Alex Jones published a surprising paper on flexible quantitative (QE3). The information that was exposed is very interesting, and is also somehow telling the world prepare for the worst between the months October-November-December. The paradigm shift is accelerated and has no turning back. The collapse is inevitable. The world will have to replace the dollar. Check here the link:http://www.prisonplanet.com/%E2%80%9Cdollar-index-headed-for-rapid-collapse%E2%80%9D-over-next-3-to-4-weeks.html
The Federal Reserve is a secret society illuminati. This system is privately owned and not owned by the government. The system was initiated by the Rockefellers, Rothschilds, with the sole purpose of gaining control of the world economy. The creators of the Federal Reserve are the founders of the Council on Foreign Relations (CFR), which are interconnected with Freemasonry, the Trilateral Commission, the Bilderbergs, the Club of Rome, the Committee of 300 (which controls the finances, insurance, politics , industry, and religion, and leader of this Committee is Queen Elizabeth), G-8, Knights of Malta, Vatican, World Economic Forum; Rosicrucianism, the Knights of the Garter, the Priory of Sion (they believe to be the bloodline of the Holy Grail bloodline of the antichrist) and others.
The Federal Reserve slashed interest rates and loans to lower levels of history. This type of monetary policy triggered the debt crisis, which erupted after an implosion in 2008. Starting from that point on the dollar has become inflationary. Then this money was injected into the U.S. banking system by devaluing the dollar even more, with the prints, fiat money. It is because of that that QE2 failed. And now in 2012, the Fed again, injected the third round of prints fiat money to banks to defend themselves against multiple crises to come. The Federal Reserve is not insane, she knows very well what he is doing. She wants to destroy the dollar and replace it with the AMERO. This is the political illuminati.
As you see, is all part of a plan!!
If there really is an economic recovery, so why the Fed is still keeping interest rates at almost zero after almost three years, and that keeps measures Quantitative Flexible ?
The logic is that this will spill over into a hyper-inflation!!
Alex Jones is right to say that there will be hyperinflation. The collapse of the dollar is inevitable. The probability is very low in saying that the dollar will again rise. This will hurt exports and mainly OPEC. The result will be a currency crisis. The whole world will opt for other reserve currencies, will opt for gold, will opt for various exchange mechanisms, ie, it will not stop, the dollar will fall like a stone.
So what is the solution? AMERO.
The illuminati plan is to present the AMERO, in the world between November-December as shown in some of the articles posted anterios. See the link here:https://www.facebook.com/groups/globalresearch/permalink/10150674124913652/
I think things are going very fast.
The plan is being followed to the letter, the illuminati plan is functioning !!
We have to wait and see how things will unfold. If these changes occur, the AMERO will be the currency that is circulated electronically on the world market. This means that the next step of the illuminati is World War III.
Are you prepared?
Published by Alexandre Silva
Most people just assume that since things have always been a certain way that they will always be that way in the future. Most people just have blind faith that the people running our government and our financial system know exactly what they are doing and that they are doing their best to take care of us. In fact, once upon a time I was fully convinced of that. When I was a kid I quickly realized that my elementary school teachers really didn’t have the answers, but I had total faith that those running society at the highest levels were “experts” that were looking out for our best interests. As time went on I kept progressing in my education, and by the time I was finished with law school I came to understand that none of our “experts” really know what they are doing, and they are definitely not looking out for our best interests. The blind are leading the blind and we all need to finally admit that the emperor is not wearing any clothes. Unfortunately, most Americans will repeat the mantra of “if that was true I would have heard about it on the news” until it is way too late. Most people are waiting for the “authorities” to tell them what to do instead of thinking for themselves. Sadly, time is rapidly running out and a lot of people are going to end up getting totally blindsided by what is coming.
The man in charge of our financial system, Federal Reserve Chairman Ben Bernanke, is not going to save our economy. He didn’t see the last financial crisis coming, and even after things started falling apart he continued to insist that housing prices would not go down and that we would not have a recession.
Well, it turned out that we had the worst housing crash and the worst recession since the Great Depression of the 1930s.
But still millions of Americans are trusting him to save us this time around.
It isn’t going to happen.
The biggest reason why the U.S. government is 16 trillion dollars in debt is because the system is designed to create gigantic amounts of government debt.
Yes, without a doubt the vast majority of our politicians are corrupt and/or incompetent, but even if we replaced every single one of them our economic problems would still persist until the underlying structural problems were addressed.
Most Americans are pinning their hopes for an economic turnaround on the upcoming election, but the truth is that neither Obama or Romney has a plan that will fix things. That statement is going to upset a lot of people on both sides of the political spectrum, but it is true.
