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Bubbles, Bubbles Everywhere

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Financial Bubbles - Public DomainIs there any doubt that we are living in a bubble economy?  At this moment in the United States we are simultaneously experiencing a stock market bubble, a government debt bubble, a corporate bond bubble, a bubble in San Francisco real estate, a farmland bubble, a derivatives bubble and a student loan debt bubble.  And of course similar things could be said about most of the rest of the planet as well.  In fact, the total amount of government debt around the world has risen by about 40 percent just since the last recession.  But it is never sustainable when asset prices and debt levels increase much faster than the overall level of economic growth.  History has shown us that all financial bubbles eventually burst.  And when these current financial bubbles in America burst, the pain is going to be absolutely enormous.

You know that things are getting perilous when even the New York Times starts pointing out financial bubbles everywhere.  The following is a short excerpt from a recent NotQuant article

The New York Times points out that just about everything on Earth is expensive by historical standards.   And then asks the seemingly obvious question:  Does that make it a bubble?

Welcome to the Everything Boom — and, quite possibly, the Everything Bubble. Around the world, nearly every asset class is expensive by historical standards. Stocks and bonds; emerging markets and advanced economies; urban office towers and Iowa farmland; you name it, and it is trading at prices that are high by historical standards relative to fundamentals. The inverse of that is relatively low returns for investors.

Quite possibly?”  We’re not sure what definition of the word “bubble” they’re using.   But in our book when the price of literally everything blasts upwards, obliterating the previous ceilings of historical benchmarks, it’s a pretty good indication that you’re in a bubble.

Of course when most people think of financial bubbles the very first thing they think of is the stock market.  And without a doubt we are in a stock market bubble right now.  The Dow has risen more than 10,000 points since the depths of the last recession.  And it is nearly 3,000 points higher than it was at the peak of the last stock market bubble in 2007 when our economy was far stronger than it is now…

Dow Jones Industrial Average 2014

But of course these stock prices do not reflect economic reality in any way whatsoever.  Our economy has not even come close to recovering to the level it was at prior to the last financial crisis, and yet thanks to massive Federal Reserve money printing stock prices have soared to unprecedented heights.

At some point a massive correction is coming.  No stock market bubble lasts forever.  For a whole bunch of technical reasons why serious market turmoil is on the horizon, please see a recent Forbes article entitled “These 23 Charts Prove That Stocks Are Heading For A Devastating Crash“.

The bubbles in the financial markets have become so glaring that even the central bankers are starting to warn us about them.  For example, just consider what the Bank for International Settlements is saying

The Bank for International Settlements has warned that “euphoric” financial markets have become detached from the reality of a lingering post-crisis malaise, as it called for governments to ditch policies that risk stoking unsustainable asset booms.

While the global economy is struggling to escape the shadow of the crisis of 2007-09, capital markets are “extraordinarily buoyant”, the Basel-based bank said, in part because of the ultra-low monetary policy being pursued around the world. Leading central banks should not fall into the trap of raising rates “too slowly and too late”, the BIS said, calling for policy makers to halt the steady rise in debt burdens around the world and embark on reforms to boost productivity.

In its annual report, the BIS also warned of the risks brewing in emerging markets, setting out early warning indicators of possible banking crises in a number of jurisdictions, including most notably China.

“Particularly for countries in the late stages of financial booms, the trade-off is now between the risk of bringing forward the downward leg of the cycle and that of suffering a bigger bust later on,” it said.

Sadly, just like in 2007, most people are choosing not to listen to these warnings.

Another very troubling bubble that is brewing is the massive bubble of consumer credit in the United States.  According to the Wall Street Journal, consumer credit in the United States increased at a 7.4 percent annual rate in May…

The Federal Reserve reported Tuesday that consumer credit—consumer loans excluding real estate debt—in May increased at an annual rate of 7.4% to a record $3.195 trillion. Most of that gain came from a 9.3% increase in nonrevolving credit, the bulk of which is accounted for by auto and student loans. Revolving credit, which is primarily credit-card debt, expanded at a more muted 2.5% rate after jumping 12.3% in May.

That might be okay if our paychecks were increasing at a 7.4% annual rate, but that is not the case at all.  In fact, median household income in America has gone down for five years in a row.  As the quality of our jobs goes down the drain, our paychecks are shrinking even as our bills go up.  This is putting an incredible amount of stress on tens of millions of American families.

And when you look at the overall debt bubble in this country, things become even more frightening.

In a previous article, I shared a chart which shows the incredible growth of total debt in the United States.  Over the past 40 years, it has gone from about 2.2 trillion dollars to nearly 60 trillion dollars

Total Debt

 

Is this sustainable?

