If Anyone Doubts That We Are In A Stock Market Bubble, Show Them This Article

Bubble In Hands - Public DomainThe higher financial markets rise, the harder they fall.  By any objective measurement, the stock market is currently well into bubble territory.  Anyone should be able to see this – all you have to do is look at the charts.  Sadly, most of us never seem to learn from history.  Most of us want to believe that somehow “things are different this time”.  Well, about the only thing that is different this time is that our economy is in far worse shape than it was just prior to the last major financial crisis.  That means that we are more vulnerable and will almost certainly endure even more damage this time around.  It would be one thing if stocks were soaring because the U.S. economy as a whole was doing extremely well.  But we all know that isn’t true.  Instead, what we have been experiencing is clearly artificial market behavior that has nothing to do with economic reality.  In other words, we are dealing with an irrational financial bubble, and all irrational financial bubbles eventually burst.  And as I wrote about yesterday, the way that stocks have moved so far this year is eerily reminiscent of the way that stocks moved in early 2008.  The warning signs are there – if you are willing to look at them. (Read More...)

The Stock Market In 2015 Is Starting To Look Remarkably Similar To The Stock Market In 2008

Bubble Mirror - Public DomainAre we watching a replay of the last financial crisis?  Over the past six months, the price of oil has collapsed, the U.S. dollar has soared, and a whole bunch of other patterns that we witnessed just before the stock market crash of 2008 are repeating once again.  But what we have not seen yet is the actual stock market crash.  So will there be one this year?  In this article, I am going to compare the performance of the Dow Jones Industrial Average during the first three months of 2008 to the performance of the Dow Jones Industrial Average during the first three months of 2015.  As you will see, there are some striking similarities.  And without a doubt, we are overdue for a major market downturn.  The S&P 500 has risen for six years in a row, but it has never had seven up years consecutively.  In addition, there has not even been a 10 percent stock market “correction” is almost three and a half years.  So will stocks be able to continue to defy both gravity and the forces of economic reality?  Only time will tell. (Read More...)

5 Charts Which Show That The Next Economic Crash Is Dead Ahead

Iceberg - Public DomainWhen an economic crisis is coming, there are usually certain indicators that appear in advance.  For example, commodity prices usually start to plunge before a recession begins.  And as you can see from the Bloomberg Commodity Index which you can find right here, this has already been happening.  In addition, I have previously written about how the U.S. dollar went on a great run just before the financial collapse of 2008.  This is something that has also been happening over the past few months.  Some people would have you believe that nobody can anticipate the next great economic downturn and that to try to do so is just an exercise in “guesswork”.  But that is not the case at all.  We can look back over history and see patterns that keep repeating.  And a lot of the exact same patterns that happened just before previous stock market crashes are happening again right now. (Read More...)

In Yemen, It’s The Bad Guys Vs. The Bad Guys

Yemen - Photo by Addicted04Saudi Arabia and Egypt stand poised to conduct a massive ground invasion of Yemen, and the western media will be full of tales about how “Operation Decisive Storm” is liberating that country from the evil Iranian-backed Houthi rebels.  And without a doubt, the Houthis are bad guys and so are their Iranian benefactors.  But don’t be fooled into thinking that the war in Yemen is a battle of good vs. evil.  The truth is that the conflict in Yemen is actually a proxy war between two sets of bad guys that both ultimately plan for Islam to take over the entire planet.  On one side, the Iranians are very honest about the fact that they view us as an enemy, and they plan to impose their version of radical Shia Islam worldwide as soon as they can.  On the other side, the Saudis pretend to be our friends, but they don’t hide the fact that they believe that their version of Sunni Islam will eventually rule the world.  And their version of Sunni Islam includes constant beheadings, the destruction of all churches and the death penalty for anyone caught smuggling a Bible into Saudi territory.  At the end of the day, there is very little difference between the Saudis and ISIS.  In fact, ISIS gets a lot of funding from Saudi sources, and there is more support for ISIS on Twitter from Saudi Arabia than from anywhere else.  Saudi Arabia is a horribly repressive regime where women are treated like dirt, where the secret police conduct a never ending reign of terror and where even a minor deviation from sharia law can mean the loss of a limb.  But because our politicians and the mainstream media constantly tell us that they are “our friends”, we cheer them on. (Read More...)

