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miércoles, 5 de julio de 2017

Wake up America.


We are living in a world of fake news, fake presidents and fake reality. But nothing is worse than the fake economic output and out reality investment environment.  The speculative investments into stocks, bonds, and other assets are rapidly accelerating. In the last two years, consumer electronics stock index; the entire hotel sector; the computer hardware sector and even railroad stocks are going way up to 100%. Apple Inc has already gone 35% since the beginning of this year. That means the company is overvalued at least $200 billion more than it was worth just a few months ago.  Does it make sense to you?

Cryptocurrencies like Bitcoin and Litecoin have gone insane. Some new cryptocurrencies have appeared and had gains of over 1,000 %. While the real things and commodities are being ignored and oil has struggled mightily.

Real estate has suddenly taken off: Commercial real estate prices are reaching record levels as if people have forgotten what caused the previous crisis. Average home prices have been climbing steadily.

Of course, the media sells the idea that is due to investors diving into the market. But does it make sense to you that billions are being invested in companies that have never made a cent in profits?
The powers to be are driving this bull market with the great promise that there are massive amounts of money to be made by the Midas touch of Donald J Trump. That is the biggest con and the biggest lie of all the fakes in America. But there are forces out of the control of the elite that will bring chaos, losses and destruction of massive wealth. The market is already overvalued.

I was one of the very few people to predict correctly in 2004 what will happen due to the Fannie Mae and Freddie Mac collapse.  To this day no one admits that the real cause of the 2008 collapse was due to the inability to sell bonds of Fannie and Freddie.

It was the shortage of Chinese and Russian money coming into the USA that causes the credit mess. The result was the enormous losses in the U.S. mortgage market. Close to $3 trillion dollars and the Federal Reserve was forced to print massive amounts of dollars out of nothing. They pretended to blame subprime lending, which was absolute nonsense because subprime lending was only 3% of the loans. Yet that lied was quoted by all the media.

That is the tragedy that is happening again. People do not seem to get it. Money is being printed out of nothing and this time is not the bonds of Freddie and Fannie but US bonds and securities that nobody wants. In other words, the world’s major central banks have embarked on an unprecedented monetary experiment, printing more than $25 trillion and backing their currencies with risky mortgages, corporate debt, and even highly volatile American tech stocks. Debt and money out of nothing everywhere. There is no value at all, there is no real money. Everybody is playing on a casino of massive scale and the result is the total death of the economy. It is all a fantasy that will come down like an avalanche from the heavens of false promises. That is always the end result for money out of nothing.

For the past few years, stocks and other assets have been ripping higher, propelled by governments’ central banks, sovereign wealth funds, corporate buybacks, and value-ignoring index-fund investors.
There have hardly been major losses in the last year. Stocks are soaring and Trump has become a cheerleader claiming to be responsible for the results. I hope people realize that speculators are pouring money in marijuana stocks and cryptocurrencies, many of which are up more than 1,000% over the past year. It is madness. It is the fact that banks are paying no interest, and money is virtually free to borrow, it turns us all into borrowers and speculators, chasing returns in the stock market and other speculations. That is key to understand. All of this is speculation.

The government has done NOTHING to stimulate the economy haven’t led to any real increase to wages or wealth. Deregulation only takes away the protections that were established to avoid such massive speculation and we all know the results of 1929, but people are ignoring all the basics of a real economy.

What is really happening is that the most enormous credit bubble in the history of the world is being created. The real reason behind such a wave of speculation in investment assets as we have never seen before. But we must understand is all fantasy.

It is a tragedy that people do not understand the fallacy of what our leaders have done to our money and our financial system. By manipulating its value and controlling its price by controlling interest rates, they’ve simply engineered another huge credit bubble and a speculative bubble. People must awaken to the reality that the whole market is as valuable as any digital currency is. These policies are sending prices for stocks, bonds, real estate and other assets soaring and the only true end result is the most massive economic disaster the world would ever see.

All the rules of business, investing, purchasing, saving, capitalism, and job creation have been turned upside down. We are now living in a world where the “normal” rules no longer apply. By lowering the cost of borrowing money to essentially zero, the Federal Reserve (and the world’s other central banks) have been financing a massive bubble and everything that goes against true assets, true labour and against the hardworking people of the world.

Can you honestly believe that Facebook, WhatsApp, snap chat and so forth have any intrinsic value? They are free apps making a buck out of advertisement but when the world collapses who is going to care about any of those apps?.

Everybody is selling the same thing. Google, facebook, twitter, youtube, etc, they all are selling advertisement and people simply ignored it. I honestly very seldom if ever I bother opening any of the advertisements in any of those social media.

America’s leading tech firms have been using this virtually free capital to build new businesses that have very low (or even zero) labour costs. These “virtual” businesses are transforming entire sectors of our economy and wiping out the middle class.

It’s insanity to see companies that are growing on a massive scale, massive sales growth despite the fact that they have produced virtually zero profits. It is rather absurd that companies that are making no profits at all could actually invest more than 5-times what they made in profits into growing its core business and building new businesses just to push their stock market. They are the Seinfeld show on steroids. They sell nothing, the whole enterprise is about nothing and will end up in nothing.
Of course, the argument is that it is great for consumers, for the company’s founders, and shareholders. But it is not good for the real economy. Their growth is just adding a few servers.

