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Former Reagan Administration Official Warns That Financial Disaster Is Dead Ahead

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Disaster - Public DomainWhy won’t the American people listen to the warnings?  David Stockman was a member of the U.S. House of Representatives from 1977 to 1981, and he served as the Director of the Office of Management and Budget under President Ronald Reagan from 1981 to 1985.  These days, he is running a website called “Contra Corner” which I highly recommend that you check out.  Stockman believes that a global “debt super-cycle” that has been building for decades is now bursting, and he is convinced that the consequences for the U.S. and for the rest of the planet will be absolutely catastrophic.  His findings are very consistent with what I have been writing about on The Economic Collapse Blog, and if Stockman is correct the times ahead of us are going to be exceedingly painful.

But right now, most people don’t seem to be in the mood to listen to these types of warnings.  Even though there is a mountain of evidence that the global economy has already plunged into recession, U.S. stocks had a great month in October, and so most Americans seem to think that the crisis has passed.

Of course the truth is that the stock market is not an accurate barometer of the economy and it never has been.  Back in 2008, almost everything else started to go downhill before stocks did, and the same thing is happening once again.  In a recent article, Stockman explained that stocks are surging to absolutely ridiculous levels even though corporate earnings are actually way down

At this point, 75% of S&P 500 companies have reported Q3 results, and earnings are coming in at $93.80 per share on an LTM basis. That happens to be 7.4% below the peak $106 per share reported last September, and means that the market today is valuing these shrinking profits at a spritely 22.49X PE ratio.

And, yes, there is a reason for two-digit precision. It seems that in the 4th quarter of 2007 LTM earnings came in at 22.19X the S&P 500 index price. We know what happened next!

Why do so many refuse to see the parallels?

This crisis is unfolding so similarly to 2008, and yet most of the “experts” are willingly blind.

Much of the stock buying that has been happening in 2015 has been fueled by stock buybacks and by M&A (merger and acquisitions).  Many firms have even been going into debt to buy back their own stocks, but now sources of financing are starting to dry up.  This year we have already seen the most corporate debt downgrades since 2009, and big financial institutions are now becoming much more hesitant to loan giant stacks of cash to these large corporations at super low interest rates.

So it is very, very difficult to see how the equity markets are going to move much higher than they are right now.

Meanwhile, the global economy is starting to unravel right in front of our eyes.  In his recent piece, Stockman discussed some of these data points…

In the last two days we posted the latest data on two crucial markers of global economic direction——-export shipments from Korea and export orders coming into the high performance machinery factories of Germany.

In a word, they were abysmal, and smoking gun evidence that the suzerains of Beijing have not stopped the implosion in China, and that their latest paddy wagon forays—–arresting the head of China’s third largest bank and hand-cuffing several hedge fund managers including the purported “Warren Buffett” of China—-are signs not of stabilization, but sheer desperation.

So it is not surprising that Korea’s October exports—–the first such data from anywhere in the world—were down by a whopping 16% from last year, and have now been down for 10 straight months. Needless to say, China is the number one destination for Korean exports.

Likewise, German export orders plummeted by 18% in September, and this was no one month blip.

For many more recent statistics just like these, please see my previous article entitled “18 Numbers That Scream That A Crippling Global Recession Has Arrived“.

If the global economy really was doing “just fine” as Barack Obama and others suggest, then why is the largest shipping line in the world eliminating jobs and scaling back capacity?…

A.P. Moeller-Maersk A/S is scaling back capacity and cutting jobs in the world’s largest shipping line to adapt to a drop in demand.

The Danish company, which last month lowered its profit forecast for 2015 citing a gloomier outlook for the global shipping market, will shed 4,000 jobs in its Maersk Line unit as part of a program to “simplify the organization,” it said in an e-mailed statement on Wednesday.

And why are some of the biggest banks in the western world laying off tens of thousands of workers?…

Standard Chartered Plc became the third European bank in less than two weeks to announce sweeping job cuts, bringing the total planned reductions to more than 30,000, or almost one in seven positions.

The London-based firm said Tuesday it will eliminate 15,000 jobs, or 17 percent of its workforce, as soaring bad loans in emerging markets hurt earnings. Deutsche Bank AG, based in Frankfurt, last week announced plans for 11,000 job cuts, while Credit Suisse Group AG said it would trim as many as 5,600 employees.

And if things are so great in the United States, why is Target suddenly closing stores?

The truth, of course, is that things are not great.  Global GDP expressed in U.S. dollars is down 3.4 percent so far this year, and total global trade has plummeted 8.4 percent.

We have entered a major global economic slowdown, and like usual, equity markets will be the last to get the memo.

But when they finally do react, that is likely going to greatly accelerate our problems.  Just like we saw in 2008, when there is fear and panic in the financial markets that tends to cause the flow of credit to freeze up.  And that is something that we simply cannot afford, because the flow of credit has become the lifeblood of the global economy.

So no, “the crisis” is not “over”.

Rather, the truth is that “the crisis” is just beginning, and it will soon be making front page headlines all over the planet.

  • Guest

    Stockman is one of the smartest people out there, in my opinion. He’s not someone to ignore.

    • SunnyFlaSnotress

      So.. we’ve got a BUNCH of talking heads blabbing the same stuff. I’m just as impressed with Stockman as anyone else.
      Most people likely think a downturn is possible, but they just aren’t convinced with how bad things could get.

      • Guest

        And what are your credentials, aside from the fact that you’re an obnoxious troll?

        • SunnyFlaSnotress

          What credentials do I need?
          At least I keep a screen name.

          • Jorma

            I’m not sure I understand why they are treating you like AlwaysTomorrow?

        • Malcolm Reynolds

          A gaping hole under her nose. That’s about as much credibility as her buffoon butt buddy always has.

          • Jorma

            You sound lonely and unhappy. I feel sorry for you.

          • Malcolm Reynolds

            Nah, just no tolerance for stupidity any more. I’m highly paid, happily married, very involved, and quite satisfied with my lot in life.

      • GSOB

        When American Furniture Warehouse
        announces stores closing… or the like….
        Time to take a hike! Maybe a bike?

    • jsmith

      Yes, Stockman alongside with Ron Paul, Paul Craig Roberts and Peter Schiff are men of integrity that can not be ignored, yet the majority of the population is ignorant of what is going on. Don’t count on this administration or Congress to alleviate the warnings that are being ignored.

      • Lennie Pike

        Somehow we have to organize and stop these criminals forcibly – it’s the only way to stop them. It’ the reason police officers are armed – criminals don’t stop unless threatened with physical harm.

        Pretty much every U.S. institution is now controlled by criminal or evil people: all three branches of government (that would include the CIA of course), the media, the financial system, universities, even many churches. I’m sure I named only a few.

        It’s not only in the U.S. that they are in control. These criminals are such a small number compared to the 99% who only want to work, raise their families, and live in peace but since they illegally and unconstitutionally control the money – they control everything. Taking this power away from them is key, and it will have to be taken by force, no doubt about it.

        I sure would like to put Peter Schiff in charge of everything financial, and those other guys wherever they would belong.

      • Teru Mikami

        Yes, the disaster could have been avoided if the sheeples had choosen to follow good men like Ron Paul, instead they followed the droppings of kleptocrats and cultural-trotskists, they´ll only realize the trail lead to a precipice once they have started falling…

  • SunnyFlaSnotress

    13 Target store closings isn’t a biggie.. that’s less than 1% of their 1800 US stores. Area demographics and regional competition changes.. for instance..maybe a Walmart was built in the area of those stores… now if bunches of Target stores closed, I might be impressed.

    • CASTIEL

      For example Deutsche bank is going to fire 15000 persons and leave 10 countries around the world….just that is to be impressed its in germany the cornerstone of UE…..the whole world is in chaos

      • GSOB

        This is the direction things go when transformation sets in.

        Sort of like bull frogs and butterflies… both being born again.

      • alan

        Western world not so much whole world. If the EBT system fails, Walmart or Target all close does it matter to Africa, no.

