At some point we are going to see another wave of panic hit the financial markets like we saw back in 2008. The false stock market bubble will burst, major banks will fail and the financial system will implode. It could unfold something like this: Words: 660
So writes Michael Snyder(http://theeconomiccollapseblog.com) in edited excerpts from his article entitled Federal Reserve Money Printing Is The Real Reason Why The Stock Market Is Soaring.
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Snyder goes on to say in further edited excerpts:
You can thank the reckless money printing that the Federal Reserve has been doing for the incredible bull market that we have seen in recent months….The Dow and the S&P 500 have both hit levels not seen since 2007 this month, and many analysts are projecting that 2013 will be a banner year for stocks – but is a rising stock market really a sign that the overall economy is rapidly improving as many are suggesting? Of course not.
Just because the Federal Reserve has inflated another false stock market bubble with a bunch of funny money does not mean that the U.S. economy is in great shape. In fact, the truth is that things just keep getting worse for average Americans [as the following illustrates]:
- The percentage of working age Americans with a job has fallen from 60.6% to 58.6%… [over the past four years],
- 40 percent of all American workers are making $20,000 a year or less,
- median household income has declined for four years in a row, and
- poverty in the United States is absolutely exploding.
Unfortunately, all of this reckless money printing has a very negative impact on all the rest of us. When the Fed floods the financial system with money, that causes inflation. That means that the cost of living…[goes] up even though your paycheck may not…Our food dollars are not stretching nearly as far as they used to, and we can blame the Federal Reserve for that….The system was designed to create inflation.
Before the Federal Reserve came into existence, the United States never had an ongoing problem with inflation but since the Fed was created, the United States has endured constant inflation. In fact, we have come to accept it as “normal”. Just check out the amazing chart in this video….
At some point we are going to see another wave of panic hit the financial markets like we saw back in 2008. The false stock market bubble will burst, major banks will fail and the financial system will implode. It could unfold something like this:
- A derivatives panic hits the “too big to fail” banks.
- Financial markets all over the globe crash.
- The credit markets freeze up.
- Economic activity in the United States starts to grind to a halt.
- Unemployment rises above 20 percent and mortgage defaults soar to unprecedented levels.
- Tax revenues fall dramatically and austerity measures are implemented by the federal government, state governments and local governments.
- The rest of the globe rapidly loses confidence in the U.S. financial system and begins to dump U.S. debt and U.S. dollars….
I believe that our “leaders” will eventually resort to money printing, unlike anything we have ever seen before, in a desperate attempt to resuscitate the system. When that happens, I believe that we will see the kind of rampant inflation that so many people have been warning about.
What do you think about all of this? Do you believe that Federal Reserve money printing is the real reason why the stock market is soaring? Please feel free to post a comment with your thoughts below.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
Thanks to the endless barrage of feel-good propaganda that daily assaults the American mind, best epitomized…by the everything’s-coming-up-roses propaganda touted by Federal Reserve Chairman Bernanke, the citizens have no idea how disastrous the country’s fiscal, monetary and economic problems truly are. Nor do they perceive the rapidly increasing risk of a totalitarian nightmare descending upon the American Republic. Below, we outline America’s troubling and compounding predicament, and urge you to think about how to protect yourself from its consequences, both financially and personally. Words: 3402
Technically the U.S. left the gold standard in 1971 but, in reality, we abandoned it in 1913 with the creation of the Fed…setting the stage for the collapse of the dollar. [Given that this is] the 100th anniversary of the creation of the Federal Reserve, it seems only fitting that we should present a brief history of the U.S. dollar debasement since then. Words: 1144
In order to generate phony economic growth and to “pay” our country’s debts in the most dishonest manner possible, the Federal Reserve is 100% committed to the destruction of the dollar. Anyone with wealth in the U.S. dollar should be concerned that economic leadership is firmly in the hands of irresponsible bureaucrats who are committed to an ivory tower version of reality that bears no resemblance to the world as it really is. By upping the ante once again in its gamble to revive the lethargic economy through monetary action, the Federal Reserve’s Open Market Committee is now compelling the rest of us to buy into a game that we may not be able to afford. Words: 1410
Why are so many politicians around the world declaring that the debt crisis is “over” when debt-to-GDP ratios all over the planet continue to skyrocket? The global economy has never seen anything like the sovereign debt bubble that we are experiencing today. This insanity will continue until a day of reckoning arrives and the system implodes. Nobody knows exactly when that moment will be reached, but without a doubt it is coming. Are you ready? Words: 1270
Without economic growth, and real economic growth at that, there can be no meaningful long-term economic recovery in the developed countries. Growth or lack thereof will have to be reflected in the financial markets over time. Currently, I continue to see a disconnect between where the financial markets are pricing things, and where I think they ought to be pricing things. Words: 784
It seems clear that there are a number of investors who have gained confidence in the global economy and are seeking to capture the growth opportunities taking place around the world. With the European crisis comfortably in the rear view mirror and global central banks taking the position that they will continue their easing policies, investors have taken their foot off the brake and have begun to accelerate….We see more sunshine and less stormy weather ahead [and explain why that is the case in this article]. Words: 695; Charts: 3