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What is really behind the rapid-fire series of shocking events of the last seven days?
What’s the underlying reason Vladimir Putin ordered the U.S. mission in Russia to gut its staff by 755 employees?
Why did North Korea test an ICBM which could one day take out Los Angeles, San Francisco or Chicago?
Why did Iran launch its Safir-2 rocket, which could threaten deadly, pinpointed attacks on any target in the Middle East?
Why did China and Russia hold their first-ever joint naval drills in the Baltic Sea?
Why did the Trump administration open a broad inquiry into China’s trade practices?
Why did the U.S. Congress just pass a law to slap new sanctions on Russia and others?
It’s relatively easy to explain each of these actions in the context of events that immediately preceded them. What’s not so easy is to explain them in a more fundamental way — to piece together the jigsaw puzzle of historical forces that has brought our country … and the world … to this high-wire tightrope of actions and reactions, threats and counter threats.
What’s truly driving world leaders to increasingly bellicose behavior is not merely their own rational or irrational decision-making. Nor is it the reasons and excuses that our leaders themselves believe and cite.
Rather, what’s ultimately behind these new winds of war is a bundle of seven economic, social and political megatrends that, like an invisible fist, are pushing the U.S., Russia, China and others toward a dangerous confrontation.
I call them the Seven Horsemen of the 21st Century Apocalypse …
1. The Horseman of Debt
The first megatrend is the vast accumulation of government debts. Back in the early 1970s, the U.S. government had only 30 cents in debts for each dollar of goods and services (GDP) produced per year. Now, its debt burden has more than quadrupled in size — to $1.32 per dollar of GDP.
That’s bad enough. But even that big debt burden does not include trillions in U.S. government obligations for Social Security, Medicare and veterans’ benefits. Nor does it include debts piled up by U.S. corporations, consumers and local governments — let alone the trillions in high-risk bets made by New York megabanks, called “derivatives.”
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Moreover, the United States is not the worst offender. Other major economic powers have plunged even deeper into debt, with Japan leading the pack. It has a government debt load per GDP that’s twice as big as America’s.
The result has been a series of financial collapses, crashes and panics that have appeared like recurring tidal waves, each larger than the previous: The historic collapse of the U.S. dollar in the late 1970s; a monumental crash in the U.S. government bond market in 1979-’81; a flood of bank failures in the 1980s, followed by giant insurance company failures in 1989-’91; the great housing bust of 2007; the Great Debt Crisis of 2008; the Great Recession of 2008-’09; the near-bankruptcy of multiple European governments in the 2010s.
2. The Horseman of Money
The second megatrend is radical easy money and money printing, a core aspect of governments’ desperate strategy to paper over the debts and escape the severe financial panics that they cause.
This money-printing desperation was particularly evident in the wake of the granddaddy of debt crises that struck the globe in 2008.
Indeed, it was the watershed event of that debt crisis — the failure of Lehman Brothers on Sept. 15 of that year — that set off the greatest wave of money printing in the history of civilization.
That’s when the U.S. Federal Reserve — along with the European Central Bank, the Bank of Japan and the Bank of England — broke all tried-and-tested rules of monetary policy, embarked on a multiyear binge of money printing, and helped fuel other megatrends that are now leading toward global conflict.
The U.S. Federal Reserve started the ball rolling. It went stark-raving mad, abandoning any semblance of restraint, expanding its assets (the best measure of money printing) by a mammoth $3.6 trillion through 2017.
The European Central Bank immediately followed in the Fed’s footsteps, expanding its assets by $1.5 trillion. Plus, for extra measure, they cut their official interest rates to zero and even below zero.
The Bank of England, although smaller, was equally aggressive, expanding its balance sheet by $435 billion between 2008 and 2017. After the Lehman Brothers failure, their money printing went ballistic; and during the European debt crisis, it went ballistic again.
But if you think all of the above is crazy, wait till you see what the Bank of Japan did! After the Lehman Brothers blow-up in 2008, it expanded its balance sheet by a whopping $2.5 trillion. Adjusted for the smaller size of Japan’s economy, that’s the equivalent of a $9.4 trillion surge in the United States, or more than 2½ times the Fed’s expansion.
