• Same story, different day...........year ie more of the same fiat floods the world
  • There are no markets
  • "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"

You're Just Not Prepared For What’s Coming

Goldhedge

Moderator
Site Mgr
Sr Site Supporter
Joined
Mar 28, 2010
Messages
31,503
Likes
39,875
Location
Rocky Mountains
#1
You're Just Not Prepared For What’s Coming

Not even close
by Chris Martenson
Friday, December 1, 2017, 11:57 PM

I hate to break it to you, but chances are you're just not prepared for what’s coming. Not even close.

Don't take it personally. I'm simply playing the odds.

After spending more than a decade warning people all over the world about the futility of pursuing infinite exponential economic growth on a finite planet, I can tell you this: very few are even aware of the nature of our predicament.

An even smaller subset is either physically or financially ready for the sort of future barreling down on us. Even fewer are mentally prepared for it.

And make no mistake: it's the mental and emotional preparation that matters the most. If you can't cope with adversity and uncertainty, you're going to be toast in the coming years.

Those of us intending to persevere need to start by looking unflinchingly at the data, and then allowing time to let it sink in. Change is coming – which isn't a problem in and of itself. But it's pace is likely to be. Rapid change is difficult for humans to process.

Those frightened by today's over-inflated asset prices fear how quickly the current bubbles throughout our financial markets will deflate/implode. Who knows when they'll pop? What will the eventual trigger(s) be? All we know for sure is that every bubble in history inevitably found its pin.

These bubbles – blown by central bankers serially addicted to creating them (and then riding to the rescue to fix them) – are the largest in all of history. That means they're going to be the most destructive in history when they finally let go.

Millions of households will lose trillions of dollars in net worth. Jobs will evaporate, causing the tens of millions of families living paycheck to paycheck serious harm.

These are the kind of painful consequences central bank follies result in. They're particularly regrettable because they could have been completely avoided if only we’d taken our medicine during the last crisis back in 2008. But we didn't. We let the Federal Reserve --the instiution largely responsible for creating the Great Financial Crisis -- conspire with its brethern central banks to 'paper over' our problems.

So now we are at the apex of the most incredible nest of financial bubbles in all of human history.

One of my favorite charts is below, which shows that even the smartest minds among us (Sir Isaac Newton, in this case) can succumb to the mania of a bubble:



It's enormously difficult to resist the social pressure to become involved.

But all bubbles burst -- painfully of course. That’s their very nature.

Mathematically, it's impossible for half or more of a bubble's participants to close out their positions for a gain. But in reality, it's even worse. Being generous, maybe 10% manage to get out in time.

That means the remaining 90% don’t. For these bagholders, the losses will range from 'painful' to 'financially fatal'.

Which brings us to the conclusion that a similar proportion of people will be emotionally unprepared for the bursting of these bubbles. Again, playing the odds, I'm talking about you.

How Exponentials Work Against You
Bubbles are destructive in the same manner as ocean waves. Their force is not linear, but exponential.

That means that a wave's energy increases as the square of its height. A 4-foot wave has 16 times the force of a 1-foot wave; something any surfer knows from experience. A 1-foot wave will nudge you. A 4-foot wave will smash you, filling your bathing suit and various body orifices with sand and shells. A 10-foot wave has 100 times more destructive power. It can kill you if it manages to pin you against something solid.

A small, localized bubble -- such as one only affecting tulip investors in Holland, or a relatively small number of speculators caught up in buying swampland in Florida -- will have a small impact. Consider those 1-foot waves.

A larger bubble inflating an entire nation’s real estate market will be far more destructive. Like the US in 2007. Or like Australia and Canada today. Those bubbles were (or will be when they burst) 4-foot waves.

The current nest of global bubbles in nearly every financial asset (stocks, bonds, real estate, fine art, collectibles, etc) is entirely without precedent. How big are these in wave terms? Are they a series of 8-foot waves? Or more like 12-footers?

At this magnitude level, it doesn't really matter. They're going to be very, very destructive when they break.

Our focus now needs to be figuring out how to avoid getting pinned to the coral reef below when they do.

Understanding 'Real' Wealth
In order to fully understand this story, we have to start right at the beginning and ask “What is wealth?”

Most would answer this by saying “money”, and then maybe add “stocks and bonds”. But those aren't actually wealth.

All financial assets are just claims on real wealth, not actually wealth itself. A pile of money has use and utility because you can buy stuff with it. But real wealth is the "stuff" -- food, clothes, land, oil, and so forth. If you couldn't buy anything with your money/stocks/bonds, their worth would revert to the value of the paper they're printed on (if you're lucky enough to hold an actual certificate). It’s that simple.

Which means that keeping a tight relationship between 'real wealth' and the claims on it should be job #1 of any central bank. But not the Fed, apparently. It's has increased the number of claims by a mind-boggling amount over the past several years. Same with the BoJ, the ECB, and the other major central banks around the world. They've embarked on a very different course, one that has disrupted the long-standing relationship between the markers of wealth and real wealth itself.

