Friday, August 28, 2009

Max Keiser: Bank Runs, China

This video is your absolutely last and final warning.

Zero Hedge told us:

1) that half of all volume on the NYSE is in five worthless bank stocks

2) that 70% of all trades are made by Goldman Sachs purchases and sales of stocks in advance of trades by brokers so they can clip up to 100 million dollars a day from investors including mutual funds and pension plans. (This means that there is no demand for American stocks.)

3) that the FED has bought over a trillion and a half dollars in derivatives.

Peter Schiff told us that in the last seven minutes of trading the government is intervening to buy 100,000 futures contracts to force up the price of stocks. Sounds to me like the FED and Wall Street are pumping up the price of stocks so they can dump their personal holdings before the dollar and the stock market collapse and you lose what is left of your pensions and your life savings.

I read a news article the other day saying that the Price Earnings ratio of stocks on the S&P 500 was 129 to 1 for the first 97% of stocks reporting their second Quarter earnings.

The Inspector General for TARP said the real cost of the Toxic Asset Relief Program was 23.7 trillion dollars.

Karl Denninger said the real amount of bad debts is probably 30 trillion dollars.

Take a look at these charts. link Nobody is buying our Treasury bonds. Most of those supposed foreign purchases were made by the Federal Reserve printing money and giving it to foreign governments and to foreign branches of Bailout recipients to buy American Treasury bonds.

As I said before, from 1970 to 2008 we borrowed money from China to buy everything at KMart and WalMart, money from Japan to buy cars and electronics and money from the OPEC nations to buy gas. In 2009 we printed our own money to buy our own debts. The U.S. House of Representatives, the Senate and the President did not realize that when you borrow money from overseas you get to buy their things but when you print your own money to buy worthless paper products from the Treasury Department all you get is higher prices. Much higher prices. And much lower wages. That is why I have been warning you that American wages in real after tax dollars will be cut in half.

The stock market and the dollar are about ready to collapse.

Does anyone hear a war starting somewhere? Or maybe a plague? Or both? Or better yet a non-violent people power revolution like eastern Europe after Communism went bankrupt in 1989?

Note: I am not an investment advisor offering you financial advice and I certainly do not know your personal situation. I also am not advocating a violent revolution. What I have been saying for some time is that the dollar will collapse before the end of 2009 and that this will be our last chance to take back our government from Wall Street after both the currency and the government collapse.


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