Graph below reveals
One of Largest Unmentioned Elephants Rampaging US Living Rooms:
Global Investors Most Distrust Uncle Sam’s Debt (Treasury bonds) among Mature Economies,
as this Financial Soundness Gauge reveals:
Most striking is investors began shifting into other major economies’ bonds as
the global economy began slowing years ago, hence those values rose on the Gauge since then,
but investors keep unloading US Treasuries, dropping them to ever lower values,
thus forcing the Federal Reserve to be dreaded Lender of Last Resort constantly propping Uncle Sam up:
the Reverse of Last Century when US Debt (Treasuries) Was Trusted & Valued Above All Others (after WWII)
– click for more details and explanation of the Gauge above –
Global Investors Are Shunning US Debt because They See:
How 90+% were set up for the fall still just getting underway,
What horrifically few Americans may learn in time:
Prevailing slogans and ideas became treacherous decades ago, transformed into
propaganda smoke obscuring wealthy purse strings squeezing the rest ever more.
World’s top economists at Earth’s central bank,
pre-eminent journal The Economist, plus Nobel laureates
declare US headed for a “1930s-style Great Depression,”
Imploding into the Worst “Debt Trap” of All Time →
– Multiple Times Worse than dozens of nations
whose economies collapsed the past century –
Evident in Countless Ways, including:
Millions of Workers Can’t Find a Job, plus
>10 Million More Gave Up Looking:
U.S. Workforce Has Collapsed back to 1970’s¹
– before Women’s Lib started expanding it..
thanks to cccoach.com
¹see below for data sources
the Great Majority of Americans are now Poorest among Developed Nations..
Home Prices Failed to Recover in most markets, hence:
Home Building is Most Depressed Segment of US Economy..
Costs of Living Exploded Ten+ Times more than Wages this century:
the trickle of Very Few New Jobs are mostly at Bottom of the Wage Scale..
Most Reliable Stock Market Bellwether is Signaling a Crash
Stocks crashed every time it fell 10% since 19th century:
Dow Transports fell 19% (from all-time high 29 Dec)
US Dollar Collapsed over 75% in Value since 2000..
US Government’s Creditors Stopped Lending More Years Ago (overall) !!!
Hence Federal Reserve had to Become Dreaded LENDER of LAST RESORT..
Gallop Poll’s Chairman calls Uncle Sham’s official unemployment rate “the Big Lie,” spun way low..
Unheard-of, virtually Zero Interest Rates Should Have Goosed Greatest Economic Boom of all time
But US Economy Keeps Contracting by Honest and Obvious Measures..
Investors Hang Anxiously on Every Word the Federal Reserve Utters
like the Hopeless Debt Addicts They and Virtually All Americans Have Become. Etc.
Economists know all above plus many more unprecedented realities are all symptoms of a dreaded
No-exit Quicksand DEBT TRAP.
Ignoring decades of warnings from the wisest and best informed,
Americans sank themselves ever deeper under by far the
Worst, Most Gargantuan Debt Mountain ever (details below)
behaving as if it’s possible to borrow ones way to prosperity,
plus falling for other follies known since ancient times..
As with all previous busts, including Dot-Com and SubPrime,
Most Americans Will Fail to Catch On in Time to avoid this Worst Trap Ever.
They’re especially vulnerable due to misunderstanding prices,
have no idea how hopelessly trapped they are: If not believing,
certainly acting as if both prices and VALUE will just continue rising,
especially HOME values, plus stocks and bonds. For example:
Although house prices in most markets have increased this century..
Compared to what most spend most of their paychecks on, including food and fuel:
US HOMES on average have fallen nearly 80% in VALUE since 2000, hence:
Any house price up LESS THAN FOUR TIMES since 2000 has FALLEN in VALUE.*
Most Stocks Collapsed even More.
See below for complete details on this Collapse of Real Estate Values, plus Stocks and Bonds.
Plus most crucially: the BEST WAY to PROTECT ones NEST EGG(s) –
but time is short!
Those with eyes that see know water-tight doors are already in motion toward closed.
*economists call it Purchasing Power
Like all debt addicts ever,
Americans finally hit their Debt Quagmire’s inescapable QUICKSAND BOTTOM
when they Stopped Borrowing: No More for nearly NINE years now! – overall –
and/or Lenders Quit Lending
= FLAME OUT !
see below for sources
of data and issues
* Not counting Uncle Sam’s nor financial sector debts!
per total population, incl. children & elderly!
source: Federal Reserve System
– Despite utterly unheard-of, all-time low interest rates!
= Americans Finally Hit End of the Line all Debt Addicts Reach
When Lenders Catch On and Turn the Tap Off (overall).
Far too few Americans know, fewer still how relevant it is:
Dozens of Nations Fell into a Debt Trap the Past Century:
All Experienced Collapse of Their Economy and Currency
← wheelbarrows of worthless
German marks $ s? *just one possible way US will finish melting down
Hence, the wise know: US Economy’s Days are Numbered!
Their advice how to prepare follows below, along with sources..
following details how US is by far the most hopelessly bankrupt nation ever.
Since you’re still here, dear reader, you’ve likely noticed this site doesn’t read like MainSpin Media.
It’ll be too late for most once MSM start reporting the collapse – Uh-oh, looks like they’ve started! :
FDIC’s multi-$TRILLION dispute with the Federal Reserve over banks’ soundness
is a red flag NY Times Editorial Board couldn’t ignore: They sided with FDIC.