        • CASTIEL

          OH….such a genius…..have you been in africa.????…you think they can be worse??????the problem is the western world will be like third world that mean africa genius…..

    • Watchman

      “now if bunches of Target stores closed, I might be impressed.”

      And you want the other posters to take you seriously? You probably work at one of the now closing target stores that would explain your below average IQ and lack of grammar.

      • Uriel

        You probably work at one of the now closing target stores WHICH would explain your below average IQ and lack of grammar.

        LOL, fool.

  • Fiona

    Welcome to the deflation. Jobs get cut, the ones remaining are paid poorer than before 2008. This is a deflation and we’re just about to witness the early acceleration.

    • Watchman

      Bring on 2008 Version 2 ! Does anyone remember how fast the 1% and even the 0.1% had their fortunes vanish by at least 50%?

  • VigilanteCaregiver

    Had a very interesting meeting with Utah Dept of Workforce Services / Temporary Assistance Division today.

    A lot of folks were dropped from assistance programs when Obamacare was passed into law and illegally changed to a tax by the Supreme Court. What transpired was their department was hit with new fees and rules that dropped a lot of folks from traditional Medicaid and PCN into the Obamacare Exchanges; where they couldn’t get reasonable coverage. When DWS finally showed what they consider a qualified individual… that person will rarely exist: 300% of poverty line and must be employed full-time. Medicaid will only cover high hospital bills for needy families – that’s it.

    EBT was also hit hard. They claim the maximum they can pay for a family is $740 per month. However, they attached numerous restrictions and qualifiers that keep the amounts around $250 max.

    That’s when I asked if the programs are bankrupt. Their answer was the usual bureaucratic word games, but I did get that they aren’t sustainable anymore. Welfare IS collapsing.

    With this portent, I believe rationing is coming soon.

    Hope everyone prepared.

    • GSOB

      Don’t depend on someone else to take care of you.

      Your spouse may have that honor.

      There are “friends” who destroy each other, but a real friend sticks closer than a brother.

      • VigilanteCaregiver

        Since our beliefs differ greatly, can we let those differences stand aside and work together – in the name of our Lord Jesus Christ – for the sake of the afflicted and oppressed?

      • TheLulzWarrior

        “Your spouse may have that honor.”

        That is why I don´t believe in “traditional gender roles”.

  • CharlesH

    I’m trying to decide if it’s easier to just slide into a depression little by little or just take a flying leap and be done with it. The thought of slowly boiling to death in a pot of water (like the poor little frog) just doesn’t appeal to me. Of course – neither does having my a** thrown head first into boiling water do much for me either. Oh my – decisions…decisions.

    • GSOB

      You need an all engaging purpose & passion for your life, heroically speaking.

      • CharlesH

        Thanks, I appreciate your comments but I was speaking of a financial depression for the U.S. – not my own personal mental situation. Me – I’m doing great actually – way better than most I suppose, but I’m extremely worried about the future of our country. Take care!

    • CASTIEL

      Just enjoy life the better way you can and live day by day.

    • Mike Smithy

      It’s like pulling off a band-aid. It’s always best to get it over quickly.

    • Jerry C

      Jesus Christ said:

      “These things I have spoken unto you, that in me ye might have peace. In the world ye shall have tribulation: but be of good cheer; I have overcome
      the world.”

  • GSOB

    Watch out for the bathroom ordinances.

  • CASTIEL

    Almost countries have debt……if they cannot pay to the countries creditors and even those creditors have debt and if they cant pay also their debt……whats the result?USA have debt to UE and vice versa ….its just a question of time before the titanic sunks….at this time they still play their music to the sheeps.

    • alan

      Greece and Japan seem to be doing just fine. I think as long as there is paper the debt will not be much of an issues.

      • Wiz

        Greece and Japan are surviving because of the indulgence of their creditors. Greece has had to submit to intolerable terms set by the Germans which will make it impossible for Greece to repay the debts she has already got. How do you see that ending up?

      • CASTIEL

        Really????Greece is doing fine???dont make me laugh please,,,

      • Gay Veteran

        the Greek people are suffering

  • GSOB

    Every Target I go to has at least 20 registers but I have never seen more than 6 open at one time.

  • GSOB

    Space Cowboys is a good movie.

  • 2Gary2

    Christian Couple Sue for Right to Keep Their Kids Uneducated as They Await Rapture

    Lets get this straight-the only rapture there will ever be is the song by Blondie from her Auto-american album.. There is also a good version by a group called rapture riders that you can get on you tube.

    • Guest

      Gary, what does your comment have to do with the subject of this article? Have you been preparing? If not, you’re going to starve to death.

      • Mike Smithy

        I can’t believe Gary is still around. His libtard logic always puts a smile on my face and eases my constipation.

      • alan

        They voted for Reagan?

        • 2Gary2

          Yep-they probably thought as Raygun destroyed the middle class by starting policies that funneled all the wealth to the top1% that it did not matter as the Rapture was coming and were hiding out in their Idaho compound cowering in fear of the mark of the beast. You can have fun with them by telling them that you thought you saw a Nephelim at Walmart.

          • John Bilge Society

            Thanks to Raygun´s foreign policies the world almost had a global thermonuclear war twice.

      • 2Gary2

        The point of my comment was that many people believe in this silly rapture and sit around waiting for it to happen and do nothing-see the above couple. I do listen to the Blondie song rapture while I prep. I just want to make sure I cover all the bases :)

        • Black

          Their lives are so pathetic that they look forward to dying

          • 2Gary2

            sadly you are correct.

          • 2Gary2

            The only problem is that they vote for tea baggers. Hillary and Bernie will be kicking conservative butt in 2016. The GOP is in a death spiral. conservatives are in a death spiral.

            I love watching the clown show that is the GOP implode. I hear they are even pulling mittens out of the closet to run again…

          • Chris

            Whatever hallucinogenic drug you are on……..can I get $5.00 worth?

          • 2Gary2

            Absolutely my friend its called reality and you can have all you want for free. You just have to turn off fox and AM hate radio…

          • Malcolm Reynolds

            You clearly meant to call your imbecility Marxism and it bears little resemblance to reality unless you’re equating it to mass death, poverty, misery, failure etc…
            Next up, buffoon will regale us with his rehashed genius fantasies of spreading wealth and taxing people hard.

            What happened moron, you manage to launder enough of your SNAP benefits to pay for another few months of internet to spread your bile?

          • Guest

            Nope. I look forward to living.

            “But as touching the resurrection of the dead, have ye not read that which was spoken unto you by God, saying, I am the God of Abraham, and the God of Isaac, and the God of Jacob? God is not the God of the dead, but of the living.” Matthew 22:31-32

      • Black

        I’m not going to starve to death. I’ve thought about preparing for the coming crash of the world economy but decided its a lot easier to come and take your stuff, instead

        • 2Gary2

          I was going to say the same thing but thought it was too provocative on a site like this where people think their guns will keep them safe no matter what. When the hordes come their guns will be worthless. Can’t kill them all.

          • Teru Mikami

            “Can’t kill them all.”

            That is what French, Brit and German generals believed for much of WW1.
            Thought to their credit, soldiers who refused orders were executed, no such discipline among a mob of hungry looters.

          • El Pollo de Oro

            2Gary2: I’ve often told preppers that while guns can protect you from a certain amount of DPDDTT collectors in a banana republic, they can’t protect you from all of them. And the more widespread the desperation becomes in the BRA, the more DPDDTT collectors there will be. Someone trying to avoid the DPDDTT might have a lot of guns and a lot of bullets, but when the DPDDTT collectors have more guns and more bullets, they’re outnumbered.

        • Guest

          You won’t get any of my stuff. I’m heavily armed, partner.

          • Q

            Also, the looters won´t look for the March 2004 date.

        • Teru Mikami

          Less than half a day later you start vomiting blackened blood, you have diarrhea that smells like toxic waste and it feels as if there are burning coals in your stomach, even your mind starts going haywire.

          The pain eventually gets so great you don´t even have the strenght to crawl and you have hallucinations that makes you scream like a banshee.

