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The Taper Is On – 8 Ways That This Is Going To Affect You And Your Family

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Janet Yellen Ben Bernanke Swearing InThe unelected central planners at the Federal Reserve have decided that the time has come to slightly taper the amount of quantitative easing that it has been doing.  On Wednesday, the Fed announced that monthly purchases of U.S. Treasury bonds will be reduced from $45 billion to $40 billion, and monthly purchases of mortgage-backed securities will be reduced from $35 billion to $30 billion.  When this news came out, it sent shockwaves through financial markets all over the planet.  But the truth is that not that much has really changed.  The Federal Reserve will still be recklessly creating gigantic mountains of new money out of thin air and massively intervening in the financial marketplace.  It will just be slightly less than before.  However, this very well could represent a very important psychological turning point for investors.  It is a signal that “the party is starting to end” and that the great bull market of the past four years is drawing to a close.  So what is all of this going to mean for average Americans?  The following are 8 ways that “the taper” is going to affect you and your family…

1. Interest Rates Are Going To Go Up

Following the announcement on Wednesday, the yield on 10 year U.S. Treasuries went up to 2.89% and even CNBC admitted that the taper is a “bad omen for bonds“.  Thousands of other interest rates in our economy are directly affected by the 10 year rate, and so if that number climbs above 3 percent and stays there, that is going to be a sign that a significant slowdown of economic activity is ahead.

2. Home Sales Are Likely Going To Go Down

Mortgage rates are heavily influenced by the yield on 10 year U.S. Treasuries.  Because the yield on 10 year U.S. Treasuries is now substantially higher than it was earlier this year, mortgage rates have also gone up.  That is one of the reasons why the number of mortgage applications just hit a new 13 year low.  And now if rates go even higher that is going to tighten things up even more.  If your job is related to the housing industry in any way, you should be extremely concerned about what is coming in 2014.

3. Your Stocks Are Going To Go Down

Yes, I know that stocks skyrocketed today.  The Dow closed at a new all-time record high, and I can’t really provide any rational explanation for why that happened.  When the announcement was originally made, stocks initially sold off.  But then they rebounded in a huge way and the Dow ended up close to 300 points.

A few months ago, when Fed Chairman Ben Bernanke just hinted that a taper might be coming soon, stocks fell like a rock.  I have a feeling that the Fed orchestrated things this time around to make sure that the stock market would have a positive reaction to their news.  But of course I absolutely cannot prove this at all.  I hope someday we learn the truth about what actually happened on Wednesday afternoon.  I have a feeling that there was some direct intervention in the markets shortly after the announcement was made and then the momentum algorithms took over from there.

In any event, what we do know is that when QE1 ended stocks fell dramatically and the same thing happened when QE2 ended.  If you doubt this, just check out this chart.

Of course QE3 is not being ended, but this tapering sends a signal to investors that the days of “easy money” are over and that we have reached the peak of the market.

And if you are at the peak of the market, what is the logical thing to do?

Sell, sell, sell.

But in order to sell, you are going to need to have buyers.

And who is going to want to buy stocks when there is no upside left?

4. The Money In Your Bank Account Is Constantly Being Devalued

When a new dollar is created, the value of each existing dollar that you hold goes down.  And thanks to the Federal Reserve, the pace of money creation in this country has gone exponential in recent years.  Just check out what has been happening to M1.  It has nearly doubled since the financial crisis of 2008…

M1 Money Supply 2013

The Federal Reserve has been behaving like the Weimar Republic, and this tapering does not change that very much.  Even with this tapering, the Fed is still going to be creating money out of thin air at an absolutely insane rate.

And for those that insist that what the Federal Reserve is doing is “working”, it is important to remember that the crazy money printing that the Weimar Republic did worked for them for a little while too before ending in complete and utter disaster.

5. Quantitative Easing Has Been Causing The Cost Of Living To Rise

The Federal Reserve insists that we are in a time of “low inflation”, but anyone that goes to the grocery store or that pays bills on a regular basis knows what a lie that is.  The truth is that if the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.

Most of the new money created by quantitative easing has ended up in the hands of the very wealthy, and it is in the things that the very wealthy buy that we are seeing the most inflation.  As one CNBC article recently stated, we are seeing absolutely rampant inflation in “stocks and bonds and art and Ferraris and farmland“.

6. Quantitative Easing Did Not Reduce Unemployment And Tapering Won’t Either

The Federal Reserve actually first began engaging in quantitative easing back in late 2008.  As you can see from the chart below, the percentage of Americans that are actually working is lower today than it was back then…

Employment-Population Ratio 2013

The mainstream media continues to insist that quantitative easing was all about “stimulating the economy” and that it is now okay to cut back on quantitative easing because “unemployment has gone down”.  Hopefully you can see that what the mainstream media has been telling you has been a massive lie.  According to the government’s own numbers, the percentage of Americans with a job has stayed at a remarkably depressed level since the end of 2010.  Anyone that tries to tell you that we have had an “employment recovery” is either very ignorant or is flat out lying to you.

7. The Rest Of The World Is Going To Continue To Lose Faith In Our Financial System

Everyone else around the world has been watching the Federal Reserve recklessly create hundreds of billions of dollars out of thin air and use it to monetize staggering amounts of government debt.  They have been warning us to stop doing this, but the Fed has been slow to listen.

The greatest damage that quantitative easing has been causing to our economy does not involve the short-term effects that most people focus on.  Rather, the greatest damage that quantitative easing has been causing to our economy is the fact that it is destroying worldwide faith in the U.S. dollar and in U.S. debt.

Right now, far more U.S. dollars are used outside the country than inside the country.  The rest of the world uses U.S. dollars to trade with one another, and major exporting nations stockpile massive amounts of our dollars and our debt.

We desperately need the rest of the world to keep playing our game, because we have become very dependent on getting super cheap exports from them and we have become very dependent on them lending us trillions of our own dollars back to us.

If the rest of the world decides to move away from the U.S. dollar and U.S. debt because of the incredibly reckless behavior of the Federal Reserve, we are going to be in a massive amount of trouble.  Our current economic prosperity greatly depends upon everyone else using our dollars as the reserve currency of the world and lending trillions of dollars back to us at ultra-low interest rates.

And there are signs that this is already starting to happen.  In fact, China recently announced that they are going to quit stockpiling more U.S. dollars.  This is one of the reasons why the Fed felt forced to do something on Wednesday.

But what the Fed did was not nearly enough.  It is still going to be creating $75 billion out of thin air every single month, and the rest of the world is going to continue to lose more faith in our system the longer this continues.

8. The Economy As A Whole Is Going To Continue To Get Even Worse

Despite more than four years of unprecedented money printing by the Federal Reserve, the overall U.S. economy has continued to decline.  If you doubt this, please see my previous article entitled “37 Reasons Why ‘The Economic Recovery Of 2013’ Is A Giant Lie“.

And no matter what the Fed does now, our decline will continue.  The tragic downfall of small cities such as Salisbury, North Carolina are perfect examples of what is happening to our country as a whole…

During the three-year period ending in 2009, Salisbury’s poverty rate of 16% was about 3% higher than the national rate. In the following three-year period between 2010 and 2012, the city’s poverty rate was approaching 30%. Salisbury has traditionally relied heavily on the manufacturing sector, particularly textiles and fabrics. In recent decades, however, manufacturing activity has declined significantly and continues to do so. Between 2010 and 2012, manufacturing jobs in Salisbury — as a percent of the workforce — shrank from 15.5% to 8.3%.

But the truth is that you don’t have to travel far to see evidence of our economic demise for yourself.  All you have to do is to go down to the local shopping mall.  Sears has experienced sales declines for 27 quarters in a row, and at this point Sears is a dead man walking.  The following is from a recent article by Wolf Richter

The market share of Sears – including K-Mart – has dropped to 2% in 2013 from 2.9% in 2005. Sales have declined for years. The company lost money in fiscal 2012 and 2013. Unless a miracle happens, and they don’t happen very often in retail, it will lose a ton in fiscal 2014, ending in January: for the first three quarters, it’s $1 billion in the hole.

Despite that glorious track record, and no discernible turnaround, the junk-rated company has had no trouble hoodwinking lenders into handing it a $1 billion loan that matures in 2018, to pay off an older loan that would have matured two years earlier.

And J.C. Penney is suffering a similar fate.  According to Richter, the company has lost a staggering 1.6 billion dollars over the course of the last year…

Then there’s J.C. Penney. Sales plunged 27% over the last three years. It lost over $1.6 billion over the last four quarters. It installed a revolving door for CEOs. It desperately needed to raise capital; it was bleeding cash, and its suppliers and landlords had already bitten their fingernails to the quick. So the latest new CEO, namely its former old CEO Myron Ullman, set out to extract more money from the system, borrowing $1.75 billion and raising $785 million in a stock sale at the end of September that became infamous the day he pulled it off.

So don’t believe the hype.

The economy is getting worse, not better.

Quantitative easing did not “rescue the economy”, but it sure has made our long-term problems a whole lot worse.

And this “tapering” is not a sign of better things to come.  Rather, it is a sign that the bubble of false prosperity that we have been enjoying for the past few years is beginning to end.

  • 2Gary2

    the reason tens-of-millions of working Americans are living in poverty
    is because their employers depend on the federal government, and
    American taxpayers, to subsidize their low pay with various forms of
    public assistance allowing corporations like Walmart, McDonalds, and America’s banks
    to pay poverty wages and post obscene profits. The profits, by the way,
    contribute to the income gap that is holding back the economy and
    crushing the life out of low and middle-class Americans while
    corporations, CEOs, and shareholders who make up the richest 2% hoard
    all the wealth.

    Tax the rich and spread the wealth.

    • M miller

      Gary…… must make these comments just to get a response…….you can not be as stupid as your comments make you appear to be

      • R.A. Brown

        Well, if he is stupid, then there are a Whooooole LOT of idiots appearing out there. (Me included.)

