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The Coming $10 Trillion Loss in Paper Wealth

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posted on Apr, 9 2015 @ 12:27 PM
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This article is somewhat lengthy, and describes how currency flows through the economy while things are produced and consumed. It talks about how the Fed's issuing of our currency is a liability to them, and how quantitative easing works. It discusses the stock market, and how quantitative easing has helped drive up the price of stocks making it appear that the economy is doing better (not even bringing up the HIGHLY manipulated unemployment rates which also have the effect of making the economy appear to be in recovery - but if interested you can see this thread in which I also discussed how these numbers are highly, highly exaggerated Economic Chaos and How They're Lying)

On to the article:



Yield-seeking speculation promoted by the Fed’s zero interest rate policy has done two things: On the real side of the economy, this policy has discouraged saving, while channeling what saving that does occur into increasingly speculative areas of the economy – witness the enormous issuance of junk debt and leveraged loans to already highly-indebted borrowers in recent years, as investors clamored for a “pickup” in yield over safer investments.




...That’s really the main effect QE has – to encourage yield-seeking speculation that drives up the prices of risky securities, but without having any material effect on the real economy or the underlying cash flows that those securities will deliver over time.


To cut to the chase...


At about $23 trillion in U.S. non-financial equity market capitalization, and over $100 trillion in total U.S. private net worth, a standard, run-of-the mill bear market decline in stocks on the order of 30% would likely be associated with total paper losses in the private sector on the order of $10 trillion.


When all is said in done, the impending drop in the stock market is going to hurt the private sector more than many realize.

This article has a LOT of information, and it took me awhile to go through it but essentially the unrealistic expectations of the Fed and Wall Street are once again going to result in a major market shift which we really don't have a lot of control over at this point. Our representatives, private banks and Wall Street have sold out the U.S. economy and the "American Dream" is becoming less and less attainable. Their greed and negligence will have a negative impact on generations to come.

Hussman Funds Article
edit on 9-4-2015 by FamCore because: Added link to Economic Chaos thread which describes other ways they are manipulating economic stats




posted on Apr, 9 2015 @ 12:31 PM
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Another quote that helps illustrate why things are not as good as they look on paper:




Meanwhile, much has been made about “cash on the sidelines” held by corporations, where the sum of currency, bank deposits and foreign deposits of U.S. nonfinancial corporations has surged by $700 billion since 2008. What’s typically left out of this observation is that the debt of those same corporations has surged by $1.5 trillion over the same period... much of this debt issuance has been used to finance stock repurchases instead of expanding investments in productive capital.





... it has made corporate balance sheets much more vulnerable to debt refinancing risk down the road, particularly if earnings fall short or credit spreads rise as they have in prior cycles.


At best, the market shift will take place in several years. That's optimistic though - it could be much, much sooner. Some believe we are at the apex right now, and something's got to give.
edit on 9-4-2015 by FamCore because: added second quote



posted on Apr, 9 2015 @ 12:33 PM
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Thank you for sharing this article I will have to read through it in its entirety soon. Very interesting considering the $100T figure.



posted on Apr, 9 2015 @ 12:43 PM
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a reply to: FamCore

The entire system is a lie. We do not have free markets anymore and the financial markets are rigged. The coming crash will be so grand in scale no amount of bailing will stem the tide this time around.



I have been making this prediction for about 1 year now........Anyone making under 15 dollars an hour is going to be screwed because of inflationary boundaries. You will not be able to afford food and housing as prices keep rising faster than wages. The government will try and bailout and supplement but it will fail at some point.



Think I am wrong........Average new car price.....30,000.....Average US home price.....200,000. Your grocery bill is going up monthly at this point. The numbers they put out are all lies.
edit on 9-4-2015 by SubTruth because: (no reason given)



posted on Apr, 9 2015 @ 12:52 PM
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a reply to: FamCore

The solution is controlled bankruptcy throughout most of the federal government so that certain vital services such as defense can be maintained during the painful period of correction.

Otherwise, the currency may be entirely debased and will collapse in an uncontrolled manner.

Hopefully, we will have an alternate currency to fall back on by then.
edit on 9-4-2015 by greencmp because: (no reason given)



posted on Apr, 9 2015 @ 01:25 PM
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a reply to: FamCore

Elul 29, 2001 - Largest Crash in History

Elul 29, 2008 - Bigger Crash, making it the largest in history

Elul 29, 2015 - ???



posted on Apr, 9 2015 @ 01:35 PM
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originally posted by: infolurker
a reply to: FamCore

Elul 29, 2001 - Largest Crash in History

Elul 29, 2008 - Bigger Crash, making it the largest in history

Elul 29, 2015 - ???


