At some point we are going to see another wave of panic hit the financial markets like we saw back in 2008. The false stock market bubble will burst, major banks will fail and the financial system will implode. It could unfold something like this: Words: 660
So writes Michael Snyder(http://theeconomiccollapseblog.com) in edited excerpts from his article entitled Federal Reserve Money Printing Is The Real Reason Why The Stock Market Is Soaring.
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Snyder goes on to say in further edited excerpts:
You can thank the reckless money printing that the Federal Reserve has been doing for the incredible bull market that we have seen in recent months….The Dow and the S&P 500 have both hit levels not seen since 2007 this month, and many analysts are projecting that 2013 will be a banner year for stocks – but is a rising stock market really a sign that the overall economy is rapidly improving as many are suggesting? Of course not.
Just because the Federal Reserve has inflated another false stock market bubble with a bunch of funny money does not mean that the U.S. economy is in great shape. In fact, the truth is that things just keep getting worse for average Americans [as the following illustrates]:
- The percentage of working age Americans with a job has fallen from 60.6% to 58.6%… [over the past four years],
- 40 percent of all American workers are making $20,000 a year or less,
- median household income has declined for four years in a row, and
- poverty in the United States is absolutely exploding.
Unfortunately, all of this reckless money printing has a very negative impact on all the rest of us. When the Fed floods the financial system with money, that causes inflation. That means that the cost of living…[goes] up even though your paycheck may not…Our food dollars are not stretching nearly as far as they used to, and we can blame the Federal Reserve for that….The system was designed to create inflation.
Before the Federal Reserve came into existence, the United States never had an ongoing problem with inflation but since the Fed was created, the United States has endured constant inflation. In fact, we have come to accept it as “normal”. Just check out the amazing chart in this video….
At some point we are going to see another wave of panic hit the financial markets like we saw back in 2008. The false stock market bubble will burst, major banks will fail and the financial system will implode. It could unfold something like this:
- A derivatives panic hits the “too big to fail” banks.
- Financial markets all over the globe crash.
- The credit markets freeze up.
- Economic activity in the United States starts to grind to a halt.
- Unemployment rises above 20 percent and mortgage defaults soar to unprecedented levels.
- Tax revenues fall dramatically and austerity measures are implemented by the federal government, state governments and local governments.
- The rest of the globe rapidly loses confidence in the U.S. financial system and begins to dump U.S. debt and U.S. dollars….
I believe that our “leaders” will eventually resort to money printing, unlike anything we have ever seen before, in a desperate attempt to resuscitate the system. When that happens, I believe that we will see the kind of rampant inflation that so many people have been warning about.
What do you think about all of this? Do you believe that Federal Reserve money printing is the real reason why the stock market is soaring? Please feel free to post a comment with your thoughts below.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
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It seems clear that there are a number of investors who have gained confidence in the global economy and are seeking to capture the growth opportunities taking place around the world. With the European crisis comfortably in the rear view mirror and global central banks taking the position that they will continue their easing policies, investors have taken their foot off the brake and have begun to accelerate….We see more sunshine and less stormy weather ahead [and explain why that is the case in this article]. Words: 695; Charts: 3