Thursday, July 9, 2015

BITS AND PIECES.....A LITTLE WISDOM

BITS AND PIECES.....A LITTLE WISDOM FROM GLOBAL HEADLINES

The world is entering a kind of no man's land, in between the realms of insane denial and utterly obvious crisis. Europe is now destabilizing amid the Greek soap opera. China's stock market bubble is bursting; and the U.S. dollar's world reserve status is about to be decimated by the global shift toward the International Monetary Fund's basket currency reserve system. We're afraid we're going to have to say this because we don't know if anyone else will admit it: Alternative economic analysts were right, and the mainstream choir was either terribly wrong or disgustingly dishonest. However, being right is not necessarily a solution to disaster.

Over the course of the last few years one thing that has been prevalent more than nearly any other time we can recall is just how many so-called "experts" have lined up to proclaim how their prognostications "were surely sound." The rationale? They must be correct in all their assumptions for – "Just look at these markets!" Well suddenly when one looks at these markets – it's not for the reasons the "experts" wanted. Now it's: "What in the world is going on in these markets!?"

History does not repeat itself, but it often rhymes. Don't spend too much time wondering why, it just does...over and over and over. This could not be truer for crisis investing. Between China's stock market and the debt troubles of Greece and Puerto Rico, it is clear that we could be entering a time of potential financial crisis. Once an asset bubble begins to burst, there there is nothing central bankers can do to stop it – and we have plenty of bubbles awaiting their turn in the barrel.

Break enough of your own rules, and your money turns to garbage, because in a world where money is debt and debt is garbage, money is garbage. But there is a proven method for solving this problem and moving on: it's called national bankruptcy.

We see the result of 150 years of European socialism playing out in grand style in Greece today. It's time to give free market capitalism and sound money a chance: it's worked every time it's been tried.

Despite the coordinated efforts of Central Banks globally to keep asset prices inflated to support consumer confidence, there is plenty of historic evidence that suggest such attempts to manipulate markets are only temporary in nature.

The New American Dream: No Jobs For The Young, No Retirement For The Old.The reality is that financial insecurity is rising for everyone...

I'm wondering if Global Markets are poised on the edge of the precipice about to take a step forward?" 

We are likely embarked on the death spiral phase of a game of Chicken.....

Our almost infinite desire for distractions and pleasure have produced a profoundly abnormal society. The ignorant masses are acting normally only in the context of living in a sick, demented, abnormal

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