Posts tagged Depression
Posts tagged Depression
Now, the time has come to issue new advance warnings — some of the most important in the 40-year history of my company.
My new warnings are mostly focused on Europe. But as I’ll explain below, they’re bound to have a life-changing impact on nearly all investors in the U.S. and around the globe.
by Graham Summers Posted Tuesday, 11 October 2011
Here is the reality of the financial system today:
§ The European banking system is facing systemic collapse.
§ The US economy has rolled over and is in a confirmed double dip in the context of a larger DE-pression.
§ The Central Banks and regulators have admitted we are peering into the abyss and they have no clue what to do.
Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.
If you have yet to prepare yourself for what’s coming, now is the time to do so. Whether it’s by moving to cash and bullion, opening some shorts, or simply getting out of the markets altogether, now is the time to be preparing for what’s coming (remember, stocks took six months to bottom after Lehman… and that was when the Fed still had some bullets left to combat the collapse).
And if you’re looking for specific ideas to profit from this mess, 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.
By: Peter Schiff, Euro Pacific Capital
— Posted Tuesday, 27 September 2011
[The] latest gold sell off was sparked by Fed Chairman Bernanke’s admission last week that Washington’s Keynesian stimulus has failed. He admitted that despite trillion-dollar deficits and a gross devaluation of the dollar, the economic picture remains bleak. As such, he outlined the Fed’s “Operation Twist” his latest stimulus effort. Taking the Chairman’s distress to heart, investors dumped “risk assets” like gold and silver. But stimulus is the very reason why we have been buying precious metals in the first place.
While the Fed has been careful to avoid describing the Twist as new stimulus, this is exactly what it is. It is a policy that was first tried, and failed, in the early ’60s. I’m sure that it will fail again. Instead of expanding the Fed’s balance sheet with fresh money printing, it tries to encourage more borrowing and lending by lowering long term interest rates. Right now, the move has restored confidence. But I don’t believe that it can last. When it fails, more quantitative easing will be unleashed.
In the meantime herd instincts seem to have taken over and many people are making bad decisions. They’re betting that the Fed has turned off the monetary spigot for good, forcing investors to “get defensive.” Losses from the recent broad stock market sell-off are likely generating margin calls, and many investors may be taking profits from their gold and silver investments to cover.
It’s my belief that they are as wrong now as they were when this happened back in 2008. The reality is that the US economy is most likely in the midst of a depression. I believe the Fed and the Administration are going to do whatever it takes to mask that fact - and their only tools are spending and printing. If the economy fails to revive, I believe many more banks will start failing. To prevent another highly unpopular round of bank bailouts (possibly termed TARP II), the Fed will likely launch its next round of quantitative easing (QE III). If I’m correct, the prospects for gold and silver should be bright.
Given the gains we have seen thus far in 2011, many people may have felt this bull market had gotten ahead of them. They may be lamenting a train that had left the station. Well, perhaps the train just stopped, and even backed up a bit. I don’t expect it to idle for long.
— Posted Friday, 23 September 2011
By Jeff Berwick, The Dollar Vigilante
Times like these are why we are dollar vigilantes. Talk is incessant about a possible collapse of the European Union - something which we consider to be a certainty. They can let it collapse now or paper it over again and see if they can keep that dead man walking a little longer.
Meanwhile, in the US, the talking heads in mass media look dazed and bewildered that, perhaps, the US is entering “back into recession”. Almost all of them have been brainwashed at the Keynesian alter and actually think the US economy has been “growing”. The truth of the matter is that the US has been in a depression since 2000. It’s an highly inflationary depression, however, and it has managed to fool the great majority. They still listen to government statistics that are fallacious, such as the GDP (see The GDP is a Fallacy). But if they just opened their eyes and could see through the fog of decades of brainwashing and propaganda, they’d see that the true US unemployment rate is probably closer to 23%, over 45 million people are in today’s version of soup lines (now called food stamps) and the US stock markets, in real terms (gold), are down 90% from their highs in 2000.
The scary part, for everyone, is that this depression is just getting started and the more they try to “stimulate” the economy, the worse it will get.
The great bearded one, the one who centrally plans the US economy, Ben Bernanke, added one word into his speech (the word “significant”) when talking about downside risks and the lemmings all rushed off the edge of the cliff. It’s confusing as to why they would listen to anything Bernanke says. Besides the fact that he is the leader of a criminal money counterfeiting cartel he also has been almost shockingly wrong on every prediction or forecast he has ever made.
IF THERE WERE NO FEDERAL RESERVE
The Establishment can no more conceive of money without a central bank than it could conceive of television programming standards without the Federal Communications Commission in 1970 or airline ticket pricing without the Civil Aeronautics Board in 1977.
Established in 1913, the Fed was to be a banker to the nation’s banks, controlling the money supply and, thus, the value of the currency. Without a Fed, someone else would have to handle these (and other) tasks of central banking.
Under the FED, there was monetary inflation in the World War I era, then the recession of 1920-21, and then the monetary inflation and bust of 1926-30, followed by the Great Depression. Stability? There was none.
Another Round of Consumer Price Increases on the Way
By: Clif Droke, Gold Strategies Review
— Posted Monday, 19 September 2011
The ongoing economic depression has the middle class behind the proverbial eight ball. Not only has it resulted in the deflation of housing values but the stimulus efforts of the last two years have resulted in increased retail prices. This is one of the important signs that the depression has a lot longer to run, for until we see a substantial drop in consumer prices deflation’s work isn’t done.
As anyone who has been grocery shopping lately can tell you, prices are high and getting higher all the time. This is a consequence of the Fed’s second quantitative easing (QE2) initiative, which directly resulted in a huge increase in commodity prices. After the 2008 credit crisis and recession, food prices were starting to show signs of actually declining for the first time in years. But as the Fed refuses to allow even a hint of deflation in the U.S. economy, QE2 was begun in order to stop this trend of lower prices from getting established. Instead, prices started accelerating higher once again.
The Fed always goes too far in the pursuit of any of its policies and this time has proved to be no exception. Although the Fed’s stated motive in implementing QE2 was the revival of the U.S. economy, its obvious from reading between the lines of Bernanke’s statements that the Fed has a single minded commitment to fighting the biggest symptom of deflation, namely declining prices, at all costs.
Read more here.
America is getting poorer. The U.S. government has just released a bunch of new statistics about poverty in America, and once again this year the news is not good. According to a special report from the U.S. Census Bureau, 46.2 million Americans are now living in poverty. The number of those living in poverty in America has grown by 2.6 million in just the last 12 months, and that is the largest increase that we have ever seen since the U.S. government began calculating poverty figures back in 1959.