“Everything Else Is Almost Irrelevant”: Era Of Cheap Money Ending, Financial Hell Unleashed
Jan 4, 2016 by Mac Slavo
We’re living in the calm before the storm.
That much everyone can sense. The stock market highs and holiday spending spree will soon be over, the inauguration will presumably go as planned, but that’s when everything could start to go off course.
The only question is how the storm is going to stir into a frenzy – there will be a pretext of some kind. What seems certain is that it is past time to get ready for a difficult period. This could be the big, slow squeeze and the long winter.
The economy became immune to stimulus and quantitative easing; the market can only be propped up so long, and the realities of raised interest rates a matter of timing for the Fed to decide. Now, President-elect Trump provides the catalyst necessary for a dramatic rise and fall in the economy.
With the force of the economic avalanche that is poised to fall upon us all, the policies and actions of President Trump will do little to stem the tide of what is already coming; for better or worse, there is little that Trump himself can do even though it may fall squarely on his administration.
There are many putting out the talking points now; the warnings are reaching a crescendo.
Jay L. Zagorsky, Economist and Research Scientist at Ohio State University, is predicting a recession for 2017, in spite of glowing outlooks, that could dominate headlines:
My outlook for 2017 and beyond is that the U.S. economy will likely see another recession.
It could be a sudden trigger like the collapse of Lehman Brothers in late 2008 or just a general loss of confidence.
[…] At the end of very long expansions, banks and finance companies are willing to lend to almost anyone because they become overly optimistic. Some of this willingness to lend carelessly is currently seen in U.S. car loans.
[…] like a game of musical chairs [….] suddenly “the euphoria becomes a panic, the boom becomes a slump.”
Recession, of course, is a euphemism for something much more far reaching… yet the sense of true panic is there. This could be bad.
Regardless, people across the spectrum are warning about the financial blowback that is likely headed our way. Many prominent economists are currently signalling either slow growth, or the onset of a crisis that no Trump could contend with, as RT notes:
Many of the experts said the global trade slowdown, seen during the slight recovery from the financial crisis that started nearly a decade ago, could worsen.
Emerging economies are expected to remain vulnerable… accelerating inflation and a soaring US dollar among the risks to the economic balance.
Dollar strength, weakening other currencies, will influence how emerging markets manage relatively higher inflation, as well as falling business confidence, they said.
“Mr. Trump and his team have promised growth of 3.5 to 4 percent or more, which we see as ‘magical thinking’ unless accompanied by accelerated productivity growth,” said Michael Carey, US economist at CA-CIB.
If these guys are right, the Trump Administration promises of boosting the economy could end up a no go, nothing more than “magical thinking” and an overly-optimistic sales pitch.
Hopefully they are wrong.
Mike Adams emphasized the gravity of this massive monetary shift – it will rock global events, and likely overshadow almost anything else taking place during 2017 and the years that follow it:
The only prediction that really matters for 2017: The global debt collapse begins, followed by the rise of fascist, totalitarian government
At first, I thought about putting together a list of 25 bold predictions for 2017, but in the end I realized only one prediction really matters. It makes everything else almost irrelevant.
The era of cheap money and free debt is going to come to a catastrophic end
To understand the implications of this one prediction, you need to grasp the reality that we are approaching the end of the era of cheap money, endless debt and fiat currency money creation.
[…] For decades, presidents and central bankers kicked the can down the road, printed new fiat currency and spent the nation into financial oblivion. President Obama, America’s first Muslim President, doubled the federal debt in just eight years…
Now, with Trump getting sworn into office on January 20, 2017, the globalists no longer want to prevent the debt collapse from taking place.
The timing of all this is during Trump’s first four years. The plans will be set into motion in early 2017, and the mechanisms for engineering a crash will be initiated almost immediately after Trump’s inauguration. The effects of those actions, however, will take time […] no one can accurately predict the timing of when those actions will release the avalanche of global debt collapse. […] but what we do know is that once the avalanche begins, it will be unstoppable until it hits bottom.
