Market Strategist: ‘We’re on the verge of a great, great depression. The Federal Reserve knows it.’

… and created it, together with the government, following orders from their elite masters.

Again, this is the ‘Greatest Depression’.


Wall Street Baffled by Slowing Economy, Low Yields: Trader (CNBC, June 1, 2011):

Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.

“What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,” he said. “They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.

“We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake.”

Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.

“Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything,” Yastrow said. “We’re on the verge of a great, great depression. The [Federal Reserve] knows it.”

Read moreMarket Strategist: ‘We’re on the verge of a great, great depression. The Federal Reserve knows it.’

US House Prices Have Now Fallen More Than They Did During The Great Depression

Falling Home Prices Hit Big Banks, Fannie, Freddie (CNBC, 31 May 2011):

Home prices began double-dipping months ago, but now that S&P/Case Shiller has chimed in, it really must be so.

This report is the most widely-followed home price index, equally quoted in bank boardrooms, Treasury Department back rooms, and Congressional Committees.

The report finds home prices in Q1 of this year are now 2.9 percent below the previous quarterly bottom in Q1 of 2009, effectively giving up all the gains of the past few years, which were of course fueled by the home buyer tax credit.

“Just about everybody agrees we’re going to miss the seasonally strong period in 2011, which we should be at the very beginning of right now with May, but nobody thinks that will make any difference,” says S&P’s David Blitzer. “Everybody’s now keeping their fingers crossed for 2012 and wondering whether people just don’t want to own homes anymore.”

Keeping your fingers crossed for the housing market is just the tip of the iceberg. Prices have now fallen, on this index, more than they did during the Great Depression. “On that occasion, the peak in prices was not regained until 19 years after they first fell,” notes Paul Dales at Capital Economics.

Read moreUS House Prices Have Now Fallen More Than They Did During The Great Depression

John Williams: The Great US Collapse Nears


Walter J. “John” Williams was born in 1949. He received an A.B. in Economics, cum laude, from Dartmouth College in 1971, and was awarded a M.B.A. from Dartmouth’s Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar. During his career as a consulting economist, John has worked with individuals as well as Fortune 500 companies.

John Williams of Shadowstats.com:

The U.S. economic and systemic-solvency crises of the last four years only have been precursors to the coming Great Collapse: a hyperinflationary great depression. Such will encompass a complete collapse in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system as we know it; and a likely realignment of the U.S. political environment.”

“Outside timing on the hyperinflation remains 2014, but there is strong risk of the currency catastrophe beginning to unfold in the months ahead. It may be starting to unfold as we go to press in March 2011, but moving into a full blown hyperinflation could take months to a year, beyond the onset, depending on the developing global view of the dollar and reactions of the U.S. government and the Federal Reserve.

Read moreJohn Williams: The Great US Collapse Nears

US Poverty Levels Equal to the 1930s For Some 16 Percent Of The Population

“When a country embarks on (record) deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul

The other 93% will be destroyed in the coming greatest financial collapse. (1% will get richer.)

This is the Greatest Depression.


Wall Street at least temporarily relieved of the burden of having to buy Treasuries & Agency bonds, is looking at the jump in oil prices as nothing more than an irritant to their plans for a higher market. Bill Dudley of the NY Fed, a most powerful member, continues to make a vigorous defense of Federal Reserve policies. He, and a few other Fed participants, and Chairman Bernanke believe liquidity is the key for solving problems. That is not only in the realm of debt purchases, but in the relief it brings to Wall Street and banking. It relieves them of the responsibility of having to make those purchases to assist the Fed. Those funds can then be directed toward other investments, such as la liquidity-driven stock market rally. The correlation between the movements in the Fed balance sheet and market can be traced to 85% of market movement for the past 2-1/2 years. An interesting result of Fed manipulative policy is low level of short interest during this period. Most of the professional market players knew the market was headed higher, because they knew such overwhelming liquidity injections would have to take it higher.

They also knew that the Fed had to keep the wealth affect going, because the market was the only generator of wealth left, as the bond market bubble would be broken eventually. The Fed has engineered a market recovery and Wall Street knew what they were up too. QE1 saved the financial community and QE2 saved the government debt structure at least temporarily. The wealth effect has been saved temporarily as well. The public has been left with a pile of crumbs as they struggle for survival. Unemployment has improved ever so slightly and now we have a new problem to increase the suffering and that is much higher oil prices.

Read moreUS Poverty Levels Equal to the 1930s For Some 16 Percent Of The Population

Eric Sprott on Silver: ‘THERE IS NOTHING LEFT’

And this is the Greatest Depression!


Eric Sprott made an appearance at Casey Research Gold and Resource Summit where in addition to providing a succinct summary of all his monthly letters from the past year, whose forecasts are all gradually panning out, he spoke about the prospects for gold, and particularly silver.

We will leave it to readers to parse through the brief must watch clip, but here is the punchling for those wondering why increasingly more distributors are reporting indefinite lack of physical silver inventory:

“There’s $22 billion of silver available in the world, of which the ETFs already own half, and between you guys and us we probably own the other half… Which means there’s nothing left.”

