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The Federal Reserve has assisted in the growth of
the
US debt bubble
. Debts must continue to
grow by at least
$2.5 trillion per year in order to keep GDP growth
at 3-4%. Unlike prior recoveries, economic growth is dependent upon new credit creation.
Videos updated Oct 08!
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Alert..Signs in the markets of asset price deflation
some call the beginning
of the Kondratieff Winter. At the same time we see the Federal Reserve performing
the largest infusion of cash into the banks in the history of human existence. Your life
savings may be at risk and depend upon your actions today.
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From July 2008 through the beginning of 2009, oil and most commodites
have plunged to inflation adjusted levels never seen in the past.
The January 2009 oil price is the lowest in history when priced
in the value of one ounce of gold. Until the recent plunge in price, the number of barrels
of oil bought by one ounce of gold
did not fluctuate.
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The money supply has grown at an exponential rate since the
mid '90s. The US dollar has dropped in relation to other foreign
currencies, Currently the US needs to attract almost
2 billion dollars per day (
$500 billion in 2003) to subsidize our foreign trade
deficit, in addition to annual federal budget deficits.
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Inflation
is a hidden tax on consumers. Over time it is added to the cost of each
item purchased as each unit of currency buys less and less until
it is worthless. By changing the way the CPI is computed, government is able
to create an illusion of stability.
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Ten deficits
that have been building over the past decade that
cannot continue to grow indefinitely. Continued growth in the economy
and equity markets are dependent
upon growing debts from foreign sources.
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The recovery since the year 2000 has been unlike any other recovery in history.
With the help of low interest rates producing double digit real estate appreciation,
consumers have used their mortgages like ATM machines. Future growth
remains dependent on low rates and growing household debt.
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If you could write the
perfect script
for a backdrop to the
greatest bull market in precious metals, what would
it look like....
If only....
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The current
Economic Recovery
is dependent upon an increasing amount of debt creation. Follow the
dollar as it travels around the planet and returns to the US in the form
of new debt.
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The Kondratieff wave consists of a credit expansion
and contraction cycle that normally spans 50-60 years.
For an overview of the Kondratieff theory
CLICK HERE.
Excellent overview, Kontratieff inspired, by
Martin Armstrong It's Just Time (pdf).
Ian Gordon, an expert on Long Wave Analysis produced a multi-media presentation
CLICK HERE.
Prior Winter cycles in the US Click Here.
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