Thursday, June 13, 2013

Letting the Cat out of the Bag

"If you look at it historically, there has never been a period when the Fed has started to take back stimulus that has left the markets untouched.  And this time it is a bigger exercise. We have moved markets from 2009 to 2013 on stimulus and now we are trying to take a step into a world which is more driven by natural growth. That transition will not be easy." - Hans Peterson, global head of investment strategy at Swedish bank SEB.

Everything between 2009 and 2013 was "stimulus".

You understand what that means right?  It means when you look at your gains in the stock market... they aren't gains at all.  Its pure inflation.  Every penny.  They outright admit this to you... and you probably still doubt it.  You probably still can't conceive it.  Even as you notice that 6 bucks used to buy you a 24 pack of cokes... and now the box is smaller...  and you only get 20 cokes...  for the same 6 bucks.  Or the Doritos that were 3 dollars last year are 4 now...  on and on and on.

Forget inflation and deflation for a moment.  And just focus on this one thing... and get it through your head.

There is no recovery.  There is no recovery.

THERE IS NO DAMNED RECOVERY.

It is not getting better.   It is not going to get better next year... or the year after.

You have at most 3 years to prepare.  I am not going to sit here and tell you everything you need to do.  Figure out what you need to do and do it.  If you don't... don't blame me.  You were warned.

24 comments:

patrick kelly said...

I have not prepared enough, but I'm part of a community where everyone has prepared some with varying skills and resources. I'm a bit concerned about who honestly have any realistic expectations about what's coming. Not ideal, but better than nothing.

Mindset and attitude are go to assets. Hopefully these will keep me from going full retard panic when worse $#@! starts erupting around me and I will have some good moments of focus and clarity to guide me through. And may God continue to have mercy on me.

In the mean time, more food, more water, more PM, more whiskey.....I'm pretty set in guns and ammo..... more backup plans to my backup plans....

Redneck Joe said...

I gotta let the Perry County neighbors know I am a Copperhead before TSHTF.
Not easy to do from Colorado. Consulting contract for the next few months.

Nate said...

They'll figure it out pretty quick joe. About the first time they talk to you and you don't start telling them how much better it was in New Jersey.

Kiwi the Geek said...

What I need to do is find a husband. Anybody want a 35 year old woman who's been tested & proven faithful?

Yeah, didn't think so. Plan B: Psalm 68:5.

Nate said...

I am always looking for additional wives.

Kiwi the Geek said...

Er ... Um ... Probably unwise to be a second wife. The FSM does not like me.

Actually, I would be afraid to meet you in person. Way too alpha. Sounds crazy, but I'm attracted to white knights if they don't go to extremes.

Matthew said...

Senior wives make good buffers for the alpha. You'll be okay most mornings.

Nate said...

afraid?

yeah... I can see that.

Susan said...

You think we have that long? My hubby has been hearing reports of things hitting the fan as quick as July or August of THIS year.

At the very least a major terrorist attack on or near the July 4th holiday.

Daniel said...

Susan, I'd be surprised if that's on the agenda. The government already found its Summer Toy: Syria.

Besides, they are already have so many resources committed to the IRS-Benghazi-NSA trifecta, that I'll be surprised if they go for the two-fer.

The inevitable bit is the long- and wastefully-forestalled economic collapse. It is hard to know exactly when it won't be a choice whether it gives up the ghost. It is sort of like sudden death overtime. But just looking at field position, 2015 seems good, although 2014's planned Obamacare implosion should be a very interesting accelerating engine.

Susan said...

Daniel

When all the base that voted for the schmuck for the second time figure out that their required insurance premium will mean they can't eat or pay the rent, there is going to be some major league screaming going on.

And don't forget about that lovely poison pill in the bill that allows the feds to dip their fingers into your account to just take that money.

I have suspected that this was in reality a setup to get us ready for the national haircutting of retirement accounts.

WaterBoy said...

Susan: "I have suspected that this was in reality a setup to get us ready for the national haircutting of retirement accounts."

That makes no sense. The Boomers in charge taking money away from their fellow Boomers who are about to dip into it?

Only if there's a clause exempting that generation while sticking it to the younger ones.

Athor Pel said...

"Kiwi the Geek said...

What I need to do is find a husband. Anybody want a 35 year old woman who's been tested & proven faithful?

Yeah, didn't think so. Plan B: Psalm 68:5.

7:59 PM"




I'm always willing to entertain applicants.

Anonymous said...

ammo test:

http://www.luckygunner.com/labs/brass-vs-steel-cased-ammo/

Kiwi the Geek said...

*deer in headlights*

Are you serious?

Geoff said...

@Nate,

If our home state turns out to be a bad spot to fight it out, what countries are you considering worth sailing to?

Athor Pel said...

"Kiwi the Geek said...

*deer in headlights*

Are you serious?

8:43 PM"





Don't put your hook in the water unless you're ready for the bite.

Consider the hook bitten.

Kiwi the Geek said...

I see comments like that often at VP, but I never see the people give contact info. I figured maybe it's just talk.

Kiwithegeek at gmail dot com

Nate said...

I will officially vouch for Athor.

Susan said...

Waterboy,

Nationalizing retirement accounts has been in the works for a while now. It only came out into the open a year or so ago because the Argentine president jumped the gun and went ahead and did it.

They are just waiting for the right moment to strike. They will figure out a way, then dole it out back to you like SocSec.

Obama is already on record this year as saying that people should be limited to a grand total of (I believe it was)$3mil tops lifetime retirement. That is plenty for a person to live on in his opinion.

401k's are a disaster waiting to happen.

Athor Pel said...

Thanks for the character reference Nate.


Kiwi,
email sent

WaterBoy said...

Susan, I understand that talk of it has been around for quite a while.

What I want to know is why people think that Boomers will be the ones to cut their own throats, rather than continuing to cut the throats of the next generation(s), instead, as they are wont to do.

If anything, I could see the GenX-ers coming into power and enacting such a thing. It just doesn't make sense that Boomers would suddenly become unselfish and give it all up.

Anonymous said...

Get a Date at Nate's.

Sweet.

WaterBoy said...

Yeah...I thought Beau was the unofficial matchmaker of the Ilk....