Sunday, January 20, 2013

#4 What Gradual Economic Devolution Looks Like - to the average American Worker


Well Folks, we’ve had a great Holiday and are looking forward to a great New Year that we are equally certain will not be so great for all those that are not prepared for the unexpected.

For instance, all bears on the stock markets and Gold and residential Real Estate will be slaughtered, because ... 

 

Everything that we have expected for over five years, and predicted, is being ‘Rolled Out’ by the PTB (Powers That Be) right on schedule.

 

 #1 the US Economy is continuing its slow dissolutive devolution and the US is now on track to becoming a ‘Third World’ nation by 2022,  

SPECIAL NOTE: Ignore the false signal of economic robustness and health indicated by car sales ---- because the PTB and the Stupid Bankers are doing with cars EXACTLY what they did with houses in 2002 to 2006, i.e. they are allowing the Car Dealers to sell a car with NO money down, NO credit worthiness established, NO income qualifications and NO liability (because they are once again selling 'Bundled Loans' to really stupid investors) to anybody that can FAM (Fog A Mirror).  

And the results for the auto industry, and the country, will be very similar to the Real Estate crash of 2006 to 2009.   

 

#2 the US real inflation rate (NOT that phony rate reported by the US CD) is now raging out of total control, somewhere in the range of 9.5 to 11.5% per annum.

 

#3 because the real Inflation rate is around 9.5 to 11.5%, the US GDP is contracting at around 5.5 to 7.5% per year as will be corroborated by anybody in business,

 

#4 the PTB are pushing all stock markets to totally insane levels despite the horrific condition of the US economy and we are still confident that the ultimate target for the Dow Jones is roughly 18,500 in late 2014. 

I do very well know that this sounds insane to those with absolutely no experience of these things, but there is now no other ‘Investment Game’ in town for the enormous pools of liquidity and the bank’s roughly $43,000,000,000 of new QE money, each and every month, is going straight into the markets - as we did very clearly predict back in 2011!!!

 

#5 American workers, and all Americans, are now in a mammoth struggle for survival which they will lose, when the second wave of the Super Tsunami ‘Kondratieff’ Long-Waves crashes over all the world’s economies in late 2014 to 2015.

 

#6 Gold is clearly headed to $2,200 to 2,500 per ounce in 2013 and many thousands of dollars per ounce in 2015 to 2017, when the US and all Western Fiat currencies crash, contiguous with the bursting of the greatest Bubble of all FED promulgated Bubbles, i.e. the BOND BUBBLE!!

 

#7 the poor befuddled and confused Sheeple are being set up by the MSM PORE (PSY-Ops Reporting and Editorializing) to buy Real Estate so that they will be utterly destroyed in the second wave of the Super Tsunami 'Kondratieff' Long-Waves, when all Real Estate prices will absolutely crater!!!!   

 

The further unraveling of the ‘American Dream’ is right out there for all to see, if they will but look: 

 Corporate Profits Reach Record High, While Workers Struggle

The Huffington Post  |  By Bonnie Kavoussi Posted: 11/30/2012 10:34 am EST Updated: 11/30/2012 10:34 am EST
While finance executives urge Congress and the President to rein in spending, finance companies are raking in profits.
Corporate profits reached a record high in the third quarter, according to a Commerce Department report out Thursday. And the financial sector is doing particularly well. Financial companies accounted for all of the net growth in domestic corporate profits during the third quarter, according to analysis by Haver Analytics cited by The New York Times. Catherine Rampell writes:
Domestic profits of financial corporations rose $71.3 billion in the third quarter, after falling $39.7 billion in the second. Domestic profits of nonfinancial corporations, on the other hand, decreased $1 billion in the third quarter, after rising $27.8 billion in the second quarter.
Meanwhile, workers are struggling. Average hourly pay, when adjusted for inflation, has fallen 0.7 percent over the past year, according to the Labor Department. And the unemployment rate in October was 7.9 percent -- it was at a low of 4.4 percent in May 2007 before the recession.
It's a "zero-sum game," Moody's Analytics economist Aaron Smith told The Huffington Post in February. Companies are earning record profits largely because they are squeezing more productivity out of their workers without paying them more. Workers are afraid to slack off because it's become so hard to find another job.
Investors, on the other hand, are reaping money. Indeed, this month many companies issued special year-end dividends ahead of expected tax hikes in 2013. If you had a few million dollars lying around in early 2009, you could have made a fortune by investing in the stock market. The S&P 500 has more than doubled since its lowest point of the recession, in March 2009.
Check out how much corporate profits have boomed since 2009:
corporate profits