Rapture verdict ad 1
The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins
Lear Capital: The Best Source for Buying Gold & Precious Metal Investing

Recent Posts

Archives

Michael and Meranda's New Show

Michael & Meranda’s New Show

Food for liberty
Economic Collapse DVD The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

7 Signs That A Stock Market Peak Is Happening Right Now

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

Stock Market Crash - Public DomainIs this the end of the last great run for the U.S. stock market?  Are we witnessing classic “peaking behavior” that is similar to what occurred just before other major stock market crashes?  Throughout 2014 and for the early stages of 2015, stocks have been on quite a tear.  Even though the overall U.S. economy continues to be deeply troubled, we have seen the Dow, the S&P 500 and the Nasdaq set record after record.  But no bull market lasts forever – particularly one that has no relation to economic reality whatsoever.  This false bubble of financial prosperity has been enjoyable, and even I wish that it could last much longer.  But there comes a time when we all must face reality, and the cold, hard facts are telling us that this party is about to end.  The following are 7 signs that a stock market peak is happening right now…

#1 Just before a stock market crash, price/earnings ratios tend to spike, and that is precisely what we are witnessing.  The following commentary and chart come from Lance Roberts

The chart below shows Dr. Robert Shiller’s cyclically adjusted P/E ratio. The problem is that current valuations only appear cheap when compared to the peak in 2000. In order to put valuations into perspective, I have capped P/E’s at 30x trailing earnings. The dashed orange line measures 23x earnings which has been the level where secular bull markets have previously ended. I have noted the peak valuations in periods that have exceeded that 30x earnings.

markets are cheap - StreetTalkLive

At 27.85x current earning the markets are currently at valuation levels where previous bull markets have ended rather than continued. Furthermore, the markets have exceeded the pre-financial crisis peak of 27.65x earnings. If earnings continue to deteriorate, market valuations could rise rapidly even if prices remain stagnant.

#2 The average bull market lasts for approximately 3.8 years. The current bull market has already lasted for six years.

#3 The median total gain during a bull market is 101.5 percent.  For this bull market, it has been 213 percent.

#4 Usually before a stock market crash we see a divergence between the relative strength index and the stock market itself.  This happened prior to the bursting of the dotcom bubble, it happened prior to the crash of 2008, and it is happening again right now

The first technical warning sign that we should heed is marked by a significant divergence between the relative strength index (RSI) and the market itself. This is noted by a declining pattern of lower highs in the RSI as stocks continue to make higher highs, a sign that the market is “topping out”. In the late ‘90s this divergence persisted for many years as the tech bubble reached epic valuation levels. In 2007 this divergence lasted over a much shorter period (6 months) before the market finally peaked and succumbed to massive selling. With last month’s strong rally to new records, we now have a confirmed divergence between the long-term relative strength index and the market’s price action.

#5 In the past, peaks in margin debt have been very closely associated with stock market peaks.  The following chart comes from Doug Short, and I included it in a previous article

Margin Debt

#6 As I have discussed previously, we usually witness a spike in 10 year Treasury yields just about the time that the stock market is peaking right before a crash.

Well, according to Business Insider, we just saw the largest 5 week rate rally in two decades…

Lots of guys and gals went home this past weekend thinking about the implications of the recent rise in the 10-year Treasury bond’s yield.

Chris Kimble notes it was the biggest 5-week rate rally in twenty years!

#7 A lot of momentum indicators seem to be telling us that we are rapidly approaching a turning point for stocks.  For example, James Stack, the editor of InvesTech Research, says that the Coppock Guide is warning us of “an impending bear market on the not-too-distant horizon”

A momentum indicator dubbed the Coppock Guide, which serves as “a barometer of the market’s emotional state,” has also peaked, Stack says. The indicator, which, “tracks the ebb and flow of equity markets from one psychological extreme to another,” is also flashing a warning flag.

The Coppock Guide’s chart pattern is flashing a “double top,”  which suggests that “psychological excesses are present” and that “secondary momentum has peaked” in this bull market, according to Stack.

“All of this is just another reason for concern about an impending bear market on the not-too-distant horizon,” Stack writes.

So if we are to see a stock market crash soon, when will it happen?

Well, the truth is that nobody knows for certain.

It could happen this week, or it could be six months from now.

In fact, a whole lot of people are starting to point to the second half of 2015 as a danger zone.  For example, just consider the words of David Morgan

“Momentum is one indicator and the money supply. Also, when I made my forecast, there is a big seasonality, and part of it is strict analytical detail and part of it is being in this market for 40 years. I got a pretty good idea of what is going on out there and the feedback I get. . . . I’m in Europe, I’m in Asia, I’m in South America, I’m in Mexico, I’m in Canada; and so, I get a global feel, if you will, for what people are really thinking and really dealing with. It’s like a barometer reading, and I feel there are more and more tensions all the time and less and less solutions. It’s a fundamental take on how fed up people are on a global basis. Based on that, it seems to me as I said in the January issue of the Morgan Report, September is going to be the point where people have had it.”

Time will tell if Morgan was right.

But without a doubt, lots of economic warning signs are starting to pop up.

One that is particularly troubling is the decline in new orders for consumer goods.  This is something that Charles Hugh-Smith pointed out in one of his recent articles…

The financial news is astonishingly rosy: record trade surpluses in China, positive surprises in Europe, the best run of new jobs added to the U.S. economy since the go-go 1990s, and the gift that keeps on giving to consumers everywhere, low oil prices.

So if everything is so fantastic, why are new orders cratering? New orders are a snapshot of future demand, as opposed to current retail sales or orders that have been delivered.

Posted below is a chart that he included with his recent article.  As you can see, the only time things have been worse in recent decades was during the depths of the last financial crisis…

Charles Hugh-Smith New Orders

To me, it very much appears that time is running out for this bubble of false prosperity that we have been living in.

But what do you think?  Please feel free to contribute to the discussion by posting a comment below…

  • DesolateEarth

    I’m pretty sure we are nearing the apex of the final implosion of the stock market. Let’s just get it over with, people have had enough being treated as slaves. But martial law and emergency decrees will most likely be used against the general population as they regularly eat up the mainstream entertainment (propaganda) are not informed about what is happening behind the scenes. We are going to witness the greatest collapse of a civilization since the sack of Rome and the fall of Berlin.

    • ARF

      SO right you are!

    • USEDUP

      Thanks for the good article- I appreciate the facts presented by this site. I am allowed to make my own decisions. It is almost like watching two trains flying down the tracks and we are screaming for someone to stop. The number of people now awake and concerned would amaze most people. But the masses duck their head and focus on “American Idol” and sporting events for distraction. Prepare, work hard and pray to your God! Be a leader to others not a problem and burden to others.

    • kfilly

      It will hit the sheeple the hardest. They believe in the pied piper (the government), and they will blindly follow him off of the cliff. Our Founders fought to get us out of debt slavery. We were stupid enough to fall right back into it. I hate what this country has become. Let it crash.

      • Liberty First

        We have a chance to move to NZ, having lived in that region once before. If it comes through, despite hardships, we are taking it. Time go if possible. If not, at least we will not be surprised at what is going to happen.

        • Mike Smithy

          I don’t blame you one bit. Godspeed to you and yours Liberty.

          • Liberty First

            Thank you. Praying hard.

      • socalbeachdude

        Who a stock market crash will obviously hit the hardest are the people with the most assets in the stock markets and they will suffer tens of trillions of dollars of value losses from present levels. As to most other folks it won’t matter a hoot if the stock markets go to zero.

        • Mike

          The stock market doesn’t function in a vacuum. If the super rich lose a lot of money, they will have other money to fall back on. Those that can’t afford to participate in the stock market will have nothing but the GOVT to fall back on.

          • socalbeachdude

            If those folks don’t own stocks, then the price collapses in stocks have little to no affect on them at all.

      • socalbeachdude

        What we will see in the years ahead is simply an intensification of the GRAND GLOBAL DEPRESSION which began in August 2007, but by around 2040 to 2050 things will start looking a bit brighter in the US and globally.

        • ed

          Wish I could see where you are posting these days. Did someone harass you? Is that why you went private? If you are still chatting, please tell me what the recent Chinese downgrading of the Yuan means to the US. I know their exports will be cheaper for us, but please go deeper. How will this hurt the US?

    • Guest

      #ThePreppening

      seattletimes. co m / news /if-us-oil-storage-tanks-are-brimming-gas-prices-could-fall/

      US gov and its cronies are getting ready.

      • socalbeachdude

        Getting ready for what? Oil price bargains?

  • Dave

    I believe this crash will coincide with the dollar losing it’s supreme reign and as said this society essentially collapsing.The country cannot endure the stress put on it by the liberal agenda,and a stock market collapse,along with the dollar collapse.

    • ItIsWell

      I agree. China came out today with their own system to sidestep the dollar and its suppose to be ready this September. Russia is quickly doing so as well but that has been known for several months now. The world is dumping the dollar and war is on the horizon. I do hope I am wrong.

      • Mike Smithy

        Yes, I read the same thing. Perhaps the western central banksters will decide to implode this economic farce in late summer/early autumn 2015. However, they will need to orchestrate a spectacular false flag event in order to deflect culpability for their crimes.

        • socalbeachdude

          And exactly how would that in any way benefit any central bank? Hellllllloooooo?

      • TheLulzWarrior

        They should have done that years ago and so should have Russia but the Russian gov had been supportive of the dollar system and US economy for many years now.
        Back in 2004, fuel was cheaper in the US than in Russia despite Russian fed being the exporter.

      • socalbeachdude

        You must not be aware that China is the most egregious money printer in the world by far with their renminbi (RMB / yuan) and that they have increased their money supply from less than $3 trillion 10 years ago to over $25 trillion now and that their renminbi is largely pegged in value to the US dollar. Hellllllllllllllooooooooooooooo?

    • Liberty First

      SImply, but perfectly, stated. They have strangled us via their regulations, taxation, licensing, forced social agendas, coercive dismantling of our immigration laws, seizing the healthcare system, and much, much, more.

      • David R.(Canada)

        Do you ever get the feeling that it’s all part of a master-plan?

    • K2

      You ‘believe’ the dollar will collapse, huh? It takes a lot more collpases than the stock market, to collapse the dollar.

      • alan

        It will always be around as long as the constitution says so. It may have little value and hard to exchange overseas, but it will be here for a long time.

        • David R.(Canada)

          I wouldn’t be so sure. The US constitution does discuss money but I believe it says that money should be gold, not paper.

          • socalbeachdude

            The US Constitution says no such thing at all as respects the federal government and that provision that just relate to you comment APPLIES ON TO STATES and was put there to PREVENT STATES FROM CREATING THEIR OWN CURRENCIES;.

        • K2

          we was talking about the collapse, collapse as in its status as world reserve currency.

          • socalbeachdude

            Nope. The US dollar is becoming MORE IMPORTANT THAN EVER GLOBALLY.

          • K2

            so are you saying it wont collapse?

          • socalbeachdude

            The only question regarding the US dollar is HOW HIGH WILL IT SOAR?

            The US dollar is simply returning to NORMAL EQUILIBRIUM LEVELS where it should have remained all along. The US dollar should be in the 110 to 140 range on the DXY and will very likely return there and stay there for a long time. Back in 1985 the US dollar hit a high of 164 on the DXY and it could rise that far again, but likely won’t stay that high except briefly should that occur. Ideally, in my opinion, the value of the US dollar on the DXY should be right around 130.

            The Euro is now at a 12 YEAR LOW against the US dollar and has been plummeting for years. The Euro started out in 1999 (for banks) and in 2002 (publicly) at around €1 to $1 and has been as low as $0.82 and as high as $1.55 during the past 13 or so years of its short existence and it is now around $1.06 and will rapidly be headed back to 1:1 parity with the US dollar.

          • ed

            I have been waiting to ask a question that is somewhat on topic to your posts and have not found the best time to ask….so I am gonna ask anyway. 1. Do you think the USD will lose its status as the worlds reserve currency? If so when with that happen and what will the impact be on the average american?

            2. I read that CIPS came online recently to replace SWIFT with BRICS money to displace the dollar as the reserve currency. Please explain what you think about this.

          • K2

            So you are saying the dollar wont collapse if the stock market does?

          • socalbeachdude

            Why would the value of the dollar fall at all when the stock markets corrects substantially? Axiomatically THAT WOULD MAKE THE VALUE OF THE US DOLLAR RISE ENORMOUSLY IN PURCHASING POWER AGAINST STOCKS as it would take FAR FEWER US DOLLARS TO BUY TE VERY SAME STOCKS. Hellllooooooo?

          • K2

            Tell that to the people here who believe that.

          • socalbeachdude

            Huh? The value of the US dollar axiomatically goes up in purchasing power when the price of assets falls? Are you that incapable of doing math?

        • socalbeachdude

          Those assertions are utter nonsense, dude.

      • socalbeachdude

        The huge strength of the US dollar is the biggest factor now CAUSING THE STOCK MARKETS TO PLUNGE and that will be the primary trigger for the crash of 2015.

        • ed

          I have been waiting to ask a question that is somewhat on topic to your posts and have not found the best time to ask….so I am gonna ask anyway. 1. Do you think the USD will lose its status as the worlds reserve currency? If so when with that happen and what will the impact be on the average american?

          2. I read that CIPS came online recently to replace SWIFT with BRICS money to displace the dollar as the reserve currency. Please explain what you think about this.

          • socalbeachdude

            I just roll my eyes when I see any assertion that any other currency could even remotely begin to in any way challenge the US dollar in the foreseeable future.

            The US dollar comprises 63% of all global reserves and is used in more than 83% of all global transactions and is SOARING IN VALUE in both purchasing power and on the DXY where it is just shy of 100 at a new 12 year high today.

            The only 2 currencies even large enough to be widely used are the Euro and the Chinese renminbi (RMB / Yuan) and both have serve deficiencies and lack of any global presence.

            The Euro is now collapsing as expected against the US dollar and is now at $1.05 after being as high as $1.55 in 2011 and will soon be at parity with the US dollar and heading to perhaps as low as $0.82.

            China has been the most egregious money printing in the world and has increased the supply of the renminbi from less than $3 trillion a mere 10 years ago to over $25 trillion today while its economy is half the size of the US economy and the US money supply is only in the $10 trillion (M1) to $13 trillion (MZM) range.

            About the only reason that the renminbi hasn’t collapsed big time with all of China’s reckless and unprecedented money printing is that the value of the renminbi is largely pegged to the value of the US dollar with minimal float. China has no global banking presence at all and in the US only has a single branch of the PBOC in New York City with a very limited correspondent branch here in Los Angeles.

            Japan is the most insolvent country in the world with a government debt of 250% to GDP and the Yen is nothing but a joke. The Russian ruble just suffered plunges of around 50% in value earlier this year against the US dollar and other major currencies. Brazil’s real has plummeted and is continuing to plunge further as Brazil undergoes massive economic collapse.

            That takes care of the B, R, and C in BRIC and the I is for India, but there is zero chance of the Indian rupee ever having any global role.

            As to SWIFT, there’s nothing particularly special about SWIFT which is just an electronic financial communication system, and it doesn’t matter a hoot if there are other alternative electronic communications and transfer systems.

          • ed

            Thanks for your reply….I appreciate it. If CIPS is just another SWIFT then why would the Chinese go to the trouble of making an alternative to SWIFT? I know the Russians may be barred from SWIFT due to sanctions but they are not that important anyway. Why would the Chinese make CIPS? What would their motivation be?

            There are a lot of people that say this is the beginning of a shift away from the dollar as the reserve currency and you addressed that above. Any other parting thoughts on the dollar losing its reserve status or the stupidity of such a thought?

          • socalbeachdude

            SWIFT is just a banking / financial industries COMMUNICATIONS PROTOCOL and is quite crude and expensive to use and would benefit from a major redesign, not to mention that it is QUITE EXPENSIVE to use.

            Another and much better protocol is not only needed but highly desirable and CIPS is a step in the right direction towards achieving that thankfully due to Chinese innovation. Better, faster, and cheaper is a good thing!

            As to Russia and SWIFT, not only are they not “banned” but THEY HAVE BEEN INVITED TO NAME A DIRECTOR TO THE BOARD OF DIRECTORS OF SWIFT and are fully welcome in SWIFT as both a participating and government member.

            As to the US dollar, it is MORE IMPORTANT THAN EVER in the global financial system and comprises 63% of all reserves and is used in more than 83% of all global transactions and is the MOST DESIRABLE AND DESIRED CURRENCY IN THE WORLD which is why its exchange value on the DXY has now soared to over 100 today and is headed much higher.

