Everything Bubble: Code Red

By SRSrocco – Re-Blogged From http://www.Gold-Eagle.com

The US economy and markets are now the BIGGEST BUBBLES in history.  In 2000, we experienced the Tech Bubble.  In 2008, we suffered both a Stock Market and Housing Bubble.  However, today…we are in the “EVERYTHING BUBBLE.”

This is an excellent video presentation by Mike Maloney at GoldSilver.com.  Mike puts together some of the best quality videos in the precious metals industry.  This one is a MUST SEE.  If you are frustrated with the performance of gold and silver since 2012, this video shows just how insane the markets have become.

[You can start at the 2:10 mark without losing anything. -Bob]

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Bernanke’s Confetti Courage

By Michael Pento – Re-Blogged From http://www.gold-eagle.com

Former Fed Chairman Ben Bernanke’s book titled “The Courage to Act” is now available in paperback. This isn’t a surprise because, after all, his proclivity to print paper encompasses the totality of what his courage to act was all about. The errors in logic made in his book are too numerous to tackle in this commentary; so I’ll just debunk a few of the worst.

Bernanke claimed on one of his book tour stints that the economy can no longer grow above a 3% rate due to systemic productivity and demographic limitations. But his misdiagnosis stems from a refusal to ignore the millions of fallow workers outside of the labor force that would like to work if given the opportunity to earn a living wage. Mr. Bernanke also fails to recognize the surge of productivity from the American private sector that would emerge after the economy was allowed to undergo a healthy and natural deleveraging cycle.

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Americans Spending More on Taxes Than Food, Clothing, and Housing Combined

By Kimberlee Kaye – Re-Blogged From BlabberBuzz

31% of the nation’s earnings are going to fill the tax coffers

April 23rd of this year was Tax Freedom Day, or “the day when the nation as a whole has earned enough money to pay its total tax bill for the year”.

A whopping 31% of the nation’s earnings are confiscated by the government for federal and state taxes for a total of $5.1 trillion. Amazingly, that’s still not enough to pay off state and national deficits.

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What’s Left To Drive The Recovery? Not Much

By John Rubino – Re-Blogged From Dollar Collapse

US growth, such as it is, has lately been driven by a handful of hot sectors. Car sales have set records, high-end real estate is generally way up, and federal spending – based on last year’s jump in the national debt – is booming.

But now the private sector part of that equation is shifting into low gear. Cars in particular:

Economy Will Miss That New-Car Smell

(Wall Street Journal) – The annual pace of light-vehicle sales fell to a seasonally adjusted 17.2 million in the first quarter from 18 million. That the decline has come despite generous incentives from car companies and still-low gasoline prices suggests that sales are past their peak.

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Here’s What The Market Could Do For The 3rd Time In 17 years

By Michael Pento – Re-Blogged From http://www.PentoPort.com

The major averages continue to set record highs, which provides further evidence that Wall Street is becoming more complacent with the growing dichotomy between equity prices and the underlying strength of the U.S. economy. When investors view the Total market cap to GDP ratio, it becomes strikingly clear that economic growth has not at all kept pace with booming stock values in the past few years.

In fact, this key metric, which oscillated between 50-60% from the mid-seventies to mid-nineties, now stands at an incredible 130%

The reason for this huge discrepancy is clear: massive money printing by the Fed has led to rising asset prices but at the same time has failed to boost productivity. In fact, since Quantitative Easing (QE) began back in November of 2008, the Fed’s balance sheet has grown from $700 billion, to $4.5 trillion today. That is an increase of 540%! Yet, during the same time period U.S. GDP has only managed to increase from $14.5 trillion, to $18.8 trillion; for a comparative measly blip in growth of just 29%.

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Property Bubble In Ireland Developing Again

By Mark O’Byrne – Re-Blogged From http://www.Silver-Phoenix500.com

Budget 2017: “Good Work To Halt Second Property Crash Undone In A Day”

David McWilliams has pointed out in two of his most recent articles how Budget 2017 and the latest mortgage tax grant risk creating a “second property crash”:

“We are faced with similar concerns on the horizon now. Unlike 2008, when this country went bust, or in 2012, when the euro as a currency was in real danger of falling apart, there is no serious internal threat. In 2012, the world’s central bankers cutting interest rates to zero prevented the disintegration of the euro. This may have saved the currency then, but it means that today central bankers have no ammunition left if there is another downturn. Interest rates are as low as they can go.

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Housing Bubble II – It’s Happening Again

By Andy Sutton & Graham Mehl – Re-Blogged From http://www.Gold-Eagle.com

This will be a bit different article because we are not reporting on something that has already happened; we’re dealing with something that is ongoing and developing. Graham will handle roughly the first half of the article, then Andy will handle the second. Please bear with us as we try to break this editorial into two distinct pieces. You’ll understand as you read it why we chose to handle this in such a fashion.

Since everything in the blogosphere goes by what is officially declared by who, so forth, and so on, ditto, ditto, etc, etc, we are officially declaring there is yet ANOTHER bubble – this one in housing. Again. Perhaps ‘still’ is the proper word rather than ‘again since the first one never really was totally washed out of the system. As an addendum to our very well-received ‘American Economics’ piece, we’ll add a corollary: binges are good, purges are not to be tolerated unless absolutely necessary. If a purge becomes necessary, it will be only enough to give the Proletariat the idea that the problem is actually gone. A purge will never last longer than is absolutely necessary since that might affect consumer spending and the consumetariat’s voracious appetite for debt and financial self-mutilation.

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