Thursday, September 19, 2013

Federal Reserve keeps on buying

Yesterday the US Federal Reserve, the "central bank" announced that it will continue its "quantitative easing" policy and create $85 billion dollars from nothing in order to buy US Treasuries and Mortgage-Based Securities from the open market. The Fed is creating a liquidity crisis in these markets while also feeding a new, more explosive bubble in the stock market.

Each financial crisis over the last 25 years, from 1987, to LTCM in 1998 to the Nasdaq bubble to the housing bubble has been bigger and the end result more devastating. The housing bubble burst in 2007-8 literally vaporized part of Wall St.

Many countries in Europe are still in bad economic condition and because of their poor demographics things look  to only get worse. Japan just keeps slowly sinking again with terrible demographics. In the US the baby boomers are turning 65 years young at the rate of 10,000 per day and this will continue for the next 15 years.

The average age of a farmer in the US is 57 and in Australia its 58. The family farm is disappearing and with it is non-GMO poison from the likes of Monsanto.

All this spells a tough few years coming up. Hang on.

But tonight's full moon sure is lovely.

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