Great. Just great. September 13th it is - marking my calendar. haha I hope the pattern is wrong



posted on Apr, 9 2015 @ 01:39 PM
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a reply to: FamCore

Yet another reason to bury your savings in the backyard.

The slightest knee jerk from stock jockeys have snowballed in the past and it will happen again-it's only a matter of time. Reliance on foreign investments is too bigger risk nowadays considering the variables involved-Even the blue chips are under pressure.



posted on Apr, 9 2015 @ 01:56 PM
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originally posted by: FamCore

originally posted by: infolurker
a reply to: FamCore

Elul 29, 2001 - Largest Crash in History

Elul 29, 2008 - Bigger Crash, making it the largest in history

Elul 29, 2015 - ???


Great. Just great. September 13th it is - marking my calendar. haha I hope the pattern is wrong


It is way bigger than that


Want to see?



www.abovetopsecret.com...

www.abovetopsecret.com...

www.youtube.com...

www.youtube.com...



posted on Apr, 9 2015 @ 01:56 PM
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www.youtube.com...


Another good one.
edit on 9-4-2015 by infolurker because: (no reason given)



posted on Apr, 9 2015 @ 06:59 PM
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It's a darn shame that the Federal Reserve and the European Illuminati are going to take a 10 trillion dollar loss.



posted on Apr, 9 2015 @ 07:59 PM
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a reply to: Enochstask

It's not the Fed Reserve that will lose $10 trillion... It's the private sector in its entirety, MINUS financial institutions since they are the ones leveraging this bullsh*t currency system with their "creating" and flooding the markets with a fiat currency out of nowhere.

Think about it, they've "created" trillions of dollars out of thin air, Already. And now the economy and stability of our private sector is on the hook for it.

edit on 9-4-2015 by FamCore because: (no reason given)



posted on Apr, 9 2015 @ 08:09 PM
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a reply to: FamCore



but essentially the unrealistic expectations of the Fed and Wall Street are once again going to result in a major market shift


Haha, of course it is and these idiots (in not just the U.S. but Europe also) think printing cash whenever you feel like it, whilst assuming it will fix the problem makes everything alright. The ceiling is going to collapse at some point, or indeed the floor is going to give way first. All the while and even after banking scandal upon scandal, they still get mega pay outs and earnings and too many people are just too stupid to understand why they're still poor after working 40 plus hours a week.

The system isn't for the likes of regular folks, private passes only.



posted on Apr, 9 2015 @ 08:14 PM
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originally posted by: FamCore
a reply to: Enochstask



Think about it, they've "created" trillions of dollars out of thin air, Already. And now the economy and stability of our private sector is on the hook for it.


By "they've" I assume you are talking about the Federal Reserve, if so, they are not we and they have lost 10 Trillion dollars not we. You do realize the US government doesn't control the Federal Reserve and it is not a US institution right? If you understand that then you will understand why I say they lost 10 trillion dollars not we.



posted on Apr, 9 2015 @ 09:16 PM
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If the US can get by with a 10% crash in the next upcoming economic adjustment maybe it is not all that bad. As for how it does all play out and who gets cut is still a wait and see.



posted on Apr, 9 2015 @ 10:02 PM
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It is all just one big Ponzi scheme.



posted on Apr, 10 2015 @ 07:28 AM
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a reply to: Enochstask

I do understand that the Fed is a private bank - but do you remember AIG? Lehman brothers? Bear Stearns?

When sh*t like this happens, they use OUR tax dollars to save the banks. They are making the dollar weaker by the minute and making everything you and me buy cost a hell of a lot more.

The BANKS are way safer than you or I. I've been studying the financial markets and recent financial crises for several years now - if you read the article you'd understand why it's the private sector of our economy, and not the banks that are taking a $10 trillion loss



posted on Apr, 10 2015 @ 08:13 AM
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originally posted by: Enochstask
It's a darn shame that the Federal Reserve and the European Illuminati are going to take a 10 trillion dollar loss.


Maybe, maybe not, they own the game, they run the game.

Most ppl do not even see how they play the game or where they
stack their chips.

$32 trillion offshore needs IRS attention



posted on Apr, 10 2015 @ 08:15 AM
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originally posted by: buckwhizzle
It is all just one big Ponzi scheme.


Yeah, Mr. Rivero explains it well in this video.

All wars are bankers wars



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