19 Warnings About A Coming Global Financial Catastrophe

financial

Global leaders have tried just about everything that they can think of, but the coming global financial catastrophe continues to march steadily toward us.  We have seen “stimulus packages”, quantitative easing, bond buying, interest rate cuts, emergency economic summits, bailout packages for banks, bailout packages for entire nations, “Operation Twist”, unprecedented government intervention in business and massive amounts of new government debt and yet nothing seems to revive the global economy.  In fact, it looks like we are rapidly heading into the second dip of a “double dip recession”.  Unfortunately, many believe that this next dip will be more like a full-blown depression.  [Read more…]

Economic Collapse Is Erupting All Over The Planet As Global Leaders Begin To Panic: The First 24 Hours of The Dollar Collapse

Economic Collapse

Economic Collapse Is Erupting All Over The Planet As Global Leaders Begin To Panic: The First 24 Hours of The Dollar Collapse

Mainstream news outlets are already starting to use the phrase “economic collapse” to describe what is going on in some areas of our world right now.  For many Americans this may seem a bit strange, but the truth is that the worldwide economic slowdown that began during the second half of last year is starting to get a lot worse.  In this article, we are going to examine evidence of this from South America, Europe, Asia and North America.  Once we are done, it should be obvious that there is absolutely no reason to be optimistic about the direction of the global economy right now.  The warnings of so many prominent experts are now becoming a reality, and what we have witnessed so far are just the early chapters of a crushing economic crisis that will affect every man, woman and child in the entire world. [Read more…]

Opt out of dollar and US Empire will die: Analyst

357030_US-dollarBy :presstv.com

The US Empire will collapse if world countries join forces and destroy the hegemony of the United States’ dollar, an analyst writes in a column for the Press TV website.

“If more nations join Iran, Russia and China, and opt out of the US dollar protection racket, then this evil “Empire” will surely collapse along with its armed wing,” Yuram Abdullah Weiler wrote.

“Dollar dominance allows the obscenely profligate spending to maintain the US military’s global presence, which in turn insures the continuing hegemony of the dollar,” the analyst said.

He said the main issue is to find a way to “put an end to this stranglehold on the global financial system” by the international banking cartel (IBC) and its “armed wing.”

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“Hence, demand for US dollars and government and agency bonds continues even as [dollar] value falls,” wrote Weiler. 

He said the US dollar is facing “an increasing number of challenges” as some oil producers have ditched the greenback in their transactions.

Moreover, said Weiler, Russia and China have both “expressed their distaste for the dollar status quo and US threats of sanctions or military force.” 

In 2012, China announced that any country willing to “buy, sell, or trade crude oil” can use the Chinese currency, not the American dollar.

Following suit, Russia announced that it would sell China all the crude oil it wanted but it would not accept US dollars.

Weiler said Iran, which sits atop the world’s second-largest gas reserves and third-largest oil reserves, “retains the potential to strike a major blow against US dollar hegemony.”

Other useful resources:

Blackout USA (EMP survival and preparedness)ec_250x200_nf3-60ec08d

Conquering the coming collapse (Financial advice and preparedness )

Liberty Generator (Build and make your own energy source)

Backyard Liberty (Easy and cheap DIY Aquaponic system to grow your organic and living food bank)

SOURCE : presstv.com

 

Three things you should do with your money in an aging bull market

money dollars 1The bull market just marked its fifth anniversary. After 5 years stocks have reached new highs but they have plenty of room left to run.

Money managers have valid concerns, but those should be measured against changes in the national and global economies.

Since the financial crisis, the Federal Reserve has pumped $3 trillion into banks and bond markets, pushing down interest rates and making stocks attractive.

If you permanently avoid stocks, it’s not only unpatriotic but downright dumb.

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As the Fed winds down this policy, interest rates may not rise nearly as much as predicted, further sustaining stocks. For one thing, U.S. banks have consolidated, reducing competition for savers, and CD rates are not likely to return to pre-crisis level. And foreign investors fleeing turmoil abroad are seeking safe haven in U.S. bonds and real estate.

Individual investors took flight from stocks during the financial crisis, and continued pulling money out through 2012. Most folks can’t finance retirements on permanently lower CD and bond rates, and will move back into stocks, giving prices a further boost.

The average price of the Standard & Poor’s 500 stocks, which account for about four-fifths of publically traded companies, is about 16 times last year’s earnings — that’s a bit frothy. And corporate profits have been juiced by cost cutting and wider profit margins, as opposed to strong revenue growth in a slowly expanding U.S. economy.

It’s hard to see how profits on domestic sales can be pushed up a lot with nominal GDP growing at 5 percent a year.

However, U.S. companies earn about half their profits abroad, and while Asian growth is slowing, Europe is on the rebound. Overall, global growth should pick up in 2014.

In emerging markets, which still account for the lion’s share of global growth, profits share of net sales are larger, and engaged U.S. companies should be able to sustain, and even expand profit margins. Those will support a higher price earnings ratio.

Investors focus too much on the recent bubble and financial crisis. Problems in housing and lending practices have been fixed, but stock prices have not kept up with the economy since the turn of the century.

Since 2000, the S&P 500 has gained only about 23 percent, not much considering inflation, nominal GDP and corporate profits are up 43, 70 and 440 percent, respectively.

So what should you do with your money given these facts? Here are three suggestions:

1. If you are saving for a down payment for a house, buy as soon as you can. A home priced within your means remains your best, first investment—it pays dividends every night you sleep in it.

2. If you’re nearing retirement, keep about half your money in cash and low-risk bonds with short maturities, and the rest in a diversified portfolio of stocks. For example, an S&P 500 index fund such as the one offered by USAA or a similar low-cost alternative.

3. If you’re younger, set aside a reasonable amount each month to put into a similar basket of equities, stick to that discipline through thick and thin, and you’ll make out just fine over the long run.

History is replete with fools who bet against the United States of America.

If you permanently avoid stocks, it’s not only unpatriotic but downright dumb.

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SOURCE : www.foxnews.com

Peter Morici is an economist and professor at the Smith School of Business, University of Maryland, and widely published columnist. He is the five time winner of the MarketWatch best forecaster award. Follow him on Twitter @PMorici1.

Is a global financial disaster inevitable?

stocktickerIn my opinion, it’s not a matter of if, but when the day of reckoning will hit financial markets around the world. I mean let’s face it, the fiscal problems that have plagued this country, hell the financial problems that have plagued the world, are still simmering on the surface just waiting to erupt.

The economic problems from 2008, you know the one that almost brought this whole deck of cards crashing to the ground, are still alive and well. [Read more…]