AMERICA IS ON THE VERGE OF A BREAKDOWN

Report by Bill Bonner, author of New York Times best-sellers (Empire of Debt, Financial Reckoning Day, Mobs, Markets and Messiahs) and now his latest book (When The ATMS Go Dark).

A meeting with Greenspan (centre), myself, Bill Bonner (left from centre), and other experts at my office

In Baltimore, the stadium loudspeakers sounded again: “Ladies and gentleman, due to an ongoing public safety issue, the mayor of Baltimore and the Baltimore County Police Department have asked all fans to remain inside the ballpark until further notice.”

Then silence… Except for a distant white noise… the sound of an enraged mob tearing through stores, police, and bystanders…just outside the stadium walls.

Something had gone terribly wrong in the city that night…

Image result for picture of riots on the streets of Baltimore

By that time, the cell networks had started to go down.

In New York City, a man wearing a red Make America Great Again hat was choked on the subway as fellow passengers did nothing to help.

In Chicago, a 50-year-old man was dragged from his car and beaten. Instead of helping, onlookers accused him of voting for the wrong political candidate.

In Washington, a young woman who showed up to support the new president had her hair set on fire by “black bloc” radical leftist protesters.

In Berkeley, California, a Patriots Day rally turned into a battle for the streets between black-clad anarchists and a right-wing militia group.

A website by the anarchist group “black bloc” (the same ones who smashed windows, threw Molotov cocktails at police, and set Berkeley on fire) asks for donations to “send reports to uprisings and rebellions in so-called North America.”

Another “resistance movement” lists 5,983 local cells spread across the country – and they’re not just confined to the coasts, either, as you can see… The red dots are for upcoming “actions”, the blue dots are locations of the cells.

Now, we’ve had unrest before in this country. Many times.

During Holy Week 1968, the assassination of Martin Luther King, Jr., set off riots across the country.

In 1991, the Rodney King riots resulted in 1 billion dollars’ worth of damage, 50 deaths, and a vicious attack on an innocent truck driver.

But this is different. There is an anger brewing here. One I have never seen in my lifetime.

We have protesters caught on camera saying: “people have to die”…

Meanwhile, protected elites like Maxine Waters and Chelsea Clinton, safe in their million-dollar homes, egg the crowds on…

As of writing this, I count at least seven mass political actions scheduled in the next few months alone. Which of these will explode into a riot, I don’t know. Hopefully none will.

But a recent conversation among members of an extreme resistance group on the social media site Reddit shows an alarming trend…

Here’s a sampling of what they said:

  • “I honestly think we need a campaign to get more [of us] armed.”
  • “A shocking number of comrades went in there with absolutely no combat training.”
  • “We need more than flags and bats. […] I know getting firearms in states and cities we have a presence is usually a hassle, but even handguns would help.”

Is it any wonder then, that these same groups are setting universities on fire, while students who refuse to go along with the crowd are threatened with violence?

And it’s not just happening in “dangerous” cities like Baltimore and Chicago. Violent crime is now rising in places like Denver, Salt Lake City, and Louisville. In the small town of Tiburon, California, a 74-year-old conservative radio host and his 12-year-old dog were assaulted and knocked to the ground while out grabbing a bite to eat. In Ohio, another 74-year-old man was murdered live on Facebook, as he walked home from Easter lunch, young kids are putting police officers in the hospital. People are broadcasting racist attacks and murders live on Facebook.

And here’s the thing…

I think what we’re seeing here is merely Act One

As the magazine Foreign Policy recently explained:

“There appears to be…a sense that these are not just scattered outbursts, that all this is escalating somewhere.”

What it’s all escalating to…the magazine’s editors aren’t so sure.

In this report, I’m going to tell you what’s really causing this unrest…

…and why it’s leading to a disturbing conclusion…sooner than anyone expected.

  • I see nearly half the population paying no taxes and dependent on aid from the federal government,
  • I see more Americans are dying of drug overdoses than ever before and suicides just hit a 30-year high.
  • I see a majority of Americans favouring wealth redistribution and higher taxes…which is probably why a Congress full of Republicans is unwilling to guard the rest of us against these things.
  • And I see the increasingly vocal and even violent opposition to traditional American values in our streets.

Sadly, Bonner like John Adams has got it wrong by thinking that the root cause is economic mismanagement alone.