Has the NYTimes ever before declared Emperor Fed Has No Clothes!?
It’s a Wake-Up Call far too few Americans know how desperately they need:
FDIC’s Vice Chairman (a former Fed CEO) calls the Fed’s bluffing,
dares reveal the Fed is desperate to cover up how HOPELESSLY BANKRUPT BIG BANKS are.
Wall Street insiders know the banks are bust, but no one wants to be blamed for yelling fire.
The above links reveal: Just as Europe is floundering in an underwater banking system,
only accounting tricks Europe doesn’t allow make US megabanks / Wall Street look better.
Those properly informed know Wall Street is WORSE BANKRUPT now than in 2008,
only afloat on Fed emergency flotation – see below – that just repels global investors that much more, hence:
Megabank stocks remain in negative territory since 2000 (overall), the worst drag on US indices. details below
The UNPRECEDENTED WILD SWINGS in MARKETS this century, including oil’s sudden collapse,
repeated stock market bubbles and collapses, multiple abrupt currency shifts, the SubPrime crisis, etc.:
All are symptoms of a System Out of Control like a wildly gyrating helicopter on its way to oblivion.
– For the 95% that is: See below how 1% will clean up, lick their chops all the way to their treasuries. –
Stock traders celebrating when the Fed cuts or maintains unheard-of low rates is just one
of numerous examples of market dysfunctions never seen before, each the opposite of healthy norms.
Most crucially: Global Investors/Lenders Know the US of A
Is by Multiple Times the Most Hopelessly Bankrupt Nation Ever
That’s Why US central bank, the Fed, had to become Dreaded Lender of Last Resort in 2008:
first to conjure $Trillions of dollar flotation out of nothing into Wall Street’s doomed hulls,
then $Trillions more for Debt Addict Uncle
Sam Shame’s outta-control Spending/Borrowing Spree
because Lenders/Investors Lost Their Appetite for:
Uncle Shame’s Debt, now over Thirteen $TRILLION!
= $40,000 per person – including children and elderly! – and SOARING!
It’s exploded more than two-and-a-half times in just seven years,
Uncle Shame’s WORST DEBT BINGE EVER by far! :
* = Congress’ Budget Office projection of Total Federal Debt¹
¹ = US Treasuries (outstanding:
not including future obligations!)
for Next Decade, as of March 2015
² “Quantitative Easing” (QE) is Fed-speak, how the Fed desperately tries to spin being forced
to become dreaded Lender of Last Resort, conjuring Emergency Dollar Flotation out of nothing
into the doomed hulls of US Economy, especially Uncle Shame’s plus megabanks’ hulls,
at best delaying the inevitable, in reality sinking everything worse (except for the 1% – see below ³).
The above “technical details” link also exposes several more examples of Fed tyranny.
* Catastrophic as - - CBO’s projection appears: Uncle Shame DEBT SHOOTING almost STRAIGHT UP
next ten years, that horror is based on ludicrous predictions GDP and tax receipts will almost DOUBLE by
then, to two-thirds greater – despite estimating US population to grow by only ONE-SIXTH as much, just 10%!
And despite WAGES GROWING BARELY 20% over the last FIFTEEN YEARS! (details below)
= CBO is full of Debt Addict Delusions like virtually all other Americans!
– if not deliberately spinning wool to cover sheople’s eyes.
The Federal Reserve had to become dreaded Lender of Last Resort because
Global Investors/Lenders Have Fled Uncle Shame’s Debt Addict Delusions:
The graph above reveals lenders stopped advancing any more to Uncle Shame years ago;
at times they’ve even dumped hundreds of $Billions the Fed had to step in and mop up. more below
So Who Will Loan Uncle Shame Nearly Double What He Owes Now over the next decade?
..the equivalent of well over one $Thousand per every human being on Earth!
– especially since US is already in the hole nearly TWO $Thousand per human being, right now! Hence:
Which of Uncle Shame’s Current Creditors Will Hang On to the Most Doomed Loans Ever?
It’s obvious US Federal Government Has Hit End of the Line!
= Cuts to Federal Programs Dead Ahead far more than anyone can see.
And God only knows how much higher taxes will soar.
³ Things just keep getting ever better for the 1%, especially via US dollars, their age-old debt money
“Scheme for the Confiscation of Wealth”* ever transferring wealth from the many to the few:
Hence, since 1971 when dollars became puredee debt money for the first time – when the US was
by far the greatest middle class society of all time, a majority of the population owning a majority
of the nation’s assets – otherwise unheard-of in world history –
the US has now reverted to age-old SERFDOM:
now 1% OWN MORE WEALTH than 95% combined! (references below)
As in the Great Depression, the SubPrime meltdown, and all other catastrophes: the rich get richer
at everyone else’s expense: the Great Depression created more wealthy than any other era.*
Only the uninformed would bet that record will survive the next few years’ GREAT UNWIND of the
present utterly unprecedented financial crime spree, plus DEBT COLOSSUS GIGANTICUS MAXIMUS.
*With much of the country available at fire-sale prices, the few left standing cleaned up, by hook or by Crook.
Most tragically: The vast majority of Americans have no idea the Fed
is just performing the primary function of all central banks:
Just as 95+% have continued to lose ever more wealth to the 1% since 2008,
the primary function of a central bank debt money system is transferring ever more wealth
from the many to the few, what Greenspan decried as a “Scheme for the Confiscation of Wealth”
– in his youth before he sold out to become the worst Confiscator of all time. details below
– See below how investor flight forced the Fed to start QE2 months before the public announcement.
