Monday, November 19, 2012

‘Fiscal Cliff’ Only One Of America’s Future Problems


Fiscal Cliff Grand Bargain Creative Commons Photo credit DonkeyHotey Fiscal Cliff Only One of Americas Future Problems
Whether Barack Obama’s policies are popular or not is immaterial. They are destructive and will eventually be seen for what they are by all but the most dedicated parasites among us. The pain Obama will cause us all will injure us all to one degree or another and time will bare this prediction out.   Time will enable us to say “We told you so,” although that will be little consolation.  Things are so bad the world over that nothing can stop the eventual collapse of the global financial markets.

This is the situation we face according to well respected Economist Jim Fitzgibbons who heads the Highlander Fund.
Here are Fitzgibbon’s observations and predictions:
”We will be contracting in 2013 (Recession…Depression).  I had originally thought a clear implosion was due Q2 2013, but I now have to consider a moving up in time.”
“[The coming recession] runs the risk of being substantially worse than what happened in 2008. This is a global bank melting, not just an American event. Our model suggests a few things at the moment:
”Risk assets are about to get clobbered in 2013 and a Bear market bottom is due by Q4 2013, a bounce that is pathetic and a final crushing bottom in 2016.”
”Real economic activity is about to slow precipitously and commence a serious global contraction.”
”We are stuck in a Banking deflation. Inflation and hyper-inflation cannot get a foothold until new credit can be created and lent quicker than the repudiation and destruction of outstanding debts. So far, no such evidence.”
“Storm Sandy will knock real GDP much lower than most originally forecast…0% to 1% annualized. Q1 2013 will be seasonally higher, and then collapse into mid-year and year end 2013.”
“The real deadly event is when the U.S. Treasury Bond Market peaks and flails, then reverses course. I am expecting that in 2013.”
“Like Sandy beat up the northeast, we are now forming the Perfect Storm in banking, finance and economics.”
Clearly things like this will happen and we can only scramble to find a way to survive as they unfold. This is a time for prayer and hope that the hand of God will save America from the worst of what is coming. Nevertheless, we are a tough and resilient people. If any nation in history could survive what Obama has brought on America, America is that country.
Photo credit: Creative Commons DonkeyHotey

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