Economic Winds and Investment Whirlpools

Dr. Copper, the prognosticator of our #economic future has broken decidedly to the downside, boding ill for stock #markets everywhere.  Right?

Copper is known for its historic ability to predict stock and commodity prices in advance, due to its use in the construction industry.  If economies are growing, #contruction must take place, and copper prices must go up.  But even with #China's blatant stockpiling of commodities over the past several years, copper prices have dropped below their trendline and suggest stock and commodity prices should fall as global economies fall further into recession.

Yet US markets are at all-time (though nominal) highs.  What does this suggest?

The US Federal Reserve ( #Fed ) is pumping out funny money dollars faster than any entity in history, other than the current Japanese central bank.  Curiously, the #Japanese #yen somehow manages to stay alive with extremely low interests rates.  Why? Because the vast majority of Japanese #bonds are owned by Japanese citizens.  (But, don't fool yourself, the yen is about to begin a MASSIVE slide downwards as the Japanese enter the #CurrencyWars with the pedal to the metal!  The US Fed will be COMPELLED to boost dollar-printing to keep up with the devaluation of the yen.)

The US finds itself in a similar, but different, position of grace compare to Japan.  The US #dollar remains the currency for international settlements of debt.  #Oil is denominated is #USD.  Furthermore, there is no European Central Bank ( #ECB ) to demand that the US federal government live within its means.  If the US were a #Eurozone member, we would be asked to leave, just as #Cyprus is about to be asked to do.

Actually, the US debt-to-GDP (gross domestic product - the total of all economic expenditures in the US economy) is far worse than Cyprus' and most of the other notorious Eurozone members (Greece, Spain, Portugal, Italy, France, etc.).  But here's the thing: the US can print USD as fast as it needs to.  Just like Dr. Gono did in Zimbabwe.  (Go Google your history.)

Allan #Greenspan said so, and "Helicopter" Ben #Bernanke confirmed the US Federal Reserve Bank is fully prepared to print USD in infinite quantities to pay off our debts!  Viola!  Problem solved!  Haha! Those stupid Chinese that loaned us all the moolah are SCREWED!  How funny, right?

Well, things work out the way they deserve to work out.  China might take a beating eventually (they've sold nearly half their Treasury holdings in the past 6 years or so).  Others may get hurt, too.  But the simple fact is: the USD is doomed to decline inevitably in value, possibly going to a value of ZERO.  That is correct.  THE CONTINUING DECLINE IN THE VALUE OF THE US DOLLAR IS INEVITABLE OVER THE LONG TERM AND THE RESULT WILL BE EVER-INCREASING INFLATION FOR US CONSUMERS.

The (in my opinion, unconstitutional) Federal Reserve has morphed itself into the arbiter and overseer of all financial activity in the US (and nearly, the world).  It's patently stupid plan is to print funny money until all our government's reckless spending is paid for and all our debts are gone, and is a fool's errand.  There is NO POSSIBILITY that this scheme will end well for American consumers or holders of US Treasuries - in the long run.  (I suspect "Hellicopter" Ben will step down after this term and leave the wreckage to his successor.  Otherwise, he's liable to be lynched!)

Imagine you took all your investment blocks and threw them into the bathtub.  Then you turned on the Federal Reserve money-printing hot water spigot.  For a while, all the blocks would start to float up as the unlimited supply of money flooded the system.  This is where we are today.  But, eventually, some of the blocks would start to spring leaks.  The Chinese and other countries would start to sell US Treasury bills back to the Fed who has to keep buying them up with ever MORE funny money.  And, eventually, the bad mortgages the Fed has been buying for the past several years will come due, and will have to be marked to market (meaning the Fed will have to take MASSIVE losses - and print even more funny money to "absorb" them), and the unjustifiably-inflated stock market will have to reconcile itself with some outrageous inflation figures, as will the modestly reviving housing market - ALL Fed-induced monetary "bubbles" geting ready to burst...  One by one, or worse, SUDDENLY ALL AT ONCE, the financial blocks sink to the bottom of the tub...  What shall we do?  How do we prepare?

What should you do?  Go buy up the gold and silver and platinum and copper and all the stuff you can find to prepare for the inevitable hyper-inflation?  Sure.  That's seriously probably the smartest thing you could do, short of moving to Chile, New Zealand, or maybe Canada...

Just realize that the federal government ALREADY has on the books Executive Orders that say when THEY need something (like money to pay their outrageous, unspeakable debts), they can come and confiscate ANYTHING you own to pay them.  And if you don't like that, they will kill you.  On the spot.  I'm not joking or exaggerating one bit.

There are now over 100 federal government agencies with the authority to use lethal force within the US against you.  Even HHS has been buying ammunition to arm a deadly force to take from you what you earned, or force you to do what they decide you should do, or KILL you if you resist.

Am I joking?  No.  Am I exaggerating?  No.  I am not.  Learn your history.  Read the laws in force in America today.  Grow up and face your responsibility.  If you have a backbone, you MAY actually be entitled to the title "American".  The day of economic reckoning IS coming to America.  Do your best to be prepared.  Do something and keep on doing things to prepare.  Each small incremental step we take to prepare, gives real Americans that much more hope that what our Founding Fathers intended may survive in this world of Satanic, sick, and perverted "progressivism" that seems to be consuming our once-great nation.