          • Gay Veteran

            CIPS? certainly makes it easy to make payments using yuan

          • GSOB

            Can you make your font bigger and darker?
            Thanks

        • K2

          explain the link.

          • socalbeachdude

            Huh? What link are you talking about?

          • K2


            The huge strength of the US dollar is the biggest factor now CAUSING
            THE STOCK MARKETS TO PLUNGE and that will be the primary trigger for the
            crash of 2015.”

          • socalbeachdude

            That is not a link to anything but rather a statement by me. Hellloooooooo?

          • K2

            Then explain the statement.

          • socalbeachdude

            It is totally obviously on its face and needs no further “explanation” at all. Helllooooo?

    • alan

      The dollar will be around for a long long time. Now it might not buy anything but it will stay around. You may have some issues travelling abroad, you might need to get a fancy Red Chinese CHIPs card to pay for things and get a horrible exchange rate.

      • socalbeachdude

        The US dollar has been soaring both on the DXY and in purchasing power against nearly all of the world’s 27 major commodities for the past 4 years and is now at a 12 year high on the DXY and rising more rapidly than ever.

        As to China, are you not aware that the value of their currency the renminbi (RMB / yuan) is largely pegged to the US dollar and that China is by far the world’s most egregious money printer in the world and that they have increased their money supply from less than $3 trillion a mere 10 years ago to over $25 trillion in 2015?

        • Gay Veteran

          too bad the dollar’s purchasing power in the U.S. is going lower and lower

          • socalbeachdude

            The purchasing value of the US dollar has been SOARING UPWARDS against nearly all of the world’s 27 major commodities for the past 4 years and has risen by around 70% against gold and around 140% against silver and over 100% against oil.

          • Gay Veteran

            and how has the dollar done since 1913 when the Federal Reserve was created?
            the dollar is worth a small fraction of what it once was worth

          • socalbeachdude

            Over the past 100 years $20 of real money in US dollars put into a standard interest bearing savings account VASTLY OUTPERFORMED GOLD in appreciation. Moreover, at the end of 100 years, the earnings on that money aren’t subject to a 28% capital gains tax as is the case with collectibles that the IRS levies against gold.

          • socalbeachdude

            As to the value of the US dollar over the past 100 years…

            No, the dollar did NOT really lose 95% of its value since 1913

            Let us take at the period from 1913-2006, where we have complete data. So what do they mean, when they say the dollar lost 95.1% of its value in those 93 years? Essentially, an average good/service that cost $1 in 2006, used to be priced at 4.9 cents in 1913. In other words, the average price level of goods/services increased by 1930% since 1913. True, but guess what, average earned income increased by 6560% during the same time period. Average earned income rose from $740/yr in 1913 to $49,300/yr in 2006. Adjusting for inflation, $740/yr in 1913 is $15,000/yr in 2006 dollars. Average incomes, not only kept pace, but beat price inflation by 230%.

            So does it make any sense all to say the dollar lost value? In reality, the REAL purchasing power of the average American, has increased by 230% in the past century. Sure, prices were cheap in 1913, but $740/yr doesn’t buy you a whole lot, not anymore than 15,000/yr today.

          • Gay Veteran

            The American people know their standard of living is going down.

            you are such an apologist for the Federal Reserve.

            do you get paid by the word?

          • socalbeachdude

            The standard of living here in Beverly Hills and in the Hamptons and in all other fine parts of America has never been higher or more wonderful than it is today.

          • Gay Veteran

            you FINALLY spoke the truth! the banksters are enjoying their ill gotten gains in the Hamptons

          • Gay Veteran

            “… In 2008, for example, it took $21.57 to buy what $1 bought in 1913….”

          • socalbeachdude

            That all depended on WHAT you were buying. Many items have fallen dramatically in price, especially electronic goods.

            As to the value of the US dollar over the past 100 years…

            No, the dollar did NOT really lose 95% of its value since 1913

            Let us take at the period from 1913-2006, where we have complete data. So what do they mean, when they say the dollar lost 95.1% of its value in those 93 years? Essentially, an average good/service that cost $1 in 2006, used to be priced at 4.9 cents in 1913. In other words, the average price level of goods/services increased by 1930% since 1913. True, but guess what, average earned income increased by 6560% during the same time period. Average earned income rose from $740/yr in 1913 to $49,300/yr in 2006. Adjusting for inflation, $740/yr in 1913 is $15,000/yr in 2006 dollars. Average incomes, not only kept pace, but beat price inflation by 230%.

            So does it make any sense all to say the dollar lost value? In reality, the REAL purchasing power of the average American, has increased by 230% in the past century. Sure, prices were cheap in 1913, but $740/yr doesn’t buy you a whole lot, not anymore than 15,000/yr today.

          • Gay Veteran

            guess you think health insurance has fallen in price.
            the American people know their standard of living has FALLEN

          • socalbeachdude

            And how do wages / incomes compare from 1913 to 2015? Hellllooooooooo?

          • Gay Veteran

            helllllooooooooooo, the American people know their standard of living has fallen

          • socalbeachdude

            No, the dollar did NOT really lose 95% of its value since 1913

            Let us take at the period from 1913-2006, where we have complete data. So what do they mean, when they say the dollar lost 95.1% of its value in those 93 years? Essentially, an average good/service that cost $1 in 2006, used to be priced at 4.9 cents in 1913. In other words, the average price level of goods/services increased by 1930% since 1913. True, but guess what, average earned income increased by 6560% during the same time period. Average earned income rose from $740/yr in 1913 to $49,300/yr in 2006. Adjusting for inflation, $740/yr in 1913 is $15,000/yr in 2006 dollars. Average incomes, not only kept pace, but beat price inflation by 230%.

            So does it make any sense all to say the dollar lost value? In reality, the REAL purchasing power of the average American, has increased by 230% in the past century. Sure, prices were cheap in 1913, but $740/yr doesn’t buy you a whole lot, not anymore than 15,000/yr today.

          • Gay Veteran

            socalSHILL can try to confuse people all he wants but the American people know their standard of living has decreased

    • socalbeachdude

      Exactly the opposite, dude. One of the biggest factors – if no the biggest – that will cause a crash in equities values as we are seeing now is the SOARING VALUE OF THE US DOLLAR which is now just a tiny bit below 100 on the DXY at 12 year highs. This causes the earnings (profits) of nearly all of the major 76,000 or so publicly listed companies in the US to fall which is resulting in substantial plunges in share value on the equities (stock exchanges).

      Expect the US dollar to continuing SOARING UPWARDS. The US dollar has the potential to go all the way up to 164 on the DXY where it last was in 1985.

  • todd

    All I hear for last 7 years is pending economic collapse.if its 1st half of year then u say …”in the 2nd half of the year…its coming”
    If its 2nd half of year ….then u say. ..”in 1st half half of next year…it
    s coming”

    • Guest

      Well, why do you come here?

    • Mike Smithy

      Patience is a virtue. You have much to learn grasshopper.

    • Revolt to save America

      todd darling, it’s coming but because of manipulating the dates change ! ! ! ! if it naturally tumbled as it should have, it would have been over with, We can’t pin a date so we try to pin events. BUT if someone keeps manipulating the system it changes ALL OF WHAT WE ALL SAY, but here is one thing, the MANIPULATION card is almost used up, there’s no safe rock to hide under so that’s why we know and also those who are biblical know, it’s just WRITING ON THE WALL, we have propped up everything and we have no more magic bullets. SO that is why We say next quarter, year. MANIPULATION is why MANIPULATION makes us forecasters look dumb on the time horizon, but not when it hits,

  • GSOB

    Don’t you people understand? The US economy, it is all artificial.
    It is all rigged. It is all manipulated. It is all controlled.
    The world owns the American dollar, our number one export.
    What keeps everything in check are our leaders, their use of deadly force and special favors.

    That is why ISIS is a bigger threat.

    • socalbeachdude

      Nope on all counts.

  • robbie41

    Sept 13,2015, is the last day of the Shemitah. Before this day, Our country will see the biggest Financial & Economic collapse we will ever have seen. It’s important to have a minimum of 6 month’s worth of FOOD,WATER,& MEDICAL SUPPLIES on hand.. With now the new bank bail-in rules, a lot of americans are going to be upset, for what’s coming & have no idea or clue, their money was stolen from them.. Look up bank bail-in rules, & please get your money OUT of the BANK’S..

    • David R.(Canada)

      And 2016 is a Jubilee year (a double Shemitah if you like), so you’d better be doubly ready.

    • alan

      Remember on September 14th you better have a plan to pay your bills or your going out on the street.

      • socalbeachdude

        False, dude.

    • Jerry

      Bail-in laws apply only to uninsured deposits and bondholders. Insured depositors are not part of any bail-in plans. Also there is no need to get all of your money out of the bank. Having a small amount in to pay your bills is OK.

      • Gay Veteran

        you think FDIC actually has the money to cover massive bank failures?

    • socalbeachdude

      Those assertions are preposterous nonsense.

  • Bill

    In the beginning many deceptions I hide a single truth. In the end a single truth hides many deceptions.

  • DJohn1

    IF and when it happens . . .
    I believe it won’t happen simply because the consequences are too extreme to even contemplate.
    IF the government allows it to happen, they are the biggest losers of all. People will be going after their heads.
    This is what the old fashioned term “tar and feather” was all about.
    Further more, I think the people in charge know it.
    Stacking weapons in the hands of people that know nothing about how to handle weapons. People on desk jobs in bureaus?
    Because when and if it hits, they are all likely to be in jeopardy.
    Every person on a pension, on Social Security, on welfare, on unemployment will be a victim. It will be the biggest swindle in history.
    The entire function of society and working will break down.
    Why go to work if the money has no value?
    It might take people a while to realize this. But when they do every level of economic function will break down with it.
    That is why I think the Securities Exchange and the government will not allow it to occur.
    To allow it is to see a complete breakdown of the country.

    • socalbeachdude

      The US government has no control over valuations in the commodities or equities markets. Helllooooooo?

      • Gay Veteran

        well the Federal Reserve has certainly driven the price of gold down
        just go to Dr. Paul Craig Roberts’ website (he was assistant secretary of the Treasury under Reagan)

        • socalbeachdude

          Why keep make such utterly bogus and false assertions? The FEDERAL RESERVE HAS NOTHING WHATSOEVER TO DO WITH THE PRICE OF GOLD or any other commodities.

          The price of gold is CRASHING AND HAS BEEN CRASHING FOR THE PAST 4 YEARS SINCE APRIL 2011 WHEN THE SUPPLY OF GREATER FOOLS RAN OUT. Gold has now plunged about 40% from its preposterous speculator driven manic highs totally divorced from its fundamentals since then.

          • Gay Veteran

            massive naked shorts have been used to pummel gold prices, that has been PROVEN by Dr. Paul Craig Roberts (assistant secretary of the Treasury under Reagan).
            and the Federal Reserve does care about the price of gold, because if it soars then people will look to it as an alternative to holding dollars

          • socalbeachdude

            Those are blatantly false assertions regarding the gold markets. So-ca,led “naked shorts” are totally prohibited and were not used at all regarding gold.

            Gold was up in price due to MANIC SPECULATION BY CLUELESS DOLTS and it became a PREPOSTEROUS BUBBLE and then the SUPPLY OF GREATER FOOLS RAN OUT about 4 years ago in April 2007 and now the overpriced stuff has plummeted about 40% in price since then causing huge losses for the fools who bought it at anything above today’s absurdly elevated prices.

            Gold is no alternative for anything and at any price above its mean of $456 per ounce is just an absurdly overpriced and highly toxic little fungible commodity that will continue its price crash which has been ongoing for the past 4 years.

          • Gay Veteran

            you’re just a bankster shill.

            “The Federal Reserve and its bullion bank agents (JP Morgan, Scotia, and HSBC) have been using naked short-selling to drive down the price of gold since September 2011. The latest containment effort began in mid-July of this year, after gold had moved higher in price from the beginning of June and was threatening to take out key technical levels, which would have triggered a flood of buying from hedge funds.

            The Fed and its agents rig the gold price in the New York Comex futures (paper gold) market. The bullion banks have the ability to print an unlimited supply of gold contracts which are sold in large volumes at times when Comex activity is light…”

          • socalbeachdude

            Those are obviously TOTALLY FALSE AND UTTERLY ABSURD bogus assertions by some clueless dolt most likely from the Goobers Against Truth Association (GATA) and have no basis whatsoever in actual fact.

            All commodities contracts on COMEX are backed by the exact amount of metal specified in those contracts and NO CONTRACTS ARE EVER ISSUED BY COMES THAT ARE NOT FULLY BACKED BY THE EXACT AMOUNT OF METAL SPECIFIED IN THE CONTRACT AND ON DEPOSIT AT THE COMEX VAULTS. Never. Ever.

            Gold Futures Contract Specs – CME Group

            THE NUMBER OF FUTURE CONTRACTS ORIGINALLY ISSUED CORRESPONDS PRECISELY WITH THE COMMODITY COVERED BY THE CONTRACTS WHICH IS ON DEPOSIT WITH COMEX.

            The number of times those contracts TRADE HANDS is of zero relevance and many of them trade hands hundreds of times during their duration prior to maturity, but that doesn’t mean there are ever any more contracts than what is fully covered by the original contracts issued by COMEX.

          • Gay Veteran

            more bankster shilling from socalSHILL.
            PAPER shorts have taken down the price of gold. who dumps TONS of “gold” on the market at 2am???

          • socalbeachdude

            Once again, totally false and utterly bogus assertions for you, I see. You apparently don’t even comprehend that 2am in the US is certainly not the middle of the night in Europe but rather MID-MORNING IN EUROPE.

            The world certainly does not revolve around the US and in Asia they are over the international date line and are 20 hours ahead of the US in time.

            Markets in Japan, for instance open around 5:00 pm our time and markets in Europe open around midnight out time. Are you seriously not aware of GLOBAL TIME DIFFERENCES around the world?

          • Gay Veteran

            nobody trying to make money or minimize their lose would dump so much paper gold on the market all at once.
            Hellllllllllllooooooo?

          • socalbeachdude

            Where do you come up with such utter nonsense? Nobody is “dumping paper gold” at all. The primary price of gold is set in the SPOT MARKETS which are GOLD MARKETS FOR IMMEDIATE DELIVERY and that is the widely quoted reference price of gold.

            I would suggest that you learn about the gold markets, as obviously you haven’t got the slightest bit of a clue as to how they work or what they even are.

          • Gay Veteran

            FEW people actually take physical possession, you bankster SHILL

          • socalbeachdude

            That is an extraordinarily stupid assertions as 100% of the buyers of gold in the SPOT MARKETS TAKE “PHYSICAL” DELIVERY OF THE GOLD THEY PURCHASES THERE and that is the primary price widely reported and used for gold.

          • Gay Veteran

            people here are not buying your BS.

            “…The primary venue of the Fed’s manipulation activity is the New York Comex exchange, where the world trades gold futures. Each gold futures contract represents one gold 100 ounce bar. The Comex is referred to as a paper gold exchange because of the use of these futures contracts. Although several large global banks are trading members of the Comex, JP Morgan, HSBC and Bank Nova Scotia conduct the majority of the trading volume. Trading of gold (and silver) futures occurs in an auction-style market on the floor of the Comex daily from 8:20 a.m. to 1:30 p.m. New York time. Comex futures trading also occurs on what is known as Globex. Globex is a computerized trading system used for derivatives, currency and futures contracts. It operates continuously except on weekends. Anyone anywhere in the world with access to a computer-based futures trading platform has access to the Globex system.

            In addition to the Comex, the Fed also engages in manipulating the price of gold on the far bigger–in terms of total dollar value of trading–London gold market. This market is called the LBMA (London Bullion Marketing Association) market. It is comprised of several large banks who are LMBA market makers known as “bullion banks” (Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorganChase, Merrill Lynch/Bank of America, Mitsui, Societe Generale, Bank of Nova Scotia and UBS). Whereas the Comex is a “paper gold” exchange, the LBMA is the nexus of global physical gold trading and has been for centuries. When large buyers like Central Banks, big investment funds or wealthy private investors want to buy or sell a large amount of physical gold, they do this on the LBMA market….”

          • socalbeachdude

            Huh? What I have stated here is 100%T true, accurate, and correct.

            As to COMEX, the Federal Reserve has NOTHING WHATSOEVER TO DO WITH COMEX which is owned by CME Group.
            The bogus assertions you put up regarding COMEX are patently absurdly and categorically false and utterly bogus.

          • Gay Veteran

            why do you come here to lie?

          • socalbeachdude

            Everything I have stated here is 100% accurate, correct, and true. Are you really so ignorant and/or stupid that you cannot comprehend that?