Over the past 40 years the total amount of all debt in the United States has gone from less than 2 trillion dollars to almost 55 trillion dollars. This bubble is going to burst no matter which political party is in power.
Obama and the Democrats have tried to kick the can down the road and extend the party by spending 5.3 trillion borrowed dollars over the past 4 years, but by doing so they have made our long-term problems far worse.
The next wave of the economic crisis is fast approaching and people need to get prepared.
So what do I mean by that?
Well, “preparation” is going to look different for each family, but there are some general principles that apply to almost everyone.
For example, during an economic collapse hard assets are preferable to paper assets.
Also, during an economic collapse necessities become much more important and luxuries become much less important.
For many more tips, please see this article.
For the moment, I want to focus on some of the really bad things that could happen to you if you choose not to prepare for the coming economic collapse….
You Could Find Yourself On The Wrong End Of A Banking Crisis
During a major financial crisis the banking world can change very rapidly.
You could wake up one day and discover that the bank holding all of your money has failed.
You could wake up one day and discover that because Ben Bernanke has printed trillions upon trillions of new dollars to “fix” the financial system your life savings have been devalued by 50 percent.
You could wake up one day and discover that your bank account has been converted over to a new currency that is worth far less than the one you thought you were holding.
Such a scenario may sound unthinkable in the United States (at least for now), but this is the kind of thing that millions of Europeans are extremely worried about right now.
Just check out what is happening in Spain….
After working six years as a senior executive for a multinational payroll-processing company in Barcelona, Spain, Mr. Vildosola is cutting his professional and financial ties with his troubled homeland. He has moved his family to a village near Cambridge, England, where he will take the reins at a small software company, and he has transferred his savings from Spanish banks to British banks.
“The macro situation in Spain is getting worse and worse,” Mr. Vildosola, 38, said last week just hours before boarding a plane to London with his wife and two small children. “There is just too much risk. Spain is going to be next after Greece, and I just don’t want to end up holding devalued pesetas.”
During the month of July alone, 94 billion dollars was pulled out of the Spanish banking system.
So that means that the equivalent of 7 percent of Spain’s GDP was withdrawn from Spanish banks during July.
That is a full-blown bank run, and Spain’s problems are just getting started.
Eventually these kinds of problems will show up in the United States as well.
You Could End Up Losing All Of Your Investments
But at least U.S. bank accounts are federally insured (for whatever that is worth).
When it comes to investments, you better be very sure that the firms you have your money with are not going to collapse on you.
For example, many of you have already heard about how Gerald Celente had losses in the six figure range when MF Global went bankrupt. He has been warning about the coming economic collapse for years and he still got victimized. The following is what he told one interviewer about what he learned from this incident….
“What’s the take away from this? It’s to make sure you have every penny in your pocket. Because just like MF (Global), screwed everybody else. Your also gonna get the shaft, I don’t care who it is. What’s gonna happen when you get a message from your brokerage, from Fidelity or somebody… yeah infidelity. Or how about Raymond James, I don’t care who they are! You have ETFs? Oh, there’s a little error over here, we don’t have your money. We don’t have your positions.““I went to a meeting… and the speaker said ETFs of GLD are supposed to be held by HSBC in a vault in Hong Kong or England some place, and HSBC, this guy said, is the biggest shorter of gold. Well you figure it out! They are the ones that are holding it and they’re shorting it? So the takeaway is to make sure you have every penny in your possession.“
If the funds that you are relying on for your financial future are being held by a brokerage or by an insurance company the truth is that you could potentially lose every single penny during the coming collapse.
The financial institution that you are depending on could suddenly go “poof” and your money could be gone just like that.
Recent legal rulings have made brokerage accounts much more vulnerable. Jim Willie explained why this is true in a recent article….
The critical jump might occur in account thefts from futures brokerage to stock brokerage, which began in November 2011 with MFGlobal, then appeared in July with Peregrine Financial Group (PFG-Best). All private accounts from MFG and PFG have been pilfered, with a blessing of the theft by the courts, seen in the Sentinel Mgmt Group ruling. The federal Appellate court’s August ruling (CLICKHERE) sets precedent for future private segregated account thefts, which were once considered sacred and untouchable. No more in the United States, not in the unfolding of criminality that stretches from USGovt offices to top corporate offices, with blessings sprinkled by the courts. The jump would be a major extension of the Fascist Business Model that nobody talks about. The major financial firms can rely upon this appellate court ruling as precedent, so as to protect their legal right to re-hypothecate client funds in their high risk leveraged positions and loans. It sure would be nice to use my neighbor’s house and car to firm up my casino weekends. Stay tuned to the ongoing Morgan Stanley implosion, which could force the vanishing act of 50 to 100 thousand private stock accounts. The firm is the largest stock brokerage firm in the land. The dreadful impact will be nasty and might awaken the US masses. MFGlobal and PFG-Best surely did not.
