Peter Schiff Warns of Coming U.S. Economic Collapse 2012
Peter Schiff warns of the inevitable U.S. economic collapse which will occur unless serious changes are made to our monetary policy.
BIG MAC BUST: SALES DROP FIRST TIME IN DECADE
Earlier today, fast food juggernaut McDonalds reported same store sales for the month October. At -1.8%, this number was well below expectations of -1.1%, and a drop from September’s 1.9%. It was driven by a 2%+ drop in comp store sales across all locations: US, Europea and APMEA, with the US performing just as bad as Europe. Most importantly, this was the first monthly drop in MCD comp sales since March 2003! So our question is: at what point does the perpetually self-deluded US population finally admit to itself that when even 99 cent meals are no longer affordable, that this country has a problem?
Charting the last 4 years of McD sales, and eagerly looking forward to 4 more years.
McDonald’s Corporation today announced that global comparable sales decreased 1.8% in October. Performance by segment was as follows:
- U.S. down 2.2%
- Europe down 2.2%
- Asia/Pacific, Middle East and Africa down 2.4%
What you should know about the serious slowdown in stock market earnings
FIRE IN THE DISCO!
Today, I’d like to talk about the relationship between earnings recessions and economic recessions. Because we’re beginning to have the former, which typically leads to or coincides with the latter. Don’t get mad, that’s what the data says.
This is important because stocks should not continue to climb under these circumstances. Note that I said “should not,” not “will not.” Seth Klarman of the Baupost Group would agree with me. Here’s what he told his investors in a letter the other day (via Distressed Debt Investing):
“The overall market environment seems increasingly risky to us, as securities prices are rising despite weak and generally deteriorating global fundamentals. U.S corporate earnings are expected to be lower this quarter. Higher markets in the face of eroding fundamentals can be a toxic combination. A market rising for non-fundamental reasons (i.e., QE and ECB bond repurchases) is always one that demands a healthy dose of skepticism.”
I want to show you something, it comes from Barry Knapp and his team at Barclays (via PragCap). It is very not good and it concerns the state of US earnings prospects…
Barclays Capital (Barry Knapp, Eric Slover, Adam Sussi): – The early weakness in corporate earnings continued right into the last big week of the 3Q12 reporting season. With 70% of companies having reported, it is clear that even with the heaviest negative preannouncements in our series since mid-2006 and the weakest quarterly expectations since the Great Recession, the bar was set too high this quarter. We had expected weak macro-economic trends to pressure optimistic forward growth rate expectations this reporting season; indeed, since Alcoa’s release (October 9, 2012), 4Q12 expected earnings growth has fallen to 7.2% from 10% and expected 2013 growth has dropped 90bp to 10.4% from 11.3%.
Why does this decline from record earnings into deceleration matter? Well, it’s very simple - all major market tops have coincided with a “record earnings” peak.
And just to illustrate this point a bit, here’s a chart from Nasdaq.com:
The “GAGA” Indicator stocks (Google, Apple, General Electric, and Amazon) are all breaking key support lines at the same time.
CLICK ON CHART TO ENLARGE
GAGA Indicator (Google, Apple, General Electric & Amazon) are all breaking key support lines at the same time.
Three of the four stocks in the above 4-pack turned up before the 500 index did in 2009. Now two of the three arebreaking support off their 2009 lows, before the 500 index has.
MARC FABER & JIM ROGERS: ‘Obama Is A Disaster, The Stock Market Should Have Fallen 50%, And You Should Buy Yourself A Machine Gun. I Need To Buy A Tank…’ ‘It’s Going To Be More Inflation, More Money Printing, More Debt, More Spending…’
by Mike Adams, Natural News:
The re-election of Obama was more than the mere selection of one man over another; it was an endorsement of a set of economic policies that are now launching America into a trajectory that can only end in economic disaster.
With the election now etched in the history books,America has endorsed an endless government spending spree that can no longer be held in check. There is only one outcome now for the United States of America: A grand finale blowout of money creation, hyperinflation, collapse and tyranny.
This point is not a debate; it is mathematical fact. Just as 2 + 2 = 4, the economic policies pursued by President Obama and the Federal Reserve can only equal the utter financial demise of the U.S. dollar. This is explained in more detail, below…
Ron Paul & Jim Powell: It’s Now Officially Too Late To Avert Disaster. We Cannot Get Enough People In Congress In The Next Five-10 Years Who Will Do Wise Things. President Barack Obama Getting Re-elected Sets The Stage For Another Great Depression