Debt is soaring around the world. The stock market is soaring and things are getting crazy. Six years of zero percent interest rates are devastating the middle class. 48,000,000 people are on food stamps in the U.S. 11,000,000 people are on disability. The jobs report looked good until you look at the numbers behind the numbers. All of the growth was in “part-time” jobs (800,000). Full-time jobs are declining (500,000). The net effect was an increase of 300,000. Put some more lipstick on that pig please.
In Iraq it continues to get ugly. Syria is concerned. Saudi Arabia is too. The turmoil could affect the price of oil and push it up dramatically. The goal of the printing press is to make everyone feel good and overlook all of these problems. The U.S. armed the Syrian rebels and they became ISIS. We are now fighting them. The geopolitical arena is so fragile, there are many black swans that could burst the money bubble.
As the debt increases, men do insane and desperate things. China borrowed 15 Trillion Dollars to build infrastructure that may never become economical. Ghost cities will degrade over time. The risks are high everywhere.
When will the bubble burst? Nobody knows. When the bubble pops, governments will go bankrupt. How will it go down? Nobody knows. Some believe that hyperinflation will kick in. Others believe that a deflationary collapse will occur. The average guy will be the one who will suffer the most pain.
We have been convinced by the car dealers to take out 96 month car loans since everybody needs a luxury SUV. Hardly anybody can afford 36 month loans anymore. Students are borrowing huge amounts to get a degree that may never support a payback plan. The population has deferred the economic pain of compression. Will we have a Great Depression II or a Weimar Republic hyperinflation? Maybe both, one after the other.
The Ponzi scheme continues because the money printing press has deferred the ultimate reset. The longer it takes to reconcile the “books”, the more severe the overall pain.
Social unrest will come. High density population areas will be susceptible to the greatest social unrest.
Move toward self-sufficiency. Lower personal expenses/cost of living. Become indispensible at your job (if you have one). As I continue to preach: Simplify.
Man’s ego will be “popped” once again. Everyone will ask “How did this happen?” The ego “caused the mouth to write checks the body could not cash”. I know I sound like a broken record but this is no different than the years before the tech bubble popped. It is no different than when the real estate bubble popped. We are now in the “mother” of bubbles. It will get ugly for those who have their trust in the ways of the world. There is a vast majority in that boat and it will eventually sink. The solutions to all of the coming challenges will be found only from Above. The revelation of Love will be the key to opening your understanding. I am convinced of this Truth.