowdown is all the world currencies loose value. Except one. The dollar. The dollar, because of its global reserve status, will be artificially strengthened by the weakening of other countries currencies. This is happening today because of the bullion banks role in manipulating the gold and silver markets. Making it undesirable for investor to seek shelter there. That only leaves one “Safe Haven”. The dollar.
Jobs are down, wages are down, GDP is down, revenue growth is down, expansion is down, consumer spending is down. Yet the dollar is strong! The dollar is up because psychology tells investors its the only place to go. What happens when the dollar starts to fold and physical commodities start to rise?
The media today and the government pick and choose which economic indicators to use to show the US is steaming right along. Since the GDP growth has been stagnant for almost a decade, the fed’s change how they report GDP. They would rather not report any numbers because this could cause investors to sell stock. You can thank Reagan for instituting a lot of the psychological regulations that are in place today on the stock exchange. And since the democrats now have the backing of more millionaire’s than republicans nobody cares to change them.
One of the main indicators in any economy should be commodities. Commodities are resources that actually make the products we buy. The CRB index, Commodity Research Bureau, is combined of 19 commodities. Aluminum, Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lean Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soybeans, Sugar, Unleaded Gas and Wheat. These commodities can be made into thousand’s of products that American’s buy everyday. The CRB index just hit the same lows that triggered the 2008 financial crisis. Remember that the only reason America kept the world afloat in 2008 was due to the infusion of cash into the banking system. If it wasn’t for that, we would of been Greece. Not to mention that was 8 trillion dollars of debt ago too. Since the CRB tracks the use and production of 19 key and everyday used resources, one would think that that is a pretty big deal. But the media probably doesn’t even know it exists because the fed’s don’t want the numbers reported. That would be unpatriotic.
So if the purchase of raw material by the manufacturing countries is down because the consumer countries are not buying any more, then the resource rich countries that mine, drill and grow these commodities stop doing such things. Their economy declines along with the manufacturing countries and although this was brought about because the consumer countries stopped buying because of stagnant wages and a stagnant economy, their currency grows stronger because it is the reserve currency. Pretty slick eh? America can’t loose and this is exactly what pisses Russia and China off. America plays with a stacked deck in their favor.
Even with commodity prices falling, people around the globe continue to buy physical gold and silver to hedge their investments against a downturn. As it has been reported all summer, mints around the world are at full capacity and still can not keep up. It is estimated that only 1% - 2% of people worldwide are purchasing gold and silver and the mints can’t keep up. What will happen to supply when there is panic about the global financial system and more people buy? In July one could easily buy pre-1964 silver coins with a $2 premium. Today it’s very difficult to buy silver coins for less than $4 premium. With demand continuing to grow, premiums and waiting lists will continue to grow.
I first got interested in the stock market when I was in 7th grade (almost 30 years ago). We had to pick stocks that were local or had a local influence and watch them throughout the year. At the end of the year we calculated up our earnings and the student that made the most won. I didn’t win but I was at the top and was hooked on finance ever since. I’ve seen the Dow go from 3,000 points to 18,000 in that time. I remember Oct 1997 vividly. I was fully invested in the stock market in 2000 and then 9/11 hit. I was a victim of the real estate market in 2008. I got greedy and thought that if I continued to buy and rehab homes, I would always find a seller. In a 6 month time I accumulated $1 million dollars in equity in real estate. By the time the real estate and banking crisis was in full bloom I had lost $1.5 million the following 3 months. I don’t write this to gloat or seek pity, I write this to insure that you pray about your financial decisions. God will lead you through the valley. Be anxious in nothing. God IS still in control, no matter who is president or who has nukes. God will lead you if you listen. Decisions made in fear will only falter. Just ask Moses. He hit the rock twice in fear of the people instead of standing steadfast on God’s promise. Because of that, when the Israelites crossed the Jordan, Moses went to the mountain to die. Fear will always lead us away from God’s blessings, promises and protection. Always be in prayer and always be listening.
All the economic indicators are screaming “RECESSION” “DEPRESSION” “COLLAPSE”. Since the fed’s printed their way out of the 2008 meltdown, they now have the mentality that the can print their way out of any crisis.
