There will come a day, not to long from this one, when there will be a stock market crash. Now, sure, there have been such crashes before; they used to call them "panics" in the 1800s, and despite the "New Deal" and the rise of the Marxist super-state, they kept periodically happening right on through the twentieth century as well, 1929, 1987 being the most well-known examples. And the cycle kept right on going into the third millennium with 2000, 2001, and 2008.
The next one, as pretty much everybody without an Obama swoosh-tattoo agrees, is immiment:
With the S&P 500 index hovering less than 2% below its record high, many market participants are calling for a correction of about 10%. Marc Faber, editor of The Gloom, Boom & Doom Report, is calling for a little more than that.
"For the last two years, I've been thinking that U.S. stocks are due for a correction," he told CNBC. "But I always say a bubble is a bubble, and if there's no correction, the market will go up. And one day it will go down, big-time."
So what's big-time?
"The market is in a position where it's not just going to be a 10% correction," Faber said. "Maybe it first goes up a bit further, but when it comes, it will be 30% or 40% minimum."
And you can thank central banks around the world, whose massive easing campaigns have left "all assets grossly overvalued," Faber noted. [emphasis added]
40% at minimum, hm? That would mean a DJIA down under 11,000 from its current level of roughly 18,000. I wonder how many trillions that will wipe out of people's retirement nest eggs, 401(k)s, IRAs, stock portfolios, etc.
Well, for those that have taken a stab at saving for retirement and haven't had the sense to get out of the market, as I did four years ago, they'll be demolished, wiped out, for the second time in under a decade. But it won't be nearly the calamity that it was in 2008, because, you see, a lot of people never recovered their decimated nest eggs from seven years ago and even today have no savings left at all:
There is a financial crisis on the horizon. It is a crisis that all the central bank interventions in the world cannot cure. It is a financial crisis that will continue to change the economic landscape of America for decades to come.
No, I am not talking about the next Lehman event or the next financial market meltdown, although something akin to both will happen in the not-so-distant future. It is the lack of financial stability of the current, and next, generation that will shape the American landscape in the future.
The nonprofit National Institute on Retirement Security released a study in March stating that nearly forty million working-age households (about 45% of the U.S. total) have no retirement savings at all. And those that do have retirement savings don't have enough. As I discussed recently, the Federal Reserve's 2013 Survey of consumer finances found that the mean holdings for families with retirement accounts was only $201,000.
Such levels of financial "savings" are hardly sufficient to support individuals through retirement. This is particularly the case as life expectancy has grown, and healthcare costs skyrocket in the latter stages of life due historically high levels of obesity and poor physical health. The lack of financial stability will ultimately shift almost entirely onto the already grossly underfunded welfare system. [emphases added]
For the record, my retirement nest egg is more than twice the mean holdings reference in the quote. That's the good news. The bad news is, I was involuntarily "retired" a year and a half ago, and it has to cover an extra fifteen years, or something like twice as long as it was supposed to (unless, of course, Constitution Radio hits its big, in which case, never mind).
At any rate, there's a key term above that is phrased bass-ackwardly: "grossly underfunded welfare system". No, Mr. Roberts, the welfare system is not "grossly underfunded"; it is grossly over-funded. The problem is that is is grossly over-utilized. The "safety net" that is supposed to be a measure of last resort has, along with the aforementioned fiat-currency-fueled equities bubble, become the U.S. economy. Put still another way, what we think of as the "productive" private sector - call it "Wall Street" - is nothing but a lot of air and houses of cards waiting for the slightest breeze to knock them all over, and "Main Street" is, to an unprecedented degree, without work, without hope, spending each day sitting naked it their bean bag chairs eating Cheetos and watching Family Guy re-runs. And the almighty Obamunist public sector, accursed be its name, worlds without end, hallelujah amen? Knocking on the door of twenty trillion dollars of "official" debt, plus an additional $222 trillion of unfunded entitlement liabilities that will never, EVER be paid, because the entire country long before then will collapse into an economic dark age that will make the (first) Great Depression look like Daffy Duck diving naked into the Genie's fortune, and from which there will be no escape, ever, because there will be nobody to bail us out, because the rest of the world will be dragged down with us.
No way out. The population is "graying," over a hundred million elderly Americans will be expecting to be propped up by fifty-three Burger King clerks who'll all be illegal aliens anyway, and what young people there are will all be ignorant, radicalized Obamunist drones anyway.
And what will start this brutal implosion that will last decades and even centuries without interruption, recovery, or relief? A stock market crash, for which there will be no remedy, because the Federal Reserve has already exhausted the "print money like there's no tomorrow" option, zero interest rates which have destroyed any incentive to save yet made U.S. debt instruments the financial equivalent of leprosy, four and a half trillion dollars of monetized debt, that term rendered functionally meaningless because the dollar is worth less than the toilet paper I used to wipe my ass three hours ago, which renders the U.S. debt it purportedly "purchased" equally as worthless.
At some point in the near future, the market is going to wake up from this debt binge, groggy and bleary-eyed and hung over like its tongue was used for an Arab welcome mat, and realize that nothing in this entire economy has any value anymore - N-O-T-H-I-N-G. And then it will all collapse. It will all fall apart. And all King Hussein's horses, and all King Hussein's pajama androgynes, will not be able to put this Humpty Dumpty economy back together again.
Nor will they ever try, because this is the result toward which they, and he, have been working for six and a half years.
Ask yourself this question: What happens in a nationwide calamity of that magnitude? People are scared, people are desperate, people don't know what to do - especially if they've been infantilized by the government for their entire lives - and they {drumroll please} cry out for their elected leaders to "do something"! Never bothering, of course, to grasp that they're in that prostrated position because of what the government has already done to them for years and years and years, and the degree of power and liberty they will have to give up at their "leaders' " "request" to "do something".
Such a crisis, exploited masterfully by Franklin Delano Roosevelt, started American down this tyrannical road. Another such crisis put in power his bookend successor Barack Hussein Obama, the man who, with the looming Final Crisis, will finish that process, that "journey," and the remaining, tattered vestiges of the moribund Old American Republic right along with it.
Thomas Jefferson once said, "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." He believed that this, a violent revolution to overthrow fresh American tyrannies, would be necessary every generation. He would find it astonishing that the country he helped birth and guide and lead has lasted almost a quarter of a millennium without one.
He would also say we're way, way overdue.
After the Final Collapse and the "official" Islamocommunist coup that follows it, that will be We, The People's only way out.
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