Plus how US was able, then fell for the trap of piling ever higher by far the worst debt mountain ever. –
It Gets Lots Worse: Per WORKER, Uncle Shame’s Debt is more than Double the above $40K figure:
Since workers make most debt payments, both their own, plus others’ indirectly when they buy goods
and services (companies obviously have to pay their taxes and debts out of what they receive from customers,
plus their workers pay their own taxes and debts via their salaries),
plus less than half the population works.. thus:
Just Uncle Shame’s outstanding Debt Burden averages nearly $100,000 on EACH WORKER’s back.
– That’s on top of the $Trillions of taxes Uncle Shame guzzles each year
to fund ongoing spending, of course.
It’s also obvious each worker’s average share of Uncle Shame’s outstanding debt does not include
how much each owes on personal debts, any mortgage(s), plus the worker’s share of state and
local government debts, plus CorpoRape debt and tax payments included in prices of goods and services.
But The Full Reality is Lots Worse:
As reported in detail on this page, counting all public and private sector debts and obligations:
Economists’ argue whether All US Debts currently plus Future Obligations are closer to
ONE or TWO $MILLION PER WORKER: That’s either more than half or
MORE THAN the average worker’s TOTAL GROSS LIFETIME EARNINGS.
I.e: Just the PRINCIPAL of ALL US DEBT OBLIGATIONS approaches if not exceeds
the GROSS LIFETIME EARNINGS of ALL WORKERS,
Leaving Them with Little to Nothing to Pay for Their and any Dependents’ Personal Needs
including shelter, food, clothing, whatever..
nor to pay taxes to cover current government services,
much less interest on hundreds of $Trillions of debt!
No other Nation Ever has been anywhere close to so Hopelessly Buried in Debt.4
The world’s investors/lenders are not stupid, and they’re far from blind.
They know the ENTIRE US ECONOMY is hopelessly buried in
by MULTIPLE TIMES the DEEPEST BOTTOMLESS TOXIC DEBT CESSPOOL of ALL TIME.
That’s why they stopped lending to hopelessly bankrupt Uncle Shame years ago,
US private sector years before that, and are now fleeing US assets including stocks and bonds.
= FLAME OUT !
Can You Hear TIMBER!!! echoing off every American Wall and Rooftop?
Federal Reserve Policy demonstrates the Fed Itself Is Preparing for the Meltdown:
In addition to untold $TRILLIONS the Fed conjured onto bank balance sheets
since 2008 to slow the foundering of megabanks plus Uncle Shame,
The Fed also Made Banks Increase their Reserves on Deposit with the Fed by FIFTEEN TIMES!
In case not obvious: Banks are required to have “reserves” as insurance against catastrophe.
Record Outflows, GLOBAL INVESTORS DUMPING $TRILLIONS of US STOCKS so far this year
signal the Feller’s Axe has finished notching America’s Trunk,
the Long Journey Earthward Back to Reality Has Begun!
4 see below how US got away with digging itself into deepest hole of all time
Few will ever catch on all is going to plan: As in all previous crashes, like vultures gorging on corpses,
especially the 0.01% will greatly enrich themselves by buying up pretty much rest of the world
they don’t already own at fire-sale prices, once they hit bottom sometime in next few years or so.
Deliberately and horribly misinformed by the criminal class dictating MainSpin Media
and unknowingly hooked on debt addict wishful thinking, Americans
understandably want to believe the worst of the financial crisis is past – or at least things will muddle
along as they have recent decades, seemingly getting better over time, recovering from missteps.
As in all previous downturns and economic collapses:
Only FAR TOO LATE will most Americans catch on how doomed this nation, its economy,
and the lifestyles they’re accustomed to are.. hence:
will miss ultra-golden opportunities to save whatever wealth they have from annihilation.
Tragically few Americans have any idea how hard CorpoRape America = the 0.1% and their MSM
work at brainwashing and misleading 95+%, practice ways of domination/exploitation/tyranny
developed over millennia, as endless evidence attests.
This site shares combined decades of research by numerous contributors
who collectively have more than a century of experience in banking, business, and investing,
who’ve also sought the views of the world’s most senior and
most successful investors, including via personal contact and consultations. details below
We are mostly retired baby boomers especially fortunate in grasping
how to read and gauge economic trends. We foresaw both the Dot-com and SubPrime bubbles
years before their peaks: the tragically few who heeded our warnings avoided disaster.
Before concluding with the Most Proven Ways to Prepare for the catastrophe
barreling toward everyone at warp speed,
a few general perspectives and observations seem appropriate:
It’s now a decade since the US home market peaked; while prices in a couple high-end markets
have recovered to or above that peak, averaged in with the rest of the country,
US home prices overall still remain well below the peak,
in most places still lots to far below on average – Again: On average,
US homes have lost nearly 80% of their value compared to prices overall, as demonstrated below.
The percentage of Americans with a job still continues to fall, and the younger the harder it is to find one.*
College graduates desperate for a job are working up to years for free in hopes of getting hired.
Household formation has collapsed because too few millennials can afford to live away from parents.
*click for statistics revealing Baby Boomers are unable to retire,
are not at all the reason for falling employment, the lie 1% cons spin.