John Adams said at the Constitutional Convention of 1787:

All the perplexities, confusion and distress in America arise not from defects in the Constitution or Confederation, not from a want of honour or virtue so much as from downright ignorance of the nature of coin, credit and circulation.”

Universities espousing a godless worldview, based on a totally false evolutionary theory of origins, has produced a younger generation that has no fear of their Creator God, nor respect for His values.

If there is no purpose or meaning in life, then what else would you expect but a ME generation of self centred, self serving young people prepared to do whatever it take to wrest control from the previous largely corrupt generation that has racked up debt that is unsustainable by providing services that cannot be maintained. This is the recipe for disaster that we see being played out. Moreover, this “end times” scenario is prophesied in the Bible, the book our Creator provided for us.

As I have pointed out in two recent posts, the reestablishment of the State of Israel back in 1948 (and its miraculous ( Six day War) retaking control of Jerusalem in 1967) is the first and major sign Jesus gave of His second coming, His return to earth at the place He left it, a little over two thousand years ago.

The Bible provides more prophecies of His second coming than His first. All of those were fulfilled, so you can be sure those of His second coming will be as well. Are you prepared for His second coming? Is your church prepared for His second coming? The Bible tells us there will be a great falling away in the “last days”. Even the elect deceived. As persecution intensifies, and it will if you take a stand against abortion,  gay marriage and transgender issues, will you stand firm. Sadly, much of the church has already given up on Biblical inerrancy particularly on issues such as Creation, adopting evolution, homosexuality, gay marriage and the related issues of God given roles for male and females in the family and church.

MARILYN MOSBY – GOD’S ESTHER for African Americans

Baltimore’s State’s Attorney Marilyn Mosby on Freddie Gray Case: God ‘Put Me in This Position for a Reason’

marilyn-mosbymarilyn-mosby (1)

Marilyn Mosby prays with church leaders, including Bishop Angel Nunez, during a prayer breakfast in Baltimore, Maryland, on April 28, 2014

Baltimore’s State’s Attorney Marilyn J. Mosby, the woman who criminally charged six police officers in the death of Freddie Gray on Friday, is a practicing Christian who declared at a recent prayer breakfast that God “put me in this position for a reason.”

“Mosby is a Christian, she loves the Lord. She’s part of our Multicultural Prayer Movement. I was in her office last week. I took her hands and we prayed together, and we wept and I prayed over her and I said: ‘God has raised you a woman of God for such a time as this. This is why God put you here and we stand with you.’ The woman depends on the Lord. This is a 35-year-old woman, an Esther in this hour,” said Bishop Angel Nunez, who leads Baltimore’s Multicultural Prayer Movement, in an interview with The Christian Post on Friday.

On Tuesday at the Bilingual Christian Church, Mosby spoke with members of the Multicultural Prayer Movement group, of which she is also a member. At one point church leaders, including Nunez who has been her friend for five years, gathered around her and prayed.

“I was reminded of Isaiah 41 verse 10,” Mosby, who recalled once having self-doubt while seeking election as Baltimore’s state’s attorney, told the congregants.

“Fear not for I am with you, be not dismayed for I am your God. I will strengthen you, I will help you, I will uphold you with my righteous right hand.”

And that is what kept me grounded whenever I had that self-doubt, whenever I said this is too much for me to handle as a wife, as a mother, as an attorney. I’ve got to tell you that God got me through and I have to believe that He put me here for a reason,” she said.

“So we will pursue justice by any and all means necessary. I appreciate your support Bishop [Nunez], you’ve been there for me from the very beginning,” Mosby added, before alluding to the riots which appeared to come to a halt after charges in Gray’s death were announced.

“Nothing transcends the power of prayer and let me tell you, our young people, I know that they’re called ‘thugs.’ Those are young people crying out; there’s a sense of hopelessness in this city and there’s nobody that can touch them the way that you all can, the way that we can …”

What’s ahead for us all in 2015.

Vern Gowdie of the “The Daily Reckoning” produced by Port Phillip Publishing (Financial News and Analysis Publications) wrote this article today “Its an Upside Down World”. He certainly tells it like it is and paints a bleak future, no a catastrophic future ahead.

Vern Gowdie The Daily Reckoning

A man secure in his faith need not fear the words of a blasphemer. A fanatic must hide from the truth wherever he suspects it.’  Author unknown

The US markets may have risen overnight but the world is very much poorer for the events that have occurred in Paris.

Slaying 12 people because they had the ‘temerity’ to express an opinion is barbaric. Freedom of expression and the sharing of opinions (whether you agree or disagree with them) is what gives rise to a richer society. One that is rich in knowledge, tolerance and ideas.

Using fear and intimidation to stifle the robust exchange of views has the capacity to make our society more insular. It is our hope that the brutal and cruel actions of a tiny minority do not succeed in this objective. Sadly, I think people will, at least in the near term, be more guarded in their views for fear of becoming the next victim.

Our thoughts and prayers are with the families and loved ones of the victims of this senseless atrocity. We stand with you and with the ideals of free expression— whatever that expression may be— that the journalists and cartoonists of Charlie Hebdo fought and died for.

At The Daily Reckoning, we will not succumb to fear…and promise to continue bringing you our uncensored views, from business and finance to geopolitical events.

The opening quote, by the way, was sent to me by Bernd Struben, the DR’s Managing Editor. It’s from a newspaper cut-out his mother kept tacked to the family refrigerator when he was growing up. It makes you wish more people were secure in their faith. And it tells you the three cowardly terrorists in Paris are riddled with doubts about their own fanatical dogma.

Now let’s move on from these events to something closer to home.

Maybe I’ve become a grumpy old man, but the world makes less sense to me these days.

People pay good money and endure pain to permanently disfigure themselves by putting indelible ink all over their bodies. Then, some pay even more good money and endure even more pain to have the ink (partially) removed.

People with no other talent other than blatant self-promotion make millions from narcissism. What does it say about society that these people attract an audience?

People turn a baseball cap backwards, mumble into a microphone and get paid millions for pumping out (c)rap. Reality TV creates instant fame for the most obnoxious people.

Some people have no shame or manners for that matter, yet society puts them front and centre, on magazines, TV promos etc., and the crowd goes wild. What sort of message are we sending?

Political leaders who dare mention the concept of living within our means and paying down debt see their approval ratings plummet to a level that’s on a par with Ivan Milat.

I don’t get it.

The world is being dumbed down in oh-so-many ways. Experienced teachers are voicing concern over the watering down of curriculum content, not to mention the lack of respect and discipline from a growing percentage of the student body.

A dumb society makes dumb choices and accepts dumb decisions.

Perhaps this explains why the financial world no longer makes sense to me.

A 22 year old invents a virtual reality headset that enables people to play more realistic games and Facebook pays him US$2.8 billion for it. What’s the going rate for the cure for Alzheimer’s?

Twitter (a narcissist’s must-have) is valued at US$23 billion. I wouldn’t give you a hundred bucks for it. I’ve never used it and my life is none the poorer for not knowing what self-absorbed people are doing every minute of the day.

My grumpy old man rant could go on — Uber, Facebook, Alibaba. Sure these companies have a value, but not the stratospheric ones that are currently — and I stress, currently — applied to them.

This is the upside down, valueless society we currently — and again I stress, currently — live in.

There’s a scene in Remember the Titans where Gerry Bertier (the white captain of the football team) accuses Julius Campbell (one of the African American players) of having a bad attitude. Campbell replies, ‘Attitude reflects leadership, captain.’

And so it is with the attitude of today’s society.

For forty years, the Western world lived beyond its means, borrowing to fund a lifestyle we had not earned. The GFC was the moment when the natural order of the universe had had enough.

Instead of heeding this call, our leaders put on earmuffs, hummed loudly and continued on as if nothing had happen.

Were those responsible for bringing the financial system to its knees held accountable? Hell no, they were given trillions to recapitalise and go back to business as usual (and along the way pay the token billion or three in fines from the multi-billion dollar profits they’ve been making).

Politicians continue to think money grows on trees (and to a large degree, the central bankers confirm it) and go on making promises that in the longer term cannot be met.

Japanese PM Shinzo Abe is the pin-up boy for spendthrift politicians. Abe-san knows no bounds on how to conjure up money to pay for mounting interest, welfare, health and energy costs. Given the lacklustre turnout at the recent Japanese elections, my guess is most Japanese realise they are damned if they do and damned if they don’t. So what the heck? — let Abe write his name in the ‘Catastrophic Disasters’ chapter of the economic history books.

