Between today and the end of this year:
- The stock market will be collapsing and this time the central banks are going to be impotent
- The American economy will be in a recession joined by Europe and then the rest of the world in 2016. Basically, simply resuming the fiscal and monetarily interrupted depression we entered back in 2008.
- Deflationary trends will accelerate–the central banks have few options ( the last being Federal Reserve National Banks on every street corner giving 30-50 year loans out to all comers at virtually zero interest rates)
- Social and economic tensions in America will lead to violence over the summer months. In Europe, the explosive Muslim issues will rise to a level of bloodshed not seen in many generations.
- Right-wing, anti EU parties will gain significant momentum throughout Europe.
- War with Russia and or significant escalations of the Middle East wars will drag in the Imperial forces of the US and proxies.
- China may take the opportunity to increase its military and economic dominance in the Asia Pacific region, America’s response will be the wild card.
- The US will accelerate its preordained path towards authoritarian totalitarianism. Emergency powers may be claimed by an already dictatorial executive.
- Bottom line–America and the world is on the verge, if not already well into, the most turbulent times since the last World War. Perhaps, even worse, as the whole edifice of Western Civilization, democracy, and freedom are going to be under attack internally here in America and around the world–with no nation acting as a beacon of light showing the path to renewal. We have allowed our civil liberties to be stolen in the night by a cancerous crony capitalist fascism for years, and now with blatant arrogance in the light of day. We will not regain them without a collapse and an already well planned authoritarian tyranny before there can ever be hope of a revolution and rebirth. Freedom will come again, but not without extraordinary turbulence.
One Last Look At The Real Economy Before It Implodes – Part 1
We are only two months into 2015, and it has already proven to be the most volatile year for the economic environment since 2008-2009. We have seen oil markets collapsing by about 50 percent in the span of a few months (just as the Federal Reserve announced the end of QE3, indicating fiat money was used to hide falling demand), the Baltic Dry Index losing 30 percent since the beginning of the year, the Swiss currency surprise, the Greeks threatening EU exit (and now Greek citizens threatening violent protests with the new four-month can-kicking deal), and the effects of the nine-month-long West Coast port strike not yet quantified. This is not just a fleeting expression of a negative first quarter; it is a sign of things to come.
Stock markets are, of course, once again at all-time highs after a shaky start, despite nearly every single fundamental indicator flashing red. But as Zero Hedge recently pointed out in its article on artificial juicing of equities by corporations using massive stock buybacks, this is not going to last much longer, simply because the debt companies are generating is outpacing their ability to prop up the markets.
This conundrum is also visible in central bank stimulus measures. As I have related in past articles, the ability of central banks to goose the global financial system is faltering, as bailouts and low-interest-rate capital infusions now have little to no effect on overall economic performance. The fiat fuel is no longer enough; and when this becomes apparent in the mainstream, all hell will indeed break loose.
Republicans are particularly confident in their ability to survive an apocalypse
Many Americans have experience with natural disasters such as hurricanes and earthquakes but each time that one hits an area of the country it is apparent that few people take disaster preparation as seriously as the government tells them to. When people are often so woefully unprepared for a hurricane or earthquake, what hope is there if civilization as we know it were to collapse?
Research from YouGov shows that Americans are relatively optimistic about their fate in the event of an apocalyptic event. People tend to say that their survival time in the event of an apocalypse would be roughly the same as most people in their community (42%). 32% say that they’d live longer than most while 11% think that they’d end up dying early on. There is a significant partisan split on this question, however. 43% of Republicans say that they would survive longer than most people in their community, something only 22% of Democrats say. 47% of Democrats say that they’d live as long as most other people in their community.
Scanning the headlines in the western mainstream press, and then peering behind the one-way mirror to compare that to the actual goings-on, one can’t but get the impression that America’s propagandists, and all those who follow in their wake, are struggling with all their might to concoct rationales for military action of one sort or another, be it supplying weapons to the largely defunct Ukrainian military, or staging parades of US military hardware and troops in the almost completely Russian town of Narva, in Estonia, a few hundred meters away from the Russian border, or putting US “advisers” in harm’s way in parts of Iraq mostly controlled by Islamic militants.
The strenuous efforts to whip up Cold War-like hysteria in the face of an otherwise preoccupied and essentially passive Russia seems out of all proportion to the actual military threat Russia poses. (Yes, volunteers and ammo do filter into Ukraine across the Russian border, but that’s about it.) Further south, the efforts to topple the government of Syria by aiding and arming Islamist radicals seem to be backfiring nicely. But that’s the pattern, isn’t it? What US military involvement in recent memory hasn’t resulted in a fiasco? Maybe failure is not just an option, but more of a requirement?
American democracy is doomed – Vox.
Some day — not tomorrow, not next year, but probably sometime before runaway climate change forces us to seek a new life in outer-space colonies — there is going to be a collapse of the legal and political order and its replacement by something else. If we’re lucky, it won’t be violent. If we’re very lucky, it will lead us to tackle the underlying problems and result in a better, more robust, political system. If we’re less lucky, well, then, something worse will happen.
Very few people agree with me about this, of course. When I say it, people generally think that I’m kidding. America is the richest, most successful country on earth. The basic structure of its government has survived contested elections and Great Depressions and civil rights movements and world wars and terrorist attacks and global pandemics. People figure that whatever political problems it might have will prove transient — just as happened before.
Subprime lending at highest level since financial crisis hit: The three leading subprime categories are auto loans, credit cards, and student debt. $189 billion in subprime loans made in 2014.
The euphoria is bleeding into every corner of our debt driven economy. Access to credit is being given to consumers but unfortunately, the loans are tied to items that are counter to becoming financially healthy. More to the point, subprime loans have reached levels that were last seen only during the financial crisis. As fewer good borrowers are available, lenders are digging into every nook and cranny of the economy to find additional borrowers. Money is brought into existence through debt. People have a hard time wrapping their mind around this. For example, say you are a student looking at going to college but have zero dollars to pay for it. A lender will pay for your school and create this “money” out of thin air. How so? All of a sudden you graduate and now owe $50,000 for example. You will need to pay this back with real earned income for many years. This is money that was brought into the system from financial institutions and we are now seeing it permeate into auto loans and credit cards with subprime borrowers. In 2014 $189 billion in subprime loans were made. Welcome back to the easy debt party.