Most horrifically, basic living costs like food and gas multiplied nearly
to more than four times since 2000, but wage growth collapsed:
For most, HOUSEHOLD INCOME grew LESS THAN 25%! see below
meaning Living Costs Exploded Ten to Twelve Times Higher than INCOMES!
No wonder Americans launched an unprecedented debt binge: cash-out refinancings helped keep lights on!
Consumables prices like gas and food exploding higher despite stagnant wages and real estate values
reflect a collapsing economy forced to import ever more of its needs
while the world adjusts to the collapse by demanding ever more imploding dollars
for its products from ever more hopelessly bankrupt Americans.
Trying to educate others about this disaster taught this site’s authors many Americans are unable to grasp
such big-picture data adequately, tragically rely on prevailing sentiment in investment decisions,
ever get sucked in as prices bubble, then sell when prices inevitably bottom,
opposite the Number One Rule of investing:
Tragically most just dismiss our efforts as “pessimism,” or paranoia.
Perhaps many of these dismissers also employ denial to avoid facing fearful prospects.
Denial is an enemy addicts of every sort either allow to rule them or work at resisting.
Anyone willing to face the facts cannot avoid noticing the US is by far the most debt-addicted nation ever..
Horrible, terrifying as it is, there’s no escaping the fact
The United States is by multiple times
the MOST HOPELESSLY BANKRUPT NATION EVER!
Further details and links to references on all such realities Americans desperately need to learn follow below.
It’s heart-wrenching to observe doomed Americans
shuffling along in what it’s nearly if not too late to notice are slaughter chutes,
oblivious how, for example, Asians and their Central Banks caught on years ago, since then dumped
$Trillions of US debt, dollars and other US assets.. and bought lots of GOLD –
lots Europeans as well: 1% and especially 0.01% worldwide. more below
Virtually everywhere in this nation one encounters wishful and simplistic thinking regarding
economics and finance, Americans floundering in oceans of denial as with every sort of addiction.
Few may ever catch on the 1% make sure MainSpin Media spread endless fogs
to prevent Americans noticing the trap,
as numerous examples on this plus linked pages attest.
This site welcomes and encourages questions and all input, feedback; we strive to respond best we can.
Comments, especially flames, plus questions have greatly helped us refine these efforts.
Our sole motivation is trying to fulfill our duty to inform and warn our fellow Americans.
Most crucial to protecting a nest egg is comprehending this graph of
Major Asset Classes’ Increases in Price This Century
demonstrating most assets Failed Miserably to keep up with the Dollar’s Loss of Purchasing Power,
as evident especially compared to Food and Gasoline Prices (brown and lemon -colored bars).
*Case-Shiller home price index; data sources
†Both oil and gas prices were up about 300% before the price collapse since Fall last year:
Prayers to anyone believing oil and gas prices won’t recover, then head God-only-knows how high. see below
The above graph demonstrates the three major asset classes, real estate, stocks, and bonds,
all fell in VALUE from 75 to 95% this century compared to what most spend most of their wages on.
And, as ever, gold held its value, for universal reasons discussed at the link below the graph
and briefly in the conclusion of this page.
The graph demonstrates:
Anyone whose net wealth did not grow at least 300% since 2000
suffered a decrease in wealth: Their nest egg shrank in purchasing power,
the only measure that matters, the most crucial by far.
300% over fifteen years is right at 10% annual increase on average,
by multiple times the highest, worst rate of price increases in US history,
due to a dollar’s purchasing power collapsing (what banksters spin as “inflation.”)
(A 300% gain means the price multiplied by four times, e.g, from $1 to $4: gain is 4 − 1 = 3)
Most astounding is:
HOUSEHOLD INCOME VIRTUALLY STOPPED GROWING this century for most,*
despite unprecedented explosions in prices for consumables!
Food and petroleum prices exploded ten to twelve times higher than wages*!
*“INCOMES” in the graph above is Median Household Income
(24% growth over fourteen years is only about 1½% per year on average, but
the Income link shows wages actually decreased after 2006, then gained little since)
Hence: A major reason for this century’s debt binge is doomed attempts to compensate as
Wages/Income collapsed roughly TEN TIMES in PURCHASING POWER / VALUE!
not least due to ever more high-paying manufacturing and tech jobs exported overseas:
Americans are crashing against a far more competitive global job market than ever.
The horrific, unprecedented collapse in Americans’ incomes are a colossal deadweight on asset prices!
Once interest rates and lending standards return to
normal – most likely far tighter than before! :
US housing will collapse much closer to worthless than present bubble prices
driven out of this world by utterly unheard-of low interest rates.
Rents are also at all-time highs, less affordable than ever on average,
putting further downward pressure on home VALUES since rents will have to adjust downward.
Hence: Tens of millions more property owners are headed underwater, right into the jaws of
by far the worst bankster/shark feeding frenzy of all time dead ahead.
The above asset price differences are crucial to understanding how best to prepare ones nest egg
to survive the imminent terminal disintegration of by far the worst debt bubble economy ever.
Most Americans need to learn (or recall) what their ancestors grasped up to millennia ago:
how crucial it is to distinguish price and VALUE, as the above graph demonstrates: Although the
big three asset classes have gained up to 3% annually since 2000 in PRICE, on average, such gains
equate to nearly 80 to 95% LOSS IN VALUE!
compared to what most spend most of their income on, including food and petroleum products.
