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You have surely
heard the elitist banks passed their recent government sponsored
“stress test”? Forget about it! Relying on this incestuous bunch
to grade themselves is like putting Madonna in
charge of screening convent applicants. Take no comfort in shams of this
nature.
There are bigger
fish being fried. The entire American nation is in the crosshairs and will be
severely tested like seldom before.
Very few people
comprehend the scope of the problems that continue to unfold. The Dow is up a
couple thousand points so everything must be normalizing, no?
No! Look deeper.
The US Hits the
Treadmill
The core of our
problems is deep in the roots of the overall system.
- The US economic model has been
extremely flawed for more than an entire generation. Our
“money” holds no intrinsic value. We follow the consumption
mantra instead of the production model. The good times come
only when credit expands in bubblical
proportions (don’t look that one up in Webster’s). Credit
contractions, like the historical one we’re now in, threaten to
implode the entire edifice. The Fed is the master of the boom and bust
cycle and they have really overdone it this time.
- Low interest rates are damaging to the key
individuals that can rescue us … savers. Save the savers!
- There are consequences to failed economics. Our
central planners are a scant few decades following behind the Ruskies. It is definitely not free market
capitalism that is crumbling
(http://www.investorsdailyedge.com/HasCapitalismFailed.html). Stupidity,
greed and fraud are simply meeting their inevitable demise.
Results- The
patient literally fell off the treadmill.
The Telling
Electrocardiogram (ECG)
There are some
really weird heart rhythms on this now intensive care patient.
- This decade has been one of depression only
disguised by official lies and distortions (altered statistics). A sustained
recession, is, in fact, a depression. The
sustained recession started in 2001, with a brief interlude in 2004 and
I’m sticking with that opinion regardless of how few see it. Check
out the GDP chart at www.shadowstats.com for yourself. Any analysis is only as good as
the documentations used.
- The collateral foundation is crumbling out from
under all American banks. Real estate continues to deflate and
this directly impacts the viability of banks. Their ability to lend
disappears with foreclosed homes and non performing shopping centers. Home prices were down 14% the first quarter
of this year compared to the first quarter of 2008. At least 30% of US
households owe more on their loans than their homes are worth. Real estate has not bottomed.
- Joblessness goes hand in hand with real estate
failures. The Labor Department just fessed up to an 9%
unemployment rate. The rule of thumb is to roughly double the propaganda
that comes out of DC/NY. We’re heading next for 20% unemployment and
all but the most gullible know it. More reliable reporting, again, comes
out of the Shadow Stats website.
- American debts are way, way past the point of
ever being repaid. They will be defaulted (http://www.investorsdailyedge.com/the-final-d-word.html) on. I won’t bore you with excessive
numbers here because eyes tend to glaze over. Our economic leaders are
throwing down multiple trillions of dollars in between shots of tequila.
Practically none of this funding is aimed at Main Street. Recent
“stimulus” and desperate promises come to $29 trillion per
Bill Buckler of the esteemed Privateer.
- Tax receipts for fiscal 2008-2009 are down 31%
for individuals and 58% for corporations. Meanwhile, government is vastly
expanding its spending and a collision is inevitable.
- Foreigners are balking at purchasing more
American debt and the Fed, in an end game strategy, has stepped into the
gap. Don’t try this at home (http://www.investorsdailyedge.com/the-fed%E2%80%99s-march-to-madness.html).
Results- There is
a dangerous cardiac arrest in progress. Still testing, however.
The Dreaded
Proctologist
This test is the
most revealing one of all. You will need more than a Valium
just to review these results. The creatures that have brought us to this
fateful moment show no signs of seeing daylight any time soon.
- Failed entities should be purged from the
system. Fraud requires punishment. Instead, incestuous entities like
Freddie Mac, Fannie Mae, AIG, Goldman Sachs, JP Morgan and others were
and are deemed too well connected to fail. A financial coup d’etat has transpired as Goldman Sachs
refugees have overtly grabbed the ring of power. The banking
elite continue to clutch their power (http://www.investorsdailyedge.com/whoelectedtheseguys.html).
- The shadow banking system that directly caused
this American catastrophe continues to bring forth more and more derivatives.
The BIS, the bankers’ bank in Switzerland, reports $684
trillion in these hidden, unregulated and dangerous instruments. Other
sources report them as high as one quadrillion dollars.
There’s a Zimbabwean number if there ever was one. There can be
little doubt derivatives are continuing to fail behind the
scenes, further compounding all these issues.
- The printing press is also found with this
scoping and it’s obviously turned to malignant mode. How do you
cure a problem caused by extreme amounts of credit and debt with
unfathomable amounts of the same?
- No observed green objects resembled
“shoots”.
Results- A massive
surgical resection is mandated. Today.
Test Results and
Prognosis
Grievously, this
patient has abused its heart and lost its soul. It is unrecognizable from its
original Constitutional form and very unlikely to revert back to it. It exhibits
no free markets, no honest money and few brave and rational leaders. Short of
a miracle, you’re looking at a terminal case.
The banks passed
their stress test but you dare not rest easy. Al Capone would have given
himself a glowing report card if given the opportunity. The times remain
extremely precarious. Protect yourself by staying away from the Kool-Aide and heading for the precious metals.
Live
Resourcefully
Russel McDougal
Investor’s Daily Edge
All
articles by Russel McDougal
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