They are aided and abetted by both the media and our educational institutions, which reinforce the idea that the claims on wealth are the same as real wealth itself. It’s a handy system, of course, as long as everyone believes it. It has proved a great system for keeping the poor people poor and the rich people rich.

But trouble begins when the system gets seriously out of whack. People begin to question why their money has any value at all if the central banks can just print up as much as they want. Any time they want. And hand it out for free in unlimited quantities to the banks. Who have their own mechanism (i.e., fractional reserve banking) for creating even more money out of thin air.

Pretty slick, right? Convince everyone that something you literally make in unlimited quantities out of thin air has value. So much so that, if you lack it, you end up living under a bridge, starving.

Let's express this visually.

“GDP” is a measure of the amount of goods and services available and financial asset prices represent the claims (it's not a very accurate measure of real wealth, but it's the best one we’ve got, so we’ll use it). Look at how divergent asset prices get from GDP as bubbles develop:



(Source)

What we see in the above chart is that the claims on the economy should, quite intuitively, track the economy itself. Bubbles occurred whenever the claims on the economy, the so-called financial assets (stocks, bonds and derivatives), get too far ahead of the economy itself.

This is a very important point. The claims on the economy are just that: claims. They are not the economy itself!

Yes the Dot-Com crash hurt. But that was the equivalent of a 1-foot wave. Yes, the housing bubble hurt, and that was a 2-foot wave. The current bubble is vastly larger than the prior two, and is the 4-foot wave in our analogy -- if we’re lucky. It might turn out to be a 10-footer.

The mystery to me is how people have forgotten the lessons of prior bubbles so rapidly. How they cannot see the current bubbles even as the data is right there, and so easy to come by. I suppose the mania of a bubble, the 'high' of easy returns, just makes people blind to reality.

It used to take a generation or longer to forget the painful lessons of a bubble. The victims had to age and die off before a future generation could repeat the mistakes anew.

But now, we have the same generation repeating the same mistakes three times in less than 20 years. Go figure.

In this story, wishful thinking and self-delusion have harmful consequences. It's no different than taking up a lifelong habit of chain-smoking as a young teen. Sure, you may be one of the few who lives a long full life in spite of the risks, but the odds are definitely not in your favor.

The inevitable destruction caused by the current froth of bubbles is going to hurt a lot of people, institutions, pensions, industries and countries. Nobody will be spared when these burst. The only question left to be answered is: Who’s going to eat the losses?

This is not a future question for a future time; it's one that's being answered daily already. Pensioners are already taking cuts. Puerto Rico will not be fully rebuilt. Shale wells drilled when oil was $100/barrel, but being drained empty at $50/barrel, represent capital already hopelessly betrayed. Young graduates with $100,000 of student debt face lost decades of capital building. The losers are already emerging.

And there’s many more to follow. This story is much closer to the beginning than the end.

The bubbles have yet to burst. We’re just seeing the water at the shore’s edge beginning to retreat, wondering how large the wave will be when it arrives. Hoping that it’s not a monster tsunami.

The End Is Nigh
History's largest bubbles have had the exact same root cause: an expansion of credit that causes leverage to go up faster than the income available to service it.

Simply put: bubbles exist when asset price inflation rises beyond what incomes can sustain. They are everywhere and always a credit-fueled phenomenon.



(Source @hussmanjp )

Look at the ridiculous trajectory of the S&P 500, especially since Trump got elected. I don’t know about you, but pretty much everything that has happened in the US over the past year has been either a diplomatic clown show or a financial cruelty to the average citizen. And yet prices have risen at their highest pace in two decades?

My view is that the Trump election was a totally unexpected black swan shock for the global central banking cartel, and it freaked out. With the Dow down -1,000 points in the late night hours following Trump's surprise win, the central banks dumped gobs and oodles of money into the equity markets to prevent carnage.

All that money calmed investors and sent prices roaring higher over the following months. The resulting 80-degree rocket launch will hurt a lot when it comes back to earth. Good going central banks!

This is all happening when we’re as close as ever to a military (if not nuclear) confrontation with North Korea, Russia is busy beefing up its war machine, Saudi Arabia has pivoted away from the US towards China and Russia, and most of our European allies are inching away from us.

Meanwhile, the FCC is about to rule against the vast majority of the public and allow US corporations to turn the internet into a pay-for-play toll road -- completely undermining the core principle of the most transformative and useful invention of the millennium. By eliminating net neutrality the FCC has ruled 'against' you, and 'for' the continued usurious profits of the cable companies.

Worse, heath care premiums continue to increase by double-digits each year. They're going up by a horrifying 45% in Florida and 57% in Georgia, to name just two unfortunate states out of many.

And to really rub salt in the wounds of the nation, the DC swamp is busy passing a tax change that will further drive an enormous gap between the 0.1% and everybody else by lowering taxes on corporate profits (already the lowest in the world if you measure both tax on profits and value-added taxes).

How to pay for the massive cost of this deficit-exploding bill? Easy, just eliminate deductions for average people (such as the state and local tax deductions) and begin taxing the waived tuition of graduate students. That’s right, the government helped to massively bloat tuition fees via massive lending to students and then wants to squeeze the poorest and hardest-working among them.