        • M miller

          R.A…….at least your willing to admit your an idiot

          • R.A. Brown

            stay tuned, M. Miller, and we’ll see what happens. I’m betting on us idiots being right.

          • Malcolm Reynolds

            oooh, another sock puppet. Yea, you’re right. We aren’t seeing leftism collapsing all around us.

          • davidmpark

            Some people I know in Salt Lake Valley, Davis County, Utah County, and elsewhere are starting to keep records of literally everything Leftists
            say, do, publish, etc. to bring possible criminal charges, or possibly sue ’em.

            See Utah Code Title 76 Chapter 5. If someone uses a derogatory term, libelous claims, or says someone should die that’s enough to call police, or take ’em to court and sue ’em dry.

            The Left here will be bankrupt and possibly incarcerated for death threats if they’re not careful.

          • mikeymike61

            Right about what?

          • davidmpark

            Actually, no.

            Rep. Matheson (D, UT) announced 2 days ago he’s not running for re-election due to the massive negative view people have about Democrats.

            It’s not just Obamacare; the surveillance by NSA, the IRS scandals and targeting, ATF’s Fast and Furious, Bengazi, the worsening of the Federal Reserve’s QE’s, his narcissistic attitude, the Clintonesque flirting, etc., etc., etc., etc,…

            No – there will be no vindication. That’s why were here; to discuss and prepare for the failures that have been set in motion.

      • davidmpark

        He probably gets paid to do this. All websites without consistent Progressive/Liberal/Left presence and subservience has an SS officer assigned to it.

        • Gay Veteran

          the term you are looking for is fascism, the merger of state and corporate power

          • davidmpark

            All just terms and names while on 3 hours of sleep. I remember when evil had fewer titles and branches – easier to keep track.

      • Malcolm Reynolds

        Oh yea he can. The central tenet of leftism is you have to be just dumber than a bag of hammers. Gary is a sock puppet and fills that bag nicely.

        • 2Gary2

          given how much conservatives deny science I would look in the mirror if you want to see stupid.

          • k

            Start abusing him the next time you converse with him. Just like he does to you.Thats one of the best ways to deal with him.

          • Malcolm Reynolds

            You can try, but you will fail.

      • LMAO LMAO

        he is “stupid’er”

      • jox

        I assume you support the fact that the 1% get richer and richer everyday. And of course the blame should be on the poor and the middle class. Thne I’d said that the stupid comment is yours, not Gary’s.

        • M miller

          I support the fact that I and I alone am responsible for my success or failure…….I don’t whine about it I just pull myself up when I am knocked down and keep on going……..if you want to whine and cry that’s your problem but don’t blame your failures on successful people….dry your baby tears and grow up

          • jox

            That is simply not true. You and in general conservative people in this blog whine a lot, against Obama, Obamacare, liberals, taxes, washington politicians, and so on. But when Gary proposes to tax the rich, then some sort of anti-socialist chip implanted in your brain since your childhood takes control, and makes you to take the solo cawboy attitude, heroically defending the privileges of the 1%, blind to the fact that the middle class is disappearing around you, because that very same 1% you defend has gamed the rules. When you become poor, without a job and a house, blame it on Gary. Ja!

          • M miller

            I am not blind to anything……I am 61 years old……after my preferred career was closed I started delivering newspapers and pizzas to pay the bills…….Unlike you, I do not expect someone else to “give” me their hard earned money….I will make it somehow … your eyes and quit being a leach

          • 2Gary2

            I would take issue at the rich people working hard. The only thing they work hard at is gaming the system to benefit them.

          • 2Gary2

            I think these low info conservatives actually believe their rich benefactors care about their silly little social conservative agenda. The reality is that the 1% will throw the tea baggers under the bus as soon as it benefits them and they are no longer useful. Look at all the infighting in the right to prove this.

          • Malcolm Reynolds

            C’mon Gary don’t be so hateful. We’re both tea baggers.
            Except in my case (and everyone else on here with the ability to think) it’s a slur. In your case… chug a lug nutbag.

          • 2Gary2

            ok hoss-

          • Malcolm Reynolds

            “You and in general conservative people in this blog whine a lot, against Obama…”

            I think what you meant to say is we correctly point out your abject failures, dictatorial tendencies and utter stupidity. But that’s ok if you cant identify it correctly. It’s prolly some rich dude’s fault.

          • davidmpark

            Well, what do you think is going to happen on a Christian prepper website? We come here to get intel for where we need to strengthen our plans and to sometimes vent frustrations about a coming economic collapse and we know who’s to blame! I care not for your politics nor for your ideology. You wanna argue, then prove he’s wrong. Otherwise your attack piece here is invalid. Get over it sunshine!

          • 2Gary2

            Many studies show luck to be 50% responsible for success. Such as winning the lucky sperm club etc.

            You remind me of the audience that said “let him die” during the presidential debates on the right.

          • Malcolm Reynolds

            If you’re looking for “lucky sperm”, I’m sure Gay vet will hook you up.

          • 2Gary2

            sorry hoss-that was a ron paul/conservative audience–Wolf Blitzer asked the question of the dolt–google and see.

          • 2Gary2

            BTW–You are so naive. There are so many things beyond ones control that can affect you that you can not control.

          • Malcolm Reynolds

            “BTW–You are so naïve.”
            BWAAHAHAHAHA A commie foot soldier tells someone they’re naive.
            Best laugh today.

      • 2Gary2

        What did I say that was untrue or that you did not understand?

    • ArigatouGozaimas

      Do you live in America? So you make over 15,000 a year? Do you own any property? Do you own a vehicle? Do you have a computer, electronics, a television?

      If you can answer yes to these questions, especially the second, you are among the wealthiest five percent of people in the world. You need to be tax so that your wealth can be enjoyed among the the third world nations that have it so poorly.

      This is what the ruling socialist elite truly feel, never mind that they are hoarding billions for themselves as they pervert the economic system to their benefit.

      American proletariat, if you have the privilege of paying taxes, you are the wealthiest 5%. You are the bourgeoisie. Now pay your dues for all the suffering you’ve caused the rest of the world.

      (I was going to say free- market system, but that is nearly a joke at this point. Economic freedom is being reserved for ever increasingly high income thresholds.)

      • G

        This is so everyone can have a cell phone and be tracked by the NSA

        • Mondobeyondo

          Do you have proof of that? Because you see, I can’t afford a cellphone right now. Just this little “Obamaphone” that allows you to call 911 and your nephews, if you have enough time left.The NSA must love me!

      • Mike Smithy

        You are very perceptive and your analysis is spot-on. It is similar to Al Gore’s global warming hoax which seeks to destroy the middle class of successful countries via a carbon tax. The global social elite are pulling the strings and they don’t give a crap about you or your children.

      • 2Gary2

        you need to google absolute vs. relative poverty. I would think most people would already know the difference but you obviously do not.

    • Mondobeyondo

      Eat the greedy, feed the needy and let the rest eat cake…

    • Malcolm Reynolds

      Teacher says….
      A one trick pony thanks you.

    • mikeymike61

      gary the wealth is in Washington dc.
      DC has the highest income zipcodes and they produce nothing but regulations there.
      stick that up your and smoke it

    • mikeymike61

      if the CEO’s and shareholders make up the richest 2%, then why don’t the millions of working class americans in poverty simply just become CEO’s and shareholders?
      Then they can quit bitchin about poverty.
      Geesh, they need to step up or shut up., Im sick of listening to their boo hoo’s.

      • Gay Veteran


      • k

        yes its every easy to become a CEO.

        • Annette Smith

          You don’t have to be a CEO. I would like to turn my hobby into a gainful income.

      • jox

        You want everybody to be a CEO, work in the financial sector and live in New York? Ja! Is the most stupid thing I’ve read.

        • mikeymike61

          joxstrap, moron,
          I was trying to illustrate that personal responsibility has a lot to do with everyones lot in life. As in yourself…you being a liberal puss… will never build anything of value to add to society.

          • Gay Veteran

            like the banksters made $billions based on personal responsibility

          • mikeymike61

            see, there you go, they went to school, worked their way up. exactly what I am talking about

          • Gay Veteran

            ROFLOL, yeah, more like bribed politicians (oh, I’m sorry, “contributed to” politicians) in order to pass laws favorable to banksters and in order to avoid prosecution for their crimes (massive fraud being only one example)

          • Annette Smith

            You know what amazes me in the down economy? There is an industry that is just exploding. And, it sounds stupid, too. My friends are Chefs and bakers. Some of them are teachers of their craft. These people are doing so well, in this bad economy, that it would make you jealous. I have friends in Australia, New Zealand, England, Canada and here in the states that all have successful businesses. The food industry seems to be resilient. And the cost for wedding cakes is high! I don’t know

        • mikeymike61

          dumas, there are CEO’s not living in New York.
          Geeze what a moron


      you win “total shmuck liberal” of the year

    • davidmpark

      You do know that you’re calling for nationwide theft on a Christian prepper website, allowed to stay on here at the generosity of our host, right?

      • 2Gary2

        it is not theft to take back that which belongs to you. The rich and corporations have been stealing our productivity gains for the last 30-40 years. It is not their money but our money. Time for payback.

        You will notice how much income inequality is being talked about everywhere. I predict another new deal where the wealth will be taken from some and given back to its rightful owners.

        If all you want is a big right wing love fest then Michale can delete my posts. as I see things I am doing this site a big favor by pointing out how wrong and misguided conservatism is and illustrating the moral bankruptcy of the conservative mindset on the regular basis that I do.

        • davidmpark

          It doesn’t belong to you. That’s why it’s theft. You can make any claim you want, sunshine – but that’s what’s getting you and your lot into trouble now. It doesn’t matter how much a few people talk of “income inequality” (i.e.: too lazy to work for it). And if you think that payback is coming for not paying the ransoms… oh baby, you’re gonna love this.

