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Tuesday, May 19, 2020
đŸ‘‰This is Why The Stock Market is Booming despite Bankruptcies,Unemployment and Economic Meltdown !!
đŸ‘‰This is Why The Stock Market is Booming despite Bankruptcies,Unemployment and Economic Meltdown !!
Over 4 million Americans are now skipping their mortgage payments. The US federal government debt is around 107% of the US GDP. Many businesses are bankrupt and will not reopen. Some may reopen with reduced staff. We are on the precipice of the greatest real estate market crash in American history. Wait until you find out that your real estate taxes are going up, way up! Somebody has to pay for the free stuff you just received from Uncle Sugar. The unemployment percentage today is much higher than the Great Depression when it was around 20 percent. Most of the economy is on its knees, with countless SMEs never gonna re-open. More than 100,000 U.S. businesses have already permanently shut down during this pandemic, and that represents millions of jobs that are never coming back. The Federal Reserve Bank of Atlanta is now projecting that U.S. GDP will shrink by 42.8 percent during the second quarter. Retail sales were down 16.4 percent, and U.S. industrial production fell 11.2 percent during the month of April. Homeless encampments are growing every day. Meanwhile, The Super-rich are buying underground bunkers with SHOOTING RANGES over fears coronavirus will spark social meltdown. A depression would actually be kind of nice compared to where we're going. tens of millions unemployed with super-specialized service economy skills there is ZERO real-world demand for every industrial process depends on components being produced in china A money supply that has been blown up beyond any hope of not hyperinflating. 90 days. That is when the Country sees the fallout of all this. 1. Mortgage forbearance payments due at four payments on the same day. 2. Auto loan forbearance ends in 30 days, and that will exacerbate the Mortgage situation. 3. Credit Card defaults start in 60 days as people choose mortgage over revolving. 4. Pandemic Unemployment is ending for most who got it in 6 weeks (13-week cap) 5. To top it all off, many will not have a job to go back to as the Fed Injections fade. GAME OVER. And all this doesn't matter one iota to the DOW / S&P. The DOW will continue through 50,000 and the S&P into the 5,000 range, all courtesy of the New York FED's Trading Desk! A centrally managed economy of, by, and for, the corporate executive C-Suite crowd. Those numbers are meaningless to wall street anymore. The Sun could burn out, and the market would continue to rally as long as the FED pumps monetary helium into the bubble. Wall Street loves misery (yours & mine) as they’ve been conditioned that free money and tons of liquidity are adjusted along with the misery index. They both rise together! Also, we wouldn’t even know what the Great Depression was if we had a Fed Chairman willing to do the unthinkable (Greenspan) and his successors do even more of it! We don’t have capital markets anymore. Period! End of story and quite possibly our little experiment called the American way of life. What we have seen lately is a dead-cat bounce. Overlay the rise, drop, and sucker rally of 1929 onward. There was a nice little sucker rally that lasted about six months before things went off the rails for the next several years. I posit we're seeing a sucker rally now. If history is any kind of guide, we'll see the real crash start, conveniently, after Trump's re-election. By then, it won't matter, and he'll get to start his soon-to-be-mandatory, military-enforced, "warped-drive" C19 vax crap show. I think I heard the FED say let those poor working bastards eat cake!! Welcome to the New America where all that matters is the stock market! The Dow is up over 1,000 points. The stock market and main street haven't been connected since 2001. I just looked at the Weimar stock market; it rose even when measured by US dollars during the 1923 hyperinflation. As well as Zimbabwe And Venezuela's stock markets, they all did pretty good. The market is being ENGINEERED by the alchemists at the FED. It doesn't matter for markets. S&P algos are hellbent on testing 3000. It may go to ~3100 just to trap bulls in a fake bull rally and then fall with a massive profit-taking drop. 2. Markets are now completely independent of the economy. The good news is good, and bad news is good (means more Fed easy money.) 3. The only goal is to transfer money from stupid momo chasers to big money, so that big money can pay back their cheap Fed loans, and take their profits offshore to fund their lavish lifestyle in Switzerland and/or Monaco. There are only institutional investors participating in the markets. The FED and other central banks, and they have the capability to buy the world. Its all part of one giant rigged game where the insiders and the connected, never loose, while the public get the Carrot and Donkey treatment to perpetuate their slavery. Financial freedom always kept in sight but just out of reach. If they left the market to its own forces, it would have corrected far more often with small amounts. However, the FED is not allowing these healthy corrections, kicking the can down the road, that will eventually lead to some sort of terminal event. The FED, Blackrock, JPM, and the US admin pumpers are trying, by all means, to keep the market up. But the big boys don't buy this euphoria and stay big in cash. There is no market at the moment - it's a planned redistribution of wealth, and price action is completely rational. The market can only stay irrational longer than we can stay solvent if we are dumb enough to take on debt. The central bankers have suspended the free market, and supply/demand price discovery has been halted. Government paper doesn't cover inflation, and if they have their way, it never will. And the game of pushing for what appears to be a benign inflation rate of 2-2.5%, and constantly show the chart of change, is misleading. 