    • afchief

      More proof that liberalism truly is a mental disorder!

      • 2Gary2

        You may be correct. I assumed the Christian couple was conservative as conservatives generally vote against their economic self interests-just look at the fools in Kentucky- and are generally low info-see their silly belief on the rapture, however that said the Christian couple may be liberal. Although rare, there are dumb liberals.

        • Gay Veteran

          liberals are hypocrites, they hated Bush for his illegal wars but applaud Obama

        • Name

          Vote against their economic self-interests? Haha!

          Nope, bigger gubbermint and more taxes is only going to profit to the wealthiest.

          Why did most of the wealthy vote for Obama in 2012? Why is the gap between the poor and rich increasing even faster under Obama than under Bush jr?

          It is very simple, the democrats do not support the kind of wealth redistribution you believe in, they only pretend that while pulling their own version of Reaganomics.

          • 2Gary2

            bottom line-the economy does better under dems that GOP. Your point is well taken which is why I am voting for Bernie.

          • Malcolm Reynolds

            bottom line, amassing GIGANTIC piles of debt does manage to cause the illusion of ‘better under’. Only stupid people believe it though. Oh look….

      • df NJ

        You only criticise and hate in other people what you do not like about your own character.

        • 2Gary2

          I do not hate anyone. I fell sorry for the poor low info dolts but I do not hate them. I hate the sin (being conservative) not the sinner.

        • afchief

          I have come to learn that when you are dealing with liberals, I have discovered that truth and reason do not enter into the equation. It is akin to dealing with hardened hearts to whom Truth is a category to be ignored, at all costs.

          • Gay Veteran

            poor thing, still believing in the left/right dichotomy

          • afchief

            At least I don’t believe the “back door” is a sexual organ!

          • Gay Veteran

            unless it’s a dog, in your case

          • Gay Veteran

            a lot of heterosexuals disagree with you

          • afchief

            Only a perverted, deviant, and reprobate mind would think so. It is a ONE WAY STREET!!!!

          • Gay Veteran

            awwwww, poor ayatollah wannabe can’t dictate how other people live

          • afchief

            We should dictate how you gays live. Because of your sexual perverted lifestyle, our medical insurance rates go through the roof. Packing fudge costs a lot money to others. Not just rump rangers.

          • Gay Veteran

            our insurance rates go up because of moronic fat a ss es like you

          • afchief

            There is a simple cure for AIDS!!! Stop packing fudge and the virus will die.

          • Gay Veteran

            too bad there’s not a simple cure for your retardation

          • afchief

            Go put your diapers back on!

          • Gay Veteran

            you need to quit f-ing dogs (female, of course)

          • afchief

            How often do you change your diapers? Daily? Weekly?

          • Gay Veteran

            how often do you f–* dogs? Daily? Weekly?

          • afchief

            Do you use Pampers or Depends?

          • Gay Veteran

            do you prefer big dogs or little dogs?
            probably little dogs since you have a small p*n*s

        • Gay Veteran

          ouch!

      • Gay Veteran

        it figures you would support people being uneducated

        • Malcolm Reynolds

          Well don’t you support the people purposely inflicting lack of education on the population?

          • Gay Veteran

            well I’m glad you asked a question since I would love for critical thinking to be taught in the schools, but then TPTB won’t allow that

    • WVBORN56

      Jesus himself said he went away to prepare a place for his bride and would return to get her and would meet her in the air. With so much of biblical prophecy coming true and continuing to unfold before us at warp speed I’ll continue to put my faith in the claims of Jesus! On top of that I tend to always side with parental rights even when a bit dubious.

    • El Pollo de Oro

      “The Man from Mars stopped eating cars and eating bars. And now he only eats guitars. Get up!” – Blondie, 1980

  • Cyber Revengeance

    people do not listen because you have been saying this for very long time.
    this crisis will take one or two years to unfold. Stock should be last thing to crash.

  • K

    You ask, why Americans do not listen to the warnings? Because it is easier not to listen. Yes they and their family will pay a horrible price, but for now it is easier to not think about it. Also there seems to be a growing attitude of. If I have to deal with any real hardship, I would just kill myself. First courage becomes a rare commodity. Now it seems somehow the survival instinct, has been turned off.

    • alan

      Exactly! Not listening is the lazy way forward.

    • J.C

      I think its to do with the see-saw in the markets. People tend to believe all will be well in the end, but these contradictions are bizarre to say the least. It seems people have money to throw into the markets.

  • Jim Clark

    Stockman’s doom-and-gloom means you should buy-buy-buy.

    • NO, it means you should first use your brain-brain-brain, then think-think-think… then you buy-buy-buy

  • NARENDRA MODI KING of WORLD

    While I agree that we are in a middle of a financial crisis, we must not forget that central banks around the world are colluding with each other. As long as countries are willing to sell their products for dollars, there will NOT be major financial crisis for the simple reason that if private layoffs will be offset by public hiring. That’s

  • Jazz

    We are not listening to the warnings because the stock market is going straight up, up, and up. Jazz said 2015 was just like 2011 and look now it’s acting exactly like 2011. Summer correction followed by fireworks in the 4th quarter. I love being right!

    • Green tip

      Your an odd cat Jazz. I can’t figure if you are a payed government troll or just well odd. What do you do for work? If you don’t mind me asking.

      • Jazz

        No payments for me. I can’t be bought! Yes I am an odd soul but a right one at that. As for work, I am a business owner. Thanks for asking my friend.

        • Watchman

          Business owner that’s a good laugh. You are just an Obama boot licker who is suffering from Stockholm syndrome.

          • Jazz

            Mr Walker how is that S&P going to 1400 prediction working out for ya? Hahahahaha you make me laugh chum!

          • Watchman

            You really are that pathetic to call me Mr. Walker considering that is somebody completely different. But that’s ok I get it your microscopic brain cannot help to simplify and think what it wants to. Now be a good sheeple and get back to work Zazz/Jazz/other nicknames.

            You really haven’t changed in many years and still shout the same slogans. You just make me laugh when you say you are a business owner. You have owners and they own you which is what you mean.

    • alan

      Zimbabwe’s stock market went up 12000% in 2007. What does that tell you?

      • Jazz

        That is a 3rd world country. America is the world leader. Let’s compare apples to apples. America is and will continue to be the greatest nation on earth for at least a while longer.

        • Mike Smithy

          OK, so you need another example. How about Venezuela where their stawk market is up over 300% this year thanks to money printing (QE). However, if you ask the average Venezuelan, they will tell you that the economy and job outlook is horrible.

  • Always lives

    The economic collapse blog has issued a red alert for the last half of 2015. 58 days until 2016. Let’s do a countdown until then.

  • RTL89

    I’ve been a long-time reader of this blog, but this is my very first post. I just want to say that I definitely agree with us on the verge of a global financial meltdown. I’m not ignorant to that notion. However, what I don’t agree with is the hyperbole from the writer of this blog. Back in August when we had that huge plummet in the stock market, he was screaming from the rooftops about how this signified an economy on the precipice of collapse, but then September and October saw quite months for stocks. But in this article, now that the stock market is somewhat stabilized, he is now condemning and belittling anyone for putting faith into the stock market as a segue into a financial collapse. I find that to be very distasteful and hypocritical back-peddling. It’s one thing to keep people informed on what’s going on… but it’s another to twist and turn the story to make it look like you were right all along.

    • willkes

      Well he is right… He just can’t figure out when, which is what we all want to know, I mean that’s why I come here, even though I rarely post. Truth is, we all know it’s coming, if we could just figure out when, we’d have something. Micheal is right, in his defense, the fed is making things difficult to predict. They need to raise the interest rate and rip the band aid off, nothing changes as far as predictability goes, until that happens, in my opinion, of course.

      The Fed keeps dangling that carrot every month, and then do nothing, is Obama calling the shots on that, so as to prevent anything from changing, so he goes out a winner ? He says this economy is so great ? Then raise the interest rate, it’s time.