          The Right is moving against the Left in Utah finally. Federal Judges appointed by your prophet Obama have just bastardized our State Constitution, twice. Obama’s thugs just kicked the hornet’s nest: there is talks of impeachment, and also of charges ranging from judicial activism all the way to outright insurrection (no; that’s not a good thing). Jim Matheson (D, UT) has just announced he will not run due to the backlash against Obamacare; now he’s looking at fleeing the state after these rulings!

          Payback is here. The free people of Utah are pissed off at your lot and they want justice! Some are now constantly recording Leftist actions and language – looking to press charges and sue the Left into bankruptcy!

          And, about the last part – yes, you are here at Mike’s good graces. He owns this site. As owner, can kick you off at his pleasure. That’s something your lot hasn’t seemed to grasp that the vast majority of your gains have been because we decided to be magnanimous and merciful. You guys wouldn’t stand a prayer if we stopped providing you your victories. And you opinions are unpopular and ill reasoned – or how would you account for all the negative votes.

          Have a good night. 🙂

          • 2Gary2

            your beloved red states get way more welfare from the gov then any blue state. Also your conservative Utah just approved gay marriage so it hardly looks like you are winning anything. You can shill for the 1% all you want. You will loose. Just like you conservatives and your mouthpiece fox news predicted a mittens win and Obama creamed him. Go back to your bubble of unreality. you are loosing.

            The rich will be taxed and the wealth spread-get used to it.

            PS-do you have sister wives? You said Utah. Do you also believe in the planet kolath and other Mormon craziness?

          • davidmpark

            That ruling was illegal. A Federal judge has no jurisdiction over the State of Utah’s Constitution. It will be overturned, or Obama and the rest of them will face treason. The Feds can’t mess with State Constitutions; no way no how.

            And those that try to steal will get what they deserve. The wealthy already moved their wealth outside the US. You can’t get it, Gary. Even if your party of bandits does manage to take money, they sure won’t give it to a low-ranking fanboy like you! 🙂 Get over it.

            And for the sister-wives; your gonzo fantasies are not anything I want to look at, you naughty little man, you!

          • 2Gary2

            I highly doubt any federal judge gives a rip about some Utah Constitution. My understanding is that fed trumps state. I bet a lot of gay Mormons are getting married. Hey will gays be allowed multiple partners? there will be 4-5- men all married in your Utah. ha ha ha

            Only in your fox news fantasy will Obama ever face treason–face it your country is changing–you can come along for the ride or stand and watch from the sidelines–either way you and your conservative dolts are loosing.

            Gay marriage is the law of the land in conservative Utah. ha ha ha–here come Adam and Steve…and Jim and Jeff etc etc ha ha ha gay polygamy. In Red Utah. Hows them family values things workin out for you?

      • 2Gary2

        ps-you are a typical conservative–how do I know? you defend the 1%.

        • davidmpark

          I am not a conservative no more than you. Neither am I of your side. I have no side. I’m here for my own reasons. And I give about as much of a #$%& about the 1% as your side does about the dead millions that have been aborted.

          You can claim what you will; I really know what you are. 🙂

          • 2Gary2

            the whole abortion ship has sailed-get over it.

          • davidmpark

            Oh no it hasn’t. And I will not get over it. That abortion ship will be sunk – get over it.

          • 2Gary2

            well us liberals will keep using the abortion issue to point out the conservative war on women. This is very effective at getting liberals to win elections. So please keep on with the abortion thing and us liberals will keep pointing out the war on women waged by conservatives and keep winning elections until conservatism is nothing but a bad memory. You go Hoss 🙂

        • 2guest2

          Sorry numb-nutz…we on this blog aren’t the 1%

          • 2Gary2

            you obviously can not read. I said you defend the 1%, not that you are the 1%. With folks like you its no wonder this country is so messed up. defending the 1% when you are not the 1% takes a special kind of stupid. Did you also ride the short bus too school?

  • djc

    This is all going to end very, very badly and no one will be immune to the effects of the collapsing economy. No one.

    • GSOB

      “The legacy of Democrats and Republicans approaches: Libertarianism by bankruptcy.”

      – Nick Nuessle

  • duncan

    gary = politics of envy.


      gary=politics of stupidity

    • Robert (qslv)

      Gary is a one trick pony. He says “Tax the rich.” The rich are the tax collectors. Why would they tax themselves? Gary is the lap dog of the rich tax collectors, hoping some crumbs will fall from the table. Gary needs to grow up.

      • SpunkyBunks

        Gary needs to wake up. Taxing the rich won’t make a difference. They will collect that money right back since they are the primary beneficiaries of GOVERNMENT SPENDING: defense contractors, welfare spending (WalMart, Section 8 voucher redemptions, etc.), mortgage/student loan financing, insurance companies (Obamacare, Medicare/Medicaid/Veterans), etc. etc.

        The rich are laughing at Gary all the way to the bank. They own all the stocks in the companies that receive government monies.

    • Mondobeyondo

      Gary = just being Gary.

  • R.A. Brown

    I thought they dropped from $85B month to $75B?

    • Bill

      Think you’re right.

    • Jimbo

      Michaels reference is to $40 billion in treasuries (QE is split between bonds and mortgage backed securities). The bond buying has only been tapered by $5 billion a month.

      • R.A. Brown

        Thanks, Jimbo, I didn’t know that.

  • Nicnak

    even the bitcoin is at 400$ instead of 1000$.
    what does it mean to you?

  • Jimbo

    I didn’t think they would do it, but what they have done isn’t much and the statement wording is very much open ended (they could go back up if conditions change).

    • GSOB

      “It’s tough to make predictions, especially about the future.”

      – Baseball
      legend Yogi Berra

      • Jimbo

        If Tin Whistles are made of Tin, what do they make Fog Horns out of?

        Lonni Donegan

        • GSOB


  • Dave

    Investors really don’t want to sell their positions this close to Xmas is why equities rallied and Bennie & the Ink Jets knew that would be the case. They aren’t stupid, they just work for their own. It’s nearing the year end and investors typically stock up anyway…ever heard of the Santa Rally? Selling off positions now would mean serious reshuffling of holdings and for them that’s fair sized task to take on now and would mean having to stick around in volatility (which will come next month full blast) during the Xmas break…like our illustrious lawmakers, they just want to get out of town..or in this case, the Hamptons with Champagne Cocktails or Napoleon Brandies. January, when they really get back to business…well, all bets will be off, and if the NFP Print doesn’t quite measure up (flip a coin as to how they put this one together) then the SWHTF.

  • Bill

    It’s the same ole same ole but Michael has done a great job summarizing. Things to watch into the new year:
    1. Does the stock market gain reality and head south?
    2. Does the 10 yr head north?
    3. Does Congress again make a mockery out of the deficit and the debt ceiling?
    4. Will potus be impeached?

  • Chris

    I don’t believe we are going to have a “bond crisis” because the Fed will protect short term interest rates at any cost (They are not concerned with the 30 year rate). But I believe we are going to have a “currency crisis.” Until that time comes, the market will be making new highs.

    • Gay Veteran

      “…They are not concerned with the 30 year rate….”

      but the real estate market is

  • Sack man

    Michael. You keep scaring people not to be in stocks. You cost them plenty. Up 10000 points in 5 years. You. Celente. And the others are wrong. Dow baby. Nasdaq!

    • Mondobeyondo

      You must be rich or something. Be careful. You may be about to lose your shirt – and your dress shoes, and your Gucci watch.

      (what am I saying? nobody wears watches these days)

    • El Pollo de Oro

      Don’t forget that the Bushbots laughed at Gerald Celente, Peter Schiff and Alex Jones when they were predicting a major economic crisis back in 2006 and 2007. The Bushbots were laughing at Celente’s “gloom and doom talk” right into August 2008. Then came the mega-crash of Sept. 2008. Oops! Turns out Celente, Jones and Schiff knew what they were talking about.

      • Malcolm Reynolds

        The Tea Party was borne of Bush.

    • MichaelfromTheEconomicCollapse

      So you believe that it is going to keep going up beyond where it is now?


  • Sandbagger


    YouTube that phrase and look for Lindsey Williams’ account of what is coming within the next three months. The Fed tapering is just a segue to the “really big shew”!

    • MrsBulldoggy .

      Thanks for the info Sandbagger, I am going to check him out on YouTube. Knowledge is power…

      • Sandbagger

        You’re welcome. He can be long-winded, so beware. 😉

        • Annette Smith

          He is too long winded to listen to. Can you post what you think he said will happen in the next three months. I don’t follow the guy.

  • K

    What you saw today was a last attempt to sucker people into the market. A certain percentage on the sidelines, are going to jump in with both feet. Why? Because if the market goes way up, in the face of a taper, no telling how high it will go. You will start to hear TV cheerleaders, talking about a two thousand market. Riches for everyone. You know the last time I saw this? Just before the housing crash. All the cheerleaders, saying real estate could only go up. Well folks, there is nothing that can only go up.

    • davidmpark

      You’re right, K. Without real products backing the stock market there’s too much volatility.

      • Mondobeyondo

        Which begs the question, “What is backing the stock market?” Gold? Nope. (Thanks, President Nixon!)

        It keeps going up. Why? Oh, but not for much longer. Just delaying the inevitable crash.

        “You cannot change the laws of physics!” – Scotty from the original “Star Trek” series

        • Mondobeyondo

          Blast from the past:
          “A crash is coming, and it will be terrific”

          – Economist Roger Babson, summer of 1929

          No one listened to him.

          • K

            Mondo they never do listen, for the most part, now or then. Mankind is capable of self deception, at a truly remarkable level.

          • tf

            The only thing we learn from history is that we don’t learn from history.

          • I don’t think it’s enough of a taper to do anything except make the dollar a little stronger, and attrack more foreign investment into the stock market.

            I could be wrong, but I see gold going down farther and they have squashed the price of gold before.

