The Economic Crash Already Has Started

Carefully consider the following:

1.  Wall Street just had its worst opening week in history.

2.  China's Bubble is rapidly deflating.  China is the world's second largest economy.

3.  The U.S. (and most of Europe) currently is experiencing deflation, which will be followed (most likely) by inflation.  The real estate market, the housing rental market, and grocery prices still are inflated...but as the Collapse intensifies, they too will deflate.  Stocks and bonds are on the cusp of bursting completely.

4.  The Corporate Media, which usually have no more than half a sentence if the news about the Stock Market is negative, couldn't ignore number 1. above.  They attempted to smooth it over by stating, in essence, "Nothing to worry about...it's only volatility in the Market.".  Several analysts don't think so.

5.  Let's not forget the Stock plunge on August 24, 2015.  Only half of the historic 1,000-point drop was recovered by day's end.

6.  Our Stock Market is rigged to favor the high-frequency traders who use computer algorithms that make trades in milliseconds.

7.  Financialization has converted our economy largely into one of nonproduction.

8.  The Corporate Media are touting the December jobs report as evidence our economy is strengthening...December, the month of temporary Christmas employment. 

9.  Wages basically still are stagnated.

10.  Crude oil prices continue to deflate.

11.  European Stocks had their worst week since August, 2011.

12.  Our Fed Gov't has been waging a Currency War against China for awhile now; China is retaliating (most likely) with Cyber attack reconnaissance.  It's the belief of some analysts that they are gearing up for a major Cyber attack on our financial system, perhaps even our utilities (such as power & water systems).  I think the probability of that is very high.  Nothing is secure regarding computers, the internet, etc.  Even the Pentagon has been hacked.

13.  The Fed Reserve finally realizes that it can't artificially control any of this.  Its recent rate hike and any future ones are nothing more than an attempt at face-saving.  They are out of ammo.  This whole thing is a worldwide event.  To believe that the Fed Reserve somehow can manage this is to be deluded.  All they are doing now is bursting the U.S. Asset Bubble.  A few people will make a ton of money.

All the above does not mean things will go bust tomorrow, or the day after, or next week.  The Crash will continue to build until, at some point, the economy will be pushed over the precipice by an event or a relatively quick series of events.  I'm afraid that the analysts who predict 2016 as the year of the Collapse are correct...at least, the probability of that is extremely high...extremely high.

Don't despair--- the Powers-That-Be will prop up the System once again.  IF the Collapse ultimately is not as large as the Great Depression, the time to get things up & running again may be relatively short--- a week, or two weeks, or a month, or two months, or???  Nobody knows for certain.  Nobody. 

Be prepared.  Stock up on household commodities now.  There still will be goods around in warehouses when the Crash reaches its peak, but 
distribution essentially will cease because credit will dry up.  At the wholesale level, businesses run on credit, not cash.  Banks will restrict access to cash anyway for both business people and consumers...in order to prevent bank runs.  Some banks already have changed their Bank-Customer Agreement to reflect the BAIL-IN, which means in a Crisis they are allowed to confiscate your deposits.  Obama and the rest of the G-20 leaders signed that into existence.  Get out of Mega Banks NOW.  The FDIC Fund is a pittance compared to the amount of $$$ on deposit...you'll be lucky to get a penny on $100.

Once again, the Rigged System is designed to protect banks and the Oligarchy, not consumers and the economy.  And so it goes.

p.s.  The ten-year Great Depression (of the 1930's) was not recognized and/or named as such until halfway through it.

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Not only my opinion.  Be Well

BOYCOTT Mega Banks

Shortly after WW II, the Financial Sector made up about 3% of the U.S. economy.  Today it's just under 10%, but accounts for more than 30% of all corporate profits in this country.  In the past, we had Finance Capitalism in this Land (relative to the Financial Sector).  Banks, especially large ones, served a useful function by financing businesses and their expansions...thus creating new jobs.  Now we have Casino Capitalism.  Large banks put their (and your) money into bizarre financial derivatives and bets in the Futures markets.  Estimates vary, but approximately $1.25 quadrillion in derivatives now are out in the marketplace.  That amount is many times more than the GDP of the entire world.  That's insanity, and puts us all at risk.  Worst of all, that activity does not finance new businesses, expand old ones, or create any jobs.

