Sunday, March 20, 2016

Excellent post from John Mauldin

John Mauldin has penned an excellent post entitled "An Open Letter to the Next President".  In it you will find the details about the global debt Ponzi that most people just have no clue about.  Of course, none of this helps anyone with market timing.  For that we need Elliott waves.  But rest assured that at some point the global markets are going to implode.  Maybe it will be the end of 2017 which is my long standing guestimation.  Maybe EWI will be correct and the beginning of the end was actually the market peak of 2015.  But sooner or later people will rush to take their money out of the global banks which are all insolvent.

I urge you to not believe a damned thing that the establishment says about what is really going on with the economy.  Every comment they make is clearly self serving.  Mauldin was himself an establishment supporter and I called him out on that score in these pages many times a few years ago.  Before 2010 he was calling for a "muddle through" economy and I was telling him he was nuts in direct emails because what we had and have is a global debt Ponzi and nothing less.  Mauldin eventually dropped the "muddle through" line and saw the light.  Now he understands that it's a bug in search of a windshield, and not just Japan.  Once a major player collapses there will be a domino effect for sure.  We are all in the same boat here.

You will do right by yourself to stop saving your retirement funds in an account that is controlled by a corrupt government.  This is not a conspiracy theory statement.  Its just economic fact.  The government is going to grab for any and all straws once the collapse finally begins to pick up steam.  I fully expect to see the loophole that I used to leave the 401k system with my wealth become cut off in the next 12+ months (pay a penalty between jobs and take all your money out and pay income tax on it).  For most people it seems a high price to pay but I got out cheap.  Most people will not get out at all they will have to sit and watch helplessly as the buying power of their savings is eroded or just plain old stolen outright "for the good of the country".  Yeah I know it sounds crazy and a lot of my other predictions did too until they came true.

Start making plans to store the bulk of your wealth outside of the system, outside of banks outside of government controlled retirement accounts.  We ain't seen bad but it's coming and the data is piling up like pressure on an earthquake fault.  When it goes it will likely look like one of these stock charts that collapses 50% in a day.  Otherwise there will be time for too many people to escape and that simply cannot happen because there is not enough real wealth in the system to cover all the paper promises. 

The entire system is fractionally reserved.  It is all an illusion; a dream.  Those who get themselves safe early and often will avoid the worst parts of the coming nightmare.

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