History is being written at this very moment.
And I’d like to go on record that I believe between today (Sept. 23th, 2011) and the end of 2015 (possibly sooner) our world will be forever changed.
Our financial world that is.
And as “money makes the world go round,” a financial collapse this time round, will likely shake it to its foundations.
What will likely transpire will be written about in history books for future generations to study from.
In actual fact, what is about to take place is simply a domino effect created by years of creative economics.
If you’ve been reading this site for some time you might remember that I have brought up this topic before, but if you’re new here I suggest you take a quick read here, and here.
I’m by no means an economist, but I have always loved math and when I look at the numbers something doesn’t add up.
Government spending has simply gotten out of control. Politicians keep spending more and more money. But money has to come from somewhere and unfortunately my father (and many other parents) was right, “Money doesn’t grow on trees.”
With the announcement of yet another stimulus program, we can see that some of the smartest people in government (supposedly) simply think they can print their way out of this mess.
It has worked before so why wouldn’t it work again is their strategy.
In the 80’s bailouts were in the millions.
In the 90’s bailouts were in the billions.
Now they’re in the trillions. Yikes!!
I notice a trend here, don’t you?
So what was the market’s response to their latest announcement aimed at aiding the stalled economy- stocks plunged.
That’s just great.
Since Lehman Brothers crashed in 2008, just three short years ago, the Fed has injected close to 6 trillion dollars in various forms into the system and is most likely on its way to print even more.
Their logic is that with more money, more people will spend which will boost the economy.
The result, not much.
Unemployment is still hovering around 9% officially (22% unofficially), about 43 million people are on food stamps, real estate hasn’t recovered and is expected to drop even further, Greece remains on the brink of bankruptcy, the dollar has dropped 25% against the yen over the past three years, gold and silver just took a hit and everyone’s favorite investment vehicle, the stock market, is chaotic.
The average person is starting to ask questions.
Just what’s going on?
To me it’s very simple – the system is flawed.
Today it’s not what the free market does that matters, but rather what the government decides it is. This is in essence giving power to a very small group of people.
Governments are supporting businesses that have no business being in business. They have made promises they cannot keep in the form of healthcare and pensions. And military spending has skyrocketed since 9/11.
Put it all together and you have a recipe for disaster.
Our world consists of 4 seasons; the season of birth, spring, the season of growth, summer, the season of harvest, fall, and the season of endings, winter.
The 90s were full of growth, the Internet was born and with it an entire industry. It was a time of spring.
But now it feels as if we’re heading into another winter.
So what can we do? Prepare.
To start I would suggest reading another article I wrote a few weeks ago, you’ll find it here. I would also suggest adding BioTech to this list.
For all our sakes, I do hope that I’m wrong about what the future holds, but to me, I believe that there’s really not much that anyone can do now.
Life has a funny way of fixing problems. This is true as true in nature as it is in economics.
I believe that in the coming months it is very likely that the Federal Reserve will announce yet another round of bailouts, a QE3 as they like to call it (quantitative easing). If this does come to pass, be afraid, be very afraid because the people I follow will have been right, and what they see coming is not pretty.
Get ready. Get educated. The future is just round the bend.
Adrian Shepherd