            If they can get it down to $500 an ounce, I’ll be all in. I’ll give it until March. If gold is still over $500, I’ll get more silver.

            We won’t have a crash until the false flag and no one knows when they may do that.

            Markets are still way up right now, but i don’t know if it’s foreign investment or direct Fed intervention. Either way, they’ll say the taper is working.

          • Selaretus

            You better be buying physical gold and the toilet paper futures junk.

          • MichaelfromTheEconomicCollapse

            Great quote. I had never heard that one before.


          • Mondobeyondo

            Yep. Makes you pay better attention to what Gerald Celente and others like him say.

          • Annette Smith

            Mondo, have you listened to the man lately? He can’t do a pod cast without swearing at people and using profanity. He looses his cool so quickly. I think that Gerald Celente is going to crash, in a major way, long before the market does! I think the stress is getting to him, poor guy!

          • laura m.

            Annette, etc: I hope Target crashes big time. Many people will have their holidays ruined by this loser company. I encourage everyone to not shop there and if you do, pay in cash! (ditto TJMaxx and Michaels, etc) Hope Target gets sued big time. My card was cancelled for peace of mind. A company that size should have 21st century security not 1980’s tech.

          • nestazhe265

            aunt recently purchased a great Mercedes-Benz B-Class Electric Drive Hatchback
            only from working part-time off a macbook… Continue Reading B­i­g­2­9­.­ℂ­o­m

        • davidmpark

          Yep! Nothing is backing the market – you’re right.

          To expand on Scotty’s wisdom; what is the first law of physics? Answer: nothing is destroyed – it’s transformed.

    • bertinanth764

      My Uncle Jacob got an
      awesome green Chevrolet Colorado Crew Cab just by working from a macbook…
      great post to read B­i­g­2­9­.­ℂ­o­m

      • GSOB


    • Hillbilly

      What goes up must come down

    • Mondobeyondo

      Helium is lighter than air so in theory, it can go up. And if you inhale some at a house party, you’ll start talking like Mickey Mouse.

    • Au Contraire

      Yep, Enron comes to mind. Just before its meltdown, I recall numerous financial talking heads on TV encouraging everyone to invest in Enron, even though the writing was on the wall for all to see. Most people follow the herd, and they will stick with the lemmings right over the cliff. It sure is getting lonely bucking the crowd…

  • Rene Girrard

    Michael I want to thank you for all your efforts on this website. I hope you and your family have a blessed and joyful Christmas season, and I wish you all the best for 2014. May you draw closer in your relationship with the Lord Jesus Christ and wait upon Him to hear what the Holy Spirit is saying to you. The Bible does say He will lead us into all truth. God bless, Craig in Ft. Worth, TX.

    • MichaelfromTheEconomicCollapse

      Thank you for those kind words, and I want to wish everyone a very blessed 2014. 🙂


  • Naples Florida

    Great, wonderful. So when can I get 6% on a ten year bond?

    • Gene Baugh BBA

      Don’t hold your breath. They could stay at $75B for who knows how long.

  • ArigatouGozaimas

    First of all, I am sick of hearing about FED policy. There is no policy, It is rule by the whims of the oligarchs. It is fickle rule by changeable mandate.

    This today, this is theater, The FED wants headlines to scream taper and responsibility when it is really it is doing a symbolic bow to tapering while winking at the banks. The FED is trying to appease two masters, the wealthy elites and the global community, but is more concerned with the oligarchy than the world at the moment. This move is only for the headlines, The FED can pretend it is doing the responsible thing.

    If I was the FED the thinking would be like this. I spend 100 dollars over what I earn one week. Then I spend 95 dollars over what I make the next and congratulate myself for being so responsible as to cut 5 dollars from my budget.. Of course, next week I can arbitrarily decide to spend 150 dollars over my salary because well, my standard of living needs merits it.

    Only Mr. FED does so by printing more money than what is necessary for the economy, and does this on an exponentially larger scale.

    Reality is the FED can’t taper in any meaningful way, They do, the debt based system collapses. What they can do is drag the current calm out for an unknown period of time with a combination of funny money, free money for big banks, media manipulation, market manipulation, and circus accounting. Why plan for the future when only the present matters? Live for today, let our children pay for tomorrow.

    I don’t think anything as changed. The situation is still the same as it was yesterday. The markets went up because they know the gravy train will not soon end. If they FED wants they can change their mind and double the stimulus tomorrow,

    Real cuts won’t happen though. The market would crash and the wealthy would lose out on the last few pennies they can suck dry from the people.

    P.S. Who knows what the FED is doing off the books, this is not a trustworthy group.

    • blackciti_fo5

      Wow that was good and informative.

  • Mondobeyondo

    We, as a whole, are too busy “twerking” to Miley Cyrus’ latest hit song, to realize what is happening to us and our country.

    Nothing the Fed does, or the President, or anyone else, will bring back the so called prosperity we have enjoyed. It was false prosperity to begin with.

    • GSOB

      I wish I could live it all again.

    • Paul Patriot

      Right you are. Too much of America is too “distracted” by entertainment to be mindfull of The shredding of our economy and our freedoms. The time to rise up has already passed, I fear it is too late. There is just too much empathy in this society

      • ben


      • Annette Smith

        They are self-centered, lovers of themselves, greedy, without normal affection for their families or others around them. They are boastful, proud and arrogant. Empathy? I don’t see that.

    • Songchannels

      You’re so delusional. There are several millions of people in the U.S. and therefore if just 5% of them like Cyrus it’s news. You believe the illusions, there are a tremendous number of people who never heard her sing and don’t care too including myself.

      • Mondobeyondo

        So who’s downloading all those Miley Cyrus songs? Equally delusional people. Enough of them to make the MSM notice. It goes viral from then on.

    • seth datta

      People KNOW. Or at least enough do. The mainstream media is trying to deceive the masses, but the young kids KNOW. They are not stupid.

      We have all been lied to for years and people know that something bad is coming soon. The satanic machinations of the international banking cabal to turn us into debt-slaves/glorified duracell batteries has long been foreseen, as in ‘Revelations’. We all know it will happen, we just do not know precisely when.

      May the Lord be with you all.

      • Annette Smith

        Obama got elected on the backs of the young. They mobilized for their new “savior”. Now they are paying for their piper in Obamacare. What a terribly rude awakening the youngsters are having…if they are paying attention.

    • GSOB

      “The state calls its own violence law, but that of the individual crime.”

      –Max Stirner

    • Annette Smith

      Very true…it was a false prosperity.

  • Mondobeyondo

    I went to a local Sears store three months ago, just to take a look around. The salespeople were on me like bees on honey. “Can I help you?” “What are you looking for?” “Have you found what you wanted?”

    Sounds almost like desperation on the part of the staff. It’s sad to see a (formerly dominant) institution like Sears go down the tubes. Ditto for J.C. Penney.

    • Horsenut

      I’m not sure if it’s still the same, but I worked at Sears a long time ago, They worked us at minimum wage +3% commission. Hard to make a living at that! Would explain why they hit everyone walking through the door.

      • Annette Smith

        Horsenut, when I worked there, they had us hawking the credit cards. They make more money off the interest on the cards than they did in sales. We had to have so many people sign up for them, or we were dinged for failing to do our job. I couldn’t believe it. I cut up the Sears card.

    • zash

      Very true! i had been basically jobless for a couple of years but i made ma way up a little via hardships n abstinence from pleasures and desires..but now that i am back on track..and earned some basic comforts finally..and when i goto shopping or anything..i see desperation all around
      ..people are so weak n desperate..everybody has something to one is there to buy..the buyers are not enough..i see the new gen children settin shops n businesses in hope for a future (that doesnt exists!) makes me very sad..hard times are comin for all of us..i pray for humanity..n ask people to please stay calm n have hope n work together with love..just give up the unnecessary hard for basic comforts for u and your family/loved ones..n most important of all..keep tryin hard..i thank both archangel michael (who saved me by distroying my old corrupt self) and our very own friendly economic collapse reporter michael schnider to point out the darkness in our scoeity n economy( a reflection of our dark n corrupt hearts)..BUT no matter how dark it is..therez still light at the end..take care..

    • MichaelfromTheEconomicCollapse

      It is true. Going into Sears or JC Penney these days is just so depressing.


  • GSOB

    You know a country is corrupt & broke… when it starts cutting the benefits of it’s own retired warriors.

    • Georgiaboy61

      Paid retirement and healthcare for life were just a couple more of the promises made by the ruling class that they have no plans to honor. After all, by fighting in their elective wars – they have already gotten from warriors what they wanted, namely their blood, toil, tears and sweat.

      Do you see my point? They get the military service – and cannon fodder to fight their wars – up front, but don’t have to pay the promised benefits until later, if at all. Or maybe they pay that pension in dollars that are almost worthless.

      Just another Ponzi scheme from our overlords in Washington, D.C. Sad but true.

    • Mondobeyondo

      Look at how we treat our war veterans.
      A great many of them are homeless, to say the least. Many more of them are broken in body and spirit. Fine way to treat those who served this nation with valor.

      • david f miller

        The vets should join the fight against NWO and the Obama puppet.

        But hey, they won’t.

        Guess why?

        As US soldiers, they actually fought FOR the NWO by bombing Iraq, Libia etc. and by applauding Bush.

        I still hope that they will awaken some day.

        • GSOB

          What really is your purpose or aim in saying that? d f miller….
          You want to bring them misery?

          Our military men and women, they all serve voluntarily and for many, many different reasons. Very few have information like those at at top of the chain. Neither do the masses.

          You probably never served and because the POTUS is leftist, non veteran like yourself……
          you both dishonor our warriors,…. they all took and oath to protect and defend this country and it’s allies against all enemies, foreign and domestic very seriously.

          You should show more respect for them.

          • Gay Veteran

            It was clear before the start of the Iraq war that we would be engaged in a war of aggression. Fight for the empire, suffer the consequences.

