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Reasons why the average american feels we are in a "Recovery"
The "profits" produced by this recovery are only a result of Geithner's rule in May 2009 that allows assets to be marked up to any amount the company deems fit. This is not accounting anymore, but rather institutionalized fraud.
There has been 33 straight weeks of Mutual Fund Equity depletion, Insiders are selling recently at 1600 shares for every share bought ! Bond funds are depleting and Municipal Bond Funds are depleting. They are not just trickles of money coming out..... but torrents of cash This is partly because the unemployed and under employed are depleting there 401k plans to live on. But mainly, because smart money sees the stock market as a sucker rally. So how do you explain a 12,000 Dow ? Only explanation I can see is media propaganda lathered on thick in combination with massive rigging behind the scenes. Our government has long sold it's soul to Goldman Sachs JPMorgan and friends.
The chinese, meanwhile are dumping our paper to buy every commodity in sight as we speak !! All BRIC nations are doing the same.
The rigging is not even hidden really behind the scenes……Just look at the FED website. They started the POMO (Permanent Open Market Operations) program exactly in March 2009 when the DOW was at the 6500 low. Funny how it levitated right after the start of this program. They used to do a POMO every three to five days. At the end of November they were doing them twice a day. A POMO is when 10s of billions of dollars are leveraged by 100 times and then used to buy S&P 500 futures. They money never has to be repaid or returned to the Fed. They happen at set times of the day like clockwork every week
Any idiot can see that the DOW is completely artificial. We have two straight years of zero interest (unprecedented in history), we have 9 trillion of bailouts, Every major bank is insolvent without accounting tricks, we are running a 2 trillion deficit (more really), we have student loans in massive default for 1 trillion, we have commercial real estate with 2 trillion losses we have sess pools of "shadow Inventory" houses yet to be written off, we have declining revenues at the town, state and fed level. We have States that will go bankrupt next year without 2 Trillion in infusions. And lastly, the great unknown…. Hundreds of trillions of deriviatives that could ignite like nuclear fission at any time. So this is just a papered over slow motion collapse..... but a collapse none the less.
Gold/Silver has been up 17 % average for 10 years straight and now one owns it or wants to own it. Until recently, there has been little to no interest – meanwhile savers are making 1 % on fixed income and the stock market is down 12 % over the last decade. Go figure.. In 1980 26 % of all assets were in gold/silver or mining shares….. today only 1 % of all monies are in precious metals. Does that sound like a “bubble” to you ? Do not let the media tell you that it is in a "bubble" and about to pop or is "too volitile"..... Think for yourself. Our propaganda machine is very, very, effective !!!!!
They have two choices now …….If they have a pile of debt the size of Mt Everest, are they going to go for 30 years of extreme austerity or are they going to print away the debt ? Whatis your guess on what they are going to do ??? ….. America can not stand any pain so politically they will of course choose to print away the debt. This will lead to hyperinflation...... but they will continue to rig the stock market and make you feel like you are getting richer as well as blatantly lie about the inflation all around you. In several years your stock portfolio will triple in value, but you will not be able to buy a pair of shoes with this amount of money because of inflation.
So far what we have seen a bailout nation philosophy where the BS goes like: We will spend our way out of debt. No underlying changes, no arrest or jailtime (Except Madoff) and the same people in charge. Does this really sound like the bottom of the greatest massive financial fraud in the history of mankind ??? I don’t thinks so….. we have miles still to fall….. becaue we a digging our hole deeper – not climbing out …..protect yourself today with precious metals kept in your possession.