Typically, I start each morning with a discussion of the day's "horrible headlines." I could delve further into the pathetic U.S. labor situation - in which "recovery" is purported despite obvious evidence stating otherwise; or the fact that 80% of college seniors can't find a job, in many cases earning less than the minimum wage. Sure, Obama proposed yesterday to partially "bail them out" - but guess who's going to be on the hook for the $120+ billion of delinquent student loans when this new executive order goes into effect in December 2015? For that matter, who's going to pay for upcoming Highway Trust Fund "fiscal cliff" - which, if not funded by freshly printed money could yield hundreds of thousands of job losses? And who's going to employ the tens of thousands of people who will lose their jobs when mandatory minimum wage increases are instituted - let alone the Obamacare insurance mandate; as cumulatively, America's plunge into socialism further implodes an already dying economy? Frankly, no chart better describes the historical wealth inequality created by the Federal Reserve than the below depiction of New York's real economy; that is outside the "1%" that receive free Wall Street money.
To do so, we take you back to the aforementioned "breaking" of the system in 2008. Below are the two charts that say it best, although dozens of others would tell the same story. The U.S. "monetary base" and Federal Reserve balance sheet are but two examples of reckless, unfettered money printing gone wild; which if combined with unreported "off balance sheet" activities like "secret loans," swaps, and derivatives would appear dramatically worse.
Unrelenting "recovery" propaganda was expanded as well; but as you can see below, the result has been decidedly unfavorable. In fact, other than the global food price index falling mildly from its 2011 all-time high, essentially all other variables are dramatically worse. That said, even this statistic can be misleading; given that in the U.S. alone, we this year have seen beef, chicken, milk, shrimp, pork, bacon and countless other food commodities hit all-time highs as potentially catastrophic droughts threaten vital agricultural output in both California and Brazil.
Well, the answer is quite simple; as starting with September 2011's "Operation PM Annihilation I" - when PMs were attacked simultaneous with the Swiss National Bank pegging the Franc to the dying Euro (in what will long be remembered as the "shot heard round the world" in the "final currency war"), we have experienced the most violent market "management" of our lifetimes. Shortly afterward, the Mario Draghi promised to do "whatever it takes" to save the Euro (culminating in last week's decision to reduce deposit rates to negative territory); followed by the Fed's "QE3" and Japan's "Abenomics," as the terminal phase of the four decade mad experiment in global money printing was launched.
survival will be far more important than profit. However, if you have protected yourself before this happens, you will have the best chance at weathering this generational financial storm.
Hopefully, you are starting to realize the "point of no return" has in fact been passed; and thus, no matter what TPTB attempt going forward, they must fail. Every fiat currency regime in history - 599 to be exact - has failed and this - global - regime will be no exception.