2% compounded for ten years takes 22% off the dollar you make today in just ten years. 2.5% takes 28% off....in ten years, and 62% off in twenty (all from the "stable prices" bound Fed). Inflation is a tax on everyone to pay for presents someone else got. So when you see a flat chart of inflation at a certain level, look for the real chart of compounding and aggregation. Printing / monetizing is just creating debt somewhere else one form or another. If we can see a storm on the horizon and we prepare accordingly, then it doesn't matter when it hit or even if it moves around us. But if we miss the storm, and does nothing to prepare and we are hit, then we will be destroyed. Being debt-free, live beneath our means and save what we can in gold and silver, and then when and if the storm hits, we can survive it while everyone else suffers. This is the one rule that, unfortunately, many forget, the number 1 rule for stackers: First get out of debt. So, now it is even more evident about what was the REAL purpose of the "pandemic" possibly: the PRIVATELY-held [NOT]Federal[NO]Reserve's 'Mother of All Pyramid Ponzis' imminent implosion, as all pyramid Ponzi eventually do! The 'Mother of All Financial Resets'! Bring it! The country has assuredly entered the Greater Depression all right, and things will really turn ugly just as soon as the "stimulus" spigots have been turned off. How bad will the situation get? Well, you're going to see a wave of muggings, burglaries, home breaks ins, looting, assaults, vandalism and mob uprisings on a scale that you never thought was possible in any age. By that time, all law and order will have been completely broken down, and setting up the country to a fascist/communist dictatorship. It happened during the Weimar Republic, and it will happen here. The central bankers have figured out how to create money to blow up asset bubbles and not have extreme general inflation. The mechanism lies in the lack of monetary velocity. All that new money is being parked right back at the Fed. It's been created, but since it isn't circulating, it's as if it hasn't been created in terms of kicking off inflation. Once it flows out of excess reserve status and starts pursuing the purchases of real-world assets, the acceleration will be a regular moon shot. This is a case of normalcy bias on a global scale. Not sure what the tipping point will be, but the rush out of fiat currency will happen, and it won't take years to manifest itself. It won't be a pretty sight when mass psychology takes hold, and the panic sets in. If there is a second wave pandemic or some other shock, the Fed and other central bank 'digital printers' won't have enough space on their screens. Technically and legally, they're not printing or using money, they're just crediting deposit accounts with the amounts, and as we all know, deposit accounts are bank liabilities, not money. What happened [after 2008] was that inflation just manifested itself in ways that people weren’t worried about because it showed up in stock prices and real estate prices and bond prices and things like that. It wasn’t showing up as heavily in consumer prices. People started to have faith in the dollar, so we didn’t see the big increase in consumer prices. Well, we’re going to see it now. Because not only are we going to have to deal with the consequences of all the money the Fed is printing right now, we’re going to have to deal with the consequences of all the money that it printed earlier that temporarily went into financial assets before it migrates into consumer goods. Just because we’ve gotten away with it for this long doesn’t mean we’re going to get away with it forever. Why, this time, will we "have to deal with the consequences"? Why will the economic path following the 2020 Fed printing be any different from that in 2008! Why won't the distortions and last until the next crisis, just as we were surprised they lasted during the past decade? Why is this The Big One?... Serious questions. I can't remain solvent longer than the market can remain irrational, AND immoral, AND illegal. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. The Fed is committed to rescuing all business from the greatest economic collapse since the great depression, and probably greater than that, to fund the US Government’s rocketing budget deficits, fund the maintenance of domestic consumption directly or indirectly through the US Treasury while pumping financial markets to achieve these objectives and preserve the illusion of national wealth. Clearly, we stand on the threshold of unprecedented monetary expansion. Welcome to the $25 hamburger. As long as the government has it's hand in the pot, by having the Fed print its money, we will continue to be poor. There is no need for taxes; the government just prints what it wants. Got to pay for Pelosi multi-trillion "stimulus" (translated extreme taxation) programs. Well, as you can see, it is already printed, and instead of paying taxes, the money in your pocket is worth 18% less than it was last month. A drop in standard of living exactly