For example, per the above graph, US home prices have increased 70% on average since 2000,
while food costs increased by more than four times as much:
= home prices increased less than 25% as much as food prices:
One can thus see the average US home has lost 77% of its VALUE compared to food since 2000.
Per the above graph, NASDAQ stocks have lost 95% of their value! (15/300 = 5%)
7 Sep: Stocks are even worse now: the above figures are from months ago before recent market drop.
Plus home sales have slowed as realities continue popping by far history’s worst asset price bubbles:
All these unprecedented bubbles make US assets far more overpriced than ever before
compared to economic fundamentals:
Again: With incomes imploding compared to costs of living,
US home prices must fall further, at least in relationship to other costs of living.
And US bonds, plus stocks, especially those in the Russell 2000 index with most of their sales in the US
are threatened like never before, not least by interest rates with nowhere to go but up. more below
Home prices are an obvious example how Americans forgot one needs to consider purchasing power:
In the 1970’s there was nationwide outrage and strikes fueled by rising prices because
most Americans understood purchasing power is what matters.
Exploding prices at multiple times worse rates this century than the 1970’s
have elicited not even one whimper from clueless Americans.
It took MainSpin Media less than two generations to put Americans to sleep how
rising prices in a debt money system transfer wealth from the many to the few:
as Greenspan decried in his youth before he sold out to become the worst debt money Maestro ever.
Hence: Wherever this site mentions an asset going up or down, that refers to VALUE, not price!
What economists call purchasing power.
God only knows what prices will do over the next few to several years,
whether shoot for the moon, what banksters spin as “hyperinflate,”
or head down the toilet and out to sea: “deflate”* – or both!
For sure most US-based assets are headed further if not LOTS FURTHER DOWN in VALUE
back down off by FAR the most out-of-this-world bubbles of all time
to God-only-knows how far below reality lies.
A basic yardstick of value is how much something costs
as discussed in considerable detail in this concluding section.
in relationship to an individual’s income and other means.
With virtually all Americans buried in by far the deepest debt trap of all time,
prices were blown WAY beyond reason, since debt burdens as a percent of income
are at by far unheard-of, all-time record levels.
There’s lots more tragically few Americans have any idea they need to know;
EConRealities.org provides many more crucial details.
For those not intimidated by more sophisticated economic analysis, an excellent resource is
Congressional expert economist John Williams’ ShadowStats site.
His latest “HyperInflation” disclosures and predictions are available without charge.
For those fortunate to notice how hopelessly bankrupt US is in virtually every sector,
nook, and cranny, multiple times worse than any nation ever before,
the main question is:
How Best to Prepare?:
Numerous sites provide wisdom and good advice on everything from fortress homes to self-sufficiency.
Some, of course, who sense this nation’s hopeless bankruptcy succumb to extremes.
One of if not the most level-headed and comprehensive resource is Peak Prosperity.*
The next few to several chaotic years will provide endless opportunities to practice
Rudyard Kipling’s timeless advice: “If you can keep your head when all about you
are losing theirs and blaming it on you…” Etc.
This page and EConRealities.org primarily strive to share how best to conserve ones nest egg
based on collectively centuries of experience with investing and running businesses behind this site,
plus advice and insights from numerous of the world’s most successful investing pros. details below
Since the entire US debt-mountain economy is threatened like never before,
most any and every US asset is maximally risky, including US real estate,
plus securities, including bonds of every sort, and stocks, especially those with mostly US sales.
Utterly unheard-of low interest rates and maximally unrestrained lending inflated by far the worst bubble(s)
of all time, over-inflating all three major asset classes simultaneously: stocks, bonds, and real estate.
Only once at least a large majority of the outta-this-world debt mountain excesses
get purged via the rapidly-approaching economic implosion finale
will it become possible to gauge a reasonable value of any US asset.
*One can thus notice this site eschews essentially all current schools of economic theory:
collective centuries of experience in business and investing taught us to pay attention to realities
like balance sheets and account ledgers rather than theorizing and complex equations.
Banksters especially don’t want sheople noticing their debt money scheme* for transferring wealth
from the many to the few is based on what they spin as “inflation” destroying purchasing power, most
crucially that of outstanding debt, the *top-secret device in plain sight
automagically, effortlessly making the rich ever richer.
Fuller perspectives on REAL ESTATE follow these re:
Securities are unprecedentedly at risk: both stocks and bonds priced for perfection, as unheard-of minuscule
interest rates make bonds more expensive than ever, plus goose stocks to record bubble valuations, an
unprecedented reckless bubble era since 2000: E.g: Investors have now borrowed nearly FIVE TIMES
MORE than ever before, now HALF a $TRILLION* riding on risky margin BETS on STOCKS:
*Feb 2015 ¹
¹ not including
foreign investors’ bets
This graph vividly demonstrates three unprecedented stock bubbles since 2000 driven by
throwing millennia of caution to the wind after Washington discarded New Deal safeguards in 1999..
that also freed banksters to blow the Subprime bubble, destroying homeownership for millions of families
– and God only knows how many millions more dead ahead in the GREAT UNWIND / collapse.
The horizontal dashed line above was a debt level considered beyond reasonable last century, then flipped to
being a floor most everyone wished to avoid in the headless stampedes chasing dreams of quick and easy wealth.
Ever before, stocks and bonds have moved opposite, so one market is usually in a rising price “bull” phase
when the other is falling (like a “bear” disappearing to hibernate).
Stocks and bonds thus provided a counterweight to each other for those who diversified into both.