Your financial advisers will swear up and down that your investments are safe.
But look at what happened to the clients of MF Global and PFG-Best.
Their investments disappeared like dust in the wind.
This isn’t meant to scare you. It is just important that you understand that the landscape has totally changed.
You Could Lose Your House
During the last recession, millions of Americans lost their homes.
Some of them had poured hundreds of thousands of dollars into their homes and they lost it all.
Why did this happen?
Well, the number one reason is because so many American families are living on the edge. They purchased homes that they could not afford and they just kept living paycheck to paycheck as if nothing bad would ever happen.
But when many of those people lost their jobs, suddenly they could not make their mortgage payments and they lost their homes as well.
Sadly, we appear not to have learned much.
Today, 77 percent of all Americans are living paycheck to paycheck at least some of the time.
You Could Lose Access To Electricity
Why don’t more Americans have a backup source of power?
Most Americans are totally dependent on the grid, and that works well until the grid goes down.
Just look at what is happening down in Louisiana. The hurricane that just roared through was not even that strong, and yet more than 100,000 people are still without power.
The following is from a recent Huffington Post article….
Tens of thousands of customers remained in the dark Monday in Louisiana and Mississippi, nearly a week after Isaac inundated the Gulf Coast with a deluge that still has some low-lying areas under water.
Most of those were in Louisiana, where utilities reported more than 100,000 people without power. Thousands also were without power in Mississippi and Arkansas.
So what would you do if there was a major national crisis of some sort and the grid went down for an extended period of time during the winter?
When Thieves Get Desperate They Will Steal Just About Anything
Over and over it has been proven that when people cannot feed their families they will steal to get what they need.
When things hit the fan here in the United States, we will see widespread looting and robbing. In fact, we are already seeing it happen in Europe. Just check out what is happening in Spain right now….
Unemployed fieldworkers and other members of the union went to two supermarkets, one in Ecija (Sevilla) and one in Arcos de la Frontera (Cadiz) and loaded up trolleys with basic necessities. They said that the people were being expropriated and they planned to “expropriate the expropriators”.
The foodstuffs, including milk, sugar, chickpeas, pasta and rice, have been given to charities to distribute, who say they are unable to cope with all the requests for help they receive. Unemployment in the Sierra de Cadiz is now 40%.
And already crime is rising in many areas of the United States. In some communities thieves are stealing just about anything that is not bolted down.
Just recently, 49 cows that were stolen from a farm in Massachusetts were discovered at an auction in Pennsylvania.
Who would be desperate enough to steal cows?
In other areas of the country thieves are stealing air conditioning units from churches and they are stripping copper wiring out of city street lights.
Are you prepared to defend your property when desperate thieves come knocking?
Shortages Can Happen
During an economic collapse shortages can happen very rapidly. Thanks to the popularity of the “just in time inventory” philosophy, most stores do not have much stuff sitting around in their back rooms. When things go bad, you may not be able to get the things that you need.
Just look at what is happening in Greece. Right now, medicine shortages have become a major problem. The following is from a recentBloomberg article….
Mina Mavrou, who runs a pharmacy in a middle-class Athens suburb, spends hours each day pleading with drugmakers, wholesalers and colleagues to hunt down medicines for clients. Life-saving drugs such as Sanofi (SAN)’s blood-thinner Clexane and GlaxoSmithKline Plc (GSK)’s asthma inhaler Flixotide often appear as lines of crimson data on pharmacists’ computer screens, meaning the products aren’t in stock or that pharmacists can’t order as many units as they need.
“When we see red, we want to cry,” Mavrou said. “The situation is worsening day by day.”
The 12,000 pharmacies that dot almost every street corner in Greek cities are the damaged capillaries of a complex system for getting treatment to patients. The Panhellenic Association of Pharmacists reports shortages of almost half the country’s 500 most-used medicines. Even when drugs are available, pharmacists often must foot the bill up front, or patients simply do without.
You Could End Up Dependent On The Government
Don’t think that it can’t happen.
Today, 46.7 million Americans are on food stamps and more than halfof all Americans are at least partially financially dependent on the U.S. government.
That may be hard to believe, but it is actually true.
During the month of June, the number of Americans added to the food stamp rolls was three times greater than the number of jobs added to the economy.
What a great “recovery”, eh?
If you do not work very hard to prepare for what is ahead right now, you could also end up dependent on the government.
You Could Lose Your Life
Whenever there is a major economic crisis there is a spike in suicides.
