4 Invaluable Lessons From The Great Depression You Need To Remember

The Great Depression was a low point in our history (pun intended), but in our collective experience of it, there are life lessons to be learned. Regardless of whether or not we are heading towards the same conclusion (hello, crypto-currency crashes), it would do well to remember some basic life hacks. It is, after all, always better to be prepared than sorry. Find food and medicine wherever you can– During SHTF situations, the most important thing to have is access to clean water and food. Thankfully, a number of edible plants can be found right in your backyard. In an informative piece … Continue reading 4 Invaluable Lessons From The Great Depression You Need To Remember

Guess What Happened The Last Time The Price Of Oil Plunged Below 38 Dollars A Barrel?

On Monday, the price of U.S. oil dropped below 38 dollars a barrel for the first time in six years.  The last time the price of oil was this low, the global financial system was melting down and the U.S. economy was experiencing the worst recession that it had seen since the Great Depression of the 1930s.  As I write this article, the price of U.S. oil is sitting at $37.65.  For months, I have been warning that the crash in the price of oil would be extremely deflationary and would have severe consequences for the global economy.  Nations such … Continue reading Guess What Happened The Last Time The Price Of Oil Plunged Below 38 Dollars A Barrel?

Stock Market Crash October 2015? 9 Of The 16 Largest Crashes In History Have Come This Month

The worst stock market crashes in U.S. history have come during the month of October.  There is just something about this time of the year that seems to be conducive to financial panic.  For example, on October 28th, 1929 the biggest stock market crash in U.S. history up until that time helped usher in the Great Depression of the 1930s.  And the largest percentage crash in the history of the Dow Jones Industrial Average by a very wide margin happened on October 19th, 1987.  Overall, 9 of the 16 largest single day percentage crashes that we have ever seen happened … Continue reading Stock Market Crash October 2015? 9 Of The 16 Largest Crashes In History Have Come This Month

THE SHOCKING REALITY: THIS CHART SHOWS JUST HOW BAD UNEMPLOYMENT IS TODAY COMPARED TO THE GREAT DEPRESSION

America is already in the throes of its next Great Depression Image Credits: U.S. Information Agency. While the Obama administration and their mainstream surrogates maintain that the economy is growing at a booming pace, the reality of the situation is starkly different. According to a report from the Bureau of Labor Statistics some 94.6 million Americans (age 16 and over) are either not working or have made no effort to find a job. With a population of 320 million, that means nearly one in three people in the United States are currently out of work. The Bureau of Labor Statistics reports that a record 94,610,000 people … Continue reading THE SHOCKING REALITY: THIS CHART SHOWS JUST HOW BAD UNEMPLOYMENT IS TODAY COMPARED TO THE GREAT DEPRESSION

The Fed Can Run, But It Can’t Hide

[photo caption/credit: Heavyweight Champ Joe Louis “You Can Run, But You Can’t Hide” (courtesy Google Images)] Before declaring bankruptcy in 2008, Lehman Brothers was the fourth-largest investment bank in the US.  It’s bankruptcy nearly toppled the US and global economies and helped precipitate the “Great Recession”.  When Lehman Brothers filed bankruptcy, its assets were only 3% greater than its liabilities. Today, the Federal Reserve is the single largest central bank in the world.  It’s assets reportedly exceed its liabilities by only 1.3%—less than half of what Lehman Brother had when if filed for bankruptcy in A.D. 2008.  The Fed has … Continue reading The Fed Can Run, But It Can’t Hide

Shorting The Federal Reserve

“I’ve never let my guard down by saying, I do not need to be hedged” – Paul Singer Preservation of clients’ wealth is the most important fiduciary duty guiding investment managers. This obligation tends to be under-appreciated in the midst of financial asset bubbles when recency bias blunts the desire to sacrifice the potential for further gains in exchange for protection against losses. Inevitably, this is made painfully clear when a bubble pops and those once popular assets lose value and the manager’s clientele suffer. 720 Global has repeatedly urged caution as valuations are currently stretched on the back of … Continue reading Shorting The Federal Reserve

History Repeats as China Faces Gloomy 1929-Style Crash: “The Parallels with 1920 Are Uncanny”

[Photo caption: Party like it’s 1929] According to some, Greece has been hogging the limelight, while China is going through ultra dramatic market fails, too. It’s excesses are glorious in their potential to plummet in a spectacular thud. Is China … Continue reading History Repeats as China Faces Gloomy 1929-Style Crash: “The Parallels with 1920 Are Uncanny”

If Everything Is Just Fine, Why Are So Many Really Smart People Forecasting Economic Disaster?

The parallels between the false prosperity of 2007 and the false prosperity of 2014 are rather striking.  If we go back and look at the numbers in the fall of 2007, we find that the Dow set an all-time high in October, margin debt on Wall Street had spiked to record levels, the unemployment rate was below 5 percent and Americans were getting ready to spend a record amount of money that Christmas season.  But then the very next year the worst economic crisis since the Great Depression shook the entire planet and everyone wondered why most people never saw … Continue reading If Everything Is Just Fine, Why Are So Many Really Smart People Forecasting Economic Disaster?

The Seven Year Cycle Of Economic Crashes That Everyone Is Talking About

Large numbers of people believe that an economic crash is coming next year based on a seven year cycle of economic crashes that goes all the way back to the Great Depression.  What I am about to share with you is very controversial.  Some of you will love it, and some of you will think that it is utter rubbish.  I will just present this information and let you decide for yourself what you want to think about it.  In my previous article entitled “If Economic Cycle Theorists Are Correct, 2015 To 2020 Will Be Pure Hell For The United … Continue reading The Seven Year Cycle Of Economic Crashes That Everyone Is Talking About

Prohibition laws and agency regulations

Depending on the longevity of one’s experience, the history of government’s inhumanity to man grows deeper. A person, who has lived through four score and seven years ago, may very well be similar to an individual hearing the Gettysburg Address at the time when Abraham Lincoln originally spoke those words. Eight-seven years is a long time, witnessing the Great Depression, World War II and every succeeding administration, which transformed the country from a Republic, into an Empire. Reflecting on the dramatic departure that took off under Franklin Delano Roosevelt, the course of the federal government has intensified in size and … Continue reading Prohibition laws and agency regulations