I wish I were kidding here. But like a cruel joke re-told at the wrong moment, the GOP is busy destroying the meager and precarious financial situation of our citizens just so it can toss a few more dollars into the already-bloated wallets of the richest people in the country.

The long rise of the ultra-wealthy is not some mystery. It arose as a predictable consequence of the financialization of, well…everything that began in the 1980’s:



The above chart speaks to a deeply unfair system that punishes hard working people in order to give more to those who merely shuffle financial instruments around or own financial assets.

This is the system that the Fed is working so hard to preserve. This is the system that Washington DC is working so hard to sustain.

It’s flat out unfair and punitive. It both punishes and rewards the wrong folks, respectively. Debtors are provided relief while savers are punished. The young are saddled with debts and face impossible costs of living mainly to preserve the illusion of wealth for a little longer for the generation in front of them.

For so many reasons, folks, none of this is sustainable. If the system doesn't crash first under the weight of its excessive debts or the puncturing of its many asset price bubbles, the brewing class and generational wars will boil over if the status quo trajectory continues for much longer.

In Part 2: When The Bubbles Burst... we detail what to expect as the unraveling starts. When these bubbles burst, as they inevitably must, the aftermath is going to be especially ugly.

Understand the likely path the carnage is going to take and position yourself wisely ahead of the crisis -- so that you and those you care about can weather the turmoil as safely as possible.

Remember: the role of bubble markets is to injure as many people as badly as possible when they burst. Don't be one of the victims.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)


https://www.peakprosperity.com/blog...coming?utm_source=dlvr.it&utm_medium=facebook
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#2
These bubbles – blown by central bankers serially addicted to creating them (and then riding to the rescue to fix them) – are the largest in all of history. That means they're going to be the most destructive in history when they finally let go.
I have been through so many of these cycles that I am getting suspicious of the doom & gloomers, like this guy. Sure we are being milked by the banksters, but, they are smart enough not to kill the goose that lays the proverbial golden egg.

We, as the working class, are vital to the life styles of these elitists. We are necessary to provide their food, water, clothing, transportation, medicine,.....etc. Without us, they too will suffer, greatly AND they will not bring that upon themselves.

We, however, must be aware of the cycles & be prepared to cope with them as best we can.

Bottom line, we can live without them, much easier than they can live without us. For all they provide to our lives is a phony barter system (money) designed to milk us of our efforts & a political system to protect them from us !!!!!!!!!!! Just my old fart opinion !

SHAKE  DOWN.gif
 

the_shootist

Targeted!
Midas Member
Sr Site Supporter
Joined
May 31, 2015
Messages
20,901
Likes
22,574
#3
My .02

1929, 2001, 2008....Everything is great....right up until it isn't!

The safest folks in a collapse are the smart Boomers. They were brought up knowing the value of money, the value of saving and SMART investing. Set your goals, work hard, be frugal and save when and where you can. Pretty simple recipe when you have the opportunity to take advantage of it. They had the means and they had the knowledge to be more prepared than most for what's coming. No, not every Boomer was smart enough to make the best of their opportunities but many did.

Todays kids won't have chance and it's not their fault! The government and big business forced most of their opportunities (read: blue collar jobs) overseas (the Boomers didn't do that BTW) and also put the kids into a financial hole supporting crippling educational costs which produced little value from an educational perspective.

I'm off to inventory my ammo stash!
 
Last edited:

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#4
My .02

1929, 2001, 2008....Everything is great....right up until it isn't!

The safest folks in a collapse are the smart Boomers. They were brought up knowing the value of money, the value of saving and SMART investing. Set your goals, work hard, be frugal and save when and where you can. Pretty simple recipe when you have the opportunity to take advantage of it. They had the means and they had the knowledge to be more prepared than most for what's coming. No, not every Boomer was smart enough to make the best of their opportunities but many did. Todays kids won't have chance. The government and big business forced most of thier opportunities (read: blue collar jobs) overseas (the Boomers didn't do that BTW)and also put the kids into a financial hole supporting crippling educational costs which produced little value from an educational perspective.

I'm off to inventory my ammo stash!
Spot on & remember, money is only "work credits". Do you want to piss away your efforts, "work credits", or save them for a rainy day ?
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#7
All bubbles burst. The question always is when. Timing is everything.
Timing & preparation are everything. but it is a resilient bubble, like that plastic bubble stuff we had as kids, in the 1950"s, therefore they do not totally collapse.
I'm not diminishing the pain of a depression, just trying to show that it is not the end all, be all. Most of us can & will survive it, we have in the past, but we were a stronger people back then !!!
I'll say it again "don't piss away your work credits, save them for a rainy day".
 

Buck

Gold Member
Gold Chaser
Joined
Apr 13, 2011
Messages
3,400
Likes
2,922
#8
I have been through so many of these cycles that I am getting suspicious of the doom & gloomers, like this guy. Sure we are being milked by the banksters, but, they are smart enough not to kill the goose that lays the proverbial golden egg.

