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Personal Income, Spending Released: The Future Will Be Getting Worse
Personal Income, Spending Released: The Future Will Be Getting Worse
John Brown: Now, uncertainty has returned with a vengeance and the stock
market has booked its first official 10% correction since this tenuous 'bull' market
began in the spring of 2009. In recent days, markets have shown signs of life - but
nascent rallies have been quickly smothered. I believe there are five fundamental
reasons for this persistent uncertainty.
1) First, the world's second most held currency, the euro, is threatened with
possible extinction. The massive $750 billion bailout package for Greece will
not cure Greece's dependence on entitlements, and will likely only buy time
until a debt restructuring. The world is looking to major nations such as the
United States, Germany, and even the United Kingdom to backstop the likely
future funding obligations of bankrupt states such as Spain, Portugal, and
Italy. However, these so-called 'major' nations have little or no money; they
themselves have borrowed massively. The only real savior available for the
euro is China. So, you can imagine the feeling in Brussels when the Financial
Times reported this week that the Chinese government is "reviewing" its euro
holdings in light of the spreading debt crisis. It is now dawning on investors
that the euro may be down for the count. As a result, key support levels for the
currency are giving way.
2) Second, there is deep concern among investors that a lurching socialism may
change Western economies fundamentally. Just this week, it was announced
that the percentage of US personal income coming from private sector
earnings hit an all-time low... just 41%! As a corollary, the percentage of
income coming from direct government payments has risen sharply in recent
years and is now at an all-time high. To support the growing welfare state,
taxes on society's dwindling producers must increase. This is no way to grow
an economy - and investors know it.
3) Third, rates at which banks and finance houses lend to each other are rising.
Although central banks continue to hold short term rates low, stoking ever
more consumer borrowing and spending, businesses are increasingly starved
for credit.
5) The fifth factor spooking markets is Germany's reaction to the euro crisis. The
government unexpectedly resorted to the same 'protective' regulations
employed by the US in 2008, including banning naked short sales of the
securities of select financial houses. In America, this type of measure fanned
widespread suspicion that the government was worried about the prospects of
the firms it selected for special protection. Many German banks have major
exposure to Portugal, Italy, Greece and Spain (a.k.a. the PIGS). It is not
surprising that the German government has tried to shield them from market
punishment, but the measure is likely to backfire…
Top German Bankers See Plot To Funnel Bailout Money To French Banks
From the beginning, it’s been clear that the bailout of Greece would be
a bailout in large part of French banks, owing in part to the fact that
French banks had the biggest exposure. Greece urged to give up
euro THE Greek government has been advised by British economists
to leave the euro and default on its €300 billion (£255 billion) debt to
save its economy. Europe: A Continent Of Lies And Broken
Promises; How The EU Elite Got It Wrong On The Euro
Openeurope.org.uk has put together a paper of the most blatant half-
truths, propaganda, and outright lies, abused by Europe not only over
the past month, but also over the past 10 years, for the entire duration
of the now rapidly collapsing eurozone experiment. US Constitution
May Be Suspended: War, National Emergency and “Continuity of
Government” Peter Dale Scott | A small cabal was able to supersede
the Constitution, and Congress has failed, despite repeated requests,
to do anything about it.
http://www.albertpeia.com/alresume.htm
“Attack against South Korean ship looks like false flag operation” While
international investigators have accused North Korea of sinking a
South Korean patrol corvette in March, China has taken a more
cautious position. Beijing suspects false flag attack on South
Korean corvette WMR’s intelligence sources in Asia suspect that the
March attack on the South Korean Navy anti-submarine warfare (ASW)
corvette, the Cheonan, was a false flag attack designed to appear as
coming from North Korea. Analysts question Korea torpedo
incident How is it that a submarine of a fifth-rate power was able to
penetrate a U.S.-South Korean naval exercise and sink a ship that was
designed for anti-submarine warfare?
american sports hero and cage fighter 'rips out still-beating heart of
training partner'... A U.S. cage fighter ripped out the heart of his training
partner while he was still alive after becoming convinced he was
possessed by the devil, it was alleged today. Jarrod Wyatt also cut out
Taylor Powell's tongue and ripped off most of his face in a brutal assault
that police said looked like a scene from a horror film, officers said. They
claim they found the 26-year-old standing naked over his friend's body with
parts, including an eyeball, strewn around the blood splattered room in
Klamath, California …
Israeli ships stalk pro-Palestinian aid flotilla (AP) Hamas renews offer to
end fight if Israel withdraws (Reuters) Israel rejects call to join anti-
nuclear treaty PAPER: Israel to deploy nuclear submarines in Persian
Gulf... Israel recoils as USA wisely backs UN move...
