Thursday, March 3, 2016

Bloomberg: Angry Americans- How the 2008 Crash Fueled a Political Rebellion

This Bloomberg article says exactly what we have been trying to say here on the blog for awhile now. It seems like many officials who are running the present system (both the political and economic system) are being caught by surprise at what is happening this year in the US election campaigns. 


However, if you have much contact with the average person like this blog is trying to reach, you are not surprised. In fact, one reason this blog was started is because the 2008 financial crisis so severely impacted many people that I felt a need to try and supply the best information I could find to help if possible. Below are some quotes from this Bloomberg article and then some added comments:

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"The one story about the U.S. economy that has virtually no traction among American voters right now is that it’s doing OK."

"Anyone inclined to tell that story, as President Barack Obama did in his final State of the Union address in January, can find headline data to back it up. But primary-season revolts -- the Donald Trump mutiny against the Republican establishment, and the fiercer-than-expected challenge from Bernie Sanders against a Democratic frontrunner with all the advantages -- are driven by fed-up Americans saying it isn’t so. And looking behind the headlines, the numbers might be on their side."    . . . . .


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My added comments: It seems like after quite a period of denial and being oblivious to the very clear signals that have been present since the 2008 financial crisis, officials (both mainstream political and economic officials) are finally starting to realize that there is very serious discontent in the general public. While that discontent is not united in what needs to be done, there is a lot of unity in the idea that those running things now don't understand what life is like for the average person and perhaps don't even care as long as it does not impact them. It's not just the wealth gap we hear about, it's the feeling that those in charge don't get it or don't care to try and get it.

This blog intentionally tries to avoid politics because as we can plainly see this year they tend to divide people as emotions boil over.

The challenge here is to try and properly cover what we are seeing and how it relates to the big issues we watch for here (major monetary system change) without seeming to take one side or another. But we will continue to try our best to do just that.

Here are some bullet points we feel are factual that we need to understand as we see how this US election year unfolds and also watch for any signs of major monetary system change:

- both political and economic discontent exist and in some cases interact

- more and more respected voices are speaking up about the problems in the present system (here is another one)

-the US general public is not united on how to fix the problems (like Nouriel Roubini lists here) that they clearly are sensing do exist

- this US election year could play an important role if leading towards major change or might have virtually no impact on change at all (no matter who wins)

-if we were to get another major financial crisis like Jim Rickards and others are predicting this year before the election, the discontent we see now is likely to go nuclear and there is absolutely no telling what changes might be coming soon both politically and in the monetary system. We could see explosive and unpredictable change under those conditions

-if we get through this year without a crisis, the dynamic changes considerably. It is very unlikely that the next US President will make it through a full term without some kind of major economic problems up to and including a major crisis worse than 2008 (no matter who wins). Despite this, no candidates running this year have been asked how they will deal with such a situation so voters are completely blind as to what any of them would do

Conclusion: Those running the present system need to understand (if they already do not) that what we are seeing right now is not just a short term blip on the radar. It is clear that there are tens of millions of people (in both political parties) who do not believe their interests matter to those in charge. They are reaching such a point of frustration at being dismissed and ignored that they are ready to blow up the present system even if it means things would get a lot worse in the process. (see Jim Rickards on Bloomberg TV here - "elites are out of touch")

I don't have any solutions to offer for this situation. The best we can hope for is that we do not see another major crisis any time soon because I have no doubt that the anger showing up now would only be the tip of the iceberg if people get blindsided by another major financial crisis. I would hope those in charge would realize that they must take this seriously and work much harder than they have been so far to demonstrate that they do care. They need to start talking more openly and directly with the public about the problems we have and ways to fix them in our view here. I don't know if that will happen or not because so far it seems like many are still in denial about how distrusted they are with many people or perhaps they really don't care as many people suspect.

All we can do here is try and be helpful to anyone who happens upon this blog. Our goal is to try and provide the very best factual information we can so that people can be as informed as possible and make the best decisions for their situations as they can. If you see something we are missing or we have wrong, please feel free to let me know. I can be reached anytime at this email address:   lonestarwhitehouse@gmail.com. Everyone is welcome here and we try very hard to respect all reasonable points of view so long as they are presented with factual support and with respect to other points of view.

Added note: The super Tuesday election results simply continued to confirm the trend. Exit polls showed 80 to 90% of all the voters in BOTH political parties listed the economy as their biggest concern/issue in state after state. Exit polls also continued to confirm voter anger with the existing establishment (see #3 in this article). Item #3 says "84 to 95 per cent of Republicans said they were dissatisfied or angry with the federal government."  It also says "only" 50 to 65 per cent of Democratic voters were angry. If you combine all the angry voters from both parties you get a strong majority of everyone who voted as "dissatisfied or angry." This is very much in line with the feedback I get and see working doing research for this blog.

Additional added note 3-10-16: Here is another article on all this run by CNN
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Note to Readers- Tomorrow


Tomorrow we will have an article covering a recent discussion (captured on video) on the potential for the SDR to be used as the new global reserve currency for the world. (article is now posted here) The discussion included both a current IMF official who works with SDRs right now and the former head of the SDR Division at the IMF (Dr. Warren Coats) who we have contact with by email. Dr. Coats even provided a great quote for our article that readers will want to see.

In the discussion it is clear that these officials do not see an imminent crisis coming at this time even though they do point out that the conditions for one in the future do exist. 

Please watch for it and let others know about it as you will not get this kind of direct information from official experts like this very often. It will answer many questions I see from readers and in other discussion forums all over the world about the potential for the SDR as a replacement global reserve currency for the US dollar. It directly addresses the two big questions we follow here on this blog:

1) Will we get another major financial crisis worse than 2008?

2) If we do, will the SDR used at the IMF be used in a new way to address the crisis?

Jim Rickards work on this is invaluable (they mention his book in the video) and now we have direct information on both these important questions from both a current and former IMF official on what we can reasonably expect.

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