Then we come to the leadership of our central bankers. These folks have enough letters after their names that you’d think they’d know better. Unfortunately, none of those letters spell c-o-m-m-o-n s-e-n-s-e.

Central bankers, in their effort to keep in play an economic model well past it use-by date, have turned the world of asset values upside down. Economic growth derived from wanton, credit funded spending is not sustainable.

In our upside down investment world, Japanese 10-year bonds are paying a measly 0.3% while Japan’s inflation rate is averaging around 1.5%. The Bank of Japan’s (BoJ) ability to print an unlimited amount of yen to finance Abe’s grand plans has completely distorted the bond market. Is this phenomenon permanent or temporary?

Likewise, we see the US share markets (S&P 500 and Dow Jones) soar to record highs during the most anaemic economic recovery since WWII. The wind beneath the market’s wings has been the Fed’s provision of plenty of cheap dollars to Wall Street. This is why multi-billion dollar valuations can be placed on tech companies that offer questionable value to society.

The following extremes in long term valuation metrics indicate how far from the norm we have strayed.

Valuation metric Current Historical Mean Year historical Mean measured from Deviation from Mean
Shiller PE 10 27.2x 16.6x 1870 +64%
Market Cap/GDP (the Buffett Index) 123% 69% 1950 +78%
Tobin Q Ratio 1.14 0.68 1900 +68%

The average deviation from mean is 70%. This is in the seriously over-valued territory where only the rarest and most infamous of markets have ventured — 1929, 2000 and 2007.

We may currently live in an upside down world, but the laws of mathematics remain the same — reversion to the mean is tried and true. The euphoria of ’29, ’00, and ’08 was short lived; the stratospheric prices soon returned to earth with a resounding thud.

The dumbing down of society has enabled our political and financial leaders to carry out this fraud in broad daylight. Mainstream economists not only endorse but actually encourage these hare-brained stimulus strategies.

Far too many people have little idea what is actually going on. So long as they can continue to buy tattoos, watch reality TV, play mindless computer games and listen to (c)rap while enjoying free health coverage and collecting welfare then all is okay with the world and woe betide anyone who wants to turn the world right side up.

Well folks, a reversion to the mean is coming, and when it does, the world is going be far meaner to a lot of people.

My gut feeling is the corrective activity the universe has destined for us will be of such a magnitude that it will change society for generations to come.

And when it does, this grumpy old man will be a lot happier.

Financial Crisis Inevitable – going to end badly say the experts

If this dialogue between two well known and respected financial experts doesn’t convince you we are in the Biblical end times nothing will.

Chris Martenson of Peak Prosperity interviews John Rubino author of two best sellers “The Crash of the Dollar” and “The Money Bubble”.

You need to listen to these two experts because they know that whilst the 2008 Economic Crisis was bad, the next one is going to be humungous. Why, because governments have allowed those that created the problem which was ‘out of control debt’ to try and fix it with more debt. People who should have been jailed are still there creating another big debt bubble which is then fixed with more debt. We see the smart architects of the problem get out and sound the warning of impending disaster. They caused the problem but now want to be seen as the voice of sanity. People like Greenspan write best selling books and still earn a fortune on the author circuit.

It can only end badly says John Rubino. “Debt is growing beyond all reason, it is going to end badly, it is beyond our control”.

Governments are already preparing for civil unrest and domestic terrorism. During the 2008 crisis the government was days away from instituting martial law. Well, the debt situation is exponentially larger with no fix possible because the complexity of the deregulated financial markets is such that even the experts can’t predict what will happen, let alone governments. They will have difficulty working out what happened and who was responsible even after the collapse. Listen to some of the descriptions: “Moral corruption in governments”, “Financial markets devolving into a branch of the Mafia”, “Sound money is a moral issue”, “Need to impose financial morality on governments”.

John Rubino suggests a good solution for each of us at the end of the interview. Get together with your local community and start preparing now for the inevitable.

As Christians we know what is coming and we know the ultimate solution – Jesus ruling and reigning on this earth. In the meantime we should be doing what He taught us to pray for “Your Kingdom come, Your will be done on earth as it is in heaven”. Let us play our part in bringing His Kingdom to bear in our sphere of influence. Let our church and our families be examples of what His Kingdom looks like.