The Price Of Ground Beef Has DOUBLED Since The Last Financial Crisis

Burger And Fries - Photo by Ewan MunroSince the depths of the last recession, the price of ground beef in the United States has doubled.  Has your paycheck doubled since then?  Even though the Federal Reserve insists that we are in a “low inflation” environment, the government’s own numbers show that the price of ground beef has been on an unprecedented run over the past six years.  In early 2009, the average price of a pound of ground beef was hovering near 2 dollars.  In February, it hit a brand new all-time record high of $4.238 per pound.  Even just 12 months ago, the price of ground beef was sitting at $3.555 per pound.  So we are talking about a huge increase.  And this hits American families where they really live.  Each year, the average American consumes approximately 270 pounds of meat.  The only nation in the world that eats more meat than we do is Luxembourg.  If the paychecks of American workers were going up fast enough to deal with this increase, it wouldn’t be that big of a deal.  But of course that is not happening.  In an article just last week, I showed that real median household income is a couple thousand dollars lower now than it was during the depths of the last recession.  The middle class is being squeezed, and we are rapidly getting to the point where burgers are going to be considered a “luxury” item. (Read More...)

33 Strange Facts About America That Most Americans Would Be Shocked To Learn

33 SignDid you know that about one-fourth of the entire global prison population is in the United States?  Did you know that Apple has more money than the U.S. Treasury?  Did you know that if you have no debt and also have 10 dollars in your wallet that you are wealthier than 25 percent of all Americans?  Did you know that by the time an American child reaches the age of 18, that child will have seen approximately 40,000 murders on television?  There are some things that are great about the United States, and there are definitely some things that are not so great.  Once upon a time we were the most loved and most respected nation on the entire planet, but those days are long gone.  We have wrecked our economy, we have lost our values and we have fumbled away our future.  But if you look close enough, you can still see many of the things that once made this country a shining beacon to the rest of the world.  This article includes some weird facts, some fun facts, but also some very troubling facts.  It has been said that a spoonful of sugar helps the medicine go down, and hopefully as people enjoy reading the fun facts in this article they will also take note of the more serious facts.  If we are ever going to change course as a nation, we need to come to grips with just how far we have fallen.  The following are 33 strange facts about America that most Americans would be shocked to learn… (Read More...)

They Are Slowly Making Cash Illegal

Cash - Public DomainThe move to a cashless society won’t happen overnight.  Instead, it is being implemented very slowly and systematically in a series of incremental steps.  All over the planet, governments are starting to place restrictions on the use of cash for security reasons.  As citizens, we are being told that this is being done to thwart criminals, terrorists, drug runners, money launderers and tax evaders.  Other forms of payment are much easier for governments to track, and so they very much prefer them.  But we are rapidly getting to the point where the use of cash is considered to be a “suspicious activity” all by itself.  These days, if you pay a hotel bill with cash or if you pay for several hundred dollars worth of goods at a store with cash you are probably going to get looked at funny.  You see, the truth is that we have already been trained to regard the use of large amounts of cash to be unusual.  The next step will be to formally ban large cash transactions like France and other countries in Europe are already doing. (Read More...)

How Much Time Do Americans Spend Plugged Into The Matrix Every Day?

The Matrix - Public DomainThe average American spends more than 10 hours a day using an electronic device.  And most of that activity is not even interactive.  The vast majority of the time we are just passively absorbing content that someone else has created.  This very much reminds me of the movie “the Matrix”, but with a twist.  Instead of humans being forcefully connected to “the Matrix”, we are all willingly connecting ourselves to it.  There is a giant system that defines our reality for us, and the length of time that the average American spends connected to it just continues to keep growing.  In fact, there are millions upon millions of us that simply do not “feel right” unless there is at least something on in the background.  Just think about it.  How much time do you spend each day with all electronic devices completely turned off?  Thanks to technology, we live at a time when more news, information and entertainment is at our fingertips than ever before, and we are consuming more of it than ever before.  But this also gives a tremendous amount of power to those that create all of this news, information and entertainment.  As I have written about previously, more than 90 percent of the “programming” that we absorb is created by just 6 enormously powerful media corporations.  Our conversations, attitudes, opinions and belief systems are constantly being shaped by those entities.  Unfortunately, most of us are content to just sit back and let it happen. (Read More...)

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