I mentioned last week that there is only 3 types of countries in the world: Resource Rich, Manufacturing and Consumer. When anyone of these countries slows down it in turn has a negative effect on the the other 2. China is obviously in a full fledge contraction and shows no signs of stopping. The scariest thing that happens when you have a global slowdown is all the world currencies loose value. Except one. The dollar. The dollar, because of its global reserve status, will be artificially strengthened by the weakening of other countries currencies. This is happening today because of the bullion banks role in manipulating the gold and silver markets. Making it undesirable for investor to seek shelter there. That only leaves one “Safe Haven”. The dollar.
Jobs are down, wages are down, GDP is down, revenue growth is down, expansion is down, consumer spending is down. Yet the dollar is strong! The dollar is up because psychology tells investors its the only place to go. What happens when the dollar starts to fold and physical commodities start to rise?
The media today and the government pick and choose which economic indicators to use to show the US is steaming right along. Since the GDP growth has been stagnant for almost a decade, the fed’s change how they report GDP. They would rather not report any numbers because this could cause investors to sell stock. You can thank Reagan for instituting a lot of the psychological regulations that are in place today on the stock exchange. And since the democrats now have the backing of more millionaire’s than republicans nobody cares to change them.
One of the main indicators in any economy should be commodities. Commodities are resources that actually make the products we buy. The CRB index, Commodity Research Bureau, is combined of 19 commodities. Aluminum, Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lean Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soybeans, Sugar, Unleaded Gas and Wheat. These commodities can be made into thousand’s of products that American’s buy everyday. The CRB index just hit the same lows that triggered the 2008 financial crisis. Remember that the only reason America kept the world afloat in 2008 was due to the infusion of cash into the banking system. If it wasn’t for that, we would of been Greece. Not to mention that was 8 trillion dollars of debt ago too. Since the CRB tracks the use and production of 19 key and everyday used resources, one would think that that is a pretty big deal. But the media probably doesn’t even know it exists because the fed’s don’t want the numbers reported. That would be unpatriotic.
So if the purchase of raw material by the manufacturing countries is down because the consumer countries are not buying any more, then the resource rich countries that mine, drill and grow these commodities stop doing such things. Their economy declines along with the manufacturing countries and although this was brought about because the consumer countries stopped buying because of stagnant wages and a stagnant economy, their currency grows stronger because it is the reserve currency. Pretty slick eh? America can’t loose and this is exactly what pisses Russia and China off. America plays with a stacked deck in their favor.
Even with commodity prices falling, people around the globe continue to buy physical gold and silver to hedge their investments against a downturn. As it has been reported all summer, mints around the world are at full capacity and still can not keep up. It is estimated that only 1% - 2% of people worldwide are purchasing gold and silver and the mints can’t keep up. What will happen to supply when there is panic about the global financial system and more people buy? In July one could easily buy pre-1964 silver coins with a $2 premium. Today it’s very difficult to buy silver coins for less than $4 premium. With demand continuing to grow, premiums and waiting lists will continue to grow.
I first got interested in the stock market when I was in 7th grade (almost 30 years ago). We had to pick stocks that were local or had a local influence and watch them throughout the year. At the end of the year we calculated up our earnings and the student that made the most won. I didn’t win but I was at the top and was hooked on finance ever since. I’ve seen the Dow go from 3,000 points to 18,000 in that time. I remember Oct 1997 vividly. I was fully invested in the stock market in 2000 and then 9/11 hit. I was a victim of the real estate market in 2008. I got greedy and thought that if I continued to buy and rehab homes, I would always find a seller. In a 6 month time I accumulated $1 million dollars in equity in real estate. By the time the real estate and banking crisis was in full bloom I had lost $1.5 million the following 3 months. I don’t write this to gloat or seek pity, I write this to insure that you pray about your financial decisions. God will lead you through the valley. Be anxious in nothing. God IS still in control, no matter who is president or who has nukes. God will lead you if you listen. Decisions made in fear will only falter. Just ask Moses. He hit the rock twice in fear of the people instead of standing steadfast on God’s promise. Because of that, when the Israelites crossed the Jordan, Moses went to the mountain to die. Fear will always lead us away from God’s blessings, promises and protection. Always be in prayer and always be listening.