As the debt collapse unfolds, we’re going to see the freezing of banking transactions, government payments and food stamp debit cards. The stock market will collapse (or be frozen), pensions will collapse, many banks will implode, the FDIC will go bankrupt, real estate will collapse, international banks will save themselves with “bail ins” and so on. It’s going to be financial Armageddon on a scale no living person has ever witnessed before.
Once that happens, there will be a backlash from the federal government and the emergency infrastructure that could swiftly implement a police state, tight cash and monetary controls, violence, looting and unrest in the streets and short supplies everywhere.
If the crisis is widespread enough, almost any level of draconian measures could be justified.
With nearly 50 million people dependent on food stamps in this country, no job growth, stagnant wages and a hungry, desperate and idle population drowning in debt, there will indeed by unrest as no one in this country has ever seen it.
If they are fueling the fire so that it burns with spectacular destruction, it may be wise to get as far back and away as possible.
What 12 Financial Experts Predict for the Economy in 2017…It’s Ugly
Jan 4, 2017 by Daisy Luther
What lies ahead for the economy this year? Will the economy finally collapse as predicted by many or will the early positive signs in stock markets around the world continue and the global economy will flourish?
I’ve taken a lot of heat for being “gloomy” and for “fear-mongering” lately when I’ve said that President-Elect Trump is inheriting a mess of epic proportions and that we may still be in for a rough financial ride. While I do think that Trump is a far better choice than Hillary Clinton ever could have been, when a situation has been declining as long as ours has, it would take an absolute miracle to turn it around without some pain.
And it turns out, I’m not alone in my concern about the worst for our economic situation during the upcoming year.
Here’s what 12 prominent financial experts are predicting.
Lawrence Yun is the chief economist at The National Association of Realtors® (NAR).
“The budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election. Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract.” (source)
Gerald Celente is a trends forecaster who has a long history of accuracy. You can find his work at TrendsResearch.com. He predicts:
“We’re forecasting the economy is not going to rebound with the economic proposals that are in place now. . . . The global situation has created an environment for financial panic. The financial panic conditions have been in place for quite a while. What Trump’s victory has done is played it off for a little bit possibly, but on the negative side, you still have the debt and interest rates going up and the debt that has to be paid. On gold, we believe right now is near its bottom.” (source)
James Dale Davidson. He’s the economist who correctly predicted the collapse of 1999 and 2007.
“There are three key economic indicators screaming SELL. They don’t imply that a 50% collapse is looming – it’s already at our doorstep.” (source)
Marc Faber is an investment advisor and fund manager. He is the publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd. Last month, he wrote:
“2017 will be [when] the US Economic causes a World Economic Collapse! Trump can’t stop a dollar crisis, stock mark crash or gold and silver prices skyrocketing! “. (source)
Faber was also quoted in an article on The Sovereign Investor:
Mark Faber, Dr. Doom himself, recently told CNBC that “investors are on the Titanic” and stocks are about to “endure a gut-wrenching drop that would rival the greatest crashes in stock market history.” (source)
Harry Dent, Harvard economist, predicts the safe-haven of gold will be wiped out during 2017. From a conversation with Economy and Markets:
“While many economists will argue that gold is not in a bubble… and insist it will soar to $2,000, $5,000 and even $10,000, my research has said otherwise…I’ve never been more certain of anything in over 30 years of economic forecasting.”
Incidentally, here is his latest report.
