We Can Pretend All We Want, The US Is In A Recession & Heading For The Big One

[5.56NATO]

Where I live in the West VA panhandle I am seeing houses starting to move and prices going up. The local economy is booming. Proctor and Gamble is moving a big operation to Martinsburg WV that will probably employ thousands of people. The Federal Government continues to expand with the new DHS training center in Harpers Ferry. In nearby VA, an hour away, the house I grew up in (that my parents bought in 1963 for 60K) was just sold for one million dollars. This was a 4 bedroom house, 3 bathrooms, a two car garage, two fireplaces, and 2 acres of land in Great Falls VA. After the sale the house was immediately bulldozed and replaced with a 5 million dollar house. I guess I am trying to make 2 points. The first is that the economy is picking up. The second is that real estate always has intrinsic value in the right location. Well, that is as long as the demographics don't change.

What you're referring to is debt is still cheap, not the economy is flourishing. All these things you describe were done with opm, ie debt, and the housing market is in as large a bubble as it was in 2007 but there's even more subprime mortgages (as well as car loans) out there making your stats look good. The fed just started quantitative restriction, where they stop buying bonds and start selling, and raising rates. This means an end to cheap money (low interest debt as fed notes are debt notes) and as the fed starts increasing their selloff of their balance sheet we should start to see the demise of the marketplace as so many market watchers have predicted. The bonds the fed sell are t bills, and what happens when tbills flood the market? The value of the dollar goes down down down.

One market guy decided to step out and even give the day of the collapse, valentines of 18 but I have no clue when they will drop it all, just that I expect them to. Once they (fed) own all the mortgages and car loans that they've been buying with the debt you agreed to pay via your elected officials they can drop the dollar to 0 and buy up entire industries for pennies on the dollar just like they did in 1929. The rug has been pulled out from under us, the straw that broke the camels back has been placed on the pile, the dead cat bounced but since the dead cat was in heat, the male cats (investors) are raping said cat in the middle of the street as cars race by, they can't help themselves. Nothing that went wrong in 07 has been fixed, instead of one Lehman bros there'll be thousands, as well as bank bail ins where your bank acct is used to cover the banks losses. They could collapse it tonite if they wanted to. And by them I mean whoever tells the ppt what to do.

Here's a story how the ppt plays the stock market and makes it dance to whatever tune they desire, one of the best I've read on the subject;
http://www.zerohedge.com/news/2017-0...verything-else

In essence, they (ppt aka "plunge protection team" who has all the money in the world to buy stock to keep the market from collapsing and can actually shut down trading in the US if needed) play the vix when the market is overheated or faltering, then play the market when vix is too high, and sell paper gold and silver all the while. They pump the til over here till people get wise, then they pump over there. The metals markets are flooded with paper, meaning some 400 paper ounces of gold for every actual deliverable ounce at comex. Right now if people can't get actual metal from comex they're paid a premium and as long as people will take dollars instead of gold they can keep inflating the paper gold, but what happens when people stop accepting paper gold? A little thing called price discovery takes place, where gold as in the metal shoots up to $50k an ounce. So who takes the fall when people start demanding actual gold or silver instead of paper? Whoever is running comex at the time, certainly not the central banksters. Not too long ago the Chicom version of ppt stopped trading a few times and even made it a rule that certain stocks couldn't be sold or traded. Nothing is as it seems.... especially in the financial world were not one in a thousand knows wtf is going on.


Just my take on the deal.