          • Annette Smith

            Ya’ remember that the first Iraq war ended with Bush senior telling them to leave Sadam Hussein alone. The military wanted to take him out. That was wrong. They should be allowed to run their wars without political interference, right? I remember Sadam made a threat on Bush senior’s life. I always felt that Bush junior would go after Sadam because of that threat to his daddy. Wonder if I am off on that?

          • Gay Veteran

            NO, we need to follow George Washington:
            NO foreign entanglements

        • Mondobeyondo

          I think the vets know by now. It’s the general public that doesn’t know. They still buy into that “fighting for freedom” line. Gotta fight the terrorists there or else we will fight them here. Meanwhile, the real “terrorists” are doing their work inside the Beltway in Washington D.C.

          Start at 1600 Pennsylvania Avenue and work your way down. The Justice Department. Congress. The Federal Reserve. And on and on.

    • tom

      I am absolutely disgusted with both houses of Congress! Did anyone who supported this budget “deal” actually read the bill? Obviously the cuts to military pension benefits was in the bill! Even better, did anyone pay attention to Senator Sessions from Alabama who pointed out the almost $7 billion tax credit loophole for illegal immigrants. If the loophole was closed, then the veterans and their families would not be affected! I live in NY, so I already knew where my senators would stand…against the vets and for illegals

      • GSOB

        “Tyranny is always better organized than freedom.”

        – Charles Peguy

    • William Wallace

      Warriors or suicide fighters? How much do their families get paid after they kill themselves? 400k?

      • Ghost11111111

        According to who? Cnn’s dishonest investigative reporting? Its the cia killing Muslims while wearing a muslim costume.

    • William Wallace

      Does gut shooting a baby ayrab with a drone now make you a warrior?

  • Paul M

    The Federal Reserve is a disgrace and should be destroyed.

  • G

    I predict that the Bankers won’t take the fall this time around,but the Israel Palestine conflict,China Japan conflict,North and South Korea conflict,and the Iran nuclear conflict will cover the bankers this time around,the chess pieces are in place

  • ob

    The average boomer has something like $40,000 USD saved for retirement. It doesn’t take a genius to do the math and see that they will (and must) be selling their homes in order to retire. In fact, this is the exact *plan* for a majority of boomers. The tsunami of real estate coming to the market is going to be absolutely epic.

    The downward pressure exerted on housing prices from the taper is just one small part of the coming bloodbath in real estate.

    The true collapse in values will come when a nation of retirees needs cash to eat, pay bills and stay warm. They will absolutely sell. Second homes will go first. But the tsunami is coming, one way or another.

    • Gay Veteran

      Boomers will also be selling stocks and bonds.

    • SpunkyBunks

      The banks will buy those houses with cash and rent them back to the boomers. That’s what’s happening in my neighborhood. You gotta live somewhere. The banks will get their money out of us slaves as mortgage payments, rent payments, and Section 8 vouchers.

    • Annette Smith

      You are right on this. My brother passed away last January 2013. His wife cannot keep the house. Even with her son helping. It’s a common thing. Most couples have used both their incomes to gain their lifestyle. If one of them should leave via death or divorce, the house is always sold. Now, here is a bad thing for them. No one will be around to buy their house. I believe that Michael ran a story on that some time back. With the large population of baby boomers, there is a lack of matching younger people to replace them. There are fewer people in the generations that followed them. There is less need for a house among the younger people. Besides the large amount of homes that will be on the market, which would reduce their prices, there are less buyers. The baby boomers are screwed!

  • Mondobeyondo

    It’s all going to fall apart soon? How soon? I can’t say. Not because there is a government edict preventing me – but because I honestly don’t know.

    How many of you predicted on September 10, 2001 what would happen the next day? Me neither.

    But if you see what’s happening, you know there isn’t much time left.

  • david f miller

    Do you STILL believe that we will see a stock market crash?

    Yesterday proved you wrong!

    And what about the talk that the economy is getting worse?

    Unemployment is down, down, down. No problem here. Just read the newspapers.

    Has the Dollar crashed? No. Has the Euro crashed? No.

    But Gold has!!!

    • Jimbo

      One swallow does not a summer make.

    • Jimbo

      Do you not think that all the banks which make up the Fed cartel, would not buy a few shares on the low volume trading days in the run up to Christmas to pump the markets a bit and send out the signal to Mom and Pop investors that everything is OK?
      Do you not think that a few million sold ounces of paper gold would be sold to reinforce the same message?
      The Fed cartel are not stupid. They have timed their game to the second.

      • Annette Smith

        Me thinks you are right. They do have it timed.

    • GSOB

      “The moral and constitutional obligations of our representatives in Washington are to protect our liberty, not coddle the world, precipitating no-win wars, while bringing bankruptcy and economic turmoil to our people.”

      – Congressman Ron Paul

    • Gay Veteran

      keep on believing the propaganda pushed by the corporate media

    • Gay Veteran

      U3 unemployment is down because the government does not count people who have dropped out of the labor force due to lack of jobs.
      Check out U6

  • jonno

    Do you want to live without fear and anxiety? Just accept we are not entitled to anything just because we live in modern Western countries. Most of you live in the USA, I live in Australia, (thank goodness) but most of us believe we are entitled to a life free of worry and poverty. Well, we are not. An accident of birth gives us no right to a better life than someone living in an African or Asian country struggling to feed their families. Just accept how lucky you are and move forward every day. There is no wonderful future waiting for us, we’ve bled the earth dry for too long, but we can at least live each day to the fullest and have a bit of fun. I highly recommend the following: Heineken beer, bodysurfing, hard work, healthy food, the sun, family and laughter. Avoid: ex-wives, all grains, all processed food, refined sugars, loud angry people, lawyers, envy and greed.

    • Jimbo

      I live in Australia and I woke up to the world on a visit to India in 1979 when I witnessed the abject poverty that was the daily normal for the majority of Indians.
      What will come for us in the west in the near future, is only what 90% of the worlds population experience every day of their lives.

      • Scared Economist

        More than half the world’s population sleep on a mat on the ground.
        More than half the world’s population has never spoken on a telephone.

        • Mondobeyondo

          Hard to believe, after walking down the street in America and seeing 90 percent of the people on some electronic device. But I do believe you.

      • laura m.

        Jonno & Jimbo: People need to control their breeding. I wonder if these third world hell hole citizens know where babies come from.

  • chilller

    The stock market is being jacked up and gold jacked down. That’s because the powerz know what’s coming and are pumping and dumping so when it all comes crashing down, it won’t fall as far or go up as much. Had they not interfered with stocks and gold, stocks would be 5000 and gold 3000. With a crash, stocks and gold will be lucky to hit even these levels.

    • GSOB

      That’s right!

      “When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.”

      – Dresden James

  • chris

    I think you have summed up Wednesday afternoon quite well. There was an initial very sharp sell off quickly followed by a very sharp rise. It was the ‘flash crash’ all over again, but on a smaller scale. ‘Someone’ was monitoring the markets and saw them tank after the announcement and hit the panic button and got their stooges to massively chip in and prop it up. No other explanation seems reasonable. Question is what happens when reality sets in?

  • Mondobeyondo

    What “they” really want from “us” can be summed up by the Ramones.

    “Hey ho, let’s go!
    Shoot’em in the back now
    What they want, I don’t know
    They’re all revved up and ready to go”

    – “Blitzkrieg Bop”

    • El Pollo de Oro

      “Slugs and snails are
      after me
      DDT keeps me happy
      Now I guess I’ll have to tell ’em
      That I
      got no cerebellum
      Gonna get my Ph.D.
      I’m a teenage lobotomy

      “Teenage lobotomy”–The Ramones

  • david f miller

    The taper is on!

    Stocks (DOW, S&P500) go up,

    Gold and Silver goes down!

    This shows clearly that the economy is in good shape and that we are going to see a brighter future.

    Or how would YOU interpret falling Gold and Silver prices?

    • GSOB

      A SHAM…. A lie!

      era of big government is over.”

      – Bill Clinton, State of the Union
      Address, January 23, 1996

    • Gay Veteran

      the markets are rigged, remember the LIBOR scandal? And the LIBOR market is huge compared to the gold and silver markets

    • davidmpark

      India has banned gold and silver imports. They were major purchasers for weddings and such: have bejeweled and gold plated brides for centuries. But, for some reason a few months ago they decided no more. Instituting capital controls, too. Something about stabilizing the rupee.

    • Duckhead

      Easy stimulus money is flowing to the stock market now, so it goes up. Very little US money is attracted to gold and silver, so they are falling. Plus, the paper shorts drive down the price of the metals. When the stock market crashes, so will gold and silver crash for a short time. There are always those who invest on margin and they will have to sell whatever they own when the sky is falling. This brief time will be a great time to buy gold and silver if you have cash. When there is panic and no place left to go, then big money will flow to gold and silver and you will want to own some at that time.