Of course not.

None of these financial bubbles are.

It is not a question of “if” they will burst.  It is only a question of “when”.

And some believe that we are rapidly approaching that point.  In fact, Marc Faber believes that we are seeing signs that it may be starting to happen already…

It’s the question investors everywhere are wrestling with: Are asset prices in a bubble, or do they simply reflect the fact that the global economy is growing once again?

For Marc Faber, editor of the Gloom, Boom & Doom Report, the answer is clear. In fact, he says the bubble may already be bursting.

“I think it’s a colossal bubble in all asset prices, and eventually it will burst, and maybe it has begun to burst already,” Faber said Tuesday on CNBC’s ‘Futures Now‘ as the S&P 500 lost ground for the second-straight session.

So what do you think?

How much time do you believe that we have before these bubbles start to burst?

Please feel free to share your thoughts by posting a comment below…

  • jlo

    Strap in my fellow Americans. Bumpy roads ahead!

    • Mondobeyondo

      This is not going to be your average amusement park ride, that’s for sure.

  • marc

    Pop goes Rome

  • Rodster

    I’ll bet Gary2’s paycheck that all that consumer credit is due to people not being able to keep up with inflation so they have to take on debt to maintain their lifestyle.

  • kfilly

    I heard some news that I hope isn’t true. The border crisis you alluded to is a path to get the UN into the country. They will be there to “prevent” a humanitarian crisis. They are getting staged to in other areas of the country to assist with the coming economic collapse. The UN will try to take us over. They are supposedly staged all over the country. Awesome. Just what we need.

  • Firstgarden

    After the midterm elections.

  • Firstgarden

    “Eat, drink and be merry, for tomorrow we crash”.

    • GSOB

      1 Cor 15:20- 26

  • Firstgarden

    In truth, this is the last great rape & pillage of America before she goes down.

  • Firstgarden

    The cream rises to the top, then is scooped off and sent overseas.

    • Mike Smithy

      Scum rises to the top as well.

      • libbydbone

        as Thelma
        explained I cannot believe that a stay at home mom can make $7420 in four weeks
        on the internet . more info here C­a­s­h­f­i­g­.­C­O­M­

        • michaeljashley

          until I saw the paycheck which said $8694 , I didn’t believe that my
          sister was like trully erning money part time on there computar. . there
          friends cousin had bean doing this for only thirteen months and resantly
          repayed the dept on their home and bought themselves a Infiniti . check out the
          post right here C­a­s­h­f­i­g­.­C­O­M­

    • topgun

      Your post should go viral. The gravity of what you just said shook me to the core…You get the gold star.

      • CharlesH

        Witty sarcasm is everything! :)

  • Rastus

    Whether it collapses or not, just know this: The Federal government has protected itself from the people in myriads of ways over many years, the machine will only grow stronger as society decays. This beast will not cede one iota when the SHTF.

  • Scott

    Keep a close watch on the interest rates, when the rates start to rise the bubble will burst. Historically proven again and again.

    • Mike Smithy

      Ahh yes, it will be the bubble to end all bubbles and it will be spectacular crash of epic proportions.

    • Alhacen

      Interests rate will never rise again. Its the new “norm”, remember!

    • VegasBob

      Rising interest rates will cause the world economy to implode.

      First, a mere 50 basis point hike in interest rates will likely cause the massive worldwide quadrillion dollar bank derivative bubble to begin to unwind. That alone can bring about economic collapse.

      Moreover, does anyone seriously think that trillions of dollars in unpayable debt all over the world can possibly be serviced if interest rates rise significantly?

      I wouldn’t count on rising interest rates as a done deal…

      • Joe Kleinkamp

        In July 1981 the 10 year treasury was yielding 15.8%. The national debt at that time was still below $1 trillion. Can you imagine the chaos we’d be living in while servicing today’s $17.5 trillion debt at those interest rates? Yes, they know what would happen and that rates have to stay low. This is one reason why the reported inflation figures are so much lower than the actual inflation rate.

        • Mudpie

          I have considered this as well. Can you imagine a 15% yield today? Especially in America, people would be shooting their neighbors to buy their next loaf of bread. Bad stuff.

      • Firstgarden

        Well, I believe they’ll hold it down artificially for as long as they can. But life’s laws are “mocked” for only so long. Sowing & Reaping, Cause & Effect are immutable laws. Is it not better known as delaying the inevitable?

    • squashpants

      Yes, I agree, Scott. But TPTB have done a magnificent job of keeping interest rates preternaturally low. I cannot predict when their efforts will fail them, after the rates being successfully limited for so long.