On top of that, at the G-20 Meeting late last year, new rules were promulgated allowing 30 mega, international banks to be "Bailed-In" in the case of a financial crisis.  That means those banks can appropriate the funds in YOUR accounts if they get into trouble.  They simply seize your money.  Supposedly then, FDIC Insurance bails you out...covers your losses, or more accurately, the theft of your money by the bank.  Unfortunately, the FDIC "kitty" is only about $46 billion, while the deposits covered are in the trillions.  The Fed Reserve could conjure-up the difference, but might not because that would make the dollar even weaker during an ongoing Crisis.  [By the way, G-20 Rules are not a Treaty.  The only approval necessary is that of the Executive Branch.]  The new rules don't specify "depositors" or "bank customers", but rather the bank's "creditors".  The largest bunch of creditors a bank has is made up of its depositors (customers).  Whether you know it or not, every time you deposit money in a bank you are loaning that money to the bank.  Your checkbook or savings book is the bank's I.O.U.  So in those transactions, you are one of the bank's creditors.  According to the G-20, your funds now can be appropriated by the bank if that bank is in crisis.

You might ask, how can this be?  The G-20 was formed after the last Crisis and created a Financial Stability Board...a "financial regulator".  They make the rules, and the G-20 leaders (of countries) usually go along automatically.  Whether they fully understand the rules or not, leaders such as our President sign on the dotted line...with no approval of Congress.  Needless to say, the process is in no way democratic.

Coupled with all of the above, in the last few years several mega banks (the corporations, not individual executives) have admitted to criminal manipulation of foreign currency exchanges, civil sub-prime mortgage fraud, other frauds, and of course, there was the Barclay's Bank LIBOR interest rate scandal.  Some analysts have described these new moguls of Finance as thinking of themselves as Financial Gods and Masters of the Universe.  Their hubris is incredible.  They all need to be taken down about 100 notches.

You might ask, so what, what effect can I have on these conceited "investment" bankers?  I would say, plenty.  We could have a great effect if all or most (or even many) of us would boycott mega banks... ASAP.  With the elimination of Glass-Steagall by Bill Clinton, Repubs, & Dems, the conceited mega bankers can & do gamble with your money.  If their bets go radically wrong, they now can (with the blessing of the G-20) simply seize any money you have in their bank.  Get out of all mega banks, NOW.  Patronize your local bank; they'll be more than happy to have you as a customer.  If at all possible, cut up your credit cards issued by mega banks.  They borrow money for as low as POINT 25 percent (.25%) interest.  What do they charge you?  Credit cards are a racket.

The so-called "investment" banks are not that for the most part...not anymore.  These mega banks are gambling in the stock market on Futures and Derivatives.  Their (& your) money goes into foreign currencies, foreign capital investments, derivatives, and other no-job-creating ventures.  They are gambling not only with individual depositor funds, but also with pension funds, and those of cities and counties.  They sometimes bet against their own customers.  They don't even especially care about the bank for which they work...it's all about getting rich quick, or richer.  Financial analysts, meaning those who study the Financial Sector, mostly all agree that (in general) mega banks are parasites on our economy.  We really have two separate economies in this country:  the one representing & serving most of us; and the one representing & serving the mega banking Oligarchy.  They are vastly different.  When the highest levels of our Gov't report that things are improving in our economy, they aren't talking about the economy in which most of us find ourselves.

Mega banks should be broken up.  They are parasites on the rest of us.
BOYCOTT them.  Start now...for the sake of future generations, start now.

Not only my opinion.  Be Well