Whether you’re aware of it or not, a great battle is being waged around us. It is a war of two opposing narratives: the future of our economy and our standard of living. The dominant story, championed by flotillas of press releases and parading talking heads, tells an inspiring tale of recovery and return to growth. The other side, less visible but with a full armament of high-caliber data, tells a very different story. One of growing instability, downside risk, and inequality. As different as they are in substance, they both share one fundamental prediction – and this is why you should care: This battle is about to break. And when it does, one side will turn out to be much more ‘right’ than the other. The time for action has arrived. To position yourself in the direction of the break you think is most likely to happen. It’s time to choose a side….
The United States is facing a “financial Pearl Harbor,” and according to one expert, we are unfortunately helpless to defend against it.
The seeds of this war were planted years ago, and now our country, more specifically our economy, is under serious threat from this “war.”
In short, the United States fired the first shot in this financial war when it started printing massive amounts of money, called quantitative easing or QE1, back in November of 2008. This was done in an attempt to help pull the country out of the Great Recession. It didn’t work, and the subsequent attempts to print our way out of trouble (QE2, QE3, Operation Twist, etc.) just weakened our dollar more and more.
To retaliate against the weakened dollar, other countries have devalued their own currencies, and many issued stern warnings to the United States against further actions….
Discussing whether the markets are in a new housing bubble, with former Reagan OMB director David Stockman and CNBC’s Diana Olick. “You are now in the Bernanke bear trap,” he says in discussing interest rates
Negative reserve banking: quantitatively insane – Fed Has Bought More U.S. Gov’t Debt This Year Than Treasury Has Issue
If the Fed were to buy debt at a pace of $540 billion a year, and the Treasury were to issue it at $845 billion per year, the Fed would be buying the equivalent of about 64 percent of all debt the government issued.