like an 18% taxation would do. Nothing is borrowed, just taken from your pocket and put in Pelosi's buddy's pockets. Keep buying those votes, Nancy! The privately-owned fed is illegal. The owners are 100% responsible for stealing from you through inflation. A total Economic Shutdown is Exactly what this damn Criminal government wanted to stop the Rise in Interest Rates, which was just about to Crash their Entire Fraudulent Financial PONZI Scheme! How many federal employees have been laid off? How many government agencies are targeted for closure? Is the United States over-leveraged? What will be the Federal Governments's chances of servicing its enormous dept without inflation? Given that, how much concern should we expect over unintended consequences! The federal government has not laid anyone off, if they are not working, they are still employed, but collecting an even larger paycheck due to expanding government subsidies. The government is, in fact, hiring more workers to help with all the Pandemic Unemployment Assistance's and other handouts it is doling out. It is a self-cannibalizing and vicious cycle. I expect the markets to continue to roar through the summer before sometime in the fall, possibly near or immediately after the elections, a subsequent implosion will occur. I'm actually expecting this true and next market collapse to make the 2008 financial crisis look like a picnic at the beach. They are throwing everything at the problem including the kitchen sink to hold this flaming house of cards in a tornado together...people are becoming wildly more complacent, more entitled, and less fearful of the future than ever before because they think that the government's policies will work, when in fact, they are literally pouring gasoline onto this fire and lighting a match to it. There will be a reset, and I believe only hard assets---precious metals, land, guns, ammo, liquor, drugs, food, and medicine will be the currency and capital that will get you through the disastrous event that is coming and is likely less than six months away. Enjoy the false sense of security that this crisis is over, and it has nothing to do with COVID-19---it never did. The behavior of a dying financial system is analogous to that of a hurt animal. America today is essentially an open-air insane asylum compared to the country I grew up in, but they never seem to be any consequences for the insanity, and it just keeps getting worse. I've been expecting total economic and societal collapse for years now, but it just keeps staggering along like some kind of socialist MMT Frankenstein. Are they really going to get away with this? Can they really just keep vomiting out insane liberal policies and printing trillions out of thin air, and everything will be fine? Someone has to eventually pay for the debt and the billions, nay trillions that will be used to provide welfare support. Governments are in a bind and will need to print to keep the system from collapse. This will inevitably lead to the decimation of fiat currencies, and trade imbalances will have to be settled in gold and/or other commodities. Capital controls will return to prevent wealth from escaping tax jurisdictions. This is the endgame of the moneychanger FED charade. Technically we've been in a depression since 2008. COVID just accelerated the final unwinding. We're going back to the ways of our grandparents: saving more, little debt, multigenerational households, resourcefulness, and self-reliance. Simplification: The strong will survive. The weak have been spoon-fed by the government and will not do well. It's obviously easy to look at these doom & gloom numbers and blame it all onto CovID-19. That's the intention. But is it not the case that the US economy was already on the edge of a cliff! All CovID has done is to push it over and give those responsible an excuse to crash the system. The intent is to destroy America, Americans, and the dollar, and they're doing a great job of it. IF you can, grow your food, inside and outside. Things are going to get rough. This wasn't due to the Flu. This was happening since we left gold in 1971 and accelerated through this century. The economy has been ridden with massive waste, fraud, and debt for at least the last 30 years, but it just keeps ticking along. It used to be that stupid decision were avoided because they had consequences, and one of those was going broke. There's apparently no longer any need for caution, saving, obeying laws, responsibility, rationality, or any of those other American characteristics that are so out fashion in our brave new world. We learned nothing from the 2008 warning and instead just doubled down on the gambling. And it's roared into the stratosphere since then. The derivatives debt pit is bottomless. And the FED's now drowning in a tsunami of confetti "money." No government official or banker who lived during the 1930s ever publicly admitted they were going through a Great Depression. Only after it ended was the term coined. So don't expect any evil politician or banker to use the term at present, which of course, is why so many will suffer now as then. Always the need for pollyanna positivity, V-shaped recovery, and 'sun will come out, tomorrow' BS. And that's why so many lose everything during these events. Most are sheep, and they will get fleeced. This was The Atlantis Report. Please Like. Share. Subscribe. And please take some time to subscribe to my back up channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.
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