The Federal Reserve has pulled out all the stops since 2008. They’ve used every extreme method to keep the oligarchs fat, happy and rich. The Fed helicopters have been flying over Wall Street for the last five years dropping $3 trillion of fiat and scooping up trillions of toxic assets. It has failed. The country is in far worse shape today than it was in 2008. The American people are $6.5 trillion more in debt, paying twice as much for gasoline, with 7 million more people on foodstamps. More people have left the workforce than have gotten jobs. But the.1% have done splendidly, which was the Fed plan all along. But now the unintended consequences have arrived. Currency wars and inflation in emerging markets are going to bring the mountain of debt tumbling down. The secular bear market that began in 2000 will resume. There is a 50% fall on the horizon. Janet Yellen is the dupe. She just doesn’t know it yet. Richard Russell knows.
Via King World News
“The bear market that started in October of 2007 continued through 2008, but at the 2009 lows the Fed intervened with all the ammunition at its command, and halted the bear market.
What we’re seeing now is the primary trend overpowering the Federal Reserve. We’re now seeing the resumption of the bear market that was interrupted at the 2009 lows. All bear markets are international in scope. Thus the primary bear trend that we’re now in will affect everything on the planet. Already we hear reports of a slump in China’s manufacturing. When new Fed Chairwoman Janet Yellen takes command, she will have to open the spigots wide in an effort to halt de-leveraging and deflation.
Interestingly, fiat currencies around the world are sinking. There’s only one currency that represents safety, and that currency is gold. Which, by the way, is higher today. I expect to see further semi-crash action in the days ahead, as the primary bear market resumes. I think investors will remain hopeful as long as this decline remains this side of 10%. But if the decline surpasses 10%, I believe we will see panic action as investors realize that this is not a correction, but a bear market.” – Richard Russell
