When asked for proof of this imminent economic recovery, the Teleprompter King stammers uneasily, clears his throat, then points to the fact that the stock markets are hitting all-time highs every week and real estate prices are soaring. Yet again, he "forgets" to mention that the stock and real estate market rise has been fueled by the Fed's disastrous ongoing QE program, which throws trillions of taxpayer dollars at multi-national investment banks and hedge funds to prop those bubbles up to insane levels to give the illusion of solvency.
To further that cause, interest rates have been kept at insanely low levels. In turn, banks are gutting their customers with negative savings rates to force millions of the working class and retiree lambs into the Wall Street wolves den casino of highly leveraged stock, bond, IRA, 401k risky paper investment vehicles to get any kind of yield at all. In fact, the major brokerage houses, like sharks smelling blood in the water, have put out a call to their retail clients: "don't get left out of this rising bubble, throw caution to the wind and place your bets on Google, Apple, Netflix, Facebook stock and municipal and sovereign debt bonds!"
|Wall Street needs your blood!|
As all great investigators know, any one piece of evidence does not a case make, but a whole series of them always uncovers the truth. Let's put on our investigator hats and examine a few of these inconvenient truths the government would rather we ignored in favor of mindlessly watching "reality" gossip TV, mainstream news and sports along with the rest of the indoctrinated sheep instead. However, if you are a reader of this blog, you're most definitely not among the easily herded, but I digress.
THE STOCK, BOND & REAL ESTATE MARKETS
The DOW continues to inch up to new highs as yields on bonds appear to remain attractive as a means to counter the continual decline of the US dollar. Yet, if the investment banks are doing so well shoveling this crap onto their clients, why have Goldman Sachs, Morgan Stanley, Chase, Merill Lynch et al been laying off their high-salaried brokerage staffs by the thousands over the past year? Even Barclays just announced the layoff of 6,000 brokers and an additional 14,000 employees by 2016. Sounds like they have all run out of willing suckers to bleed dry as people awaken to the fact that yields on sovereign debt look so attractive because the countries offering those bonds are themselves on the verge of total ruin.
|How brokers really invest your money.|
Turning our attention to the new improved real estate bubble, the ugly truth is once again Fed intervention! They have temporarily propped up the grotesque real estate corpse by giving trillions to hedge funds since 2009 to buy up huge blocks of distressed properties, repackaging and offering them up as AAA-rated mortgage-backed securities (MBS). Uh, haven't they tried that before? Indeed they have, which caused the MBS debacle of 2008! I guess their motto is "short-term memory suckers can be fooled again and again. Rinse and repeat ad infinitum."
If you thought the 2008 real estate crash was devastating, you ain't seen nothin' yet! The proof? As Herr Obama drones on about the success of his fiscal policy in stabilizing the real estate market, every major bank has been massively laying off their mortgage departments due to almost non-existent new mortgage applicants. It seems the growing numbers of the unemployed can't afford to buy a new home after all. What a shocker! A sure sign that this bubble is about to blow is the fact that banks are once again offering low/no money down mortgage loans to low/no income citizens and illegal immigrants as long as they have a pulse. Why? Because the hedge funds now want to unload their portfolio of over-bloated crap before everything goes to shite! Yes, very familiar to those who have been paying attention.
|Bankers are the last to go & now they're going too!|
In fact, despite the rosy employment numbers, welfare rolls have swelled to all-time highs above 60 million, with an estimated 110 million Americans on some form of government assistance. Doesn't sound like an economic recovery because there isn't one! To add further fuel to the delusion, with a straight face, Obama said raising the debt limit, currently at $18 trillion, doesn't increase the nation's debt. I suppose this is proof he thinks we're all ignorant children devoid of common sense.
Along with unfunded liabilities such as Medicare, Social Security and EBT, the real national debt exceeds $200 trillion...and growing daily! To make matters worse, 70% of U.S. GDP is made up of consumer spending, with a big chunk of that spending now coming from the skyrocketing health insurance premiums the people must pay because of the "Affordable" Care Act (Obama Care), whose goal from its inception was to greatly enrich mega-corps at the expense of the citizens. Mission accomplished, Obama!
UKRAINE & THE END OF THE DOLLAR
When nations go broke, they go to war and that's what the U.S. has been pushing for. After failing to convince allied nations to attack Syria and being exposed as a buffoon for it, Obama has turned his attention to Ukraine. Once again, the rallying cry by the White House war-hawks has been to talk tough sanctions against Russia for intervening in Crimea and Ukraine to protect the freedoms of the people in that region. Yeah right! The very last thing the White House ever supports is freedom or independence for any nation around the globe. No, the U.S. and their bosses at the UN and IMF have consistently employed the same M.O. -- covertly send in terrorist shock troops to destabilize, install puppet dictators, flood regions with debt, then steal their resources.
|Dutiful puppet speaks for his true masters!|
Given that the U.S. is drowning in debt and the dollar has become a purely fiat currency no longer having any gold-backing since at least 1971, it's trade value is quickly evaporating to nothingness. This is the very reason that creditors such as China and Russia have been dumping dollars and loading up their central bank vaults with physical gold for some time now. They know the U.S. can never repay its debts, while its only tactic has been to keep printing unlimited amounts of increasingly worthless paper dollar debt notes.
Amid the controversy that Fort Knox gold vaults have been empty since the 1960's, Germany demanded repatriation last year of its 800+ tons of gold the U.S. was supposed to be holding in storage for them. The U.S. responded by saying they couldn't have their gold right away and instead they would receive about 110 tons per year over seven years. Instead, after a year, Germany has received a paltry 5 tons back and it's not even their own gold!
|Fort Knox on a good day!|
But it could only afford to give them 5 of the 100 tons promised last year! That's less than 1 percent of Germany's gold. So yes, Germany and every other nation that believed their gold was being protected by the Fed now knows they have been royally screwed!
Couple this fact with all of the above evidence and a very clear picture emerges. The IMF is quickly introducing a new global SDR currency, backed in part by gold, that effectively neuters the dollar's former monetary influence. This is why it is being allowed to die and also spells the end for all derivative paper investments denominated in dollars and euros.
|Time to make your own rules!|