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Title: Hussman: The US Economy Is Becoming a Ponzi Scheme
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URL Source: http://www.moneynews.com/StreetTalk ... 09242014&s=al&dkt_nbr=7bmwfpfi
Published: Sep 24, 2014
Author: John Morgan
Post Date: 2014-09-24 17:17:09 by BTP Holdings
Keywords: None
Views: 301
Comments: 34
Hussman: The US Economy Is Becoming a Ponzi Scheme Wednesday, 24 Sep 2014 07:01 AM By John Morgan The United States has evolved into a nation with a Ponzi economy, in which the continuous expansion of debt is the only thing that keeps prosperity alive, according to Federal Reserve critic John Hussman. In his weekly commentary, Hussman, founder of the eponymous Hussman Funds family of mutual funds, said the U.S. economy appears fine on the surface, but that capital accumulation and labor force participation have buckled below – with dire prospects for the American future. "Over time, growth in the standard of living is chained to and limited by growth in productivity," he wrote. "When the most persistent, most aggressive and most sizeable actions of policymakers are those that discourage saving, promote debt-financed consumption and encourage the diversion of scarce savings to yield-seeking financial speculation rather than productive investment, the backbone that supports a rising standard of living is broken." Hussman said real gross domestic investment has "crawled" at an annual growth rate of only 1.4 percent since 1999, compared with a 4.9 annual rate in the previous five decades. In recent years, he noted, "financial repression by the Fed has held interest rates at zero, discouraging savings while encouraging households to go more deeply into debt." The same mentality has allowed the government to go even more deeply into debt while expanding unemployment compensation and other assistance to obscure the damage. "As long-term economic prospects have deteriorated, the illusion of prosperity has been maintained through soaring indebtedness, coupled with yield-seeking speculation in risky assets that has repeatedly (albeit not always immediately) been followed by crashes throughout history." The effect of the Fed's wanton excess has not left corporate American unscathed, according to Hussman. He said corporate and junk yields are insufficient to justify their additional credit risk, and leveraged use of corporate debt at historically extreme valuations is especially alarming. "If you wonder why the economy feels 'fine' despite the persistent thinning of the U.S. capital base and the hollowing out of its middle class, it’s because we are covering the shortfall at every turn with the endless issuance of cheap debt that needs to be rolled forward forever." Hussman offers a recipe to start fixing the problems, including raising bank capital requirements, offering investment tax credits and job training credits, a return to normal interest rate policy by the Fed, more local enterprise zones and more curbs on leveraged transactions by too-big-to-fail financial institutions. "Despite the short-term enjoyment that comes from living within an ever-growing Ponzi scheme, our long-term economic future relies on ending it," Hussman concludes. Hedge fund billionaire Julian Robertson sees bubbles in both stocks and bonds now, leaving investors few places to go, CNBC reported. Bonds "are at ridiculous levels, so that the saver, the small charity, has no place to put his money except into stocks. I think that situation is serious on that score. Nobody seems to be concerned about that," he noted. "It's a worldwide phenomenon that governments are buying bonds to keep their countries moving along economically. I don't know when [bursting of the bubbles is] going to happen, but I think it will happen in a very bad way," he said at a Bloomberg conference, according to CNBC. Read Latest Breaking News from http://Newsmax.com www.Newsmax.com/Finance/H.../id/596356/#ixzz3EGo2Ky4T
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#1. To: BTP Holdings (#0)
It's been one since 1913 for crying out loud. “The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
Jajajja aaa !
Indeed... Some people still believe in the tooth fairy.
It'll be interesting times whenever we implode...could be messy. I pray that I'm gone before then. “The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
Eighteen year old kid has not a chance. There are a few secluded islands in Southwest Pacific where a few people could survive.
Since our passports, and our ability to travel, have expired; we're here till the bitter end.
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
Woodrow Wilson was the OG of American ripoff. Still, LBJ pushed it a lot further. The LBJ Dysgenic Breeding Program is IMO the coffin of civil society, it's just a greedy f-ing soap opera after that. Still, gotta give Wilson credit for setting the stage: Making the world safe for Democracy and every other form of mob rule. corruptissima re publica plurimae leges - Tacitus
corruptissima re publica plurimae leges - Tacitus
Good grief! - lol That's awful. “The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
LOL - yikes this is truly awful :) corruptissima re publica plurimae leges - Tacitus
That's awful. Try turning up the volume. I love this song! corruptissima re publica plurimae leges - Tacitus
sometimes, I know I got to get away... corruptissima re publica plurimae leges - Tacitus
• Within four hours of eating garlic, a person may not enter a movie house, theater, or ride a public streetcar. corruptissima re publica plurimae leges - Tacitus
Dax - you're now in charge; time for me to go make mattress love...