      • RTL89

        Yes, Michael is right. But so is a broken clock twice a day. He is very knowledgeable and very informative, otherwise you and I probably wouldn’t spend our time reading this. But I have never once seen him own up to the fact that some of his boldest predictions have passed without incidence. He posted the article “red alert for the last 6 months of 2015″. We are now early midway through November and nothing significant has occurred. But rather than at least acknowledging this, any commenters who refute this are labelled as “people who still don’t want to see the warnings”. He’s been saying we are “on the verge” for over a year now. Two years from now he will still be writing articles and on the day when it finally happens out of thin air and we are all caught off guard by it, he’ll write an article talking about how he was right and all the naysayers were wrong. This kind of tripe gets on my nerves.

        • willkes

          Yeah, but he doesn’t know when it will happen… Between you and me, I don’t know why he doesn’t say that, but I guess he has his reasons. We all know it’s going to happen, nobody knows when. It’s all a guessing game, and here Micheal is the one we are all here to read.

          • alan

            There should be indicator prior to any major event. The criminals at the top should have inside information when things start to get out of hand they will jump first, “fly to France”

          • J.C

            hehe, how I wish I personally know these ‘criminals’.

        • nevergiveup

          I am also a bit frustrated with this site and with Michael. I have been following the blog since early this year and have had similar feelings. But we definitely cannot say “nothing significant occurred”. I cannot remember a year being this volatile economically (I am talking about the peaks and troughs in a short period) environmentally and geo-politically. It is incredible that the global markets (Especially China) recovered like they did. There are a lot of people saying that it’s all BS, the iceberg has already been hit and the ship is going down.

      • Visa

        “Obama calling the shots” Ha Ha Ha , You gotta be kidding me. Obama is a grocery clerk and does what he is told. The bankers call the shots Jamie Dimon and Lloyd Blankfiein are the puppet masters.

    • Paul Thomas

      The powers to be rigged the markets in October, they were watching like us and knew that October was already a bad month for stocks so they manipulated the system again.

      • alan

        And they will continue too, so…that means the stock market has no connection to the economy.

        • df NJ

          In New Jersey, stores are full of customers buying products. There are tons of cars and people. At least in New Jersey, there seems to be some real economic activity.

          • Uncle Scam

            same here in texas. TONS of people are buying and shopping.

          • pulltheweeds

            same thing happened in the 1920’s

    • AzDi

      Do you wonder why the Feds and the Central Banks all over the world are afraid to increase interest rates by such a small amount as a 1/4%? Wait until they do, then you will see what happens. They are the only reason the crash has not happened yet.

    • CASTIEL

      Give more importance to Syria…….this recession its causing the financial war betwen russia china and USA….remneber what the great depression caused back in the 30s ?

    • kathy k

      You need to read more blogs Michael does not base his articles on month to month wishy washy stock happenings. He researches information & reports what he learns. So before you criticize look further into this.

    • retired22

      The hard fact is that aside from the hardcore Keynesian’s everyone else is in agreement that there is no known cure available to save the Global economy!

    • Алексей К.

      Rtl89, that’s probably because you are not aware how equity markets work. The unexpected plummet in stocks in August with DOw loosing more than 1000 points over two trading days spells an imminent disaster for the market provided the Dow doesn’t bounce back to new highs! The plunge in the market was a big deal because the technical support line was broken which means the confidence in the market was lost. This spells the collapse is imminent which was the case both in 2001 and 2008 market crashes. All you have to do is watch for the recurring patterns in the markets to see where it’s going and not to ignore the warning lights. If it was not for the artificial prop-up by FED the markets would have collapsed big way long ago. They can play the con game for awhile yet they can’t do that forever as the equity market is moving in the opposite direction of the economic Mother Nature.

      • RTL89

        But how long can they extend this out for? If it’s gonna collapse, I say let it collapse so we can start anew and rebuild. Why are they dragging this out, and more importantly, HOW are they doing it? Are they using some kind of accounting trick?

  • Mad Monkey

    I work for a gold and copper mine, retrenchments were started this week. Gold price is crashing based on Yellen. Gold prices supposed to go up!! We have the US rate carrot that is waved around and another broke country (Venezuela) selling gold to stay afloat. Venezuela currently experiencing massive inflation and on the verge of civil unrest.
    Initially I think deflation in the US then massive inflation as currency fails.
    Yes banks are loosing money big time – but it is almost on a monthly bases another country goes down the tubes the trickle of broke countries will soon become a flood.

  • J.C

    What I don’t understand is, if the US economy is doing so badly, how come the US data released yesterday was an indication that the economy is performing well and if this keeps up, there might be an interest hike in December? Facebook earnings beats expectations and their stocks are at all time highs, followed by Google, Amazon and other big IT companies etc..hmmm, did I miss something? The only downside seems to be the Euro Zone.

    • RTL89

      These are all manipulated data points. The entire U.S economy is built on one thing: faith. If the numbers look bad, stocks are gonna fall. Raising rates eve just a little bit would cause major ripples in the global economy, HOWEVER, giving a statement that “we might Possibly raise rates in December” creates that faith in people that everything is fine.. even though they never have any actual intentions to raise rates. It’s all about constantly playing with the numbers to keep everything afloat. It’s nothing short of criminal, but really, if we the people are gullible enough to believe this nonsense, then that makes us just as bad as them.

      • J.C

        Are there proofs that these points are rigged? Are IT companies also rigging their earnings so people pump shares into them? I just find contradictions so bizarre.

        • alan

          Come visit the Confederate States if you want to see third world. Loose your job and you’ll get a dose of reality.

          • J.C

            So your CS is as bad as real third world? You should compare to Africa :). Loosing a job is just as devastating in any parts of the world depending on where you are I guess.

          • df NJ

            The blues states with all their socialism are doing pretty well. In New Jersey, there’s tons of economic activity. In my state, the activity seems to match the numbers reported.

          • GoldenGirl

            Like Illinois? Last I heard they are raising property taxes (never a good sign) and are handing out IOUs to their lottery winners.

        • jox

          The aggregate earnings are growing? Or you just pick a single data point because it fits your reasoning?

      • GoldenGirl

        Yep. It’s all about confidence.

    • jox

      In Spain stocks are OK, unemployment goes down, GDP strong, etc etc. In every country, governments don’t know how to create jobs and wealth, but they certainly know how to manipulate statistics.

      • J.C

        Yes, this is what I find interesting and its like a pattern now. One moment the us data sounds bad then the next one, expect that data to be peachy and so on…..however people are pumping money into stocks so one may think wow, so many people really DOES have money.

        • jox

          The money put on stocks doesn’t come from people savings. It is debt-money created at will by the banks, using the fractional reserve mechanics. This is exactly the way bubbles are formed: with investors going in debt to profit from the low rates. But then if stocks go down, everyone sell everything and you have a panic.

  • XSANDIEGOCA

    If this administration said the Sun rose in the East, I would not believe it.

    • df NJ

      Republicans are just as bad as Democrats. If you think otherwise you are deluding yourself.

      • XSANDIEGOCA

        I am an Independent for precisely that reason.

  • Steeve Girard

    I keep telling you, we still have 2 more cycles of Band Aid economics before things really falls. 2022-2023 and 2029-2030. After that we run out of fixes. That is when people will say: HO CRAP! and the fantasy of the consumer world, will be tumbling down.

    • df NJ

      As long as there is more people living and working under 60 years old than older, everything will be fine. There are a lot of millennials entering their peak earning years. Plus there could be new technological developments that spur growth. No one predicted the breath of the internet. Maybe 3d printers or hot or cold fusion will ignite the worlds economy. I bet in 2025 older people will be saying “I wish I were younger.”

      • Watchman

        “Everything will be fine”. Ah so you are part of the everything will be fine Stockholm syndrome crowd.

        So $211 Trillion fiscal gap with 22.9% unemployment along with true inflation (if calculated by shadowstats using 1980’s methodology) of 10% is fine?

        Can’t wait for the world to come crashing down on you with something called reality.