          • Gay Veteran

            socal the deceiver, defender of banksters!

          • socalbeachdude

            Once again, totally false and utterly bogus assertions for you, I see. You apparently don’t even comprehend that 2am in the US is certainly not the middle of the night in Europe but rather MID-MORNING IN EUROPE.

            The world certainly does not revolve around the US and in Asia they are over the international date line and are 20 hours ahead of the US in time.

            Markets in Japan, for instance open around 5:00 pm our time and markets in Europe open around midnight out time. Are you seriously not aware of GLOBAL TIME DIFFERENCES around the world?

          • Gay Veteran

            socalSHILL still deceiving people here.
            who dumps tons of paper gold all at the same time? even a retard like you would know better

          • socalbeachdude

            So you are totally unaware that there are different time zones all around the world.

          • Gay Veteran

            so you are totally unaware of the banksters manipulating many different kinds of markets?
            and you need to learn how to read, you SHILL.

            btw, you never answered my question: do you get paid by the word?

          • socalbeachdude

            Where do you come up with such utter nonsense?: You make wildly bogus assertions all the time here in your comments with not a single shred of any evidence to support them just as you have done yet again above.

          • Gay Veteran

            the people here know you are nothing but a bankster SHILL

          • Gay Veteran

            reading comprehension problems, eh SHILL.

            who dumps tons of paper gold all at the same time? even a retard like you would know better

          • socalbeachdude

            Where on earth do you come up with such utter nonsense? Nobody “dumps tons of paper gold” at all at any time. Your abject ignorance regarding the gold markets is beyond mindboggling.

          • Gay Veteran

            why do you lie on behalf of the banksters?

          • Gay Veteran

            ROFLOL, all you have to do is Google “gold manipulation” or go to Dr. Paul Craig Roberts website:

            “The Federal Reserve and its bullion bank agents are actively using uncovered futures contracts to illegally manipulate the prices of precious metals in order to keep interest rates below the market rate. The purpose of manipulation is to support the U.S. dollar’s reserve status at a time when the dollar should be in decline from the over-supply created by QE and from trade and budget deficits….”

            go away bankster shill

          • socalbeachdude

            Those are totally false assertions. The Federal Reserve has NOTHING WHATSOEVER TO DO WITH THE GOLD MARKETS and couldn’t give the slightest bit of a hoot about gold which has NO FINANCIAL RELEVANCE WHATSOEVER and is nothing but a tiny little niche collectibles commodity market with total annual global sales of less than $234 billion which is less than half the annual sales of Wal-Mart.
            As top the commodities markets in general as to gold, there is no “manipulation” at all but rather a RUSH TO THE EXITS AS THE PRICE OF GOLD PLUNGES BECAUSE THE SUPPLY OF GREATER FOOLS FOR THAT STUFF STARTING RUNNING OUT 4 YEARS AGO IN APRIL 2011 and has now plunged 40% since then with massive further plunges ahead.

          • Gay Veteran

            rising gold prices would cause people to lose faith in the Federal Reserve’s fiat dollar. Hellllllllllllooooooo?

          • socalbeachdude

            The price of gold has nothing whatsoever to do with the Federal Reserve and the US dollar.

          • Gay Veteran

            well I’m sure China, India, Russia and a lot of central banks would love to buy at $456 per ounce.
            it has already been PROVEN that the price of gold is manipulated by the banksters

          • socalbeachdude

            Central banks have reduced gold holdings by around 10% over the past decade from 35,000 metric tonnes to 32,000 metric tonnes, and the only reason they are keeping any of it is because of TRADITION and that it makes nice vault DECORATION.

            Your utterly bogus assertion that the price of gold has been “manipulated” by bankers is patently false. I would suggest you learn how the various gold markets actually work.

            The price of gold has plummeted over the past 4 years became manic speculators drove it up to preposterous bubble levels and then THE SUPPLY OF GREATER FOOLS RAN OUT which is why it is plunging and will continue plunging towards and to its mean of $456 per ounce and then head lower towards the current US government official gold price of $42.22 per ounce.

          • Gay Veteran

            The deregulation of the financial system during the Clinton and George W. Bush regimes had the predictable result: financial concentration and reckless behavior. A handful of banks grew so large that financial authorities declared them “too big to fail.” Removed from market discipline, the banks became wards of the government requiring massive creation of new money by the Federal Reserve in order to support through the policy of Quantitative Easing the prices of financial instruments on the banks’ balance sheets and in order to finance at low interest rates trillion dollar federal budget deficits associated with the long recession caused by the financial crisis.

            The Fed’s policy of monetizing one trillion dollars of bonds annually put pressure on the US dollar, the value of which declined in terms of gold. When gold hit $1,900 per ounce in 2011, the Federal Reserve realized that $2,000 per ounce could have a psychological impact that would spread into the dollar’s exchange rate with other currencies, resulting in a run on the dollar as both foreign and domestic holders sold dollars to avoid the fall in value. Once this realization hit, the manipulation of the gold price moved beyond central bank leasing of gold to bullion dealers in order to create an artificial market supply to absorb demand that otherwise would have pushed gold prices higher. The manipulation consists of the Fed using bullion banks as its agents to sell naked gold shorts in the New York Comex futures market. Short selling drives down the gold price, triggers stop-loss orders and margin calls, and scares participants out of the gold trusts. The bullion banks purchase the deserted shares and present them to the trusts for redemption in bullion. The bullion can then be sold in the London physical gold market, where the sales both ratify the lower price that short-selling achieved on the Comex floor and provide a supply of bullion to meet Asian demands for physical gold as opposed to paper claims on gold….”

          • socalbeachdude

            More totally absurd, and utterly bogus nonsense from you again, I see

          • Gay Veteran

            socalSHILL lies

  • David R(Canada)

    #8 This is a Shemitah year,
    just like 2008 and 2001.

    • zell

      last adrenalin rush on dying bull eh? enjoy it while it last~

    • jsmith

      I don’t know anything about the Shemitah David, but I do know that the insiders pull you in, and when they have had enough of you they short the market. They get you coming and going. Sure, there are some lucky one’s that know or feel when the time to get out is, but usually like a casino, the house always wins. Unless you have an insider stockbroker, and preferably a non-Christian, as a friend, you might make some money. Other than that, why do you think they call them stock brokers? Cause they break you.

      • DavidDavid R.(Canada)

        A non-Christian for a stockbroker? It’s only the Jews and some Christians that understand what’s coming.
        Try reading “The Mystery of the Shemitah” by Jonathan Cahn. It’ll open your eyes as to what’s coming.

      • TheLulzWarrior

        It is like the communists 5 years plans but with finances instead.

    • TheLulzWarrior

      Deliberately engineered financial collapse every 7 years, makes things predictable for those in the known.

      • socalbeachdude

        Have you never heard of NORMAL ECONOMIC CYCLES, dude? Helllllllllllloooooooooooooooooo?

        • Revolt to save America

          If you showed a iittle more respect I’d really appreciate it. Change the tone please. We all see things a little different, Id really like some info on what makes you the superior authority here, maybe we all should tell a little bit about ourselves to add more credibility about our comments. Just be kinder please because we can all get rude in a NY minute.

        • Revolt to save America

          Normal cycles see Harry Dent on that, You can’t always say there are cycles in relation to time frame necessarily because all of the MANIPULATION , and second you can say there are cycles of how events happen without pinning down dates, I call that a sequence of events. Unless you can stop the manipulation you can’t give anything a DATE CYCLE,

  • janef

    It is worth noting that the well respected Martin Armstrong who is the former chairman of Princeton Economics International LTD. Armstrong predicted the Dow would hit 30,000 within a few years.
    America is regarded as a safer place to invest than Europe, Japan or Russia. China is a communist nation that desecrates its environment and according to a September Zero Hedge article launched CNY500 Billion in QE. China’s growth is slowing and it has a probably has a liquidity crisis on its hands.
    Also someone replied to me that Putin is playing Chess while Obama is playing Checkers. Well oil prices have dropped by 50% since last year. Hence it is expected that Russia’s economy will contract since its economy is so dependent on natural resources. America on the other hand has a more diverse economy than Russia. Though GDP growth for America can be much more robust, at least it is projected to be positive in Q1. This despite the fact you have a port strike on the west coast and temperatures that ran 20 degrees below normal in many parts of the country for February.
    Despite Obama being relentlessly lambasted on this site, I think Obama is winning the geopolitical chess game. Obama has the backing of NATO. Putin has corrupt China in his corner. Russia’s economy is suffering while America’s economy is projected to grow at a 1.2% annual rate in Q1 2015.
    People forget that the American worker produces the best quality product. The Chinese worker tends to produce garbage. There have been numerous reports of the Chinese manufacturing products of poor quality.
    So I am bullish on the stock market and America. America has millions of creative and intelligent people. America has been through rough times before and bounces back.
    The right path is to upgrade America’ s decaying infrastructure, invest in non-renewable energy sources, and raise the minimum wage.
    Both parties need to work together to enact legislation that benefits the American people.

    • Jodie Lynn Gaeta

      Raising the minimum wage isn’t going to help much. Your boss will just cut your hours, and if you want a raise you’ll have to wait a long time. I’ve worked in fast food for many years, and when labor costs get too high, 3 people end up doing the work of 4 or 5.

      • T.

        “3 people end up doing the work of 4 or 5″ = “slow food”

        • Jodie Lynn Gaeta

          Yep.

    • Mike Smithy

      News Flash. Despite the lies and manipulated stats, most Americans know that the economy is not growing in nominal terms.

    • Genada

      I’ll agree with you that Obama comes in for a certain amount of unfair criticism. He’s keeping the fraud going, that is it. He’s not the one that created it, tho he should be blamed for failing to change it. Both him and Bush killed the rule of law, the idea that all men are accountable before the law. Those that broke the law were allowed to go and in many cases were rewarded for doing so.

      The stock market could very well go up, and it could go up to insane heights because it no longer represents the economy writ large. It’s going up at this point is a function of interest rates and other actions taken by the central banks of the world. There’s no other place for people to attempt to get any kind of return on investment and it’s become part of national policy in many places in the world for there markets to go up. The money being printed out has to go somewhere, where else then the markets can it go?

      The United States maybe growing, that’s debatable. The problem is that even if that’s true, how can it keep doing so if the rest of the world goes into depression? As far as that goes as well, the United States is the biggest consumer of all counties. If the United States is growing and growing at a good pace, then how can how these nations be having a slow down? Lack of demand for their products is coming from somewhere, and that somewhere is the United States.

      The American worker that produces something is rare. Most people work in some form of service industry. More Americans are consumers, not producers. What we do produce can be of excellent or poor in quality. The same goes for any country.

      In the end the world has a problem. There’s too much debt and the ability to pay it. Most growth for the past couple decades has been based on taking ever greater amounts of debt on and assuming that there would be enough growth to pay it. That’s not the case and now we are left with a huge amount of debts that need to be payed. .

      • janef

        It seems like both parties are too blame for the economic problems America is facing.

        • alan

          The bankers and wall street crooks who buy off both parties.

      • jsmith

        No Genada. The Japanese and the Germans make consistently good products, because it has been instilled in them as small countries that their superior quality in their products and pride will win out. Why do you think the “allies” Great Britain and the USA went to war against them in WW1 and WW2?
        Funny, I like to watch the TCM classic movies, specially movies made in the 40’s and 50’s, and all you have to do is hear the sound of those American classic cars when people close the doors!

        • alan

          I read a story that said we bombed most of Europe and Asian industries into the ground to eliminate competition. True or not, it did work in out favor for 30+ years. So now what do we do?

    • jsmith

      Nope, you are back to yourself Janef. You really expect the Demopublicans to cooperate. Not in this century.

      • Mike Smithy

        In the last midterm election, it was quite evident that Americans voted in Republicans to stop Obama and his leftist agenda. They do not want them to work with the Demoncats on any level. Otherwise, they would have voted Democrat.

        • Gay Veteran

          how’s that working out for you?

    • K

      Once before the U.S. attacked another powerful nations’ economy. They were getting out of hand, and we felt we had to act. So we put them in an economic stranglehold. We denied them access, to many raw materials they needed. There was no question we were winning this little economic war. Then they bombed us, at Pearl Harbor. If Russia is backed far enough into a corner, a similar reaction may occur. With the weapons available now, how insane we are taking that chance.

    • Molon Labe Girl

      I have to admit, I love your optimism. But the man called “Obama” is not a man in your context, it’s an evil empire with him as the face. The man Obama is not bright enough to tie his own shoes. The cabal behind him, though, is brilliant in it’s manipulation. Don’t get the two mixed up.

    • Gay Veteran

      “…Obama has the backing of NATO. Putin has corrupt China in his corner. Russia’s economy is suffering while America’s economy is projected to grow at a 1.2% annual rate in Q1 2015.
      People forget that the American worker produces the best quality product. The Chinese worker tends to produce garbage. There have been numerous reports of the Chinese manufacturing products of poor quality….”
      you are DELUSIONAL! the U.S. tells its NATO puppets what to do.
      and I love how you ignore the MILLIONS of American jobs that have been shipped to China, India, Vietnam, Mexico, etc.

      • socalbeachdude

        Where do you come up with the utterly bogus and false notion that ” the American worker produces the best quality product?” Name one product produced by “the American worker” that even remotely qualifies as “best” in any product category.

        • Gay Veteran

          hey Einstein, I didn’t say that, did you notice the quotation marks?

    • Gay Veteran

      are you high? Russia’s debt is tiny compared to the U.S.
      and NATO? you mean our European vassals

  • janef

    When you really look at the numbers on the U.S debt lock site it almost looks like the U.S government is running a Ponzi scheme. Is that really possible?

    • reviethemiddleclass

      While yes Jane. It has been going on since 1913.

      • socalbeachdude

        Actually, US federal government deficit spending and debt accumulation has been going on since 1776.

        • Gay Veteran

          no, the Federal Reserve is just an enabler of Federal debt:

          the federal reserve has lowered interest rates through quantitative easing, by buying massive amount of U.S. government bonds

    • Genada

      Here’s a simple way to know how much were in trouble and how much people are lied to:

      Recall the Clinton surplus? Go look up the United States debt during the Clinton years. It goes up every single year. How can that be with a surplus?

      The answer is that we do not count the cost of serving the debt into the budget, so therefore you can run a surplus but still end up in greater amounts of debt. The United States is insolvent, period. No amount of taxes, no amount of cuts will allow us to run a surplus large enough to begin paying off the debt.

      • TtT Engine

        If the US Gov. ran a $100 billion dollar surplus per annum [fantasy land considering we are running $500 billion/trillion deficits.], it would take 1,000 years [not counting any further interest] to pay off $100 trillion in debt/unfunded liabilities we currently have. Hey boys and girls, we have an open border and an open spigot on government spending. Is this an act of love Jebbie or an act of treason ? Christi Fidelis !

        • socalbeachdude

          The total federal budget spending for fiscal year 2014 was right around $3.9 trillion and the total addition to the federal debt in Fiscal 2014 was right around $1.086 trillion.

      • socalbeachdude

        There was NEVER ANY FEDERAL SURPLUS during the Clinton years.

    • jsmith

      Lo and behold Janef, are you coming around. I never thought I hear something like that coming out of you. Or am I mistaken?

    • socalbeachdude

      US government debt is only around 107% of US GDP which compares to around 94% of EU aggregate government debt to EU GDP of 94%. The US percentage of government debt to GDP is VASTLY LOWER than that of Japan which is around 250% government debt to Japanese GDP.

  • janef

    I just noticed that the U.S government has over $100 Trillion dollars in unfunded liabilities. That is the difference between the net present value of expected future government spending and the net present value of projected future tax revenue. That is about 6 times the annual U.S GDP.
    It seems like that the U.S government has no way to pay off future social security and Medicare payments. Millions of Americans including myself are screwed.

    • nekksys

      Welcome to reality. Now, what are you doing to help yourself when the inevitable comes?

    • socalbeachdude

      So-called “unfunded liabilities” are NOT DEBT AT ALL and aren’t due in any way until they become DUE IN THE FUTURE at which time they are OFFSET BY FUTURE REVENUES.

      • David R.(Canada)

        Blah, blah, blah!
        You sound like a politician talking!

        • socalbeachdude

          Just stating the facts, dude.

  • Michael Dubin

    Michael,

    I enjoy most of your articles and appreciate the work you put into them. But predicting what will happen with the stock market, gold, silver, interest rates, GDP is meaningless when it is all manipulated by the Federal Reserve and the government. Nothing makes sense anymore, as there is no price discovery.

    • T.