  • DJohn1

    The problem as I see it is the stock market supports all the pensions out there. If it goes then a third of the United States will go with it. I could be off on those numbers because I have not actually researched just how many people are living on pensions right now and social security payments. Someone out there enlighten us with actual numbers.
    There are actually two economies. One economy is based on wages. The other economy is based on the average old person on social security and pensions. More and more children are coming home in their 30s and 40s because the wage market has tanked and they are unemployed with nothing left. So they go on welfare which takes time. They have all ready lost their house or about to. So Mom and Dad are the only place left to go.
    Mom and Dad might even be comfortably well off. Or so they think . . .
    Obama has stopped the increases in Social Security. Pensions have not supported increased period in the lsat few years.
    The raise in the current year coming amounts to less than 6 dollars a week. Whoppee lets go out and celebrate the government generous increase in pensions . . .
    Over the last 6 years, they have trashed the American on pensions.
    Retailers have felt it. Retail is all about discretionary income of the middle and lower classes. Without that discretionary income people do not buy as much and what they do buy is usually on credit.
    People are going into credit debt just to survive! Michael has provided several articles on the increase in credit debt over the last few years.
    The stock market is not in touch with the reality of the market place. That is soon to be addressed and the market will plunge when it does.
    Your big retailers will feel it first.
    What happens when there is a currency devaluation? Every product coming from abroad will go up in direct proportion to the devaluation. That imported product you pay $1 for will now go for $5 or even more. Seen it happen once before. Bubble Bath went from 3 to 5 overnight for anything produced out of country.
    We are at war. That means there are rules that are being ignored about how much a product can go up in any one period of time.
    There are a lot of rules administered by government being ignored right now. The entire ObamaCare is not going by the rules laid down by the Congress in the Health Care Act as reported by Newsweek. It is going through the court system as we speak.
    It is against the law to fix prices. It is being done every day by retailers and gasoline stations all over this country. No one enforces existing laws.
    For instance, your local gas station increases prices one day by 40 cents a gallon. All over town every station does the same thing. That is a direct violation of Sherman Anti-trust. In another day and another time, that would have brought down a 10,000 dollar fine per station in my state. Not today. It is ignored.
    You can go look at products for Christmas all over the place and find the same price everywhere for the same product. No competition allowed . . .
    The same applies to things like Ink Cartridges for your printer. There is massive price fixing going on all over this country. No one enforces the existing laws. That is the trick. Ignore any law you don’t like or change the rules to suit yourselves.
    COLA was originally meant to keep Social Security current with inflation. It has been manipulated so no one gets a fair deal any more.
    What does that have to do with the stock market? If average people have no money to spend then there is no stock market based on retail companies selling goods.
    In 1923-24, no one suspected the crash of 1929. Yet the signs were everywhere and everyone joyfully ignored them and threw cash at the stocks. Well reality set in eventually and the result was one of the worst depressions in history, compounded by a socialist government of the 30s that kept things depressed until we went to war in the 40s.
    That depression should have been allowed to happen full force until the market settled things.
    Then it might have lasted 2 or 3 years at most.
    Everyone just about lost their shirts in 1929. Not everyone, but most everyone. The same thing is likely to happen this time around.

    • GSOB

      Thanks DJohn1

      May I suggest, to improve my reading of your stuff …….write in a way that mimics you talking to us?


    QE is here to stay. Obama Care is going to suck huge amounts of money out of the Middle Class AND the Democrats are feeling the heat with the election just around the corner. A faltering stock market and housing market is not a recipe for electoral success. Ergo, there will more money print though it will be done on the QT.

    • Annette Smith

      Hey, XSandiegoca…so am I. When did you leave? I left in 1999!


        Haven’t left yet. Retire in 18 months than onto Idaho or Wyoming. Where did you end up?

  • Bubba Johnson

    Interest rates never should have been so low. The people like Bernanke, Greenspan, should be imprisoned for high treason.

    • david f miller

      C’mon, Bernanke actually saved the economy.

      Or why are Gold and Silver falling, i.e. the Dollar becoming worth more?

      • Drud

        The Fed did pull of an almost miraculous trick: they stopped a falling house of cards. But they did not fix any of the problems. they are only worse. So while it is true that “Bernanke actually saved the economy” for the short term, in the long term it will only make the crash much worse. Do you remember Enron? For a while they looked like the best company in the world, then… Cooking the books, or printing money, or using heroin, always is a good thing for a little while.

        • Annette Smith

          Good points, Drud!

      • Jimbo

        Are you insane? A taper has been announced that amounts to a smoker cutting down from 20 a day to 17 but stating they will smoke for longer.

        • Annette Smith

          Jimbo, I wanted to share something about the general population. It’s their intelligence level. The average is 100. I think it takes more than that I.Q. to make it in life. Most people don’t understand finances. Nor, do they understand what is happening. It is easier to believe MSM or a conspiracy theory, than to think of their own. I know that America is also very medicated. When people can’t get their meds, a lot of hell will break loose. I have thought about what is going on, and I believe that they are just sucking all the money out of the system that they can. Due to their greed for more, theye have to ride it out to get every good tasting last drop of money or assets. They are predators. Simple people are the prey. All politicians are responsible in some way for where we are today. No one is without blame. I guess we are going down. No, I don’t have to guess. I know we are. I never thought that I would see this. But, I never understood bubbles or finances. I really think that our education system has played into this overall mess. I don’t see any part of this culture that can be exempt from blame. Shame, isn’t it?

      • GSOB

        “We are living in a sick society filled with people who would not directly steal from their neighbor but who are willing to demand that the
        government do it for them.”

        – William L. Comer

      • Gay Veteran

        let’s see, more dollars printed (thus an increase in supply) and yet no big change in demand. why isn’t the market working?

      • Gay Veteran

        Bernake saved the Big Banks, but not Main Street

  • Seen2013

    “So what is all of this going to mean for average Americans?”

    It means even if the minimum wage is increased or even a governmental granted income is created; inflation and the cost of living will crush the average American.

    The confidence and faith in the US Dollar is being encouraged to be destroyed because this enables the Bismarkianists to offer a currency alternative with more supranational institutional control making the central bank more officially a clerk of supranationalist dictates.
    I fully expect that the Rockefellers already have their buddies in the House of Saud ready to shift into another currency in exchange for oil.

  • Songchannels

    At the end of your articles you need to mention for people to repent and turn to Jesus for redemption of their sins.

    • nekksys

      And michael would get bashed by the Christian-hating left for doing so, too…

      Let’s just keep it an open forum for everyone to be able to discuss, shall we?

    • MichaelfromTheEconomicCollapse

      Have you been to this page yet?…

      It is near the top of every single page on this website.


  • tf

    First the junkie sold his camera. Then his computer. Then his car. Then his house. Then his children. Then his soul. Then he started stealing from everyone else. Sound familiar?

    • GSOB

      Yes it does. Reminds of this quote…

      “Depressions and mass unemployment are not caused by the free market but by government interference in the economy.”

      – Ludwig von Mises

  • tf

    The U.S.S. Titanic finally went down. But wait! Who was in the lifeboats? They were full of Politicians, Banksters, Wall Street and heavily laden with gold.

    Gee, I get the picture and I’m not even a left-winger!


    • Mondobeyondo

      Here’s what you need to do:
      1) Grab a bucket.
      2) Start bailing.

      • DiscouragedOne

        Which will be a complete and total waste of energy. If everybody on the Titanic grabbed a bucket and bailed…the outcome would still be the same.

        • Annette Smith

          Zing! Good one!

  • ItIsWell

    How high can ten year yields go before economy collapses under it? Can fed keep the rates from rising to a danger zone? AsiI type this its at 2.93

    • Jimbo

      That was one of the aims of QE. To keep the ten year yield down by creating demand. Trouble is that it hasn’t worked and the yield has crept up steadily over the last year. It will keep on rising even more now that $5 billion a month of demand is going to be removed.

      • Mondobeyondo

        They want to keep the 10 year yield down so that people will continue to purchase Treasures. Gotta keep the Ponzi scheme going.It won’t work.

  • SmallerGovNow

    Michael, I was in San Antonio this past Monday and went to a
    mall in a nice neighborhood. This was
    around noon on a Monday just a couple of weeks before Christmas. What I saw shocked me so bad that I started
    taking photos of all the empty store fronts!
    The entire first floor, if a store front was filled, was filled with a
    service industry (dentist, optometrist, college extension, and Veteran’s
    clinics). Not one retail store on the
    first floor. On the second floor the
    store fronts were about 60% occupied!
    But the whole place looked like a ghost town. The food court had three choices where there
    once were a dozen. I was literally
    shocked. If we could upload photos here I
    would gladly share them. Yes Sir you are
    right, the country is slowly disintegrating…

    • MichaelfromTheEconomicCollapse

      If you do find a way to get those photos uploaded I would love to see them.


      • Annette Smith

        Oh, Michael! I think we should all go out to our malls and take pics and send them to you. Someone posted a picture of the Beverly Hills mall. Did you see it? Empty! Empty? Yep! Shocking…people with money that live in the neighborhood were not to be found.

  • Ralfine

    You can choose to switch to a cash based economy, away from debts and funny money.

    If you pay cash your supplier benefits directly. By reducing his risks you could even get a discount. And the employees of your supplier are more likely to keep their jobs.

    • DiscouragedOne

      How can you do that if it is all funny money?

      • Ralfine

        How can you live if you have to die eventually anyway?

        Make a definition: money you earned by honest hard work is not funny money

        • DiscouragedOne

          Ok, makes sense to me.

          • Ralfine

            Yes, so spend it wisely.

            Not just because something is on sale.

  • James Vaughan

    I feel like the Joker in that second Batman film. “I don’t understand” he says, tongue in cheek! You yourself have informed us that QE1, 2, 3, whatever had, has, will have one and only one purpose: to reward the over-moneyed Bernie Madoff types on Wall Street and in corporate corner offices who are so stupid they can’t even figure out that without a middle class of customers to buy, all business is essentially dead. And so is your entire economy. And so is your entire country. And the Democrats look more and more like smiley-faced Nazis. And the Republicans look more and more like a combination of Wall Street corporate shills and Klan-style redneck bigots who call “Jesus!” while they serve Satan and whose morality is nothing but cheap prudery. And whom Rucka Rucka Ali so excellently satirizes.

    • Annette Smith

      Very weill put, James.

  • GSOB

    ‘A nation of sheep will beget a government of wolves.”

    – Edward R. Murrow

  • GSOB

    “The inherent vice of capitalism is the unequal sharing of the blessings.
    The inherent blessing of socialism is the equal sharing of misery.”

    – Winston Churchill

  • Jason7189

    I truly believe we’re in the last days, coveting riches and money, is causing the worst to come out of people. For me, wealth is not being indebted to anyone, but having enough to share with the less fortunate.

