What else is affecting the stock markets dragging them down?…
- The big gorilla in the room is…
- Debt that will not be recovered
- Looking back on the Great Depression of 1930…
Watch the markets and you will see extreme volatility. This volatility is made by program trading taking the market down and bringing it back up. The big swings are a daily thing. It’s in these swings that the big investors make their profits. It’s also these big swings that are causing market chaos and the small investor has little chance to make any profits. This is a slow boil stock market. What else is affecting the stock markets dragging them down?…
Personal spending is tanking. While government economists and analysis predicted a two percent or more growth this year, personal spending is now down to zero and will possibly go negative. The other problem in the world that is the big gorilla in the room is the massive debt burdens.
In the U.S., there’s student loan debt. There’s also U.S. business debt and not the kind where there’s investment in inventory or new machinery. It’s companies borrowing money to buy back their stock, make acquisitions, facilitate mergers – all debt that will not be recovered. In fact, there’s over 13 trillion dollars worth of this type of business debt.
In the U.S., there’s between 55 and 60 trillion dollars worth of debt. Worldwide there’s 373 trillion dollars worth of debt. Looking back on the Great Depression of 1930 there was a huge stock price run-up right before all the debt brought it crashing down. At that time, the debt to GDP ratio was 210 percent. Now if you compare charts, the latest stock run-up was many times bigger than before 1930. The debt to GDP ratio is 370 percent instead of 210. This means that this massive debt load will topple the gains of the market over the last few years and people will be shocked when the party’s over and the country goes into a deflationary spiral.
QUESTION: What should readers take away from this message today?
ANSWER: If you think that the markets will see 18,000 again you should think twice.
QUESTION: Why is this information timely?
ANSWER: This information is timely because the average person looks at the market day by day and says, “Oh, great the market went up 300 points today,” forgetting that it went down 600 points over the last few days.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: You should be out of the markets totally and if you’re not you will get the surprise of your life when the downward slide picks up momentum.
COMMENTARY: Outside of recessions, almost everyone living today has never seen anything like what is building. That’s why it’s happening. Like the frog in the pot, it’s all coming to a slow but sure boil so no one will notice it until it’s too late. This is especially true for those who believe what they hear on the news which is layered with ads enticing you to spend more money and convince you that pharmaceutical drugs will fix everything else. Anyone who argues against any of this are written off as conspiracy theorists. The only way to snap out of this before it’s too late for you is to turn it all off. Pull out and observe so you can position yourself for the inevitable correction.
AWAITING NOTARIZED PROOF