And these days Americans are more wrapped up in materialism than ever before. When the coming crisis strikes there are going to be millions upon millions of extremely depressed people.
Suicide is about the most stupid thing that you can possibly do, but when people lose all hope of things turning around a lot of them are going to take their own lives.
It is foolish beyond belief, but a lot of people are going to make that choice. We are already seeing a significant spike in suicides over in Europe due to the economy. The following is from a recent CNBC article….
A growing number of global and European health bodies are warning that the introduction and intensification of austerity measures has led to a sharp rise in mental health problems with suicide rates, alcohol abuse and requests for anti-depressants increasing as people struggle with the psychological cost of living through a European-wide recession.
“No one should be surprised that factors such as unemployment, debt and relationship breakdowns can cause bouts of mental illness and may push people who are already vulnerable to take their own lives,” Richard Colwill, of the British mental health charity Sane, told CNBC.
“There does appear to be a connection between unemployment rates and suicide for example,” he said, referring to a recent study in the British Medical Journal that stated that more than 1,000 people in the U.K. may have killed themselves because of the impacts of the recession. “This research reflects other work showing similar rises in suicides across Europe.”
This is why I stress that preparation is not just about physical things like money and food.
We all need to get mentally, emotionally and spiritually prepared for what is ahead.
If we understand what is happening and we come up with a plan to go through it, we will be in far, far better position to endure the coming crisis than people that are totally blindsided by it.
For the moment, most people will just go on with their lives as if nothing is wrong because times are still quite good.
But time is running out. In fact, we might not have much time left at all before the next major downturn.
A recent CNBC article entitled “It’s Coming: One Pro Sees Big Stock Selloff in 10 Days” detailed how some analysts are warning of a major stock market decline later this month….
An equity strategist for Goldman Sachs is predicting a September selloff that happens so rapidly he is telling clients to protect themselves before Sept. 14.
The reason: Market disappointment over key meetings of the European Central Bank and Federal Reserve—all within the next 10 days.
September may turn out to be a bad month for stocks or it might end up being just fine.
But one thing is for sure.
Time is running out.
Are you ready?
August 22, 2012 – ECONOMY – The odds the United States will slip back into recession next year have risen, ratings agency Standard & Poor’s said, citing risks from the European debt crisis and budget tightening at year-end. The US ratings firm raised the chance of the US falling into recession to 25 percent, up from a 20 percent chance estimated in February, as the world’s largest economy struggles to recover from a severe 2008-2009 slump. It also pointed to the looming possibility of the government being forced by existing law to severely cut spending and increase taxes on January 1, the so-called fiscal cliff that would crunch the economy. “Economic activity has downshifted sharply from earlier this year,” S&P said in a report on North American credit conditions amid global uncertainty, dated August 20. “At the same time, possible contagion from the European debt crisis, the potential so-called ‘fiscal cliff’, and the risk of a hard landing for China’s economy have added greater uncertainty to US economic prospects,” it said. In the second quarter, the world’s largest economy grew at a 1.5 percent annual rate, a sharp slowdown from late last year as unemployment remained stuck above 8.0 percent. S&P underscored concern about the impact of a recession in the 17-nation eurozone, whose economy contracted 0.2 percent in the second quarter. S&P forecast a 0.6 percent contraction this year. “A double-dip recession in Europe that transmits financial turmoil to the US could push it into recession,” the agency said. However, S&P said its baseline scenario for the US economy — remained “modest growth,” projecting a gross domestic product expansion of about 2.1 percent for this year. S&P also said it expected that politicians would agree before year-end to change the current severe budget cut and tax hike mandates to avoid the fiscal cliff fate. However, it said, “We do not believe the US and European economies will improve substantially in the next year.” –Yahoo News
If a major economic crisis hit us right now, the vast majority of Americans would be extremely vulnerable. According to a recent CareerBuilder survey, 40 percentof all Americans live paycheck to paycheck all of the time, and 77 percent of all Americans live paycheck to paycheck at least part of the time. This is why there was such a problem with foreclosures during the last recession. When millions of Americans suddenly lost their jobs many of them quickly found that they were unable to pay their mortgages because they had no financial cushions. For decades, Americans have been trained that it is okay to get into debt up to their eyeballs and live paycheck to paycheck because times will always be good and jobs will always be easy to get. Unfortunately, times have changed and many Americans do not realize that what has worked in the past is not going to work any longer. Our economy is completely and totally falling apart, and economic success is no longer defined by whoever is able to accumulate the most toys. In this economic environment you could lose your job at literally any moment. Anyone that does not have a sizable emergency fund is flirting with disaster.
So how did we get here?