        • df NJ

          We survived 2015 pretty good so far. Don’t you agree? How much is really different from last year this time? The national debt to GDP has pretty much stabalized ince 2012. And every year more baby boomers are paying off their houses. Barring nuclear war with Russia or the Israels carrying out the Sampson option things don’t look to bad for 2016. I wish GDP growth was better. Of course, Paul Ryan could default on the US debt and that would be interesting.

          • Watchman

            You really are clueless and have no idea what you are talking about. Contrary to all the posted facts and statistics you choose to bury your head in the sand with the everything is fine crowd. If you think a detached from reality stock market is ok then you have no understanding what a real economy is.

          • RTL89

            Wrong. More people are LOSING their houses than they are paying their mortgages. Why do you think baby boomers can’t retire comfortably without seeking employment on the side? Primarily it’s to support their millennial children who can’t find jobs (because there aren’t any, and of the ones that are available, they go to the experienced baby boomer). What’s different than before? Well in 2008 we had a subprime mortgage crash and a stock market crash. Today, we have those two things IN ADDITION to a subprime auto loans bubble, a student loans bubble, a currency bubble, and a multi trillion dollar derivativees bubble. Add to that the fact that Walmart saw its worst stock plummet since 1987 (again, because people don’t have the disposable income to spend) and he possible bankruptcy of Mcdonalds (google it.. it’s true), we are DEFINITELY worse off than before.

          • GoldenGirl

            AND perhaps the worst of all, the sovereign debt bubble.

          • ResilientNews

            Nice response RTL, also dont forget the federal deficit is still rollin along at 400B a year… sustainability to 2025 and beyond!! lol

          • RTL89

            YEP! And they spent 350 billion just this past Monday right after they were granted a debt ceiling raise. That’s a scary amount of money in such a short period of time!!! But yet you don’t hear any of the talking heads mentioning it…

    • GoldenGirl

      You could be right. Do you read Martin Armstrong? This is what his Economic Confidence Model (ECM) shows, for the most part. And it has been amazingly accurate, with a data base like no other.

    • K2

      Interesting, what in your opinion could be those band-aids? QE’s are merely ”preventing” what could be contractions but with lesser and lesser efficacy. So QE’s alone cant prevent a downturn until then. Probably the removal of the one-child limit in china could spur growth in china for a few more years and probably also contribute to some growth globally and b) building a milllion more empty cities throughout the world could be another band-aid for the global economy, but other than these what else? I am really curious.

      • Steeve Girard

        Sometimes you just have to accept to come down the hill. Band-aids, just keeps the suffering and misery from moving on, and also piles it up more. The Abrahamic trolls on this site have great difficulty to accept this.
        In others words, to feed on the “sucker” you got sometimes to kill it.

  • Wiz

    There are three undeniable facts that should give the most purlind stock market observers pause … these are:
    1) Investment is low because capitalists do not believe in the alleged recovery. For as long as investment is low, productivity will be low, and so wages will be low. Indeed, in the UK incomes are about to fall because of tax changes. While wages are low, demand will be low.
    2) Debt in both public and private spheres is high – consumer debt in the UK is at a record level. It goes up a bit, then comes down a bit, but the trend is no longer up, however. Some think this shows consumer debt is ‘bumping along the ceiling’, which means ordinary people are really stretched. These people cannot cope with interest rate increases.
    3) Central bankers know interest rates must go up because of speculative investments in undeserving asset classes. As has been stated, that is why the stock market is high when demand and profits are low. But interest rates are not going up. It is not just because of fear of consumer debt defaults and another property crisis – it is because of fear a higher dollar value will bankrupt emerging markets which have to repay enormous borrowings in dollars. If interest rates don’t go up when they should, asset bubbles will grow. Debt imbalances are already ten times larger than in 2007. Governments don’t want higher interest rates because their bonds will be sold off, and this will push yields on those bonds up, which will drive governments into bankruptcy.
    My conclusion is that, although we can’t know when a crash will come, we can say that, unless there is widespread debt forgiveness, a crash is inevitable, and this crash will dwarf anything the capitalist world has ever known. Debt forgiveness is impossible as capitalism would be killed, but the effects would be better than a huge economic collapse, which seems to be the alternative. In the meantime a crash can and will be postponed, but this will only make things worse in the long run.
    You can’t prepare for all this, I’m afraid. Erm … have a nice day!

  • df NJ

    First of all we survived the asteroid armageddon of September. How come the doomsayers never say after the fact, “oops, I got that wrong!”

    Anyway, realistically, as long as Americans continue to pay off debt our economy will continue to lumber along.

    From a Bloomberg story (this is a more realistic 2016 than Michael’s doomsday predictions):

    “The upside of America’s slow growth is that the economy is way short of inflationary overheating, so there’s no need for the Fed to jack up rates rapidly and potentially kill the expansion. “Recessions come out of excess,” says Liz Anne Sonders, chief investment strategist at Charles Schwab. “We’re still in recovery mode. We’re not even in expansion mode.”

    American families have paid off debt since the 2007-09 recession, and they have pent-up demand, particularly for housing. “The millennial generation is moving out of the basement of their parents’ homes,” says Steve Rick, chief economist of CUNA Mutual Group, which sells insurance and investments to credit union members.

    Strength in consumer spending could embolden businesses to invest to upgrade plants, equipment, and software. The updates are overdue. “If anything, both consumption and investment have been too weak throughout this expansion,” Deutsche Bank Chief Economist Torsten Slok wrote to clients in October. “As a result, I continue to believe that we are several years away from the next recession.”

    • Watchman

      Keep drinking the cool-aid. The facts and evidence are right in front of your eyes but you suffer from Stockholm Syndrome. Are you really so blind to see that 2015/2016 is a parallel to 2007 and 2008? What about the current Fannie Mae no down mortgages what about the current auto sector subprime loans?

      • df NJ

        I can only go by what I see in New Jersey. The economy is pretty good here.

        • J.C

          I recall NJ is also ranked very high in education standards compared to
          other states. If I were to live in the US, I would consider NJ or in
          Seattle, WA.

        • jox

          How did it look in 2008, in the months previous to Lehman Brothers?

        • Gay Veteran

          I live in Baltimore and it does NOT look good here, nor in NW Tennessee where my mom lives

  • Chris

    The reason why no one is paying attention anymore is the fact that websites like these have been predicting collapse close to 7 years now…Think about that 7 years!!! I do believe that we are headed for a severe downturn and serious recession. But who can honestly read gloom and doom 24 -7 for this period of time? I keep an eye on things and enjoy my life. I do not believe that there will be tanks on the streets of NYC anytime soon. I do not believe that I have to harden my defenses and take up arms against my neighbors. I have read all the books and seen all the movies. For some people it seems to be wishful thinking, to go to war on the streets of downtown USA. I do not know why.

    • 2Gary2

      I listened to a talk by Chuck Missler from back in 2011 and guess what Chuck-we still standing. You were dead wrong.

    • CASTIEL

      maybe when Obama bin laden piss of so mutch the russians…..you will see T-90s in your streets……its because people like you that dont care about nothing just because you enjoy life…dont care if the banks and the government robs people or do wars in the interest of the elites…..when you have to defend yourself from your neighbours its when there is nothing left……and by the way Obama Satan is playing in Syria and the idiots of UE that time will reach us some day….do you know whats certain in this world? everything that begins will end some day….so keep enjoying the sheep life because the wolf will catch you

      • Chris

        Tell your Doctor to increase the dosage on your meds! Also, you might want to brush up on your use of the english language

        • CASTIEL

          And why you dont go by some glasses you blind badger??? Well you must be the one full of meds or completely blind to say crap like this…..its that what you have to respond to my opinion? your little brain cant do more?

          • Lennie Pike

            Chris needs to brush up a little on his use of the English Language himself. The correct English grammar is to say: “Tell the Doctor to increase the dosage OF your meds.” – not “ON” your meds. Also I believe that that both words of
            “english language” should be capitalized. At least he didn’t say – ON the English Language.

