Archive for August 2009
by Rick Ackerman
Posted originally August 10, 2009
THE STOCK MARKET’S POWERFUL BEAR rally, now five month’s old, has fed on false hopes and delusional thinking, but it is unlikely to survive the coming collapse of the Obama presidency. Mr. Obama’s once-overwhelming popularity, though ebbing, has so far survived the voters’ growing discontent with his policies. However, disapproval is mounting, even on the political left, and it’s going to reach critical mass once the president’s ill-conceived plan for a government takeover of the healthcare system has gone down in flames.
He will become a lame-duck president after less than a year in office, leaving the country rudderless at a time when the economy and financial system are desperately in need of a firm hand or at least the appearance that someone is in command. Investors had better prepare for the inevitable darkening of America’s mood, since its effect on the stock market will not be pretty. It is often said that Wall Street abhors nothing so much as uncertainty, but this will be far worse – a plunge into despair or even chaos that will make the nation’s depressing wallow during the Carter years seem sunny in comparison.
by Achal Mehra
Reprinted from Little India, August 19, 2009
THE STEADY DRUMBEAT OF GOOD NEWS is getting infectious. The Dow Jones has rallied almost 40 percent from its bottom on March 9. The Federal Reserve expects the economy to pick up in the second half of this year. Home sales rose 11% in June and corporate profits strengthened in the second quarter. Pres. Barack Obama has signaled signs of “green shoots” on the economic landscape. Alan Blinder, the former vice chairman of the Federal Reserve Board, recently pronounced in an op-ed in the Wall Street Journal, “The Economy Has Hit Bottom.” The August 3rd cover story in Newsweek went even further, declaring boldly, “The Recession is Over.”
But before you get giddy, several economists caution that we may be witnessing a false lull before the storm, that the temporary economic boost is propelled by the nearly $1 trillion infusion of government bailout money to financial institutions and the economic stimulus package. They fear that we are on the verge of a double dip recession and that the second recession could be longer and deeper.
by Roger Wiegand
Posted originally Aug 17 2009
A LIST OF ULTRA-STUPID MOVES and counter moves destroying the economies and consumers world-wide collected and remarked upon by Traderrog.
Health Care: Ignoring and insulting elderly voter’s at the most recent town hall meetings on health care discussions created anger and confusion. Sharp observers who have taken the time to read proposals see nothing but disaster.
The worst features are: (1) Robbing 50m from Medicare in a triage move to lessen care for the oldest based upon cost and, (2) Moving to a single payer system destroying 85% of the coverage for recipients now being covered by private insurance. (3) Adding 50m new participants from the lowest income sector (non-payers) overwhelming the system with demand as there are not enough medical staff to cope. Our forecast says the graybeards will vote out many of those up for re-election in fall 2010 in a massive backlash.
Further, this fall, when the bill comes up for a vote, the markets will have crashed and this bill could be buried for good. This is the reason those in charge are pushing so hard to pass it quickly. After September 15th it’s too late. Rationing health care using bureaurats to decide who lives and who dies will not fly with voters-consumers.
Consumers Are Broke: Since consumers earn the money and pay the taxes to support all governments, when they are broken, their ability to support the bureaurats is broken, too. They can be overly taxed and abused to most any extent but when they are jobless and their employers are shut-down so are revenue streams to all governments. Central governments can last longer as they manufacture currencies and bonds out of thin air not having to balance budgets. On the more local level of states, counties, cities, towns and villages have to balance budgets and they simply cannot.
by Rick Ackerman
Posted originally on Rick’s Picks, August 20, 2009
WE POPPED UP ON THE “WRONG” side of the inflation/deflation argument here the other day with a hyperinflation scenario that seems to us not just possible but likely. Although we hold fast to a prediction that deflation is going to run its course, throwing tens of millions of Americans into bankruptcy, before relief comes to debtors, we are persuaded that at some point well down the road the U.S. will throw the switch to hyperinflate. Even so, we believe that the attendant collapse of the dollar will play out far more quickly than the collapse of the German mark during the Weimar hyperinflation of 1922-23. So swiftly will this occur, in our opinion, that the hyperinflationary spike will begin and end in mere weeks, leaving deflationary to dominate both before (as it continues to do now) and long after.
by Captain Hook
Posted at The Market Oracle, Aug 24, 2009
Far too many look for easy ways to get rich quick these days, only to be disappointed or shocked when reality bites in the end. Because of this there are no shortage of Ponzi like schemes characterizing the financial landscape, one by one being found out to be frauds, with Bernie Madoff at the top of the list in history thus far. The public was shocked when they discovered the size of the Ponzi scheme he was able to put together and perpetuate for so long, as usually, operations like this fall apart much quicker.