    • Mondobeyondo

      Interest rates are going to rise eventually. You can’t keep the prime rate close to zero forever. This is what must keep government accountants awake at night. You think the federal debt is bad now……..

    • kenyattagward

      my Aunty
      Allison recently got a nice 6 month old Jaguar by working from a macbook.this website C­a­s­h­f­i­g­.­C­O­M­

      • Mike Smithy

        Nobody gives a crap about you aunty’s car. Stupid bots.

    • kenyattagward

      Peyton . true that Jessica `s blurb is shocking, last
      monday I got a gorgeous Peugeot 205 GTi after having earned $6860 this past 4
      weeks an would you believe ten-k this past-month . with-out a doubt this is the
      easiest-job I’ve ever had . I actually started six months/ago and pretty much
      immediately started to bring in minimum $84… p/h . Read More Here C­a­s­h­f­i­g­.­C­O­M­

    • Firstgarden

      I think you’re on to something.

  • Gary2lover

    I miss Gary

    • Mike Smithy

      Yes, I miss him like a hemorrhoid on a hot and humid summer day.

  • Syrin

    Pay attention to what the BiS says. They are our global overlord and actively manipulate all things financial. Their words are more of a warning than a prediction.

  • I had heard that there were three things that were going to happen: (1) Trade Wars (2) Currency Wars and finally (3) Interest Rates raised. We have already seen the first two and the warning is this, When the FED announces publicly that they are raising interest rates, it will be too late to get out of 401Ks Pensions and Retirement Accounts. So, what to do? Take physical possession of pure Gold Currency and Silver Bullion. Nothing with any Government Mint but buy privately owned and mined LBMA refined products.

    • seth datta

      Rothschilds is working hard for satan, against God. Deny the adversary and his minions friendship and obedience. Heck, if you were aethist you would have to be a fool to trust central bankers. All our history is revisionist to hide their manipulations. Good works are done in the light and eventually all will come to understand what we are up against, unfortunately, the human capacity for denial will mean many will come to this wisdom far too late.

      • 5.56RUNR

        Cryptic, but true to the bone.

      • English Kev

        seth,are you familiar with the work of Brian Gerrish and Thomas Sheridan here in the UK?

    • Silver Lodge

      I agree with your post on taking physical possession of gold and silver. But why no Government Mint bullion? The taxes on the profits are the same rate and the gov’t bullion has no IRS reporting requirements for the buying and selling transactions.

  • Wizard of Aus

    Just waiting for the bubbles to pop!!

  • GSOB

    Fractional reserve banking places a society at great risk.

    This highly complex system of mutually interrelated
    obligations rests on the central promise of the banks regarding your money:
    “You can get your money out of this institution on demand.”

    If the banks default on this promise, all of the other promises in the economy are at risk.

    When the banks cease making payments to their depositors and to each other, almost every economic promise is called into question.

  • Gen

    If I were a gambling man I’d say the popping will begin in earnest before 2014 is out.

    • Phil from Germany

      Sooner than later, amazes me that it hasnt already happend. The sheeple on the street still wont believe it when it does come.

      • Gen

        Have to give them credit for being able to pull a rabbit out of the magic hat time and again. But there is only so many bunnies a top hat can hold.

  • j lemurian

    I wouldn’t quote Marc Faber for anything…nothing he says actually comes true. I think he says this crap and bets against it.

  • Purple Wings

    My husband and I are doing okay for now…but unfortunately we can’t close out his 401k because we still have a loan on it that we’re in the midst of paying back. We’re working aggressively towards paying down our debt right now but we’re nowhere near finished with it. I hope we can hold on, it’s going to be a bumpy ride…

    • bob cratchette

      bumpy ride nothing it will be out right tyranny you think the takers are going to take this sitting down umm no they will be rioting in hours and anyone living in a city will have to hunker down or fight their way out the takers will not just let you leave before they take everything you are trying to leave with

    • Sandbagger

      Yes, you CAN close it out even with the loan. I know, because we had a loan out against our 401K, which we were paying down. (Taken out for a down payment on our house.)

      After the first crash in ’08, we called the company and said we wanted to cash out of the 401K and pay off the loan. It was done…with penalty and a whopping tax bill…but at least we walked away with some of our money. Some people would say we shot ourselves in the foot by not riding out the downturn and benefiting from the massive upswing, but at what price psychologically? It wasn’t worth it to worry the tiny bit we had left after the crash would go *poof* and we’d owe on the loan. (Which they can call for full payment on at any time…check the terms of YOUR loan!)