We, as the working class, are vital to the life styles of these elitists. We are necessary to provide their food, water, clothing, transportation, medicine,.....etc. Without us, they too will suffer, greatly AND they will not bring that upon themselves.

We, however, must be aware of the cycles & be prepared to cope with them as best we can.

Bottom line, we can live without them, much easier than they can live without us. For all they provide to our lives is a phony barter system (money) designed to milk us of our efforts & a political system to protect them from us !!!!!!!!!!! Just my old fart opinion !
Although your POV is understandable, I'll offer up, it's not the only POV in town
It would seem the elite owners of the NFL teams have a slightly different POV, which I'll take as being representative, of many more elite corporate owners POV, about me, us, US

They don't think like "we" do, they just don't
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#9
Although your POV is understandable, I'll offer up, it's not the only POV in town
It would seem the elite owners of the NFL teams have a slightly different POV, which I'll take as being representative, of many more elite corporate owners POV, about me, us, US

They don't think like "we" do, they just don't
Fuck the nfl elitists, they are part of the problem, they will take a poor working stiff's entire week paycheck, for him & his family, to go to one of their POS events. Thus causing the poor working stiff to PISS AWAY HIS WORK CREDITS.

Buck, thanks for helping me make my point.
 

JayDubya

Platinum Bling
Platinum Bling
Joined
Apr 5, 2010
Messages
4,372
Likes
4,716
#10
It used to take a generation or longer to forget the painful lessons of a bubble. The victims had to age and die off before a future generation could repeat the mistakes anew.

But now, we have the same generation repeating the same mistakes three times in less than 20 years. Go figure.
There's a lot being said in these three sentences. Read them again and just let it sink in.
 

Krag

Planet earth
Platinum Bling
Joined
Feb 20, 2013
Messages
4,365
Likes
3,397
#12
The US would be a fool to continue the escalation with North Korea, that is one of the biggest problems.
 

Area51

Silver Miner
Seeker
Joined
Oct 23, 2012
Messages
1,089
Likes
734
#13
Americans have been brainwashed into believing the wealthy elites "earned" their riches and any talk of wealth or wage equality is immediately denounced as being evil socialism.
 

Area51

Silver Miner
Seeker
Joined
Oct 23, 2012
Messages
1,089
Likes
734
#14
The US would be a fool to continue the escalation with North Korea, that is one of the biggest problems.
WTF is a third world shithole like North Korea going to do? They've barely got electricity or running water but they're allegedly a serious threat? Mutually assured destruction means none of the big boys will ever battle each other so the US military picks dinkified little countries like this to stage their "wars".

Let's be honest - - modern day "wars" are nothing but laughable made-for-television charades designed to fill the pockets of military contractors.
 
Last edited:

Krag

Planet earth
Platinum Bling
Joined
Feb 20, 2013
Messages
4,365
Likes
3,397
#16
Americans have been brainwashed into believing the wealthy elites "earned" their riches and any talk of wealth or wage equality is immediately denounced as being evil socialism.
The USA is done in terms of reasonable checks and balances and representative government. No sane economist or policy expert believes in trickle down. At some point when the stock market inevitably collapses it will be open season on the plutocrats who have shamelessly robbed us blind! They don't give a crap about anyone except themselves and their immediate circle. They will be enjoying their "prosperity" expanding their genes through their kids, they would just as soon the underclass and "losers" jerk off to porn ruining their own futures with zero opportunity, filing for "disability" though the lack of work and hope are the core reason for that bogus filing.

These people are like vampires, I've seen them all my life chiseling you for every buck as you try to work your job. The plutocrats are the enemy and their lackys. They will be throwing Trump under the bus, as Pence is slick, can be handled to do their dirty work.
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#17
No sane economist or policy expert believes in trickle down.
Yup, anyone with 1/2 a brain knows it's trickle UP & it's more than a trickle !!!! Can you hear that sucking sound ??
 

Joseph

Gold Member
Gold Chaser
Site Supporter ++
Joined
Jul 27, 2011
Messages
3,122
Likes
4,713
Location
south east
#18
="Krag, post: 1286475, member: 14542"]The US would be a fool to continue the escalation with North Korea, that is one of the biggest problems.
="Area51 "
WTF is a third world shithole like North Korea going to do? They've barely got electricity or running water but they're allegedly a serious threat? Mutually assured destruction means none of the big boys will ever battle each other so the US military picks dinkified little countries like this to stage their "wars".
We are, and have always been, "The Empire"





The U.S. Has Only Been At Peace For 21 Years Total Since Its Birth
In 2011, Danios wrote:

Below, I have reproduced a year-by-year timeline of America’s wars, which reveals something quite interesting: since the United States was founded in 1776, she has been at war during 214 out of her 235 calendar years of existence. In other words, there were only 21 calendar years in which the U.S. did not wage any wars.

http://www.washingtonsblog.com/2015/02/america-war-93-time-222-239-years-since-1776.html
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#19
Does that qualify us for the title of "War Monger" ???