            I probably made a grammatical mistake myself somewhere in the above, but it doesn’t matter because I am sure I was understood – and my Brother CASTIEL, your English is just fine, I and everyone else understands everything you say just fine.

          • none

            It’s called a smart phone, most people make grammar e%rose and can’t write. Then go back to correct it.

      • Teru Mikami

        Correctnamundo.

        When the drains finally scab over, all the vermin will drown.

      • Albert Griggs

        Putin is all that is saving Western European Civilization.the treasonous US government and Pentagram are our enemies.

    • Ezekiel 12: 21Again a message came to me from the Lord: 22“Son of man, you’ve heard that proverb they quote in Israel: ‘Time passes, and prophecies come to nothing.’ 23Tell the people, ‘This is what the Sovereign Lord says: I will put an end to this proverb, and you will soon stop quoting it.’ Now give them this new proverb to replace the old one: ‘The time has come for every prophecy to be fulfilled!’
      The people in Noah’s day also probably thought this crazy old man has been building his great big boat for the last 50 years, nothing bad is really going to happen…
      Like Michael always says – we have 48 hour news cycles and the attention span of goldfish… 2008 was the starter, now it’s time for the main meal. The reason why people like Michael and lots of others have been trying to warn us for the last couple of years, is because none of the problems that caused the previous crash was ever resolved. And until they are, Michael would be denying his calling as watchman if he stopped warning us…
      These are spiritual matters. You need the Holy Spirit to understand and relate. The Holy Spirit is available to all who accept Jesus as Lord and ask Jesus to baptize them in the Holy Spirit…
      God Bless!

    • John Byde

      Perfectly put. Dial it down, Michael!

    • Daystrom2012

      Agreed, these stories have been circulating for quite some time and people can get fatigued from always being told it’s about to happen and then nothing happens. Since way back to Hal Lindsey’s late great planet Earth from the 1960 ‘the stories have been coming . It’s coming but no one knows the day or the hour, but if you think that someday that perhaps there may not be tanks in the streets I suggest you read the book of Revelation, especially chapters 6-18.

    • kartune

      A man walked down a dark alley and had the crap knocked out of him. He was so very angry. So he walked down that alley and had the crap knocked out of him. He was so angry! He walked down the alley etc etc. You’ve been reading these stories for 7 years and you still come back? Don’t come back. Freewill.

      • jim_robert

        Better to be a year too early than a day too late

    • Albert Griggs

      Seven years? I have been hearing them since Ayn Rand and Harry Browne in the 1970s …… Enough already! Just do it!

    • Scottsman

      I think you raise a good point. Nothing wrong with a little preparation just in case but obsessing about it is depressing and keeps from enjoying the present

  • jack dawson

    I think what he read said was: “Iceberg dead ahead…”

  • John Doe

    “Why won’t the American people listen to the warnings?”

    Actually somewhere around 65% believe we are heading in the wrong direction according to most polls. Everyone knows the unemployment rate they give us is BS. What are we supposed to do? Grab the bug out bag and head for the woods?

    • df NJ

      What I don’t understand is why the American people always elect politicians who are very much opposed to public policies that would address poverty and middle class issues. There has to be some way other than the federal reserve to kick start this economy into a higher gear. Gasoline prices dropped and all everyone did was pay off their debt. I blame the American people for saving too much and not spending enough.

      • Watchman

        “I blame the American people for saving too much and not spending enough.”

        Your solution is to spend, spend, spend??? No wonder you sound just as clueless as the politicians.

        • Watchman’s Mom

          Son, You are delusional. I told your father to give you your meds. You know about as much as a sardine can son. Go back to your room! And take out the trash!

      • Gay Veteran

        because we are given the illusion of choice

        • Fudgey packer

          Yeah cuz u know every thang

  • sherlock32555

    Well then we will not have the money to give to our enemies and to ship them here so the dumb ones that think this it the best thing since sliced bread! Don’t know about you but I am tired of our tax money going to support all that your president and former presidents. Once we run out of money then you will see what the true meaning or definition of burning the place down.

  • Александр АО

    Central banks buying stocks, central banks issuing currency. Its a closed loop. No connection to reality.
    Centrally planned bubble blowing perpetuum contraption. But that is for 1%, for elites.
    Real economy may crash (already contacting worldwide) and burn. Sucks to be 99%.

  • Sandbagger

    The Girl Scouts are raising the price of their cookies. Another indication we are circling the drain.

    • Bubba Billy Boo

      Oh no call a waaaaambulance. The Girl Scouts support gays so you shouldn’t buy the cookies anyhow.

  • Jazz

    I thought the market was going to crash in November? Before it was October and before that is was Shemitah? Lol fresh new market highs coming very soon. You all ready for the firework show?

    • Watchman

      Jazz/Zazz and a million other nicknames so where is this new market highs? The only highs I can see are what you are under the influence of. Now be a good little Sheeple and run along.

      • Jazz

        Mr Walker, the S&P is just 34 points from new highs. The Nasdaq 100 just recently hit a new high. The broader Nasdaq is less than 100 points from new highs. The Dow is less than 500 points from new highs. I said they are coming VERY soon. Guess you can’t read either genius!

    • GoldenGirl

      I do agree with you about the market going to new highs. From the analysis I read ~ which has been absolutely correct on this ~ we will either have a slingshot move (just to weed out a few more people) or we are looking at a base going into a phase transition. We haven’t had a bubble in the market because there hasn’t been enough retail participation. However, after 2017, all bets are off. Not sure where I’m going to put my money after that.

      • Jazz

        I see you read Mr Armstrong because that is identical to what he’s been saying. I agree with his analysis and models for the most part. They have been very accurate. His models predict we have more time and I agree. Are you buying stocks too? I bought more on the cheap in August. What about commodities and currencies? I have been making a killing there!

        • Watchman

          Jazz/Zazz, whatever, the markets and economy are going down regardless of your far fetched thoughts or predictions.

          • Jazz

            Lmao. Walker, Just because I was right and you were wrong, don’t get mad bro! I said the market was bottoming in August would retest the lows before making fresh new highs by year end. Cha cha ching baby. That’s the sound of me making lots of moola!

          • Watchman

            Keep drinking the cool-aid. The facts and evidence are right in front of
            your eyes but you suffer from Stockholm Syndrome. Are you really so
            blind to see that

          • Jazz

            I’ll keep making money Mr Walker by doing the opposite of fools like you. In the words of Mr T, “I pity the fool…” Troll on!

        • GoldenGirl

          Yes, I do read Mr. Armstrong. I wish more people would. I do buy stocks, no bonds (when Marty speaks, I listen) and not so much currencies. I’m pretty conservative. I do plan to subscribe to Socrates when it is offered, so that could change. What I really appreciate about him is the education I have received about economics and cycles in general. When one understands how things work, it is so much easier to act out of reason rather than reacting out of fear. Good luck to you.

          • Watchman

            You and Jazz will look back very shortly and realize the folly of your ways.

          • GoldenGirl

            Perhaps. My goal is just to survive what is coming. Armstrong Economics helps me with the financial part of that. So far, he (Martin Armstrong) has been the best counsel I have found in that area.

          • Jazz

            Pay no attention to that fool. He would have you burying your talents in the ground. We know how that worked out.

          • Jazz

            Hahahahaha. You all have been saying there was going to be a crash for years. I have been making over 20% a year in the markets. No wonder you all are broke. Sitting on the sidelines means you are just a spectator. Get in the game bro!

          • Jazz

            I agree. Socrates looks very interesting. Have you been to one of his WECs? Was thinking of attending one in 2016.

          • GoldenGirl

            I haven’t been to a WEC, but would definitely attend, if possible. I did do his solutions conference online and it was pretty interesting.

          • victor

            What was his solutions conference?
            What made it interesting for You?
            I like the history he adds to back up his writings and data.
            Pretty amazing.
            Socrates will be pretty amazing.

