Thursday, January 23, 2014

Operation Bernanke.

The average American consumer met their Waterloo in 2008. Bernanke’s mission was to save bankers, billionaires and politicians. . . .

Bernanke and his financial elite owners have been able to rig the markets to give the appearance of normalcy, but they cannot rig the demographic time bomb that will cause the death and destruction of our illusory retail paradigm. . . .

* * * *

. . . The debt fueled orgy has run out of steam. All that is left is the largest mountain of debt in human history, a gutted and debt laden former middle class, and thousands of empty stores in future decaying ghost malls haunting the highways and byways of suburbia.

The implications of this long and winding road to ruin are far reaching. Store closings so far have only been a ripple compared to the tsunami coming to right size the industry for a future of declining spending. . . . Real estate developers will be going belly-up and the banking sector will be taking huge losses again. I’m sure the remaining taxpayers will gladly bailout Wall Street again.[1]

And don't forget inflation-as-government theft policies have diminished the value of liquid assets at all times post-1913[2] and continue to do so now at a rate that fedgov will not honestly report. Plus, extremely low interest rates have driven money out of savings accounts into the stock market, creating a government-induced bubble which will crash eventually, as all bubbles do. That would be bad in a strong economy, which ours isn't.

Therefore, large non-Wall Street investor losses on top of large-scale evaporation of retail economy and supporting elements are in our future. But Obama still talks about our "recovery" and we must conclude either this is what he and his superiors intend or they are in serious denial. (Cue Pee Wee Herman[3] with fingers in ears saying, "La la la la la.")

[1] "The Retail Death Rattle." By Jim Kunstler, The Burning Platform, 1/19/14.
[2] One 1913 dollar is now worth five cents.
[3] One of the greats.

No comments: