Posted on 04/11/2014 4:51:14 PM PDT by Kartographer
Earlier this week economic strategist Marc Faber warned that some time in the next 12 months the U.S. stock market will experience a crash worse than the massive drop seen in 1987.
He’s not alone. Many contrarian economists seem to agree. And given the state of economic and geo-political affairs they could well be right, much to our detriment.
On the domestic front, the much touted economic recovery is in significant danger of being revealed for the illusion that it really is. Nationwide home sales, for example, have dropped off in record numbers in the last few months and a report released this morning indicates that mortgage originations are as bad today as they were just before the Lehman crisis of 2007. Couple that with a jobs market that is at best stagnating and at worst completely falling apart, and you can probably deduce that if there is any economic growth at all taking place it is about to come to a standstill.
Internationally, the world is fed up with The Fed and the U.S. government’s unabashed debt growth. China, Russia, Iran, India and a host of other countries are establishing trade relationships that are bypassing the U.S. dollar altogether, a move that will soon see the world’s reserve currency lose purchasing power and status. In anticipation of this imminent collapse gold is being hoarded by private and public entities from Berlin to Beijing in an effort to preserve wealth before the Tsunami hits.
(Excerpt) Read more at shtfplan.com ...
Soetoro is way over his pay grade.
And when the welfare queens do not get their welfare checks, what happens then?
We have been set up by our own to fail, these are the useful idiots that think they will be partners in the NWO
They become the have-nots.
Don’t be in a city...
I’m just dumbfounded how many normally-intelligent people can’t wrap their head around the fact that it’s just red ink propping up the stock market. The Fed can’t fix everything. Eventually the bottom falls out of a pyramid and the music stops.
I’ll make my own chair, thank you very much.../s
Raise the import tariffs and put Americans back to work.
The stores are full of Chinese made goods while Americans sit idle.
China prevents the dollars made from coming back to buy U.S. trade goods, and instead uses them to buy U.S. Equities, and debts. We are liquidating the country by allowing China to do this.
They'll do what they've been doing all along on their backs, they'll just have to start charging for it.
After the riots (to get new tvs and such), they will send their mens (sic) to take from those that still have stuff. ;-)
“They will send their men...”
I wonder how many of them have ever seen what a 7.62x51 does to a human skull?
Mayhap they will get a chance to see. ;-)
I feel bad for people living in the big cities.....you know the ones...the whiteys who still think its all brotherhood and kumbaya....and young ones who are just too idealistic to see anything else....and the old ones who just can’t move.....
Life is not so precious to abandon one's dignity. IMHO. That will never be me...
You’re right, cherry. It’s going to be a living hell for urban residents when the riots start. What a wake-up experience it’s going to be for the terminally naive when the fighting begins.
I am so glad that I live in a very rural area. There’s no way that I could be dragged back to a city.
Now that I’ve paid my “Fair Share” to support the Obamatons who depend on my hard work, I can go buy some toys. I think I’ll rename my business to OPs Goldsmithing so I can write off large purchases of precious metals.
Faber and the bears would be right if it were not for the massive fracking boom that is adding 300-400 billion annually to the USA economy. 3-4 years from now that number will rise to 1 trillion dollars annually.
The fracking boom is shrinking the federal deficit and the trade deficit.
Nobody can bet against the dollar under such circumstances.
The economy is not going to go bang upward. Rather it will inch up driven primarily by the oil patch.
There’s no economic downturn in the cards when oil production is rising at historical rates.
I wish you were right.
But I fear I will live to see the moment...when in one fell swoop oil won’t matter so much when people are starving.
I equate our current economy to Jenga; there really is no alternative now...
Gas prices keep going up. With a weak economy sooner or later it will bite. The combination of of rising food and energy will sooner or later take a toll on already put upon Americans. I think they are right and it will be sooner.
The depression occured during Texas’ oil boom. The fracking boom will certainly help those states where it is occuring, but it won’t lift all boats.
Gas prices keep going up. With a weak economy sooner or later it will bite. The combination of of rising food and energy will sooner or later take a toll on already put upon Americans. I think they are right and it will be sooner.
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Agree that rising gas prices aren’t good. But right now they’re range bound within upper and lower boundaries. A sudden spike up to 5 dollars a gallon would choke the economy. But rising US oil production will not allow that to happen.
The depression occured during Texas’ oil boom. The fracking boom will certainly help those states where it is occuring, but it won’t lift all boats.
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Its true that the great 1930’s oil boom in texas happened at the same time as the depression. But the depression was primarily caused by terrible tight fed policies. The fed was convinced that too many people had over borrowed. That the way to solve the problem was to force the over borrowers into bankrupsy. Then they would be bought out by better managed companies. The fed accomplished that with very very tight money. The overleveraged companies went bankrupt and they were bought out. But in the process much of the USA—except for Texas— went into a severe downturn.
The current fed took just the opposite tack as their brethren from 80 years ago. They have had a very loose money policy. The real danger of their very loose monetary policy has been that the dollar would go into death spiral and/or we would get something like 1920’s german style inflation. Especially given that the Chinese and Russians are working hard to degrade the use of dollars around the world.
Rising US oil/gas production has killed off that possibility because the fracking revolution is shrinking the federal deficits and the trade deficits. Even more significantly for all the talk about how the fed is printing money ex nihilo from nothing ie fiat money. ....Nobody talks about how the fracking revolution has basically placed another 30 trillion dollars or so worth of oil backing behind the dollar .... from nothing.
Its a fracking miracle. I’m dead serious here. Its like in the wizard of oz when dorthy’s house just came out of the sky and slammed right down on the witch. All you can see are the witches shoes. Even those shrink into nothing. The rest of her is crushed under the house set down by the tornado.
Well, the Founders description might be more apt. The fracking revolution is a work of Providence. There’s also a thank you in there for Mitchell energy and George Mitchell for he and many like him are most certainly the agents of Providence.
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