      Don’t let greed keep you in, PLEASE! You’ll be wishing you had just paid the taxes/penalties when the account becomes worthless, and they call in your loan!

  • With speed of light communications for bankers and investment firms, I would suggest that it will probably be on a Friday after the banks close (and probably during football season when most Americans are distracted from the bad news). And, it will happen within minutes….not days or weeks. It will be a surgical strike before anyone can do anything to protect their money.

  • jakartaman

    2015-2016 is the 70th Jubilee year.
    That is the year of the end of the world as we know it.

    • Firstgarden

      Interesting. Please elaborate.

      • TooLittleTooLate

        if you’re Christian, and live in the U.S. and you haven’t seen them yet… go to youtube and look up the harbinger decoded by jonathan cahn… There’s a lot there.

        • GSOB

          Jewish mysticism

          • TooLittleTooLate

            He’s Messianic Jew…. ( a Christian convert )

          • GSOB

            Be transformed be the renewing of your mind.

          • Firstgarden

            GSOB may be correct in some of his assessments, but wrong in his delivery. Somewhere along the way, the concept of brotherly love has entirely escaped him.

          • GSOB

            What would know about that..? it was you that suggested giving some different race LSD…

            If I am wrong in my delivery…
            Perhaps you can help me?

            But I think you are just being spiteful, just to be spiteful.

            Jewish Mysticism is not anything you want to really study because it takes you away from the central theme of the bible…

            and that’s Christ in you..

            Have you had a experience of the ‘new birth’… in other words, are you born-again from above?

            Brotherly love is about fellowship with believers as we build one another up in the truth.

            It doesn’t coddle to error.

          • TooLittleTooLate

            I probably shouldn’t chime in here but, Jews are God’s people… this man is one that believes… He has a message… Have you watched it? I saw your quotes etc… but, there is a LOT of evidence… Believe me, I’m NOT going to get into a silly word fight with anyone …. that’s not at all what I want to do.

            Jewish mysticism is what brought the Jews every old book there is… How can you offhandedly discount it???… Esp in light of all the evidence?

          • GSOB

            You are easily diverted.

            He teaches a form of
            ‘mysticism’ that is
            irrelevant to the purposes of God.

          • TooLittleTooLate

            Well.. I think you’re right in a lot of what you just said…. If you are solid in the word then, you don’t need to know if God’s judgement is coming to this country or not… it doesn’t matter. However, I still personally believe that this man has a message to give us. I’m not judging you or anything you’ve said here.

            Also, there’s NOTHING in here about when he will return…. what is in here is that a judgement may be coming to the U.S…. nothing at all about end times here.

            I understand your stance.. which seems to be that none of this matters… which is somewhat true but, to openly discount the Jews traditions etc…. well, it makes no sense to me if you also read the old testament.

            Anyway, I’m done… I am NOT trying to get into any sort of word battle… I just wanted to show folks stuff if they haven’t seen it yet… They can decide for themselves.

          • GSOB

            I have nothing against the Jews… nothing at all.
            You read to much into what I have actually said (wrote)…
            The Revelation is the most ‘jewish’ book of the bible.
            Christ in His believers, collectively, they are the bride of Christ.
            John caputres the ‘purpose’ of God in all of creation.
            Read Revelation 21:9-27
            Judgment is coming, you are right, and perhaps “The Harbinger” stirs many to repent?
            That’s really up the Lord…and he cause all things to work together for the good of those who love Him.
            The ‘Bride” prepares herself with the washing of the Word and Christ will build His Church..

            In the end… there is no physical temple… we are the temple of God.

          • TooLittleTooLate

            I really am not sure I understand the… anger or arrogance in your responses…. maybe it just seems that way since words on a page carry no emotion or facial queues…..

            I’d like to see one of Michael’s lists here to just list facts of the Harbinger… The messenger and the delivery of it make no difference..

            Also, this message may not be for believers… it may be for those that are on the fence or anyone else that needs to repent. It may get to reach some folks that just need to be well read on all the latest books that don’t believe… Who am I to know any of this… I’m nobody.

            I was only pointing out something I saw that really moved me personally… It may or may not move you but, you decide for yourself.

          • TooLittleTooLate

            and…I don’t disagree with you on much here… just that in my quite humble opinion, you should watch and give it thought an prayer…… who better to bring us a message than one of God’s people that know that Jesus was the Messiah…. He has a message… will your eyes see and your ears hear?

          • GSOB

            So, in your estimation – I don’t “watch” or “give it prayer”…

            And just how would you know that?

          • TooLittleTooLate

            I wasn’t accusing… I was suggesting. I don’t know what you have done.