    Ezekiel 7:19 “They will throw their silver into the streets, and their gold will be treated as a thing unclean. Their silver and gold will not be able to deliver them in the day of the LORD’s wrath. It will not satisfy their hunger or fill their stomachs, for it has caused them to stumble into sin.”

    • GSOB

      The last of the last days.

    • Annette Smith

      Hey Jason! Thank you for this scripture! I didn’t know it was there. Ezekiel is a book I find difficult, right now. I’m working on it!

  • sonofseawolf

    Hi Michel and ec bloggers,
    Wiemerka will make marxist post amerika look like a boomtown.
    everyone who reads this blog knows that the easing cannot stop now. protect yourself at all times 14/5

  • FounderChurch

    We agree with everything Michael says. BUT, FC’s point is, and always has been, that where we should be putting our resources, effort, sweat and money is in CHEM GC. CHEM GC is a “FounderChurch” acronym that stands for Children, Health, Education, and Money, in order to serve for effectively our God and our Country.

    These six letters sum up everything we should be doing and everything we should not be doing, and does it is an ordered, and easy to remember, way.

    CHILDREN: Without numerous Children we are all walking dead men and women and despises by God and disrespected by mankind.

    HEALTH: Without good Health brought about by totally healthy living which includes proper food, proper water, proper exercise, and a proper spiritual life we are walking but crippled and can’t really produce and properly raise our children.

    EDUCATION: Without proper ongoing lifetime education we are led astray from righteous teaching into the jungle of Democrat Heathen lies and abominations.

    MONEY: Without proper acquisition, management, and utilization of Money, all else is futile. The Bible cautions that LOVE OF MONEY is the root of ALL evil, but that proper respect for money “Answereth to all things.” Being a Saver in all circumstances is a major key to handling money so money doesn’t handle us instead.

    GOD: Without a proper understanding of God we are blind, and deceived in all things. No God No Country. The Holy Books contain all we need to know about what we need to know.

    COUNTRY: Without a Country we are perpetually homeless. Our Country, no matter how humble, is our home, and all us sheep need a sheep cote to survive.

    Invest yourself totally in these 6 Things, CHEM GC, and you will be loved by God and admired and respected by all humankind. Test yourself and your family, friends and fellows and see how each of you score on each of these six virtues on a scale of 1 to 10.

  • Mondobeyondo

    Potential 2016 presidential ad:

    “Hello, my name is David Copperfield. You probably know me as a world famous magician. And that’s why I’m running for President of the United States. If anyone knows smoke and mirrors, it’s me. That is my primary qualification to be this nation’s leader.

    Some of my opponents will say that my skills are black magic. Don’t you believe it! Refuse to believe those racist allegations!

    Now, it’s true that you can’t fool all of the people all of the time, but I can make the Statue of Liberty disappear. Let me be clear – oh wait, that was the last guy’s slogan. Your freedoms WILL NOT disappear! And neither will our colossal national debt. Just that statue in New York. Heh heh. Anyway, I need your vote! Let’s keep America moving stationary!”

    (Paid for by the Committee to Elect David Copperfield. Do you believe in magic?)

    • DiscouragedOne

      ROFL, thanks for the laugh, sad but true.

  • anotherhuman

    … and lowly savers still won’t recoup a reasonable interest rate any time in the foreseeable decade.

  • david f miller

    Stocks are going up, up, up.

    Tapering worked better than anybody expected.

    Nothing to fear. Everything is OK.

    Where are the people that expected the stock market to crash? How do you explain the upward move in the stock market?

    You can’t.

    And all that BS regarding Gold and Silver: In a few months they will be virtually worthless. Nobody needs them.
    And if the interest rates rise, and they will, Gold and Silver should be avoided AT ALL COSTS!

    • Jimbo

      What taper? A bit less per month for a lot longer is not a reduction in QE. You are totally insane.

    • ItIsWell

      I am not pretending that I know much about economics but what your saying makes no sense whatsoever. Your comment leaves one huge question which can not be explained by simply saying everything is ok.
      If everything is ok than why are we still printing $75 billion a month that isn’t backed up by anything other than crooked politicians? When and If the taper ends and all is well then I will agree with you but as for now your way too premature.

    • garand555

      Are you daft? The taper has not yet begun. It starts next month, and whether a $10bn/mo taper is enough to kick the legs out from underneath the stock market is something that we’ll find out in the coming months. Unless they continue to taper on a month to month basis, and $75bn/month QE becomes $65bn/month QE, etc… Then they will hit a point where the stock market crashes, and they will very likely un-taper.

    • MichaelfromTheEconomicCollapse

      Let’s remember this comment in about six months.


      • Jimbo

        If the economy was truly strong, then QE could just be removed period. No taper, no promise of ZIRP forever. If a smoker cuts down from 20 a day to 17 a day, he is not a non smoker. He is still going to die of cancer.

      • GSOB

        6 months…
        Remind me…

        Sometimes memory is to much to carry.

    • DiscouragedOne

      Is this post serious? When I first read it I truly thought it was a joke, yeah, it is a joke.

    • Gay Veteran

      are you a paid shill?

  • nekksys

    True, on the big net…

    We need for folks to be drawn to us for our peace; not angrily running to us because they feel guilty…

    • GSOB

      It is the guilty that need peace,.. not us they seek.

      True repentance is a fruit of the Spirit.

      1 Thessalonians 1:1

      Paul, and Silvanus, and Timotheus, unto the church of the Thessalonians which is in God the Father and in the Lord Jesus Christ: Grace be unto you, and peace, from God our Father, and the Lord JesusChrist.

  • davidmpark

    Top Gear UK did the best episode on communist cars; they were so terrible! 🙂

    And I have great respect for Jeremy Clarkson; he punched Piers Morgan in the face.

  • garand555

    Michael, I sort of disagree with the yields on the 10 year. I am speculating, that if they really do go forward with the taper, and especially if they continue to reduce QE beyond just this one event, 10 year yields will decline in the short term. Once the taper gets to a point where it no longer supports stock market, I think there is a decent chance that many investors will flee to “safety.” Of course, this cannot go on forever, and eventually reality will come crashing back, but that is my take on the short term.

    And who knows what other manipulation schemes the Fed and the federal government have up their sleeves, but that is my take on it. Just think about what the effect would be if the government started rolling 401ks into US Treasuries in order to “protect” them from the turbulent markets.

  • Jimbo

    You have to stand back and look at the big picture. Forget the daily shifts in the 10 year or market ups and downs. The big picture is simple things like
    1. 50% of all of the oil ever extracted from the earth, has been used in the last 22 years.
    2. The majority of Western economies are net importers of goods and fund their economies with borrowing.
    3. Most western economies have seen their debt levels double in the last five years.
    4. We are all living under emergency economic measures (QE, ZIRP etc.) five years into a so called economic recovery.
    5. When the next cyclical recession hits there will be no conventional tools left for governments to use to reverse the recession (we are all out of bullets).

    We are in the end game and we have been for a few decades now.


      no end to oil, but keep trying to misinform

      • DiscouragedOne

        He didn’t say anything about an end to oil, did we read the same post?

      • Jimbo

        Exponential growth cannot happen without infinite resources. That applies to oil, food, water and stock prices. For stocks to keep rising, new money has to come in to buy the shares that others wish to sell. Do we have an infinite supply of greater fools?

      • Jimbo

        $30 a barrel in 2000, $111 a barrel today.

        • LMAO LMAO

          dollar destruction

          • garand555

            And a declining EROEI. We used to be able to drill and have oil come gushing out of the ground. Now we have to frack, build giant floating rigs, etc… Oil is getting more expensive to extract in very real terms, i.e. it takes more and more energy to extract a barrel of oil.

          • DiscouragedOne

            And if it costs more energy to extract the barrel of oil than the barrel of oil is worth, it should not be done.

          • Michał W. Solański

            Well, that would certainly raise the price of oil further, until it becomes profitable to extract again.

          • Annette Smith

            What you said is true. It did come rushing out of the ground, and now they have to frack.

      • ap

        It’s not the end of oil, but the end of
        cheap oil. Every barrel extracted from here to eternity will eventually cost everyone more and more. You can’t have 7 billion people trying to live a middle class lifestyle dependent on cheap oil. Resources are finite in a finite world. People are not. We were
        lucky to have lived in a time (1950-1970) when energy was truly cheap.
        The American lifestyle is based solely on cheap energy, which is over because oil is in everything you eat, wear, drive, consume, and of course your workplace.

    • garand555

      “5. When the next cyclical recession hits there will be no conventional
      tools left for governments to use to reverse the recession (we are all
      out of bullets).”

      Actually, there are a lot of dollars sitting in retirement accounts that they might try to go after to try to plug the gaps. Speaking of bullets, such a grab might result in some heading their way, but the pigs in DC and on Wall Street are certainly greedy and their hubris knows no bounds.

      • Jimbo

        I suppose once we have maxed out the currency we can borrow from the earnings of the next generation, we could steal the money earned and saved by the present generation. That is already happening with ZIRP so a pension grab is the next logical step.

        But what do they do after that?

        • garand555

          “But what do they do after that?”

          Avoid any crowds with torches and pitchforks?

        • DiscouragedOne

          They had best leave the country.

  • Mondobeyondo

    Jesus Christ is the only hope we have. We, as human beings, as a whole. It may sound somewhat trite, to say He died for us. But it’s true. Without Jesus, there would be NO hope. Ever. For any of us.

    All other roads lead to hell – literally. Please don’t discover that once you’re there. Because by that time, it’s too late

    • GSOB

      Your jammin me man, your jammin me…

  • Ryan caines

    All money is created out of thin air. Every last cent. Where else can it come from? Spending is all that matters, whether it’s the government or private sector, we must consume what we produce. If the fed turns off the taps, the private sector must fill the spending gap or it’s hello recession, more unemployment and deflationary collapse. We need tax cuts, and a temporary minimum wage rise to get the money flowing again.

  • Mudpie

    Groceries are out of sight!

