by Bob Livingston
The body of a nation dies when it gets so congested that it can’t live. It seems that a full measure of corruption must implode a nation before it can begin anew.
Revolution takes time. It’s a gradualism that the population is oblivious to. Most people cannot imagine that the United States is in a state of economic and social collapse, even though the signs and indicators are everywhere.
Where and what is the rot in America? It’s the consistent ongoing devaluation of the U.S. dollar by the U.S. government. This is economic warfare against the American middle class and all producers of wealth and savings. If this were the work of a foreign enemy, all-out military mobilization would be a full national effort.
Devaluation of the currency is a concept of subtle theft. It is stealth transfer of wealth without violent conflict.
The elite moneychangers can take money (purchasing power) right out of your pocket simply by printing new money. New money dilutes old money toward worthlessness. New money in circulation, either digital or printed, is evidence of government theft.
Can anyone imagine how much theft and impoverishment is going on with the trillions of dollars’ worth of new money created under the aegis of quantitative easing? The bank robbers of old were at high risk. Now, it’s the banks and the government that are robbing the people with no risk at all. All the robbing is done with the printing press.
Thanks to Ben Bernanke’s shenanigans, stocks are up and housing prices are up, but so is the price of food and energy. But rising stock and housing prices are good, right? Not in the current climate, because it’s a false hope built on piles newly printed “dollars.” It’s cheap money, but it is an expensive proposition. It’s a bubble of titanic proportions, and its collapse will make the bubbles of the past pale in comparison.
There is a flood of money that is being pushed downstream. As Zerohedge writes, we are in uncharted territory that cannot go on forever.
The creation of money by the Fed, the ECB (European Central Bank) and Japan’s central bank keeps raising the tide but like all tides when it reverses course if will flow back out from the high water mark which has been created and with an equal force.
The reversal will come from an event or from the moment that the central banks reverse position or from the fall in the demand for goods and services as consumers/investors have less money to buy things.
The elite behind the scenes count on the ignorance of the American people, who have been dumbed down with drugs, tobacco, alcohol, debauchery, national sports craze, instant gratification, debt and no rule of law. There is no hope for them unless something wakes them up!
And now, my friends, the government and the bankers have destroyed the ability of seniors in America to live off their life savings. The U.S. government and the banker elite have killed any hope of our seniors getting a decent rate of interest for the next three years on savings accounts.
Now if the suppression of the price of silver is broken and silver breaks out into a strong uptrend, which it is going to do, watch the buying power of the middle class drop into the toilet as the cost of the essentials of life skyrocket.
So the government elite and their symbiotic partners in crime, the bankers, are not satisfied with impoverishing America by debauching the currency, they deny seniors their old age income by suppression of interest rates in favor of the bond holders who hold government “debt.”
What Do I Expect?
Members of the American middle class have lost their interest income. They are starved for income, so here is what I foresee: I believe that money will continue to flow into the stock market for several reasons:- The American public is abandoning bank accounts and money market funds in search of higher stock dividends.
- Corporate buybacks and mergers.
- Foreign investors buying U.S. stocks.
- Money from bondholders where yield interest income is very low.
- When and if the stock market skyrockets, the public will not be able to resist and will “jump in.”
- The public will see the glitter of capital gains, that is, stocks increasing in nominal value. Remember that Americans are focused on nominal (day-to-day) dollar value. They don’t understand real value like U.S. constant dollars from the 1960s and silver and gold.
- The stock market has the potential to explode from “short covering.” As the market is now overvalued, many investors will short the market expecting a crash. But investors don’t see the new paradigm outlined above; and when and if the stock prices go up (instead of a big correction, as appears imminent), most investors will stay on the sidelines.
- The Cyprus event. This foretells a worldwide bank run! The new paradigm is that bank depositors are considered lenders (not depositors), whereby a percentage of their deposits will be taken in exchange for worthless bank shares. This is the same scheme planned for retirement funds being exchanged for worthless U.S. bonds. Up to now, bank and financial deposits have been guaranteed by Federal bailouts. This will scare cash out of banks into residential real estate and the stock market.
All of the above suggests to me that there will be an ocean of liquidity (cash) with nowhere to go except real estate and the stock market.
Also remember that the nice government psychopaths love the stock market in which they can feign prosperity and even heaven on Earth. But quietly and constantly, paper money is, and will be, losing purchasing value. Rising stocks makes the public look the other way.
What about gold stocks? They will rise, too.
My bet is that the Federal Reserve is hell-bent on destroying the U.S. dollar, so watch out. All of the millions in cash will be worthless!
We have to escape with farms and resources of real and lasting value before the end of the endgame.
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