          • GoldenGirl

            At the solutions conference he presented his plan for a way forward after the reset, which he believes will come as the result of our sovereign debt crisis. He believes that government (politicians) is so corrupt that the only way to get back to the Constitution is to institute political changes, such as term limits for congress, eliminate the federal income tax, set the government budget at 5-15% of GDP and the government would not be able to borrow money. (His explanation for this was the most interesting part and will most likely be the most difficult to institute, given the government’s love of taxation.) I don’t have my notes easily accessible, and I am simplifying it greatly, but he does mention a lot of these ideas in his blog posts.
            I agree with you regarding his knowledge of history (which does repeat itself), his incredible data base, his discovery of the ECM and the cycles for just about everything. And he is very patient to explain everything, which is good, as it certainly took me awhile to understand what he was talking about.

          • victor

            Thanks for the reply.
            We commented back in forth in the past, around September.
            I know you’re a Christian, as myself.
            I read Martin daily, along with this blog.
            Would like to communicate more with you if possible, from your Christian perspective and financial learning.
            Are you on Face Book? Would like to friend you.
            I thought about next years conference for Martin.
            Also I like to read about prophecy, and know it all has to do with Israel, but current events are bringing us closer to the NWO.
            Of course it’s all on God’s time.
            Before the real chaos, he still desires man and woman to come to him, before it’s to late

          • GoldenGirl

            I remember you, Victor. I don’t know how much learning I have to share. Like you, I try to understand prophecy and especially the times in which we have been chosen to live. It seems like things are happening at warp speed, doesn’t it? I am on Facebook, but don’t post there very often. However, email me at abbiesnest@gmail.com and I will give you my information. Looking forward to what you have to say.

          • victor

            Just wondered if you got my email,
            first two tries didn’t go through for some reason.
            Let me know when you have a chance, if you got the third one, it didn’t fail, so all should be good.
            Look forward to sharing thoughts, spiritual and financial.

          • GoldenGirl

            It didn’t come through. I think it’s working, as I just tried it. If you don’t receive an answer from me by later this afternoon, you might want to try again. :)

  • lmaoLMAOlmaoLMAOlmao

    when gosh darnit

  • Joel Brooks

    How could anyone look at the current state of this nation (and world) and believe for one second that things are even relatively “ok”. Things are not “ok”. Things are completely unhinged and the full brunt of a failing world economy, coupled with a few regional wars is about to hit all of us in the *ucking face. Hindsight is 20/20 *itches.

    • df NJ

      Here’s my evidence: In NJ, we have lots of jobs, lots of cars driving around, store shelfs are full, people are buying stuff everywhere around me. In my mind, it looks like a pretty good economy because I am seeing all the activity. You could start talking about human nature bla bla bla. You could point to bad trends bla bla bla. But it just seems to me if things were really that bad or on the edge of collapse we would see a hell of lot more rioting.

  • Micheal, I have been reading your blog since early 2012. Increasingly you are being derided as the “broken clock,” but do not despair. The information you bring is usually though provoking. I imagine the readers here also frequent ZeroHedge and Kunstler, both very excellent as well. Though I do not agree with their conclusions, Bill Maher and Rush Limbaugh also bring thought provoking information, too.

    I think people are looking for some actionable plans from you – other than God, Guns, Gold and Grub. Those things are fine and good, but not to the point of causing people to be isolative. I can promise you this: There will be no total collapse. Even if the nukes and EMP’s and zombies attack at once, people will still trade and specialize in particular fields of labor. Capitalism is a natural manifestation of a free society. (Hint: I am an economist)

    If there comes the day that we are no longer free, then we must resist violently until we are. That’s it. That is the plan. Until then, for Christ’s sake, play a hand! Buy some stock, get some land, open a business, have some kids. Don’t hunker down for the storm – when it comes, get on your roof and scream – BRING IT!!

    LIVE – but be prudent. Carry a piece. Get some metals. Learn to grow food and herbs. Do these things, but at the same time – earn some damned dividends! The market is NOT rigged. Does anyone really think that there can be so many diverse interests and some special small group can yet still maintain some overarching control over a free market? Hell, no. Interest rates are kept low because most countries do not have the tangible assets to clear their bonds. That’s it. That is the reason. There is no conspiracy, we just all screwed ourselves financially on a national scale and there are only a couple ways out of it. Inflation or default.

    People think we are going to go the way of Venezuela or Zimbabwe if we do either. Why the hell would that happen? Our economy isn’t even playing the same sport as those little countries of limited resource. We have all of the resources in the United States. If no one ever traded with us again – we might hardly notice!

    You are a lawyer, Micheal. Use your education and follow possibilities to their logical and consistent ends – and then form an intelligible and actionable course. Then, let us know!

    Good Luck and May Your Dow Never Jones!

    • df NJ

      Eric, as an economist I have a question for you. Do you think income inequality is an important issue in this country? It seems to me the problem with our economy is most business do not have enough customers. I think if our workers had higher wages we would see more growth and commerce. What are you thoughts? One more question. Given the extreme levels of income inequality we have in this country, does money become worth less as it is concentrated into fewer and fewer hands? In other words, does the value of money come from people being greedy about it and how can we get people to be more greedy for money in the aggregate? It just seems to me with median workers wage being so depressed there is no motivation to work any harder since lifestyles are so strati-spherically bifurcated.

  • HeyAHuman

    **Michael posts an article about potential financial disaster: “Hahaha!!1! I thought the economy was supposed to collapse BEFORE! More stupid doom articles! You’re wrong, the economy is only getting better!”

    **Michael posts an article about anything except for financial disaster: “WTF Michael? Economy isn’t so doomed, is it??1! LOOK EVERYONE! Michael knows he was wrong, so he’s changing the subject!!”

    Rinse and repeat. Welcome to the Economic Collapse Blog!

  • not me

    Most Americans are fat, lazy and stupid. This is how the rest of the world sees us. Unfortunately it is true.

    • df NJ

      You only criticise and hate in other people’s character what you do not like about yourself. Here in NJ, we have some really smart, thin, energetic people too!

  • Heinrich van Rooi

    Keep an EYE ON DECEMBER…. This will setup the the financial market crash…It is evident if you prediction is base on sound market analyses

    • Jazz

      No financial crash coming anytime soon. US economy is strong, consumers are strong, and no signs of a recession. The markets refuse to go down so the worst is behind us for now. It will take many years before a financial collapse. All the central banks are in this together keeping the global economy afloat.

      • RTL89

        …not sure if that’s sarcasm or if you’re genuinely serious.

        • Jazz

          Dead serious. The US markets are about to hit all time highs and 2016 should be a great year too. The US financial collapse is at least a few years away.

          • RTL89

            And are you aaware that these numbers are heavily manipulated for the sole purpose of entertaining the illusion that the economy is performing well? The markets hit these same kind of highs back in 2008 JUST before that housing crisis hit.

          • Jazz

            Yeah yeah and that was BEFORE the central banks all colluded together to keep the financial markets afloat using endless rounds of QE. Yes the numbers are manipulated but the system will keep pressing on. There is far too much at stake for a collapse to occur. The central banks won’t allow it at this stage.

          • Watchman

            Obviously you don’t know what M1,M2,M3 and the effects of QE have on either of those. Then again Zazz you are just a troll and everybody knows this. Now run along you troll.

          • Watchman

            RTL89 to make matters worse there is now the auto loan subprime crisis brewing and the same housing subprime crisis brewing just like in 2008. Watch the fireworks soon.

  • JailBanksters

    The more you have, the less you have to lose, the less you have to lose, the more you have to lose.

    • Jazz

      Thank you Yoda! May the force be with you. Good Jedi are you.

      • df NJ

        It’s like thinking about what your brain is doing between throughts. It’s a really hard place to get to in your mind.

        • Jazz

          Jedi mind control works wonders

    • HeyAHuman

      Reverse Buddhism?

  • Jazz

    Look at those robust job numbers. Woo hoo! The economy is firing on all cylinders now. Fed can raise rates in Dec.

    • J.C

      What type of stocks would you recommend to invest in now?

      • df NJ

        Hedge funds. Just kidding!