      It is Not meaningless. This blog has long predicted the coming Collapse to try and warn people in order that they may make preparations. Of course ALL the markets are manipulated and there is no price discovery but these are Signs that the Collapse is on the way and it will be huge in its destruction for all, especially those who have Not prepared. Until the last 12 months we have not had any indication on when the elites plan on pulling the plug on this failed “World Monetary System”, but NOW they have indicated that They will pull the “Plug” in September 2015 on the “Shemitah”. God’s universal “laws of economics” can only be violated FOR SO LONG – Then TRUTH kicks in and destroys All the Lies and Deceit that these ungodly devils have perpetrated.

    • socalbeachdude

      GDP is not in any way “manipulated by the Federal Reserve” at all. There are major issues, however, with the metrics used by the US government to calculate GDP.

      • Michael Dubin

        I meant that the GDP is manipulated by the gov’t, as well as every other economic statistic it publishes. Over the last 2 decades, the gov’t has changed several times the way it calculates it’s statistics in order to paint a rosier picture.

        T, you mentioned that the elites would pull the plug on the monetary system. That’s my point. It will collapse when the elites decide to let it collapse, like a controlled demolition. So unless you are one of the elites, your predictions are meaningless.

        • socalbeachdude

          Yes, you are quite correct as to the calculations of GDP in the US (and elsewhere) which is a very murky art at best and not at all well defined or properly disclosed.

          As to “so-called” elites they are the ones who ALWAYS GET MOST SLAMMED WITH LOSSES when assets such as stocks plunge as they ar the ones who control the largest amount of those assets.

  • Big Al

    does everyone not understand that March is “7 months” away from September! the crash (shaking) is happening now this month exactly 7 months from the exact date and there will be a great shaking every month, right up to the great shaking in September!
    All need to repent, ask for forgiveness and turn back to the Lord, as when September comes there will be no forgiveness! there will only be judgement.
    Make peace, be humble, be able to say the word “My LORD” become a community of love for one another, and for each other, remove all false deities and symbols, and false friendships from your life, and most of all have total faith in the Lord God who made you. it is a test people each one will be harder than the last, faith and love will get you through.

    • Genada

      Um March is the 3rd month of the year, September is the 9th. Seven months would be October.

      • T.

        Close ENOUGH. October – Will be WORSE.

    • socalbeachdude

      The stock markets are CRASHING NOW in the US and Europe and globally.

  • EndtimesheadlinesandTrunews

    Visit “Trunews” and listen to today’s podcast, it might change your life and perspective forever,

  • Priszilla

    My stock in the freezer was peaking last week. Since then it’s declining. Only chicken stock and beef stock remaining.

    • nekksys

      Now THAT’S funny!!!!

  • janef

    I am sorry people for causing trouble on earlier blogs. I was in denial.

  • alan

    It will go up more. They just replaced AT&T with Apple, should get a few thousand points just for that.
    The plunge protection team will stop any sharp declines.
    Just look at the last 20 years and project them forward.

    • Guest

      They don’t have absolute control over the equity markets.

      • socalbeachdude

        Correct, and in fact “they” have NO CONTROL WHATSOEVER OVER THE EQUITIES MARKETS.

    • socalbeachdude

      The Dow has plunged 260 points today after a 279 point plunge last Friday as the US DOLLAR SOARS and as YIELDS ON US TREASURIES SOAR with the biggest interest rate (yield) increases in more than 2 decades over the past few days.

  • XSANDIEGOCA

    If low gas prices are Greeeeate! How about the buck increase in the last 30 days?

    • socalbeachdude

      What low gas prices are you talking about? Gasoline prices have been SOARING over the past 5 weeks and are up about 33% during that time here in Southern California are are now around $3.49 per gallon for regular.

  • Selaretus

    But….but….but it’s different this time

  • Vindicius

    What I wanna know is what kind of trigger event will cause the next crash. With your charts and data and countless sources, I’m sold. But I need to see a piece on what will ignite the big one. The feds stress test exposed the banking system, so that’s where my money’s at. What do you think?

    • Anything can be a trigger, and that what’s making any search for the trigger a meaningless action.

      The only thing we can realistically have is information like those given by Michael, Mike Maloney, Zero Hedge, etc to make our mind about what we can prepare for.

      But finding the trigger is fundamentally impossible because of the huge number of possibilities – Pandemic, Epidemic, Cyber-Attack, War, Terrorist Attack (9/11 for instance), Credit Freeze, Bank Collapse (Lehman Brothers, etc), Currency War, Computer Bug, or a simple false rumor creating a panic attack on Wall-Street, any of them, and many more could be a trigger…

      • socalbeachdude

        The triggers for the now happening collapse of the equities markets are:

        1) Meteoric rise in the DXY value of the US dollar

        2) Soaring of yields (interest rates) on US Treasuries

        There is no mystery at all about these factors wh9ich have been intensifying at gale force for the past 2 months and which are not at Hurricane Category 5 force hitting the equities (stock) markets like Katrina hit New Orleans.

        • Eric Rasbold

          I need you to point out these soaring yields….my 30YR’s I bought in November of ’13 are @ 3.91% and are super primo right now. Nothing is yielding anything – that is why money is still pouring into equities – we are all trying to chase a lousy 5% return!
          Help a brother out!

          • socalbeachdude

            Just keep your eye on US Treasury yields which have been soaring upwards for the past 6 weeks.

    • Revolt to save America

      loss of more jobs, demand SLIDDING,,, it all has to do with NO JOBS and lack of money and it causes big business to lose as well, SO JOBS WILL CAUSE THE FALL, as more try to get gov entitlements, not enough workers to pay for them. JUST THINK JOBS, there are dozens of WAYS it can go down, simply tho, NO MONEY SPEND< NO MONEY HAD TO BE SPENT,

      • socalbeachdude

        Jobs have nothing of any significance to do with the stock markets other than the FEWER THE JOBS THE MORE THE PROFITS FOR CORPORATIONS.

        • Revolt to save America

          wait and see, it eventually catches up, when we all stop spending because there are no jobs, eventually corperations get hit too

          • socalbeachdude

            We are certainly never going to see a situation when there are “no jobs” in the US or elsewhere.

          • Revolt to save America

            ok let me talk more elementary. Right now we are told we are 5 percent unemployment when we know it’s 20 percent, so YES when there are no job, lets say 50 percent unemployment ALSO KNOWN AS NO JOBS, you are being too literaly socal. Of course we won’t go down to ZERO jobs, go read up on the great depression and how many had jobs, THATS what I’m talking about, TKX,,,

          • Revolt to save America

            you know what it reminds me of when I get called out for small things that an OPEN MIND would otherwise understand, THIS IS what it reminds me of, finding a friend I had 30 years ago, he spends his entire day posting fb hate for GOP and the 1 percent, so we talked by phone and the low down is he’s not worked in 7 year and is on food stamps and his girlfriend is on section 8, WELL NO WONDER HE LOVES THE FreE STUFF, likewise I’ve had a Blessed life. So when people are diehards, theyre all fighting for the position that serves them best in life, so it seems, the rich root on the rich, the poor root for more free stuff, how self serving is the HUMAN MIND<

    • socalbeachdude

      The trigger event for the crashes in equities in the US and globally is obvious and happening now and is the SOARING US DOLLAR coupled with SOARING YIELDS (INTEREST RATES) on US Treasuries.

    • David R.(Canada)

      In 1929 the trigger event was European banks collapsing esp. a certain Austrian bank.
      And look what happened last week (a certain Austrian bank).

  • nekksys

    When this bubble bursts, what will it look like? What will the first few hours, days and weeks of this burst bring us??

    This, I’d like to know…

    • Cat Herder

      Look up the Argentine collapse,circa 1999-2000. A gentleman by the name of Farfal (?) wrote extensively about this. Beans, band aids, and bullets – some PM’s to barter with, the other stuff to keep you alive.
      Think, plan, and prayer will go a long way.

    • socalbeachdude

      There will be no difference at all in America when stocks collapse significantly.

      • Gay Veteran

        yeah, average Americans will go on spending when they see their stock IRAs explode

        • socalbeachdude

          Most average Americans don’t even know what equities (stocks) are and don’t own any. As to IRAs those funds are ONLY AVAILABLE AFTER AGE 59.5 and it really doesn’t matter a hoot as to spending what the balance of anyone’s IRA is if they are below that age.

          • Gay Veteran

            They own them in their IRAs, I do.
            and you missed the point (or you are dense), if the stock market crashes then their IRAs implode and they will be forced to save more money for retirement.

          • socalbeachdude

            Many IRAs consist of 100% cash. Anyone speculating in wildly overpriced equities (stocks) in their retirement funds DESERVES 100% LOSSES as stocks have always had a RISK OF 100% LOSS and every single stock prospectus ever printed clearly states that. Helllloooo?

          • Gay Veteran

            100% cash? rapidly losing value due to the Fed’s zero interest rate policies and inflation. Hellllllllllllooooooo?

          • socalbeachdude

            Cash fully retains it value unlike BUBBLE JUNK COMMODITIES such as gold which have plummeted 35% in value over the past 4 years and which is headed much lower.

          • Gay Veteran

            cash retains its “value” if you ignore all that inflation and fiat money printing

          • socalbeachdude

            There is no inflation of any significance at all, but rather DEFLATION and the GLOBAL DEFLATIONARY SPIRAL is rapidly intensifying. Most all of the world’s 27 major commodities have plunged by around 50% or more in value over the past 4 years including bubble junk like gold and silver. Didn’t you get the thousands of memos on that?

          • Gay Veteran

            no inflation? I guess SHILLS don’t buy food or health insurance

          • socalbeachdude

            The prices of medical expense insurance have little to nothing to do with inflation but rather nearly 100% to do with government regulations and MASSIVE PRICE GOUGING by hospitals and pharmaceuticals which is not in any way related to general inflation.

            As to food prices they have NEVER BEEN LOWER as a percentage of a typical family’s budget and are now down to less than10% of a typical family’s budget versus the historical norm of around 25%.

          • Gay Veteran

            socalSHILL comes here to deceive people

  • Mr. Bystander

    I still believe there is a lot of push and fight left in the 1% to keep faking it. They will keep inflating our deficit and artificially pumping up our economy as long as they can. This plastic society and those dependent on it will not go quietly into the night. There is far too much human life and natural resources left to be sacrificed in the name of freedom unfortunately. While I agree that things are shaking loose and we may see another slowdown and crash, it will not be the last. Far too many people still believe we can keep making this work. Your best bet is to become as independent as possible, without relying on the federal, state or even local governments. Opt out of America as much as you can.

    • socalbeachdude

      The so-called 1% have nothing to do with inflating the $1 trillion US deficit at all. The total responsibilit8y for that lies with CONGRESS with most of the $4 trillion in US government spending offset by only $3 trillion in revenues going to the 99% of which 50% of them pay zero in federal income taxes.

      • Gay Veteran

        the “so-called” 1% OWN Congress

        • socalbeachdude

          That simply is not true at all.

          • Gay Veteran

            sorry, meant 0.1%

          • socalbeachdude

            Even more false. The politicians in Congress are doing just exactly what the vast majority of voters DEMAND THEY DO which is spending vastly more for benefits for them than the government takes in via tax revenues and throwing the difference on a tab which is never presented to the voters but rather financed in the US Treasury markets.

          • Gay Veteran

            bankster shill, tax policy and regulations are bought by the top 0.1% elites for their benefit

          • socalbeachdude

            Where do you come up with such nonsense? ZeroBrains?

          • Gay Veteran

            bankster shills hate Zero Hedge

          • socalbeachdude

            Anyone with even a scintilla of intelligence knows that ZeroBrains (AKA ZeroCredibility) is nothing but a brainless attack site filled with ranting and raving lunatic propaganda with nearly zero basis in actual fact. Hellllllllllllooooooo?

          • Gay Veteran

            Hellllllllllllooooooo socalSHILL, people here know you are a paid troll

  • Molon Labe Girl

    Michael is often right but always early. If you think you can time this market and frontrun this meltdown, good luck to you. Nasdaq down 240 as I write this, I think the exit lights are more welcoming than ever.

    We prepare as if we are going to spend 6 months with no resupply, surrounded by hostiles. You? What’s your economic meltdown approach?

    If you’re not already well down the path of getting ready for this, IMHO it’s just too late.

    • socalbeachdude

      NASDAQ is not down 240, but rather is down 67, but the Dow (DJIA 30) is down 263 and was down more than 280.

      • Molon Labe Girl

        My bad – I got my murds all wixed up. Thanks 😉

        • socalbeachdude

          Not to fret! NASDAQ will soon be down 2400 and then will continue plunging much more as it heads to around 300.

          • Molon Labe Girl

            LOL….sad but true. We’re down over 300 now, just a matter of time before mr. Yellen fires up the presses.

          • socalbeachdude

            The Dow closed down 333 points and NASDAQ closed down 82 points.

            The Federal Reserve versions of QE had NOTHING WHATSOEVER to do with the US equities (stock) markets and 100% of the QE funds ALWAYS REMAINED FULLY INSIDE THE FEDERAL RESERVE in the excess reserves accounts of the banks there where the proceeds were deposited by the Federal Reserve for the purchases of existing securities the Federal Reserve purchased from those banks.

            The Federal Reserve has NOTHING WHATSOEVER to do with the stock markets.

          • Molon Labe Girl

            my response was rejected/moderated.

            You need to read more and type less.

            ZIRP drives irrational behavior, and so does increased mandatory bank reserves.

            The FED is the ONLY reason the market is this hot.

          • socalbeachdude

            False. The Federal Reserve DOES NOT SET ANY INTEREST RATES THAT MATTER AT ALL IN THE US ECONOMY, but only sets 3 rates which are the 1) Federal Discount Rate, 2) Federal Funds Rate, and 3) IOER.

            The Federal Discount Rate only applies to bank borrowing directly from the Federal Reserve strictly for liquidity purposes on a fully collateralized basis and is presently set at 300% of the rate of the Federal Funds Rate and is practically NEVER EVEN USED BY BANKS.

            The Federal Funds Rate is set in a SUGGESTED RANGE of 0.00% to 0.25% which the banks don’t even have to follow when lending to each other and is also strictly for LIQUIDITY PURPOSE on a very short term (typically overnight) fully collateralized basis.

            The Federal Reserve HAS NO CONTROL OVER INTEREST RATES in the US economy as they are SET IN THE BOND MARKETS with the 10 year US Treasury yield ( interest rate) being the key benchmark rate off which affects most other major interest rates in the US economy are keyed including mortgages.

            It really doesn’t matter a hoot what the Federal Reserve does with the only 3 interest rates they are involved with.

            The most important interest rates in the US economy are the yields on 10 year US Treasuries which are set by the market.

            The Federal Reserve is the one that FOLLOWS THE BOND MARKETS FOR US TREASURIES WHEN THEY SET THE ONLY 3 INTEREST RATES THEY SET, so the markets for US Treasuries are where all interest rates that matter – including those set by the Federal Reserve – are determined in the US economy.

            The Federal Reserve SIMPLY FOLLOWS THE US TREASURY MARKETS when it comes to setting the only 3 interest rates they control, all 3 of which have nothing whatsoever to do with interest rates that matter in the US economy all of which are keyed off yields (interest rates) on US Treasuries.

            As Sandy Greenlyn stated recently over on MarketWatch, “It’s interesting how few people understand that the Fed funds rate chases the market-driven 3M T-Bill exactly and they have never deviated at all.”

            The Federal Reserve has NOTHING WHATSOEVER TO DO WITH THE STOCK MARKETS.

          • Molon Labe Girl

            Alright, you’ve made me think – so thank you. Not sure how right you are, but I’ll use this dialogue to impel me to dig even deeper. A rational person must always question their beliefs.

            Cheers.

          • socalbeachdude

            Cheers!

          • Gay Veteran

            socalbeachdude is a shill for the banksters.
            if you want info on the economy and the banksters go to Zero Hedge

          • socalbeachdude

            No wonder you are so delusion and confused as it appears you get your DISINFORMATION for totally non-credible sources such as ZeroBrains. Pitiful. Just pitiful.

          • Gay Veteran

            of course you hate Zero Hedge, no bankster shills there

          • socalbeachdude

            Nobody with any intelligence would go near those dolts over at ZeroBrains, AKA ZeroCredibility. Helllloooooooo?

          • Gay Veteran

            banksters HATE for people reading Zero Hedge

          • Molon Labe Girl

            I spend much more time over at ZH. You have to always question what you think, and seek out better/more information. So if this guy is a shill, it backfired on him.

          • Gay Veteran

            I totally agree. You have to question everything

          • Molon Labe Girl

            and everyONE.

          • GSOB

            Yeah right.

