Of all people, the last person you should ever ask about what is going to happen in the economy is a central banker or a Keynesian economist…. they are like communists trying to centrally plan the economy. Their track record of predicting the economic future is almost perfect in that they almost always say “this time things are different” just moments before another crash happens.
In September of 1929, Keynesian Yale Economist, Irving Fisher, said, “Stocks have reached a permanently high plateau.”
Less than two months later, the most devastating stock market crash in US history occurred along with a 12-year depression.
More recently, Ben Bernanke, in 2007, said, “Our assessment is that there’s not much indication at this point that subprime mortgage issues have spread into the broader mortgage market, which still seems to be healthy.”
And he went on to say,
“The global economy continues to be strong, supported by solid economic growth abroad. U.S. exports should expand further in coming quarters. Overall, the U.S. economy seems likely to expand at a moderate pace over the second half of 2007, with growth then strengthening a bit in 2008 to a rate close to the economy’s underlying trend.”
Then within weeks, the biggest housing crash in US history occurred along with the biggest stock market collapse of all time.
Now, Janet Yellen has come out with a shockingly moronic statement, saying,
“Would I say there will never, ever be another financial crisis? You know probably that would be going too far, but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will be.”
Well, it is either moronic, or she is outright telling us that the US will soon be entering into hyperinflation.
Let’s analyze what she said.
First, she was speaking without a teleprompter, so it’s possible she had forgotten her medication that day and was just rambling and making stuff up at random… because a lot of what she said in that interview was really meaningless. But, Greenspan was a master of that, so maybe she is learning Green-speak.
But, her statement that she doesn’t think there will be another financial crisis in our lifetimes needs to be considered.
At first, I thought she meant, in “her” lifetime. And, being 70 years old my first thought was maybe she has cancer and is going to die soon.
But, she didn’t say “her” lifetime, she said in “our” lifetimes. What’s that even supposed to mean? Children alive today should expect to live at least 70 years. Or longer. Did Janet Yellen really say that she doesn’t believe we’ll have a financial crisis in the next 70 years?
Financial Crisis 2008
There was a financial crisis less than a decade ago; almost every metric is far worse now.
Government debt in the USA has doubled since then to $20 trillion. The stock market is at all-time highs having nearly tripled since the lows in 2009. Well, if Janet is claiming the banks are so solid now, their capital to assets ratio must have become much better since 2008.
And don’t forget we are nearing the end of the nearly 40-year long bond bull market.
So worldwide government debt has skyrocketed, stocks are at all-time highs, the bond bubble is close to popping and banks are leveraged more than they were during the last crisis in 2008/2009.
It seems this data makes Ms. Yellen quite comfortable in predicting that we’ve got 70 years of smooth sailing ahead.
There are four possible reasons she said that.
- She accidentally took an extra handful of medication that morning and was just feeling a bit strange.
- She and her fellow economists got together and tried to make a prediction and just like almost every other central bank and Keynesian economics prediction in the past, it’s almost exactly wrong at almost the exact time when things fall apart.
- Her bosses told her to say it because they love giving the public the wrong info at exactly the right time and think it is funny that a lot of people will be trapped in the stock market and banks just as they pull the plug on the entire financial system.
- Or, the Federal Reserve has already planned to go into hyperinflation in the event of any crises, which would technically save the banking system from a “crisis” but leave all bank account holders with worthless dollars.
Now that I look back on all four options, I actually think all four could be correct.
If that is the case, Ms. Yellen saying there won’t be a crisis for at least 70 years should be all the warning you need to begin to prepare for a crisis to happen imminently.
Crypto currencies, like Bitcoin, have been skyrocketing and some people are suggesting that it’s because a lot of the smart money is preparing for a complete financial and banking collapse to begin soon.
This could be the case as I have heard many investors say that this is what they are doing.
It could also be the case that the crypto currencies are the recipients of some of the inflation the Federal Reserve and other central banks have been pumping into the economy.
But, whatever is the case, Bitcoin is certainly one way to protect yourself from a banking crisis. So, if you don’t know enough about crypt0 currencies yet, please check out some of our other blog posts and videos.
And, as well, check out our page Earn Bitcoin and learn how to Multiply Your Money by 400%+ Per Year. We want to help as many as possible to survive the coming financial crisis.
If Ms. Yellen says there won’t be a financial crisis for at least 70 years that should be all the evidence you need to know that we are probably just months, maybe only weeks, away from the next big crisis that could leave your bank collapsed or the cash in your account nearly worthless.