Ann Rutledge is a fixed income analyst who is a regular writer for Forbes. She analyses economic patterns and feels the slide has been underway since 2013. Last year, she wrote:
“So, if you ask me whether we are going to have another global financial crisis in 2017…I would say the odds are good. This one probably started in 2013 and by now is well under way.” (source)
Peter Costa, president of Empire Executions, has taken the unprecedented step of pulling out of the markets ,believing that they are overpriced and that a major correction is on the way. In an interview, he said:
“I think that a lot of these stocks, big cap, small cap, they all got ahead of themselves. And I think that there will be a correction to bring them back to some sort of normalization in pricing and once it gets back there, I’ll be back in the market.” (source)
Chris Martenson, an economic researcher, wrote:
“GDP growth is very unlikely to support the rate of credit expansion that the Federal Reserve wants (or, more accurately, needs). And what will happen if it indeed doesn’t? A lot of painful, awful things – but central among them is a currency crisis.
Amidst the ensuing unpleasantness will be an awakening within today’s hyper-financialized markets to the huge imbalance now existing between paper claims and ownership of real things. A massive wealth transfer from those with ‘paper wealth’ (stocks, bonds, dollars) to those owning tangible assets (the productive value of which can’t easily be inflated away) will occur – and quickly, too.” (source)
Michael Covel, a teacher of trend-following and financial strategy ,thinks the collapse will start in Europe and then spread to the rest of the world. He explains why in great detail, calling it chillingly “the next Lehman moment.”
“Deutsche Bank has startling leverage of 40 times. Leverage is the proportion of debts that a bank has compared with its equity/capital. That means Deutsche has 40 times more debt than equity/capital. Keep in mind that Lehman Bros. was only 31 times leveraged when it imploded in 2008 and sparked the worst global financial crisis since the Great Depression…France’s clear discontent with the EU can’t be overstated. The EU might survive Brexit. But a French divorce from the EU would be cataclysmic, both financially and politically. It would mark the official end of the EU.
…Bank runs would spread as consumers sought the safety of cash well before the actual earth-shattering event took place. It would start in French banks… and the knock-on effects would spread to other European banks that have relationships with French banks. This would create a huge decline in confidence, leading to a European-wide decline in bank lending.
And these bank runs would spread into a more widespread financial crisis in the global financial sector. Non-eurozone financial institutions in the U.S. and Asia would come under immense pressure because they too have heavy exposure to European banks. (source)
Alessandro Lombardi, a former global investment banking analyst wrote:
“Emerging markets are the soft underbelly of the global economy. Many analysts expect the election of Donald Trump to the White House will change the United States’ economic and monetary policies. This could worsen conditions for businesses in emerging markets that are financed in U.S. dollars. The result might be a global economic collapse in 2017.” (source)
Jim Rogers, who founded the Quantum Fund with George Soros, is on the record as saying:
“A $68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans.” (source)
Andrew Smithers, an economist with an unsettling history of being prophetic, was quoted in the same article.
“U.S. stocks are now about 80% overvalued.” Smithers backs up his prediction using a ratio which proves that the only time in history stocks were this risky was 1929 and 1999. And we all know what happened next. Stocks fell by 89% and 50%, respectively. (source)
What do you think?
Personally, I’m prepping harder than ever before. I’ve spent too much time researching the collapse of Venezuela to sit idly by and let my family face the same hunger and desperation that is rampant there.
Right now, a few rocks are falling, warning of an imminent disaster. If you aren’t prepped, you still have time. Go here to learn more. If you wait until the avalanche begins, it will be unstoppable. You will have waited too long.
My suggestions are:
- Reduce your expenses to the bone. The less monthly overhead you have, the longer you can live on your savings.
- Start building an emergency fund. The rainy day may be here sooner than you think.
- Stockpile food, OTC medications, and other necessities. (Sign up here to get a free report on what they ran out of first in Venezuela. You can use this to build a collapse-proof shopping list.)
- Get prepared to protect your family. When the economy declines, crime increases.
We’ve been in a decline for years. Our national debt has reached monstrous proportions. Even if Trump is able to pull off a miracle and turn things around, there will have to be drastic cuts for this to happen. Painful ones. People will suffer.
And I’ll do everything I can to protect my family before that happens.