:bombing aircraft:bomb 1::Helicopter:fire:
 

Buck

Gold Member
Gold Chaser
Joined
Apr 13, 2011
Messages
3,400
Likes
2,922
#20
IDK
Seeing as how most wars, as of late, haven't been declared to be wars, do they still count?

How about all the declared wars:
Drugs, Women, Blacks, Whites, Flag, Constitution?
Do those count too?
 

southfork

Site Supporter
Site Supporter
Mother Lode
Joined
Mar 31, 2010
Messages
14,711
Likes
13,047
#21
It qualifies as war crimes, all these presidents including Trump are waging undeclared wars, all should be charged with war crimes by the Bullshit UN, all of congress and senate should be charged as accomplices for allowing and funding these illegal war actions. And sooner or later the chickens will come home to roost, how long do you think these sovereign nations will tolerate this illegal act before they join forces for some payback.

Does that qualify us for the title of "War Monger" ???

:bombing aircraft:bomb 1::Helicopter:fire:
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#22
And sooner or later the chickens will come home to roost, how long do you think these sovereign nations will tolerate this illegal act before they join forces for some payback.
The chickens will remain chicken, as long as we can rattle big sabers !!!
AND I am certainly not saying that is a good thing !!
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#23
IDK
Seeing as how most wars, as of late, haven't been declared to be wars, do they still count?

How about all the declared wars:
Drugs, Women, Blacks, Whites, Flag, Constitution?
Do those count too?
Buck, I'm glad you brought that up.
For one:
The war on drugs, what fucking misnomer !
There were NO DRUGS when I was a kid, well, very little drugs. Then came the war on drugs AND the availability of drugs.
Then came the militarized police, followed by stuffing drugs into the body bags of our dead soldiers (thank you CIA), followed by no knock door busting, followed by strip search, followed by tearing apart you car on a traffic stop, followed by unconstitutional "field warrants". Then the granddaddy, asset forfeiture, WITHOUT A CRIME BEING CHARGED !!!!.
This was NEVER a war on drugs, this was a WAR on the people, a tax by another name.

What happened to the country I grew up in ???
Where did the country that I grew up in, go ???
I doubt that we will ever see it again.
Thank you, politics - poli=many - tics=blood sucking insects !!!
 
Last edited:

the_shootist

Targeted!
Midas Member
Sr Site Supporter
Joined
May 31, 2015
Messages
20,901
Likes
22,574
#24
I love my country! As I look back on history I'll always hate my government for what it did and for not doing what it could have done! So much destruction...so much lost....so much we could have accomplished!

Satan is not an entity. Satan is the evil in the human heart!
 

Joseph

Gold Member
Gold Chaser
Site Supporter ++
Joined
Jul 27, 2011
Messages
3,122
Likes
4,713
Location
south east
#25
It qualifies as war crimes, all these presidents including Trump are waging undeclared wars, all should be charged with war crimes by the Bullshit UN, all of congress and senate should be charged as accomplices for allowing and funding these illegal war actions. And sooner or later the chickens will come home to roost, how long do you think these sovereign nations will tolerate this illegal act before they join forces for some payback.
perpetual.war.jpg

They've been tolerating it for over 200 years ... and there's nothing to indicate that anything will change in the near future ... or the distant future, for that matter.

The entire world is nothing more than a glorified mafia. There are the many capos and their regimes, and then there's the capo di tutti capi (e.g.: the USSA).
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#26
I love my country! As I look back on history I'll always hate my government for what it did and for not doing what it could have done! So much destruction...so much lost....so much we could have accomplished!

Satan is not an entity. Satan is the evil in the human heart!
I love my country BUT I fear my government. Hmmmmm, where have I heard that before ?
 

the_shootist

Targeted!
Midas Member
Sr Site Supporter
Joined
May 31, 2015
Messages
20,901
Likes
22,574
#27
Things will be changing very soon. I hope we can get through the holidays before the event that will change everything becomes reality!
 

Usury

Platinum Bling
Platinum Bling
Joined
Apr 1, 2010
Messages
4,146
Likes
3,312
#28
Reading the OP, Chris sounds like a whiney-ass libtard....just sayin.
 

Irons

Deep Sixed
Mother Lode
Site Supporter ++
Joined
Mar 30, 2010
Messages
25,759
Likes
39,110
#29
It has to be true. He has charts!

charts.jpg
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Sr Site Supporter
Joined
Apr 2, 2010
Messages
12,251
Likes
19,955
Location
ORYGUN
#31
I never said fear, I said hate!
Naw, naw, naw, shootist, I was wondering who had said that in the past, someone famous, I think.

Btw, just to put the record straight, I hate them, because I fear them !!!!!!!!!!!!!!!!!!!!!!!!!!!!!
 

Thecrensh

Gold Member
Gold Chaser
Joined
Jun 26, 2013
Messages
4,266
Likes
4,734
#32
You're Just Not Prepared For What’s Coming

Not even close
by Chris Martenson
Friday, December 1, 2017, 11:57 PM

I hate to break it to you, but chances are you're just not prepared for what’s coming. Not even close.

Don't take it personally. I'm simply playing the odds.