          • Gay Veteran

            the antidote to your bankster lies can be found at Zero Hedge

          • socalbeachdude

            I would suggest you stay away for extremely ignorant clueless dolt sits such as ZeroBrains.

          • Gay Veteran

            LOL, because Zero Hedge writes about how the banksters, the Federal Reserve, and corporations have destroyed this country

          • socalbeachdude

            All of which is just clueless stupidity and despicable propaganda over at ZeroBrains.

          • Gay Veteran

            you bankster shills hate Zero Hedge

          • socalbeachdude

            Anyone with any intelligence knows that ZeroBrains is just a bunch of delusional clueless dolts attempting to attack fine professionals in the banking and financial industries and alternatively refers to it as ZeroCredibility.

          • Gay Veteran

            bankster shills like socalSHILL hate Zero Hedge and the truth

          • socalbeachdude

            Obviously, what I have stated here is 100% true and correct, whereas you have done nothing but put up totally false and utterly bogus assertions with many of them based on stupid propaganda from the dolts over at ZeroBrains.

          • Gay Veteran

            once again socalSHILL, you have ZERO credibility and people recognize you for the troll you are.

            bankster shills like socalSHILL hate Zero Hedge and the truth

          • Gay Veteran

            “…The Federal Reserve HAS NO CONTROL OVER INTEREST RATES in the US economy as they are SET IN THE BOND MARKETS….”

            the federal reserve has lowered interest rates through quantitative easing, by buying massive amount of U.S. government bonds

          • Molon Labe Girl

            So just two followup questions:

            1. If your assertions are true, please explain the mechanism whereby a comment from Janet Yellen indicating a changes in the federal funds rate exerts substantial pressure the stock market?

            2. Again, assuming your assertions are true, why did the potential cessation of QE have such a large impact on the stock market, and why was QE resumed multiple times?

            And a bonus question:

            Did the rounds of QE contribute to the large increase in the monetary base? And what effect does the monetary base have on interest rates?

            Thanks for your time. I look forward to a coherent response.

          • socalbeachdude

            1) Statements by Janet Yellen have no ACTUAL EFFECT WHATSOEVER on stock markets. What stupid manic speculators do is certainly not something she can control in response to her statements which confirmed that interest rates would be rising and that the US economy is showing ever more weakness.

            2) Again, FALSE PERCEPTIONS REGARDING QE have nothing to do with the actual flow of funds with QE. 100% of the QE funds have always remained inside the Federal Reserve I don’t purport to even begin to comprehend the stupidity and reactions of clueless dolts who do no0t comprehend those facts.

            3) Yes, the QE funds did result in an increase in the MONETARY BASE of around $3.6 trillion, but that has no impact on interest rates at all and 100% of that increase in the monetary base has always remained INSIDE THE FEDERAL RESERVE in the excess reserves accounts of the banks there from whom the Federal Reserve purchased securities and on which they are now paid IOER of 0.25%.

          • socalbeachdude

            1) Statements by Janet Yellen have no ACTUAL EFFECT WHATSOEVER on stock markets. What stupid manic speculators do is certainly not something she can control in response to her statements which confirmed that interest rates would be rising and that the US economy is showing ever more weakness.

            2) Again, FALSE PERCEPTIONS REGARDING QE have nothing to do with the actual flow of funds with QE. 100% of the QE funds have always remained inside the Federal Reserve I don’t purport to even begin to comprehend the stupidity and reactions of clueless dolts who do no0t comprehend those facts.

            3) Yes, the QE funds did result in an increase in the MONETARY BASE of around $3.6 trillion, but that has no impact on interest rates at all and 100% of that increase in the monetary base has always remained INSIDE THE FEDERAL RESERVE in the excess reserves accounts of the banks there from whom the Federal Reserve purchased securities and on which they are now paid IOER of 0.25%.

          • Big Ben

            Traditionally, I’d agree but when the FED buys $4 trillion of bonds all along the yield curve, I’m not so sure.

          • Catman

            In what ways, if any, have non financial corporations benefited from zirp?

          • socalbeachdude

            Obviously, record low interest rates substantially lowers the borrowing costs of corporations which saves a lot of annual cost to those corporations particularly now when the 7,000 or so publicly listed US corporations have an aggregate total of more than $14 trillion in debt outstanding.

          • Catman

            So, are the current borrowing costs to corporations to repurchase their stock causing corporations to be further or less in overall debt? I realize this will vary from company to company, but just wondering whether overall corporate debt is going up.

          • socalbeachdude

            Very low borrowing costs have resulted in corporations in the US taking on vastly more debt than they other wise would have and much of that debt has been taken on not for productive purposes such as profitable business expansions bur rather primarily to PAY DIVIDENDS TO SHAREHOLDERS AND TO REPURCHASE LARGE QUANTITIES OF THEIR OWN STOCKS.

            Bloomberg this week did an excellent piece on that and the fact that this is the PRIMARY DRIVER OF HIGH STOCK PRICES.

            Since links here result in a delay of comments appearing due to moderation, google:

            “buybacks-at-46-billion-a-month-dwarf-everything-in-u-s-market”

          • Catman

            Thank you for your response and for article. I will check it out.

          • socalbeachdude

            You are very welcome!

          • Catman

            I read the article with great interest and was greatly surprised to learn about the 6/1 ratio of corporate stock purchases. However, this article indicated these corporations have bought back their stock with their own cash reserves. I may have missed it but I didn’t see where they have been doing so with borrowed money. Be that as it may, It would seem once the $ runs out due to depleted cash positions then things could go south quickly for the markets, and of course pension funds etc. a la 2008/9. Based on what’s reported on how much cash they have I guess they could continue as they are for another year or two, no? Thanks again.

          • socalbeachdude

            CNBC reviewed the situation with corporate debt last March 2014 when it was $13.6 trillion:

            Corporate debt fever rises to new record in 2014 Corporate America’s love affair with debt has intensified in 2014, with record levels of borrowing happening as feared rate increases have yet to materialize.

            In total, corporate debt among non-financial companies has ballooned to $13.6 trillion, increasing 7.1 percent in the fourth quarter, according to the latest Fed data.

            Companies have put all that debt—which has increased from about $11 trillion during the darkest days of the financial crisis in late 2008—to a number of uses.

            The most noted from the investor perspective has been the trillion dollars or so that have gone to boost share prices through buybacks.

            Google the article by the title “Corporate debt fever rises to new record in 2014″ or by “CNBC /id/101481029″

          • Catman

            I’ll check it out. So it would seem the buybacks have most likely been from a combination of borrowing and cash reserves. The Bloomberg article just didn’t mention the borrowing. On another note, it’s interesting to me how there has been very little inflationary-inspiring data-growth- coming out for some time now. I realize the telecom, healthcare, and a few other industries are actually making money but most seem to be self-consuming through borrowing and spending to keep their balance sheets looking healthy to investors. I don’t think the Fed will be raising rates to amount to anything for quite some time, if ever. Why would they?

          • socalbeachdude

            The Federal Reserve has no control over any interest rates that matter in the US economy and ALWAYS MATCH THEIR RATES WITH THE YIELDS ON 3 YEAR US TREASURIES AND IF THOSE RISE AS THEY ARE DOING THEN THE FEDERAL RESERVE WILL RAISE THE ONLY 2 RATES THEY SET TO MATCH.

            The Federal Reserve is the one that FOLLOWS THE BOND MARKETS FOR US TREASURIES WHEN THEY SET THE ONLY 3 INTEREST RATES THEY SET, so the markets for US Treasuries are where all interest rates that matter – including those set by the Federal Reserve – are determined in the US economy.

            The Federal Reserve SIMPLY FOLLOWS THE US TREASURY MARKETS when it comes to setting the only 3 interest rates they control, all 3 of which have nothing whatsoever to do with interest rates that matter in the US economy all of which are keyed off yields (interest rates) on US Treasuries.

            As Sandy Greenlyn stated recently over on MarketWatch, “It’s interesting how few people understand that the Fed funds rate chases the market-driven 3M T-Bill exactly and they have never deviated at all.”

          • Gay Veteran

            WRONG, the federal reserve has lowered interest rates through quantitative easing, by buying massive amount of U.S. government bonds

          • socalbeachdude

            Why do you keep putting up the same ludicrously false assertion?

          • Gay Veteran

            why are you talking to a mirror?

          • Gay Veteran

            low rates allow corporations to buy back their own stock and inflate its value, does NOTHING for main street

          • socalbeachdude

            So what?

          • Gay Veteran

            you’re an idiotic bankster shill, the entire point of QE was to prop up the stock market

          • socalbeachdude

            That is a ludicrously false assertion. The Federal Reserve has NOTHING WHATSOEVER TO DO WITH THE STOCK MARKETS and 100% of the QE funds ALWAYS REMAINED INSIDE THE FEDERAL RESERVE in the excess reserves accounts of the banks there from whom the Federal Reserve purchased securities. Not a single penny of any of the Federal Reserve QE funds ever even left the Federal Reserve and obviously had nothing whatsoever to do with the stock markets at all.

            The huge surges since March 9, 2009 in the stock markets has nearly 100% been the MASSIVE STOCK REPURCHASES BY CORPORATIONS of their own stocks with funds from both their earnings and MASSIVE BOND ISSUANCES which has run up US corporate debt for the around 7,000 US publicly listed corporations to over $14 trillion which is nearly the same amount of total debt of $18+ trillion owed by the US government.

            The Federal Reserve versions of QE had NOTHING WHATSOEVER TO DO WITH STOCKS in any way, shape, or form.

          • Gay Veteran

            you sure are posting a lot, which is a clear sign of a paid troll.
            you did get it partly right, corporate stock buy backs is part of the reason the market has gone up. stock buy backs funded by cheap loans courtesy of the Federal Reserve

          • socalbeachdude

            Why do you keep making bogus assertions?

          • Gay Veteran

            the only bogus assertions are being made by socalSHILL, an employee of the banksters

          • Molon Labe Girl

            So how bout the market response today, huh? FALSE.

          • socalbeachdude

            What about it” The Federal Reserve came out and confirmed 1) that the economy is now slowing down substantially in the US, and 2) they are on track to raise interest rates sooner than later(not that it matters at all what they do(. Then the markets go up? Really? Seriously?

            Doesn’t that just tell you HOW DISCONNECTED THE MARKETS ARE FROM REALITY?

            Tomorrow and the rest of the week stocks in the US are likely to fall far more than they gained today and will continue heading south, particularly as we approach the earnings reports for the 1st quarter ended March 31st which will be DISMALLY BAD.

    • TheLulzWarrior

      The big question, will there be large-scale starvation or not? Cuba better ready its fleet to stop the flood of refugees.

      • Molon Labe Girl

        There already is – just not here in the good ‘ol USSA. Yet.

        • socalbeachdude

          False.

          • Molon Labe Girl

            You like that word, huh?

          • socalbeachdude

            When appropriate, yes!

  • Rocketman

    Worry not my friends. The Apple watch will save us all.

  • Preparequickly

    Micheal if you really want to predict the stock market crash i will just buy some stock on any given day and it will crash for sure. With interest rates at zero and the fed not having many tools left i see some negative interest rates may be on the horizon.

  • socalbeachdude

    $15+ TRILLION OF PHANTOM APPRECIATION COULD EVAPORATE IN CRASHES

    The total market capitalization of the 7,000 or so stocks in the US has been pushed up by manic speculators to around $30 trillion and with a mere 50% drop in stock valuations across the board, around $15+ trillion of phantom stock appreciation would simply EVAPORATE INTO THIN AIR.

    When stock markets correct in major crashes, 50% plunges are not the least bit unusual and we have seen 80% drops in indices a number of times including with NASDAQ in the Spring of 2000 from which it has never recovered more than about 85% of its plunge.

    An 80% plunge in valuations in the stock markets would result in approximately $24 trillion in phantom market capitalization evaporating and that could happen very quickly.

    When stocks correct substantially, they typically OVER CORRECT IN PRICE and fall to PE multiples of around 6 times current earnings and, of course, earnings typically also plunge substantially which exacerbates the price plunges in stocks.

    The implications for all of the manic speculators will be HUGE FINANCIAL LOSSES and those will extend to insurance companies, pension funds, hedge funds, individuals, and banks, among a variety of other entities.

    After the crash of 1929, stocks indices did not return to their prior valuation levels until about 25 years later, and that is also very likely to be the case with the GREAT STOCK CRASH OF 2014, and, of course, a number of individual stocks will have 100% wipeouts for their shareholders just as has occurred with every major market crash.

  • socalbeachdude

    The Dow has now collapsed 280 points today and the Global Dow plunged 39 points and all of the major stock indices in Europe fell sharply and are plunging in the US. Meanwhile, the US dollar has soared to new 12 year highs and is at 98.62 on the DXY

  • socalbeachdude

    It’s Mr. Toad’s Wild Ride in the European and US stock markets today!

  • socalbeachdude

    The biggest losers in the stock market crashes which are already well underway are the public companies listed on the exchanges that have been the primary drivers of the stock market rises through the repurchases of their own stocks over the past 6 years. Most of them plowed 95% of their earnings back into stock repurchases and dividends and are now facing huge losses, particularly those who did so by massive corporate borrowing resulting in more than $14 trillion in corporate debt in the US which is almost equal to the entire US government debt of $18 trillion.

    • Revolt to save America

      let me make what he said SIMPLE, the biggest losers are the people. The people who let manageres invest their retirement in the market any way they want, you just get a statement telling you how much you have in retirement. The PEOPLE pay the price. Everything is manipulated, trust no one. Keep it simple, the facts of what’s going on are very simple. And as far as Coperations, they have sold out most of the US PEOPLE, moving their jobs over seas for cheap labor, so they make more on the bottom line, if a corp is doing great SURE they pay a buck an hour labor not 18 an hour like they use to when they had products made in the USA. My perspective , take away from all we say however you want. The free trade or there lack of will forever change AMERICANS quality of life, Thank you Nafta,

      • socalbeachdude

        Corporations are in business to MAKE PROFITS and they are not social welfare agencies or charities. If US workers do not suit their business models for making profits then they are simply gotten rid of and more economical labor elsewhere is obviously employed to produce products for corporations.

        • Gay Veteran

          which is why we need to shred all these “free trade” agreements which let fascist corporations ship American jobs to countries with slave labor wages and NO environmental regulations

          • socalbeachdude

            Well, those trade agreements were enacted by Congress and signed into law and WILL EXIST UNTIL AND UNLESS Congress decides to repeal or modify them.

          • Gay Veteran

            which will NEVER happen because the fascist corporations own Congress

          • socalbeachdude

            Where do you come up with that totally bogus notion, dude or dudette or whatever you are?

          • Gay Veteran

            hey socalSHILL, are the corporations paying you

  • socalbeachdude

    Losses are now accelerating in the US stock markets and the Dow is now down 291 points and NASDAQ is now down 71 point and the S&P 500 is now down 30 points. Meanwhile, the US dollar is now up to 98.64 on the DXY. Oil has plunged $1.39 to $48.60. The global Dow has plunged 40 to 2,489.

  • al

    I think the collapse is not here yet. What about QE4?

    • socalbeachdude

      The Federal Reserve versions of QE had NOTHING WHATSOEVER to do with the US equities (stock) markets and 100% of the QE funds ALWAYS REMAINED FULLY INSIDE THE FEDERAL RESERVE in the excess reserves accounts of the banks there where the proceeds were deposited by the Federal Reserve for the purchases of existing securities the Federal Reserve purchased from those banks.

      The Federal Reserve has NOTHING WHATSOEVER to do with the stock markets.

      • al

        Jim Rickards thinks that QE4 will be completely different than the first 3. He guesses that QE4 will bypass the banks and go straight to us in the form of a tax return or something similar

        • socalbeachdude

          Jim Rickards obviously has zero comprehension as to what the Federal Reserve’s versions of QE were and what they were not. The Federal Reserve is MERELY A CENTRAL BANK and is not some of kind of charity or welfare agency and does not even lend money to banks for anything other than very short term liquidity purpose on a fully collateralized basis. The Federal Reserve has nothing whatsoever to do with the IRS or tax returns and the Federal Reserve DOES NOT ‘GIVE” ANY MONEY TO ANYONE FOR ANY REASON.

          The banks had NO NET GAINS WHATSOEVER AS A RESULT OF THE FEDERAL RESERVE VERSIONS OF QE.

          QE was merely PRIVATE ASSET SHIFTING OPERATIONS BETWEEN THE FEDERAL RESERVE AND THE BANKS THAT SOLD SECURITIES AND HAD THE PROCEEDS FOR THAT DIRECTLY DEPOSITED INTO THEIR EXCESS RESERVES ACCOUNTS AT THE FEDERAL RESERVE.

