Economic Ship Wreck
Economic Ship Wreck
I had a conversation a while back with a coworker about the need to be prepared in case things get worse economically. I am always careful to ease my way into such conversations. if you spoke people, they will not take you seriously and write off everything you say. My argument was the fact that the spending on welfare and warfare were out of control. The only reason we have not seen a complete meltdown yet was because the Fed was kicking the can down the road through QE. While QE does delay the inevitable, it also makes our day of reckoning exponentially worse with each new round of money printing.
Not at all an unintelligent guy, my friend did give some attention to markets and the economy. His response was one of normalcy bias and the type of blind ignorance that has been fed to him through the mainstream media. He said he trusts that the people in charge of the economy and the government were aware of the problems that we had and that they would be able to handle them.
I think he represents a large portion of the country. They simply trust the government and policy makers.I quickly jumped on youtube to find some July 2005 footage of Ben Bernanke telling Maria Bartoromo on CNBC “I guess I don’t buy your premise. It’s a pretty unlikely possibility. We’ve never had a decline in house prices on a nationwide basis.” After the bubble had begun to pop, he was back on CNBC to say that the crisis would be contained to the sub prime market. The video below is a compilation of Ben Bernanke making that famous statement and several other positive predictions that didn’t pan out.
Bernanke was Wrong
Putting faith in our current leaders is a mistake. To do so is to miss your opportunity to prepare for the inevitable collapse. It is a lesson that has been learned by many societies throughout history. The Romans made that mistake. The citizens of Zimbabwe, Argentina and Iceland have all made that mistake. All their financial systems have suffered complete and total collapse. It would be much easier to learn from their mistakes than to learn this one from your own misplaced confidence.
Now that we know The Fed chairman was wrong time after time, the question remains as to whether he was lying or just incompetent. Both cases are possible and I don’t know which would be preferable. For the head of the most powerful central bank in the world to have no clue about how economics work is very frightening. I think the more likely explanation is that he must lie. Confidence is the lifeblood of markets. If Ben Bernanke told the truth, they would collapse.
Who Saw the Crash Coming?
I think it is not only the Chairman of The Federal Reserve who knows our coming demise. I think DHS and every other agency is well aware of the pain in our future. This would certainly explain the recent purchases of ammunition and armored vehicles by an agency tasked with domestic tranquility. Don’t listen to what they say, watch what they do. Follow the money, that will tell you what they know.
If you are determined to believe anyone about what the future holds, chose someone who got it right last time. Find the economists who saw the housing collapse coming. Find out if they see only sunshine and rainbows as Ben Bernanke claims. One person who got it right in the housing collapse was Peter Schiff. He wrote about America’s bubble economy and the housing bubble in his 2007 book Crash Proof. Nouriel Roubini also predicted the housing bubble in his 2006 presentation to the International Monetary Fund. In 2002, Ron Paul warned Congress that government intervention in the housing market would cause a bubble.
Did We Dodge a Bullet?
So now that the Dow Jones is at an all time high and housing prices are recovering, they must think everything is peaches and cream, right? peter Schiff’s new book is called The Real Crash. In his daily radio show he speaks of a coming collapse that will dwarf the 2008 crisis. Nouriel Roubini wrote a piece on his website entitled Perfect Storm where he explains factors that could cause a global meltdown. What about Ron Paul? He predicts a complete currency collapse that will result in political and social chaos.
The guys with the track record for being right have very little encouraging news. The men who are at the helm either have no clue, are lying or are actually orchestrating the collapse. Either way, the end result is economic ship wreck. Share this information with as many people as possible. Every person who prepares is one less that you will have to feed or fight off when it hits the fan. Get yourself prepared. If you need direction, read our 7 Step Survival Plan.
Happy Prepping!