After spending more than a decade warning people all over the world about the futility of pursuing infinite exponential economic growth on a finite planet, I can tell you this: very few are even aware of the nature of our predicament.

An even smaller subset is either physically or financially ready for the sort of future barreling down on us. Even fewer are mentally prepared for it.

And make no mistake: it's the mental and emotional preparation that matters the most. If you can't cope with adversity and uncertainty, you're going to be toast in the coming years.

Those of us intending to persevere need to start by looking unflinchingly at the data, and then allowing time to let it sink in. Change is coming – which isn't a problem in and of itself. But it's pace is likely to be. Rapid change is difficult for humans to process.

Those frightened by today's over-inflated asset prices fear how quickly the current bubbles throughout our financial markets will deflate/implode. Who knows when they'll pop? What will the eventual trigger(s) be? All we know for sure is that every bubble in history inevitably found its pin.

These bubbles – blown by central bankers serially addicted to creating them (and then riding to the rescue to fix them) – are the largest in all of history. That means they're going to be the most destructive in history when they finally let go.

Millions of households will lose trillions of dollars in net worth. Jobs will evaporate, causing the tens of millions of families living paycheck to paycheck serious harm.

These are the kind of painful consequences central bank follies result in. They're particularly regrettable because they could have been completely avoided if only we’d taken our medicine during the last crisis back in 2008. But we didn't. We let the Federal Reserve --the instiution largely responsible for creating the Great Financial Crisis -- conspire with its brethern central banks to 'paper over' our problems.

So now we are at the apex of the most incredible nest of financial bubbles in all of human history.

One of my favorite charts is below, which shows that even the smartest minds among us (Sir Isaac Newton, in this case) can succumb to the mania of a bubble:



It's enormously difficult to resist the social pressure to become involved.

But all bubbles burst -- painfully of course. That’s their very nature.

Mathematically, it's impossible for half or more of a bubble's participants to close out their positions for a gain. But in reality, it's even worse. Being generous, maybe 10% manage to get out in time.

That means the remaining 90% don’t. For these bagholders, the losses will range from 'painful' to 'financially fatal'.

Which brings us to the conclusion that a similar proportion of people will be emotionally unprepared for the bursting of these bubbles. Again, playing the odds, I'm talking about you.

How Exponentials Work Against You
Bubbles are destructive in the same manner as ocean waves. Their force is not linear, but exponential.

That means that a wave's energy increases as the square of its height. A 4-foot wave has 16 times the force of a 1-foot wave; something any surfer knows from experience. A 1-foot wave will nudge you. A 4-foot wave will smash you, filling your bathing suit and various body orifices with sand and shells. A 10-foot wave has 100 times more destructive power. It can kill you if it manages to pin you against something solid.

A small, localized bubble -- such as one only affecting tulip investors in Holland, or a relatively small number of speculators caught up in buying swampland in Florida -- will have a small impact. Consider those 1-foot waves.

A larger bubble inflating an entire nation’s real estate market will be far more destructive. Like the US in 2007. Or like Australia and Canada today. Those bubbles were (or will be when they burst) 4-foot waves.

The current nest of global bubbles in nearly every financial asset (stocks, bonds, real estate, fine art, collectibles, etc) is entirely without precedent. How big are these in wave terms? Are they a series of 8-foot waves? Or more like 12-footers?

At this magnitude level, it doesn't really matter. They're going to be very, very destructive when they break.

Our focus now needs to be figuring out how to avoid getting pinned to the coral reef below when they do.

Understanding 'Real' Wealth
In order to fully understand this story, we have to start right at the beginning and ask “What is wealth?”

Most would answer this by saying “money”, and then maybe add “stocks and bonds”. But those aren't actually wealth.

All financial assets are just claims on real wealth, not actually wealth itself. A pile of money has use and utility because you can buy stuff with it. But real wealth is the "stuff" -- food, clothes, land, oil, and so forth. If you couldn't buy anything with your money/stocks/bonds, their worth would revert to the value of the paper they're printed on (if you're lucky enough to hold an actual certificate). It’s that simple.

Which means that keeping a tight relationship between 'real wealth' and the claims on it should be job #1 of any central bank. But not the Fed, apparently. It's has increased the number of claims by a mind-boggling amount over the past several years. Same with the BoJ, the ECB, and the other major central banks around the world. They've embarked on a very different course, one that has disrupted the long-standing relationship between the markers of wealth and real wealth itself.

They are aided and abetted by both the media and our educational institutions, which reinforce the idea that the claims on wealth are the same as real wealth itself. It’s a handy system, of course, as long as everyone believes it. It has proved a great system for keeping the poor people poor and the rich people rich.

But trouble begins when the system gets seriously out of whack. People begin to question why their money has any value at all if the central banks can just print up as much as they want. Any time they want. And hand it out for free in unlimited quantities to the banks. Who have their own mechanism (i.e., fractional reserve banking) for creating even more money out of thin air.

Pretty slick, right? Convince everyone that something you literally make in unlimited quantities out of thin air has value. So much so that, if you lack it, you end up living under a bridge, starving.

Let's express this visually.