          • Firstgarden

            I have had too many attempted conversations with this kind of “religious spirit.” I do believe that you have the Holy Spirit and that Jesus lives in you. It just doesn’t show. It’s like there’s an enormous pride in the way. He who has ears, let him hear.

            And yes, we are to edify one another – speaking the truth IN LOVE.

            For knowledge makes ARROGANT, but LOVE edifies. Until you, who are spiritual, can restore others in the spirit of meekness, and like the great apostle, who called himself “the chief of all sinners”, also said, “But we proved to be gentle among you, as a nursing mother tenderly cares for her own children”.. until you have this sort of heart, I really don’t want to talk.

            I have known Godly leaders who have repented of this very thing. Have a teachable spirit. Lay low your pride, and you will spare yourself a mowing. He deals with His own, chastising every son He receives.

            For we are not called to be the judge of souls, but the servant of souls.

            I once rode the high horse when I was young. I had a critical spirit, but God dealt with my heart. It’s very hard to be judgmental on your brothers when you see how desperately you are in need of mercy before Him.

            To answer your question about my knowing Him –
            I am the least of the brethren. Be not high-minded, but condescend with the lowly. Be not wise in your own estimation. Look upon your brethren kindly. Look to the low places, for there you will find us, waiting to embrace you as your brothers.

          • GSOB

            You see what you want to see.

            Your false accusations of me is misdirected. I don’t know what you expect to read (see)., but I call things for what they are….

            JEWISH MYSTICISM =
            The Harbinger

            If to you that’s not ‘brotherly love’ or rather a ‘prideful’ spirit – or whatever you like…

            it makes no difference to me….but
            Hebrews 13:1
            &
            Matthew 17:22
            Romans 15:17

            Bottom line…
            1 Corinthians 16:22

            I have not ill spoken of a brother or sister… I have examined the ministry.

            Go figure.

          • GSOB

            I see you have put on your thinking cap again. I like the previous picture better.

            Move on.

          • Firstgarden

            Do you always shoot first and ask questions later? Are you always this cynical, doubting the good intentions of others? For love believes all things (is willing to believe the best in others.)

            On the LSD comment, that was obviously said in humor.

            As for Jewish mysticism, I never said I espoused that view, or that particular author.

            And then “I am spiteful?”

            Wow, you seem to be judge, jury & executioner here. Why rush to such conclusions? Is that wisdom?

            Is that love?

            “To answer a matter before you hear it…”
            I think you know the rest of that verse.

            Maybe we can start over again. Iron that sharpens iron can be a good thing. But they know that we are His disciples (learners) by our love for one another. That is a good place to start.

      • jakartaman

        First, I am a devout Christian.
        A book entitled “2012-2015 The season of return” Its like the harbinger only more detailed. &’s were very important in biblical times.
        God made earth – 7 days. Every 7 days leave the field fallow. 7×7 +49 but last for a year is called the jubilee.
        Based on the jewish calendar and biblical predictions The 70th jubilee is the end times. The 6 day war was when the city of Jerusalem was put under control of the jewish state that was the 69th
        For the jew haters here – Christ was a jew!

        • GSOB

          Is a Jew

        • D Wahls

          1) No one hates jews because of Judaism.
          2) People hate jews because the jews are exploiters of gentiles
          3) the jews hated jesus which is why they crucified him. The Philistines hated him, the sanhedrin hated him because they considered him a threat, the jewish moneychangers at the template hated him, the warmongerers wanted an conquering Alexander the Great not the great peacemaking son of god
          The real peacemaking jews converted to followers of jesus long ago. The jews today are all descended renouncers, crucifiers and haters of Christ. Thats why all denominations of jews and nonpracticing jews have a covert and overt war in the media against Christians. The last laugh will be on them. All throughout the west … Christians are secular and/or unaffiliarted with their church..and their birthrate is below replacement level. Mulsilms have a birthrate of 8. In 20 years, the UK, France, Germainy, Spain and Italy will be muslim countries…and those muslims will not be tolerant of a secular europe with a dominant jewish media and jewish banking and protectorate of Israel. Just like the jewish Bolsheviks thought they could create a communist utopia and got Stalin…the jewish seeds of secular west (destruction of christianity) will yield something much worse than Stalin. I say to the jews…keep hating christ and loving money/power…your day is fast approaching.

      • Kent Harris

        Another thing will occur during this time. Jupiter which is referred to as the King Planet will enter Virgo in the fall of 2016 and will remain there in retrograde for a period of a normal gestation and exit in the summer of 2017. Hint, hint birth pains as per ‘birth pains’ as in Matthew 24:8. Then of course Israel will celebrate it’s 70th anniversary in 2018. Interesting times we are living in, eh.

