The signs are indisputable that some sort of historic occurrence is forthcoming. The latest economic news makes it certain that the Western financial system as we know it is about to conclude. The question is, will there be a controlled implosion followed by a phoenix like revival or, will there be revolution, chaos, anarchy, bloodshed and misery. The answer now lies in the hands of the military forces of the West because the political world, specifically in the United States, is dysfunctional.
To comprehend how critical the circumstance is, please take a look at the following chart.
It displays there is about $80 trillion worth of financial goods in the United States that has no foundation in the real world. During the Japanese bubble I utilized a similar chart to show the bad debt in the banking system was worth 200 trillion yen at a time when the Japanese government was expressing there was only 3 trillion yen worth of bad debt. Another way of putting it is that US asset fees will have to fall by about 80% before they hit the ground of fact. Japanese real estate prices fell 90% after the bubble burst there. The American bubble is 49 times greater than the Japanese bubble was. It is not a question of if it will burst but when. Denying truth does not make it go away.
There is also proof coming from indexes structured in real world transactions that cannot be altered by financial deception. One is the Baltic Dry Index, the price of shipping goods, mostly raw materials like oil, metals, grains etc. It is at a record low currently.
Another is the China Containerized Freight index, which measures the cost of shipping finished industrial goods out of China. It is also at a record low.
Maybe you have observed your e-mail spam filter is now presenting more Chinese enterprises frantically looking for customers than Viagra ads or Nigerian scams. Obviously something big is about to occur in the worlds’ markets.
There are a lot of folks foreseeing this now. The American Association of Individual Investors survey displays that in May of this year individual investors dropped the percentage of money they invest in shares to 57.8% from 67.9%. This is an astonishing dumping of over 10% of their shares in exchange for cash in just one month. The Greeks are also bailing out of the Greek banking system at a rate of over 500 million Euros per day. This type of thing is typically known as a bank run or as rats deserting a sinking ship.