An entire nation cannot borrow for decades, inflate the money supply and then hope that
all will be fine when the pay back time arrives. There is nothing Barack Obama can do.
The cause is in place, the effect will follow. Google for "DEFLATIONARY CRASH" to learn about the coming depression. Prepare for the stock market crash to protect your wealth, your retirement, your
401K. Nothing has been fixed. We have borrowed and spent. Debt was the problem to
begin with and now we have more of it. Uncle Sam will not be able to borrow because tax
revenue won't be enough to pay the interest. Then we will resort to austerity measures.
Austerity measures, spending cuts will be deflationary. Deflation cannot be avoided after
credit inflation runs it's course. Google for "DEFLATIONARY CRASH" to understand the problem the world is facing. Great Depression
is going to pale in comparison.
In anticipation of armageddon, gold has been going up. But how much more can gold
go? Ironically, US dollar is scarcer than gold. For decades people borrowed and
promised to pay back with interest in the future. The future is here. Pay back time. But
entire money supply is not enough to pay the debt. Google for "How do banks
create money" to understand why US dollar is the place to be at times of deflation.
President goes on to TV and talks about how trillions of wealth has dissapeared in the
stock market. People often ask "How does
money dissapear in the stock market?" To understand how money can dissappear,
one needs to understand credit inflation in the first place. Banks create money when we borrow.
This new money inflates the money supply and makes the economy good. But it sets us
up for a deflationary crash that happens when the pay back time arrives. This is how debt
based monetary system with fractional reserve banking works. Interest demand for new
money is the cause of the problem.
Stocks are a major bubble. According to hundreds of years of market history, we are at
bubble valuations when we consider that dividends are all time low. These low dividend
ratios appear at market tops. Not at market bottoms. Google for "have we seen the stock
market bottom" to understand why 2009 was not a major bottom for the market. Worst is
still ahead of us. Banks create money when we borrow. This new money inflates the
money supply and makes the economy good. But it sets us up for a deflationary crash
that happens when the pay back time arrives. Stock market is in free
fall territory. |