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All of this adds up to a big-bang of monetary expansion unprecedented in all of recorded history:
The Fed’s $3.6 trillion, plus the Bank of England’s $435 billion, the European Central Bank’s $1.5 trillion, and the Bank of Japan’s $2.5 trillion give you a grand total of more than $8 trillion in monetary expansion after the Lehman Brothers failure.
3. The Horseman of Inequality
The trillions of new money that the Fed and other central banks poured into the global economy didn’t go into industry to create more high-paying jobs. Instead, it flowed into the world’s largest banks. It fueled widespread speculation benefiting a small minority of large, risk-oriented investors. And at the same time, it flattened interest rates, reducing to a pittance the income of risk-adverse investors, savers and retirees. Result: Extreme income inequality.
But the Horseman of Inequality didn’t first gallop onto the scene in 2008. It actually appeared three decades earlier. Consider the stats for the United States:
- In 1978, the top 1% of Americans controlled 22.9% of the nation’s wealth. That’s not unreasonable. In a capitalist society, some level of inequality is acceptable and even desirable. In the most recent reckoning, however, their wealth share has doubled.
- The concentration of wealth and economic power has grown even more extreme among the nation’s top 0.01% (one of every 10,000 families). In 1978, they controlled 2.2% of the nation’s wealth. Now their share of the nation’s wealth pie has grown fivefold!
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The wealth disparities in Russia are even more severe. According to New World Wealth, Russian millionaires control 62% of the wealth, or nearly double the nosebleed levels reached in the United States. And according to Credit Suisse, the top 10% of Russia’s population control a staggering 85% of the country’s wealth, with just 111 individuals controlling nearly one-fifth.
In China, meanwhile, wealth disparities have grown more rapidly than virtually any other country in the world.
Between 1990 and 2016, the Gini Index, a widely accepted measure of poor income distribution, rose by 20 points in China.
That’s nearly triple the rise that took place in India, also a country of great wealth disparities. Worse, it’s more than ten times the rise that took place in advanced OECD countries, in the world’s Newly Industrialized Countries (NICs), and in Asia’s Low Income Countries (LICs).
Even this measure understates the large regional discrepancies in China — between the impoverished countryside and the industrial megalopolises; between the small coastal provinces (see blue in map) and the giant Western regions (brown).
No matter how you slice the numbers, China has clearly suffered the most radical shift from equality to inequality among nearly all countries of the world.
4. The Horseman of Corruption
Widespread corruption is both a cause and a consequence of income inequality. Wealth empowers certain elites and government officials to cheat and steal. That behavior, in turn, is a big factor in the impoverishment of middle and lower classes.
This is not only a pandemic in government, but also in business; not only via criminal activity, but also in the form of hidden, technically “legal,” schemes deliberately designed to deceive the public. I call it “corruption by deception.”
To properly document corruption globally would require volumes greater than the Encyclopedia Britannica. So let me cite just two countries:
The United States of America: In the late 1990s, the Big Five U.S. auditing firms, their large corporate clients, and some of the most widely respected Wall Street analysts effectively conspired to deceive investors and the general public about the earnings and ratings of the nation’s leading companies, especially in the technology sector. The result was the Tech Wreck of 2000-’02, crushing the wealth of middle-class investors.
In the mid-2000s, it happened again. But this time, the corruption was more widespread; the losses, much larger.
The deceptions were perpetuated by big “nonbank banks” that specialized in subprime mortgages like New Century Financial and Countrywide Financial; the nation’s largest commercial banks, such as Bank of America and Citigroup; the biggest investment banks such as Bear Sterns, Lehman Brothers, JPMorgan and Goldman Sachs; the nation’s giant government-sponsored mortgage agencies, Fannie Mae and Freddie Mac; Wall Street’s Big Three rating agencies, Standard & Poor’s, Moody’s and Fitch; plus a long list of prominent government officials.
The result was the Housing Collapse, the Debt Crisis and the Great Recession, crushing the wealth of an even broader swath of middle-class America.