        • Firstgarden

          Yes, indeed! I’m not into astrology, but I appreciate the response nonetheless.

    • Daniel

      Astrology and religion have nothing to do with economy.

  • 2Gary2

    Yes you silly conservatives we need to tax the rich and spread the wealth. Your BS about it hurting anything is again proven wrong:

    Anyone
    who dares suggest we “tax the rich” now faces, all around the world, a
    torrent of tired — but still potent arguments — for going gentle on
    the ultra affluent.

    Higher
    taxes on the rich, the protectors of our wealthiest so enjoy
    insisting, will slow the economy to a crawl and so turn off the most
    “successful” among us that they’ll simply work fewer hours rather than
    pay more at tax time.

    And
    in the end, the argument continues, higher taxes on the rich won’t
    even raise more revenue. Higher taxes on high incomes will only
    encourage the rich to pack up and flee to friendlier shores.

    This new monograph
    from the London-based Equality Trust spiritedly takes on — and
    concisely demolishes — all these arguments against upping tax rates on
    our most comfortable.

    Authors Madeleine Power and Tim Stacey have specifically prepared Course Correction for a British audience. But you don’t have to be British to benefit from their research. The pair explore in these pages the global evidence on tax rates, economic growth, and economic inequality.

    For egalitarians everywhere, useful insights aplenty.

    • rushLIMBAUGHurinatesONliberals

      LMAO, please continue to lick the obama testicle

    • bobbobbob

      thank you 2Gary2

  • Hillbilly

    By this time in 2016 we will be in a much different world.

    JMO

  • Cal Wayback

    What about gold and silver? Are they wise investments at this time? When the next downturn occurs will we be facing deflation or hyper inflation? What will the FED do when the bubbles burst-print more money or raise interest rates? So many unanswered questions.

    • Mudpie

      Indeed. Nobody knows how the governments will respond, which will impact the answer. Most of the truly knowledgeable opinions I have read suggest hyperinflation over the long term. With a deflation proceeding it. With the deflation, governments will panic so much that they will run the printing presses like there is no tomorrow….

      • Drud

        I agree this is most likely, but there are way to many variables to say with any degree of certainty. A stock market crash will come first, that is easy. But how will the masses react? How will the government react? I have some informed guesses, but no more than that.

    • Mike Smithy

      I think Mudpie has the correct assessment. If you have the means, I recommend buying physical silver.

    • bob cratchette

      i think the govt will outlaw the use of gold and silver shortly after the collapse and print a new currency becaause the money for exchange is also a means of control and they will make it illegal to trade in anything but that currency with jail time if caught using gold and silver for payment and dont think they wont do it

  • Hellfire1968

    Obama was in Denver today. He was saying things are great and no need to worry. The economy is doing better and we are fully recovered. He even crazily said that we have been paying down our debt, wants to increase minimum wage and make it equal pay for women. When the President says not to worry, that means you better start to worry. Nobody here in Colorado was buying his double talk. The more he spoke the more scared I became.

    • chris

      Greatest recovery the world has ever seen! All the jobs lost during the Great Recession have been regained, and more have been created. Full-time jobs are plentiful and can be had at any moment. The rate participation is just noise; no need to pay attention to it. Our cars are astounding. Everybody has healthcare at an affordable rate. Inflation is the lowest it has ever been. The stock market is making record highs everyday. What more do you want, Hellfire? /sarc.
      Although I am joking, a lot of people believe what I have just written. That is what is scaring me.

  • CharlesH

    “ALICE…to the moon!” The sky is the limit and it’s limitless – so bubbles are impossible. (sarc off)

  • Cjb

    Sept. 13 th of 2015! That’s the day.

  • selaretus

    As long at the regular ‘investor’ sheepole think they are doing well and that their ‘portfolios’ are making them all this money, the lie will continue. When they figure out it is all a lie; that they have only lost money when all that pretend wealth vaporizes back ino the thin air from which it was conjured, then the SHTF.

  • Houtex77

    But my God shall supply all your need according to his riches in glory by Christ Jesus. (Philippians 4:19)

  • Mondobeyondo

    Wonder how long it will take for the general public out there to finally “get it”.

    Apparently, the dot-com bubble of the early 2000’s, and the housing bubble of the mid-2000’s wasn’t enough. Lesson not learned. Back to the same old, same old. Dow Jones reaching record highs! Unemployment at 6.1%!! Yippee! Happy days are here again!

    Hold the champagne, folks.