“GDP” is a measure of the amount of goods and services available and financial asset prices represent the claims (it's not a very accurate measure of real wealth, but it's the best one we’ve got, so we’ll use it). Look at how divergent asset prices get from GDP as bubbles develop:



(Source)

What we see in the above chart is that the claims on the economy should, quite intuitively, track the economy itself. Bubbles occurred whenever the claims on the economy, the so-called financial assets (stocks, bonds and derivatives), get too far ahead of the economy itself.

This is a very important point. The claims on the economy are just that: claims. They are not the economy itself!

Yes the Dot-Com crash hurt. But that was the equivalent of a 1-foot wave. Yes, the housing bubble hurt, and that was a 2-foot wave. The current bubble is vastly larger than the prior two, and is the 4-foot wave in our analogy -- if we’re lucky. It might turn out to be a 10-footer.

The mystery to me is how people have forgotten the lessons of prior bubbles so rapidly. How they cannot see the current bubbles even as the data is right there, and so easy to come by. I suppose the mania of a bubble, the 'high' of easy returns, just makes people blind to reality.

It used to take a generation or longer to forget the painful lessons of a bubble. The victims had to age and die off before a future generation could repeat the mistakes anew.

But now, we have the same generation repeating the same mistakes three times in less than 20 years. Go figure.

In this story, wishful thinking and self-delusion have harmful consequences. It's no different than taking up a lifelong habit of chain-smoking as a young teen. Sure, you may be one of the few who lives a long full life in spite of the risks, but the odds are definitely not in your favor.

The inevitable destruction caused by the current froth of bubbles is going to hurt a lot of people, institutions, pensions, industries and countries. Nobody will be spared when these burst. The only question left to be answered is: Who’s going to eat the losses?

This is not a future question for a future time; it's one that's being answered daily already. Pensioners are already taking cuts. Puerto Rico will not be fully rebuilt. Shale wells drilled when oil was $100/barrel, but being drained empty at $50/barrel, represent capital already hopelessly betrayed. Young graduates with $100,000 of student debt face lost decades of capital building. The losers are already emerging.

And there’s many more to follow. This story is much closer to the beginning than the end.

The bubbles have yet to burst. We’re just seeing the water at the shore’s edge beginning to retreat, wondering how large the wave will be when it arrives. Hoping that it’s not a monster tsunami.

The End Is Nigh
History's largest bubbles have had the exact same root cause: an expansion of credit that causes leverage to go up faster than the income available to service it.

Simply put: bubbles exist when asset price inflation rises beyond what incomes can sustain. They are everywhere and always a credit-fueled phenomenon.



(Source @hussmanjp )

Look at the ridiculous trajectory of the S&P 500, especially since Trump got elected. I don’t know about you, but pretty much everything that has happened in the US over the past year has been either a diplomatic clown show or a financial cruelty to the average citizen. And yet prices have risen at their highest pace in two decades?

My view is that the Trump election was a totally unexpected black swan shock for the global central banking cartel, and it freaked out. With the Dow down -1,000 points in the late night hours following Trump's surprise win, the central banks dumped gobs and oodles of money into the equity markets to prevent carnage.

All that money calmed investors and sent prices roaring higher over the following months. The resulting 80-degree rocket launch will hurt a lot when it comes back to earth. Good going central banks!

This is all happening when we’re as close as ever to a military (if not nuclear) confrontation with North Korea, Russia is busy beefing up its war machine, Saudi Arabia has pivoted away from the US towards China and Russia, and most of our European allies are inching away from us.

Meanwhile, the FCC is about to rule against the vast majority of the public and allow US corporations to turn the internet into a pay-for-play toll road -- completely undermining the core principle of the most transformative and useful invention of the millennium. By eliminating net neutrality the FCC has ruled 'against' you, and 'for' the continued usurious profits of the cable companies.

Worse, heath care premiums continue to increase by double-digits each year. They're going up by a horrifying 45% in Florida and 57% in Georgia, to name just two unfortunate states out of many.

And to really rub salt in the wounds of the nation, the DC swamp is busy passing a tax change that will further drive an enormous gap between the 0.1% and everybody else by lowering taxes on corporate profits (already the lowest in the world if you measure both tax on profits and value-added taxes).

How to pay for the massive cost of this deficit-exploding bill? Easy, just eliminate deductions for average people (such as the state and local tax deductions) and begin taxing the waived tuition of graduate students. That’s right, the government helped to massively bloat tuition fees via massive lending to students and then wants to squeeze the poorest and hardest-working among them.

I wish I were kidding here. But like a cruel joke re-told at the wrong moment, the GOP is busy destroying the meager and precarious financial situation of our citizens just so it can toss a few more dollars into the already-bloated wallets of the richest people in the country.

The long rise of the ultra-wealthy is not some mystery. It arose as a predictable consequence of the financialization of, well…everything that began in the 1980’s:



The above chart speaks to a deeply unfair system that punishes hard working people in order to give more to those who merely shuffle financial instruments around or own financial assets.

This is the system that the Fed is working so hard to preserve. This is the system that Washington DC is working so hard to sustain.

