Protecting The Status Quo Is Failing
We need to fully appreciate yet another example of what the mainstream media
doesn't yet get! The "People" increasingly don't see the system working for
them anymore and have as consequence become much more willing to try something
very different, possibly even extreme, depending on how serious their personal
blight has become!
Unorthodox politicians like Donald Trump in the US, with disruptive, non-internationalist
politics are increasingly emerging globally,with a particularly large list
of new European populist leaders and parties.
This movement against the perceived status quo is rapidly gaining support,
as we witnessed this week in the Dutch elections. Anti-Islam leader Geert Wilders'
far-right Party for Freedom (PVV)may not have won, but the high profile election
advanced the anti status quo EU movement significantly. On the surface Prime
Minister Mark Rutte's People’s Party for Freedom and Democracy (VVD) may have
won temporarily, but VVD supporters are highly likely to become disappointed
and in the future move towards major change. This is an expected process when
social inequality and system corruption begins to become obvious to the masses!
As ZeroHedge
rcently reports:
While Rutte's victory in Holland has the elites and the media proclaiming
the populist revolution is dead (despite a surge in Wilders' support relative
to mainstream parties), movements driven by Euro-skepticism and "anti-establishment" sentiment
remain top of mind in all of Europe’s key elections this year.
On some level, as Goldman notes, the "populist" political trends in these
countries are nothing new; strong populist influences have ebbed and flowed
in Europe over time. But this tide has again swelled in recent years for
both economic and socio-cultural reasons.
While few think Euro-skeptic forces will win control of government in any
of the upcoming elections, as GS Chief European Economist Huw Pill argues,
even that result should be far from comforting for proponents of the European
vision. In Pill's view, mainstream European parties are caught in a trap,
with needed reforms likely to draw ire from both ends of the political spectrum.
The upshot: Unless mainstream politicians use their (expected) wins this
year to capitalize on the favorable macro environment and move swiftly to
overcome voter concerns, Euro-skeptic threats will continue to rise and support
for European integration will further erode.
Nothing dramatic occurred as a result of the Dutch elections, other than more
delay of the inevitable shift from:
The Internationalists, who believe in:
- Fiat Currencies (debased savings),
- Fractional Reserve Banking (excess credit & debt creation),
- Extremely powerful central governments (elitism & crony capitalism)
to....
The People who support:
- Sound Money (purchasing power and disposable income),
- Closed Borders controlled by individual nations (safety & security),
- Freer Market Economies (jobs with real wages).
This is what is coming in one form or another to Europe.
History tells us that the most worrying problem should be whether the extreme
left or extreme right gains the upper hand.
Only Two Realistic Policy Choices
An unfolding global economic & financial crisis is believed by many to
now be "cast in stone" and therefore leaves only two realistic and untenable
choices:
- What Type of Crisis,
- In What Order.
It is basically only a matter of timing and the transition details.
Particularly troubling is that scary times are ahead for those people least
prepared for them and who don't deserve to be hurt.
Regular people who played by the rules are being screwed over by current
policies and unfortunately will be hurt the worst going forward unless they
radically change their behavior and start investing against what the mainstream
is telling them to do. - John Rubino
Politics Follows Finance
To understand the change underway we need to view radical change as something
which inevitably flows from a dysfunctional financial system.
This in turn will inevitably lead to radical change in the financial system!
This is how our society has evolved and will continue to evolve, lest we forget
that a society is about people and their changing needs. The Internationalists can
only maintain their as yet unrecognized parasitic debt slavery control for
so long.
- The debt parasite today is killing the host! It now consumes more cash
flow than it produces, which is what we have been doing for some 30-40 years
now,
- When the global balance sheet goes from just productive debt to speculative
debt, then inevitably you have a big crisis coming,
- Most of the money being borrowed today is by:
- Governments funding military and entitlement systems. Neither of
which produce anything which generates cash-flow in the future,
- Corporations funding stock repurchases and dividend payouts. Neither
of which produce anything which generates cash-flow in the future,
- Individuals funding cars, big houses and vacations. None of which
produce anything which generates cash-flow in the future,
- This "consuming more than you produce" leads to a speculative financial
environment and inevitably a crisis.
- The "Fiat Currency" regime that came into existence in the early 70's has
allowed the Internationalists to take this thing further than history would
have suggested was possible,
- Every major part of our global society today is caught in the "parasitic
trap" enslaving "the people",
The End Gain is Solid Money
When the inevitable crisis arrives, we can expect that those cloistered to
plan the rebuilding from the rubble of today's financial system will hopefully
end up with some sort of reworked gold standard. This may sound crazy today
but the reality is that having a 'gold like' standard forces the surrender
of power from those who create the money. Those who control money creation
control the economy and financial system, in-turn they then control the political
apparatus!
The supply of gold which has traditionally only been able to growth at
2%, matches population growth of approximately the same order. As a result
gold holds its value.
"Managed Markets" Likely Ahead
Though it will take a crisis to make happen, we are undoubtedly on the path
to controlled markets. Increasing control, distortion and manipulation are
signs the central bankers believe a potentially devastating financial, economic
and political disaster lies ahead.
Many believe the Fed is already manipulating the financial markets by directly
pushing interest rates down and indirectly through proxies. They understand corporations
are going to run out of borrowing power to buyback inflating stocks and pay
their dividends. This will soon critically expose the markets.
"In the next Recession there is a good chance that the Fed and ECB explicitly
start buying stocks!"
The real question is will they succeed or will it trigger the public realization
that the central bankers and governments are manipulating markets. Like the
1920's realization of German money printing igniting hyperinflation, we could
see the realization trigger a Minsky Meltup in assets. Both doomed to inevitable
failure.
Massive fortunes to be made if you can time this right!! There is a big short
opportunity out there somewhere in the not to distant future.
John Rubino and I discuss the opportunities in the 40 minute video "Only Two
Realistic Policy Choices!"
