Our friend and economic commentator Franklin Sanders, who was interviewed for the Beyond Off Grid documentary and has been a guest on several of our webinars, sent out several cogent (and hilarious) economic analyses to his email subscribers in the past couple of weeks.
“Y’all remember those old cartoons from the 1930s & 1940s when some character would hit a clock with a hammer & springs & clock parts would fly out of the clock? Imagine somebody like that hitting the world’s stock markets & economy with a hammer.
It gets worse. Shanghai composite lost another 5.9% today & from the 11 June high has now fallen 32%. Like King Canute trying to command the sea, today the Chinese suspended trading in at least a third of the companies listed on the major exchanges. And Brokerage houses have been ordered to pump billions back into the market. The fun part is that most of the investors are retail investors, small time folk investing their life savings in the market for the first time. That promises a deep well of social unrest and further economic troubles.
It gets worse still. From about 11:30 today (July 8th) for 4 hours the New York Stock Exchange halted trading due to a “computer glitch”. Exchange officials were quick to deny it was a cyber attack, which forces me to recall the French proverb, “Nothing is confirmed until officially denied.” Truth is, business & government officials in the US have told so many lies for so long that you never know what to believe: is it real, or Memorex? Oddly enough, the Wall Street Journal experienced computer troubles, too, and United Airlines was forced to ground all US flights because of, you guessed it, computer issues.
If you were going to wage war, what a efficient way to wage it, crippling your enemy’s economy without his ever knowing where the attack comes from, leaving him absolutely defenseless.”
“Ever wake up like Rip Van Winkle wiping the cobwebs from your eyes & wondering what on earth got hold of you? I feel that way today (July 27th), looking at markets. What on earth have I been thinking about? Stocks have rolled over. That May high was most likely the high for the entire bull phase (spawned by the Fed’s QE). The present deflationary scare will pass, the dollar will fail & resume its downward progress toward zero, & central banks will surely shoot their only weapon: the inflation gun. And one more thing: the goofs in central banks & governments who believe they are Masters of the Universe, ain’t. Gravity still works, truth will avenge itself economically on corrupt politics, and chickens still come home to roost. “
Subscribing to Franklin Sanders’ Moneychanger newsletter is a great way to get educated about the rapidly changing economy and financial markets, and about real money – gold and silver – and how to make wise financial investment decisions in the current climate of confusion.
Franklin Sanders quote (c) 2014 The Moneychanger, reprinted by permission. Â You may sign up for the Moneychanger’s free commentary on the gold and silver markets — and a lot of other things — at www.the-moneychanger.com.”
Photo Credit: Diana Robinson at Flickr