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
Ewww, ok, good luck! corruptissima re publica plurimae leges - Tacitus
corruptissima re publica plurimae leges - Tacitus
Y'all are on your own, I only wanted to steal a Mustang and drive west... corruptissima re publica plurimae leges - Tacitus
Elvis was weird!
corruptissima re publica plurimae leges - Tacitus
Go Hunter S. Thompson for us all - we need to escape. Now, to the rack. “The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
corruptissima re publica plurimae leges - Tacitus
corruptissima re publica plurimae leges - Tacitus
becoming a ponzi scheme?
#2. To: Lod (#1)
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your counsel nor your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen.”—Samuel Adams 
#3. To: Lod (#1)
It's been one since 1913 for crying out loud.
#4. To: Cynicom (#3)
#5. To: Lod (#4)
I pray that I'm gone before then.
#6. To: Cynicom (#5)
#7. To: Lod (#1)
It's been one since 1913 for crying out loud.
#8. To: Lod (#6)
Since our passports, and our ability to travel, have expired; we're here till the bitter end.
#9. To: Dakmar (#8)
(Edited)
#10. To: Lod (#9)
LOL, Lod, I'm thinkin that generation gap thingy screwin' up yer brain again :)
#11. To: Lod (#9)
Good grief! - lol
#12. To: Lod (#9)
#13. To: BTP Holdings, christine (#0)
I knew it was just a matter of time time before the authorities cracked down on me and my free-wheeling gourmand gang.
#14. To: Dakmar (#12)
#15. To: Lod (#14)
Dax - you're now in charge; time for me to go make mattress love...
#16. To: Lod (#9)
I've wasted it so, I know what I am... :)
#17. To: All (#16)
#18. To: Lod, X-15, Jethro Tull, James Deffenbach, christine, abraxis (#17)
#19. To: Dakmar (#17)
#20. To: Lod (#19)
Go Hunter S. Thompson for us all - we need to escape.
#21. To: Lod (#19)
Sweet dreams, Loddie!
#22. To: Dakmar, Jethro Tull, James Deffenbach, christine, abraxas (#18)
-Alex Kurtagic
#23. To: X-15 (#22)
ready? 1 - 2 - 3 ...
corruptissima re publica plurimae leges - Tacitus
#24. To: X-15, Lod (#22)
corruptissima re publica plurimae leges - Tacitus
#25. To: X-15 (#22) (Edited)
corruptissima re publica plurimae leges - Tacitus
#26. To: All (#25) (Edited)
LOL, I thought this was a Metalica song. Prolly oughta lay off the liquor...
corruptissima re publica plurimae leges - Tacitus
#27. To: Dakmar (#10)
If Charlie Daniels was dead he would be spinning in his grave.
Americans who have no experience with, or knowledge of, tyranny believe that only terrorists will experience the unchecked power of the state. They will believe this until it happens to them, or their children, or their friends. Paul Craig Roberts
"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it." Frederic Bastiat
#28. To: James Deffenbach (#27)
LOL, I have to admit, much as I like Primus, that was the worst butchering of any song since Cher did...well, anything. If Charlie Daniels was dead he would be spinning in his grave.
corruptissima re publica plurimae leges - Tacitus
#29. To: Dakmar (#28)
My ears are bleeding.
Americans who have no experience with, or knowledge of, tyranny believe that only terrorists will experience the unchecked power of the state. They will believe this until it happens to them, or their children, or their friends. Paul Craig Roberts
"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it." Frederic Bastiat
#30. To: James Deffenbach (#29)
I'll try to find some Melvin's tracks from their easy listening period. Soothing. I swear, put you right at ease! My ears are bleeding.
corruptissima re publica plurimae leges - Tacitus
#31. To: James Deffenbach (#29)
is this too loud? Too crazy? Oh well...
corruptissima re publica plurimae leges - Tacitus
#32. To: James Deffenbach (#29) (Edited)
Check this out, the kid they got playing Crower is dead-on perfect. The one playing Buzzo ain't too bad either, at least he knows how to hold a Gibson. The rat playing bass...let's kill him, no one would notice! :)
corruptissima re publica plurimae leges - Tacitus
#33. To: Cynicom (#5)
There are a few secluded islands in Southwest Pacific where a few people could survive. And, the globalists are calling for total global war. The thing is, the President of China says that a war between the U.S. and China would benefit neither. After all, who would buy all the junk they make over there? ;) Eighteen year old kid has not a chance.
"When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
#34. To: Dakmar (#31)
There was a kid named Melvin in the old neighborhood in Chicago. He told me his mother did not want his sister hanging around with me, Oh well. ;) Melvin
"When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
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