New records show some lobbyists are top fundraisers for political c...
Nuke-free Mideast The call by the United Nations for a Mideast free of
nuclear weapons offers yet again a new opportunity to bring Israel into the
nonproliferation treaty process while also stopping Iran or any other
regional power from acquiring a nuclear arsenal. The Israelis of course
have denounced the decision by some 200 member signatories of the
Nuclear NonProliferation Treaty (NPT), saying it is discriminatory because
it singles them out … israel plays the jew card! … You can’t make this stuff
up! How totally, but typically israeli, preposterous.
Sell in May and Go Away, Indeed [ I wasn’t kidding; and, I’m still not
kidding when I say: This is a great opportunity to sell / take profits because
there’s much worse to come! ]
http://www.albertpeia.com/alresume.htm
The Worst Money Supply Plunge Since The Depression Means A Double
Dip Is Now A ‘Virtual Certainty’ The stock of U.S. money as measured by
‘M3′ money supply fell to $13.9 trillion from $14.2 trillion during the three
months ending in April. [ This is still an extraordinarily high level but … I
don’t buy it. I believe the printing presses have been working overtime to
pump out ever more worthless fiat currency and with the many trillions of
worthless fraudulent paper still out there and marked to anything. I further
believe the same is being surreptitiously used to supplant the fraudulent
paper, the consequences of which will be devastating, of course, as is
invariably so in depressions in any event. This scenario would also mean
huge fraud accomplis. ] Fiat Money Supply Contracting at Great
Depression Level The bankster operative who helped destroy Glass-
Steagall is back. Larry Summers, Obama’s top economic adviser, has told
Congress to “grit its teeth” and approve a fresh fiscal boost of $200 billion
to keep growth on track, reports the Daily Telegraph. Fiat Money Supply
Contracting at Great Depression Level Kurt Nimmo | The Federal Reserve
stopped publishing M3 figures back in 2006.
Europe: A Continent Of Lies And Broken Promises; How The EU Elite Got It
Wrong On The Euro Openeurope.org.uk has put together a paper of the
most blatant half-truths, propaganda, and outright lies, abused by Europe
not only over the past month, but also over the past 10 years, for the entire
duration of the now rapidly collapsing eurozone experiment. One Out Of
Every Ten U.S. Banks Is Now On The FDIC’s Problem List – Do You Know If
Your Bank Is Safe? Do you know if your bank will be there next month?
For a growing number of Americans, that is becoming a very real question.
“Civil Rights” and Total War William Norman Grigg | The chief
accomplishment of the civil rights movement was not the validation of the
individual rights of those victimized by government-imposed
discrimination, but rather the validation and enhancement of federal power.
US acknowledges mistaken attack on Afghan civilians The US military
acknowledged today killing 23 civilians and wounding 12 others earlier this
year after mistaking them for a convoy of Taliban insurgents. Too Many
Wars Waged The “War on Drugs,” like the “War on Terror,” ends up being
an undertaking with no definable victory in sight. No matter how vigorously
the federal government prosecutes its “war” on drugs, people will still use
drugs. Third Giant Underwater Oil Plume Discovered Today, the
Washington Post is reporting that a third giant underwater plume has been
discovered.
Click here to see the Debt Clock, which is updated every second.
• Total personal debt: $16.5 trillion
• Total mortgage debt: $14.1 trillion
• Total consumer debt: $2.45 trillion
• Personal debt per citizen: $53,483
• Debt held by foreign countries: $4.07 trillion
Forecasts from Dent, Napier, and then Prechter: Depression is Imminent The Dow Jones
Industrial Average will go down to at least 1000, most likely to below 777 which was
the starting point of its mania back in August 1982, and quite likely drop below 400
at one or more times during the bear market.
10 Reasons to Worry About Margin Growth … a good portion of these factors will likely
impact margins by the end of the year. I don’t believe this is adequately factored into
earnings estimates across the board. Given this, I believe we have seen the highs
for the year and next few quarters will be extremely volatile ...