The Russia Federation: Surveys by OPORA, a Russian business association, finds that 90% of entrepreneurs have encountered corruption at least once. Similarly, a survey by the Institute of Contemporary Development in Moscow concludes that Russian citizens view corruption as the second biggest problem in the country. Meanwhile, Transparency International, a global nonprofit active in 100 countries, says that corruption in Russia is worse than in Brazil, China, India and the 34 member nations of the OECD. This leaves virtually no space for a middle class, and few escape hatches for Russia’s urban or rural poor. It is a deeply ingrained, pernicious driver of public discontent in Russia.
But President Vladimir Putin effectively turns this sentiment around to his great advantage. His vehicle: A Russia-first foreign policy that routinely blames domestic ills on foreign enemies, galvanizes public opinion, and has helped establish Putin as the most popular Russian leader since Lenin. Putin knows it is the single best vehicle to convert domestic shame into international pride. And he pursues it aggressively, deftly portraying the United States as the ringleader of Western nations seeking to undermine, sabotage and destroy Russia.
5. The Horseman of Division
In parallel with the widening income inequality, we have also witnessed a global trend toward extreme political divisiveness.
Let me start with the United States …
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In the chart above, income inequality (black bars) is measured by the wealth share of America’s top 0.01%; the higher the bars, the more inequality.
Political division (red line) is based on an exhaustive study of voting patterns in Congress; the higher the line, the more extreme the partisanship.
Most Americans are aware of “government gridlock.” But what most do not realize is that the political divisions in America today exceed those which prevailed during Reconstruction, the extremely divisive period that followed the U.S. Civil War.
That’s when the federal government enacted a series of new laws to enforce equal rights for black Southerners, encountered violent opposition from citizens, and ultimately abandoned its efforts to forcefully mold Southern society. During that period, this widely respected index of political divisiveness in the United States reached an all-time high of 0.79. Today, that same index is even more extreme, at 0.97.
The divisive trends in Russia and China are less evident on the surface, but potentially more powerful in their ultimate impact. The big difference: There, they have emerged in the form of mass protests and rebellion. And there, they’ve been promptly squelched by repressive federal governments.
6. The Horseman of Tyranny
Sixth, we’ve seen the rise of authoritarianism and dictatorships. Back in the 20th Century, it took two world wars, countless wars of independence, plus decades of struggle to slowly but surely rid most of the world of colonialism, neocolonialism and military dictatorships. In the 21st century, however, it has taken only a fraction of that time for similar kinds of authoritarian regimes to again rear their ugly heads. I’ll save the many examples for a future column.
7. The Horseman of War
Finally, the global rise of authoritarianism has been accompanied by a global rise in nationalism, militarism, and the irresistible urge by the world’s most powerful autocrats to blame their domestic ills on foreign adversaries.
The blame game was rampant first in countries like Russia, China and North Korea. Now, it may also be rearing its ugly head in the United States. On both sides, weapons of choice include propaganda and fake news. On both sides, foreign enemies are powerful mechanisms for rallying domestic political support and unity. And everywhere, this is what connects the dots between domestic division and international conflict.
The Invisible Fist is Powerful
Yes, the boldness, rashness and sheer recklessness of individual leaders are specifically to blame for the events of the past week and earlier. It’s our leaders who push the envelope of diplomatic wars, cyber wars, trade wars, proxy wars and regional wars. They’re the ones who ultimately issue the commands to send troops into battle or press the buttons of ballistic missiles.
But it is the Seven Horsemen — Debt, Money, Inequality, Corruption, Division, Tyranny and War — that cause booms and busts; create a climate of envy and disdain; encourage dishonesty and abuse; catapult autocratic leaders to power; give them the mandate to build their military power and ultimately, to wage war.
I repeat: This bundle of seven megatrends is a powerful, invisible fist. And it’s this invisible fist that’s pushing, shoving, sometimes forcing our leaders toward the chest-pounding, bellicose behaviors that we are witnessing all over the world today.
What impact is this having on the global flow of capital? In what direction is that flow driving financial markets? Which investments will be the primary victims? Which will be the stellar beneficiaries?
Tell me your answers below and I’ll weigh in next week with mine.
Good luck and God bless!
