Yet Another Economic Report
Jul 25th, 2010 by Randy Toman
Here is another newsletter giving me information that I’m not even sure I want, only because I believe Martin D. Weiss Ph.D. “Money and Markets” Sunday 25, 2010 to be telling me like it is and/or like it is going to be, and guess what I believe him; the nation is on the edge of the cliff, doing the same thing again expecting different results, crazy isn’t it?
What the heck do you think the common folks are going to do about these fools we have running things—I know — I know —- vote them out come November—- really do you think that is going to change anything? That is a simple question deserving a simple answer like YES or NO,— MAYBE,— I DON”T KNOW—-What if we are replacing one fool with another or one progressive for another progressive —-has anyone thought of that? Talk about being back at square one—Enjoy the read.
The economy is back down to where it was in March of 2009, before the latest so-called recovery.
The stock market is also near its March 2009 levels.
The credit markets are freezing up again, just like they were during that period.
Our entire nation is again teetering at the edge of the same cliff as it was back then.
In this situation, will the U.S. government try to do the very same crazy things it did last time, while expecting different results? Yes.
Isn’t that a classic symptom of insanity? Yes.
But in this scenario of the future, there are also some critical differences …
Two massive forces — forces that dwarf Washington in terms of sheer economic power — tie our leaders’ hands well before they have the chance to blow another $3.5 trillion in another doomed attempt to fight this crisis.
The first force is THE PEOPLE. The power of the popular rebellion in the United States — from virtually all parties and movements — is a phenomenon unparalleled in recent history. No seat in Congress is safe. No incumbent in either party is immune from voter anger over Washington’s gross mismanagement of the economy.
For the first time in generations, the American people are ready, willing and able to “throw the bums out” — to replace them with lawmakers who steadfastly refuse to throw good money after bad in a desperate attempt to spend our way out of the crisis.
The second force is GLOBAL INVESTORS. They are fed up with Washington’s massive borrowings to fund its deficits. They are even more fed up with Bernanke, who has already flooded the world with new paper dollars to buy government bonds, government agency bonds and even mortgage bonds. When they hear that the U.S. government intends to run even BIGGER deficits and trash the currency even further, it’s the last straw.
They turn stark, raving mad, and suddenly, they attack — by refusing to buy, or by actually selling, U.S. bonds.
This force alone instantly kills the U.S. government’s ability to borrow cheaply — just like they did in Greece, Portugal and Spain in 2010.
This scenario is ultimately an even bigger threat to your wealth than what we experienced in 2008.
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Good luck and God bless!
Martin