The Reckoning: “All Evidence Points to US Economic Failure in 2014″

The-Reckoning

Earlier this week economic strategist Marc Faber warned that some time in the next 12 months the U.S. stock market will experience a crash worse than the massive drop seen in 1987.

He’s not alone. Many contrarian economists seem to agree. And given the state of economic and geo-political affairs they could well be right, much to our detriment.

On the domestic front, the much touted economic recovery is in significant danger of being revealed for the illusion that it really is. Nationwide home sales, for example, have dropped off in record numbers in the last few months and a report released this morning indicates that mortgage originations are as bad today as they were just before the Lehman crisis of 2007. Couple that with a jobs market that is at best stagnating and at worst completely falling apart, and you can probably deduce that if there is any economic growth at all taking place it is about to come to a standstill.

Internationally, the world is fed up with The Fed and the U.S. government’s unabashed debt growth. China, Russia, Iran, India and a host of other countries are establishing trade relationships that are bypassing the U.S. dollar altogether, a move that will soon see the world’s reserve currency lose purchasing power and status. In anticipation of this imminent collapse gold is being hoarded by private and public entities from Berlin to Beijing in an effort to preserve wealth before the Tsunami hits.

In light of these developments, former Undersecretary of the Treasury Paul Craig Roberts suggests that there are only two possible outcomes given our dilemma – World War Or The End Of The Dollar – neither of which bodes well for global economic, financial, social and political stability.

This means a big drop in the demand for US dollars and a corresponding drop in the dollar’s exchange value.

As John Williams (shadowstats.com) has made clear, the US economy has not recovered from the downturn in 2008 and has weakened further. The vast majority of the US population is hard pressed from the lack of income growth for years. As the US is now an import-dependent economy, a drop in the dollar’s value will raise US prices and push living standards lower.

All evidence points to US economic failure in 2014, and that is the conclusion of John Williams’ April 9 report.

This year could also see the breakup of NATO and even the EU. Washington’s reckless coup in Ukraine and threat of sanctions against Russia have pushed its NATO puppet states onto dangerous ground. Washington misjudged the reaction in Ukraine to its overthrow of the elected democratic government and imposition of a stooge government.

Across many fronts, Washington is emerging in the world’s eye as duplicitous, untrustworthy, and totally corrupt.

This audacious recklessness comes on top of Washington’s overthrow of the Ukrainian government, the NSA spying scandal, Seymour Hersh’s investigative report that the Sarin gas attack in Syria was a false flag event arranged by NATO member Turkey in order to justify a US military attack on Syria, Washington’s forcing down Bolivian President Evo Morales’ presidential plane to be searched, Saddam Hussein’s “weapons of mass destruction,” the misuse of the Libyan no-fly resolution for military attack, and on and on. Essentially, Washington has so badly damaged other countries’ confidence in the judgment and integrity of the US government that the world has lost its belief in US leadership. Washington is reduced to threats and bribes and increasingly presents as a bully.

The self-inflicted hammer blows to Washington’s credibility have taken a toll.

China and Russia protested but accepted Libya’s destruction even though it was to their own detriment. But Iran became a red line. Washington was blocked, so Washington decided to cause major problems for Russia in Ukraine in order to distract Russia from Washington’s agenda elsewhere.

China has been uncertain about the trade-offs between its trade surpluses with the US and Washington’s growing encirclement of China with naval and air bases. China has come to the conclusion that China has the same enemy as Russia has–Washington.

One of two things is likely: Either the US dollar will be abandoned and collapse in value, thus ending Washington’s superpower status and Washington’s threat to world peace, or Washington will lead its puppets into military conflict with Russia and China. The outcome of such a war would be far more devastating than the collapse of the US dollar.

Read the full article at the Institute for Political Economy

What’s coming in short order isn’t just a result of lackluster job growth, or consumer spending, or a degradation of America’s economy.

The leading developed nations of the world no longer trust the United States and America’s status as the “world’s only super power” is being challenged on all fronts.

According to cyclical theorist Martin Armstrong the cycles of change (political, economic, war) are all converging. This year will see a turning point in June of 2014, and some time in late 2015 the rug will be pulled out from under the global economy, leading to a series of events that may well destroy the world as we’ve come to know it in modern times.

We’re already seeing the prelude to this with civil unrest taking hold across the entire world (including Bunkersville, Nevada), and that trend will continue until the system finally buckles.

This is no plain modern event with civil unrest erupting because of an interconnected world. These are grassroots uprisings cross-fertilized perhaps from a world contagion yet they often have similarities – corrupt governments. Turkey, Ukraine, Thailand, Venezuela and Bosnia-Herzegovina are all middle-income democracies with elected leaders besieged by people angry at misgovernment, corruption and economic sclerosis. These days it is no longer just dictators who have something to fear from the crowd. This is the promise of Marxism that centralized planning and false promises are coming home and governments are too corrupt and incompetent to deliver what they have claimed for decades.

Communism is dead. The socialistic agendas that have lined the pockets of government and filled the coffers of banks is over. The national debts are on average composed of 70% interest payments not programs to help the poor as marketed. The debts that keep growing with no intent upon paying anyone back are draining the national productivity and turning the people into economic slaves.The standard of living has declined and it now takes two incomes to survive where one use to be just fine. Women won the right to work and lost the right to stay home.

The promises that you save for the future have collapsed into dust as interest rates have been driven lower making savings utterly worthless. There is no such thing as saving and living off your fixed income. The elderly are being driven back into the work force and the whole ideas that a generation believed in are vanishing before their eyes.

So it is no longer communists and dictators that are the targets. All governments are now the targets and when the economy turns down after 2015.75, the threat of civilization will be pulled apart by the self-interest of politicians clinging to power to the detriment of the people.

Martin Armstrong Via Zero Hedge

There are terrifying events on the horizon. Most people haven’t a clue and won’t until it’s already too late to act.

We best get ready.

The-Reckoning---Thumb


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

LISTEN UP, REPUBLICANS ON THE SUNDAY SHOWS: Here are your damn talking points…

Write ’em down on your hand if you need to:

Doug Ross @ Journal

JUST PERFECT: Bloomberg press conference to promote gun confiscation points hundreds of firearms at reporters

Just when you think Bloomberg — the idiot mayor, not the news service — has reached the height of stupidity, he pulls something like this.

Charles W. Cooke at National Review Online found this headdesk moment in the twitter feed of J. David Goodman, the NYPD police reporter for the New York Times. Goodman covered a joint NYPD press conference featuring Mayor Michael Bloomberg today that saw hundreds of guns pointed directly at the audience…

…While we hope that the NYPD had the good sense to clear each and every firearm on display, what they failed to do is as undeniable as it is unforgivable. They clearly left magazines in, with bolts closed, on numerous firearms pointing at the press…

…At least one of the guns picture above, third up from the bottom on the left, clearly has the bolt-closed and the safety off as it points towards the assembled reporters.

I’ve concluded there are three levels of liberal idiocy: there’s stupid. There’s really stupid. And there’s Bloomberg stupid.

Hat tip: The BadBlue Gun News Portal.

Doug Ross @ Journal

Larwyn’s Linx: House Intelligence Chair: CIA Talking Points Were Changed By the White House

Send us tips! Bloggers: install a Larwyn’s Linx widget. Get real-time news, 24/7, at BadBlue.

