Posted on 08/21/2011 2:43:16 PM PDT by Nachum
I’ve been warning of this for well over two years. My primary warnings were:
1) That 2008 was just a warm-up 2) That the REAL Crisis had yet to unfold 3) That the REAL Crisis would make 2008 look like a picnic
Well, the period I’ve been warning of is now here. What’s happening right now is not just a market crash, bear market, deflation, or any other item related to just one asset class.
Instead, this is a collapse of the entire US monetary and political system and the mentality of spending one’s way to wealth.
For 80+ years, the US has operated under a crony capitalist system in which politicians dole out political and economic favors to the chosen few whose bribes/donations funded their campaigns.
This system was aided and abetted by the US Federal Reserve, which dealt with any and all economic issues by printing more money. Whether it was the Asian Crisis, Long Term Capital Management, or the 2008 Crash, the Fed dealt with the issue by opening the floodgates and flooding the financial system with liquidity.
Aside from making moral hazard (the notion that those large firms who screwed up were never actually allowed to fail) the bedrock of the financial system, the Fed also blew a credit bubble which in turn funded bubbles in virtually every asset class: bonds, stocks, real estate, emerging markets, even some commodities.
(Excerpt) Read more at zerohedge.com ...
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The entire Western world will need to wake up to this.
Remember...never accept the mark.
Another gold bug article, I’m sure, if you ‘click to receive the free 9 page investment report’.
People have been saying this since 2008 ... before that even.
When?
So far both parties have been successful at:
__ sweeping things under the rug
__ kicking the can down the road
__ blaming each other
Bring it on already.
I can show you how. Indeed, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.
Order now and get a free set of steak knives.
I’m holding out for the Cadillac El Dorado. I think I can win that sales contest this month.
When folks like this have it figured out, the gig is pretty much up.
I can show you how. Indeed, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor. Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008). Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.
I think that's true. Reagan's tax cuts, Clinton's capital gains tax cut, and Bush's tax cuts were all good, but the spectacular growth after each of them was probably due more to Fed money-printing. Don't get me wrong, the tax cuts were well-designed and necessary, but probably wouldn't have resulted in the growth figures we saw absent the funny money.
Actually, the report IS free and it does not hype gold at all.
Why are more people working for the government than in the private sector? I want to describe what I call the political money cycle. It is the Mother's Milk of Big Government.
It is getting frightening the extent the monster of Big Government has grown. I want to describe what I think is the workings of the government political money cycle. It describes the public union/representative symbiosis as well as the huge lobby industry. It applies to both Democrats and Republicans:
The people’s representative enables government contracts and grant money to go out to a body of recipients. These contracts and grant money, of course, represents your tax dollars. The recipients of this tax money, to insure continued receipt of contracts or grant money, send campaign contributions back to their political benefactors. It cannot be emphasized enough that such campaign contribution “kickbacks” are in actuality, your tax money being recycled back to the representative. What they represent are an incentive to the politician to increase the cost of government so that the flow of these kickbacks can grow. This money is called the politician’s War Chest. Let’s take a closer look at the War Chest.
The War Chest is that sum of money, from political kickbacks and donations from the electorate. This sum of money does not sit in some bank until it is spent on the cost of a campaign. No, this money is being invested in the money market. Usually, the politician has good advice from his “friends” on where to invest that money. You can be certain that these War Chests are much larger than the amount accounted by the Public Disclosure Reports. In fact, over the years a politician is in office, they can amass millions in market growth. This the true power of the incumbent. It makes the idea of being in office without term limits a very lucrative business. It cannot be emphasized enough that all of this wealth generation is from tax money and donations. All of that money is an encouragement to the politician to grow more government and increase the level of taxation for their own personal wealth. Personal wealth? Yes, all the politician has to account for is what is stated by the Public Disclosure Reports. The wealth generated by that money is between public official and the IRS. I emphasize that the publicly stated value of the War Chest is not the true value of the War Chest. I am not even certain if that money needs to be reported to the IRS. I can imagine these politicians have a law that makes them exempt. Some Freeper out there may know more about that.
The more I think about this political money cycle, the more concerned for this nation I become. I hope it provides something someone can chew on and think of a way to break this political money cycle that encourages runaway government spending.
Exactly! I tune out as soon as I hear the desperate and overused marketing word "REAL", especially in ALL CAPS. :-)
May be true but I wish for once, these folks that cry gloom and doom would do it for the good of others as opposed to making a buck. I would trust it more because you can be sure if I saw a tidal wave approaching, I would warn folks for free.
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