      • Jazz

        I am focused on US based companies who get most of their revenues within the US. I like consumer goods, technology, and health care. I also have been long the US dollar, short the Euro and short gold for a few months.

    • df NJ

      A rising tide lifts all boats. Hopefully, wage inflation will spur earnings growth that will offset the interest rate hikes. And we can then live happier ever after…

      • Jazz

        Well most people fail to realize stocks and interest rates historically go up together. Most people think rising rates are bad for the markets. History proves otherwise. As long as rates aren’t rising fast and the economy isn’t slowing down at the same time then increasing rates is not dangerous for stock market investors.

    • HeyAHuman

      Out of everyone here, I can promise that you’ll be eating the most crow :)

      • Jazz

        Lmao. You’re just mad because I have called the markets moves correctly play by play. Don’t hate me because I’m right about the Dow going to 20k and then 30k by 2017.

      • Watchman

        Amen. Zazz aka Jazz has been trolling for a long time now.

    • GoldenGirl

      “We may be looking at the breakout to the upside next year for the phase transition.” ~ Martin Armstrong 11/7/2015 Time to make hay while the sun shines, boys and girls; this won’t last forever.

      • Jazz

        Yes Martin has it correct. It’s funny how people keep saying the markets are going to crash. Yeah ok! Lmao. We had a mild correction in Aug & Sept and now the markets will continue to melt up. Where else are people going to invest? In cash? – nope. Bonds? – nope. Commodities like gold? – nope. Stocks are the only game in town right now with lots and lots of demand. The markets will keep rising through at least 2017. Central bankers say the show must go on!

        • GoldenGirl

          I think when people hear the word “crash,” they automatically think it is the stock market. I used to think the same thing. Then I got schooled. lol We are headed for a crash alright, but it is sovereign debt, as I am sure you know. In the meantime, you are absolutely correct in that there is no other place to put one’s money, and apparently the rest of the world agrees. It is just not the market’s time. :)

          • Jazz

            Yes you are correct. The US is the safest place on earth so if we came crashing down it would collapse the entire world. No one wants that so we will keep on with business as usual for many more years. We remain the world’s center and investors keep flocking to our currency, bonds, and stocks. The fireworks are about to go off propelling us to new heights. Many will get left behind as they think a stock market/economic crash is about to happen. Lol

          • Watchman

            Bla Bla Bla Zazz. You couldn’t be more predictable. Can’t wait to quote you when the system comes crashing down. Notice how you are absent when the market is down?

    • MaxRockatansky33

      Tell this to 50 million Americans on food stamps or 100 without job. Economy is firing only for bankster parasites and the elite. Yes, let FED raise the interest rates and the House of Cards will start to crumble.

      • Jazz

        Lol. No boogie man to bring the markets down. The economy is safe and sound for now. Eventually if the US debt gets called in we will have problems. Until then the bull party wages on!

        • Watchman

          Bla bla bla Jazz Zazz. How much do you get paid in Zimbabwe?

  • df NJ

    Back in the 90s tax policy was such that if CEOs took larger cuts of profits via stock options or compensation they would be taxed heavier. It would be nice to have a tax policy that favored growth in equity to spur economic activity. Then then CEOs would plow all the profits back into improving the company rather than paying taxes. Even if we just had it as a five year policy it would be nice to see some real growth in our economy for a change.

  • Enrique R. DéZuardí

    7 out of 10 of the comments here has nothing to do with the article…

    • df NJ

      98% of statistics quoted on the internet are made up.

  • MaxRockatansky33

    Dow Jones is close to 20k all times high. There will be no collapse of global economy without black swan event ( like eg Deutsche Bank bank crash) or a major war in the Middle East.

    • df NJ

      The thing is, the people who are enjoying extreme wealth and privilege will lose everything if the black swan event drives the masses crazy. I think the people in power know exactly what how to maintain their own wealth and privilege. Pay people just enough money so they show up for work and do not riot but nothing more.

    • Philosopher2

      Or a major terrorist attack the night before the G-20 meeting in Turkey.

      • MaxRockatansky33

        It happened in Paris but this is too small to shake global markets. Thousands of killed and big part of a large urban area leveled will make this.

  • grumpyhillbilly

    Personally I think a lot do know it. The amount of 40 to 60 yr olds in the prime of their lives being stoned and suicidal is more telling about the reality of things than the rigged stock market. They can’t do anything to stop it, so they are spending and partying til the music stops. I tend to think it is a dumb choice. But if the big bad gov confiscates everything, they might turn out to be the smart ones.

    • RTL89

      We have an expression we use to describe that group of people. It’s called “staying asleep” lol. Ignorance must be so bliss. I wish I could just spend my way into oblivion without any regard to it needing to be repaid back eventually. But I actually have a soul.

    • df NJ

      55-70 year olds have the highest suicide rate followed by 40-54 year olds. I may have the years off a bit but that’s essentially what I read from a report.

  • La

    Funny how the article mentions that the stock market had a great October but the market is not an accurate barometer of the economy. Yet when the market does poorly Michael finds it is an accurate barometer of the economy. So obsessed with the market.

    • RTL89

      This is EXACTLY what I was trying to get at earlier!!! He absorbs the information he gets and then adjusts it to make his side look credible.

    • Philosopher2

      It is an indicator.

  • JailBanksters

    What means dead ahead. The US eCONomy has been on Life Support now for more than Decade and it’s still going. They just keep replacing the Batteries in the Pacemaker and it goes for a couple more years.
    Unless there’s an EMP that kills the Pacemaker, it’s going to be like this for another decade.

  • DaveL

    Yes, I have read the gloom and doom stories for 7 years now, and I’ve missed out on a lot of money by being very cautious. But I’m also in my 60’s and I’ve been burned badly, twice (2001 & 2008). At this age I cannot afford another downturn like either of those. In addition, while I have lived through 21% interest rates and 14% inflation, I’ve never seen anything like we have now : zero percent interest rates for 7 years and a $4.5 trillion infusion by the Fed into the economy. Yet, things are so shaky, the Fed is scared to death to raise interest rates even one-quarter of a percent. I am 90% in cash, and that’s right where I’m going to stay.

  • chris

    USA ,lots of nat. resources and debt approx. 100% of GDP.
    Japan, no nat. resources and debt approx. 200% of GDP .
    Japan chugs along.
    It could be many years to decades before the crash.
    IMHO, they will take us to more wars as this keeps the MIC running
    and many employed. The MIC has very little outsourcing.
    The MIC runs it all.
    Trump could delay the crash , but he is a MIC lover and profits from the fiat Fed. fraud.
    When we no longer have the worlds biggest killing machine,then the countdown begins.

    • df NJ

      I’m still kind of amazed and surprised we survived the 1970’s. I thought there is no way we would ever make it to the 80’s. But we did.

  • df NJ

    The corporate lobbyists seem more powerful than the union lobbyists by several factors. Name one piece of legislation put into law in the last 30 years that has help the worker making the median wage have more purchasing power with his take home pay? Not a single one! In fact the opposite is true. The Ayn Rand Republicans have completely monopolized our government to serve only the billionaires insatiable desire for more money and power.

  • majorx

    The same reason most people don’t face the fact that they have elected liars and charlatan’s to be their leaders they believe the tower of Babel that’s been created in Washington and they don’t believe the honest people trying warn America because the liars in Washington have a propaganda machine that discredits the Truth Sayers.

  • Jennifer S.

    The Stocks & Bonds companies should not be shutting down companies on just because they are loosing money from their stocks that are going down so much. I have heard that Pathmark went out of business, a lot of Radio Shack’s closed down, A & P will go out of business, the SUBWAY stores closed down, a lot of beauty stores and many other stores have gone out of business this year but why? Is it just because they have lost their money or because of this Stocks & Bonds issue. I have noticed that other stores may be taking over the businesses in the area such as WalMart is in competition with some of the grocery stores. But the loss of employment should be stopped sometime soon because what are the citizens going to do to be able to pay for their bills? Credit card companies, electric companies, rent and mortgage companies all want their money.

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