OF COURSE THE REASON FOR THIS WAS because a far larger Ponzi scheme of which the public remains oblivious enabled Bernie to maintain the illusion for as long as he did as it is at the very heart of our fiat currency based monetary system, that being the Fed. The Fed (and Treasury) have been issuing credit and printing fiat currency on an increasingly unhealthy basis for years now, since Nixon went off the gold standard in 1971, putting the US (and world) on the fiat currency system we find ourselves today.
In case you have not realized it yet in knowing this, it should also be understood that because US credit is issued in USDollars ($), that it too is a Ponzi scheme like bubble as well, to go along with all the other bubbles in stocks, bonds, and real estate. So you see, because of the Fed’s easy money policies all these years, the entire financial system is in fact a giant de facto Ponzi scheme, and that because the $ is presently the world’s reserve currency, the entire global economy has been built on this house of cards.
by Roger Wiegand
Posted originally 21 August 2009
Our technical and fundamental forecasting suggests we get a double whammy in the equities markets throughout the world during fall of 2009 and later-spring-early-summer of 2010. While the fall event could be a nasty one, the June-July, 2010 smash has potential to be infinitely worse.
SINCE OUR WORK IS USED by traders and investors preferring differing cycles, markets and goals, we are discussing these things to offer risk-protection ideas. We all search constantly for new trades to make money. However, our focus here is to strongly warn about loss of capital. This is even more important right now than any new ideas on making money.
Obviously, we’re offering a strong degree of supposition and maybe some flat-out guesstimates. But, after watching the global and more importantly our American political circus and evil events from New York trading houses and banks we’re getting a grip on forthcoming events.
To accept our forecast here are some expectations
1. The Obama Administration is determined to see it through to the bitter end on its reckless spending in Health Care, Cap ‘n’ Trade, TARP, Monetization of U.S. Bond Markets and the continuing saga of Digitizing-Printing gazillions of U.S. Dollars. We see nothing to make this administration change their ways. On Fox News last evening a responsible reporter said, “Obama will crash-and-burn implementing his specious policies going to the bitter end. He is so determined to jump-push everyone off the cliff, we can almost guarantee he’s a one term president.”
We say the president is just a puppet for global bankers and corporate directors. He will not waver, as he will do just as he is directed to do; like all former presidents in recent years. These gang members want centralized power and 100% government control. They will first get chaos and then something far worse if they persist and it goes too far.
by Mike Adams, NaturalNews Editor
Thursday, August 20, 2009
YOU CAN’T FIX ONE BROKEN SYSTEM by replacing it with another broken system. Sure, the current health care system of insurance companies (“that’s a pre-existing condition”), employer-funded health insurance and miserable Medicaid are a public health disaster, but if we’re going to fix the system, we have to come up with something that actually addresses the root cause of disease in America.
The current health care reform debate in Washington is really just a distraction – a ploy to keep everyone focused on all the wrong topics while quietly refusing to talk about the big issues that threaten the health of an entire nation.
Here are the top 10 things missing from Obama’s health care reform plan (and often absent from the debate):
#1) Ending the FDA’s suppression of natural cures and safe, effective nutritional supplements.
#2) Initiating a real investment in public education to teach people about how to prevent disease with nutrition.
#3) Ending Big Pharma’s monopoly on drug prices and drug patents (not to mention patents on human genes and animals).
#4) Restoring the ability for local doctors to practice local medicine without being controlled from bureaucrats in Washington.
#5) Cracking down on junk food advertising, soda advertising and pharmaceutical ads that convince people to purchase products that will only harm them.
#6) Banning dangerous chemical ingredients that cause diseases in the first place (aspartame, MSG, sodium nitrite, etc.)
#7) A real effort to improve school lunches and serve food that’s nutritious instead of food that’s cheap and convenient.
#8) Ending bizarre food subsidies on crops like corn that end up making high-fructose corn syrup the cheapest sweetener for manufacturers to use.
#9) Affirming health freedom for parents who wish to opt out of the current system of forced vaccinations and gunpoint-enforced chemotherapy.
#10) Requiring honest food labeling where irradiated and GMO foods are clearly labeled as such.