Dow Jones reaches an all time high, while America is in “sequestration mode”-Is there anyone who does not find this peculiar?

Meltdown

It was just last Friday when President Obama gave in to the “sequester climate” and made public cuts a reality for everyday Americans, by cutting $85 billion from the American economy, despite the looming repercussions, over which every member of the congress is aware of.

And while the Pentagon saw its budget cut in half and even lower than predicted earlier on, while America’s unemployment rate is about 7.8% (officially, which means that the real numbers are much higher), and to cut a long story short while the quality standards of what used to make up the US’s middle class (which has now disappeared) are getting lower, we heard a couple of days ago that the Dow Jones closed at an all time high of14,253, beating the previous record set in October 2007″. Is it just us, or is this news the most disturbing one would ever hear in such times of alleged economic recovery? 

Let’s look at the dates first, October 2007. In July 2007 the crisis, which would see its peak in September 2008 with the collapse of Lehman Brothers, had already started with the “fall” of Bear Stearns. In July Bear Stearns goes bankrupt, we have an ongoing crisis and in October the Dow Jones closed with a super high value not much lower than the one we saw a couple of days ago. One would argue that the markets underestimated the coming crisis, indeed this is the “fairytale” everyone wants to believe, but what if “the markets” gambled wildly in order to raise the index, as they had forecasted an upcoming major meltdown type crisis and just wanted to liquify everything in order to “keep their chairs before the music stopped”.

Be that as it may, one may argue, that back then it was the fall of Bear Stearns that initiated the crisis, what is the occasion now? Well, if the sequestration process is not “the occasion” or as a matter of fact “THE OCCASION”, then what is it? Is it not multiple times worse than a bank failing? What if the US fails within 2013? What if the dollar fails in this year and some geoeconomic centers already know it and that’s why they are creating an artificial “euphoria” so that they can climb to the “top of the waterslide” and slide along with trillions of dollars in their pockets, when the index will have reached the levels of 2008?

Barry Ritholtz, a market strategist, author and CEO of Fusion IQ, an online research firm, said: “…And a lot of this has to do with the massive intervention of the Federal Reserve. They have kept rates so low that it’s made it very inexpensive for corporations to borrow and invest and it’s created a lot of liquidity, which drives equity prices higher…” and then the presenter of the show, Gwen Ifill, stated that “Matt Phillips [The other guest, writes for Quartz, a digital news site that covers the global economy for Atlantic Media], because of the intervention of the Federal Reserve, some people are calling this rebound a sugar high”.

Yes, correct it’s a honeymoon in expectation of “sleepless nights” with werewolves tearing down what’s left of the US and the global economy. Hang Seng Index (Hong Kong), for example has an extremely high value of 22771.44 while China’s other Indexes such as the The Shanghai Composite Index and The Shenzhen Component Index have much lower values those of 2,326.31 and 9,341.35 points respectively not to mention Russia’s RTS and MICEX which have much much lower values (between 1200-1500 maximum). Those figures mean that to a great extent the non US values are a mirror to the real economies of the States mentioned and that’s how things are supposed to roll like, but the US still give extreme gravity to the stock exchange part of the economy, which constitutes a completely different part from what is termed as “The real economy”. This has already cost both the US and the World a lot more than we will ever be able to count, but if a financial “waterslide” occurs within this year, given the fact that China has already stated that it will start withdrawing from Wall Street and Max Keiser (however peculiar his ways of expressing things might be) saying that they are cooking up a meltdown, which is going to be termed “a new crisis” simply for legal purposes, because the truth is that it will be the continuation of the 2008 one, then this is THE END! The world will be introduced to an unparalleled financial meltdown much worse that that of 1929, as the Dollar will be wiped out as a global reserve currency and the US will instantaneously plead bankrupt. The geopolitical-geographical consequences that would follow can only be described by people whose fantasy reach thus far. We admit that beyond this stage, the matter falls under the specialization of science fiction writers, as the magnitude of the losses will be quite astronomical!

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