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Old 03-13-2014, 02:46 PM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 3,185
Dr. Copper, The Crash V2.0

Our economy runs on electricity and electricity is distributed through copper wire. A downturn in the economy is presaged by a reduction in the consumption of copper. This has always been a very close correlation and the metal is referred to as "doctor copper" for accurately forecasting the economy. Dr. Copper is not looking good;
Is “Dr. Copper” Foreshadowing A Stock Market Crash Just Like It Did In 2008?

This hardly come as a surprise. The Chinese economy was projected to grow at 7.75%. Instead, it SHRANK at 18.1 %. The shadow banking system in China was generating about $ 160 billion a month. In February, it generated nothing. China now has a trade deficit,,, this from the world's largest exporter. The resource countries like Australia and Brazil are seeing huge reductions of exports in base materials.

The basis for honest wealth creation on planet earth is to take something from nature,,, add labor, and sell it for a profit. Agriculture, mining and manufacturing are the basic value-added industries. We crashed into low-wage competitors and wealth creation took a nosedive. The banks should have taken a huge hit when wealth creation took a big hit. Not wanting to be severely reduced, the banking industry extorted $ 700 billion out of congress. TARP.

The economy has shrunken even more since then and the banks are in an even more precarious situation. Since our economy lacks wealth creation, the banks have forced currency creation as a substitute. This fell far short so, they created huge amounts of synthetic instruments that pass for wealth,,, sort of.

The original problem of falling wealth creation has never been rectified. These synthetic instruments are not wealth and they don't have much stability. "That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 427 times greater than their total assets."
The FED has printed currency to save the banks and the plan is for you and me to repay this debt. Open you checkbook and take care of the problem.

"Back in September 2008, the U.S. national debt was sitting at a total of 10.02 trillion dollars.

As I write this, it is now sitting at a total of 17.49 trillion dollars."
The original problem was that we weren't creating enough wealth to support the banks. We are producing even less wealth and the original problem has gotten even worse. The bankers told congress that we would grow our way out of this and it would be easy to repay the giant debt to the FED. Our economy is shrinking rather than growing. The debt is far worse and we are very close to crashing again.
We Are In FAR Worse Shape Than We Were Just Prior To The Last Great Financial Crisis

Only 4 times in history has margin debt been this high. Every time that it reached our current number, the markets have crashed.
Ignore all this and watch Lorenzo;
Lorenzo The Flying French Man - YouTube
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