Chris Martenson
The Coming Rout
Tuesday, March 8, 2011
Executive Summary
- Further evidence that a Fed quantitative easing stoppage in June is likely
- Implications such a stoppage will have on stocks, commodities, bonds, and precious metals
- Why this will be more damaging to the economy than the 2008 correction
- Will the Fed eventually resume quantitative easing?
- Three alternatives to watch for that could prevent the coming rout
- How to hedge against the predicted rout
Part I: Why Things Are About To Get Turned Upside Down
If you have not yet read Part I, available free to all readers, please click here to read it first.
Part II: The Coming Rout
There are a few things that make the prospect of a Fed quantitative easing (QE) stoppage more likely.
The Fed Notices Inflation
Using a flashlight, a map, and both hands, the Fed managed to find something:
Fed Finds Climbing Costs Hit Shoppers
March 3, 2011
Many manufacturers are passing along higher input costs to their customers, a sign that rising prices for wheat, cotton, iron, and other commodities could increasingly reach consumers in coming months, according to the Federal Reserve’s beige book survey.
The report, a summary of economic conditions across the central bank’s 12 regional districts, said manufacturers “in a number of districts reported having greater ability” to pass through higher costs. “Retailers in some districts mentioned they had implemented price increases or were anticipating such action in the next few months,” the Fed said.
It’s good to see that the Fed is at least dimly aware that price inflation is in the pipe and coming soon to a market near you. The rest of the world has had no such difficulties in detecting inflation, especially on news like this:
The Coming Rout
PREVIEWThe Coming Rout
Tuesday, March 8, 2011
Executive Summary
- Further evidence that a Fed quantitative easing stoppage in June is likely
- Implications such a stoppage will have on stocks, commodities, bonds, and precious metals
- Why this will be more damaging to the economy than the 2008 correction
- Will the Fed eventually resume quantitative easing?
- Three alternatives to watch for that could prevent the coming rout
- How to hedge against the predicted rout
Part I: Why Things Are About To Get Turned Upside Down
If you have not yet read Part I, available free to all readers, please click here to read it first.
Part II: The Coming Rout
There are a few things that make the prospect of a Fed quantitative easing (QE) stoppage more likely.
The Fed Notices Inflation
Using a flashlight, a map, and both hands, the Fed managed to find something:
Fed Finds Climbing Costs Hit Shoppers
March 3, 2011
Many manufacturers are passing along higher input costs to their customers, a sign that rising prices for wheat, cotton, iron, and other commodities could increasingly reach consumers in coming months, according to the Federal Reserve’s beige book survey.
The report, a summary of economic conditions across the central bank’s 12 regional districts, said manufacturers “in a number of districts reported having greater ability” to pass through higher costs. “Retailers in some districts mentioned they had implemented price increases or were anticipating such action in the next few months,” the Fed said.
It’s good to see that the Fed is at least dimly aware that price inflation is in the pipe and coming soon to a market near you. The rest of the world has had no such difficulties in detecting inflation, especially on news like this:
The second part of Chris’ interview with John Williams, noted guru on government statics, is reserved below for you, our enrolled members.
If you’ve not yet listened to Part 1, click here to do so.
Part 2 of the interview delves deeply into the specific risks our economy faces and why John concludes high inflation is the sad but certain outcome. And why he has substantially moved up his date for the onset of hyperinflation given the Fed’s recent actions.
Among other details, John provides his outlook on the expected signs hyperinflation is manifesting itself and what individuals can do to protect themselves against it.
Part 2 of the John Williams Interview: Hyperinflation Ahead
PREVIEWThe second part of Chris’ interview with John Williams, noted guru on government statics, is reserved below for you, our enrolled members.
If you’ve not yet listened to Part 1, click here to do so.
Part 2 of the interview delves deeply into the specific risks our economy faces and why John concludes high inflation is the sad but certain outcome. And why he has substantially moved up his date for the onset of hyperinflation given the Fed’s recent actions.
Among other details, John provides his outlook on the expected signs hyperinflation is manifesting itself and what individuals can do to protect themselves against it.
Well, that was quick. As you may have noticed, things are rapidly progressing from the outside in as the turmoil in the Middle East has now taken down two oil rich countries.
On the ground in the eastern chunk of this oil-rich desert nation, the signs of rebellion are plain to see in the armories of a military base near Baida: Weapons crates lay busted open and empty. Rifles are missing from their racks. Left behind are helmets and gas masks and cleaning kits—things that can’t shoot.
For four days, rebels newly armed with anti-aircraft guns and Kalashnikovs battled forces loyal to Libyan strongman Col. Moammar Gadhafi and commanded by one of his sons. After days of firefights, feints and an ambush on unarmed local sheiks, the regime forces surrendered their hold on the vital local airport Tuesday morning—placing nearly all of eastern Libya outside Col. Gadhafi’s control.
The battle for Baida airport is one example of how quickly the tide across Libya has turned against Col. Gadhafi. A brutal crackdown by pro-Gadhafi forces across the country has left at least 300 dead over six days, civil-rights groups say.
Going, going, gone.
PREVIEWWell, that was quick. As you may have noticed, things are rapidly progressing from the outside in as the turmoil in the Middle East has now taken down two oil rich countries.
On the ground in the eastern chunk of this oil-rich desert nation, the signs of rebellion are plain to see in the armories of a military base near Baida: Weapons crates lay busted open and empty. Rifles are missing from their racks. Left behind are helmets and gas masks and cleaning kits—things that can’t shoot.
For four days, rebels newly armed with anti-aircraft guns and Kalashnikovs battled forces loyal to Libyan strongman Col. Moammar Gadhafi and commanded by one of his sons. After days of firefights, feints and an ambush on unarmed local sheiks, the regime forces surrendered their hold on the vital local airport Tuesday morning—placing nearly all of eastern Libya outside Col. Gadhafi’s control.
The battle for Baida airport is one example of how quickly the tide across Libya has turned against Col. Gadhafi. A brutal crackdown by pro-Gadhafi forces across the country has left at least 300 dead over six days, civil-rights groups say.
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