Why are 77 percent of all Americans living paycheck to paycheck at least part of the time?
Not Enough Jobs
Well, the truth is that the U.S. economy simply does not produce enough jobs anymore.
Everyone that wants a job is not going to be able to have one.
Many were hoping that once the last recession ended that we would see a huge rebound in the employment numbers but that has not happened.
There are lots of reasons why this is happening. One of them, of course, is thatmillions of jobs are being shipped out of the country. When you consider how fast our jobs are being outsourced, it is actually a miracle that things in this country are not even worse.
When you total up all working age Americans that do not have a job in America today, it comes to more than 100 million. Yes, many of them are parents that want to stay home with the kids or students that are enrolled in college, but still that is an absolutely staggering number.
And even the official unemployment numbers are starting to look quite gloomy again.
And if you do lose your job in this economic environment, it may be a long time before you are able to get another. Today, the average duration of unemployment in the United States is nearly three times as long as it was back in the year 2000.
The Quality Of Our Jobs Is Declining
Not only is our economy not producing enough jobs for all of us, the quality of the jobs that are being produced continues to steadily decline.
That is a shocking figure.
The number of low paying jobs continues to increase, fewer jobs are offering health insurance and other benefits, and very few private sector jobs offer retirement benefits at this point.
In America today, one out of every four workers makes ten dollars an hour or less.
But you can’t support a family on 10 dollars an hour.
You can’t even come close.
Sadly, these low paying jobs continue to become a larger part of our economy.
30 years ago, less than 30% of all jobs in the United States were low income jobs.
Today, more than 40% of all jobs in the United States are low income jobs.
That is the wrong direction.
And those just entering the workforce are being hurt the worst.
As the quality of the jobs goes down, so does the wealth of average American families.
Back in 2007, 19.2 percent of all American families had a net worth of zero or less than zero.
By 2010, that figure had risen to 32.5 percent.
And when you look at median net worth, it also tells a story of declining wealth for American families.
According to the Federal Reserve, the median net worth of American families dropped “from $126,400 in 2007 to $77,300 in 2010“.
Needless to say, the middle class in America is being shredded.
Millions are dropping out of the middle class every single year.
So what is happening to them?
Well, they are joining the ranks of the poor and are becoming dependent on the government.
If you can believe it, right now more than 100 million Americans are enrolled in at least one welfare program run by the federal government.
Yes, that is actually true.
Remember, more than 46 million Americans are enrolled in the food stamp program right now and more than 54 million Americans are enrolled in Medicaid.
And those are just 2 of the almost 80 different “means-tested welfare programs” that the federal government runs.
An Increasingly Angry Population
It turns out that most Americans don’t like to be poor.
In fact, most Americans are desperately wanting things to go back to the way they used to be in this country.
The American people are steaming mad right now, and a whole host of recent polls and surveys have shown this.
For example, at this point Congress only has a 10 percent approval rating. That matches an all-time low set earlier this year.
That is a crazy number.
And most Americans expect the economy to continue to decline. According to a recent Gallup survey, 61 percent of all Americans believe that the U.S. economy is getting even worse.
But what can the U.S. government do?
It is already spending more than a trillion dollars more than it brings in.
We are stealing billions of dollars from our children and our grandchildren every single day and yet that is still not enough to get our economy going again.
We desperately need to change course, but neither major political party has any intention of doing that.
So we are headed for disaster.
The following is what renowned investor Jim Rogers had to say during a recent interview….
As far as I’m concerned, the election is irrelevant. One [candidate] happens to be from Boston and one from Chicago, and whoever wins, their friends are going to do well, but other than that America is not going to do well. There’s very little difference in any of these guys. None of them understands the problem. These are the guys that got us into trouble. You expect them to get us out?
And he is right.
We are living in the greatest debt bubble in the history of the world and we are suffering from a complete and total lack of leadership at the top.
Recently, a team of top economists and analysts carefully studied the global economic system, and what this team of experts discovered is quite chilling….
And according to these experts – who have presented their findings to the United Nations, the UK Parliament and a long list of world governments – the catastrophe may happen well before Americans hit the polls in November.
“What this pattern represents is a dangerous countdown clock that’s quickly approaching zero,” said Keith Fitz-Gerald, the Chief Investment Strategist for the Money Map Press, who predicted the 2008 oil shock, the credit default swap crisis that helped bring about the recession, and the Greek and European fiscal catastrophe that is still wreaking havoc until this day.
“The resulting chaos is going to crush Americans.”
Other members of the team were extremely alarmed by what was discovered as well….
