Common Cents

China lends us a lot of money.  China is going through growing pains at the same time the FED raised interest rates, ever so gently.  But even a gentle raise ripples through strong economies, and can damage weaker ones.

Stocks over a medium term and bonds over a short but precipitous term react badly to interest rate hikes, especially on the heels of the Feds quadrupling of the money supply via Quantitative Easing.  Yup that’s quantitative alright.  The prayer here is that all these extra dollars in float STAY in M2 meaning stay invested in stocks and bonds and real estate.  If not, and some folks sell stocks to buy other things (rental properties, land, gold, silver, platinum, fancy cars, more houses), then it leaks back into the M1 supply and real live inflation is guaranteed, with the hope it doesn’t go to 700% a year a la South American countries at times.

Top this off with wars that cost at LEAST $250 million per DAY plus over a million non combatants dead, plus the expansion to 8 countries in the Middle East from Bush’s 3 (will give Pakistan to Bush, but Obama has done the largest damage there, and for what?  Did it stop Isis?  No! It did cause 4.5 million refugees so far). and the gnarly $18,000,000,000,000+ national debt, and you have a case for eminent “collapse” or “recession” if the world’s central bankers are not adept at squeezing more life out of this house of cards called “Build An Economy Via Debt.”

So, with downward pressure on the US stock market coming from three prongs: no more massive cash flow into wall street from Washington (quantitative easing) plus higher interest rates, plus global economies showing signs of deterioration, and it appears 2016 could be a LULU.

Duck and take cover in non traditional investments that can provide income or at least capital retention.

 

Enjoy!

Doug

 

PS, ISIS would be the wet dream of a tyrant like Henry “Nobel Peace Prize” Kissinger.  You see, by pulling out, Obama, AND EVERYONE at the Pentagon, General Dynamics, Raytheon, and all other defense contractors KNEW that the Sunni Shia divide we had created by switching sides from Sunni (who we favored form the 70s until Saddam Hussein killed the Curds (on behalf of Turkey who requested it, and the US Government that brokered the chemical weapons from Germany that were used to exterminate) to Shia, by ousting the Baathists, and putting in a weak Shia government in Iraq.

These same shenanigans (strategies is too kind a word) worked in Vietnam, when China and Russia had more than three boarder skirmishes of THEIR OWN countries, after we pulled out of Vietnam.  Hence the Kissinger reference.  Pull out of the middle east, and follow along on the newsreels (carefully orchestrated by Armed Forces Television) as we see Shia and Sunni battle it out for “King of the Oilfields.”  Maybe someone can develop a game that will be based on exactly this, with the USA only firing form a distance, or bombing or droning which ever side gets a little lead.  Obama had SOME NERVE saying “we can’t afford a continual ground war in the middle east.”  Jesus, he’s right, but he’s the captain of the 7 out of our 14+ years there, with ONE MORE YEAR TO GO, for God’s sake.  he may be impotent in front of the US Congress, but watch his missiles soar without their approval asked for or needed.  Oh Patriot Act must die.

So now it’s Saudi Arabia versus Iran — guess they felt left of of this conflagration, so  they may enter it more directly now.  I pray we are ALL THE WAY out when this one cranks up, but isn’t USA foreign policy the devil on a hover board?  Wait, no, Silver Surfer’s board with full doo daddery.Our foreign policy is far more dangerous than just “Obama doesn’t know what he’s doing,” indeed, the Freemason Barack knows exactly what he’s doing and will leave behind the most dangerous situation the world has ever known, and who better than an Eastern Star lady to pick up where he left off: Hillary Rodham Clinton, and her money-grubbing, chief fundraising, labor-crushing, NAFTA, GATT 2 and World Trade Organization founding, environment trashing, world wage-slave creating husband Bill Clinton, sitting in as “adviser?” (And these folks are characterized as LEFT WINGERS!?!?!?)

 

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