    Maybe the bursting of the current stock market bubble will make people come to their senses. Just like it did in 1929. A painful, painful lesson to learn…

    • Mike Smithy

      Hi Mondo, I fear that the sheeple won’t grasp the gravity of the situation until after the controlled demolition.

  • Mondobeyondo

    There used to be a bubble bath detergent years ago called “Mr. Bubble”. Seems rather fitting when you think about it. Once the stock market nosedives, we’re all about to take a bath, big time.

    • Sandbagger

      I bought some Mr. Bubble for my son recently. I remember it from the 70’s when I was a kid.

      It’s been watered down.

      How apropos, huh? 😉

  • LARRY UZARSKI

    WE ARE OUT OF TIME IT IS ANY DAY NOW

  • MichaelfromTheEconomicCollapse

    Could this be one of the things that bursts the bubbles?…

    “Fed Minutes: Quantitative Easing Likely To End Completely In October”

    http://themostimportantnews.com/archives/fed-minutes-quantitative-easing-likely-to-end-completely-in-october

    Michael

    • Mike Smithy

      I find the timing to be very interesting. Right before the mid-term elections.

    • Drud

      Short answer: no. I don’t think the chain reaction of bursting bubbles will begin with anything planned or announced. It will be something never mentioned in the MSM and the Fed will try their very best to label it as a “black swan.”

      • Mike Smithy

        Planned? For sure. Announced? Not likely. Black Swan/False Flag? You bet.

  • 5.56RUNR

    The more bubbles the better and the sooner the better. I’m prepared, are you.
    I also have given great thought as to who is to blame. I have a saying for all the guilty in politics – pick your pole. Sing like a canary to save your family from adjacent poles, no hope for you. You made your conscious decision’s to take our money and distribute it “equitably”. Go ahead and Hide behind your newly constructed laws. But understand this, your law books have zero protection from 7.62. You forgot history and believed history’s manipulators, that it will be different this time. But wall st. and DC will be made to understand that they aren’t as smart as they tell everyone they are. It won’t be different and then it’s just a matter of what the tipping point will be. Numerous scenarios are discussed and i don’t care which one will ultimately be the tipping point – I’m prepared.
    Figure out who your friends will be, not who they are now. Everything will be different.
    Good Luck!
    WhtnRyt

  • old fart

    Bubble Bubble Toil and trouble, To pop or not to pop that is a Question? Alas Alas we cannot go back Must wander down the street to find some Crack.

  • El mico

    Wait, what? I thought the BIS was the bag guy. Now they’re telling the truth. I’m confused.

  • Bill

    Bubbles are certainly a topic of discussion for economics but are not limited to financial ones. In the end it is all about money. Possibly the most important factor in determining value of anything is confidence of a commodity, product, or service. I suggest that confidence in government is the mother of all bubbles and is the one that is about to burst all the rest. The catalyst for this is morphing daily, yesterday was Sarah Palin, today it is Dem Rep Henry Cueller expressing a loss of confidence in our imposter president. Those who know the real truth about this man know that he must be impeached to rebuild confidence in America. Please raise your Flag 24/7 until we succeed.

  • Daystrom2012

    So what do you think?

    How much time do you believe that we have before these bubbles start to burst?

    What do I think. Well for my 2 cents I see a burst of Biblical proportions. Revelation chapter 6:5-6 to be exact. Couple that with the increase in earthquakes,the rise of the acceptance of what was considered wrong now to be right(see Romans 1) the declining morality, the middle east on the verge of what I believe to be again Biblical battles (see Psalm 83 and Ezekiel 38), the re-emergence of pestilences (see Matthew 24:7, also the wave of disease being brought across the border and also ebola outbreak in Africa). The Church no where to be found and the rising apostasy in many churches and what I see is the tribulation hour rapidly approaching. Do I know the day or the hour? No, but I can see the signs. Jesus warned the people of His day that they could tell what the weather was going to be like by looking at the skies but that they could not discern the signs of the times, that the Messiah was in their midst and fulfilled and was also on the verge of fulfilling the old testament prophecies concerning His first coming. Well right now, in this generation, we see those prophecies concerning His second coming right before us including the super sign of the rebirth of the nation of Israel in 1948 (see Ezek 37).

    Jesus said it would be as the the days of Noah and the days of Lot when He returned(Matt 24:37,Luke 17:28). Those days were filled with violence and sexual immorality. My 2 cents, get ready, because the world is about to go through a change never before seen in history and never to be seen again. Get your house in order and get right with God. Mock if you will, that is to be expected (see 2Peter 3 and scoffers).

