I was at a meeting a few nights ago and shared my article that I sent out that day with someone there. As he was reading, he asked me in a way that let me know he thought I was full of it- where I got my “less people working today than in 2009 based upon the labor participation rate. He wondered how this could be when we have 3.6% unemployment.
After informing him that the number comes right from the Bureau of Labor Statistics I also informed him of the 90 million plus that are NOT counted in the “official” numbers that according to John Williams of Shadow Government Statistics reports to be north of 20% in the real world- a number more associated with a depression rather than a booming economy.
This explains a lot. BS in and BS out. Most people I meet are in this same position- being bombarded with propaganda about a GREAT economy when virtually ALL of the economic numbers are contracting. This all started long before we ever heard of the Coronavirus and has been accelerating to the downside for over a year.
Many people are now convinced that the Fed can fix anything by conjuring “money” up out of nowhere. Virus outbreak- Cash! Just today (2-13) the Fed popped another $79 billion into the banks and hedge funds. It appears that every day $50-$100 billion is being injected into banks and hedge funds who buy stocks and bonds and repress the price of other assets like gold with the same faux cash and paper contracts. What would the “markets” look like without the trillions being added just in the last few months? My guess is that instead of record highs we would be talking about an epic crash in traditional asset prices and an epic rise in those assets being artificially suppressed.
As a matter of fact, gold was starting to shoot higher right up until the REPO operations started and it has now been trading in a range since. To me, this just adds more fuel to the fire when this fails to work.
Another statement made was “I don’t want to own an asset that is being manipulated”. Good luck- you couldn’t own a SINGLE thing! The only difference is the WAY the assets are manipulated. Would you rather buy an asset that is artificially undervalued or an asset that is artificially overvalued? BUY LOW- SELL HIGH! My opinion is that the only way for someone to make money buying stocks and bonds at these levels is for a greater fool to come along and pay an even higher price. This has worked for a RECORD long time but will not go on forever. How sure can you be there will be a chair left for you when the music stops?
How sure are you that the central banks and banks aren’t already IN the chairs and will just wait for the right moment to clue you in that the music stopped back in 2008 and the last 11 years has been nothing but an epic debt binge to make sure as few as possible can understand what is happening?
It is unfortunate that the financial game shows and politicians are all in on this also as they regurgitate the fake numbers and tell the public that the economy is booming when anyone can look at the real numbers and know that it is all a mirage.
Many times I will say that I really don’t blame the people because they are being fed propaganda 24 hours a day and 7 days a week. I have a friend, Bob Unger, who corrects me and says I should blame them because they are too lazy to care about the truth and indicates a lack of character and morality. It does appear to me that many feel safer hoping that “all is well” and the “Fed has our backs”. While that may make you feel better temporarily the shock you get when reality strikes and you are most likely unprepared because it felt better to ignore the problems that are clearly visible (Record homelessness, record subprime auto defaults, record retail store closings, record collapse in the Baltic Dry Index, record personal debt, record corporate debt, record low interest rates, record debts and government deficits, record conjuring up money out of nowhere and buying assets by central banks, etc.) could leave you reeling.
One of the most glaring signs is when those in charge- who can conjure up any amount of “money” they want at any time and purchase real stuff with virtually nothing and at virtually no cost start buying record amounts of gold- 670 tons in 2018 and over 700 tons in 2019 (World Gold Council).
Now why would they do that if they expected the “printing and buying” scheme to go on indefinitely?
So why in the world do most people believe this WILL go on indefinitely? The only reason I can come up with is that they are bombarded with that very idea hundreds of times a day with “expert” after “expert” being paraded out to reinforce those ideas. Don’t forget- I used to be on CNBC and Fox Business and other shows- UNTIL they didn’t like the content.
I would urge all of you to do your own research. Look at the Federal Reserve website and see the dizzying numbers of dollars that are being conjured up out of nowhere and being spent to buy assets to give the illusion of liquidity. Look at the BIS (Bank of International Settlements) website and see about the Crypto Currency that they are mandating central banks have by 2025. Look at the economic reports that confirm our economy is closer to free-fall than booming (PMI, sales, shipping- all down). Debts and defaults- way up!
This article is not meant to be a downer but it is meant to add a little reality to the reporting being done in the mainstream media which I believe is nothing but propaganda.
I also believe for those that prepare this will be our greatest opportunity to profit that we have ever seen if we are positioned correctly. My fear is that VERY few will be properly positioned. But I’ll bet the major banks and central banks will be!
WATCH WHAT THEY DO- NOT WHAT THEY SAY!
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