The end result is that the retail industry and malls who have to staff each store and carry all the expenses can't possibly compete with Alibaba, Ebay, Amazon. Their demise will bring severe consequences to the entire economy.

Trump is applauding his supposed deals but never mentions the facts that close to 9,000 retail stores will close their doors in 2017. That’s four times as many as closed last year, and would far surpass the closings in the collapse of 2008.

It will take only a very small crisis to make everything collapse. Companies that depend on their stocks and virtually free access to unlimited capital are driving the frenzy but they will never make a profit.

Companies like Netflix have borrowed $3 billion to finance their growth. They’re deep in debt and losing millions per year. Deere &Co is holding $38 billion in loans and leases. Does it sound like a good idea to you that management is betting the company (founded in 1837) on the ability of farmers to repay $38 billion in tractor loans? If there is an eruption of Yellowstone the entire company disappears.

The only competitive advantage of the United States against the world is that the Federal Reserve directors are mindless psychopaths that are totally insane.  They have been printing money and manipulating interest rates to artificially low levels for more than 90 straight months.
The whole economy of the United States is a great bubble. Americans have a debt of $67 trillion dollars. The debt of $20 trillion that is only the central government’s debt. But as if that did not matter whatsoever Americans borrowed more than $1 trillion to purchase new cars, much of it in the form of risky “sub-prime” loans. Billions of dollars’ worth of these loans will never ever be paid back.

College students have also borrowed more than $1 trillion. Instead of the government stepping in to present real solutions the prices of education have soared and another credit bubble has been created and it will pile up on the total disaster to be unleashed.

Total household debt in America just hit a record high but what are central banks around the world doing? Here comes the insane part. They are buying the useless never to be paid, almost zero interest rates US securities and bonds. They are the ones buying massive quantities of stocks, all around the world. But all those companies are going to crash and burn and what is going to happen then?
Today, the Swiss central bank owns more shares of Facebook than Mark Zuckerberg, the company's founder. When the world's wealthiest, most conservative, and most risk-adverse investors open a Swiss bank account to hold the world's best currency – the Swiss franc –they're really buying U.S. stocks in a company that will die just like every single dot. Com company died many years ago.
The Swiss central bank now owns $134 billion worth of equities in markets around the world. That makes it one of the largest investors in the entire world – a tiny country of just over 8 million people.
Central banks began buying stocks because they virtually ran out of bonds to buy. Japan’s central bank now owns more than 10% of every single company in the Nikkei index and is on course to become the largest owner of more than 55 different companies.

Central banks' free-money policies have now permanently linked the value of every currency in the world to the value of the stock market. As a result, the value of every currency in the world has been turned into a ticking time bomb.

This is why the next financial crisis won't just hit retail commercial banks. It will also hit the central banks. In other words, the national banks of governments around the world. What is the problem with that?

No bailout. Because everyone will be broke and that is what we confront.

Every single person on the planet will be affected. Every single currency in the world is now tied to stock and bond prices. We are living the prelude before the worst global financial collapse.

It will be like nothing we’ve ever seen in the world.  It is an unsustainable system and no matter what happens it will collapse.  The imbalances caused by paper money have grown exponentially bigger over the past decade. And the "wobble" in the system is becoming more and more severe. People are desperate and that is why they are betting in cryptocurrencies and they will be as useless as any other paper money. In fact, how are they going to access if even internet companies will be broken?
Our entire global economy runs on nothing more than the "faith" and "credit" of the United States government.  Trump is making everyone lose faith in America and Trump is the catalyst for the complete destruction of America. Meanwhile, there's nothing but corrupt and mindless leaders that have done nothing to solve the real problems of the economy. They simply have allowed the Federal Reserve to continue printing money out of nothing.

Do you why some people called it the Luciferian agenda? Well, let me reveal to you the real reason. If Lucifer wanted to cause despair, destruction, poverty and collapse what better way than controlling the economy. Therefore, everyone serving this evil agenda is your enemy and should be destroyed.
Let me show you the insanity of what the United States is doing.


How can a country spend trillions upon trillions in defence instead of education, health care, infrastructure, business creation and industry?

Just imagine for a second if Trump would have decided to spend those 54 billion that he has assigned for defence and those 36 billion he has asked for Israel and instead would have decided to spend on infrastructure. Then miners, metal factories, concrete, sand, construction companies, engineering firms, contractors, asphalts companies and so many others would have benefited. With real job creation, there is spending on food and products, taxes are paid, homes are bought and so forth and so on. Instead, Trump spends his days watching Fox, CNN and fighting a senseless absurd exchange of lies, accusations and stupidity.

Show me any time in history when a country with the world's largest military and the world's biggest debts begins printing money to pay its bills, just like America is doing today. Instead of caring for the people they are looking for enemies to destroy while destroying itself from within.
Why is nobody doing anything?

Why are the politicians approving the most insane programs, budgets and pretend they care for the American people? Is it not Donald Trump who is giving even more money to the military? Do you feel safer now than before? What benefit is to you that someone gets killed in Iraq, Syria or Afghanistan. Wake up.


Between August 21 to September 23, 2019, the world will experience the most devastating collapse that will destroy the United States as a nation. Unless something is done. 

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