The End Game

Since 2008, the general belief is that Bernanke and Fed saved America and the world from the abyss through the outpouring of trillions of dollars into the financial system.  Of course, all that liquidity ended up on Wall Street but not Main Street.  Yes, financial assets are up from March 2009; but your purchasing power has eroded big time.  Employment hasn't recovered.  May’s NFP added just 69,000 jobs on expectations of 150,000, which is a major miss.  (Good job pundits.)  See, all that liquidity added to the economy was simply adding more debt to the economy.  Yes, I expect with today’s NFP numbers and with the world markets collapsing (German Dax is now down over 4%.) that the way is now clear for Bernanke to institute another round of QE, which we should all know by now will also fail!

Of course, no one knows exactly what is on the economic/financial horizon; but I still maintain that during the next four to five years we will experience a social/economic meltdown of mega proportions, such as the following:

1. Unemployment rate of 35% to 50%, which if you look at the unemployment rate for teens in some of our states, we are already at those levels.
2. Majority of banks will fail, just not in the United States but worldwide. (Just look at Europe and some of the bank runs already occurring there.)
3. Governments will default on most of its commitments, just not its sovereign debt.  (Just look at Greece, Spain, and Italy.  And, yes, I believe it will happen here.)
4. We will experience major social unrest throughout the world.  (I believe that is already occurring, Europe.)
5. We will experience a radical political change not only in this country but also Europe.  (I don’t believe that it will make any difference what happens in November.  Who ever the President is, will probably end up being the most despised President to ever serve in that office.)