Biggest Bubble About to Burst
“Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system. The system remains still in the throes and aftershocks of the 2008 panic and the near-systemic collapse, and from the ongoing responses to same by the Federal Reserve and federal government. Further panic is possible and hyperinflation is inevitable.
“The economic and systemic solvency crises of the last eight years continue. There never was an actual recovery following the economic downturn that began in 2006 and collapsed into 2008 and 2009. What followed was a protracted period of business stagnation that began to turn down anew in second- and third-quarter 2012. The official recovery seen in GDP has been a statistical illusion generated by the use of understated inflation in calculating key economic series (see Public Comment on Inflation ). Nonetheless, given the nature of official reporting, the renewed downturn likely will gain recognition as the second-dip in a double- or multiple-dip recession.
“What continues to unfold in the systemic and economic crises is just an ongoing part of the 2008 turmoil. All the extraordinary actions and interventions bought a little time, but they did not resolve the various crises. That the crises continue can be seen in deteriorating economic activity and in the panicked actions by the Federal Reserve, where it proactively is monetizing U.S. Treasury debt at a pace suggestive of a Treasury that is unable to borrow otherwise.”
“April Employment and Unemployment, M3 and Monetary Base,”
John Williams, Shadowstats.com, 05/03/2012
It had to happen. And now it has begun. The Very Biggest Bubble in Financial History has begun to Deflate. And over the next few months, we expect that Deflation to accelerate and morph into a Bursting.
And that Bursting will affect the price of nearly every Financial Asset on the Planet, and Many Key Non-Financial ones as well.
Independent (non-Main Stream Media) Financial Analysts generally agree that The Fed, Bank of Japan, and increasing numbers of other Central Banks’ Orgy of Fiat Money Printing (i.e., Competitive Fiat Currency Purchasing Power Debasement – i.e., the “Currency Wars”) will likely come to a very Bad End.
One Likely result: Hyperinflation. (The U.S., e.g., is already Threshold Hyperinflationary with Real CPI at 9.15% per shadowstats.com.) and consequent Collapse of one or more Sectors. Think Argentina (50% Inflation) as a Distinct possibility.
So it is crucial to recognize the 3 Key Warning Signs that a Collapse of one or more Sectors is impending, so one can Profit and Protect. Unfortunately, 2 of these Indicators are already “hinting” that Collapse in one and quite possibly two Key Sectors may Not be far off – beginning within the next few weeks or very few months. Do these signs of Key Sector Collapse mean one is certain? No, but they are Ominous Indicators of Probability nonetheless.
Indeed, it is the possible collapse in one of these Sectors about which Goldman Sachs’ CEO Lloyd Blankfein warned just a few days ago and about which we have been Warning for weeks, that is most likely.