Another member of this team, Chris Martenson, a global economic trend forecaster, former VP of a Fortune 300, and an internationally recognized expert on the dangers of exponential growth in the economy, explained their findings further:
“We found an identical pattern in our debt, total credit market, and money supply that guarantees they’re going to fail,” Martenson said. “This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.”
“And what’s really disturbing about these findings is that the pattern isn’t limited to our economy. We found the same catastrophic pattern in our energy, food, and water systems as well.”
Most Americans do not realize this, but we are heading for an economic disaster of unprecedented proportions.
It is going to be extremely painful and it is going to shake millions of Americans to the core.
Get ready while you still can, because time is running out.
After a wildly volatile week in the markets last week, which saw huge gains on Thursday and Friday, the coming week promises to be a massive one for the entire global economy.
That’s because there’s going to be tons of economic data, and potential action from the world’s most important central banks.
Tomorrow, Monday, is actually pretty quiet, but starting Tuesday it will be non-stop action all the way through Friday.
In the US on Tuesday are several important numbers: Personal Income, Consumer Sentiment, Chicago PMI, and the Case-Shiller home price report. Case-Shiller should be particularly interesting, given the growing belief that home prices are in the process of bottoming.
Then on Tuesday night we get the start of the monthly ritual of PMI day: When all the big economies around the world have their latest PMI readings unveiled on the first of the month. China and South Korea will kick things off, but the numbers will go all night, through Europe, and then of course into the US, when the ISM will be released at 10:00 AM ET on Wednesday.
Also on Wednesday: The ADP jobs report, construction spending, and auto and truck sales.
And of course, the Fed makes its next policy announcement.
The next day, Thursday, we’ll get decisions from the BoE and the ECB (which is suddenly the center of the world, as more hints emanate out of Europe that the ECB may do something to suppress peripheral borrowing costs). In the US on Thursday we get initial claims and Factory Orders.
Finally on Friday comes the Big Kahuna of US economic data: The Jobs Report. Expectations are for a measly 100K new jobs, though that would actually be higher than the previous month’s 80K. Later that day comes the ISM services report.
So yes! Huge week of economic data and central bank action.
Economic growth has stalled once more in the States, with statistics released on Friday from the Commerce Department coming up too shy to suggest that the country is close to recovery three years after the recession was officially put to rest.
The latest numbers out of Washington confirm that the country is experiencing economic growth at a grueling pace that is simply too sluggish to trigger a turn around by the year’s end: from April through June, the US economy grew at an annual rate of a mere 1.5 percent, down from the first quarter’s rate of 2 percent.
“The main take away from today’s report, the specifics aside, is that the U.S. economy is barely growing,” BTIG LLC strategist Dan Greenhaus tells the Associated Press. “Along with a reduction in the actual amount of money companies were able to make, it’s no wonder the unemployment rate cannot move lower.”
Economists for the AP add that growth at or below 2 percent isn’t enough to bring the unemployment rate down, revealing that the issue of economic recovery and stagnant job growth will continue to be a problem in the country, and especially for President Barack Obama. The commander-in-chief has been targeted with repeated attacks from his opponents who accuse him of doing nothing to turn the country’s jobs market around. With the president up for reelection in less than four months, he faces an uphill battle unless numbers can miraculously turn around in the interim. Experts aren’t optimistic, though: the AP also reports that economic growth at or below 2 percent won’t be enough to lower the unemployment rate by the time the Department of Labor publishes their next report.
With the economy growing at an annual rate of only 1.5 percent, Cal State Channel Islands economist Sung Won Sohn tells the Los Angeles Times that it translates to fewer than 100,000 new jobs being created at a monthly pace.
“That’s not enough to take care of new workers coming into the labor force, let alone rescue the unemployed,” Sohn tells the Times.
It could, however, be the catalyst that finally causes the Federal Reserve to implement a new policy. Economists have increasingly suggested in recent weeks that the Fed could launch another round of quantitative easing in an attempt to spur growth. If all else fails, that very well might be the next step.
“If the economic data next week continues [to be weak], then probably the market can keep their hopes up that [the] Fed would eventually resort to more stimulus,” Peter Cardillo of Rockwell Global Capital tells the BBC.
Last week Federal Reserve Chairman Ben Bernanke told Congress, “We are looking very carefully at the economy, trying to judge…whether or not the economy is likely to continue to make progress towards lower unemployment.” If a positive outlook appeared unlikely, warned Bernanke, the bank would “obviously…have to consider additional steps.”
The Fed is scheduled to meet next week and are likely to consider the latest Commerce Department figures when readying a plan.
