John Mauldin is starting to see things clearly (finally)

I have, on several occasions, taken John Mauldin to task for the fact that he just doesn't "get it".  I've written him emails 1:1 multiple times about this and also posted publicly.  Here is one such post from 2012 that will give you a flavor for my message to him.


In today's edition of his Thoughts From the Front Line email, Mauldin finally came clean.  He writes: "I was wrong when I took the (decidedly contrarian) position that we were in for a mild recession. It turned out to be much worse than even I thought it would be, though I had the direction right. Sadly, it usually turns out that I have been overly optimistic.... 

I am becoming increasingly exercised that the new direction of the US Federal Reserve, which is shaping up as "extended forward rate guidance" of a zero-interest-rate policy (ZIRP) through 2017, is going to have significant unintended consequences." 

Welcome to the real world John.  First of all, despite what you just wrote, "muddle through" was not contrarian.  It was and continues to be the main stream view.  Were it not then the stock market (AKA confidence gauge) would not be at its current lofty levels.  When my views truly become main stream, the DJIA will be at 4000 or less.  That is how you will know that the masses have mostly woken up.  Also, while you are finally waking up to the fact that the corrupt and dying global economic system requires perpetual life support lest it collapse, you still have not figured out what is really going on.  You are still so lost in the details that you miss the big picture.

I'll say it once again, Mr. Mauldin, in the off chance that someone forwards you a link to my blog: the reason things are what they are is because the US is and has been running a global debt Ponzi.  It is a scam, a con which is powered by con men who have convinced the people that something for nothing is not only possible, but in fact normal and expected.  The whole world wants to believe in zero point energy, overunity thermodynamics and perpetual motion because it sounds good.  It sounds like people won't have to work so hard or so late in life.  It's akin to lions on the African plain having convinced the gazelle herd that they no longer have to forage each day for food and that they should expect free food to be delivered to them by helicopter each day.  The con game plays on the greed and ignorance of the patsies, just like any other 2 bit con. 

The main energy source of the con is fiat currency and fractional reserve banking.  These scams make it seem as if something for nothing is actually possible since those at the top are clearly benefiting.  The patsies are sitting under the table waiting for some crumbs to fall down (AKA trickle down) that used to happen but is now getting pinched off.  When the credit was flowing, corporations which had access to credit found it easy to expand and to make a profit.  As a result, they were not very efficient. They let a lot of crumbs fall off the table and into the pockets of the common man.  It all seemed pretty good.  But now that the credit is seriously impaired, corporations no longer have access to easy money and so they are tightening the screws on the workers.  The entire concept of pensions in the US labor force has been destroyed.  Corporations are hiring new workers at very low pay rates and in vastly lower numbers.  Robots are replacing unskilled labor.  You really have to be among the best and brightest in order to receive a salary whose buying power reminds you of what was easily available 10 years ago.

No con every lasted forever and it will not be different this time.  The con has been playing for decades and so immediate collapse should not be expected.  What should be expected is that when the collapse occurs that it happen so swiftly as to take most people by complete surprise.  The patsies will be saying "we never saw it coming".

"Now as to the times and the epochs, brethren, you have no need of anything to be written to you. For you yourselves know full well that the day of the Lord will come just like a thief in the night. While they are saying, "Peace and safety!" then destruction will come upon them suddenly like labor pains upon a woman with child, and they will not escape.…"
--Thessalonians 5:2  

Is it just me or do the global troubles seem to be occurring closer and closer together, like a woman's labor pains?