Nation

House Intel Chair: CIA Talking Points Changed By White House: Ace
Whodunnit? Benghazi Talking Points Mysteriously Changed: JOM
Benghazi-gate: Grounds for Impeachment: AT

E-Mail Security in the Wake of Petraeus: Schneier
Killing the Goose: Sowell
The GOP: A Most Unpopular Majority Party: DLim

GOP followed Rove off the cliff yet again: Beast
On the Ground in Philly: Dems Out-Hustled the GOP: Dossier
Liberals Begin Their War on Marco Rubio: Lid

Economy

Never Has Less Cost More: AmSpec
More Big Labor-induced misery: The looming port strike: Malkin
Obama Quickly Crushing the Hopes of Small Business: FreeWorks

“New study shows why heavily taxing the rich won’t work”: ProWis
The illusion of a recovery: Obamanomics in one graph: WyBlog
On Surviving The Monetary Meltdown: ZH

Europe is Now Sinking Fast: Martenson
2013 Looks a Lot Like 1937 in Four Fearsome Ways: Shlaes
How Students Are Forced to Prop Up the Education Bubble: Malcolm Harris

Scandal Central

GOP Urges Obama to avoid Rice nod for State – Call for Select Committee to Investigate Cover-up: Nice Deb
DHS Hides Records of Failed $ 1 Bil System from Congress: JW
Christie’s Lt. Gov. embroiled in records scandal: Watchdog

Climate & Energy

Dirty Secrets at the EPA: Elephant
Cooling in the Near Future?: Watts
2013 Chevrolet Volt – Not Quite Electrifying: Forbes

Media

How the New York Times Covers Evil: Prager
Paul Krugman’s Nostalgianomics, again: Cato
New York Times: Where FEMA Fell Short, Occupy Sandy Was There: Glob

Reporters Without Borders Shields Terrorists: Kesler
Obama Laments Not Having Dictator-Like Powers: WZ
Petraeus Biographer Regrets Damage Done by Affair: ABC

World

Operation Pillar of Defense (Day Six): BermanPost
One little reason Hamas deserves a lot more than the 200 tons of bombs they got today: JOdysseus
Hamas is wrecking Gaza with ‘friendly fire’: Twitchy

The real news: Melanie Phillips
Well, this is sure to help: Turkey calls Israel a “terrorist state”: Q&O
Islam creeping in Georgia: Creeping

Barack Obama blunders again on the world stage: Telegraph
Israel Defends Against Annihilation, World Tells Them To Use “Restraint”: Zilla
South pounded by rockets, but Israel to hold off on land war: Times of Israel

Sci-Tech (courtesy BadBlue.com/Tech)

Scientists estimate at least one third of marine species remain unknown to humans: Engadget
The legendary pivot: How Twitter flipped from failure to success: VenBeat
Windows Phone 8 Users Reporting Random Reboots, Freezing; Nokia, HTC Handsets Affected: Crunch

Cornucopia

We’re all Thai/Burmese/Myanmar Now: MOTUS
Bad News: The Human Race Has Been Getting Stupider For 10,000 Years: Ace
TEA Party to Gee-O-Pee Establishment: ‘Yeah, It’s a War- and You’re Going to Lose It’: Reaganite

Image: Israeli aircraft hit Hamas bank headquarters in Gaza
Today’s Larwyn’s Linx sponsored by: The Breitbart Children’s Trust

QOTD: “Since the beginning of Israel’s operation Pillar of Defence last Wednesday against Hamas rocket attacks, there have been more than 1000 Israeli air strikes. At time of writing, the Palestinian death toll is 69. That is a staggeringly small number of fatalities for more than 1000 bombing raids.

It shows beyond doubt that the Israelis are not only doing everything they can to avoid civilian casualties, but have achieved a degree of precision in doing so which no other army can match. For sure, every civilian casualty is regrettable, and the deaths of children are always tragic — today’s apparently heavy toll particularly so, including at what appears to have been a mistaken target. Such mistakes inevitably happen in war.

But consider this: the very low casualty rate among Israelis from the thousands of rockets that have rained down on them from Gaza is largely due to the fact that Israel has provided its citizens with shelters to save their lives. In Gaza, by horrific contrast, the Hamas leadership has deliberately exposed its citizens to attack by siting its rocket arsenals among them in order to maximise the number of civilian men, women and children who will be killed.” —Melanie Phillips


Doug Ross @ Journal