Economic Perfect Storm

The following blog is my understanding and interpretation of what is happening with domestic and foreign economics right now. If I am wrong I will surely be corrected by the ones who see it differently.

There are several things going on that have been propping up the US stock market for a very long time. The major reason is that the Feds have been buying up junk bonds and other forms of worthless paper with newly printed money, to the tune of over a trillion dollars. Another  reason is that they have kept the interest rate at virtually zero for quite a long time. Both scenarios have allowed businesses to borrow cheap money that they have been using to buy back their own stocks. Buying stocks shores up the "bull" (buyers) market and entices further buying by legitimate buyers which in  turn keeps the stock prices high. The claim that Obama's economic policies are proof that his policies are working and we are in a roaring economy "is all smoke and mirrors". The socialists say: "Just look at the stock market for proof."

Now if you consider only the Fed buying and the low interest rates, Obama policies have worked. The problem is the economy has never had a chance to correct itself in this artificial atmosphere which is absolutely necessary to allow it to make a lasting legitimate recovery. These temporary fixes are on the verge of ending and the result will be catastrophic inflation, a major stock market correction (insert "crash" if you like), and a severe hit to our already crippled economy.  As Obama's ex-preacher and abandoned friend Reverend Wright once said: America's chickens have come home to roost".  The Fed bond buying program is slated to end in the next couple months. In conjunction with that it is rumored that the Fed will end the zero interest rates but no one is saying what the rate will be. That will result in companies having to borrow new money with interest to pay off the money they bothered at nearly zero interest. Seems to me it will require the companies to put their stock back on the market which will result in further decline in stock prices. What a vicious circle the Obama policies have created. That is not good money management. As each thing kicks in the bad results will snowball.

The above is what is happening on a domestic level. Let's talk a little about what is happening on an international level. First of all, China's outrageous inflation is affecting its economy and ours as well. The Chinese stock market is already in a serious downward spiral and shows no sign of slowing. Do you think maybe they will start calling in the trillion dollar marker they are holding on the US?  Maybe we should call in the $750 billion that China owes us! We only hear about what we owe them. There is never any mention of what they owe us because for the last 60 years or so they have refused to pay us. But that is a blog for another day. Also don't ignore what has happened in Greece and other parts of Europe. The socialist governing ideologies, their destruction of sovereign borders, unlimited immigration, commingling of common currencies, and socialist banking practices have all contributed to a very dangerous economic scenario. Does any of that sound familiar? Greece is the first to fail but certainly will not be the last. As Europe goes, so goes the US.

On October 20, 2015 the International Monetary Fund (IMF) is expected to announce a new reserve currency as an alternative to the US dollar. Reserve currency is the money that is used world-wide as the method of payment for virtually all trading of oil and other worldly commodities. That is one of the reasons the US dollar has been able to dodge a double digit deflation of its value. It has allowed Obama to print and distribute unlimited American debt. Watch what happens to the dollar if the push for a new reserve currency is successful.

They want the dollar replaced by what they call a "Bancor". Already having it named and probably printed shows how serious they are about this. The Bancor will be issued by a global central bank which will undoubtedly be printed and dispersed by the IMF. The ultimate goal is a one world currency, a world central bank, and lastly a one world economy controlled by the IMF with enforcement by the United Nations and the International court system. Where do you suppose the United States of America will fit into that food chain? I doubt that the loss of American sovereignty will be a concern to anyone except Americans. You also know who will foot the bill for this monstrous boondoggle.

I finally come to the reason for the title of this ramble. All of the happenings listed above are on a course to collide creating the perfect economic storm. I hope I am wrong. Maybe I am being Chicken Little, but even if the sky doesn't fall, the very near future is going to be dark, cloudy, and riddled with devastating economic  lightning strikes! Prepare yourselves.

God Bless America!!!