Global leaders have tried just about everything that they can think of, but the coming global financial catastrophe continues to march steadily toward us. We have seen “stimulus packages”, quantitative easing, bond buying, interest rate cuts, emergency economic summits, bailout packages for banks, bailout packages for entire nations, “Operation Twist“, unprecedented government intervention in business and massive amounts of new government debt and yet nothing seems to revive the global economy. In fact, it looks like we are rapidly heading into the second dip of a “double dip recession“. Unfortunately, many believe that this next dip will be more like a full-blown depression. All over the world, top economic experts are warning that we are facing an unprecedented crisis of debt and insolvency that will result in a global financial catastrophe. The eurozone is drowning in debt, the U.S. government is drowning in debt and major banks all over the globe are drowning in debt. Global authorities have been trying to patch the system together and keep it going, but the incredible damage that all of this debt has done is now becoming apparent to everyone. The global debt bubble that has fueled prosperity in the western world for the last several decades is getting ready to burst, and when that happens the chaos that will result will be absolutely horrifying.
The following are 19 warnings about a coming global financial catastrophe….
“Worse because like 2008 you will have an economic and financial crisis but unlike 2008, you are running out of policy bullets. In 2008, you could cut rates; do QE1, QE2; you could do fiscal stimulus; you could backstop/ringfence/guarantee banks and everybody else. Today, more QEs are becoming less and less effective because the problems are of solvency not liquidity. Fiscal deficits are already so large and you cannot bail out the banks because 1) there is a political opposition to it; and 2) governments are near-insolvent – they cannot bailout themselves let alone their banks. The problem is that we are running out of policy rabbits to pull out of the hat!”
2. John Embry….
“This situation is unprecedented. The world has never, ever been in a condition like this. As a result, anyone that is complacent here and says, ‘This is just business as usual,’ they are dead wrong and will be shocked at the chaos that is heading our way.”
3. Jim Rogers….
“Just because now you have a way to get them (the banks) to borrow even more money, this is not solving the problem, this is making the problem worse”
4. Prominent Spanish politician Felipe Gonzalez….
“We’re in a situation of total emergency, the worst crisis we have ever lived through”
You know, this deal makes things worse not better. A hundred billion [euro] is put up for the Spanish banking system, and 20 per cent of that money has to come from Italy. And under the deal the Italians have to lend to the Spanish banks at 3 per cent but to get that money they have to borrow on the markets at 7 per cent. It‘s genius isn’t it. It really is brilliant.
So what we are doing with this package is we are actually driving countries like Italy towards needing to be bailed out themselves.
In addition to that, we put a further 10 per cent on Spanish national debt and I tell you, any banking analyst will tell you, 100 billion does not solve the Spanish banking problem, it would need to be more like 400 billion.
And with Greece teetering on the edge of Euro withdrawal, the real elephant in the room is that once Greece leaves, the ECB, the European Central Bank is bust. It’s gone.
It has 444 billion euros worth of exposure to the bailed-out countries and to rectify that you’ll need to have a cash call from Ireland, Spain, Portugal, Greece and Italy. You couldn’t make it up could you!
6. Peter Praet, chief economist at the European Central Bank….
“The eurozone crisis is now much more profound and fundamental than at the time of Lehman”
7. Graham Summers….
Angela Merkel is up for re-election next year. There is no way on earth she’ll opt to let Germany get dragged down by the EU. She’s even said she will not allow Eurobonds for “as long as [she] lives.”
This is not empty rhetoric. This is fact. Germany has expressed its intentions dozens of times in the last month: NO Eurobonds and NO guarantee of EU banking deposits.
The reasons for this are simple: EITHER option renders Germany insolvent. It’s already teetering on insolvency to begin with. But to allow Eurobonds or some kind of guarantee of the EU banking system to occur on top of the money Germany has already spent propping up the EU will take Germany down.
The German economy is already slowing. Most Germans are fed up with the Euro. Merkel would rather die than let her country become like Greece (which the creation of Eurobonds or EU deposit guarantees would most assuredly result in).
So Germany is tapped out as well. This leaves… NOBODY.
Again, Europe is out of money. End of story. This is the truth and investing based on the idea of some magical bailout occurring is like investing on Hank Paulson’s Bazooka policy for Fannie and Freddie (three months later the markets imploded).
8. Peter Schiff….
“I think we’re still in a depression. I think it’s going to be with us for years and years. It could be five or ten years; it could be longer, depending on how long it takes us to recognize our mistakes so that we can begin to reverse them”
9. New York Times columnist Paul Krugman….
“There are a lot of ugly forces being unleashed in our societies on both sides of the Atlantic because our economic policy has been such a dismal failure, because we are refusing to listen to the lessons of history. We may look back at this thirty years from now and say, ‘That is when it all fell apart.’ And by all, I don’t just mean the economy.”