Dow Theorist Richard Russell: Sell Everything, You Won’t Recognize America By The End
Of The Year Business Insider | “Pul – leeze, get out of stocks now, and I don’t give a
damn whether you have paper losses or paper profits!”
The frauds on wall street et als should be criminally prosecuted, jailed, and disgorgement
imposed. If that were so, they wouldn’t be worrying about who wins / loses since those
who fraudulently play, invariably would (and should) pay. If they’re not prosecuted,
everyone loses.
THE FORECASTS:
Harry Dent, Jr. Economy will be in a Depression by 2011
The worst of this next depression is likely to hit between mid-2010 and mid-2013,
especially around early 2011, but if the banking system continues to implode a deep
downturn or depression could begin sometime in 2009 instead of 2010.
Dow will Fall to 3,800 – 4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
Inflation will Increase until mid- 2010 and then turn to Deflation
Interest Rates will Increase
U.S. Dollar will Decline
Housing will Decline by 40 – 60% from Today’s Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012
Russell Napier is the author of the book “Anatomy of the Bear”, a professor at the
Edinburgh Business School and a consultant to CLSA Ltd. which is one of the top
research houses in Asia. Napier’s research indicates (and I paraphrase) that: The S&P 500
will Decline to 400 by 2014 (the Dow 30 to 3800)
The S&P 500 will then undergo a major crash that will see U.S. equity prices bottom at
almost 50% below current levels (i.e. to 400 or less; the Dow 30 to 3800 or less) sometime
around 2014 as Tobin’s “q” drops to 0.3 signaling the end of the bear market, as it has
done at the end of the four largest U.S. market declines in 1921, 1932, 1949 and 1982.
U.S. Treasury Sales Collapse Leading to End of U.S. Dollar as Reserve Currency
Robert R. Prechter Jr. is author of a number of newsletters and books including “Elliott
Wave Principle” (1978) in which he predicted the super bull market of the 1980s; “At the
Crest of the Tidal Wave – A Forecast of the Great Bear Market” (1995) in which he
predicted a slow motion economic earthquake, brought about by a great asset mania, that
would register 11 on the financial Richter scale causing a collapse of historic proportions;
and “Conquer the Crash: You can Survive and Prosper in a Deflationary Depression”
(2002) in which he described the economic cataclysm that we are just beginning to
experience and advised how to position one’s self financially during that period of time.
Depression is Imminent
The Dow Jones Industrial Average will go down to at least 1000, most likely to below 777
which was the starting point of its mania back in August 1982, and quite likely drop below
400 at one or more times during the bear market.
http://www.albertpeia.com/alresume.htm
NASA wants mission to bring Martian rocks to Earth (AP) Why? They
already have that and more:
Launch of secret US space ship masks even more secret launch of new
weapon
http://www.albertpeia.com/UFOetryWeNeverWentToTheMoonPNTV.wmv
"What this means is that Neanderthals are not totally extinct. In some of us,
they live on," Paabo … With regard to that extinction thing, I’d say
they’re still working on it (ultimately, decades, extinction, the
distinction, without a difference). Actually, prior to studying the
compelling subject of Biological Anthropology (Michael Park text), I
too had some misconceptions about the group known as Neandertals
(recent spelling drops the ‘h’) and actually mis-referenced same by the
stereotypical image of members of said clade even as the debate
continues as to whether they are within the species homo sapiens or a
separate species. I believe these to be distinctions without important
differences, so humble the origins and evolution of man truly are.
Parenthetically, I wonder what that anthropological scientist Heidi
Klum thinks on the subject.
Previously I wrote:
FOUND: MISSING LINK BETWEEN APES AND MAN.... These stories, and
the many like it, are old news and I subscribe to the more studied view
that there is no “missing link” per se and in my view they are
distinctions without significant differences. I previously wrote:
To Learn More About From Whence Man Came, This Link's For You
Seeing Aliens Will Likely Take Centuries. Centuries? Not goin’ to happen;
at best, decades.
Go to following pages for above links:
http://www.albertpeia.com/currentopics2ndqtr10108.htm
http://www.albertpeia.com/wallstreetlunacy2ndqtr10108.htm
http://www.albertpeia.com
http://www.albertpeia.com/alresume.htm