That heretofore balanced, at least partial safety net is long Gone with the Wind,
at least for the foreseeable future:
With both STOCKS and BONDS at or above ALL-TIME record highs (overall),
virtually ALL US SECURITIES (paper assets in general) have nowhere to go but DOWN
– at least in VALUE, if not price as well.
(Sooner or later prices are most likely to fall if not collapse as well.)
Western nations plus many others elsewhere face similar but less dire securities threats, if not catastrophes.
Most other nations have raced to follow US’ headlong mad dash to oblivion –
that is: an unprecedented global stampede to transfer wealth to the 1% from everyone else. more below
Stocks most at risk are companies obtaining most of their earnings from US sales,
including those in the Russell 2000 index.
Record flight from US stocks this year (noted above) as investors seek safety elsewhere,
along with loss of momentum for a year and more now, especially the Russell 2000 and megabanks,
now joined by Dow Transports this year (link is to graph of all three indices)
are bright red, loudly blaring disaster signals,
not least because these three have been the most reliable bellwethers,* especially this century.
*please note a bellwether is most useful predicting foul weather, not just good (bell)
Since most Americans have no idea Wall Street conspired to fleece them by enticing them
into investing while saturating the culture with inadequate to deliberately predatory advice,
most get suckered into then fleeced by market swings, as the last four decades demonstrated repeatedly,
not least the recent horrendous SubPrime Crime wave, and the Dot-Com bubble collapse.
Four decades ago only about 3% of the population had a brokerage account,
and the only bonds most Americans knew were US Savings Bonds.
Ever since, tens of millions of Americans duped into thinking
they have a decent chance in the Great White Shark Tank of securities
repeatedly got suckered into buying near or at the top, then sold at the bottom,
ever transferring ever more wealth from themselves to the sharks, especially the 1% and up..
by buying doomed stocks from the Smart Money folks selling at the top,
then selling back to the Smart Money buying at the bottom, thereby incurring maximum losses –
= maximum gains for the 1%.
Wall Street pros deride the masses as “retail investors;”
It’s amazing how few Americans can recite even one basic rule of investing.
Perhaps a more just society would tattoo the back of a hand of every unproven investor with: Buy low!
Similarly, Wall Street cultivates the Warren Buffett myth for all its worth: While Buffett undoubtedly
honed his skills over the decades, he had a huge head start as a child of Goldman Sachs!
Plus illegal insider tips and info are probably less rare than whisky during Prohibition.*
But all that’s kinda moot now since the mother of all bubbles is
about to complete reverting Americans to modern serfs, as well-informed honest experts acknowledge.
*when whisky was FAR from rare
Again: The overall effect of the financial sector since 1971 is dismantling what was then by far the
greatest middle class society of all time, when a majority of the population owned a majority of the assets,
otherwise unknown throughout history.. by engineering the transfer of
most wealth from the many to the wealthiest, who now own more than 95% of the rest combined. see ¹ at bottom
The vast majority of Americans still have no idea they are on the verge of losing pretty much
all of the little bit of net wealth they’re still left with presently.
Advice how best to conserve wealth during the impending chaos follows this section on real estate.
Just as securities are goosed out of this world like never before,
Real Estate is also headed for by far its worst catastrophe of all time.
While the unprecedented over-the-moon debt mountain goosed by unheard-of interest rates
blew all-time-record stock and bond bubbles,
The HOUSING BUBBLE makes the other two look more like ant hills:
US housing was goosed by DOZENS of $TRILLIONS of mortgages
plus bets on the mortgages called derivatives (MBS)
= by far the most WILDLY RECKLESS DEBT ORGY of ALL TIME!
Tens if not a Hundred Million more Homeowners are HEADED UNDERWATER,
many if not most hopelessly, especially those with a variable rate lien, as
the IMPLODING DEBT MOUNTAIN SHOOTS INTEREST RATES GOD ONLY KNOWS HOW HIGH.
Again, price is not what matters, rather VALUE:
as the above graph of asset classes demonstrated:
US homes overall have LOST around 80% in VALUE since 2000.
Anyone who’s home (or series of homes) has not multiplied by at least four times in price* since 2000
has experienced a LOSS of wealth in their home.
* = 300% increase
Since virtually the only economic force driving home prices upward was the over-the-top mortgage orgy,
home VALUES are hopelessly doomed for the foreseeable future in the US.
Tragically few will catch on in time: The window to unload such albatrosses is closing rapidly,
quite possibly if not very likely before end of this Summer, perhaps next month the way investors
are fleeing US stocks now! Even unstoppable Miami is at risk in
this heretofore utterly unimaginable global financial bubble, the US debt mountain colossus at ground zero.
Many if not a majority of American homeowners are doomed via believing their castle(s) invulnerable.
Only too late will most learn this nation’s unheard-of miracle of widespread homeownership
is at most barely upright on its last bleeding stump.
Many if not most who hang onto housing believing things will improve will get crushed:
Collapsing rents as the economy collapses will drag all housing down just by itself.
Even if owners survive these imminent years if not decades of pain, home
VALUES are unlikely to increase for God only knows how long, particularly as Baby Boomers retire, plus
millennials are even less likely to reproduce during the next few to many years of chaos and uncertainty;
they are already a drag on homes because they’re forming lots fewer households than previous generations
not least due to rents and mortgage payments being more unaffordable than ever.
The outlook for US housing has never been more bleak, putting it far too mildly.
