#31941
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Vep
Survivalist
member4

Expect wild fluctuations before the big crash. I wouldn’t be surprised if the DJIA hits 18,000 or more.

China has a major domestic real estate and banking bubbles. The USA has domestic debt and derivatives bubbles. However, when dealing with each other, it’s a Mexican standoff, because while China needs the US markets, for now, it holds enough dollars to wreck the USA in short order.

Meanwhile, the USA is waging an idiotic financial war against Russia over the Ukraine and who is the big dog in Eastern Europe. In return, Russia is getting really cozy with China. That could get hairy if the Russians offer China some sort of parachute in return for helping accelerate the demise of the dollar. Everyone knows the US will have a financial collapse, it’s just a matter of when.

The owners of the privately owned Federal Reserve have seen to it that the US debt is structured so that it can never be paid off. The last US President that thought that the government should manage it’s own monetary policy and tried to act upon it was JFK, and we saw what happened to him. No US President since then has dared to try and cut the Federal Reserve out of the loop.

Every dime collected in income tax has gone to service the Federal debt (pay interest) for some time now. The Wall Street Journal itself has talked about how the actual yearly deficit is really about 5x what the politicians and the media tells everyone that it is.

People should Google ‘unfunded liabilities’. For example, if the Federal government taxed every individual and corporation at 100% they would rake in about $9 Trillion per year. In 2011, just two programs, Social Security and Medicare, cost $7 trillion to maintain. Every dime contributed to Social Security is spent that year as part of the general fund, and keeping the payouts going is getting more and more expensive. This whole house of cards has only been maintained by massive borrowing on an epic scale, and it’s utterly unsustainable.

That is just scratching the surface. It gets worse. The recent abomination is extending FDIC coverage to derivatives. Your average American is oblivious to that, just as most are oblivious to the derivatives bubble as a whole, which the bankers openly admitted to two years ago as being $230 trillion, but many estimate to be at least $1500 trillion.

There are other factors, but the end result is the same, which is a financial collapse in the USA and an economy that looks like Bolivia on a bad day, or Russia right after the collapse of the Soviet Union.