    • Mondobeyondo

      Far out! Groovy!
      (just a bit facetious. giggle!!)

    • DiscouragedOne

      Yes they are, very expensive.

  • 2Gary2

    The wealthy have had the GOP to do their
    bidding for as long as I have been alive (1966). I have watched them
    try again and again to reverse the progress the middle class has made
    since the end of WWII. They have been working to dismantle FDR’s new
    deal since it began, and morons living in this country, who live a
    comfortable life thanks to FDR’s plan for the people want to cut the
    legacy from the lives of their children. Gradually, the benefits we
    enjoy have dwindled away. Both spouses work to stay afloat. Kids are
    denied a well rounded education, with standards that fall way behind
    countries like Finland, and Sweden. When they finish public school they
    are faced with burdening debt for their families and themselves with a
    job market of “good luck.”

    The wealthy have been very successful in robbing us of our prosperity.
    But that 60+ foot yacht is more than 10 years old, and by golly I need a
    new one! Greed and corruption has utterly ruined our government.

    • Rufus T Firefly

      FDR? That idiot prolonged the depression with his idiot policies to increase prices. He was stupid enough to have Pearl Harbor attacked by not taking intelligence seriously and his bigotry of Asians. He then threw 125,000 innocent Japanese-Americans into internment camps.
      America was prosperous and at peace under Eisenhower. But your ilk hated him…because hate is all you have.

      You might want to take your head out of the sand and look who is in the White House and in control of the Senate. Reality is a problem for you

      • 2Gary2

        well under Ike the rich were taxed at 91% so I can agree that Ike was good.

        • LMAO LMAO

          when obama returns from hawaii you can suck him off

      • Guest

        Actually I think his head is elsewhere.

    • DiscouragedOne

      You can thank the idiot liberals women’s lib movement for both spouses working….and I am an Independent, but I think they deserve a lot of the blame. Want some honesty? We could make do with less, and so could most Americans, and if they did, both spouses would not have to work.

      I think women should always be able to support themselves, but that does not mean they have to be working FT with young children, and the ones I know it is choice not necessity, do you really need 150 K instead of 75 K per year to live on? I know families like that.

      They don’t HAVE to live that way, they want to. I am not saying there are not families where both spouses work out of necessity, I am saying there are an awful lot where that is not the case, and often, if the lifestyle was scaled down, one paycheck could handle it.

      • 2Gary2

        we are in the 2013 not the 1950’s. However a lot of what you said it true to a certain extent.

        • DiscouragedOne

          It is better for young children to have a parent home rather than be shoved into daycare. It is not 1950’s to say that. Democrats have DESTROYED family units, and that is NOT a good thing.

          How? Their policies, their movements, all these things that were supposed to “help” have resulted in way too many single Moms raising families they can’t handle financially but often in every other way was well.

          I have always worked except when my child was very young, but I think women’s lib hurt more than it ever helped, for any good thing that happened as a result of it, many more bad things happened.

        • LMAO LMAO

          go back to russia

  • 2Gary2

    The American People Rise Up and Demand an End to Government Favoritism of the Rich

  • GSOB

    Yellen is gellen and she scares me.

  • Mondobeyondo

    I listened to President Obama’s press conference this afternoon. I laughed as hard at him, as he probably laughed at the gullible American public as he delivered his speech.

    Our economic troubles are FAR, FAR from over.
    And you know what they say about statistics- “there are lies, darn lies and statistics”.

    Obama and Co. rely on statistics, which are often in and of themselves corrupt. The latest jobs report from the Department of Labor. The latest credit and debit card compromise from the Department of Target. It’s all designed to manipulate you, and most (but not all) is false.

    • Mondobeyondo

      I am fully aware that Target is a low end big box corporate retail department store, not a government agency. What’s your barometer?

    • DiscouragedOne

      I stopped listening to a word he says a long time ago, who want to listen to his lies?

  • James

    I’m a mid level supervisor at a retailer, and I have to tell you, this season sucks for us. Where we would have a 10,000 day, we usually have about a thousand. Which means less hours for us, and less pay. it’s a vicious cycle that constantly makes things worse. And Michael. I’ve been reading your articles for about 2 years now. I feel so foolish for having the wool over my eyes for so long. Thank you for helping me to see the truth.

    • sbenard

      I have a family member who also works in a major retailer. She tells me the same thing. Business has been amazingly SLOW this Christmas season!

  • John Williams

    When is the stock market crash coming? For over 4 years I stayed out and “invested” in gold because everybody and their brother said it would protect my family when the SHTF. Now I look at how much money I could have made in stocks; REAL money that can buy things. Convince me I did the right thing by ignoring the bulls and listening to the doomsday prophets.

    Sorry if I seem sarcastic, but I lost a crap load of money by buying gold instead of investing in the markets since 2009 when the market hit the lows.

    • rat28

      Most doomers and gloomers do not understand how modern economic work. It is foolish for you to listen to them.. They keep on criticizing Fed and Bernanke who is now recognized as the best Central banker we ever had in history . He basically stopped a huge depression 2 in its track!!

      • Gay Veteran


    • sbenard

      No one knows the precise timing. Could anyone have predicted that a company most people were unfamiliar with — Lehman Bros — would cause one of the biggest crashes in history? When rumors about Lehman hit the press, the CEO denied their insolvency. So did politicians! The following weekend, Lehman Bros filed bankruptcy! The rest is history.

      I’ve studied several books on asset bubbles. There are a myriad of signs. We’re seeing ALL of them flashing red right now!
      The key indicator to remember is that a bubble pops when CONFIDENCE collapses. No one knows what will be the precise trigger, so it’s impossible to predict what that trigger will be or when. Can we forecast a confidence collapse or when it will occur. NO!

      Wall St seems to have long forgotten that in the past ten years, the stock market has already crashed TWICE. It dropped 45% in 2003 and 64% in 2007-2008. That history has been erased from the psyche of investors, but it’s a historical fact! That mentality itself is one of the signs of a bubble!

      The key is to watch for an event that causes confidence to crash. Best wishes in that effort!

      • david f miller

        If the asset bubble is going to crash, so will Gold and Silver.

        They crashed back in 2008, too.

    • Joe Kleinkamp

      Diversify. Prepare for the worst and hope for the best.

    • david f miller


      they fooled you.

      But not only the investment gurus, but also the preppers.

      Marc Faber told everybody to buy Gold, but he bought stocks and only stocks. THEY WILL FOOL YOU.

      As long as we don’t fight the banksters, nothing is going to change.

      • Joe Kleinkamp

        If you are a hedge fund manager being interviewed and looking to buy stock maybe you would tell the public, “sell, sell, sell!” If you thought it was time to sell and get out you might be hollering, “buy, buy, buy!”

    • duckhead

      Watch for an international signal of no confidence in the dollar. When other countries dump the dollar, it will be more difficult for the Federal Reserve to prop the stock market and we could see a significant decline at that point.

  • GSOB

    “The unelected central planners….”

    That says it all.


    just have to add: Gary is a liberal piece of excrementa

  • Randy Townsend

    The fed reduced the supply of drug-money by a whopping 12%. No big deal, except that the fed knows that will be insufficient in the long term. They’re hoping to slowly wean the economy (read: investors) from the free money infusion. As any addict who’s gone through rehab will tell you, at some point the drugs have to stop and that is never fun, easy, or pretty. So it will be with the economy when the investors realize the free ride is over and they act to protect their investments.

    • Jimbo

      The Fed and MSM have pulled off “The Sting”. By promising to keep interest rates on the floor and “proving” that the taper was priced into the market in May, Mom and Pop investors are now ready to jump into the market feet first. What could go wrong? The Fed just “proved” that the economy is improving and the “Taper” caused the markets to rise. What better time to take your money out of the bank where it earns very little and place it into markets where it ” will rise by 29%” in 2014? PM’s are no option as they fell last year an fell even more when the “Taper” was announced.

      The smart money will sell their shares to Mom and Pop in the next few weeks and then down she goes.

      Anyone who places money into shares from this point forward is going to lose an awful lot.

  • Sev

    Oh yay. I guess we’re all in for the ride. Not much anyone can do against these heathens in gov’t.

  • Hammerstrike

    1) Proclaime that quantitative easing is being lowered.

    2) Actually increase it.

    3) People gets sucked into the market.

    4) …

    5) Profit complete.

    • Jimbo

      4 is what always happens just after people get suckered in.

      5 is the sting

  • dlewenz

    Unfortunately we are past the tipping point of returning to
    normalcy. The United States Government
    is bankrupt and no one wants to admit it. All the kings’ horse and all the kings’ men
    cannot put the government on any firm footing ever again. The word reset will start to appear shortly,
    and no; we cannot inflate our way out of the debt mess. The pain will be great
    and the consequences will be significantly damaging to the entire world. The only choice will be a new global currency as
    this is the only hope of a reset that the world’s population may buy into. But
    at the end of the day just like the city of Detroit is experiencing bankruptcy,
    the United States of America will too.

  • GSOB

    Who are the composers?

  • Jimbo

    People have three options on how to use their energy

    1. They work and exchange their energy via Fiat for tangible goods today (they spend what they earn).

    2. They work and they save some of their energy by placing it in the trust of the banks or the markets. They plan to spend this energy later (maybe in retirement).

    3. They can borrow against energy they haven’t expended yet and will pay a premium for that privilege. (loan interest).

    The system as it is, has been rigged to encourage us all to do step 3 (buy now pay later) and to discourage step 2 (save) unless we are gambling on the markets.

    Step 1 is reserved for the lucky few who still earn enough to pay their way without having to borrow from future earnings.

    Basically we are witnessing a system that has failed and needs to transfer human energy saved from the past and human energy that has yet to be expended, just to survive today.

    So what happens when we have borrowed all we can borrow and spent all that we have saved and don’t earn enough to get by day to day?

Finca Bayano

Panama Relocation Tours



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