In the utterly uncharted waters US is presently foundering in, it’s anyone’s guess how much
prices may go up or down or change little. Only those have a chance of maintaining wealth
who understand sticker price is not what brings home the bacon! Nor falafel. Again:
Only those have a chance of doing well who weigh the true VALUE of assets (e.g, purchasing power).
Although home prices have recovered somewhat in some regions, expecting housing to be a good investment
in by far the most hopelessly bankrupt nation of all time is a fool’s bet.
Although central and other banksters have been caught repeatedly on record execrating gold
as their “Enemy Number One” it has been for generations (actually millennia),
only rare Americans have any idea how furiously the 1% have worked since even before
the Constitutional Convention to brainwash Americans to despise by far
the world’s favorite safe haven
– what it’s been ever since debt money was invented millennia ago.
Global Market Realities demonstrate
Gold’s the method of savings the great majority of humanity cherishes most.
All market realities dispel and eradicate banksters’ ubiquitous smokescreens, lies, cons, and BS
they ever disseminate widely as possible to blind especially Americans to gold —
deny however one will.
A succinct yet comprehensive overview of gold realities is accessible via the second link below.
Americans convinced gold is a “barbarous relic” and worse have no idea they’re betting
against millennia of investing habits the great majority of humanity still practices currently.
It’s rather long odds betting on a few hundred million debt-addicted Americans vs. many billions.
Plus: Any American giving even a nanosecond of attention to a Wall Streeter or any other bankster
after they robbed $Trillions of wealth from the 95% via the worst financial crime spree of all time
Washington and fifty states absolutely refused to prosecute
needs immediate commitment to an asylum PERIOD*
Many millions have no idea what a better fate that would be than what’s dead ahead.
*Yeah, OK, that’s an exaggeration.. But.. – Oh, what a world! Ultra-max locked
psych wards are where the criminals running this country for far too long belong.
As noted above, dozens of nations experienced a currency and economy collapse the past century:
In every case gold provided by far the most accessible, handy and effective lifeboat.
The world’s wealthiest, most sophisticated investors
always own gold as a substantial to major part of their portfolios.
– Hmmm, then why do the banksters they own try to convince everyone it’s a barbarous relic?
Could that Scheme for the Confiscation of Wealth be relevant here?
Cons do hate their marks catchin’ on to reality!
A common rule of thumb among European family dynasties, especially those a millennium or older,
is “a third, a third, a third:”
One third real estate, one third art treasures, one third gold.
As the worst real estate bubble of all time breathes its last..
For most Americans currently, only the last of the three thirds above is practical and available:
Since few Americans own real estate free of liens or mortgages or any other encumbrances,
millions if not most owners’ properties are threatened, many if not most severely so.
Gold also has privacy advantages real estate lacks.
A rather thorough overview of gold’s global market realities was linked above, and here,
including links to numerous global authorities and institutions.
Tragically, most Americans won’t catch on gold’s the way to go until far too late.
As with dozens of real estate crashes, financial panics and depressions in the past,
tragically few will catch on in time to protect themselves.
¹ Official plus other reliable sources of catastrophic statistics listed at top,
including collapsing workforce, US home prices, and real wages,
are available at EConRealities.org (where this page is hosted).
The above link also mentions the landmark study of nearly 2,000 major policy decisions recent decades
Princeton and Northwestern Universities compared with the majority of Americans’ preferences,
revealing the majority’s preference lost virtually every time. Their unavoidable conclusion:
“The United States Is No Longer a Democracy.”
Iceland, however, is waking up, especially in considering wrenching money creation/domination
back out of banksters’ hands, its government seeking healthier, less tyrannical monetary ways,
with recent heads of Bank of England* and UK’s Financial Services Authority leading these efforts!
*UK’s central bank
Americans went to sleep after the 1970’s price shocks, forgot colonists understood and fought
against the puredee debt money monetary regime Nixon imposed, what no less than Greenspan decried as
a “Scheme for the Confiscation of Wealth,”
what the last four decades demonstrate in spades:
In 1971 US was the greatest middle class society of all time,
but now 1% own more wealth than 95% combined!
Plus Americans have no idea the 1% are about to clean up pretty much the rest in the impending disasters.
95% act as if they trust Washington and Wall Street to take care of them.
They’re about to get taken care of all right, finish getting taken to the cleaners gangster style!
Wolves in sheep’s clothing is no myth.
Those who persevere to full understanding, whose comprehension succeeds at penetrating
banksters’ endless fogs know Americans are hopelessly confused regarding wealth and debt,
far too many fall for the trap of confusing credit-worthiness and wealth. These more theoretical
but profoundly crucial issues are discussed on this page: Master Fraudsters of Phantom Wealth.
Nitty-Gritty how Fed was forced to become dreaded Lender of Last Resort
making clear why Fed spins its Desperate Measures as Quantitative Easing
plus additional nitty-gritties
The Fed was forced to start conjuring dollars out of nothing to take on US debt when global investors began fleeing
Treasuries in 2010. The Fed held at least two top-secret* crisis meetings (FOMC) before announcing QE2 in November.
By then US Treasury Dept. and the Fed had canvased ¹ major Treasury investors worldwide, thus were able to estimate the
shortfall through the first half of 2011. The Fed actually began unprecedented emergency US Treasury purchases in August
when investors started dumping. During QE2’s eleven months the Fed took on nearly a $Trillion of Uncle Shame’s debt
cravings, including hundreds of $Billions global investors fled, plus over half a $Trillion more Uncle Shame needed
to keep the lights on the first half of 2011. The last month, June, the Fed took on over 80 $Billion investors dumped (net overall),
for a total of right at 100 $Billion including Uncle Shame’s insatiable need for ever more, as evident in the first graph on this
page also linked above.
* “unscheduled” = only revealed publicly long afterward
The Fed was able to let off the gas a bit that summer only because the European banking crisis shifted into hyper mode,
thereby leaving investors with fewer alternatives to US Treasuries which thus started looking less rotten in comparison.
Again, as the graph of Uncle Shame’s debt near the top of this page makes clear, the Fed has advanced Washington
virtually all the additional debt addict fixes Uncle Shame has needed ever since: Investors want no more,
and God only knows how many months if any before they head for the exits for years (if not forever: see especially
conclusions of this page for a peek at how the global Crooks in Charge aim to establish their “New World Order”).
¹Both Fed and US Treasury also receive advance notice from the Primary Dealers of US debt (Treasuries)
when investors begin losing their appetite for enabling Uncle Shame’s debt addiction.
The Treasury Secretary’s most crucial job is cultivating lenders/suckers, both seeking new ones and placating those already hooked!
A vivid example of debt addict maximus Uncle Shame’s desperation for loans was Washington pulling out all the stops when
its Lender No. 1 flew into town some years back: Numerous dignitaries joined military dressed in full honor guard
welcoming mode, US military band jubilating as the Lender stepped out of his jumbo jet after landing at Joint Base Andrews.
Countless examples of the Lenders’ national flag lined Washington’s streets as the Lenders’ grand procession rode into D.C.
where multiple of his flags festooned each federal government building. This most welcome, most desperately desired visitor
was treated to feastings maximus including rare Presidential plus Vice-Presidential State Dinners.
Leaders of Congress also stopped everything to make him welcome in the nation’s capitol building.
Although MainSpin Media don’t dare mention this most cherished visitor’s nation is now by far the world’s largest economy,
Washington made clear it’s maximally dependent on the nation whose leader it so enthusiastically, wholeheartedly welcomed:
Hu Jin Tao, President of China.
The simple truth perhaps few if any of the Washington bimbo squad know is Hu couldn’t care less about the somewhat
over a $Trillion of US debt his nation held onto since last century: China conducted a stealth devaluation of her currency this
century by letting wages and prices multiply, thus diminishing the value to Her of that pile of US debt by at least 80 if not >90%.
Hu, however, may have appreciated Washington’s tacit acknowledgment what US MainSpin Media don’t dare mention: how
his nation is now by far the world’s largest and most powerful economy, and soon to be the most powerful financially as well
as the unprecedentedly bankrupt West discovers the bottom of reality far far below pervasive fantasies.
– Or maybe it already is: Quite a few Chinese characters these days on the list of the world’s largest banks.
Plus Hu and at least a few in Washington are acutely aware China’s astronomical tower of Treasuries, (about 10% of the total)
is a sword of Damocles hanging over Washington:
dumping as little as a percent or two of his hoard on the market would be quite an earthquake!
God only knows when Washington might catch up with China’s millennia of experience managing an empire.
Wall Street, however, knows the game well, deliberately helped engineer the bankrupting of the former Land of the Free:
The Bill of Rights was by FAR the worst catastrophe Old World wealth experienced since before history:
What?! No more Divine Right of Kings to lop off heads?!
The only reason the royals didn’t assemble a massive armada and put down the upstarts in North America two centuries ago
is revolutionary fervor broke out all over Europe: they were fighting on too many fronts simultaneously.
So they resorted to what Taoists first noticed two-and-a-half millennia ago: it’s far less expense and trouble
to destroy an enemy from within economically than militarily.
The next few years’ chaos as Americans finish reverting to serfdom are the culmination of two centuries of scheming:
not least protecting CorpoRape owners from personal liability; sneaking a debt money Federal Reserve system past Populists,
culminating in FDR’s mortal blow to Jeffersonians: outlawing gold.. the final coupe de grâce: Nixing the gold standard in 1971.
Wall Street then financed especially Chinese and other Asian factories to steal America’s high-paying manufacturing jobs,
greatly helping demolish the middle class.
While unbridled greed, that is, lust for power and domination are the obvious main motivations for converting Americans to
serfs, a likely further motivation for abandoning all caution this century, the greatest orgy ever of transferring wealth
from many to few, is preparing for Peak Oil, meaning the end of the era of cheap oil dead ahead as
the easy pickings of existing fields dry up, leaving only much more expensive sources like shale and deepwater to extract.
The greater ones wealth the less one will care how much jet or any other fuel costs.
The new innovation the world’s royalty have adopted since 1776 is avoiding any public show of being the true rulers in charge:
much better to groom the hungry and gullible who are talented at following orders to be front men/women, e.g:
perhaps some of those inside the beltway currently – assuming not all of them are consciously lying cons.
Most fortunate are those who know God’s in it for the long haul, why Shem created this Planet of Lessons
where we gain lessons, strengths and capacities to last all eternity –
sooner or later, depending how much one cares to study..
as discussed further especially in the conclusion of this page also linked above.
About this site
comments, questions welcome at above link
See below how Europeans are waking up, e.g: Recent heads of UK’s central bank and
Financial Services Authority support Iceland’s radical proposals
to wrench money creation/domination back out of banksters’ hands.