Submitted by Tyler Durden on 02/23/2011 15:05 -0500

Source: ZeroHedge

Author Nomi Prins: The Corporate Mugging of America

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Overdose – The Next Financial Crisis (Documentary)

Just in case you still haven’t watched this:

George Carlin: The American Dream


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An ABC – Four Corners documentary about the coming economic crisis, featuring Gerald Celente and Peter Schiff. Original air date: 23rd August, 2010.

See also:

– Prof. Nouriel Roubini: No Defence Left Against Double-Dip Recession

American Deaths In Afghanistan Surpass Highest Annual Record

US: Record 1 in 6 Americans in Government Anti-Poverty Programs

California Delays $2.9 Billion School, County Payments In September Amid Budget Impasse

US Home Sales in July: Record Drop Of 27 Percent, The Largest Monthly Drop On Record

US Cities Sell Parking, Airports, Zoo To Help Closing Budget Gaps

Nearly 50 Percent leave Obama Mortgage-Relief Program

The No.1 Trend Forecaster Gerald Celente: And Now We’re Headed For The GREATEST Depression

US: Jobless Claims Jump to Highest Level Since November

US: Bankruptcies Reach Nearly 5-Year High

US Cities Face Up To MASSIVE Cuts

Why the US is as busted as a busted flush – IMF analysis suggests the US is fiscally bankrupt

John Williams: ‘Times That Try Our Souls’ (U.S. Bankruptcy – Hyperinflation – Great Depression), Preparedness Can Save Your Life:

The government is effectively bankrupt. Using GAAP accounting principles, the annual deficit is running in the range of $4 trillion to $5 trillion. That’s beyond containment. The government can’t cover it with taxes. They’d still be in deficit if they took 100% of personal income and corporate profits. They’d also still be in deficit if they cut every penny of government spending except for Social Security and Medicare. Washington lacks the will to slash its social programs severely, to change its approach to ever bigger government. The only option left going forward is for the government eventually to print the money for the obligations it cannot otherwise cover, which sets up a hyperinflation.

The No.1 Trend Forecaster Gerald Celente: And Now We’re Headed For The GREATEST Depression

The fake “recovery” was nice while it lasted, says famous apocalyptic forecaster Gerald Celente, founder of the Trends Research Institute. But now the fun’s over, and we’re headed for what Celente describes as the “Greatest Depression.”

Specifically, the always startling Celente says the country is headed for rising unemployment, poverty, and violent class warfare as the government efforts to keep the economy going begin to fail.

The crux of the problem, Celente argues, is that the middle class has been wiped out. America used to be a land of opportunity for all, where hard-working people could build their own small businesses in their own communities and live prosperous and fulfilling lives. But now a collusion of state and corporate interests that Celente describes as “fascism” have conspired to help only the biggest companies and the richest Americans. This has put a shocking amount of the country’s wealth in the hands of a privileged few and left the rest of the country to subsist on chicken-feed wages and low job satisfaction as Wal-Mart “associates” — or worse.

Read moreThe No.1 Trend Forecaster Gerald Celente: And Now We’re Headed For The GREATEST Depression

Judge Napolitano on Freedom Watch With Ron Paul, Lew Rockwell, Justin Raimondo And Gerald Celente

Listen to Gerald Celente America!
Rome is burning:

John Williams: ‘Times That Try Our Souls’ (U.S. Bankruptcy – Hyperinflation – Great Depression), Preparedness Can Save Your Life

So what have the elitists planned for the US? Total collapse and/or WW III?

Former CIA And Military Officials To Obama: Israel Prepares To Attack Iran This Month


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Read moreJudge Napolitano on Freedom Watch With Ron Paul, Lew Rockwell, Justin Raimondo And Gerald Celente

John Williams: ‘Times That Try Our Souls’ (U.S. Bankruptcy – Hyperinflation – Great Depression), Preparedness Can Save Your Life

Highly recommended reading.

The Greatest Depression is here.


john-williams-shadowstatscom

When Fed Chairman Ben Bernanke admits to seeing an “unusually uncertain” economy ahead, it’s pretty terrifying to imagine what he’s really thinking. What John Williams envisions-and he’s by no means looking to the far horizon-is a systemic collapse, a hyperinflationary great depression and the cessation of normal commerce. Despite that bleak outlook, however, when the economist and editor of ShadowStats.com sat down for this exclusive Energy Report interview, he also had some good news.

The Energy Report: A few months back, John, you said, “if you strangle liquidity you always contract an economy and deliberately or not, liquidity is being strangled, resulting in sharp declines in consumer credit, commercial and industrial loans.” Does this mean it would spur more economic growth if banks actually started lending?

John Williams: It sure wouldn’t hurt. We’re still seeing contractions in liquidity, and that’s adjusted for inflation. In real terms, M3 money supply is down almost 8% year-over-year. It’s the sharpest fall in the post -World War II era. It’s not so much the depth of the decline in the liquidity or the duration, but the fact that the liquidity turns negative year-over-year that signals the economy turning down.

We had the signal in December of 2009 indicating intensification of the downturn, in this case, within six to nine months. We’re in that timeframe now and see softening numbers. People are talking about a weaker economy. Even Mr. Bernanke has described the economy as “unusually uncertain” in terms of its outlook. Wording like that from the Fed is a pretty good indication that something’s afoot.

Read moreJohn Williams: ‘Times That Try Our Souls’ (U.S. Bankruptcy – Hyperinflation – Great Depression), Preparedness Can Save Your Life