10. IMF Managing Director Christine Lagarde….
“In the last few months, the global outlook has been more worrying for Europe, the United States and large emerging markets”
11. Andrew Kenningham, senior global economist at Capital Economics….
“With euro break-up risk likely to rise in the second half of the year and monetary policy looking increasingly impotent, things could get much worse before they get better.”
12. Zero Hedge….
“We now have 80% of the world posting a contraction in industrial activity.“
13. Lakshman Achuthan, the co-founder of the Economic Cycle Research Institute….
“What we said back in December was that we thought the most likely start date for the recession would be in Q1, and if not then, by the middle of 2012. I’m here to reaffirm that.
In other words, I think we’re in recession already. As I said back there, it’s very rare that you know you’re going into recession when you’re going into recession. It often takes some big hit on the top of the head. In the last recession it took Lehman to wake people up. In the recession before it took 9/11.
When you look at the data today, you see industrial production is off of its April high. Manufacturing and trade sales – much broader than retail sales – is off of its December high.
Real personal income growth, which doesn’t always go negative during a recession, has been negative for several months.”
14. Priya Misra, head of U.S. rates strategy at Bank of America Merrill Lynch….
“The global economy is in the midst of a synchronized slowdown, as reinforced by the recent spate of weak economic data”
15. Chris Williamson, the chief economist at Markit….
“Companies are clearly preparing for worse to come, cutting back on both staff numbers and stocks of raw materials at the fastest rates for two-and-a-half years”
16. Howard Archer, chief European economist at IHS Global Insight….
“With the eurozone likely having suffered appreciable GDP contraction in the second quarter and in grave danger of contracting again in the third, and with eurozone business confidence generally low and fragile, the likelihood is that the eurozone unemployment rate will move significantly higher over the coming months”
17. Karl Denninger….
If we keep deficit spending we are simply debasing the purchasing power of the common man in a puerile attempt to pacify the people and avoid holding the financiers who were responsible for this debacle, including Bernanke, Greenspan, Paulson and Geithner along with both Obama and George W Bush to account. This attempt is mathematically doomed to fail as median family income has not moved which means that we’re shifting an ever-greater part of the population to social programs like food stamps and other handouts while the taxpaying productive population continues to shrink.
This is exactly how Greece and Spain went down the bowl and we’re right behind them unless we stop this crap right now.
We cannot “bend the curve” or look toward the “intermediate term”; that was exactly the siren song in Europe and it has led to catastrophe as “tomorrow” never comes! The “intermediate term” is usually defined as three to five years out — we heard of the “intermediate term” in 2008 but now it’s 2012 and none of the retractions in that spending have occurred — the claim that they would be undertaken was a lie.
We must stop the stupid right now!
Arithmetic is a bitch. It’s politically agnostic and cold-hearted. Exponential growth, as I have repeatedly pointed out, is utterly unsustainable over the long term. It doesn’t matter if you want these sorts of schemes to work or not; the longer you continue to pretend that there is some path forward that achieves these goals the worse the outcome is when you discover that you’re wrong.
“LEAP/E2020 has never seen the chronological convergence of such a series of explosive and so fundamental factors (economy, finances, geopolitical…) since 2006, the start of its work on the global systemic crisis. Logically, in our modest attempt to regularly publish a “crisis weather forecast”, we must therefore give our readers a “Red Alert” because the upcoming events which are readying themselves to shake the world system next September/ October belong to this category.”
“The Bond market is finished, We all knew that there is a bubble in the bond market, This is the coup de grace that will not pop the bubble, but make it explode with the force of a thousand suns. America will be broke and barren in a blink of an eye! These are two events that I have been warning about are ones that will end your life on this planet as you know it. Your cash will be worthless, your country at a standstill, No money, No food, no essential services, AND WHEN IT ALL STOPS….. YOU STOP.”
So what do you think about these warnings?
Are you concerned that a global financial catastrophe is coming?
Please feel free to post a comment with your opinion below….
July 1, 2012 - Honey I Lost $40 Billion: Pictured above, Bank of America Chief Executive Brian Moynihan, right, and his predecessor, Kenneth Lewis, shown in 2009. Bank of America Corp. thought it had a bargain four years ago when it paid $2.5 billion for tottering mortgage lender Countrywide Financial Corp. But the ill-fated decision has already cost the Charlotte, N.C., lender more than $40 billion in real-estate losses, legal expenses and settlements with state and federal agencies, according to people close to the bank.
“It is the worst deal in the history of American finance,” said Tony Plath, a banking and finance professor at the University of North Carolina at Charlotte. “Hands down.” Follow the link below for the biggest blunder in acquisition history.