imagtek

Five Reasons the Market Could Crash This Fall

There is more liquidity in the form of fiat currencies than there is planetary capacity to provide resources in response to liquidity flows without trashing the climate, etc. We have already exceeded any sustainable carrying capacity for this planet, and so-called 'economists' still talk of 'growth'. There is going to be an inevitable global collapse of all fiat currencies relative to commodities (global hyperinflation). None will escape. The global economy is the Titanic and we are short quite a few lifeboats. It is going to get nasty.

Why There Will Be No Recovery and Markets Will Trend Lower

Economics is war, and the USA unilaterally disarmed a generation ago.

Japan: Demographic Time Bomb Waiting to Explode

Japan, as an island nation, realizes that populations cannot grow indefinitely, and that an economy dependent upon continuous population growth is unsustainable. At some point, growth must cease and an alternative economic model must come into play.

For Japan to continue 'dynamic economic growth', it must become a multi-ethnic society via massive immigration. In short, the cost of continuing economic growth is Japan must cease to be Japan as it has existed for centuries.

Japan has chosen to remain Japanese, at any economic cost. The alternative is growth, at any cost, sacrificing national identity to postponing near term economic difficulties. Such a fix is temporary. Inevitably, all societies and in time, humanity, will encounter an upper limit to economic growth.

Japan is the model for a sustainable economic future, if there is one. It should be watched closely and its decision to remain true to its historical identity should be respected. Economic growth at any cost via multiculturalism and massive immigration is a recent elitist political ideology that has not yet played out. Twenty years from now, nations that have sacrificed their national identities to multiculturalism in order to provoke one last spurt of economic growth may very well envy the Japanese solution when an economic downturn inevitably occurs in their balkanized societies.

CIT's Bankruptcy and the Trading Sardine

Obama has rescinded the regulation that HIV (aids) positive individuals are barred from entering the USA. The floodgates are now open.An HIV positive foreigner in the USA can:a. infect more people with HIVb. become a permanent medical ward of the stateThe next step is for the courts to rule that HIV positive foreigner's in the USA illegally may not be deported because the absence of free HIV treatment in their nation of origin would be a 'death sentence'.It is over. This country is down the toilet. And I voted for this clown.

The Dollar Is Now China's Problem

There is more global wealth in the form of fiat currencies than there is physical resources to produce goods. Talk of China and India 'increasing consumption' is pathetic nonsense that can only lead to global eco-disaster. What is going to happen is global inflation of all currencies relative to food and commodities; i.e commodities are going to cost dramatically more in all currencies. It is physically impossible for India and China to achieve 1st world living standards except for tiny minorities. It is also economically impossible for the USA to maintain its existing living standards, except for tiny minorities. At some point, the world will share the same standard of living; probably akin to Cuba or Brazil. The age of opulence is over forever. Those who strive for what others cling to in a zero sum game can only resort to conflict. This is going to get ugly.

Thoughts on the RMB as a Reserve Currency

All currencies must depreciate relative to the assets they can acquire.

There is simply far too much 'wealth' in circulation in the form of currencies than there is real goods that a finite planetary system (the earth) can generate without rendering the environment uninhabitable.

Economics is still mired in the 19th century.

The Manipulation of Gold Prices

The logic is impeccable, but nothing is ever simple. Gold soaks up the untold trillions in fiat currencies and avoids a global hyperinflationary disaster. The counter to that is if the precious metal spiral gets out of control, it could result in a deflationary debacle as precious metals become yet another disastrous bubble. A collapse in a precious metal bubble could very well be soaked up by equities (DOW 10,000). Eventually the system will stabilize, but it will be an incredible roller coaster ride and fortunes will be made/lost. We are probably seeing the early stages of that now with the wildly oscillating prices of precious metals relative to equities. The oscillations are simply going to get more extreme and more closely spaced in time. Where it will end, the state of the financial markets in their new 'steady state' five years hence? Who knows.