Monday , 20 May 2024

Don’t Believe the Lies – THIS Is the Economic Reality – Take a Look… Then Get Prepared (+5K Views)

Reality has become a big lie which most live in… the big lie that:

  1. you can have something for nothing,
  2. the government can support you and provide for your needs rather you providing for yourself…
  3. the U.S. economy can generate enough economic growth and output that the owners of treasuries will get their money back with interest,
  4. the dollar and treasuries, which are the reserves of the global financial system, are promises which are as good as gold. 

The aforementioned is NOT reality, regardless of the words the Federal Reserve present. [The following charts illustrate just what IS reality. Take a look and then get prepared for when the —- hits the fan!]

So writes Ty Andros ( in edited, and in some cases paraphrased, excerpts from his original article* as posted on entitled WITCHES BREW: FINGERS OF INSTABILITY! 

[The following article is presented by  Lorimer Wilson, editor of and the FREE Market Intelligence Report newsletter (sample here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]

Andros goes on to say in further edited, and perhaps paraphrased in some places, excerpts:

The Federal Reserve must conform to reality regardless of the words they present [and the following charts show exactly what reality really is at this point in time].

1. The stock market is leveraged to a point that has preceded every market crash in the last 15 years.

2. The financial system is sitting on a pile of over-the-counter derivatives valued at $296.8 trillion dollars (courtesy of

These derivatives are 17.6 times US GDP and 15.6 times total stock market capitalization and the banks that are counter parties to this are holding no margin to secure their counter parties along with running over 33 to 1 leverage.  A mere 2 % move against them will vaporize a years’ worth of US GDP.

3. The economy has not grown in real terms, after inflation, for almost two decades.
4. Job growth is nothing but a political fiction and in real terms is over 22%.
5. The U.S. government is deeply insolvent.
a) The market for its “bills of credit” (also known as treasury bills) and notes total over $16.9 trillion (16,900,000 million) and is going straight up.
b) In GAAP (generally accepted accounting principles) terms the actual debt is over $80 trillion ($80 million million) and the debt and future obligations is actually growing over $7 trillion ($7 million million) dollars a year.
c) The central bank’s balance sheet is exploding to buy US government bonds which the private sector won’t buy:
6. The government has grown over 280% yet average household earnings have grown only 24% since 1970.

It now takes $12.50 cents of new debt to create $1 dollar of GDP. If this leverage fails so will the financial system and economy.

7. Government spending is not being controlled.
8. …Government has morphed from your servant to your master since Breton Woods II 1971 – UP 500% since the 1970’s in spite of competition, innovation, productivity and more goods and services for less money (aka capitalism) being prohibited by law!…
9. Volatility has been suppressed for over 58 years by negative interest rates, excess money and credit creation rather than letting nature purge the excesses.

The red volatility that has stopped in the last 55 years has not disappeared but, rather, has been stored up and will be released at some point when the Federal Reserve and financial systems lose control of the markets which they manipulate with their unlimited supply of dollars, also known as IOU’s and junk bonds.

10. Unsound money has allowed for the theft of your well-being and the value of the dollars you are paid and store your wealth in while it sits in the bank appearing to hold its value.

Notice how the purchasing power of the dollar has declined about 80% while wages in a previous chart are up nominally 24%. Do the math…

11. [The Federal Reserve]…may have lost control of the…bond markets with their forward guidance…spawning outside down reversals on quarterly charts on virtually every bond market in the world…as a result of their failure to tighten…

[This loss of control of interest rates will cause them] to print a lot more before the global Ponzi scheme collapses on them.  They will not take the chance of a spiral higher in interest rates.  The financial and currency systems which they control and manipulate for personal gain and plunder will be rescued at any cost, which to them is virtually nothing except an electronic book entry.

These reversals are the source of the emerging market routes in currency values and fixed income. Massive losses occurred on too big to fail bank balance sheets and bond inventories, just on the mentioning of the taper and withdrawal of liquidity and stimulus.
The central banks (BOE, Federal Reserve, ECB, Bank of China, Swiss National Bank, and Bank of Japan) mission impossible is to stop this bull market from reversing.  The leveraged financial assets (mal-investments) in the financial and banking systems will collapse in value when interest rates rise!!!  The leverage they operate under guarantees it….

12. Money supply growth throughout the world’s largest economies has slowed to the point which has preceded every major financial crash in in recent history.

When reviewing the latest TICs data detailing flow of funds into and out of the United States, one thing stood out like a sore thumb.  The flow of funds of treasuries was negative for every central bank in the world except Japan which bought approximately $70 Trillion dollars’ worth.
Think about that, the most insolvent government in the world is financing another insolvent government via what else – the printing press! That is another $70 trillion dollars of debt monetization on top of their current domestic monetization.  Once they receive the bonds which will never be repaid except from new borrowing, they then call them assets. What a joke!

In conclusion:

Whereas G20 leaders proclaim that the crisis has ended based on small economic anecdotes the insolvencies have, [in fact,] only grown since 2008.  The printing can never end, only grow, until the policies of insolvency built up over the last five decades are repealed and reformed!

“When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it.”  Frederic Bastiat

The very idea that the politicians, and the banks and corporations which control them, will undo their handiwork is a pipedream.

  • They have bent the developed world’s laws and institutions to their advantage, while increasingly victimizing the public and private sectors at large.
  • They have spent the last 5 decades taking control of the free world, and subverting capitalism to give it up now.
  • The thought of returning freedom, undoing the centrally controlled economies massive regulatory and tax systems, and the restoring [of] incentives to produce to the masses (the only solution) is inconceivable to them.
  • Those that created these problems are incapable of solving them.  No amount of money printing will. It just postpones the unfolding crisis and exasperates it.

It’s INFLATE or DIE!  The taper talk is just that: TALK.  They can NEVER withdraw the monetary heroin and I believe must step on the gas and increase money and credit creation SOON or risk the issues outlined in this commentary beginning a game of DOMINOES!  Hi ho hi ho it’s back to the printing press they MUST go.

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
* (Copyright © 2009-2012 TraderView All rights reserved. Authors Note:  Most of the world is operating with EYES WIDE SHUT and in willful blindness for which they will pay a price.  In my opinion the greatest man-made disaster and OPPORTUNITY in history is unfolding in every corner of the world. Are you prepared to turn it into opportunity by properly diversifying your portfolio?  Adding investments which have the potential to thrive regardless of what unfolds economically?  Hedging the printing presses impact on your paper money?  This is what I do for investors; help them diversify into investments which are created to potentially thrive.  No one knows when the “you know what” will hit the fan but if you aren’t already in place it will probably too late to do so. For a personal consultation with me CLICK HERE. Don’t miss the next edition of TedBits subscriptions are free CLICK HERE.)

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  1. My prediction is that Gold will hit $2,000 an ounce before the middle of 2014, then jump to $3,000 an ounce in less than a year later; get ready for all PM’s to leap upward, while the Central Banks all “reboot”…

  2. Check this out:

    Is the US Gov’t. shutdown really just part of a global fiscal READJUSTMENT?
    Stay tuned…

    If so, look out PM’s will rocket upward, like never before!