I Hope You’re Ready: “The Sell-Off Today Is The Start. Not the End.”
They’d have us believe that happy days are here again. And, if your only source of information for economic news is the mainstream media and their talking heads, then in all likelihood you’ve bought into the hype about an economy on the rebound, consumers being more confident, housing prices in recovery and a government that’s soon to resolve America’s fiscal woes.
Nothing could be further from the truth. We are very rapidly approaching a situation that could be much, much worse than what we experienced in 2008.
Remember, in 2008 then Secretary of the Treasury Hank Paulson warned that we were literally on the brink of collapse and Congressional representatives were told that the situation was so serious that should the economy, financial markets and the US dollar crash, it would lead to riots and the need for martial law.
We’re not making this up – see for yourself:
One non-mainstream economist who has been warning of the coming disaster since the last disaster is Market Ticker’s Karl Denninger. He uses something called basic mathematics (with a healthy mix of advanced analysis) to come to his conclusions, and prior to the massive collapse of October/November 2008, Denninger sounded the alarm when he spotted numerous data points, including central bank manipulation in credit markets, suggesting that a massive crash was coming.
Two weeks later markets around the world fell apart.
Over the last several years Denninger has continued to warn Americans about the fiscal crisis, unsustainable debt levels and wealth destruction.
The prescient analyst and commentator is once again sounding the alarm:
Bernanke’s machinations and other games “gave” the Congress four years to do the right thing. They didn’t, because that same “gift” also destroyed all market signals of urgency.
As such you have people like Krugman and others claiming that it’s all ok and that we can spend with wild abandon, taking our fiscal medicine never.
They were wrong. Congress was wrong. The Republicans were wrong, the Democrats were wrong, and the Administration was wrong.
Congress is out of time; as I noted the deficit spending must stop now, irrespective of the fact that it will cause significant economic damage.
We will survive it if we do it now.
…
Time’s up; we either have serious people who will take serious actions right now or we’re going to find out what a real ”discontinuity” looks like.
I promise that you won’t like it.
…
The sell-off today is the start. Not the end.
And it’s also the end of the rope for our Congress, if they don’t get off their butts, which I do not expect them to do.
Therefore, I hope you’re ready.
I bet you’re not.
Source: Market Ticker ; Market Ticker 2
If we were on the brink in 2008, and we spent the last five years injecting TRILLIONS of dollars into the system, why are we once again at the cusp of another crash?
Because they fixed nothing.
In fact, they made it worse.
Back in 1930 Americans thought they were out of the woods and that the economy and financial markets had recovered.
They were dancing, drinking and spending like nothing was wrong; as if the crash had been nothing more than a short-term blip.
Congress was being warned about the possibility of tanks in the streets in 2008. All of the economic, financial and monetary policy measures implemented by the government and the Federal Reserve since then have failed.
Should we be worried?
The short answer is ‘Yes’.
This is going to happen. And this time people should be terrified of the consequences.
Most don’t even have a clue what’s coming.
This article has been contributed by SHTF Plan. Visit www.SHTFplan.com for alternative news, commentary and preparedness info.
2013-03-02 03:30:29
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Whistler Blowers, Insiders
Of course by you all acting like the SHTF isn’t going to happen, maybe the smart boys at the fed have another 5-6 year scheme they can run with the economy,,hoooray,,happy days are here again,,those boys ain’t dumb like you all,,does infowars host know? He doesn’t know prospective writr says cliche ‘about to be published’ cause they are optimist not liars, about,,, the word,, is an abstraction.
Can you say that in ENGLISH instead of SPANGLISH
Sure, we’re all screwed.
The part of the article describing “back in the 1930′s” is probably true as I researched this a little and I saved some of the newspaper headlines – and I will share:
Posted by Karl Denninger in Macro Economics at 12:45
Does Anyone Remember 1931?
Of course not.
In 1930 there were all sorts of statements about how it was “all under control” and “prosperity was returning.” Some examples of the 1929 and 1930 idiocy:
“Financial storm definitely passed.” – Bernard Baruch, cablegram to Winston Churchill, November 15, 1929
“I see nothing in the present situation that is either menacing or warrants pessimism… I have every confidence that there will be a revival of activity in the spring, and that during this coming year the country will make steady progress.” – Andrew W. Mellon, U.S. Secretary of the Treasury December 31, 1929
“I am convinced that through these measures we have reestablished confidence.” – Herbert Hoover, December 1929
“[1930 will be] a splendid employment year.” – U.S. Dept. of Labor, New Year’s Forecast, December 1929
“For the immediate future, at least, the outlook (stocks) is bright.” – Irving Fisher, Ph.D. in Economics, in early 1930
“…there are indications that the severest phase of the recession is over…” – Harvard Economic Society (HES) Jan 18, 1930
“There is nothing in the situation to be disturbed about.” – Secretary of the Treasury Andrew Mellon, Feb 1930
“The spring of 1930 marks the end of a period of grave concern…American business is steadily coming back to a normal level of prosperity.” – Julius Barnes, head of Hoover’s National Business Survey Conference, Mar 16, 1930
“… the outlook continues favorable…” – HES Mar 29, 1930
“… the outlook is favorable…” – HES Apr 19, 1930
“While the crash only took place six months ago, I am convinced we have now passed through the worst — and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us.” – Herbert Hoover, President of the United States, May 1, 1930
“…by May or June the spring recovery forecast in our letters of last December and November should clearly be apparent…” – HES May 17, 1930
“Gentleman, you have come sixty days too late. The depression is over.” – Herbert Hoover, responding to a delegation requesting a public works program to help speed the recovery, June 1930
“… irregular and conflicting movements of business should soon give way to a sustained recovery…” – HES June 28, 1930
“… the present depression has about spent its force…” – HES, Aug 30, 1930
“We are now near the end of the declining phase of the depression.” – HES Nov 15, 1930
Then there was this little “event” in 1931.
Creditanstalt.
A bank in Austria. A big one, in fact.
It swallowed a debt-ridden rival during the depths of the original crash (sound familiar? Greece gets IMF money but there’s no realistic way they can pay anyway) and failed in the spring of 1931.
The panic spread to Germany, and bank runs began (sound familiar?- Greece gets a supposed bailout, but the CDS and bond markets for everyone else over there that are levered too highly continue to blow out?)
Bernanke claims to be a student of The Depression.
But like Hoover and our Fed of the day, during the original iteration of the credit collapse both The Fed and Administration refused to force de-leveraging and the recognition of losses; indeed, they did the opposite – they put in place programs to intentionally lie about asset quality and financial institution health.
Now the latent insolvency that was already present has come to the forefront in Europe, exactly as I expected it would – that the second wave would not start here, in The United States.
I have said this, in fact, for nearly two years – when there was plenty of time to not make this mistake.
But just like in 1930, protecting the rich and powerful who screwed the nation out of its wealth and jobs was more important to the politicians and policy-makers than serving the people of the country and holding those who caused the crisis to account.
Now we are on the edge of realization of the same risks and outcomes that we had in the 1930s.
Doing the same thing over and expecting to get a different result is one common definition of insanity.
Ben Bernanke and President Obama are insane, and time to alter course either has – or shortly will – run out.
i want those obaMOO POS TO FALL HARD HE WAS THE WRONG CHOICE.