Martin
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The Game Is Rigged. What news! You ust spelled it out so those that can’t understand see it after reading your article. All of you better ask this question, So What Do I Do Now?
There is no escape, for Old, or Young, for Rich, or Poor, for Christian, or other Religious, It sounds like we all will have to face the music SOON. You did not reflect on how we are to cushion this fate some through preparing for the worst. What say you besides the purchase of STOCK. Give me your RESPONSE
It’s too huge we can only save what we have in our power. That’s our selves, our families and our voting power.
*That includes putting money into the representatives and politicians you think are going to help.
The quickest easiest fix I feel Americans can do is:
1. Stand up and fight and vote against Citizens United. This must go if America has any chance of the saving the majority of people’s welfare.
2. EDUCATE and PARTICIPATE :
Youth, elders & legal newcomers in our country, educate them register them, and transport them to the polls for both locally and Federal voting.
There has been low spending on defense by the US over the last bunch of years, relative to GDP. There is bipartisan consensus to boost that spending. The large defense contractors seem to be a reasonable place to overweight investments today. Further, they are not overvalued, particularly with HII and COL having PEG’s in the 1’s. If hostilities do break out, G-d forbid, these stocks could be a reasonable secure harbor for protection of assets.
Best straight forward analysis of the major drivers that I’ve seen! Impossible to know how far the seven corrective pendulums must swing before we begin to regain stability. But hopefully when we do, those of us who survive will experience the beginning of the greatest boom of all time.
Congress, Republicans and Liberals both act like they won the last presidential ellection and boycott all ideas that helped Republicans and Trump win, and ignoring blatantly the people’s will, which were amongst others Healthcare, better relations with Russia and building the Mexican wall, not to keep out legal immigrants, but the criminals and gangs that are crossing daily.
Congress rather fights WW III, than admitting wy Trump won the election, and why Republicans had no chance of winning. Now we have the mess, Congress against the American Majority……a disgrace for this country.
The Trump cultists just can’t accept their messiah is a lunatic. Politics is about compromise and cooperation; the current despot is about chaos, division, narcissism, bluster, personal attacks, demonization and cashing in on his position. What a disgrace to the office of the president.
What is the compromise position with someone who wants to destroy you?
We tried 25 years of “compromise” with North Korea. Can you be a bit more specific as to the position we should now take? Do you recommend we cooperate with them so that they can achieve their goal of our destruction?
When you can determine that position, we can use it, then export it to the middle east. They also have the problem of “compromising” with someone who wants to destroy them.
Politics is about cooperation and compromise..where have you been..nobody does this anymore
Now that is funny…. Politics is compromise and cooperation? Where the heck were you the 8 years of Obama? Guess he was feeding you what you ordered while the rest of us starved to death. Guess what Geo….. Hillary would have put Trump to shame in your terms of Chaos, Division, Narcissism, Bluster, Personal attacks, Demonization ( or rather demoralization) and cashing in on her position. Think you should consider stand up comedy.
Now, can we get back to talking about making money in the stock market.
point well made
We need to throw out more democrats & leftover bureaucrats out.
History is simply repeating it’s self. Same Carpet Baggers and Robber Barons that sold their souls to the Ultra Wealthy during the run up to 1929 have returned again…
In the more current time, it began again in the 1980’s with something called “The Republican Revolution”, when again, quizzlings conspired to get the Ultra Wealthy to pore Billions into getting their lackies elected and, Big Suprise, here we are again at the financial cliff…
Look to the removal of the “Inner City Restrictions” of Barney Franks Bill (which let “liar loans” to go nationwide) by the majority GOP to explain the Housing Bust.
Look to the Bringing of GATT during Reagan and NAFTA in Bush One to explain the loss of millions of Middle Class jobs that made China a formidable and dangerous Military power.
