★★Do you believe all the talk about the so-called “recovery” and that reaching “escape velocity is imminent?” We have heard the word ‘recovery’ for seven years and we have yet to reach the expansion phase. They keep talking about “escape velocity,” and we have never gotten there in seven years. The Fed raised interest rates just before Christmas. This is the first time the Fed ever raised rates right before Christmas, and they did so into a weak economy where credit is already tight. The only previous time they did that was back in 1937 that led to the recession of 1937-1938.
The market tumble we already saw this year could be just a warning. Several noted economists and distinguished investors are warning of a stock market crash.
Billionaire Carl Icahn, for example, recently raised a red flag on a national broadcast when he declared, “The public is walking into a trap again as they did in 2007.”
And the prophetic economist Andrew Smithers warns, “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.
Even the Royal Bank of Scotland says the markets are flashing stress alerts akin to the 2008 crisis. They told their clients to “Sell Everything” because “in a crowded hall, the exit doors are small.”
If we do see closure of the system it could be like a hurricane when Walmart shelves will be cleared out in a couple of days. This is not going to be something that will last a few days and be done and gone. . . This is going to take a fair amount of time to clean up. . . . If you live in the cities, well, good luck. It’s going to be complete mayhem. The background behind it is too much debt in a fraudulent system that’s poised to collapse. I think the people have become complacent because the stock market seems to be so strong. Remember, our government has been printing money as though it was growing on trees and loaning money to Wall Street almost interest free. Still, there are so many banks that the big fear in Washington is that they all could collapse. You know that banks now charge fees for everything and most have stopped giving you interest on your money in checking accounts. You get almost nothing for your money in CDs and savings accounts. Who do you think the politicians work for, you or big banks?
The big boys have even figured out a way to keep gold prices down. Maybe I can simplify it, if someone counterfeited a billion shares of Apple stock and sold it into the market, do you think the stock would go down? That is exactly what they have done with gold — counterfeited gold with paper. The paper gold traded on the stock market is just that, paper.
The bond market is full of debt that will never be paid back. It’s one of the biggest frauds of all. Somewhere in the mid to late 1990’s was the point of no return. We didn’t really have any hope of paying it back. In 2008, it was ridiculous, and at this point, it is beyond ridiculous. They can’t pay back the $19 trillion much less the $205 trillion, which is what the real number is when you include Social Security, Fannie Mae, Freddie Mac, Medicare, loan guarantees, pensions and other unfunded obligations.
If you are worried about being offended by something some politician says, maybe you should do some research on your own? You won’t have to look far to find something that will cause you to have nightmares!
I’m not an expert; I’m just an old retired fighter pilot continuing to fight for my country. I do pay attention and I hope you do too.