          The Federal Reserve proceeds paid to the banks for the QE purchases of securities ACCOUNTS FOR NEARLY 100% OF THE $3+ TRILLION IN THE EXCESS RESERVES ACCOUNTS OF THE BANKS AT THE FEDERAL RESERVE. The “normal” account balances in those accounts in aggregate are around $25 billion.

          • al

            So where did the corporations get the money to buy back their own stocks? Did they use profits?

          • socalbeachdude

            Corporations got all of the money to buy back their own shares from EARNINGS of which they plowed back around 95% of those earnings into stock buybacks and dividends to boost the value of their shares along with massive corporate borrowing through bond issuance resulting in corporate debt in the US now soaring over $14 trillion for the 7,000 or so public corporations in the US which is only about $4 trillion less than the entire outstanding US government debt of $18+ trillion.

          • socalbeachdude

            Corporations got all of the money to buy back their own shares from EARNINGS of which they plowed back around 95% of those earnings into stock buybacks and dividends to boost the value of their shares along with massive corporate borrowing through bond issuance resulting in corporate debt in the US now soaring over $14 trillion for the 7,000 or so public corporations in the US which is only about $4 trillion less than the entire outstanding US government debt of $18+ trillion.

        • socalbeachdude

          What has nearly exclusively driven the US stock markets higher over the past 6 years is CORPORATE BUYBACKS OF THEIR OWN STOCKS and that had nothing whatsoever to do with the Federal Reserve.

      • Gay Veteran

        how QE helped the banksters:

        The Federal Reserve … operates its own financial Laundromat for troubled, in some cases criminal banks. The Fed’s loan laundry and downscale resale consignment shop first takes in the wash by purchasing non-performing, and therefore largely worthless financial assets (loans and loan-backed securities) to remove them from the books of private banks. (Another variant is for the Fed to swap the banks’ bad paper at face value for federal debt instruments, which replaces the banks’ non-performing assets having little, if any, resale value, with safe, interest-paying and highly marketable assets.). The Fed then launders the loans by reselling them back to the same group of banks at a fraction (10 percent or less) of the face-value price it paid the banks for them. Once the banks repurchase the spiffed up dirty loan laundry, it not only has turned a nifty 90-percent-or-more profit on the turn around, it also has a new asset it can put back into the stream of financial commerce at a price reflective of its true value.

        The Fed is a perfect vehicle to transform bad assets into good. It is weakly overseen without an independent audit and thus is able to intermediate the transformation of bad, illiquid assets into money (and near money) and then back again into valuable financial assets, all done secretly and anonymously. Unlike the polite, don’t-ask-don’t-tell fiction of private hedge-fund money laundering, however, the Fed says outright, “Don’t ask, because we aren’t telling,” even when asked again and again.

        Immediately after the 2008 financial meltdown, the Fed laundered more than $2 trillion in worthless assets held on the balance sheets of private banks. According to a watered-down 2011 audit of the Fed by the Government Accountability Office (GAO), there have been $16 trillion in Fed bailouts to banks and corporations around the world since the financial meltdown in 2008. Since that report, Bloomberg has reported on an additional $9 trillion in secret, off-balance-sheet Fed transactions that the central bank refuses to discuss. Now, Ben Bernanke is ginning up assembly-line washing machines at the Fed with QE∞ to spin an opened-ended, $40-billion-monthly cleansing campaign to purchase worthless mortgage backed securities from banks at face value, which could run to an additional $1.3 trillion loan laundering accompanied by downscale resales.

  • socalbeachdude

    The Dow just closed down 333 points, the NASDAQ closed down 82 points, the S&P 500 closed down 35 points, the Global Down closed down 43 points, gold closed down $7, and oil closed down $1.32 while the US dollar soared to 98.61 on the DXY at 1:00 pm PDT.

  • Bill

    When will the story be told about the strength of the dollar that is predicted to collapse ?

    • socalbeachdude

      Happy days are here again as the US dollar is poised to soar above 100 on the DXY and is now at 98.51 on the DXY after skyrocketing by 0.81 points today alone!

      The good thing now, however, with currency exchange values is that they are RETURNING TOWARDS PROPER FUNDAMENTAL EQUILIBRIUM LEVELS AMONGST EACH OTHER and the value of the US dollar is soaring and is now nearly 99 on the DXY and headed to well over 100 and perhaps as high as 164 where it last was briefly in February 1985.

      • Bill

        That tells a bit of the story!!! Thanks.

      • Gay Veteran

        high dollar hurts U.S. exports, and the foreign profits of U.S. owned countries

        • socalbeachdude

          Yes, indeed it does which is a huge reson why profits are collapsing at all major multinational US corporations this year.

  • socalbeachdude

    Today’s 333 point plunge in the Dow (DJIA 30) is the biggest drop since October 9, 2014. Today’s plunge is in addition to its 279 point plunge last Friday.

  • Rocketman

    One on hand, you hear about how vibrant our economy has become since the 08-09 recession. If the economy is chugging along so well, why will a simple interest rate hike rain on the parade? I have read that there are many job openings, with not a lot of hiring. Articles like that seem to be buried among all of the feel good articles.

    • socalbeachdude

      The Federal Reserve cannot do anything about employment in the US and the employment issues are STRUCTURAL where American employees have priced themselves out of viability coupled with government regulations and taxes making it very undesirable in most cases for companies to hire anyone in the US.

      As to US unemployment, it is around 32% currently when properly and fully accounted for, but s0 what? Hopefully it will move very substantially higher as we move towards fulfilling the dreams of a truly Utopian LEISURE CLASS SOCIETY where nobody “works.”

      THE LATEST COMPLETE US UNEMPLOYMENT REPORT

      100,915,000 Americans eligible and of working age now not working (31.73%)

      The US has a population of about 318,000,000 people.

      Let’s do some math:

      318,000,000 Total People in America on which all percentages based

      -69,156,000 Americans NOT ELIGIBLE for Labor Force (21.75%)

      248,844,000 Total population ELIGIBLE for working in the US (78.25%)

      -92,898,000 Americans ELIGIBLE for Labor Force “Not Participating” (29.21%)

      – 8,017,000 Americans ELIGIBLE and “actively seeking employment” (02.52%)

      147,929,000 Americans CURRENTLY WORKING (46.52% of all Americans)

      170,071,000 Americans CURRENTLY NOT WORKING (53.48% of all Americans)

      The GRAND GLOBAL DEPRESSION started in August 2007 and has been intensifying ever since and is now rapidly intensifying. There is nothing whatsoever the Federal Reserve can do about that, but the good news is that it will likely come to and end after sufficient deflation occurs between now and around 2040.

      • Rocketman

        Brother can you spare a dime?

        • socalbeachdude

          No. Go down to your local welfare office.

      • Gay Veteran

        “…where American employees have priced themselves out of viability….”

        compared to countries that have slave labor wages and NO environmental reguatlons

        • socalbeachdude

          True, but that’s the way it is and the only way to change that would be very high tariffs on goods imported into the US.

          • Gay Veteran

            that’s the way it is because the politicians sold out this country

          • socalbeachdude

            The politicians in Congress are doing just exactly what the vast majority of voters DEMAND THEY DO which is spending vastly more for benefits for them than the government takes in via tax revenues and throwing the difference on a tab which is never presented to the voters but rather financed in the US Treasury markets.

          • Gay Veteran

            the majority of the people did not support bailing out the banksters.
            and why did that happen? because the top 0.1% OWN Congress and the president

          • socalbeachdude

            There was NO NET COST WHATSOEVER in the so-called “bank bailouts” back in 2008-2009.

          • Gay Veteran

            (A) you missed the point: the majority of the people did not support bailing out the banksters.
            and why did that happen? because the top 0.1% OWN Congress and the president.
            (B) if you support the bankster bailout then you do not believe in capitalism, because in capitalism there is no “too big to fail”

          • socalbeachdude

            What on earth difference does it make what the “majority of the people” wanted or did not want back in 2008-2009? We do not live in some kind of vote-by-issue Democracy but live in a REPRESENTATIVE REPUBLIC and the elected officials – rightly or wrongly – made the decision to institute various financial programs back in 2008-2009 by the federal government.

            The bottom line is that hose programs including TARP HAD NO NET COST WHATSOEVER TO THE GOVERNMENT AND ITS TAXPAYERS.

            The overriding issue with banks is DEPOSITORS AND THEIR FUNDS. Hellllooooooooo?

          • Gay Veteran

            I see we have a shill for the banksters posting.
            hope you get paid well

          • socalbeachdude

            Where do you come up with such totally false and delusional nonsense?

          • Gay Veteran

            talking to a mirror, eh
            bankster shill

          • socalbeachdude

            Your absurd brainless attacks against the outstanding financial and banking professionals is beyond disgusting, dude.

          • Gay Veteran

            yet more proof you are nothing but a shill for the banksters who caused the economic collapse of 2008 with their bad mortgages (which they knew were bad)

          • socalbeachdude

            Your utter ignorance is beyond mindboggling, dude or dudette.

            As to 2008, NO BANKS HAD TO BE BAILED OUT AT ALL and the proper solution was to SIMPLY VOID ANY AND ALL DERIVATIVES rather than lending the banks and other financial concerns a single penny. When all was said and done, those “bailouts” ultimately had no net cost to the US government or Federal Reserve but they were all TOTALLY UNNECESSARY AND THE DEAD WRONG THING TO DO as many of us clearly stated at that time.

            Nearly all of the bogus 2008 so-called “financial crisis” was to one single thing: FASB RULE 157 which required financial firms to mark assets on their books to market.

            In fact, the real issue with liquidity issues in 2008 had very little to do with the actual balance sheets of the banks but had a everything to do with the implementation of the FASB RULE 157 “MARK TO MARKET” requirement that had just been imposed and all of the perceived problems with financial concern balance sheets totally vanished when FASB RULE 157 was essentially abolished (it was highly modified to remove “mark to market accounting”) by March 2009. The so-called “financial crisis” of 2008 to early 2009 was REALLY JUST A TOTALLY BOGUS “CRISIS” caused by accounting rules.

            No financial concerns we “saved by any bailouts” at all in 2008-2009. There was NO NET COST WHATSOEVER FOR ANY OF THOSE BAILOUTS to either the federal government nor to the Federal Reserve, but rather a profit to each of those parties which created a MAJOR EXPENSE FOR ALL OF THE FINANCIAL CONCERNS INVOLVED.

          • Gay Veteran

            “…As to 2008, NO BANKS HAD TO BE BAILED OUT AT ALL and the proper solution was to SIMPLY VOID ANY AND ALL DERIVATIVES rather than lending the banks and other financial concerns a single penny….”

            couldn’t void the derivatives, Goldman Sachs would have lost money

            “…Nearly all of the bogus 2008 so-called “financial crisis” was to one single thing: FASB RULE 157 which required financial firms to mark assets on their books to market….”

            still parroting the banksters line, which is how we got “mark to fantasty” where the assets are worth whatever the banksters say they are worth

            after bailing out the banksters they are now bigger than ever, and pose an incredible economic risk to the country

          • socalbeachdude

            I’d suggest you read and attempt to comprehend exactly what I stated 100% correct regarding FASB Rule 157 as you have again confirmed you have zero comprehension of when it was implemented and how it caused the “financial crisis” in 2008 and how that “crisis” totally disappeared in March 2009 after FASB Rule 157 was essentially reversed.

          • Gay Veteran

            hey socalSHILL, I suggest you stop lying to people

          • Gay Veteran

            in any normal country (that is, one not controlled by banksters), the Big Banks would have been dragged off to bankruptcy court and disposed of.
            We need banks, but not any particular banks

          • socalbeachdude

            Where do you come up with such utter nonsense? Banks are NOT INSOLVENT IN THE US at all nor were they ever insolvent back in 2008-2009.

          • Gay Veteran

            you are delusional, the banks had $billions in bad mortgages

          • socalbeachdude

            So what? That did not render the banks insolvent at all. Do you not understand what the definition of insolvent is?

          • Gay Veteran

            bankster shill, the government changed the bank accounting rules from “mark to market” (an asset is worth what it can be sold for in the market) to “mark to fantasy” (an asset is worth what the bankster says it is worth).
            now go peddle your bankster tripe elsewhere

          • socalbeachdude

            Where do you come up with such totally false and utterly bogus notions?

            The US government did no such thing at all and does not control the FASB (Financial Accounting Standards Board) which is an independent group in the accounting industry and the FASB is the entity that implemented FASB Rule 57 that caused all of the problems in late 2008 by requiring “mark to market” accounting on assets where that was not appropriate at all and that is what caused all of the panic in the financial industry in late 2008 until that Rule was rewritten and essentially reversed by March 2009.

            Facts About FASB

            Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organization in the private sector for establishing standards of financial accounting that govern the preparation of financial reports by nongovernmental organizations. Those standards are officially recognized as authoritative by the Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants.

          • Gay Veteran

            you are nothing but a bankster shill sent here to confuse people
            the Big Banks were bankrupt in 2008 and they remain bankrupt, propped up only by the Federal Reserve

          • socalbeachdude

            Why do you keep putting up extremely ignorant and totally false assertions. The big banks in the US were NOT “BANKRUPT” AT ALL in 2008 and they are NOT “propped up by the Federal Reserve” at all. Where do you come up with such utterly inane and totally false nonsense>

          • Gay Veteran

            you sure are busy defending the banksters.
            get paid by the word?

          • socalbeachdude

            Why more bogus assertions from you, dude or dudette?

          • Gay Veteran

            hey socalSHILL, quit licking the boots of the banksters

      • Catman

        Do you see any hyperinflation on the horizon?

        • socalbeachdude

          How could there be any actual inflation at all of any significant let alone so-called “hyperinflation” when we are in a rapidly intensifying GLOBAL DEFLATIONARY SPIRAL?

          • Catman

            I agree, and have been rather vocal about saying we are headed toward more and more deflation. I just wondered about your thoughts on that since I hadn’t seen it stated explicitly elsewhere.

  • socalbeachdude

    Yahoo! reported today tha US wholesale inventories up, sales post biggest drop since 2009.

  • socalbeachdude

    S&P 500 turns negative for 2015

  • al

    If corporate buybacks -with earnings and bond issuance-account for most of the US stock market growth, than who is buying the corporate bonds?

    • socalbeachdude

      Pension funds, hedge funds, insurance companies, individual investors, ETFs, mutual funds, and a whole host of other entities own the $14 trillion in US corporate bonds.

      • al

        I am still a little confused. most of the US stock market gains in the last six years have been corporations buying back their own stocks by issuing bonds and using earnings. Hedge funds, insurance companies, individual investors, etc. are buying the bonds. But, where are all of the earnings coming from? I know it sounds like a stupid question, but if only 70% of the country is working full time and wages are mostly stagnant, where are all of the EARNINGS coming from?

        • socalbeachdude

          What do you mean by asking “where are all the earnings coming from:?” when the aggregate amount of corporate profits is at record high levels in the United States?

          As to umployment, what on earth does that have to do with corporate earnings? The more people corporations have fired and laid off the HIGHER CORPORATE EARNINGS TO as employees as a huge cost to corporations.

          • al

            I work for a very large engineering consulting firm. Our earnings come from the direct time hours that we bill to the client who is using our services. Our clients range from private amd public energy companies, water and wastewater districts, etc. their earnings eventually come from individual households paying their utility bills. Individual households earn their money at work. This is the connection I am making between jobs and corporate earnings.

            So, to me, it seems that earnings really boil down to jobs.

          • socalbeachdude

            Well, that’s certainly not the way nearly all publicly listed corporations earn their money at all as they are not consulting services like the company you work for.

          • Catman

            What has caused the exceptionally high aggregate profits? From sales? From laying people off? Other?

          • socalbeachdude

            The reasons for record high corporate profits obviously vary from company to company and there is no single reason why they are at record high levels. Most all corporations have been engaging in MAJOR COST CUTTING including reduction of employees and are also benefiting from record low finance rates on debt. Some corporations such as Apple also have record high sales and that is also true of a number of other rapidly growing companies.

          • Catman

            Thank you for your reply. Have the low debt financing rates to repurchase stock been a direct result of Zirp? If so, what kind of an interest rate can a healthy corporation get to repurchase their stock?

          • socalbeachdude

            How many times does it need to be stated that THE FEDERAL RESERVE DOES NOT SET INTEREST RATES IN THE US ECONOMY AND SIMPLY FOLLOWS THE US TREASURY MARKET 3 MONTH YIELDS ON THE ONLY 2 INTEREST RATES THEY SET WHICH HAVE NO AFFECT WHATSOEVER ON INTEREST RATES THAT MATTER IN THE US ECONOMY?

          • Catman

            I understand. I realize from another of your posts that(if I understand correctly) these corporations are not borrowing $ from a federal reserve bank at super low interest rates but are rather floating out bonds with low yields from pension funds, hedge funds, private investors, etc. What do you see as the next major shoe to drop that will cause the markets to really deflate and for serious panic to settle in? Will the average person on the street see anything different from what happened in 2008 beyond massive layoffs?

          • socalbeachdude

            That trigger is already happening:

            THE METEORIC RISE OF THE US DOLLAR

          • Catman

            Yes, I have followed that. How do you believe a really strong dollar will end up seriously hurting our economy beyond the obvious export disadvantage and multinational corporation issues when Euros or whatever are converted back to dollars at a loss? Do you think those two outcomes alone will be sufficient to implode our entire economy? If not, what else do you see happening along side this to bring on massive deflation/depression?

          • socalbeachdude

            I don’t see a strong dollar “hurting” the US economy at all, but it certainly will lead to a major reduction in corporate profits (as is the case already) with the US dollar rising over 22% during the past year and that will accelerate the collapse in ASSET BUBBLES SUCH AS STOCKS which are preposterously overpriced and which will return to normal equilibrium levels (with huge losses for manic speculators who ignored fundamentals for the past 6 years).

            Overall, a very strong dollar will diminish inflation to the point of deflation for all of the goods IMPORTED into the US, and since the US is a NET IMPORTER this help reduce the US trade deficit and keep the prices of goods for consumers down.

            As to exports, they really must be divided into 2 classes. First, price inelastic goods such as high-value added products such as machine tools, airplanes, military hardware, construction equipment, etc. will not see any real disadvantage from the rising value of the US dollar. Second, price elastic goods such as commodities including grains. other farm products, etc. will suffer as they become much more expensive as imports into other countries and are FUNGIBLE and easily substituted by other equivalent commodities at lesser prices than those exported from the US.

            As to the overall entire US economy, a strong US dollar is REALLY GENERALLY NEUTRAL and will not have much impact or affect on the US economy at all and has no real affect on goods and services produced in the US and the US is now primarily a SERVICE ECONOMY.

            I don’t expect any “massive deflation” but rather just a general intensification of the GLOBAL DEFLATIONARY SPIRAL with further big drops in commodities primarily as the GRAND GLOBAL DEPRESSION which started in August 2007 intensifies over the coming years and decades.

          • Gay Veteran

            strong dollar great for countries sending their goods to the U.S., bad for U.S. companies exporting (which will lead to more layoffs)

          • socalbeachdude

            Layoffs and firings at US companies are very good for corporate profits.

          • Gay Veteran

            and again you are WRONG:

            the federal reserve has lowered interest rates through quantitative easing, by buying massive amount of U.S. government bonds

          • socalbeachdude

            The Federal Reserve versions of QE had little to nothing to do with any interest rates at all.

          • Gay Veteran

            prove it

  • socalbeachdude

    The WSJ is reporting that “The euro fell 1.5% to trade at $1.0697 against the dollar, its lowest level in nearly 12 years, a day after the ECB began buying government debt in an effort to drive up inflation and boost a fragile economy.”

  • Rufus T Firefly

    Ignore the nattering nabobs of negativism. This bull market has only just begun.

    • socalbeachdude

      So-called “bull markets” typically last only 18 months and this one has been going on for a full 72 months and is now CRASHING which will result in the biggest plunges in the history of stock markets.

      By the way, all US stock market gains for 2015 were totally WIPED OUT TODAY and the markets are now negative for the year.

  • Scott

    # 8. The Fed is about to raise interest rates.

    • socalbeachdude

      It wouldn’t matter a hoot if the Federal Reserve raised the Federal Funds rate to 1000% tomorrow.

      It really doesn’t matter a hoot what the Federal Reserve does with the only 3 interest rates they are involved with.

      The Federal Reserve HAS NO CONTROL OVER INTEREST RATES in the US economy as they are SET IN THE BOND MARKETS with the 10 year US Treasury yield ( interest rate) being the key benchmark rate off which affects most other major interest rates in the US economy are keyed including mortgages.

      It really doesn’t matter a hoot what the Federal Reserve does with the only 3 interest rates they are involved with.

      The only 3 rates that the Federal Reserve is involved with setting are:

      1) Federal Discount Rate – currently 0.75%

      2) Federal Funds Rate (which it influences) – currently 0.25%

      3) Federal Reserve IOER (Interest On Excess Reserves) – current 0.25%

      Both the Federal Discount and Federal Funds rates are only for VERY SHORT TERM LIQUIDITY PURPOSES AND APPLY ONLY TO BANK BORROWING, with the Federal Discount rate being for direct borrowing by banks from the Federal Discount Window at the Federal Reserve and the Federal Funds rate being for interbank borrowing.

      The most important interest rates in the US economy are the yields on 10 year US Treasuries which are set by the market.

      The Federal Reserve is the one that FOLLOWS THE BOND MARKETS FOR US TREASURIES WHEN THEY SET THE ONLY 3 INTEREST RATES THEY SET, so the markets for US Treasuries are where all interest rates that matter – including those set by the Federal Reserve – are determined in the US economy.

      The Federal Reserve SIMPLY FOLLOWS THE US TREASURY MARKETS when it comes to setting the only 3 interest rates they control, all 3 of which have nothing whatsoever to do with interest rates that matter in the US economy all of which are keyed off yields (interest rates) on US Treasuries.

      As Sandy Greenlyn stated recently over on MarketWatch, “It’s interesting how few people understand that the Fed funds rate chases the market-driven 3M T-Bill exactly and they have never deviated at all.”

      The Federal Reserve has NOTHING WHATSOEVER TO DO WITH THE STOCK MARKETS.

      • Scott

        Hogwash.

        • socalbeachdude

          What I stated above is 100% true and correct. IT DOESN’T MATTER A HOOT WHAT THE FEDERAL RESERVE DOES WITH ANY OF THE TRIVIAL 3 INTEREST RATES THEY SET AT ALL and the Federal Reserve SIMPLY ALWAYS FOLLOWS THE US TREASURY MARKETS ON INTEREST RATES which is where all interest rates that matter in the US economy are keyed off.

          • Scott

            The Prime lending rate has always followed the moves of the Fed discount rate, which effects mortgage rates, auto loans, margin loans, etc. Go back and start from 1929 and review the Fed’s monetary actions from the great depression through every major recession since. Go review Volker’s aggressive tightening in 1979 and its economic effect in the early 80’s. The Fed doesn’t follow, it manipulates rates. The treasury markets moves in anticipation of Fed action.

          • socalbeachdude

            Just like all other interest rates that actually matter to the US economy, the so-called “Prime Rate” is based on YIELDS OF US TREASURIES and has nothing whatsoever to do with the Federal Discount Rate.

            The Federal Discount Rate is only applicable to direct borrowing by banks from the Federal Reserve through the Federal Discount Window sand is presently at 0;.75% which is 300% the amount of the current Federal Funds Rate of 0.00% to 0.25%.

            The Federal Reserve NEARLY ALWAYS FOLLOWS THE US TREASURY MARKET YIELDS AND VIRTUALLY NEVER LEADS THE WAY WITH ANY CHANGES IN INTEREST RATES.

            As Sandy Greenlyn stated recently over on MarketWatch, “It’s interesting how few people understand that the Fed funds rate chases the market-driven 3M T-Bill exactly and they have never deviated at all.”

          • Scott

            The 10 year note was near 3% a year ago without any follow up FED rate increases. On the other hand, Banks have historically adjusted the prime rate following FED rate increases. The FED charges them more, they charge the consumer more.

          • socalbeachdude

            The only 2 rates (leaving aside the internal IOER rate) set by the Federal Reserve (Federal Discount Rate and Federal Funds Rate) are KEYED OFF THE 3 MONTH TREASURY BILL and not the 10 year US Treasuries as those 2 rates are for VERY SHORT TERM (TYPICALLY OVERNIGHT) BORROWING, not for longer term lending and are only applicable to loans on a fully collateralized basis strictly for liquidity purposes in clearing banking transactions.

            As Sandy Greenlyn stated recently over on MarketWatch, “It’s interesting how few people understand that the Fed funds rate chases the market-driven 3M T-Bill exactly and they have never deviated at all.”

          • Scott

            And who manipulates those T Bill rates with treasury purchases and sales, The Fed. So adjustments in fed funds and discount rate are just another result of the Fed’s own meddling.

          • socalbeachdude

            The Federal Reserve does no such thing at all as you assert. The Federal Reserve has always been actively involved in the bond markets as to US Treasuries but their influence there is minimal as to yields as the Federal Reserve only holds about 12% of US Treasuries and only buys about 8% of US Treasuries each year most of which is the replaced matured Treasuries they hold as assets.

          • Scott

            Nonsense. The Fed makes purchases and sales of securities to dealers and banks resulting in increased or decreased bank reserves, which increases or decreases the fed funds rate. It also influences bank reserves by controlling the discount rate of last resort loans from regional reserve banks. This effects how much additional reserves commercial banks are credited with which effects rates. Do some research on it’s open market operations.

          • socalbeachdude

            What I stated is 100% correct, dude.

            The Federal Reserve’s purchases and sales of securities (US Treasuries) to primary dealers which are the top 20 banks in the US does increase or decrease liquidity (reserves) through their TOMO (Temporary Open Market Operations) and POMO (Permanent Open Market Operations), BUT THAT HAS NO AFFECT WHATSOEVER ON THE FEDERAL FUNDS RATE which is an EXPLICITLY STATE RATE (OR RATE RANGE) set by the Federal Reserve’s FOMC.

            As to the Federal Discount Rate which is now 0;75% (300% of the Federal Funds Rate) that is only applicable to banks borrowing directly from the Federal Reserve and is VIRTUALLY NEVER USED except in major liquidity squeezes. By the way, the FEDERAL RESERVE NEVER ALLOWS ANY LENDING TO BANKS THROUGH THE FEDERAL DISCOUNT WINDOW FOR SOLVENCY PURPOSES and any and all lending under either the Federal Discount Rate to banks directly from the Federal Reserve and any interbank lending under the Federal Funds Rate are only done on a FULLY COLLATERALIZED BASIS and then only for very short terms (typically overnight) strictly for liquidity purposes.

            Banks are currently AWASH IN VAST EXCESS LIQUIDITY and there is practically no borrowing being done on an interbank basis at all with the Federal Funds Rate now. Banks now have MORE THAN $3 TRILLION IN EXCESS RESERVES IN THEIR OWN EXCESS RESERVES ACCOUNTS AT THE FEDERAL RESERVE whereas historically the aggregate excess reserves in the bank excess reserves accounts at the Federal Reserve has been around $25 billion.

            The current VAST EXCESS RESERVES in the banking system both in the banks themselves where the loans outstanding rate to customer deposits is at a record low 67% and at the Federal Reserve essentially RENDERS TRADITIONAL Federal Reserve POMO AND TOMO nearly completely irrelevant.

          • socalbeachdude

            The Federal Reserve does not charge the Federal Funds Rate to anyone. That is the rate (or currently rate range at 0.00% to 0.25%) specified by the Federal Reserve for banks to charge each other when borrowing from each other.

            NO BORROWING CAN EVER BE DONE BY BANKS UNDER THE FEDERAL FUNDS RATE TO LEND ANY MONEY TO ANYONE any bank borrowing done by banks from each other or from the Federal Reserve may only be done with the following conditions:

            1) Amounts borrowed must be fully collateralized

            2) Borrowing is only for very short term durations (typically limited to overnight)

            3) Borrowing can only be done strictly for LIQUIDITY PURPOSES to clear transaction imbalances among banks for nightly settlement of accounts

            The Federal Reserve only charges the Federal Discount Rate through the Federal Discount Window when banks borrow directly from the Federal Reserve and that rate is now 0.75% which is 300% (3 times) the Federal Funds Rate at which banks can borrow from each other and is simply rather moot as no banks are borrowing from the Federal Reserve at all.

          • Gay Veteran

            the Fed works indirectly:

            the federal reserve has lowered interest rates through quantitative easing, by buying massive amount of U.S. government bonds

          • socalbeachdude

            False. Where do you come up with such utter nonsense, dude?

          • Gay Veteran

            if it is false then you should have an easy time disproving it

          • Gay Veteran

            once again, the federal reserve has lowered interest rates through quantitative easing, by buying massive amount of U.S. government bonds

          • socalbeachdude

            FALSE.

          • Gay Veteran

            you need to stop misleading people

          • socalbeachdude

            What I have stated is 100% true and correct.

          • Gay Veteran

            100% bankster shill drivel

          • socalbeachdude

            What I stated above is, of course, 100% accurate, true, and correct.

          • Gay Veteran

            the federal reserve has lowered interest rates through quantitative easing, by buying massive amount of U.S. government bonds

          • socalbeachdude

            That is a totally false assertion. The Federal Reserve versions of QE have had LITTLE TO NOTHING TO DO WITH ANY INTEREST RATES at all. They have not bought “massive amounts of government bonds” at all but have simply purchased around $2.1 TRILLION OF EXISTING US TREASURIES FROM THE ASSET BOOKS OF MEMBER BANKS.

      • Gay Veteran

        you keep repeating the same DRIVEL:

        the federal reserve has lowered interest rates through quantitative easing, by buying massive amount of U.S. government bonds

        • socalbeachdude

          False. The Federal Reserve versions of QE have had LITTLE TO NOTHING TO DO WITH ANY INTEREST RATES at all. They have not bought “massive amounts of government bonds” at all but have simply purchased around $2.1 TRILLION OF EXISTING US TREASURIES FROM THE ASSET BOOKS OF MEMBER BANKS.

          • Gay Veteran

            riiiiiiiiiiight, $2.1 TRILLION is tiny!

            the primary purpose of QE was to help finance the Federal debt and to increase the value of the bankster’s assets

          • socalbeachdude

            False. Your comprehension regarding the Federal Reserve versions of QE is sadly deficient.

            Banks did not have to sell any assets at all. Banks CHOSE TO SELL ASSETS AS PART OF QE to the Federal Reserve in exchange for cash proceeds being deposited into their excess Reserves accounts inside the Federal Reserve.

            At no time did the Federal Reserve ever purchase anything other than FULLY PERFORMING VERY HIGH QUALITY ASSETS FROM ANY OF THE BANKS AS PART OF QE OR OTHERWISE. That is fully confirmed by the fact that the Federal Reserve is now generating profits of more than $100 billion a year on its assets portfolio, and 94% of those profits are rebated to the US Treasury each year as has always been the case.

            PURPOSES OF THE FEDERAL RESERVE VERSION OF QE

            There were 3 reasons for the Federal Reserve version of QE.

            First, it was essentially a HOAX to make it look like the Federal Reserve was doing all it could to “stimulate” the economy and provide a “wealth effect” to try to life economic activity and asset prices.

            Second, and much more important in reality, the primary purpose of QE was TO CREATE A LARGE LIQUIDITY POOL OF EXCESS RESERVES OWNED BY THE BANKS AT THE FEDERAL RESERVE so that the banks would not have to sell off assets such as securities at fire sale prices in the next financial crises, panics, and shocks but rather could turn to that liquidity pool at the Federal Reserve to clear transactions, particularly from bad derivatives plays.

            Third, QE lowered the government interest on its massive $17.5 trillion debt because the Federal Reserve increased its holdings of US Treasuries to over $2 trillion making the interest on those ESSENTIALLY FREE to the US government because the Federal Reserve operates as a NOT-FOR-PROFIT entity and rebates 100% of its annual profits each year to the US Treasury after paying a modest 6% annual dividend to its member bank shareholders.

            That mission has now been fully accomplished with a LIQUIDITY POOL OF $3.0+ TRILLION in the excess reserves of the banks at the Federal Reserve which will act as a cushion in the next series of crises.

          • Gay Veteran

            STILL shilling for the banksters. Do you get paid by the word?

            “…

            The other purpose for instituting QE takes us back to the actions that caused the most recent economic debacle. Remember ‘toxic assets’? Toxic assets were the infamous CDO’s (collateralized debt obligations). Those were bundles of ‘assets’ that the speculators were creating and using for more speculation. The other purpose of QE was to remove more of those toxic assets from the economy.

            For the economy, the existence of those toxic assets was not only the cause of the initial crisis, but an ongoing problem. They were on the books of the banks and other financial businesses that had been holding them when the music suddenly stopped. They represented some nominal amount of money, even though they were worthless. In total, they represented trillions of dollars. They could neither be sold nor used as collateral for normal financial activity. They were clogging up the works, plaque in the arteries of the economy.

            Into the breach rode the Fed with QE. Government had done some cleaning up of the mess through TARP and other programs, but the scale was nowhere near adequate. The Fed had tried other programs to absorb or otherwise remove toxic assets, but the overall performance of the still-moribund economy indicated that not enough was getting done. So the Fed decided to have the Treasury Department print money to use to get those ‘assets’ out of the system and into its vaults….”

          • socalbeachdude

            False. The Federal Reserve versions of QE had nothing whatsoever to do with “toxic asserts” at all. The Federal Reserve only purchased top rated FULLY PERFORMING MBS instruments from banks as part of QE.

            The Federal Reserve has been EARNING RECORD PROFITS ON ITS ASSETS which obviously totally disproves your utterly false and totally bogus assertions.

          • Gay Veteran

            why does socalSHILL continue to lie about the banksters and the Federal Reserve?

          • socalbeachdude

            If Congress had remained in control of money creation in the US we would have a catastrophic out of control fiscal disaster in the US.

            The Federal Reserve has done an absolutely superb job of managing the money supply and monetary policy in the US over the past 101 years during which time the US has become the biggest economy in the world and the wealthiest country in the world with over $180 trillion in assets which are offset by only about $60 trillion in debt resulting in around $120 trillion in net aggregate assets in the US..

            Without the Federal Reserve and its monetary policy and influence over the past 100 years, wouldn’t the US still be the irrelevant backwater banana republic that it was back in 1913 as opposed to the economic superpower of the world – by far – with the world’s reserve currency used in 85% of all global transactions and the wealthiest nation in the world with over $180 trillion in assets?

            The Federal Reserve has an excellent web site which explains all of the operations, functions, and details about the Federal Reserve and the Federal Reserve Act and anyone wanting to learn more about the Federal Reserve can peruse all of that information including their fully audited and highly detailed independently audited annual financial reports as well as a wealth of other information and statistics at the Federal Reserve’s web site.:

          • Gay Veteran

            I sure hope socalSHILL gets paid by the word!

  • FortuneSeek3rz

    Absolutely phenomenal time to be an American. Plentiful jobs, strong dollar, excellent innovation and technological advancement. An endless stream of immigrants to replace demand from the outgoing baby boomer generation. You can’t set it up any better than this!

    • socalbeachdude

      Unemployment is now over 32% in the US and 93 million of the 318 million Americans are now not working. The strong US dollar is SLAMMING DOWN THE PROFITS OF US COMPANIES particularly of publicly listed multi-national US corporations. The huge stream of illegal immigrants is causing massive costs and other problems in the US. You can’t set it up any better than this for the MOST MASSIVE CRASH THE EQUITIES (STOCK) MARKETS HAVE EVER SEEN IN US HISTORY.

      • FortuneSeek3rz

        There is no perfect economy, but the U.S. is still the best globally. The U6 number is pretty high but Americans are still enjoying dollar dominance. And, you can short the markets and make even more wealth. Inverse ETF’s and such.

        It’s a great time to be living in an era where you can get rich when the stock market tanks.

        • socalbeachdude

          The US is certainly not the best economy globally at all and is a DISASTROUS DEBT WRECKAGE WITH MASSIVE ASSET BUBBLES and over $60 trillion in aggregate debt across all sectors of the US economy.

          As to the US dollar, that benefits the US mostly because the US is large NET IMPORTER but damages the US economy – especially as to corporate profits – as that translates into much lower earnings from abroad which affects most all of the publicly listed 7,000 corporations on the US stock markets. A strong dollar also cause major downturns in US exports that are price elastic such as commodities.

          • FortuneSeek3rz

            The treasury can easily service the debt because the U.S. bond market is so healthy. Also, total national assets is around 115 trillion dollars, so in terms of collateral the U.S. is quite bouyant. Also, due to the immense number of patents and intellectual property owned by businesses and individuals on U.S. soil, the future is looking extremely bright. Innovation starts in the United States of America.

          • socalbeachdude

            Are you somehow not aware that the authority of the US Treasury to issue even a single $1 more in net debt ENDS ON MARCH 15, 2015 when the federal debt ceiling suspension approved by Congress last fall expires?

          • Gay Veteran

            “The treasury can easily service the debt because the U.S. bond market is so healthy…..”
            because the Federal Reserve through QE has been buying U.S. bonds.
            using your “logic” we should just issue $10 trillions in bonds and give the money to every American

          • socalbeachdude

            The Federal Reserve DOES NOT “GIVE” MONEY TO ANYONE. The Federal Reserve is not some kind of government welfare agency or charity. Where do you come up with such utter nonsense?

          • Gay Veteran

            reading comprehension problems, eh?

          • Gay Veteran

            try actually reading:

            using your “logic” we should just issue $10 trillions in bonds and give the money to every American

          • socalbeachdude

            Huh, dude? If anything, Americans should be sent a bill for the $18 trillion in government debt.

          • Gay Veteran

            ignore the point since you’re losing

          • FortuneSeek3rz

            Since the Fed ended “QE 3″ the yield on the 10 yr has dropped below 2%. That is a function of a healthy global bond market for U.S. debt. Meanwhile, Greece’s 3 year note just eclipsed 21%.

          • Gay Veteran

            are you finally telling some truth, socalSHILL

        • Gay Veteran

          enjoying dollar dominance?!?!?!?
          hard to do all that “enjoying” when you don’t have a job

          • FortuneSeek3rz

            If you don’t have a job you get unemployment paid in the world’s reserve currency, the U.S. dollar. Venezuelans, Ukrainians and Syrian’s can only dream of such a scenario. The U.S. has all the bases covered.

      • boogle

        deep breaths dude…deep breaths

  • durango

    The fed will just print more money and the stocks will go back up.

    • socalbeachdude

      That is a ludicrously false assertions. The Federal Reserve has NOTHING WHATSOEVER TO DO WITH THE STOCK MARKETS and 100% of the QE funds ALWAYS REMAINED INSIDE THE FEDERAL RESERVE in the excess reserves accounts of the banks there from whom the Federal Reserve purchased securities. Not a single penny of any of the Federal Reserve QE funds ever even left the Federal Reserve and obviously had nothing whatsoever to do with the stock markets at all.

      The huge surges since March 9, 2009 in the stock markets has nearly 100% been the MASSIVE STOCK REPURCHASES BY CORPORATIONS of their own stocks with funds from both their earnings and MASSIVE BOND ISSUANCES which has run up US corporate debt for the around 7,000 US publicly listed corporations to over $14 trillion which is nearly the same amount of total debt of $18+ trillion owed by the US government.

      • FortuneSeek3rz

        AP, is that you?

  • boogle

    half a job adolf

  • socalbeachdude

    The US dollar has now soared to a fresh 12 year high and is at 99.75 on the DXY which is just 0.25 points below reaching 100.

  • socalbeachdude

    The US dollar is likely within hours or even minutes of crossing 100 on the DXY and is now 99.95 in Asian markets at a new 12 year high up another .27 after today’s US close.

    Happy days are truly here again!

  • Barry Goldwater

    Everyone would be affected by a collapse of these proportions. It would produce asset liquidations, facility closings , mass lay- offs , mortgage calls, and a decline of activity across the board as everyone climbs into the economic trenches trying desperately to save what little they have left. We have not seen anything like this and all we have is the history of 1929 to guide us.
    For years we’ve been told by the educational system , by financial experts, bankers and politicians that nothing like 1929 can happen again. For years they were correct , but now they are mistaken because none of them could have foreseen an America drowning in debt both public and private. So much debt that many do not wish the subject even to be mentioned. It’s like mentioning a crazy Aunt in the family .
    The Debt Bomb is ticking and it’s like a noose around the economy’s neck getting tighter with each passing day until finally one day ———— !

    • socalbeachdude

      Deleveraging is a very good thing, and the more the better.

    • Flippah

      I’m the crazy Uncle/cousin yet I can see the forest through the trees.

  • socalbeachdude

    The US dollar has now crossed 100 on the DXY on March 13, 2015 and is at 100.29 up 1.07 and is on its way on a wonderful new journey towards the range of 120 to 140 on the DXY.

    How high will the US dollar go on the DXY? Will it reach 164 where it was in 1985? Will it go even higher?

  • Gay Veteran

    “…the employment issues are STRUCTURAL where American employees have priced themselves out of viability coupled with government regulations and taxes making it very undesirable in most cases for companies to hire anyone in the US….”

    the fascist corporations have shipped millions of American jobs to countries with slave labor wages and NO environmental regulations, the result is the destruction of the middle class in America

    • socalbeachdude

      So what? Corporations are in business to MAKE PROFITS and they are not charities or social welfare agencies. they will deploy jobs wherever it MAKES THE MOST ECONOMIC SENSE AND PROFITS.

      As to the so-called “middle class” in America, they have been VASTLY OVERPAID for far too long and most of then aren’t worth 99 cents an hour which is why they are being laid off wherever and whenever corporations can successfully do that and that will accelerate as we move forward.

      • Gay Veteran

        “…As to the so-called “middle class” in America, they have been VASTLY OVERPAID for far too long and most of then aren’t worth 99 cents an hour….”

        what a smug arrogant piece of garbage you are!!!

        again, we need to shred all these “free trade” agreements which let fascist corporations ship American jobs to countries with slave labor wages and NO environmental regulations

        • socalbeachdude

          America has a huge population of people who are so stupid that they are TOTALLY UNEMPLOYABLE which is why so many of them are unemployed, and those that are aren’t worth a tiny fraction of what they are being paid.

          • Gay Veteran

            you are an arrogant piece of garbage who doesn’t care about the American people, you care only for the banksters

          • socalbeachdude

            Again, a totally absurd assertion from you. Your utter disrespect for the fine professionals and wonderful folks in the banking and financial industries is both despicable and disgusting.

          • Gay Veteran

            socallSHILL is back defending the banksters

          • Gay Veteran

            here’s yet another example of “the fine professionals and wonderful folks in the banking and financial industries”:

            Bank of New York Mellon Will Settle Currency Trade Case for $714 Million

            By BEN PROTESS

            The bank had assured clients they would get currency trades at the best possible price. The opposite was, in fact, true….”

          • socalbeachdude

            That is just more blatant harassment and extortion of the banks, and Melon should have refused to settle for a single penny in that matter. Banks have ALWAYS CHARGED FOR CURRENCY EXCHANGE and can charge any reasonable amounts they want on such exchange as all banks do.

          • Gay Veteran

            socal the deceiver, defender of banksters

  • Gay Veteran

    once again you are WRONG:

    the federal reserve has lowered interest rates through quantitative easing, by buying massive amount of U.S. government bonds

    • socalbeachdude

      Contrary to your utterly bogus assertions, the Federal Reserve has done no such thing at all. The Federal Reserve only owns about 12% of the US government debt of $18+ trillion with its current holdings of just around $2.1 trillion in US Treasuries.

      • Gay Veteran

        12%? prove it.
        and what percentage of the annual bond sales did they buy in 2009-2014?

        • socalbeachdude

          Simply read the balance sheet of the Federal Reserve and the confirming holdings of US Treasuries at the US Treasury web site.

          • Gay Veteran

            Federal Reserve been audited? no, so why should I read your master’s “facts”?

          • socalbeachdude

            The Federal Reserve is FULLY INDEPENDENTLY AUDITED EACH AND EVERY SINGLE YEAR and that is clearly stated in their financial statements which span about 500 pages each year.

          • Gay Veteran

            Senator Rand Paul re-introduces ‘Audit the Fed’ bill
            By Michael Flaherty
            WASHINGTON Wed Jan 28, 2015

            Republican Senator Rand Paul, a potential 2016 presidential candidate, on Wednesday re-introduced a bill that would expose the Federal Reserve’s monetary policy discussions and decisions to a congressional audit.

            The Kentucky senator’s move to re-introduce the bill, along with 30 co-sponsors, comes as Republican lawmakers and some Democrats increase their efforts to rein in the U.S. central bank and make it more transparent….”

          • socalbeachdude

            The problem is that this “Audit the Fed bill” is nothing other than HARASSMENT OF THE FEDERAL RESERVE AND AN ATTEMPT TO MEDDLE IN MONETARY POLICIES THAT HAVE NOTHING WHATSOEVER TO DO WITH ACCOUNTING MATTERS.

            The total increase in the size of the balance sheet of the Federal Reserve from 2007 until present has been less than $3.7 trillion with the balance sheet frowing from around $800 billion to a maximum of $4.5 trillion and that is now shrinking and has been since November 2014.

            At no time over the past 10 years did the Federal Reserve have more than $1.5 trillion in loans outstanding to anyone and those were all on a fully collateralized basis for very short terms (typically overnight) for the SOLE PURPOSES OF LIQUIDITY OF MEMBER BANKS and all of those were rapidly repaid with interest charged as t the Federal Discount Rate of 0.75%.

            The Federal Reserve each and every year issues FULLY INDEPENDENTLY AUDITED FINANCIAL STATEMENTS and has done so for the entire 101 years of its existence. As to audits, the Federal Reserve has a very rigorous auditing procedure which it strictly adheres to for each of its 12 regional banks.

            How the Federal Reserve Is Audited

            All Federal Reserve Banks and branches are audited and examined regularly. The scope and frequency of audits are based on the specific risk factors in each Bank’s operations.

            Internal audits involve verification of assets, liabilities, and items held in custody.

            Auditors evaluate the adequacy of internal controls and compliance with prescribed procedures. Major automated systems also are checked for security and effectiveness.

          • Gay Veteran

            socalSHILL trying to defend his bankster masters

  • socalbeachdude

    The Federal Reserve versions of QE have had LITTLE TO NOTHING TO DO WITH ANY INTEREST RATES at all. They have not bought “massive amounts of government bonds” at all but have simply purchased around $2.1 TRILLION OF EXISTING US TREASURIES FROM THE ASSET BOOKS OF MEMBER BANKS.

  • Gay Veteran

    you have MASSIVE postings here (and it appears for the first time), sure signs that you are a paid troll

    • socalbeachdude

      Another totally bogus assertion from you.

      • Gay Veteran

        your massive postings speak for themselves, bankster shill

        • socalbeachdude

          Another bogus assertion from you, I see.

          • Gay Veteran

            is socalSHILL still here? Hellllllllllllooooooo?

  • Gay Veteran

    it is AMAZING you have such massive postings (and it appears you are a first time poster here), sure signs we are dealing with a paid troll

    • socalbeachdude

      Why are you making such TOTALLY FALSE and utterly stupid assertions, dude?

      • Gay Veteran

        why are you such a bankster shill, dude?

        • socalbeachdude

          Your rude and pathetic attitude towards the fine professionals in the banking and financial industries is appalling.

          • Gay Veteran

            everybody now knows that socalSHILL is paid to defend the banksters

          • socalbeachdude

            That is both a totally stupid and false assertion, dude or dudette.

          • Gay Veteran

            if you’re getting paid by the word then you are doing well the past few days deceiving people

  • socalbeachdude

    That is a DEAD WRONG OPINION PIECE from some clueless dolt.

    • Gay Veteran

      you must be working overtime at bankster shilling.
      dead wrong? prove it

      • socalbeachdude

        More utterly bogus assertions from you, I see.

        • Gay Veteran

          socalSHILL is back

  • socalbeachdude

    That is just DELUSIONALLY FALSE AND TOTALLY BOGUS nonsense from the clueless dolts over at ZeroBrains. Why put up such disinformation debris?

    • Gay Veteran

      socalSHILL hates Zero Hedge and the truth, beware of this deceiver

      • socalbeachdude

        The clueless propagandists and dolts over at ZeroBrains have zero credibility.

        • Gay Veteran

          says the SHILL for the banksters

  • socalbeachdude

    Corporations make financial decisions in the BEST INTERESTS OF THEIR SHAREHOLDERS who own them and they certainly are not some kind of welfare agencies for the absurdly overpaid “middle class” which you delusionally appear to “think” they should be.

    • Gay Veteran

      you are nothing but a tool being used to destroy the American middle class. Hellllllllllllooooooo?

  • Flippah

    I called a Wal- Mart, here in the Midwest, for a electronic item and the guy said they are running low on most electronic items due to the longshoremans strike.

  • ed

    Thank you socal

Rapture Verdict Ad1
Ready Made Resources 2015
New Self Defense Tool
High Blood Pressure?

Silver.com

MHSale_micheal
Lifestraw
Economic Collapse Investing
Lifesilver
Panama Relocation Tours
The 1 Must Own Gold Stock
The Babylon Code
180x350
Marzulli Gift Offer
Coach David
Solar Wholesale
Karatbars
Credible Warning
theeconomiccollapseblog_160x160_01
ProphecyHour
Facebook Twitter More...