And look to the removal of Glass-Steagall which was brought in 1933 (to keep 1929 from happening agaian) by the GOP Majority in 1999 to explain 2000, 2007 and now…
Same types of actors, same types of behaviors, same results….. :(
ONLY Bright Spot is that last time these morons committed Financial Hari Kari in America, they were not elected in any numbers for about 50 years , and during that time America had it’s greatest growth in all of it’s history!… :(
I agree with much of what you say but it was Bill Clinton, Robert Rubin, Alan Greenspan and Larry Summers (government/fed officials during the Clinton administration) who repealed Glass-Steagall. You had GOP members who voted for this bill too but this was not inspired by the Republicans. This was a horrible change that never should have been done but we should list the guilty parties who are responsible.
GOP propoganda: The bill to remove was brought by Gramm/Leach/Blyle, ALL powerfull Republicans and EVERY Republican voted to remove… Clinton got bad advice from his Treasury Sec who soon left office and was placed on the boar of Citibank for a Million a year until a New York times reproter noted he had NEVER attended one board meetin. The treasury Sec. came frm Goldman…
Wow Eagle495, you are pretty good at rewriting history. The housing bubble was a bipartisan adopted bill signed into law by Bill Clinton during the 90’s with the “affordable housing act” and loosened the underwriting standards. And again, the repeal of Glass Steagall was passed overwhelmingly by both houses and signed into law by Clinton. I guess the only issue I have is government is the problem
Nope, the orginal bill brought by Barney restricted the reducd leanding to the inner cities…. Thr Republcian majority removed that restriction before passing it and EVERY Republican voted for that bill with the inner city restriction removed at great profit to the American Bankers that make huge donations to Republican lawmakers… Google it rather than getting you news from the fake nws Republicsn sites, aye?
The consciousness of the human race is still quite primitive. Profit, community, environment is our current order of importance. We have it backwards. Until we reverse this we will continue with our “structural violence” and the many will suffer at the hands of the oligarchs. Although if we continue, the oligarchs will eventually suffer too.
I am not sure we will change our ways “in time”.
We are approaching a market top of degree not seen since 1720. We probably have one more retreat of 1,000 Dow points or so and then….the final rally into a 5th wave top over the next few months. Depression will follow. Great wars will follow.
Living within means has no limits. Living beyond means has limits. Governments, in most parts of the world are living WAY beyond means. It is the people who will pay for it. Governments always believed that they can live beyond means for ever. One will soon see how true this is.
This is a complex question depending upon the actions and feelings of the players and their populaces. That is the central problem and the most difficult factor in creating any answer, or series of answers. And, sadly I think it will continue as the conditions creating the problem are maintained…..
You left out the organic education gap the makes a growing percentage of the work force inviable in a modern workplace.
Understood, but what and when will this all come tumbling down. Many have forecast this and we all look for direct information as to what and where to put any funds. Thanks.
Trends seem to converge on the 2020’s.
Via Fractional Reserve Lending all banks are broke. If you take a stand of white pine trees and then send them to the paper mill where they then turn them into pulp and from there into paper and then send that paper to the U.S. Treasury where they put ink on that paper via instructions from the privately owned for profit central bank we now call the Federal Reserve, you need to ask yourself where is your store of wealth? Ink on paper back by debt that can never be repaid isn’t real money but nothing more than a counter fitting sceme created by the elite oligarchs and their families that own and control the Federal Reserve. Ask yourself this question, why did our founding fathers fight our Revolutionary War / battles to free themselves and their families from the tyranny of Great Britain and the Bank of England that controlled all the money and the debt. Those that own and control the debt control everything! We are now nothing more than Rome on steroids.
PS Why should anyone pay back a loan from a bank that created that loan @ interest out of the thin air via fractional reserve lending?
J. Hagan
Dr. Weiss hit another home run with this article. This will probably all lead to confrontation between the major powers. Hopefully, this will not lead to WWIII.
Those massive debts,public and private aren’t money debts.They are fiat currency debts and govt can create fiat currency at no cost.The result will be declining value of the fiat.That is the long term solution and the one that every bankrupt fiat currency country in the history of the world has taken.
Martin, after so many years beginning with Safe Money and Larry’s
input many years ago, it is a pleasure to read your wisdom which comes with age. This “7 Horsemen” is such a good read.
I’m in my 80’s now and want you to know how much you have helped me in my wealth accumulation and knowledge of the value of things.—–Thank You, JS
At the core of our problem is the way we elect and re-elect our law makers. We elect them by popular vote, not experience. We force them to kiss up (for re- election funds) to the same people and corporations that are corrupt to begin with. They are supposed to then make smart, independent, well educated, sound decisions? Are you kidding? We elect stupid people and then we’re surprised when they make stupid policy? Ha, ha, ha! Most of them can’t tell you where Russia is on a map much less understand good economic decisions making. Our election process is corrupt for one reason, to make the rich richer. It works well for that. We elect unqualified people to run one of the most complicated systems in the world. Then we wonder why they fail at their jobs? Who else would do that at General Electric, Apple or Bank of America?
Make the FED cancel their ill gotten bond holdings!
The lies coming out of the White House tend to remind me of some of the things said by Joseph Goebbels, Adolph Hitler’s Information(Propaganda) Minister.
The truth is the greatest enemy of the State.
Those who are to be persuaded by it(propaganda) should be completely immersed in the ideas of the propaganda, without ever noticing that they are being immersed in it.
Think of the press as a great keyboard on which the government can play.
The bigger the lie, the more it will be believed.
Whoever can conquer the street will one day conquer the State, for every form of power politics and any dictatorship-run state has its roots in the street.
It is not propaganda’s task to be intelligent, its task is to lead to success.
We shall reach our goal, when we have the power to laugh as we destroy, as we smash, whatever was sacred to us as tradition, as education, and as human affection.
I don’t know if Donald Trump ever studied the work of Dr. Goebbels and his master, but he seems to be following much the same path: create division and profit from it – blame difficulties on others and especially certain minorities (Muslims and “illegal” Latinos for example) – punish those minorities with the assent of many, not necessarily all, in the majority. One problem: he does not actually have a majority in the Reichstadt — oops, Congress.
Sure sounds like the Democrats to me. Fake news!! Nothing the media says even remotely rings true. Guess my “leave it to Beaver” upbringing and small town conservatism can’t follow all those crooked idiologies they are trying to brainwash us with. Shame on them!!
Dear Mr. Weiss,
Excellent and greatly informative analysis as always. Unfortunately to no avail since nothing and no one is going to be able to stop history from repeating itself.
Realistically, unfortunately very realistically an imminent regional nuclear war in Korea ( which might well trigger a WWIII) is to be expected and, ironically(but not absurdly) enough the longer the delay the worse the consequences.
Alas,unsavory and gloomy “prognosisâ€, I know but historically speaking, to keep the head under the sand has always been the unmistakable sign that your worst nightmare is about to become reality!
Luciano Salvati
The eighth horseman that is never talked about is the over population of the world. The planet can only support so many people and we have almost reached its critical mass. This will lead to the desperate competition for the most basic of human needs especially food and water. Until this issue is addressed nothing else will ever matter as the law of the jungle will prevail and the fittest will survive but only after a true apocalypse and perhaps not even then.
Agree with you about over population but do not agree “fittest will survive.” The methods of war or street level violence gives no advantage to the fittest, only to the most violent, usually most uneducated.
We all know that there are ties, and collusion, between Russia, China, Iran and North Korea. Before it may have been one or two bad actors giving us problems but this Gang of Four is working together to take down the US, and the US dollar, economically (hopefully without a war). This would allow China to move into the #1 economic power in the world and also allow the Russians to move up in power. There are “Global Elites” in this group that want a one-world government and many of our Democratic Leaders in the US are part of the Global Elite. They do not care what happens to their country as long as they, and their cronies, are part of the new On World Government plan. Well, the Trump administration has thrown a monkey wrench in their plan because they are trying to make America Great Again and are battling the Globalists. So, the Gang of Four is not working together in a concerted effort to take down the Trump administration from the outside and eliminate the monkey wrench. They also have many of our Democratic leaders, who are part of the global elite, helping them from the inside.
See what happens when people don”t put God first. When the fall comes, it is better to fall naturally. T he bigger the fall, the bigger the base to be built up.
The writing is on the wall. What if, just if, we all wake up one day and discover there is no stock market(s) anymore, anywhere. Total bust and paper money turned to dust! What is the probability of this happening when all major Central Banks’ debt is $ 8 plus trillion dollars. The probability of WWIII is a certainty under this scenario. Food/water, shelter, gold/silver bullion to survive.
When the collapse comes where should our $$ go? Bears say get your $$ out of the stock market now but never tell you where the $$ should go. It can’t all go to gold.
Every new technology brings new problems and we must learn to deal with it.
I think the radio enabled Hitler, Mussolini, Roosevelt, but we can now deal with it.
Next came TV, 24/7 news, the Internet, and smart phones. I think our current challenge is 24/7 news with far right and far left stations leading to political polarization. We will also learn to deal with it, but it may be difficult.
Martin,
I wonder what your father would say to this climate of derivatives, qe, and just debt in all banks and governments.
Unfortunately Putin comes out the good guy in all of this, trump on the other end I feel sorry for, he not use to being a puppet to the deep state, all the lies and fake news.
I stopped reading financial papers 2 years ago, I watch all your blogs and what is sent to me,
but you must admit its all rigged?
Just as all the money lies in the hands of an ever shrinking few so does the power to control all things. These select few never stop wanting more until all the money and all the power is in their hands. The majority not included just want to live their lives and get by never seeing the machine working toward this in plain sight all around them. Although no one knows the hour the day of reckoning is coming that it is coming cannot be denied. Unless the world wide population rises up against the few the outcome is inevitable. But I wouldn’t hold my breath, the majority do not read, understand, or see beyond their noses. They think it all happens randomly. In this country most think it’s a republican versus democrat problem. And they go to their graves never knowing almost everything they have believed all their lives is a manufactured lie.
During Obama’s “Lead From Behind” strategy and withdrawing from our external responsibities, along with rudderless economic and financial policies, the gates of Hell were opened, and out came N Korea, ISIS, Iran, and a belligerent China and Russia, and the extreme divisions in this country. These are folks of brutal self interest and don’t care about humanity or the world. Our leadership (worldwide) and midevil, process trained, politicians are
not qualified to deal with it. We are headed into a new Dark Ages, Think about it
What an excellent write up. These trends are gaining strength and I’ve incorporated them into my upcoming novel, The Internet President: None of the Above.
As the first poster points out, the game is rigged! The first chapter of the 3 chapter finale in my book is called “Rigged” for that very reason. Even trying to fix a financial crisis, banks are still trying to maneuver bailout money to themselves in my work of fiction.
Like in my chapter “United Only in Dissent”, we growing further apart. We don’t even share the same news and accept the same facts as truth.
From the title of my next book, The Internet President: Hot Nights and Cold Wars, we can all see where things are going.
What can we do? I have a bunch of ideas in the book on things to help fix society, but the reality is that it needs to get more broken for Americans to look beyond their bread and circuses and take real action.
I would like to thank Larry for being a source of truth on the underlying forces shaping the disturbing trends we see.
The last 8 years under Obama has created a weaker side for America. The world has noticed and taken advantage.
The crisis has started already. When interest rates are held at emergency levels for years, massive cover ups of true employement and inflation data are routine and central banks around the world buy stocks directly you KNOW the end is in sight. There is no more market price discovery and capatilism is dead RIP
I agree with every one of the seven “megatrends.” But stating the problem is much easier than both defining and implementing a solution. [Not that there is “a” solution singular] I have decided to do research, writing and teaching – because if there is a way out of this box – it is not going to come from bombast, overly focused nationalism, ignorance of history or logic or technology. Ultimately, ideas matter. So do voting and investment habits. The only civilized way out is to advocate civil discourse, expose reckless extremism as dangerous, and to learn how to listen ourselves – we are not going to impose solutions. We might be able to sell them (intellectually speaking). But only if we listen to grasp what people think they want. Even if you hope to modify that, you can only hope to do so if you understand their point of view.
NEWS AND NUTS
There are many different views of current events. Here is a new one from former Microsoft Employee Clif High. He claims that all the craziness around the world is due to “beams from outer space”. Now, that is funny but it could be true. You never know.
http://usawatchdog.com/cryptos-reveal-western-world-failing-now-clif-high/
There is a latin proverb ….
Mors certa, hora incerta.
Death is certain, the hour uncertain.
Thanks
The stock markets boom and bust every 9 years
This the time to short the markets!
http://www.finviz.com/fut_chart.ashx?t=YM&cot=124601,124603&p=m1&rev=636381214023460879
The best investment advice is the old cliche’ go with the flow. Since forecasting is mediocre at best don’t bet on forecasts. The only sure thing about black swans is that there are black swans. See what is trending. Don’t worry about logic and reason. Much of life is ruled by emotions. Don’t worry about timing tops and bottoms. Ride the trend up and jump off at the first sign of weakness and look for the next trend. Life comes in waves. Learn to ride the waves.
I agree with H. Craig Bradley… and as Wernher Von Braun stated: First they came with “Communism”, then “Terrorists”… the final will be “Aliens” as the enemy. Point is we are being controlled by the “Elite”, “Globalists”,” Illuminati”, “Cabal”… whichever name one might attach to it, it’s not the semantics involved, but the actual facts of those in control, and what they’re doing… who is behind the wars, the economies, poverty, etc., etc. All political leaders, including presidents, corporate heads, and corporations (other than the top 10, or so) and so-forth are all under their influence. If they oppose, they are taken out, killed, or otherwise… This is the “CORE” of it all… Lockheed Martin, the largest defense contractor, for example (and one of the top ten corporations) is involved, as well, with the “secret space program” which has technologies far greater that what is known, here on earth. The Globalists stay far ahead of “us” with their technologies, as well. What better way to have an insurmountable edge over us!… I could go on, and on, but I believe I’ve given the basic idea…
Good article, but this 8th horseman is even more critical:
https://www.youtube.com/watch?v=YlGMOUR4q8I
Hi Martin,
Read your report thorougly,and it made me sit up and think.I’st just what the late Larry Edelson was saying all along–R.I.P.Larry
Thank you for your article. I agree with N Mast, August 7th. What can we do now, in addition to purchasing certain stocks? And truly how do we prepare for the worst?
Hi Martin,
i don’t know much about anything..its as well i guess, but something keeps niggling at me :
Why are we forever pounding Russia and other countries who are not our allies? Is that not a cause of, or a reason to hate the ‘others’ who do not agree with us?
Here in the land of oz we get ‘watered down’ news on out tv and in our ‘newspapers’, which is nothing but drivel from u.s.a. news sources, sort of half baked ‘fake news’.
Nut cases abound on our planet and most of them appear to be in control:-) The reason i say this is because I read an interesting article yesterday about the role of the ‘fed’ in american and now world control of finances. If it is true, well there needs to be some questions asked at high levels and if found to be correct about the fed, then the guillotine should be brought in on all of those buggers who created this unholy mess in our world. We are well rid of them…but i suppose other lunatics will take their place.
Such is the make up of the human race. Fear and greed will always be the main character of humanity. It is indeed a shame that the animals cannot speak up:-) They kill out of necessity not for pleasure or aggrandisement. Well does that make them more intelligent?
I have never met Mr. Putin or Mr. Trump. i have only read about them. May their lives be full of joy and happiness in their futures, just like ours:-). It is great to be humble.
cheers, ron from Oz.
Most problems are from the selfish & power hungry Democrats.
The US government will continue to print money until inflation goes up to at least 10%; however, they will tell the public inflation is only at 3%. Therefore real spending on social security and many other programs will be significantly reduced year after year. How to prepare? Put 10% of your savings in precious metals. A barrel of oil will always have value . It will soon be time to invest in oil stocks and ride the bull for 10 years. Stocks provide some inflation hedge, but include China stocks in your portfolio since their currency will be stronger than the dollar eventually. And borrow to the hilt to buy a high quality real estate investment. After years of inflation eventually sell a little bit of your precious metals to pay off the loan and enjoy the income while you sip iced tea on the beach.
Thanks You for your always candid insight..
I read something in the very recent past that indicated that Vladimir Putins wealth is greater than that of Bezos and Gates combined..
Somehow this doesn’t not seem like it could be accurate.
Thank You again for always sharing the Truth Martin.
A long time reader in Minnesota