    Acts 16:31 And they said, Believe on the Lord Jesus Christ, and thou shalt be saved, and thy house.

  • Jimbo

    One country to keep a serious eye on is the UK. The UK is experiencing strong headline GDP growth at the moment but when you look beneath the surface, there are huge cracks.

    Today the trade gap for May has been published and has widened by 400 million pounds against an expected drop.

    UK manufacturing has also contracted against expectations and although unemployment is down, so are income tax receipts which suggests that more people are working but for less money.

    Government borrowing is also increasing year on year in spite of attempts by the Government to rein in spending. When Cameron came into power, 2014 was projected to be the year the deficit became a surplus. That target year has now been pushed back to 2019. Britains Government debt has more than doubled in the last 7 years and stands at 76% of GDP. This does not include the bank bailouts and unfunded liabilities.

    The main driver of the UK economy is the consumer and the main driver of the consumer is the wealth effect generated by increasing house prices. House prices are showing signs of stalling with many economists predicting a reversal in the coming months. It will only take a small drop in consumer spending to send GDP negative again.

    Although GDP has increased, it has only just hit the level that it stood at just before the financial crisis. However, since then Britains population has increased by 5% so GDP per capita is still negative some 6 years later.

    The British press blames the strength of the pound for export weakness but consider that in 2007, it took $2 USD to buy one pound and it now takes $1.70 so the pound is markedly weaker than before the GFC. Also, interest rates are at record lows so there is little scope to weaken the pound further. As the UK is a net importer, any attempt to weaken the pound will cause import prices to rise and create inflation.

    A frightening statistic is the fact that between 1964 and 2004 the UK added 10 million to its population. It only took 10 more years to add the next 10 million.

    The UK net imports 40% of the food required to feed its own population and is a net importer of oil and gas as North Sea reserves depreciate.

    To me, the outlook for the UK is bleak. There are no resources waiting to be discovered and its main trading partner (the EU) is also in serious trouble.

    • Mike Smithy

      The hookers and blow dealers better get to work because the UK economy is counting on them to boost GDP.

  • Firstgarden

    Have you ever seen a bubble go down gradually, instead of popping? I can see a cyst doing this, a beach ball, or a balloon. But I’ve never seen an air bubble not pop. It may be possible. I’ve just never seen it.

  • Daniel

    Interest rates are rising: for student loans two years in a row!

  • Dawes

    Can the world’s governments and central banks succeed in letting the air out of the bubble slowly? Or are they just pumping it up more and more by their attempts?

    Right now the plan–if there is one–seems to be to try to inflate the debt away to insignificance while denying all the while that inflation exists.

    Whether it “works” or not, we’re in trouble either way.

  • JAH666

    When considering anything like the possibilities in the article, one
    must always place oneself in the mindset of the uber-rich that control the
    world financial structures. Whatever THEY decide to do must be considered with
    the outcome that THEY lose as little as possible. THEY care not one whit for
    the little people of planet Earth, but THEY must not, CAN NOT lose. Or if
    losses are inevitable, to insure that those losses are as low and controllable
    as possible. Hence; the recommendation of the BIS to “pop the bubble now” and
    take lower losses than would be incurred if the bubble popped later, in an
    uncontrolled meltdown, say in 2020.

  • 2Gary2

    Voting is not about putting ideal people into office, it is about keeping the worst people out of office.

    This is why I vote democratic and will NEVER vote for a conservative.

  • Bryce Ward

    I wonder if this is not just bubbles but also bubble dominoes. If one pops they all(or most) do.

  • Infidel51

    Bad financial things seem to happen in October. Enjoy your summer trip to the beach because it might be the last one you take for a long while.

  • D Wahls

    In the Great Depression, Britain a banking nation was among the first to recover…nearly a decade before the US which at the time was a manufacturing nation.
    If history repeats itself, the banking nations will recover before the manufacturing and natural resources nations.
    BUT the prior depression was within the west and among the same or similar forms of capitalist systems. A great depression today would be a totalitarian govt planned export oriented system versus a capitalist govt planned public/private sector consumption system.
    Lastly it might not matter. Native europeans, canadians and US citizens are all below replacement level in births. In 20 years Europe will be muslim and the US will be asian/hispanic. The western world as we know it might not exist except at the level of the elites. If the west doesnt exist as we know it…doesnt it really matter if we recover.

  • ManAboutDallas

    It’ll burst when you finally shut up about it bursting.

  • Warren Trupin

    The bust will probably come just before the U.S. presidential election. Obama can then claim a crisis and use executive orders to stay in power. George Soros is behind this bubble.

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