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-- Posted Tuesday, 8 March 2011 | | Source: GoldSeek.com
Rick’s Picks Tuesday, March 8, 2011 “Phenomenally accurate forecasts” (There he goes again! Mario Cavolo, a congenital optimist who regularly contributes to Rick’s Picks, was arguing the rosy case in the forum on Monday, claiming that only half of America will sink into the coming Depression, leaving the other half to prosper as always. His post can be found by clicking here. Below is my response, one of many that his message elicited. Some of these posts are terrific, so be sure to visit the page. For good measure, I’ve recounted at bottom a particularly sordid story that bodes ill for America’s fiduciary relationship with China, whom Mario, a Shanghai resident, serves capably and energetically as a business liaison to the U.S. RA) No one doubts that optimists like you will be essential when it comes time to rebuild the economy. Might I suggest that you save your energy for later, when it will do the most good, rather than risk squandering even a small amount of it arguing in a forum where you’re outnumbered twenty to one? Much creative destruction remains to occur before America can get back on track, and only a great deal of pain can bring about the epiphany that the illusion of our economic well-being has been sustained entirely by lies. (Fortunately, that is not true of our economic future, since Yankee know-how can never be counted out. But merely financing Yankee know-how will require re-allocating capital from a still-vastly overvalued financial sector to one that efficiently turns out real goods and services that the rest of the world vitally needs.)
For the present, however, The Great Recession has dealt America’s standard of living a mortal blow, steepening our decline in ways that are likely to continue for perhaps a generation. The upper strata of earners has not gotten away unscathed, as you would have us infer, even if the fraudulent, Fed-engineered stock market rally launched exactly two years ago has eased the pain of their dot-com and real estate losses. The stock market must now crash too, since it is buoyed by an all-but-irresistible tide of funny money. Ultimately, however, nearly all classes of assets save bullion, farmland and a few others are destined for collapse as well, since current valuations are based on a money system whose basic unit of measure is an already worthless dollar. The rentiers and middle class are not going to escape this inevitable phase of our economic cleansing. Colleges Selling a Hoax I don’t have the time to refute you point-for-point, but to take just one economic “positive” that you’ve cited – the fact that U.S. colleges are not deserted – it is possible to argue that the colleges are as big a fraud as our money system, channeling undergrads toward worthless graduate degrees (how many more young lawyers, for one, can the system absorb?) because there are presently no jobs for them. You of all people should be acutely aware of this problem, since it is hugely worse for China, where even kids with the engineering degrees that their American counterparts have disdained cannot find jobs in the city above the sweat-shot level. It is not possible to overstate the possible, dire consequences of this for China, especially if exports to the U.S. dry up. As further regards China, surely they recognize that their USA partner is a Ponzi scheme operator – a book-cooking, funnymoney-printing, lied-peddling swindler who will eventually take them down. Just recently, for instance, following a report in the London Financial Times that the Federal Reserve had supplanted China as the largest holder of Treasury paper, the U.S. Treasury rejiggered the numbers so as to imply that China was actually on top. It is disconcerting enough that Treasury can swing the numbers by, in this case, more than $200 billion while evidently making it impossible for anyone to ferret out the empirical truth. But what makes the adjustment all the more insidious is that it was intended to make the public believe that China is confident in the U.S. Bloomberg news, for one, appears to have swallowed this load of crap in toto, reporting that “China’s Treasury holdings underscore the [Chinese] government’s confidence in President Barack Obama’s stewardship of the economy.” Yeah, sure. This stench-ridden subterfuge was not reported widely if at all, but it was duly noted in the latest edition of The Privateer, a superb newsletter published twice a month by Aussie Bill Buckler. China, for its part, has not commented on the “adjustment.”
*** Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2011, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Tuesday, 8 March 2011 | Digg This Article | Source: GoldSeek.com
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