It’s flat out unfair and punitive. It both punishes and rewards the wrong folks, respectively. Debtors are provided relief while savers are punished. The young are saddled with debts and face impossible costs of living mainly to preserve the illusion of wealth for a little longer for the generation in front of them.

For so many reasons, folks, none of this is sustainable. If the system doesn't crash first under the weight of its excessive debts or the puncturing of its many asset price bubbles, the brewing class and generational wars will boil over if the status quo trajectory continues for much longer.

In Part 2: When The Bubbles Burst... we detail what to expect as the unraveling starts. When these bubbles burst, as they inevitably must, the aftermath is going to be especially ugly.

Understand the likely path the carnage is going to take and position yourself wisely ahead of the crisis -- so that you and those you care about can weather the turmoil as safely as possible.

Remember: the role of bubble markets is to injure as many people as badly as possible when they burst. Don't be one of the victims.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)


https://www.peakprosperity.com/blog...coming?utm_source=dlvr.it&utm_medium=facebook
What happened in 1977-ish that began the present upward trajectory of the Top .01%'s wealth ratio?? Looks like the bottom 90% started losing ground about 1987...didn't the Dems get back the Senate in '87?
 

the_shootist

Targeted!
Midas Member
Sr Site Supporter
Joined
May 31, 2015
Messages
20,901
Likes
22,574
#33
Naw, naw, naw, shootist, I was wondering who had said that in the past, someone famous, I think.

Btw, just to put the record straight, I hate them, because I fear them !!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Gotcha man! I just hate them too much to fear them much any more.
 

solarion

Gold Member
Gold Chaser
Site Supporter ++
Joined
Nov 25, 2013
Messages
5,050
Likes
7,614
#34
What happened in 1977-ish that began the present upward trajectory of the Top .01%'s wealth ratio?? Looks like the bottom 90% started losing ground about 1987...didn't the Dems get back the Senate in '87?
1971 and the removal of any restraints on "dollar" printing. Financialization schemes of one form or another have continuously grown as a portion of the nation's GDP. Open border policies have enabled the elite to marginalize any bargaining power of labor.

It's not a left vs right thing, both arms of the uniparty have made war on the American worker.
 

the_shootist

Targeted!
Midas Member
Sr Site Supporter
Joined
May 31, 2015
Messages
20,901
Likes
22,574
#35
1971 and the removal of any restraints on "dollar" printing. Financialization schemes of one form or another have continuously grown as a portion of the nation's GDP. Open border policies have enabled the elite to marginalize any bargaining power of labor.

It's not a left vs right thing, both arms of the uniparty have made war on the American worker.
The Jews keep the goy distracted while they direct the politicians to keep tearing apart the very fabric of America. The plan is so simple to see...just look!
 

Garyw

The Military gave me Defoliant Exposure
Silver Miner
Joined
Mar 16, 2011
Messages
1,299
Likes
1,061
Location
State of Jefferson
#38
My .02

1929, 2001, 2008....Everything is great....right up until it isn't!

The safest folks in a collapse are the smart Boomers. They were brought up knowing the value of money, the value of saving and SMART investing. Set your goals, work hard, be frugal and save when and where you can. Pretty simple recipe when you have the opportunity to take advantage of it. They had the means and they had the knowledge to be more prepared than most for what's coming. No, not every Boomer was smart enough to make the best of their opportunities but many did.

Todays kids won't have chance and it's not their fault! The government and big business forced most of their opportunities (read: blue collar jobs) overseas (the Boomers didn't do that BTW) and also put the kids into a financial hole supporting crippling educational costs which produced little value from an educational perspective.

I'm off to inventory my ammo stash!
Shootist I have a lot of respect for you and Taezzar I feel you both have lived long enough and have had good times and bad times and realize when the bad times came to you, you learned how to survive with what you had or have. You both are survivors. I have instilled that in my son and I know he is a survivor. I like you both am prepared for what ever happens and that gives me peace. I have had a good life and if I die tomorrow I will know it was good while I had it. I call it the ability to adapt. For instance when you lose your income and you are forced to live on less you can adapt.
 

Garyw

The Military gave me Defoliant Exposure
Silver Miner
Joined
Mar 16, 2011
Messages
1,299
Likes
1,061
Location
State of Jefferson
#39
I do not need an armory I have poured enough silver bullets to take whoever comes to get me along with me.
 

the_shootist

Targeted!
Midas Member
Sr Site Supporter
Joined
May 31, 2015
Messages
20,901
Likes
22,574
#40
Shootist I have a lot of respect for you and Taezzar I feel you both have lived long enough and have had good times and bad times and realize when the bad times came to you, you learned how to survive with what you had or have. You both are survivors. I have instilled that in my son and I know he is a survivor. I like you both am prepared for what ever happens and that gives me peace. I have had a good life and if I die tomorrow I will know it was good while I had it. I call it the ability to adapt. For instance when you lose your income and you are forced to live on less you can adapt.
Thank you Gary. I patterned my life after yours so I'm thinking we're good!


We aren't done yet my friend, not by a long shot! :belly laugh:
 
Last edited: