70% Of Americans See Economy Worsening, Consumer Comfort Collapses

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Zero Hedge: “With stocks just 1-2% from record highs, because China is fixed, oil is recovering, Europe is awesome, and gas prices are low? it appears the talking heads forgot to tell the ‘people’ how great things are. Bloomberg’s Consumer Comfort index plunged (by the most since Sept 2014) to hover at 18 month lows

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Rather amusingly an intriguing 1% of Americans see the state of the economy as ‘excellent’ – wonder which 1% that is…”

Opinion: Central banks, with the recent exception of the US Fed, have been creating money that is being used to shore up the banking system and raise asset (stocks, bonds, real estate) prices in an effort to save the world from a full-blown depression.

And so far it has worked. The US ended the practice last October but not before $4 trillion in new debt was created.

New money creation, either printed or electronic, is essentially the same thing as counterfeit. As fiat currency is added to the economic system of a nation the more diluted its existing currency becomes.

The US dollar as world reserve currency has benefited from what I like to call the cleanest shirt in the dirty laundry bag, or in this case the currency bag, which as long as the reserve status is not challenged, the more likely it is for the dollar to stay strong against existing weak currencies.

Which is precisely why it is imperative to keep an eye on the October meeting of the International Monetary Fund (IMF) to determine whether the Chinese renminbi will be added to the Special drawing rights (SDR) basket of currencies, thereby challenging the reserve status of the dollar.

It seems likely that if/when that happens the economic collapse that would ensue would be on a level of Revelation 6:5-6; a day’s wage for a day’s food and here is the clincher; the rich or 1%, represented by the oil and wine, barely feel the pinch: which is why the 1% call the current economy excellent!

I wonder how the Apostle John knew that 2000 years ago?

 

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